HONKARAKENNE OYJ HALF-YEAR REPORT 1 JANUARY TO 30 JUNE 2022
HONKARAKENNE OYJ HALF-YEAR REPORT 24 AUGUST 2022 AT 9:00
HONKARAKENNE OYJ HALF-YEAR REPORT 1 JANUARY TO 30 JUNE 2022
HONKARAKENNE’S NET SALES AND OPERATING PROFIT INCREASED
Net sales for the first half of 2022 grew by 24% to EUR 36.7
million (H1 2021: 29.6). Operating profit and profit before taxes
were higher than in the previous year. Operating profit increased
by 30% and was EUR 2.2 million (1.7). Profit before taxes increased
by 3% and was EUR 1.7 million (1.7).
January-June 2022
- Honkarakenne Group’s
net sales in January–June amounted to EUR 36.7 million (H1 2021:
29.6). Net sales rose by 24% from the corresponding period of the
previous year.
- Operating profit was
EUR 2.2 million (1.7).
- Profit before taxes
was 3% higher than in the previous year and was EUR 1.7 million
(1.7). The operating profit of the review period is weakened by
changes in the value of other cash assets recognised in financial
expenses.
- EPS was EUR 0.23
(0.25).
Honkarakenne’s guidance for 2022 remains unchanged from the
updated guidance in May. Honkarakenne’s outlook is that net sales
will increase from the previous year and profit before taxes will
be at the previous year’s level.
The Group's order book was below the historically high EUR 60.5
million level of the comparison period and amounted to EUR 51.3
million. At the beginning of March, Honkarakenne suspended sales to
Russia after Russia commenced military aggression against Ukraine
and the last deliveries were made at the end of the review period
before the EU's export sanctions came into force. The Group's order
book no longer includes orders to Russia.
Figures in brackets refer to the corresponding period one year
earlier, unless otherwise stated
KEY
FIGURES |
1-6/2022 |
1-6/2021 |
1-12/2021 |
Net sales,
MEUR |
36.7 |
29.6 |
69.7 |
Operating
profit, MEUR |
2.2 |
1.7 |
3.7 |
Profit before
taxes, MEUR |
1.7 |
1.7 |
3.6 |
Average number
of employees |
188 |
176 |
178 |
Average number
of employees in person-years |
182 |
168 |
170 |
Earnings per
share, EUR |
0.23 |
0.25 |
0.56 |
Equity ratio,
% |
56 |
53 |
61 |
Return on
equity, % |
8 |
10 |
21 |
Equity per
share, EUR |
2.85 |
2.56 |
2.88 |
Gearing ratio,
% |
-87 |
-64 |
-51 |
Honkarakenne Oyj's CEO Marko Saarelainen commented on the
half-year report as follows:
"The first half of the year was challenging due to market
turbulence. After Russia started military aggression against
Ukraine, Honka decided to suspend sales to Russia. During the
review period we managed to deliver only some of the last projects
in ordering and delivery stage before EU’s export sanctions came
into force. After customs sanctions came into force, Honkarakenne
suspended all deliveries to Russia.
Adapting to changing and sometimes challenging situations has
been demanding for our personnel, required numerous negotiations,
and finding new solutions to ensure, e.g., availability of domestic
raw materials and making higher prices reasonable.
Due to the good order book in early 2022, Honkarakenne's net
sales grew nicely from the comparison period, totalling EUR 36.7
million, 24% higher than in 2021. Thanks to measures taken in
spring, adjustment and further investments in the market, the Group
managed to maintain a good profitability level. The EBIT margin was
6% and operating profit EUR 2.2 million.
In June, an impressive sauna restaurant called Sataman Viilu was
completed in Jyväskylä, for which Honkarakenne designed, delivered
and implemented all log structures. Honka, exhibited an
energy-efficient and modern log house called Honka Haiku at the
Housing Fair in Naantali that attracted a lot of interest. The
Housing Fair in Naantali was a success for Honka and we are pleased
about the overall execution of the exhibition house, which was one
of the best houses at the fair.
The war in Ukraine and the uncertainty it brings have a negative
impact on the overall market situation. The outlook for sales
development is low. Although demand is still moderate, accelerating
inflation and rising interest rates may reduce the number of
housing start decisions and postpone them to a later date. In our
view, demand will temporarily weaken.
In addition to the domestic market, Honkarakenne invests in
increasing exports in selected export regions. The company is
engaged in several development projects that support the
export-driven strategy and strengthens profitability and process
efficiency, and improve customer and employee experience.”
NET SALES
Honkarakenne Group’s net sales for the first half of 2022 grew
by 24% to EUR 36.7 million (29.6).
