Lassila & Tikanoja plc
Stock exchange release
7 August 2024 at 8:00 a.m.
Lassila & Tikanoja plc: Half-Year Financial Report 1 January-30 June 2024
ADJUSTED OPERATING PROFIT INCREASED - INDUSTRIAL SERVICES AND FACILITY SERVICES FINLAND IMPROVED YEAR-ON-YEAR
Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.
- Net sales for the second quarter were EUR 199.2 million (207.5). Net sales decreased by 4.0%. In Facility Services Sweden, a significant customer relationship ended in late 2023, and the loss of that significant account has not been fully offset by new customer accounts.
- Adjusted operating profit for the second quarter was EUR 12.7 million (9.2) and operating profit was EUR 11.0 million (9.2). Earnings per share were EUR 0.18 (EUR 0.21).
- Net sales for January-June totalled EUR 384.2 million (400.2). Adjusted operating profit was EUR 12.7 million (10.6) and operating profit was EUR 9.3 million (10.6). Earnings per share were EUR 0.16 (EUR 0.24).
- Net cash flow from operating activities after investments was EUR -3.7 million (19.3) and net cash flow from operating activities after investments per share was EUR -0.10 (0.51). Net cash flow from operating activities for the review period was reduced by working capital tied up especially in the first quarter of the year.
Outlook for the year 2024, updated 1 August 2024
Net sales in 2024 are estimated to be at the same level as in the previous year, and adjusted operating profit is estimated to be at the same level or better compared to the previous year.
PRESIDENT AND CEO EERO HAUTANIEMI:
"Net sales in January-June totalled EUR 384.2 million (400.2). The challenging business environment and the political strikes in Finland in the first quarter had a negative impact on the demand for L&T's services. Adjusted operating profit grew to EUR 12.7 million (10.6). Operating profit improved in Industrial Services and Facility Services Finland.
In Environmental Services, the challenging business environment and the political strikes in Finland in the first quarter, reduced the demand for recycling and waste management services. The demand and price level of recycled raw materials stabilised in the first quarter and remained stable in the second quarter. The municipalisation of the collection of packaging waste from housing properties continued, but the measures initiated in the fourth quarter of 2023 to improve the efficiency and profitability of operations largely compensated for the impact of municipalisation. Our position in municipal contracts strengthened.
Demand was strong in all of the Industrial Services division's business lines. Political strikes in Finland postponed maintenance and other services from the first quarter to the second quarter. However, annual maintenance breaks in industry were carried out to the planned extent during the period under review and resourcing of the projects was successful. In Sweden, the Industrial Services division expanded to the Gävleborg region through an acquisition.
In Facility Services Finland, all business lines achieved a better result than in the comparison period. Measures to streamline the cost structure continued and the division's operating profit improved. In Facility Services Sweden, a significant customer relationship ended in late 2023, and the loss of that significant account was not fully offset by new customer accounts during the review period. The division has a programme under way to simplify operating models and adapt them to the changed business environment. The results of the programme are expected to become visible by the end of 2024.
In the customer satisfaction survey conducted in Finland in April, all divisions improved their results and customer satisfaction (NPS) was at a high level, being above 40 in both circular economy businesses. Occupational safety also improved and the total recordable incident frequency (TRIF) decreased by two points year-on-year, which is a significant achievement.
In line with the strategy that was updated in autumn 2023, we began the renewal of our operating model in May and changed the composition of the Group Executive Board. The aim of the measures is to support the growth of circular economy businesses.
The new operating model will be built on L&T's existing strengths. Environmental Services and Industrial Services have a broad shared customer base and they operate in different parts of the same material value chains. Closer cooperation will make it possible to respond to customer needs more flexibly and increase material value more efficiently. Stronger cooperation between the divisions and Group functions will provide a foundation for more efficient operations.
