Lehto Group Plc: Half-Year Financial Report, January – June 2024
Lehto Group Plc
Half-year financial report
1 August 2024 at 7.30 (Finnish time)
From construction to real estate energy solutions and electricity storages
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 half-year financial report is unaudited. Figures in brackets refer to the corresponding period of the previous year, unless otherwise stated.
| Group | 1-6/ 2024 |
1-6/ 2023 |
1-12/ 2023 |
|
| Net sales from continuing operations, EUR million | 4,7 | 114,6 | 171,8 | |
| Change in net sales from continuing operations, % | -95,9 % | -30,1 % | -50,2 % | |
| Operating result from continuing operations, EUR million | -4,0 | -18,2 | -72,8 | |
| Operating result from continuing operations, % of net sales | -85,0 % | -15,9 % | -42,4 % | |
| Result from continuing operations, EUR million | -5,7 | -20,9 | -79,0 | |
| Result from discontinued operations, EUR million | 0,0 | 0,0 | -0,1 | |
| Result for the period, EUR million | -5,7 | -21,0 | -79,0 | |
| Earnings per share, EUR | -0,07 | -0,24 | -0,91 | |
| Cash and other liquid assets, EUR million | 0,7 | 9,0 | 6,1 | |
| Interest-bearing liabilities, EUR million | 15,8 | 28,1 | 20,6 | |
| Lease liabilities in interest-bearing liabilities, EUR million | 0,3 | 63,1 | 59,1 | |
| Equity ratio, % | -174,7 % | 25,1 % | -12,1 % | |
| Net gearing ratio, % | -84,4 % | 180,4 % | -594,5 % | |
| Equity ratio excluding IFRS 16 lease liabilities, % | -179,5 % | 37,9 % | -27,7 % | |
| Net gearing ratio excluding IFRS 16 lease liabilities, % | -82,9 % | 42,0 % | -116,9 % |
The net sales of the review period consist of the sales of the bankrupt subsidiaries before the bankruptcy date (February 8, 2024) and small parts of the sales of Lehto Components Oy.
Due to significant changes in the group's operation, structure and strategy, all financial data for the first half of 2024 are not comparable with previous periods.
Significant events in the review period
- On February 6, 2024, trading in Lehto Group Plc's shares was suspended in Nasdaq Helsinki. Trading in the shares is still suspended at the time of publication of this review.
- On February 8, 2024 Lehto Group Plc's subsidiaries Lehto Asunnot Oy, Lehto Tilat Oy and Lehto Korjausrakentaminen Oy were declared bankrupt.
- On February 16, 2024, a corporate restructuring procedure was started at Lehto Group Plc.
- On March 6, 2024 Lehto announced that the parent company's equity had gone negative.
- On March 19, 2024 shares of Insinööritoimisto Mäkeläinen Oy were sold.
- On May 1, 2024, the CEO of Lehto Group Plc changed.
- On 29 May 2024, Lehto announced that it would focus its business on energy solutions for buildings and electricity storage.
- On June 17, 2024, Lehto Group Plc's restructuring program proposal was submitted to the Oulu district court.
- The annual general meeting held on June 19, 2024 decided, among other things, on the new composition of the board of directors, the amendment of the articles of association, and significant authorizations for acquiring own shares and organizing share issues.
Stock exchange bulletins have been published about the above-mentioned events, which can be entirely red at https://lehto.fi/en/investors/stock-exchange-releases/.
Overview of the company’s situation
At the end of the review period, Lehto no longer has a construction business. The parent company Lehto Group Plc has started a corporate restructuring procedure. The restructuring program proposal has been submitted to the district court on June 17, 2024, and according to the company's estimate, the restructuring program could be confirmed during the third quarter of 2024. The main content of the restructuring program proposal is presented below in this report.
Lehto Group Plc still 100% owns Lehto Components Oy, a manufacturing company that manufactures components for the construction industry, which has its own factory property in Oulainen and leased factory premises in Hartola. Lehto is negotiating the sale of factories and factory operations. In addition to the factory company, the group includes small wholly or partially owned project, real estate or other companies that do not have significant operational activities.
The group's personnel has significantly decreased during the review period. At the end of June, the group had 99 employees, of which 88 were laid off full-time and some were working on a fixed-term or notice period. The laid off persons are employees of Lehto Components Oy.
