Financial statement bulletin 1 January -
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 2020
Group | 10-12/2020 | 10-12/2019 | 1-12/2020 | 1-12/2019 |
Net sales, EUR million | 169.7 | 269.9 | 544.7 | 667.7 |
Change in net sales, % | -37.1% | 16.5% | -18.4% | -7.5% |
Operating result, EUR million | 4.9 | 0.1 | -2.9 | -41.8 |
Operating result, % of net sales | 2.9% | 0.0% | -0.5% | -6.3% |
Result for the period, EUR million | 0.8 | 0.4 | -8.2 | -35.7 |
Order backlog at period end, EUR million | 426.3 | 481.8 | 426.3 | 481.8 |
Earnings per share, EUR 1) | 0.01 | 0.01 | -0.12 | -0.51 |
Cash and cash equivalents, EUR million | 105.1 | 59.2 | 105.1 | 59.2 |
Interest-bearing liabilities, EUR million | 113.7 | 189.2 | 113.7 | 189.2 |
Lease liabilities in interest-bearing liabilities, EUR million | 33.3 | 46.8 | 33.3 | 46.8 |
Equity ratio, % | 38.7% | 29.6% | 38.7% | 29.6% |
Net gearing ratio, % | 7.0% | 115.9% | 7.0% | 115.9% |
Equity ratio, excl. IFRS 16 lease liabilities, % | 43.2% | 33.8% | 43.2% | 33.8% |
Net gearing ratio, excl. IFRS 16 lease liabilities, % | -19.9% | 74.1% | -19.9% | 74.1% |
1) The figures for 2019 have been adjusted for the share issue carried out in |
2020 in brief:
- Operations focused on implementing the company's revitalisation programme as well as stabilising processes and operating methods.
-
Net sales were down 18.4% on the previous year and amounted to
EUR 544.7 (667.7) million. Net sales decreased in both the Housing and Business Premises service areas. The main reasons behind the decline in net sales are the waning care home market, the delayed start-ups of new projects due to the coronavirus pandemic, and the company's shift of focus in 2019 to projects aligned with its strategy. -
The operating result improved significantly year-on-year and amounted to
EUR -2.9 (-41.8) million. The improvement in the operating result can be primarily attributed to the discontinuation or reorganisation of loss-making business functions. The result was burdened especially by school projects with weak margins and losses in operations inSweden . -
An oversubscribed rights issue was carried out in November-December. The net proceeds of
EUR 19.3 million received from the offering increased both equity and cash and cash equivalents. - Solvency developed and indebtedness decreased significantly. Equity ratio (without the lease liabilities under IFRS 16) rose to 43.2% (33.8%) and the net gearing ratio declined to -19.9% (74.1%).
-
Cash flow from operating activities was
EUR 73.6 million positive. Net cash flow wasEUR 45.8 million and cash and cash equivalents amounted toEUR 105.1 (59.2) million at the end of the review period. -
The order backlog decreased to
EUR 426.3 (481.8) million as company focused on projects with good strategic fit and fewer developer contracted housing projects were started up. - The Board of Directors proposes that no dividend be paid for the financial year.
Net sales by service area, EUR million | 1-12/2020 | 1-12/2019 | Change |
Business Premises | 171.7 | 201.8 | -14.9% |
Housing | 372.9 | 465.9 | -20.0% |
Total | 544.7 | 667.7 | -18.4% |
Net sales and operating profit by quarter, EUR million | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | 2020 |
Net sales | 119.4 | 135.1 | 120.4 | 169.7 | 544.7 |
Operating result | -3.5 | -1.6 | -2.6 | 4.9 | -2.9 |
July-
Net sales for the second half of the year amounted to
Operating result for July-December was
CEO
"2020 showed that difficulties can be overcome with a strong will and hard work. Our employees focused on working without compromises towards Lehto's future. The focus of our operations was on implementing the revitalisation programme as well as stabilising our processes and operating methods. We have achieved good results in these efforts. Project preparation, evaluation and implementation are now carried out in a more well-established way, which can be seen in, for instance, the decrease in project margin variations. Profitability took a clear turn for the better and the operating result for the last quarter was
Our net sales were down about 18 per cent, especially due to the decrease in net sales from care home and housing construction. The downswing in the construction market that began in the previous year and the coronavirus pandemic that was felt during the entire year contributed to the decline in net sales.
In the last quarter, we carried out a rights issue that was oversubscribed. As a result of the share issue and the positive trend in full-year cash flow, our cash and cash equivalents amounted to
In the autumn, we reviewed our strategy and concluded that our key competitive factors - design management, standardisation of products and operating methods, and factory production - are still at the heart of our operations. However, we identified some priority areas we must pay particular attention to in the 2021-2023 strategy period. These include sustainable construction, proactive sales, harnessing digitalisation, developing the customer experience as well as enhancing professional skills and a positive working atmosphere.
