Published: 2012-12-11 10:15:48 CET
Mash Group Oyj
Press release

Euroloan Consumer Finance PLC interim report 1.7.-30.9.2012

New services with lower APR to be launched by Euroloan. The third quarter continued the strong growth in all markets with Euroloan's sales growing 49,1% and balance growing 32,0% from Q3/2011. The company's liquidity remained excellent while solidity continued to improve, with equity increasing by 42,6% compared with Q3/2011.

Helsinki, Finland, 2012-12-11 10:15 CET (GLOBE NEWSWIRE) -- Euroloan Consumer Finance PLC is well prepared for developments in key markets and has completely renewed its business model, offering new services with longer loan duration and lower APR. The new services will be safe, secure and fast as before but with many critical improvements.

The new services have been tested over a long time period by Euroloan's customers and have been exceedingly popular with larger amounts and more options for loan repayments as well as competitive prices. Based on the results, the impact on company profitability will be positive, with a slightly lower capital turnover rate due to longer loan periods.

The business model and service offering improvements have been developed over the last two years, based on developments in customer preferences and key markets. The new service concept is suitable for most European markets, and well adapted to growth in increasingly regulated markets, including the home market.

Third quarter results were good with sales growth in all markets compared both to Q3/2011 and Q2/2012. The sales volume of 2.45 million EUR was an improvement of 49,1% compared with Q3/2011 and 15,2% from the previous quarter. EBIT and net result for Q3 contain large one-time costs and investments related to business model changes and opening new markets. The figures are not comparable with other quarters as no investment costs have been activated for the quarter. The final balance and profit impact of investments will be shown in the annual financial statement. The cost of financing decreased during the third quarter as the average cost of financing has decreased. The liquidity position of Euroloan remains excellent, while the balance sheet of Euroloan continued to strengthen, with equity exceeding 4,0 million EUR.

 

Business growth in percent:

  Q1/2012 Q2/2012 Q3/2012
  vs Q1/2011 vs Q2/2011 vs Q3/2011
Sales growth 116,4 % 40,5 % 49,1 %
Balance growth 101,5 % 22,7 % 32,0 %
Equity growth 96,6 % 64,9 % 42,6 %

 

Forecast

The successful opening of new markets is expected to lead to continued higher sales volumes. An increasing portion of future growth is expected to come from these new markets. Expansion-related costs will have some impact on EBIT and net profit also for the fourth quarter, while improving long-term growth and profit potential. The company expects the sales volume for the entire year to be considerably higher than for the previous year.

 

Interim financial statement Q3/2011 and Q3/2012

 

BALANCE SHEET Q3/2011 Q3/2012
ASSETS    
     
NON-CURRENT ASSETS    
   Intangible assets 656 189,84 1 189 665,49
TOTAL NON-CURRENT ASSETS 656 189,84 1 189 665,49
     
CURRENT ASSETS    
  Current Receivables 7 905 666,16 11 042 114,72
  Cash and Bank Receivables 1 981 105,91 1 830 787,92
     
TOTAL CURRENT ASSETS 9 886 772,07 12 872 902,64
     
TOTAL ASSETS 10 542 961,91 14 062 568,13
     
EQUITY & LIABILITIES    
     
EQUITY    
  Share Capital 150 000,00 150 000,00
  Share Issue    
     
  Total Funds 730 934,86 817 108,19
  Prepaid dividends    
  Retained earnings 893 687,69 2 035 572,41
  Profit for the Financial period 1 057 319,58 1 035 915,09
     
TOTAL EQUITY 2 831 942,13 4 038 595,69
     
LIABILITIES    
    Current Liabilities 7 711 019,78 10 023 972,44
     
TOTAL LIABILITIES 7 711 019,78 10 023 972,44
     
TOTAL EQUITY & LIABILITIES 10 654 293,97 14 062 568,13
     
     
     
     
INCOME STATEMENT Q3/2011 Q3/2012
     
SALES 1 646 591,79 2 454 731,00
     
Personnel costs -125 451,69 -193 251,44
     
Other business-related costs -657 679,89 -1 819 474,99
     
EBIT 863 460,21 442 004,57
     
Financial income and expenses -224 630,37 -241 473,60
     
EBT 638 829,84 200 530,97
     
Tax -166 095,76 -52 138,05
     
Net Profit 472 734,08 148 392,92

 

The interim report contains unaudited figures and cost allocations, which may be different from those in the final annual financial statement. The financial statement includes the allocated credit losses for the quarter and revenues from the sales of written-off receivables. Investment cost activations have not been calculated for the quarterly figures.

For more information about Euroloan Consumer Finance PLC please see: http://www.euroloan.com

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