September 10, 2021
DelfinGroup Plans to Grant Share Options to Employees as Part of a Long-Term Motivation Program
On September 9, 2021 the shareholders’ meeting of the Latvian financial services company AS DelfinGroup decided to issue up to 450, 000 shares as part of a long-term motivation program for the employees of the company.
A shareholder and the chairman of AS DelfinGroup Supervisory board Agris Evertovskis: "By obtaining shares in the company, employees will be able to personally step into the “shareholders’ shoes.” Similar share programs are used in many parts of Europe for attracting, motivating and retaining employees. Although still a new approach in the Latvian business environment, in the long run share option programs have the potential to become an important tool for motivating the employees to achieve the company's long-term goals. We are prepared to be an example for other companies in Latvia, and we believe that a chance of becoming co-owners of the company will positively motivate our current team and inspire other talented professionals to join DelfinGroup."
In addition to salary, the employees of AS DelfinGroup will now have the opportunity to earn as the company grows. AS DelfinGroup has established and adheres to a dividend policy to make quarterly dividend payments, distributing up to 50% of quarterly profits to shareholders. In addition, once a year after the approval of the annual report, the company may opt to pay additional dividends (annual dividends). During the course of the financial year, the company plans to distribute dividends to shareholders amounting to at least 50% of its consolidated profits. Company employees will have the option to become owners of more than 1% of the company's current shares over an extended period of time. Currently, the company share capital is 40,000,000 shares with a nominal value of EUR 0.10 each.
As a potential benefit to employees from owning shares, A. Evertovskis mentions the opportunity to participate in the development of the company as a shareholder with voting rights at shareholders' meetings, as well as gaining experience and understanding of investing in securities and capital markets in general.
This summer AS DelfinGroup published the company’s long-term financial goals for 2024. By the end of 2024, the company plans to double its consolidated net loan portfolio to over EUR 70 million. Gradually increasing its profitability, in 2024 the company plans to reach EBITDA of EUR 17.6 million, as well as pre-tax profits of EUR 12.9 million. The company's financial goals are based on the assumption that the planned IPO will attract around EUR 15 million in new capital.
In March this year, AS DelfinGroup announced plans to launch an initial public offering of shares (IPO) on Nasdaq Riga Stock Exchange Baltic Main List during the second half of 2021. The offering will be aimed for retail investors in Latvia, Estonia and Lithuania and institutional investors from countries of European Economic Area (EEA). AS DelfinGroup has retained the services of LHV Bank and the law firm Eversheds Sutherland Bitāns for organizational and legal support during the IPO process. More information about the planned IPO is available at: https://www.delfingroup.lv/invest.
About AS DelfinGroup
AS DelfinGroup is a licenced technology-based financial service company that was established in 2009 and operates under the brand names Banknote and VIZIA. The company continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), as well as sale of pre-owned goods both online and at more than 90 branches across Latvia. On average, the AS DelfinGroup team of over 250 professionals issues 35,000 loans a month. The company has a total of over 400,000 registered customers. Since 2014, AS DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer. The company regularly pays dividends to its shareholders. In 2020, the company's net loan portfolio grew to EUR 34.6 million, while its EBITDA reached EUR 9.3 million, with profits before income tax for dividends EUR 4.65 million. The company’s sustainability is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion and facilitating the circular economy. The company has been profitable every year since 2010.