Zaim Credit Systems Plc expects further improvements in cash flow and interim profit
The group said its transition to a digital business has increased the number of loans granted while reducing costs
Zaim Credit Systems Plc said it expects further improvements in cash flow from operating activities in the second half of the year after reaching interim profit.
The group said its transition to a digital business has resulted in more loans being lent while significantly lowering overall operational costs.
READ: Zaim Credit Systems advances record amount of loans
In the six months leading up to June 30, the Russia-focused fintech group saw total loans issued increase 2.78-fold to Â£ 11.45million, with online loans issued online increasing by 13.6 times to reach Â£ 9.88million.
Online loans now represent 86% of the total issued.
The AIM-listed group made a net profit of Â£ 229,000, compared to a net loss of Â£ 1.3million the previous year. Cash at the end of the period stood at Â£ 1.1million.
âIn the first half of 2021, Zaim continued its strategy of transitioning to an online loan model. This strategy has resulted in a significant increase in access to our products without the need to visit our stores and at the same time a decrease in our fixed cost base â, commented General Manager Siro Cicconi.
âWe recently launched our branded mobile app (Zaim Mobile App) which has become a new sales channel for our business as well as online and offline sales channels. The app enables existing customers to get loans faster and easier, increasing customer loyalty by improving their customer experience. We expect it to become a significant growth engine for our business given the rapidly growing online customer base. “
âThe successful launch of the Zaim mobile app is an important step on the road to increasing Fintech content in our business model. This creates the opportunity to expand the knowledge we have of our clients, to understand their needs, their attitudes and the source of information and data that will guide Zaim in creating next generation services.
Shares rose 3% to 4.23p on Thursday morning.