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)30.06.1831.12.17 30.06.17 
  Intangible assets37 83528 291 23 246 
  Tangible assets17517 13 
  Investments5 3460 0 
TOTAL NON-CURRENT ASSETS43 35628 308 23 259 
  Current receivables140 14390 495 74 009 
  Cash and Bank Receivables21 61513 179 14 456 
TOTAL CURRENT ASSETS161 758103 674 88 465 
TOTAL ASSETS205 114131 982+55%111 724+84%
  Share capital and issue9393 93 
  Translation difference-1 44396 -71 
  Reserve for invested non-restricted equity51 76833 179 26 458 
  Retained earnings4 3566 730 6 893 
  Profit for the Financial period659-2 092 -569 
TOTAL EQUITY55 43338 006+46%32 804+69%
  Non-current Liabilities73 85258 514 38 959 
  Current liabilities75 82935 462 39 961 
TOTAL LIABILITIES149 68193 976 78 920 
TOTAL EQUITY & LIABILITIES205 114131 982 111 724 


INCOME STATEMENT  (EUR '000)H1/2018H2/2017 H1/2017 
TURNOVER14 7179 026+63%7 383+99%
Other operating income83 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 
EBIT5 5081 507+266%2 353+134%
Financial income and expenses-4 834-3 038 -2 909 
EBT674-1 531 -556 
Tax-158 -13 
Net Profit659-1 523 -569 
      
Lending volumes78 58944 297+77%29 055+170%


INCOME STATEMENT  (EUR '000)Q2/2018Q1/2018 Q2/2017 
TURNOVER8 4856 232+36%3 715+128%
Other operating income44 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 
EBIT3 3162 192+51%1 299+155%
Financial income and expenses-2 746-2 088 -1 703 
EBT570104 -404 
Tax0-15 -1 
Net Profit57089 -405 
      
Lending volumes43 94134 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)30.06.1831.12.17 30.06.17 
  Intangible assets37 83528 291 23 246 
  Tangible assets17517 13 
  Investments5 3460 0 
TOTAL NON-CURRENT ASSETS43 35628 308 23 259 
  Current receivables85 62561 015 51 159 
  Cash and Bank Receivables14 9898 556 10 165 
TOTAL CURRENT ASSETS100 61469 571 61 324 
TOTAL ASSETS143 97097 879+47%84 583+70%
  Share capital and issue8080 80 
  Translation difference-1 44296 -71 
  Reserve for invested non-restricted equity51 76833 179 26 458 
  Retained earnings4 3566 730 6 893 
  Profit for the Financial period659-2 092 -569 
TOTAL EQUITY55 42137 993+46%32 791+69%
  Non-current Liabilities17 00526 550 13 525 
  Current liabilities71 54433 336 38 267 
TOTAL LIABILITIES88 54959 886 51 792 
TOTAL EQUITY & LIABILITIES143 97097 879 84 583 


INCOME STATEMENT  (EUR '000)H1/2018H2/2017 H1/2017 
TURNOVER12 2467 422+65%5 763+112%
Other operating income83 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 
EBIT3 442793+334%1 067+223%
Financial income and expenses-2 773-2 323 -1 627 
EBT669-1 530 -560 
Tax-107 -9 
Net Profit659-1 523 -569 


INCOME STATEMENT  (EUR '000)Q2/2018Q1/2018 Q2/2017 
TURNOVER7 2135 033+43%2 936+146%
Other operating income44 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 
EBIT2 2891 153+98%604+279%
Financial income and expenses-1 719-1 054 -1 008 
EBT57099 -404 
Tax0-10 -1 
Net Profit57089+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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