LEHTO GROUP OYJ
Financial Statement Bulletin 1 Jan -
Due to the bankruptcies of
This report has been prepared in accordance with the IAS 34 standard. The company complies with half-yearly reporting according to the Finnish Securities Markets Act. The financial statement bulletin is unaudited. Figures in brackets refer to the corresponding period of the previous year, unless otherwise stated.
Summary 2023
Group | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
Net sales from continuing operations, EUR million | 17.3 | 94.7 | 171.8 | 344.8 |
Change in net sales from continuing operations, % | -81.7% | -35.4% | -50.2% | -14.7% |
Operating result from continuing operations, EUR million | -47.6 | -14.3 | -71.0 | -42.2 |
Operating result from continuing operations, % of net sales | -274.6% | -15.1% | -41.3% | -12.2% |
Result from continuing operations, EUR million | -15.7 | -27.8 | -77.1 | -58.8 |
Result from discontinued operations, EUR million | 0.0 | -0.4 | -0.1 | 32.1 |
Result for the period, EUR million | -15.8 | -28.2 | -77.2 | -26.7 |
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Order backlog at period end, EUR million | 0.0 | 205.9 | 0.0 | 205.9 |
Earnings per share, EUR | -0.18 | -0.32 | -0.88 | -0.31 |
Cash and cash equivalents, EUR million | 6.1 | 13.2 | 6.1 | 13.2 |
Financial liabilities, EUR million | 20.6 | 33.9 | 20.6 | 33.9 |
Lease liabilities, EUR million | 59.1 | 77.8 | 59.1 | 77.8 |
Equity ratio, % | -10.1% | 27.0% | -10.1% | 27.0% |
Equity ratio, excl. IFRS 16 lease liabilities, % | -22.6% | 38.7% | -22.6% | 38.7% |
Lehto Group Plc's ("Lehto" or "the Company") financial statement information for the financial period that ended on31 December 2023 are not based on continuity of operations. On8 February 2024 , after the end of the financial period, Lehto's subsidiariesLehto Asunnot Oy ,Lehto Tilat Oy andLehto Korjausrakentaminen Oy went into bankruptcy, and the Group's parent companyLehto Group Plc started corporate restructuring proceedings on16 February 2024 . Due to these factors, there are significant grounds for doubting that the Company will be able to continue to operate and make payments over the next 12 months.-
The financial statement information includes the income statement and balance sheet items of the bankrupt subsidiaries.
- Income statement items are presented as continuing operations.
- Assets are valued at a maximum of the total liabilities of the respective companies, also taking into account the effects of impairment due to the loss of receivables realized in bankruptcy. For the avoidance of doubt, it is stated that at the time of publication of the financial statement bulletin, the assets and liabilities of the said subsidiaries are under the control of the bankruptcy estates.
- The valuation of assets remaining in the group is based on an estimate of the amounts of money that can be collected in situations where they fall below the accounting value formed on the basis of the continuity principle.
The following table discloses the impact of the bankrupt subsidiaries on the consolidated balance sheet.
Effect of subsidiaries declared to bankrupt on the Group financial position |
| Group | The impact of bankrupt companies | Group without bankrupt companies |
Intangible and tangible assets |
| 9.3 | 0.0 | 9.3 |
Investments in associated companies |
| 0.8 | 0.0 | 0.8 |
Other financial assets |
| 1.0 | 0.0 | 1.0 |
Receivables |
| 2.5 | 2.4 | 0.1 |
Inventories |
| 73.8 | 71.9 | 1.9 |
Trade and other receivables |
| 12.1 | 11.1 | 1.0 |
Cash and cash equivalents |
| 6.1 | 0.0 | 6.1 |
Assets, total |
| 105.6 | 85.3 | 20.2 |
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Non-current provisions |
| 7.7 | 7.7 | 0.0 |
Non-current lease liabilities |
| 53.6 | 52.9 | 0.7 |
Other non-current liabilities |
| 0.1 | 0.1 | 0.0 |
Current provisions |
| 2.9 | 2.6 | 0.4 |
Current financial liabilities |
| 20.6 | 5.1 | 15.5 |
Current lease liabilities |
| 5.5 | 5.0 | 0.5 |
Liabilities to customers for constructing contracts (advances received) | 1,7 | 1.5 | 0.2 | |
Trade and other payables |
| 23.9 | 19.6 | 4.3 |
Liabilities, total |
| 116.1 | 94.6 | 21.5 |
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Net assets and liabilities |
| -10.5 | -9.3 | -1.3 |
Impact of group eliminations |
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| 9.3 | -9.3 |
Groups' net assets and liabilities at the end of financial year |
| -10.5 | ||
- On the closing date, the
Lehto Group consists of the parent companyLehto Group Plc , its wholly owned subsidiaryLehto Components Oy , and small project and other companies that do not engage in active operations. - The Group currently does not engage in significant business, and as part of the parent company's corporate restructuring proceedings, the Company reviews options to expand to new business areas and acquire new business.