Honkarakenne presents its net sales data divided in two
geographical segments: Finland and Exports. Below we present net
sales based on this division for the first half of 2022 and for the
comparison period.
Geographical
distribution of net sales: |
|
|
|
|
|
|
|
Net sales
distribution, % |
1-6/2022 |
1-6/2021 |
1-12/2021 |
|
Finland |
72 |
74 |
63 |
|
Exports |
28 |
26 |
37 |
|
Total |
100 |
100 |
100 |
|
|
|
|
|
|
Net sales,
MEUR |
1-6/2022 |
1-6/2021 |
change-% |
|
Finland |
26.4 |
21.9 |
20 |
|
Exports |
10.3 |
7.7 |
35 |
|
Total |
36.7 |
29.6 |
24 |
|
|
|
|
|
|
Net sales,
MEUR |
7-12/2021 |
1-12/2021 |
|
|
Finland |
22.2 |
44.1 |
|
|
Exports |
17.9 |
25.6 |
|
|
Total |
40.1 |
69.7 |
|
|
Finland also includes billet sales and the sale of process
by-products for recycling. Exports include all other countries
except Finland.
ORDER BOOK
The Group's order book at the time of the report stood at EUR
51.3 million (60.5). The order book was 15% lower than one year
earlier. The Group’s order book at the end of June does not include
orders to Russia. Order book refers to orders with a delivery date
within the next 24 months. Some orders may have a financing or
building permit condition.
TRENDS IN PROFIT AND PROFITABILITY
The Group’s operating profit increased by 30% year-on-year and
was EUR 2.2 million (1.7). Profit before taxes was 3% higher than
in the previous year and was EUR 1.7 million (1.7). Compared with
the corresponding period of 2021, the Group's profitability is
weakened by high raw material and subcontracting product costs, as
well as increased personnel costs, mainly due to the additional
recruitment carried out after last summer. In addition, financial
expenses increased due to changes in the value of other cash assets
recognised in financial expenses.
FINANCING AND INVESTMENT
At the end of the review period, Honkarakenne's financial
position was good and the Group's equity ratio was 56% (53%).
Gearing was at -87% (-64 %). The Group's net financial liabilities
amounted to EUR -14.5 million (-9.6), so the Group's liquid assets
exceeded its financial liabilities. The Group’s liquid assets
totalled EUR 17.6 million (13.0). The Group also has a EUR 3.0
million (3.0) overdraft facility, which has not been used in the
review period or the comparison period.
The Group's capital expenditure amounted to EUR 0.2 million
(0.9), excluding right-of-use assets in accordance with the IFRS 16
standard. Investments during the period under review focused mainly
on completing the introduction of the log line at the Karstula
factory and developing the ERP system.
PRODUCTS AND MARKET AREAS
In Finland, net sales developed well and was
20% higher than in the corresponding period in 2021. Sales growth
and demand have continued well in leisure building construction, in
detached houses growth has been positive, but signs of a slowdown
in detached house demand is visible. The high inflation rate, still
elevated construction costs and overall uncertainty are expected to
potentially affect housing start decisions in detached house
construction. Demand for Honkarakenne's leisure building
construction is expected to remain at a reasonably good level, to
stabilise from previous years, and for service sales, demand is
expected to remain at its current level.
There is a lot of demand for domestic project construction,
especially in housing construction and regional development,
leisure centre construction, as well as care facility and day-care
centre construction. During the review period, log-structure
day-care centres were completed in Vantaa, Espoo and Ii, a care
facility in Ylivieska and a school in Kuopio in cooperation with
Hoivarakentajat. In addition, an impressive sauna restaurant called
Sataman Viilu was completed in the harbour in Jyväskylä where
Honkarakenne designed, delivered and implemented all log
structures.
Honkarakenne exhibited the Honka Haiku house at the Housing Fair
in Naantali. The house is a modern single-storey log home that uses
M1-certified low-emission materials, innovative solar power system
and smart technical solutions. Together, they reduce the carbon
footprint of housing and support a sustainable future and the
happiness of its future residents.
In exports, net sales developed excellently and
was 35% higher than in the previous year. Sales growth and demand
increased especially in project export countries. As far as
exporting countries are concerned, only China is still at a
standstill. The availability problems in the raw material markets
were to some extent reflected in export supply and caused longer
delivery times. Furthermore, the military actions initiated by
Russia have made export transports difficult and increased their
costs.
Sales in Russia were suspended at the beginning of March and
deliveries from the order book during the review period were at the
level of the comparison period. After customs sanctions came into
force, the last deliveries in the order book were suspended and the
Group no longer has deliveries to Russia in the order book. After
Russia was excluded from exports, investments have been transferred
to other export countries. At the end of June, the order book for
exports was significantly higher than one year earlier.
