NEO Finance, AB Interim Report and unaudited Financial Statements for twelve-month period ended 31 December 2020
In 2020 H2 NEO Finance, AB achieved strong financial results in terms of EBITDA and pre-tax profit. 2020 H2 was the first financial period when company reached not only positive EBITDA but pre-tax profit as well. In 2020 H2 pre-tax profit was EUR 141 K while in 2019 H2 it was negative EUR -506 K. 2020 H2 compared to 2019 H2 showed EBITDA increase of EUR 570 K (from EUR -352 K to EUR 218 K). Revenue increase of 42% was witnessed in 2020 H2 compared to 2019 H2. More detailed information below in table.
|
2020 H2 |
2019 H2 |
∆, % |
|
|
Granted loans, EUR |
10 139 299 |
9 583 354 |
6% |
|
Sales revenue, EUR |
1 319 839 |
927 797 |
42% |
|
Cost of Sales, EUR |
(820 436) |
(913 804) |
10% |
|
Gross profit (loss) EUR |
499 403 |
13 993 |
3469% |
|
Operating costs, EUR |
(281 144) |
(365 850) |
23% |
|
EBITDA, EUR |
218 259 |
(351 857) |
|
|
Pre-tax profit, EUR |
141 322 |
(505 571) |
|
|
EBITDA Margin, % |
11% |
-54% |
|
|
Return on Equity (ROE), % |
4% |
-31% |
In 2020, despite of COVID-19 pandemic situation, which negatively affected Lithuanian consumer credit market, NEO Finance, AB, continued to increase the volume of loans issued, reaching EUR 19.09 M and, compared to 2019 grew by 2%. Likewise, the income grew to EUR 2.48 M versus EUR 1.72 M in 2019 (44% growth). In 2020 Company’s EBITDA was EUR 158K, whereas in 2019 it was EUR -647 K. Positive change was affected by active loan portfolio growth, purposefully managed costs and a considerable attention dedicated towards software development, targeted at process automatization. Accordingly, the net profit/loss in 2020 was EUR -4 K, compared to EUR -881 K in 2019.
|
2020 |
2019 |
∆, % |
|
|
Granted loans, EUR |
19 084 970 |
18 624 166 |
2% |
|
Income, EUR |
2 483 245 |
1 723 506 |
44% |
|
Cost of sales, EUR |
(1 561 098) |
(1 531 910) |
2% |
|
Gross profit, EUR |
922 147 |
191 596 |
381% |
|
Operating costs, EUR |
(764 077) |
(839 033) |
9% |
|
EBITDA, EUR |
158 070 |
(647 437) |
|
|
Pre-tax profit, EUR |
(4 366) |
(880 946) |
100% |
Payment initiation service (PIS) was growing rapidly, almost doubled transactions number because of growth of clients from Lithuania and Latvia, as well as rapid service expansion in Estonia and The Netherlands. In 2020, the company performed over 6.94 M transactions, compared to 3.75 M transactions in 2019. Accordingly, primarily due to the increase in PIS volumes, payment-activity-related revenue increased more than 2 times, from EUR 178 K in 2019, to EUR 477 K in 2020.
Interim financial statements and interim report of NEO Finance, AB (legal entity code 303225546, address: Vivulskio st. 7, Vilnius, Lithuania) for twelve months period, as well as Confirmation of responsible persons, are ready for acquaintance in the attachment.
Aivaras Bielskis
Financial analyst
E.: [email protected]
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