CONAFI PRESTITÒ: 2013 ANNUAL ACCOUNTS APPROVED

Transcription

1 CONAFI PRESTITÒ: 2013 ANNUAL ACCOUNTS APPROVED Consolidated brokerage margin of Euro 1.3 million (Euro 13.1 million in 2012) Consolidated net loss of Euro 9.4 million (profit of Euro 1.7 million in 2012) Consolidated shareholders equity of approx. Euro 32 million at 31/01/2014, Euro 41.7 million at 31/12/2013 (Euro 53.8 million at 31/12/2012) Net cash position of approx. Euro 29 million at 31/01/2014, Euro 38.7 million at 31/12/2013 (Euro 40.4 million at 30/09/2013) The Board of Directors, chaired by Mr. Nunzio Chiolo, Chairman and Chief Executive Officer of Conafi Prestitò S.p.A. ( Conafi or Conafi Prestitò ), a company listed on the MTA market, specialised in the provision of loans repaid via salary/pension deductions, today approved the 2013 separate and consolidated financial statements, which will be presented to the Annual General Meeting to be held on May 22, 2014 (in first call) and May 23, 2014 (in second call) Consolidated results In 2013, Conafi Prestitò Group volumes contracted significantly due to the fund sourcing difficulties experienced on a credit market which continues to struggle. Loans brokered in 2013 totalled Euro 30.2 million, compared to Euro 84.4 million in with similar reductions across the range of products brokered by the Company: pensionbacked loans contracted approx. 63% in terms of volumes financed, with salary-backed loans reducing 67.3% and extended payment term loans decreasing 60.4%. Although restructuring and cost streamlining actions have been implemented, also through the rotating lay-off scheme (introduced in June 2012 and continuing throughout 2013), the consolidated result reported, compared to a profit of Euro 1.7 million in 2012, a loss of Euro 9.4 million; the result was impacted by in addition to the reduction in net commissions - both the loss reported of Euro 3.4 million on treasury management operations and the write-down of goodwill for Euro 1.2 million. The brokerage margin reduced from Euro 13.1 million in 2012 to Euro 1.3 million in 2013, due both to the reduction in loans brokered (net commissions decreased from Euro 10 million in 2012 to Euro 4 million 2013) and the trading result (loss of Euro 3.4 million in 2013). The Conafi Prestitò Group at the end of 2013 reports consolidated shareholders equity of Euro 41.7 million (Euro 53.8 million at 31/12/2012), substantially invested in liquid or readily liquid assets and significantly exceeding regulatory requirements (with a free capital of approx. Euro 15.6 million) and working capital needs. The Net Cash Position totalled Euro 38.7 million compared to Euro 40.4 million at September 30, 2013 (Euro 49.5 million at December 31, 2012). CONAFI PRESTITò S.p.A. 1

2 2012 CONAFI results Net commissions amount to Euro 3.7 million (Euro 8.7 million in 2012). Brokerage margin of Euro 1.1 million compared to Euro 11.7 million in Operating result reports a loss of Euro 8.4 million (profit of Euro 3.2 million in 2012). Net loss for 2013 of Euro 9.0 million, compared to a profit in 2012 of approx. Euro 0.8 million. Significant events in 2013 The actions to simplify and reorganise the Group structure continued in In particular, it is reported that: - on January 15, 2013 the subsidiary Euris Europe Srl was placed in voluntary liquidation, with completion expected by the first half of 2014; - on June 13, 2013 the merger by incorporation into Conafi Prestitò S.p.A. of the subsidiary Italifin Srl was completed (with enrollment at the Turin Company Registration office) and with accounting and tax effects from January 1, In relation to governance, on January 28, 2013 the Board of Directors of Conafi amended the By-laws in line with Law No. 120 of July 12, 2011 concerning gender balance on the Management and Control Boards of listed companies. On March 19, 2013 the Board of Directors approved the 2012 Separate and Consolidated Annual Accounts. On April 23, 2013 the Shareholders AGM approved the 2012 Annual Accounts and authorised the Board of Directors to introduce a new treasury share buy-back programme. At the Board meeting of May 14, 2013 the new treasury share buy-back programme was approved. Currently, Conafi Prestitò holds 4,654,587 treasury shares, equal to % of the share capital. Significant events after period-end In January 2014 treasury management activities, featuring highly liquid financial instruments listed on regulated markets, resulted in a loss of approx. Euro 9.3 million; the suspension of this operation was communicated on February 3, At January 31, 2014 the consolidated net equity amounted to approx. Euro 32 million and the net cash position approx. Euro 29 million. Outlook The continued difficulties within the credit market and affecting the liquidity transfer mechanisms of the banking system have hindered the sourcing of sufficient funding, requiring arduous commitments to maintain the current operating model. CONAFI PRESTITò S.p.A. 2

