Arrow Global targets maiden dividend
ARROW Global, the Manchester-based debt purchaser, has reported continued strong growth in its first quarter results and revealed plans to start paying a dividend to investors.
The company, which floated last autumn, buys up parcels of debt from banks, credit card companies, and also recently student loan books from the government, and then uses data and technology to find borrowers and agree repayment terms.
In the three months to the end of March core collections were up 16.1% to £31.8m and adjusted EBITDA up 17.6% to £22.3m.
The company acquired debt portfolios with face value of £246m for an aggregate purchase price of £33.2m.
Chief executive Tom Drury said: “”Arrow Global had a strong first quarter with the acquisition of £33.2m of good quality loan portfolios, all of which were in our core UK market.”
He said the Booth Street-based company was “highly cash generative” and, as a result it will pay a maiden dividend with its half year results.
He added: “We see a strong pipeline ahead in the UK and Europe, and while segments of the market remain competitive, our ability to access deals from multiple sources will allow us to continue to invest in attractive loan portfolios.
“We continue to anticipate a normal weighting of portfolio purchases to the second half of the year and overall we remain on track to deliver results in line with our expectations.”