The company's current focus is on starting new business, selling factory operations and verifying the prerequisites for the restructuring program. After the restructuring program is confirmed, the company has the conditions to acquire new equity financing and implement other measures of the restructuring program.
The group's current liquidity is weak. At the end of the review period, group’s cash assets were EUR 0.7 million and there are delays in paying accounts payable. The group does not have a regular income stream and cash income consists of sales of small assets. The group still incurs cash expenses from terminated service and other contracts that are unnecessary for the company. The group estimates that liquidity will improve during the second half of the year as a result of equity investments and the sale of factory operations.
Proposal for Lehto’s restructuring program
The administrator of Lehto Group Plc’s corporate restructuring proceedings, attorney Klaus Majamäki, has on 17 June 2024 filed proposal for the company’s restructuring program with the District Court of Oulu. In the view of the company and the administrator, the restructuring program would lead to a better outcome for the company’s creditors than bankruptcy. The aim of the restructuring program is, inter alia, to enable the company to start the Energy Construction Business (defined below), which the company announced on 29 May 2024.
The main content of the proposed restructuring program:
- The restructuring program is based on the company’s complete divestment of the construction business of Lehto Group and the reorientation of its business towards real estate energy solutions and electricity storages (“Energy Construction Business”). The Energy Construction Business is described in more detail in the stock exchange release published on 29 May 2024.
- In order to launch the Energy Construction Business, the company is required to raise EUR 2.5 million in equity financing within three months from the date on which the decision to approve the restructuring program has become final and EUR 2.5 million in debt or equity financing by 31 December 2025. The deadlines for obtaining financing may be extended with the approval of the administrator of the restructuring program.
- The company is obliged to ensure that the EUR 15 million convertible bond of the company is converted into shares of the company at least for the claim of approximately EUR 10 million of Lehto Invest Oy by 31 December 2024.
- The payments under the payment schedule of the restructuring program will be financed partly by the realisation of the company’s assets and by future payments on the company’s claims. The company is therefore obliged to sell most of its assets within the timeframe set out in the restructuring program at an arm’s length price and to collect the claims identified in the restructuring program.
- The company’s liabilities under the restructuring program have been structured in such a way that the company will be able to meet the payments and interest due under the payment schedule with the proceeds from the realisation of the company’s assets and the cash flow from the company’s Energy Construction Business.
- The duration of the payment schedule is approximately 5 years. The last payments under the payment schedule are due on 31 December 2029 for the non-preferential restructuring liabilities and on 30 November 2027 for the secured liabilities.
- The total amount of the secured liabilities under the restructuring program is EUR 3.5 million. The secured liabilities are to be paid upon realization of the collateral assets up to the amount of the net realisation value of the collateral assets, but not exceeding the amount of the secured liabilities. The secured liabilities shall bear annual interest at the rate of 6-month Euribor plus a margin of 2.5%. The interest rate shall always be at least 3.5%.
- The total amount of the non-preferential restructuring liabilities, whose amount and basis is clear, is EUR 19.2 million, including, inter alia, the company’s convertible bond. The amount of the non-preferential restructuring liabilities will be reduced by 90% of the amount of the claims. The company will be obliged to make additional payments on the non-preferential restructuring liabilities if the conditions set out in the restructuring program are met, inter alia in case of better-than-expected asset sales and collection of claims.
- Payments on restructuring liabilities whose basis is conditional or amount is capped, shall be deposited in an escrow account and the funds in the escrow account shall be paid on the liabilities in the same way as for non-preferential restructuring liabilities, once a reliable explanation of the basis and amount of the liabilities has been obtained. The payment schedule contributions to the escrow account shall be 75% of the maximum amount of the unclear liabilities remaining after the debt reduction. The total amount of such restructuring liabilities is approximately EUR 41.9 million. The amount of disputed restructuring liabilities is EUR 4.6 million.
- The administrator has decided to authorise the company to settle all small creditors with claims up to EUR 1 000. According to the administrator’s information, the company has paid all known small debts. The company is obliged to pay any outstanding small debts that meet the above definition within 30 days of the creditor’s claim.
- The restructuring liabilities of a creditor with a lower ranking (Section 2 of the Act on the Ranking of Claims) will be reduced in full, i.e. obligation to pay such liabilities will be abolished in full as a result of the adoption of the restructuring program.
- Early termination of the restructuring program is possible at the earliest on 1 July 2025. Early termination is conditional on the company paying in full the secured liabilities and their interest, the payment schedule contributions and additional payments on the non-preferential restructuring liabilities in full and the additional payment resulting from the early termination.
