CONAFI PRESTITÒ: 2011 results approved

Transcription

1 CONAFI PRESTITÒ: 2011 results approved Total loans brokered of Euro million: +8.5% on 2010 Net Commissions of Euro 10.3 million: +6.2% on 2010 Brokerage margin of Euro 11.1 million: +4.2% on 2010 Net loss of Euro 3.8 million (net loss of Euro 1.7 million in 2010) Net cash position of Euro 50.7 million (Euro 50.8 million at 30/09/2011) The Board of Directors proposes to Shareholders the distribution of a dividend of Euro 0.06 per ordinary share The Board of Directors, chaired by Mr. Nunzio Chiolo, Chairman and Chief Executive Officer of Conafi Prestitò, a company listed on the MTA market, specialised in salary/pension backed and extended payment term loans, today approved the 2011 separate and consolidated financial statements, which will be presented to the Annual General Meeting to be held on May 24, 2012 (in first call) and May 25, 2012 (in second call) Consolidated Results Total loans brokered (gross value) in the salary/pension backed loan sector, against a market contraction of 9% (Assofin data), totalled approx. Euro million, with an increase in the margin and also a significant increase in volumes (approx. +8.5% on 2010). Net commissions amounted to Euro 10.3 million, growth of 6.2% on Euro 9.7 million in The brokerage margin was Euro 11.1 million, growth of 4.2% (Euro 10.7 million in 2010) due to the significant increase in net commissions. However the consolidated result reports a net loss of Euro 3.8 million (compared to a net loss of Euro 1.7 million in the previous year), which was particularly impacted by non-recurring charges of approx. Euro 1.9 million relating to the restructuring of the corporate division and advertising investments to develop the on-line brokerage of loans through the MutuoSulWeb portal. The loss was impacted by the continued credit market crisis, with the progressive reduction of liquidity within the banking system and an increase therefore in the procurement costs. These events not only stifled our growth development plans, but placed severe restrictions on treasury management and the efficient use of liquidity, which due to banking solvency requirements remained on deposit in current accounts to support the operating lines in place and at unfavourable conditions. The net cash position remained stable at Euro 50.7 million (Euro 50.8 million at September 30, 2011). In relation to the salary/pension backed loan business, overall 4,346 contracts were undertaken in 2011 with particular growth seen in the pension backed loan sector (+31.6%), against substantial breakeven for salary backed loans and a significant reduction in the extended repayment terms sector (-30%), due to a focus on the margin, while containing the risk and the quality of the loans brokered.

2 In relation to the corporate division, which has not yet benefitted from the Group restructuring focused on improving profitability and the efficiency of the offer to small and medium businesses of financial consultancy and services, gross revenues in 2011 amounted to Euro 1.4 million (Euro 2.6 million in 2010) Conafi S.p.A. Results Net commissions amounted to Euro 8.3 million (Euro 7.4 million in 2010, growth of 12.8%). The brokerage margin amounted to Euro 9.1 million, an increase of 9.8% (Euro 8.3 million in 2010). The pre-tax result was a loss of Euro 2.5 million (loss of Euro 0.9 million in 2010). The net loss of Euro 5.5 million, compared to a net loss of Euro 0.8 million in 2010, was particularly impacted by non-recurring charges of approx. Euro 1 million related to advertising investments for the on-line brokerage activities through the MutuoSulWeb portal, in addition to impairments on investments for a total of Euro 3.1 million Significant events in the year In 2011, pursuant to the share buy-back plan Conafi Prestitò purchased 338,211 shares, therefore holding 4,287,047 treasury shares at December 31, 2011 ( % of the share capital). Within however the consolidation strategies of the business model for the entities operating in the corporate sector and the restructuring and streamlining of the Group, the following is noted: - In February and March 2011, through the wholly owned subsidiary HPB S.p.A. the entire share capital of the subsidiaries Rencredit Servizi di recupero crediti S.r.l. (February 16, 2011), Imprenditalia Servizi S.r.l. (March 8, 2011) and Consulenze & Finanze S.r.l. (March 18, 2011) were acquired; - In July 2011 the merger of the subsidiaries Imprenditalia Servizi S.r.l. and Consulenze & Finanze S.r.l. into Conafi Sviluppo Reti S.r.l. took place (with enrolment at the Company Registration Office and accounting and tax effect from January 1, 2011); - On July 12, 2011, through HPB S.p.A. the subsidiary Alta Italia Servizi S.r.l. was fully acquired; - On November 29, 2011, HPB S.p.A. sold to Conafi Prestitò S.p.A. the entirety of the subsidiary Rencredit servizi di recupero crediti S.r.l.; - In the second half of 2011, the merger projects concerning Via Advisors S.r.l. into HPB S.p.A., of Network e Business S.r.l. into Alta Italia Servizi S.r.l. and of Rencredit servizi di recupero crediti S.r.l. into Conafi Prestitò S.p.A. began. Finally, in relation to the retail sector activities and the completion of the products and services portfolio, the following is noted: - in June 2011, the programme was launched with the presentation to the financial community of MutuoSulWeb, an operational platform for the brokerage of on-line loans with significant investments by the Group; this represents a fresh approach to the sector in addition to a web interface, an integrated and complete operational and organisational

