Capitalia audited annual report, 2016 Riga, 2017-04-28

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News Desk 2018
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Capitalia audited annual report, 2016

Riga, 2017-04-28 17:19 CEST (GLOBE NEWSWIRE) -- Key indicators for the financial year:

  • Turnover grew by 61% and reached EUR 946th;
  • Share capital increased to EUR 500th;
  • Successful entry in Estonian market with 63 clients by the end of the year;
  • Further bond issues made in 2016 and 2017 for the total volume of EUR 1,725th.

On operating results

Year 2016 for Capitalia group (further “Capitalia”) has been growth focused period. We have entered Estonian market, as well as significantly increased our capacity in loan evaluation and servicing. In 2016 Capitalia’s revenues increased to EUR 946th – a growth of 61% over the previous year. Company reported small losses of EUR 11 thousands. The net financial results were foreseen and are result of establishing operations in Estonia as well as investing in building up company for growth in the future (new employee hires, marketing developments and IT investments). As part of building up the company we also boosted the balance sheet by increasing the share capital to EUR 500,000 as well as organizing a new closed bond issue for the total amount of EUR 500,000. This allowed us to boost the balance sheet to EUR 4m, growing 52% compared to the total assets in 2015.  

On new markets

From 2016 Capitalia can start calling itself a truly pan-Baltic company with operations and employees in all the three countries. At the end of the year our office in Estonia employed 2 loan managers that already serviced 63 active clients in this country. Our loan book in Estonia is still significantly smaller than in Latvia and Lithuania, hence our focus in 2017 will be on expansion in this geography with a target to double our client number during the year. Capitalia does not expect to enter any new markets during 2017, focusing instead our full attention to the growth in the Baltic States.  

On future plans

In 2017 our focus will be to ensure proftiability with the target net margin of 10%. With regards to new product development, we are planning to launch our own crowd-funding platform in the first half of year 2017. The platform will be aimed for businesses that want to attract mezzanine loan financing in the amount from EUR 100,000 to EUR 1,000,000. We feel that there is a large gap in this investment range that is not fully addressed nor by local private investors, nor banks or venture capital/private equity funds. Capitalia will co-invest in each of the projects offered through the platform as well as will manage the crowd-financed loans on behalf of the pool of investors.

On Capitalia

Capitalia is the largest non-bank lender to small and medium enterprises in Latvia, Lithuania and Estonia. To date Capitalia has financed working capital and investment needs of more than 1000 companies investing over EUR 20 million in growth of these businesses.

         Juris Grišins          Manager          Email: juris.grisins@capitalia.com          Phone: +371 2880 0880          www.capitaliafinance.com

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