Kruk Group announces higher profits, but value of debt bought in Romania and region goes down

Debt management and recovery firm Kruk Group has announced advances in net profits and revenues in the first three quarters of 2012 on last year. The Polish group, which operates in Romania, as well as the Czech Republic and more recently Slovakia, saw revenues rise from EUR 47.1 million in the first three quarters of 2011 to EUR 58.4 million for Q 1,2 and 3 this year. For the same periods, pre-tax profits rose from a little over EUR 13.1 million last year to nearly EUR 14 million in 2012. Operating profits climbed more sharply from EUR 17.8 million in Q 1 – 3 last year to EUR 23 million in 2012. In the first nine months of 2012, Kruk spent EUR 45.3 million on debt portfolios, with the majority of purchases coming in Q3. This was less than half the amount spent on debt portfolios in the first three quarters of 2011. The Kruk Group purchased 36 debt portfolios on the Polish, Romanian and Czech markets, which included 23 retail debt portfolios and five corporate portfolios purchased from financial institutions and eight retail portfolios acquired from other entities. The firm also entered the Slovak market in August this year, and is aiming to become the market leader in the country for debt recovery and management. The Kruk Group's total assets stood at EUR 213.6 million at the end of September, whereas end-September 2011 the value was EUR 181.4 million. The book value per ordinary share on September 30 this year was EUR 4.15, compared to EUR 3.19 in September 2011. Kruk International, operating in Romania and the Czech Republic initially, was established in 2007 by the firm Polish Kruk. The company specializes in comprehensive management of mass receivables (debts) and works both with the finance sector and institutional clients. Kruk International manages the receivables of banks, insurance companies, leasing companies, fixed line and mobile telephone operators and FMCG companies. It is also an active player on the debt purchasing market. editor@romania-insider.com