3 The Group is however backed by a significant capital base, substantially invested in liquid or readily liquid assets and considerably exceeding regulatory requirements and working capital needs. In the initial months of 2014, the meetings and discussions continued with leading financial operators and are currently ongoing - in order to source the funds necessary to re-establish growth, to draw up a new strategic plan and to improve the core business. It is considered in fact that the salary/pension-backed loan sector, with the introduction of the consumer credit reform and the consequent regulatory re-shaping, can still offer significant opportunities in view of the extensive potential customer base and the fact that this category of loans most easily satisfies in an appropriately structured manner the financial needs of households and supports consumer spending. Salary/pension-backed loans were therefore the only consumer credit product to have reported an improvement in 2013 compared to the previous year. As complexities and uncertainties continue to impact the credit market, funding levels - despite the actions in progress - may continue to be inadequate and the cause of operating losses also for 2014, which however can easily be absorbed by the current levels of capital. Close cost containment and control will therefore continue, also through the use of social security schemes, minimising therefore the impact of the revenue contraction - even in the absence of the benefits from the current moves to acquire funding and the adoption of a differing and sustainable operating model. Other Board of Directors resolutions The Board of Directors today approved the 2013 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 today co-opted, in accordance with Article 2386 of the Civil Code, Mr. Marco Gerardo, current General Manager of the Company, in replacement of the Director Massimiliano Naef who resigned on July 10, Mr. Marco Gerardo declared to not holding at the time of his co-option any Company shares. The Board of Directors also called the Shareholders AGM for May 22, 2014 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 23, 2014 at the same place and time in second call, to resolve upon the following: 1. Presentation of the 2013 Consolidated Annual Accounts and review and approval of the 2013 Separate Annual Accounts; resolutions thereon. 2. Appointment of a Director in accordance with Article 2386 of the Civil Code; resolutions thereon. 3. Examination and approval of the Remuneration Report of the Directors and Senior managers with strategic responsibilities, in accordance with Article 123-ter of Legislative Decree 58/98 and subsequent amendments and supplements (CFA); resolutions thereon. 4. Proposal for the authorisation to purchase and utilise treasury shares, with prior revocation of the resolution of April 23, 2013; resolutions therein. CONAFI PRESTITò S.p.A. 3

4 The documentation relating to the matters on the agenda will be available at the Company s registered office, at Borsa Italia S.p.A. and on the Internet site (Investor Relations section) in accordance with law. Declaration of the executive responsible for the preparation of the accounting documents 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 present press release is also available on the company s website Conafi Prestitò S.p.A., with headquarters in Turin, is a financial broker, registered in the general list of financial brokers 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 with repayment 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, Floriana Vitale Tel: ir.conafi@irtop.com CONAFI PRESTITò S.p.A. 4

