Annual Report and Accounts 2006 - Chairman's Statement
CHAIRMAN’S STATEMENT
Maiden Results for the period 18 December to 31 December 2006
Introduction
Mobile Credit Baltic Plc (AIM: MCRB.L), the provider of immediate, short-term credit to consumers in the growing markets of Estonia, Latvia, Lithuania and Finland, floated on the AIM market of the London Stock Exchange on 16 January 2007, raising £3.8 million.
The Company today announces its maiden financial results for 2006. Since the Company was incorporated on 18 December 2006, these results relate to the 14 day period between 18 December and 31 December 2006.
Business overview
Mobile Credit Baltic is a consumer finance business providing fast, convenient, easily understood and flexible credit solutions to retail customers in Finland and the rapidly growing Baltic countries of Estonia, Latvia and Lithuania (the Fenno-Baltic Region). The Company currently offers unsecured short-term loans of between €100 and €800, with maturities between two weeks and three months, under its Credit24-branded websites in Estonia, Finland and Lithuania. As highlighted in the Admission Document, operations will commence in Latvia during Spring 2007.
The intention of the Company is to become a leading unsecured credit provider in the Fenno-Baltic Region. The Company differentiates itself principally through the Credit24 brand which is associated with transparent terms, ease of access and use, high quality service and the building of long term customer relationships. The Company promotes Credit24 through innovative marketing strategies designed to cost-effectively reach a large number of potential customers. The Company maintains an ongoing relationship with its customers to maximise repeat business and reduce customer acquisition costs.
The target markets of Finland, Estonia, Latvia and Lithuania are particularly well suited to the Credit24 brand and business model. They have relatively low yet fast growing levels of unsecured consumer credit, favourable business environments and are part of the European Union. Macroeconomic conditions in the Baltics are favourable with economic growth rates ranging from 7.5 per cent. to 10.5 per cent per annum. Much of the GDP growth is driven by increased domestic consumption, which we believe helps drive the consumer credit market.
Operational update
The Company was incorporated on 18 December 2006 as part of the pre-IPO restructuring of the Group. Shortly thereafter it acquired Mobile Credit Baltic AS and its subsidiary undertakings (together “the Group”).
On 16 January 2007, the Company floated on the AIM market of the London Stock Exchange, raising £3.8 million. The proceeds from the flotation are being used to grow the business throughout its target market. The flotation has also raised the profile of the Company, and supports its reputation as a quality, transparent provider of financial solutions to consumers in the Fenno-Baltic region.