During the strategy period running until the end of 2023, we primarily seek to improve profitability strongly. Our objective is to also substantially increase the relative share of our housing production accounted for by wooden apartment buildings. We are also investigating possibilities for harnessing our expertise in prefabricated space elements more extensively in areas other than housing construction, leasing out temporary modular premises, and expanding our offering to lifecycle services.
I would like to thank our employees for all their work on overcoming the difficulties we faced in the year now ended and revitalising our operations. The company is now on solid ground and we can more clearly focus on our strengths.
As the company's situation stabilises, it is time to generate new energy for Lehto's next phase of development. At the beginning of May,
Outlook for 2021
Lehto estimates that net sales in 2021 will be lower than in previous year (
The outlook is based on the current assessment by the company's management of progress on ongoing construction projects, the trend in sales of housing and business premises, and the start-up schedules of new projects.
The main risks to the development of net sales and operating result in 2021 concern the trend in sales of housing and business premises as well as potential interruptions of construction site operations due to the coronavirus pandemic. It is expected that the pandemic will continue to create market uncertainty as well as impact on both general economic development in
Online press conference on the financial statements
The press conference will be webcast live at lehto.fi/sijoittajille. The live webcast will begin at
A recording will be made available at the same address as soon as possible after the conference.
Business environment and business development in 2020
Development of the market environment
In 2020, construction activity in
In its outlook report published in
It should be noted that construction forecasts change rapidly and indicators of future development can only be seen with a delay. According to the statistics published by Statistics Finland on
Building permits for a total of 11,936 housing units were granted in the September-November period, year-on-year growth of 21.2 per cent. At the same time, the construction of a total of 13,222 housing units was started up and 10,349 were completed.
HOUSING
In the Housing service area, Lehto builds new blocks of flats in growth centres, carries out pipeline renovations, largely in the
In line with the strategy updated in autumn 2020, the Housing service area seeks to produce "ingenious urban homes for everyone". Operations focus on growing university towns, where Lehto wants to enable households with low and medium incomes to live in high-quality housing. Affordably priced and comfortable urban homes are the result of diligent housing design and standardised construction solutions created through long-term development efforts. In spite of our standardised approach to production, our residential properties are architecturally highly diverse. We build with wood and stone, utilising the company's highly advanced
The Housing service area is divided into developer-contracted production and contracting projects. In Lehto's developer-contracted housing projects, the company designs and builds properties on land areas that it has purchased and then sells the completed apartments to customers. These customers include private persons as well as private and institutional investors. In its care home business, Lehto designs and builds care homes and assisted living units for both care operators and municipalities.
Most of Lehto's current housing projects are concrete apartment buildings and are built using the kitchen/bathroom modules developed and manufactured by Lehto. These modules include the main electricity, water, heat, ventilation and sewerage solutions for the apartment and building. The modules are completely prefabricated at Lehto's own factories and transported to the construction site, where they are lowered into the building through the roof and connected to each other. This patented building method speeds up construction, improves quality and produces cost savings.
An increasing share of Lehto's housing production comprises apartment buildings that are constructed using wooden elements. Apartments in this product family are manufactured as space elements in the company's own factories in
In its care home business, Lehto designs and builds care homes and assisted living units for both care operators and municipalities. These construction projects are implemented either under ordinary construction contracts or as investment transactions, where Lehto signs a lease agreement with the service operator and sells the completed property to a party that invests in properties in the sector. The majority of care homes are 1-2-storey concrete or wooden buildings. Going forward, care homes and assisted living units will expand Lehto's offering in larger project packages in city centres and suburban areas.
Business development in 2020
Net sales in the Housing service area declined by 20.0% year-on-year to
During the review period, 2,110 (1,837) housing units were sold, of which 528 (1,499) were developer contracted. Contract projects include 402 units in the last three housing projects in the DWS portfolio, which were handed over in 2020.
Housing sales to consumers and small investors were as expected in January-February, but the coronavirus pandemic led to a clear fall in demand in March-May before returning to the projected level in the summer. Sales went well in the autumn. In the second half of the year, 309 developer contracted housing units were sold.
Sold housing units during the review period | 1-12/2020 | 1-12/2019 |
Contract | 1,582 | 338 |
Developer contract | 528 | 1,499 |
Sold housing units during the review period, total | 2,110 | 1,837 |
During the review period, 1,459 (2,872) housing units were completed and the construction of 1,508 (1,035) new units was started. More than 70% of start-ups were in the
Housing units under construction | 1-12/2020 | 1-12/2019 |
Under construction at the beginning of the period | 1,485 | 3,322 |
+ started up during the period | 1,508 | 1,035 |
- postponed project | -90 | |
- completed during the period | -1,459 | -2,872 |
Housing units under construction, total | 1,444 | 1,485 |
At the end of the review period, 174 housing units were either under construction or completed yet unsold. This is noticeably less than during the comparison period (794). Of these, 56 were completed, unsold apartments. This is due not only to the good trend in sales, but also the fact that the focus in housing projects has shifted from developer contracting to contract projects. In a contract project, all the housing units are considered to have been sold at the time of signing.