5 Attachments CONSOLIDATED FINANCIAL STATEMENTS at December 31, 2013 o Consolidated Balance Sheet o Consolidated Income Statement o Consolidated Net Financial Position o Consolidated Cash Flow Statement CONAFI S.p.A. FINANCIAL STATEMENTS at December 31, 2013 o Conafi S.p.A. Balance Sheet o Conafi S.p.A. Income Statement o Conafi S.p.A. Cash Flow Statement CONAFI PRESTITò S.p.A. 5

6 CONSOLIDATED BALANCE SHEET (in Euro thousands) Assets 31/12/13 31/12/ Cash and cash equivalents Held-for-trading financial assets 1,318 3, AFS financial assets 2,526 2, Receivables 51,573 61, Property, plant & equipment Intangible fixed assets 469 1, Tax assets: 3,248 3,560 a) current 1,180 1,229 b) deferred 2,068 2, Other assets 3,018 2,986 TOTAL ASSETS 62,404 76,092 Liabilities and shareholders' equity 31/12/13 31/12/ Payables 5,538 6, Tax liabilities a) current b) deferred Other liabilities 14,696 14, Post-employment benefits Provisions for risks and charges b) other provisions Share capital 11,160 11, Treasury shares (-) (5,830) (5,604) 150. Share premium reserve 56,783 59, Reserves (11,021) (12,840) 170. Valuation reserves (47) (59) 180. Net profit (loss) for the year (9,336) 1, Minority interest equity (329) (269) TOTAL LIAIBILITIES & SHAREHOLDERS EQUITY 62,404 76,092 CONAFI PRESTITò S.p.A. 6

7 CONSOLIDATED INCOME STATEMENT (in thousands of Euro) Account Interest income and similar 947 1, Interest expense and similar charges (212) (251) INTEREST MARGIN 735 1, Commission income 7,602 17, Commission expenses (3,594) (6,986) NET COMMISSIONS 4,008 10, Dividends and similar income Net result from trading operations (3,358) 1, Profit from sale or repurchase: (56) 9 a) loans (56) 9 BROKERAGE MARGIN 1,333 13, Write-down/write-back on: (1,642) (1,307) a) financial assets (1,354) (1,439) b) other financial operations (288) Administrative expenses (7,281) (8,421) a) personnel costs (4,777) (5,055) b) other administrative expenses (2,504) (3,366) 120. Write-down/write-back of value of property, plant & equipment (122) (144) 130. Write-back/write-back of value of intangible fixed assets (1,370) (667) 150. Net provisions for risks and charges 160 (252) 160. Other operating income / charges (250) (330) RESULT FROM NORMAL OPERATIONS (9,172) 2, Loss on sale of investments 9 (17) PROFIT (LOSS) BEFORE TAXES FROM CURRENT OPERATIONS (9,163) 2, Income tax on current operations (273) (296) PROFIT (LOSS) AFTER TAXES FROM CURRENT OPERATIONS (9,436) 1,710 NET PROFIT (LOSS) (9,436) 1, Profit (loss) - minority share (100) (138) 220. Group profit (loss) (9,336) 1,848 CONAFI PRESTITò S.p.A. 7

8 CONSOLIDATED NET CASH POSITION (in thousands of Euro) Account/Value 31/12/1 3 30/09/1 3 31/12/1 2 Change % vs. 30/09/12 Change % vs. 31/12/12 Cash and cash equivalents % 150.0% Bank current accounts 17,815 17,434 32, % (45.8%) Cash equivalents 20,110 21,812 12,814 (7.8%) 56.9% Liquidity (A) 37,930 39,249 45,684 (3.4%) (17.0%) Bank overdraft accounts (8) (8) (26) 0.0% (69.2%) Net liquidity (B) 37,922 39,241 45,658 (3.4%) (16.9%) Loans in course of approval 1,684 1,763 3,016 (4.5%) (44.2%) Payables for advance repayment (2,203) (1,425) (2,329) 54.6% (5.4%) Current Financial Account (C) 799 1,143 3,848 (30.1%) (79.2%) Net Financial Position (B+C) 38,721 40,384 49,506 (4.1%) (21.8%) CONAFI PRESTITò S.p.A. 8

