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Zaim Credit trading profitably and experiencing rapid growth


Zaim Credit Systems PLC (LON:ZAIM) turned cash flow positive at the operating level in the third quarter following “outstanding growth” in its online business.

The fintech group, which focuses on Russian consumers not best served by mainstream lenders, said the group traded profitably in the third quarter and is experiencing rapid growth.

The group generated positive operating cash flow of £149,000 in the third quarter compared to negative cash flow in the previous quarter of £178,000, which the board believes demonstrates that the growth of amounts funded is “healthy, solid and self-sustaining”, which gives the group “good confidence” in the long-term sustainability of its strategy.

READ Zaim Credit says online operations performing beyond its expectations

As announced in last week’s trading statement, growth is being driven by the online segment of Zaim’s business, with the transition to an online model accelerating during the coronavirus pandemic.

Zaim expects to see continued growth in the online business with slight improvements in the default rates as a result of ongoing advancements to the credit scoring process.

The amount funded in the third quarter rose to £2.31mln from £1.62mln in the preceding quarter and £2.28mln in the same quarter of last year.

” We are pleased to announce that the company has achieved its first relevant milestone: our online platform comprising the most significant part of the business for the first time in the group’s history. The business is currently trading profitably, cash-flow positive and its growth pace is solid and consistent driven by the online segment. This is the confirmation of positive trends we observed in the previous quarters and I am glad to note that these results go beyond our expectations,” said Siro Cicconi, the chief executive officer of Zaim.

“All key performance indicators show positive trends: double-digit monthly growth rates in amounts funded comes along with a decrease in the weighted average default rate, profit generation and positive cash-flow generation,” he added.

“My outlook on the business is still prudent, because of the uncertainty caused by the second wave of Covid-19, but it is fundamentally positive in light of the above-mentioned achievements,” Cicconi concluded.


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