On August, 14th, 2012 the Rating agency Expert Rating confirmed the rating of bonded emission of the Company VAB Leasing LLC (USREOU code 33880354) at the level uaBBB + according to the national scale. The debt instrument with the rating uaBBB + is characterized by sufficient credit status in comparison with other Ukrainian borrowers or debt instruments. Credit status level depends on influence of adverse commercial, financial and economic conditions. Confirming the credit rating, the Agency was guided by the results of Company work in H1 2012.
Table 1
Key performance indicators of LLC VAB Leasing (UAH th.,%)
Indicators | Q2 2012 | Q2 2011 | Change 2011-2012 | Growth rate 2011-2012 |
Balance sheet figures: | | | | |
Cash and cash equivalent in domestic currency (F1 230+240) | 12842 | 5502 | 7 340 | 133% |
Total liabilities (F1 480+620) | 104566 | 141732 | -37 166 | -26% |
Short term and long term bank loans (F1 500+480) | 34970 | 80255 | -45 285 | -56% |
Total debt to investors in bonds | 58696 | 72800 | -14 104 | -19% |
Shareholders’ equity (F1 380) | 68685 | 58817 | 9 868 | 17% |
Total assets (F1 280) | 173251 | 200550 | -27 299 | -14% |
Authorized capital (F1 300) | 35350 | 35350 | 0 | - |
| | | | |
Financial results: | | | | |
Total income (F2 010) | 1948 | 1072 | 876 | 82% |
Operating results (F2 100 (105)) | -11584 | -2790 | -8 794 | 315% |
Financial incomes (F2 120) | 28975 | 21383 | 7 592 | 36% |
Financial expenses (F2 140) | -10189 | -11444 | 1 255 | -11% |
Net income (F2 220 (225)) | 4132 | 2840 | 1 292 | 45% |
| | | | |
Ratios: | | | | |
Shareholder equity /Liabilities | 66% | 42% | 24 p.p. | - |
ROE | 6% | 5% | 1 p.p. | - |
ROA | 2% | 1% | 1 p.p. | - |
Source: Company data, calculations by RA ‘Expert-rating’
1. In H1 2012 the Company continued the trend of debt load reduction. In comparison with H1 2011 the liabilities of VAB Leasing LLC decreased on 26 %. Bank loans decreased more than twice – by UAH 45,2 million, total debt to investors in bonds – by UAH 4,1 million. Shareholders’ equity of the Company grew by 17 % and made up UAH 68,7 million.
2. The analysis of VAB Leasing LLC financial results has shown that in H1 2012 the active policy of the Company on attraction of new clients and escalation of leasing portfolio has yielded positive results. Company revenue grew on 82 % compared vs. the same indicator of H1 2011. The financial result from operations has fallen, but at the expense of financial income increase and reduction of financial expenses Company’s net profit grew by 45 % and made up UAH 4,1 million.
3. ROE and ROA have slightly improved, whereas the ratio shareholders equity/liabilities grew by 24 p.p. compared to the end of H1 2011.
Table 2
Indicators of VAB Leasing LLC lease portfolio (UAH th., %, pcs.)
Indicator | Q2 2012 | Q2 2011 | Change 2011-2012 | Growth rate 2011-2012 |
Total value of lease contracts (UAH th.) | 559017 | 475456 | 83 561 | 18% |
Number of lease contracts (pcs.) | 1565 | 1260 | 305 | 24% |
Number of lease contracts, expiring over 12 months (UAH th.) | 358184 | 214918 | 143 266 | 67% |
Value of lease contracts concluded with individuals (UAH th.) | 53107 | 33282 | 19 825 | 60% |
Value of lease contracts from 3 largest clients (UAH th.) | 43531 | 41584 | 1 947 | 5% |
Value of lease contracts with payments delays by more than 30 days (UAH th.) | 44587 | 48448 | -3 861 | -8% |
Total volume of reserves provisioned for loss compensations from leasing portfolio depreciation (UAH th.) | 2116 | 1919 | 197 | 10% |
Accumulated leasing payments received form the customers for the period (UAH th.) | 47552 | 49410 | -1 858 | -4% |
Short term payables debts on leasing portfolio (UAH th.) | 92233 | 95464 | -3 231 | -3% |
Bad debt provisions (UAH th.) | 11861 | 11149 | 712 | 6% |
Source: Company data, calculations by RA ‘Expert-rating’
4. The analysis of Company leasing portfolio has shown that the number of lease contracts in H1 2012 is by 24 % higher, than in H1 2011, it caused UAH 83,6 million growth of lease contracts value. The value of lease contracts with individuals grew by 60 %. The time structure of leasing portfolio improved, so in particular the amount of long-term contracts with repayment term over 12 months grew by 67%.
5. The company has performed work with debtors: indicators of short-term and long-term debt receivables in H1 2012 decreased compared to same indicators of H1 2011. Also the growth of provisioning under impairment and bad debt is a positive trend.
Analytical service of RA ‘Expert Rating’
Confirmation of VAB Leasing LLC (english version) - 14.08.2012