1.1.-
· Turnover was
· EBIT was -
· Intermediated loan volume was approximately
· Earnings per share was -
· The insecurity caused by Corona virus pandemic reduced the volume of the supply of financing offered by the lenders
· Change of CEO on
Key Ratios
[][][][][][][][][][][][][][][][][][][][][][][][][][][][][][][][][][][][][][][]
informed)
(unaudited, unless otherwise
informed)
CONSOLIDATED
-06/20 -06/2019
20
Turnover (
0 193.7[1)]
From which commissions 3 312. 5 329.4 10 8 967.0[1)]
6 042.1[1)]
From which interest yields from 2 494. 1 907.4 4 151.6[1) 2 991.8[1)]
loans 3 ]
EBITDA 183.3 1 567.3 2 063.1 3 747.5
EBITDA margin % 3.2% 21.7% 14.5% 31.3%
Adjusted EBITDA 183.3 1 567.3 2 762.2[3) 3 922.3[2)]
]
Adjusted EBITDA margin, % 3.2% 21.7% 19.5%[3)] 32.8%[2)]
Operating profit (EBIT) -51.7 1 374.2 1 647.4[1) 3 357.1[1)]
]
Operating profit (EBIT) -margin, -0.9% 19.0% 11.6%[1)] 28.1%[1)]
%
Adjusted operating profit -51.7 1 374.2 2 346.6[3) 3 531.9[2)]
(Adjusted EBIT) ]
Adjusted operating profit -0.9% 19.0% 16.5%[3)] 29.5%[2)]
(Adjusted EBIT)
-margin, %
Earnings before taxes (EBT) -713 641.3 126.6[1)] 1 053.1[1)]
Earnings before taxes (EBT) -12.3% 8.9% 0.9% 8.8%
-margin, %
Adjusted earnings before taxes -713 708.7[3)] 893.0[3)] 2 168.2[2)]
(Adjusted EBT)
Adjusted earnings before taxes -12.3% 9.8% 6.3%[3)] 18.1%[2)]
(Adjusted EBT) -margin, %
Profit for accounting period -726.3 421.2 -69.1[1)] 797.9[1)]
Adjusted profit for accounting -726.3 475.0[3)] 544.1[3)] 1 690.0[2)]
period
Lainaamo's loan receivables rate 24 27 727.6 28 657.3 21 257.6
488.5
Outstanding interest-bearing debt 15 22 054.1 20 370.0 16 930.0
870.0
Equity/share (issue-adjusted), 1.9 2.1 2.0 2.0
EUR
Return on equity (ROE), % neg. 5.8% neg. [1)] 8.5%[1)]
Equity ratio, % 45.3% 38.3% 40.2%[1)] 44.8%[1)]
Personnel (average number) 45 38 50[1)] 27[1)]
Earnings per share (issue -0.10 0.06 -0.01 0.13
-adjusted) (EPS), undiluted, EUR
Adjusted earnings per share -0.10 0.07[3)] 0.08[3)] 0.28[2)]
(Adjusted EPS), undiluted, EUR
Equity/share, EUR 1.9 2.1 2.0 2.0
Salaries and incentives 979.6 921.6 2 666.3 1 525.5
End balance of Balance Sheet 30 38 239.0 36 040.6 32 392.5
366.7
Average number of outstanding 7 173 7 128 625 7 146 872 6 112 151
shares during period (issue 625
-adjusted)
Number of outstanding shares at 7 173 7 128 625 7 173 625 7 128 625
end of the period (issue 625
-adjusted)
[1)] Audited
[2)] Adjusted with Company's nonrecurring costs on financial period 2018 related on listing to Nasdaq's First North Finland -marketplace and option incentives related to that. Total of
[3)] Adjusted with Company's nonrecurring costs related on listing to Nasdaq's First North Finland -marketplace and option incentives related to that on financial period 2019. Total of
Interim-CEO
In the first half of 2020 the Corona virus pandemic and the restrictions caused by it together with the overall insecurity of the economic development hampered our business in several ways. The spreading of the pandemic to
However, we can be satisfied that the form of interest investment that we provide for our investors and the credit risk management proved their strength in the very challenging market environment. The repayment levels of both business and consumer loans did not face any significant deterioration. The average returns of investors remained positive, stable and on the pre-pandemic level. As a result, at the end of H1/2020 our investors started to restart investing gradually. This trend has continued to strengthen in the recent months. In addition, we were able to adjust our personnel and marketing cost to mitigate the effects of the decrease of turnover.
