Zaim Credit Systems turns cash flow positive

Francesca Morgan
RNS Newswire
12:16, 9th November 2020

Zaim Credit Systems (AIM:ZAIM FOLLOW) said it has turned cash flow positive in its third quarter  ending 31 December 2020 following a period of “outstanding growth” in its online business. 

The Russian-focused fintech group experienced rapid growth and said it has been trading profitably throughout its third quarter. The company reported last week that its online operations is now representative of the largest segment of its business in terms of revenue.  

Financial Highlights 

Zaim generated positive operating cash flow of £0.149m in 3Q20 compared to a negative cash flow of £0.178m in Q220 which it believes demonstrates ‘healthy, solid and self-sustaining’ growth and “good confidence” in the long-term sustainability of its strategy. 

Zaim said this represents the successful delivery and execution of a revised strategy which has since seen significant growth from a low online base at the time of its IPO last year.  

As outlined last week, as a result of its continued online growth strategy, Zaim has ‘significantly reduce’ the number of physical stores from 92 to 32 and redirected most customers online following a substantial investment in a convenient online platform. 

Zaim cited ‘a strong recovery’ during the period with the amount funded rising 42.3% from £1.62m to £2.31m sequentially from 2Q20 to 3Q20 and up 4.3% year on year. 

Its cash position rose by £0.19m in September to £0.43m, despite ‘significant amounts’ reinvested into growing the loan book. 

“The Company has achieved its first relevant milestone: our online platform comprising the most significant part of the business for the first time in its history,” said CEO, Siro Cicconi. 

“The business is currently trading profitably, cash-flow positive and its growth pace is solid and consistent driven by the online segment,” he said, adding that this confirms positive trends the group have observed in previous quarters which go beyond its expectations. 


The company told investors that it expects to see a continuation of its business growth across Q4 2020, largely driven by its online segment combined with ‘slight improvements’ in the default rates as a result of continued advancements to the credit scoring process.  

He added, “The figures don't show how quickly and professionally the team acted in managing unforeseen events as a direct result of the pandemic, but now we can see how much stronger the Group has become as a direct result of these actions.” 

Given the success of its online offering, products and the rapid growth in demand that it is witnessing, the company said it is now in the process of developing a new App which it said ‘should further the user experience and increase the potential target market for Zaim.’  

Zaim said the app is expected to proceed to a full-scale launch during the first half of 2021.   

Shares in Zaim have traded strongly over the past month to open 8.06% higher at 2.86p this morning following the announcement. 

ZAIM price chart

Reasons to Follow Zaim Credit Systems 

Market Leader in MicroFinance 

Zaim Credit Systems plc is the holding company of a Russian based financial services company Zaim Express. Zaim’s core product is providing microloans to Russian consumers. 

Improving Financials 

In a post period end trading update from its subsidiary, Zaim-Express, Zaim confirmed continued record growth with volumes of total lending approaching pre lockdown levels.  

Zaim is accelerating its online transition with related costs savings through store closures have helped offset the impact of the COVID-19 pandemic in its half-year results for H120. 

COVID-19 related restrictions were lifted in Moscow at the beginning of June with subsequent further lifting of restrictions occurring later in July. As a result, the business has since seen positive momentum and observed ‘a continued increase in demand.’   

Strong Outlook 

In 4Q20 ZAIM expects to see a continuation of the business growth driven mainly by the online segment combined with slight improvements in the default rates as a result of continued advancements to the credit scoring process. 

“We are confident that the group is going to benefit from this strategy regardless of the future development of the Covid-19 pandemic situation, as the online segment of the microfinance market is growing at an impressive rate and we have a competitive advantage via our online platform and bespoke IT system,” Cicconi told investors in September.  

Follow News & Updates from  Zaim Credit Systems here: FOLLOW 

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Login or register to post comments

Recent Articles