Intrum Justitia Struggles to Right Itself after Rough Year

Major debt collection agency Intrum Justitia has seen revenues fall after a troubled year in which it was forced to restate its accounts.

Consolidated revenues in the period January to March amounted to SEK 703.7m Swedish Krona ($91.4 million), down two per cent from a figure of 717.6m for the same period last year.

Net debt was at 853.5m Krona ($110.9 million) at 31 March 2004, up from 768.6m Krona at year-end 2003. The increase was attributed to negative cash flow and exchange rate effects.

However Intrum saw growth in the Netherlands, Sweden and France. Operating earnings rose by 55 per cent. The gross profit margin rose to 39 per cent largely as a result of improved productivity and cost reductions in a number of countries.

Administrative expenses increased, mainly related to the legal accounts investigation in England and increased investments in marketing activities.

Jan Roxendal, president and chief executive officer of Intrum Justitia looked forward to a brighter future saying the trend toward increased outsourcing and higher indebtedness was expected to continue, particularly in the consumer collection and debt surveillance sectors.

As announced on 26 March 2004 group auditors have completed the group audit and signed an unqualified audit report on the Intrum Justitia Group for year 2003 after the company's original accounts were found to have a large whole in the UK operation.