Interim / Quarterly Report • Jul 25, 2018
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
· Axactor AB and Geveran Trading Co. Limited announced the agreement to optimize the structure of their investment partnership initially announced on 14 August 2017. After the restructuring, Reolux Holding S.a.r.l. and Luxco Invest I S.à.r.l. are treated as separate stand-alone SPVs within the consolidated group and owned 50/50 by Axactor and Geveran. They have separate funding arrangements and are thus in a better position to utilize available funds for different asset classes. Reolux will focus only on REO portfolios, while Luxco Invest I will invest in NPL portfolios, primarily unsecured. As part of the agreement, Axactor has paid down EUR 80 million of the EUR 120 million subordinated loan notes granted to Luxco Invest I by a Geveran affiliate, helping Axactor to reduce its running interest cost. The EUR 80m are available for Luxco Invest I to re-draw when needed
· Axactor Capital Italy S.r.l., a new SPV in Italy with the sole purpose of acquiring NPL portfolios in the Italian market has been established. This new SPV is owned 100% by Axactor Portfolio Holding AB, a fully owned subsidiary of Axactor AB, and is hence part of the so-called restricted group. The SPV is expected to gain access to the funding line from DNB and Nordea, and hence further strengthen Axactor's purchasing power in the Italian market. Portfolios acquired through the SPV will be serviced by Axactor Italy.
| EUR million | Q2 2018 | Q2 2017 | YTD 2018 | YTD 2017 |
|---|---|---|---|---|
| Gross revenue | 66.7 | 26.9 | 107.7 | 46.6 |
| Net Revenue | 54.4 | 23.6 | 90.2 | 41.1 |
| EBITDA | 10.6 | 6.1 | 16.7 | 7.1 |
| Cash Ebitda 1) | 40.6 | 9.4 | 58.7 | 13.0 |
| Depreciation and Amortisaton (excl. Portfolio Amortization) | -1.5 | -1.1 | -2.8 | -2.6 |
| Net Financial Items | -8.5 | 0.2 | -14.0 | -0.9 |
| Tax | -0.4 | -0.6 | -0.7 | -0.7 |
| Net Result | 0.2 | 4.6 | -0.8 | 3.0 |
| Cash and Cash Equivalents at end of period 2) | 121.0 | 19.6 | 121.0 | 19.6 |
| Acquired portfolios during the period 3) | 22.7 | 54.3 | 114.2 | 120.8 |
| Book Value of portfolios at end of period 3) | 539.0 | 241.5 | 539.0 | 241.5 |
| Gross Collection on Portfolio during the quarter 3) | 53.3 | 14.2 | 82.8 | 24.7 |
| Estimated Remaining Colleciton (ERC) at end of quarter 3) | 978.7 | 510.7 | 978.7 | 510.7 |
| Interest Bearing Debt at end of Period | 406.6 | 128.2 | 406.6 | 128.2 |
| Number of Employees (FTE) at end of period | 996 | 888 | 996 | 888 |
1) Cash EBITDA is adjusted for calculated cost of share option program and portfolio amortizations and revaluations and REO cost of sales.
2) Restricted cash excluded.
3) Includes NPL and REO portfolios.
Axactor saw yet another strong quarter in Q2 2018, with gross revenue growth of 148% compared to the same quarter last year and 63% growth compared to Q1 2018. The EBITDA margin shows strong development as well, increasing from 17% during the previous quarter to 20% in Q2 2018. The REO segment is delivering a very strong cash flow, supporting the Cash EBITDA for the quarter of EUR 41m. This is more than four times the Cash EBITDA of Q2 2017, and a growth of 124% compared to the previous quarter.
Axactor delivered a record high Cash EBITDA of EUR 41m, and an EBITDA of EUR 11m for the second quarter of 2018. The company is pleased with the strong cash flow development, which is helped by the large investments made during Q4 2017 and Q1 2018. The gross revenue for the quarter was EUR 67m, up from EUR 27m in the same quarter last year. The EBITDA margin was 20% in Q2 2018, down from 26% in Q2 2017. Q2 2017 did, however, include a positive one-time impact from a settlement with the former IGE Board of Directors, and excluding this settlement the margin is up from 19%. The company continues to improve efficiency and realize scale benefits, but a change in business mix towards the REO segment limits the margin growth as REOs have a lower margin than NPLs.
All business segments in Axactor experienced growth during the second quarter, both compared to Q2 2017 and compared to Q1 2018. 3PC revenue grew 18% compared to the previous quarter as more and more of the new 3PC contracts acquired in Spain over the last quarters become fully operational. The roll-out of the ARM segment is still in progress, and the Norwegian business shows modest growth. The main factor explaining the total gross revenue growth of 148% compared to Q2 2017 is, however, the large investments in NPL and REO portfolios made over the last twelve months. After a run-in period of performance slightly below business case for NPL portfolios, the rolling twelve-month collection performance measured against original business case have now stabilized above 100% and the LTM Q2 2018 number was 105%. This improvement comes partly as a consequence of scale benefits and improved tools through standardization and sharing of best practices across the group. The REO portfolios are liquidating much quicker than anticipated, and the sales are 143% above the original business case for the last twelve months. The REO business cases have a conservative build-up, and the REO performance is thus expected to converge towards business case over time.
The second quarter of 2018 has been an eventful quarter for Axactor with the announcement of several significant forward flow contracts across Norway, Germany, Italy and Sweden, as well as important 3PC contracts in Spain. The forward flow contracts will generate significant volumes from Q3 2018 and onwards, securing future growth for Axactor. The forward flow contract signed with Komplett Bank in Norway is expected to generate an annual capex of approximately EUR 60m when fully operational, and the new German and Italian contracts are of considerable size as well. Adding the new contracts in the quarter to the forward flow contracts already in place, Axactor expects a total monthly investment of EUR 15m in forward flow portfolios towards the end of the year.
Several structural changes and improvements have been made over the course of the second quarter. Most notably, the co-investment agreement with Geveran Trading Co. Limited has been optimized through a restructuring of the setup. After the restructuring, Reolux Holding S.a.r.l. and Luxco Invest I S.à.r.l. are treated as separate stand-alone SPVs within the consolidated group and owned 50/50 by Axactor and Geveran. They have separate funding arrangements and are thus in a better position to utilize available funds for different asset classes. Reolux will focus only on REO portfolios, while Luxco Invest I will invest in NPL portfolios, primarily unsecured. As part of the agreement, Axactor has paid down EUR 80 million of the EUR 120 million subordinated loan notes granted to Luxco Invest I by a Geveran affiliate, helping Axactor to reduce its running interest cost. In parallel with the restructuring, Axactor is working with an international bank to secure a separate funding line for Reolux and are confident that this agreement will materialize in the near future.
In addition to the optimization of the co-investment structures, a new SPV has been established in Italy with the purpose of acquiring Italian NPL portfolios. The SPV is owned 100% by Axactor Portfolio Holding AB, a fully owned subsidiary of Axactor AB. The motivation for establishing this SPV is to gain access to the funding line from DNB and Nordea within the so-called restricted group. The SPV is expected to gain access to this funding line in the near future.
During May, the company implemented a reverse share split, meaning all existing shares were aggregated in the ratio of 10:1. In order to be able to perform the reverse split without having to withdraw shares, a directed share issue of one share was completed prior to implementing the reverse split. The shares are traded ex split on the Oslo Stock Exchange with the new ISIN SE0011309319. The bonds issued in March 2018 are now listed on the Oslo Stock Exchange as well, with the ISIN NO0010819725.
