(Adds details, CEO, analysts' comments, share movement)
May 22 British debt collection company Arrow
Global Group Plc reported a 17.6 percent rise in
first-quarter adjusted core profit as it recovered more debt,
and said it would pay its maiden dividend along with half-year
Shares in the company, which listed on the London Stock
Exchange in October, rose as much as 4.2 percent in early
"Key to Arrow's superior return is its ability to enhance
the number of paying customers, which it typically enhances by
50 percent after the vendors and a number of DCAs (debt
collection agencies) have already worked hard to collect on
these accounts," Numis Securities analysts said in a note.
Adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA) rose to 22.3 million pounds from 19
million pounds a year earlier.
Arrow Global said core collection, or collection on the
company's purchased loan portfolios, rose 16 percent to 31.8
million pounds ($53.7 million) in the quarter ended March 31.
"We continue to anticipate a normal weighting of portfolio
purchases to the second half of the year," Chief Executive Tom
Drury said in a statement.
The company said it acquired debt portfolios with face value
of 246 million pounds for 33.2 million pounds during the
"With the number (of acquired debt) almost identical to last
year's, which was said to be exceptionally high, Arrow has
demonstrated that the growth in the debt buying market is robust
and its share is growing," Jefferies analysts said in a note to
Arrow Global manages more than 8 billion pounds of debt from
businesses including retail banks and credit card and
Shares in the company were up 2.75 percent at 223.76 pence
at 0831 GMT. The stock has lost about 18 percent since the
beginning of the year.
"Following recent relative underperformance, the shares are
attractively valued in relation to our 335 pence target,"
Panmure Godron said in a note.
($1 = 0.5925 British pounds)
(Reporting by Roshni Menon; Editing by Ted Kerr and Gopakumar