Kredyt Inkaso Group reports a record-breaking level of repayments, generates over PLN 31 million of net profit, and significantly reduces debt in the financial year 2021/22. The Group’s plans include new investments and bond issues for individual investors.
Kredyt Inkaso published consolidated and separate financial statements for the financial year 2021/22 ended on 31 March 2022. During this period, the Group recorded a record-breaking level of repayments from debt portfolios. Throughout year, it reached the level of PLN 279 million, which is an increase of as much as 25% compared to the previous year. High recoveries both in court-enforcement and amicable proceedings allowed the Group to generate revenues of PLN 198.1 million and make a net profit of PLN 31.5 million. Cash EBITDA amounted to PLN 162.1 million, and this is 34% better than in the same period of the previous year.
“Kredyt Inkaso Group has been achieving very good financial results and constantly increasing its operational efficiency, which was reflected in the report that was just published. The organisation also enjoys investor confidence and has recently proved this during the debt refinancing operation for the total amount of PLN 158 million, which significantly extended the maturity of bond debt. Accordingly, the Kredyt Inkaso is ready for new challenges and boosting investment activity. We are now well prepared to purchase new portfolios, both in terms of financing and operational efficiency. This will render it possible for us to increase the scale of operations in our key areas, namely Poland, Romania and Bulgaria.” – said Maciej Szymański, president of Kredyt Inkaso.
High levels of collections and net revenues allowed for a substantial reduction in debt ratios and keeping them at levels much lower than the limits assumed. The net debt to equity ratio was reduced to 0.94, and the net debt to cash EBITDA ratio to 1.79 (in the previous year it was 1.44 and 3.14, respectively). The Group estimates that ERC (Estimated Remaining Collection) – namely the expected value of recoveries from repayments from the debt portfolios held – amounted to almost PLN 1.1 billion at the end of the financial year.
Making a write-off due to the revaluation of Russian assets necessitated the reduction of the very good results achieved by the Group. Kredyt Inkaso has been successively limiting its operations in Russia for 3 years, has not made new investments, and focused only on servicing its portfolios that started to expire. This is part of the strategy adopted by the organisation to focus on EU markets. As a result of the armed conflict with the participation of the Russian Federation, the sanctions imposed on that country, and retaliatory actions, it was necessary to make an accounting write-off of some of the assets related to this market which were still held by the Group, and they totalled PLN 12.6 million. These write-offs are non-monetary in nature, nor do they affect the Group’s financial security in any way. After their completion, the value of the portfolios related to this market became insignificant for the Group’s balance sheet.
Currently, Kredyt Inkaso Group, thanks to good operating results and debt reduction, plans to intensify its investment activities and thus provide itself with opportunities for further dynamic development in the future. The organisation’s plans also include yet another issue of corporate bonds, addressed to individual investors. The issue will be conducted under the prospectus approved by the Polish Financial Supervision Authority in August 2021.
About Kredyt Inkaso
Kredyt Inkaso was established in 2001 as a pioneer on the Polish market of debt management. Ever since, it has been constantly supporting companies and entrepreneurs in the recovery process, cooperating with banks, lenders, insurers and other entities from the consumer market. Kredyt Inkaso offers a wide range of services: from payment monitoring, through amicable collection, to court and enforcement processes.
Since 2007, Kredyt Inkaso has been present on the Warsaw Stock Exchange, and in 2018 it conducted the first public issue of bonds. In its activity, the Company follows the principle that the process of debt collection should be as easy and intelligent as possible, but first of all, it should be ethical – which is confirmed by Ethical Audit Certificates awarded annually by the Association of Financial Enterprises in Poland. The Company also pays attention to the issues related to corporate social responsibility and therefore is involved in educational or pro-social undertakings, among others.
