TIDMZAIM
RNS Number : 7845N
ZAIM Credit Systems PLC
03 February 2021
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securities laws of such jurisdiction
For Immediate Release
3 February 2021
Zaim Credit Systems Plc
("Zaim" or the "Group")
Fourth quarter and full year 2020 trading update
Zaim Credit Systems plc (the 'Group' or 'Zaim'), the Russian
focused fintech group, announces a post period end trading update
from its wholly owned subsidiary, Zaim-Express LLC,
('Zaim-Express') in respect of the fourth quarter and the full year
ended 31 Dec 2020.
Fourth Quarter 2020 Highlights ([1]) :
-- Very strong quarterly performance with impressive growth in
loans issued to GBP3.8m, an increase of 65% compared to Q3:
GBP2.3m
-- Loans issued online grew by 250% during the quarter to GBP2.9m
-- Online now at substantial and sustainable levels comprising
76% of business and continues to be the main engine for growth
-- The Group continued to trade profitably in Q4 2020
Full Year 2020 Highlights:
-- Successful transition from offline to online focused business
model with a lower fixed costs base and greater flexibility
-- Increase in loans issued to GBP10.3m representing growth of
11% vs. 2019 despite the Covid-19 lockdown and the number of
physical stores being significantly reduced during the year
-- Growth of loans issued online to GBP4.8m (2019: GBP0.3m)
-- Decrease in loans issued offline to GBP5.5m (2019: GBP9.0m)
due to closure of stores and transition to online-focused business
model
-- Increase in weighted average default rate for the first nine
months of 2020 to 14.1% (2019: 7.6%) in line with management
expectations due to greater portion of first-time clients. This is
a direct result of the rapid growth of the online business.
Siro Cicconi, Zaim's CEO commented:
"Last year posed a serious challenge for all of us and I am
pleased to report that it became a turning point in Zaim's
transition towards a predominantly online business model. The
lockdown measures taken by governments and the world-wide migration
to online services accelerated this change. The board and
management acted swiftly and decisively by putting the majority of
the resources of the group into development of online business
which is now beginning to bear fruit.
As a result of these efforts, loans issued online grew at an
impressive rate during the year, from a near standing start to
GBP2.9m in Q4 and now accounting for 76% of the Group's business.
This part of the business is now very well positioned for future
growth.
I am also pleased to note that the business continues to be
cash-generative, which we are reinvesting in order to accelerate
further growth of our online business. Our online-focused strategy
allows for lower fixed costs and faster growth that makes us
confident in the long-term development of our business. Our
investment in our proprietary platform and process is delivering
impressive results and we will be very focused on continuing to
drive growth during 2021.
I would like to thank the whole team for their dedication and
look forward to this positive trend continuing over the coming
months."
Fourth quarter 2020 trading update
The table below presents the two main KPI's (loans issued and
default rate) for the last five quarters:
Quarter Ended Dec-19 March-20 June-20 Sept-20 Dec-20
Loans Issued (GBP'000) GBP2,284 GBP2,549 GBP1,622 GBP2,307 GBP 3 ,
812
--------- -------- -------- -------- -----------
Weighted Average Default
Rate(2) 8.1% 13.6% 12.1% 15.8% See note(3)
--------- -------- -------- -------- -----------
The Group continued to see strong growth in loans issued during
the quarter up 65% QoQ, driven by expansion of the online
platform.
The weighted average default rate increased slightly to 15.8% in
Q3 as a result of the increase in the share of first-time customers
that have higher levels of default. This is in line with the
management expectations, is being diligently managed and is caused
by the rapid growth of online business and is not due to any
deterioration of business performance.
Composition of the loan book
Loans issued in each of the months of the fourth quarter of 2020
are set out in the following table:
Period Loans Issued Monthly Growth Loans Issued Loans Issued Monthly Growth
Online rate Offline Total rate
GBP'000 % GBP'000 GBP'000 %
October 694 32 . 1% 324 1 , 019 14 . 1%
------------- -------------- ------------- ------------- --------------
November 860 23 . 9% 306 1 , 166 14 . 5%
------------- -------------- ------------- ------------- --------------
December 1 , 334 55 . 1% 293 1 , 628 39 . 5%
------------- -------------- ------------- ------------- --------------
Total Third Quarter 2 , 889 923 3 , 812
------------- -------------- ------------- ------------- --------------
Loans issued for the financial year:
Full Year Ended Dec 20 Dec 19 Change
1 , 435 .
Loans Issued Online GBP 4 .8m GBP0.3m 8%
------------ ----------- ----------
( 38 . 7%
Loans Issued Offline GBP 5 .5m GBP 9.0 m )
------------ -----------
Total Loans Issued GBP 10.3 m GBP 9.3 m 10 . 5%
------------ -----------
The Company looks forward to releasing its audit annual accounts
for the year-ended 31 December 2020 in due course.
*Ends*
Follow us on Twitter - @ZaimcreditSyst
Enquiries:
Zaim Credit Systems Plc
Simon Retter
Siro Cicconi Tel: +44 (0) 73 9377 9849
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
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
(1) All figures presented throughout this announcement represent
unaudited management information taken from the internally
generated management accounts of Zaim-Express LLC
(2) Default rate is defined as no payment received after 120
days of the origination of the loan
(3) Data is not yet available for the quarter ended 31 December
20 20 as the earliest time to determine default rates is 120 days
after the end of the period
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