Euroloan Group Oyj: Euroloan Group Plc Interim Report 1.4.-30.6.2016

Helsinki, Finland, 2016-08-11 08:00 CEST (GLOBE NEWSWIRE) -- The quarterly income of Euroloan Group Plc reached EUR 5,2 million, exceeding the EUR 5 million level for the first time in the Group’s history. Quarterly income increased by 54% compared with the average quarterly income in 2015.

Profitability continues to increase as EBIT grew by 78% to EUR 3,5 million compared to Q2/2015 and net profit increased by 250% to EUR 2,8 million. Compared to the 2015 quarterly average, EBIT increased by 110% and net profit by 394%.

The Group’s solidity continued to improve, as the equity ratio has almost doubled to 60% from 31% in Q2/2015, with total equity now at EUR 28,6 million. The total balance is reduced due to a funding arrangement where receivables are sold to a third party.

Key Figures

	Q2 2016	Q1 2016	Q2 2015	Q1 2015	2015
Balance (million EUR)	48,1	49,9	57,5	53,3	49,5
Total income (million EUR)	5,2	4,0	4,3	2,6	13,4
EBIT (million EUR)	3,5	2,0	2,0	0,5	6,6
EBIT Growth	78 %	311 %	206%*	-22 %*	160 %
EBIT/Total Income	67 %	51 %	46 %	19 %	49 %
Net profit (million EUR)	2,8	1,5	0,8	-0,3	2,2
Equity ratio	60 %	50 %	31 %	33 %	50 %

  *estimated growth based on 2014 annual figures

Interim Financial Statement

BALANCE SHEET	Q2 2016	Q1 2016	Q2 2015	Q1 2015	2015
ASSETS
NON-CURRENT ASSETS
Intangible assets	16 468 861,67	15 151 482,72	11 096 944,42	11 259 329,74	14 199 735,89
Tangible assets and investments	13 945,64	13 945,64	28 526,20	27 572,40	13 945,64
TOTAL NON-CURRENT ASSETS	16 482 807,31	15 165 428,36	11 125 470,62	11 286 902,14	14 213 681,53
CURRENT ASSETS
Current Receivables	30 273 703,17	32 860 839,63	37 060 350,26	31 592 124,87	32 526 944,20
Cash and Bank Receivables	1 303 595,58	1 902 587,35	9 349 015,51	10 402 105,02	2 716 185,34
TOTAL CURRENT ASSETS	31 577 298,75	34 763 426,98	46 409 365,77	41 994 229,89	35 243 129,54
TOTAL ASSETS	48 060 106,07	49 928 855,34	57 534 836,38	53 281 132,03	49 456 811,07
EQUITY & LIABILITIES
EQUITY
Share capital and issue	80 000,00	80 000,00	80 000,00	1 434 998,00	80 000,00
Translation difference	-116 266,99	-116 266,99	-30 503,71	-30 503,71	-116 266,99
Reserve for invested non-restricted equity	21 463 288,66	21 463 288,66	15 967 568,66	15 108 290,66	21 463 288,66
Retained earnings	2 928 844,24	2 207 038,81	1 173 868,58	1 193 444,58	826 857,78
Profit for the Financial period	4 243 408,70	1 479 406,15	503 773,58	-286 121,55	2 238 160,91
TOTAL EQUITY	28 599 274,61	25 113 466,63	17 694 707,11	17 420 107,98	24 492 040,36
MINORITY INTEREST	0,00	0,00	0,00	0,00	0,00
GROUP RESERVE	13 393,63	13 393,63	28 004,63	28 004,63	13 393,63
LIABILITIES
Non-current Liabilities	10 293 500,00	469 500,00	6 449 000,00	21 212 000,00	404 250,00
Current Liabilities	9 153 937,83	24 332 495,08	33 363 124,64	14 621 019,42	24 547 127,08
TOTAL LIABILITIES	19 447 437,83	24 801 995,08	39 812 124,64	35 833 019,42	24 951 377,08
TOTAL EQUITY & LIABILITIES	48 060 106,07	49 928 855,34	57 534 836,38	53 281 132,03	49 456 811,07

