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SIA DelfinGroup announces official dividend policy and informs about dividend pay-out
Riga, 2020-09-04 12:47 CEST --
Shareholders of SIA DelfinGroup, which operates brands Banknote, VIZIA and Riga City Pawnshop have approved a new official dividend policy - “SIA DelfinGroup’s Dividend policy”, and also have decided to pay out dividends from the profit of year ending 31.12.2019 in amount of 2 million euro after tax. In addition, it is expected that shareholders will repay EUR 1 million to the company, thus reducing its liabilities (loans to related parties) to SIA DelfinGroup. The dividends will be paid out by 31.09.2020.
SIA DelfinGroup's vision is to always strive for the highest recognition. The company's values are simplicity, accessibility, respect, progress, mastery, focus on client, and ambition.
“SIA DelfinGourp’s Dividends policy” sets a regular dividend policy with quarterly payments in the amount of 50% of the profits reported in the preceding quarter. Dividends are to be paid out by the end of each quarter. After publication of yearly audited financial statements, dividends are to be paid out in excess amount to follow the leverage covenant of 3.5 expressed as net debt (interest bearing debt less cash and bank) / net equity (equity less loans to shareholders and related parties). The dividend policy is designed to meet and not to exceed the leverage ratio of 3.5 at any time.
“In order to improve transparency and predictability of company’s dividend policy among shareholders and investors, shareholders have decided to approve the dividend policy. The policy will be a guideline for the Board to follow, taking into account business needs and any eventual economic conditions”, explains company’s CFO and board member Kristaps Bergmanis.
“Paying out dividends is nothing new for our company and it is a part of our business model and growth story. It is important to note that the dividend policy is fully compliant with our obligations towards current financial covenants undertaken according to the existing bond issues as well as the co-operation with peer-to-peer platform Mintos,” says Agris Evertovskis, the chairman of the company’s board.
Company’s CEO, and member of the board Didzis Ādmīdiņš adds: “It is also important to mention that we have balanced the dividend pay-out ratio with the growth needs of the company prudently. We have great ambition and plans to continue expanding our business by developing new products, improving the current products and further improving customer service.”
SIA DelfinGroup has issued bonds that have been listed on the Nasdaq Riga stock exchange since 2014. Bondholders include both individuals and institutional investors from Latvia, Lithuania, Estonia and other countries.
SIA DelfinGroup is a licensed consumer lending company, founded in 2009. The Group represents such brands as Banknote, VIZIA and Riga City Pawnshop. The Group's core services are pawnbroking loans, consumer loans, as well as senior loans, the terms of which are specially adapted for senior consumers. The Group operates in 38 Latvian cities and towns with a total of 87 Banknote branches, and the company is also represented in the digital environment with remote service provision - in the field of consumer loans and an online store. The company employs more than 270 professionals and paid 2.97 million euros in taxes in 2019. SIA DelfinGroup is a member of LAFPA and LTRK and has received the Gold level status of the SRS cooperation program.
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