Viainvest, or put it correctly: its parent company Via SMS Group, reported its unaudited financial statements for 2017. Unaudited means that this report has not been validated by a statutory auditor like pwc, ey etc. Let us assume, that the figures are correct 😉 My first thought: Why aren’t they capable to upload a nice copy of their statements? Or at least scan and upload it straight…? Does not change the figures though, but the first impression is somewhat dilletantic. Personally I would make sure that my figures are presented in a nice fashion.
Lower net profit due to expansion
Net profit decreased from more then 1.1 million Euro in 2016 to a bit more then 838k for 2017. This was expected as they invested in the Viainvest marketplace and went into new markets. You have to invest money to earn money ;). The figures look solid and I don’t want to go too much in to detail, as the interpretation is hard for externals. In bookkeeping (reporting) there is always the possibility to sugercoat. In the end, we are anyway scrapping only the surface.
Catching my eye
While screening the report I found it exciting that Via SMS Group is in posession of more then 2 mio in liqudity. Missing liquidity would be a warning sign. The situation is not that great though. If (when) there will be a recession, the defaults will rise and the capital buffer will diminish. There are not many assets in the balance sheet besides the loan portfolio. No(t much) property or any other bigger assets which store value and could be sold just in case. You can take a look at the balance sheet on page nine of abovelinked pdf report.
It gets really interesting from page 18 onwards…
…as there you see a lineup oft he loan quotas in the different (arrear) states. A bit more then a fifth is in the area of 90 or more days delay, and this number is deducted from the total portfolio. This is somewhat better then 2016, as you can see on page 19. We can therefor say: the expansion of the loan volume did not lead to a deterioration of the non-payer quota. Nice to know, we will see if this will be sustainable. Further you can have a look at the loan distribution per country, as well on page 19. On page 23 you have an overview of all subcompanies from the Group, which mostly belong completely to the Group.
Viainvest seems to penetrate into new business fields in 2018, as an e-money institution (like paysera) was founded. Plus, they do some sort of crypto secured loans…
As already said: sound results. Viainvest is for sure (together with Peerberry) one of the most (financially) sound marketplace in the Baltics.. One shall never forget that the the pack will be reshuffled during a recession. Further I want to express that if even 839k Euro in net profits sound very good, profit figures need to be taken with caution. Profits are not liquidity on the accounts, and liquidity is what keeps companies going. Profits can base on illiquid balance sheet positions, which maybe never can be liquidated (I know there are standards to avoid such things, but history has proven that this is not enough in any case ;)). I don’t want to talk down the annual report, but I think it is good to be reasonable skeptic and a good portion of common sense are never misplaced. All in all I have to say: Well done Viainvest!