Published: 2020-04-27 21:17:21 CEST
DelfinGroup
Annual Financial Report

DelfinGroup publishes financial results for the year 2019 audited by BDO Assurance

The Group's turnover in 12 months of 2019, compared to the same period of the previous year, has increased by 16% to EUR 21.8 million, while the Company's loan portfolio amounted to EUR 31.6 miliion, 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 track record is that 36% of Group’s revenues are generated by pawn shop 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 EUR 5000. The Group continued to develop its youngest brand VIZIA reaching 75% annual growth in the net loan portfolio.

The company celebrated 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 upgraded mission is to create and provide innovative and custom finance solutions to its clients.

In Q4 2019, DelfinGroup prepared for the new EUR 5 million bond issue. The preparation included setting up a new creditor structure whereby the bond holders of two existing notes issues (ISIN LV0000802213 and ISIN LV0000801322) and one new bond issue (ISIN LV0000802379), as well as Mintos platform became secured creditors of DelfinGroup. The aforementioned creditor claims are secured by a commercial pledge whereby SIA DelfinGroup and its subsidiaries SIA ViziaFinance, SIA ExpressInkasso, and SIA REFIN have pledged all their property and receivables as an aggregation of property at the moment of pledging as well as its future components. The pledgee is Law Office Eversheds Sutherland Bitāns according to the collateral agent agreement, and the commercial pledge is worth EUR 40.5 million. The subscription for the new bond issue was started on November 15, 2019 and by now is subscribed by 72% or EUR 3.6 million.

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

Position EUR, million Change, %
Net loan portfolio 31.55 +56.2
Assets  38.27 +43.5
Net profit 3.91  -  3.5

On March 12 2020, the Cabinet of Ministers of the Republic of Latvia decided to declare 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.

DelfinGroup delivers audited consolidated statements for the year 2019.

DelfinGroup submits Corporate Governance report for the year 2019.

DelfinGroup submits investor presentation (in English) on the audited results of 2019.

Quarterly, half-yearly and annual data of DelfinGroup can be conveniently accessed on a special purpose website: www.delfingroup.lv.

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SIA DelfinGroup is a licensed consumer lending company founded in 2009. The Group is represented by the brands Banknote, VIZIA and Riga City Pawnshop. The Group's core services are consumer loans, distance loans, pawn broking loans and money transfers in partnership with Western Union. In total, the Group operates in 38 Latvian cities and populated areas, a total of 87 branches, employs more than 270 professionals and has paid 2.97 million euros in taxes for the year 2019. SIA DelfinGroup is a member of LAFPA and LTRK and has qualified for Gold level status of SRS cooperation program.

         Kristaps Bergmanis
         Mobile: +371 29144168
         E-mail: kristaps.bergmanis@delfingroup.lv


DelfinGroup_company_presentation_2019_ENG.pdf
DelfinGroup_financial_statements_audited_2019_ENG.pdf
DelfinGroup_corporate_governance_report_2019_ENG.pdf