Kredyt Inkaso writes-off assets held by the group in Russia and thus takes another step towards leaving this market.
Kredyt Inkaso Group, which operates in Poland and on four other European markets, wrote-off the value of assets held in Russia for the total amount of PLN 12.6 million. After the impairment write-off, the value of the debt portfolios in the Group’s consolidated balance sheet related to operations in Russia amounts to only PLN 3.6 million. The valuation of assets is non-monetary and does not affect the current financial liquidity of the Group. The receivables on the local market represented only approx. 2% of the carrying amount of the portfolio of the entire organisation. This operation is a consequence of the up-to-date assessment of the situation and risks related to economic sanctions imposed on Russia as well as the retaliation of local authorities against entities controlled by companies located in the European Union countries. The write-off will impact the consolidated statement for the financial year 2021/22, reducing the accounting result by the written-down amount.
Kredyt Inkaso has been gradually phasing out its activities in Russia for 4 years and is limiting its involvement in this market. Since then, the subsidiary has not made any new investments in the form of debt portfolios, focusing solely on servicing the already owned and expiring portfolio. It is a consequence of the adopted business strategy, consisting in focusing on the Polish market and markets belonging to the common European Economic Area. Its pursuit was accelerated due to the outbreak of the armed conflict in Ukraine. This is one of the Group’s priorities in the current financial year.
Kredyt Inkaso will publish the consolidated and separate financial statements for the financial year 2021/22 (for the period from 1 April 2021 to 31 March 2022) on 30 June 2022. The Group recorded very good financial results in the three closed quarters of the previous year financial year. At the consolidated level, net revenues after 3 quarters amounted to PLN 161.2 million, which is an increase compared to the financial year 2020/21 by 26%. In turn, the net profit reached the level of PLN 41.1 million (an increase of 134%). Thanks to the good financial results and the refinancing operation that was completed in April this year, and the acquisition of new debt, the Group will be able to intensify its investment activity both in Poland, as well as in Romania and Bulgaria.
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.