Axactor has a significant amount of cash in the balance sheet, and find the current funding situation to be comfortable. With the prospect of signing a new REO funding agreement with an international bank, a significant portion of funds is expected to be released. These funds will then be made available to use as Axactor sees fit. The new funding arrangement will also lower the company's financing cost for REO portfolios significantly.
Gross revenue for the second quarter of 2018 was EUR 66.7m (26.9m). In Q2 2017, Axactor received a settlement from the former IGE Board of MEUR 2.0. Excluding this one-time impact, the growth compared to Q2 2017 was 168%. Comparing to Q1 2018, the gross revenue increased by 63%. The REO portfolios acquired during Q4-17 and Q1-18 are liquidating well, and the NPL segment is also growing significantly. The capital light 3PC and ARM segments are experiencing growth as well with respective growth rates of 30% and 8% compared to the same quarter last year. Total amortization and revaluation of NPL portfolios was EUR 12.3m (3.3m) in Q2 2018, leaving the net revenue for the quarter at EUR 54.4m (23.6m).
NPL portfolios accounted for EUR 31.4m (14.2m) or 47% (53%) of total gross revenue in Q2 2018. The REO segment is rapidly increasing on the back of the large investments during the previous two quarters, and accounted for EUR 21.9m (0.0m) or 33% (0%) of the gross revenue in Q2 2018. A total of EUR 22.7m (54.3m) was invested in portfolios during the quarter. The relatively modest investment level in the quarter is partly due to several potential deals being postponed to the third quarter. In addition to the capex deployed in the second quarter, Axactor signed a number of significant forward flow contracts with start date later in the year. These forward flow contracts are spread across Germany, Italy, Norway and Sweden, where the most notable contract is the Komplett Bank contract which alone secures a future annual investment of around EUR 60m. The NPL book value including stock of secured assets at the end of the second quarter of 2018 was EUR 539.0m (241.5m), with a total estimated remaining collection (ERC) of EUR 978.7m (510.7m).
The 3PC segment delivered a gross revenue of EUR 11.8m (9.1m) in Q2 2018, and accounted for 18% (34%) of total gross revenue. Spain is the main growth driver, and closed an additional of three large new contracts during the quarter. Combined with other new business and a strong seasonality for the second quarter, the 3PC revenue grew 18% compared to Q1 2018.
Accounts Receivable Management (ARM) is currently being rolled out as a business segment throughout the Group. The Norwegian ARM business deliveres modest, but stable growth, and the product is now ready to go live in Sweden. The ARM segment contributed EUR 1.7m (1.5m), or 2% (6%) of the total gross revenue for the second quarter of 2018.
The reported EBITDA for the second quarter of 2018 was EUR 10.6m (6.1m). For the REO segment, the disposal of sold assets from the balance sheet is booked as cost of sales and included as an operating expense. The quick liquidation of the REO portfolio thus mean that the margin for the REO segment is lower than the average for the Axactor Group. The rapid growth in the REO segment partially offset the margin improvement for the rest of the business, landing at a total EBITDA margin for the second quarter of 20%. (26%). The reduction in margin compared to Q2 2017 is impacted by the EUR 2.0m settlement received from the former IGE Board members last year. Excluding this one-time item, the margin is up from 19% in Q2 2017. Comparing to Q1 2018, the EBITDA increased by EUR 4.5m, both reflecting the favorable seasonality in Q2, as well as continued growth and scale benefits.
The cash EBITDA, (EBITDA excluding amortization and revaluations of NPL portfolios and REO cost of sales, as well as calculated costs related to the share option program) was EUR 40.6m (9.4m) for Q2 2018. This represents a 124% growth compared to the previous quarter, driven mainly by the strong cash flow from the REO segment, but also helped by a strong margin development in NPL and 3PC.
Net profit for the period amounted to EUR 0.2m (4.6m) for the second quarter of 2018.
The total operating expenses for the second quarter of 2018 amounted to EUR 43.8m (17.5m). The increase compared to the previous quarter is mainly driven by increased REO cost of sales and the overall increased activity level. The REO cost of sales for the quarter increased from EUR 6.1m in Q1 2018 to EUR 17.4m in Q2 2018, and represent the reversal of the book value of sold assets and can thus be compared to the amortization of NPL portfolios. Direct costs, which includes cost for collection staff, phone, printing & postage, fees & commission paid to external sources and legal fees comprised 41% of total operating expenses, where off EUR 8.0m is cost for the collection staff.
IT and local SG&A costs amounted to EUR 7.3m (5.2m) for the quarter. The increase can be attributed to increased size of the business.
Depreciation and amortization excluding amortization of NPL portfolios was EUR 1.5m (1.1m) for Q2 2018. Most of the depreciation and amortization is related to intangible assets acquired through the acquisition of subsidiaries, IT and infrastructure projects.
Interest cost on outstanding debt for the second quarter of 2018 was EUR 8.4m (1.5m). Net financial items were positively impacted by currency effects of EUR 0.4m (1.5m). Adding other financial items, the total net financial items for the quarter ended at EUR -8.5m (0.2m).
The tax expense for Q2 2018 was EUR 0.4m (0.6m). The high effective tax rate is due to some loss-making entities not recognizing any new tax assets in the quarter, while at the same time some profit-making entities are in a taxable position.
The cash flow from operating activities in the second quarter of 2018 amounted to EUR 43.5m (8.0m). The cash EBITDA for Q2 2018 was EUR 40.6m. The main difference between the cash EBITDA and the cash flow from operating activities relates to a reduction in net working capital of EUR 4.5m (-1.1m), and taxes paid of EUR 0.9m (0.8m).
Acquisition of NPL and REO portfolios during Q2 2018 was EUR 22.7m (54.3m). Adjusting for deferred payment on two of the portfolios acquired in Q1 2018, the total amount paid for portfolios in the quarter was EUR 63.5m (112.1m). In addition, Axactor continues to invest in IT systems to optimize efficiency, thus, the total cash flow from investments was EUR -65.8m (-113.0m).
Total cash flow from financing activities was EUR -54.4m (72.2m) in Q2 2018, as EUR 80.0m of the subordinated notes in Luxco Invest I was re-payed. The re-payment was partially offset by drawdowns to finance portfolio investments. Total cash and cash equivalents at the end of the period was EUR 121.0m (19.6m).
At the end of the second quarter of 2018, the total equity including minorities for the Group was EUR 314.2m, compared to MEUR 192.4m in Q2 2017. The resulting equity ratio at the end of the quarter was 41%, compared to 54% at the same time last year.
Gross revenues for the first half of 2018 was EUR 107.7m (46.6m) while net revenue for the same period was EUR 90.2m (41.1m). Reported EBITDA for 1H 2018 was EUR 16.7m (7.1m). Net financial items ended at EUR -14.0m (-0.9m) for 1H, resulting in a net profit of EUR -0.8m (3.0m).
The parent company's business activity is to manage the Group's operations. The result after tax for the second quarter 2018 ended at EUR -0.9m (2.6m). Total equity at the parent company at the end of the quarter was EUR 279.7m (200.8m).
The REO market in Spain remains strong, and Axactor sees a healthy pipeline for the coming quarters. In addition, the market for secured NPLs is growing rapidly and through good client relationships with key financial institutions, Axactor
find themselves in a good position to take part in this growth. Within the Nordic countries the volume of forward flow portfolios from consumer banks is still high, and Axactor believes this market will continue to be a key factor in the future growth of the company. The 3PC pipeline in Spain remains strong.