In autumn 2023, the Board of Directors of Lassila & Tikanoja decided, in connection with the strategy update, to evaluate the strategic alternatives for the Facility Services Finland and Facility Services Sweden divisions as part of the development of the business portfolio. This strategic assessment continued as planned in the first half of the year."
GROUP NET SALES AND FINANCIAL PERFORMANCE
April-June
Net sales for the second quarter amounted to EUR 199.2 million (207.5), representing a year-on-year decrease of 4.0%. The organic decrease in net sales was 4.4%. Adjusted operating profit was EUR 12.7 million (9.2), representing 6.4% (4.4%) of net sales. Operating profit was EUR 11.0 million (9.2), representing 5.5% (4.4%) of net sales. Operating profit includes items affecting comparability totalling EUR 1.7 million. Those items mainly consist of costs arising from business restructurings. Earnings per share were EUR 0.18 (EUR 0.21).
Net sales increased in Industrial Services and were on a par with the comparison period in Environmental Services. Net sales decreased in Facility Services Finland and Facility Services Sweden. Operating profit improved in Industrial Services and Facility Services Finland, and declined in the other divisions.
The result for the review period was negatively affected by net financial expenses rising to EUR -2.2 million (-0.7). The result for the comparison period was positively affected by the fair value of EUR 1.3 million of an interest rate swap being recognised in financial items due to the termination of the interest rate swap. The share of the profit of the joint venture Laania Oy amounted to EUR 0.0 million (0.7) in the second quarter.
January-June
Net sales for January-June amounted to EUR 384.2 million (400.2), a decrease of 4.0% year-on-year. The organic decrease in net sales was 4.3%. Adjusted operating profit was EUR 12.7 million (10.6), representing 3.3% (2.7%) of net sales. Operating profit was EUR 9.3 million (10.6), representing 2.4% (2.7%) of net sales. Operating profit includes items affecting comparability totalling EUR 3.4 million. Those items mainly consist of costs arising from business restructurings. Earnings per share were EUR 0.16 (0.24).
Net sales increased in Industrial Services and decreased in the other divisions. Operating profit improved in Industrial Services and Facility Services Finland, and declined in the other divisions.
The result for the review period was negatively affected by net financial expenses rising to EUR -4.0 million (-2.3). The result for the comparison period was positively affected by the fair value of EUR 1.3 million of an interest rate swap being recognised in financial items due to the termination of the interest rate swap. The result for the period was positively affected by L&T's EUR 2.1 million (2.2) share of the profit of the joint venture Laania Oy.
Financial summary
| 4-6/2024 | 4-6/2023 | Change % | 1-6/2024 | 1-6/2023 | Change % | 1-12/2023 | |
| Net sales, EUR million | 199.2 | 207.5 | -4.0 | 384.2 | 400.2 | -4.0 | 802.1 |
| Adjusted operating profit, EUR million | 12.7 | 9.2 | 38.2 | 12.7 | 10.6 | 19.6 | 39.0 |
| Adjusted operating margin, % | 6.4 | 4.4 | 3.3 | 2.7 | 4.9 | ||
| Operating profit, EUR million | 11.0 | 9.2 | 19.6 | 9.3 | 10.6 | -12.5 | 38.4 |
| Operating margin, % | 5.5 | 4.4 | 2.4 | 2.7 | 4.8 | ||
| EBITDA, EUR million | 25.1 | 23.2 | 8.1 | 37.2 | 38.6 | -3.8 | 95.8 |
| EBITDA, % | 12.6 | 11.2 | 9.7 | 9.6 | 11.9 | ||
| Earnings per share, EUR | 0.18 | 0.21 | -13.2 | 0.16 | 0.24 | -32.5 | 0.79 |
| Net cash flow from operating activities after investments per share, EUR | 0.15 | 0.00 | -0.10 | 0.51 | 1.33 | ||
| Return on equity (ROE), % | 5.6 | 8.7 | 13.3 | ||||
| Capital employed, EUR million | 432.8 | 416.9 | 3.8 | 425.9 | |||
| Return on capital employed (ROCE), % | 9.8 | 11.5 | 10.3 | ||||
| Equity ratio, % | 34.6 | 33.4 | 36.8 | ||||
| Gearing, % | 89.3 | 86.7 | 69.3 |
NET SALES AND OPERATING PROFIT BY DIVISION
Environmental Services
April-June
The division's net sales for the second quarter amounted to EUR 73.9 million (74.4). Adjusted operating profit was EUR 8.0 million (8.5). Operating profit was EUR 7.8 million (8.5).
