Company Announcement 13/2024
Interim financial report for the period 1 January - 30 June 2024
HusCompagniet realised revenue of DKK 1,062 million in H1 2024, down from DKK 1,280 million in H1 2023 due to fewer deliveries after lower sales in 2023. Gross margin increased to 23.4% from 20.9%, supported by a solid Q1 2024 performance and the comparison period being impacted by re-evaluation of provisions related to prior years. EBITDA came to DKK 45 million for an EBITDA margin of 4.2%. EBIT amounted to DKK 21 million.
In H1 2024, HusCompagniet sold 640 houses (units), an increase of 44% mainly driven by the semi-detached segment and supported by the detached business. The net order backlog increased by 25% compared to H1 2023.
Group CEO of HusCompagniet, Martin Ravn-Nielsen says: "Our financial performance in the first half of 2024 was in line with expectations on the back of more project wins and a strengthening of our position in the B2B segment combined with moderately improving market conditions in the detached segment and continued strict cost control."
"We increased sales by 44% in the first half of the year after generating solid progress in the semi-detached segment and slight improvements in the detached business showing signs of gradual market recovery. We are narrowing our full-year guidance on the back of a satisfactory activity level, and for the longer term we are pleased to note increasing awareness and focus on HusCompagniet as an attractive partner for professional investors", says Martin Ravn-Nielsen.
Selected key highlights Q2 and H1 2024
| DKKm | Q2 2024 | Q2 2023 | Change | H1 2024 | H1 2023 | Change |
| Houses sold (units) | 368 | 219 | 68% | 640 | 445 | 44% |
| Houses delivered (units) | 215 | 265 | -19% | 382 | 609 | -37% |
| Order backlog, gross | 1,935 | 1,659 | 17% | |||
| Order backlog, net | 1,472 | 1,179 | 25% | |||
| Revenue | 579 | 624 | -7% | 1,062 | 1,280 | -17% |
| Gross profit | 128 | 118 | 8% | 249 | 267 | -7% |
| EBITDA | 24 | 17 | 41% | 45 | 57 | -21% |
| Special items | 0 | 1 | -100% | 0 | -1 | -100% |
| EBIT | 12 | 6 | 100% | 21 | 35 | -40% |
| Gross margin | 22.1% | 18.9% | 3.2 ppt. | 23.4% | 20.9% | 2.5 ppt. |
| EBITDA margin | 4.1% | 2.7% | 1.4 ppt. | 4.2% | 4.4% | -0.2 ppt. |
| EBIT margin | 2.0% | 0.9% | 1.1 ppt. | 1.9% | 2.7% | -0.8 ppt. |
| Contract assets, gross | 464 | 522 | -11% | |||
| Available cash incl. RCF | 586 | 344 | 70% | |||
| Net interest-bearing debt | 236 | 489 | -52% | |||
| NIBD/LTM EBITDA | 2.4x | 2.5x | -0.1x | |||
| FTEs end of period | 392 | 385 | 7 |
Highlights
- In H1 2024, sales came to 640 houses (units) against 445 in H1 2023 with progress driven by the semi-detached business with 228 units sold compared to 101 in H1 2023. This excludes the Velkomn project of 153 units announced in July 2024 and the NREP project of 164 semi-detached houses announced in November 2023, still awaiting building permit. Sales in the detached segment increased to 373 units from 287, while sales decreased to 39 units from 57 in the Swedish Wooden houses segment.
- Revenue totalled DKK 1,062 million in H1 2024, down 17% driven by fewer deliveries across segments due to lower sales in 2023. Deliveries came to 382 houses (units) in H1 2024 from 609 in the comparison period.
- Gross margin rose to 23.4% in H1 2024 from 20.9% in H1 2023 driven by strong cost control and the comparison period being negatively impacted by a DKK 15 million re-evaluation of provisions related to prior years.
- H1 2024 EBITDA amounted to DKK 45 million for a margin of 4.2% against DKK 57 million and a margin of 4.4% in H1 2023.
- EBIT came to DKK 21 million in H1 2024, down from DKK 35 million last year.
- The order backlog (net) increased by 25% to DKK 1,472 million at end of Q2 2024, driven by improved sales.
- End of Q2 2024, net debt amounted to DKK 236 million for a leverage ratio (NIBD/LTM EBITDA) of 2.4x, down from net debt of DKK 489 million and a leverage ratio of 2.5x at end of Q2 2023 driven by lower working capital.
Outlook for 2024
Based on the H1 2024 financial performance and expectations for the remainder of 2024, the guidance issued on 8 March 2024 is narrowed:
- Revenue is expected to be DKK 2.3-2.4 billion (previously DKK 2,300-2,600 million)
- EBITDA is expected to be DKK 90-120 million (previously DKK 80-130 million)
- Operating profit (EBIT) is expected to be DKK 40-70 million (previously DKK 30-80 million)
Assumptions for the outlook
- Current expectations for 2024 deliveries are between 850 and 950 houses.
- The 2024 guidance is based on no severe disruption of supply chains emerging and on raw material prices not significantly exceeding current levels.
- Dividend distribution to shareholders remains suspended and is not expected to be reintroduced before leverage is below the long-term target of 2x net debt to EBITDA.
Webcast and conference call
HusCompagniet will host a conference call for investors and analysts at 10:00 (CEST) today, Friday 23 August 2024. The conference call and presentation will be available from HusCompagniet's investor website.
