The AFORTI Group – a financial holding providing loan, debt collection and factoring services for micro, small and medium enterprises and managing an online currency exchange platform for companies – achieved cumulatively after four quarters of 2018 PLN 571.88 million of consolidated net sales revenues. It’s a little over 200 percent. more compared to the same period last year. At the same time, the consolidated net profit of the AFORTI Group increased to PLN 1.64 million from PLN 1.21 million in 2017. During this time, the Group’s EBIT exceeded PLN 10.60 million compared to PLN 7.02 million after four quarters of 2017 , which gives an increase of 50.95%.
The good financial results of the Group are accompanied by a high valuation of Aforti Holding, which is headed by the company and listed on the NewConnect market. At the end of 2018, the average capitalization of the company was estimated at PLN 48.92 million, ie by 65% more compared to mid-2018, when it amounted to only PLN 29.65 million. At the end of January 2019, the capitalization of Aforti Holding was estimated at PLN 62.26 million, which indicates that the company’s valuation during the month increased by nearly 30%.
In the fourth quarter of 2018, the AFORTI Group generated over PLN 206.15 million of net sales revenues compared to PLN 68.88 million generated in October-December 2017, recording an increase of almost 200 percent. What’s more – this value is even slightly higher than the revenues generated by the Group in four quarters of 2017, when the companies managed by Klaudiusz Sytek achieved the result of PLN 190.58 million.
The growing popularity of loan, debt collection, factoring and online currency exchange services certainly contributed to such good results at the end of the last quarter of 2018.
In the fourth quarter of 2018, the value of microloans sold by Aforti Finance amounted to PLN 14.03 million. The Aforti Exchange generated on the national online currency exchange platform for companies EUR 96.78 million turnover compared to EUR 34.46 million in IVQ 2017, which gives an increase of 180%, while Aforti Exchange Romania generated almost EUR 33.32 million compared to: EUR 14.64 million in Q3 2018. On the other hand, the nominal value of collection orders collected jointly by Aforti Collections and LifeBelt, which officially from January 2019 are already operating as one entity under the name Aforti Collections SA, was in IVQ 2018 PLN 98.07 million. On the other hand, the value of receivables financed by Aforti Factor was estimated from October to December 2018 to be up to PLN 10.20 million.
Our activity on the market of non-bank loans, debt collection and factoring services as well as online currency exchange for companies brings tangible financial benefits, which is confirmed by the results for the fourth quarter of 2018. In accordance with the development strategy adopted for 2018-2020, we have set very ambitious challenges and plans, such as – starting a leasing business, foreign expansion of currency exchange online platforms for companies to at least 7 new countries: Czech Republic, Hungary, Croatia, Serbia, Bosnia and Herzegovina, Albania and Macedonia, as well as the transition of Aforti Holding to the WSE. Effective implementation of the business strategy should result into strengthening the company’s growth potential and its value in subsequent years. From quarter-to-quarter, we improve our revenues and profits, which also grow, unless we invest significant amounts in the development of the Group in a given period. We are dynamically developing our activities outside the country – last year, another of our companies, Aforti Finance started its operations on the Romanian market. In the fourth quarter, we also finalized the merger process of LifeBelt and Aforti Collections, which currently operate under the Aforti brand – summarizes Klaudiusz Sytek, President of the Management Board of Aforti Holding.
As Paweł Opoka, the Vice-President of the Management Board of Aforti Holding adds – Achieving very good financial results by the AFORTI Group cumulatively after four quarters of 2018 was made possible through many initiatives, both at the investor and business level. We constantly strive to improve our services, increase their availability and improve quality, which brings tangible results in the form of satisfying numbers. I believe that good prospects for the industries in which our companies operate, as well as the constant demand from entrepreneurs for the services of the AFORTI Group, allow us to believe that 2019 should also be auspicious for us. Significant extension of the portfolio of products and services offered to micro, small and medium-sized enterprises by companies from the AFORTI Group will be accompanied by the development of new business areas, based, among others, on on expanding the product portfolio for corporate and investment banking in the field of leasing. To this end, AFORTI plans to establish a new company within the next three years, but the acquisition of an existing entity cannot be excluded.
FINANCIAL RESULTS OF AFORTI GROUP – DETAILED INFORMATION:
• The value of the microloans sold by Aforti Finance in IVQ 2018 amounted to PLN 14.03 million.
o The total value of loans granted in 2018 amounted to PLN 59.19 million, which gives an increase of 63.4%. compared to 2017.
• On the online currency exchange platform for companies, the Aforti Exchange generated EUR 96.78 million of turnover in Q4 2018 compared to EUR 34.46 million in IVQ 2017
o From January to December 2018, the value of turnover on the national Aforti Exchange platform reached the level of EUR 269.95 million, recording an increase of 198.53% every year
• Aforti Exchange Romania has recorded on the Romanian platform in Q4 2018 with 33.32 million EUR of turnover in relation to: 14.64 million EUR of turnover in IIIQ 2018; EUR 12.51 million in Q2 2018 and EUR 7.21 million in Q1 2018
o Froim January to the end of December 2018, the Aforti Exchange Romania recorded EUR 67.81 million of the total turnover
- The value of receivables financed by Aforti Factor – a company which commenced operating activities only in Q1 2018 – amounted to PLN 10.20 million in Q4 2012 compared to PLN 8.3 million in IIIQ 2018, PLN 5.82 million in Q2 2018 and 2, PLN 93 million in Q1 2018, which gives cumulatively, at the end of December 2018, the value of PLN 27.26 million.
• As a result of acquisition in 2018, 76.9 % of LifeBelt shares, the company specializing in the mass recovery at the request of banks, loan companies, telecoms and other debt collectors, in the perspective of 2-3 years, Aforti Collections assumes strengthening its share in the debt collection market. In December 2018, there was the official merger of companies that currently operate as one entity under the name Aforti Collections S.A.
o The nominal value of collection orders collected jointly by Aforti Collections and LifeBelt amounted to PLN 988,07 million in Q4 2018.