January-June
The Environmental Services division's net sales for the first half of the year decreased to EUR 139.3 million (140.7). Adjusted operating profit was EUR 10.7 million (11.8). Operating profit was EUR 10.5 million (11.8).
In the Environmental Services division, the challenging business environment and the political strikes in Finland in the first quarter reduced the demand for recycling and waste management services. The division strengthened its position in the producer responsibility organisation customer segment and municipal contracts. The demand and price level of recycled raw materials stabilised in the first quarter and remained stable in the second quarter.
The municipalisation of the collection of packaging waste from housing properties continued, but the measures initiated in the fourth quarter of 2023 to improve the efficiency and profitability of operations largely compensated for the impact of municipalisation.
The customer satisfaction (Net Promoter Score, NPS) of the Environmental Services division improved to 43 in the survey taken in the spring.
Industrial Services
April-June
The division's net sales for the second quarter increased to EUR 42.0 million (38.0). Adjusted operating profit was EUR 5.9 million (3.9). Operating profit was EUR 6.1 million (3.9).
January-June
The Industrial Services division's net sales for the first half of the year increased to EUR 70.1 million (64.1). Adjusted operating profit was EUR 5.8 million (4.0). Operating profit was EUR 5.7 million (4.0).
Demand remained strong in the project business of the environmental construction business line. In the hazardous waste business line, the political strikes in Finland weakened demand slightly in the first quarter.
As a result of the political strikes in Finland, process cleaning work was postponed from the first quarter to the second quarter. However, the annual maintenance breaks were carried out as planned during the review period and resourcing was successful. A larger share of annual maintenance breaks than usual were scheduled for the first half of the year.
The process cleaning business of the Industrial Services division was expanded in Sweden to the Gävleborg region through an acquisition that was completed on 1 February 2024. L&T acquired the entire share capital of PF Industriservice AB, which provides process cleaning services. PF Industriservice had net sales of approximately EUR 2.5 million in the most recent financial year, and it has approximately seven employees. PF Industriservice offers various process cleaning services to customers in the forest industry, energy sector and construction industry. Following the acquisition, the Industrial Services division has approximately 100 employees in Sweden, and process cleaning services are offered to industrial customers in southern and central Sweden.
Facility Services Finland
April-June
The division's net sales for the second quarter totalled EUR 58.5 million (62.7). Operating profit was EUR 2.0 million (-0.0).
January-June
The net sales of Facility Services Finland amounted to EUR 121.8 million (129.8) for the first half of the year. Operating profit was EUR 1.9 million (0.2).
Unprofitable customer agreements ended in Facility Services Finland during the period under review. Measures to streamline the cost structure continued during the period under review. All business lines achieved a stronger result than in the comparison period. The demand for data-driven cleaning services and energy efficiency services increased. The result of Facility Services Finland for the first half of the year was negatively affected by provisions of EUR 0.6 million (0.4) recognised for potential costs arising from disability.
Facility Services Sweden
April-June
The division's net sales for the second quarter decreased to EUR 26.2 million (33.8). Operating profit was EUR -2.5 million (-2.0). Operating profit before the amortisation of purchase price allocations of acquisitions was EUR -2.2 million (-1.7).
