In Q4, 2014 BEST Capital Group generated a net profit of nearly PLN 22 million (attributed to the shareholders of the listed company). Taking control over the BEST II NSFIZ fund contributed to achieving these results. Excluding one-off events from the periods compared, in 2014 the net profit of BEST Group from recurring operations increased by 47%.
Q4, 2014 was one of the best quarters in BEST's history in terms of financial performance. In this period the Group's operating revenues amounted to PLN 40.5 million, 62% higher than in the last quarter of 2013. In Q4 of last year the consolidated net profit attributed to BEST shareholders amounted to nearly PLN 22 million compared to less than PLN 4.6 million recorded in the corresponding period of 2013.
"The robust results of BEST Group recorded in the last months of 2014 are a result of both our efficient operations and cost discipline as well as taking control over the BEST II NSFIZ fund. As a result of increasing the share in this fund from 17% to 100%, it has been fully consolidated. This transaction has also enabled us to recognise additional revenue of PLN 10.8 million. This amount shows how much the value of our share in BEST II NSFIZ has grown over the past years; however, so far it has not increased the net result of the Group as this fund was not consolidated", said Krzysztof Borusowski, President of BEST.
Cumulatively after four quarters of 2014, the operating revenues of BEST Group amounted to over PLN 123 million and the net profit attributed to the shareholders of the listed company totalled PLN 58.7 million. In the previous year these figures were PLN 131.4 million and PLN 69.7 million respectively; however, a one-off event, i.e. restating the fair value of the portfolios of claims owned by BEST I NSFIZ, had a positive influence on the Group's performance in 2013. Excluding one-off events from the compared periods, in 2014 BEST Group recorded a 17% increase in its operating revenues and a 47% increase in its net profit.
"These results confirm that high profitability can go hand in hand with dynamic growth. Both in financial and organisational terms, we are well prepared to continue this growth and increase our business scale considerably", said Krzysztof Borusowski.
In spite of significant investments made by the Group last year (purchasing new portfolios of claims and taking over BEST II NSFIZ fund), financed, among other things, from public issues of the K1 and K2 series bond with a total value of PLN 95 million, the debt ratio of BEST Group remains one of the lowest in the sector. In late 2014 this ratio (net debt / equity) stood at 0.81 while in the case of other debt collection companies listed on the Warsaw Stock Exchange (GPW) this ratio usually ranges between 1.2 and 2.0.
At present BEST is conducting another public offering of bonds addressed to retail investors (K3 series), from which it plans to raise PLN 35 million. These are 4-year bonds with variable interest equivalent to the 3M WIBOR rate increased by a fixed 3.3% annual margin. Subscriptions are being taken until 20 February this year at the brokerage house of mBank, including by phone and online (including via mBank's broker service eMakler).
Selected results of BEST Group:
*Net profit attributed to BEST Shareholders;
PLN 35.7 million – the amount of one-off restatement of the value of portfolios of claims owned by BEST I NSFIZ conducted in H1, 2013
PLN 10.8 million – the amount of additional revenue recognised in Q4, 2014 in connection with taking control over BEST II NSFIZ; PLN 8.8 million – positive influence of this event on the net result of BEST Capital Group
Pursuant to the terms and conditions of bonds issued by BEST, the maximum value of the debt ratio may range between 2.0 and 2.5.
BEST: Company Overview
BEST S.A. has been listed on the Warsaw Stock Exchange since 1997, as a company specialising in the trading and managing of non-performing debts. The BEST Group actively invests in debt portfolios (especially in the field of banking) with the use of securitisation funds, as well as providing debt collection services for third parties: banks, telecommunication operators, power companies, and other mass service providers.
BEST is also the sole shareholder of BEST TFI, which obtained its licence to operate from the Polish Financial Supervision Authority (KNF) in 2008. The combination of expertise in the fields of debt collection and that of the establishment and management of investment funds has helped the entity to concentrate all the elements of its business model within one capital group.
Currently BEST TFI manages four funds, including three securitisation funds: BEST I NSFIZ, BEST II NSFIZ and BEST III NSFIZ, whose assets include portfolios of claims with a total nominal value of PLN 8.8 billion (as of the end of 2014) and non-public assets fund BEST Capital FIZAN.
This press release is for promotional purposes only. The Primary Prospect (original Polish name: “Prospekt podstawowy”), as approved by Polish Financial Supervision Authority on 21 March 2014, its possible annexes and update announcements, and Final Bond Issue Conditions (original Polish name: “Ostateczne Warunki emisji Obligacji”) are the only legal sources for information on the public bond offering by BEST S.A. The Primary Prospect, its possible annexes and update announcements, and Final Bond Issue Conditions have been electronically published on the company’s website (www.best.com.pl). Bonds shall not constitute a bank deposit and shall not be included in any deposit guarantee scheme.
For more information visit www.best.com.pl or contact:
tel: 22 826 74 18 / mobile: 516 173 691
tel: 22 826 74 18 / mobile: 514 985 845