Conference call dial-in numbers for investors and analysts:
Participant Dial-in:
Denmark: +45-7-8768490
France: +33-1-81221259
Germany: +49-30-21789327
Sweden: +46-8-1241-0952
United Kingdom: +44-203-7696819
United States: +1 646-787-0157
PIN: 649396
Webcast link:
https://huscompagniet-events.eventcdn.net/events/h1-2024
For additional information, please contact:
Allan Auning-Hansen Group CFO +45 30 10 25 00
| DKK'm | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | 2023 | |||
| Income statement | ||||||||
| Revenue | 579 | 624 | 1,062 | 1,280 | 2,381 | |||
| Gross profit | 128 | 118 | 249 | 267 | 517 | |||
| EBITDA | 24 | 17 | 45 | 57 | 108 | |||
| Operating profit (EBIT) | 12 | 6 | 21 | 35 | 62 | |||
| Financial income /expenses, net | -10 | -13 | -20 | -22 | -39 | |||
| Profit for the period (continued operations) | -1 | -5 | -1 | 10 | 17 | |||
| Profit for the period (discontinued operations) | 8 | -3 | 8 | -3 | -3 | |||
| Profit for the period | 8 | -8 | 7 | 7 | 15 | |||
| Balance sheet | ||||||||
| Total assets | 3,461 | 3,377 | 3,264 | |||||
| Contract assets, net | 264 | 425 | 262 | |||||
| Net working capital | 216 | 461 | 316 | |||||
| Net interest-bearing debt (NIBD) | 236 | 489 | 356 | |||||
| Equity | 2,093 | 2,064 | 2,098 | |||||
| Cash flow | ||||||||
| Cash flow from operating activities | 135 | 65 | 134 | 97 | 249 | |||
| Cash flow from investing activities | -3 | -4 | -4 | -11 | -20 | |||
| - Hereof from investment in property, plant and equipment | -1 | -1 | -2 | -5 | -10 | |||
| Cash flow from financing activities | -11 | 18 | -17 | 2 | -9 | |||
| Free cash flow | 133 | 61 | 130 | 87 | 229 | |||
| Key figures | ||||||||
| Revenue growth | -7.2% | -43.0% | -17.0% | -43.5% | -45.0% | |||
| Gross margin | 22.1% | 18.9% | 23.4% | 20.9% | 21.7% | |||
| EBITDA margin | 4.1% | 2.7% | 4.2% | 4.4% | 4.6% | |||
| Earnings Per Share (EPS Basic), DKK | 0.4 | -0.4 | 0.1 | 0.3 | 0.7 | |||
| Diluted earnings per share (EPS-D) (DKK) | 0.4 | -0.4 | 0.1 | 0.3 | 0.7 | |||
| Dividend per share, DKK | 0 | 0 | 0 | 0 | 0 | |||
| Share price end of period, DKK | 55 | 59 | 46.5 | |||||
| Market value, DKK billion | 1.2 | 1.3 | 1.0 | |||||
| ROIC before tax, LTM | 2.2% | 6.8% | 2.5% | |||||
| ROIC before tax (adjusted for goodwill), LTM | 10.5% | 25.2% | 10%% | |||||
| NIBD/LTM EBITDA | 2.4 | 2.5 | 3.3 | |||||
| Refer to the consolidated financial statements 2023 for definition of key figures | ||||||||
Business Update
In the first half of 2024, overall sales increased despite continued cautiousness impacting consumer willingness to make large investment decisions. The positive trend in sales was supported by slightly decreasing interest rates towards the end of the reporting period, continuous relative improvements in consumer confidence from a very low level, and an unchanged strong job market. Core inflation stabilised at a significantly lower level compared to the first half of 2023.
HusCompagniet sold 640 units in the first six months of 2024 against 445 in the same period last year, and delivered 382 units, down from 609 in first half 2023.
The detached market in Denmark showed signs of gradual recovery at a moderate pace, supporting an increase in customer leads and meeting activity. On this background, the core detached segment increased sales in the quarter and the half year.
In the semi-detached segment, HusCompagniet entered contracts on smaller projects contributing to an order backlog with projects of varying sizes. After the balance sheet date, a partnership with property developer and operator of rental housing Velkomn was entered on a project of 153 DGNB gold-certified semi-detached houses in Haslev, Southern Zealand. Overall, the activity level remained satisfactory and constructive dialogues with larger investors continued.
Sweden was one of the first countries in Europe to implement an interest rate cut in Spring 2024, but overall, the economy and housing market saw fewer signs of a potential near-term pickup from a low level. To optimise capacity utilisation on the Swedish factory, it was prepared for potential delivery to the semi-detached segment in Denmark.
In H1 2024, revenue came to DKK 1,062 million where the core market, Danish detached houses, comprised 77%, while semi-detached and the Swedish Wooden houses segment comprised 18% and 5%, respectively.
Customer satisfaction
HusCompagniet maintained its position as the best rated housing construction company among Danish customers on Trustpilot with a satisfaction score of 4.9 out of 5.0 based on a total of more than 6,000 reviews.
Financial review
Revenue
Q2 2024 revenue came to DKK 579 million, down from DKK 624 million in Q2 2023, as a higher number of deliveries in the detached segment was offset by a decline in the semi-detached and Wooden houses segments as a consequence of lower sales towards end-2023. Deliveries totalled 215 units, down from 265 in the comparison period.
H1 2024 revenue amounted to DKK 1,062 million compared to DKK 1,280 million in the same period last year. 382 housing units were delivered in the period, against 609 last year.
Gross margin
Q2 2024 gross margin was 22.1% against 18.9% in Q2 2023, where the detached segment was negatively affected by a DKK 15 million re-evaluation of provisions related to prior years.
H1 2024 gross margin came to 23.4%, supported by a solid 25.0% margin in Q1 2024, and up from 20.9% in H1 2023.
EBITDA
EBITDA increased to DKK 24 million for a margin of 4.1% in Q2 2024 against DKK 17 million and a margin of 2.7% in Q2 2023, which included the re-evaluation of provisions.
H1 2024 EBITDA amounted to DKK 45 million against DKK 57 million in H1 2023.
Amortisation and depreciation
In Q2 2024, amortisation and depreciation came to DKK 12 million, up from DKK 11 million in Q2 2023.
In H1 2024, the amount was DKK 24 million against DKK 22 million in the comparison period.
Amortisation mainly consists of development projects, whereas depreciation primarily refers to leasing contracts, factory equipment and IT projects.
EBIT
EBIT came to DKK 12 million in Q2 2024, up from DKK 6 million in Q2 2023, which was impacted by special items of DKK 1 million. For H1 2024, EBIT amounted to DKK 21 million against DKK 35 million in H1 2023.
Net financials
In Q2 2024, net financials were an expense of DKK 10 million, down from an expense of DKK 13 million in Q2 2023. For H1 2024, net financials came to an expense of DKK 20 million, down from an expense of DKK 22 million in H1 2023, which was impacted by refinancing costs from full amortisation of cost related to previous loan and higher interest.
Taxation
In Q2 2024, tax amounted to negative DKK 3 million compared to DKK 2 million in Q2 2024. For H1 2024 tax amounted to DKK 2 million, on par with H1 2023.
Discontinued operations
In 2020, HusCompagniet closed its brick house activities in Germany and Sweden. H1 2024 profit from discontinued operations came to DKK 8 million compared to a loss of DKK 3 million in the comparison period. The change mainly reflected an adjustment of close-down provision and a correction of tax for previous years.
