Aktiv Kapital Considers Strategic Options for Danish Operations

Bad debt buyer and collection agency Aktiv Kapital said in December it is considering various options for the Danish operations, including divesting or right-sizing the business area Debt Collection and right-sizing the business area Non-performing Portfolio Acquisition. The consideration was initiated due to lacking economy of scale within the Danish operations. 

Year-to-date third quarter 2008 the Danish operations had total operating revenue of NOK 21.3 million ($3 million) and operating profit of NOK -4.4 million (-$636,00). The cash collection in the business area non-performing debt was NOK 21.6 million.
 
A right sizing of Aktiv Kapital’s operations in Denmark will involve a significant reduction of staff in the magnitude of 25 employees becoming redundant. Aktiv Kapital will take a provision of up to NOK 12 million in connection with the initiatives, which will be booked in Q4 2008.

Annual savings are estimated in the range of NOK 15-20 million, which we expect will have effect as of 3rd quarter 2009.  
 
"I am confident that subsequent to right sizing the Danish operations, Aktiv Kapital will be able to offer satisfactory collection services to our third party customers and our wholly-owned portfolios.  We have initiated a dialogue with our employees to ensure a speedy and responsible process of reducing our activities in Denmark", says Erik Oyno, Group CEO & President of Aktiv Kapital.
 
Aktiv Kapital established the operation in Denmark in 2001, and has since the inception invested in the operations with the intention of growing the Danish activity to required economy of scale. Results have not been seen as expected and Aktiv Kapital’s strategy is to adapt quickly when the operational performance does not meet profitability requirements.
 
About Aktiv Kapital
Headquartered in Oslo, Norway. Aktiv Kapital has operations in 11 countries, and is today Europe’s and Canada’s largest purchaser of non-performing consumer credits. Aktiv Kapital had in 2007 an operating revenue NOK 1,575 million ($228 million). Within the Portfolio segment Aktiv Kapital had approx 550,000 paying customers in 2007. Aktiv Kapital is listed on the Oslo Stock Exchange (AIK). For more information about Aktiv Kapital, please visit www.aktivkapital.com