Revenues of PLN 166.6 million and a net profit of PLN 66.8 million – with these results BEST Group confirms that it belongs with the most dynamically growing companies in the debt management sector in Poland. Nine months into the year the Group can boast record repayments, as well as the highest ever investments in debt portfolios on the primary market.
Three quarters into 2016, BEST Group posted 64%-higher revenues and 11%-higher net profits compared to the corresponding period of the previous year. Return on sales is improving on an ongoing basis. It currently stands at 41%, which is one of the highest levels among debt management companies (38% in mid-2016).
“In our sector the third quarter is usually the least active period of the year. We are all the more pleased with the fact that we managed to maintain the growth rate that the market had become accustomed to of us as of late. Over the past 24 months we have doubled our revenues. Our ambitions are still huge, however. Both in our organisation and in the market environment I can see developments that allow us to be more optimistic about the future, and that give grounds for expanding the scale of our business further,”says Krzysztof Borusowski, President of the Management Board of BEST.
Debt repayments, which are of key importance to the growth of BEST, are increasing dynamically. During the first nine months of the current year they totalled PLN 169.1 million, of which repayments due to BEST Group reached nearly PLN 133 million, up by 35% year-on-year. In Q3 alone total repayments under portfolios held by the securitisation funds managed by BEST amounted to over PLN 57 million, of which more than PLN 45 million were attributable to BEST Group, up by 36% compared to Q3, 2015.
Record repayments are accompanied by record investments in acquired debt. In January-September 2016, BEST Group earmarked PLN 138.6 million for this purpose. Thus, after three quarters, expenditures on debt portfolios are over 60% higher than throughout last year. Only in the period of July-September did the funds managed by BEST acquire over PLN 54 million in debt portfolios with a total nominal value of nearly PLN 518 million. In effect, the nominal value of debt acquired in 2016 exceeded PLN 1 billion, and the total value of debt managed by the Group stands at PLN 11.2 billion.
BEST Group is in a position to make further investments thanks to, among other things, an issue of corporate bonds. PLN 50 million was raised from nearly 50 investors as a result of an issuance conducted in October, and the funds will be earmarked for growth, including the acquisition of further debt portfolios.
“The final months of the year are usually busy for us. Before closing the year banks review their loan portfolios, as a result of which large debt portfolios go on sale on the market. Thanks to satisfactory results from our own operations, as well as a successfully completed bond issue, we have appropriate resources to be an active player in this field and to invest funds attractively. The plan providing for capital expenditure of a quarter of a billion zloty throughout 2016 remains realistic,”adds Krzysztof Borusowski.
An active investment policy does not translate into increasing debt ratios. On the contrary, BEST Group keeps its debt ratio at one of the lowest levels in the sector. In the last quarter, the net debt to equity ratio decreased further. It currently stands at 0.98.
BEST is a leader on the debt management market in Poland and for several years has been consistently increasing its business scale, delivering robust financial performance at the same time. Over the past five years, the company’s value on the Warsaw Stock Exchange has risen sixteen-fold. Since the beginning of the current year, its share price has soared by 58 percent on the Warsaw Stock Exchange.
General information about BEST
BEST S.A. specialises in the 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 such as banks and telecommunication and power companies, as well as other providers of general services.
Combined competences in debt collection and the establishment and management of investment funds has allowed the entity to concentrate all elements of its business model within a single capital group.
The total nominal value of own claims and third party claims managed by BEST exceeds PLN 11 billion (as of 30 June 2016). In 2015 BEST Group generated a net profit of PLN 82.2 million, with operating income amounting to PLN 140.1 million.
For more information, please contact:
+48 668 48 36 73