DelfinGroup publishes consolidated financial results of 2019 and Q1 2020

18.05.2020

mintosblog

2019 audited results

The group’s turnover in 12 months of 2019, compared to the same period of the previous year, has increased by 16% to € 21.8 million, while the company’s loan portfolio amounted to € 31.6 million, which is an increase of 56% over the period.

In 2019, the group’s operations were affected by the changes in the Law on Consumer Rights that came into force on July 1, 2019. The audited results show that the company has been able to keep growing in size and in profitability under the new regulation. One reason for such a track record is that 36% of the group’s revenues are generated by pawnshop operations (pawn loans, sale of goods etc.) which are not subject to the new regulation. Another reason is the company’s overall efficiency achieved by the introduction of new value-adding services and products and by closely monitoring the cost base. The company has further increased the maximum loan amount to € 5 000. The group continued to develop its newest brand VIZIA reaching 75% annual growth in the net loan portfolio.

The company celebrated the 10-year anniversary in October 2019 and marked the first completed business decade by defining a brand-new corporate identity, including the change of name to DelfinGroup in February 2020. DelfinGroup’s upgraded mission is to create and provide innovative and custom finance solutions to its clients.

In Q4 2019, DelfinGroup prepared for the new € 5 million bond issue.  The subscription for the new bond issue was started on November 15, 2019, and by now is subscribed by 72% or € 3.6 million.

By implementing business strategy and all planned activities, the following financial results of the group were achieved in the year 2019 compared to the year 2018:

Net loan portfolio: € 31.55 million (+56.2%)

Assets: € 38.27 million (+43.5%)

Net profit: € 3.91 million (-3.5%)

On March 12, 2020, the Cabinet of Ministers of the Republic of Latvia decided to declare an emergency situation in the country in relation to COVID-19. Even though the length and negative economic impact of the emergency situation cannot be precisely estimated, the Company has made and will make in the future, decisions to ensure the Company’s liquidity, cost reduction and portfolio quality until the COVID-19 situation is solved

View DelfinGroup’s audited results for 2019

Q1 2020 interim results

The group’s turnover in the 1st quarter of 2020 compared to the same period of the year 2019 has increased by 17.5%, reaching € 4.81 million, while comparable profit amounted to € 1.04 million.

On February 4, 2020, the Enterprise Register of the Republic of Latvia registered changes in the name of the company. The change of corporate identity was necessary to better reflect what the company is doing and is planning to do moving forward. The group already offers a diverse mix of non-bank consumer lending services and is in the process of creating new custom finance solutions. The new name is future-oriented to facilitate the group’s growth through the development of new financial products and solutions.

DelfinGroup’s vision is to achieve the highest recognition level on the basis of its existing values: simplicity, accessibility, respect, and progress. The company has also defined three new values that are already an integral part of its development: ambition, mastery and major focus on the client.

In the first months of 2020, DelfinGroup operated in accordance with the company’s values, strategy and goals set. On March 12, 2020, a state of emergency was declared in the country in response to COVID-19, and consequently, the company’s focus was quickly changed from development to adjustment to the emergency situation. DelfinGroup focused on providing sufficient cash reserves, reduced sales and administration costs. In line with the economic situation, a stricter assessment of borrowers’ solvency was introduced, resulting in fewer but better-quality loans. The decisions made are oriented towards risk reduction and the speed of the company’s growth was reduced accordingly.

In the 1st quarter of 2020, the company attracted additional financing in the amount of € 2.5 million for ISIN LV0000802379 bonds issued on 15 November 2019, which have been redeemed for the total amount of € 3,569,000 or 71% as of 31 March 2020. The raised funds were used to partially repay existing liabilities to the Mintos peer-to-peer lending platform and to repay the principal amount of ISIN LV0000801322 bonds.

Following the impact of COVID-19 in Europe in March 2020, investor activity on the Mintos peer-to-peer lending platform declined and interest rates rose. At the end of the first quarter of 2020, the effective rate of the company’s liabilities on the Mintos platform increased to 11.36%, followed by a stabilization of the rate and an increase in investor activity in April 2020.

By implementing business strategy and all planned activities, as well as by the introduction of emergency solutions in response to the effects of COVID-19, the following financial results of the Group were achieved in the 1st quarter of 2020:

Net loan portfolio: € 32.49 million (+3%)

Assets: € 40.33 million (+5.4%)

Net profit: € 1.04 million (+2.6%)

*Net loan portfolio and Assets compared to the amounts as at 31.12.2019.

**Net profit is compared to the respective period of the year 2019.

View DelfinGroup’s presentation on Q1 2020 results

View DefinGroup’s unaudited financial statements for Q1 2020

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