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The Group's cash and cash equivalents on the closing date amount to approximately
EUR 2.4 million . The future development of the company's cash assets will be influenced particularly by:- asset sales income
- cash income and expenses related to new business and the schedule for the start-up of operations
- financing acquired for new business
- effects of the decisions made in the corporate restructuring proceedings of the parent company.
- The Company's restructuring programme is under preparation and its contents, which will be specified later, may affect the valuation of the Company's assets and liabilities. It is possible that as a result of the restructuring activities, the book values of the company's assets and liabilities will change from the financial statement information presented in this bulletin.
- The covenant terms of the company's key RCF financing agreement were not met on the closing date. The responsibilities and obligations related to this financing agreement are taken into account in the Company's restructuring programme.
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The Company has issued convertible bonds of
EUR 15.0 million , which are convertible into new and/or existing shares in Lehto. The Company has not been able to comply with all of the terms and conditions of the convertible bonds. Any changes to the convertible bonds will be dealt with as part of the Company's restructuring proceedings.
Business development in 2023
2023 began in a difficult situation. The Company posted a loss for its operations in the previous year, the order book had contracted, and cash reserves were scant. At the same time, the construction market and short-term market outlook were at an all-time low. The Company's operational focus was naturally on securing cash flow and the preconditions for continuing its operations.
In
During the year, the Company engaged in negotiations with dozens of parties on the sale of business functions or parts thereof, or other corporate arrangements. In parallel with the corporate arrangement processes, Lehto implemented several measures to improve cash flow during the year. Among other things, the second factory building in Oulainen was sold, personnel cuts were made in all units, and both plots and residential units were sold.
The Company obtained cash flow from sales of fixed assets, housing and plots to continue operations and repay debts. Cash flow and belief in the future were also maintained by new orders received during the year and an extensive portfolio of housing projects in growth centres.
In October, the Company signed a letter of intent to sell its operative subsidiaries to a European fund management company. This solution was expected to enable the parent company to continue operating and possibly start up new business operations. In December, the letter of intent was terminated and as the year ended the Company was in a more difficult situation than when the year began.
In
Due to the subsidiaries' bankruptcies, the parent company's equity became negative. The Board has started taking steps to increase its equity capital and will convene a General Meeting to review this matter no later than by the end of
In
At the time of publication of the financial statement bulletin, Lehto is still evaluating and planning alternatives for continuing, selling or reorganising the operations of the parent company and
Development of the business environment 2023
According to the interim forecast presented by the
The Business Cycle Review of the
According to RT, house construction starts have decreased continuously since the beginning of 2022. Housing starts fell to around 17,500 apartments in 2023, which is almost 20,000 less than the previous year. Starts of self-financed apartment buildings decreased by as much as 80 percent, while ARA production rose to 8,600 apartments.
