30.3.2022 10:50:46 EEST | HLRE Holding Oyj |
Quarterly report
HLRE Holding Group
Bulletin for Q4 and full year 1 February 2021 – 31 January 2022
Comparison figures in brackets refer to the corresponding period previous year.
Brief Look at November 2021 – January 2022
Q4 revenue increased by 8% to EUR 27,2 EUR million (EUR 25,2 Million).
Q4 gross profit increased by 9% to EUR 12,1 million (EUR 11,1 Million).
Q4 adjusted EBITDA was EUR 1,6 million (EUR 1,8 million).
Q4 net cash from operating activities decreased to EUR -3,8 million (EUR 0,4 Million).
Brief Look at February 2021 – January 2022
Q1-Q4 revenue increased by 21 % to EUR 130,4 million (107,3 million).
Gross profit increased by almost 20 % to EUR 55,3 million (46,2 million).
Adjusted EBITDA increased by 20 % to EUR 13,8 million (11,4 million).
Net cash from operating activities was positive at EUR 7,3 million (7,4 million).
Key Figures
EUR Million
Nov 21 – Jan 22Q4
Nov 20 – Jan 21Q4
Feb 21 – Jan 22Q1-Q4
Feb 20 – Jan 21Q1-Q4
Revenue
27,2
25,2
130,4
107,3
Gross profit
12,1
11,1
55,3
46,2
Gross margin,%
44,5 %
44,2 %
42,4 %
43,1 %
Adjusted EBITDA
1,6
1,8
13,8
11,4
EBIT
-0,35
-0,05
4,4
2,6
Net cash from operating activities
-3,8
0,4
7,3
7,4
Company description
HLRE Holding Group (commonly known as Vesivek Group) is a leading provider of roof and roof product renovations offered primarily to detached and row houses in Finland and Sweden under the brand name Vesivek. In addition to roof and roof product installations, Vesivek provides underground drain renovations in five locations in Finland. The Group also develops, manufactures, and sells high quality rainwater systems and roof safety products under the brand name Nesco.
HLRE Holding Group operates currently in 17 locations in Finland and three locations in Sweden and employs more than 850 employees in average. The Group has two in-house manufacturing facilities in Finland, steel roofing profile production in Pirkkala and manufacture of rainwater systems and roof safety products in Orimattila.
Q4 Revenue, Result and Cash Flow
Harsh winter had impact on Group´s business performance in Q4. Also, Covid-19 hit renovation operations both in Sweden and Finland with relatively high proportion on employees´ covid infections in December-January. Stock levels increased in Q4 by approximately EUR 2 million. Together with higher net finance cash expenses in Q4 compared to Q4 last year had negative effect on Q4 operating net cash.
Q1-Q4 Revenue, Result and Cash Flow
Q1-Q4 revenue increased by 21% compared to previous annual financial period due to acquisition of Salaojakympit Oy in February 2021 (name changed to Vesivek Salaojat Oy in February 2021), capacity increase in Sweden and sales price increases in all sales segments.
Vesivek Salaojat Oy opened two (2) new locations (Seinäjoki and Kerava) and closed Kokkola unit during the 2021. Vesivek Oy´s Oulu unit opened in 2021 a joint office in Tornio focusing on roof renovations to Northern Sweden up to Kalix area. Vesivek Oy also closed Kokkola unit in 2021.
Q1-Q4 net cash from operating activities was 7,3 M€ (7,4 M€). Working capital changes due to relatively significant increase of raw material prices during the year, such as steel and wood, and at the same time Group ensuring material sufficiency in all normal circumstances, had together negative impact on financial period´s net operating cash flow.
Outlook for the financial year 1 February 2022 – 31 January 2023
No outlook for the financial year 1 February 2022 – 31 January 2023.
Bond issue
In February 2021 HLRE Holding Oyj (formerly HLRE Holding Oy) issued a three-year senior secured bond in an amount of SEK 300 million (approximately EUR 30 million) which was used to refinance the previous senior bank debt and purchase of leased assets, as well as to finance the add-on acquisition of Vesivek Salaojat Oy, and general corporate purposes. The bullet bond matures on 12 February 2024 and carries interest at the rate of STIBOR 3 months plus a margin of 6,60 per cent per annum.