The cash flow development in Axactor over the past quarters has been very solid, and with the continued improvement across segments the company expects further growth throughout 2018. The second and fourth quarters of the year are generally the strongest in the European DCA industry.
We confirm, to the best of our knowledge, that condensed set of the unaudited financial statements for the first half year 2018 which have been prepared in accordance with IAS 34 – Interim Financial Reporting and generally accepted accounting principles in Sweden, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the entity and the group taken as a whole.
We also confirm that the Administration Report includes a true and fair review of the development and performance of the business and the position of the entity and the group.
Stockholm, 25 July 2018 The Board of Directors
Bjørn Erik Næss Chairman of the Board
Brita Eilertsen Board member
Lars Erich Nilsen Board member
Beate S. Nygårdshaug Board member
Merete Haugli Board member
Terje Mjøs Board member
Endre Rangnes Chief Executive Officer
| For the quarter end | YTD | |||||
|---|---|---|---|---|---|---|
| EUR thousand | Note | 30 June 2018 |
30 June 2017 |
30 June 2018 |
30 June 2017 |
Full year 2017 |
| Net revenue | 3, 4 | 54,386 | 21,592 | 90,186 | 39,020 | 87,745 |
| Other revenue | 3 | 0 | 2,040 | 0 | 2,040 | 2,040 |
| Total revenue | 54,386 | 23,632 | 90,186 | 41,060 | 89,785 | |
| Cost of secured assets sold (REOs) | 7 | -17,353 | 0 | -23,476 | 0 | -1,445 |
| Personnel expenses collection | -7,975 | -6,640 | -16,061 | -12,528 | -26,578 | |
| Personnel expenses other | -5,170 | -3,918 | -10,444 | -7,922 | -18,378 | |
| Operating expenses | -13,278 | -6,929 | -23,498 | -13,461 | -28,569 | |
| EBITDA | 10,610 | 6,145 | 16,707 | 7,149 | 14,815 | |
| Amortization and depreciation | -1,476 | -1,148 | -2,816 | -2,575 | -5,327 | |
| EBIT | 9,134 | 4,997 | 13,891 | 4,574 | 9,488 | |
| Financial revenue | 5 | 473 | 1,849 | 564 | 1,859 | 3,070 |
| Financial expenses | 5 | -8,994 | -1,633 | -14,535 | -2,738 | -10,585 |
| Net financial items | -8,521 | 216 | -13,971 | -879 | -7,515 | |
| Profit/(loss) before tax | 613 | 5,213 | -80 | 3,696 | 1,974 | |
| Tax expense | -442 | -582 | -744 | -718 | 611 | |
| Net profit/-loss from continued operations | 172 | 4,631 | -825 | 2,977 | 2,585 | |
| Net profit/-loss to minority interest | -83 | 0 | 342 | 0 | -32 | |
| Net profit/-loss to equity holders | 254 | 4,631 | -1,167 | 2,977 | 2,617 | |
| Earnings per share: basic | 0.002 | 0.004 | -0.008 | 0.002 | 0.002 | |
| Earnings per share: diluted | 0.001 | 0.004 | -0.007 | 0.002 | 0.002 | |
| For the quarter end | YTD | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 June 2018 |
30 June 2017 |
30 June 2018 |
30 June 2017 |
Full year 2017 |
| Net profit/-loss for the period net of income tax | 172 | 4,631 | -825 | 2,977 | 2,585 |
| Items that will not be classified subsequently to profit or loss | |||||
| Remeasurement of pension plans | 0 | 0 | 0 | 0 | 8 |
| Items that may be classified subsequently to profit or loss | |||||
| Foreign currency translation differences - foreign operations | -500 | -4,288 | -896 | -5,307 | -3,702 |
| Other comprehensive income/ -loss for the period net of income tax |
-500 | -4,288 | -896 | -5,307 | -3,694 |
| Total comprehensive income for the period attributable to: | -328 | 343 | -1,721 | -2,330 | -1,109 |
| - Equity holders of the parent company | -246 | 343 | -2,063 | -2,330 | -1,077 |
| - Non-Controlling interests | -83 | 0 | 342 | 0 | -32 |
| EUR thousand | Note | 30 June 2018 |
30 June 2017 |
31 Dec 2017 |
|---|---|---|---|---|
| ASSETS | ||||
| Intangible non-current assets | ||||
| Intangible assets | 19,300 | 18,254 | 18,359 | |
| Goodwill | 54,470 | 54,294 | 53,582 | |
| Deferred tax asset | 6,612 | 1,590 | 3,945 | |
| Tangible non-current assets | ||||
| Property, Plant and equipment | 2,533 | 2,442 | 2,499 | |
| Financial non-current assets | ||||
| Purchased debt portfolios | 6 | 358,505 | 233,419 | 317,150 |
| Other long term receivables | 1,228 | 1,169 | 1,065 | |
| Other long term investments | 170 | 221 | 191 | |
| Total non-current assets | 442,818 | 311,390 | 396,791 | |
| Current assets | ||||
| Stock of secured assets REO's | 7 | 180,528 | 8,070 | 154,101 |
| Current receivables | 9,454 | 7,147 | 8,047 | |
| Other current assets | 6,073 | 7,434 | 13,070 | |
| Restricted cash | 37 | 1,800 | 1,878 | |
| Cash and cash equivalents | 121,001 | 19,557 | 48,604 | |
| Total current assets | 317,092 | 44,008 | 225,700 | |
| TOTAL ASSETS | 759,910 | 355,398 | 622,491 |
| EUR thousand | Note | 30 June 2018 |
30 June 2017 |
31 Dec 2017 |
|---|---|---|---|---|
| EQUITY AND LIABILITIES | ||||
| Equity attributable to equity holders of the parent | ||||
| Share Capital | 8 | 80,842 | 66,814 | 79,377 |
| Other paid-in equity | 198,908 | 142,416 | 196,298 | |
| Retained earnings profit/-Loss | -19,884 | -15,279 | -15,630 | |
| Reserves | -883 | -1,592 | 13 | |
| Non-controlling interests | 55,244 | 0 | 31,776 | |
| Total equity | 314,226 | 192,360 | 291,833 | |
| Non-current liabilities | ||||
| Non-current interest bearing debt | 9 | 369,503 | 23,486 | 237,571 |
| Deferred tax liabilities | 5,336 | 6,488 | 5,887 | |
| Other non-current liabilities | 3,702 | 3,418 | 3,002 | |
| Total non-current liabilities | 378,541 | 33,392 | 246,459 | |
| Current liabilities | ||||
| Accounts payables | 2,136 | 3,974 | 4,029 | |
| Current portion of non-current borrowings | 9 | 37,131 | 104,749 | 61,189 |
| Taxes Payable | 4,182 | 58 | 1,376 | |
| Other current liabilities | 23,694 | 20,866 | 17,603 | |
| Total current liabilities | 67,143 | 129,646 | 84,198 | |
| TOTAL EQUITY AND LIABILITIES | 759,910 | 355,398 | 622,491 |
