SIA ExpressCredit UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD

Transcription

1 SIA ExpressCredit UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD PREPARED IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY EU Translation from Latvian

2 TABLE OF CONTENTS Information on the Group 3-4 Management report 5 Profit or loss account 6 Balance sheet 7 Notes 8 2

3 Information on the Company EXPRESSCREDIT SIA Name of the Company Legal status of the Company Number, place and date of registration Operations as classified by NACE classification code system Address Names and addresses of shareholders (from ) ExpressCredit SIA Limited liability company Commercial Registry Riga, 12 October 2009 NACE Other credit granting NACE Retail sale of second-hand goods in stores Raunas street 44 k-1, Riga, LV-1039 Latvia Lombards24.lv, SIA (till Express Holdings, SIA) (51.00% - till , 67.55% from till , 65.86% from , % from ), Raunas street 44k-1, Riga, Latvia AE Consulting, SIA (24.50% till , 32.45% - from , 31.64% - from , % from ), Posma street 2, Riga, Latvia Private individuals (2.5% - from ) Ultimate parent company AS EA investments, reģ. Nr Raunas street 44k-1, Riga, Latvia Names and positions of Board members Names and positions of Council members Responsible person for accounting - - Didzis Admidins - Ieva Judinska-Bandeniece Chairperson of the Council Uldis Judinskis - Deputy Chairman of the Council Ramona Miglane - Member of the Council Santa Šoldre - Chief accountant Financial period 1 January 30 September

4 Information on the Subsidiaries SIA ExpressInkasso (parent company interest in 100%) Date of acquisition of the Number, place and date of registration of the ; Riga, 27 January 2009 Address of the Raunas Street 44 k-1; Riga, LV 1039, Latvia Operations as classified by NACE classification code system of the 66.1 Financial support services except insurance and pension accrual SIA MoneyMetro (from līdz SIA Banknote, till SIA Rīgas pilsētas lombards) (parent company interest in 100%) Date of acquisition of the Number, place and date of registration of the , Riga, 06 December 1991 Address of the Raunas Street 44 k-1, Riga, LV 1039, Latvia (till Kalēju street 18/20, Riga) Operations as classified by NACE classification Other financing services code system of the SIA EC Finance (parent company interest in 100%) Date of acquisition of the Number, place and date of registration of the , Riga, 01 December 2015 Address of the Raunas Street 44 k-1, Riga, LV 1039, Latvia Operations as classified by NACE classification Activities of holding companies code system of the SIA EC Investments (parent company interest in 100%) Date of acquisition of the Number, place and date of registration of the , Riga, 06 November 2015 Address of the Raunas Street 44 k-1, Riga, LV 1039, Latvia Operations as classified by NACE classification Activities of holding companies code system of the SIA DCE solutions (parent company interest in 100%) Date of acquisition of the Number, place and date of registration of the , Riga, 15 July 2015 Address of the Raunas Street 44 k-1, Riga, LV 1039, Latvia Operations as classified by NACE classification code system of the Business and other management consultancy activities Cash Advance Bulgaria EOOD (parent company interest in 100%) Date of acquisition of the Number, place and date of registration of the , Bulgaria, Sofia, 03 May 2017 Address of the 49A, Bulgaria Blvd., fl. 4., office 30, Triaditsa region Operations of the Crediting services 4

5 Statement of management`s responsibility The management of SIA ExpressCredit group is responsible for the preparation of the financial statements. Based on the information available to the Board of the parent company of the Group, the financial statements are prepared on the basis of the relevant primary documents and statements in accordance with International Financial Reporting Standards as adopted by the European Union and present a true and fair view of the Group's assets, liabilities and financial position as at 30 September 2017 and its profit and cash flows for the period from 1 January to 30 September The management of the parent company confirms that the accounting policies and management estimates have been applied consistently and appropriately. The management of the parent company confirms that the consolidated financial statements have been prepared on the basis of the principles of prudence and going concern. The management of the parent company confirms that is responsible for maintaining proper accounting records and for monitoring, controlling and safeguarding the Group s assets. The management of the parent company is responsible for detecting and preventing errors, irregularities and/or deliberate data manipulation. The management of the parent company is responsible for ensuring that the Group operates in compliance with the laws of the Republic of Latvia. The management report presents fairly the Group s business development and operational performance. 5

