Strengthening of management & acquisition in
Highlights second quarter 2023
- Cash at the end of
June 2023 wasEUR 32.6m (52.6 atDecember 2022 ) -
Gross ERC at the end of
June 2023 wasEUR 256m (284 atDecember 2022 ) -
Sale of 5% stake in
Borgosesia S.p.A (pending regulatory approval) and associated NPL portfolio due to continuous active asset management -
Gross collections amounted to
EUR 20.5m (15.8)* -
Net collections amounted to
EUR 18.6m (13.8)* -
Cash EBITDA amounted to
EUR 11.7m (10.9)* -
Net loss for the period of
EUR 1.7m (loss of 4.2)
Highlights six months 2023
- Gross collections amounted to
EUR 30.7m (31.9)* -
Net collections amounted to
EUR 26.8m (26.9)* -
Cash EBITDA amounted to
EUR 15.5m (22.5)* -
Net loss for the period of
EUR 3.2m (loss of 5.9) - Acquisition of a further 25% of AxFina Holding S.A, a pan European debt servicing provider and business outsourcing company, taking DDM's total holding to about 75%
- Nordiska terminated the planned acquisition of Swiss Bankers and the combination with Omnio
Significant events after the end of the quarter
- Agreement signed for acquisition of NPL portfolio in
Romania with a gross collection value of overEUR 1 billion Razvan Munteanu appointed as Chief Executive Officer effective 1 August-
Delisting application submitted to delist the shares of
DDM Holding AG from Nasdaq First North Growth Market, with 15 September confirmed as the last day of trading
Comment by the CEO
I am thrilled to have been appointed as CEO of DDM from 1 August, and look forward to contributing my experience from banking, consumer lending and payments to DDM and its portfolio companies. Having worked in various senior management roles within leading European and global financial institutions, including Raiffeisen, Citi and
DDM ended the quarter with a strong cash position of
As part of our continuous active asset management approach, we sold our 5% stake in
The strong cash balance and active asset management provides optionality, particularly as adjusted gross collections remained ahead of expectations in the first half of 2023. This was achieved despite the challenging macroeconomic environment and geopolitical uncertainties, illustrating the resilience of our underlying NPL portfolio.
At the end of July we announced that the Board of
During the first half of the year we continued the work to strengthen the key servicing capabilities of the group. At the beginning of April we acquired an additional 25% of the debt servicing and business outsourcing company AxFina, bringing our total holding to about 75%.
In April Nordiska Kreditmarknadsaktiebolaget (publ) ("Nordiska") informed us that they were aborting the process regarding a combination of Nordiska with Swiss Bankers and Omnio. We worked on these transactions jointly with Nordiska for eight months and, after having obtained legal advice, the board of DDM considers Nordiska's unilateral decision to abandon the transactions and related actions by Nordiska as a violation of Nordiska's obligations under the agreements between the parties. DDM therefore reserves all contractual, legal, and other rights, including its right to claim damages that may result from Nordiska's actions.
Outlook
Rising bankruptcies and the cost-of-living crisis squeezing households is expected to result in increased volumes of NPLs. Coupled with borrowers across
Annual General Meeting 2023
Financial calendar
DDM intends to publish financial information on the following dates:
Q3 report for January -
Q4 report for January -
Annual report 2023:
Other financial information from DDM is available on DDM's website: www.ddm-group.ch.
Presentation of the report
The report and presentation material are available at www.ddm-group.ch on
CEO
The presentation can be followed live via the webcast at www.ddm-group.ch, or via teleconference with prior registration at https://conference.financialhearings.com/teleconference/?id=2001426.
The information in this report requires
For more information, please visit DDM's website at www.ddm-group.ch or contact:
Tel: +41 41 766 1420
Tel: +41 79 331 30 17
Mail: investor@ddm-group.ch
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