B2HOLDING ASA: Fourth quarter 2020 results2021-02-12
Fourth quarter financial highlights: * Gross collection of NOK 1,315 million (1,370) - down 4 % y-o-y
* Operating profit of NOK 355 million (291) - up 22 % y-o-y
* Cash EBITDA of NOK 905 million (940) - down 4 % y-o-y
* ERC at end of month NOK 23,100 million (23,809)
(Comparable numbers for Q4 2019 in brackets)
B2Holding had total revenues of NOK 852 million in the fourth quarter, up 4 per cent from the same quarter last year.
Gross collection including SPVs and joint ventures was down by 4 per cent to NOK 1,315 million, and cost to collect was down 0.8 percentage points quarter on quarter to 23.2 per cent in Q4 2020. The collections were above expectations of the latest forecast in the fourth quarter.
Cash EBITDA was NOK 905 million, a decrease of 4 per cent compared to the fourth quarter 2019, while operating profit (EBIT) was NOK 355 million, up 22% compared to NOK 291 million in Q4 2019.
Profit after tax was NOK 123 million, compared to NOK 90 million Q4 2019, leading to earnings per share of NOK 0.30, compared to 0.22 in the fourth quarter last year. B2Holding invested NOK 437 million in new portfolios in the fourth quarter. All investments in the quarter were in unsecured portfolios, of which 47 % were forward flow transactions. The total gross ERC was NOK 23.1 billion at end of the quarter.
At the end of the fourth quarter, B2Holding had EUR 294 million in liquidity reserve. During the quarter, B2Holding ASA has increased its financial flexibility with a new bridge facility of EUR 100 million and an extension of the RCF with one year. In addition to repayment of Bond 1 of EUR 150 million in December, the Group has also repurchased EUR 46.85 million in Bond 2 during the quarter. The Group increased its headroom to the original RCF covenants by end of Q4 2020 and expects compliance going forward.
The Group had a currency adjusted cost saving of NOK 47 million in the fourth quarter compared to first quarter 2020, in accordance with the cost saving targets announced in the first quarter presentation.
"The fourth quarter showed stable performance overall and was a positive end to a challenging year. When the second wave of the pandemic hit most of our countries, we were well prepared and able to remain fully operational in all countries. In the fourth quarter we strengthened our balance sheet through prudent portfolio purchase activity. In combination with improved efficiency and adoption of new technology, we strongly believe that B2Holding is well positioned to meet the future" said Erik J. Johnsen, CEO of B2Holding ASA.
Looking ahead, B2Holding expects that investment levels will remain modest in the first quarter of 2021. The Group is observing increased NPL market activity and expects higher volumes in 2021.
For further information, please see the Q4 2020 presentation and report attached. *Definitions of alternative performance measures can be found in the attached report and presentation.
The documents are also available on the Company's website: www.b2holding.no
The results will be presented today, Friday 12 February at 08:30 CET, in a webcast. Due to the prevailing Covid-19 situation, it is not possible to physically attend the presentation. The webcast presentation is available through this link: https://channel.royalcast.com/landingpage/hegnarmedia/20210212_4/
Live webcast viewers who would like to ask questions at the end of the presentation must submit their written questions in the provided form in the webcast. A recorded version of the webcast will be available on-demand after the live stream is concluded.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
For further information, contact: André Adolfsen, CFO, B2Holding ASA Mobile: +47 930 19 150 E-mail: firstname.lastname@example.org or
Rasmus Hansson, Head of M&A and Investor Relations, B2Holding ASA Mobile: +47 952 55 842 E-mail: email@example.com
About B2Holding Group B2Holding ASA is a Nordic-based debt solutions provider with platforms in over 20 European countries. B2Holding has experienced significant growth since its inception in 2011 and has established itself as one of the leading European debt purchasers and a solution-oriented partner within the debt servicing industry. B2Holding employs approximately 2,400 people. The head office is located in Oslo, Norway, and the B2Holding share is listed on the Oslo Stock Exchange under ticker "B2H".