The bond terms and conditions include a possibility of subsequent bond issue at one or several occasions in maximum amount of SEK 100 million (approximately EUR 10 million) provided that the Group’s leverage ratio is at a specified level.
The bond has been listed on the Open Market segment of the Frankfurt Stock Exchange since February 2021. On 8 February 2022 the bond was admitted to trading on the corporate bond segment of Nasdaq Stockholm with name HLRE Sen Sec FR SEK Bond 2024 and ISIN code SE0015530712
Annual General Meeting 2021 and dividend proposal
The Board of Directors proposed to the Annual General Meeting no dividend payments from the annual period ended 31 January 2021.The Annual General Meeting decided on 14 April 2021 according to the proposal of the Board of Directors no dividend payments from the annual period ended 31 January 2021.
The Board of Directors proposed to the Annual General Meeting that legal form of Company is changed to public limited company. The Annual General Meeting decided on 14 April 2021 according to the proposal of the Board of Directors to change Company as public limited company and business name HLRE Holding Oyj.
The Board of Directors proposed to the Annual General Meeting to increase Company´s share capital from EUR 2,5 thousands to EUR 80 thousands by fund raise from the reserve for invested non-restricted equity. The Annual General Meeting decided on 14 April 2021 according to the proposal of the Board of Directors to increase Company´s share capital from EUR 2,5 thousands to EUR 80 thousands by fund raise from the reserve for invested non-restricted equity.
Annual report 2022
The annual financial report 2022 will be released and available to the public on a week 20.
Risks and uncertainties
The Group’s revenues and operating profit are affected by general economic conditions, which are, in turn, influenced by many factors beyond the Group’s control. The Group currently operates in Finland and Sweden. Currently, the majority of the Group’s operations are located in Finland but growth in both markets, for example, by way of increasing market share and/or expanding the Group’s product and service offering is an important factor in fulfilling the Group’s strategic objectives. Respectively, the Group’s revenue and operating profit are particularly susceptible to general economic conditions and perception of future general economic conditions in the Finnish and Swedish markets.
Uncertainty or adverse trends in general economic conditions could affect the Group’s business and demand for the Group’s products and services through, inter alia, affecting consumer confidence as well as through adverse impacts on the business activities of the Group’s corporate clients purchasing the Group’s rainwater systems and roof safety products. Importantly, the general economic conditions may adversely affect the level and cost of financing available to the Group’s consumer and corporate clients to make investments in renovations and refurbishments. Moreover, increases in the costs of financing and decreases in the level of available financing may adversely affect the Group’s ability to make investments and fulfil its strategic objectives and may have a material adverse effect on the Group’s business, financial position and results. Through its manufacturing operations, the Group is furthermore exposed to the risk of fluctuations in certain commodity prices (such as steel, aluminium and wood) and energy prices (especially through fuel costs for vehicles) and increases in prices due to economic disruptions and changes in general market conditions may have an adverse effect on the Group’s business, financial position and results. All of the factors mentioned above could harm the Group’s operations and the Group cannot predict the ways in which the future economic environment and market conditions may affect the Group’s operations.
In general, the frequency of accidents at construction sites is worth noticing and the Group operates in a business segment subject to extensive laws and regulations regarding the work environment. Despite required health and safety measures and, for example, the use of scaffoldings on its construction sites improving the safety of the personnel, the Group is exposed to the risk of, possibly even fatal, accidents at the workplace especially on its roof renovation sites but also at its manufacturing facilities. In addition to physical injuries, employees of the Group are exposed to risks related to hazardous substances as certain of the Groups renovation sites contain asbestos. Respectively, the Group must also comply with specific environmental regulations with respect to asbestos. Finnish legislation includes particularly stringent requirements for any activities involving asbestos and the safety requirements for such activities. Any failure to comply with the regulations concerning health and safety or asbestos related activities may result in liability for the Group and/or the Group’s permit being revoked. For example, if Group’s permit to handle asbestos would be revoked, the Group would need to stop all business activities relating to handling of asbestos and acquire the work through subcontractors. Moreover, all potential accidents and health impacts have an adverse effect on its personnel’s well-being. The Group as an employer is exposed to the risks related to health and safety issues of its employees possibly resulting in reduced working capacity of employees.