Group profit for the period
Q2 2024 profit amounted to DKK 8 million, up from negative DKK 8 million in Q2 2023. In H1 2024, profit came to DKK 7 million, on par with H1 2023.
| Q2-2024 | Q2-2023 | H1-2024 | H1-2023 | FY-2023 | ||
| Sales (units) | 368 | 219 | 640 | 445 | 851 | |
| Detached | 201 | 169 | 373 | 287 | 579 | |
| Semi detached | 140 | 9 | 228 | 101 | 171 | |
| Sweden | 27 | 41 | 39 | 57 | 101 | |
| Deliveries (units) | 215 | 265 | 382 | 609 | 1,054 | |
| Detached | 160 | 142 | 272 | 342 | 633 | |
| Semi detached | 33 | 73 | 71 | 145 | 234 | |
| Sweden | 22 | 50 | 39 | 122 | 187 | |
| Order backlog (gross) (DKKm) | 1,935 | 1,659 | 1,513 | |||
| Detached | 1,362 | 1,080 | 1,058 | |||
| Semi detached | 480 | 449 | 363 | |||
| Sweden | 93 | 129 | 93 | |||
| Order backlog (net) (DKKm) | 1,472 | 1,179 | 1,145 | |||
| Detached | 1,061 | 775 | 805 | |||
| Semi detached | 320 | 278 | 248 | |||
| Sweden | 92 | 125 | 93 | |||
| Share of own land* (%) | 10.9% | 14.0% | 9.6% | 12.9% | 13.1% | |
| Detached (%) | 7.5% | 9.2% | 6.3% | 8.5% | 7.3% | |
| Semi-detached (%) | 27.3% | 23.3% | 22.5% | 23.4% | 29.1% | |
*Only Denmark
Cash flow
Operating activities
In Q2 2024, cash flow from operating activities came to DKK 135 million, up from DKK 65 million in Q2 2023. The development was primarily driven by increased deliveries in the detached segment and a relative increase in on-account invoicing of B2B projects as well as timing of creditor payments between quarters.
In H1 2024, cash generated from operating activities amounted to DKK 134 million, up from DKK 97 million in the comparison period.
Investing activities
In Q2 2024, cash outflow from investing activities amounted to DKK 3 million, against an outflow of DKK 4 million in Q2 2023.
In H1 2024, cash outflow came to DKK 4 million compared to an outflow of DKK 11 million in H1 2023, which was impacted by higher investments in property, plant and equipment as well as digitalisation projects.
Financing activities
Cash outflow from financing activities in Q2 2024 was DKK 11 million against an inflow of DKK 18 million in Q2 2023, which mainly related to a capital raise of DKK 207 million and repayment of loans (DKK 175 million).
H1 2024 cash outflow came to DKK 17 million compared to an inflow of DKK 2 million in H1 2024.
Free cash flow
Q2 2024 free cash flow increased to DKK 133 million, up from DKK 61 million in Q2 2023, mainly driven by operating activities.
In H1 2024 free cash flow came to DKK 130 million against DKK 87 million in H1 2023.
Balance sheet
Financing
At end of H1 2024, net interest-bearing debt (NIBD) amounted to DKK 236 million, down from DKK 489 million at end-H1 2023, supported by lower working capital. The financial leverage was 2.4x LTM EBITDA compared to 3.3x at year-end 2023.
Equity
Equity amounted to DKK 2,093 million in H1 2024, up from DKK 2,064 million in H1 2023 due to higher retained earnings and other reserves.
Net working capital
At end-H1 2024, net working capital amounted to DKK 216 million, down from DKK 461 million in the comparison period. The development was driven by the improved cash flow from operating activities.
Contract assets
At end-H1 2024, Net contract assets were DKK 264 million, down from 425 end-H1 2023 due to lower sales level in H1 2023.
Dividend
Dividends were suspended in 2023 as part of the debt refinancing agreement entered into in Q2 2023. HusCompagniet expects to return to making dividend payments, once the leverage is below 2x net debt to EBITDA.
Segments
In H1 2024, the detached segment comprised 77% of total revenue, whereas semi-detached and Wooden houses generated 18% and 5%, respectively. H1 2023 revenue split was 67%, 19% and 14%, respectively.
Detached houses
Q2 2024 revenue amounted to DKK 461 million, up from DKK 412 million and Average selling price (ASP) was DKK 2.8 million, down from DKK 2.9 million. Deliveries totalled 160 against 142 last year, and share of own land deliveries was 7.5%, down from 9.2%. Sales came to 201 housing units, up from 169 in Q2 2023.
H1 2024 revenue decreased to DKK 817 million from DKK 859 million in H1 2023 with ASP coming to DKK 2.8 million, down from DKK 2.9 million in H1 2023, due to changes in market geography and product mix. Deliveries totalled 272, down from 342 in 2023, and share of own land deliveries was 6.3%, down from 8.5% in 2023. The number of housing units sold was 373, up from 287 in H1 2023.
In Q2 2024, gross margin was 19.9%, up from 15.0% in 2023, and EBITDA was DKK 20 million against negative DKK 5 million in the comparison period, which was impacted by the beforementioned provision of DKK 15 million. In H1 2024, gross margin was 20.0%, up from 16.8% in H1 2023, and EBITDA came to DKK 23 million against DKK 12 million in H1 2023.
In Q2 2024, EBIT amounted to DKK 11 million compared to negative DKK 13 million in the comparison period. EBIT for H1 2024 came to DKK 5 million, up from DKK negative 4 million last year.
In July 2024, 21 houses were delivered, and 50 units were sold compared to 32 deliveries and 40 sales in July 2023.
Semi-detached houses
In Q2 2024, revenue amounted to DKK 91 million, down from DKK 130 million in Q2 2023 and with ASP declining to DKK 1.5 million from DKK 2.1 million last year due to the mix in deliveries. Deliveries came to 33 compared to 73 last year, due to lower sales in previous quarters. The share of own land deliveries was 27.3% against 23.3% in Q2 2023. Sales increased significantly to 140 units from 9.
In H1 2024, revenue came to DKK 192 million, down from DKK 247 million last year, while ASP amounted to DKK 1.6 million, down from DKK 1.8 million in H1 2023. Deliveries totalled 71 units compared to 145 units last year. The share of own land deliveries was 22.5%, down from 23.4% last year. 228 units were sold, up from 101 units in H1 2023.
The Q2 2024 gross margin increased to 25.9% from 23.8% in Q2 2023 despite the lower ASP, and EBITDA was DKK 3 million, down from DKK 14 million. In H1 2024, gross margin was 32.5%, up from 25.8% in H1 2023, for an EBITDA of DKK 22 million, down from DKK 30 million. Q2 2024 EBIT was DKK 2 million against DKK 13 million last year. EBIT for H1 2024 came to DKK 19 million, down from DKK 27 million in H1 2023.
No semi-detached housing units were delivered in July 2024, while 32 units were sold against no deliveries and 2 sales in July 2023.
Wooden houses
Revenue in Q2 2024 amounted to DKK 27 million compared to DKK 82 million last year with ASP of DKK 1.1 million against DKK 1.6 million last year. Deliveries were 22, down from 50 in Q2 2023. 27 housing units were sold, down from 41 last year
H1 2024 revenue was DKK 54 million, down from 175 million. ASP came to DKK 1.3 million against 1.4 million last year. 39 units were delivered, down from 122 units in H1 2023. 39 units were sold compared to 57 in H1 2023.
