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Interim Results

Arrow hikes divi after rise in revenues and underlying profits

31 August 2017 09:17

Arrow Global's underlying profit after tax rose by 35.5% to £25.8m in the six months to the end of June and the group also announces the proposed acquisition of Mars Capital's UK and Irish mortgage servicing businesses for an enterprise value of £15.5m.

Arrow's interim results showed revenues rising by 47.6% to £149.8m and underlying basic earnings per share up 35.8% at 14.8p .

The group declared an interim dividend of 3.2p per share - up 18.5%.

Group chief executive Lee Rochford said: "Arrow has delivered another period of strong, profitable growth. Revenues grew 47.6% to £149.8 million with underlying profit after tax up 35.5% to £25.8 million.

"Our returns-focused mindset continues to yield results with underlying Return on Equity increased to 32.8%. We are pleased to announce an interim dividend of 3.2p, up 18.5%.

"We continue to implement our active diversification strategy. Our capital-light asset management revenues have approximately doubled, and our portfolio investments are nicely balanced across geographies, asset classes and vintages.

"Our entry into Italy is progressing well, and, we have announced today our intention to acquire Mars Capital.

"This will add significantly to our UK secured servicing capabilities, and provide a low-cost strategic entry into Ireland, a new market for the Group.

"In H2, we expect to complete the sale of our 15% interest in MCS Groupe, which will deliver an excellent return to shareholders and enable us to redeploy capital in faster growing markets.

"Our pan-European market position, scale and unique origination capabilities continue to underpin our outlook for growth. We now address over €1 trillion of market opportunity, with leading platforms and are investing to ensure Arrow Global has leading capabilities in the industry.

"A strong pipeline in all of our core markets gives us confidence to meet our earnings expectations for the year and in delivering a medium-term underlying ROE percentage in the mid-twenties, high-teen EPS growth and a progressive dividend policy."

At 9:17am:

(LON:ARW) Arrow Global Group share price was +24.5p at 462.25p

Story provided by StockMarketWire.com

Related Company: ARW

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