Unsold housing units | ||
Under construction | 118 | 518 |
Completed | 56 | 276 |
Unsold housing units, total | 174 | 794 |
including DWS units | 0 | 402 |
The Housing service area's order backlog declined to
During the review period, a long project development phase was wrapped up when the agreements for a housing complex project in Kalasatama,
Two major portfolio deals were also made during the review period. In June, Lehto and
Pipeline renovations
Pipeline renovations are carried out by Lehto's Housing service area. The pipeline renovation business has remained stable and eight projects were completed during the review period. Twenty-eight properties were under construction at the end of the review period.
Work on construction sites has continued to go well in spite of the exceptional circumstances resulting from the state of emergency. The required communication with housing companies and their shareholders has been carried out remotely.
Demand from housing companies has also remained good, although some delays were seen in decision-making. In Lehto's opinion, demand for pipeline renovations will remain stable in the future, and all project-related decisions and communications with customers can be handled remotely in an effective manner.
In November, Lehto announced that it had made a significant agreement on pipeline renovations in Siltamäki,
Care home construction
The care home unit was operatively transferred to the Housing service area on
BUSINESS PREMISES
In the Business Premises service area, Lehto builds retail premises; logistics, warehouse and production facilities; leisure facilities; large shopping and activity centres; and offices. As of
Business premises are designed according to customers' needs and are built using the structural and spatial solutions that have been developed or tried and tested by Lehto. This area serves local, national and international customers; and also municipalities in the case of schools and daycare centres.
Business Premises conducts most of its operations using a `design and implement' model in which Lehto is responsible for both the design and actual construction. Lehto also builds some business premises in the form of developer contracting, which means that Lehto acquires the plot and then designs and builds the property either wholly or partly at its own risk.
Following the strategy update in autumn 2020, the Business Premises service area will focus more closely on selecting projects that are in line with the strategy and concept as well as enhancing planning control. In addition, the company seeks to bolster ecological friendliness in construction.
Business development in 2020
Net sales in the Business Premises service area declined by 14.9% year-on-year to
During the review period, 21 business premises (24 in 2019) were completed and handed over, of which the most significant were a logistics centre in Kerava and the Prisma in Varkaus. At the end of the review period, 13 (20) projects were under construction, most notably three hotel projects in the
New contract agreements valued at
Lehto has developed the Hippos2020 project with the City of Jyväskylä. Uncertainties related to the project have increased due to the coronavirus pandemic, but Lehto and the City of Jyväskylä are still developing the project.
Complete renovation operations
Lehto's
In the future, new complete renovation projects will only be undertaken selectively on condition that the renovation is related to new construction projects or when it is a significant part of a larger commercial entity.
School business
The school business was operatively transferred to the Business Premises service area on
Six schools (3) and two daycare centres (0) were completed and handed over during the review period. One school (6) and one daycare centre (3) were under construction at the end of the period.
On
SWEDISH OPERATIONS
During the review period, the focus of Swedish operations was on starting up the construction of wooden blocks of flats and completing an ongoing daycare centre project. Swedish operations had a negative effect on the Group's operating result for 2020.
Lehto has developed a type of wooden block of flats based on prefabricated room elements that is especially suitable for the Swedish market. Lehto is currently negotiating with customers and financiers on the implementation of the first pilot project.
FACTORY PRODUCTION
The use of prefabricated products lies at the core of Lehto's business. Lehto manufactures a variety of building modules and elements at its own production facilities, primarily for its own use. In 2020, it also sold small quantities of these products outside the Group.
The major share of the factory production comprises kitchen-bathroom modules for concrete-frame apartment buildings, space elements for wooden apartment buildings and large roof elements for large business premises. In addition, Lehto manufactures external wall elements, aluminium doors, windows as well as kitchen and other fixtures at its factories.
In 2020, its factories made a total of 230 room elements, about 1,300 kitchen-bathroom modules, around 60,000 m² of roof elements and approximately 26,000 m² of external wall elements. Lehto's current factory and equipment capacity enables the company to produce larger quantities as industrial manufacture increases during the strategy period.