January-June
The net sales of the Facility Services Sweden division for the first half of the year decreased to EUR 55.7 million (68.3). Operating profit was EUR -4.6 million (-3.0). Operating profit before the amortisation of purchase price allocations of acquisitions was EUR -4.0 million (-2.4).
Customer agreements in the Swedish business are mostly fixed-price contracts, and the division has not been able to pass the increased production costs on to customer prices. A significant customer relationship ended in the division in late 2023, and the loss of that significant account was not fully offset by new customer accounts during the review period. The division has a programme under way to simplify operating models and adapt them to the changed business environment. The results of the programme to adapt the division's operations are expected to become visible by the end of 2024.
FINANCING
Net cash flow from operating activities in the first half of 2024 amounted to EUR 19.3 million (38.5). Net cash flow after investments totalled EUR -3.7 million (19.3). Net cash flow after investments for the review period was reduced by acquisitions, which had a total impact of approximately EUR 1.6 million. Net cash flow from operating activities for the review period was reduced by working capital tied up especially in the first quarter of the year. A total of EUR 8.2 million in working capital was tied up during the review period (EUR 1.4 million released). Net cash flow from operating activities for the comparison period was positively impacted by significant tax refunds.
At the end of the review period, interest-bearing liabilities amounted to EUR 214.5 million (209.6). Net interest-bearing liabilities totalled EUR 194.9 million (179.7). The average interest rate on long-term loans, excluding lease liabilities, with interest rate hedging, was 4.0% (3.4%). The company had no interest rate swaps at the end of the review period.
Of the EUR 100.0 million commercial paper programme, EUR 20.0 million was in use at the end of the review period (unused in the comparison period). The account limit totalling EUR 10.0 million and the committed credit limit totalling EUR 40.0 million were not in use, as was the case in the comparison period.
Net financial expenses amounted to EUR -4.0 million (-2.3). The effect of the discounting of environmental provisions decreased net financial expenses by EUR 0.4 million (-0.1). Net financial expenses for the comparison period were affected positively by the fair value of EUR 1.3 million of an interest rate swap being recognised in financial items due to the termination of the interest rate swap. The effect of exchange rate changes on net financial expenses was EUR -0.0 million (-0.1). Net financial expenses were 1.0% (0.6%) of net sales.
The equity ratio was 34.6% (33.4%) and the gearing ratio 89.3% (86.7%). The Group's total equity was EUR 218.3 million (207.3). Equity was reduced by dividends of EUR 18.7 million distributed for the financial year 2023. In accordance with the resolution of the Annual General Meeting held on 21 March 2024, the dividends were paid to shareholders on 3 April 2024. Translation differences caused by changes in the exchange rate of the Swedish krona affected equity by EUR -1.6 million. Cash and cash equivalents at the end of the period amounted to EUR 19.6 million (29.9).
DIVIDEND DISTRIBUTION
The Annual General Meeting held on 21 March 2024 resolved that a dividend of EUR 0.49 per share, totalling EUR 18.7 million, be paid on the basis of the balance sheet that was adopted for the financial year 2023. The dividend was paid to shareholders on 3 April 2024.
CAPITAL EXPENDITURE
Gross capital expenditure for the period under review totalled EUR 21.7 million (31.8). The capital expenditure consisted primarily of machine and equipment purchases, as well as investments in information systems. Acquisitions accounted for approximately EUR 2 million (0) of the gross capital expenditure.
SUSTAINABILITY
In the first half of the year, L&T's accident frequency indicator (TRIF) decreased by two points year-on-year. During the past year and a half, L&T has invested significantly in the development of occupational safety by training 74 per cent of its personnel in proactive safety work and everyday safety thinking.
