Profit and loss account, assets position, equity and financing - here is an overview of key performance indicators.
Revenue by region.
In the financial year 2018/19 revenue showed a slight increase of 2.3 percent over previous year. The highest growth was recorded for the region of Eastern Europe, where revenue was 10.9 percent higher than in the previous reporting year. The decline in revenue of 8.1 percent in Western Europe was due to the fiscal year harmonization that took place in the 2017/18 annual financial statement. As a result, the companies in four high-revenue Western European countries contributed an additional two months to the revenue for 2017/18. Adjusted for this one-time effect, the revenue exceeded the previous year’s result. North America increased revenue by 10.2 percent over the previous reporting period.
Profit and loss account (summary).
EOS Consolidated generated net income of EUR 234.2 million in the financial year 2018/19. The moderate revenue growth of 2.3 percent was due to the Consolidated fiscal year harmonization in the financial year 2017/18. That process added about 30 companies’ results for 14 months to the consolidated year-end financial statements for the previous year. Operating income was EUR 20.9 million above revenues. The result was attributed to liquidation of accrued liabilities for a company being wound up. Other operating expenses rose to EUR 300.9 million, primarily due to high write-offs of trade receivables for a company in liquidation. Significant IT expenses incurred within the scope of software development also contributed to the increase. More details on the financial year 2018/19 from the EOS Group's CFO Justus Hecking-Veltman.
The total assets of EOS Consolidated rose by EUR 459.9 million to EUR 2.2 billion in the financial year 2018/19. This increase can be traced back to, among other things, considerable investments in purchased portfolios. They included secured and unsecured receivables portfolios as well as purchased undeveloped real estate. Their book value increased in the past financial year by EUR 346.1 million over the previous year. Purchased receivables and real estate made up 72.7 percent of the total assets for EOS Consolidated.
*Include portfolio investments which are shown as a loan claim for structural reasons (financial presentation).
Equity and financing.
The increased financing requirements can be explained by the high investments made by EOS Consolidated in the past financial year. They were met by borrowing from the shareholder and credit institutions. Equity too was increased considerably. This reflects the very good result for the financial year. The equity-to-asset ratio for EOS Consolidated fell slightly by 1.2 percentage points to 28.7 percent compared to the previous year. However, it is still at a comparatively high level for a financial services group. Read more on the EOS Group's financial situation
For computational reasons, tables and texts may show rounding differences.
EOS Annual Report 2018/19