Q2 2024 gross margin was 46.4%, up from 30.6% in Q2 2023, aided by delivery of a show house. EBITDA came to DKK 1 million, down from DKK 7 million. H1 2024 gross margin was 43.5%, compared to 33.9% in H1 2023, with EBITDA of DKK 0 million, down from DKK 15 million.
In Q2 2024, EBIT reached negative DKK 1 million against DKK 6 million last year. EBIT for H1 2024 was negative DKK 4 million, down from DKK 12 million in H1 2023.
In July 2024, 2 houses were delivered, and 9 units were sold in the Swedish Wooden houses segment compared to 4 deliveries and 2 sales in July 2023.
| Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | |
| Deliveries | 215 | 167 | 232 | 213 | 265 | 344 |
| Sales | 368 | 272 | 212 | 194 | 219 | 226 |
Outlook for 2024
Based on the H1 financial performance and expectations for the remainder of 2024, the guidance issued on 8 March 2024 is narrowed:
- Revenue is expected to be DKK 2.3-2.4 billion (previously DKK 2,300-2,600 million)
- EBITDA is expected to be DKK 90-120 million (previously DKK 80-130 million)
- Operating profit (EBIT) is expected to be DKK 40-70 million (previously DKK 30-80 million)
Assumptions for the outlook
The 2024 guidance is based on no severe disruption of supply chains emerging and on raw material prices not significantly exceeding current levels.
- Current expectations for 2024 deliveries are between 850 and 950
General assumptions
General assumptions comprise assumptions relating to macro-economic conditions, industry considerations, regulatory changes, and customer behaviour. The Group's estimates assume that there will not be any material change in the competitive or regulatory landscape, and no other external actions.
Forward-looking statements
This interim report includes forward-looking statements on various matters, such as expected earnings and future strategies and expansion plans. Such statements are uncertain and involve various risks, as many factors, some of which are beyond our control, may result in actual developments differing considerably from the set expectations. Such factors include but are not limited to general economic and business conditions, exchange rate and interest rate fluctuations, the demand for our services and competition in the market.
Risk factors
HusCompagniet is exposed to strategic, operational, and financial risks, which are described in the management review and the 2023 Annual Report prepared in accordance with IFRS.
Statement by Management
The Board of Directors and the Executive Board have reviewed and approved the interim condensed consolidated financial statement of the Group for the period 1 January - 30 June 2024. The interim condensed consolidated financial statement, which has not been audited or reviewed by the Company's auditor, has been prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the EU, and additional Danish disclosure requirements for interim financial reporting of listed companies.
It is our opinion that the interim condensed consolidated financial statement gives a true and fair view of the financial position for the Group on 30 June 2024 and the results of the Group's operations and cash flows for the period 1 January - 30 June 2024.
Further, in our opinion, the Management's review gives a fair view of the development in the Group's activities and financial matters, results of operations, cash flows and financial position as well as a description of material risks and uncertainties that the Group face.
Virum, 23 August 2024
Executive Board:
Martin Ravn-Nielsen Allan Auning-Hansen
Group CEO Group CFO
Board of Directors:
Claus V. Hemmingsen Anja B. Eriksson
Chairperson Vice chairperson
Stig Pastwa Ylva Ekborn
Ole Lund Andersen Michael Troensegaard Andersen
| Interim consolidated Income Statement | |||||||||
| DKK'000 | Note | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 | |||
| Revenue | 3, 4 | 579,118 | 623,840 | 1,062,388 | 1,280,081 | 2,381,357 | |||
| Cost of Sales | -451,029 | -505,874 | -813,424 | -1,012,949 | -1,864,177 | ||||
| Gross profit | 128,089 | 117,966 | 248,964 | 267,132 | 517,180 | ||||
| Staff cost | -75,807 | -73,912 | -151,998 | -144,689 | -281,391 | ||||
| Other external expenses | -28,384 | -28,520 | -53,427 | -64,488 | -127,756 | ||||
| Other operating income/(expenses), net | 0 | 6 | 1,397 | -257 | 0 | ||||
| Operating profit before depreciation and amortisation (EBITDA) before special items | 23,897 | 15,541 | 44,935 | 57,698 | 108,033 | ||||
| Special items | 0 | 1,108 | 0 | -1,145 | 347 | ||||
| Operating profit before depreciation and amortisation (EBITDA) after special items | 23,897 | 16,649 | 44,935 | 56,553 | 108,380 | ||||
| Depreciation and amortisation | -12,116 | -11,021 | -24,327 | -22,047 | -46,075 | ||||
| Operating profit (EBIT) | 11,781 | 5,628 | 20,609 | 34,506 | 62,305 | ||||
| Financial income | 402 | 954 | 974 | 954 | 2,301 | ||||
| Financial expenses | -10,240 | -13,538 | -20,754 | -23,304 | -40,830 | ||||
| Profit before tax from continuing operations | 1,944 | -6,956 | 829 | 12,156 | 23,776 | ||||
| Tax on profit | -2,691 | 2,285 | -2,265 | -2,235 | -6,437 | ||||
| Profit for the period from continuing operations | -747 | -4,671 | -1,436 | 9,921 | 17,339 | ||||
| Profit/(loss) after tax for the period from discontinued operations | 5 | 8,387 | -3,073 | 8,193 | -3,075 | -2,683 | |||
| Profit for the period | 7,640 | -7,744 | 6,757 | 6,847 | 14,656 | ||||
| Profits attributable to: | |||||||||||||||||
| DKK'000 | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 | ||||||||||||
| Equity owners of the Company | 7,640 | -7,744 | 6,757 | 6,847 | 14,656 | ||||||||||||
| Earnings per share: | |||||||||||||||||
| DKK | Note | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 | |||||||||||
| Earnings per share (EPS Basic) | 0.4 | -0.4 | 0.3 | 0.3 | 0.7 | ||||||||||||
