The expenditures incurred by the BEST Group on the (direct) purchase of non-performing debts increased by over 50% in 2015. Taking into consideration the activities in the secondary market, the total investment expenditures of the Group exceeded PLN 238 million last year.
In the second half of 2015, the BEST Group purchased through its investment funds, in which it holds a 100% share, non-performing debt portfolios with a total nominal value of about PLN 466 million. The total expenditures incurred on the purchase of those portfolios amounted to PLN 21 million.
In the whole of 2015, the BEST Group purchased debt portfolios with a total nominal value of over PLN 897 million, spending over PLN 85 million. This constituted an increase by 44% and 53% respectively in comparison to 2014. The purchased debt portfolios included mostly retail debts from the banking sector. The newly purchased portfolios also included the debts of loan companies.
Apart from direct investments, last year the BEST Group also incurred expenditures related to the indirect purchase of debt portfolios in the secondary market through the purchase of almost 33% of the shares in Kredyt Inkaso. Taking into consideration the fair value of the debt portfolios reported in the latest published interim report of Kredyt Inkaso, the value of the abovementioned expenditures has been determined at about PLN 153 million. It should be remembered that the BEST Group was also an active player in the secondary market in 2014, when it purchased almost 83% of BEST II NSFIZ investment certificates, increasing its share in that fund to 100%.
The total investment expenditures incurred by the BEST Group in relation to the direct and indirect purchases of debt portfolios in 2015 exceeded PLN 238 million as compared to about PLN 147 million in the previous year. "These figures demonstrate that last year was for our company yet another good year, when we recorded a double-figure increase in investment expenditures. Moreover, the figures demonstrate our ability to effectively seek good investment opportunities in the primary market of non-performing debts with the active participation of the Group in the consolidation of the debt management sector in Poland", saidKrzysztof Borusowski, CEO of BEST.
The BEST Group finances its investments mainly through the issuing of bonds, including issues conducted as part of the public bond issue programme launched in 2014, which is worth up to PLN 300 million. Under this programme, BEST has issued bonds with a total value of PLN 210 million, with PLN 90 million being still available. The Management Board of Best intends to conduct further public bond issues as early as in the first quarter of this year. The issues may be addressed both to retail investors and to institutional investors.
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.
The total nominal value of our own debt and the debt of other entities managed by BEST amounts to over PLN 10 billion (as of 30 September 2015).
In 2014, the BEST Group generated a net profit of PLN 58.9 million attributable to the Company's shareholders, with operating revenues of PLN 124 million.
For further information, visit www.best.com.pl, or contact us at:
tel. 22 826 74 18 / mobile 516 173 691
tel. 22 826 74 18 / mobile 514 985 845
You can also follow BEST Group on Twitter: https://twitter.com/BEST_Grupa