Lehto has production facilities in Oulainen, Hartola, Siikajoki and Ii, totalling about 50,000 m². At the end of the review period, 236 people worked in factory operations (285 on
Balance sheet and financial position
Consolidated balance sheet, EUR million | ||
Non-current assets | 63.4 | 55.8 |
Current assets | ||
Inventories, excluding IFRS 16 assets | 107.7 | 210.3 |
Inventories, IFRS 16 assets | 28.0 | 40.1 |
Current receivables | 79.7 | 86.3 |
Cash and cash equivalents | 105.1 | 59.2 |
Total assets | 383.8 | 451.8 |
Equity | 123.6 | 112.1 |
Financial liabilities | 80.4 | 142.4 |
Lease liabilities | 33.3 | 46.8 |
Advances received | 64.4 | 73.2 |
Other payables | 82.1 | 77.3 |
Total equity and liabilities | 383.8 | 451.8 |
The balance sheet total decreased by
Equity and liabilities
Equity grew to
Financial liabilities decreased to
Interest-bearing liabilities | ||
Revolving credit facility (RCF) | 39.0 | 54.1 |
Project-specific loans | 5.0 | 48.4 |
RS loans related to unsold apartments in developer contracted housing projects | 13.2 | 32.9 |
Investment loans | 5.8 | 7.0 |
VAT payment arrangement | 17.3 | 0.0 |
Financial liabilities, total | 80.4 | 142.4 |
IFRS 16 lease liabilities | 33.3 | 46.8 |
Interest-bearing liabilities, total | 113.7 | 189.2 |
IFRS 16 lease liabilities are based on the company's lease payment obligations. In line with IFRS 16, which came into force on
Advances received declined to
Other liabilities rose slightly to
Assets
Non-current assets amounted to
Inventories decreased to
Current receivables declined to
Cash flow statement, EUR million | 1-12/2020 | 1-12/2019 |
Cash flow from operating activities | ||
Profit for the period + adjustments to accrual-based items | 2.4 | -34.3 |
Change in net working capital | 71.1 | 23.2 |
Total cash flow from operating activities | 73.6 | -11.1 |
Cash flow from investments | -1.7 | -6.6 |
Cash flow from financing | -26.0 | 23.5 |
Change in cash and cash equivalents | 45.8 | 5.9 |
Cash and cash equivalents at the beginning of the period | 59.2 | 53.4 |
Cash and cash equivalents at the end of the period | 105.1 | 59.2 |
Cash and cash equivalents grew by
Net cash flow from operating activities was
Net cash flow from investments was
Net cash flow from financing was
Excl. IFRS 16 lease liabilities | Incl. IFRS 16 lease liabilities | ||||||
Financial position, EUR million | Change | Change | |||||
Cash and liquid assets | 105.1 | 59.2 | 45.8 | 105.1 | 59.2 | 45.8 | |
Interest-bearing liabilities | 80.4 | 142.4 | -62.0 | 113.7 | 189.2 | -75.5 | |
Interest-bearing net debt | -24.7 | 83.1 | -107.8 | 8.6 | 129.9 | -121.3 | |
Equity ratio, % | 43.2% | 33.8% | 9.4% | 38.7% | 29.6% | 9.1% | |
Net gearing ratio, % | -19.9% | 74.1% | -94.1% | 7.0% | 115.9% | -108.9% |
New financing agreement on
The other party in the new credit facility is the same bank syndicate comprising
Rights issue
As a result of the offering, the total number of shares in the company increased by 29,029,967 shares from 58,309,443 shares to 87,339,410 shares. As a result of the offering, the company received net proceeds of approximately
VAT payment arrangement with the Tax Administration
In
Personnel
The average number of personnel during the review period was 1,115 (1,454). The number of personnel at period end was 1,034 (1,274 on
On
On
The company has a long-term share-based incentive plan in place. The aim of the plan is to combine the objectives of the shareholders and the key employees in order to increase the value of the company in the long term and to commit key employees to the company. The plan is directed at a maximum of 70 key employees and the rewards are paid after a restriction period of two years, partly in the company's shares and partly in cash. The cash proportion is intended to cover taxes and tax-related costs arising from the reward.
On
On
Research and development
Lehto develops and manufactures building modules and components, such as bathroom/kitchen modules, housing space elements, wall elements, large roof elements, technical building modules, windows and some smaller pipeline renovation modules 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 is part of continuing operations, and the related costs are largely recorded as an expense in the income statement. Capitalised development expenditure during the financial year amounted to
Risks and uncertainty factors
Lehto assesses risks in its daily operations on a continual basis and develops Group-wide risk management practices together with its operative companies. Through the continuous development of risk management, we seek to attract new business opportunities and partners, as well as to further improve the profitability and predictability of our operations. Further improvement of risk management and responding to the challenges of a growing business are Lehto's top operational priorities.
The main risks in the operative business include general risks related to project pricing, schedules, quality, technical implementation and the adherence of stakeholders to agreements. Lehto's reliance on module production and the partial dependence of its housing production on the schedule and efficiency of module production present a risk related to deviations or interruptions in the implementation of modular products.
In its business operations, Lehto is also exposed to risks relating to the availability of financing, overall economic trends and political decision-making and other risks relating to the activities of the public sector. As part of its operational business, Lehto continuously concludes agreements with various parties. The related risks include the technical, legal and commercial condition of the acquired property. The unique and complex construction projects in Lehto's Business Premises service area, in particular, always involve risks related to implementation and costs.
Lehto's business is partly so-called traditional contracting and partly its own production, where the final customer is not always known when starting the construction project. These business models involve different risks. In traditional contracting, project income is recognised according to the degree of completion. The main risk in this model is that total costs for the project exceed the estimated costs or the completion of the project is delayed.
