ZAIM Credit Systems PLC Year-end trading update (9318A)
27 1월 2020 - 4:00PM
UK Regulatory
TIDMZAIM
RNS Number : 9318A
ZAIM Credit Systems PLC
27 January 2020
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For Immediate Release
27 January 2020
Zaim Credit Systems Plc
("Zaim" or the "Group")
Year-end trading update
Zaim Credit Systems plc (the 'Group' or 'Zaim'), the Russian
focussed fintech group providing financial inclusion for those
consumers who are not well served by mainstream lenders, is pleased
to announce a post period end trading update from its wholly owned
subsidiary, Zaim-Express LLC, ('Zaim-Express') in respect of 2019.
Whilst it is too soon to provide the figures the Company expects to
report for 2019, the Company presents below certain key metrics for
Zaim-Express that give an indication of trading during the period
and the current market opportunities.
Year-end trading update
Zaim was admitted to trading on the Official List (by way of a
Standard Listing under Chapter 14 of the Listing Rules) on 4
November 2019 (the "IPO") and, in conjunction with this included in
the Prospectus dated 30 October 2019 (the "Prospectus") unaudited
interims to 30 June 2019. Generally, trading during 2019 was
hampered by the lack of available liquidity due to the
restructuring of the historic bonds and IPO taking place later in
the year than expected. Despite the lack of liquidity and
relatively small value of the loan book (GBP630k as at 30 June
2019) the business performed well and in line with management and
the market expectations. The defaults rates have seen a steady
improvement since the beginning of 2019 as a result of continual
technical improvements being implemented to the credit scoring
system.
2019 represented a year of considerable changes within the
business with the recapitalisation of the group into an equity
funded Group, the successful IPO as well as the improvements in the
credit scoring system. In light of these changes the Group intends
to report the amount funded and the weighted average default rate
on a quarterly basis as its principal KPI's going forward. The
Board believes these are key metrics for monitoring the performance
of the business and presents these in the table below for the first
three quarters of 2019, with data in respect of the latter for the
final quarter of 2019 expected to become available after the end of
Q1 2020:
Quarter Ended Mar 19 Jun 19 Sept 19 Dec 19
Amount Funded (GBP'000) GBP2,322 GBP2,226 GBP2,196 GBP2,284
--------- --------- --------- ---------
Weighted Average Default
Rate 9.0% 7.5% 5.6% See note
--------- --------- --------- ---------
Current market
The current demand the Group is experiencing is highly
encouraging, with lending levels growing consistently. It is the
expectation of management that with the existing and continued
growth in demand for loans, there is ample opportunity to deploy in
full the Group's available capital without compromising any of its
lending criteria and still improving on it credit scoring and
defaults rates.
Increase of loan book
The Group has commenced its strategy set out in the Prospectus
to increase the loan book by GBP1.2m, representing an increase of
the loan book of nearly 200% compared to 30 June 2019. This
increase is being expected to be deployed over a period of 6 - 12
months in line with demand and changing dynamics of the customer
base. Due care is being taken not to increase the loan book too
rapidly to compromise the quality of customers and to ensure the
default rates are not adversely affected.
Amounts funded in each of months of the final quarter of 2019
are set out in the following table:
Period Amount Issued Amount Issued Amount Issued
Online Offline Total
Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000
October GBP18 GBP703 GBP721
-------------- -------------- --------------
November GBP31 GBP694 GBP725
-------------- -------------- --------------
December GBP77 GBP761 GBP838
-------------- -------------- --------------
Total Quarter GBP126 GBP2,158 GBP2,284
4
-------------- -------------- --------------
Following the IPO of Zaim in early November there was a period
of implementation before the newly adopted strategy of increasing
the loan book commenced during December, which exhibited an
increase of GBP113k compared to November.
Online Business
Historically Zaim-Express has been focussed entirely on its
existing store infrastructure, but as set out in the Prospectus,
the Group is now able to lend to online only customers without the
requirement to physically undertake KYC and AML procedures in
store. This has enabled Zaim-Express to commence online lending as
of the latter part of 2019. The growth in the online loan demand
has been very strong with the amounts funding growing from GBP18k
in October to GBP77k in December (an increase of 427%), with little
marketing expenditure or cost of acquiring new business. The Group
looks forward to expanding its online offering but will remain
vigilant in monitoring the strategy and results closely as it is
newly implemented. The early signs of the online offering are far
better than management's expectations and are deemed to be very
encouraging.
As a whole the performance of the loan book since the date of
the IPO has been in line with management expectations and as such
the Group plans to continue to increase the amount funded over the
coming months.
Renewal of Noah's Ark Loan facility
Zaim-Express LLC has successfully renewed the loan facility it
holds with Noah's Ark 500 until 31 December 2020. The loan facility
was originally entered into in May 2019 and was due to expire on 31
December 2019 unless an extension was requested by Zaim-Express
LLC. There is currently nothing drawn down on the loan facility
which has a limit of 30 million Roubles (approx. GBP365k). This
facility will be maintained should the Group require additional
liquidity over and above its current cash resources and expected
loan book.
Outlook
The Group remains confident of its prospects and remains
optimistic as to the current opportunity to significantly increase
its lending volumes. This increase in lending volumes, combined
with improvements in the credit scoring systems already in
operation, mean the Group expects a material improvement in
financial performance during 2020.
Zaim-Express plans to continue reinvesting net free cashflow
generated into increasing the loan book further.
Timing of Year-end results
It is the intention of the Group to releases its audited results
for the year ended 31 December 2019 during April 2020.
Siro Cicconi, CEO commented: "I am delighted to report on the
first positive trading update since our IPO on 4 November. Zaim is
at an exciting junction, with a rapidly growing market, sector
consolidation due to the tightening of regulatory requirements,
which ZAIM is already fully compliant with, as well as the new
ability to execute entirely online with no requirements for store
visits. I would like to thank the whole team who executed the IPO
and welcome our new shareholders to what has already been a
positive end to 2019 and start to 2020".
Enquiries:
Zaim Credit Systems Plc
Simon Retter Tel: +44 (0) 73 9377 9849
Siro Cicconi
Alex Boreyko Tel: +7 925 708 98 16
investors@zaimcreditsystemsplc.com
Beaumont Cornish Limited
Roland Cornish / James Biddle Tel: +44 (0) 20 7628 3396
Optiva Securities Limited
Jeremy King / Vishal Balasingham Tel: +44 (0) 20 3137 1902
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END
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