Published: 2013-03-21 08:50:33 CET
Mash Group Oyj
Press release

Euroloan Consumer Finance Plc Annual Review 1.1.-31.12.2012

New markets opened and expanding volumes during 2012. Sales growth was 43,3%, with 25,4% Return on Equity.

Helsinki, Finland, 2013-03-21 08:50 CET (GLOBE NEWSWIRE) -- Euroloan Consumer Finance PLC grew its operations into new markets during 2012. Record investments were made into new business operations and production systems while retaining a healthy profitability, liquidity and solidity. Total annual sales volumes grew to over 8,6 million EUR, and the total balance grew with 38,8% to 13,9 million EUR.


Sales growth 43,3 %
Balance Growth 38,8 %
Equity growth 19,5 %
EBIT/Sales 25,0 %
ROCE 18,0 %
ROE 25,4 %
Capital turnover rate 250,6 %
Equity ratio 26,9 %
Debt ratio 73,1 %


   Intangible assets 552 782,32 1 944 929,51
TOTAL NON-CURRENT ASSETS 552 782,32 1 944 929,51
  Current Receivables 8 283 887,04 11 443 165,39
  Cash and Bank Receivables 1 186 535,33 522 285,18
TOTAL CURRENT ASSETS 9 470 422,37 11 965 450,57
TOTAL ASSETS 10 023 204,69 13 910 380,08
  Share Capital 150 000,00 150 000,00
  Share Issue    
  Total Funds 817 108,19 817 108,19
  Prepaid dividends -324 000,00 -263 100,00
  Retained earnings 893 687,69 2 161 572,41
  Profit for the Financial period 1 591 884,72 873 394,74
TOTAL EQUITY 3 128 680,60 3 738 975,34
    Current Liabilities 6 894 524,09 10 171 404,74
TOTAL LIABILITIES 6 894 524,09 10 171 404,74
TOTAL EQUITY & LIABILITIES 10 023 204,69 13 910 380,08



SALES 6 007 011,88 8 605 117,67
Personnel costs -516 256,71 -435 243,10
Other business-related costs -2 698 099,35 -6 021 025,70
EBIT 2 792 655,82 2 148 848,87
Financial income and expenses -630 327,46 -985 222,85
EBT 2 162 328,36 1 163 626,02
Tax -570 443,64 -290 231,28
Net Profit 1 591 884,72 873 394,74


The interim quarterly reports for 2012 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. An estimated 0,3 million EUR of long-term loan receivables turnover generated during 2012 have been moved to 2013 according to current accounting principles for interest income, increasing 2013 sales figures and operating profit by the same amount, as most loan-related costs were taken in 2012. The actual total sales generated during 2012 was an estimated 8,9 million EUR. The financial statement includes depreciation of assets, credit losses and revenues from the sales of written-off receivables.


From the CEO Tommi Lindfors

2012  - A year of rapid growth and international expansion

2012 was the best year to date for Euroloan Consumer Finance PLC (later Euroloan), combining the successful launch of operations in the Swedish market with a total sales growth of 43.3%. Improvements in scoring parameters together with a larger customer base resulted in a significant reduction of net credit loss percentage in 2012. Considerable investments were made during the year into both proprietary IT systems as well as into building a strong expert organization. The investments form the engine, which will enable Euroloan to realize the strategic goals set for the company for the next three to five years. The company is also in an excellent position to realize the ambitious and challenging targets set for 2013.

The Euroloan Brand
Our goal was to strengthen the Euroloan brand in Finland and start branding work internationally to selected markets during 2012. Our market studies show that our brand is currently well known in Finland and moderately known in Sweden. We are determined to make our brand known to a much wider audience during 2013. We also invested in raising our customer service level, and our customers showed their appreciation by increasingly using our services.

Changes in the board  
Mr. Pauli Hentunen, co-founder and previous CEO (2007-2011) was chosen to be our new Chairman of the Board. Mr. Hentunen set his first priority to building a stronger board to help better position us strategically in the international markets.

International operations
Euroloan launched its Swedish business operations with intensive testing in Q2/2012. As a result, we have proven that the efficient, scalable and highly automated business model of Euroloan is working also in the Swedish market and the company will continue to expand its market share in Sweden during 2013.
The company continued with its expansion in the Baltic region, with subsidiaries founded in Poland and Denmark. The choice of countries was made based on an extensive market research into key European markets. We are confident that our operating model will be a success in the new markets, especially in the very promising Polish market, already by the end of 2013. The establishment of new markets will also continue during 2013.

Personnel and management
Our personnel form the heart of Euroloan. Our key principle of recruiting only the very best experts in each field has been a success, and our employees continue to deliver excellent performance. We ask a lot from our employees but also amply reward success. During 2012 we have successfully recruited the very best talents, including our enterprise architect, software developers, customer service manager, test manager and our country managers of Sweden and Poland to name only a few of the people that form our “Team Euroloan”. We have constantly improved our working environment, and according to our employees we have been successful in creating an excellent workplace. Every day we strive to earn the confidence given us and the hard work done by our employees.
I want to thank Team Euroloan for a solid year and for placing the company in an excellent situation for continued growth during 2013. All past and future growth of the company depends on the people doing all the work. With the growth comes increasing complexity, which requires a concerted approach and expertise from many different fields. We are lucky to have a strong team and constant co-operation that have successfully solved the big challenges we had during the year. I would also like to thank the valuable input and dedication of our key business partners.

The strong growth of Euroloan was made possible by finding sufficient and reasonably priced funding and the right financing partners. We were able to raise senior debt and also able to further develop the funding structure 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.

IT Systems
The “factory floor” of Euroloan consists of top-end proprietary IT systems that we are deservedly very proud of. A new generation of consumer finance services based on our own operating model will enable faster and cheaper international scaling of our business with a tested concept also in highly competitive and regulated markets. 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.

Over 7.000 trees planted and 500.000 kgs of CO2 reduction
We are happy to see how well our brand reflects our values of high ethics and morale, environmentally friendly operations and sound corporate governance principles. We partner with, a non-profit organization, to ensure Euroloan’s operations are not only carbon neutral, but carbon negative, with a reduction to date 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 over 7.000 certified trees in deforested areas around the world. That, we are happy to say, makes for a sizable forest when the trees grow tall.

Looking forward
Our strategic goal, stated already in 2009, to become “the most valuable Internet Consumer Finance provider in Europe”, is very challenging. We will be taking long leaps towards reaching this goal during 2013. 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.
We constantly make customer surveys and based on them new profitable products will be launched during the first half of 2013, which is expected to be another year of strong growth.

For more information about Euroloan Consumer Finance PLC please see:

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