The Kredyt Inkaso group with PLN 26 million PLN in net profit in Q1-Q3 of the 2018/2019 financial year

The Kredyt Inkaso group, one of Poland’s biggest players in the debt collection industry, recorded a strong growth in financial results in Q1-Q3 of the 2018/2019 financial year (April 2018 – December 2018).

• Net revenues stood at PLN 128 million, up by 32 percent compared to the corresponding period of the previous year
• Cash EBITDA for the 9 months ended 31 December 2018 was PLN 117 million, up by 24 percent compared to the corresponding period of the previous year. Cash EBITDA for the past 12 months, as at the end of December 2018, amounted to PLN 147 million
• Net profit stood at PLN 26 million, up by 91 percent compared to the corresponding period of the previous year
• The balance sheet value of acquired accounts receivable as at the end of December 2018 amounted to PLN 727 million, down by 2 percent compared to the end of September 2018
• Payments from debtors reached PLN 172 million, up by 29 percent compared to the corresponding period of the previous year

„Increasing recoveries allow us to record a systematic growth of revenues and profitability. Considering the upcoming repayment of series Y, A1 and A2 bonds, we have temporarily curtailed investments in new debt packages. We intend to continue our financing diversification policy, concentrating in the nearest future on private debt issues and bank financing” – comments Maciej Szymański, President of Kredyt Inkaso’s Management Board.

In Q1-Q3 of the 2018/2019 financial year (April 2018 – December 2018) the group invested PLN 160 million in debt portfolios, 30 percent more than in the corresponding period of the previous year. The company’s Management Board expects that the scale of investments in the entire financial year will remain on the current level.

The group’s good financial standing is confirmed by the net financial debt to equity ratio which, as at the end of December 2018, stood at 1.95.

Kredyt Inkaso continues to be a solid and stable partner for investors investing in the company’s bonds. Throughout its history the company has placed 41 series of debt securities with the total par value of PLN 1.022 billion. All maturing bond series have been redeemed on time together with interest. The latest redemption of bonds together with interest took place in accordance with the schedule in October 2018, when the company repaid its series X bonds with the total par value of PLN 47.8 million (in August 2018 the company redeemed prematurely some of series X bonds with the value of PLN 21.2 million). Consequently, all liabilities resulting from series X bonds with the par value of PLN 69.0 million have been repaid.

As at 31 December 2018, the group’s balance sheet comprised ten outstanding series of bonds with the total balance sheet value of PLN 456 million and 3 loans with the total balance sheet value of PLN 120 million. As at the end of December 2018, the group had cash in the amount of PLN 36 million.

The company purchases debt portfolios from different sectors, primarily telecommunication, consumer loans and retail. In addition to Poland, Kredyt Inkaso operates also in Romania, Bulgaria, Russia and Croatia. The company currently does not plan further expansion but will focus on strengthening its position in the aforementioned markets.