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Kristaps Bergmanis

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Kristaps Bergmanis
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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 companyGroupParent companyGroup
  2014201420132013
  EUREUREUREUR
      
Net sales 7 650 3977 987 8596 395 6316 395 631
Cost of sales (5 596 572)(5 881 617)(4 678 868)(4 678 868)
Interest income and similar income     8 463 9858 640 1337 278 4367 304 487
Interest expenses and similar expenses (1 175 458)(1 216 106)(1 422 860)(1 425 319)
      
Gross profit 9 342 3529 530 2697 572 3397 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 32856 32832 37732 635
Other operating expenses (1 225 712)(1 226 186)(1 309 495)(1 312 750)
      
Profit before taxes 1 482 1931 596 968568 222578 138
      
Corporate income tax for the reporting year (263 264)(286 038)(224 730)(225 810)
Deferred tax 90 63390 63326 78826 788
      
Current year's profit 1 309 5621 401 563370 280379 116
                

Balance sheet as at 31 December 2014


 
 Parent companyGroupParent companyGroup
  31.12.2014.31.12.2014.31.12.2013.31.12.2013.
  EUREUREUREUR
Assets     
Long term investments     
Fixed assets and intangible assets 393 949393 949449 822449 822
       Loans and receivables 462 610462 610 
297 709
 
297 709
Loans to shareholders and management 1 295 0661 295 0661 942 0571 942 057
Participating interest in subsidiaries 2 846-2 846-
Deferred tax asset 117 420117 42026 78726 787
Total long-term investments: 2 271 8912 269 0452 719 2212 716 375
      
Current assets     
Finished goods and goods for sale 1 345 3381 345 3381 012 3801 012 380
Loans and receivables 5 401 3635 829 700 
4 260 989
 
4 602 466
Receivables from affiliated companies 484 492208 873547 606512 979
Other debtors 82 19582 335748 701755 229
Deferred expenses 27 76230 08925 58129 094
Cash and bank 1 197 1281 197 718720 753790 889
Total current assets: 8 538 278Go to all Announcements