9 CONSOLIDATED CASH FLOW STATEMENT (in thousands of Euro) D. OPERATING ACTIVITIES AMOUNT 31/12/13 31/12/12 1. OPERATIONS (6,499) 4,086 - profit (loss) for the year (9,436) 1,710 - gain/loss on financial assets held-for-trading and on financial assets/liabilities (37) 6 - net impairment losses on loans 1,642 1,307 - net impairment on property, plant & equipment and intangible assets 1, provision for risks and charges and other costs and revenues (160) LIQUIDITY GENERATED/ABSORBED FROM FINANCIAL ASSETS 3,177 (316) - held-for-trading financial assets 1,880 (3,167) - AFS financial assets 0 (1,306) - bank receivables 1,332 3,612 - receivables from financial institutions (39) 21 - client receivables (320) other assets LIQUIDITY ABSORBED FROM FINANCIAL LIABILITIES (1,673) (2,790) - bank payables (152) (865) - payables to financial institutions (12) (2,245) - client payables (643) 70 - other liabilities (866) 250 Liquidity generated/absorbed by operating activities (4,995) 980 E. INVESTING ACTIVITIES 1. LIQUIDITY GENERATED BY sale of property, plant and equipment sale of intangible assets sale of business units LIQUIDITY ABSORBED BY (87) (30) - purchase of investments 0 (33) - purchase of property, plant and equipment (42) (56) - purchase of intangible assets (45) 59 Net liquidity absorbed by investing activities (9) (24) F. FINANCING ACTIVITIES - issue/purchase of treasury shares (226) 0 - distribution of dividends and other (2,532) (2,533) Net liquidity absorbed by financing activities (2,758) (2,533) NET LIQUIDITY ABSORBED IN THE YEAR (7,762) (1,577) RECONCILIATION AMOUNT 31/12/13 31/12/12 Cash & cash equivalents at the beginning of the year 45,684 47,261 Total net liquidity generated/absorbed during the year (7,762) (1,577) Cash and cash equivalents at the end of the year 37,922 45,684 CONAFI PRESTITò S.p.A. 9

10 CONAFI S.p.A. BALANCE SHEET (in Euro) Assets 31/12/13 31/12/ Cash and cash equivalents 4,091 2, Held-for-trading financial assets 1,317,590 3,161, AFS financial assets 2,525,530 2,527, Receivables 50,230,009 60,728, Investments 1,939,010 3,512, Property, plant and equipment 246, , Intangible fixed assets 68, , Tax assets: 3,135,660 2,815,856 a) current 1,098, ,085 b) deferred 2,036,878 1,936, Other assets 2,826,540 2,597,634 TOTAL ASSETS 62,293,361 75,787,116 Liabilities and shareholders' equity 31/12/13 31/12/ Payables 5,492,568 6,175, Tax liabilities 5, ,134 a) current 0 385,134 b) deferred 5, Other liabilities 14,413,755 14,622, Post-employment benefits 273, , Provisions for risks and charges 487, ,452 b) other provisions 487, , Share capital 11,160,000 11,160, Treasury shares (-) (5,829,532) (5,603,984) 150. Share premium reserve 56,782,657 59,315, Reserves (11,439,415) (11,993,570) 170. Valuation reserves (46,652) (58,642) 180. Net profit (loss) (9,006,463) 816,725 TOTAL LIAIBILITIES & SHAREHOLDERS EQUITY 62,293,361 75,787,116 CONAFI PRESTITò S.p.A. 10