Balance sheet and financial position
| Balance sheet, EUR million | 30.6.2024 | 30.6.2023 | 31.12.2023 | |
| Non-current assets | 7,8 | 24,7 | 11,9 | |
| Current assets | ||||
| Inventories, excluding IFRS 16 assets | 1,3 | 62,1 | 17,4 | |
| Inventories, IFRS 16 assets | 0,0 | 59,7 | 56,2 | |
| Current receivables | 0,6 | 33,4 | 12,1 | |
| Cash and cash equivalents | 0,7 | 9,0 | 6,1 | |
| Assets total | 10,4 | 188,9 | 103,7 | |
| Equity | -18,2 | 45,6 | -12,4 | |
| Financial liabilities | 15,8 | 28,1 | 20,6 | |
| Lease liabilities | 0,3 | 63,1 | 59,1 | |
| Liabilities to customers for constructing contracts (advances received) | 0,0 | 7,3 | 1,7 | |
| Other paybles | 12,5 | 44,8 | 34,7 | |
| Equity and liabilities total | 10,4 | 188,9 | 103,7 | |
The non-current assets include EUR 5,4 million tangible assets mostly consisting of Lehto Components Oy's factory building in Oulainen and the machines and furniture of the factories in Oulainen and Hartola. Non-current assets also include in total EUR 2.5 million shares and holdings in real estate limited companies and in one project company.
Inventories include Lehto Components Oy's materials and finished products.
The equity of the group and the parent company is negative. Making the equity positive requires, among other things, converting the convertible bond into shares, new equity investments and cutting the company's restructuring debts.
Financial liabilities amounted to EUR 15.8 million and they include EUR 3,5 million revolving credit facility (RCF) and EUR 12.3 million share of EUR 15.0 million convertible bond. EUR 2.7 million of convertible bond has been booked on equity.
The liabilities on the balance sheet include restructuring debts, which have been proposed to be cut in the company's restructuring program proposal. The amount of debts in the balance sheet will be recorded in accordance with the confirmed restructuring program only after the restructuring program has been confirmed.
The company's board is authorized by the annual general meeting to issue approximately 114 million new shares, which corresponds to approximately 131% of the company's current number of shares (87,339,410 shares). Of the authorization, approximately 39 million shares can be used for share issues or for granting option rights or other special rights entitling to shares, and 75 million shares for converting the company's EUR 15 million convertible bond into shares.
Energy construction business
At the end of May, Lehto announced that it would focus its business on energy solutions for buildings and electricity storage.
Real estate energy solutions
Lehto has long experience in the development, planning, construction and maintenance of real estate projects. Together with its partners, Lehto has implemented various electricity and heat energy solutions for buildings and has found that the growth of electricity production based on renewable energy sources and the growth of self-sufficient energy production solutions for real estate have created needs and opportunities for more efficient use of energy in real estate.
Lehto aims to develop and implement solutions that achieve energy savings and improve the balance between energy production and energy use in real estate. The solutions consist of a combination of geothermal heating, solar energy and the use of batteries.
Lehto believes that more efficient use of energy will increase the value of real estate and open new financing solutions for real estate owners.
Electricity storages
The strong growth of weather-dependent wind and solar power is causing an imbalance between electricity production and consumption, creating a need for temporary storage of electricity.
Energy storages allow electricity to be charged and discharged quickly and are ideal for short term storage of electricity. When electricity production is high, energy is charged to the electricity storages and when production is low, energy is drawn from such storages. Control reserves are nowadays already connected to the electricity grids in order to anticipate changes in frequency, production and consumption of electricity. However, the need for reserves is growing rapidly as a result of the growth of renewable energy sources.
Lehto plans to implement electricity storage systems to serve the aforementioned needs of the electricity market. Lehto's experience in real estate project development, implementation of construction projects, related planning, production, procurement and handling regulatory permits, as well as established partnerships, provide a solid foundation for the implementation of projects.
In the reserve market, Lehto's objective is to serve electricity network companies, electricity producers and electricity retailers.
Launch of the Energy Construction Business
The launch of the Energy Construction Business will require, among other things, the approval of Lehto's restructuring programme, new partnerships and key personnel, and the securing of financing. The initial financing of the business will consist of Lehto's existing cash resources, proceeds from the sale and/or lease of the parent company's assets and factory operations, and new equity and debt financing, which Lehto is currently negotiating. In addition, Lehto is in talks with convertible bond holders on a model where the existing EUR 15 million convertible bond will be converted into equity by halving the share subscription price in accordance with the terms of the convertible bond.
