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Arrow posts increase in profits, but operating costs rise too

Arrow Global has tripled its profit to £15m for the third quarter of this year, compared to a deficit of £6m for the same period last year.


Amber-Ainsley   Pritchard

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The debt buyer’s latest accounts show its financial results for the three months ending September 30 2017.

 

Although Arrow’s profit has increased, its collections activity costs and operating expenses have also increased.

 

Collections activity costs recorded for the third quarter of this year were £33.4m, up from £20.8m for the same period last year. Its operating expenses reached £22.7m for this period, up from £17.9m the year before.

 

For the nine months ending September 30 2017, Arrow recorded a 30 percent increase in organic purchases of loan portfolios and notes to £155m, compared to £119m during the same period last year.

 

Core cash collections also grew to £244m for the nine months to September 30, compared £216m year-on-year.

 

Arrow said Zenith, an Italian servicing business it acquired in December 2016, is performing well and increasing the group’s Italian market expertise.

 

The debt buyer said its focus for the final quarter of 2017 remains to be on strong returns, financial and operational excellence, and high growth.

 

Lee Rochford, group chief executive of Arrow, said: “In the first nine months of the year, Arrow continued to grow strongly and profitably. We are on track to meet our guidance of completing total purchases of approximately £200m by the year end.

 

“The capital light asset management business has also seen excellent growth, and we expect this to continue into 2018 following the close of the acquisition of Mars Capital later this year.”

 

He said Arrow is efficiently executing its strategy of diversifying by geography, asset class and revenue stream.

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