Zaim Credit Systems PLC (LSE:ZAIM) said it expects further improvements in cash flow from operating activities in the second half of the year after swinging to an interim profit.
The group said its transition to a digital business has delivered a higher number of loans lent while at the same time the overall operational costs have been significantly reduced.
READ: Zaim Credit Systems advances record amount of loans
In the six months to 30 June, the Russia-focused fintech group saw the amount of overall loans issued increase by 2.78 times to £11.45mln, with online loans issued online jumping by 13.6 times to £9.88mln.
Online loans now represent 86% of the total issued.
The AIM-listed group swung to a net profit of £229,000 compared to a net loss of £1.3mln the year before. Cash at period-end was £1.1mln.
“In the first half of 2021 Zaim continued to execute its strategy to transition to an online lending model. This strategy resulted in a significant increase in access to our products without the need to visit our stores and at the same time decreasing our fixed costs base,” commented chief executive Siro Cicconi.
“We have recently launched our branded mobile application (Zaim Mobile App) that became a new sales channel for our company along with online and offline sales channels. The App allows existing customers to get loans faster and easier, increasing loyalty of the clients by improving their customer experience. We expect it to become a significant growth driver for our business given the rapid growth of the online customer base.”
“The successful launch of the Zaim Mobile App is an important milestone in the path of increasing the Fintech content in our business model. It creates the opportunity to widen the knowledge we have of our clients, understand their needs, attitudes and source information and data that will drive Zaim in the creation of next generation services.”
Shares rose 3% to 4.23p on Thursday morning.