AS DelfinGroup reports that its revenue in the first three months of 2021 reached €6 million, and the net profit – €0.8 million euros. The loan portfolio reached €32 million, EBITDA increased by 21% to €2.5 million, and the profit before taxes reached €1.1 million, which is an increase of 6% compared to the first quarter of 2020.
Chairman of the AS DelfinGroup management board, Didzis Ādmīdiņš: “The financial performance of DelfinGroup at the beginning of this year indicates stable growth, despite the Covid-19 pandemic and the restrictions imposed. Both pawn loan segments, including sales of pre-owned goods on the internet, as well as consumer loans segment, show good development trends. We anticipate that growth rates could increase with the easing or removal of restrictions. In the first quarter of 2021, we started the restructuring of three subsidiaries – SIA REFIN, SIA Banknote Commercial Properties, and SIA Express Inkasso. As a result of the restructuring, the operations of subsidiaries will be included in AS DelfinGroup. In the reported period, the loan portfolio of the particular subsidiaries decreased and the recovered funds were used to repay loans (€4.2 million) from the Mintos marketplace. In parallel with the reorganization, the company’s first Environmental, Social, and Corporate Governance (ESG) report for 2020 was prepared. The company continued active work on both the expansion of the branch network and the development of internet sales of pre-owned goods throughout Latvia. Due to the Covid-19 restrictions, a part of the sales of pre-owned goods moved to the internet. The Banknote pawnshop network has become one of the leading pre-owned and tested goods sales channels in Latvia, helping people all over the country to exchange things that they no longer need. Our goal is to significantly increase the exchange of pre-owned goods among the people of Latvia, making it more convenient, modern, and accessible. Pre-owned goods can be brought to any branch of the company, immediately receiving the money. In turn, anyone can subsequently view and purchase them in the internet store. We hope that the new opportunity to conveniently hand over and buy pre-owned goods will stimulate more and more people to think greener and not to throw away things that they no longer need for themselves, but can still be useful for others. The company already has almost 400 thousand customers both in Riga and in the regions.”
DelfingGroup did also recently improve its corporate governance of the company. At the beginning of 2021, the change of the legal form of the DelfinGroup from a limited liability company to a joint-stock company was completed, as well as a new professional company supervisory board with independent supervisory board members was elected. In March, the shareholders’ meeting approved the financial, corporate governance and fintech industry experts Gatis Kokins, Dr. Edgars Voļskis, Mārtiņš Bičevskis, Jānis Pizičs as new members of the supervisory board for five years term. The previously elected chair of the supervisory board Agris Evertovskis will continue to lead the supervisory board.
“Along with the improvement of the internal corporate environment and processes, we are ready to take the next significant step in the development of the company – in the second half of this year, DelfinGroup plans to go public on the Nasdaq Riga stock exchange with an initial public offering (IPO). Therefore, the company will fully devote the activities of the year 2021 to a major presence on the Nasdaq Riga stock exchange. If previously only DelfinGroup bonds were traded on the stock exchange, at the end of the year it is planned that there will also be possible to buy the shares of the company on the stock exchange. With the IPO, we plan to attract many new shareholders from all over the region, as well as acquire financial resources to develop more rapidly both the branch network and new consumer loans services for various consumer groups. We are focused on the development and in-depth market penetration in the field of both pawn and consumer segments. We want to make the modern financial services more accessible to people in Latvia,” says D. Ādmīdiņš.
DelfinGroup reports that in the first quarter, €1.3 million were paid in dividends to shareholders. The shareholders’ meeting also approved a new dividend policy, which provides for the regular payment of quarterly dividends of up to 50% of the quarterly net profits and possible additional dividends after year-end.
DelfinGroup is a licensed financial service company founded in 2009 and represents the brands – Banknote, VIZIA, and Riga City Pawnshop. The company employs 277 professionals in 92 branches operating in 38 Latvian cities. DelfinGroup’s core services are the sale of pre-owned goods in branches and on the internet, pawn loans, consumer loans, as well as loans specifically tailored to people of retirement age. The company’s investors include both individuals and institutional investors from Latvia, Lithuania, Estonia, and other countries. Starting from 6 May 2021, there are changes in the ownership structure and some equity investors overlap with Mintos.
The current outstanding DelfinGroup’s portfolio on Mintos is €12 031 990. There are 73 630 investors with active investments in Delfingroup loans with an average investment of €163 per investor.