2nd May 2018 - Mash Group Plc today announced audited consolidated results for the twelve months ending 31 December 2017.
Strategic highlights
- The Group significantly strengthened its management team hiring a new CEO, COO, CFO, CMO, Chief Sales Officer and Head of Business Development.
- The Group expanded its market opportunity with strategic partnerships including a pan European deal with Verifone to provide pay later solutions at point of sale.
- In preparation for continued growth, the group invested in people growing by over 40 new hires
- The Group established a presence in Spain.
- The Group repositioned itself under a new brand, Mash, for which it secured a pan-European trademark.
Operational Highlights
- The number of new customers in 2017 grew by 114% compared to 2016.
- Full year lending volume grew 38% compared to 2016, driven by H2 activities.
- Q3 and Q4 revenues were the best in the Groups 10 year history, with Q4 lending volumes up by 91% compared to 2016.
- Today the groups average monthly volumes are 2.5x compared to Q1 2017 and 3X compared to Q1 2016.
Financial Highlights
- Recurring revenue increased by 26% to EUR 13.2 million compared to 2016 (excluding one-time events).
- Financial strength remains solid, with equity increasing by 34% to EUR 38 million.
- Investments into loan book, market growth and systems grew the Groups balance sheet by 63% to EUR 98 million.
- The group raised EUR 12 million of new equity and EUR 22 million of new long-term debt to fuel the Groups growth trajectory.
- The group reports a net loss of EUR 2.1 million, driven by planned investment to differentiate the Group's services and lay the foundation of sustainable medium to long-term value creation.
"2017 was a remarkable and transformational year for Mash", said James Hickson, Group CEO of Mash.
"It not only positioned us for sustainable growth but also saw us advance our business significantly. We made investments in people, investing in our technology platform, improving our product and business model (shifting from fees to interest based pricing) and working more closely with our partners and affiliates. The Board supported the view to invest in differentiating our services, laying the foundation for sustainable medium- to long-term value creation. While we report a net loss of EUR 2.1 million in 2017, we strengthened our equity position to the strongest in our history. We believe, that the results the Group generated in H2 2017, demonstrate that this was the right decision for our business and our investors."
Hickson concluded, "We still have much more work to do. We have bigger and bolder goals yet to accomplish. The story of Mash is still being written, but 2017 was a transformative year in our company's history. None of this would be possible without our employees, partners and shareholders. In particular, I want to thank our employees and partners who worked tirelessly to impress our customers and without whom success is simply not possible. We greatly appreciate your support and look forward to continuing to build on our strong foundation in the years ahead"
Group Chairman Tommi Lindfors reflects on the past year: "I have often said that Mash achieves more in a quarter than most companies manage to do in a whole year. 2017 was a prime example of that. We managed to strengthen our equity with close to EUR 10 million (an increase of 34%), secure additional long-term funding, significantly improve our business model, rebrand our business, move into new markets and segments and at the same time grow our operations radically. This was done while completely renewing the executive management team, adding 40 new personnel and negotiating the biggest business deals in the Group's history. This is truly a testament of the strength of our people. It takes a very special team to pull that off and I am, again, awed by our great team."