| 30 June 30 June 30 June 30 June Full year EUR thousand Note 2018 2017 2018 2017 2017 Operating actitvities Profit before tax 613 5,213 -80 3,696 1,974 Taxes paid -906 -757 -2,181 -1,419 -1,531 Adjustments for: - - Finance income and expense 8,521 -216 13,971 878 7,514 - Amortization of debt portfolios 12,310 3,290 17,524 5,571 14,957 - Cost of sales stock of secured assets 17,353 - 23,476 - 1,445 - Depreciation and amortization 1,148 2,817 2,575 5,327 1,476 - Calculated cost of employee share options 293 384 949 671 1,806 - Unrealised foreign currency (gains)/losses - -809 - - -710 Change in Working capital 4,511 -1,100 9,217 -3,335 -8,099 Net cash flows operating activities 43,461 7,962 64,884 8,637 23,393 Investing actitvities Purchase of debt portfolios and REO's 6, 7 -63,474 -112,102 -112,894 -112,102 -355,202 Investment in subsidiaries - -100 - -1,409 -1,409 Purchase of intangible and tangible assets -2,296 -861 -3,792 -1,445 -5,401 Interest received - 27 - 36 96 Net cash flows investing activities -65,770 -113,036 -116,686 -114,745 -361,741 Financing actitvities Proceeds from borrowings 9 19,190 76,057 215,085 76,057 277,752 Repayment of debt 9 -82,015 -13,076 -104,922 -20,234 -42,485 Interest paid -9,868 -1,311 -11,498 -2,062 -5,315 Loan fees paid 9 -81 -646 -2,559 -1,978 -10,188 Proceeds from share issue 3,147 11,416 3,147 11,416 75,274 Proceeds from non-controlling interests 15,250 - 23,125 - 31,808 Share issue costs -9 -285 -21 -285 -1,885 Net cash flows financing activities -54,386 72,155 122,357 62,914 324,961 Currency translation - - - - -117 Net change in cash and cash equivalents -76,695 -32,919 70,555 -43,194 -13,387 Cash and cash equivalents at the beginning of period 197,732 54,276 50,482 64,551 63,986 Cash and cash equivalents at end of period 121,037 21,357 121,037 21,357 50,482 |
For the quarter end | YTD | ||
|---|---|---|---|---|
| Equity related to the shareholders of the Parent Company | |||||||
|---|---|---|---|---|---|---|---|
| Restricted Equity |
Non restricted | ||||||
| EUR thousand | Share capital |
Other paid in capital |
Exchange differences |
Retained earnings and profit for the year |
Total | Non controlling interest |
Total Equity |
| Closing balance on 31 December 2016 | 64,198 | 262,127 | 3,714 | -147,151 | 182,888 | 182,888 | |
| Balance on 1 January 2017 | 64,198 | 262,127 | 3,714 | -147,151 | 182,888 | 182,888 | |
| Allocation of result from discontinued operations 1) | -128,896 | 128,896 | 0 | 0 | |||
| Net result for the period | 2,617 | 2,617 | -32 | 2,585 | |||
| Comprehensive Profit/-loss Foreign currency translation differences - foreign operations |
-3,702 | -3,702 | -3,702 | ||||
| Comprehensive Profit/-loss Remeasurement of pension plans |
8 | 8 | 8 | ||||
| Total comprehensive result for the period | 0 | 0 | -3,702 | 2,625 | -1,077 | -32 | -1,109 |
| Minority of newly consolidated companies | 31,807 | 31,807 | |||||
| New Share issues, May | 2,617 | 8,799 | 11,417 | 11,417 | |||
| New Share issues, August | 3,957 | 16,223 | 20,180 | 20,180 | |||
| New Share issues, September | 8,605 | 35,073 | 43,678 | 43,678 | |||
| Costs related to fund-raising | -1,885 | -1,885 | -1,885 | ||||
| Share based payment | 1,806 | 1,806 | 1,806 | ||||
| Grant of Warrants 2) | 3,051 | 3,051 | 3,051 | ||||
| Closing balance on 31 December 2017 | 79,377 | 196,298 | 13 | -15,630 | 260,057 | 31,776 | 291,833 |
| Balance on 1 January 2018 | 79,377 | 196,298 | 13 | -15,630 | 260,057 | 31,776 | 291,833 |
| Costs related to share issues | -21 | -21 | -21 | ||||
| Share based payment | 949 | 949 | 949 | ||||
| Comprehensive Profit/(Loss) Foreign currency translation differences - foreign operations |
-896 | -896 | -896 | ||||
| Adjustment on initial application of IFRS 15 (net of tax) |
-3,087 | -3,087 | -3,087 | ||||
| Net capital increase/decrease of NCI | 23,126 | 23,126 | |||||
| Result of the period | -1,167 | -1,167 | 342 | -825 | |||
| New Share issues (exercise of share options) | 1,465 | 1,682 | 3,147 | 3,147 | |||
| New Share issues | 0.05 | 0 | 0 | ||||
| Closing balance on 30 June 2018 | 80,842 | 198,908 | -883 | -19,884 | 258,982 | 55,244 | 314,226 |
1) Ref. resolution in Annual general meeting on 31 May 2017.
2) 130 million American style warrants in Axactor to Geveran with an exercise price of NOK 3,25 have been granted. The warrants expire after 2 years.
| For the quarter end | YTD | |||||
|---|---|---|---|---|---|---|
| EUR thousand | Note | 30 June 2018 |
30 June 2017 |
30 June 2018 |
30 June 2017 |
Full year 2017 |
| Other operating income | 209 | 3,023 | 1,331 | 3,542 | 5,809 | |
| Operating expenses | -1,156 | -2,094 | -2,746 | -3,769 | -7,380 | |
| Personnel expenses | ||||||
| EBITDA | -948 | 929 | -1,415 | -227 | -1,571 | |
| Amortization and depreciation | 0 | 0 | 0 | 0 | 0 | |
| EBIT | -948 | 929 | -1,415 | -227 | -1,571 | |
| Financial revenue | 3,679 | 1,776 | 6,521 | 2,127 | 5,347 | |
| Financial expenses | -3,615 | -117 | -4,682 | -117 | -4,971 | |
| Net financial items | 64 | 1,659 | 1,839 | 2,009 | 376 | |
| Profit/-loss before tax | -883 | 2,588 | 424 | 1,783 | -1,195 | |
| Tax expense | 0 | 0 | 0 | 0 | 0 | |
| Net profit/-loss to equity holders | -883 | 2,588 | 424 | 1,783 | -1,195 |
| EUR thousand | 30 June Note 2018 |
30 June 2017 |
31 Dec 2017 |
|---|---|---|---|
| ASSETS | |||
| Intangible non-current assets | |||
| Investment in subsidiaries and joint ventures | 150,913 | 132,697 | 129,562 |
| Loans to group companies | 259,298 | 60,906 | 135,602 |
| Other long-term receivables | 170 | 221 | 170 |
| Total non-current assets | 410,382 | 193,824 | 265,334 |
| Current assets | |||
| Short-term intercompany receivables | 7,004 | 3,488 | 3,238 |
| Other current assets | 1,976 | 70 | 2,838 |
| Restricted cash | 0 | 415 | 406 |
| Cash and cash equivalents | 12,723 | 8,795 | 5,235 |
| Total current assets | 21,702 | 12,768 | 11,717 |
| TOTAL ASSETS | 432,084 | 206,592 | 277,050 |
| EQUITY AND LIABILITIES | |||
| Restricted equity | |||
| Share Capital | 80,842 | 66,814 | 79,377 |
| Statutory reserve | 241 | 240 | 240 |
| Total restricted equity | 81,082 | 67,054 | 79,617 |
| Non-restricted equity | |||
| Share premium reserve | 198,912 | 142,420 | 196,304 |
| Retained earnings | -718 | -10,463 | 476 |
| Result for the period | 424 | 1,783 | -1,195 |
| Total non-restricted equity | 198,618 | 133,739 | 195,585 |
| TOTAL SHAREHOLDERS EQUITY | 279,701 | 200,794 | 275,202 |
| LIABILITIES | |||
| Non-current liabilities | 148,517 | 0 | 0 |
| Non-current interest bearing debt | 0 | 1,995 | 0 |
| Other long term liabilities | 0 | 1,332 | 0 |
| Total non-current liabilities | 148,517 | 3,327 | 0 |
| Current liabilities | |||
| Accounts payables | 66 | 589 | 187 |
| Short-term intercompany liabilities | 3,546 | 1,597 | 1,531 |
| Other current liabilities | 255 | 285 | 131 |
| Total current liabilities | 3,867 | 2,472 | 1,849 |
| TOTAL EQUITY AND LIABILITIES | 432,084 | 206,592 | 277,050 |
| Restricted Equity Non-restricted Equity |
|||||||
|---|---|---|---|---|---|---|---|
| EUR thousand | Share capital | Statutory reserve |
Share premium reserve |
Exchange differences |
