Published: 2020-05-05 11:47:25 CEST
DelfinGroup
Interim report (Q1 and Q3)

DelfinGroup 1st quarter 2020 financial results

DelfinGroup publishes unaudited condensed financial results for the 1st quarter of 2020.

The Group's turnover in the 1st quarter of 2020 compared to the same period of the year 2019 has increased by 17.5%, reaching EUR 4.81 million, while comparable profit amounted to EUR 1.04 million.

On February 4, 2020, the Enterprise Register of the Republic of Latvia registered changes in the name of the company. The change of the corporate identity was necessary to better reflect what the company is doing and is planning to do moving forward. The Group already offers a diverse mix of non-bank consumer lending services and is in the process of creating new custom finance solutions. The new name is future-oriented to facilitate the Group’s growth through the development of new finance products and solutions.

DelfinGroup’s vision is to achieve the highest recognition level on the basis of its existing values: simplicity, accessibility, respect, and progress. The company has also defined three new values that are already an integral part of its development: ambition, mastery and major focus on the client.

In the first months of 2020, DelfinGroup operated in accordance with the company's values, strategy and goals set. On March 12, 2020, a state of emergency was declared in the country in response to COVID-19, and consequently the company's focus was quickly changed from development to adjustment to the emergency situation. DelfinGroup focused on providing sufficient cash reserves, reduced sales and administration costs. In line with the economic situation, a stricter assessment of borrowers' solvency was introduced, resulting in fewer but better-quality loans. The decisions made are oriented towards risk reduction and the speed of the company's growth was reduced accordingly.

In the 1st quarter of 2020, the company attracted additional financing in the amount of EUR 2.5 million for ISIN LV0000802379 bonds issued on 15 November 2019, which have been redeemed for the total amount of EUR 3,569,000 or 71% as of 31 March 2020. The raised funds were used to repay existing liabilities to the Mintos peer-to-peer lending platform and to repay the principal amount of ISIN LV0000801322 bonds.

Following the impact of COVID-19 in Europe in March 2020, investor activity on the Mintos peer-to-peer lending platform declined and interest rates rose. At the end of the first quarter of 2020, the effective rate of the company's liabilities on the Mintos platform increased to 11.36%, followed by a stabilization of the rate and an increase in investor activity in April 2020.

By implementing business strategy and all planned activities, as well as by introduction of emergency solutions in response to the effects of COVID-19, the following financial results of the Group were achieved in the 1st quarter of 2020:

Position    EUR, million     Change*, %
Net loan portfolio 32.49         +  3.0
Assets  40.33         +  5.4
Net profit 1.04         +  2.6 

  * Net loan portfolio and Assets compared to the amounts as at 31.12.2019.
    Net profit is compared to respective period of the year 2019.

DelfinGroup submits unaudited interim consolidated financial statement of the first quarter of 2020.

DelfinGroup submits investor presentation for the operational results of the first quarter of 2020.

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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
         Phone: +371 29144168
         E-mail address: kristaps.bergmanis@delfingroup.lv


DelfinGroup_presentation_2020_Q1_ENG.pdf
DelfinGroup_finance_statements_unaudited_2020_1Q_ENG.pdf