STRATEGY 2022-2024
In December 2021, the Board of Directors decided on the
company’s new strategy. The aim of the strategy, which will be in
force until the end of 2024, is to strengthen Honkarakenne Oyj’s
position as Finland’s largest exporter of wooden buildings. With
the new export-driven strategy, the company is seeking to increase
its net sales in the strategy period with a focus on profitability.
The profitability objectives are based on process efficiency, while
significantly enhancing the customer and employee experience.
Honkarakenne Group's vision is to become the leader in
environmentally friendly and healthy housing in our chosen market
areas. The Group’s mission is to improve the quality of people’s
lives and housing.
Honkarakenne’s strategic objectives for the 2022–2024 period
are:
- Increasing exports by focusing on and allocating resources to
selected markets
- Increased profitability through further enhancing the customer
and employee experience
- A responsible leader focused on health and the future
To implement the strategy, the company has several ongoing
preparatory and development projects in various stages in its key
operations that support the progress of the strategy. These are
monitored by the Board of Directors and the Executive Group and the
steering group operating under its control.
SUSTAINABILITY
Sustainability is a key part of Honkarakenne's strategy.
Honkarakenne Group is continuously developing its production,
services and selection to enable healthier, more ecological and
better-quality living. The Group focuses on building the future and
choices are guided by human and natural vitality. Honkarakenne’s
sustainability programme, ‘We are building the future’, is based on
the changes we have identified in our operating environment, our
ethical principles, recognised expectations of our staff and other
stakeholders, and understanding the customer in our main markets.
Responsible purchasing and eco-friendly production are at the core
of our business and we are constantly developing the health and
safety of our houses.
During the preparation of Honkarakenne’s ethical principles, the
personnel was involved in the preparation both in the working group
and through a questionnaire directed at the entire personnel. The
ethical principles adopted in June will be published and
implemented to the personnel and Honka’s cooperation partners this
autumn. As part of Honka's sustainability programme, the company
started using environmentally friendly electricity generated by
hydro power, wind power and bioenergy in June. The electricity used
by the company in all sites is 100% produced with renewable energy
with guarantee of origin and CO2 emissions of 0 g/kWh.
THE HONKA BRAND
The renewed Honka brand was introduced in early 2022 and it has
been highly visible during the review period. The core of the Honka
brand is the close relationship with northern nature and Finnish
happiness. Honka's yellow is the colour of hope and joy. Honka
helps every customer realize the dreams that are important to them
and Honka has the honour to convey the vitality of the northern
forest.
SEASONAL NATURE OF OUR BUSINESS
Honkarakenne operates in a business that is seasonal by nature.
Especially in Finland, construction mostly takes place during
summer, so there are more deliveries in summer and autumn than
during the winter. Considering the existing market and demand
conditions, the company aims to even out this seasonality
especially with export activities.
RESEARCH AND DEVELOPMENT
The Group's R&D costs in January-June were EUR 0.2 million
(0.2), representing 0.4% (0.7%) of net sales. Research and
development activities focused on product solutions for export
markets and continued to focus on log structures suitable for
public and large buildings in particular. Honkarakenne‘s log
product project for public and large buildings is part of the
Ministry of the Environment's Wood Building Programme, which has
granted funding for the project. The aim of the project and
programme is to increase the use of wood in construction to promote
climate targets. Wood construction is part of sustainable use of
forests. The Group has not capitalised development costs during the
review period.
PERSONNEL
The Group’s average number of personnel, measured in
person-years, totalled 182 persons (168) during the first half of
the year. The increase from the comparison period was 14 persons.
The Group’s average number of personnel, measured by employment
relationships, was 188 (176) during the first half of the year.
After Honkarakenne decided to suspend sales to Russia since
Russia launched military operations in Ukraine, the company began
change negotiations with personnel representatives in March due to
the uncertain production and economic situation. It was agreed in
the negotiations that the employer has the right to impose a
maximum of 90 days of temporary layoffs and working time
arrangements for the entire personnel until 31 December 2022. Some
of the layoffs have taken place starting from April.
EXECUTIVE GROUP
In June, the company strengthened its executive group and
appointed Eino Hekali as Vice President, Product and Maarit
Taskinen as Vice President, Operations Export and as executive
group members. At the end of the review period, Honkarakenne’s
Executive Group consisted of; Marko Saarelainen, President and CEO;
Juha-Matti Hanhikoski, Vice President, Production; Eino Hekali,
Vice President, Product (from 8 June 2022); Sanna Huovinen, Vice
President, Marketing; Maarit Jylhä, CFO; Petri Perttula Vice
President, Operations Finland and Maarit Taskinen, Vice President,
Operations Export (from 8 June 2022).