Retained earnings |
Result of the period |
Total |
| Balance on 1 January 2017 | 64,197 | 240 | 262,131 | -23 | -132,845 | 4,449 | 198,149 |
| Transfer of prior years net result | - | - | - | 4,449 | -4,449 | 0 | |
| Allocation of result from discontinued operations 1) |
-128,896 | 128,896 | 0 | ||||
| New Share issues, May | 2,617 | 8,799 | 11,416 | ||||
| New Share issues, August | 3,957 | 16,223 | 20,180 | ||||
| New Share issues, September | 8,605 | 35,073 | 43,678 | ||||
| Costs related to fund-raising | -1,885 | -1,885 | |||||
| Share based payment | - | 1,806 | - | 1,806 | |||
| Grant of Warrants 2) | 3,051 | 3,051 | |||||
| Comprehensive Profit/(Loss) Foreign currency translation differences - foreign operations |
0 | ||||||
| Result of the period | -1,195 | -1,195 | |||||
| Closing balance on 31 December 2017 | 79,377 | 240 | 196,302 | -23 | 500 | -1,194 | 275,202 |
| Balance on 1 January 2018 | 79,377 | 240 | 196,302 | -23 | 500 | -1,194 | 275,202 |
| Transfer of prior years net result | -1,194 | 1,194 | 0 | ||||
| Costs related to share issues | -21 | -21 | |||||
| Share based payment | 949 | 949 | |||||
| Result of the period | 424 | 424 | |||||
| New Share issues (exercise of share options) | 1,465 | 1,682 | 0 | 3,147 | |||
| New Share issues | 0.05 | ||||||
| Closing balance on 30 June 2018 | 80,842 | 240 | 198,912 | -23 | -694 | 424 | 279,701 |
1) Ref. resolution in Annual general meeting on 31 May 2017.
2) 130 million American style warrants in Axactor to Geveran with an exercise price of NOK 3,25 have been granted. The warrants expire after 2 years.
| EUR thousand | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|
| Number of outstanding shares at beginning of reporting period 1) |
Number | 1,516,488,769 | 1,226,488,769 | 596,614,360 | 90,809,360 | 18,174,922 |
| New share issue 4) | Number | 27,992,251 | 290,000,000 | 629,874,409 | 505,805,000 | 72,634,438 |
| Number of outstanding shares at the end of reporting period 3) |
Number | 154,448,102 | 1,516,488,769 | 1,226,488,769 | 596,614,360 | 90,809,360 |
| Average number of shares 1) 3) | Number | 147,190,818 | 1,327,030,991 | 849,072,460 | 133,687,416 | 29,804,775 |
| Operating result, for continued operations | TEUR | 13,891 | 9,488 | -9,614 | -3,360 | -1,214 |
| Result after tax | TEUR | -825 | 2,585 | -11,169 | -17,810 | -5,055 |
| Operating result per share | EUR | 0.094 | 0.007 | -0.011 | -0.02 | -0.15 |
| Result after financial items per share | EUR | -0.001 | 0.001 | -0.014 | -0.05 | -0.15 |
| Result per share after tax | EUR | -0.006 | 0.002 | -0.013 | -0.13 | -0.17 |
| Shareholders equity per share before dilution 1) | EUR | 1.759 | 0.220 | 0.238 | 0.09 | 0.19 |
| Dividend 2) | TEUR | - | - | - | 59.69 | |
| Price per share at the end of reporting period | NOK | 24.32 | 2.90 | 2.650 | 2.00 | 1.42 |
1) The average number of shares during the 12 m period 2013 has been adjusted for the reversed split as from the beginning of the year.
2) Total dividend. Not per share.
3) After effect of reverse split 31 May 2018. Ration 10 old shares give 1 new share.
4) Before reverse split.
The Parent Company Axactor AB (Company) is a company domiciled in Sweden. These condensed consolidated interim statements ("interim financial statements") comprise the Company and its subsidiaries (together referred to as "the Group"). The group is primery involved in debt management, specialising on both purchasing and collection on own portfolios and providing collection services for 3rd party owned portfolio. The activities are further described in note 3.
The interim report has been prepared in accordance with IAS 34 and recommentations RFR 1 and the Swedish Financial Reporting Board (RFR), and recommendation RFR 2 and the Annual Accounts Act with regards to the Parent Company. The accounting principles applied correspond to those described in the Annual Report for the Financial Year 2017. This interim report does not contain all the information and disclosures available in the annual report and the interim report should be read together with the Annual Report for the Financial Year 2017.
In preparing these interim financial statements, management has made judgements and estimates that effects the application and accounting policies and the reported amounts of assets and lliabilities, income and expenses. Actual result may differ from these estimates. Critical Accounting estimates and judgements in terms of accounting policies are more comprehensive discussed in the Company Annual report for the Financial Year 2017, which is available on Axactors website: www. axactor.com.
The significant judgements made by managements applying the Group's accounting policies and the key resources of estimation uncertainty were the same as those described in the last annual financial statements, except for new significant judgements of estimation uncertainty related to the application of IFRS 15, which are described below.
2018 is the first year of Group's financial statements where IFRS 15 and IFRS 9 have been applied. The treatment of the NPL portfolios under IFRS 9 will remain as according to IAS 39.
The Group adopted IFRS 15 using the modified retrospective method with effect of applying this standard from 1. January 2018 without presenting 2017 restated.
The following table summarises the impact, net of tax, of transision to IFRS 15 on retained earnings and NCI at 1. January 2018:
| EUR thousand | Total |
|---|---|
| Retained earnings | |
| Accrued revenue | 3,304 |
| Related tax | 217 |
| Impact at 1 January 2018 | 3,087 |
| Non-controlling interests | |
| Impact | - |
Axactor's regular business activities entail exposure to various types of risk. The company manages such risks proactively and the board of directors regularly analyses its operations and potential risk factors and takes steps to reduce risk exposure. Axactor gives strong emphasis to quality assurance and has quality systems implemented, or under implementation in line with the requirements applicable to its business operations. The risks include but are not limited to credit risk, risk inherent in purchased debt, interst rate risk, regulatory risk, liquidity risks and financing risks. For a more elaborate discussion on the aforementioned risks one is referred to the Company's Annual Report for the Financial Year 2017, which is available on Axactor website: www.axactor.com. (note 3 of the Group financial statement).