Lehto aims to implement the first battery solutions to be installed in buildings in 2024. The pilot sites have already been identified and related planning has started. The energy storages would be either owned or leased.
Outlook for 2024
Lehto's business is in a state of discontinuity, as the company has given up the construction business and is negotiating the sale of its factories and is starting a new business.
In this situation, Lehto cannot present a justified assessment of the company's financial development.
Risks and uncertainties
The most important risks concerning the year 2024 are described below.
Risks related to the confirmation of Lehto Group Plc's restructuring program
It is possible that the restructuring program will not be confirmed or its confirmation will be significantly delayed. If the restructuring program is not confirmed, the company does not have the conditions to continue doing business, because confirming the restructuring program is a prerequisite for obtaining the necessary new financing.
Risks related to starting Energy Construction Business
Starting a business requires, among other things, technical assessment and planning, building procurement channels, finding suitable energy project sites, operational implementation of projects, obtaining financing, finding the suitable partners and building of cooperation models. Failure to implement these can lead to delays in the start-up of business and a further deterioration of the liquidity.
It is possible that the company will not be able to arrange the financing needed for the new business.
Risks related to sale of factory operations
It is possible that factory operations cannot be sold or factory premises and equipment cannot be rented. In such a situation, the company would be left with expense burdens related to the maintenance of the factories and the company would possibly not be able to cope with its payments.
Resolutions of the Annual General Meeting
The Annual General Meeting (AGM) held on June 19, 2024 decided, in accordance with the board's proposal, that no dividend will be paid based on the balance sheet approved for the fiscal year January 1-December 31, 2023.
The number of company board members was decided to be four. In accordance with the proposal of the shareholders' nomination committee, Hannu Lehto and Jani Nokkanen were re-elected as board members and Tarja Teppo and Timo Okkonen as new members. The term of the board members will expire at the end of 2025 annual general meeting.
The AGM decided to change the scope of the articles of association so that it includes energy services, energy storage and distribution, energy saving services and ownership and sale of energy production equipment.
The AGM authorized the board of directors to decide on the issue of shares and the granting of stock options and other special rights entitling to shares, so that the board has the authority to decide on the issuance of a total of approximately 114 million new shares, which corresponds to approximately 131% of the company's current number of shares (87,339,410 shares). Of the authorization, approximately 39 million shares can be used for share issues or for granting option rights or other special rights entitling to shares, and 75 million shares for converting the company's EUR 15 million convertible bond into shares.
The above-mentioned and other decisions of the annual general meeting have been detailed in the stock exchange bulletin published on June 19, 2024.
Events after the review period
After the end of the review period, there have been no events that could have a significant impact on the company's financial position in 2024.
