Arrow Global Share Discussion Threads

[effortless cool] 29/4/2017 11:06

What a good share this is, and still looking great value. One of the 'Tips of the Week' in this week's IC.

[azure8269] 12/4/2017 15:42

so was that a tree shake? or resistance above 360? Like the 329 in early Feb 17

[nfs] 30/3/2017 10:25

Really nice breakout in recent daysOnwards and upwards

[3rd eye] 24/3/2017 09:22

Featured here yesterday, share price UPGRADE and breakout.

Arrow Global Group ARW JP Morgan Cazenove Overweight 345.25 342.50 385.00 410.00 Reiterates

SP Target now 410p.



6 month chart......



Company

Arrow Global is one of Europe's largest and fastest growing providers of debt purchase and receivables management solutions, with £8.6 billion assets under management, including £6.9 billion of purchased assets. Its data driven, compliance focused and customer-centric business model offers a tailored approach for creditors and customers alike. It uses its data capability to acquire portfolios underpinned by paying accounts, with the opportunity to convert non-paying accounts. Its intensive data analysis and account segmentation help to ensure that each customer is offered the most suitable solution for their individual circumstances. It has developed data analytical tools which provide an optimised understanding of individual customers' circumstances and helps it adhere to regulatory and compliance requirements, for which Arrow Global has an established track record.

INVESTMENT RATIOS
2016 (A) 2017 (E) 2018 (E)

EBITDA £111.07m £229.17m £m
EBIT £102.42m £m £m
Dividend Yield 2.36% 3.39% 4.09%
Dividend Cover 3.42x 2.83x 2.76x
PER 12.36x 10.41x 8.87x
PEG 0.38f 0.56f 0.51f
Net Asset Value PS 0.09p p p

[martinthebrave] 02/3/2017 14:40

RNS's really don't get much better. Topped up this morning.

[puku] 02/3/2017 13:56

indeed - I expect share price to rise steadily now to 350p and beyond. Will keep mine for medium term at least.

[azure8269] 02/3/2017 07:57

Impressive results today. good luck all

[puku] 23/2/2017 13:08

spoke too soon - retrenched

[puku] 15/2/2017 17:02

a nice surge in the share price leading up to the Results on 2 March.

[effortless cool] 14/2/2017 21:14

Nice write up from Moody's -

London, 14 February 2017 -- Moody's Investors Service (Moody's) has today upgraded to Ba3 from B1 the Corporate Family Rating (CFR) of Arrow Global Group PLC (Arrow). Moody's has also upgraded to Ba3 from B1 the ratings of the backed senior secured notes issued by Arrow Global Finance plc, a wholly-owned subsidiary of Arrow. The outlook is stable on all ratings.

The upgrade reflects Moody's view that Arrow's franchise and credit fundamentals have materially improved over the past two years and are now consistent with a Ba3 rating. The agency expects Arrow to continue to maintain its strong earnings generation capacity and debt leverage at current levels going forward.

A list of affected ratings is provided at the end of this press release.

RATINGS RATIONALE

The key drivers of today's rating action are the strengthening of Arrow's franchise in Europe and the increasing diversification of its business model through a shifting away from the debt purchasing segment and an increased contribution from asset management services. Additional elements supporting the rating upgrade were the moderate debt leverage, which has been consistently lower than peers, its continuously strong earnings generation capacity and lengthened maturity profile.

Over the past two years, Arrow consolidated its presence in the UK and expanded in other European countries, such as Portugal, Belgium and the Netherlands and more recently announced the acquisition of a small company, operating in the servicing business in the Italian structured finance market. This increasing geographical diversification, which the agency believes has been conducted with a prudent approach, strengthened Arrow's franchise, making it one of the leading players in the region. Positively, these mergers also led to earnings diversification: revenues from asset management services accounted for 19% of total revenues in the first nine months of 2016, compared to just 9% of 2015.

Despite the numerous mergers and the related costs, Arrow has maintained solid earnings generation capacity: net income over average managed assets has averaged 5% in the period 2013 -- 2015 and, excluding one-off items, Moody's expects this ratio to further improve in 2016. Debt leverage, calculated as gross debt over adjusted EBITDA, has been moderate and lower than rated peers, ending at 3.5x at end-September 2016.

