Financial Statement Release
CORRECTION: SIA AgroCredit Latvia unaudited annual report 2016
Marupe, 2017-03-01 08:40 CET --
Made corrections - report for 12m in English attached. No changes made in report in Latvian.
SIA AgroCredit Latvia publish unaudited annual accounts for 12 months, 2016.
In 2016 the company was continously growing, showing gradual and well balanced development trend. The share capital of the company was raised by 1/3rd and that allowed to acquire additional financial resources from outer investors and thus grow the credit portfolio. The total credit portfolio achieved nearly 6 mEUR by the end of the seeding season.
In the middle of 2016 the company emitted bonds and later in August started the quotation in Nasdaq Baltic stock exchange. It helped not only to raise additional funds for the business but helped to improve the inner procedures and transparency of the company as well. More precise credit policy and accrual making methodology was created. The decision was made to make general accruals in amount of 1% of the portfolio and sustain such level further on to ensure conservative way of financial reporting.
The total assets of the company increased more than 25% during 2016 and was 5.2 mEUR by the end of the year. Total interest income raised for more than 20% in comparison to 2015. The overall profitability of the company remained on the previous levels. Still the decision to make general accruals in the end of the year decreased the figure significantly.
The strategy of further development and conservative growths is planed for the company in 2017. The general principles of activities and risk management politics will remain unchanged.
SIA AgroCredit Latvia is a non-bank lender, which was founded in 2011 and since then is offering the credits to Latvian farmers. The main type of services is seasonal financing for grain growers to finance the purchases of fertilizers, seeds, crop protecion chemicals, fuel and other current assets. The loans are repaid in the end of season after the harvest and sales of grain. The major collateral of the the loans are future fixed grain contracts signed with AgroCredit Latvia partners - big grain trading companies. After the delivery of grain, the amount due to AgroCredit Latvia is paid directly by grain trader to the financier. This type of offset has granted very effective repayment process and high credit portfolio quality.
Chairman of the Board