Progress towards sustainability targets
| Indicator | 1-6/2024 | 1-6/2023 | 2023 | Target | Target to be achieved by | |
| ENVIRONMENTAL RESPONSIBILITY | ||||||
| Carbon handprint (tCO2e) i.e. emissions prevented | -224,000 | -231,000 | -453,000 | growth faster than net sales | ||
| Carbon footprint (tCO2e) Scope 1&2 | 14,600 | 15,200 | 31,200 | 24,400 | 2030 | |
| Recycling rate of material flows managed by L&T, % | ||||||
| 55.5* | 57.2 | 57.8 | 70 | 2030 | ||
| SOCIAL RESPONSIBILITY | ||||||
| Total recordable incident frequency | 20 | 22 | 23 | 15 | 2030 | |
| Sickness-related absences (%) | 5.0 | 5.8 | 5.1 | 4 | 2030 |
*Calculation was re-defined beginning of 2024
PERSONNEL
In January-June, the average number of employees converted into full-time equivalents was 6,390 (6,891). At the end of the review period, L&T had 8,142 (9,124) full-time and part-time employees.
| Number of employees at the end of the review period | 1-6/2024 | 1-6/2023 | 2023 |
| Group | 8,142 | 9,124 | 8,159 |
| Finland | 6,938 | 7,753 | 6,891 |
| Sweden | 1,204 | 1,371 | 1,268 |
| Environmental Services | 1,663 | 1,712 | 1,576 |
| Industrial Services | 747 | 728 | 679 |
| Facility Services Finland | 4,519 | 5,267 | 4,603 |
| Facility Services Sweden | 1,100 | 1,294 | 1,187 |
| Group administration and other | 113 | 123 | 114 |
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading in L&T's shares in January-June was 3.4 million shares, which is 8.9% (8.0%) of the average number of outstanding shares. The value of trading was EUR 31.3 million (32.3). The highest share price was EUR 10.36 and the lowest EUR 8.44. The closing price was EUR 8.68. At the end of the review period, the market capitalisation excluding the shares held by the company was EUR 331.5 million (380.4).
Own shares
At the end of the period, the company held 609,941 of its own shares, representing 1.6% of all shares and votes.
Share capital and number of shares
The company's registered share capital amounts to EUR 19,399,437 and the number of outstanding shares was 38,188,933 at the end of the period. The average number of shares excluding the shares held by the company was 38,156,045.
Shareholders
At the end of the review period, the company had 25,030 (25,121) shareholders. Nominee-registered holdings accounted for 9.0% (9.3%) of the total number of shares.
Authorisations for the Board of Directors
The Annual General Meeting held on 21 March 2024 authorised Lassila & Tikanoja plc's Board of Directors to decide on the repurchase of the company's own shares using the company's unrestricted equity. In addition, the Annual General Meeting authorised the Board of Directors to decide on a share issue and the issuance of special rights entitling their holders to shares.
The Board of Directors is authorised to purchase a maximum of 2,000,000 company shares (5.2% of the total number of shares). The repurchase authorisation is effective for 18 months.
The Board of Directors is authorised to decide on the issuance of new shares or shares which may be held by the company through a share issue and/or issuance of option rights or other special rights conferring entitlement to shares, referred to in Chapter 10, Section 1 of the Finnish Companies Act, so that under the authorisation, a maximum of 2,000,000 shares (5.2% of the total number of shares) may be issued and/or conveyed. The authorisation is effective for 18 months.
RESOLUTIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 21 March 2024, adopted the financial statements and consolidated financial statements for the financial year 2023, discharged the members of the Board of Directors and the President and CEO from liability and adopted the remuneration report and remuneration policy for the company's governing bodies. The Annual General Meeting resolved on the use of the profit shown on the balance sheet and the payment of dividend, the composition and remuneration of the Board of Directors, the election and remuneration of the auditor, the adoption and remuneration of the sustainability auditor, and authorising the Board of Directors to decide on the repurchase of the company's own shares and on a share issue and the issuance of special rights entitling to shares.
The Annual General Meeting resolved that a dividend of EUR 0.49 per share be paid on the basis of the balance sheet adopted for the financial year 2023. It was decided that the dividend be paid on 3 April 2024.
