DDM Treasury Sweden AB: Interim report January–June 2016
Strong cash flows from existing portfolios
Highlights second quarter 2016
- The recent Hungarian transaction formally closed at the end of April 2016, resulting in stronger cash flows
- Net collections increased by 49% to SEK 50.7 (Q2 2015: SEK 34.0M)
- Cash EBITDA increased by 25% and amounted to SEK 43.4M (Q2 2015: SEK 34.8M)
- Loss for the period of SEK 0.8M (Q2 2015: profit of SEK 2.8M)
- Pipeline of future transactions remains strong
Highlights six months 2016
- Net collections increased by 88% to SEK 119.3M (H1 2015: SEK 63.3M)
- Cash EBITDA increased by 61% and amounted to SEK 101.5M (H1 2015: SEK 63.1M)
- Loss for the period of SEK 0.8M (H1 2015: profit of SEK 7.8M)
Comment by the CEO
The second quarter of 2016 was marked by the formal closing of the Lombard transaction, which took place at the end of April 2016 after receiving the approval from the Hungarian National Bank. The first cash flows from collections were received in early May.
Net collections in the second quarter of 2016 increased by 49% compared to the second quarter of 2015 as a result of the recent acquisitions in Hungary and the Czech Republic, while for the first six months of 2016 net collections increased by 88%.
Cash EBITDA (net collections less operating expenses) for the second quarter amounted to SEK 43.4M, an increase of 25% compared the same period of 2015. For the first six months of 2016 cash EBITDA was SEK 101.5M, an increase of 61% compared to the first six months of 2015.
Cash flow from operating activities before working capital changes for the second quarter of 2016 was SEK 49.0M, compared to SEK 59.6M for the second quarter of 2015, benefitting from the first cash flows from the recent Hungarian acquisition. Cash flow from operating activities before working capital changes for the first six months of 2016 was SEK 84.4M, compared to SEK 69.3M for the same period in 2015.
Market outlook
We continue to see strong growth in the pipeline of portfolios for sale across our region. DDM continues to receive a significant number of invites to bid for large portfolios and we are well placed to continue the rapid expansion in our investment activities.
Given the large amount of investment opportunities, funding continues to be a key focus to sustain growth. We are targeting a long-term and sustainable capital structure and costs. With the improved cash flows we remain positive on the outlook for DDM and feel confident that we will be able to continue to deliver according to our strategy.
The information in this Interim Report requires DDM Treasury Sweden AB (publ) to publish the information in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication on 11 August 2016 at 8:00 a.m. CET.
For more information, please contact:
Gustav Hultgren, CEO
Mail: investor@ddm-group.ch | Tel: 46 8 4080 9030
DDM Treasury Sweden AB (publ) (NGM: DDM1) is a subsidiary wholly owned by DDM Holding AG. DDM Holding AG (First North Stockholm: DDM) is a key acquirer and manager of distressed assets. Since 2007, the DDM Group has built a successful platform in Eastern Europe, currently managing 2.3 million receivables with a nominal value of over EUR 2.1 billion.
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