Consumer-credit Company - Credissimo has been listed on the BSE (07.05.2014)


The consumer-credit company Credissimo AD began trading today on the BSE. It became the first non-banking financial institution on the BSE. The owners offered a small package of shares with the potential to increase the offer should interest be high.

The purpose of the listing is not to increase capital, but a first step towards the search of a strategic partner, which is part of a 3-year expansion strategy. The idea of the managers is to achieve a global reach, while pursuing a 3-digit growth in the next several years.

The issue is BGN 2.5m and the shares have a nominal value of BGN 1.00. The stock code is 17C and the specified by the applicant opening price for the first trading session is BGN 8.02 per share. By 13:00pm there had not been a single deal on the BSE.

Credissimo AD was created in 2007 and operates under the Credissimo brand. The company offers short-term credits. It has a license from the Bulgarian National Bank and is listed as a financial institution in the Commercial Register.

The company offers its products and generates 100% of its revenues in Bulgaria. It's the 5th largest consumer credit company. By the end of 2013, Credissimo had 40 employees.

Executive directors are Konstantin Krusten and Sokol Yankov. Board of directors are Lubimka Diulgerova, Kosta Kunchev, Asen Benev and Georgi Karpuzov. The main shareholders are Kosta Kunchev and Sokol Yankov with 30.83% each, Asen Benev (21.67%) and Advenkos EOOD (16.67%), owned entirely by Konstantin Krustev.

“We are being listed on the exchange in 2014, during a difficult for the industry moment. It is important that we prove to be transparent and responsible, because this industry is based on social responsibility and trust.” said the company’s CEO Konstantin Krustev.

Regulations regarding consumer credits

“The regulations won’t affect our business in a negative way.” said Mr. Krustev
“The high demand for such credits is a reason for our rapid growth since our inception. Therefore, we are expecting 3-digit growth in the next several years.” he added.

Mr. Krustev further explained that they are actively seeking ways to expand into new markets but did not give any more details. “The vision and business model of the company are created so that we reach our goals.”
“There is no decrease in customers after the regulations. From the statistics of BNB it is evident that this sector is not growing with a fast pace. For 2013, Credissimo achieved a 70% growth and it has continued to grow quickly during the first months of 2014. Bad debts amount to 16% which is below the industry average of 31%.”
“We welcome the regulations. The unethical companies must exit the market” said Krustev. He also pointed out that the share offering is the first step of a 3-year expansion strategy.

For the period 2010-2012 the company did not pay dividend, because it continuously reinvests its earnings into credit portfolio expansion. Krustev confirmed that the company would continue to reinvest its earnings.

Financial Results

According to the financial data as at September 2013, the company loaned BGN 9m. The net profit is over BGN 1.9m which is20.9% higher than the previous year. For the period 2010-2012 the financial result on average increased by 463.3%.

For the same period, the net profit of Credissimo had a rapid growth and increasing margins mainly due to the low growth in operating expenses. The company used innovative technological solutions, whose business application reduced operating expenses and allowed for better use of economies of scale.

By the end of the 3rd quarter last year, the total assets of the company were BGN 9.4m, which is 63.7% higher than the previous year. The consumer credit portfolio grew by 109.4% to BGN 8.8m Total assets grew from BGN 1.8m in 2010 to BGN 6.3m in 2012, which is an average yearly growth of 86%. The provided consumer credits represent 81% of total assets for 2012 and grew by 78.5% on average for 2010-2012, reaching BGN 5.1m in 2012.

Total liabilities for 2013 were BGN 4.8m, which is a 52.7% growth from the previous year. The borrowed funds (short and long-term) were BGN 2.5m - 21.1% higher than last year. Financial revenue for future periods grew by 110.5% to BGN 2.1m.
The attracted funds for 2010-2012 grew by 66.3% reaching BGN 2m by the end of 2012. The short-term portion is BGN 0.5m or 23.1%.


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