HONKARAKENNE OYJ’S ANNUAL GENERAL MEETING, BOARD OF DIRECTORS
AND AUDITORS
Honkarakenne Oyj’s annual general meeting was held at the
company’s Tuusula office on 13 April 2022. The General Meeting
adopted the financial statements, approved the remuneration report,
and granted discharge from liability for 2021 to the members of the
Board of Directors and the President and CEO. The Annual General
Meeting decided that no dividends be paid for the financial year
ending on 31 December 2021. The Annual General Meeting also decided
that a repayment of capital of EUR 0.25 per share be distributed
from the invested unrestricted equity fund. The repayment of
capital was paid to shareholders in April.
Arto Halonen, Timo Kohtamäki, Maria Ristola, Kari Saarelainen
and Kyösti Saarimäki were re-elected to the Board of Directors. At
the Board's organising meeting, Kyösti Saarimäki was selected as
the Chairman of the Board of Directors. At the same meeting, the
Board of Directors decided that it would not establish
committees.
Ernst & Young Oy, member of the Finnish Institute of
Authorised Public Accountants, was re-appointed as auditor of the
company, with Elina Laitinen, APA, as chief auditor.
The Annual General Meeting decided that a Shareholders'
Nomination Committee be established and that the rules of procedure
for the committee be approved.
AUTHORISATIONS OF THE BOARD OF DIRECTORS
The Annual General Meeting decided on 13 April 2022 that the
Board of Directors is authorised to decide on the purchase of no
more than 400.000 of the company’s own B shares using funds from
the company’s unrestricted shareholders’ equity. In addition, the
Annual General Meeting authorised the Board of Directors to decide
on rights issue or bonus issue and on the granting of special
rights entitling to shares in one or more instalments under the
terms and conditions in Chapter 10, section 1 of the Companies Act.
Under the authorisation, the Board of Directors may issue a maximum
of 1.500.000 new shares and/or transfer old B shares held by the
company inclusive of any shares that may be issued. These two
authorisations remain in force until the next Annual General
Meeting, however expiring at the latest on 30 June 2023.
SHARES, SHARE CAPITAL AND OWN SHARES
During the review period, Honkarakenne Oyj’s shares numbered
6,211,419, of which 300,096 were class A shares and 5,911,323 class
B shares. The company’s share capital has not changed, remaining at
EUR 9,897,936.00. Each class B share entitles to one (1) vote and a
class A share to twenty (20) votes, bringing to total number of
votes conferred by the shares during the review period to
11,913,243.
Honkarakenne’s class B shares are listed on NASDAQ OMX Helsinki
Oy’s Small Cap list with the ticker HONBS. The highest price of the
listed class B share was EUR 7.72, lowest EUR 4.20, and the closing
price at the end of the review period was EUR 4.92. The trading
value of class B shares was EUR 0.9 million and the trading volume
5.3 million shares.
In April, Honkarakenne transferred 10,000 class B shares to the
CEO as part of the 2021 performance bonus. At the end of the report
period, the Group held 329,385 of its own Series B shares with a
total purchase price of EUR 1,221,417.02. Own shares account for
5.30% of all company shares and 2.76% of all votes. The purchase
cost of own shares has been deducted from shareholders' equity in
the consolidated financial statements.
CORPORATE GOVERNANCE
Honkarakenne Oyj complies Finnish Corporate Governance Code for
listed companies issued by the Securities Market Association in
2021. For more information about corporate governance, go to
www.honka.fi.
SHORT-TERM RISKS AND UNCERTAINTIES
The main risks and uncertainties of Honkarakenne relate to
negative changes in the operating environment of the company and
its customers, increased costs of raw materials and components,
their availability and the functioning of the overall supply
chains. If demand falls sharply in the operating environment and
costs remain high, it may have significant effects on the company’s
earnings development.
Economic uncertainty is negatively reflected in business and
consumer confidence. The short-term economic risks are further
increased by the acceleration of inflation and the rise in interest
rates that has started. In addition, the availability of energy,
some raw materials and construction materials, as well as machine
components, may become more difficult due to mutual sanctions by
Russia and Western countries and will continue to increase
costs.
The uncertainty of the military aggression initiated by Russia
and all its effects on business are difficult to assess. The attack
on Ukraine, related sanctions and countersanctions resulted in
Honkarakenne suspending sales to Russia and stopping delivery of
orders in the order and delivery stages to the company's long-term
importer. Replacing the lost order book with other export markets
may be prolonged or uncertain in the current global market
situation. In addition, the COVID pandemic still causes uncertainty
in the company’s various market areas, especially in exports.
The valuation of items in the balance sheet is based on the
management’s current estimates. Any changes to these estimates may
affect the company’s financial performance.