| Diluted earnings per share (EPS-D) | 0.4 | -0.4 | 0.3 | 0.3 | 0.7 | ||||||||||||
| Earnings per share (EPS Basic) continuing operations | 0.0 | -0.4 | -0.1 | 0.5 | 0.9 | ||||||||||||
| Diluted earnings per share (EPS-D) continuing operations | 0.0 | -0.4 | -0.1 | 0.5 | 0.9 | ||||||||||||
| Earnings per share (EPS) (DKK) from discontinued business | 0.4 | -0.1 | 0.4 | -0.1 | -0.1 | ||||||||||||
| Diluted earnings per share (EPS-D) (DKK) from discontinued business | 0.4 | -0.1 | 0.4 | -0.1 | -0.1 | ||||||||||||
| Interim consolidated Statement of Other Comprehensive Income | |||||||||||||||||
| DKK'000 | Note | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 | |||||||||||
| Profit for the year | 7,640 | -7,744 | 6,757 | 6,847 | 14,656 | ||||||||||||
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | ||||||||||||
| Items that may be reclassified to the income statement in subsequent periods | 0 | 0 | 0 | 0 | 0 | ||||||||||||
| Foreign currency translation differences, subsidiary | 5,266 | -14,000 | -8,376 | -18,473 | 1,662 | ||||||||||||
| Other comprehensive income, net of tax | 5,266 | -14,000 | -8,376 | -18,473 | 1,662 | ||||||||||||
| Total comprehensive income for the year | 12,906 | -21,744 | -1,619 | -11,626 | 16,318 | ||||||||||||
| Total comprehensive income attributable to: | ||||||
| DKK'000 | Note | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 |
| Equity owners of the Company | 12,906 | -21,744 | -1,619 | -11,626 | 16,318 | |
| Interim consolidated Balance Sheet | |||||||||
| DKK'000 | Note | H1 2024 | H1 2023 | FY 2023 | |||||
| Assets | |||||||||
| Non-current assets | |||||||||
| Goodwill | 9 | 2,011,522 | 2,001,953 | 2,017,181 | |||||
| Intangible assets | 26,834 | 36,957 | 33,289 | ||||||
| Right-of-use assets | 60,323 | 67,854 | 65,223 | ||||||
| Property, plant, and equipment | 89,148 | 95,030 | 94,146 | ||||||
| Deferred tax asset | 32,602 | 30,811 | 32,602 | ||||||
| Other receivables | 15,290 | 3,778 | 15,293 | ||||||
| Total non-current assets | 2,235,719 | 2,236,383 | 2,257,734 | ||||||
| Current assets | |||||||||
| Inventories | 6 | 273,571 | 343,820 | 281,062 | |||||
| Contract assets | 7 | 463,548 | 522,408 | 352,932 | |||||
| Trade and other receivables | 139,930 | 161,697 | 140,678 | ||||||
| Prepayments | 10,888 | 18,235 | 8,405 | ||||||
| Cash and cash equivalents | 337,202 | 94,951 | 223,454 | ||||||
| Total current assets | 1,225,138 | 1,141,110 | 1,006,531 | ||||||
| Total assets | 3,460,857 | 3,377,493 | 3,264,265 | ||||||
| Interim consolidated Balance Sheet - continued | |||||
| DKK'000 | Note | H1 2024 | H1 2023 | FY 2023 | |
| Equity | |||||
| Share capital | 108,550 | 108,550 | 108,550 | ||
| Retained earnings and other reserves | 1,984,725 | 1,955,596 | 1,989,043 | ||
| Total equity | 2,093,275 | 2,064,146 | 2,097,593 | ||
| Liabilities | |||||
| Non-current liabilities | |||||
| Borrowings | 8 | 505,769 | 505,886 | 505,871 | |
| Lease liabilities | 50,399 | 55,238 | 51,741 | ||
| Provisions | 27,420 | 30,503 | 28,228 | ||
| Deferred tax liability | 29,571 | 36,923 | 30,190 | ||
| Total non-current liabilities | 613,160 | 628,550 | 616,030 | ||
| Current liabilities | |||||
| Borrowings | 8 | 920 | 1,044 | 937 | |
| Lease liabilities | 16,446 | 21,842 | 21,004 | ||
| Trade and other payables | 403,298 | 399,192 | 292,288 | ||
| Contract liabilities | 7 | 199,724 | 97,656 | 90,973 | |
| Prepayments from customers | 7 | 720 | 9,276 | 2,865 | |
| Provisions | 28,194 | 28,667 | 27,124 | ||
| Income tax payable | 21,410 | 44,425 | 19,427 | ||
| Other liabilities | 83,710 | 82,694 | 96,024 | ||
| Total current liabilities | 754,422 | 684,796 | 550,642 | ||
| Total liabilities | 1,367,582 | 1,313,347 | 1,166,672 | ||
| Total equity and liabilities | 3,460,857 | 3,377,493 | 3,264,265 | ||
| Interim consolidated Statement of Cash Flows | ||||||||||||||
| DKK'000 | Note | H1 2024 | H1 2023 | FY 2023 | ||||||||||
| Cash flow from operating activities | ||||||||||||||
| EBITDA, after special items | 44,935 | 56,553 | 108,380 | |||||||||||
| EBITDA, discontinued activities | 3,594 | -2,980 | -317 | |||||||||||
| EBITDA | 48,529 | 53,573 | 108,063 | |||||||||||
| Adjustments for non-cash items | -57 | 4,936 | 17,954 | |||||||||||
| Adjusted EBITDA | 48,472 | 58,509 | 126,017 | |||||||||||
| Changes in working capital | 100,447 | 64,666 | 209,564 | |||||||||||
| Cash flow from operating activities before financial items | 148,919 | 123,175 | 335,581 | |||||||||||
| Interest received | 974 | 954 | 2,301 | |||||||||||
| Interest elements of lease payments | -1,955 | -2,191 | -4,333 | |||||||||||
| Interest paid | -18,798 | -18,826 | -36,497 | |||||||||||
| Corporation tax paid/received | 4,545 | -5,935 | -47,614 | |||||||||||
| Net cash generated from operating activities | 133,685 | 97,177 | 249,438 | |||||||||||
| Cash flow from investing activities | ||||||||||||||
| Acquisition of assets recognised as property, plant, and equipment | -1,746 | -4,756 | -11,032 | |||||||||||
| Sale of assets recognised as property, plant and equipment | 103 | 0 | 1,435 | |||||||||||
| Acquisition of assets recognised as intangible assets | -2,245 | -5,764 | -10,539 | |||||||||||
| Net cash generated from investing activities | -3,887 | -10,521 | -20,136 | |||||||||||
| Cash flow from financing activities | ||||||||||||||
| Repayment of long-term debt and mortgage | -457 | -675,489 | -675,948 | |||||||||||
| Proceeds from loans | 0 | 500,000 | 500,000 | |||||||||||
| Repayment of lease liabilities | -10,369 | -12,588 | -23,736 | |||||||||||
| Capital increase | 0 | 206,500 | 206,500 | |||||||||||
| Transaction costs share issue | 0 | -8,087 | -8,088 | |||||||||||
| Acquisition of own shares | -5,888 | -7,935 | -7,935 | |||||||||||
| Net cash generated from financing activities | -16,714 | 2,402 | -9.207 | |||||||||||
