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BEST Groups records solid increase in debt repayment and financial performance

Operating revenue of BEST Group for the first three quarters of 2015 exceeded PLN 101 million, which constitutes an increase by 40% year-on-year. The repayment of debt, which is the main source of revenue, amounted to PLN 64 million (+66%). Nine months into the current year, the net profit attributed to BEST shareholders stood at PLN 61.5 million, so more than throughout the entire 2014.

 

This year, BEST Group has recorded a dynamic improvement in its financial performance. This mainly has resulted from investments in non-performing debt portfolios made in previous periods, both on the primary market (i.e. during tender procedures organised by banks) and indirectly, i.e. as a result of increasing the share in the BEST II NSFIZ fund from 17% to 100% in Q4 2014, as a consequence of which this fund is fully consolidated.

 

Operating revenue of BEST Group for the first three quarters of 2015 amounted to PLN 101.3 million, which constitutes an increase by 40% year-on-year. The repayment of debt, which is the main source of revenue, stood at PLN 64 million, which constitutes an increase by 66% in comparison with the corresponding period in 2014.

 

The increased business scale also leads to an increase of operating costs; however, in spite of that, BEST Group is maintaining high rates of return. Profit on sales for the first nine months of 2015 amounted to PLN 64 million, 39% more than in the previous year. Meanwhile, net profit attributed to BEST shareholders has risen year-on-year by 67%, totalling PLN 61.5 million. It was also higher than the net profit for the whole of 2014 (PLN 58.9 million). EBITDA for the first three quarters of 2015 amounted to PLN 65.5 million in comparison with PLN 59.9 million in the corresponding period of last year.

 

BEST Group remains active on the real estate market. Through its investment funds, in the period between January and September 2015, the Group acquired non-performing debt portfolios with a total nominal value of over PLN 620 million, with outlays on the acquisition of these portfolios amounting to over PLN 83 million. In the corresponding period of 2014, BEST Group acquired debt portfolios with a total nominal value of over PLN 472 million, investing more than PLN 47 million in purchasing them. These investments are financed mainly with funds raised from bond issues.

 

Moreover, in September this year, BEST acquired an interest of nearly 33% of Kredyt Inkaso shares, and at present is the biggest shareholder of this company. In late September, the Management Boards of BEST and Kredyt Inkaso signed an agreement of cooperation and opened negotiations on merging both companies.

 

“As previously announced, we are planning to merge BEST with Kredyt Inkaso – the two leading companies on the debt collection market, whose businesses supplement each other perfectly. We intend to create a strong Polish group on the debt management market, one which is attractive for investors, and one which will be an unquestionable runner-up in Poland and a significant player in Europe. We hope that the Management Boards of the companies will agree and adopt the merger plan by the end of this year. Then the merger plan, including the stock swap ratio, will be submitted to the shareholders of both companies for approval. We anticipate that BEST and Kredyt Inkaso General Meetings on this matter will be held in Q1 2016”, said Krzysztof Borusowski, President of BEST.

 

The merger procedure and timing will also be subject to obtaining a concentration permit of the President of the Office of Competition and Consumer Protection (UOKiK) and having the information memorandum approved by the Polish Financial Supervision Authority (KNF) in connection with the issue of merger shares by BEST. The Management Board of BEST anticipates that the legal merger of the companies may be finalised in H1 2016; however, some deadlines are beyond the company’s control.

 

Selected results of the BEST Group for three quarters of 2015

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General information about BEST

 

BEST S.A. is a company listed on the Warsaw Stock Exchange since 1997. It specialises in the trade and management of unpaid debts. The BEST Group invests in debt portfolios (especially in bank debt portfolios) with the use of securitisation funds and provides debt collection services on commission – for banks, telecommunication operators, power companies and other mass service providers.

 

BEST is also a shareholder of BEST TFI, which manages investment funds with total assets of over PLN 965 million (as of 30 June 2015). The combination of expertise in the field of debt collection with that in the establishment and management of investment funds has enabled the concentration of all elements of the business model into a single capital group.

 

The total nominal value of own debt and debt of other entities managed by BEST is over PLN 9.8 billion (as of 30 September 2015).

 

In 2014, BEST Group generated a net profit of PLN 58.9 million attributed to the company’s shareholders, with operating revenue of PLN 124 million.

 

For further information visit www.best.com.pl or contact:

Krzysztof Woch

NBS Communications

tel. 22 826 74 18 / mobile 516 173 691

e-mail: kwoch@nbs.com.pl

 

 

Maciej Szczepaniak

NBS Communications

tel. 22 826 74 18 / mobile 514 985 845

e-mail: mszczepaniak@nbs.com.pl

 

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

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