Stockholm, 2011-11-23 15:04 CET (GLOBE NEWSWIRE) --
TrustBuddy International Report July - September 2011
Interim Report: JULY – SEPTEMBER 2011
TrustBuddy AB took over 360Holding through a reverse merger 30th of June 2011, and then TrustBuddy AB became a fully-owned subsidiary of TrustBuddy International AB (former 360Holding) TrustBuddy International AB is therefore a clean holding company with no activity except the activity in TrustBuddy AB. Figures in parentheses market with 2010 is the numbers for the same period last year. All numbers are based on the group, and are in SEK if nothing else is mentioned.
Highlights Q3:
- Total group revenue: 2 182 (911) (+139,5% compared to same period last year)
- EBITDA in the subsidiary TrustBuddy AB: 746.
- EBIT subsidiary TrustBuddy AB: 592.
- Group profit: 185 (- 2 566)
- Our positive result is characterized by a negative impact from a cost associated with the aforementioned reverse merger. Therefor it is lower than our operating result.
- Liquid assets in TrustBuddy AB is amounted to 4.5 million SEK
- Prior marketing efforts has increased profitability by period-end
Financial Overview
The figures below are from the TrustBuddy International AB and the subsidiary TrustBuddy AB. Rest of the report is group figures. See appendix for more info.
| Juli – September RESULT | TrustBuddy | TrustBuddy AB |
| International AB | ||
| Operating income | -27 | 2 182 787 |
| Operating expences | 0 | 0 |
| TB | -27 | 2 182 787 |
| TB% | 100,00 % | 100,00 % |
| External Operating Expences | -401 498 | -1 306 228 |
| Personnel Expences | 0 | -130 051 |
| EBITDA* | -401 525 | 746 508 |
| Amortization | 0 | -155 070 |
| Operating profit (EBIT) | -401 525 | 591 438 |
| Financial Income and Expenses | -4 940 | 1053 |
| Earnings before appropriations AND TAX | -406 465 | 592 491 |
| EBITDA* | Earnings Before Interest, Taxes, Depreciation and Amortization | |
| EBIT** | Earnings Before Interest and Tax | |
Balance
Assets: 94 821 Equity: 90 513 Liabilities: 4 308
CEO`s message
Dear fellow shareholders and employees,
First and foremost, it is with great pleasure we can report that TrustBuddy International AB has set a new standard with breaking the previous row of losses for the joint company, by delivering positive results. With another sharp increase in revenues; up 108% from the second to the third quarter, we’re proud to post a positive result of SEK 592.000 in TrustBuddy AB. This is only our first full year of business in P2P lending, and our turnover still keeps rising strongly. As evident in the enclosed Q3-11 figures; TrustBuddy is maintaining its solid growth and its expansion, and is both doing well and surpassing expectations. Just as in the first half of 2011, we are meeting or exceeding our stated forecasts in every way. The 3rd quarter has been largely focused on taking on the full role of being a listed P2P company, which has led to an international level of interest from the sector which we so far have not been able to fully utilize. We have had to balance our efforts between evaluating the strategic growth options and using the numerous companies that have taken interest in us, while maintaining our current business and avoid losing focus on our present operations. We feel that we have succeeded in doing so while maintaining our low losses below 1% default rate. Our overseas operations are almost ready to be launched in the primary target markets, but with TrustBuddy still aiming for stable growth and not explosive expansion. The first new market we’re opening in is as previously stated Denmark and Finland, which we expect to have up and running in December this year, and Germany, at latest within the second quarter 2012. These will be covered in separate press release later this year and in early 2012. The company is also in discussions with several local operators in Germany, which due to growth in existing markets will not be concluded until Q1 2012 at the earliest.
Despite our current success in business, we feel that our TBDY share is suffering from a lack of attention. We would like to see more trading and more liquidity, to improve not only our business side but also our shareholder-friendly parameters. TrustBuddy is therefore launching a new offensive to get new shareholders and make investors aware of the share. In connection with this, we have decided to invite our close to 12 000 funding investors to join us as shareholders through a solid offer where all the subscribers/new investors/shareholders can subscribe for shares of a minimum of 16.000 shares and up to a maximum of 64.000 shares. All subscribers are given a guarantee of 50% of any loss on the investment in a period of six months. Due to the new total number of shares and the change of business, the company has a situation where it needs to get another 250 shareholders to maintain its listing. All key shareholders see the listing as an important tool for the business in the future, and have agreed to guarantee for the downside for new investors. This is done through LoanLand, backed by around 90% of the existing shareholders.