EVENTS AFTER THE REVIEW PERIOD
Sanna Huovinen, Vice President, Marketing, has resigned from the
company's service and will start working for another employer. She
remains a member of the Executive Group until 30 September
2022.
REPORTING
This report contains statements that relate to the future, and
these statements are based on hypotheses that the company's
management hold currently, and on the decisions and plans that are
currently in place. Although the management believes that the
hypotheses relating to the future are well-founded, there is no
guarantee that the said hypotheses will prove to be correct.
This half-year report has been prepared in accordance with IAS
34. The half-year report should be read together with the 2021
financial statements. The accounting policies used in preparing the
half-year report are the same as in the financial statements for
2021, with the exception of standards and interpretations that have
come into force on 1 January 2022 or thereafter. The new standards
or interpretations effective as of 1 January 2022 did not have a
material impact on the figures presented for the review period.
The half-year report has not been audited and the figures are
unaudited.
Figures in brackets refer to the corresponding period one year
earlier, unless otherwise stated.
Honkarakenne complies with the Guidelines on Alternative
Performance Measures (APM) issued by the European Securities and
Markets Authority (ESMA). An APM is a financial measure of
performance other than a financial measure defined or specified in
IFRS. Therefore, instead of the previous term ‘without
non-recurring items’, the term ‘adjusted’ is used. The company
classifies significant business transactions that are considered to
affect comparisons between different reporting periods as
adjustment items. Such transactions include significant
reorganisation expenses, significant impairment losses or reversals
thereof, significant capital gains and losses on assets, and other
significant non-customary income or expenses.
OUTLOOK FOR 2022
Honkarakenne’s guidance for 2022 is in line with the updated
guidance in May. Honkarakenne’s outlook is that net sales will
increase from the previous year and profit before taxes will be at
the previous year’s level.
BASIS FOR THE OUTLOOK
The company's outlook of the 2022 development is based on the
existing order book and the expectation on market development, the
price development of raw materials and components, the agreed
adjustment measures and the measures decided and promoted in
connection with the strategy work.
HONKARAKENNE OYJ
Board of Directors
Further information:
CEO Marko Saarelainen, tel. +358 40 542
0254, marko.saarelainen@honka.com orCFO Maarit Jylhä,
tel. +358 40 594 4099, maarit.jylha@honka.com
This and previous releases can be found on the company's website
at https://investors.honka.com/en/
DISTRIBUTIONNASDAQ OMX Helsinki OyKey mediaFinancial Supervisory
Authoritywww.honka.fi
Honkarakenne Oyj manufactures high-quality, healthy and
ecological log homes, holiday homes and public buildings under its
Honka® brand from Finnish solid wood. The company has delivered
85,000 buildings to over 50 countries. House kits are manufactured
in Finland, the company's own factory is located in Karstula. In
2021, Honkarakenne Group's net sales were EUR 69.7 million, of
which exports accounted for 37%. www.honka.fi
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
|
|
Unaudited |
|
|
|
|
MEUR |
1-6/2022 |
1-6/2021 |
1-12/2021 |
|
Revenue (net sales) |
36.7 |
29.6 |
69.7 |
|
Other
operating income |
0.3 |
0.3 |
0.5 |
|
Change in
inventories |
2.7 |
1.8 |
2.0 |
|
Work performed
for own purposes and capitalised |
-28.2 |
-21.4 |
-51.3 |
|
Employee
benefit expenses |
-5.7 |
-5.0 |
-10.1 |
|
Depreciations,
amortisation and impairment |
-1.0 |
-1.1 |
-2.3 |
|
Other
operating expenses |
-2.5 |
-2.5 |
-4.8 |
|
Operating profit/loss |
2.2 |
1.7 |
3.7 |
|
Financial
income |
0.1 |
0.1 |
0.0 |
