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BEST Group: record high repayments and investments in claims for Q4 2016

According to a report published by BEST, in 2016 the Group recognised a significant increase in managed claims portfolios, amounting to 227.3 PLN million, in contrast to 184.3 PLN million in 2015. This represents an increase of over 23% YOY and it is one of the best dynamics for the growth of repayments among stock-quoted companies from the debt collection industry in this period. Record investments in new claims portfolios are also deserving of attention. Throughout 2016 the Group spent 258.3 PLN million for that purpose and acquired claims portfolios having a total nominal value of 2.3 PLN billion. This was three times more than in 2015.

 

"There are no doubts that 2016 was a successful year for us. We realised ambitious objectives, which we presented during the negotiations with Kredyt Inkaso. And even though the merger with that company did not succeed, it didn’t impede the dynamic development and reinforcement of our position on the market. The best examples are: the high level of repayment, large investments in portfolios and the implementation of the original SIGMA Information System. We fulfilled all our declarations related to the perspectives for the development of BEST Group", says Krzysztof Borusowski, President of the Management Board of BEST S.A.

 

"In comparison to the previous year, we achieved an over 23% increase in repayments under debt portfolios, which was possible mostly thanks to the improvement in the Group’s operational performance and great flexibility in terms of debt collection strategies. We are satisfied with the pace of growth in investments in new portfolios. Last year we invested in debts worth over 250 PLN million, which allowed us to increase substantially our market participation and is a fair promise for the future results", addsKrzysztof Borusowski.

 

"The operational results from the whole year confirm that in terms of both business and finance, the Group is in good shape and the perspectives for the upcoming year are remarkably positive: we enriched our portfolio with claims from the telecommunication industry, for example, and we want to start operating abroad. We intend to continue to enlarge the scale of our activity. First of all, this will be possible thanks to the diversification of our financial sources. Secondly, we are also technologically ready for the dynamic growth. At the end of last year we implemented the innovative SIGMA operational system, which allows us to perfect operations and will turn into a strong advance in terms of competitiveness", adds Krzysztof Borusowski.

 

Claims portfolios acquired by BEST Group entities and repayments under the acquired claims portfolios

 

(PLN million)

Q4 2016

Q4 2015

Movement YOY

Q1-4 2016

Q1-4 2015

Movement YOY

Nominal value of claims portfolios acquired

1231.2

287.6

328%

2,269.2

894.0

153%

Acquisition cost of claims portfolios

119.8

3.3

3530%

258.3

85.1

204%

Total value of repayments under claims portfolios

58.2

52.1

12%

227.3

184.3

23%

Repayments under claims portfolios due to BEST Group1

46.8

40.6

15%

179.5

138.7

29%

 

1 100% BEST I NSFIZ, 100% BEST II NSFIZ, 50% BEST III NSFIZ

 

After the first three quarters of 2016, the BEST Group’s revenues were 166.6 PLN million (+64% YOY), and the net profit was 68.7 PLN million (+11% YOY). During this period, returns on sales amounted to 41%. This was the highest result among those companies which manage claims.

 

As of 16 January, investors can subscribe for BEST’s series R2 4.5-year bonds with a total nominal value of PLN 30 million. BEST bonds to be issued will bear interest at a variable rate equal to WIBOR 3M plus a 3.3% margin, which means more than 5% per annum in the first interest period. According to the offer schedule, subscriptions are accepted until 30 January of this year. However, if investors subscribe for more bonds than the Company is offering, the subscription period could be shortened. The subscriptions can be submitted in the facilities of the Brokerage House of PKO Bank Polski, including via Internet and telephone.

 

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General information about BEST

BEST S.A. specializes in trading in and managing of non-performing debts, and has been listed on the Warsaw Stock Exchange since 1997. BEST Group actively invests in debt portfolios (especially in bank debts) using securitisation funds, and provides debt collection services to third parties: banks, telecommunication and power companies, as well as other providers of general services.

 

The combination of expertise in debt collection and in the establishment and management of investment funds allows BEST to concentrate all elements of the business model within a single capital group.

 

The total nominal value of our own debts and third party debts managed by BEST exceeds PLN 11 billion (as of 30 September 2016). In 2015, BEST Group generated a net profit of PLN 82.2 million with an operating income amounting to PLN 141.0 million.

 

You can also follow BEST Group on Twitter: https://twitter.com/BEST_Grupa

 

This material is for promotional purposes only. The only legally binding sources of information on public offering of bonds conducted by BEST S.A. (the Issuer) under the issue programme established by the Issuer include: the Base Prospectus, which was approved by the Polish Financial Supervision Authority (KNF) on 3 October 2016, addenda and updates to the Base Prospectus, and the Final Terms of Bond Issue. The Base Prospectus, addenda and updates to the Base Prospectus and the Final Terms have been published and are available electronically on the Issuer's website (www.best.com.pl) and also, for informational purposes, on the website of the Brokerage House of PKO Bank Polski (www.dm.pkobp.pl).

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