Aforti Holding’s transition to the main market of the Warsaw Stock Exchange, the publicisation of two subsequent companies from the AFORTI Group, the commencement of leasing activities, the foreign expansion onto at least 7 subsequent countries, as well as the development of a network of units and own branches all throughout Poland – such ambitious business objectives are set out by Aforti Group in the strategy for 2018-2020.
AFORTI – a financial holding managed by Klaudiusz Sytek, offering non-bank loans, debt collection and factoring services for companies from the SME sector, as well as managing an online currency exchange platform – plans to spend on the implementation of the 3-year strategy at least EUR 23 million. Investments are to be funded using equity, but the Group is also hoping to obtain additional funds on the capital market and is considering mezzanine financing.
The transition of Aforti Holding – a company quoted on NewConnect since 2011 – to the main market of the Warsaw Stock Exchange is scheduled for the turn of 2018 and 2019. Currently, the company is also continuing the sale of Aforti Finance stocks in the private placement mode, which has been commenced at the end of the 4th quarter of 2017. In February 2018, the company specialising in financial services and non-bank loans for micro, small and medium-sized enterprises chose the Authorised Adviser, who will be responsible for introducing its shares to trade in the Alternative Trading System on the NewConnect market. The debut may take place as soon as in the first half of 2018.
At the same time, the Aforti Group is considering publicisation of Aforti Exchange – an online currency exchange platform, already available not only on the Polish and Romanian market, but also beginning its operation in Bulgaria. According to the strategy of the AFORTI Group – within the next 2-3 years, the Aforti Exchange online currency exchange will appear in at least 7 subsequent countries of the EU and CEE, such as: the Czech Republic, Hungary, Croatia, Serbia, Bosnia and Herzegovina, Albania, as well as Macedonia.
“The purpose of the planned activity of companies from the AFORTI Group on capital markets – apart from transparency of the conducted activities – is, above all, to diversify funding sources of investments stipulated in the strategy for 2018-2020. We assume that this will allow us to acquire at least EUR 20 million for further development of the Group,” emphasises Klaudiusz Sytek, President of the Management Board of Aforti Holding.
The international expansion is also planned by Aforti Finance, which is, at the same time, preparing for the debut on NewConnect. The first target is the Romanian market, where AFORTI is already present with the online currency exchange platform for businesses.
“We began the conquest of foreign markets with the Aforti Exchange e-exchange, since it involves significantly lower entry thresholds than in the case of companies providing financial services, in the case of which it is necessary to build scoring models. However, we have been preparing for this task for the last few months, so we assume that the debut of Aforti Finance on the Romanian market and, at the same time, the commencement of operating activities may take place as soon as in the 3rd quarter of 2018,” announces Klaudiusz Sytek.
The Aforti Group – apart from activation of operations on foreign markets – also assumes a dynamic growth of its network in Poland, connected with the start-up of subsequent units and own branches, providing lending, debt collection and factoring services for micro, small and medium-sized entrepreneurs, under the business names: Aforti Finance, Aforti Collections and Aforti Factor. At the end of 2017, the AFORTI Group was formed of nearly 150 employees, employed in 17 branches all throughout Poland and in the Romanian facility.
Further dynamic national development of Aforti Finance also assumes introduction of the online application submission service, which should be available as soon as in 2018, as well as the start-up of its own call centre, thanks to which it will be possible to provide efficient and effective customer service.
On the other hand, Aforti Collections, a company specialising in credit management and debt collection services, assumes growth in the debt collection potential in 2018-2020, among others, through the increase in the number of call-centre positions, increased provision of legal services, as well as expansion of the sales network.
At the same time, the largest project of AFORTI in the field of invoice financing – under the technological development being implemented – will be the introduction of the online factoring service. Aforti Factor is already preparing for implementation of the system for handling factoring products, thanks to which the new solution will be available in 2018.
The significant expansion of the portfolio of products and services offered to micro-, small and medium-sized entrepreneurs by companies of the AFORTI Group will be accompanied by development of new areas of operations based, among others, on expanding the portfolio of products for corporate and investment banking in the scope of leasing. For this purpose, AFORTI will establish a new company or will acquire an already existing entity within the next 3 years.
“The business strategy of the AFORTI Group for 2018-2020 is based, first of all, on more intense activity on capital markets and on organic development. However, in order to expand the portfolio of products and services, we are not ruling out acquisitions of external companies, focusing during that time on expansion on the domestic market as well as on the foreign market. Investments planned by AFORTI for the next 3 years will require huge financial expenditures, so one of the most important tasks of the management staff will also cover actions focused on acquisition of funds for further development. Diversification of investment funding sources, which has become our specialty over the past few years, should provide effective implementation of the strategy, while at the same time setting out our schedule of activities planned for the next 3 years,” summarises Paweł Opoka, Sales Managing Director of Aforti Holding.
Cumulatively, after four quarters of 2017, the Aforti Group earned more than PLN 190.73 million of consolidated revenue and PLN 2.18 million of net profit. During this period, EBITDA amounted to PLN 8.3 million, net profitability reached 1.14 percent, ROE ratio increased to 42.3 percent, and ROA up to 2.43 percent, with capitalisation of Aforti Holding, quoted on NewConnect, at the level of PLN 24.88 million at the end of December 2017.
Therefore, after four quarters of 2017, consolidated revenues recorded by the AFORTI Group cumulatively increased by over 206 percent, from PLN 62.3 million in 2016 to PLN 190.73 million in 2017. On the other hand, net profit of the AFORTI Group for 2017 increased by almost 316 percent – from PLN 0.52 million achieved in the previous year up to PLN 2.18 million at the end of 2017. At the same time, net return of the AFORTI Group reached 1.14 percent as compared to 0.84 percent at the end of 2016.
These are exceptionally high financial results in the history the holding, which were achieved by companies from the AFORTI portfolio by providing highly specialised financial services for micro, small and medium-sized enterprises.