The main risk in own production is that the company is not able to sell the production within the planned time schedule or at the planned price. In addition, project costs can exceed the estimated costs. Failure in project pricing, technical implementation, estimating costs and time schedule, selling the property or finding financing can have a negative impact on the company's result and financial position.
Part of Lehto's business involves agreements according to which Lehto builds premises in line with the customer's needs and only sells the premises upon their completion or at a later stage to a fund, for example. Despite Lehto's completion of premises according to the agreed schedule and costs, Lehto carries a risk related to the capacity of the fund to provide the cash required for the purchase of the premises at the agreed time of payment.
The project business the Group carries out is characterised by variation, which can be significant, in profit between different reporting periods due to the accounting methods of projects. The Group's cash flow is usually generated in step with a project's degree of completion, however such that the last instalment payable after the completion is bigger than the other instalments. Thereby a delay of an individual project can have an effect on the sufficiency of financing. In addition, a project delay may mean that net sales and operating profit from that project are pushed back to the next financial period, thereby weakening net sales and operating profit in the current financial period.
The Group's business operations tie up working capital in inventories and receivables in particular. If the company's business is expanding while large purchase commitments for plots are realised and receivable payments from customers are delayed, the company may find itself in a situation in which its additional financing costs will increase.
Changing building regulations or zoning policies can also have significant effects on the company's business. In a period of economic growth in construction, the availability of skilled labour may also present a risk for the planned launch of a project in the agreed schedule.
Lehto aims to control risks at each level of the organisation. Risk management includes risk identification, estimation and plans to avoid them. More information on Lehto's risks and risk management is available at www.lehto.fi.
Key risks during 2021
Although the coronavirus pandemic has not had significant effects on Lehto's operations thus far, it is expected that the pandemic will continue to create uncertainty in the market and impact on
Lehto estimates that customers' possibilities in obtaining financing for construction projects have become more difficult in 2020 and that their difficulties may delay or even cancel the launch of new construction projects.
In the construction industry, clients and partners are normally granted guarantees through specialised insurance companies. Lehto estimates that it is now harder to obtain such guarantees, which increases the risk of delays in the start-up of construction projects.
Due to the general economic situation and uncertainty, consumers and private investors may be more cautious in making purchase decisions on housing. It is possible that the trend in apartment sales will be more sluggish than expected and that selling prices will have to be lowered in order to promote sales.
As employees work closely together on Lehto's construction sites, coronavirus cases may arise in spite of the preventive measures in place, and this could also slow down progress. Coronavirus cases among subcontractors and goods suppliers could also cause delays to projects. Construction sites may have to be closed down and work put on hold. As a result, the degree of completion of projects might be lower than expected, delaying the accrual of net sales and operating result.
Shares and shareholdings
Lehto is listed on the official list of
Lehto carried out a rights issue in November-December, as a result of which the number of shares in the company rose by 29,029,967 from 58,309,443 to 87,339,410. As a result of the offering, the company received net proceeds of approximately
The closing price of the share on the main list of
Lehto's Annual General Meeting of
The AGM also decided to authorise the Board of Directors to decide on the issue of a maximum of 5,800,000 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. Among other things, the authorisation can be used to develop capital structure, to expand the ownership base, to implement incentive systems, and as a consideration in transactions when the company purchases assets linked to its operations. An authorisation to acquire 5,320,000 shares is valid until
The company did not receive any flagging notifications during the review period.
Repurchase and transfer of own shares
On
On
On
At the end of the financial year, the company held 249,509 treasury shares.
Decisions by the Annual General Meeting
In accordance with the proposal of the Board of Directors, the Annual General Meeting of
The AGM confirmed the number of Board members to be five. Pursuant to the proposal made by the shareholders' nomination committee,
At its organisation meeting, the Board of Directors decided to elect
The above-mentioned and other decisions of the Annual General Meeting were disclosed in the stock exchange release of
Decisions of the Extraordinary General Meeting
The Extraordinary General Meeting authorised the Board of Directors to decide on the issue of a maximum of 60,000,000 new shares in order to execute a rights issue. This share issue seeks to improve the company's ability to realise its strategy and develop a construction method based on modular prefabricated elements. These shares will be offered to the company's shareholders for subscription in proportion to their holding of company shares as at the record date of the rights issue. The authorisation further authorises the Board of Directors to secondarily offer any shares that remain unsubscribed to other shareholders or to third parties for subscription. The authorisation may only be exercised for the execution of one rights issue. The Board of Directors is authorised to make decisions on all other conditions and circumstances pertaining to the rights issue.
The authorisation shall remain in force until the end of the next Annual General Meeting, though no further than
The above-mentioned and other decisions of the extraordinary General Meeting were disclosed in the stock exchange release of
Other significant events during the review period
Events after the review period
No such events have occurred after the end of the reporting period that would have a significant or exceptional effect on the company's result, financial position or business development.
