Published: 2012-04-02 15:00:58 CEST
Mash Group Oyj
Press release

Euroloan Consumer Finance Plc Annual review 1.1.-31.12.2011

Exceptional growth and profitability during 2011. Sales growth was 66,7% while EBIT growth was 153,7%

Helsinki, Finland, 2012-04-02 15:00 CEST (GLOBE NEWSWIRE) -- Euroloan Consumer Finance PLC had a record year across the board in 2011. Rapid growth was combined with increased profitability, thanks to strict cost control measures and scale benefits from automation and IT investments during previous years. Sales volumes gre to close to 1.95 million EUR during Q4/2011, and total annual sales reached over 6.0 million EUR. Solidity and liquidity remained on an excellent level, even with a balance growth of 119.1%.


  2011 vs. 2010
Sales growth 66,7 %
Balance growth 119,1 %
Equity growth 92,9 %
EBIT growth 153,7 %
Net Profit growth 136,0 %


   Intangible assets 585 746,99 552 782,32
TOTAL NON-CURRENT ASSETS 585 746,99 552 782,32
  Current Receivables 3 700 512,80 8 283 887,04
  Cash and Bank Receivables 287 567,64 1 186 535,33
TOTAL CURRENT ASSETS 3 988 080,44 9 470 422,37
TOTAL ASSETS 4 573 827,43 10 023 204,69
  Share Capital 150 000,00 150 000,00
  Share Issue    
  Total Funds 466 329,71 817 108,19
  Prepaid dividends -288 000,00 -324 000,00
  Retained earnings 619 113,22 893 687,69
  Profit for the Financial period 674 574,47 1 591 884,72
TOTAL EQUITY 1 622 017,40 3 128 680,60
    Current Liabilities 2 951 810,03 6 894 524,09
TOTAL LIABILITIES 2 951 810,03 6 894 524,09
TOTAL EQUITY & LIABILITIES 4 573 827,43 10 023 204,69



SALES 3 602 818,09 6 007 011,88
Personnel costs -291 891,81 -516 256,71
Other business-related costs -2 210 306,18 -2 698 099,35
EBIT 1 100 620,10 2 792 655,82
Financial income and expenses -183 136,69 -630 327,46
EBT 917 483,41 2 162 328,36
Tax -242 908,94 -570 443,64
Net Profit 674 574,47 1 591 884,72


The interim quarterly reports for 2011 contained unaudited figures and cost allocations, which may be different from those in the final annual financial statement. Some preliminary figures and reference data in previously published quarterly reports have been adjusted for use in future quarterly reports. The financial statement includes revenues from the sales of written-off receivables.


From the CEO Tommi Lindfors

2011 – High growth and strong performance

For Euroloan Consumer Finance PLC (later Euroloan) 2011 was a year of unparalleled success, combining rapid growth and excellent financial performance with an improved business model and stronger organization. The goals set for 2011 were very ambitious, but were met and exceeded in all areas by the actual performance of the company. With sales growing 66,7 % from the previous year, in a very competitive market with decreasing prices Euroloan managed to increase EBIT by 153,7 % and net profit by 136,0 %, while balance growth was 119,1 % end equity growth was 92,9 %. The numbers show that we are definitely doing many things right and our set goals for 2012 seem realistic even as they are ambitious.

Systems, processes and international operations

The extensive development work and investments made into Euroloan´s new proprietary finance systems continued to bear fruit by enabling a fast and error free customer experience, considerably lower transaction costs and improved support for international operations. This was achieved through the hard work and high motivation of our staff and business partners working with the project.

Euroloan also turned its focus toward international expansion, with extensive market research of key European markets and building operations in Sweden, where Euroloan Sweden is planned to open with low volume testing during Q1/2012. We believe that Euroloan´s efficient, scalable and highly automated model will be a success in the Swedish market already by the end of 2012.

3097 trees planted and 310 tons of CO2 reduction

We are happy to see how well our brand reflects our values of high ethics and morale, environmentally friendly operations and corporate governance. We partner with, a non-profit organization, to ensure Euroloan’s operations are not carbon neutral, but carbon negative, with a reduction to date of 310 tons of CO2, by far exceeding all emissions of our staff both at work and at home. What we are even more proud of is that in addition to acquiring emission rights, Euroloan has already planted 3097 trees in deforested areas of the world.