Vantaa, 31 July 2024
Lehto Group Plc
Board of Directors
Additional information:
Hannu Lehto, CEO Veli-Pekka Paloranta, CFO
+358 500 280 448 +358 400 944 074
[email protected] [email protected]
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 | 1-6 / | 1-6 / | 1-12 / |
| EUR million | 2024 | 2023 | 2023 |
| Net sales | 4.7 | 114.6 | 171.8 |
| Other operating income | 0.8 | 2.3 | 3.0 |
| Changes in inventories | -2.2 | -36.1 | -78.1 |
| Material and services | -0.5 | -74.8 | -116.3 |
| Employee benefit expenses | -2.9 | -14.6 | -24.0 |
| Depreciation and amortisation | -1.1 | -2.2 | -11.8 |
| Other operating expenses | -2.8 | -7.5 | -17.4 |
| Operating result | -4.0 | -18.2 | -72.8 |
| Financial income | 0.0 | 0.0 | 0.1 |
| Financial expenses | -1.7 | -2.6 | -6.1 |
| Result before taxes | -5.7 | -20.8 | -78.8 |
| Income taxes | 0.0 | -0.1 | -0.1 |
| Result from continuing operations | -5.7 | -20.9 | -79.0 |
| Result from discontinued operations | 0.0 | 0.0 | -0.1 |
| Result for the period | -5.7 | -21.0 | -79.0 |
| Result attributable to | |||
| Equity holders of the parent company | -5.7 | -21.0 | -79.0 |
| Non-controlling interest | 0.0 | 0.0 | 0.0 |
| -5.7 | -21.0 | -79.0 | |
| Components of other comprehensive income | |||
| Items that may be reclassified subsequently to profit or loss | |||
| Translation difference | -0.1 | 0.0 | 0.1 |
| -0.1 | 0.0 | 0.1 | |
| Comprehensive result, total | -5.8 | -20.9 | -78.9 |
| Comprehensive result attributable to | |||
| Equity holders of the parent company | -5.8 | -20.9 | -78.9 |
| Non-controlling interest | 0.0 | 0.0 | 0.0 |
| -5.8 | -20.9 | -78.9 | |
| Earnings per share calculated from the result attributable to shareholders of the parent company, EUR per share | |||
| Average number of (issue-adjusted) outstanding shares during the period, basic | 87,135,986 | 87,307,886 | 87,257,649 |
| Average number of (issue-adjusted) outstanding shares during the period, diluted | 87,147,129 | 87,406,903 | 87,332,931 |
| Earnings per share from continuing operations, basic | -0.07 | -0.24 | -0.90 |
| Earnings per share from continuing operations, diluted | -0.07 | -0.24 | -0.90 |
| Earnings per share from discontinued operations, basic | 0.00 | 0.00 | 0.00 |
| Earnings per share from discontinued operations, diluted | 0.00 | 0.00 | 0.00 |
| Earnings per share, basic | -0.07 | -0.24 | -0.91 |
| Earnings per share, diluted | -0.07 | -0.24 | -0.91 |
|
CONSOLIDATED BALANCE SHEET |
|||
| EUR million | 2024/6/30 | 2023/6/30 | 2023/12/31 |
| Assets | |||
| Non-current assets | |||
| Goodwill | 0.0 | 4.6 | 0.0 |
| Other intangible assets | 0.0 | 1.1 | 0.4 |
| Property, plant and equipment | 5.4 | 10.7 | 6.6 |
| Investment properties | 0.7 | 0.7 | 0.7 |
| Investments and receivables | 1.8 | 7.6 | 4.2 |
| Deferred tax assets | 0.0 | 0.0 | 0.0 |
| Non-current assets total | 7.8 | 24.7 | 11.9 |
| Current assets | |||
| Inventories | 1.3 | 121.8 | 73.6 |
| Trade and other receivables | 0.6 | 33.4 | 12.1 |
| Cash and cash equivalents | 0.7 | 9.0 | 6.1 |
| Current assets total | 2.6 | 164.2 | 91.8 |
| Assets, total | 10.4 | 188.9 | 103.7 |
| Equity and liabilities | |||
| Equity | |||
| Share capital | 0.1 | 0.1 | 0.1 |
| Invested non-restricted equity reserve | 88.7 | 88.7 | 88.7 |
| Translation difference | -0.2 | -0.2 | -0.1 |
| Retained earnings | -101.1 | -22.0 | -22.0 |
| Result for the financial period | -5.7 | -21.0 | -79.0 |
| Equity attributable to shareholders of the parent company | -18.2 | 45.6 | -12.4 |
| Non-controlling interest | 0.0 | 0.0 | 0.0 |
| Equity total | -18.2 | 45.6 | -12.4 |
| Non-current liabilities | |||
