KH Group Plc’s Financial Statements Release for 1 January – 31 December: 2023 Profitability retained in a challenging market
21 March 2024 - 5:00PM
UK Regulatory
KH Group Plc’s Financial Statements Release for 1 January – 31
December: 2023 Profitability retained in a challenging market
KH Group Plc
Stock Exchange Release 21.3.2024 klo 8.00
KH Group Plc’s Financial Statements Release for 1
January – 31 December 2023
Profitability retained in a challenging
market
This is the summary of the Financial Statements Release for
2023. The full Financial Statements Release is attached to this
release and is also available on the company’s website at
www.khgroup.com
KH Group, October–December 2023 pro
forma
- Net sales amounted to EUR 105.3
(114.3) million.
- Operating profit was EUR 4.7 (3.6)
million.
- KH-Koneet’s net sales decreased
significantly year-on-year due to the weakened general market
situation. Profitability was supported by operational efficiency
improvement and the machinery leasing business.
- Indoor Group’s net sales were
nearly on a par with the corresponding period last year, and
profitability improved when compared to the early part of the
year.
- The Group's cash and cash
equivalents amounted to EUR 11.1 million at the end of the review
period
- Indoor Group and Nordic Rescue
Group received follow-on investments to strengthen their financial
position
- Indoor Group, KH-Koneet and HTJ agreed
on changes to financing agreements after the end of the reporting
period
KH Group, January–December 2023 pro
forma
- Net sales amounted to EUR 403.3
(428.9) million.
- Operating profit was EUR 11.7
(11.9) million.
KH Group, January–December 2023
IFRS
- Net sales amounted to EUR 270.6 (-)
million. The figure includes net sales accumulated during the
period 1 May–31 December 2023.
- Operating profit was EUR -14.4 (-10.1)
million.
- Net profit for the period was EUR
-14.4 (-8.2) million.
- Earnings per share (undiluted and
diluted) were EUR -0.18 (0.14).
- Equity per share at the end of the
review period was EUR 1.36 (1.47).
- Return on equity for rolling 12 months
was -17.5% (-9.2%).
- Gearing at the end of the review
period was 195.4% (9.2%).
- Gearing excluding lease liabilities
was 116.7% (9.0%).
Proposal for the distribution of profit
The Board of Directors proposes to the Annual
General Meeting that no dividend be distributed for the past
financial period. The profit distribution proposal of the Board of
Directors takes into account the company’s liquidity situation at
the time of making the profit distribution proposal, expected cash
flows during the new year and the investments required by the
change in strategy.
CEO Lauri Veijalainen:
”First measure related to the change in strategy was the
divestment of Logistikas in June 2023.
During the reporting period of October–December 2023, KH Group’s
pro forma net sales decreased year-on-year, while pro forma
operating profit increased. The decrease in net sales was due to
the significant slowing of the market for KH-Koneet's machinery
dealership business. The demand for machinery rental has remained
good, which contributed to profitability being higher than in the
comparison period. Indoor Group’s sales were on par with the
previous year and operating profit improved despite the fact that
the furniture market is still struggling with cautious consumer
demand. HTJ’s development was hampered by the weakened business
cycle in the construction sector, which slowed the growth of net
sales and reduced profitability when compared to the reference
period. HTJ’s operations were supported by stable demand in the
public sector, a good project portfolio and the acquisitions made
during the two preceding years. Nordic Rescue Group’s net sales and
operating profit improved significantly year-on-year. Nordic Rescue
Group’s business is now on a much healthier foundation after it
exited the loss-making rescue lift business in late 2022.
In 2024, we will continue our development
efforts across our business areas, all of which are focused on
operational efficiency, profitability and strengthening the balance
sheet. At the same time, we will continue to move forward with KH
Group’s change in strategy as planned.”
Events after the review
period
After the review period, Indoor Group, KH-Koneet
and HTJ agreed with their financing provider on changes to
financing agreements. Of the loans from financial institutions
presented under current liabilities on the financial statements
date, a share of EUR 11.4 million was changed to be amortised after
2024, and the covenant terms were updated, taking into account the
present financial situation and future outlook.
Future outlook
KH Group’s medium-term objective is to become an industrial
group built around the KH-Koneet business and to divest other
business areas in line with previous strategy. At the same time,
active developments will continue regarding other business areas.
Exit planning and the assessment of exit opportunities for the
other business areas will also continue.
KH Group estimates, with the current Group structure, to reach
net sales of EUR 400-420 million and operating profit of EUR 14-16
million.
Results presentation webcast
KH Group will organise a result briefing in Finnish for
analysts, investors and the media on 21 March 2023 at 1:00 pm at
the Company’s Head Office (Kuninkaalantie 19, 01300 Vantaa). You
can follow the live webcast at
https://khgroup.videosync.fi/q4-2023. The presentation material and
the recording of the webcast will be available later on the same
day on KH Group’s website
KH GROUP PLC
Lauri Veijalainen
CEO
FURTHER INFORMATION:
CEO Lauri Veijalainen, +358 46 876 1648
DISTRIBUTION:
Nasdaq Helsinki Ltd
Main media
www.khgroup.com
Sievi Capital is now a conglomerate with a new
name KH Group. Our four business areas are leading players in their
sectors in B2B products and services and consumer trade. The
objective of our strategy change is to focus on the business of the
earth-moving machinery supplier KH-Koneet. KH Group’s share is
listed on Nasdaq Helsinki.
- KH Group Plc - Financial Statements Release Q4_2023
Kh Group Oyj (LSE:0NQK)
Historical Stock Chart
From May 2024 to Jun 2024
Kh Group Oyj (LSE:0NQK)
Historical Stock Chart
From Jun 2023 to Jun 2024