Axactor delivers credit management services and the company's revenue is derived from the following four operating segments: Non-Performing Loans (NPL), Real Estate Owned (REO), Third Party Collection (3PC) and Accounts Receivable Management (ARM). Axactor's operations are managed through these operating segments.
The NPL segment invests in portfolios of non-performing loans. Subsequently, the outstanding debt is collected through either amicable or legal proceedings.
The REO segment invests in real estate assets held for sale.
The 3PC segments main focus is to perform debt collection services on behalf of third-party clients. They apply both amicable and legal proceedings in order to collect the non-performing loans, and typically receive a commission for these services. They also help creditors to prepare documentation for future legal proceedings against debtors, and for this they typically receive a fixed fee.
ARM handles claims between the invoice date and the default date. The customer issues an invoice to the debtor, and Axactor ARM monitors the claim and makes sure the payment is made in due time. If a debtor defaults on the payment, the claim is typically transferred to 3PC for debt collection services.
Axactor reports its business through reporting segment which corresponds to the operating segments. Segment profitability and country profitability are the two most important dimensions when making strategic priorities and deciding where to allocate the Groups resources.
Segment revenue reported below represents revenue generated from external customers. There were no intersegment sales in the current year.
The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 1. Segment contribution margin represents contribution margin earned by each segment without allocation of management fee, central administration costs, other gains and losses as well as finance costs. The measurement basis of the performance of the segment is the segment's contribution margin.
| EUR thousand | NPL | REO | 3PC 1) | ARM | Eliminations/ Not allocated |
Total |
|---|---|---|---|---|---|---|
| Collections on own portfolios | 31,369 | 21,883 | - | - | - | 53,252 |
| Other revenue | - | - | 11,787 | 1,657 | - | 13,444 |
| Portfolio amortization and revaluation | -12,310 | - | - | - | - | -12,310 |
| Net revenue | 19,059 | 21,883 | 11,787 | 1,657 | - | 54,386 |
| REO cost of sales | - | -17,353 | - | - | - | -17,353 |
| Other direct operating expenses | -5,730 | -2,364 | -8,256 | -736 | - | -17,085 |
| Contribution margin | 13,330 | 2,166 | 3,531 | 922 | - | 19,949 |
| Local SG&A, IT and corporate cost | -9,339 | -9,339 | ||||
| EBITDA | -9,339 | 10,610 | ||||
| Total Opex | -5,730 | -19,717 | -8,256 | -736 | -9,339 | -43,776 |
| CM1 margin | 69.9 % | 9.9 % | 30.0 % | 55.6 % | na | 36.7 % |
| EBITDA margin | 19.5 % | |||||
| Dopex / Gross revenue | 18.3 % | 90.1 % | 70.0 % | 44.4 % | na | 51.6 % |
| Local SG&A, IT and corporate cost / Gross revenue |
14.0 % |
1) External revenue.
| EUR thousand | NPL | 3PC 1) | ARM | Eliminations/ Not allocated |
Total |
|---|---|---|---|---|---|
| Collections on own portfolios | 14,247 | 24,882 | |||
| Other revenue | 9,100 | 1,535 | 2,040 2) | 2,040 | |
| Portfolio amortization and revaluation | -3,290 | -3,290 | |||
| Net revenue | 10,957 | 9,100 | 1,535 | 2,040 | 23,632 |
| REO cost of sales | - | - - |
- | - | - |
| Other direct operating expenses | -3,078 | -6,564 | -819 | - | -10,461 |
| Contribution margin | 7,879 | 2,536 | 716 | 2,040 | 13,172 |
| Local SG&A, IT and corporate cost | -7,026 | -7,026 | |||
| EBITDA | -4,986 | 6,145 | |||
| Total Opex | -3,078 | -6,564 | -819 | -7,026 | -17,486 |
| CM1 margin | 71.9 % | 27.9 % | 46.6 % | 100.0 % | 55.7 % |
| EBITDA margin | 26.0 % | ||||
| Dopex / Gross revenue | 21.6 % | 72.1 % | 53.4 % | 0.0 % | 42.0 % |
| Local SG&A, IT and corporate cost / Gross revenue |
28.2 % | ||||
1) External revenue.
2) Settlement former BoD.
| EUR thousand | NPL | REO | 3PC 1) | ARM | Eliminations/ Not allocated |
Total |
|---|---|---|---|---|---|---|
| Collections on own portfolios | 52,223 | 30,555 | - | - | - | 82,778 |
| Other revenue | - | - | 21,741 | 3,191 | - | 24,933 |
| Portfolio amortization and revaluation | -17,524 | - | - | - | - | -17,524 |
| Net revenue | 34,698 | 30,555 | 21,741 | 3,191 | - | 90,186 |
| REO cost of sales | - | -23,476 | - | - | - | -23,476 |
| Direct operating expenses | -10,955 | -3,651 | -16,305 | -1,476 | - | -32,387 |
| Contribution margin | 23,743 | 3,428 | 5,436 | 1,715 | - | 34,323 |
| Local SG&A, IT and corporate cost | -17,616 | -17,616 | ||||
| EBITDA | -17,616 | 16,707 | ||||
| Total Opex | -10,955 | -27,127 | -16,305 | -1,476 | -17,616 | -73,479 |
| CM1 margin | 68.4 % | 11.2 % | 25.0 % | 53.7 % | na | 38.1 % |
| EBITDA margin | 18.5 % | |||||
| Dopex / Gross revenue | 21.0 % | 88.8 % | 75.0 % | 46.3 % | na | 51.9 % |
| Local SG&A, IT and corporate cost / Gross revenue |
16.4 % |
1) External revenue.
| EUR thousand | NPL | 3PC 1) | ARM | Eliminations/ Not allocated |
Total |
|---|---|---|---|---|---|
| Collections on own portfolios | 24,767 | - | - | -30 | 44,591 |
| Other revenue | - | 16,811 | 3,042 | 2,040 2) | 2,040 |
| Portfolio amortization and revaluation | -5,571 | - | - | - | -5,571 |
| Net revenue | 19,197 | 16,811 | 3,042 | 2,010 | 41,060 |
| REO cost of sales | - | - | - | - | - |
| Other direct operating expenses | -6,051 | -12,405 | -1,642 | - | -20,098 |
| Contribution margin | 13,146 | 4,406 | 1,400 | 2,010 | 20,963 |
| Local SG&A, IT and corporate cost | -13,814 | -13,814 | |||
| EBITDA | -11,804 | 7,149 | |||
| Total Opex | -6,051 | -12,405 | -1,642 | -13,814 | -33,912 |
| CM1 margin | 68.5 % | 26.2 % | 46.0 % | 100.0 % | 51.1 % |
| EBITDA margin | 17.4 % | ||||
| Dopex / Gross revenue | 24.4 % | 73.8 % | 54.0 % | 0.0 % | 43.1 % |
| Local SG&A, IT and corporate cost / Gross revenue |
29.6 % |
1) External revenue.
