Increase in revenue by one third and increase in net profit by 39%, recorded by BEST Capital Group in 2015, is a continuation of the positive growth trend from the previous years. Revenue in the key receivables repayment sector has increased significantly, whereas the value of receivables in its portfolio has already exceeded PLN 10.6 billion.
BEST Group has closed yet another financial year with an increase in key indicators. Revenue and net profit both recorded a double-digit increase. The Group has spent more than 100% than in 2014 for the purchase of new receivable portfolios, which allows for a dynamic development of the Group. Net profit of BEST Group achieved PLN 82.2 million and was higher by 39% than in the previous year, when it achieved PLN 59.2 million. Revenue from operating activities increased by one third from PLN 106.2 million to PLN 140.9 million.
'It was a very successful year for us. The most important indicators achieved record levels. A large growth in the receivables repayment area, and in particular its dynamic increase in the last quarter, is cause for satisfaction. Repayments allocated to funds owned by BEST increased by 35% to reach PLN 40.6 million. Additionally, at the end of the year we introduced new operational solutions which allow us to expect further growth in the coming quarters', said Krzysztof Borusowski, President of the Board of BEST.
In the whole year, the repayment of receivables brought the Group PLN 138.6 million. Its dynamic growth results from the development of amicable collection, as well as investments in a modern management system. Since the beginning of 2013, the construction of a modern SIGMA system supporting receivables management, which is just about to finish, has consumed about PLN 7 million. Full implementation of this project will allow for even more efficient management of receivables repayment and further increase in revenue in this key area.
In the whole of 2015, BEST Group purchased 15 debt packets with a total nominal value of over PLN 897 million, spending over PLN 85 million on their purchase. This is 110% more than in the previous year. Moreover, for PLN 171 million the Group acquired 33% of shares in Kredyt Inkaso S.A. Despite these investments, the debt ratio remains relatively low; at the end of 2015 the debt to own capital ratio was 1.26. After accomplishing the capital increase, the recalculated ratio will drop to about 1.0. An increase in the Group's own capital, thanks to financial resources obtained from issuing shares for major issuers, will improve the debt ratio and translate into even more attractive conditions for issuing bonds.
Bond issues are a basic source of revenue and financing development. In 2015, PLN 153.8 million have been sourced in this way. The bond placement programme will be continued with success in 2016; in February as part of the third public offering programme addressed to retail investors the Group sold bonds of nominal value of PLN 40 million. In two days, more than 1000 investors reported demand for bonds worth PLN 112 million.
The previous year was also very successful from the point of view of the Group's presence on the Warsaw Stock Exchange. Our shares completed their eighteenth year on the Warsaw Stock Exchange with an almost 100% increase, whereas main indexes were negative. During this period, WIG 20 lost 19.7% and WIG lost 9.6%.
'An increase in the Company's value is always good news for all investors. As major shareholders, we are currently increasing our engagement by acquiring new issue shares for a price of PLN 26.78, as resulting from a valuation made by PwC. This level is almost twice the current price on the Warsaw Stock Exchange which, in our opinion, mirrors a significant investment potential. At this price BEST capitalization would have yielded almost PLN 600 million', says Marek Kucner, Vice-President of the Board.
General information about BEST
BEST S.A. is a company that has been listed on the Warsaw Stock Exchange since 1997. It specialises in the trading and management of non-performing debts. The BEST Group actively invests in debt portfolios (primarily 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 the sole shareholder of BEST TFI, which manages investment funds with assets totalling PLN 984 million (as of 30 December 2015). The combination of expertise in the field of debt collection and in the establishment and management of investment funds has made it possible to concentrate all the elements of the business model within one capital group.
For more information:
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