3 model has been developed which guides the client from first contact until the closure of the operation through our back office structure, call centres and internal consultants, in addition to our network of financial agents, which as ever present a high level of professionalism and know-how and therefore provide an exceptional loan brokerage service; - in the second half of 2011, integrating and completing our operational model, an agreement was signed for the distribution of salary backed loans issued with a leading operator (October 10, 2011) and contacts were developed and explored with other parties to establish common and synergetic commercial strategies. Significant events after the year-end In the first months of 2012 the redefinition of the Group scope continued with the mergers by incorporation of the subsidiary Via Advisors S.r.l. into HPB S.p.A., of the subsidiary Network e Business S.r.l. into Alta Italia Servizi S.r.l. and of the subsidiary Rencredit servizi di recupero crediti S.r.l. into Conafi Prestitò S.p.A.. These operations should conclude by the end of the first half of In relation to compliance and the regulatory situation in recent months concerning insurance policies linked to loans, from April 2, 2012 new provisions have been enacted following the issue of ISVAP Provision No. 2946/2011, Article 36 bis of the so-called Salva Italia (Save Italy) Decree as well as Article 28 of the so-called Liberalisation Decree. In order to support the salary backed loan brokerage activity, in April 2012, a new operating line for an amount of Euro 20 million was opened. Outlook In the first months of 2012, results significantly improved - as did the principal operating indicators. The continued uncertainty on the economic and financial front and concerning the sector regulatory situation however have reduced visibility in terms of funding and impacted the parameters on which the forecasts and estimates for the strategic guidelines presented in 2010 were based, which currently are not attainable. Extensive consideration concerning the review of the strategic objectives and of the group lines confirmed the choice to focus on the core business of salary and pension-backed loans and a re-appraisal of the products and services offered, together with a close control of operating costs as part of the continued development and growth of the Group. Finally, the completion of the refocusing and consolidation of our subsidiaries involved in financial consultancy and services to business have enabled the development of our investments made through the subsidiary HPB S.p.A., laying at the same time foundations for further development. We consider that salary backed loans offer a winning alternative to satisfy in a prudent manner household financial needs and to sustain consumption and that this sector therefore presents significant opportunities, which will present themselves together with the resolution of the market difficulties and the mechanisms for granting loans, in addition to a complete reform of consumer credit and an improvement of the competitive scenario, with consequent reorganisation of the distribution network and the raising of professional standards.

4 Therefore given the maintenance of sufficient visibility concerning the acquisition of the necessary funds to support the current operational model, we consider that the Conafi Group in 2012 can continue on its growth path and adopt the correct strategic choices. Other Board of Directors resolutions The Board of Directors approved the 2011 Corporate Governance and Ownership Structure Report and the Remuneration Report concerning Directors and Senior managers with strategic responsibilities pursuant to art. 123-ter of Legs. Decree No. 58/98, which will be proposed to the Shareholders' AGM. *********** The Board of Directors today approved the submission to the Shareholders Meeting of the proposal to authorise the purchase and utilisation of treasury shares of the Company in accordance with the applicable legal and regulatory provisions, in such a manner that at any particular point, the treasury shares do not overall exceed 20% of the share capital of the Company. The Board of Directors consider that the above-stated authorisation will serve in the company s interest the relevant issues established by the applicable regulation, including to: - incentivise and engender employee loyalty (including any categories which are covered under the applicable legislation), business partners, directors of the Companies and/or Companies controlled by them and/or other categories (such as agents, also non singlemandate) discretionally chosen by the Board of Directors as considered appropriate on a case by case basis; - fulfil any obligations related to debt instruments convertible or exchangeable with equity instruments; - carry out sales, exchanges, conferments or other utilisations of treasury shares for the acquisition of investments and/or buildings and/or the conclusion of contracts (also commercial) with strategic partners and/or for the completion of industrial projects or extraordinary financial operations, which are considered necessary within the Company or Conafi Group expansion plans; - the carrying out of subsequent share purchase or sale operations, within the limits of common market practices. The purchase of treasury shares must be within the limits of the distributable profits and available reserves from the latest financial statements regularly approved and, at any moment, these shares shall not be more than 20% of the share capital (equal to 9,300,000 shares). The authorisation to sell the shares purchased in accordance with article 2357 of the civil code, and therefore replacing them in circulation, is guaranteed within the limits permitted by current legislation and by the Regulations issued by Borsa Italiana S.p.A. and by the new European Union regulations, without any time limitation. The treasury shares may be sold in block, or in any form permitted by current legislation, including as payment for the acquisition of investments or other specific initiatives. The duration of the programme is fixed at 18 months from the approval by the Shareholders Meeting. *********** The Board of Directors also called the Shareholders AGM for May 24, 2012 at the time of 10 AM in Turin at the Hotel Golden Palace on Via dell Arcivescovado No. 18 in first call and for May 25, 2012 at the same place and time in second call:

