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.

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).