Published: 2021-05-05 22:09:04 CEST
DelfinGroup
Interim report (Q1 and Q3)

Revenue of DelfinGroup in the first quarter reaches 6 million euros

The revenue of the Latvian financial service company AS DelfinGroup in the first three months of 2021 reached 6 million euros, and the net profit – 0.8 million euros. The loan portfolio reached 32 million euros, EBITDA increased by 21% to 2.5 million euros, and the profit before taxes reached 1.1 million euros, which is an increase of 6% compared to the first quarter of 2020. 

Chairman of the AS DelfinGroup management board Didzis Ādmīdiņš: “The financial performance of DelfinGroup at the beginning of this year indicates stable growth, despite the Covid-19 pandemic and the restrictions imposed. Both pawn loan segment, including sales of pre-owned goods on the internet, as well as consumer loans segment, show good development trends. We anticipate that growth rates could increase with the easing or removal of restrictions. In the first quarter of 2021, we started the restructuring of three subsidiaries – SIA REFIN, SIA Banknote Commercial Properties un SIA Express Inkasso. As a result of the restructuring, the operations of subsidiaries will be included into AS DelfinGroup. In the period, the loan portfolio of the particular subsidiaries decreased and the recovered funds were used to repay loans (4.2 million euros) from peer-to-peer financing platform Mintos. In parallel with the reorganization, the company's first Environmental, Social, and Corporate Governance (ESG) report for 2020 was prepared. The company continued active work on both the expansion of the branch network and the development of internet sales of pre-owned goods throughout Latvia. Due to the Covid-19 restrictions, a part of the sales of pre-owned goods moved to the internet. The Banknote pawn shop network has become one of the leading pre-owned and tested goods sales channels in Latvia, helping people all over the country to exchange things that they no longer need. Our goal is to significantly increase the exchange of pre-owned goods among the people of Latvia, making it more convenient, modern and accessible. Pre-owned goods can be brought to any branch of the company, immediately receiving the money. In turn, anyone can subsequently view and purchase them in the internet store. We hope that the new opportunity to conveniently hand over and buy pre-owned goods will stimulate more and more people to think greener and not to throw away things that they no longer need for themselves, but can still be useful for others. The company already has almost 400 thousand customers both in Riga and in the regions.” 

Another area that will facilitate the company ensure good results in the long run is to excel the corporate governance of the company. At the beginning of 2021, the change of the legal form of the group from a limited liability company to a joint-stock company was completed, as well as a new professional company supervisory board with independent supervisory board members was elected. In March, the shareholders' meeting approved the financial, corporate governance and fintech industry experts Gatis Kokins, Dr Edgars Voļskis, Mārtiņš Bičevskis, Jānis Pizičs as new members of the supervisory board for five years term. The previously elected chair of the supervisory board Agris Evertovskis will continue to lead the supervisory board. 

“Along with the improvement of the internal corporate environment and processes, we are ready to take the next significant step in the development of the company - in the second half of this year, DelfinGroup plans to go public on the Nasdaq Riga stock exchange with an initial public offering (IPO). Therefore, the company will fully devote the activities of the year 2021 for major presence on Nasdaq Riga stock exchange. If previously only DelfinGroup bonds were traded on the stock exchange, at the end of the year it is planed that there will also be possible to buy the shares of the company on the stock exchange. With the IPO, we plan to attract many new shareholders from all over the region, as well as acquire financial resources to develop more rapidly both the branch network and new consumer loans services for various consumer groups. We are focused on development and in-depth market penetration in the field of both pawn and consumer segments. We want to make the modern financial services more accessible to people in Latvia,” says D. Ādmīdiņš.  

In the first quarter, 1.3 million euros were paid in dividends to shareholders. The shareholders' meeting also approved a new dividend policy, which provides for the regular payment of quarterly dividends of up to 50% of the quarterly net profits. 

On 23 March, AS DelfinGroup announced its intention to make an initial public offering (IPO) of its stocks on the Nasdaq Riga stock exchange in 2021. To follow up this event, please subscribe for news alerts: https://www.delfingroup.lv/invest. 

Implementing the business strategy and planned measures, the following financial indicators of the group were achieved in the first quarter of 2021:  

 

Item  EUR 

(in Millions) 

Change*, % 
Net loan portfolio  32.2  -7.0 
Assets   40.9  -11.0 
Profit before tax  1.1  +5.9 
Net profit  0.8  -22.5  


* Net loan portfolio and assets compared to 31.12.2020. 
* Net profit compared to the corresponding period of 2020. 

 AS DelfinGroup submits unaudited interim consolidated financial statement of the 1st quarter of 2021. 

 AS DelfinGroup submits investor presentation for the operational results of the 1st quarter of 2021. 

 The quarterly, half-yearly and annual data of AS DelfinGroup are easily accessible on the website: www.delfingroup.lv/reports. 

About DelfinGroup 

AS DelfinGroup is a licensed financial service company founded in 2009 and represents the brands Banknote, VIZIA and Riga City Pawnshop (Rīgas pilsētas lombards). The company employs 270 professionals in 92 branches operating in 38 Latvian cities. AS DelfinGroup is a member of the Latvian Chamber of Commerce and Industry and the Latvian Association of Alternative Financial Services and has received the Gold Level status of the State Revenue Service cooperation programme. The Group's core services are the Sale of pre-owned goods in branches and on the internet, pawn loans, consumer loans, as well as loans specifically tailored to people of retirement age. DelfinGroup bonds are listed on the Nasdaq Riga First North bond list. In 2020, the company's revenue was 23.7 million euros, the loan portfolio reached 34.7 million euros, EBITDA increased to 9.3 million euros, profit before taxes reached 4.6 million euros, and 3.4 million euros were paid in taxes. 

         Additional information:
         
         Kristaps Bergmanis,
         Member of the Management Board of AS DelfinGroup
         Phone: +371 29144168
         E-mail: kristaps.bergmanis@delfingroup.lv


DelfinGroup_Presentation _2021_Q1_ENG.pdf
DelfinGroup_finance_statements_2021_1Q_ENG.pdf