We are pleased with the development of the business financing operations and volume in H1/2020. Despite of the challenging business environment and tightened credit approval criteria the volume grew by 15% compared to H1/2019. Especially the invoice finance and purchase invoice finance products showed their elasticity and efficiency from the risk management point of view enabling the funding of our business lending customers in the uncertain times. This way we were able to participate the continuity of Finnish SME companies over the crisis caused by Corona.
In the second half of 2020 we will focus on bringing our loan volumes back to the pre-pandemic levels and on laying the foundations for growth in 2021. We expect our profits to develop in better direction as credit losses and variable marketing costs will diminish. In accordance with our strategy we will invest in launching new innovative financing products on our platform and expanding our product portfolio in the countries we currently operate in. In the future our ambition is to offer with our technology financing products for private individuals and businesses in the channels in which the financing is used and demanded and by doing so to grow the customer loyalty and lifetime value for our company. We will continue investing heavily in the development of risk management tools and seek a heavier emphasize on the lower-risk products in our loan volumes. We still see a big growth potential in our investor accounts especially in the institutional segment and we believe to achieve significant success in that front by the end of the year. We will strengthen further our organization in the selected business areas and invest in product development to enable faster implementation of new products.
Financial goals and Profit Forecast 2020
On 25th of March the company made an announcement of withdrawing its guidance for 2020 because of the significant uncertainty in the business environment.
The guidance will be issued when the visibility for the future is better.
Balance sheet and funding
At the end of the financial period, the
Capital adequacy
Fellow Finance's capital adequacy management has been organized according to the laws regulating Payment Institutions. The base of the capital adequacy management is that payment institution's own assets, together with their quality and allocation are on a sufficient level to cover the risks that payment institution carries continuously. To calculate the required amount of assets, Fellow Finance uses transaction-based calculation method. A transaction is included in the calculation when an investor transfers money via platform to the borrower and when borrower do repayment to the investor.
Essential events after H1/2020
After the end H1/2020 the company has strengthened its management team by appointing
Decision taken by the annual general meeting
The
It was resolved that; no dividends will be paid for the financial year 2019 based on the proposition by the Board of Directors.
The Annual General Meeting resolved that Kai Myllyneva (Chairman of the Board),
The Annual General Meeting resolved, in accordance with the specified proposal by the Board of Directors, that
The Annual General Meeting resolved, in accordance with the Shareholders' Nomination Board's proposal, to approve the amended Shareholder's Nomination Board's Rules of Procedure so that the following paragraph was deleted: "A person employed by or in the service of the Company or a member of the Board of Directors cannot be appointed as a member of the Nomination Board, with the exception of the Chairman of the Board of Directors who participates in the Board as a non-voting expert member."
Other shareholder's unanimous resolutions regarding share issues and special rights entitling to shares are addressed in the section "Share and shareholders".
The Board, CEO and Auditors
The Company's Board of Directors is formed starting at 1st of
The Company's Auditor is KHT Timo Helle (
The Company's CEO in the financial period has been
Share and shareholders
The Company's number of shares in 30[th]
The shares' closing price on the last trading day on 30[th] June was
The Annual General Meeting resolved, in accordance with the proposal of the Board of Directors, that the Board of Directors is authorised to resolve on the repurchase of the Company's own shares in one or several tranches using the Company's unrestricted shareholders' equity as follows. The maximum number of owns shares to be repurchased is 100.000 shares. The shares can be repurchased otherwise than in proportion to the shareholdings of the shareholders in public trading arranged by
The general meeting resolved, in accordance with the proposal of the Board of Directors, that the Board of Directors is authorised to resolve on a share issue and an issue of special rights entitling to shares as referred to in Chapter 10 Section 1 of the Companies Act in one or several tranches, either against payment or without payment as follows. The aggregate amount of shares to be issued, including the shares to be received based on special rights, must not exceed 400.000 shares.