In a review published in
Balance sheet and financial position
The consolidated balance sheet includes the assets and liabilities of
Consolidated balance sheet, EUR million | ||
Non-current assets | 13.6 | 27.7 |
Current assets |
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Inventories, excluding IFRS 16 assets | 17.6 | 101.2 |
Inventories, IFRS 16 assets | 56.2 | 70.9 |
Current receivables | 12.1 | 50.4 |
Cash and cash equivalents | 6.1 | 13.2 |
Non-current assets held for sale | 0.0 | 3.8 |
Total assets | 105.6 | 267.2 |
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Equity | -10.5 | 66.6 |
Financial liabilities | 20.6 | 33.9 |
Lease liabilities | 59.1 | 77.8 |
Liabilities based on customer contracts (advances received) | 1.7 | 20.6 |
Other payables | 34.7 | 68.4 |
Total equity and liabilities | 105.6 | 267.2 |
The balance sheet total fell to
As liabilities exceeded assets, equity decreased to negative
Interest-bearing liabilities | ||
Revolving credit facility (RCF) | 3.4 | 13.0 |
Convertible bond | 15.0 | 15.0 |
with adjusted expenses and equity component separated | -2.9 | -3.3 |
RS loans related to unsold apartments in developer contracted housing projects | 2.2 | 9.2 |
Investment loans | 0.0 | 0.0 |
VAT payment arrangement | 2.9 | 0.0 |
Financial liabilities, total | 20.6 | 33.9 |
IFRS 16 lease liabilities | 59.1 | 77.8 |
Interest-bearing liabilities, total | 79.7 | 111.7 |
IFRS 16 lease liabilities are based on the company's lease payment obligations. In line with IFRS 16, long-term leases are presented in the lessee's balance sheet as both an asset and liability item. The majority of Lehto's lease liabilities at the end of the financial period were related to leases of plots for developer-contracted housing projects under construction. These obligations have been removed from Lehto's consolidated balance sheet due to the bankruptcies of subsidiaries after the end of the financial period. The IFRS 16 liabilities taken off the balance sheet due to the bankruptcies total
| Excluding IFRS 16 lease liabilities |
| Including IFRS 16 lease liabilities | |||||||
Financial position, EUR million | 31 Dec 2023 | 31 Dec 2022 | Change |
| 31 Dec 2023 | 31 Dec 2022 | Change | |||
Cash and liquid assets | 6.1 | 13.2 | -7.1 |
| 6.1 | 13.2 | -7.1 | |||
Interest-bearing liabilities | 20.6 | 33.9 | -13.2 |
| 79.7 | 111.7 | -32.0 | |||
Interest-bearing net debt | 14.5 | 20.6 | -6.1 |
| 73.6 | 98.5 | -24.9 | |||
The Group's cash flow statement includes the cash flow statement items of
Cash flow statement, EUR million | 1-12/ | 1-12/ |
Cash flow from operating activities |
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Profit for the period + adjustments to accrual-based items | -71.1 | -49.2 |
Change in net working capital | 68.1 | 15.5 |
Total cash flow from operating activities | -2.9 | -33.7 |
Cash flow from investments | 4.0 | 27.8 |
Cash flow from financing | -8.2 | -13.6 |
Change in cash and cash equivalents | -7.1 | -19.5 |
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Cash and cash equivalents at the beginning of the period | 13.2 | 32.8 |
Cash and cash equivalents at the end of the period | 6.0 | 13.2 |
Net cash flow from operating activities was
Net cash flow from investments was
Net cash flow from financing was
Key financing agreements
Revolving credit facility (RCF)
Lehto has a Revolving Credit Facility (RCF) agreement with
At the end of the review period, not all of the covenant or other terms of the RCF were met and the contract is about to expire on
Convertible bond
In 2022 Lehto offered the unsecured convertible bonds due
The Company has not been able to comply with all of the terms and conditions of the convertible bond, and thus bondholders may terminate the bond in accordance with its terms and conditions. For this reason, the convertible bond has been recognised as a current liability. Any changes to the convertible bond will be handled as part of the Company's restructuring proceedings.
Continuity of operations
The continuity of the Company's operations involves significant uncertainties. The Company will not be able to continue to operate unless it sells assets or acquires new financing and starts new cash-flow generating business. For this reason, there are significant grounds to doubt that the Company will be able to continue to operate and make its payments over the next 12 months.
At the time of publication of the financial statement bulletinthe company has cash assets of approximately
- asset sales income
- cash income and expenses related to new business and the schedule for the start-up of operations
- financing acquired for new business
- effects of the decisions made in the corporate restructuring proceedings of the parent company.
Personnel and remuneration
The average number of Group personnel during the review period was 483 (860 in 2022). The number of personnel at period-end was 384 (664 on
During the year, the Group's personnel decreased by 280 employees, and the number of personnel has decreased further due to the bankruptcies of subsidiaries after the end of the financial period and the scaling down of the parent company's operations.
In
Research and development
Lehto has developed and manufactured building modules and components, such as bathroom/kitchen modules, housing space elements, wall elements, large roof elements, technical building modules and windows at its own production facilities. The purpose of developing modules is to enhance building quality and to accelerate the construction process.
The development of modules, components and space concepts has been part of continuing operations, and the related costs are largely recorded as an expense in the income statement. During the financial year, no development expenses (
Risks and factors of uncertainty
In 2023, all of Lehto's business operations were related to construction. On
Lehto reviews options to expand to new business areas and acquire new business. The key risks for 2024 are related to starting up new business and arranging the required financing and corporate restructuring proceedings success.
It is possible that the corporate restructuring proceedings concerning
The potential acquisition of new equity financing could result in the significant dilution of shareholdings.
