For more than a year now Elanders has been growing organically by nearly ten percent. Elanders has considered different financing alternatives for this growth and the resulting increase in working capital. Our customer base consists of many financially strong and large multinational companies.
Elanders will together with Nordea, one of the Group’s main banks implement factoring without recourse in some parts of our business in Germany. A contract was signed on December 21, 2018.
When this factoring is implemented, most likely during the fourth quarter of 2018 and the first quarter of 2019, it will have an effect on the company’s financial key ratios. The entire facility amounts to MEUR 50, of which at least 70 %, i.e. MEUR 35, will probably be utilized. This facility will have a one-time positive effect on cash flow from operating activities with the same amount as the level of utilization. In addition, this will reduce account receivables and net debt as well as improve the ratio of net debt to EBITDA.
“We are very grateful for the offer we have received and accepted from Nordea. It will make it easier for us to manage the fluctuations in working capital as well as reduce the amount of capital tied up. The financial terms are also on par with, or are better than, the rest of our financing,” says Andréas Wikner, CFO of Elanders.
For further information, please contact
Magnus Nilsson, President and CEO, telephone: +46 31 750 07 50
Andréas Wikner, CFO, telephone: +46 31-750 07 50
This information is information that Elanders AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 15:20 CET on 21 December 2018.