The Group may, in the future, become in breach of financial covenants and other obligations in its financing agreements that constitute grounds for termination or acceleration. A failure by the Group to obtain necessary capital in the future, or obtaining financing on less favourable terms, may have an adverse effect on the Group’s business, financial position and results.
For more information
Jari Raudanpää, CFO
+358 40 566 6399
jari.raudanpaa@vesivek.fi
Condensed financial statements for the financial year ended 31 January 2022
Consolidated statement of comprehensive income
1000 EUR
Nov 21 – Jan 22Q4
Feb 21 – Jan 22Q1-Q4
Feb 20 – Jan 21Q1-Q4
REVENUE
27 194
130 352
107 263
Other operating income
318
1 063
1 080
Materials and services
-8 583
-45 375
-36 755
Employee benefit expenses
-11 556
-50 257
-41 006
Depreciation, amortisation and impairments
-1 881
-7 855
-7 600
Other operating expenses
-5 841
-23 572
-20 573
OPERATING PROFIT
-349
4 356
2 408
Finance income
697
1 146
345
Finance costs
-978
-4 148
-2 436
Finance costs – net
-281
-3 003
-2 091
PROFIT/LOSS BEFORE TAX
-630
1 353
317
Income tax expense
-207
-663
-327
PROFIT/LOSS FOR THE PERIOD
-837
691
-10
Profit attributable to:
Owners of the parent company
-755
623
-53
Non-controlling interests
-82
68
43
-837
691
-10
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Exhance rate differences on translating foreign operations
-75
-54
45
TOTAL COMPREHENSIVE INCOME
-912
637
35
Total comprehensive income attributable to:
Owners of the parent company
-823
574
-12
Non-controlling interests
-89
63
47
-912
637
35
Consolidated balance sheet
1000 EUR
31 Jan 2022
31 Jan 2021
ASSETS
NON-CURRENT ASSETS
Goodwill
40 304
39 437
Intangible assets
657
787
Property, plant and equipment
27 188
26 632
Other non-current financial assets
48
48
Non-current loan receivables
7
9
Other non-current receivables
26
0
Deferred tax assets
169
50
NON-CURRENT ASSETS
68 400
66 963
CURRENT ASSETS
Inventories
15 464
11 105
Trade and other receivables
9 598
9 744
Loan receivables
63
375
Income tax receivables
198
0
Cash and cash equivalents
5 201
2 219
CURRENT ASSETS
30 524
23 443
ASSETS
98 923
90 406
EQUITY AND LIABILITIES
Owners of the parent company
Share capital
80
3
Reserve for invested unrestricted equity
18 002
18 079
Translation differences
-17
31
Retained earnings
9 935
9 309
Owners of the parent company
28 000
27 422
Non-controlling interests
-37
93
EQUITY
27 963
27 515
NON-CURRENT LIABILITIES
Borrowings and lease liabilities
51 197
21 445
Employee benefit obligation
422
389
Deferred tax liabilities
216
395
NON-CURRENT LIABILITIES
51 834
22 229
CURRENT LIABILITIES
Borrowings and lease liabilities
4 633
29 809
Trade and other payables
13 528
10 590
Derivatives
484
34
Income tax liabilities
482
229
CURRENT LIABILITIES
19 126
40 662
Liabilities
70 960
62 891
EQUITY AND LIABILITIES
98 923
90 406
Consolidated statement of changes in equity
1000 EUR
Share capital
Reserve for invested unrestricted equity
Translation differences
Accumulated earnings
Total
Non-controlling interests
Total equity
EQUITY 1 Feb 2021
3
18079
32
9310
27423
93
27515
Comprehensive income
Profit/loss for the period
623
623
68
691
Other comprehensive income:
Translation differences
-49
-49
-5
-54
TOTAL COMPREHENSIVE INCOME
-49
623
574
63
637
Transactions with owners
Acquisition of treasury shares
-28
-28
-28
Sale of treasury shares
102
102
102
Reclassifications
78
-78
Other changes
-62
-62
-15
-77
Total transactions with owners
78
-78
11
11
-15
-3
Changes in ownership interests in subsidiaries
Changes of non-controlling interests without change in control
-7
-7
1
-6
Changes with change in control
0
0
0
-180
-180
TOTAL EQUITY 31 Jan 2022
