Interview for the portal Inwestorzy.tv
Early this month, during the official press conference, we announced the latest strategy of Aforti Group for years 2018-2020. Still on the same day, the President of the Management Board of Aforti Holding S.A. – Klaudiusz Sytek, together with Paweł Opoka – Sales Director at Aforti Holding S.A, gave an interview to the portal Inwestorzy.tv. They explained what lies beneath the new strategy, what changes it introduces and when the Group will move from NewConnect to the main floor. Watch and listen to the whole interview conducted by Agnieszka Zaręba, a journalist of the portal Inwestorzy.tv.
Interview – the new strategy of Aforti Group for years 2018-2020.
Aforti Holding sold shares of Aforti Finance for PLN 6.9 million on the basis of private placements
Aforti Holding – a company that has been listed on NewConnect since August 2011 and offers lending, debt collection and factoring services to SMEs and manages an online currency exchange platform for companies – sold 1,334,872 shares of a subsidiary company of Aforti Finance for PLN 6.9 million on the basis of private placements.
The selling price of a single share was PLN 5.20, therefore Aforti Finance was priced at PLN 57.2 million. Prior to the transaction, Aforti Holding held 9,262,632 shares of its subsidiary Aforti Finance, which constituted 84.21 percent of its share capital, and now it controls 72.07 percent of the capital. Aforti Finance’s entry on New Connect is planned in the middle of 2018.
Aforti Finance’s activity on the capital market is an element of the Aforti Group’s strategy for years 2018-2020, which includes – besides the Aforti Holding’s entry onto the main trading floor of the Warsaw Stock Exchange at the turn of 2018 and 2019, and the debut of Aforti Finance on New Connect – also the fintech company Aforti Exchange going public in the international market.
The online currency exchange platform for companies, managed by AFORTI Group, is currently available in the Polish and Romanian markets, and soon the company will start its operational activity in Bulgaria. Another step in its development will be the currency exchange bureau’s international expansion to at least 7 more countries, i.e. Czech Republic, Hungary, Croatia, Serbia, Bosnia and Herzegovina, Albania and Macedonia. Finally – within the next few years – at locations in which Aforti Exchange will start its business activity, the plans also include the international development of Aforti Finance, specializing in the non-bank financing of SMEs. From 2016 to the end of Q1 2018, the value of credits granted to entrepreneurs by Aforti Finance reached almost PLN 55 million.
“The excellent standing of Aforti Finance in the domestic lending market, and therefore its strong financial position, makes this moment perfect to go public. The valuation of shares – sold on the basis of private placements for PLN 5.2 per share – confirms that the decision to introduce them to trading in the Alternative Trading System on NewConnect already in 2018 will enable a diversification of sources of funding, and thus allocation of a part of assets obtained to further dynamic growth of Aforti Finance in Poland and abroad. Importantly – the Aforti Holding’s strategy clearly and prominently assumes that sale of shares of Aforti Finance and potentially of other subsidiaries, will be carried out only to such an extent that will not result in the loss of control and the dominant position of Aforti Holding among subsidiaries” – stresses Klaudiusz Sytek, the President of the Management Board of Aforti Holding.
In 2018/2019, the Aforti Group – in reference to Aforti Finance – plans, inter alia, the introduction of online submission of applications and establishment of its own call centre that will enable efficient and effective customer service.
In 2017, the amount of loans granted by Aforti Finance to micro, small and medium-sized enterprises was nearly PLN 36.23 million, with 465 positively reviewed applications (of 2,317 applications submitted in the period for the total amount of over PLN 191 million).
Thus, Aforti Finance recorded over 867 percent increase in the value of financial support provided to enterprises, with the quantitative increase by 347 percent in respect of the number of successful applications.
The launch of the “Project Everest 2018” supported by AFORTI
Paweł Stempniewski from Łódź has just set out for the Himalayas on one of the biggest expeditions of his life. His aim is to climb the highest mountain in the world, i.e. the eight-thousander Mount Everest (8,848 m above sea level). Thus, he struggles to add to his mountain collection the fourth peak of the so-called Seven Summits, i.e. the highest mountain peaks of each continent. Less than 500 people in the world managed to do this, and Paweł Stempniewski has a good chance to join this group.
In his struggle to climb Mount Everest, Paweł Stempniewski is supported by: the financial group AFORTI, Poczta Polska, Bank Pocztowy, Epson Polska and others. The honorary patronage over the “Project Everest 2018” has been taken by Mrs Hanna Zdanowska, the Mayor of Łódź. The media partner of the Himalayan escapade is Telewizja TOYA, and the trainer Karol Hennig from Forma na Szczyt made sure that the adventurer was fit for the expedition. Paweł Stempniewski was also supported in his preparations by WOW Centrum Języków i Rozwoju.
The Mount Everest summit push – after 1-month acclimatization period and making three camps – is scheduled for the second half of May 2018. Stempniewski chose the classic route. He will follow the steps of the first conquerors, Edmund Hillary and Tenzing Norgay, who were the first ones to put their feet on the summit of Mount Everest on 29 May 1953. Thus, Stempniewski is going to climb the eight-thousander via the South-East ridge from Nepal, with the main base on the Khumbu glacier.
“AFORTI very actively supports sports. In the brand’s development strategy for years 2018 – 2020, the sports marketing is what determines our promotional activity. We are convinced that the financial support for teams or individual athletes as part as #AfortiSupPORT programme, or funds provided to sports juniors thanks to the newly established project #AfortiMocnyStart, first of all is the driving force for those who are – similarly to the companies of AFORTI Group – persistent and conscientious. These values are also dear to AFORTI, therefore we decided to sponsor the Project Everest 2018 expedition of Paweł Stempniewski” – stresses Agata Grzela, Marketing and PR Director at AFORTI.
AFORTI Group comes out with a new strategy for 2018-2020 – press information
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.
Development strategy of the AFORTI Group – press conference
On Thursday, 5 April 2018, a press conference took place in the seat of the AFORTI Group, devoted to the new strategy of the Group for 2018-2020. During the official part, President of the Board Klaudiusz Sytek along with Paweł Opoka – the Sales Managing Director of Aforti Holding S.A. presented the most important assumptions of the new strategy, which the Group adopted for the period of the next two years. During the meeting, we hosted journalists from the most prominent Polish business and financial press – such as Parkiet or Puls Biznesu.