|
Financial
expenses |
-0.7 |
-0.2 |
-0.3 |
|
Share of
associated companies' result |
0.1 |
0.1 |
0.1 |
|
Profit/loss before taxes |
1.7 |
1.7 |
3.6 |
|
Taxes |
-0.4 |
-0.2 |
-0.3 |
|
Profit/loss for the period |
1.3 |
1.5 |
3.3 |
|
|
|
|
|
|
Other
items of comprehensive income |
|
|
|
|
Translation differences |
0.0 |
0.0 |
0.0 |
|
Total
comprehensive income for the period |
1.3 |
1.4 |
3.3 |
|
|
|
|
|
|
Result
for the period attributable to |
|
|
|
|
Equity holders of the parent |
1.3 |
1.5 |
3.3 |
|
Non-controlling interest |
0.0 |
0.0 |
0.0 |
|
|
1.3 |
1.5 |
3.3 |
|
Comprehensive income attributable to |
|
|
|
Equity holders of the parent |
1.3 |
1.4 |
3.3 |
|
Non-controlling interest |
0.0 |
0.0 |
0.0 |
|
|
1.3 |
1.4 |
3.3 |
|
Calculated
from the result for the period attributable to equity holders of
parent Earnings/share (EPS): |
|
|
|
|
Basic, EUR |
0.23 |
0.25 |
0.56 |
|
Diluted, EUR |
0.23 |
0.25 |
0.56 |
|
The company has two share series: A shares and B shares, which
have different rights to dividend. Profit distribution of EUR 0.20
per share will be first paid for B shares, then EUR 0.20 per share
for A shares, followed by equal distribution of remaining profit
between all shares.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
|
|
|
Unaudited |
30 Jun. 2022 |
30 Jun. 2021 |
31 Dec. 2021 |
MEUR |
|
|
|
|
|
|
|
Assets |
|
|
|
Non-current assets |
|
|
|
Property,
plant and equipment |
11.5 |
13.5 |
12.2 |
Goodwill |
0.1 |
0.1 |
0.1 |
Other
intangible assets |
0.5 |
0.5 |
0.5 |
Investments in
associated companies |
0.5 |
0.4 |
0.4 |
Receivables |
0.1 |
0.1 |
0.1 |
Deferred tax
assets |
1.2 |
1.7 |
1.5 |
Total
non-current assets |
13.8 |
16.3 |
14.8 |
Current assets |
|
|
|
Inventories |
9.1 |
6.4 |
6.5 |
Trade and
other receivables |
6.0 |
7.7 |
5.1 |
Income tax
receivables |
0.3 |
0.4 |
0.3 |
Other
financial assets |
7.8 |
|
5.0 |
Cash and cash
equivalents |
9.8 |
13.0 |
6.9 |
Total
current assets |
33.1 |
27.5 |
23.9 |
Total
assets |
46.9 |
43.8 |
38.6 |
|
|
|
|
Equity
and liabilities |
|
|
|
|
|
|
|
Equity
attributable to owners of the parent |
|
|
|
Share
capital |
9.9 |
9.9 |
9.9 |
Share premium
account |
0.5 |
0.5 |
0.5 |
Invested
unrestricted equity fund |
4.8 |
6.3 |
6.3 |
Own
shares |
-1.2 |
-1.3 |
-1.3 |
Translation
differences |
0.0 |
0.1 |
0.1 |
Retained
earnings |
2.7 |
-0.5 |
1.4 |
Total equity attributable
to owners of the parent |
16.8 |
15.0 |
16.9 |
Non-controlling interests |
|
|
|
Total
equity |
16.8 |
15.0 |
16.9 |
|
|
|
|
Non-current liabilities |
|
|
|
Deferred tax
liability |
0.1 |
0.2 |
0.2 |
Provisions |
0.6 |
0.3 |
0.5 |
Financial
liabilities |
2.3 |
2.7 |
2.6 |
Total
non-current liabilities |
3.0 |
3.2 |
3.2 |
Current liabilities |
|
|
|
Trade and
other payables |
26.3 |
24.6 |
17.7 |
Current tax
liabilities |
0.1 |
0.1 |
0.1 |
Provisions |
0.1 |
0.1 |
0.1 |
Current
financial liabilities |
0.7 |
0.7 |
0.7 |
Total
current liabilities |
27.2 |
25.6 |
18.5 |
Total
liabilities |
30.2 |
28.7 |
21.7 |
Total
equity and liabilities |
46.9 |
43.8 |
38.6 |
STATEMENT OF CHANGES IN
EQUITY |
|
|
|
|
|
|
|
Abridged |
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the parent |
|
|
EUR
thousand |
a) |
b) |
c) |
d) |
e) |
f) |
Total |
g) |
Total equity |
|
|
Total
equity1 Jan 2021 |
9,898 |
520 |
7,331 |
111 |
-1,309 |
-1,927 |
14,623 |
|
14,623 |
|
|
Profit/loss
for the period |
|
|
|
|
|
1,479 |
1,479 |
|
1,479 |
|
|
Translation
differences |
|
|
|
-33 |
|
|
-33 |
|
-33 |
|
|
Redemption of
minority interest |
|
|
-1,055 |
|
|
|
-1,055 |
|
-1,055 |
|
|
Share based
incentive scheme |
|
|
|
|
45 |
-29 |
16 |
|
16 |
|
|
Total
equity 30 June 2021 |
9,898 |
520 |
6,275 |
78 |
-1,265 |
-477 |
15,029 |
|
15,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the parent |
|
|
|
|
EUR
thousand |
a) |
b) |
c) |
d) |
e) |
f) |
Total |
g) |
Total equity |
|
|
Total
equity1 Jan
2022 |
9,898 |
520 |
6,275 |
89 |
-1,265 |
1,381 |
16,899 |
|
16,899 |
|
|
Profit/loss
for the period |
|