| Deferred tax liabilities | 0.0 | 0.0 | 0.0 |
| Non-current provisions | 0.0 | 7.1 | 7.7 |
| Financial liabilities | 0.0 | 11.8 | 0.0 |
| Lease liabilities | 0.1 | 58.3 | 53.6 |
| Other non-current liabilities | 0.1 | 0.1 | 0.1 |
| Non-current liabilities total | 0.2 | 77.4 | 61.4 |
| Current liabilities | |||
| Current provisions | 0.4 | 6.5 | 2.9 |
| Financial liabilities | 15.8 | 16.3 | 20.6 |
| Lease liabilities | 0.2 | 4.8 | 5.5 |
| Liabilities to customers for constructing contracts (advances received) | 0.0 | 7.3 | 1.7 |
| Trade and other payables | 12.0 | 31.1 | 23.9 |
| Current liabilities total | 28.4 | 66.0 | 54.7 |
| Liabilities total | 28.5 | 143.3 | 116.1 |
| Equity and liabilities, total | 10.4 | 188.9 | 103.7 |
|
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 | Total | Non-controlling interest | Equity, total | |
| Equity at 1 January 2023 | 0.1 | 88.7 | -0.2 | -22.0 | 66.6 | 0.0 | 66.6 |
| Comprehensive income | |||||||
| Result for the financial period | 0.0 | -21.0 | -20.9 | 0.0 | -20.9 | ||
| Total comprehensive income | 0.0 | -21.0 | -20.9 | 0.0 | -20.9 | ||
| Transactions with equity holders | |||||||
| Share-based compensation | 0.0 | 0.0 | 0.0 | ||||
| Repurchasing own shares | 0.0 | 0.0 | 0.0 | ||||
| Transactions with equity holders, total | 0.0 | 0.0 | 0.0 | ||||
| Equity at 30 June 2023 | 0.1 | 88.7 | -0.2 | -43.0 | 45.6 | 0.0 | 45.6 |
| Equity at 1 January 2024 | 0.1 | 88.7 | -0.1 | -101.1 | -12.4 | 0.0 | -12.4 |
| Comprehensive income | |||||||
| Result for the financial period | -0.1 | -5.7 | -5.8 | 0.0 | -5.8 | ||
| Total comprehensive income | -0.1 | -5.7 | -5.8 | 0.0 | -5.8 | ||
| Equity at 30 June 2024 | 0.1 | 88.7 | -0.2 | -106.7 | -18.2 | 0.0 | -18.2 |
|
CONSOLIDATED CASH FLOW STATEMENT |
1-6 / | 1-6 / | 1-12 / |
| EUR million | 2024 | 2023 | 2023 |
| Cash flow from operating activities | |||
| Result for the financial period | -5.7 | -21.0 | -79.0 |
| Adjustments: | |||
| Non-cash items | 0.0 | 0.1 | -2.9 |
| Depreciation and amortisation | 1.1 | 2.2 | 11.8 |
| Financial income and expenses | 1.6 | 2.6 | 5.9 |
| Capital gains and losses | -0.6 | -0.9 | -0.4 |
| Income taxes | 0.0 | 0.1 | 0.1 |
| Changes in working capital: | |||
| Change in trade and other receivables | -3.1 | 16.8 | 42.2 |
| Change in inventories | 1.7 | 38.3 | 83.6 |
| Change in trade and other payables | 0.7 | -40.0 | -57.5 |
| Interest paid and other financial expenses | -0.6 | -3.4 | -6.7 |
| Financial income received | 0.0 | 0.0 | 0.1 |
| Income taxes paid | 0.0 | -0.1 | -0.1 |
| Net cash from operating activities | -5.0 | -5.4 | -2.9 |
| Cash flow from investments | |||
| Investment in property, plant and equipment | 0.0 | -0.1 | 0.0 |
| Investment in other intangible assets | 0.0 | 0.0 | 0.0 |
| Proceeds from sale of tangible and intangible assets | 0.0 | 5.1 | 4.8 |
| Financial assets at fair value through profit or loss | 0.0 | 0.0 | 0.0 |
| Acquisition of associated companies | -0.8 | ||
| Repayments of loan receivables | 0.0 | 0.0 | 0.0 |
| Net cash from investments | 0.0 | 5.0 | 4.0 |
| Cash flow from financing | |||
| Loans drawn | 0.0 | 0.0 | 3.4 |
| Loans repaid | -0.3 | -3.0 | -10.2 |
| Lease liabilities paid | -0.2 | -0.8 | -1.4 |
| Costs related to repurchasing own shares | 0.0 | 0.0 | 0.0 |
| Net cash used in financing activities | -0.5 | -3.9 | -8.2 |
| Change in cash and cash equivalents (+/-) | -5.4 | -4.2 | -7.1 |
| Cash and cash equivalents at the beginning of the year | 6.1 | 13.2 | 13.2 |
| Effects of exchange rate change | 0.0 | 0.0 | 0.0 |
| Cash and cash equivalents at the end of the period | 0.7 | 9.0 | 6.1 |
|
KEY FIGURES |
