Arrow Global 2017 interim dividend
Growth
Strong organic portfolio purchases up 30.3% to £125.1 million (H1 2016: £96.0 million)
Revenue growth of 47.6% supported by 11.3% increase in core collections and 98.6% increase in Asset Management income from H1 2016
Completion of the acquisition of Zenith Service S.p.A. in Italy
Agreed terms to acquire Mars Capital, expanding UK secured servicing capabilities and entering the Irish market
Operational excellence
Overall collections performance at 103% of original underwriting forecasts, underlining the continued quality of data and analytics
Launch of a group-wide One Arrow programme to support future growth. This will invest in centres of excellence for our group capabilities, operational processes and platforms focussed on enhancing the customer journey and increasing productivity
Further investment in legal collection costs enhances the value of the back book and drives additional ERC
Financial excellence
84 month ERC increased to £1,478.5 million (31 December 2016: £1,339.1 million).
Increase in capital-light Asset Management revenues to 22.8% of total revenue (H1 2016: 16.9%)
Successfully raised €400 million senior secured floating rate notes due 2025, at a coupon of E+2.875%, reducing the Group's weighted average cost of debt to 3.9% (31 December 2016: 4.9%) and average debt facility maturity of 6.8 years as at 30 June 2017 (31 December 2016: 5.9 years)
Strong returns
Underlying profit after tax up 35.5% to £25.8 million (H1 16: £19.1 million)
Underlying basic earnings per share (EPS) increased 35.8% to 14.8p (H1 2016: 10.9p)
Statutory profit after tax down to £3.7m (H1 16: £16.5m), reflecting the impact of post-tax costs associated with the refinancing in March 2017 of £22.1 million
Underlying LTM Return on Equity (ROE) of 32.8% (H1 2016: 27.4%)
Interim dividend of 3.2p per share (H1 2016: 2.7p), up 18.5%
