In light of current global events, Intrum has decided to reduce its level of investments and increase the rate of return required for new investments to safeguard the deleveraging target. We are also reviewing ongoing M&A projects. Repurchase of shares is currently considered an attractive investment which is made possible by Intrum’s strong financial position.
Given the spread of COVID-19 and prevailing global uncertainty, Intrum has already taken comprehensive measures to ensure that we are able to conduct business as usual, as far as practically possible, especially in Italy which has been most affected to date. As previously communicated, income in our Italian debt collection activities is generated primarily from secured loans, collateralised on real estate assets, which are typically collected through the Italian court system. We therefore anticipate that cash flow will be somewhat delayed in Italy, a market which accounted for four per cent of Intrum’s total Cash EBITDA in 2019.
At present, we do not see any financial impact on other markets where Intrum is active. We are closely monitoring developments in Europe and are taking precautionary steps on an on-going basis to ensure that we continue to operate as the situation develops.
Naturally, it is of utmost importance to ensure the health and safety of all employees and minimise any operational impact. Intrum has therefore introduced a number of initiatives such as travel restrictions and the option of working from home.
In light of the above and the current global situation, we have decided to postpone our Capital Markets Day that was planned for 19th May. We intend to reschedule the event in the autumn.
For further information, please contact:
Mikael Ericson, President and CEO
+46 (0) 8 546 102 02
Anders Engdahl, CFO
+46 (0) 8 546 102 02
anders.engdahl@intrum.com
Viktor Lindeberg, Head of Investor Relations & Group Business Control
+46 (0) 76 897 07 08
viktor.lindeberg@intrum.com
ir@intrum.com