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24 February 2021, 07:00 CET
Axactor reports Q4 and full year 2020 results
Axactor continued the underlying recovery in gross revenue for all business segments in the fourth quarter. Gross revenue for the quarter ended at 94.9 million (98.8), a 14% increase from the third quarter 2020. The decrease compared to the fourth quarter 2019 is mainly attributable to the REO run-off segment. For the full year, gross revenue ended at EUR 328.2 million (368.1).
Despite positive underlying development in all three business segments, the Covid-19 pandemic continue to impact Axactor’s figures. As a result, Axactor booked net revaluations on its NPL portfolio of EUR -8.9 million (3.3) to adjust collection curves to current performance. At the same time, a net amount of EUR 3.0 million was recognized as change in value of forward flow contracts (0.0). Total income for the fourth quarter was thus EUR 58.5 million (74.8), and for the full year 2020 EUR 205.0 (285.2).
“As we expected, the fourth quarter did not see the usual peak after a very strong third quarter this year. We are very pleased to see that our operations in Southern Europe is recovering well, especially within the 3PC business. However, the Covid-19 pandemic is still a major concern and we continue to have a high focus on the wellbeing of our staff and on serving our customers in the best possible way” says CEO Johnny Tsolis in Axactor.
Axactor continue to focus on cost efficiency and margin improvement. The EBITDA margin was up 5ppt in the fourth quarter 2020 compared to the same period last year, although in euro terms EBITDA decreased 10% to EUR 21.3 million. This includes a EUR 5.9 million reversal of impairment accrual on REO assets as an external valuation came back more positive than initially expected. For the full year 2020, EBITDA was EUR 35.9 million, down from EUR 92.1 million in 2019.
Cash EBITDA held up well, ending at EUR 63.8 million, down 4% compared to last year (66.8). For the full year 2020, Cash EBITDA was EUR 212.5 million (250.8).
Earnings before tax amounted to EUR 0.7 million (8.5) for the quarter and negative EUR 28.4 million (32.6) for the full year 2020. This includes a write-down of EUR 7.1 million of capitalized loan fees due to refinancing of several funding lines in the quarter. Net profit amounted to EUR 3.3 million for the quarter (6.5), while the full year net profit amounted to EUR -31.1 million (21.0).
On December 9, Axactor announced a large-scale restructuring of its balance sheet. The outstanding EUR 200 million bond was refinanced with maturity extended to 2024. The main credit facility with DNB and Nordea was increased to include the EUR 120 million funding line in Axactor Invest 1, and the total facility is now EUR 620 million, of which EUR 75 million in the form of an accordion option. As part of the restructuring Axactor acquired the 50% stake owned by Geveran in the shared investment company Axactor Invest 1 through a share capital increase by contribution in kind. Sub-sequent to the transaction, a private placement of EUR 30 million was carried out followed by a repair issue of EUR 20 million.
“With the restructuring and further improvement of our market leading cost-to-collect platform, Axactor is well positioned to take advantage of the expected growth in 3PC and NPL volumes. We continue to manage risk by prioritizing new business within our core competence, unsecured B2C debt within the financial industry. Given the current market conditions we expect an increased volume of deals towards the end of the year,” says Tsolis.
Axactor will present its interim report for the fourth quarter 2020 on 24 February 2021.
For additional information, please contact:
Johnny Tsolis, CEO Axactor, Mobile phone: +47 913 35 461 Email: email@example.com
Kyrre Svae, Interim CFO and Chief of Strategy & IR Axactor, Mobile phone: +47 478 39 405, Email: firstname.lastname@example.org
Axactor Group is a next-generation debt management company operating in Norway, Sweden, Finland, Germany, Spain and Italy with an ambitious growth strategy. Axactor acquires and collects on own portfolios of non-performing loans and also provides debt collection and accounts receiva-ble management for third parties. After only five years in business, external analysis show that Axactor already has an industry leading cost-to-collect ratio on NPL. The company has approximate-ly 1,150 employees.