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BEST has produced a significant increase in claims repayments, invested in new portfolios and submitted the prospectus for a second bond issue programme to the PFSA.

  • In H1 2016, the funds managed by BEST invested almost PLN 85 million in claims portfolios with a total par value of more than PLN 520 million. This constitutes an increase by 31% and 21%, respectively, in comparison with the corresponding period of 2015.
  • Total repayments from the purchased claims portfolios in Q1 2016 amounted to almost PLN 112 million, of which PLN 87.4 million was obtained by the BEST Group, and that was 35% more than in the previous year.
  • BEST submitted the issue prospectus regarding the second programme of public bond issue with a total value of up to PLN 200 million to the Polish Financial Supervision Authority. The Group intends to continue with its dynamic development and it will obtain money for further investments primarily from bond issues.

 

“In line with our announcements we have begun intensive work to launch the second programme of public bond issue with a total value of up to PLN 200 million. This week, we have submitted the issue prospectus to the Polish Financial Supervision Authority,” said Krzysztof Borusowski, CEO of BEST. “The dynamically growing profit is the best proof that we can efficiently use money obtained from investors, strengthening the image of the BEST Group as a desired and reliable issuer of corporate bonds. We are counting on a repeat of the success of our first programme of public bond issues through which we obtained a total of PLN 300 million in the last two years and some of the offered bond series sold out practically on the spot. We intend to continue the strategy assuming that the development of our business will occur primarily through an increase of investment in non-performing debt portfolios,” Krzysztof Borusowski added.

 

Q2 2016 was yet another quarter in which the BEST Group registered a significant increase in key operating results. Total repayments from the purchased claims portfolios in part attributable to the BEST Group amounted to PLN 46.4 million in Q2 2016, i.e. they increased by 41% as compared to the corresponding period in 2015. Cumulatively, over the first half of 2016, repayments from claims portfolios amounted to PLN 87.4 million, which means an increase by 35% year-on-year. “In terms of repayments obtained, the second quarter was the best in the history of our group. It is primarily the result of a larger scale of operations, investment in a modern IT system and implementation of new effective solutions and products in the area of amicable debt collection,” stressed the CEO.

 

At the same time, BEST invested in new non-performing debt portfolios. In H1 2016, group entities purchased claims portfolios with a total par value of more than PLN 520 million for a price close to PLN 85 million. To compare, in the first half of 2015, the funds managed by BEST purchased claims portfolios with a total par value of PLN 431 million by investing more than PLN 64 million.

 

The BEST Group began publishing cyclical information on the par value of purchased claims portfolios and investment expenditure on their purchases in mid-2015. Starting today, these data will be also supplemented with information on the total value of repayments from the purchased claims portfolios (including the portion attributable to the BEST Group) and the fair value of claims portfolios.

 

Claims portfolios purchased by BEST Group entities and repayments from the purchased claims portfolios

(PLN million)

Q2 2016

Q2 2015

Y/y change

H1 2016

H1 2015

Y/y change

Par value of purchased claims portfolios

198.3

431.4

-54%

520.1

431.4

21%

Cost of acquisition of claims portfolios

39.7

64.3

-38%

84.4

64.3

31%

Total value of repayments from claims portfolios

52.5

44.5

18%

111.7

87.7

27%

Repayments from claims portfolios owed to the BEST Group 1)

46.4

32.8

41%

87.4

64.7

35%

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

 

The Management Board decided not only to extend the scope of published information but also to increase reporting frequency from semi-annually to quarterly. Information on investments in claims portfolios and repayments from the purchased portfolios will now be published on the 15th day of the month following the end of each quarter.

 

“By caring about the transparency and effectiveness of our actions in the area of investor relations, we consistently develop an information policy, setting the best market standards. Thanks to the changes being introduced currently, investors will receive more of the important information regarding our activities, and with higher frequency, even before the publication of the relevant periodic reports. At the same time we will ensure equal, common access to this information,” underlined Krzysztof Borusowski.

 

Full information regarding the financial results that the BEST Group achieved in the first half of 2016 will be presented in a consolidated periodic report with a planned publishing date of 26 August.

 

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General information about BEST

 

BEST S.A. is a company listed on the Warsaw Stock Exchange since 1997, specialising in trading in and managing non-performing debt. The BEST Group actively invests in debt portfolios (mainly bank portfolios) using securitisation funds; it also provides debt collection services on a commission basis: to banks, telecoms, power sector companies and other providers of mass-market services.

 

BEST is also the sole shareholder of BEST TFI, which manages investment funds with total assets of over PLN 984 million (as of 30 December 2015). With its combined expertise in debt collection and in the creation and management of investment funds, BEST has been able to aggregate every component of the business model within one capital group.

 

The total nominal value of own debt and debt of other entities managed by BEST is over 10.6 billion PLN (as of 30 December 2015).

 

In 2015, the BEST Group generated a net profit of PLN 82.2 million with operating revenues of PLN 140.1 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: https://twitter.com/BEST_Grupa

 

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This material is for promotional purposes only. The only legally binding document containing information on the bond issue programme developed by BEST S.A. (the Company) and bonds issued within the programme will be the base prospectus which will be published on the Company's website (www.best.com.pl) after it has been approved by the Polish Financial Supervision Authority and the relevant final terms of bond issue which will also be published on the Company's website (www.best.com.pl). The bonds will not constitute a bank deposit and will not be covered by the deposit guarantee scheme.

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