1-6 / | 1-6 / | 1-12 / | |
| 2024 | 2023 | 2023 | ||
| Net sales, EUR million | 4.7 | 114.6 | 171.8 | |
| Net sales, change % | -95.9% | -30.1% | -50.2% | |
| Operating result, EUR million | -4.0 | -18.2 | -72.8 | |
| Operating result, as % of net sales | -85.0% | -15.9% | -42.4% | |
| Result for the period, EUR million | -5.7 | -21.0 | -79.0 | |
| Result for the period, as % of net sales | -120.1% | -18.3% | -46.0% | |
| Equity ratio, % | -174.7% | 25.1% | -12.1% | |
| Net gearing ratio, % | -84.4% | 180.4% | -594.5% | |
| Personnel at the end of period | 99 | 503 | 384 | |
| Gross expenditure on assets, EUR million | 0.0 | 0.1 | 0.1 | |
| Equity / share, EUR | -0.21 | 0.52 | -0.14 | |
| Earnings per share, basic | -0.07 | -0.24 | -0.91 | |
| Earnings per share, diluted | -0.07 | -0.24 | -0.91 | |
| Average number of (issue-adjusted) outstanding shares during the period, basic | 87,135,986 | 87,307,886 | 87,257,649 | |
| Average number of (issue-adjusted) outstanding shares during the period, diluted | 87,147,129 | 87,406,903 | 87,332,931 | |
| Number of (issue-adjusted) outstanding shares at the end of the period | 87,135,986 | 87,305,069 | 87,135,986 | |
| Market value of share at the end of period, EUR million | 2.8 | 18.2 | 1.6 | |
| Share prices, EUR | ||||
| Highest price, EUR | 0.06 | 0.33 | 0.33 | |
| Lowest price, EUR | 0.02 | 0.17 | 0.01 | |
| Average price, EUR | 0.03 | 0.24 | 0.09 | |
| Price at the end of period, EUR | 0.03 | 0.21 | 0.02 | |
| 1) Trading in Lehto Group Plc shares has been suspended on Nasdaq Helsinki since 6 February 2024 | ||||
|
LIABILITIES AND GUARANTEES |
|||
| EUR million | 2024/6/30 | 2023/6/30 | 2023/12/31 |
| Loans covered by pledges on assets | |||
| Loans from financial institutions | 3.4 | 10.0 | 3.4 |
| Debts on shares in unsold housing and real estate company shares | 0.0 | 6.3 | 2.2 |
| Total | 3.4 | 16.3 | 5.7 |
| Guarantees | |||
| Company mortgages | 33.8 | 135.2 | 135.2 |
| Real-estate mortgages | 35.2 | 108.8 | 102.8 |
| Pledges | 0.0 | 13.0 | 3.7 |
| Total | 69.0 | 256.9 | 241.7 |
| Contract guarantees | |||
| Counter guarantees given on behalf of bankruptcy companies | 30.9 | ||
| Production guarantees | 0.0 | 14.4 | 3.0 |
| Warranty guarantees | 0.0 | 15.2 | 13.7 |
| RS guarantees | 0.0 | 14.5 | 14.0 |
| Payment guarantees | 0.0 | 2.4 | 0.0 |
| Rent guarantees | 0.1 | 0.1 | 0.1 |
| Total | 31.0 | 46.6 | 30.8 |
| REVENUE ANALYSIS | |||
| EUR million | 1-6/2024 | 1-6/2023 | 1-12/2023 |
| Revenue recognised over time | 1.8 | 76.4 | 112.4 |
| Revenue recognised upon delivery | 2.9 | 38.1 | 59.2 |
| Rental income | 0.0 | 0.1 | 0.3 |
| Total | 4.7 | 114.6 | 171.8 |
RELATED PARTIES
The Group’s related parties include Group companies, members of the Board of Director and the Group’s top management as well as entities on which related parties, or their family members, have influence through ownership or management. Related parties also include associated companies and joint ventures. There has been no transactions with associates.
| Transactions with related parties | ||||||
| Sales | Sales | Purchases | Purchases | Sales | Purchases | |
| EUR million | 1-6/2024 | 1-6/2023 | 1-6/2024 | 1-6/2023 | 1-12/2023 | 1-12/2023 |
| Key personnel and their controlled entities | 0.0 | 0.3 | 0.2 | 2.4 | 0.4 | 3.7 |
| Total | 0.0 | 0.3 | 0.2 | 2.4 | 0.4 | 3.7 |
| Receivables | Receivables | Liabilities | Liabilities | Receivables | Liabilities | |
| EUR million | 2024/6/30 | 2023/6/30 | 2024/6/30 | 2023/6/30 | 2023/12/31 | 2023/12/31 |
| Key personnel and their controlled entities | 0.0 | 1.0 | 0.0 | 0.2 | 0.6 | 0.3 |
| Total | 0.0 | 1.0 | 0.0 | 0.2 | 0.6 | 0.3 |