Successful beginning of the year for the BEST Group

The last quarter was good for the BEST Group: the financial results achieved in the first three months of 2014 were similar to those recorded the previous year. Apart from being in a stable financial situation and having one of the lowest debt ratios within the sector, today the Company also has funding provided for the purchase of more claims portfolios.


The BEST Group's operating revenues in the first quarter of 2014 exceeded PLN 20.5 million and were close to those recorded in the first quarter of 2013. The other financial results were also comparable to those from the year before: the profit from sales was PLN 12.2 million and BEST's net profit attributable to shareholders amounted to PLN 9.4 million.


In the first quarter of the current year, the BEST Group recorded a slight reduction in value (by ca. 5.8%) of the investment certificates of the BEST II NSFIZ fund – one of the three investment funds managed by BEST TFI – which in turn decreased the total income (total result) attributable to BEST's shareholders to PLN 8.6 million (compared to PLN 10.2 million in the first quarter of 2013).[1]


- Similarly to the previous periods, we recorded the highest revenues and profits in the investment in the debt claims segment – in the first quarter of 2014, it corresponded to almost 80% of the BEST Group's total income. The investment activity is related to significant capital expenditure. Access to external funding is, therefore, one of the key success factors. Our advantage is that, so far, we have not fully used the financial leverage – for a long time the BEST Group's debt ratio has remained one the lowest in the industry: at the end of the first quarter of 2014 it was 0.41, while the level acceptable by the current bondholders is between 2.0 and 2.5", says Krzysztof Borusowski, the President of BEST.


- Thanks to the funds raised from the April's public offering of bonds worth PLN 45 million, we have funding and the comfort that allow us to finalise, in a short time, purchase transactions of interesting, from our viewpoint, claims portfolios", he adds.


The issue of series K1 bonds, with a value of 45 million, was the first one under the public issuance programme of bonds worth up to PLN 300 million. "Subscriptions for series K1 securities were initially supposed to be open for two weeks, but the pool of bonds offered was exceeded already on day four. Considering the BEST Group's further development plans, this result is very good for us", Krzysztof Borusowski emphasises.



Selected financial results of the BEST Group:


(PLN million) 1Q 2014 1Q 2013 Change y/y
Operational revenue 20,5 20,5 0%
Profit from sales 12,2 12,3 -1%
Net profit* 9,4 9,8 -4%
Total income* 8,6 10,2 -16%

*attributable to BEST's Shareholders



[1] Due to the fact that the BEST Group's share in the BEST II NSFIZ fund is 17%, the fund's results are not included in the consolidation, but the change of value of the BEST II NSFIZ fund's investment certificates held by the BEST Group are recorded under the position: other elements of total income.