| Total cash flows | 113,081 | 89,058 | 220,095 | |||||||||||
| Cash and cash equivalents on 1 January | 223,454 | 5.207 | 5,207 | |||||||||||
| Net foreign currency gains or losses | 667 | 685 | -1,848 | |||||||||||
| Cash and cash equivalents on 30 June/31 December | 337,202 | 94,951 | 223,454 | |||||||||||
| Free cash flow | 129,798 | 86,657 | 229,302 | |||||||||||
| Interim consolidated statement of changes in equity | ||||||||||||||
| 2024 | ||||||||||||||
| DKK'000 | Share capital | Foreign currency translation reserve | Retained earnings | Proposed dividend | Total | |||||||||
| Equity on 1 January | 108,550 | -8,401 | 1,997,444 | 0 | 2,097,593 | |||||||||
| Profit for the period | 0 | 0 | 6,757 | 0 | 6,757 | |||||||||
| Other comprehensive income: | ||||||||||||||
| Foreign currency translation differences | 0 | -8,376 | 0 | 0 | -8,376 | |||||||||
| Total other comprehensive income | 0 | -8,376 | 0 | 0 | -8,376 | |||||||||
| Transactions with owners of the Company and other equity transactions: | ||||||||||||||
| Share-based payment | 0 | 0 | 3,190 | 0 | 3,190 | |||||||||
| Purchase of own shares | 0 | 0 | -5,888 | 0 | -5,888 | |||||||||
| Total transactions with owners of the Company and other equity transactions | 0 | 0 | -2,698 | 0 | -2,698 | |||||||||
| Equity on 30 June | 108,550 | -16,777 | 2,001,503 | 0 | 2,093,275 | |||||||||
| Interim consolidated statement of changes in equity | |||||||||
| 2023 | |||||||||
| DKK'000 | Share capital | Foreign currency translation reserve | Retained earnings | Proposed dividend | Total | ||||
| Equity on 1 January | 91,050 | -10,063 | 1,800,103 | 0 | 1,881,090 | ||||
| Profit for the period | 0 | 0 | 6,847 | 0 | 6,847 | ||||
| Other comprehensive income: | |||||||||
| Foreign currency translation differences | 0 | -18,473 | 0 | 0 | -18,473 | ||||
| Total other comprehensive income | 0 | -18,473 | 0 | 0 | -18,473 | ||||
| Transactions with owners of the Company and other equity transactions: | |||||||||
| Increase in capital | 17,500 | 0 | 189,000 | 0 | 206,500 | ||||
| Transaction costs capital increase | 0 | 0 | -8,087 | 0 | -8,087 | ||||
| Share-based payment | 0 | 0 | 4,205 | 0 | 4,205 | ||||
| Purchase of own shares | 0 | 0 | -7,935 | 0 | -7,935 | ||||
| Total transactions with owners of the Company and other equity transactions | 17,500 | 0 | 177,184 | 0 | 194,684 | ||||
| Equity on 30 June | 108,550 | -28,537 | 1,984,133 | 0 | 2,064,146 | ||||
Notes overview
- Summary of significant accounting policies 20
- Accounting estimates and judgements 20
- Segment information 20
- Revenue 23
- Discontinued operations 25
- Inventory 26
- Contract assets 26
- Borrowings 27
- Impairment 27
- Events after the balance sheet date 28
1 Accounting policies
This interim condensed financial report comprises the period 1 January - 30 June 2024.
The interim condensed financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and additional Danish disclosure requirements for interim financial reporting of listed companies.
The accounting policies are unchanged from the 2023 consolidated financial statements, to which reference is made except the changes stated below. A full description of accounting policies is provided in the 2023 consolidated financial statements.
Selected key highlights comparison figures have been adjusted and no longer reflect the alternative performance measure 'Before special items'. As stated in the Q1 trading statement, the composition of inventory items has been restated for FY 2023 figures.
A correction has been made to comparison figures in note 7 Contract Assets, restating the delivery obligations in FY 2023, within one year from DKK 1,231,415 to DKK 1,372,282.
Changes to accounting policies
HusCompagniet A/S has implemented the following new or amended standards and interpretations with effect from 1 January 2024:
- Amendments to IFRS 16: Lease Liability in a Sale and Leaseback - Amendments to IAS 1: Classification of Liabilities as Current or Non-current - Amendments to IAS 7 and IFRS 7
HusCompagniet A/S has implemented the standards and interpretations that became effective in the EU for 2024. None of these standards or interpretations have affected recognition or measurement in 2024 or are expected to affect the Group.
2 Accounting estimates and judgements
In preparing the interim condensed financial statements, management made various judgements, estimates and assumptions concerning future events that affected the application of the Group's accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.
The significant estimates made by management applying the Group's accounting policies and the associated significant estimating uncertainties are the same for the preparation of the interim condensed financial statements as for the preparation of the consolidated financial statements for 2023.
3 Segment information
For management purposes, the Group is organised into business units based on its products and services. The Group has three reportable segments, as follows:
- The detached houses in Denmark segment, which comprises brick houses built on site and plots
- The semi-detached houses in Denmark segment, which comprises brick houses built on sites and plots, includes both business-to-business and business-to-consumers.
- The Wooden houses comprises detached prefabricated houses
Executive Management is responsible for operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on EBITDA and is measured consistently with operating profit (EBIT) plus amortisation and depreciation in the consolidated financial statements. The Group's depreciation, amortisations, financing (including financial income and financial expenses) and income taxes are managed on a Group basis and are not allocated to operating segments. Assets and Liabilities are not allocated to segments.
Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.