The biggest shareholders
Shareholder list is based on
No
1
2 MARGIN INVESTMENTS OY 836 721 11.66
3 TN VENTURES OY 830 843 11.58
4
5 OP-SUOMI MIKROYHTIÖT -ERIKOISSIJOITUSRAHASTO 298 174 4.16
6 OP-SUOMI PIENYHTIÖT 269 711 3.76
7 AVENSIS CAPITAL OY 182 000 2.53
8 VAKUUTUSOSAKEYHTIÖ HENKI-FENNIA 151 174 2.10
9 SIJOITUSRAHASTO SÄÄSTÖPANKKI PIENYHTIÖT 128 841 1.80
10 SYRJÄNEN EVA ANNIKA ELISABETH 84 698 1.18
Dividend policy and the Board of Directors dividend proposal
The Board of Directors of Fellow Finance made a resolution on the Company's dividend policy on 31[st] of
At the end of the financial period 2019 the parent company's distributable assets were
As disclosed in the annual general meeting on
In the end of the half-year period distributable funds in shareholder's equity were
Consolidated income statement, balance sheet, cash flow statement and change in equity (FAS)
CONSOLIDATED INCOME
STATEMENT (
-
(audited) (audited)
TURNOVER 5 807.0 7 236.8 14 193.7 11 958.8
Other income 0.0 0.0 0.0 2.3
Materials and services
External services -1 397.2 -2 304.5 -4275.6 -3 788.7
Materials and services -1 397.2 -2 304.5 -4275.6 -3 788.7
total
Personnel expenses
Wages and salaries -938.8 -859.4 -2 515.8 -1 414.1
Pension expenses -145.6 -162.9 -316.4 -226.8
Other non-wage expenses -45.7 -18.4 -49.2 -40.4
Personnel expenses total -1 130.1 -1 040.7 -2 881.4 -1 681.4
Depreciation and
amortization
Depreciation according to -224.7 -180.7 -390.8 -365.5
plan
Depreciation on -10.3 -12.4 -24.8 -24.8
consolidated
goodwill
Depreciation and -235.0 -193.1 -415.6 -390.3
amortization total
Other operating costs -3 096.2 -2 324.3 -4 973.7 -2 743.5
OPERATING PROFIT/LOSS -51.7 1 374.2 1 647.4 3 357.1
Financial income and
expenses
Other interest and
financial income
From others 8.7 2.7 15.1 2.3
Interest and other
financial expenses
To others -670.1 -735.5 -1 536.0 -2 306.3
Financial income and -661.3 -732.8 -1 520.8 -2 304.0
expenses total
PROFIT/LOSS BEFORE -713.0 641.3 126.6 1 053.1
APPROPRIATIONS AND TAXES
Income taxes -13.3 -220.1 -195.7 -255.2
PROFIT/LOSS FOR THE PERIOD -726.3 421.2 -69.1 797.9
CONSOLIDATED
BALANCE SHEET
(
ASSETS
NON-CURRENT ASSETS
Intangible assets
Other capitalized 773.8 925.9 904.0 620.4
long-term
expenditure
Intangible assets 773.8 948.6 914.4 655.6
total
Tangible assets
Machinery and 122.6 177.7 148.8 191.2
equipment
Tangible assets 122.6 177.7 148.8 191.2
total
TOTAL NON-CURRENT 896.3 1 126.4 1 063.2 846.8
ASSETS
CURRENT ASSETS
Receivables
Non-current
Loan receivables 17 308.1 21 951.8 22 779.2 15 846.3
Non-current 17 308.1 21 951.8 22 779.2 15 846.3
receivables total
Current
Trade receivables 79.6 137.2 101.8 95.7
Loan recevables 7 188.1 5 775.8 5 878.1 5 411.3
Other recevables 465.7 1 023.0 1 761.8 1 156.9
Prepayments and 468.5 525.6 534.5 347.5
accrued income
Current receivables 8 201.9 7 461.5 8 276.1 7 011.3
total
Cash and cash
equivalents
Cash equivalents 0.0 0.0 0.0 0.0