Key Figures
| 2017 | 2016 | Growth | ||||
| Balance Sheet (million EUR) | 97.9 | 60.1 | 63 | % | ||
| Recurring Revenue (million EUR) | 13.2 | 10.5 | 26 | % | ||
| EBIT (million EUR) | 1.9 | 7.9 | ||||
| Net profit (million EUR) | -2.1 | 4.2 | ||||
| Equity (million EUR) | 38.0 | 28.4 | 34 | % | ||
| Equity ratio | 39 | % | 47 | % | ||
| Lending volumes | 73 | 53 | 38 | % | ||
| Lending volumes Q4 | 26.4 | 13.9 | 91 | % | ||
| New customers | 38.500 | 18.000 | 114 | % | ||
Financial Statement
| BALANCE SHEET | 2017 | 2016 |
| ASSETS | ||
| NON-CURRENT ASSETS | ||
| Intangible assets | 28 290 829 | 18 576 721 |
| Tangible assets and investments | 17 266 | 11 084 |
| TOTAL NON-CURRENT ASSETS | 28 308 094 | 18 587 806 |
| CURRENT ASSETS | ||
| Current Receivables | 61 015 416 | 38 520 749 |
| Cash and Bank Receivables | 8 555 895 | 2 968 947 |
| TOTAL CURRENT ASSETS | 69 571 311 | 41 489 696 |
| TOTAL ASSETS | 97 879 406 | 60 077 502 |
| EQUITY & LIABILITIES | ||
| EQUITY | ||
| Share capital and issue | 80 000 | 80 000 |
| Translation difference | 96 287 | -192 468 |
| Reserve for invested non-restricted equity | 33 179 019 | 21 463 289 |
| Retained earnings | 6 730 119 | 2 754 817 |
| Profit for the Financial period | -2 092 199 | 4 245 434 |
| TOTAL EQUITY | 37 993 227 | 28 351 072 |
| LIABILITIES | ||
| Non-current Liabilities | 26 550 000 | 4 284 750 |
| Current Liabilities | 33 336 179 | 27 441 679 |
| TOTAL LIABILITIES | 59 886 179 | 31 726 429 |
| TOTAL EQUITY & LIABILITIES | 97 879 406 | 60 077 502 |
| INCOME STATEMENT | 2017 | 2 016 |
| RECURRING TURNOVER | 13 184 886 | 10 492 915 |
| TURNOVER | 13 184 886 | 16 117 070 |
| Other operating income | 13 674 | 4 882 |
| Materials and services | -396 833 | -661 191 |
| Personnel costs | -2 150 691 | -1 099 935 |
| Depreciation | -2 437 059 | -1 410 867 |
| Other business-related costs | -6 353 713 | -5 014 305 |
| EBIT | 1 860 264 | 7 935 655 |
| Financial income and expenses | -3 951 019 | -2 358 214 |
| EBT | -2 090 755 | 5 577 441 |
| Tax | -1 444 | -1 332 006 |
| Net Profit | -2 092 199 | 4 245 434 |
For more information please see the Annual Review 2017.
OUTLOOK FOR 2018
The Board of Directors estimates that the operating environment will continue to change gradually in all its markets, with some new regulation affecting lending expected during 2018 or later. The Group has prepared well for the upcoming General Data Protection Regulation (GDPR) which will have some effect on the Group's business, policies and processes. The other regulatory changes are expected to have marginal effects. Mash aims to achieve sustainable growth within the current product categories in its home markets, and develop its new markets. The outlook regarding turnover and total balance sheet for the financial year is that there will be significant growth compared to the previous year.
About Mash
Mash has been at the forefront of FinTech innovation since 2007. We leverage our advanced proprietary algorithms, machine learning capabilities, and automated platform to deliver superior finance and payments solutions to thousands of customers every day. We work hard for a future powered by technology, making every transaction seamless, flexible and worry-free. Today, Mash is one of Europe's leading FinTech companies.
Mash.com | press@mash.com | investor@mash.com | @MashComOfficial
For more information please contact:
Jonas Lindholm
Mash Group Plc
Tel +358 10 217 1003
investor@mash.com
press@mash.com
Attachments
- Mash a Mall Helsinki (https://prlibrary-eu.nasdaq.com/Resource/Download/bec45891-7d9f-4fc5-858a-d78bb4363166)
- Tommi Lindfors (https://prlibrary-eu.nasdaq.com/Resource/Download/561fdba7-c336-49ed-aae8-ea3f85a4cb36)
- Mash dino at Eco Beauty wellness (https://prlibrary-eu.nasdaq.com/Resource/Download/a34e1906-1ed4-4841-89fc-aa73ab6a7985)
- James Hickson (https://prlibrary-eu.nasdaq.com/Resource/Download/77aad7fb-b50f-4747-a405-161716e1762c)
- Pay with Mash hanging sign at cashier (https://prlibrary-eu.nasdaq.com/Resource/Download/8a5e4d9b-b9c5-47f5-ac7e-173048fd978a)
- MashAnnualReview2017 (https://prlibrary-eu.nasdaq.com/Resource/Download/50aaab64-e550-4893-846e-67bc64cca97f)