The Annual General Meeting confirmed the number of members of the Board of Directors as seven (7) in accordance with the proposal of the Shareholders' Nomination Board. Teemu Kangas-Kärki, Laura Lares, Sakari Lassila, Jukka Leinonen, Anni Ronkainen and Pasi Tolppanen were re-elected, and Juuso Maijala was elected as a new member to the Board until the end of the following Annual General Meeting. Jukka Leinonen was elected as the Chairman of the Board and Sakari Lassila was elected as the Vice Chairman.
The Annual General Meeting elected PricewaterhouseCoopers Oy, Authorised Public Accountants, as the company's auditor. PricewaterhouseCoopers Oy has announced that it will name Samuli Perälä, Authorised Public Accountant, as the principal auditor. In addition, the company's auditor was adopted also as the company's sustainability auditor to audit the sustainability report for the financial year 2024.
The resolutions of the Annual General Meeting were announced in more detail in a stock exchange release on 21 March 2024.
BOARD OF DIRECTORS
The members of Lassila & Tikanoja plc's Board of Directors are Teemu Kangas-Kärki, Laura Lares, Sakari Lassila, Jukka Leinonen, Juuso Maijala, Anni Ronkainen and Pasi Tolppanen. Lassila & Tikanoja plc's Annual General Meeting held on 21 March 2024 elected Jukka Leinonen as the Chairman of the Board and Sakari Lassila as the Vice Chairman.
In its constitutive meeting held after the Annual General Meeting, the Board of Directors elected the members of the Audit Committee and the Personnel and Sustainability Committee from amongst its members. Sakari Lassila (Chairman), Teemu Kangas-Kärki, Juuso Maijala and Anni Ronkainen were elected to the Audit Committee. Jukka Leinonen (Chairman), Laura Lares and Pasi Tolppanen were elected to the Personnel and Sustainability Committee.
CHANGES IN THE GROUP EXECUTIVE BOARD
On 8 April 2024, Lassila & Tikanoja announced that Juha Saarinen, M.Sc.(Tech.) has been appointed as Chief Purchasing Officer and a member of the Group Executive Board effective from 1 August 2024. Saarinen joins L&T from Kamux plc, where he has served as Chief Purchasing Officer.
On 3 May 2024, the company announced that CFO Valtteri Palin had decided to pursue career opportunities outside L&T. On 6 May 2024, the company announced that Joni Sorsanen, M.Sc.(Econ.) had been appointed as Chief Financial Officer (CFO) and a member of the Group Executive Board of Lassila & Tikanoja effective from 10 July 2024 at the latest. Sorsanen joined L&T from Consti plc, where he served as CFO.
On 16 May 2024, the company announced that Petri Salermo, Senior Vice President, Environmental Services, and Sirpa Huopalainen, General Counsel, had decided to pursue career opportunities outside L&T. In addition, Mikko Taipale, Senior Vice President, Facility Services Sweden, would no longer be a member of the Group Executive Board after 16 May, but he would continue to be employed by the company. From 16 May 2024 onwards, Antti Tervo, Senior Vice President, Industrial Services, would also be responsible for the Environmental Services division, and Antti Niitynpää, Senior Vice President, Facility Services Finland, would also be responsible for Facility Services Sweden. Hilppa Rautpalo, Senior Vice President, Human Resources, would also be responsible for legal affairs from 16 May 2024 onwards.
The members of Lassila & Tikanoja's Group Executive Board are as follows:
- Public Affairs, Sustainability and Strategy - Jorma Mikkonen
- Facility Services Finland and Sweden - Antti Niitynpää
- Personnel and Legal Affairs - Hilppa Rautpalo
- Sourcing - Juha Saarinen (from 1 August 2024 onwards)
- ICT - Edward Skärström
- Finance - Joni Sorsanen (from 5 July 2024 onwards)
- Environmental and Industrial Services - Antti Tervo
The changes in the composition of the Group Executive Board do not affect the reporting segments of the Group, which are Environmental Services, Industrial Services, Facility Services Finland and Facility Services Sweden.
