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Mash Group Oyj

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Mash Group Plc reports interim unaudited financials, H1 2018 ended 30th June 2018

Mash Group reports record H1/18 revenue, up 99% from H1/17. With H1/18 lending volumes surpassing full year 2017 and a strong EBIT of EUR 5.5 million achieved, Mash Group is extremely well positioned to continue executing on its growth plan, comments CEO Hickson .

Mash continued to grow rapidly in all markets during the second quarter, achieving record lending volumes and maintaining strong momentum.

Strategic Highlights

  • Mash increases the size of its structured financing facility with funds managed by affiliates of Fortress Investment Group LLC (NYSE:FIG), from EUR 120 million to EUR 200 million.
  • Mash was recognized as one of the Fintech50 , Europe’s leading list of FinTech companies.
  • AI Global Media, award CEO Hickson ‘Most Influential FinTech CEO of the year 2018 ’.

Operational Highlights

  • Mash continued to grow rapidly in all markets during the second quarter, achieving a record Q2 2018 in terms of lending volumes (+27%) and revenues (+36%) compared to Q1 2018.
  • Registered merchants for Mash’s pay later point of sale solution grew 733% in H1 2018.
  • The number of new customers grew by 265% compared to H1 2017.
  • The group initiated lending in Spain and saw stronger than anticipated demand for Group products.

Financial Highlights

  • Lending volumes for H1/18 were 77% higher than H2/17 and 170% higher than H1/17.
  • Revenues grew by 99% year-on-year and 63% compared to H2/17 to EUR 14.7 million, while EBIT increased 134% and 266%, correspondingly, to EUR 5.5 million.
  • The Group’s solidity remains excellent, with equity increasing by 46% in 2018,  maintaining a strong equity ratio at 27%, while the total loan portfolio increased by 55%.
  • Total assets grew by 55% in 2018 and 84% year-on-year to EUR 205 million.

Values based on pro-forma consolidated figures. For equivalent FAS values see below.

James Hickson, CEO of Mash Group is pleased with the Group’s performance for the first half of 2018: “Our strong momentum has continued in the first half of 2018 thanks to the commitment of our team and partners. During the second quarter, we saw our lending volumes continue to grow as planned, being three times the level compared to the same period last year. We also saw the positive impact of our decision to move to interest-based pricing, with our revenue growing faster than our lending volumes in the second quarter compared to the first”, said Group CEO James Hickson. “This demonstrates the strong competitive position of our lending business model. We anticipate this strong growth to continue in H2 2018, supported by our new customer acquisition channels and going live in the Spanish market in Q2/18.”

“We are also very pleased with our continued focus and investment on in-store pay-later solutions, having grown our merchant base significantly this year and reached record lending volumes at point of sale. Notably, payment channels generated 40% of our new customer base in the first half of the year, underscoring the validity of our strategic decision. We continue to make investments for the long term in this acquisition channel and explore new opportunities to enhance our capability, identify new partners and expand our merchant and consumer offering”

Tommi Lindfors, Chairman of Mash Group added, “The rapid growth trajectory and financial performance during the first half shows the scalability of our business model. The Group set new records not only in terms of business growth (lending volumes and revenues) but also in terms of equity raised and new funding capabilities to support the high growth of our loan portfolio. The fact that we managed to secure EUR 25 million in equity and over EUR 100 million in funding underscores the belief from our new and existing investors in our go-forward business and strategy, which continues to be ratified by our results.””

The Group confirmed that they will communicate Q3 2018 figures on Monday 12th of November.


PRO-FORMA CONSOLIDATED FIGURES*

BALANCE SHEET (EUR '000) 30.06.18 31.12.17   30.06.17  
  Intangible assets 37 835 28 291   23 246  
  Tangible assets 175 17   13  
  Investments 5 346 0   0  
TOTAL NON-CURRENT ASSETS 43 356 28 308   23 259  
  Current receivables 140 143 90 495   74 009  
  Cash and Bank Receivables 21 615 13 179   14 456  
TOTAL CURRENT ASSETS 161 758 103 674   88 465  
TOTAL ASSETS 205 114 131 982 +55% 111 724 +84%
  Share capital and issue 93 93   93  
  Translation difference -1 443 96   -71  
  Reserve for invested non-restricted equity 51 768 33 179   26 458  
  Retained earnings 4 356 6 730   6 893  
  Profit for the Financial period 659 -2 092   -569  
TOTAL EQUITY 55 433 38 006 +46% 32 804 +69%
  Non-current Liabilities 73 852 58 514   38 959  
  Current liabilities 75 829 35 462   39 961  
TOTAL LIABILITIES 149 681 93 976   78 920  
TOTAL EQUITY & LIABILITIES 205 114 131 982   111 724  


INCOME STATEMENT   (EUR '000) H1/2018 H2/2017   H1/2017  
TURNOVER 14 717 9 026 +63% 7 383 +99%
Other operating income 8 3   11  
Materials and services -328 -296   -101  
Personnel costs -1 657 -1 312   -838  
Depreciation -1 919 -1 400   -1 037  
Other business-related costs -5 313 -4 514   -3 065  
EBIT 5 508 1 507 +266% 2 353 +134%
Financial income and expenses -4 834 -3 038   -2 909  
EBT 674 -1 531   -556  
Tax -15 8   -13  
Net Profit 659 -1 523   -569  
           