2) Settlement former BoD.
| For the quarter end | YTD | |||||
|---|---|---|---|---|---|---|
| EUR thousand | 30 June 2018 |
30 June 2017 |
30 June 2018 |
30 June 2017 |
Full year 2017 |
|
| Germany | 4,713 | 4,702 | 9,317 | 9,178 | 19,614 | |
| Italy | 1,642 | 2,020 | 3,958 | 4,516 | 8,161 | |
| Norway | 3,653 | 2,625 | 6,819 | 5,548 | 11,015 | |
| Spain | 41,920 | 8,926 | 65,323 | 15,635 | 40,037 | |
| Sweden | 2,458 | 3,320 | 4,768 | 4,142 | 8,918 | |
| Other revenue, group | 2,040 | 2,040 | 2,040 | |||
| Total net revenue | 54,386 | 23,632 | 90,186 | 41,060 | 89,785 |
Portfolios can be acquired in another country than the resident of the debtor. The infomation in the above table is based on the localtion of the customers/debtors.
| Q2 2018 | YTD 2018 | |||||
|---|---|---|---|---|---|---|
| EUR thousand | NPL | REOs | Total | NPL | REOs | Total |
| Yield | 16,061 | 16,061 | 34,466 | - | 34,466 | |
| Revaluation | 2,998 | - | 2,998 | 233 | - | 233 |
| REOs | 21,883 | 21,883 | - | 30,555 | 30,555 | |
| Net Revenue | 19,059 | 21,883 | 40,943 | 34,698 | 30,555 | 65,254 |
| EUR thousand | NPL | REOs | Total |
|---|---|---|---|
| Yield | 44,731 | - | 44,731 |
| Revaluation | -1,126 | - | -1,126 |
| REOs | - | 2,282 | 2,282 |
| Net Revenue | 43,605 | 2,282 | 45,887 |
| For the quarter end | YTD | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 June 2018 |
30 June 2017 |
30 June 2018 |
30 June 2017 |
Full year 2017 |
| Financial revenue | |||||
| Interest on bank deposits | 2 | 27 | 2 | 37 | 109 |
| Exchange gains | - | 1,626 | - | 1,626 | 2,704 |
| Exchange gains realised | 283 | - | 288 | - | |
| Exchange gains unrealised | 190 | 190 | - | ||
| Other financial income | -3 | 206 | 83 | 206 | 257 |
| Total financial revenue | 473 | 1,859 | 564 | 1,869 | 3,070 |
| Financial expenses | |||||
| Interest expenses on borrowings | -8,369 | -1,482 | -13,182 | -2,533 | -6,942 |
| Exchange losses | - | -105 | - | -158 | -3,144 |
| Exchange losses realised | -211 | - | -218 | - | |
| Net unrealised Exchange losses | 99 | - | - | - | |
| Other financial expenses | -513 | -57 | -1,135 | -57 | -498 |
| Total financial expenses | -8,994 | -1,644 | -14,535 | -2,748 | -10,585 |
| Net finance | -8,521 | 215 | -13,971 | -879 | -7,515 |
| EUR thousand | 30 June 2018 | 30 June 2017 | 31 Dec 2017 |
|---|---|---|---|
| Acquisition cost, opening balance | 337,391 | 131,729 | 131,729 |
| Purchase | 64,264 | 111,072 | 206,446 |
| Disposals | -7,246 | -132 | |
| Classification | 2,998 | ||
| Translation differences | -5,412 | -63 | -652 |
| Accumulated acquisition cost | 385,999 | 242,738 | 337,391 |
| Amortization & Revalution, opening balance | -20,242 | -3,744 | -3,744 |
| Amortization and re-valuation of the year 2) | -17,254 | -5,575 | -14,949 |
| disposals | 7,246 | 55 | |
| Classification | 2,998 | ||
| Impairment | -628 | ||
| Translation differences | 655 | -1,603 | |
| Accumulated amortization, closing balance | -27,494 | -9,319 | -20,240 |
| Net book value | 358,505 | 233,419 | 317,150 |
| EUR thousand | 30 June 2018 | 30 June 2017 | 31 Dec 2017 |
|---|---|---|---|
| Acquisition cost, opening balance | 154,101 | - | - |
| Purchase | 49,903 | 8,070 | 155,546 |
| Cost of sold secured assets | -23,476 | -1,445 | |
| Other | |||
| Total | 180,528 | 8,070 | 154,101 |
| Number of assets | 6,161 | 600 | 4,800 |
| Number of shares | Share capital (EUR thousand) |
|
|---|---|---|
| At 1 January 2015 | 90,809,360 | 4,753,173 |
| New share issues | 505,805,000 | 26,475,007 |
| At 1 January 2016 | 596,614,360 | 31,228,180 |
| New share issues, February | 59,600,000 | 3,119,602 |
| New Share issues, May | 220,400,000 | 11,536,247 |
| Acquisition subsidiary, IKAS group May | 49,033,589 | 2,566,532 |
| Acquisition subsidiary, CS Union June | 20,840,820 | 1,090,857 |
| New share issues, October | 71,723,893 | 3,754,195 |
| New share issues, November | 158,276,107 | 8,284,539 |
| New share issues, December | 50,000,000 | 2,617,116 |
| At 1 January 2017 | 1,226,488,769 | 64,197,268 |
| New share issues, May | 50,000,000 | 2,617,116 |
| At 30 Jun 2017 | 1,276,488,769 | 66,814,384 |
| New share issues, August | 75,600,000 | 3,957,000 |
| New share issues, September | 164,400,000 | 8,605,077 |
| At 1 January 2018 | 1,516,488,769 | 79,376,461 |
| Exercise of share options, April | 27,992,250 | 1,465,114 |
| New share issues, May | 1 | 0 |
| At 31 May 2018 | 1,544,481,020 | 80,841,575 |
| At 30 June 2018 - After reverse split 1:0 | 154,448,102 | 80,841,575 |
| Name | Shareholding | % Share |
|---|---|---|
| GEVERAN TRADING CO L | 21,538,613 | 13.9 % |
| VERDIPAPIRFONDET DNB | 10,670,491 | 6.9 % |
| TVENGE TORSTEIN INGV | 7,000,000 | 4.5 % |
| FERD AS | 5,335,139 | 3.5 % |
| SONGA TRADING INC | 4,742,346 | 3.1 % |
| VERDIPAPIRFONDET ALF | 3,555,376 | 2.3 % |
| VERDIPAPIRFONDET ALF | 2,890,144 | 1.9 % |
| GVEPSEBORG AS | 2,036,494 | 1.3 % |
| VPF NORDEA NORGE VER | 2,013,102 | 1.3 % |
| VERDIPAPIRFONDET DEL | 1,809,880 | 1.2 % |
| STATOIL PENSJON | 1,788,432 | 1.2 % |
| ARCTIC FUNDS PLC | 1,720,554 | 1.1 % |
| ALPETTE AS | 1,661,643 | 1.1 % |
| NORDNET LIVSFORSIKRI | 1,548,881 | 1.0 % |
| VERDIPAPIRFONDET ALF | 1,491,051 | 1.0 % |
| JPMORGAN CHASE BANK, | 1,463,311 | 0.9 % |
| PECUNIA FORVALTNING | 1,390,000 | 0.9 % |
| CITIBANK, N.A. | 1,285,246 | 0.8 % |
| VPF NORDEA KAPITAL | 1,214,748 | 0.8 % |
| MARTIN IBEAS DAVID | 1,166,725 | 0.8 % |
| LOPEZ SANCHEZ ANDRES | 1,166,725 | 0.8 % |
| TVENGE ØYSTEIN ERLIN | 1,075,000 | 0.7 % |
| LATINO INVEST AS | 1,030,000 | 0.7 % |
| VPF NORDEA AVKASTNIN | 1,027,387 | 0.7 % |
| DNB NOR MARKETS, AKS | 974,105 | 0.6 % |
| VARDFJELL AS | 891,401 | 0.6 % |
| ELENA AS | 891,401 | 0.6 % |
| RANGNES ENDRE | 864,000 | 0.6 % |
| INTELCO CONCEPT AS | 850,000 | 0.6 % |
| KLOTIND AS | 791,948 | 0.5 % |
| Total 30 largest shareholders | 85,884,143 | 55.61 % |
| Other shareholders | 68.563.959 | 44.39 % |
| Total number of shares | 154,448,102 | 100.00 % |
| Total number of shareholders | 10,120 |
| Name | Shareholding | % Share |
|---|---|---|
| GEVERAN TRADING CO LTD 1) | 21,538,613 | 13.9 % |
| ALPETTE AS 2) | 1,661,643 | 1.1 % |
| LOPEZ SANCHEZ, ANDRES 3) | 1,166,725 | 0.8 % |
