Intrum - comment

Just as this name becomes all about the servicing business, margins in the segment are improving significantly. After hiring new regional management, the company has won 40% more business in the faster churning / higher margin North than last year. The effect is a welcome stabilisation, if not potentially a reversal of servicing margins overall, which is helped by the run-off of the lower-margin business in Italy. 

Intrum will be negotiating their deal over the summer. Management are just about right in saying they won’t need the 25s to implement their proposal in Sweden. So as we are approaching maturities in October, we expect Intrum’s campaign to gain focus.