creditshelf reports Q1 2020 financial figures

DGAP-News: creditshelf reports Q1 2020 financial figures

DGAP-News: creditshelf Aktiengesellschaft / Key word(s): Quarterly / Interim Statement
07.05.2020 / 07:30
The issuer is solely responsible for the content of this announcement.

creditshelf reports Q1 2020 financial figures

  • Q1 2020 with highest volume of loans requested in creditshelf history
  • Successful first closing of creditshelf 'direct-lending' fund with more than EUR 60 million of additional investor funds for German SMEs
  • EBIT affected by temporary decline in Q1 revenues, increased personnel expenses and investments in an optimized customer management system
  • On the basis of a high volume of requests and promising loan projects, the Management Board is maintaining its forecast for the current fiscal year

Frankfurt am Main, May 7, 2020 - creditshelf Aktiengesellschaft, pioneer in digital SME financing in Germany, today reported its figures for Q1 2020. In addition to a 60% increase in the volume of loans requested to EUR 500 million compared to the same quarter of the previous year, the first three months of fiscal 2020 were marked by uncertainties in the market for digital SME financing, particularly on the investor side. In order to counteract these uncertainties, creditshelf in the first quarter of 2020 early on intensified its efforts to complete the first closing of its 'direct-lending' fund. Together with the European Investment Fund (EIF) as anchor investor, the creditshelf platform from now on holds access to over EUR 60 million of additional investor funds to finance SME loans.

creditshelf CEO Dr. Tim Thabe emphasizes the importance of digital solutions during the coronavirus pandemic: "This challenging situation shows how important digital and innovative solutions are for German SMEs. We are receiving more loan requests than ever before in the history of creditshelf. We are now focusing on providing the necessary liquidity for our new and existing customers. The closing of our 'direct-lending' fund is a strong signal to the German SME sector."

Details of the business development in the first quarter of 2020:

After a strong Q4 2019, creditshelf filled up the loan project pipeline to a record level in Q1 2020. However, against the background of increased caution on the part of investors, the volume of loans arranged via the creditshelf platform fell from EUR 16.9 million in Q1 2019 to a total of EUR 11.6 million in the reporting period. Consequently, despite higher margins, revenues from borrower and investor fees fell to EUR 443.0 thousand (prior-year period: EUR 594.8 thousand) and EUR 221.8 thousand (prior-year period: EUR 342.0 thousand) respectively. Overall, creditshelf thus achieved consolidated revenues of EUR 685.6 thousand, 26.8% below the figure for the same quarter of the previous year (EUR 936.8 thousand). Earnings before interest and taxes (EBIT) totaled EUR minus 2,131.2 thousand in Q1 2020 (prior-year period: EUR minus 931.0 thousand) as a result of the negative development of revenues and against the background of higher personnel expenses.

A material item of expense was the further increase in the number of employees compared with the same quarter of the previous year. At the end of Q1, creditshelf employed 54 permanent staff (March 31, 2019: 40). Accordingly, personnel expenses increased to EUR 1,510.9 thousand in Q1 2020 (prior-year period: EUR 978.7 thousand). Marketing expenses rose to EUR 627.4 thousand in Q1 2020 (prior-year period: EUR 472.6 thousand), primarily driven by technology investments in a state-of-the-art customer platform and an optimized customer management system.

Expenses for sales commissions in connection with loan brokering by partners amounted to EUR 82.4 thousand (prior-year period: EUR 15.0 thousand), showing that the Commerzbank cooperation in particular had a significant impact on arranged loans. The strict risk standards of creditshelf are reflected in a further reduced waiver of receivables in the reporting period of only EUR 5.8 thousand (prior-year period: EUR 12.4 thousand). So far, the company's loan portfolio has not shown any short-term defaults caused by the coronavirus pandemic. In order to support its customers during the crisis, creditshelf offers them options for topping up their current loan projects within up to 6 months.

"We are closely monitoring the effects and development of the coronavirus pandemic and, where necessary, are taking operational and financial precautions to minimize the impact on the net assets, financial position and results of operations. We have also initiated measures to optimize our products and processes with the aim of meeting bank regulation requirements and thus further broadening our institutional investor base," explains CFO Fabian Brügmann.

Despite uncertainties in the market caused by the current special situation, creditshelf's Management Board is confident that the company will be able to seize the opportunities available in the market, play its part in securing the credit supply for German SMEs in a difficult phase and thus successfully continue its corporate growth in the following quarters. This outlook is largely determined by the successfully completed financing round of the first 'direct-lending' fund for SMEs initiated by creditshelf with more than EUR 60 million of additional investor capital and EIF as the anchor investor. Accordingly, the Management Board is confirming its forecast for the current fiscal year published on March 23, 2020.

The full quarterly statement for Q1 2020 is available for download effective today from the company's investor relations website, ir.creditshelf.com.

Further information:

creditshelf Aktiengesellschaft
Jan Stechele (CPO)
Birgit Hass (Leiterin Marketing & Kommunikation)
Mainzer Landstraße 33a
60329 Frankfurt
Tel.: +49 (69) 348 77 2413

Investor Relations:

creditshelf Aktiengesellschaft
Fabian Brügmann (CFO)
Maximilian Franz (Investor Relations Manager)
Mainzer Landstraße 33a
60329 Frankfurt
Tel.: +49 69 348 719 113

About creditshelf - www.creditshelf.com

creditshelf is a pioneer in the sector of digital SME financing in Germany, arranging loans through its easy to use online platform www.creditshelf.com. Founded in 2014 and headquartered in Frankfurt am Main, creditshelf considers itself a market and technology leader in the fast-growing business of digital SME financing in Germany. As a SME financier, creditshelf has developed its platform to serve the financing needs of German SME borrowers through loans from investors interested in this asset class. In this process, creditshelf offers to arrange corporate loans, thus enabling small and medium-sized companies to access highly attractive financing alternatives. At the same time, the company offers access to SME financing to professional investors looking for attractive investment opportunities. The core competencies of creditshelf include the selection of suitable credit projects, the analysis of the creditworthiness of potential borrowers, the provision of credit scoring and risk-adequate pricing. For its services, creditshelf receives fees from both SME borrowers and investors.

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07.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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