DDM Treasury Sweden AB: Year-end report January–December 2015
Profit of SEK 49.5M for the year
Highlights fourth quarter 2015
- Net collections increased by 167% percent to SEK 143.9M (Q4 2014: SEK 53.8M)
- Cash EBITDA amounted to SEK 132.6M (Q4 2014: SEK 52.4M)
- Profit for the period of SEK 51.6M (Q4 2014: loss of SEK 23.8M)
- Pipeline of future transactions remains strong
Highlights 2015
- Net collections increased by 78 percent to SEK 228.6M (2014: SEK 128.1M)
- Cash EBITDA amounted to SEK 216.4 M (2014: SEK 121.2M)
- Profit for the period of SEK 49.5 M (2014: loss of SEK18.2M)
Comment by the CEO
The last quarter of 2015 was marked by the signing of the largest transaction in DDM’s history and the return to profitability, in line with our commentary in previous quarterly reports.
We have continued to deliver on our opportunistic investment strategy in CEE with our large Hungarian transaction in 2015. We do the transaction together with a well-reputed international capital partner, allowing us to capitalize on previous experiences and adding to DDM’s already strong reputation in the region. The investment is funded largely from existing funds.
Our focus is now turned towards the implementation of this transaction and raising additional funding for further investments and growth.
Net collections in the fourth quarter of 2015 amounted to SEK 143.9M, an increase of 167% compared to fourth quarter 2014. For the full year 2015, net collections increased by 78% compared to the full year 2014.
Cash EBITDA (net collections less operating expenses) during the fourth quarter amounted to SEK 132.6M, an increase of 153% compared to the same period in 2014 while for the full year 2015 it increased by 79% compared to the full year 2014. Cash flow from operating activities before working capital changes for the full year 2015 was negative SEK 77.2M, compared to positive SEK 47.3M for the full year 2014. On the back of the recent acquisition in Hungary, we expect significantly stronger operational cash flows in 2016.
We continued to manage our portfolios during the quarter and as a result at the end of the quarter we divested a portfolio in Poland that was not meeting our investment return requirements. This allows us to reinvest the funds in a portfolio that better mirrors the opportunities we see in the market and provides higher returns.
We remain positive on the outlook for the Company on the back of our strong full year results and improved financial metrics. We anticipate the strong pipeline of portfolios for sale across our region to continue and outpace industry growth in Europe as a whole. DDM is well placed to continue its rapid expansion in its investment activities.
Funding is key to continue to grow our investments and operations, and is a major focus. We aim to raise additional funding, both equity and debt, targeting a long-term and sustainable capital structure and cost. With the improved financial position on the back of the fourth quarter results we feel confident that we will be able to continue deliver according to our strategy.
For more information, please contact:
Anders Antonsson, Investor Relations
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 billion.
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