(Alliance News) - The board of directors of doValue Spa on Thursday approved the 2024-2026 business plan, which forecasts gross revenues in 2026 in the range of EUR480-490 million, of which 35-40% are non-NPL.

Gross Book Value in 2026 is expected to be about EUR110 billion with a funding rate of about 5.5%; ex-NRI Ebitda is given in the range of EUR185-195 million, with an Ebitda margin of about 39%.

Operating cash flow ex-NRI is expected in the range of EUR140-150 million with leverage in the range of 2.1x-2.3x.

As for the dividend, no distribution is planned in calendar 2024 while in 2025 the dividend is expected to be EUR0.15 per share provided leverage is below 2.8x in 2024, and EUR0.25 in 2026 provided leverage is below 2.5x in 2025.

In the plan, the company "expects a solid and growing operating cash flow that we expect will generate robust Free Cash Flow for debt and Equity over the period 2024-2026, reducing leverage and creating the conditions to refinance upcoming debt maturities," the statement said.

"Ambitions for the period beyond 2026 point to solid and sustainable growth and the

cash flow generation, with revenues above EUR500 million, Ebitda greater than EUR200 million, operating cash flow above EUR150 million, and leverage below 2x.

The 2024-2026 plan, the company writes, is based on five pillars: customer-focused approach to improve origination and preserve the core business; growth and diversification beyond servicing; reengineering of the operating model to achieve an industry-leading level of efficiency; focus on technology and innovation; fostering an inclusive culture; attracting and training talent; and building a sustainable financial system.

Among targets for operating results to 2026, the company expects a market share in Southern Europe at 15-20%; at least EUR8 billion of new assets under management per year; achievement of about 35-40% non-NPL revenues; efficiency with total costs/revenues at 61%; automation in funding above 30%; leverage in the range of 2.1-2.3x; and leading positioning in sustainability.

DoValue's stock trades in the green by 3.2 percent at EUR1.95 per share.

By Chiara Bruschi, Alliance News reporter

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