Responsibility and environmental issues
Despite its current lack of business continuity, Lehto aims to act in accordance with the generally accepted principles of responsibility with respect to environmental issues, social responsibility and governance.
During 2024, Lehto will define separate focus areas, targets and metrics for responsibility, along with associated support processes to serve Lehto's business.
The Group's legal structure
At the end of the financial period, the Group was comprised of the parent company,
The Group's parent company did not engage in actual business operations but served as a hub for a number of shared Group functions which are relevant for the manageability or cost efficiency of the Group's operations. These include human resources management, accounting, coordination of financial affairs, legal affairs, business development, sourcing and purchasing, communications, marketing and information management.
In
Resolutions of the Annual General Meeting
Deciding on the use of the profit shown by the balance sheet and the payment of dividends
In accordance with the proposal of the Board of Directors, the Annual General Meeting (AGM) decided that no dividend would be paid for the financial year ending on
Presenting and approving the remuneration report
The Annual General Meeting decided to approve the remuneration report in accordance with the Board's proposal. The decision was advisory.
Board member selection and compensation
The AGM confirmed the number of Board members to be four.
In accordance with the proposal of the Board of Directors, the Annual General Meeting decided to elect the following persons as members of the Board of Directors:
The Annual General Meeting decided that about 40% of the remuneration paid to members of the Board of Directors is to be paid in
It was also confirmed that the meeting fees to be paid to Board members for each meeting in the annual calendar, and for other Board meetings in which they participate that last over two hours and for which minutes are kept, shall amount to
Furthermore, it was confirmed that the meeting fees to be paid to Board committee members for each committee meeting in the annual calendar, and for other committee meetings in which they participate that last over two hours and for which minutes are kept, shall amount to
Reasonable travel expenses related to Board meetings and committee meetings were confirmed to be paid in accordance with the instructions of the Tax Administration, albeit the meeting fees shall include per diems.
Auditor selection and fees
The firm of authorised public accountants
Authorising the Board of Directors to decide on the purchase of the company's own shares
The Annual General Meeting authorised the Board to decide on the purchase of a maximum of 8,733,000 of the Company's own shares in one or several instalments using assets belonging to the unrestricted equity of the Company. The shares shall be purchased through public trading organised by
The authorisation also entitles the Board of Directors to decide on the purchase of shares other than in proportion to the shares owned by the shareholders (directed purchase). In such a case, there should be sound financial reasons for the company to purchase its own shares. Shares may be purchased to implement the Company's share-based incentive systems, to implement arrangements linked to the Company's business operations, or otherwise to be transferred or cancelled. The Company may also itself retain the shares acquired.
The Board of Directors makes decisions on all other conditions and matters pertaining to the purchase of own shares. The purchase of own shares reduces the Company's unrestricted equity. The authorisation is valid until the end of the next Annual General Meeting, but no later than
Authorising the Board of Directors to decide on a share issue, on the granting of option rights and other special rights entitling to shares, as well as the transfer of own shares
The AGM decided to authorise the Board of Directors to decide on the issue of a maximum of 8,733,000 shares through share issue or by granting option rights or other special rights entitling to shares in one or several instalments. The authorisation includes the right to issue either new shares or own shares held by the Company either against payment or as a bonus issue. In deviation from the Company's shareholders' pre-emptive subscription rights, new shares may be issued in a directed issue and own shares held by the Company transferred in a directed transfer if there is a compelling financial reason for the Company to do so or, in case of a bonus issue, a particularly compelling financial reason for the Company and to the benefit of all its shareholders to do so. The Board of Directors decides on all other conditions and matters pertaining to a share issue, to the granting of special rights entitling to shares, and to the transfer of shares.
Among other things, the authorisation can be used to implement the Company's share-based incentive schemes, to pay Board fees, to strengthen the capital structure, to expand the ownership base, and to pay consideration in acquisitions and transactions when the Company purchases assets linked to its operations.
The authorisation is valid until the end of the next Annual General Meeting, but no later than
Minutes of the General Meeting
The minutes of the General Meeting can be found on
Decisions of the Board's organisational meeting
At the organisational meeting held after the Annual General Meeting, the Board of Directors of
The Board of Directors elected
Based on the Board of Directors' assessment of independence, all members of the Board, except
Change in the composition of the Board and Audit Committee on 11 July 2023
Board member
The Board of Directors noted that after Korkiakoski resigned, the Board of Directors' composition continues to meet the requirements of the Articles of Association, and that the Shareholders' Nomination Committee would submit its proposal for the Board's composition no later than in
After Korkiakoski resigned, the composition of Lehto's Board of Directors no longer meets Recommendation No. 8 (Composition of the Board of Directors) of the Governance Code maintained by the
The members of the Board of Directors, except
In connection with the resignation of Korkiakoski, the Board also decided to change the composition of the Audit Committee such that
Shares and shareholdings
The closing price of the share on the main list of
On
On
The company did not receive any flagging notifications during the review period.
