- Home
- /
- News
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.
Record-breaking 1st quarter of 2018 for the AFORTI Group
Subsidiaries of Aforti Holding S.A., the NewConnect-quoted parent entity for the Group of Companies providing financial services for the SMEs sector, presented estimated operating and sales results for March 2018.
During this period, Aforti Finance S.A. granted 56 loans (increase by 69.70% YoY) with total value of PLN 5.01 million, which – as compared to the same month of 2017 – means growth by 209.52 percent.
The value of turnover on the currency exchange platform of Aforti Exchange S.A. amounted to EUR 22.41 million and was higher by 314.66 percent than in the previous year. In the case of Aforti Exchange Romania, this turnover amounted to EUR 3.92 million.
In March of this year, the face value of debt collection orders of Aforti Collections S.A. reached PLN 5.12 million and was higher than in March of 2017 by 14.04 percent. The number of debt collection orders of the company amounted to 70, namely 98.74 percent less than in the previous year.
Aforti Factor S.A., operating in the factoring segment, is also faring better and better. Last month, it financed liabilities with the value of PLN 1.39 million.
In the 1st quarter of this year, Aforti Finance SA granted 163 loans to entrepreneurs (75.27 percent more YoY), with total value of PLN 14.99 million, which means year-on-year growth by 232.69 percent. At the same time, 890 entrepreneurs applied for a loan (+ 93.48%) by submitting applications for the total amount of PLN 92.58 million (increase by 308.38 percent).“We are crossing subsequent result barriers by dynamically developing. The construction of our own sales network has clearly begun to yield the first expected results. The market situation is also favourable. Many entrepreneurs are looking for quick funding, since time is often of the essence in business. Our formalities and the contractor verification period take as little time as possible, thanks to which we are able to quickly issue a decision on granting funds,” says Klaudiusz Sytek, President of the Management Board of Aforti Holding S.A.
March brought for Aforti Collections S.A., the company operating in the debt collection and credit management industry, an improvement in the order portfolio value by 14.04 percent up to PLN 5.12 million. However, in the cumulative perspective, this value amounted to PLN 7.72 million at the end of the 1st quarter and remained 31.27 percent lower than in the previous year. The number of orders amounted to 70 only in March (-98.74 percent) and 937 from the beginning of the year until the end of March (-92.66 percent).
“Step by step, we are building real value of our order portfolio. The first effect is the growth in the face value of orders by over PLN 630 thousand,” says Klaudiusz Sytek
The month was successfully closed by Aforti Factor S.A., dealing with factoring, which financed liabilities with the value of PLN 1.39 million in March. “We closed the first quarter successfully, financing invoices for the total amount of nearly PLN 3 million. By acquiring new customers, we gained the possibility to utilise the synergy effect, presenting our offer to customers of other companies from the Aforti Group. Additionally, we are still noticing that Polish entrepreneurs need to be educated on what factoring is and what benefits it may bring to them. In the near future, we will prepare something like a free small compendium that will contain the basic information,” comments the President of the Management Board of Aforti Holding S.A.
Turnover records are broken by the currency exchange platform run by Aforti Exchange S.A. Throughout the 1st quarter, Polish entrepreneurs made exchange transactions worth nearly EUR 46.05 million, which means growth by 194.45 percent towards 2017. At the same time, Aforti Exchange Romania S.A. recorded a turnover in the amount of EUR 7.20 million in the same period. “Nowadays, a customer as individual as B2B values professionalism, promptness and convenience. We can guarantee these features in the operation of our online platform. At first, our Customers use this tool with caution, but after several transactions they admit that it becomes an indispensable tool in running business operations,” summarises Klaudiusz Sytek, President of the Management Board of Aforti Holding S.A.
Laur Eksperta 2018/2019 award for Aforti Finance and Aforti Exchange
We are honoured to inform that we were awarded with Laur Eksperta 2018/2019 (Expert’s Laurel). Certificates were granted to two of our companies – Aforti Finance – for the Gold Loan product, and Aforti Exchange – for the Currency Exchange Platform for Businesses product. During a festive Ceremony that took place on 26 March 2018 in the Belvedere-Klonowa Residence of the Chancellery of the President of the Republic of Poland in Warsaw, we also received the Extraordinary Honourable Mention – Medal Nowoczesności (Modernity Medal) for Aforti Exchange. We are glad to belong to the group of brands offering the best services on the Polish market!