Board proposal for the use of the profit shown on the balance sheet and for deciding on payment of dividends
The parent company's distributable equity on the balance sheet of
The Board of Directors will propose to the Annual General Meeting to be held on
Vantaa,
Board of Directors
TABLES
The accounting policies and formulas of key figures applied in this review are mainly the same as in the latest annual report.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 7-12/ | 7-12/ | 1-12 / | 1-12 / |
EUR million | 2020 | 2019 | 2020 | 2019 |
Net sales | 290.2 | 421.4 | 544.7 | 667.7 |
Other operating income | 0.5 | -0.2 | 1.0 | 1.5 |
Changes in inventories | -68.2 | -126.4 | -98.7 | -35.7 |
Capitalised production | 0.0 | 0.0 | 0.0 | 0.0 |
Raw materials and consumables used | -80.5 | -84.8 | -168.8 | -225.0 |
External services | -100.4 | -170.7 | -194.6 | -335.6 |
Employee benefit expenses | -29.7 | -37.3 | -63.7 | -82.2 |
Depreciation and amortisation | -3.8 | -4.1 | -7.6 | -8.2 |
Other operating expenses | -5.8 | -12.1 | -15.0 | -24.3 |
Operating result | 2.3 | -14.3 | -2.9 | -41.8 |
Financial income | 0.3 | 0.1 | 0.3 | 0.3 |
Financial expenses | -2.2 | -2.9 | -4.3 | -4.0 |
Share of associated company profits | 0.0 | 0.0 | 0.0 | 0.0 |
Result before taxes | 0.4 | -17.1 | -6.8 | -45.5 |
Income taxes | -2.8 | 4.1 | -1.3 | 9.8 |
Result for the period | -2.4 | -13.0 | -8.2 | -35.7 |
Result attributable to | ||||
Equity holders of the parent company | -2.4 | -13.0 | -8.2 | -35.8 |
Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 |
-2.4 | -13.0 | -8.2 | -35.7 | |
Components of other comprehensive income | ||||
Items that may be reclassified subsequently to profit or loss | ||||
Translation difference | 0.1 | -0.1 | 0.1 | -0.1 |
0.1 | 0.1 | -0.1 | ||
Comprehensive result, total | -2.3 | -13.0 | -8.1 | -35.9 |
Comprehensive result attributable to | ||||
Equity holders of the parent company | -2.3 | -13.0 | -8.1 | -35.9 |
Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 |
-2.3 | -13.0 | -8.1 | -35.9 | |
Earnings per share calculated from the result attributable to shareholders of the parent company, EUR per share 1) | ||||
Average number of outstanding shares during the period, basic | 72,863,955 | 70,612,735 | 71,012,014 | 70,597,352 |
Earnings per share, basic | -0.03 | -0.18 | -0.12 | -0.51 |
Average number of outstanding shares during the period, diluted | 73,485,279 | 70,767,245 | 71,330,955 | 70,752,453 |
Earnings per share, diluted | -0.03 | -0.18 | -0.11 | -0.51 |
1) 2019 is issue-adjusted due share issue in |
CONSOLIDATED BALANCE SHEET | ||||
EUR million | ||||
Assets | ||||
Non-current assets | ||||
4.6 | 4.6 | |||
Other intangible assets | 4.5 | 4.7 | ||
Property, plant and equipment | 22.7 | 26.6 | ||
Investment properties | 0.7 | 0.7 | ||
Investments and receivables | 15.4 | 2.7 | ||
Deferred tax assets | 15.4 | 16.5 | ||
Non-current assets total | 63.4 | 55.8 | ||
Current assets | ||||
Inventories | 135.7 | 250.4 | ||
Trade and other receivables | 79.7 | 86.3 | ||
Cash and cash equivalents | 105.1 | 59.2 | ||
Current assets total | 320.4 | 396.0 | ||
Assets total | 383.8 | 451.8 | ||
Equity and liabilities | ||||
Equity | ||||
Share capital | 0.1 | 0.1 | ||
Invested non-restricted equity reserve | 88.7 | 69.2 | ||
Translation difference | -0.2 | -0.3 | ||
Retained earnings | 43.3 | 78.9 | ||
Result for the financial period | -8.2 | -35.8 | ||
Equity attributable to shareholders of the parent company | 123.6 | 112.1 | ||
Non-controlling interest | 0.0 | 0.0 | ||
Equity total | 123.6 | 112.1 | ||
Non-current liabilities | ||||
Deferred tax liabilities | 0.3 | 0.6 | ||
Provisions | 12.5 | 9.4 | ||
Financial liabilities | 10.0 | 5.9 | ||
Lease liabilities | 31.5 | 44.7 | ||
Other non-current liabilities | 0.1 | 0.1 | ||
Non-current liabilities total | 54.5 | 60.6 | ||
Current liabilities | ||||
Financial liabilities | 70.4 | 136.4 | ||
