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4finance update on business, shareholders and governance

Trading and operational update
As outlined in the Group’s release on 3 March, the invasion of Ukraine has shocked people throughout 4finance and we feel deeply saddened by these events. The business is involved directly and through relief agencies in the broader efforts to support refugees.

The Group’s businesses continue to operate as usual, despite the impact of the war in Ukraine on its neighbouring countries. Overall loan issuance and collections so far in March are similar to January and February levels. We do not have operations in Russia, Ukraine and Belarus.

The war brings a degree of uncertainty to the general business outlook and adds to the inflationary pressures management were already monitoring. The business is in a strong position to respond and adapt its underwriting rapidly as needed.

Vera Boiko, previously the largest beneficial owner with 49.05%, will reduce her stake to 29.27% by the end of March. The new beneficiaries are three relatives, each Ukrainian citizens, Taras Boiko (3.3%), Denys Boiko (3.3%), Kateryna Boiko (3.3%), and a Swiss charitable fund for parasports (9.9%). The family transaction has been completed and the charitable fund transaction completes this week.

Further divestments by Mrs Boiko are scheduled in coming weeks, including 4finance management participation.

When completed and approved by the regulator, Mrs Boiko’s stake will be reduced to zero. While the divestment process was initiated last year as part of estate planning, events in Ukraine have accelerated it. Once the process is complete, all beneficial owners of 4finance will be EEA, UK or Ukrainian citizens or entities.

In light of the completed and pending changes in the shareholding - including the participation of management - it has been decided to dissolve the Supervisory Board, leaving the Management Board as the top level of corporate governance.  When the company re-domiciles, a new singular board will be constituted including executive and non-executive directors.

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