80
18002
-17
9937
28000
-37
27963
1000 EUR
Share capital
Reserve for invested unrestricted equity
Translation differences
Accumulated earnings
Total
Non-controlling interests
Total equity
EQUITY 1 Feb 2020
3
18079
-10
9333
27404
45
27449
Comprehensive income
Profit/loss for the period
-53
-53
43
-10
Other comprehensive income:
Translation differences
41
41
4
45
TOTAL COMPREHENSIVE INCOME
41
-53
-11
47
36
Transactions with owners
Sale of treasury shares
30
30
30
Total transactions with owners
3
18079
31
9310
27423
93
TOTAL EQUITY 31 Jan 2021
27515
Consolidated cash flow statement
1000 EUR
Feb 21 – Jan 22Q1-Q4
Feb 20 – Jan 21Q1-Q4
Cash flows from operating activities
PROFIT/LOSS FOR THE PERIOD
691
-10
Adjustments to the profit/loss for the period
Depreciation, amortisation and impairment
7 855
7 600
Financial income and expenses
3 003
2 091
Income tax expenses
663
327
Other adjustments
1 045
-194
Adjustments total
12 566
9 824
Working capital changes
Increase / decrease in inventories
-4 278
-918
Increase /decrease in trade and other receivables
1 137
-825
Increase / decrease in trade payables
759
1 111
Interest paid
-2 469
-1 706
Dividends received
Interest received
21
16
Other financial items
-432
-121
Income taxes paid
-661
-180
Net cash from operating activities
7 333
7 190
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets
-3 160
-1 592
Proceeds from sale of property, plant and equipment and intangible assets
326
91
Purchase of other financial assets
-201
-3
Loans granted to related parties
Loans granted
-27
-621
Proceeds from repayments of loans
300
56
Net cash used in investing activities
-2 762
-2 069
Cash flows from financing activities
Proceeds from share issue
Purchase of treasury shares
-28
Proceeds from sale of treasury shares
78
30
Repayment of current borrowings
-25 820
-2 050
Addition / deduction of current borrowings
8
3
Proceeds from non-current borrowings
29 045
Repayment of non-current borrowings
29
-2 596
Payment of lease liabilities
-4 900
-4 003
Net cash used in financing activities
-1 588
-8 616
Net change in cash and cash equivalents
2 982
-3 492
Cash and cash equivalents, opening amount
2 219
5 711
Net increase/decrease in cash and cash equivalents
2 982
-3 492
Effects of exchange rate fluctuations on cash held
Cash and cash equivalents
5 201
2 219
Notes to the condensed consolidated financial statements
Reporting entity
These condensed consolidated interim financial statements are the financial statements of a group of companies comprised of HLRE Holding Oyj (formerly HLRE Holding Oy), a Finnish public limited liability company operating under the laws of Finland with business ID 2611405-7 (hereinafter referred to as “HLRE Holding”, “the Company” or “the parent company”) and its subsidiaries, which are jointly referred to as “HLRE”, “HLRE Group” or “the Group”. The parent company of the Group is domiciled in Pirkkala, and its registered address is Jasperintie 273, FI-33960 Pirkkala, Finland.
HLRE Group (commonly known as Vesivek Group) is a leading provider of roof and roof product renovations offered primarily to detached and row houses in Finland and Sweden under the brand name Vesivek. In addition to roof and roof product installations, Vesivek provides underground drain renovations in five locations in Finland. The Group also develops, manufactures, and sells high quality rainwater systems and roof safety products under the brand name Nesco.
Basis of preparation
This condensed interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Group’s annual consolidated financial statements for the financial year ended 31 January 2021, which have been prepared in accordance with IFRS.
