Arrow Global (ARW) - which squeezes value from distressed debt portfolios, purchased from mainstream lenders - has continued to make progress. During the second quarter, it purchased three debt portfolios from Portuguese lenders with a face value of £800m for an aggregate £62.4m.
That will significantly bolster Arrow's existing Portuguese business and has led broker Numis Securities to upgrade earnings estimates. Specifically, Numis has upped its 2014 earnings forecast by 2 per cent to 17.3p, while its 2015 and 2016 estimates have been boosted by 6 per cent (to 21.6p) and 10 per cent (to 24.9p), respectively. The greater earnings impact from the deals in future years reflects the litigation structure in Portugal which brings collection costs forward.