Finally, owing to the refinancing of its sterling bond in September, Arrow was able to lengthen its maturity profile, which had a debt duration of 6.2 years at end-September 2016, and lower its cost of funding. Both elements will support profitability over the outlook period.

RATIONALE FOR THE STABLE OUTLOOK

The outlook is stable reflecting the favorable market conditions, the company's lengthened maturity profile, strong earnings generation capacity and the agency's expectation that the company will continue to maintain its debt leverage metrics at levels consistent with a Ba3 rating.

[martinthebrave] 14/2/2017 15:42

Moody's raise credit rating

Arrow Global Group PLC (the "Group"), one of Europe's leading purchasers and managers of debt, is pleased to announce that its credit rating has been upgraded by Moody's to Ba3 from B1. The issue rating on senior secured notes issued by Arrow Global Finance Plc has also been raised to Ba3 from B1.

[effortless cool] 09/2/2017 09:13

RB1206,
There is no intention to repay the debt, just to refinance it from time to time. The business model requires debt on the balance sheet.

[rb1206] 09/2/2017 08:39

Nice B/O, but speed of debt rising here is bit scary, anyone else have same concern here or if can shed some light how it will be paid in long term. Any views greatly appreciated.

RB

[davebowler] 06/12/2016 08:56

insider/northwest/arrow-enters-italian-market-with-14m-acquisition?utm_source=northwest_newsletter&utm_campaign=northwest_news_tracker&utm_medium=deals_article

[davebowler] 14/11/2016 10:56

From the results RNS 9 Nov;

Purchased loan portfolios

We acquired debt portfolios with a face value of GBP1,166.5 million for a purchase price of GBP154.6 million (including GBP35.3 million from the Vesting Finance acquisition), equating to an average purchase price of 13.3p per GBP1. Of the purchase price invested, 39% related to secured portfolios.
!

[dr know] 19/10/2016 09:14

Mutli-year high achieved this morning.

I wonder if that takeover rumour has legs or if it's just that people are realising it's a very good money generating stock at a time when income is hard to find.

[rb1206] 13/10/2016 08:11

Spread is crazy first thing in the morning.

[rb1206] 12/10/2016 13:43

Effortless Cool ; thx for your post. I don't fully understand how all this works, hence my question. I understand they buy poor quality debt and get better return on that by 20%,30% etc. Still, they are borrowing money to buy the debt, which will need to be paid at some point....the speed of that borrowing going up is quiet staggering.

[effortless cool] 12/10/2016 09:25

RB1206,

My understanding is as follows.

(1) Arrow take on poor quality debt at a fraction of face value.

(2) They work to improve the quality of that debt.

(3) They issue their own, higher quality debt, at competitive rates due to the security from the cashflows from the debt they own.

(4) They use the capital raised to buy in more poor quality debt.

Repeat ad nauseum.

There is no intention to pay down the debt because it is fundamental to the business model.

[rb1206] 12/10/2016 08:23

Can anyone shed some light on rising debt levels here,Debt end of last year, it was £515m now at interim its £683.8m. That would worry me, if anyone have an explanation how they looking to pay off/reduce their debt would be great.

Thx in advance.

Rb

[davebowler] 11/10/2016 11:16

Arrow Global Group Plc is today hosting a Capital Markets Day for analysts and investors starting at 2.30pm at the offices of Instinctif Partners, 65 Gresham Street, London EC2V 7NQ. The event will focus on giving an overview of the Group and its enlarged European operations. No new material trading or financial information will be provided.

The presentation slides will be made available on the Group's website from 2pm with the presentation and webcast commencing at 2.30pm with the following access details:

hxxp://www.investis-live.com/arrow-global/57ea5056536f8c080018377b/190r5

To join by conference call only:

From United Kingdom (Local) 020 3059 8125
All other locations + 44 20 3059 8125
Password Arrow Global
This must be quoted to the Operator in order for participants to gain access to the conference.

Arrow Global Group PLC [phone]
Rob Memmott, Chief Financial Officer

[rb1206] 21/9/2016 23:28

Arrow Global : Peel Hunt starts with buy; target price 340p

[nfs] 21/9/2016 08:08

Mentioned in the times newspaper also

[rb1206] 21/9/2016 08:07

Arrow Global Said to Attract Interest From Buyout Firms.