Author: Ivo Tahk
Wellman OÜ is a parent of a group which has interests in the following entities:
Wellman UAB – a subsidiary in Lithuania (100% interest);
Carfox OÜ – a subsidiary in Estonia (100% interest);
3PL Worldwide Solutions SIA – a subsidiary in Latvia (100% interest);
Wellman Logistics SIA – a subsidiary in Latvia (100% interest);
Wellman Factoring SIA – a subsidiary in Latvia (100% interest);
Investment House OÜ – a subsidiary in Estonia (85% interest), which has a 25% interest in Wellman Invesco AS ;
Autosky OÜ – a subsidiary in Estonia (100% interest);
BonBon Lingerie OÜ – a subsidiary in Estonia (70% interest).
The year 2016 was highly successful for Wellman. Major financial services group 4Finance purchased Friendly Finance, a consumer loan market leader and innovator in the fintech sector, for 16 million euros. The transaction was preceded by extensive preparations which lasted from summer 2015 to May 2016. Within that time, the buyer conducted thorough due diligence and determined that the acquiree is a quality business, innovative and, from the point of view of its IT solutions, far ahead of the competition.
The core business of the group’s parent is provision of financial services. In particular, provision of credit to companies and individuals at interest rates from 10% per year. For example, we provide credit to large Estonian companies interested in increasing their stocks and individuals interested in real estate development.
In 2016, we entered the lingerie business, acquiring the majority stake in a new company, BonBon Lingerie OÜ. We believe that premium lingerie business has adequate development opportunities thanks to its unlimited export potential. We see that by combining skilful marketing with superb quality, use of material, and fit, BonBon can be developed into an Estonian brand with a global reputation, the first of its kind.
Our Latvian logistics business moved into an important new development phase by beginning to offer stock financing through a newly-established subsidiary: Wellman Factoring SIA. There is demand for the service both among our existing logistics customers and new target customers with whom we are still in a negotiation phase. Availability of the service is a strong argument in attracting new customers.
Wellman group invests in stand-alone entities with different business profiles. This eliminates the risks resulting from operating in a single business segment and allows the group as a whole to earn a profit even when some group entities generate a loss.
The company’s investment portfolio includes, among other entities:
Wellman Logistics SIA, based in Salaspils, Latvia, which operates a logistics complex of 15,000 square metres and offers a full range of logistics services to companies operating in the Russian and Central Asian region (www.3pl.ru ).
Wellman Factoring SIA, based in Salaspils, Latvia, which offers various financial services to the customers of Wellman Logistics.
Autosky OÜ, based in Estonia, which imports and sells new and almost-new premium class Audi, BMW, Porsche, and Aston Martin cars( www.autosky.ee ).
Carfox OÜ, based in Estonia, which provides large-scale emergency repair and maintenance services for Premium class cars (www.carfox.ee);
BonBon Lingerie OÜ, based in Estonia, which produces undergarments, including T-shirts, shirts, dressing gowns, nightgowns, and similar items.
Wellman UAB, based in Kaunas, Lithuania, which operates Wellman Logistikos Parkas which is developing a logistics park with an area of over 10 ha near Via Baltica.
Different exclusive pieces of real estate in Estonia, Latvia and Egypt: leasing and renting. An entity providing financing to machine-building companies in Estonia (www.pioneer.ee ).
The parent of the group, Wellman OÜ, mainly provides marketing and management services and financing to the subsidiaries.
In 2016, the group generated revenue of 7,534,283 euros (2015: 15,114,564 euros) and earned a profit of 4,108,148 (2015: a loss of 1,351,891 euros)
In 2016, the group employed over 127 people. Personnel expenses including social security charges totalled 1,130,670 euros (2015: 1,721,182 euros)
Targets for 2017: To add functions at group level by creating new jobs at the parent company. In particular, this applies to the IT function whose management has been fragmented and inefficient. To pay more attention to financial management, in particular – to establish clearer criteria for coordinating and controlling movement of the group’s funds. We are planning to centralize the key support and control functions to the parent company so that subsidiaries could focus on delivering strong performance in their core business.
Naturally, we are going to maintain our main focus on starting up and developing the companies we have established and acquired; this means forming the best teams and entering new foreign markets.
You can view the Wellman Groups 2016 Annual Report in detail here.