KH Group Plc
Stock Exchange Release 21.3.2024 klo 8.00
KH Group Plc's Financial Statements Release for 1 January - 31 December 2023
Profitability retained in a challenging market
This is the summary of the Financial Statements Release for 2023. The full Financial Statements Release is attached to this release and is also available on the company's website at www.khgroup.com
KH Group, October-December 2023 pro forma
- Net sales amounted to EUR 105.3 (114.3) million.
- Operating profit was EUR 4.7 (3.6) million.
- KH-Koneet's net sales decreased significantly year-on-year due to the weakened general market situation. Profitability was supported by operational efficiency improvement and the machinery leasing business.
- Indoor Group's net sales were nearly on a par with the corresponding period last year, and profitability improved when compared to the early part of the year.
- The Group's cash and cash equivalents amounted to EUR 11.1 million at the end of the review period
- Indoor Group and Nordic Rescue Group received follow-on investments to strengthen their financial position
- Indoor Group, KH-Koneet and HTJ agreed on changes to financing agreements after the end of the reporting period
KH Group, January-December 2023 pro forma
- Net sales amounted to EUR 403.3 (428.9) million.
- Operating profit was EUR 11.7 (11.9) million.
KH Group, January-December 2023 IFRS
- Net sales amounted to EUR 270.6 (-) million. The figure includes net sales accumulated during the period 1 May-31 December 2023.
- Operating profit was EUR -14.4 (-10.1) million.
- Net profit for the period was EUR -14.4 (-8.2) million.
- Earnings per share (undiluted and diluted) were EUR -0.18 (0.14).
- Equity per share at the end of the review period was EUR 1.36 (1.47).
- Return on equity for rolling 12 months was -17.5% (-9.2%).
- Gearing at the end of the review period was 195.4% (9.2%).
- Gearing excluding lease liabilities was 116.7% (9.0%).
Proposal for the distribution of profit
The Board of Directors proposes to the Annual General Meeting that no dividend be distributed for the past financial period. The profit distribution proposal of the Board of Directors takes into account the company's liquidity situation at the time of making the profit distribution proposal, expected cash flows during the new year and the investments required by the change in strategy.
CEO Lauri Veijalainen:
"First measure related to the change in strategy was the divestment of Logistikas in June 2023.
During the reporting period of October-December 2023, KH Group's pro forma net sales decreased year-on-year, while pro forma operating profit increased. The decrease in net sales was due to the significant slowing of the market for KH-Koneet's machinery dealership business. The demand for machinery rental has remained good, which contributed to profitability being higher than in the comparison period. Indoor Group's sales were on par with the previous year and operating profit improved despite the fact that the furniture market is still struggling with cautious consumer demand. HTJ's development was hampered by the weakened business cycle in the construction sector, which slowed the growth of net sales and reduced profitability when compared to the reference period. HTJ's operations were supported by stable demand in the public sector, a good project portfolio and the acquisitions made during the two preceding years. Nordic Rescue Group's net sales and operating profit improved significantly year-on-year. Nordic Rescue Group's business is now on a much healthier foundation after it exited the loss-making rescue lift business in late 2022.
In 2024, we will continue our development efforts across our business areas, all of which are focused on operational efficiency, profitability and strengthening the balance sheet. At the same time, we will continue to move forward with KH Group's change in strategy as planned."
Events after the review period
After the review period, Indoor Group, KH-Koneet and HTJ agreed with their financing provider on changes to financing agreements. Of the loans from financial institutions presented under current liabilities on the financial statements date, a share of EUR 11.4 million was changed to be amortised after 2024, and the covenant terms were updated, taking into account the present financial situation and future outlook.
Future outlook
KH Group's medium-term objective is to become an industrial group built around the KH-Koneet business and to divest other business areas in line with previous strategy. At the same time, active developments will continue regarding other business areas. Exit planning and the assessment of exit opportunities for the other business areas will also continue.
KH Group estimates, with the current Group structure, to reach net sales of EUR 400-420 million and operating profit of EUR 14-16 million.
Results presentation webcast
KH Group will organise a result briefing in Finnish for analysts, investors and the media on 21 March 2023 at 1:00 pm at the Company's Head Office (Kuninkaalantie 19, 01300 Vantaa). You can follow the live webcast at https://khgroup.videosync.fi/q4-2023. The presentation material and the recording of the webcast will be available later on the same day on KH Group's website
KH GROUP PLC
Lauri Veijalainen
CEO
FURTHER INFORMATION:
CEO Lauri Veijalainen, +358 46 876 1648
DISTRIBUTION:
Nasdaq Helsinki Ltd
Main media
www.khgroup.com
Sievi Capital is now a conglomerate with a new name KH Group. Our four business areas are leading players in their sectors in B2B products and services and consumer trade. The objective of our strategy change is to focus on the business of the earth-moving machinery supplier KH-Koneet. KH Group's share is listed on Nasdaq Helsinki.
