Annual Report and Accounts 2008 - CHAIRMAN'S STATEMENT
MCB Finance Group Plc
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CHAIRMAN'S STATEMENT Results for the 12 months ended 31 December 2008 Introduction MCB Finance Group plc (AIM: MCRB.L) (the "Company" or "MCB"), the consumer finance company providing flexible credit solutions to retail customers in Finland, Estonia, Latvia and Lithuania, presents its financial results for the year ended 31 December 2008. Operating and financial highlights
• First adjusted pre-tax profit of €0.48 million, in line with expectations (2007 pre-tax loss: €2.62 million)
• Increase in principal lent from €24m to €56m
• Revenue increased by 230% to €13.05m (2007: €3.95m)
• Extension of bank financing facility
• Credit loss provisions remain stable at 31 % of revenue (2007: 35% of revenue) notwithstanding deteriorating economic conditions
Business overview
MCB Finance Group is a consumer finance company providing fast, convenient, easily understood and flexible credit solutions under the Credit24 brand to retail customers in Finland and the Baltic countries of Estonia, Latvia and Lithuania. In its markets the Company is a leading participant in the non-standard segment of the consumer credit market, providing small-denomination, unsecured loans of between €100 and €2,000 to qualifying customers, with maturities ranging from one month to two years. Loan products are designed to suit customers' needs with simple and transparent terms and flexible repayment schedules. The Company operates in a segment of the market that is typically under-served by larger financial institutions. Loans are offered online through the Company's Credit24-branded websites in Estonia, Finland, Lithuania and Latvia, as well as through certain distribution partners in the Baltic countries.
Operational update
MCB has continued to evolve and made significant progress during 2008, its second full year of operations. During the year the Company expanded its product range, further improved distribution capabilities and continued to improve its ability to serve a rapidly growing customer base. Having launched its operations in late 2006, MCB reached run-rate profitability in the second quarter of 2008 and further improved financial performance during the second half. As a result, the Company achieved full-year profitability for 2008. Lending volumes more than doubled during the year while credit quality remained stable. MCB is now a leading non-standard lender in each of its markets.
