Al-Tawfiq Leasing Exceeds Challenges and Records £ 26.2 Million in 3 Months

The latest business results of Al-Tawfeek Financial Leasing Company -ATLease, showed that its net profit increased during the first quarter ended 31 March 2021 to 26.2 million pounds, compared to a net profit of 23.5 million pounds during the comparable period from 2021.

Al-Tawfiq for financial leasing said in a disclosure sent to the Stock Exchange on Thursday that the process of calculating the net profit for the first quarter had been carried out after the impact of a £ 50m securitization process had been ruled out.

Net financing for new contracts for financial leasing and factorization activities amounted to about £ 600 million during the first quarter, and total revenue increased by 30%, and earnings per share amounted to £ 0.20 per share at the end of last March.

The company intends to issue a new securitization process during the current year, and expects that it will have a significant impact in maximizing the profits of the company and shareholders and improving its financial position.

CEO Tarek Fahmy said his company had managed to achieve these results despite the major challenges facing it globally and locally this year as a result of the repercussions of the Russo-Ukrainian war.

Fahmy pointed to the company’s expansion in the field of factorization during the last period, which has helped it maintain high levels of profitability in addition to rationalizing administrative expenses.

Al-Tawfeek for financial leasing records the highest profit in its history, with a value of 134 million pounds in 2021

Tarek Fahmy, Managing Director and CEO of Al Tawfeek Leasing Company and President of the Egyptian Federation of Financial Leasing

The company’s latest annual business results showed an increase in net profit to an unprecedented level (134 million pounds) during 2021, compared to 74.4 million pounds in 2020.

The company’s consolidated lists sent to the Stock Exchange (February 21) revealed that total activity revenue increased to £ 611.4 million during 2021, compared to revenue of £ 514.4 million in the comparable period of 2020 .

While the company’s costs have risen slightly to £ 351.5 million over the past year, compared to costs of £ 351 million during the previous year.

The share of profits jumped to 0.96 pounds at the end of last December, compared to a share of 0.54 pounds during the comparative period last year. The independent lists of the parent company did not show different results than the consolidated lists.

Previous business results for the company showed an increase in its net profit to £ 117.3 million in the first nine months ending last September, compared to a net profit of £ 55.3 million in the same period of 2020.

Total activity revenue increased to £ 466.8 million during the aforementioned period, compared to £ 381.1 million in the comparable 2020 period.

The share of profit rose to 0.84 pounds at the end of last September, compared to a share of 0.41 pounds in the comparable period last year.

Distribution of cash dividends to shareholders of £ 0.93 per share last April

Egyptian Stock Exchange
Egyptian Stock Exchange

The Board has previously proposed to distribute 100% of the distributable profit to shareholders at £ 0.93 per share, with a total value of approximately £ 106.8 million (paid out from 21 April last year).

The company explained the doubling of its profits during the past year due to the growth in the volume of finance leases executed during the past year, which amounted to 2.3 billion pounds, in addition to the discounting of contracts worth 177 million pounds and the profits from a major securitization process issued in February 2021.

The securitization bond issue carried out in (February) was awarded by MEA Finance as the best securitization issue in the Middle East and Africa for the year 2021.

The company said in a statement sent to the Stock Exchange at the time (November 22 last) that its winning of this award comes after the jury sorted out hundreds of nominations during 2021, before announcing the best in each category.

Tarek Fahmy, CEO of the company, said that the importance of the issue is not limited to international praise in terms of structuring and credit rating, but extends to the issue of providing the financial liquidity needed for the company’s improve financial position and support future expansion. plans.

Fahmy added that the impressive success of this publication reflects the success of the board, the executive management of the company and its strategy over the past years, especially in building a broad portfolio in the field of financial leasing.

Al-Tawfeek issued more than £ 1bn securitization bond last February

Securitization-bonds.jpg
securitization effects

On 2 February, Al-Tawfiq for Leasing announced the completion of the process to offer the second issue of securitization bonds with a total value of more than one billion pounds.

In a statement to the Egyptian Stock Exchange at the time, she said the proceeds of the securitization process would be used to strengthen the financial position, support future growth plans and maximize profitability and return on equity.

The issue relates to Al-Tawfeek Securitization Company (subsidiary), and its value is specifically £ 1.087 billion, secured by a forward financial portfolio of finance leases.

Al-Tawfiq said the securitization process would be issued in three parts with terms of 13, 37 and 48 months respectively.

The value of the first portion is 267 million pounds, and is consumed monthly, while the value of the second portion is 705,4 million pounds and is consumed monthly after the completion of the first portion or before, in view of the actual yield .

The value of the third portion is 114.6 million pounds, and it is consumed monthly after the completion of the second portion or before it in light of the actual yield.

Misr Capital, a subsidiary of Banque Misr, acted as the issuing manager, promoter and financial advisor for the offering, as well as endorsing it.

While Banque Misr received the subscription and played the role of custodian, Banque du Caire, Suez Canal Bank and Attijariwafa Bank Egypt participated to ensure the subscription coverage.

The office of Ali El Din, Shahi & Co. accepted the legal advisory role for the transaction, while Baker Tilly’s office acted as the issue’s auditor.

Subscription to the issue closed on February 1, and several banks subscribed to the issue, most notably Banque Misr, Suez Canal Bank, Wafa Bank, The United Bank and the Arab Banking Corporation Bank.

Al-Tawfeek I got a license to practice factoring two years ago

Al-Tawfiq Financial Leasing Company
Al-Tawfiq Financial Leasing Company

On (28 January 2020), Al-Tawfeek obtained the final license to engage in factoring activity from the Financial Supervisory Authority for financial leasing.

The term factoring is the process of companies transferring their financial rights due from customers (debt) to a third party (a factoring company) at a lower value in exchange for immediate funds that help them revive their business.

Al-Tawfeek Leasing has actually started practicing factoring, from the first of last October, by signing the first contract with a client.

Tariq Fahmy said in a statement to the stock exchange at the time that the addition of factoring activity comes within the framework of the company’s expansion plan in the field of non-bank financial services.

Fahmy expects this activity to help grow revenue and profits and increase the rate of asset turnover, which will benefit shareholders.

Al-Tawfeek for Financial Leasing was established in 2005, and was listed on the Egyptian Stock Exchange in December 2017, and works in the financial services sector, consumer finance and brokerage, as well as real estate activities.

The Arab Moltaqa Investments Company owns the largest percentage (about 68.3%), while Al Baraka Bank owns Egypt 7.5%, in addition to others trading on free shares below the 5% ceiling, according to the latest ownership disclosure released on January 11. was sent.

The managing director said earlier that his company plans to increase the volume of its business to £ 7 billion and increase its capital to £ 400 million by the end of 2022.

Tarek Fahmy also quit in an interview with “Al-Mal” published last July 18 July, that his company would achieve the best business results in its history during the 2021 financial year.

In August 2019, the company increased its issued capital from EGP 200 million to EGP 234.4 million, an increase of EGP 34.4 million.

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