Transfers of own shares
In
Significant events after the reporting period
Outlook for 2024
In this situation, Lehto cannot present an estimate of its financial development.
Vantaa,
Board of Directors
+358 50 343 4023
juuso.hietanen@lehto.fi
+358 400 944 074
veli-pekka.paloranta@lehto.fi
TABLES
Continuity of operations
This financial statement information has not been prepared in accordance with the going concern principle. After the end of the financial period on
The covenant terms of the company's key RCF financing agreement were not met on the closing date. The responsibilities and obligations related to this financing agreement are taken into account in the Company's restructuring programme. The Company has also issued convertible bonds of
The continuity of the Company's operations involves significant uncertainties. The Company will not be able to continue to operate unless it sells assets or acquires new financing and starts new cash-flow generating business. Due to these factors, there are significant grounds for doubting that the Company will be able to continue to operate and make payments over the next 12 months. The future development of the company's cash assets will be influenced particularly by asset sales income, cash income and expenses related to new business and the schedule for the start-up of operations, financing acquired for new business and effects of the decisions made in the corporate restructuring proceedings of the parent company.
Accounting principles for financial statements
Accounting principles requiring management judgement and the main factors of uncertainty affecting the estimates
When preparing the financial statement information, the management's judgment has been particularly related to the assessment of the basis of the continuity of operations and the valuation of assets. The bankrupt subsidiaries have been consolidated to the financial statement information. After the end of the financial year, Lehto has lost control over the bankrupt companies. There is significant uncertainty regarding the group's ability to continue its operations, which is why the financial statement information have not been prepared based on the assumption of continuity of operations. The assets of bankrupt companies have been valued at a maximum of the total amount of their companies' debts, taking into account also the effects of impairment due to the loss of receivables realized in bankruptcy and the goodwill of the group, which in its entirety is directed to the bankrupt businesses written off the balance sheet.
The valuation of the assets remaining with the Group is based on an estimate of the amount of money that can be collected from the assets in situations where it falls below the accounting value formed on the basis of the continuity principle. The restructuring proceedings and restructuring program of the parent company may have a negative effect on the subsequent valuation of the assets remaining in the Group.
At the end of the financial year, the bankrupt companies had 5 unfinished projects in progress, two of which were completed and handed over before the bankruptcy. As a result of the bankruptcy, the construction sites of the bankrupt companies are no longer under the control of the Group, but the assets and liabilities of the subsidiaries in question are under the control of the bankruptcy estates.
In the financial statement information, the vast majority of current assets consist of the assets of companies that went bankrupt after the end of the financial year. The value of the inventory in question is based on the estimated net realizable value, taking into account the basis for valuing the total assets of bankrupt companies, according to which the assets are valued no more than the amount of the companies' total liabilities.
