Moand Ryan (Photo by Jonathan Bloom)
The non-bank credit company MRLRN Projects and Trading (Mellern), controlled by Moand Ryan, published its financial results for the first quarter of 2022, which show a sharp and consistent increase in the credit portfolio, financing income and net profit.
Financing revenues in the first quarter of 2022 jumped by approximately 148% and amounted to NIS 38.1 million, compared with NIS 15.3 million in the corresponding quarter of 2021. The increase in revenues is attributed to a 113% increase in the average credit portfolio in Israel in the quarter compared to the corresponding quarter last year. In addition, financing income for the quarter included income in the amount of NIS 7.9 million attributed to operations in the United States.
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Net financing income in the first quarter of 2022 increased by approximately 155% to approximately NIS 29.5 million, compared with approximately NIS 11.5 million in the corresponding quarter of 2021. The rate of net financing income in the quarter relative to income increased to approximately 77.4%, compared with approximately 75.3 % In the corresponding quarter last year. The increase in the rate of profitability was due to the continued implementation of a strategy of diversification, reduction and expansion of credit sources, with partial offsetting mainly with a decrease in the return on the customer portfolio.
Profit before taxes jumped to NIS 15.8 million in the quarter, compared with NIS 6.8 million in the corresponding quarter last year.
The net profit in the first quarter of 2022 more than doubled to NIS 11.7 million, compared with a profit of NIS 5.2 million in the corresponding quarter last year. The increase in profit was due to the sharp increase in financing income, net of partial offsets mainly with an increase in administrative and general expenses attributed mainly to an increase in the workforce to support growth, legal expenses as a result of the increase in volume of activity and expenses attributed to Lugano in the US.
The company’s shareholders’ equity at the end of the first quarter of 2022 amounts to NIS 234.2 million, compared with NIS 113.4 million at the end of the first quarter of 2021, which corresponds to last year. The increase in capital, of approximately 106%, is attributed to the private placement of shares and options to Discount Capital in October 2021 and to the Company’s profits during the reporting period added to the capital less a dividend paid.
The company’s board of directors approved a dividend of NIS 4 million to its shareholders. The date of payment of the dividend – is June 14, 2022.
Moand Ryan, CEO of Melran Projects: “We conclude the first quarter with record results that include a significant increase in the credit portfolio, a sharp increase in financing income and more than doubling the net profit. We operate in a supportive business environment that we believe will remain so in the foreseeable future and are working on the time to implement the company’s strategy for diversification, reduction and expansion of credit sources, all as part of the company’s growth process and improving profitability. ”
He added: “The company’s credit facilities have recently been increased to NIS 283 million, a private expansion has been made to the C series of bonds and the total number of existing bonds stands at NIS 555 million. The company recently announced an examination of the possibility of raising fees. Debt from a new series, series D of the company at a variable interest rate, and also announced the examination of the possibility of raising capital through the issuance of ordinary shares by way of issuance of rights. These actions will support the further growth of Mellern. We are also experiencing growth in our operations in the US through its subsidiary, Lugano, whose results are fully consolidated in the current quarter for the first time and estimate that this activity will continue to contribute to the company’s results in the future. “.
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