March 2, 2015
Financial statements
Audited financial statements of SIA ExpressCredit for the year 2014
Correction: Management responsibility statement amended to the attached report.
Group has worked successfully over the period from 1 January to 31 December 2014. Total revenue for the period increased by 21% over the 2013 and reached EUR 16 627 992.
Due to implementation of the chosen business strategy, the Group’s financial indicators continued to improve in year of 2014:
- During the period, the Loan portfolio of the Group has increased significantly – by 28% - and reached EUR 6.2 million;
- As at 31 December 2014, the amount of the Group’s assets equaled EUR 10.9 million ;
- Net profit for 2014 was EUR 1 401 563 (2013 EUR 379 116).
During the reporting period, according to the bond issue prospectus, SIA ExpressCredit has elected and registered Council of the Company in the Register of Enterprises of the Republic of Latvia.
Branches
During the period from 1 January to 31 December 2014 has continued the work on the branch network to increase efficiency, loan volume increase and IT systems development. As at end of the period, the Group had 93 branches in 38 Latvian cities (31.12.2013. - 93 branches in 38 cities in Latvian).
Group’s risk exposure
The Group is not exposed to material foreign exchange risk because settlement takes place in euro. The Group has financed assets by bond issue at fixed interest rate, reducing exposure to significant variable interest rate risk. Accurate application of the prudent strategies has allowed the Group to successfully manage its financial risks, particularly, liquidity and credit risk.
Subsequent events
On 12 February 2015, the Group’s parent company and the Riga City council has signed a contract for the purchase of SIA "Riga City Pawnshop" 569 148 (100%) shareholding. The right to acquired shareholding rights have been acquired in the auction process. The purchase price of EUR 880 000 was transferred on 18 February 2015. On 23 February 2015, the transaction was registered in the Register of Enterprises of the Republic of Latvia.
Except for the above, there have been no significant events since the reporting date and the date of signing of the report that could significantly affect the results for the year 2014.
Future prospects
In the year 2015 the Group plans to strengthen market leadership and improve the branch network. It is planned that the company's portfolio and profit dynamics will be with upward trend from year 2014 results.
Profit or loss account for the year ended 31 December 2014
| Parent company | Group | Parent company | Group | ||
| 2014 | 2014 | 2013 | 2013 | ||
| EUR | EUR | EUR | EUR | ||
| Net sales | 7 650 397 | 7 987 859 | 6 395 631 | 6 395 631 | |
| Cost of sales | (5 596 572) | (5 881 617) | (4 678 868) | (4 678 868) | |
| Interest income and similar income | 8 463 985 | 8 640 133 | 7 278 436 | 7 304 487 | |
| Interest expenses and similar expenses | (1 175 458) | (1 216 106) | (1 422 860) | (1 425 319) | |
| Gross profit | 9 342 352 | 9 530 269 | 7 572 339 | 7 595 931 | |
| Selling expenses | (4 812 824) | (4 880 420) | (4 397 795) | (4 405 302) | |
| Administrative expenses | (1 877 951) | (1 883 023) | (1 329 204) | (1 332 376) | |
| Other operating income | 56 328 | 56 328 | 32 377 | 32 635 | |
| Other operating expenses | (1 225 712) | (1 226 186) | (1 309 495) | (1 312 750) | |
| Profit before taxes | 1 482 193 | 1 596 968 | 568 222 | 578 138 | |
| Corporate income tax for the reporting year | (263 264) | (286 038) | (224 730) | (225 810) | |
| Deferred tax | 90 633 | 90 633 | 26 788 | 26 788 | |
| Current year's profit | 1 309 562 | 1 401 563 | 370 280 | 379 116 |
Balance sheet as at 31 December 2014