| MARTIN IBEAS, DAVID 3) | 1,166,725 | 0.8 % |
| LATINO INVEST AS 4) | 1,030,000 | 0.7 % |
| ENDRE RANGNES 2) | 864,000 | 0.6 % |
| BANCA SISTEMA S.P.A 5) | 604,504 | 0.4 % |
| ODDGEIR HANSEN 6) | 576,000 | 0.4 % |
| FARSTAD, SIV 6) | 281,000 | 0.2 % |
| ROBIN KNOWLES 6) | 121,887 | 0.1 % |
| BJØRN ERIK NESS 7) | 77,500 | 0.1 % |
| SCHNEIDER, SUSANNE LENE RANGNES 2) | 39,832 | 0.0 % |
| ANDERS GULBRANDSEN 8) | 16,975 | 0.0 % |
| LARS VALSETH 8) | 12,188 | 0.0 % |
| BENTE BROCKS 8) | 10,800 | 0.0 % |
| BRITA EILERTSTEN 7) | 10,000 | 0.0 % |
| BERGSJO AS 7) | 6,300 | 0.0 % |
1) Geveran Trading Co Ltd owns 50% of Luxco Invest1 S.A and Reolux Holding S.à.r.l., companies controlled by Axactor Group.
2) CEO/Related to the CEO of Axactor AB
3) Member of the executive management team of Axactor AB and former owner of ALD, Spain
4) Related to the CFO of Axactor AB
5) Banca Sistema S.P.A. owns 10% of the shares in Axactor Italy Srl, a company controlled by Axactor Group
6) Member of the executive management team of Axactor AB
7) Member of the Board of Directors of Axactor AB/controlleed by member of the Board of Directors of Axactor AB
8) Primary insider of Axactor AB
As from 31 May 2018 the shares in Axactor AB are traded ex reverse split, with the new ISIN and new face value. Ratio: 10 old shares give 1 new share. New ISIN: SE0011309319. New Face value: EUR 0.5234232.
| EUR thousand | Currency | Interest rate | Carrying amount | Year of maturity |
|---|---|---|---|---|
| Balance at 1 January 2018 | EUR / NOK 1) 3) | Variable | 298,760 | 2017-2022 |
| New issues | ||||
| Italian Banks 2) | EUR | 23,085 | 2018-2022 | |
| DnB/Nordea | EUR | 42,000 | 2020 | |
| Listed Bond Loan 4) | EUR | 150,000 | 2021 | |
| Repayments | ||||
| Italian Banks | EUR | -24,922 | ||
| DnB/Nordea | EUR | - | ||
| Other | EUR | -80,000 | ||
| Other movements | ||||
| Capitalized loan fees | -2,559 | |||
| Amortized loan fees on loans | 1,910 | |||
| Currency translations | -1,605 | |||
| Balance at 30 June 2018 | 406,635 |
1) The debt facility agreement with DNB Bank ASA and Nordea Bank AB is EUR 350 million, whereof 150 million are in the form of accordion options. The facility has final maturity 3 years after signing. The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Under the terms of this debt facility the group is required to comply with the following financial covenants: the Group NIBD Ratio < 3; the Portfolio Leverage Ratio < 60 % and Collection performance > 90 %
All material subsidiaries of the group are guarantors and have granted a share pledge and bank account pledge as part of the security package for this facility. Italian subsidiaries together with the co-Invest Vehicle in Luxembourg as well as the REO Holding company In Luxembourg are not a part of the agreement nor the security arrangement.
2) The facilities of the Italian banks relate to 11 different facilities and agreements with several Italian banks. Banca Sistema (which has a minority share of 10 % in the Italian subsidiary) is providing one of these facilities, and has granted a facility of EUR 29.5 million to finance further acquisitions of portfolios. The loan carries a variable interest rate based on the interbank rate with a margin. Some of the loans are secured with collaterals worth EUR 24 million.
3) Following the establishment of the co-investment partnership with Geveran, Notes in the amount of EUR 180 million has been issued, of which for EUR 150 million has been subscribed to by Sterna Finance, a company in the Geveran Group. The remainder has been subscribed to by Axactor AB. This consists of EUR 60 million in class A, deeply subordinated income sharing notes, subscribed by Axactor AB and Geveran (50/50) and EUR 120 million in class B, subordinated secured note, fully subscribed by Geveran. The maturity of these notes is 2022. Axactor repaid EUR 80 million of the 120 million facility to Sterna in Q2 2018, the notes can be redrawn in increments of 40 million. A waiver was given during Q1 related to financing of acquisitions of REO's (through Reolux Holding) . Corresponding waiver fee was 240 TEUR. This relates to the unused facility of DNB
4) In March 2018 Axactor AB successfully completed a EUR 150 million senior unsecured bond issue with maturity in June 2021. The bonds are listed on Oslo Exchange. The coupon rate is 3m EURIBOR + 700 bps pa. The following financial covenants: Interest coverage ratio: >4.0x (Pro-Forma Adjusted Cash EBITDA to net interest expenses); Leverage ratio: <4.0x (NIBD to Pro-Forma Adjusted Cash EBITDA); Net loan to value: <75% (NIBD to total book value all debt portfolios and REOs); Net secured loan to value: <65% (secured loans less cash to total book value all debt portfolios and REOs). Trustee: Nordic Trustee
| Quarterly Report - Q1 | 03.05.2018 |
|---|---|
| Quarterly Report - Q2 | 25.07.2018 |
| Quarterly Report - Q3 | 30.10.2018 |
| Annual General meeting | 04.05.2018 |
The company's annual report will be available on the company's website.
Axactor AB (publ) Hovslagargatan 5B, bottom floor 111 48 STOCKHOLM Sweden
Telephone: +46 8 402 28 00 [email protected] www.axactor.com
The shares of Axactor AB (publ.) are listed on the Oslo Stock Exchange, ticker symbol AXA.
Cautionary Statement: Statements and assumptions made in this document with respect to Axactor AB's ("Axactor") current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Axactor. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where Axactor operates; (ii) changes relating to the statistic information available in respect of the various debt collection projects undertaken; (iii) Axactor's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential partners, ventures and alliances, if any; (v) currency exchange rate fluctuations between the Euro and the currencies in other countries where Axactor or its subsidiaries operate. In the light of the risks and uncertainties involved in the debt collection business, the actual results could differ materially from those presented and forecast in this document. Axactor assumes no unconditional obligation to immediately update any such statements and/or forecasts.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.