6 Group s performance during the period The Group s operations during the period from 1 January to 30 September 2017 has been successful. According to the plan, the total revenue compared to the corresponding period of the previous year has increased by 20.8%, totalling In the third quarter, the company entered into a new agreement with a cooperation partner on the development of statistical analysis technologies with the aim to enhance the solvency assessment and raising the quality of loan portfolio." The company informs that only 26% of new customer loan applications are approved, while for repeat customers it is 82%. One of the goals of the company has always been to organized internal processes and high quality of process management. In order to assure this quality for investors and customers, the company's management team decided in the beginning of 2017 to conduct international ISO certification in accordance with ISO 9001: 2015 (quality management) and ISO 50001: 2012 (energy management system). In October 2017, the company was successfully certified for both of the above certificates. In the 3rd quarter of 2017, the company continued to work on improvement and digitization of offered services, and the services with additional benefits will be offered to customers as of the fourth quarter of The company continues to streamline its internal processes to ensure the operations according to expected changes in the Law on Anti Money Laundering and Combating the Financing of Terrorism, as well as adaptation of its activities according to General Data Protection Regulation, which will come into force on May 25, By implementing business strategy and all planned activities the following financial results of the Group were achieved in 9 months of 2017: - during period net loan portfolio increased by 40.1% to 16.5 million euro; - the Group s total assets at 30 September 2017 was 22.7 million euro; - Consolidated profit for the 9 month of the year 2017 was euro (in 2016 respective period euro) The Group's loan portfolio growth was financed from the profit, cooperating with the mutual lending platform, and during the 9 months of 2017 financing was raised by 1,352,000 from closed issue bonds. Bonds were issued in 2016 for 5 million with an annual return of 14%, organized by BlueOrange Bank. As of the end of the period, new bonds have been sold for a total amount of Branches During the period from 1 January to 30 September 2017, continued to work on the branch network efficiency. As at 30 September 2017 the Group had 93 branches in 39 cities in Latvia ( branches in 39 cities). Post balance sheet events On 3 October gada 3. Shareholders decided on distribution of the previous year s profits as dividends in the amount of euro. The payout of dividends will be made taking into account bond issue prospectus LV , LV and LV Except for the above there are no subsequent events since the last date of the reporting period, which would have a significant effect on the financial position of the Company as at 30 September

7 Profit or loss account for the period Net sales Cost of sales ( ) ( ) Interest income and similar income Interest expenses and similar expenses ( ) ( ) Gross profit Selling expenses ( ) ( ) Administrative expenses ( ) ( ) Other operating income Other operating expenses ( ) ( ) Profit before taxes Corporate income tax for the reporting year ( ) ( ) Deferred tax - - Current year's profit Earnings per share Comprehensive income statement Current year's profit Other comprehensive income - - Total comprehensive income

8 Balance sheet as at 30 September Assets Long term investments Fixed assets and intangible assets Loans and receivables Loans to shareholders and management Participating interest in subsidiaries - - Other investments Deferred tax asset Total long-term investments: Current assets Finished goods and goods for sale Loans and receivables Receivables from affiliated companies Other debtors Deferred expenses Assets held for sale Cash and bank Total current assets: Total assets Liabilities Shareholders' funds: Share capital Prior years' retained earnings Current year's profit Total shareholders' funds: Creditors: Long-term creditors: Bonds issued Other borrowings Total long-term creditors: Short-term creditors: Bonds issued Other borrowings Accounts payable to affiliated companies Trade creditors and accrued liabilities Taxes and social insurance Total short-term creditors: Total liabilities and shareholders funds

9 Notes Age analysis of claims against debtors for loans issued: Receivables not yet due Outstanding 1-30 days Outstanding days Outstanding days Outstanding for days Outstanding for more than 360 days Total gross claims against debtors for loans issued Provisions for bad and doubtful trade debtors ( ) ( ) Total net claims against debtors for loans issued