Lending volumes 78 589 44 297 +77% 29 055 +170%


INCOME STATEMENT   (EUR '000) Q2/2018 Q1/2018   Q2/2017  
TURNOVER 8 485 6 232 +36% 3 715 +128%
Other operating income 4 4   11  
Materials and services -173 -155   16  
Personnel costs -802 -855   -491  
Depreciation -1 018 -901   -530  
Other business-related costs -3 180 -2 133   -1 422  
EBIT 3 316 2 192 +51% 1 299 +155%
Financial income and expenses -2 746 -2 088   -1 703  
EBT 570 104   -404  
Tax 0 -15   -1  
Net Profit 570 89   -405  
           
Lending volumes 43 941 34 648 +27% 14 763 +198%

* The interim pro-forma consolidated figures and comparison figures have been prepared by consolidating Mash Group figures prepared in compliance with Finnish Accounting Standards ("FAS") and Pausa Capital S.à.r.l. prepared in conformity with Luxembourg legal and regulatory requirements and according to generally accepted accounting principles applicable in Luxembourg ("Lux GAAP"). The following transactions between Mash Group and Pausa Capital S.à.r.l. have been eliminated in the pro-forma consolidated figures:

  • Subordinated Notes issued by Pausa Capital S.à.r.l. and held by Mash Group
  • Variable interest recognised by Mash Group related to the Subordinated Notes
  • Servicing fees from Mash Group to Pausa Capital S.à.r.l., Mash Finance Oyj being the servicer of the funding facility.
  • Debt Collection fees charged by Mash Group to Pausa Capital S.à.r.l., Credito Cobro Oy being one of the collection agencies of the funding facility.

Pausa Capital S.à.r.l is a special purpose vehicle supporting the funding facility provided to Mash Group. According to Group Management, the pro-forma consolidated figures that include Pausa Capital S.à.r.l. provide a more comprehensive view of the financial position and performance of Mash Group, compared to FAS consolidated figures, which can be found below. These figures are unaudited. The reader is advised to refer to the 2017 annual review  and financial statements for the latest audited figures and more information about the Group.

Financial Highlights (FAS)

  • Lending volumes for H1/18 were 77% higher than H2/17 and 170% higher than H1/17.
  • Revenues grew by 112% year-on-year and 65% compared to H2/17 to EUR 12.2 million, while EBIT increased 223% and 334%, correspondingly, to EUR 3.4 million.
  • The Group’s solidity remains excellent, with equity increasing by 46% in 2018,  maintaining a strong equity ratio at 38%, while the total loan portfolio increased by 40%.
  • Total assets grew by 47% in 2018 and 70% year-on-year to EUR 144 million.


FAS CONSOLIDATED FIGURES

BALANCE SHEET (EUR '000) 30.06.18 31.12.17   30.06.17  
  Intangible assets 37 835 28 291   23 246  
  Tangible assets 175 17   13  
  Investments 5 346 0   0  
TOTAL NON-CURRENT ASSETS 43 356 28 308   23 259  
  Current receivables 85 625 61 015   51 159  
  Cash and Bank Receivables 14 989 8 556   10 165  
TOTAL CURRENT ASSETS 100 614 69 571   61 324  
TOTAL ASSETS 143 970 97 879 +47% 84 583 +70%
  Share capital and issue 80 80   80  
  Translation difference -1 442 96   -71  
  Reserve for invested non-restricted equity 51 768 33 179   26 458  
  Retained earnings 4 356 6 730   6 893  
  Profit for the Financial period 659 -2 092   -569  
TOTAL EQUITY 55 421 37 993 +46% 32 791 +69%
  Non-current Liabilities 17 005 26 550   13 525  
  Current liabilities 71 544 33 336   38 267  
TOTAL LIABILITIES 88 549 59 886   51 792  
TOTAL EQUITY & LIABILITIES 143 970 97 879   84 583  


INCOME STATEMENT   (EUR '000) H1/2018 H2/2017   H1/2017  
TURNOVER 12 246 7 422 +65% 5 763 +112%
Other operating income 8 3   11  
Materials and services -328 -296   -101  
Personnel costs -1 657 -1 312   -838  
Depreciation -1 919 -1 400   -1 037  
Other business-related costs -4 908 -3 624   -2 731  
EBIT 3 442 793 +334% 1 067 +223%
Financial income and expenses -2 773 -2 323   -1 627  
EBT 669 -1 530   -560  
Tax -10 7   -9  
Net Profit 659 -1 523   -569  


INCOME STATEMENT   (EUR '000) Q2/2018 Q1/2018   Q2/2017  
TURNOVER 7 213 5 033 +43% 2 936 +146%
Other operating income 4 4   11  
Materials and services -173 -155   16  
Personnel costs -801 -856   -491  
Depreciation -1 018 -901   -530  
Other business-related costs -2 936 -1 972   -1 338  
EBIT 2 289 1 153 +98% 604 +279%
Financial income and expenses -1 719 -1 054   -1 008  
EBT 570 99   -404  
Tax 0 -10   -1  
Net Profit 570 89 +540% -405  


For more information please contact:
Jonas Lindholm
Mash Group Plc
Tel +358 10 217 1003
investor@mash.com
press@mash.com


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