Debt purchaser Arrow Global has nearly doubled the value of its purchases of loan portfolios for the first half of 2016.
Its results update recorded a 50 percent increase to £113m for the first half of this year, compared with £75m for the same period last year.
A total of £35m of the £113m was gained through the acquisition of InVesting B.V., a consumer debt purchaser and collections provider with operations in the Netherlands and Belgium, in May.
Tom Drury, group chief executive officer of Arrow Global, said: “From a financing perspective we deliberately increased funding ahead of the UK EU Referendum, successfully issuing a €230m (£193m) bond, the funds from which were used to finance the InVesting acquisition and repay outstanding amounts under the revolving credit facility (RCF).”
The results update also shows a near 60 percent increase of impairment charges from the first half of 2015, at £82m, to £128m for the same period this year.
Arrow Global said the high increase was due to the acquisition of InVesting B.V. and credit management company Redrock Capital Partners.
In terms of general performance, pre-tax profit increased 25 percent to £20.5m for the first half of this year compared to £16m a year ago.
Amortisation of legal acquisition fees on portfolios and finance costs rose to £2.6m this half year, from £2m for the same period last year.
Arrow Global was due to hold a conference call yesterday to discuss its half year results, but cancelled the call in light of an exercise it expects to launch shortly, to refinance £220m of its bonds.
Drury said: “Arrow Global has been pursuing a consistent and proven strategy over many years. This has seen us deliver profitable growth in the UK, while continuing to expand at pace internationally and add capital-light servicing revenues to the business.”