OREANDA-NEWS. February 22, 2012. The growth of the business was backed by significant development of the company’s sales network in 22 key regions of Russia, improved business processes and the flexibility of the risk management system as well as through offering unique solutions to meet complex demands – from true purchase of accounts receivable to “bulk” factoring, reported the press-centre of NFC.

In 2011 the company’s turnover amounted to 61.4 Bn Rubles, of which 30 Bn was recourse and 29.6 Bn non-recourse factoring. The share of non-recourse factoring services increased from 39% to 48%.

Based on our initial estimates, the net profi t of the NFC Group* for 2011 has risen to 146 M Rubles.

During the year, the number of Clients increased from 389 to 677; in 2011 NFC entered 684 new agreements –323 of them were signed with new Clients, 179 with active Clients as a development of our existing relationships (additional products, additional companies from the same group, etc.), as well as creating 163 agreements with Suppliers within reverse factoring agreements. In 2011 NFC provided factoring services on shipments to 7 016 buyers and over 14 000 credit limits were established by the NFC underwriting team.

Factoring income amounted to c. 1.4 Bn Rubles. Although profitability fell slightly in comparison to the prior year, according to our first estimates, NFC remains the most profitable factor on the Russian market; a result explained by our ability to meet client needs effectively through high quality service and solutions delivered through high levels of technology.

The Chairman of the Management Board of NFC Mr. Roman Ogonkov commented on the results of 2011 and future challenges: “The innovation and technology leadership guaranteed us a near twofold level of portfolio growth and that is really impressive. On the other hand, a year ago we did plan to achieve these results. And while in many respects the business growth was determined by the positive market trends of the first half of the year, I would also highlight the effect of the remarkable growth in the professional competence of our employees, our successful product solutions and improvements in the quality of business processes. The implementation of the business processes management (BPM) system is not yet entirely finished but already its positive impact can be seen. One can speculate of 2012 scenarios for a long time, so I would only say that our conservative estimate for the next year assumes approximately 35% growth. If that the positive trends of 2011 persist, we would ambitiously aim at sustaining the growth rate we achieved last year.

* NFC CJSC, NFC-Premium LLC and NFC-Moldfactor LLC, forming NFC Group of Companies.

Exchange rate: 1 euro = 39.45 Russian Rubles.