From the left: DelfinGroup financial director Aldis Umblejs, chairman of the board Didzis Ādmīdiņš and executive director of Investors Club Kaspars PeisenieksPhoto: www.captureandmove.com
Representatives of the Latvian company DelfinGrup visited the Investors’ Festival in Estonia last weekend, where they were interviewed by the CEO of the Investors Club, Kaspars Peisenieks. DelfinGroup representatives admitted that they are satisfied with the role of a dividend and growth company. And even despite the increase in financing costs, they will not change their approach and concept.
First, DelfinGroup, when initially making the information public, promised investors that it would pay out dividends at least four times a year. This pattern of operating and paying out dividends is particularly common in the US. “It’s good for us too. If we were to pay dividends once a year, it would be necessary to accumulate a large amount of liquidity. That way we can distribute the amount evenly throughout the year,” he explained DelfinGroup financial director Aldis Umblejs.
In addition to a quarterly dividend of at least 50% of profits, DelfinGroup does not exclude additional profit sharing depending on financial results. This explains why dividend payments were made six times last year.
“We can only make a proposal on the distribution of dividends, the final decision is still in the hands of the shareholders,” he added DelfinGroup executive director Didzis Ādmīdins. In effect, this means that the decision is made by the two largest shareholders – L24 Finance and EC Finance, who owned 55.54% and 18.28% of the company in the first quarter, respectively. It should be reminded that this year these shareholders sold 4.66 million to Baltic investors. own shares or 10.3% DelfinGroup share at a price of 1.35 euros per share.
DelfinGroup the manager said at the festival that he was not informed about the future plans of the majority shareholders, but did not rule out that they could still sell shares in the future.
Despite generous dividend payments, DelfinGroup plans to increase its market share. According to Umbley, they see themselves somewhere between a dividend company and a growth company.
According to Ādmīdins, the company owns 15% of the Latvian consumer credit market, but they see potential for growth in this area. “With technology and attracting new capital, we plan to increase this share – that’s our goal,” he said.
Speaking about the macroeconomic situation, Ādmīdins admitted that he expects an increase in financing costs. “But we also see new opportunities in the recession, especially when it comes to our lending activities,” he said.
However, increased risk and the cost of debt capital do not threaten dividends, they say DelfinGroup managers. “As I said, the dividend is a promise that we have to keep. Second, part of our profit goes to development and growth. However, despite rising interest rates and higher financing costs, we see that this part of the capital allocation allows us to achieve our goals,” said the company’s CFO.
“I think our shareholders appreciate this approach, which is why they buy our shares,” Ādmīdins summed up.
2023-07-12 15:50:00
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