Highlights from the fourth quarter of 2017:
- Significant entry into the Spanish REO (Real Estate Owned) market, taking control of REOs valued at EUR 147 million in two transactions in partnership with Geveran..
- EUR 20 million deployed in NPL-portfolios in Italy, which represent Axactors largest quarterly portfolio investment in Italy.
- Concluded the refinancing of current facility with DNB and Nordea which increased the facility by nearly EUR 200 million to EUR 350 million, including EUR 150 million in accordion options.
- Gross Revenue of EUR 34.5 million (18.5)
- EBITDA of EUR 5.6 million (-1.2)
- Cash EBITDA at EUR 13.5 million (0.3)
- CAPEX deployment of EUR 234 million for the quarter
Axactor continues to grow the business and the financial results, in line with the stated ambitions. In the fourth quarter of 2017, Axactor achieved an EBITDA of EUR 5.6 million and Cash EBITDA of EUR 13.5 million. Gross revenue for the quarter ended record high at EUR 34.5 million, which is 87 % above the corresponding number for the same period in 2016, and represent a growth of 46 % compared to the third quarter of 2017.
During the quarter, Axactor made record high portfolio investments of EUR 234 million, bringing the total portfolio investments in 2017 to EUR 362 million. Axactor is already seeing results from the major portfolio purchases made in the second half of 2017.
The most important event in the fourth quarter was Axactor's entry in to the Spanish Real Estate Owned (REOs) segment, where EUR 147 million was invested in two transactions which also represents the first transactions in the partnership with Geveran Trading Co. The largest of the two transactions gave Axactor control of 75 % in two property companies owned by a large Spanish bank. In total, these two companies own more than 4.000 properties in Spain. The above amount includes the sellers 25% ownership of the SPVs.The REO investments already gives a positive contribution to Axactor´s financial results, and Axactor will continue to look for attractive investment opportunities in the REO segment, together with Geveran.
As promised in the third quarter report, Axactor continued to pursue unsecured and secured NPL portfolios in the fourth quarter of 2017. In total, Axactor deployed more than EUR 100 million all five countries where the company is present. EUR 20 million of this was invested in NPLs in Italy - which represent Axactor's largest portfolio investment in Italy to date.
Rapid growth requires sound financial capacity. In the fourth quarter, Axactor concluded the refinancing process of the current RCF (Revolving Credit Facility) with DNB Bank og Nordea, bringing the size of the facility to EUR 350 million, of which EUR 15o million is in the form of accordion options. In addition to this facility comes the EUR 80+40 loan million facility the company has available in the co-investment vehicle between Axactor and Geveran Trading Co.
Axactor is in a strong financial position, which opens up for higher gearing and more operational flexibility going forward.
In Axactor we are very ambitious and we have promised our shareholders significant growth from the start in 2015. The fourth quarter numbers show our ability to deliver in line with our high ambitions, carrying out several large transactions in a short period of time and thereby maintain a high rate of growth. After refinancing our RCF in December, we have an even stronger financial position which will ensure that we will continue to make portfolio investments and continue the growth story of Axactor, says CEO Endre Rangnes.
The REO market in Spain is remaining buoyant, particularly in Spain, where Axactor will continue to look for attractive investment opportunities together with partner Geveran Trading Co. Axactor has initiated discussions with several global banks with the purpose of increasing the investment capacity in this segment. The banks have experience and appetite for financing such transactions due to the portfolios high cash flow generation and short payback time.
The market for purchase of NPL portfolios also remains strong. Axactor see interesting opportunities in Spain, Italy and in the Nordics. The competition for NPLs remains robust and some of the price pressure we experienced in the fourth quarter of 2017 seems to continue in the first quarter of 2018.
For additional information, please contact:
Endre Rangnes, CEO Axactor
Mobile phone: +47 4822 1111
Geir Johansen, CFO & Investor Relations, Axactor
Mobile phone: +47 4771 0451
Axactor Group specializes in both Debt Collection and Debt
Purchasing across several countries, with operations in Italy,Germany, Norway, Sweden and Spain. The company has a Nordic base and an ambitious Pan-European growth strategy, which targets the market for non-performing loans (NPL) in Europe. This market is estimated to be about 1,500 billion euros across Europe providing significant opportunities for Axactor's future expansion. Axactor has approximately 900 employees.