DDM Treasury Sweden AB: Interim report January–September 2015
Significant transactions in the pipeline
Highlights third quarter 2015
- Pipeline remains strong with significant transactions expected to be signed in Q4
- Net collections decreased by 12% percent to SEK 21.3M (SEK 24.1M)
- Cash EBITDA amounted to SEK 20.6M (SEK 22.8M)
Highlights nine months 2015
- Net collections increased by 14 percent to SEK 84.7M (SEK 74.3M)
- Cash EBITDA amounted to SEK 83.8 M (SEK 68.8M)
Comment by the CEO
Following successful completion of our refinancing in the second quarter 2015, the third quarter 2015 has been marked by work on significant transactions where DDM is in exclusivity. Some of these are expected to be signed before the end of the year and contribute to a positive result for the full year 2015.
In tandem with these processes, we continue to work on our capital structure raising additional funding for coming investments.
Net collections in the third quarter of 2015 amounted to SEK 21.3 M, a decrease of 12% compared to third quarter 2014. During the first nine months in 2015, net collections increased by 14% compared to the same period last year.
Collections in Russia temporarily slowed down during the third quarter due to the weakness in the Russian ruble, but improved at the end of the quarter as the ruble recovered again. Collections in Poland have not been performing according to initial forecast as legal collections have taken longer than expected. We are actively working with our servicers to catch up to our timetable and do not foresee any adjustments to the ERC relating to the Polish portfolios. Our actions and efforts continue to result in strong collections in Romania and Czech Republic.
Cash EBITDA (net collections less operating expenses) during the third quarter amounted to SEK 20.6M, decrease of 10% compared to the same period 2014 while for the first nine months 2015 it increased by 22% compared to the same period in 2014.
Cash flow from operating activities before working capital changes was SEK 52.1M in the first nine months 2015, an increase of 52% compared to the same period in 2014. For the third quarter 2015 it was negative SEK 17.2M, largely a reflection of the costs associated with the refinancing undertaken at the end of the second quarter.
We remain positive on the outlook of DDM as we continue to see strong growth in our pipeline of investment opportunities and reinforcement of DDM’s position in the market as a leading investor and manager of distressed assets. As mentioned above we currently work on several significant transactions in exclusivity with the selling party and we anticipate signing some of these before the end of the year, contributing to a strong result for the full year 2015.
Presentation of the interim report
The Interim Report and presentation material are available at www.ddm-group.ch on 12 November 2015, at 08:00 a.m. CET. CEO Gustav Hultgren and CFO Fredrik Olsson will comment on the report at a conference call on 12 November 2015, starting at 10:00 a.m. CET. The presentation can be followed live on www.ddm-group.ch and/or by telephone with dial-in numbers: SE: +46 8 566 426 62, CH: toll free 0800 005 203 or UK: +44 203 428 1400. Participants are advised to register via email to firstname.lastname@example.org.
Please find attached the full report
For more information, please contact:
Anders Antonsson, Investor Relations
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DDM Treasury Sweden AB (publ) (NGM: DDM1) is a subsidiary wholly owned by DDM Holding AG. DDM Holding AG (First North: DDM) is a leading multinational investor and manager of distressed assets. Since 2007, the DDM Group has built a successful platform in Eastern Europe, with 2.2 million receivables in nominal value over EUR 1.7 billion.