INCOME STATEMENT	Q2 2016	Q1 2016	Q2 2015	Q1 2015	2015
Total income	5 169 511,04	3 986 184,63	4 253 448,12	2 630 547,13	13 416 195,13
Materials and services	-126 199,94	-103 445,92	-148 480,49	-180 810,77	-918 119,71
Personnel costs	-438 245,09	-355 645,13	-454 205,03	-481 282,64	-1 322 844,30
Depreciation	-303 844,42	-291 370,48	-249 469,19	-188 917,67	-937 325,25
Other business-related costs	-833 598,43	-1 196 949,06	-1 450 485,60	-1 283 652,37	-3 614 434,83
EBIT	3 467 623,14	2 038 774,03	1 950 807,81	495 883,68	6 623 471,04
Financial income and expenses	-703 620,60	-559 367,88	-1 075 691,25	-731 579,32	-3 782 657,28
EBT	2 764 002,54	1 479 406,15	875 116,56	-235 695,64	2 840 813,76
Tax	0,00	0,00	-85 221,43	-50 425,92	-602 652,85
Net Profit	2 764 002,54	1 479 406,15	789 895,13	-286 121,55	2 238 160,91

The interim financial figures provided are unaudited, and based on the Company management’s estimates of the situation with the information currently available. The estimates include, for instance, one-time items, investments, amortization and depreciation, financial and other costs. Calculated taxes, which have not been finalized at this point, are not included in the interim 2016 figures. Unexpected events, decisions by authorities, service providers, market disturbances and other factors may affect the actual financial figures significantly compared to these estimates. The reader is advised to read previous interim statements and to refer to the 2015 annual review and financial statement for the latest audited figures and more information about the Group. 

According to Tommi Lindfors, Chairman of Euroloan Group, the Group is growing according to plan and meeting the ambitious goals set out in the Group’s strategy. Profitability is increasing, business development is progressing well and the Group is showing very solid financials.

Mr. Lindfors says: “Despite our phenomenal growth and excellent team performance, we can still speed up our growth rate further. We still have much more potential to grow as our services are very popular with our customers. I see no reason why we could not increase our sales tenfold just in our current market areas in Finland, Sweden and Poland.”

CEO Samuli Korpinen adds: “Much faster growth could be achieved without compromising the asset quality of our credit portfolio, if only we had the funding to serve all our customers properly. Now we are limiting ourselves. Of course I am pleased with our performance within the current constraints, but we could do much better if we had unlimited funds. As our growth potential is huge and the business is very profitable, our strategy is currently focused rather on facilitating organic growth through getting more funding than on growth through acquisition. This means being active on the international capital markets to access more fuel for growth.”

Mr. Lindfors continues: “This is why we are applying for a banking license and, although we have an equity ratio of 60%, also preparing to increase our equity to be able to grow our balance considerably. To achieve a balance of 250 million EUR in total assets and meet capital adequacy requirements, we would need to raise an additional 40 million EUR in equity.”

“I am very pleased that Jolt Bank (www.joltbank.com), our new upcoming FinTech bank, has been very positively received in the market. What’s special about Jolt is that not only does it have a powerful, fully automated FinTech back-end, but also offers easy automation of online banking directly to customers. They can set their own financial goals and the bank automatically helps them achieve what they want. In just over a month we have reached hundreds of thousands of potential customers and many have already signed up for our coming services. We’ve had visitors from 22 countries already, and we haven’t even started marketing the bank yet! There is clearly a huge demand for simple, efficient online banking that places the customer first”, Mr. Lindfors concludes.

Euroloan’s subsidiary in Luxembourg, Euroloan S.A., is in the process of applying for a full EU bank license which is planned to be launched under the brand Jolt Bank.

About Euroloan Group

Euroloan Group PLC is a rapidly growing international group, specialized in highly automated financial services and financial technology (FinTech). The Group has offices in Helsinki (HQ), Luxembourg, Stockholm and Warsaw and the team includes around 50 professionals of 10 different nationalities.

The Group operates in a mobile online environment offering credit limits, loans, money transfers, webshop payment services, invoice payments and collection services as a real-time e-business to retail customers. For webshops and sales points, Euroloan offers pay-per-invoice and sales finance solutions that are easy, free of charge, and work under the merchants’ own brands. Euroloan originates high-quality structured consumer receivables portfolios with guaranteed performance and continuous monitoring and servicing.

All services are truly instant and automated and include origination and debt servicing functions that traditionally have been manual, such as identification, scoring, underwriting, payments, back-office, credit monitoring and debt collection. This is made possible by Euroloan’s proprietary cloud-based banking software and secured by its ISO27001:2013-certified information security management system.

More information about Euroloan Group is available at www.euroloan.com, Finland www.euroloan.fi, Luxembourg www.joltbank.com,  Poland www.euroloan.pl and in Sweden on www.euroloan.se.

         For more information, please contact:
         Jonas Lindholm
         Euroloan Group Plc
         Tel +358 10 217 1003