New issue Arrow Global (ARW)

I bought 2000 at 224.96.

From Naked Trader:

It's a debt collector and for the forseeable future you would reckon its services are going to be in some demand.

I like it, it seems to be growing fast. A 55% rise in revenues for the 6 months to June 30th bode very well indeed and if it can push on the current valuation has some decent upside to it I think.

I'd be surprised if there wasn't 25% upside from here in the next 6 months, maybe more.

End

Market Cap:£392 million as of today.



Arrow Global Group PLC
Initial Public Offering - Announcement of Offer Price

Arrow Global, one of the UK's largest and fastest growing consumer debt purchasers and providers of receivables management solutions today announces the successful pricing of its initial public offering (the "Offer").



· The offer price has been set at 205 pence per Ordinary Share (the "Offer Price").



· Based on the Offer Price, the market capitalisation of the Company will be approximately £357.6 million on Admission (as defined below).



· The Offer comprises 92,139,603 Ordinary Shares (the "Offer Shares") (prior to any exercise of the Over-allotment Option), representing 52.8 per cent. of the Company's Ordinary Shares that will be in issue at Admission.

Numis comment:
"Arrow reported results for the first nine months of the year with collections increasing 13% to £244m (FY forecast £286m), revenues increasing 41% to £232m (FY forecast £234m), Asset Management income increasing 64% to £51m (FY forecast £74m) and underlying NPAT increasing 34% to £39m (FY forecast £42m). Arrow has purchased £155m (FY forecast £233m) so far this year driving an increase in the 120-month ERC to £1,690m (FY forecast £1,545m). The Group continues to see attractive opportunities across its core markets, giving management continued confidence in its “ability to meet earnings expectations for the year, deliver a medium-term underlying ROE percentage in mid-twenties, highteens EPS growth and a progressive dividend policy”.

Key reasons to own Arrow: Arrow is a high margin, high growth specialist in an industry that lends itself to natural monopoly status as enhancing returns is dependent on proprietary data and analytics that can't be replicated. With debt purchase in its infancy in many of Arrow's markets and unsecured debt having consistently grown at a multiple of GDP we see Arrow as operating in a growth industry where it is gaining market share. With its customers paying just £25 per month they are already in recession, making the business less economically sensitive. Unlike a bank that may have an upside of 1% on a mortgage and a downside of 100%. Arrow often has an upside of 1,000% and a downside of 100%. Arrow is increasingly a very specialist noncapital intensive Asset Management business. Unlike most asset managers because of its data and analytics Arrow faces less competition in a specialist market segment where passive funds cannot operate and commodity capital needs a partner. The group's data and analytics allow Arrow to enhance returns so that a bank can sell a portfolio that it could not make an economic profit from and Arrow can substantially enhance the returns, so much so that Arrow has just reported a 33% ROE."

Shore Capital today reaffirms its buy investment rating on Arrow Global Group (LON:ARW) and set its price target at 465p.

Results for the three months ended 31 March 2018

Highlights
High growth

· Continued progress expanding our specialist asset management product offering for third party capital seeking exposure to the attractive European NPL space

· New strategic partnership with M7, the leading pan-European specialist commercial property investor, providing additional depth to our real estate investment capabilities across our European operations

· Strong organic portfolio purchases, of £79.9 million surpassing Q1 2017's record Q1 volumes (Q1 2017: £77.4 million) with broad diversification by geography and asset class

· Revenue growth of 19.6% supported by a 11.6% increase in core collections and a 19.9% increase in capital-light Asset Management income

· The structural backdrop for future growth remains attractive, with both primary NPL sales and an increasingly important secondary market continuing to grow strongly.

http://www.moneyam.com/action/news/showArticle?id=5965079

StockMarketWire.com
Arrow Global Group, an investor and asset manager in non-performing and non-core assets, said Friday it had completed the acquisition of Europa Investimenti, an originator and manager of Italian distressed debt investments.

'The acquisition of Europa Investimenti represents another logical step of our considered entry into the Italian market. The combination of a highly-skilled management team with an excellent track record of value creation and access to our strong funding structure, creates a powerful investment platform to drive strong returns from attractive corporate and SME assets,' said Lee Rochford, CEO.

'When combined with our diverse institutional fund client base and our strategy to continue to raise third-party funds to invest in high-return assets, we remain excited by Europa Investimenti's potential to grow income from the Group's capital-light Asset Management and Servicing business.'

Peel Hunt today reaffirms its hold investment rating on Arrow Global Group (LON:ARW) and set its price target at 252p.

Results for the nine months ended 30 September 2018
Reduced leverage while continuing to grow a diversified platform generating strong cashflows at high returns

Arrow Global Group PLC (the "Company", and together with its subsidiaries the "Group"), a leading European investor and asset manager in non-performing and non-core assets, announces its results for the nine months ended 30 September 2018.

Key Highlights

Ø Strong Group operating and financial performance
· Core collections increased 18.2%, driving a strong adjusted EBITDA result, up 28.8%

· Underlying profit after tax increased 10.2% to £42.9 million

· Profit after tax increased 28.4% to £20.5 million

· Underlying LTM ROE of 33.4%

· Improved underwriting performance increased to 104% of original forecast

· Completion of the Europa Investimenti S.p.A. acquisition marks the successful scaling of our European platform with the primary focus now on organic growth

Ø Investment Business
· Record organic portfolio acquisitions of £200.1 million, increasing from £155.0 million in Q3 2017, and on track to deliver £230 million to £240 million of portfolio purchases

· Non-UK portfolio investments now represent more than 50% of ERC

Ø Asset Management & Servicing business (AMS)
· Third party AMS income increased 25.1% to £63.3 million

· Assets under management increased 22.6% to £51.5 billion

· New target to double AMS income, growing to 50% of total income over the next five years

Ø Strong balance sheet discipline
· Leverage decreased to 3.8 times secured net debt to adjusted EBITDA, with new five year target leverage ratio of 3.0 to 3.5 times

· Strong cash interest cover at 6.6 times

· Commitment to prudent balance sheet management maintained

· Attractive WACD of 3.9% and no bond maturities until 2024; strong liquidity with £128.8 million cash headroom to fund organic growth

Commenting on today's results, Lee Rochford, Group chief executive officer of Arrow Global, said:
"I am delighted that our successful diversification of the business continues to bear fruit. Our Investment Business continues to thrive, with growing volumes and our highly disciplined approach generating resilient cashflows and unlevered returns ahead of our mid-teens target.

"Our AMS Business continues to flourish and its strong growth contributes to an improving diversification and quality of earnings.

"In combination, our two operating segments are generating a strong increase in earnings and cashflow at very attractive returns and we remain confident in delivering our targets for the year."

Peel Hunt today reaffirms its hold investment rating on Arrow Global Group (LON:ARW) and raised its price target to 265p (from 252p).