Summary of January – March 2020
- Net sales for projects run entirely by SSM increased to 48.9 MSEK (15.4), of which 35.8 MSEK was revenue recognized from the Täby Turf rental project.
- Net operating profit improved and totaled 0.8 MSEK (-12.4). The West Side Solna and Metronomen cooperative apartment projects had a 6.6 MSEK and 6.4 MSEK impact on results respectively.
- Cash flow from operating activities amounted to 13.7 MSEK ( 32.0), of which the divestment of Bromma Square in Q4 2019 contributed 42.9 MSEK during Q1 2020.
- Agreement to sell half of the shares in the Älvsjö Quarters rental project and agreement regarding the Järnet cooperative apartment project in Bromma for a combined value of 34.0 MSEK, of which the company received 0.5 MSEK during the quarter.
- Letter of intent signed to sell the Tellus Towers JV-project.
- The company’s outstanding bond loan of 369.0 MSEK was extended by two years to May 2022. At least 161.4 MSEK will be repaid in 2020.
- SSM’s Finance Manager Ola Persson took over as CFO on March 1, 2020 and Erik Lemaitre, EVP Business Development and member of SSM’s Group Management, left the company in April
Significant events after the balance sheet date
- SSM’s rights issue for 157.0 MSEK was fully subscribed with 84.5 percent of the shares subscribed for using subscription rights. The number of shares and votes in the company increased by 19,626,271.
The dilution effect was 33.3 percent.
- For commercial reasons, the Täby Market cooperative apartment project was returned to the municipality of Täby and SSM will receive 8.7 MSEK as repayment of the down payment.
- As a result of SSM’s conversion to focusing on rental projects, the company intends to reduce the number of employees in its sales and marketing. This will contribute annual cost savings of 6.5 MSEK and restructuring costs of 3.3 MSEK will be charged to Q2 2020. As a consequence of the Covid-19 panademic’s effect on market conditioning, SSM also partly intends to introduce short-term work
Mattias Lundgren, President & CEO, comments on the quarter:
“During Q1 2020, SSM’s clear focus on generating positive cash flow and strengthening the balance sheet delivered results. Through several strategic business transactions, SSM freed up investment capacity and resources for projects in the near future. Cash flow from operating activities improved, generating 13.7 MSEK that will be used to finance investments already made.”
“SSM’s financial position was strengthened at the beginning of 2020 in part through the company’s rights issue that was fully subscribed and that contributed 157.0 MSEK before issuing costs and partly from the two-year extension of the company’s bond loan to May 2022.”
“The net operating profit for the quarter totaled 0.8 MSEK (-12.4) with the West Side Solna and Metronomen projects contributing positively, balancing costs for sales and administration. The Täby Turf rental project also contributed significantly to net sales although profits have not been recognized in the project as it is still in an early stage.”
“SSM currently has a project portfolio that provides good opportunities to create future value and strengthen the company’s financial position. The importance of stability in SSM’s projects and financial position became even more evident when the Covid-19 pandemic began to affect Sweden in March 2020. Production in SSM’s ongoing projects has not been impacted to any great extent. Even if demand for homes temporarily subdued as a result of economic uncertainty and fears of unemployment, it is my assessment that the housing market in Greater Stockholm will continue to be characterized by a shortage of homes and that SSM’s projects will meet the needs and demand that will exist when this uncertainty decreases.”
The information in this press release is such, which SSM Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 08:15 CEST on May 14, 2020.
For more information, please contact:
|Mattias Lundgren||Ann-Charlotte Johansson|
|President & CEO||EVP Communications & IR Officer|
|Email: firstname.lastname@example.org||Email: email@example.com|
|Phone: +46 761 65 17 71|
About SSM Holding AB (publ)
SSM produces smart, affordable homes with attractive shared spaces close to public transport and the city center for its target group – tomorrow’s urbanites. SSM envisions a housing market for as many people as possible and today, the company is the leading property developer in its niche within the Greater Stockholm area. On March 31, 2020, SSM had approximately 4,500 building rights in its portfolio. SSM has been listed on Nasdaq Stockholm’s Main List since April 6, 2017. ssmlivinggroup.com