The Group's total goodwill,
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 7-12/ | 7-12/ | 1-12 / | 1-12 / |
EUR million | 2023 | 2022 | 2023 | 2022 |
Net sales | 57.2 | 180.9 | 171.8 | 344.8 |
Other operating income | 0.6 | 0.8 | 3.0 | 1.1 |
Changes in inventories | -42.1 | -24.5 | -78.1 | -5.8 |
Material and services | -41.2 | -146.5 | -116.1 | -312.1 |
Employee benefit expenses | -9.4 | -20.2 | -24.0 | -48.8 |
Depreciation and amortisation | -8.0 | -3.0 | -10.1 | -5.9 |
Other operating expenses | -9.9 | -8.1 | -17.4 | -15.5 |
Operating result | -52.7 | -20.7 | -71.0 | -42.2 |
Financial income | 0.1 | 0.0 | 0.1 | 0.0 |
Financial expenses | -3.5 | -2.0 | -6.1 | -3.4 |
Result before taxes | -56.2 | -22.7 | -77.0 | -45.5 |
Income taxes | 0.0 | -12.6 | -0.1 | -13.3 |
Result from continuing operations | -56.2 | -35.3 | -77.1 | -58.8 |
Result from discontinued operations | -0.1 | -0.5 | -0.1 | 32.1 |
Result for the period | -56.2 | -35.8 | -77.2 | -26.7 |
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Result attributable to |
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Equity holders of the parent company | -56.2 | -35.8 | -77.2 | -26.7 |
Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 |
| -56.2 | -35.8 | -77.2 | -26.7 |
Components of other comprehensive income |
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Items that may be reclassified subsequently to profit or loss |
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Translation difference | 0.1 | 0.0 | 0.1 | 0.0 |
| 0.1 | 0.0 | 0.1 | 0.0 |
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Comprehensive result, total | -56.1 | -35.7 | -77.1 | -26.6 |
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Comprehensive result attributable to |
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Equity holders of the parent company | -56.1 | -35.7 | -77.1 | -26.6 |
Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 |
| -56.1 | -35.7 | -77.1 | -26.6 |
Earnings per share calculated from the result attributable to shareholders of the parent company, EUR per share |
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Average number of (issue-adjusted) outstanding shares during the period, basic | 87,165,770 | 87,311,287 | 87,257,649 | 87,276,343 |
Average number of (issue-adjusted) outstanding shares during the period, diluted | 87,217,770 | 87,458,814 | 87,332,931 | 87,433,988 |
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Earnings per share from continuing operations, basic | -0.64 | -0.40 | -0.88 | -0.67 |
Earnings per share from continuing operations, diluted | -0.64 | -0.40 | -0.88 | -0.67 |
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Earnings per share from discontinued operations, basic | 0.00 | -0.01 | 0.00 | 0.37 |
Earnings per share from discontinued operations, diluted | 0.00 | -0.01 | 0.00 | 0.37 |
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Earnings per share, basic | -0.65 | -0.41 | -0.88 | -0.31 |
Earnings per share, diluted | -0.65 | -0.41 | -0.88 | -0.31 |
CONSOLIDATED BALANCE SHEET |
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EUR million | 2023/12/31 | 2022/12/31 |
Assets |
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Non-current assets |
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0.0 | 4.6 | |
Other intangible assets | 0.6 | 1.4 |
Property, plant and equipment | 8.1 | 13.6 |
Investment properties | 0.7 | 0.7 |
Investments and receivables | 4.2 | 7.4 |
Deferred tax assets | 0.0 | 0.0 |
Non-current assets total | 13.6 | 27.7 |
Current assets |
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Inventories | 73.8 | 172.1 |
Trade and other receivables | 12.1 | 50.4 |
Cash and cash equivalents | 6.1 | 13.2 |
Current assets total | 92.0 | 235.7 |
Non-current assets held for sale | 0.0 | 3.8 |
Assets, total | 105.6 | 267.2 |
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Equity and liabilities |
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Equity |
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Share capital | 0.1 | 0.1 |
Invested non-restricted equity reserve | 88.7 | 88.7 |
Translation difference | -0.1 | -0.2 |
Retained earnings | -22.0 | 4.6 |
Result for the financial period | -77.2 | -26.7 |
Equity attributable to shareholders of the parent company | -10.5 | 66.6 |