3 Segment information - continued
| H1 2024 | |||||||
| DKK'000 | Detached houses | Semi-detached houses | Wooden houses | Total continuing operations | Total discontinued operations | Total segments | |
| Revenue | |||||||
| External customers | 856,609 | 152,270 | 53,509 | 1,062,388 | -31 | 1,062,357 | |
| Inter-segment | -39,523 | 39,523 | 0 | 0 | 0 | 0 | |
| Total revenue | 817,086 | 191,793 | 53,509 | 1,062,388 | -31 | 1,062,357 | |
| Income/(expenses) | |||||||
| Cost of goods | -691,594 | -91,590 | -30,240 | -813,424 | 38 | -813,386 | |
| Inter-segment | 37,942 | -37,942 | 0 | 0 | 0 | 0 | |
| Segment gross profit | 163,433 | 62,261 | 23,269 | 248,964 | 6 | 248,971 | |
| Gross margin | 20.0% | 32.5% | 43.5% | 23.4% | n.a. | 23.2% | |
| Other operating income/(expenses), net | 1,397 | 0 | 0 | 1,397 | 0 | 1,397 | |
| Staff costs | -102,294 | -38,049 | -11,655 | -151,998 | 0 | -151,998 | |
| Other operating expenses | -39,172 | -2,360 | -11,895 | -53,427 | -37 | -53,464 | |
| Special items | 0 | 0 | 0 | 0 | 3,625 | 3,625 | |
| EBITDA | 23,364 | 21,853 | -281 | 44,935 | 3,594 | 48,530 | |
| EBITDA margin | 2.9% | 11.4% | n.a. | 4.2% | n.a. | 4.6% | |
| Depreciation and amortisation | -18,385 | -2,605 | -3,337 | -24,327 | 0 | -24,327 | |
| EBIT | 4,979 | 19,248 | -3,617 | 20,609 | 3,594 | 24,203 | |
| EBIT margin | 0.6% | 10.0% | n.a. | 1.9% | n.a. | 2.3% | |
3 Segment information - Continued
| H1 2023 | ||||||||||||||||
| DKK'000 | Detached houses | Semi-detached houses | Wooden houses | Total continuing operations | Total discontinued operations | Total segments | ||||||||||
| Revenue | ||||||||||||||||
| External customers | 881,584 | 223,877 | 174,620 | 1,280,081 | -275 | 1,279,807 | ||||||||||
| Inter-segment | -22,905 | 22,905 | 0 | 0 | 0 | 0 | ||||||||||
| Total revenue | 858,680 | 246.782 | 174,620 | 1,280,081 | -275 | 1,279,807 | ||||||||||
| Income/(expenses) | ||||||||||||||||
| Cost of goods | -736,525 | -161,015 | -115,409 | -1,012,949 | 3 | -1,012,946 | ||||||||||
| Inter-segment | 21,988 | -21,988 | 0 | 0 | 0 | 0 | ||||||||||
| Segment gross profit | 144,143 | 63,778 | 59,211 | 267,132 | -271 | 266,860 | ||||||||||
| Gross margin | 16.8% | 25.8% | 33.9% | 20.9% | n.a. | 20.9% | ||||||||||
| Other operating income/(expenses), net | -160 | -97 | 0 | -257 | 0 | -257 | ||||||||||
| Staff costs | -97,828 | -31,741 | -15,119 | -144,689 | 0 | -144,689 | ||||||||||
| Other operating expenses | -34,590 | -2,627 | -27,271 | -64,488 | 272 | -64,216 | ||||||||||
| Special items | 432 | 205 | -1,783 | -1,145 | -2,981 | -4,126 | ||||||||||
| EBITDA | 11,997 | 29,518 | 15,037 | 56,553 | -2,980 | 53,573 | ||||||||||
| EBITDA margin | 1.4% | 12.0% | 8.6% | 4.4% | n.a. | 4.2% | ||||||||||
| Depreciation and amortisation | -16,472 | -2,422 | -3,152 | -22,047 | 0 | -22,046 | ||||||||||
| EBIT | -4,474 | 27,073 | 11,885 | 34,506 | -2,980 | 31,527 | ||||||||||
| EBIT margin | n.a. | 11.0% | 6.8% | 2.7% | n.a. | 2.5% | ||||||||||
| Reconciliation of profit as per interim statement | ||||||||||||||||
| DKK'000 | 2024 H1 | 2023 H1 | ||||||||||||||
| Segment EBIT from continuing operations | 20,609 | 34,506 | ||||||||||||||
| Segment EBIT from discontinued operations | 3,594 | -2,980 | ||||||||||||||
| Financial income | 1,131 | 1,007 | ||||||||||||||
| Financial expenses | -20,856 | -23,452 | ||||||||||||||
| Loss before tax from discontinued operations | -3,649 | 3,075 | ||||||||||||||
| Profit before tax from continuing operations | 829 | 12,156 | ||||||||||||||
4 Revenue
| Revenue per segment and category - Contracted Sales | |||||||||||
| H1 2024 | |||||||||||
| DKK'000 | Detached houses | Semi-detached houses | Wooden houses | Total continuing operations | Total discontinued operations | Total segments | |||||
| Sales value houses sold on customers building sites | 750,944 | 133,534 | 53,509 | 937,987 | 0 | 937,987 | |||||
| Sales value houses sold on own building sites | 27,047 | 58,123 | 0 | 85,170 | 0 | 85,170 | |||||
| Total Contracted sales | 777,990 | 191,657 | 53,509 | 1,023,157 | 0 | 1,023,157 | |||||
| Revenue per segment and category - Non-contracted sales | |||||||||||
| DKK'000 | Detached houses | Semi-detached houses | Wooden houses | Total continuing operations | Total discontinued operations | Total segments | |||||
| Show- and project houses | 33,314 | 0 | 0 | 33,314 | 0 | 33,314 | |||||
| Other revenue | 0 | 136 | 0 | 136 | -31 | 105 | |||||
| Sales of land plots | 5,782 | 0 | 0 | 5,782 | 0 | 5,782 | |||||
| Total Non-contracted sales | 39,095 | 136 | 0 | 39,231 | -31 | 39,200 | |||||
| Total Revenue | 817,086 | 191,793 | 53,509 | 1,062,388 | -31 | 1,062,357 | |||||
4 Revenue - Continued
| Revenue per segment and category - Contracted Sales | ||||||||||||
| H1 2023 | ||||||||||||
| DKK'000 | Detached houses | Semi-detached houses | Wooden houses | Total continuing operations | Total discontinued operations | Total segments | ||||||
| Sales value houses sold on customers building sites | 779,984 | 135,363 | 174,620 | 1,089,966 | 0 | 1,089,966 | ||||||
| Sales value houses sold on own building sites | 7,843 | 111,346 | 0 | 119,189 | 0 | 119,189 | ||||||
| Total Contracted sales | 787,827 | 246,709 | 174,620 | 1,209,156 | 0 | 1,209,156 | ||||||
| Revenue per segment and category - Non-contracted sales | ||||||||||||
| DKK'000 | Detached houses | Semi-detached houses | Wooden houses | Total continuing operations | Total discontinued operations | Total segments | ||||||
| Show houses | 67,683 | 0 | 0 | 67,683 | 0 | 67,683 | ||||||
| Other revenue | 309 | 73 | 0 | 382 | -275 | 107 | ||||||
| Sales of land plots | 2,861 | 0 | 0 | 2,861 | 0 | 2,861 | ||||||
| Total Non-contracted sales | 70,853 | 73 | 0 | 70,925 | -275 | 70,651 | ||||||
| Total Revenue | 885,680 | 246,782 | 174,620 | 1,280,081 | -275 | 1,279,807 | ||||||
| Revenue per continuing and discontinued operations | ||||||||||||
| DKK'000 | 2024 H1 | 2023 H1 | ||||||||||
| Total revenue from continuing operations | 1,062,388 | 2,266,150 | ||||||||||
| Total revenue from discontinued operations | -31 | 0 | ||||||||||
| Total revenue | 1,062,357 | 1,279,807 | ||||||||||
The Group is engaged in construction activities in Denmark and Sweden.
Revenue from non-contracted sales is recognised on delivery (point-in-time). Revenue from contracted sales of houses is recognised over time as control of the house is transferred to the customer, corresponding to the costs incurred in constructing the house. Payment is typically due at the time of final delivery of the house project; however, a small deposit is paid upon contract negotiation.
The Group receives a bank guarantee in connection with the start-up of each contract, and is entitled to payment for work performed, including profit, during the project. Construction contracts with professional investors may also include payments on account.