Lease liabilities | 1.8 | 2.1 | ||
Advances received | 64.4 | 73.2 | ||
Trade and other payables | 69.1 | 67.2 | ||
Current liabilities total | 205.7 | 279.0 | ||
Liabilities total | 260.2 | 339.6 | ||
Equity and liabilities total | 383.8 | 451.8 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||
EUR million | Equity attributable to shareholders of the parent company | ||||||
Share capital | Invested non-restricted equity reserve | Translation difference | Retained earnings | Equity attr.to sharehold. f the parent company | Non-controlling interest | Equity, total | |
Equity at | 0.1 | 69.2 | -0.2 | 93.0 | 162.1 | 0.3 | 162.3 |
Comprehensive income | |||||||
Result for the financial period | -0.1 | -35.8 | -35.9 | -35.9 | |||
Total comprehensive income | -0.1 | -35.8 | -35.9 | -35.9 | |||
Transactions with equity holders | |||||||
Distribution of dividends | -14.0 | -14.0 | -14.0 | ||||
Share-based compensation | -0.1 | -0.1 | -0.1 | ||||
Transactions with equity holders, total | -14.0 | -14.0 | -14.0 | ||||
Changes in holdings in subsidiaries | |||||||
Acquisitions of non-controlling interest | -0.3 | -0.3 | |||||
Equity at | 0.1 | 69.2 | -0.3 | 43.2 | 112.1 | 0.0 | 112.1 |
Equity at | 0.1 | 69.2 | -0.3 | 43.2 | 112.1 | 0.0 | 112.1 |
Comprehensive income | |||||||
Result for the financial period | 0.1 | -8.2 | -8.1 | 0.0 | -8.1 | ||
Total comprehensive income | 0.1 | -8.2 | -8.1 | 0.0 | -8.1 | ||
Transactions with equity holders | |||||||
Distribution of dividends | 0.0 | 0.0 | 0.0 | ||||
Share issue | 20.3 | 20.3 | 20.3 | ||||
Direct expenses related to share issue deducted from the tax effect | -0.8 | -0.8 | -0.8 | ||||
Share-based compensation | 0.6 | 0.6 | 0.6 | ||||
Repurchasing own shares | -0.5 | -0.5 | -0.5 | ||||
Transactions with equity holders, total | 19.5 | 0.1 | 19.6 | 19.6 | |||
Equity at | 0.1 | 88.7 | -0.2 | 35.1 | 123.6 | 0.0 | 123.6 |
CONSOLIDATED CASH FLOW STATEMENT | 1-12 / | 1-12 / |
EUR million | 2020 | 2019 |
Cash flow from operating activities | ||
Profit for the financial period | -8.2 | -35.7 |
Adjustments: | ||
Non-cash items | 3.7 | 3.2 |
Depreciation and amortisation | 7.6 | 8.2 |
Financial income and expenses | 4.0 | 3.7 |
Capital gains | 0.0 | -0.8 |
Income taxes | 1.3 | -9.8 |
Changes in working capital: | ||
Change in trade and other receivables | -6.4 | 48.9 |
Change in inventories | 104.0 | 27.9 |
Change in trade and other payables | -26.5 | -53.6 |
Interest paid and other financial expenses | -6.2 | -3.3 |
Financial income received | 0.3 | 0.3 |
Income taxes paid | -0.1 | 0.0 |
Net cash from operating activities | 73.6 | -11.1 |
Cash flow from investments | ||
Investment in property, plant and equipment | -0.5 | -4.1 |
Investment in other intangible assets | -1.4 | -3.6 |
Sales of associates | 1.6 | |
Proceeds from sale of tangible and intangible assets | 0.0 | 0.1 |
Financial assets at fair value through profit or loss | 0.0 | -0.6 |
Loans granted | -0.5 | 0.0 |
Repayments of loan receivables | 0.8 | 0.0 |
Net cash from investments | -1.7 | -6.6 |
Cash flow from financing | ||
Loans drawn | 39.9 | 132.6 |
Loans repaid | -82.3 | -90.1 |
Lease liabilities paid | -2.5 | -4.7 |
Acquisition of non-controlling interest | -0.3 | |
Dividends paid | 0.0 | -14.0 |
Paid share issue | 20.3 | |
Costs related to paid share issue | -1.0 | |
Costs related to repurchasing own shares | -0.5 | |
Net cash used in financing activities | -26.0 | 23.5 |
Change in cash and cash equivalents (+/-) | 45.8 | 5.9 |
Cash and cash equivalents at the beginning of the year | 59.2 | 53.4 |
Effects of exchange rate change | 0.0 | 0.0 |
Cash and cash equivalents at the end of the period | 105.1 | 59.2 |
7-12/ | 7-12/ | 1-12 / | 1-12 / | |||||
2020 | 2019 | 2020 | 2019 | |||||
Net sales, EUR million | 290.2 | 421.4 | 544.7 | 667.7 | ||||
Net sales, change % | -31.1% | -1.9% | -18.4% | -7.5% | ||||
Operating result, EUR million | 2.3 | -14.3 | -2.9 | -41.8 | ||||
