Summary of January -
· 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
· 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
· SSM's Finance Manager
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
"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
"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
The information in this press release is such, which
For more information, please contact:
President & CEO
Email: Email: ann-charlotte.johansson@ssmliving.se
mattias.lundgren@ssmliving.se
Phone: +46 761 65 17 71
About
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
https://news.cision.com/ssm/r/positive-cash-flow-and-strong-financial-position,c3111675
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