Summary of April – June 2020
- Net sales increased to 54.6 (20.4) MSEK, of which 33.5 MSEK derived from the Täby Turf rental project.
- Net operating profit totaled 3.0 MSEK (-26.3). The West Side Solna and Metronomen co-op projects contributed 13.3 MSEK.
- Cash flow from operating activities amounted to -79.3 MSEK (-34.3). The production start of the Platform West co-op project had a -75.8 MSEK impact on cash flow and the sale of half of the Älvsjö Quarters rental project had a positive impact of 33.0 MSEK.
- Production started at Platform West co-op project (109 units) in Roslags-Näsby/Täby.
- 92.3 MSEK of the company’s outstanding bond loan repaid.
- SSM’s rights issue of 157.0 MSEK fully subscribed, whereof 84.5 percent via subscription rights.
- Adaptation of company’s sales organisation in line with focus on rental projects is expected to generate annual costs savings of 6.5 MSEK but impact the quarter negative by -3.3 MSEK.
Summary of January – June 2020
- Net sales increased to 103.6 MSEK (35.8) of which 69.3 MSEK derived from the Täby Turf rental project.
- Net operating profit amounted to 3.8 MSEK (-38.8) to which the West Side Solna and Metronomen co-op projects contributed 26.4 MSEK.
- Cash flow from operating activities totaled -65.6 MSEK (-66.3). The production start of the Platform West co-op project had a -76.8 MSEK impact on cash flow at the same time as the disposal of the Bromma Square project and sale of half of the Älvsjö Quarters rental project had a positive impact of 75.9 MSEK.
- Letter of intent signed regarding the sale of Tellus Towers joint venture project.
- The company’s outstanding bond loan was extended by two years until May 2022. In May 2020, the company repaid 92.3 MSEK and has committed to amortize at least 69.2 MSEK per half-year with the last payment in May 2022. On the balance sheet date, the bond loan amounted to 275.2 MSEK.
Significant events after the balance sheet date
- SSM acquired all of the shares in the half-owned JV-company Studentbacken which includes about 280 building rights in Bromma, Sollentuna and Täby. The purchase price was 2.0 MSEK and the transaction was completed in July 2020.
Mattias Lundgren, President & CEO, comments on the quarter:
SSM has reported a positive operating profit for the third quarter in a row with the operating profit amounting to 3.0 MSEK (-26.3). The restructuring work carried out to reduce fixed costs and risks in the project portfolio, which began about a year ago when I took over as CEO, has reduced fixed costs by close to 30 percent and gradually improved the company’s financial position.
We started production of 109 units at our Platform West cooperative apartment project attractively located beside the Roslags-Näsby light rail station. At the moment, about half of the homes have been sold and we expect buyers to take possession in Q4 2021. The start of production of the project had a -75.8 MSEK impact on cash flow during the quarter, of which land acquisition was the largest item.
We also carried out a fully-subscribed rights issue of 157.0 MSEK before issuing costs and repaid 92.3 MSEK of the company’s bond loan. Together with the cash flow contribution from the West Side Solna and Metronomen projects, the new issue will provide sufficient cash and cash equivalents to realize the company’s current business plan.
Overall, both SSM and the market saw relatively stable development during Q2 despite concerns related to the consequences of the Covid-19 pandemic. The summer months have shown a good appetite for buying homes in the Stockholm area. That said, there is still uncertainty about the long-term consequences of the pandemic on the world economy, the Swedish economy and Stockholm’s housing market.
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 and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:30 CEST on August 27, 2020.
|For more information, please contact:
President & CEO
EVP Communications & IR
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 June 30, 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