Operating result, as % of net sales | 0.8% | -3.4% | -0.5% | -6.3% | ||||
Result for the period, EUR million | -2.4 | -13.0 | -8.2 | -35.7 | ||||
Result for the period, as % of net sales | -0.8% | -3.1% | -1.5% | -5.4% | ||||
Equity ratio, % | 38.7% | 29.6% | ||||||
Gearing, % | 40.0% | 49.9% | ||||||
Net gearing ratio, % | 7.0% | 115.9% | ||||||
Return on equity, ROE, % | -7.0% | -27.8% | ||||||
Return on investment, ROI, % | -0.9% | -16.4% | ||||||
Order backlog, EUR million | 426.3 | 481.8 | ||||||
Personnel during the period, average | 1 115 | 1 454 | ||||||
Personnel at the end of period | 1 034 | 1 274 | ||||||
Gross expenditure on assets, EUR million | 2.0 | 7.7 | ||||||
Equity / share, EUR 1) | 1.42 | 1.59 | ||||||
Earnings per share, EUR, basic 1) | -0.03 | -0.18 | -0.12 | -0.51 | ||||
Earnings per share, EUR, diluted 1) | -0.03 | -0.18 | -0.11 | -0.51 | ||||
Average number of outstanding shares during the period, basic 1) | 71,587,268 | 70,612,735 | 71,012,014 | 70,597,352 | ||||
Average number of outstanding shares during the period, diluted 1) | 72,124,035 | 70,767,245 | 71,330,955 | 70,752,453 | ||||
Number of outstanding shares at the end of period 1) | 87,089,901 | 70,612,735 | 87,089,901 | 70,612,735 | ||||
Market value of share at the end of period, EUR million | 117.6 | 137.0 | ||||||
Share prices, EUR 1) | ||||||||
Highest price, EUR | 2.17 | 4.40 | ||||||
Lowest price, EUR | 0.98 | 1.22 | ||||||
Average price, EUR | 1.37 | 2.20 | ||||||
Price at the end of period, EUR | 1.35 | 1.94 | ||||||
Share turnover, shares 1) | 45,969,542 | 54,836,449 | ||||||
Share turnover out of average number of shares, % 1) | 64.7% | 77.7% | ||||||
Dividend / share, EUR 1) 2) | - | - | ||||||
Dividend payout ratio, % 2) | - | - | ||||||
Effective dividend yield % 2) | - | - | ||||||
Price / Earnings 1) | -11.75 | -3.84 | ||||||
1) Year 2019 issue-adjusted due share issue in | ||||||||
2) For year 2020 dividend proposal | ||||||||
LIABILITIES AND GUARANTEES | ||
EUR million | ||
Loans covered by pledges on assets | ||
Loans from financial institutions | 49.5 | 54.7 |
Debts on shares in unsold housing and real estate company shares | 13.2 | 32.8 |
Instalment debts | 0.3 | 0.6 |
Total | 62.9 | 88.1 |
Guarantees | ||
Real-estate mortgages | 9.4 | 9.4 |
Pledges | 22.9 | 60.5 |
Absolute guarantees | 0.3 | 0.3 |
Total | 32.6 | 70.2 |
Contract guarantees | ||
Production guarantees | 48.1 | 41.2 |
Warranty guarantees | 22.5 | 17.6 |
RS guarantees | 20.9 | 35.0 |
Payment guarantees | 2.0 | 4.1 |
Total | 93.5 | 97.9 |
Contract guarantees | ||
Production guarantees | 2.3 | 2.6 |
The collateral for instalment debt is the financed equipment. Absolute guarantees include contract guarantees given on behalf of another Group company and loan guarantees for housing companies under construction. 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. Furthermore, a right of claim to a lease agreement entered into by the company was given as a collateral for a loan to a subsidiary.
REVENUE ANALYSIS | ||||
EUR million | 7-12/2020 | 7-12/2019 | 1-12/2020 | 1-12/2019 |
Revenue recognised over time | 196.0 | 181.0 | 376.7 | 349.1 |
Revenue recognised upon delivery | 93.8 | 239.9 | 166.9 | 318.0 |
Rental income | 0.4 | 0.4 | 1.0 | 0.6 |
Total | 290.2 | 421.4 | 544.7 | 667.7 |
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 | 1-12/2020 | 1-12/2019 | 1-12/2020 | 1-12/2019 |
Key personnel and their controlled entities | 75.5 | 30.9 | 6.2 | 4.6 |
Total | 75.5 | 30.9 | 6.2 | 4.6 |
Receivables | Receivables | Liabilities | Liabilities | |
EUR million | ||||
Key personnel and their controlled entities | 2.3 | 4.5 | 0.6 | 0.0 |
Total | 2.3 | 4.5 | 0.6 | 0.0 |
There has been no transactions with associates. 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 has been no transactions with associates.
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