Summary of January – December 2017
- Net sales for projects run entirely by SSM totaled 516.2 MSEK (649.9).
- Operating profit was 170.2 MSEK (187.1) and the operating margin increased to 33.0% (28.8).
- Cash flow from current operations was -199.3 MSEK (-19.4).
- Sales start for 1,098 (188) cooperative apartments.
- 97.0% sales rate for apartments in production.
- 411 new booking and pre-purchase agreements with 10.3% increase in pre-purchase agreements to 247 (224).
- Portfolio grew by 1,683 building rights (2,918) after projects concluded during the year, acquisition of new building rights and project optimization.
- Proposed dividend for the year is 0.0 SEK (0.0).
- Stock exchange listing on Nasdaq Stockholm’s Main List (Mid-Cap) on April 6, 2017 together with new share issue that contributed a net of 509.0 MSEK to the company.
Summary of October – December 2017
- Net sales for projects run entirely by SSM totaled 107.3 MSEK (257.2).
- Operating profit amounted to 4.4 MSEK (61.7) and the operating margin was 4.1% (24.0).
- Cash flow from current operations was 57.7 MSEK (11.1).
- Sales start for 512 (0) cooperative apartments.
- 111 new booking and pre-purchase agreements.
- A cautious market with price development slowing in the Stockholm area.
- Portfolio grew by 515 building rights (350), mainly due to land allocation in Sundbyberg and acquisition in Hägersten.
- Two new members of the Executive Committee recruited: Jan Michelson as CIO and Maria Boudrie as Chief Legal Officer.
Significant events after the balance sheet date
- At the beginning of February, SSM’s joint venture company Studentbacken, which is owned 50 percent by SSM, gained a land allocation from the City of Stockholm for 100 student housing units at Brommaplan. The apartments will be rental units with occupation planned in 2021.
Mattias Roos, President & CEO, comments on the year and the quarter:
“The year’s operating profit was 170.2 MSEK and the operating margin increased to 33.0 percent. Our earnings were affected by larger non-recurring items on both the income and cost sides. During the entire year, SSM outperformed three of the Group’s four financial goals and our price/equity ratio at year-end was 59.2 percent. Through our strategic cooperation with Partners Group, we also strengthened our financial capabilities substantially during the year and achieved a desired risk spread.
SSM signed 411 new booking or pre-purchase agreements during the year and sales via pre-purchase agreements went up 10.3 percent to 247 units. Project that we have sales started were negatively affected by the cautious market during the fourth quarter, which means that we had fewer productions starts than planned last year. Sales in ongoing production continued to be at a market-leading level of 97.0 percent at year-end.
From a macroeconomic perspective, Sweden and Stockholm are economically stable and the need for smaller homes is increasing all the time. Once the market stabilizes, homebuyers will also adapt to the new conditions created by changes to amortization requirements. For many people, their choice of housing will be smaller homes outside of the city. We will be able to meet this demand with our portfolio of affordable and space-efficient homes which in its entirety is located near public rail transport outside of the city.”
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 persons set out below, at 07.30 CET on February 22, 2018.
For more information, please contact:
President & CEO
Chief Communications & IR Officer
Phone: +46 (0)761-65 17 71
About SSM Holding AB (publ)
SSM produces functionally smart and affordable homes with attractive common areas, close to public transport and the city center for the company’s target group — the urbanites of tomorrow. The company envisions a housing market that is accessible to as many people as possible and aspires to produce 60 percent cooperative apartments, 30 percent rental units and 10 percent student housing. SSM is the leading property developer in its niche within the Greater Stockholm area and in February 2018, the company had approximately 7,000 building permits in its portfolio. SSM was listed on Nasdaq Stockholm (Mid-cap) April 6, 2017 www.ssmlivinggroup.se