Non-controlling interest | 0.0 | 0.0 |
Equity total | -10.5 | 66.6 |
Non-current liabilities |
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Deferred tax liabilities | 0.0 | 0.0 |
Non-current provisions | 7.7 | 5.9 |
Financial liabilities | 0.0 | 11.7 |
Lease liabilities | 53.6 | 68.4 |
Other non-current liabilities | 0.1 | 0.2 |
Non-current liabilities total | 61.4 | 86.2 |
Current liabilities |
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Current provisions | 2.9 | 7.6 |
Financial liabilities | 20.6 | 22.2 |
Lease liabilities | 5.5 | 9.4 |
Liabilities to customers for constructing contracts (advances received) | 1.7 | 20.6 |
Trade and other payables | 23.9 | 54.6 |
Current liabilities total | 54.7 | 114.5 |
Liabilities total | 116.1 | 200.7 |
Equity and liabilities, total | 105.6 | 267.2 |
EUR million | Equity attributable to shareholders of the parent company |
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Equity at | 0.1 | 88.7 | -0.3 | 2.4 | 90.9 | 0.0 | 90.9 | ||
Comprehensive income |
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Result for the financial period |
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| 0.0 | -26.7 | -26.6 | 0.0 | -26.6 | ||
Total comprehensive income |
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| 0.0 | -26.7 | -26.6 | 0.0 | -26.6 | ||
Transactions with equity holders |
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The equity component separated from the convertible bond |
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| 2.2 | 2.2 |
| 2.2 | ||
Share-based compensation |
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| 0.0 | 0.0 |
| 0.0 | ||
Transactions with equity holders, total |
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| 2.3 | 2.3 |
| 2.3 | |||
Equity at | 0.1 | 88.7 | -0.2 | -22.0 | 66.6 | 0.0 | 66.6 | ||
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Equity at | 0.1 | 88.7 | -0.2 | -22.0 | 66.6 | 0.0 | 66.6 | ||
Comprehensive income |
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|
|
| ||
Result for the financial period |
|
| 0.1 | -77.2 | -77.1 | 0.0 | -77.1 | ||
Total comprehensive income |
|
| 0.1 | -77.2 | -77.1 | 0.0 | -77.1 | ||
Transactions with equity holders |
|
|
|
|
| ||||
Share-based compensation |
|
|
| 0.0 | 0.0 |
| 0.0 | ||
Repurchasing own shares |
|
|
| 0.0 | 0.0 |
| 0.0 | ||
Transactions with equity holders, total |
|
| 0.0 | 0.0 |
| 0.0 | |||
Equity at | 0.1 | 88.7 | -0.1 | -99.2 | -10.5 | 0.0 | -10.5 | ||
CONSOLIDATED CASH FLOW STATEMENT | 1-12 / | 1-12 / |
EUR million | 2023 | 2022 |
Cash flow from operating activities |
|
|
Result for the financial period | -77.2 | -26.7 |
Adjustments: |
|
|
Non-cash items | -2.9 | -8.3 |
Depreciation and amortisation | 10.1 | 5.9 |
Financial income and expenses | 5.9 | 3.3 |
Capital gains | -0.4 | -31.6 |
Income taxes | 0.1 | 13.7 |
Changes in working capital: |
|
|
Change in trade and other receivables | 42.2 | 25.6 |
Change in inventories | 83.4 | 8.9 |
Change in trade and other payables | -57.5 | -19.0 |
Interest paid and other financial expenses | -6.7 | -5.4 |
Financial income received | 0.1 | 0.1 |
Income taxes paid | -0.1 | -0.3 |
Net cash from operating activities | -2.9 | -33.7 |
Cash flow from investments |
|
|
Investment in property, plant and equipment | 0.0 | -0.4 |
Investment in other intangible assets | 0.0 | -0.4 |
Sale of discontinued operations (less cash at the time of sale) |
| 28.7 |
Proceeds from sale of tangible and intangible assets | 4.8 | 0.1 |
Financial assets at fair value through profit or loss | 0.0 | -0.2 |
Acquisition of associated companies | -0.8 |
|
Repayments of loan receivables | 0.0 | 0.0 |
Net cash from investments | 4.0 | 27.8 |
Cash flow from financing |
|
|
Loans drawn | 3.4 | 28.0 |
Loans repaid | -10.2 | -38.3 |
Lease liabilities paid | -1.4 | -2.2 |
Costs related to paid share issue | 0.0 | -1.1 |
Costs related to repurchasing own shares | 0.0 | 0.0 |
Net cash used in financing activities | -8.2 | -13.6 |
Change in cash and cash equivalents (+/-) | -7.1 | -19.5 |
Cash and cash equivalents at the beginning of the year | 13.2 | 32.8 |
Effects of exchange rate change | 0.0 | -0.1 |
Cash and cash equivalents at the end of the period | 6.1 | 13.2 |
7-12/ | 7-12/ | 1-12 / | 1-12 / | |
