The AFORTI Group – a financial holding providing loan, factoring and debt collection services for micro, small and medium enterprises and managing an online currency exchange platform for companies – it achieved cumulatively after three quarters of 2018 almost PLN 365.73 million of consolidated net sales revenues. This is over 200% more in comparison to the same period last year.
At the same time, after three quarters of 2017, the net profit of the AFORTI Group increased from PLN 1.12 million to PLN 1.24 million in the period January – September 2018. The Group’s EBIT amounted to PLN 8.7 million compared to PLN 5.18 million in first nine months of 2017, which gives the increase by 67.98%.
The good financial results of the Group are accompanied by the high valuation of Aforti Holding listed on NewConnect. In mid-November 2018, the capitalization of the company managed by Klaudiusz Sytek was estimated at PLN 52.89 million compared to PLN 42.44 million in mid-August 2018 and PLN 24.88 million at the end of December 2017. In less than 11 months, the Aforti Holding valuation increased by approx. 112.5%.
Moreover, in the third quarter of 2018, the companies of the AFORTI Group generated over PLN 121.98 million of net sales revenues compared to PLN 46.5 million reached in the period July – September 2017, giving the increase of 162.13%. Additionally, it is even slightly more than the revenues generated by the Group in three quarters of 2017, when the companies managed by Klaudiusz Sytek reached PLN 121.7 million. At the same time, the net profit of the AFORTI Group in the third quarter of 2018 amounted to PLN 231 thousand.
In the third quarter of 2018, the value of microloans sold by Aforti Finance increased by almost 27% – from PLN 9.83 million in the third quarter of 2017 to PLN 12.48 million. At that time, Aforti Exchange generated on the national online currency exchange platform for companies EUR 61.05 million of turnover compared to EUR 22.91 million in the third quarter of 2017, which gives the increase of 166.47%, and Aforti Exchange Romania noted almost EUR 14.65 million turnover compared to: EUR 12.5 million in the second quarter of 2018, and EUR 7.2 million in the first quarter of 2018. Further, the nominal value of collection orders obtained jointly by Aforti Collections and LifeBelt amounted to PLN 329.94 million cumulatively after three quarters of 2018, which gives the increase of 1,141.79% every year. At the same time, the value of receivables financed by Aforti Factor was estimated in the period from July to September 2018 to PLN 8.3 million as compared to PLN 5.8 million in the second quarter of 2018, and PLN 2.93 million in the first quarter of 2018.
The Group owes such good results to the growing popularity of loan services and factoring services offered to enterprises from the SME sector and the online currency exchange platform for companies – growing in the country and on foreign markets.
– We improve our revenues quarter by quarter. Profits – as a rule – also grow, unless in a given period we invest significant amounts in the development of the Group. Particularly cost-intensive, but equally prospective in the long-term perspective, is the foreign expansion of companies from the AFORTI Group, among which the already experienced Aforti Exchange currency platform leads in this respect, followed by Aforti Finance. Currently, we are operating not only in Poland, but also in Romania. We also think that Bulgarian entrepreneurs will soon be able to use our currency exchange platform. In turn, one of the most important business events of the third quarter of 2018 was the acquisition by Aforti Collections of majority shares in the debt collection company LifeBelt, specializing in, among others, mass debt collection carried out at the request of banks, loan companies, telecoms and other debt collectors. This is a significant move in the context of the growth of the Group’s shares on the debt collection market, which will by reflected by the financial results in the future. Moreover, in July 2018, we launched our own call centre, and individual companies have gained highly experienced managers, thanks to which we look very positively at the consecutive months of dynamic development of the AFORTI Group – summarizes Klaudiusz Sytek, President of the Management Board of Aforti Holding.
Paweł Opoka, Vice-President of the Management Board of Aforti Holding, adds – Very good financial results of the AFORTI Group cumulatively after three quarters of 2018 are the effect of many business initiatives as well as the activities at the investor level. We constantly strive to make our services more widely available and their quality significantly higher every month. The particular activities in this area bring tangible results even in the form of growing net revenues. Further, the prospects of the industries in which Aforti Finance, Aforti Exchange, Aforti Collections and Aforti Factor operate – assuming that the economic and macroeconomic situation in Poland remains stable – and the consistent implementation of our business strategy will enable a significant increase in the AFORTI Group’s market share and thus, they will influence the further increase in results in the following years.
Significant extension of the portfolio of products and services offered to micro, small and medium-sized enterprises by the AFORTI Group companies will be accompanied by the development of new business areas, based on, among others, expanding the product portfolio for corporate and investment banking in the field of leasing. For this purpose, AFORTI plans to establish a new company within the next 3 years, but it is also possible to acquire an existing entity.
