NEO Finance AB
Annual information
Please find attached annual report for the year 2022 of NEO Finance AB (hereafter – the Company) – audited financial statements, the management report, the statement by the responsible persons and independent auditor’s report.
In 2022, all branches of our businesses grew. Compared to 2021, the amount of loans issued through the Paskolų Klubas platform grew by 36%, with EUR 37.182 million of loans financed. The number of Neopay payment transactions grew by 31% year-on-year, from 16 million to 21 million transactions, and the value of payments made through the payment initiation service exceeded EUR 1.4 billion during the year. The amount of loans granted through FinoMark to SMEs increased 3.8 times, with a total of EUR 2.7 million issued during the year, compared to EUR 0.655 million in 2021.
The Company’s revenue in 2022 grew by 3%, from EUR 3.44 million to EUR 3.53 million. The cost of sales decreased by 7% from EUR 1.77 million in 2021 to EUR 1.65 million in 2022. However, operating costs increased by 15% to EUR 1.72 million in 2022, from the EUR 1.49 million previously recorded. The Company’s EBITDA in 2022 is EUR 462 thousand, an increase of 9% compared to EUR 422 thousand in 2021. The net profit for the period under review amounted to EUR 104 thousand, which is 12% lower than the EUR 118 thousand profit for 2021.
| 2022 | 2021 | ∆, % | |
| Loans issued, EUR | 37 182 230 | 27 416 768 | 36% |
| Revenue, EUR | 3 530 460 | 3 443 082 | 3% |
| Income from P2P lending, EUR | 2 352 114 | 2 200 437 | 7% |
| Income from e-money issuance and management, EUR | 1 032 988 | 903 782 | 14% |
| Income from investment activity, EUR | 145 358 | 338 863 | -57% |
| Cost of sales, EUR | (1 650 676) | (1 769 674) | -7% |
| Gross profit, EUR | 1 879 784 | 1 673 408 | 12% |
| General and administrative, other operating and interest expenses (depreciation excluded), EUR | (1 721 176) | (1 494 354) | 15% |
| EBITDA, EUR | 462 603 | 422 522 | 9% |
| Pre-tax profit, EUR | 158 608 | 179 054 | -11% |
| NET PROFIT/LOSS | 103 895 | 117 739 | -12% |
| EBITDA margin, % | 13% | 12% | |
| Return on Equity (ROE), % | 6% | 9% |
In 2023, the prevention of money laundering and terrorist financing will be a major focus, in particular through the introduction of new technical tools for the screening of sanctioned and politically exposed persons, the updating of the transaction monitoring system, and the updating of procedures.
As the cyber threat grows, the Company will also focus on information security and cybersecurity to protect corporate systems from potential hacking and other threats. Again, as the regulator’s requirements grow, a lot of attention and resources will be devoted to internal controls and risk management. On the business side, the plan is to improve business efficiency, to achieve higher profitability in all business lines and to end 2023 in profit with double-digit revenue growth.
Tomas Savickas
Financial analyst
Email: tomas.savickas@neofinance.com
The full report of NEO Finance AB (legal entity code: 303225546; registered address: Vivulskio g. 7, Vilnius, Lithuania) for the 2022, with confirmation by the responsible persons, are available for review in the attached document.