Cash at banks 3 959.8 7 699.3 3 922.1 8 688.1
Cash and cash 3 959.8 7 699.3 3 922.1 8 688.1
equivalents total
TOTAL CURRENT 29 469.8 37 112.7 34 977.4 31 545.7
ASSETS
TOTAL ASSETS 30 366.1 38 239.0 36 040.6 32 392.5
CONSOLIDATED BALANCE
SHEET (
EQUITY AND LIABILITES
SHAREHOLDER'S EQUITY
Share capital 125.0 125.0 125.0 125.0
Invested unrestricted 13 360.7 13 039.4 13 360.7 13 039.4
equity reserve
Retained 996.7 1 069.5 1 077.7 563.5
earnings/loss
Profit/loss for the -726.3 421.2 -69.1 797.9
period
TOTAL SHAREHOLDER'S 13 756.0 14 655.1 14 494.2 14 525.8
EQUITY
LIABILITES
Non-current
Loans from financial 0.0 500.0 0.0 2 000.0
institutions
Bonds 11 100.0 10 899.1 11 100.0 0.0
Other liabilities 2 310.0 4 370.0 2 660.0 11 215.0
Non-current 13 410.0 15 769.1 13 760.0 13 215.0
liabilities total
Current
Loans from financial 500.0 400.0 700.0 800.0
institutions
Trade payables 175.8 413.2 383.2 275.9
Other liabilites 1 967.6 5 951.3 5 986.7 3 017.9
Accruals and deferred 556.7 1 050.3 716.5 558.0
income
Current liabilities 3 200.1 7 814.9 7 786.4 4 651.8
total
TOTAL LIABILITES 16 610.1 23 584.0 21 546.4 17 866.8
TOTAL SHAREHOLDERS' 30 366.1 38 239.0 36 040.6 32 392.5
EQUITY AND
LIABILITIES
CONSOLIDATED
CASH FLOW
STATEMENT
(
Cash flow 1.1. 1.1.
from -
operations
Profit (loss) -713.0 641.3
before
extraordinary
items
Depreciation and amortisation 235.0 193.1
according to plan
Financial income and expenses 661.3 732.8
Cash flow 183.3 1 567.3
before change
in working
capital
Change in net
working
capital
Increase (-)/decrease (+) in short 1 372.8 -85.8
-term non-interest-bearing
receivables
Increase (+)/decrease (-) in short -405.3 259.7
-term non-interest-bearing debts
Cash flow 1 150.8 1741.2
from business
operations
before
financial
items and
taxes
Interest paid and payments made for -670.1 -528.8
other financial expenditure
Interest on business operations 8.7 2.7
Direct taxes paid -35.3 -109.7
Cash flow 454.1 1 105.5
from business
operations
(A)
Cash flow
from
investments
Investments in tangible and -68.2 -460.2
intangible assets
Loans extended increase( 4 161.1 -6 470.0
-)/decrease(+)
Cash flow 4 092.9 -6 930.2
from
investments
(B)
Cash flow
from
financing
activities
Current loans increase(+)/decrease( -4 150.0 2 570.0
-)
Non-current loans -350.0 2 554.1
increase(+)/decrease(-)
Dividends paid and other 0 -285.1
distribution of profit
Translation difference -9.3 -3.0
Cash flow -4 509.3 4 835.9
from
financing
activities
(C)
Change in 37.7 -988.8
cash and cash
equivalents
Cash and cash equivalents at the 3 922.1 8 688.1
beginning of the period
Cash and cash equivalents at the end 3 959.8 7 699.3
of the period
Change in cash and cash equivalents 37.7 -988.8
Change in SH's Share Invested Retained SH's
equity capital unrestricted earnings/los EQUITY
Financial period equity reserve s TOTAL
half-year 01
-06/2020,
Start balance 125.0 13 360.7 1 008.6 14 494.3
Starting balance -2.6 -2.6
translation diff.