Aforti Finance comes up with a new TV campaign. The latest commercial spot will be broadcasted in channels of Polsat and TVN. The campaign will end on December 2018. Our first TV spot could be seen during the holidays and from September to the end of October this year.
The advertising spot of Aforti Finance is aiming mostly at enterprenours running a sole proprietorship. The theme of the campaign is a case study of the entrepreneur – a dressmaker. After receiving a loan from Aforti Finance, she transforms her small service point into a thriving company, along with a fashion showroom in which she can proudly present designer clothes. The story is a continuation of the brand’s narrative, in which the support provided by Aforti Finance helps entrepreneurs to develop their company quickly and efficiently.
The Prospero agency was responsible for the direction, script and production of the Aforti Finance’s 15-second advertising spot. Media buying and planning was carried out by the WaveMaker media house and Marketing and PR Department of the AFORTI Group.
The new version of Aforti Finance campaign refers to the trend we are observing regarding the profile of borrowers. We try to precisely reach the industries which, according to the conducted analyzes, are not afraid of investments and focus on the development of their companies. The structure of our clients is very diverse, however, wholesale and retail trade are still dominant. An interesting trend refers to the increase in the number of entrepreneurial women who apply for higher and higher loan amounts for the development of their own business. This is the reason why the theme of female entrepreneur has been used in the campaign. Our statistics also indicates a dynamically growing number of business owners who are active Internet users, hence the decision to expand online channel with our Tv campaign. Such a holistic approach ensures not just reaching the target group, but also strengthens the brand image. – emphasizes Agata Grzela, the director of Marketing and PR Department of the AFORTI Group.
The loan services offered by Aforti Finance –in Poland and in Romania (since Nov.,2018) – target at entrepreneurs looking for optimal forms of financing their own business and development plans, as well as people running a sole proprietorship or starting to accumulate capital at its launch.
Aforti Finance Romania IFN S.A. obtains the license of a non-bank financial institution
Aforti Finance is a company providing loans to micro, small and medium-sized enterprises. This year Aforti Finance obtained a non-banking financial institution’s license issued by the National Bank of Romania, which entitles to offer financial services in romanian market.
Romania is the first of seven foreign markets, on which the financial partner of SME sector will provide loan services planned for the coming years –
As part of an extensive international expansion, Aforti Finance intends to reach with its offer such countries as: the Czech Republic, Hungary, Croatia, Serbia, Bosnia and Herzegovina, Albania and Macedonia, following the Aforti Exchange – an online currency exchange platform for companies, which is also managed by the AFORTI Group.
We started the development on foreign markets from the Aforti Exchange expansion, because it involves much lower entry thresholds than in case of companies providing financial services, where it’s necessary to build scoring models. However, this does not change the fact that we will implement our activities on the international stage consistently, in accordance with development strategy of AFORTI Group for 2018-2020, by widening the offer for entrepreneurs in the field of currency exchange and loans – says Klaudiusz Sytek, the CEO of Aforti Holding.
Paving the way by one of the companies belonging to the AFORTI Group will allow not only for secure and efficient implementation of new services from a legal and operational perspective, but also will significantly minimize the business and financial risks associated with launching new businesses on foreign markets. Such a strategy provides the Aforti Group with the synergy effect between companies operating on the international stage.
Romanian market is not accidental as a place for the implementation of new business projects of Aforti Finance and Aforti Exchange. This was a well thought decision resulting from the economic position of Romania in Europe. Despite appearances – Romania is one of the largest and most dynamically developing economies on the Old Continent, which is why we are present in this part of Europe.
In 2017, the nominal GDP of Romania amounted to USD 206.9 billion, and GDP per capita reached USD 10.56k. According to the estimates of the European Commission, the real GDP of Romania have increased by 6.7 %. in 2017 versus 4.9% a year earlier. At the time the most important sectors responsible for Romania’s GDP were the services and industry sectors, which have generated approx. 64 % of GDP and 33 % GDP.
The European Commission and the World Bank estimate that the Romanian economy will continue to grow, under the assumption that the growth rate is going to fall to 4.5%. in 2018 and 4 percent. in 2019. According to the forecasts of the International Monetary Fund, Romania’s economic growth will reach even 5 percent this year. The most optimistic estimates indicated by the Romanian National Commission for Forecasts shows that in the medium-term perspective for 2018-2021, in 2018 Romania will achieve GDP growth reaching even 6.1 percent.
Undoubtedly, Romania will remain the leader of economic growth in Europe, hence – similarly to other companies of Western Europe – we have been actively working on the entrence to this dynamically growing, although still very young, market.
