The Kredyt Inkaso group with PLN 9 million PLN in net profit in 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 the 2018/2019 financial year (April 2018 – March 2019).

• Payments from debtors amounted to PLN 232.8 million, up by 25 percent yoy
• Cash EBITDA for the 12 months ended 31 March 2019 was PLN 158 million, up by 27 percent year-over-year
• Profit before tax was PLN 20.7 million, which represents growth of more than 180 percent year-over-year
• Net profit was PLN 9.0 million, which represents growth of 36 percent year-over-year
• Recognition of deferred tax in the amount of PLN 7.5 million has a one-off negative impact on the net profit in the 2018/2019 financial year
• The balance sheet value of acquired accounts receivable as at the end of March 2019 amounted to PLN 709 million, down by 3 percent compared to the end of December 2018

„Increasing recoveries allow us to record a systematic growth of revenues and profitability. In Q4 of the last financial year, the payments amounted to PLN 61 million. Our objective remains to grow the scale of business on the basis of investments in attractive debt portfolios. 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.

High payments from debtors, with a relatively small scale of investments in Q3 and Q4 of the 2018/2019 financial year, resulted in a slight decrease in the balance sheet value of the receivables as at the end of March 2019.

In the 2018/2019 financial year the group invested PLN 166 million in debt portfolios, which is similar to last year.

The net financial debt to equity ratio in the group was 2.14x as at the end of March 2019.

In April 2019, the company allocated four-year series F1 bonds with the par value of PLN 210 million offered in a private placement. The funds raised from the issue were allocated to refinance the debt, i.e. partial redemption of series A1, C1, D1, E1 and Y bonds. The coupon amounting to 4.9 percent above WIBOR 6M is paid every six months. The company’s intention is to float the bonds on the Catalyst market. The raised financing stabilizes and sorts out the company’s debt structure for the next 4 years, ensuring comfort of operations. At the same time, it is a confirmation of Kredyt Inkaso’s credibility in the challenging market. In June 2019, the company redeemed series Y bonds with the par value of PLN 35 million.

Throughout its history the company has placed 42 series of debt securities with the total par value of PLN 1.232 billion. All maturing bond series have been redeemed on time together with interest.

As at 31 March 2019, the group’s balance sheet comprised 9 outstanding series of bonds with the total balance sheet value of PLN 452 million and 2 loans with the total balance sheet value of PLN 119 million. As at the end of March 2019, the group had cash in the amount of PLN 54.5 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.