A resilient business model
We have a long-established, cash-generative business model with unique features, and more than 13 years, experience of managing international growth businesses during challenging world conditions. Our customers value home credit and; demand for credit in emerging markets is rising. Most of our loans are for terms of around one year with, on average, just five months outstanding at any time. The risk/return profile of the business can be changed readily to respond to changes in the external environment.
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Effective risk management systems
We have well-established and effective risk management systems in place covering operational, credit, financial, and regulatory risk, Our Board supports high standards of corporate governance and complies with all requirements of the Combined Code. We expect that the Company will comply with the new UK Corporate Governance code published in May 2010, throughout the financial year commencing 1 January 2011. There is a well-balanced Board structure with an appropriate range of Board committees and other key operational risk committees including the Risk Advisory Group, which regularly reviews the key risks facing the business. The overall approach is one of risk management and reduction, with board-approved policies to manage these risks, and a strict reporting and control framework.
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Experienced management team
We have an experienced and diverse board of directors with sound experience of operating in public listed companies and international markets; and an experienced and successful senior management team with a strong track record who combine long-term home credit experience with wider financial services expertise. There is significant investment in a talent management programme to recruit, develop and retain talented managers.
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Strong financial profile
We have a well-funded balance sheet with capital levels more than sufficient to manage the risk profile of the business. At 30 June 2011, net assets were over £335 million, with an equity to receivables ratio of 56%, low gearing of 0.8x and interest cover of 3.4x. We have committed funding from a range of sources to support the planned growth of our existing operations and new markets until November 2013.
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Good profitable growth prospects
We believe there are significant growth opportunities for our business. In our established markets there is an improving economic outlook, which together, with reduced competition and good credit quality, should yield improved profitability. In our developing markets we see similar macro conditions together with the opportunity for further geographic expansion in order to leverage our existing investment. Taking the home credit model to new markets is a key element of our long-term development strategy.
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Sustainability report
We have a dedicated sustainability microsite which is updated annually.
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Our business model
Our business model has been operating for more than 130 years and is well established, resilient and profitable.
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Our strategy
Our strategy is clear and consistent. We plan to grow the business significantly by focusing on four areas.
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