Aforti Group successfully closed February 2018
Aforti Group – providing financial services for the SME sector, led by Aforti Holding S.A., a company quoted on the NewConnect market, published estimated operational-sales results at the end of February 2018.
From among subsidiaries, Aforti Finance S.A. is moving at the forefront – within two months of this year the company granted 107 loans with the total value of more than PLN 9.97 million, which is a YOY growth by, accordingly: 78.33 and 245.72 percent.
The indicated period was positively closed also by Aforti Factor S.A., offering factoring services to entrepreneurs, since at the end of February the value of liabilities financed by it amounted to more than PLN 1.53 million.
Promising results were also achieved by companies running web currency exchange platforms dedicated to entrepreneurs in Poland – Aforti Exchange S.A. and in Romania – Aforti Exchange Romania S.A. The first one in the period of January and February this year recorded the turnover of nearly EUR 23.65 million – 131.02 percent higher than the year before. At the same time, on the Romanian market Aforti Exchange Romania reached over PLN 3.18 million of turnover.
At the end of February 2018 the nominal value of debt collection orders acquired by Aforti Collections S.A. reached the level of PLN 2.60 million and was lower by 61.41 percent as compared to the year before, which was connected with the started remodelling of business.
In February, Aforti Finance granted 51 loans with the total value of more than PLN 5.49 million, which, as compared to the same period of the previous year, mean an increase by, accordingly: 45.71 and 233.21 percent.
“In February 293 entrepreneurs submitted credit applications to us for the total amount of nearly PLN 31.74 million. Number of applications increased by 80.86 percent year-over-year, and after first two months of this year by as much as 111.90 percent. This success was due to several factors. The first one is effective sales, as we’re constantly looking for new and innovative methods of reaching the client. The second, as shown by the latest market research, is a problem of payment backlogs. Some of our clients use non-bank loans in order to expand their companies, but there is also a high share of entrepreneurs who need funds because their contractors do not pay invoices on time” – comments Klaudiusz Sytek, owner of the Aforti Group and President of the Board of Aforti Holding S.A.
Apart from loans, entrepreneurs more and more often use factoring. For this reason, at the end of the previous year a new company providing this type of services appeared in the structures of the Aforti Group – Aforti Factor S.A. In February this year it financed liabilities amounting to PLN 1.00 million.
“The month-over-month value of liabilities financed by Aforti Factor increased by more than 87 percent, and I expect this trend to maintain and even gradually increase. The Company is taking the first steps on the factoring market, which is not easy since many entrepreneurs still not yet understood benefits of this services. From the data of the Polish Factors Association it seems that from among 600 companies of the SME sector examined in 2017, only slightly more than 14 percent, namely every seventh, uses factoring. Hence, we can see that the market in Poland may develop dynamically” – says Klaudiusz Sytek
According to the data obtained by PZF, factoring is most often used in operations of companies of the following sectors: HoReCa (24%), industry (20%), transport (14%) and trade (10%). Construction companies use this form of financial liquidity improvement least frequently – only 6%.
The upward trend is also improved every month by companies running the Internet currency exchange platform, also for entrepreneurs.
In February this year Aforti Exchange S.A. operating in Poland recorded PLN 11.17 million turnover on its platform, which means an increase by 176.59 percent YOY. During the same month, Aforti Exchange Romania S.A. operating on the Romanian market reached EUR 2.29 million of concluded currency exchange transactions.
“Companies operating on foreign markets are seeking for a possibly most favourable currency exchange options. Our platform gives it to them. We cooperate both with clients which exchange currencies periodically, as well as with those who exchange currencies every now and again. We can see that the tool proves effective” – summarises Klaudiusz Sytek, President of the Board of Aforti Holding S.A.
In February 2018 Aforti Collections S.A. achieved lower results. The nominal value of debt collection orders amounted to more than PLN 1.29 million (decrease by 23.83 percent YOY), and their number amounted to 35 as compared to 1,260 acquired the year before (decrease by 97.22%).
“The presented data are a result of remodelling of our business. It is necessary to understand and be aware of that, since they will still point to a negative trend for some time. When we started operations in the debt collection sector, we received many orders, only a part of which were cases with a good degree of recovery rate. We have decided to transform this quantity into quality and now we are more selective when it comes to accepting orders. We are currently focused on packages of liabilities meeting the specified criteria” – says clearly Klaudiusz Sytek