The share issuance started on the 17th of November and will end at the latest on the 2th of December, and will target selected strategic investors, loan portfolio investors and prospective new investors through a small private placement.
With our current cash reserves of SEK 4.5 million we do not need new equity, but want to use the issue of new shares as a method of gaining new shareholders – as well as attracting increased focus on the TBDY share both in Sweden and abroad. Please see separate information and general assembly information for details on this campaign and the offered private placement. We hope with this effort to create an even stronger bond between our funding investors and the company, which should benefit all parties in the long run.
If you are a long time shareholder from 360 Holding AB, we sincerely hope that you have found the transition to TrustBuddy ownership a positive experience, and that you have faith in us to care for your investment in the future. For our new shareholders, we sincerely welcome you to our company and hope you will have an interesting and profitable journey with us here at TrustBuddy. We appreciate every shareholder’s trust in us, and look forward to having you with us in the forthcoming exciting times.
If there is any other information you would like to see presented here or in our other reports, please do not hesitate to contact us at investorcare@trustbuddy.com, and we will do our best to cater for your requests.
Finally, I would like to take the opportunity to wish all our investor’s happy holidays and a great new year, on behalf of all us TrustBuddies!
Stockholm 23 November 2012
Jens B Glasø
CEO, TrustBuddy International AB (Publ.)
TrustBuddy International interim report July – September 2011
General info:
The group is structured with TrustBuddy International AB as a holding company with the subsidiary TrustBuddy AB as main activity. There is per date no other activity in the group. The numbers mentioned in this report are therefor group numbers if nothing else is mentioned.
About TrustBuddy
The company TrustBuddy AB (subsidiary of TrustBuddy International AB from 30th of June 2011) was founded in 2009. TrustBuddy is one of the first in the world to focus on arranging loans and capital provision between buddies in an organized manner. Our ambition is that TrustBuddy will become synonymous with liquidity and secure lending terms between buddies.
TrustBuddys main product is instant loans, based on TrustBuddys own online/mobile application platform. The potential client is seeking a loan between SEK 500 and SEK 5000 (or equivalent in local currency), and almost immediately, based on his/her credit rating and other controls, our system perform an automatically check, and the potential client will fast and safe be rejected or approved as an emergency loan customer.
If the loan is approved, the money will be immediately transferred to the customer's account, although it may take a few hours before receiving bank records transfer.
The second product is to offer people who want to lend their money to a better rate than they otherwise would have received in their regular banking to limited risk, in other words, lend money to other people who want to loan as an investment opportunity. This is again based on the same platform as TrustBuddy uses to offer loans. All lenders have their own private lending platform where they can invest money and lend them out again through a pooling concept for borrowers.
We believe that the market has a growing need for earning better interest on capital and easier access to smaller amounts for borrowers. Our aim is to meet both needs in one place. Our intention is to continuously develop the concept to meet user needs, focusing on integration and customized solutions, and this is where TrustBuddy will focus in the future.
Upcoming events
TrustBuddy International AB is planning to launch our services in Denmark and Finland in December 2011, and is heading towards the German market in Q1 2012.
TrustBuddy International AB are planning an share issue to meet Nasdaq OMX First North requirements in November/December (se CEO’s message for more info)
Market Conditions
There is per date no change in the market sights. The P2P market is only a few years old, but with its high margins and its attraction to industry giants; it is becoming a mainstream market very quickly. Even if amounts are small individually, they amount to some staggering numbers. In 2005, there were $118 million of outstanding peer-to-peer loans. In 2006, there were $269 million, and, in 2007, a total of $647 million. The projected amount for 2010 was $5.8 billion.
TrustBuddy International’s forecast and the markets both locally and internationally project a continuing strong growth in this sector, which TrustBuddy aims to stay on the top of.