The advantage of this market is the lower entry barriers and enormous potential of domestic entrepreneurs who, following the development of the national economy, activate their own business activities, looking for fast and attractive sources of financing.
Thus, the entry of Aforti Finance into this market should bring tangible results in the following years, in the form of positive financial results, as well as the growing recognition followed by strong position of Aforti Finance on foreign markets – adds Klaudiusz Sytek.
Moreover, further dynamic development of Aforti Finance on domestic market provides for introduction of an online application service, which will be available in 2019 and further development of its own call center, launched in July 2018, which enables an efficient and functional customer service from the SME sector.
The loan services offered by Aforti Finance are addressed to entrepreneurs looking for optimal forms of financing their own business and development plans, enterprenours running a sole proprietorship or limited liability companies.
Subsidiaries of Aforti Holding S.A. – the parent company of the Capital Group listed on the NewConnect market, providing financial services for the SME sector – presented estimated operating and sales results for September 2018. The group welcomed autumn of profit growth.
From the beginning of this year to the end of September this year. Aforti Finance S.A. granted 437 loans to entrepreneurs (more by 28.91% year on year) with a total value of PLN 45.16 million, which is an increase by 91.03% year-to-year. Furthermore, 2,936 entrepreneurs applied for the loan (an increase of 81.01%), submitting applications for the total amount of over PLN 373.90 million (an increase by 204.61%).
“Three quarters of the year are behind us now. We sustain upward trend. Only in September we’ve granted funding over PLN 4.02 million worth. In addition, 247 new loan applications were received for a total amount of 33.18 million PLN. Thanks to active marketing and communication policy, the brand of AFORTI Finance is becoming more and more recognizable. We can support the activity of an increasing number of Polish entrepreneurs who do not have access to other forms of financing the development of their companies. “- says Klaudiusz Sytek, President of the Board of Directors Aforti Holding S.A.
In September 2018, traders exchanged currencies via online platform operated by Aforti Exchange SA worth almost 21.22 million euros, which means 116.83% more than the year before. During the same period, Aforti Exchange Romania S.A recorded a turnover of approx. 5.80 million euros.
“In terms of sales Aforti Exchange breaks further record levels. In recent months, we have recorded an increase in transactions and the registration of new customers. We expand our structures in Romania, where after 9 months we recorded a turnover of nearly 34.49 million euros. “- says Klaudiusz Sytek, the President of the Board of Directors of Aforti Holding S.A.
Both companies of Aforti Exchange have generated a total turnover of EUR 207.64 million.
In September 2018, Debt collection company Aforti Collections S.A. has recorded PLN 1.17 million of the nominal value of debt collection orders, and together with LifeBelt sp.o.o. (majority shares aquired in August this year), this value amounted to PLN 32.38 million.
In the period from January to the end of September this year, Aforti Collections S.A. has recorded PLN 11.65 million worth of orders. During this period, the company had 2,070 debt collection orders in its portfolio, 697 were newly acquired.
Nine months of this year, the value of LifeBelt orders portfolio amounted to over PLN 318 million, where the number of orders was 70 689 (during this period, 6 new contracts were acquired).
“We are already observing the first positive effects of the first stage of the merger of Aforti Collections and LifeBelt. First of all, the mutual exchange of knowledge and experience, as well as business solutions enabling more efficient portfolio management.”- says Klaudiusz Sytek
Aforti Factor SA operating in the factoring segment, by the end of September 2018, has financed receivables in the amount of PLN 17.8 million.
“According to announcements, the company began to expand its operational structures, but we are still at the beginning of an intensive development path. Each month, the scale of operations is increasing, and we are gradually expanding the Clients’ portfolio. We conduct educational activities constantly, so that some of the Clients are able to assess by themselves, whether they need additional loan, or whether the factoring service will be more appropriate, “says the President of the Board of Directors of Aforti Holding SA.
Ladies and gentlemen,
We would like to thank you for participating in our Investor’s Day meeting of Aforti Holding SA that have ended in recent days. During sixth edition, we visited seven cities: Warsaw, Rzeszow, Kraków, Katowice, Wroclaw, Poznan and Gdansk. Over two hundred Investors and Bondholders have come to our meetings – thank you for your presence!
The concern for full transparency of our activities as well as good relations with investors and bondholders is one of the main pillars of our activity. We are pleased that we could once again actively present the most important information about the Group’s operations, summarize our financial results and answer all your questions. Investor’s Day is a great opportunity for us to get to know the expectations of investors and bondholders. As a result, it allows us to constantly improve cooperation and to achieve our goals more effectively.
We would also like to thank to the hosts of the meetings, as well as our partner – Pernod Ricard Group, for extremely successful cooperation.