The Euroloan Brand

Our goal was to strengthen the Euroloan brand in 2011. Our market studies show that our brand is well known in Finland after only our first full calendar year of operations with the Euroloan brand. We also raised our level of customer service, and our customers showed their appreciation by using our services – the best thank you a corporation can get with a 67% sales growth.

Changes in the board and management

At the beginning of November I moved into a more operational role as CEO and stepped down as Chairman. Mr. Pauli Hentunen, who helped build the operations as CEO from the start, is not the easiest man to replace, and we are happy to keep his experience and expertise in the board of Euroloan.

We are happy to have found as our new Chairman a giant in the finnish business arena: Mr. Seppo Sairanen. Seppo has an amazing track record in the financial industry which includes the 2007 sale of FIM Group PLC to Glitnir Bank – one of the largest transactions made in the financial sector in recent (Finnish) history. Seppo saw the massive potential of our concept - international scalability combined with low transaction costs, and started the process of strengthening our board with new members.

Personnel and management

Excellent performance requires excellent performers. Adhering to the key principle of recruiting only the very best, Euroloan continued to find the best possible talents available in the market. We have continuously succeeded in making excellent recruitments and 2011 was no exception. Our new executive secretary, COO, CMO and CIO are all exceptional talents and fit right into “Team Euroloan” from the start.

I want to use this opportunity to give a big Thank You to our whole team of hardworking experts. This includes our amazing staff in forming loan processes, optimizing scoring parameters, customer and business analysis, marketing and forming graphic material, planning, building, testing and maintaining complex IT systems, building international operations, taking care of our customer service and investors, securing finance and not to forget our business partners who had a huge part in the operative phases of all the mentioned operations.

The past and future growth derives from the skills and working morale of our whole team, which are excellent. We also have several key business partners who we see as integral to our success. I cannot thank our staff and outsourced experts enough.

A credit card in your smartphone

Euroloan also had a year of many firsts: We launched the first smartphone application “Euroloan Mobi” in: the world that enables our customers to draw credit to their bank account – we call it a virtual credit card. The application also gives directions to the closest ATM and enables to calculate discounted prices in different currencies. How many euros is 1585 Swedish Crowns minus 18% discount? The application tells you the answer in a second.


In finance, the past year was all about liquidity, whether regarding the PIIGS countries, banks worldwide or consumer finance. At Euroloan, our growth rate required sufficient and reasonably priced funding which in turn required finding the right partners. In 2011 we took major steps in this field. Securing financing proved to be one of the key drivers for the remarkable result of Euroloan in 2011. We were able to raise senior debt at a lower cost than before and also able to further harmonize the funding for the company.

Together with our main banking partners we were able to raise all the debt we needed through a series of bond issues. To our investors and financers we have been able to ensure good and stable returns, while ensuring excellent liquidity for the company.


In all its operations, Euroloan focuses on minimizing risk, an approach which will continue throughout 2012.  The past year proved that tremendous growth rate can be maintained while reducing risk level. International operations follow the same risk management framework and principles. Improvements in scoring parameters together with a greater customer base resulted in a significant reduction of net credit loss percentage in 2011.

In financing, the company maintained a low risk level with and equity ratio of 31%. Euroloan’s loan receivables to net debt ratio was at 145% which reflects our reduced risk level.  Further, Euroloan’s liquidity position was sound at year end with almost 1,2 million Euros in cash.

We expect to follow this course also in 2012. As an example, the new products launched in 2012 with longer maturities and bigger loans up to 2000 euros require higher scoring results from our customers.

Looking forward

2012 brings a new set of challenges, which the company is well prepared to meet with the strong position achieved in 2011.

Our strategic goal, stated already in 2009, to become “the most valuable Internet Consumer Finance provider in Europe”, is very challenging. We are taking long leaps towards reaching this goal during 2012. Our advanced systems and business processes, a great team of top professionals and having secured finance together form a strong base that makes it very possible to achieve our goal.


For more information about Euroloan Consumer Finance PLC please see:

         Jonas Lindholm, Group CFO, Board Director
         Phone: +358 10 217 1003