5 1) Presentation of the 2011 Consolidated financial statements and the review and approval of the 2011 Separate financial Statements; distribution of reserves to shareholders; related resolutions; 2) Remuneration Report; Resolution in accordance with Article 123 ter of Legs. Decree No. 58/98; 3) Appointment of the Board of Directors, with prior determination of the number of directors, determination of the duration of office and fixing of remuneration; resolutions thereon; 4) Appointment of the Board of Statutory Auditors and its Chairman and determination of the emoluments; resolutions thereon; 5) Authorisation to acquire and utilise treasury shares; resolutions thereon. The documentation relating to the matters on the agenda will be available at the Company s registered office, at Borsa Italia SpA and on the Internet site (Investor Relations section) in accordance with law. *********** The Board of Directors decided to propose to the Shareholders Meeting the distribution of Euro 2,532, (Euro 0.06 per ordinary share, excluding treasury shares in portfolio at the coupon date). In accordance with article 47, paragraph 1 of Presidential Decree No. 917 of December 22, 1986 (the Consolidated Income Tax Act ), for tax purposes, the distribution of Euro 2,532, qualifies as a distribution of capital reserves as per article 47, paragraph 5 of the Consolidated Income Tax Act. If approved, the dividend will be paid on June 7, 2012, with dividend coupon No. 5 on June 4, The executive responsible for the preparation of the corporate accounting documents Mr. Claudio Forte declares in accordance with article 154 bis, paragraph 2, of the Finance Act, that the accounting information contained in the present press release corresponds to the underlying accounting documents, records and accounting entries. The press release is available also on the company website and on the site

6 Conafi Prestitò S.p.A., with headquarters in Turin, is a financial broker, registered in the general list of financial brokers of the Italian Exchange Office in accordance with article 106 of the Banking Finance Act and the special list of the Bank of Italy in accordance with article 107 of the Banking Finance Act. The Company operates in the personal loans sector, specialised in providing loans repaid through direct salary or pension deductions. Conafi Prestitò is also renowned as an innovator of products and services and noted as one of the few operators which have brought innovation to the consumer credit sector, prevalently concentrated on traditional activities. CONAFI PRESTITO S.p.A. has been listed on the MTA segment of the Italian Stock Exchange since April 12, For further information please contact: CONAFI PRESTITO S.p.A. Salvatore Chiolo Investor Relations Manager Tel: salvatore.chiolo@conafi.it IR TOP Investor Relations Advisory Maria Antonietta Pireddu Tel: ir.conafi@irtop.com Attachments: CONSOLIDATED FINANCIAL STATEMENTS o Consolidated Balance Sheet o Consolidated Income Statement o Consolidated Cash Flow Statement o Consolidated Net Financial Position CONAFI S.p.A. FINANCIAL STATEMENTS o Conafi S.p.A. Balance Sheet o Conafi S.p.A. Income Statement o Conafi S.p.A. Cash Flow Statement