These condensed consolidated interim financial statements do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS and accordingly, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual financial statements The accounting policies applied are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the financial year ended 31 January 2021.
The consolidated financial statements are presented as thousands of euros, unless otherwise specified, and the numbers are rounded off to the nearest thousand. Because of this, the sum of individual figures can deviate from the reported total.
This condensed interim report has not been reviewed by the Company’s auditors.
Seasonality of operations
The Group operates in an industry that sees seasonal changes. In a typical year, the second and third quarter together amount major share of the Group’s full-year EBITDA.
Management has reacted to seasonal changes in customer volumes and demand for roof, roof product and underground drain renovations through workforce adjustment and temporary layoffs of installation personnel in some units in Finland.
Segment information and revenue
The Board of Directors of HLRE Holding is the Group’s chief operating decision maker, and operating segments have been specified based on the information reviewed by the Board of Directors in order to allocate resources and assess the profitability of business operations. The Board of Directors manages the HLRE Group as a single integrated business aggregate, and therefore HLRE has a single operating and reportable segment.
The revenue of the HLRE Holding Group is primarily generated by roofing, roof product and underground drain renovations for single-family homes and housing companies pursuant to the service concept developed by the Company, as well as project and direct sales of rainwater systems and roof safety products. The entire service chain – product development, manufacturing, sales and installation – is managed in-house by the Group.
The HLRE Holding Group is operating in Finland and Sweden. Small-scale out of total Q1-Q4 revenue was generated by direct sales of rainwater systems and roof safety products from Nesco in Finland to Baltic countries and Russia. The Swedish turnover was generated exclusively by roofing and roof product installations:
Breakdown of revenue by country
1000 EUR
Nov 21 – Jan 22Q4
Feb 21 – Jan 22Q1-Q4
Feb 20 – Jan 21Q1-Q4
Finland
22940
109672
90577
Sweden
4124
20055
16092
Baltic countries and Russia
130
625
594
Total
27194
130352
107263
Business Combinations
In February 2021, the Group acquired a 71.63% holding in Salaojakympit Oy in a related party transaction (see note 7). Salaojakympit Oy was renamed as Vesivek Salaojat Oy. Vesivek Salaojat Oy is a company engaged in installing underground drains in Finland.
The purchase price for the 71.63% share was EUR 406 thousand and fully paid in cash at the acquisition date. The fair value of the net assets acquired was negative EUR -461 thousand and HLRE Group recognised a goodwill of EUR 867 thousand, which was allocated to cash-generating unit Installation of roof and rainwater systems in Finland. Goodwill is considered to comprise of the acquired skilled employees, market position and synergies expected to arise after the acquisition.
The Group recognized a non-controlling interest of EUR-182,3 thousands at the proportionate share of the acquiree’s net identifiable assets.
Acquisition-related costs have been recognized as expenses in the consolidated statement of comprehensive income.
Financial liabilities
In February 2021, the Company rearranged its financing, and issued a secured three-year SEK 300 million bond that includes an option of increasing the total loan, when separately agreed conditions are met, by a maximum total of SEK 100 million to a maximum total of SEK 400 million in one or more tranches. The bond is a non-amortizing bullet loan that matures on 12 February 2024 and carries interest at the rate of STIBOR 3 months plus a margin of 6,60 per cent per annum.
The bond involves a leverage covenant (ratio of net debt to EBITDA). The covenant should be equal to or less than 5.00/4.50/4.00 for the first/second/third year from the original issue date of the bond (12 February 2021).
The issuance of additional bonds requires that the Group’s ratio of net debt to EBITDA does not exceed 3.00/2.75/2.50 one/two/three years after the original issue of the bond.
The Group complied with the leverage covenant throughout the reporting period. As at 31 January 2022, the leverage ratio was 2,95.
The bond has been listed on the Open Market segment of the Frankfurt Stock Exchange since February 2021. On 8 February 2022 the bond was admitted to trading on the corporate bond segment of Nasdaq Stockholm.
The Company repaid the bank loans with Danske Bank A/S Finland Branch together with interest and expenses and redeemed the equipment acquired in the leaseback agreement signed with Danske Finance Oy on 12 April 2019 at the agreed residual value with the funds borrowed with the bond.
