Our year in numbers.
At EUR 271.5 million, the results before taxes (EBT) of EOS Consolidated in the financial year 2017/18 were significantly above the previous year’s level. Sales, at EUR 795 million, were distinctly higher than in the past reporting year.
Sales by region.
In the financial year 2017/18, sales of EOS Consolidated posted a 19.8 per cent gain over the previous year. The Western European region in particular, made a decisive contribution towards the increase in sales. The Eastern European region and Germany boosted their sales considerably. Because the financial year of EOS Consolidated was harmonised for 28 February, 30 companies in the Western and Eastern European regions contributed with fourteen months of sales.
In North America sales declined. As a result of the sale of Hoepers Recuperadora de Crédito in the preceding reporting year, Brazil no longer made a contribution to sales.
EOS Consolidated sales by region.
With a share of 41.2 per cent of overall sales, Germany is still the most important regional market. Western and Eastern Europe have clearly expanded their shares of sales.
Encouraging growth: EOS Consolidated has consistently increased its level of sales since 2014/15.
At the end of the 2017/18 financial year, it reached EUR 795 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) have likewise risen steadily during the past four reporting years.
Profit and loss account (summary).
EOS Consolidated achieved an annual surplus of EUR 237.6 million in the financial year 2017/18. Sales revenues increased by 19.8 per cent. The growth can be explained primarily by higher returns from substantially increased investment in receivables packages from the reporting year and previous year. Besides which, the companies of the Contentia Group acquired in the previous year, made a full year’s contribution to sales for the first time. Operating income was up by EUR 128.7 million compared with the previous year. Given an almost constant number of employees, personnel costs were 13 per cent above the previous year’s level. The increase is attributed to the change in the financial year end date for many Western and Eastern European EOS companies.
Total assets of EOS Consolidated in the past reporting year increased by EUR 228 million to EUR 1.75 billion. The sharp growth can be explained by the book value of the portfolios purchased. These include secured and unsecured receivables packages as well as properties purchased and intended for restructuring. In all, their book value in the reporting year increased by EUR 331.6 million compared with the previous year.
Equity and financing.
Following a decline the previous year, the equity ratio of EOS Consolidated increased to 29.9 per cent in the financial year 2017/18. This continues to be assessed as quite robust for a financial services provider.
The equity ratio rose because of a very good result for the financial year.
The reason for the increase in financing need is attributed to the large investments made. It was covered mainly by taking out loans from the shareholder and with financial institutions. EOS Consolidated slightly reduced its external debt with financial institutions. The overwhelming portion of these financing operations is short-term.
Employee development in terms of headcount.
The total number of EOS Consolidated staff rose slightly during the financial year 2017/18. At the end of the reporting year, it was 7,441 worldwide. In Western Europe headcount increased by the number of new employees in the Contentia Group, which EOS recently acquired. In Hungary and Poland EOS Consolidated increased its personnel. In Germany, the employees of the EOS Health IT company established during the past financial year also added to headcount.
Investment by region.
In the financial year 2017/18 EOS Consolidated invested a total of EUR 489.2 million in receivables purchases and buildings. The largest investments were made in the Eastern European region. With debt collection 4.0, EOS Consolidated purchases assets in countries where it does not have a subsidiary and relies on partner companies for processing.
Investments in unsecured receivables.
In the financial year 2017/18, EOS Consolidated invested EUR 370 million in the purchase of unsecured receivables. Debt collection 4.0 describes investments, which EOS makes in countries where it does not have a subsidiary. Partner companies are responsible for servicing.
Investments in secured receivables and property.
In the financial year 2017/18 investment by EOS Consolidated in secured receivables and property amounted to EUR 119.1 million. The lion’s share of this investment was accounted for by Eastern Europe. EOS Consolidated also made large acquisitions in Germany.
‘A’ rating: for 14th time.
For the 14th time in succession, EOS Holding has been awarded an ‘A’ rating. In delivering its assessment, credit rating agency Euler Hermes Rating emphasised in particular the company’s market leadership in Germany and its strong market position in Western and Eastern Europe. The longstanding experience of EOS in receivables purchasing and the processing of non-performing loans also contributed to the decision.
This year, Euler Hermes Rating also praised the company’s ongoing development and expansion of expertise in property valuation, development and realisation. As a result, the auditors attested to the EOS Group’s low financial risk due to its very stable cash flow and continually very high and consistent level of income.