|
|
|
|
1,326 |
1,326 |
|
1,326 |
|
|
Translation
differences |
|
|
|
-84 |
0 |
27 |
-56 |
|
-56 |
|
|
Return of
capital |
|
|
-1,471 |
|
|
|
-1,471 |
|
-1,471 |
|
|
Share based
incentive scheme |
|
|
|
|
43 |
14 |
58 |
|
58 |
|
|
Total
equity 30 June 2022 |
9,898 |
520 |
4,805 |
6 |
-1,221 |
2,748 |
16,755 |
|
16,755 |
|
|
a) Share capitalb) Share premium account c) Invested
unrestricted equity fund d) Translation differences e) Own sharesf)
Retained earnings g) Non-controlling interests
CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
|
Abridged |
|
|
|
Unaudited |
1-6/2022 |
1-6/2021 |
1-12/2021 |
MEUR |
|
|
|
|
|
|
|
Cash
flow from operating activities |
8.5 |
8.2 |
7.2 |
Cash flow from
investing activities, net |
-0.3 |
-0.7 |
-0.4 |
Total cash
flows from financing activities |
-5.0 |
-1.4 |
-6.8 |
Repayment of borrowings |
-0.2 |
-0.2 |
-0.4 |
Repayment of lease liabilities |
-0.2 |
-0.2 |
-0.4 |
Return on capital |
-1.5 |
-1.1 |
-1.1 |
Short-term securities investments |
-3.1 |
|
-5.0 |
|
|
|
|
Change in cash
and cash equivalents |
3.2 |
6.0 |
0.0 |
Effect of
exchange rate changes |
-0.3 |
-0.1 |
-0.1 |
Cash
and cash equivalents at the beginning of period |
6.9 |
7.0 |
7.0 |
Cash
and cash equivalents at the close of period |
9.8 |
13.0 |
6.9 |
NOTES TO THE REPORT
Accounting policies
This half-year report bulletin has been prepared in accordance
with IAS 34. The half-year report bulletin should be read together
with the 2021 financial statements. The accounting policies used in
preparing the financial statements are the same as in the financial
statements for 2021, with the exception of standards and
interpretations that have come into force on 1 January 2022 or
thereafter.
The half-year report bulletin has not been audited and the
figures are unaudited.
The figures presented in the bulletin are rounded, so the sum of
individual figures may differ from the amount shown.
Figures in brackets refer to the corresponding period one year
earlier, unless otherwise stated.
New standards and interpretations
The new standards or interpretations effective as of 1 January
2022 did not have a material impact on the figures presented for
the review period.
Alternative Performance Measures
Honkarakenne complies with the Guidelines on Alternative
Performance Measures (APM) issued by the European Securities and
Markets Authority (ESMA). An APM is a financial measure of
performance other than a financial measure defined or specified in
IFRS. Therefore, instead of the previous term “without
non-recurring items”, the term “adjusted” is used. The company
classifies significant business transactions that are considered to
affect comparisons between different reporting periods as
adjustment items. Such transactions include significant
reorganisation expenses, significant impairment losses or reversals
thereof, significant capital gains and losses on assets, and other
significant non-customary income or expenses.
In Honkarakenne’s view, Alternative Performance Measures provide
significant additional information to management, investors,
securities analysts and other parties on Honkarakenne’s operational
result, financial position and cash flows, and are frequently used
by analysts, investors and other parties. Return on equity, equity
ratio, net financial liabilities and gearing are presented as
supplementary key figures, as in the company’s view they are useful
indicators for assessing Honkarakenne’s ability to acquire
financing and pay its debts. In addition, gross investments and
R&D expenditure provide additional information on needs related
to Honkarakenne’s operational cash flow.
Segments
Since the beginning of 2020, Honkarakenne has had two
geographical operating segments that have been combined into one
segment for reporting purposes. Geographically, sales are divided
as follows: Finland and Exports. As management’s internal reporting
complies with IFRS reporting, separate reconciliations are not
presented.