| 2023 | 2022 | 2023 | 2022 |
Net sales, EUR million | 57.2 | 180.9 | 171.8 | 344.8 |
Net sales, change % | -68.4% | -18.1% | -50.2% | -14.7% |
Operating result, EUR million | -52.7 | -20.7 | -71.0 | -42.2 |
Operating result, as % of net sales | -92.2% | -11.4% | -41.3% | -12.2% |
Result for the period, EUR million | -56.2 | -35.8 | -77.2 | -26.7 |
Result for the period, as % of net sales | -98.3% | -19.8% | -44.9% | -7.7% |
|
|
|
|
|
Equity ratio, % |
|
| -10.1% | 27.0% |
Net gearing ratio, % |
|
| -699.6% | 147.9% |
Return on equity, ROE, % |
|
| -275.4% | -33.8% |
Return on investment, ROI, % |
|
| -57.3% | -20.8% |
|
|
|
|
|
Order backlog, EUR million |
|
| 0.0 | 205.9 |
Personnel during the period, average |
|
| 483 | 860 |
Personnel at the end of period |
|
| 384 | 664 |
Gross expenditure on assets, EUR million |
|
| 0.1 | 0.8 |
Equity / share, EUR |
|
| -0.12 | 0.76 |
Earnings per share, basic | -0.64 | -0.41 | -0.88 | -0.31 |
Earnings per share, diluted | -0.64 | -0.41 | -0.88 | -0.31 |
Average number of (issue-adjusted) outstanding shares during the period, basic | 87,208,164 | 87,159,445 | 87,257,649 | 87,276,343 |
Average number of (issue-adjusted) outstanding shares during the period, diluted | 87,260,164 | 87,423,394 | 87,332,931 | 87,433,988 |
Number of (issue-adjusted) outstanding shares at the end of the period | 87,135,986 | 87,159,445 | 87,135,986 | 87,311,287 |
Market value of share at the end of period, EUR million |
|
| 1.6 | 15.0 |
|
|
|
|
|
Share prices, EUR |
|
|
|
|
Highest price, EUR |
|
| 0.33 | 0.94 |
Lowest price, EUR |
|
| 0.01 | 0.17 |
Average price, EUR |
|
| 0.09 | 0.51 |
Price at the end of period, EUR |
|
| 0.02 | 0.17 |
Share turnover, shares |
|
| 61,872,140 | 45,210,912 |
Share turnover out of average number of shares, % |
|
| 70.9% | 51.8% |
Price / Earnings |
|
| -0.02 | -0.56 |
|
|
|
|
|
LIABILITIES AND GUARANTEES |
|
|
EUR million | 2023/12/31 | 2022/12/31 |
Loans covered by pledges on assets |
|
|
Loans from financial institutions | 3.4 | 13.0 |
Debts on shares in unsold housing and real estate company shares | 2.2 | 9.2 |
Instalment debts | 0.0 | 0.0 |
Total | 5.7 | 22.2 |
|
|
|
Guarantees |
|
|
Company mortgages | 135.2 | 135.2 |
Real-estate mortgages | 102.8 | 213.5 |
Pledges | 3.7 | 13.3 |
Absolute guarantees | 0.0 | 0.2 |
Total | 241.7 | 362.2 |
|
|
|
Contract guarantees |
|
|
Production guarantees | 3.0 | 27.2 |
Warranty guarantees | 13.7 | 15.6 |
RS guarantees | 11.4 | 20.2 |
Payment guarantees | 0.0 | 2.4 |
Rent guarantees | 0.1 | 0.0 |
Total | 28.2 | 65.3 |
|
|
|
Contract guarantees |
|
|
Production guarantees | 0.9 | 1.5 |
The pledges are inventory items and other financing assets pledged as collateral for financial institution loans and loans for housing companies under construction. Pledges are presented at carrying amount.
The liabilities of bankrupt subsidiaries from contract guarantees amount to
REVENUE ANALYSIS
EUR million | 7-12/2023 | 7-12/2022 | 1-12/2023 | 1-12/2022 |
Revenue recognised over time | 36.0 | 133.2 | 112.4 | 270.0 |
Revenue recognised upon delivery | 21.1 | 47.5 | 59.2 | 74.6 |
Rental income | 0.1 | 0.2 | 0.3 | 0.3 |
Total | 57.2 | 180.9 | 171.8 | 344.8 |
SEGMENT INFORMATION
The Group has one operating segment,
RELATED PARTIES
The Group's related parties include Group companies, members of the
Transactions with related parties |
|
|
|
|
| Sales | Sales | Purchases | Purchases |
EUR million | 1-12/2023 | 1-12/2022 | 1-12/2023 | 1-12/2022 |
Key personnel and their controlled entities | 0.4 | 5.2 | 3.7 | 9.1 |
Total | 0.4 | 5.2 | 3.7 | 9.1 |
|
|
|
|
|
| Receivables | Receivables | Liabilities | Liabilities |
EUR million | 2023/12/31 | 2022/12/31 | 2023/12/31 | 2022/12/31 |
Key personnel and their controlled entities | 0.6 | 0.7 | 0.3 | 0.2 |
Total | 0.6 | 0.7 | 0.3 | 0.2 |
A major part of related party transactions is connected with purchase of apartments and other premises from the company. The transactions are valued at the debt-free selling price of the completed site. Purchases are mainly equipment rents and other service purchases. There have been no transactions with associates.
https://news.cision.com/lehto-group-oyj/r/lehto-group-plc--financial-statement-bulletin-1-jan---31-dec-2023,c3953042
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