Highlights of the year

  • Gross collection of EUR 368.1 million in 2019, with continued growth in all business segments
  • EBITDA almost doubled to EUR 92.1 million in 2019, with a 10 percentage-points improvement in EBITDA-margin to 32%
  • Cash EBITDA was up 84% to EUR 250.8 million
  • Total portfolio investments amounted to EUR 399 million, of which EUR 286.4 million was invested under forward flow agreements
  • Book value of the portfolio was EUR 1.2 billion at the end of 2019, with estimated remaining collection (ERC) up 32% to EUR 2.2 billion
  • Net profit for 2019 was EUR 21.0 million, up EUR from 2.4 million in 2018
  • Funding was increased by a total of EUR 310 million in 2019, and by a further EUR 51 million through a share issue after year-end

Significant events in 2019

Axactor has grown to become one of Europe’s largest debt management providers during the last four years. In 2019, Axactor continued the scale-up by investing EUR 399 million, mainly into acquisitions of Non-performing loans (NPLs). The company made acquisitions in all its six geographical markets, with Norway the largest with over EUR 130 million invested.

Axactor invested EUR 286 million under forward flow agreements (FF) with financial institutions during 2019, primarily in the Nordics. The total estimated capital commitment for forward flow agreements for 2020 was EUR 178 million at the end of the year.

Axactor grew its asset-light third-party collection (3PC) business by 11% in 2019, signing several new contracts with financial institutions across its geographical reach. The leading position in Spain was cemented through partnership with all top-12 banks, and the company also made progress in the Nordic region.

No new real estate owned (REO) portfolios were acquired in 2019. The year-end book value of the REO assets was EUR 129 million, with ERC of EUR 151 million. Although the REO business is consolidated on a 100% basis, Axactor only has approximately 40% financial exposure to the REO segment due to minority interests in both Reolux Holding and two of its assets owning subsidiaries.

Axactor’s next-generation debt management model generation continues to yield efficiency gains and supported a sharp increase in EBITDA margins from 22% in 2018 to 32% in 2019. The company made further advances in the standardization process through the ‘One Axactor’ program in 2019.

Customer satisfaction, measured as net promoter score, was very high in 2019, outperforming competitor averages in all geographies. Further improving customer satisfaction remains a key priority entering the new year.

Axactor strengthened its funding by EUR 310 million during the year, a key element to deliver on the growth strategy. Additional funding was secured through a private placement generating gross proceeds of approximately EUR 51 million in February 2020.

The planned investment level in NPL portfolios in 2020 is EUR 350-400 million.

Sustainability

Key figures 2019