Summary of July – September 2020
- Net sales totaled 32.0 (140.5) MSEK.
- Adjusting operating profit was 10.5 MSEK (-26.4). The West Side Solna and Metronomen co-op projects contributed 23.3 MSEK to profits for the quarter.
- Cash flow from operating activities was -35.2 MSEK (-31.1). The West Side Solna project contributed 24.0 MSEK, production of the Platform West project had a negative impact of -20.9 MSEK.
- West Side Solna cooperative apartment project sold out, buyers took possession of all 252 homes by the end of the quarter.
- SSM acquired all shares in the half-owned joint venture company Studentbacken, which has about 280 building rights in Bromma, Sollentuna and Täby, for 2.0 MSEK.
- Before continuing planning for central Telefonplan, the Stockholm City Planning Board decided to replace the two towers of Tellus Towers with a group of tall buildings of about 20-30 stories. SSM is working to renew its land allocation from the City of Stockholm for the area.
Summary of January – September 2020
- Net sales increased to 135.6 MSEK (176.2).
- Adjusting operating profit was 17.6 MSEK (-58.9). The West Side Solna and Metronomen c-op projects contributed 49.2 MSEK to profits.
- Cash flow from operating activities totaled -100.8 MSEK (-97.4). The start of production of the Platform West project had a negative impact of -97.7 MSEK, the divestment of the Bromma Square project and sale of half of the Älvsjö Quarters project contributed 75.9 MSEK.
- Start of production of the Platform West co-op project (109 homes) in Roslags-Näsby/Täby.
- Rights issue of 157.0 MSEK fully subscribed. The company’s outstanding bond loan was extended by two years until May 2022. In May and November 2020, the company repaid 161.4 MSEK and on the date of publication of this interim report, the bond loan was 207.6 MSEK.
Significant events after the balance sheet date
- On October 14, 2020 Amasten Fastighets AB announced a public offer to the shareholders in SSM Holding AB (publ). Amasten already controls 29.6 percent of the shares in SSM through subsidiaries. Samhällsbyggnadsbolaget i Norden AB and Gösta Welandson with affiliates, who jointly hold 45.4 percent of all of the shares in SSM, have irrevocably undertaken to accept the offer. Furthermore, Länsförsäkringar Fondförvaltning, which has a shareholding in SSM of approximately 9.8 percent, has commented positively on the offer, but has not committed to accept the offer. SSM’s independent bid committee will publish a formal statement regarding the offer no later than two weeks prior the end of the acceptance period.
- Change of JV-partner for SSM’s Elverket Nacka JV-project after Amasten took over the current partner’s share in the project in connection with the city plan.
Mattias Lundgren, President & CEO, comments the quarter:
“The co-op market was strengthened during the quarter. Transaction volumes reached new highs and apartment prices followed upward. That said, due to the increased spread of the Covid-19 virus during the fall, it is too early to conclude if this marks a long-term stabilization of Stockholm’s housing market. Since SSM has now changed a significant part of its portfolio under development to focus on rental units, the company’s dependence on the co-op market has decreased considerably.”
“The adjusted operating profit was 10.5 MSEK (-26.4). The West Side Solna and Metronomen projects contributed 23.3 MSEK. The positive development is thanks to SSM’s work to optimize its operations, reduce fixed costs and lower risks in the portfolio.”
“During the year, SSM has strengthened the company’s financial position substantially. Cash flow from operating activities has been impacted by forward-looking investments in projects under development and in the start of production of the Platform West co-op project. In addition to cash and cash equivalents in the Group, SSM’s joint venture companies had 430.0 MSEK in cash and cash equivalents on the balance sheet date.”
“On October 14, Amasten Fastighets AB (publ), which today owns 29.6 percent of SSM, announced a public offer to the shareholders in SSM. I see this as proof that the restructuring work we’ve been carrying out since I took over as CEO in June 2019 has been appreciated by the company’s owners.”
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 07:30 CET on November 12, 2020.
|For more information, please contact:|
|Mattias Lundgren||Ann-Charlotte Johansson|
|President & CEO||EVP Communications & IR|
|Email: [email protected]||Email: [email protected]|
|Phone: +46 (0)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 September 30, 2020, SSM had approximately 4,300 building rights in its portfolio. SSM has been listed on Nasdaq Stockholm’s Main List since April 6, 2017. ssmlivinggroup.com