7 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheet Assets 31/12/11 31/12/ Cash and cash equivalents AFS financial assets Receivables Equity Investments Property, plant and equipment Intangible assets Tax assets: a) current b) deferred Other assets TOTAL ASSETS Liabilities & Net Equity 31/12/11 31/12/ Payables Tax liabilities a) current b) deferred Other liabilities Employee leaving indemnity Provisions for risks and charg es b) other provisions Share Capital Treasury shares (-) (5.604) ( 5.267) 150. Share premium reserve Reserves (9.247) ( 7.755) 170. Valuation reserves Net loss for the year (3.568) ( 1.595) 190. Minority interest equity (155) 229 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY In thousands of Euro

8 Consolidated Income Statement INCOME STATEMENT Interest income and similar Interest expense and similar charges (276) (256) INTEREST MARGIN Commission income Commission expenses (8.541) (9.160) NET COMMISSIONS Profit/loss from sale or repurchase of (29) (1) a) receivables (31) 0 b) AFS financial assets 2 0 BROKERAGE MARGIN W rite-down/write-back on: (1.384) (280) a) receivables (1.215) (1.512) d) other financial assets (169) Administrative expenses (12.380) (11.697) a) personnel costs (6.654) (7.111) b) other administrative expenses (5.726) (4.586) 120. W rite-down/write-back of value of property, plant & equipment (163) (184) 130. W rite-back/write-back of value of intangible fixed assets (688) (196) 150. Net provisions for risks and charges 97 (216) 160 Other operating income and other operating charges (336) 87 OPERATING RESULT (3.741) (1.821) GROSS LOSS FROM CURRENT OPERATIONS (3.741) (1.821) 190. TAXES ON CURRENT OPERATIONS (75) 113 NET LOSS FROM CURRENT OPERATIONS (3.816) (1.708) LOSS FOR THE YEAR (3.816) (1.708) 210. Minority interest loss (248) (113) 220. Parent Company loss (3.568) (1.595) In thousands of Euro

9 Consolidated Cash Flow Statement A. O PER ATI NG AC TIVITIE S 31/1 2/11 31/ 12/10 1. OP ERATIONS ne t lo ss (3.8 16) (1.708) - ga in/ loss on f ina ncial asse ts held for tra ding and fin ancia l assets/liabilities ga in/ loss on h edging a ctivitie s ne t im pa irme nts on loan s am ortisa tion & d eprecia tion provisions for risks an d charges an d oth er costs/re ven ues (97) income taxes not paid prof it/(loss) o n group of d iscontinued asse ts net o f tax other adjustm ents LIQUID ITY GE NER ATE D/ABSORB ED FROM FINANCIAL ASS ETS (1.0 45) (3.740) - he ld-fo r-trad ing fin ancia l assets 0 (297) - finan cial asse ts a t fair va lue A FS finan cial asset s (5 76) 0 - receivab les fro m b anks receivab les fro m finan cial institutions receivab les fro m custom ers (3.9 85) (4.201) - other assets LIQUID IT Y GE NERA TED/ABS ORB E D FROM FINAN CIAL LIAB IL ITIES 4 16 (2.599) - ba nk borrowings (1.8 81) (3.135) - other le nders (17) - pa yables to custo mers (2 04) (500) - securities in circu lation he ld-fo r-trad ing fin ancia l liab ilitie s finan cial lia bilities at f air value ot her liabilitie s Lquidity generated/absorbed by operating activ ities (2. 307) (7.171 ) B. IN VE STING ACTIV ITIE S 1. 1.LIQUIDITY GENE RATED BY sale of investm ents dividen ds rece ived sale of held-to-ma turity financia l assets sale of property, plant a nd eq uip men t sale of inta ngible asse ts sale of busine ss u nits LIQ UID ITY ABS O RBE D BY (2 83) (274) - pu rcha se of investme nts (5) (10) - pu rcha se of h eld -t o-mat urity fin ancial assets pu rcha se of p ro perty, pla nt an d equ ipm en t (79) (154) - pu rcha se of intan gib le a ssets (1 99) (110) - pu rcha se of b usine ss un its 0 0 Net liquidity generated/absorbed by investing activ ities (283) (249 ) C. FINAN CING ACTIV ITIES AMO UNT - issue /purchase of treasury sha re s (3 37) (1.360) - issue s/p urch ase of ca pita l instru me nts distribut ion of d ividen ds and othe r (3.3 77) (3.484) Net liquidity generated/absorbed by financing activ ities (3. 714) (4.844 ) NET L IQ UIDITY G ENE RAT ED /ABSO RBED IN THE YEAR (6.304) (12.264) R EC O N C IL IA TIO N AMO UNT 31/1 2/11 31/ 12/10 Cash an d cash eq uivalents at t he be gin nin g of the year 7 0 Current a ccou nts at b egin nin g of the year Total net liquidity gen erated/ absorbed durin g the yea r ( ) ( ) Cash an d cash eq uivalents at t he en d of the year In thousands of Euro