PROPERTY, PLANT AND EQUIPMENT |
|
|
|
Unaudited |
30 Jun. 2022 |
30 Jun. 2021 |
31 Dec. 2021 |
MEUR |
|
|
|
|
|
|
|
Cost at the
beginning of the period |
51.5 |
51.0 |
51.0 |
Additions |
0.2 |
0.9 |
0.6 |
Disposals |
0.0 |
-0.1 |
-0.1 |
Cost at the
end of the period |
51.7 |
51.8 |
51.5 |
|
|
|
|
Accumulated
depreciation at the beginning of the period |
-39.3 |
-37.3 |
-37.3 |
Accumulated
depreciation of disposals |
0.0 |
0.0 |
0.0 |
Depreciation
for the period |
-1.0 |
-1.0 |
-2.0 |
Accumulated
depreciation at the end of period |
-40.2 |
-38.3 |
-39.3 |
|
|
|
|
Carrying amount at the beginning of the
period |
12.2 |
13.7 |
13.7 |
Carrying amount at the end of the period |
11.5 |
13.5 |
12.2 |
CONTINGENT LIABILITIES |
|
|
|
Unaudited |
30 Jun. 2022 |
30 Jun. 2021 |
31 Dec. 2021 |
MEUR |
|
|
|
|
|
|
|
For own
loans |
|
|
|
Mortgages |
6.0 |
6.0 |
6.0 |
Other quarantees |
9.6 |
7.9 |
7.8 |
Off-balance
sheet lease contracts |
0.1 |
0.1 |
0.1 |
Other notes to the report
Events with related parties
The Group’s related parties consist of subsidiaries and
associated companies; the company's management and any companies in
which they exert influence; and those involved in the Saarelainen
shareholder agreement and any companies controlled by them. The
management personnel considered to be related parties comprise the
Board of Directors, President & CEO, and the company's
Executive Group. The pricing of goods and services in transactions
with related parties conforms to market-based pricing.
During the financial year, ordinary business transactions with
related parties were made as follows: sales of goods and services
to related parties amounted to EUR 0.2 million (0.2) and purchases
from related parties to EUR 0.2 million (0.3). Financial statements
of the Group include EUR 0.1 million (0.0) liabilities to related
parties and EUR 0.0 million (0.0) receivables from related parties.
No credit losses have been recognised for the related parties.
KEY FIGURES |
|
|
|
|
Unaudited |
|
1-6/2022 |
1-6/2021 |
1-12/2021 |
|
|
|
|
|
|
|
|
|
Earnings/share
(EPS) |
EUR |
0.23 |
0.25 |
0.56 |
|
|
|
|
|
|
|
|
|
Return on
equity |
% |
8 |
10 |
21 |
|
|
|
|
|
|
|
|
|
Equity
ratio |
% |
56 |
53 |
61 |
|
|
|
|
|
|
|
|
|
Equity/share |
EUR |
2.85 |
2.56 |
2.88 |
|
|
|
|
|
|
|
|
|
Net financial
liabilities |
MEUR |
-14.5 |
-9.6 |
-8.7 |
|
|
|
|
|
|
|
|
|
Gearing |
% |
-87 |
-64 |
-51 |
|
|
|
|
|
|
|
|
|
Gross
investments |
MEUR |
0.2 |
0.9 |
1.3 |
|
|
|
%
of net sales |
1 |
3 |
2 |
|
|
|
|
|
|
|
|
|
Order
book |
MEUR |
51.3 |
60.5 |
52.4 |
|
|
|
|
|
|
|
|
|
Average number
of personnel |
White-collar |
123 |
109 |
112 |
|
|
|
Blue-collar |
65 |
67 |
66 |
|
|
|
Total |
188 |
176 |
178 |
|
|
|
|
|
|
|
|
|
Personnel in
person-years, average |
White-collar |
121 |
105 |
109 |
|
|
|
Blue-collar |
61 |
63 |
62 |
|
|
|
Total |
182 |
168 |
170 |
|
|
|
|
|
|
|
|
|
Adjusted
number of shares (’000) |
At
period-end |
5,882 |
5,872 |
5,877 |
|
|
|
Average during period |
5,877 |
5,872 |
5,872 |
|
|
Formulas for key indicator calculation: |
|
|
|
Profit / loss
for the period attributable to owners of parent |
Earnings/share: |
--------------------------------------------------------------------- |
|
Average number
of outstanding shares |
|
|
|
Profit/loss for the period under review |
Return on
equity %: |
--------------------------------------------------------------------- |
|
Total equity,
average |
|
|
|
Owners’
equity |
Equity/share: |
-------------------------------------------------------------------- |
|
Number of
outstanding shares at the end of the period |
|
|
|
Total
equity |
Equity ratio,
%: |
-------------------------------------------------------------------- |
|
Balance sheet
total - advances received |
|
|
Net financial
liabilities: |
Interest-bearing financial liabilities — cash and cash
equivalents |
|
|
|
Interest-bearing financial liabilities — cash and cash
equivalents |
Gearing, |
-------------------------------------------------------------------- |
%: |
Total
equity |
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