EVENTS AFTER THE PERIOD
1 August 2024, the company published a profit warning and updated outlook for the year 2024. The updated outlook is as follows: Net sales in 2024 are estimated to be at the same level as in the previous year, and adjusted operating profit is estimated to be at the same level or better compared to the previous year.
The previous outlook was: Net sales in 2024 are estimated to be at the same level as in the previous year, and operating profit is estimated to be at the same level or better compared to the previous year.
NEAR-TERM RISKS AND UNCERTAINTIES
General economic uncertainty may affect the level of economic activity among customers, which may reduce the demand for L&T's services.
Higher costs, such as the rising prices of fuel and energy, and potential changes in interest rates may have an impact on the company's financial performance.
The Finnish Waste Act was amended in July 2021. Under the reforms to the Waste Act, municipalities take on a larger role in organising the collection of packaging materials and biowaste from housing properties. As a consequence of the reform, L&T's direct customer agreements with housing properties on the separate collection of packaging waste and biowaste will be transferred to municipalities for competitive bidding gradually between 1 July 2022 and 1 July 2025. L&T estimates that, as a result of municipalisation, approximately EUR 30 million of the Finnish waste management market will be moved out of the scope of free competition between 2024 and 2026. L&T participates in the competitive tendering of municipal contracts and is a significant operator in municipal contracts. Nevertheless, L&T estimates that the overall impact of the change will be negative for the company.
The company has several ERP system renewal projects under way. Temporary additional costs arising from system deployments and establishing the operating model may weigh down the company's result.
Production costs may be increased by challenges related to employee turnover and labour availability.
The geopolitical situation involves continued uncertainty due to Russia's war of aggression. The indirect impacts on overall economic activity in Finland and Sweden may have a negative impact on net sales and profit.
The Group company Lassila & Tikanoja FM AB is a claimant and a defendant in legal proceedings in Sweden concerning unpaid receivables invoiced from a former customer of the Group. In June 2022, Lassila & Tikanoja FM AB took legal action in the District Court of Solna against the former customer company of L&T, demanding payment for unpaid receivables. At the end of the review period, the amount of receivables on the company's balance sheet was approximately EUR 1.5 million. The former L&T customer company in question has rejected Lassila & Tikanoja FM AB's claims and the payment obligation, and brought a counterclaim demanding compensation totalling approximately SEK 144 million from Lassila & Tikanoja FM AB. The dispute is still pending. Lassila & Tikanoja considers the counterclaim to be without merit and has not recognised any provisions in relation to it.
More detailed information on Lassila & Tikanoja's risks and risk management will be provided in the 2023 Annual Review and in the Report by the Board of Directors and the consolidated financial statements.
Helsinki, 6 August 2024
LASSILA & TIKANOJA PLC
Board of Directors
Eero Hautaniemi
President and CEO
For additional information, please contact:
Eero Hautaniemi, President and CEO, tel. +358 10 636 2810
Joni Sorsanen, CFO, tel. +358 50 443 3045
Lassila & Tikanoja is a service company that is putting the circular economy into practice. Together with our customers, we keep materials, manufacturing sites and properties in productive use for as long as possible and we enhance the use of raw materials and energy. This is to create more value with the circular economy for our customers, personnel and society in a broader sense. Achieving this also means growth in value for our shareholders. Our objective is to continuously grow our actions' carbon handprint, our positive effect on the climate. We assume our social responsibility by looking after the work ability of our personnel as well as offering jobs to those who are struggling to find employment, for example. With operations in Finland and Sweden, L&T employs approximately 8,160 people. Net sales in 2023 amounted to EUR 802.1 million. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lt.fi/en/