In addition to the issue of the bond, the Company agreed on a secured EUR 2,000,000 overdraft facility with Danske Bank A/S Finland Branch on 12 February 2021. The overdraft facility involves a leverage financial covenant similar to the terms and conditions of the bond. The facility was not in use on 31 January 2022.
Maturities of contracts of financial liabilities 31 January 2022
1000 EUR
No more than 12 months
Over 1 year and no more than 2 years
Over 2 years and no more than 5 years
Over 5 years
Total
Book value
Trade payables
7468
2
7470
7470
Lease liabilities
4887
4330
3898
323
13438
12909
Bonds
1888
1888
29077
32853
28000
Shareholder loans
15964
15964
14648
Derivatives
0
484
Maturities of contracts of financial liabilities 31 January 2021
1000 EUR
No more than 12 months
Over 1 year and no more than 2 years
Over 2 years and no more than 5 years
Over 5 years
Total
Book value
Trade payables
5122
5122
5122
Lease liabilities
4237
3522
3862
177
11798
11385
Loans from financial instritutions
25391
797
26187
25805
Shareholder loans
16067
16067
14065
Fair values and carrying amounts of financial instruments
Fair values and carrying amounts of financial instruments are as follows:
31 Jan 2022
31 Jan 2021
1000 EUR
Fair value hierarchy level
Carrying amount
Fair value
Carrying amount
Fair value
Financial liabilities
Loans from financial institutions
2
25805
25805
Bonds
2
28000
28359
Shareholder loans
2
14648
14189
14065
13490
Derivatives
2
484
484
The fair values of financial instruments are classified in accordance with the following fair value hierarchy: instruments for which there is a publicly quoted price in an active market (level 1), instruments for which there is another observable direct or indirect price than a quoted price pursuant to level 1 (level 2) and instruments for which there is no observable market price (level 3).
The fair values of loans from financial institutions are based on discounted cash flows. Fair values of the bonds are based on observable market prices.
Carrying amounts of trade receivables, trade payables and cash and cash equivalents are a reasonable approximation of their fair values.
Commitments and contingent liabilities
The following shares have been pledged as collateral for the bond and overdraft facility: HLRE Group Oy, Vesivek Oy, Vesivek Sverige AB and Nesco Oy.
Furthermore, the following internal loans have been pledged as collateral for the bond agreement:
Loan granted by HLRE Holding Oyj to HLRE Group Oy totaling EUR 11,996,333
Loan granted by HLRE Holding Oyj to Vesivek Oy totaling EUR 1,442,609
Loan granted by HLRE Holding Oyj to Nesco Invest Oy totaling EUR 8,446.71
Loan granted by HLRE Holding Oyj to Nesco Oy totaling EUR 4,510,442
The following business mortgages have been confirmed and pledged as collateral for the bond and overdraft facility.
HLRE Group Oy EUR 57,200 thousand
Vesivek Oy EUR 57,200 thousand
Nesco Invest Oy EUR 57,200 thousand
Nesco Oy EUR 57,200 thousand
Vesivek Sverige AB SEK 20,000 thousand
The following real estate mortgages have been pledged as collateral for the bond and overdraft facility:
Nesco Oy Orimattila production plant EUR 13,673 thousand
Vesivek Oy industrial hall in Lieto EUR 46,800 thousand
Related party transactions
The related parties of the HLRE Group include the Group’s parent company and subsidiaries. The related parties also include the members of the Board of Directors and Group management team, any deputy members and secretary, the CEO and Deputy CEO, their close family members and their controlled entities.
Related party transactions are treated in accordance with the related party guideline approved by the Board of Directors of HLRE Holding Oy. The Company’s Board of Directors always decides on significant transactions with HLRE Holding Oyj and its related parties.