Contracted sales comprise the sale of houses constructed on the customer's land, or houses sold on own land (semi-detached includes land plots) that are covered by a customer contract before construction is started. All contracted sales are fixed price contracts and any changes to the cost price is carried by HusCompagniet as an adjustment to the gross profit.
4 Revenue - Continued
Conversely, non-contracted sales comprise of:
1. The sale of houses constructed on own land to which no customer contract has been entered into before construction starts.
2. The sale of detached land-plots to which no customer contract has been entered into before purchase and development of the land plots.
5 Discontinued operations
In 2019, the Group decided to close down its German activities and focus on its original core market segments. The decision was driven by the difficulty of establishing a network of suppliers to support its business and of establishing significant brand recognition in a new large market. Also in 2019, the Group decided to cease its Swedish brick-house business activities due to the substantial differences in the
supply and sales process in Sweden as compared to Denmark and due to Swedish customer preferences for wooden rather than brick houses. The German and Swedish brick house activities were closed down during September 2020. The closing of the discontinued operations is proceeding and expected to be finalised in 2024. An adjustment for provision for close down costs reflects a partial reversal of expenses in H1 2024 compared to H1 2023. Finance costs are mainly related to currency exchange losses from intercompany loans, and tax on profit/(loss) is related to adjustment of income double taxation in Sweden regarding the years 2015-2020.
| DKK'000 | H1 2024 | H1 2023 |
| Revenue | 0 | 0 |
| Expenses | 3,594 | -2,980 |
| Operating income | 3,594 | -2,980 |
| Finance costs | -197 | -95 |
| Finance income | 251 | 0 |
| Profit/(loss) before tax from discontinued operations | 3,649 | -3,075 |
| Tax on profit/(loss) | 4,545 | 0 |
| Profit/(loss) after tax for the period from discontinued operations | 8,193 | -3,075 |
| The net cash flows generated/(incurred) by the discontinued operations in Sweden and Germany are as follows: | ||
| DKK'000 | H1 2024 | H1 2023 |
| Operating | 5,248 | -5,423 |
| Investing | 0 | 0 |
| Financing from group entities | 1,627 | 4,684 |
| Net cash inflow/(outflow) | 6,874 | -739 |
6 Inventories
| DKK'000 | H1 2024 | H1 2023 | FY 2023 |
| Raw materials | 21,991 | 20,423 | 22,182 |
| Show-houses and semi-detached houses (non-contracted) | 109,350 | 148,119 | 119,196 |
| Land | 142,964 | 178,282 | 140,419 |
| Write-down inventories | -735 | -3,005 | -735 |
| Total inventories | 273,571 | 343,820 | 281,062 |
7 Contract assets
| DKK'000 | H1 2024 | H1 2023 | FY 2023 | |
| Selling price of contract assets | 495,851 | 565,803 | 345,615 | |
| Invoicing on account | -232,027 | -141,052 | -92,657 | |
| 263,824 | 424,752 | 261,958 | ||
| Calculated as follows: | ||||
| Contract assets | 463,548 | 522,408 | 352,932 | |
| Contract liabilities | -199,724 | -97,656 | -90,973 | |
| 263,824 | 424,752 | 261,958 | ||
| Prepayments from customers regarding construction contracts not yet started | 720 | 9,276 | 2,865 | |
| Delivery obligations | H1 2024 | H1 2023 | FY 2023 | |
| Within one year | 1,797,043 | 1,512,269 | 1,372,282 | |
| After one year | 141,328 | 146,745 | 140,612 | |
Construction contracts (assets/liabilities)
Contract assets comprise the selling price of work performed where the Group does not yet have an unconditional right to payment as the work performed has not yet been approved by the customer.
Contract liabilities comprise agreed, unconditional payments received on account for work yet to be performed.
Payment is typically due at the time of final delivery of the house project, however a small deposit is paid upon contract negotiation. The Group receives a bank guarantee in connection with the start-up of each contract and is entitled to payment for work performed,
including profit during the project.
Contract liabilities were largely affected by a high level of deposits from larger projects.
Delivery obligations are secured orders from customers, where HusCompagniet is required to build a house for the customer.
*Correction of delivery obligations FY 2023, within one year from 1,231,415 to 1,372,282.
Credit risk on contract assets is generally managed by regular credit rating of customers and business partners, furthermore bank deposits or bank guarantees are obtained before the house is built. The credit risk exposure relating to dealing with private counterparties is estimated to be limited. For B2B projects, an individual assessment of the credit risk of the customer is conducted by management.
8. Borrowings
| DKK'000 | Maturity | Fixed or floating interest | Carrying amount |
| Bank loan | 2027 | Floating | 497,413 |
| Mortgage | 2032 | Floating | 9,276 |
| 30 June 2024 | 506,689 |
| DKK'000 | Maturity | Fixed or floating interest | Carrying amount |
| Bank loan | 2026 | Floating | 496,738 |
| Mortgage | 2032 | Floating | 10,192 |
| 30 June 2023 | 506,930 |
| DKK'000 | Maturity | Fixed or floating interest | Carrying amount |
| Bank loan | 2026 | Floating | 497,075 |
| Mortgage loan | 2032 | Floating | 9,733 |
| 31 December 2023 | 506,808 |
The presented amounts to be repaid do not include directly related costs arising from the issuing or extension of the loans of DKK 500m, which are amortized over the term of the loans. These directly related costs were DKK 2.5m in H1 2024 (H1 2023: DKK 3.3m).
As of 30 June 2024, HusCompagniet A/S was in compliance with the financial covenants. HusCompagniet A/S expects to remain in compliance with the financial covenants going forward.
9 Impairment
For impairment testing, goodwill is allocated to the three CGUs ("Detached", "Semi-detached" and "Wooden houses"), which are also the operating and reportable segments. Among other factors, the Group considers the relationship between its market capitalization and the carrying value of assets including goodwill, when assessing for indicators of impairment. Impairment tests are performed separately for all three CGUs once a year or more frequently if indication of impairment exists. On H1 2024, Management has revisited the key assumptions used for the impairment test performed at 31.12.2023 for all three CGUs and concluded that there is no indication for impairment.
Key Assumptions
The recoverable amount determined in the impairment test is based on a value-in-use calculation. To determine the value-in-use, Management is required to estimate the present value of the future free net cash flows based on budgets and strategy for the coming five years ("the budget period") as well as projections for the terminal period after the budget period. A five-year period is used to reflect a full
business cycle.
Assumptions used in the estimate of the present value include the discount rate, revenue growth (estimated on basis of expected units to be delivered and expected unit price) and EBIT-margin. Other assumptions include expected required investments, market share and growth expectations in the terminal period.
10 Events after the balance sheet date
HusCompagniet is not aware of any other events after 30 June 2024 that potentially could have a material impact on the Group's financial position.