10 Consolidated Net Financial Position Account 31/12/11 30/09/11 Change Change% Cash & cash equivalents % Bank current accounts (1.513) (3,1%) Liquidity (A) (1.510) (3,1%) Bank overdraft accounts (22) (12) (10) (83,3%) Net Liquidity (B) (1.520) (3,1%) Loans in course of approval ,8% Payables for advance repayment (3.198) (3.270) 72 (2,2%) Current Financial Account ( C ) ,5% Net Financial Position ( B + C ) (90) (0,2%) In thousands of Euro

11 CONAFI S.p.A. FINANCIAL STATEMENTS Conafi S.p.A. Balance Sheet Assets 31/12/11 31/12/ Cash and cash equivalents AFS financial assets Receivables Equity Investments Property, plant and equipment Intangible assets Tax assets: a) current b) deferred Other assets TOTAL ASSETS Liabilities & Net Equity 31/12/11 31/12/ Payables Tax liabilities a) current b) deferred Other liabilities Employee leaving indemnity Provisions for risks and charges b) other provisions Share Capital Treasury shares (-) ( ) ( ) 150. Share premium reserve Reserves ( ) ( ) 170. Valuation reserves Net loss for the year ( ) ( ) TOTAL LIABILITIES & SHAREHOLDERS' EQUITY In Euro

12 Conafi S.p.A. Income Statement INCOME STATEMENT Interest income and similar Interest expense and similar charges ( ) ( ) INTEREST MARGIN Commission income Commission expenses ( ) ( ) NET COMMISSIONS Profit/loss from sale or repurchase of (28.755) 0 a) receivables (31.172) 0 BROKERAGE MARGIN Write-down/write-back on: ( ) ( ) a) receivables ( ) ( ) b) other financial assets ( ) Administrative expenses ( ) ( ) a) personnel costs ( ) ( ) b) other administrative expenses ( ) ( ) 120. Write-down/write-back of value of property, plant & equipment ( ) ( ) 130. Write-back/write-back of value of intangible fixed assets ( ) ( ) 150. Net provisions for risks and charges ( ) 160 Other income and operating charges (41.752) OPERATING RESULT ( ) ( ) 170. Gain (Loss) from investments ( ) Gain (Loss) from sale of investments (28) GROSS LOSS FROM CURRENT OPERATIONS ( ) ( ) 190. Taxes on current operations NET LOSS FROM CURRENT OPERATIONS ( ) ( ) LOSS FOR THE YEAR ( ) ( ) In Euro

13 Conafi S.p.A. Cash Flow Statement Amount A. OPERATING ACTIVITIES 31/12/11 31/12/10 1. OPERATIONS loss for the year ( ) ( ) - net impairment losses on loans (+/-) net impairment on property, plant & equipment and intangible assets (+/-) net provision for risks and charges and other costs and revenues (+/-) ( ) other changes LIQUIDITY GENERATED/ABSORBED FROM FINANCIAL ASSETS ( ) ( ) - held for trading financial assets 0 ( ) - AFS financial assets ( ) 0 - bank receivables receivables from financial institutions client receivables ( ) ( ) - other assets LIQUIDITY GENERATED/ABSORBED FROM FINANCIAL LIABILITIES ( ) - bank payables ( ) payables to financial institutions ( ) - client payables ( ) ( ) - other liabilities Liquidity generated & absorbed by operating activities ( ) ( ) B. INVESTMENT ACTIVITIES 1. LIQUIDITY GENERATED BY sale of investments sale of property, plant and equipment LIQUIDITY ABSORBED ( ) ( ) - purchase of investments ( ) ( ) - purchase of property, plant and equipment (76.335) ( ) - purchase of intangible assets (23.601) (30.994) Net liquidity generated/absorbed by investing activity ( ) C. FINANCING ACTIVITY - issue/purchase of treasury shares ( ) ( ) - distribution of dividends and other ( ) ( ) Net liquidity generated/absorbed by financing activity ( ) ( ) NET LIQUIDITY GENERATED/ABSORBED IN THE YEAR ( ) ( ) RECONCILIATION Amount 31/12/11 31/12/10 Current accounts at the beginning of the year Total net liquidity generated/absorbed during the year ( ) ( ) Cash & cash equivalents at the end of the year In Euro