HELSINKI, Aug. 17, 2023 /PRNewswire/ -- Kojamo is committed to maintain a strong financial position and therefore will launch a saving programme. The uncertainty of the financial and real estate markets as well as significantly higher interest rates are expected to increase company's interest expenses in connection with the new financing agreements and pose substantial risk to the company's profitability.
The company targets total savings of approximately EUR 43 million in costs and investments during 2024, of which the share of costs is estimated to be approximately EUR 18 million. Furthermore, we want to enhance our operations and adapt our organisation to correspond to the changed operating environment. The programme is estimated to be carried out with no material costs.
As decided last autumn, we will not make new investments. Furthermore, we will not launch new modernisation projects for the time being, and we will reduce repairs other than those supporting the renting of apartments, as long as we do not incur repair debt. We may carry out property sales within the next 12 months. In addition, the company's Board of Directors will propose to the Annual General Meeting in the spring of 2024 that no dividend be paid for 2023. All measures aim at maintaining the company's profitability and safeguarding credit rating.
"Our balance sheet is strong, and our liquidity is good but due to the near-term prospects of the financial markets, we must take active measures to secure our position", says CEO Jani Nieminen.
Kojamo to start change negotiations regarding its employees
As a part of the saving programme, Kojamo will start change negotiations. The negotiations concern all the employees of Kojamo, except the CEO of Kojamo plc.
If carried out, the planned measures may lead to lay-offs of no more than 70 employees for the time being and to terminations of employment for no more than 20 employees. However, in total, the changes would concern no more than 80 employees. The estimated impacts to the personnel can be specified during the change negotiations. The planned measures may also lead to changes in for example work tasks, job descriptions, reporting structures and organisational structures concerning all the employees under the negotiations.
Kojamo plc will publish its Half-Year Financial Report on 17 August 2023 at approximately 8:00 a.m. EEST. CEO Jani Nieminen and CFO Erik Hjelt will discuss the programme and its effects in a news conference on 17 August 2023 at 10:00 a.m. EEST. The news conference can be followed as a live webcast through the following address https://kojamo.videosync.fi/q2-2023.
For more information, please contact:
Jani Nieminen, CEO, Kojamo plc, tel. +358 20 508 3201, jani.nieminen@kojamo.fi
Distribution:
Nasdaq Helsinki, key media
Kojamo is Finland's largest private residential real estate company and one of the biggest investors in Finland. Our mission is to create better urban housing. Lumo offers environmentally friendly housing and services for the city dweller who appreciates quality and effortlessness. We actively develop the value of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo's shares are listed on the official list of Nasdaq Helsinki. For more information, please visit https://kojamo.fi/en
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