Dividend 0.0 0.0
Option 0.0
subscriptions
Share issue 0.0
Translation -9.3 -9.3
differences
Profit/loss for the -726.3 -726.3
period
End balance 125.0 13 360.7 270.4 13 756.1
Change in SH's Share Invested Retained SH's
equity capital unrestricted earnings/los EQUITY
Financial period equity reserve s TOTAL
half-year 01
-06/2019,
Start balance 125.0 13 039.4 1 361.4 14 525.8
Starting balance -3.8 -3.8
translation diff.
Dividend -285.1 -285.1
Option 0.0
subscriptions
Share issue 0.0
Translation -3.0 -3.0
differences
Profit/loss for the 421.2 421.2
period
End balance 125.0 13 039.4 1 490.7 14 655.1
Change in SH's Share Invested Retained SH's
equity capital unrestricted earnings/los EQUITY
Financial period equity reserve s TOTAL
2019,
Start balance 125.0 13 039.4 1 361.4 14 525.8
Starting balance -3.8 -3.8
translation diff.
Dividend -285.1 -285.1
Option 321.3 321.3
subscriptions
Share issue 0.0
Translation 5.2 5.2
differences
Profit/loss for the -69.1 -69.1
period
End balance 125.0 13 360.7 1 008.6 14 494.3
Change in SH's Share Invested Retained SH's
equity capital unrestricted earnings/los EQUITY
Financial period equity reserve s TOTAL
2018,
Start balance 125.0 2 977.5 1 073.4 4 175.9
Starting balance -0.9 0.9
translation diff.
Dividend -512 -512.0
Option 83.5 83.5
subscriptions
Share issue 9 978.4 9 978.4
Translation 3.1 3.1
differences
Profit/loss for the 797.9 797.9
period
End balance 125.0 13 039.4 1 361.5 14 527.7
The Board of Directors
Further enquiries
1Measured by the amount of financing facilitated. Source: Brismo Market Data (data accessed on 28 August 2020).
Calculation of Key Ratios
[][][][][][][][][][]
EBITDA = Operating profit + Depreciation,
amortization and impairment losses
EBITDA margin, % = Operating profit + Depreciation,
amortization and impairment losses
Turnover
Adjusted EBITDA = EBITDA + non-recurring operative
costs[1]
Adjusted EBITDA margin, % = Operating profit + non-recurring
operative costs[1]
Turnover
Adjusted operating profit (Adjusted = Operating profit + non-recurring
EBIT) operative costs[1]
Adjusted operating profit (Adjusted = Operating profit + non-recurring
EBIT) margin, % operative costs[1]
Turnover
Earnings before taxes (EBT), margin, = Profit for the year + income taxes
%
Turnover
Adjusted earnings before taxes = Profit for the year + income taxes +
(Adjusted EBT) non-recurring operative costs[1] +
non-recurring financing costs[2]
Adjusted profit for the year = Profit for the year + non-recurring
operative costs[1] + non-recurring
financing costs[2]
Equity ratio, % = Equity
Balance sheet total - prepayments
received
Return on equity (ROE), % = Profit for the year (annualised)
Equity (average)
Earnings per share (EPS), undiluted, = Profit for the year
EUR
Share split-adjusted[3] average
number of outstanding shares during
period
Adjusted earnings per share = Adjusted profit for the year
(oadjusted EPS), undiluted, EUR
Share split[3] average number of
outstanding shares during period
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