11 CONAFI S.p.A. INCOME STATEMENT (in Euro) Account Interest income and similar 938,623 1,578, Interest expense and similar charges (208,368) (242,704) INTEREST MARGIN 730,255 1,335, Commission income 7,305,200 16,181, Commission expenses (3,567,006) (7,489,109) NET COMMISSIONS 3,738,194 8,691, Dividends and similar income 4,157 21, Net result from trading operations (3,358,206) 1,692, Profit from sale or repurchase: (56,351) 9,484 a) loans (56,351) 9,484 BROKERAGE MARGIN 1,058,049 11,750, Write-down/write-back on: (1,621,501) (1,289,142) a) financial assets (1,333,341) (1,421,521) b) other financial operations (288,160) 132, Administrative expenses (6,612,814) (7,051,646) a) personnel costs (4,334,651) (4,237,368) b) other administrative expenses (2,278,163) (2,814,278) 120. Write-down/write-back of value of property, plant & equipment (110,490) (108,935) 130. Write-back/write-back of value of intangible fixed assets (1,347,511) (127,405) 150. Net provisions for risks and charges 200,699 (251,795) 160. Other operating income / charges 1, ,701 RESULT FROM NORMAL OPERATIONS (8,432,243) 3,170, Profit (loss) from equity investments (306,331) (1,909,583) 180. Loss on sale of investments 1,529 (2,671) PROFIT (LOSS) BEFORE TAXES FROM CURRENT OPERATIONS (8,737,045) 1,258, Income tax on current operations (269,418) (441,628) PROFIT (LOSS) AFTER TAXES FROM CURRENT OPERATIONS (9,006,463) 816,725 NET PROFIT (LOSS) (9,006,463) 816, Group profit (loss) (9,006,463) 816,725 CONAFI PRESTITò S.p.A. 11

12 CONAFI S.p.A. CASH FLOW STATEMENT (in Euro) A. OPERATING ACTIVITIES AMOUNT 31/12/13 31/12/12 1. OPERATIONS (5,858,177) 4,509,244 - profit (loss) for the period (9,006,463) 816,725 - gain/loss on financial assets held-for-trading and on financial assets/liabilities (36,847) 5,655 - net impairment losses on loans 1,621,501 1,289,142 - net impairment on property, plant & equipment and intangible assets 1,458, ,340 - provision for risks and charges and other costs and revenues (200,699) 251,795 - other adjustments 306,331 1,909, LIQUIDITY GENERATED/ABSORBED FROM FINANCIAL ASSETS 2,838,608 (1,461,306) - held-for-trading financial assets 1,880,439 (3,166,836) - AFS financial assets 0 (1,306,423) - bank receivables 1,336,051 3,605,991 - receivables from financial institutions (33,960) (3,842) - client receivables (644,099) 235,382 - other assets 300,177 (825,578) 3. LIQUIDITY ABSORBED FROM FINANCIAL LIABILITIES (1,768,997) (1,890,431) - bank payables (148,761) (766,876) - payables to financial institutions (162,341) (2,232,000) - client payables (531,777) 137,377 - other liabilities (926,118) 971,068 Liquidity generated/absorbed by operating activities (4,788,566) 1,157,507 B. INVESTING ACTIVITIES 1. LIQUIDITY GENERATED BY 231,234 5,679 - sale of investments 229, sale of property, plant and equipment 1,529 5, LIQUIDITY ABSORBED BY (87,190) (96,384) - purchase of property, plant and equipment (42,184) (66,789) - purchase of intangible assets (45,006) (29,595) Net liquidity generated/absorbed by investing activities 144,044 (90,705) C. FINANCING ACTIVITIES - issue/purchase of treasury shares (225,548) 0 - distribution of dividends and other (2,532,777) (2,532,777) Net liquidity generated/absorbed by financing activities (2,758,325) (2,532,777) NET LIQUIDITY GENERATED/ABSORBED IN THE YEAR (7,402,847) (1,465,975) RECONCILIATION AMOUNT 31/12/13 31/12/12 Cash & cash equivalents at the beginning of the year 44,174,767 45,640,742 Total net liquidity generated/absorbed during the year (7,402,847) (1,465,975) Cash and cash equivalents at the end of the year 36,771,920 44,174,767 CONAFI PRESTITò S.p.A. 12