Aforti Holding S.A.’s market strategy

Aforti Holding Capital Group strategy for 2016–2018

Aforti Holding is a financial group dedicated to micro, small and medium-sized enterprises. We intend to set new standards of comprehensive client service in private finance and corporate finance management.

Aforti Holding S.A. is currently a holding company with two key subsidiaries, which provide comprehensive financial services to clients with a wide-ranging portfolio and for Aforti Ac sp. z. o. o., which is the accounting back-office for sister companies in the group. It also provides marketing, legal and IT services to those entities.

The services provided by the Group cater to both individual clients and experienced investors as well as medium-sized companies looking for optimal means of financing operations and growth.

The strategy of Aforti Holding Capital Group (hereafter referred to as Aforti Holding CG, the “Group” and CG) for the years 2016-2018 plans a major leap in the scale of the business. The rapid growth of the broadly-defined financial industry will unfold thanks to organic growth and aacquisitions. What is more, the expansion of the Group will be supported through intra-group synergy.

Organic growth:

  • Harnessing intra-group synergy,
  • Focusing on developing x-sell services, i.e. auxiliary services providing a comprehensive line of services for clients,
  • Expanding into completely new domains – developing a portfolio of products for commercial and investment banking (leasing, debt collection, factoring, product distribution),
  • Securing complete coverage for the sales network across Poland,
  • Raising brand awareness (through sponsoring the Lech Poznań football club in the Ekstraklasa football league among others),
  • Increasing net markup to approx. 4.0% by the end of 2017.

Growth through acquisition:

  • Proactive search for investment opportunities by focusing on companies well-adapted to their line of business
  • Activating an entity in the debt collection industry in order to supplement the Group’s line of services creating structures which would allow for expansion into European markets (establishing new entities or activating existent ones)
  • Establishing a presence in seven countries across Europe by 2018

Thanks to several years of experience in the financial industry, a strong foundation and well-established relationships with clients, Aforti Holding has the capabilities to accurately identify entities best suited to generate the largest profits for the Group.

In order to minimize risk, all potential investments shall be verified by the management of the Aforti Capital Group in terms of, among others:

due diligence,
fundamental analysis,
S.W.O.T. analysis

In order to execute the up-dated growth strategy, Aforti Capital Group plans to channel approx. PLN 4.4 million by the end of Q1 2017 into the effort. The total capital expenditure in the years 2016-2018 will reach approx. PLN 12.4 million.

Aforti Capital Group intends to raise investment capital by emitting 2–3 year bonds, emitting new shares accounting for conducive capital market conditions and the Company’s attractive valuation.

Due to the up-date to the development strategy and accepting the investment plan, the Issuer has indicated, that in the years 2016–2018 the board does not recommend paying out dividends. However, the final decision about how profits are managed is up to the annual general meeting.

According to the board, the above-mentioned outline of development and organizational changes as part of the new strategy and the effects thereof will translate into an increase of the Company’s valuation. Executing the strategy will enable the Company to meet business scale thresholds, which will allow for the transition onto the main trading floor of the Warsaw Stock Exchange within two years.