Progress in line with strategy; business performance mainly positive

KH Group Oyj
Stock Exchange Release 16 August 2024 at 8:00 am

KH Group Plc’s Half-Year-Report 1 January–30 June 2024

Progress in line with strategy; business performance mainly positive

This is the summary of the Half-Year Report for January–June 2024. The full Half-Year Report is attached to this release and is also available on the company’s website at www.khgroup.com.

KH Group, April-June 2024, pro forma 

• Net sales amounted to EUR 89.3 (93.2) million.
• Operating profit was EUR -0.3 (0.2) million.
• The net sales of KH-Koneet were slightly better than in the comparison period and operating profit remained unchanged compared to the comparison period.
• Indoor Group’s net sales declined significantly and operating profit was below the level of the comparison period.
• NRG’s net sales and operating profit increased significantly year-on-year.
• KH Group divested its holdings in HTJ.
• Ville Nikulainen started as the Group CEO and Tommi Rötkin as CFO on 1 June 2024.
  

KH Group January–June 2024, reported IFRS 

• Net sales amounted to EUR 167.4 (67.2) million. The figure for the comparison period includes net sales accumulated in May–June 2023 and HTJ is classified as a discontinued operation retroactively.
• Operating profit was EUR -1.8 (-9.9) million.
• Net profit for the period was EUR -6.2 (-5.4) million.
• Earnings per share (undiluted and diluted) were EUR -0.07 (-0.06).
• Equity per share at the end of the review period was EUR 1.25 (1.51).
• Return on equity for rolling 12 months was -18.9% (-10.5%).
• The Group’s cash and cash equivalents amounted to EUR 4.1 million at the end of the review period.
• Gearing at the end of the review period was 239.6% (180.3%).
• Gearing excluding lease liabilities was 153.8% (109.7%).
  

CEO Ville Nikulainen:

"I started as CEO of KH Group and Tommi Rötkin as CFO on 1 June 2024. The implementation of KH Group’s strategy change has progressed as planned and we divested HTJ in June–July 2024. HTJ and the entries related to its divestment are reported as a discontinued operation. The debt-free selling price was EUR 23.0 million, with KH Group’s share after the net debt and expenses arising from the sale amounting to EUR 13.1 million. The cash proceeds from the sale were used to pay back the parent company’s bank loan in full after the end of the review period, and the proceeds will also be used for measures required by the change in strategy.