Of the main P2P lending companies, there are a few that are the definitive market leaders. These are Prosper.com and LendingClub.com, that both have passed US$ 200 million in issued loans, with around 1 million customers. Both these are US based, and neither are active in TrustBuddy’s market. In Europe, some large companies exist; English Zopa.com and German Smava.de. All mainstream P2P loan providers, including industry leaders like Prosper, lendingClub and Zopa.com also show that their business grows at staggering 10 – 15 % per month, which indicate that the estimate on the market doubling every year is still valid. There can be no doubt about the solidity and legitimacy of P2P lending – it is a huge, booming industry, and we are only seeing the start of it.
Financial Overview
The numbers from the third quarter of 2011 is quite interesting because this is the first quarter after the reverse merger with 360Holding. As we see, the operation in TrustBuddy AB gives a positive result. The Q3 group profit is lower than it should be due to costs combined with the reverse merger.
It is important to notice that all activity is now based on the p2p-activity in the subsidiary TrustBuddy AB.
Revenue
Total group revenue went from SEK 911 up to SEK 2 182 (increase: 139,5 %)
Share capital and shareholder’s equity
TrustBuddy International AB is listed on Nasdaq OMX First North in Stockholm, since 01th of July 2011. (Listed as 360Holding AB since 2006)
ISIN-code:
SE0001295437
Short-name:
TBDY
Number of shares at the end of period:
262 738 903
Equity per share at the end of period:
0,34
Shareholders equity at the end of period:
89 331 227 SEK
Solidity: 95 %.
For more info please see appendix number two.
Operating expences
Operating expenses for the group was SEK 1 992 this period.
Profitability
Earnings before appropriations and tax:
TrustBuddy International AB: -406
TrustBuddy AB: 592
Group: ≈185
Profit Margin: 8,48%
Group result before tax and appropriations are positive for the first time in history.
Cash flow (group)
(Nine first months)
Liquid assets at period start: 757
Liquid assets at period end: 231
During the period, (Q3) cash flow from operating activities amounted to SEK -526 (-841). Our cashflow seems negative because the shareholder contribution is not given as a cash deposit but formed as a receivable on CISK.
The Group’s investment in equipment during the period amounted to SEK 0.
Other Information
Personnel
The number of employees on the 30th of September was 7 (2). This is an increase of 5 employees or 350 percent compared with this period last year. In addition to these employees we also have a number of external consultants.
Information on risks and uncertainty factors
TrustBuddy has chosen its segmentation based on low risk and high volumes, creating its own market niche. Access to capital is an element of uncertainty, in line with the supply of new customers. But with successful advertising on internet, and professional people who provide lenders this element of uncertainty seems to be minimalized.
Accounting Principles:
The interim report was prepared in accordance with IAS 34 Interim Reporting and applicable parts of the Swedish Annual Accounts Act. This means that the consolidated accounts were prepared in accordance with the International Financing Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the interpretations issued by the Financial Reporting Interpretations Committee (IFRIC) as approved by the European Commission.
Reporting dates:
The year-end report for 2011 will be published on February 28th 2012.
Q1 report 2012 will be published on 30th of April 2012.
Information about the company:
TrustBuddy International AB
Corp.reg.no: 556510-9583
Adress:
TrustBuddy International AB
Kungsgatan 10, SE 11143 Stockholm
Sweden
Certified Adviser:
Mangold Fondkommision AB. http://www.mangold.se
Mangold Fondkommision AB , Engelbrektsplan 2, 114 34 Stockholm,
Tel: 08 – 503 01 550
The Interim Report for Q3 has not been reviewed by our auditors.
Stockholm, November 30.2011
Mr. Eivind Jørundland, Chairman of the Board
Mr. Rune Glasø, Boardmember
Mr. Linus L. Lönnroth, Boardmember
Mr. Trond R. Ramslie, Boardmember
Mr. Alf Erik Skuland, Boardmember
Mr. Jens B. Glasø, Boardmember and CEO
Questions regarding this report will be answered by:
Jens B. Glasø
Phone:+46(0) 8 562 59 600/+47 40404750
