Moand Ryan (Photo by Jonathan Bloom)
Mlern Projects, which specializes in non-bank credit, has completed a not bad year at all. The company controlled by businessman Moand Ryan ended 2021 with financing income of almost NIS 88 million, which is an increase of about 63%, compared to about NIS 54.1 million in 2020. The increase in revenue is attributed to the sharp increase in the volume of the average credit portfolio in Israel during the period. NIS 5.9 million attributed to Lugano’s first merger in the United States.
The company’s financing expenses amounted to NIS 20.9 million in 2021, compared with NIS 15.1 million in 2020, the increase is mainly attributed to the increase in the company’s activity and the average credit portfolio in the period.
More in-
Net financing income in 2021 grew by 72% to NIS 67 million, compared with NIS 39 million in 2020. The rate of net financing income in the period climbed to 76.3% compared to 72.1% in the period in 2020. The improvement in the rate of profitability was due to the continued implementation of a strategy of diversification, reduction and expansion of credit sources, which was partially offset by a decrease in the return on the customer portfolio, as well as by non-cash financing expenses.
Expenditure by management and general in 2021 increased to NIS 19.2 million, compared with NIS 11.6 million. The increase in management expenses is attributed, among other things, to an increase in the workforce to support the company’s growth, to non-cash expenses for capital compensation to employees, to an increase of NIS 2.5 million due to the merger of Lugano and to one-time expenses of NIS 600,000. “B.
Net profit in 2021 climbed by 76% to NIS 30.5 million, compared with NIS 17.3 million in 2020.
An interesting statistic of the company is the increase in the total credit portfolio of the company, which jumped in 2021 to about NIS 807 million, including Lugano. The company’s credit portfolio in Israel grew to NIS 695 million in 2021, an increase of 113% compared to NIS 327 million at the end of 2020 and compared to NIS 301 million at the end of 2019.
In quarterly terms, the company ended the fourth quarter of the year with financing income that jumped by about 147% and amounted to about NIS 30.9 million, compared to about NIS 12.5 million in the corresponding quarter of 2020. Net financing income in the fourth quarter of 2021 amounted to about NIS 23.6 million , Compared with NIS 8.7 million in the corresponding quarter of 2020.
The net profit in the fourth quarter of 2021 more than tripled to NIS 8.9 million, compared with a profit of NIS 2.5 million in the corresponding quarter of 2020. As of the end of 2021, the company has cash and cash equivalents of NIS 43.5 million.
The company’s shareholders’ equity at the end of 2021 amounts to NIS 223.9 million (NIS 174.7 million attributed to shareholders), compared with NIS 109.8 million at the end of 2020 (unchanged for shareholders). The increase in capital 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 capital less a dividend paid.
It will be recalled that in December 2021, the company issued a bond issue by expanding Series C. The total consideration in the issue amounted to NIS 126.5 million. During the period of the report, Melran’s credit facilities increased by a total of up to NIS 235 million, from four banking corporations.
In November 2021, the Company completed a transaction to acquire shares of the American companies Lugano Capital and Drive On, which are sister companies. Lugano is engaged in providing non-bank credit in the United States for the purchase of used vehicles and Drive On’s activities are limited to the operation of a used vehicle agency used to realize the vehicles financed by Lugano. Additional shares of Lugano at a rate of up to 100% gradually until 2025.
In October 2021, the company completed a private placement to Discount Capital in the amount of NIS 46 million after the offering now holds about 13% of the company’s capital. As part of the offering, Discount Capital also received, without additional consideration, options at an exercise price of NIS 17.55 (adjusted for dividends and benefits from August 15, 2021), which will be capitalized, after the allotment of allotted shares and warrants.
In October 2021, the company’s board of directors approved that the company will work to enter the field of financial support for construction projects for real estate developers as well as to finance infrastructure projects for infrastructure contractors, including approved account discounting services and guarantees. Shop), focusing on customers in the sectors in which the company operates and is expected to operate in the future, which in its estimation will expand the value proposition to its existing and new customers.
Moand Ryan, CEO of Melran Projects: “We are concluding the year 2021 with excellent results and a great deal of activity momentum. We enjoy a positive business environment that we believe will remain so in the foreseeable future in light of the supportive regulation and the growing demand for non-bank funding sources.
“The growth in our activity is reflected in the company’s credit portfolio in Israel, which has more than doubled in value this year and stood at close to NIS 700 million this year, with the credit portfolio also including the recently acquired subsidiary Lugano in the United States amounting to NIS 807 million.
“We have deepened our activity in the Arab-Israeli sector, and at the same time we have expanded to other sectors, including the religious-ultra-Orthodox sector where we recently began operating and we are witnessing strong demand. In addition, the Lugano acquisition last year multi. At the same time, we are constantly working to diversify, reduce and expand the sources of funding as part of the company’s growth process and the continuous improvement in profitability. “