The following transactions have been realized with related parties:
1000 EUR
With entities controlled by key management
31 Jan 2022
31 Jan 2021
Sales of goods and services
52
86
Purchases of goods and services
190
287
Repayment of lease liability
1289
1167
Interest expense on lease liability
76
91
Loan receivables
340
Trade receivables
328
Interest receivables
12
Trade payables
4
With shareholders and key management
31 Jan 2022
31 Jan 2021
Loan receivables
250
Non-current liabilities
10789
10789
Interest liabilities
3832
3276
Interest costs
647
649
In February 2021, the Group company Vesivek Oy acquired a 71.63% holding in Salaojakympit Oy (later renamed as Vesivek Salaojat Oy) from the Group’s CEO at a purchase price of EUR 406 thousand, and fully paid in cash at acquisition date. Further information about the acquisition is provided in note 5.
During the previous financial year, Vesivek Oy granted a total of EUR 340 thousand of loans to Salaojakympit Oy (later renamed as Vesivek Salaojat Oy) and a total of EUR 250 thousand to the CEO. The loan granted to the CEO was repaid in full on July 2021.
Events after the reporting date
The bond has been listed on the Open Market segment of the Frankfurt Stock Exchange since February 2021. On 8 February 2022 the bond was admitted to trading on the corporate bond segment of Nasdaq Stockholm with name HLRE Sen Sec FR SEK Bond 2024 and ISIN code SE0015530712.
Vesivek Salaojat Oy has decided to start underground drain renovations in Vaasa and Oulu during the H1/2022. Both units have for years performed successfully on Vesivek Oy´s business.
Parent company’s condensed income statement*
1000 EUR
Nov 21 – Jan 22
Feb 21 – Jan 22
Feb 20 – Jan 21
Q4
Q1-Q4
Q1-Q4
TURNOVER
139
472
285
-26
-185
-176
Depreciation, amortisation and impairment
-6
-24
-24
Other operating expenses
-127
-284
-68
OPERATING PROFIT/LOSS
-20
-21
17
Financial income and expenses
1506
19
115
PROFIT/LOSS BEFORE TAX
1486
-2
132
Income taxes
0
0
-26
PROFIT/LOSS FOR THE PERIOD
1486
-2
106
Parent company’s condensed balance sheet*
1000 EUR
31 Jan 22
31 Jan 21
ASSETS
NON-CURRENT ASSETS
Intangible assets
46
70
Investments
19 802
19 802
19 848
19 872
CURRENT ASSETS
Non-current receivables
33 888
7 700
Current receivables
9 034
5 642
Cash and cash equivalents
61
141
42 983
13 483
ASSETS
62 832
33 354
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital
80
3
Other reserves
18 002
18 079
Retained earnings
992
836
Profit or loss for the financial year
-2
106
SHAREHOLDERS’ EQUITY
19 072
19 024
LIABILITIES
Non-current liabilities
39 390
14 265
Current liabilities
4 370
65
LIABILITIES
43 760
14 330
SHAREHOLDERS’ EQUITY AND LIABILITIES
62 832
33 354
*Parent company’s figures are presented according to the Finnish Accounting Standards
Use of Alternative Performance Measures
Alternative Performance Measures (APM) are financial measures of historical or future financial performance, financial position, or cash flows, other than financial measures defined or specified in the applicable financial reporting framework. HLRE Group reports the financial measures [Gross profit], [Gross margin] and [Adjusted EBITDA] in its quarterly reports, which are not financial measures as defined in IFRS. The Group believes that the alternative performance measures provide significant additional information on HLRE’s results of operations, financial position and cash flows The APMs are used consistently over time and accompanied by comparatives for the previous periods.
Gross profit= Revenues – cost of goods sold
Gross margin (%) = Gross profit in relation to Revenue
EBITDA = Operating profit (EBIT) + Depreciation + Amortization
EBITDA % = EBITDA in relation to Revenue
Adjusted EBITDA = EBITDA – EBITDA Adjustments
Adjusted EBITDA % = (EBITDA – EBITDA Adjustments) / Revenue
Operating profit (EBIT) % = Operating profit in relation to Revenue
EBITDA adjustments = IFRS loss of sale and lease back arrangement, advisory and other transaction costs related to re-financing and other non-recurring costs
Attachments
HLRE Holding Oyj – Year-end report bulletin.pdf
