Debt manager flying high

MANCHESTER-based purchaser and manager of debt Arrow Global has announced soaring revenue and profits.

Turnover is up 25.4% to £44.5m (Q1 2015: £35.5m) for the quarter to the end of March, driven by a 31.3% increase in core collections to £67m (Q1 2015: £51.1m) and asset management revenue rising to £7.2m, contributing 16.1% of total revenue (Q1 2015:3.4%).

Adjusted EBITDA is up 57% to £51.7m (Q1 2015: £32.8m).

Meanwhile,  the company strengthened its position with the acquisition of InVesting, a leading Netherlands and Belgium consumer debt purchaser and collector, for €100m.

Arrow Global chief executive Tom Drury, said: “Arrow Global delivered another set of impressive results in Q1 with portfolio purchases at £49.1m, adjusted EBITDA increased by over 57% to £51.7 m, and underlying net income increased by over 33% to £7.6m.

“We remain focused on delivering on our strategy of being a top three player in each of our chosen markets.
 
“InVesting, makes us a leading presence in the Benelux market.

“The InVesting acquisition, combined with the ongoing integration and growth of our Whitestar business in Portugal, further diversifies our income streams and we expect capital-light asset management operations to account for around 25% of Group revenues on a pro forma full-year basis.

“In April, we also successfully issued a €230m bond. The funds were used to finance the InVesting acquisition, repay outstanding amounts under our RCF and provide firepower for future investments.

“Our strong Q1 results, coupled with over £40m of future organic portfolio investments already awarded for the remainder of 2016, mean we remain confident in delivering on our target of investing at roughly twice our annual replacement rate, whilst maintaining strong portfolio returns.
 
“This, coupled with our continuous investment in growing ‘capital light’ asset management revenues, provide us with the confidence that we are on track to deliver overall full-year earnings in line with our expectations.”