(Alliance News) - Premia Finance Spa reported Friday that it had closed fiscal year 2023 with a loss of EUR6.9 million from a profit of EUR603,283 in the previous year.

Revenues amounted to EUR5.3 million, down 15 percent from EUR6.3 million in the previous year. The decrease is due to "the failure to achieve the parent company Premia Finance's planned revenue target and the increase in market interest rates, which has led to a credit crunch and increased competition in the sector of salary assignment, pushing down commission income," the statement said.

Consolidated Ebitda was EUR278,326 from EUR1.5 million a year earlier.

The group's operating margin decreased compared to 2022, "as a result of

a higher incidence of structural costs, mainly related to the increase in the number of

employees and the strengthening of control bodies to support an organic development of the new business units - mortgages and SME financing - and to implement an effective and efficient internal organization," the company explains.

Ebit is EUR62,555 from EUR911,282 recorded as of Dec. 31, 2022.

Consolidated Net Financial Position was negative EUR904,444 as of Dec. 31, compared to negative EUR1.7 million as of Dec. 31, 2022. The decrease is due to lower cash generation due to lower revenues and margins and dividend distribution of approximately EUR569,000.

The chairman of the board of directors, Gaetano Nardo, commented, "In terms of business volumes and margins, we can say that the year 2023, due to a crisis situation, the group has a loss that is not significant but certainly challenging for the year 2024. However, we believe we are in the right direction, the efforts made start from afar and continue to develop along the right tracks thanks to the daily efforts of all those who believe in our project."

Premia Finance's stock closed Thursday at parity at EUR1.92 per share.

By Chiara Bruschi, Alliance News reporter

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