Axactor ends 2019 with high growth and a significant margin expansion

Axactor continued on its profitable growth path in late 2019, reporting growth in all business segments for both the fourth quarter and the full year.

Gross revenues increased by 32% to EUR 99 million in the fourth quarter and by 54% to EUR 368 million for the full year. EBITDA increased by 22% to EUR 24 million in the fourth quarter and doubled to EUR 92 million for the full year, while cash EBITDA increased by 50% to EUR 67 million for the quarter and by 84% to EUR 251 million for the full year.

Profit before taxes was EUR 8.5 million for the quarter and EUR 32.6 million for the full year, while net income was EUR 6.5 million for the fourth quarter and EUR 21.0 million for 2019.

Gross revenues in the NPL segment (non-performing loans) increased by 54% to EUR 60.8 million in the fourth quarter and by 86% to EUR 217.1 million for the full year. The ERC (estimated remaining cash flow) on the NPL portfolios increased by 47% during the year to more than EUR 2 billion at the end of 2019.

"Axactor's efficient and scalable corporate structure is proving its value with a doubling of EBITDA and improved operating margins in 2019. We see increasingly attractive NPL investment opportunities in our markets and are pleased to have secured additional funds to continue our profitable growth strategy," said CEO Endre Rangnes of Axactor.

On 5 February the company raised NOK 517,5 million (EUR 51 million) in gross proceeds from a private placement of 30 million shares at a subscription price of NOK 17,25 per share. In the fourth quarter of 2019, the financing base was expanded by EUR 150 million by increasing a credit line in the form of two "accordion options" of EUR 75 million each with the Company's two main banks. One of the options was exercised in October.

Axactor invested EUR 95 million in the acquisition of NPL portfolios in the fourth quarter, bringing the total investment in 2019 to EUR 399 million. In 2020, the company aims to invest in NPL portfolios in the order of EUR 350-400 million.

Axactor Germany has made a significant contribution to the growth of the group.

"We are proud to be part of such a successful and fast-growing company. In Germany we have major growth targets for 2020. Among other things, we are relying on our new product in the area of accounts receivable management, "Axactor Paytrack", but we have also found numerous approaches to process optimization".

Steffen Fink, Country Manager, Axactor Germany

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