A Manchester-headquartered credit management services provider has turned losses to profits after delivering a "strong" second quarter.
Arrow Global, which earlier this year agreed to a takeover by private equity firm TDR Capital, announced profit before tax and takeover costs to June 30 was £22.9m, up from a £135.9m loss during the same period last year.
With takeover costs standing at £22.4m, the statutory profit for the period stood at £500,000.
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Its EBITDA before takeover costs stood at £61.3m - up from last year's £100m loss, while income was up from last year's £3.4m to £166.3m.
Lee Rochford, group CEO, said: “Arrow continues to build momentum, delivering a strong second quarter performance despite continued economic disruption in our European markets, and with most of our colleagues working from home.
"We remain focused on the execution of our capital-light strategy and are making excellent progress. The continued successful deployment of ACO 1 means we are on track to begin fundraising for our second fund as planned.
"I am also pleased that our AMS business continues to see strong demand for its services, with our reputation as a responsible servicer helping us continue to win new contracts.
"Arrow shareholders voted in favour of the recommended all cash offer by TDR Capital at the court and shareholder meetings on May 21 and we continue to work with TDR to progress regulatory filings to satisfy the remaining conditions to the acquisition, which is expected to complete by the end of the third quarter.
"As we look towards the future, Arrow’s proven track record as a leading investor and servicer means we remain well positioned in the large and growing European market, as economic dislocation generates new opportunities at increasingly attractive returns.”
TDR's takeover completion, subject to regulatory approvals, is expected by the end of Q3 2021.
TDR Capital recently partnered with EG Group to buy Asda.
