TIDMZAIM
RNS Number : 6571M
ZAIM Credit Systems PLC
23 September 2021
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23 September 2021
Zaim Credit Systems Plc
("Zaim" or the "Group")
Second quarter 2021 trading update
Another record-high quarter of loans issued
Zaim Credit Systems plc, the Russian focused fintech group,
announces a trading update from its wholly owned subsidiary,
Zaim-Express LLC, ('Zaim-Express') in respect of the second quarter
of the financial year ended 31 December 2021.
Highlights([1]) :
Fourth consecutive quarter of Strong Online Growth confirms
Zaim's transition to an Online Fintech Platform
-- Strong business growth exceeds expectations and continues to
fit within Group strategy to significantly increase market share
through focus on maximising growth and customer numbers over
profitability
-- The Group continued to trade profitably in Q2 2021, the
fourth consecutive Quarter of Profitable Growth
-- Another record-high quarter with GBP6.3m loans issued - business growth of 24% vs. Q1 2021
-- Mobile application launched in July 2021 creates a
transformational new distribution channel to complement rapidly
growing online desktop channel and existing offline stores
With Zaim's online business channel now comprising 88% of total
business volumes and continuing to be the main engine for growth,
Zaim considers that it has now successfully completed its objective
to evolve from a solely physical company to a digital lending
company.
Siro Cicconi, Zaim's CEO commented:
"I am delighted to present Zaim's fourth consecutive quarter of
strong growth driven by successful implementation of our
online-focused business strategy. In the second quarter of 2021 we
have continued to perform well and the growth in the business
remains strong with a 24% Quarter on Quarter increase in loans
issued.
Crucially important is that fact that nearly all of Zaim's
business with the exception of some flagship and legacy stores is
now generated through our online channel.
This is important as our online strategy makes our business
sustainably profitable due to a significantly lower fixed cost base
and greater scalability. Our continued investment in our
proprietary platform and process, including the launch of mobile
application, which represents an additional sales channel and a
significant growth driver of the business, makes us confident that
the online part of the business is now very well positioned to
capture further market share thus satisfying our growth objectives
and positioning the company to significantly drive shareholder
value going forward.
We look forward to updating upon our H1 2021 financial results
at the end of September followed shortly afterwards by our Q3 2021
trading update."
Second quarter 2021 trading update
The table below presents the two main KPI's (loans issued and
default rate) for the last five quarters:
Quarter Ended June-20 Sept-20 Dec-21 March-21 June-21
Loans Issued (GBP'000) 1,622 2,307 3,812 5,109 6,332
------- ------- ------ -------- -------------
Loans Issued Growth Rate
QoQ (36%) 42% 65% 34% 24%
------- ------- ------ -------- -------------
Loans Issued Online (GBP'000) 378 1,153 2,889 4,308 5,564
------- ------- ------ -------- -------------
Loans Issued Online Growth
Rate QoQ 9% 205% 151% 49% 29%
------- ------- ------ -------- -------------
Loans Issued Offline (GBP'000) 1,244 1,154 923 801 768
------- ------- ------ -------- -------------
Loans Issued Offline Growth
Rate QoQ (44%) (7%) (20%) (13%) (4%)
------- ------- ------ -------- -------------
Weighted Average Default
Rate([2]) 12.1% 15.8% 17.7% 20,8% See note([3])
------- ------- ------ -------- -------------
Notes:
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 30 June 2021
as the earliest time to determine default rates is 120 days after
the end of the period
The Group continued to see strong growth in loans issued during
the quarter with an increase of 24% QoQ, driven by growth in the
online business
The weighted average default rate increased to 20.8% in Q1 as a
result of the increase in the number of first-time customers which
inherently have statistically higher probability of defaults.
This increase in default levels is in line with the management
expectations and is a result of the strategy to maximise growth and
gain as much market share as possible. This is being diligently
managed and is caused by the rapid growth of online business and is
not due to any deterioration of business performance.
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
Investor Relations: Flowcomms Ltd
Sasha Sethi Tel: +44 (0)7891 677441
sasha@flowcomms.com
Adviser: 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").
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