2016-05-26 07:00:34 CEST
2016-05-26 07:00:34 CEST
BIRTINGARSKYLDAR UPPLÝSNINGAR
Lehto Group Oyj - Interim report (Q1 and Q3)
Lehto Group Plc: Business Review, January-March 2016
Lehto Group Plc's Business Review, January-March 2016
Lehto Group Plc Stock Exchange release 26 May 2016, 8:00 a.m. EET
Net sales growth continued on all service areas
This is not an interim report according to the IAS 34 standard. The company
complies with half-yearly reporting according to the Finnish Securities Markets
Act and discloses business reviews for the first three and nine months periods
of the year with key information regarding the company's financial situation and
development will be presented.
The financial information presented in this business review is unaudited.
Figures in brackets refer to previous year's corresponding period, unless
otherwise stated.
Financial development January-March 2016
GROUP 1-3/2016 1-3/2015 1-12/2015
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Net sales, EUR million 62.3 50.5 275.6
Change in net sales, % 23.4 % 23.2 % 61.1 %
Operating profit, EUR million 4.0 4.3 27.2
Operating profit, % of net sales 6.5 % 8.5 % 9.9 %
Profit for the period, EUR million 3.0 3.0 21.2
Order backlog at year end, EUR million 178.1 145.8 195.0
Cash and other liquid assets, EUR million 25.2 7.7 24.6
Interest-bearing liabilities, EUR million 12.3 19.9 17.0
Equity ratio, % 34.8 % 28.6 % 37.2 %
Net gearing ratio, % -45.8 % 60.5 % -22.9 %
Group net sales growth was 23.4 % compared to previous year's corresponding
period and was EUR 62.3 million (50.5). Net sales grew on all service areas, and
especially on the Housing service area.
Operating profit was EUR 4.0 million (4.3), which is 6.5 % (8.5 %) of net sales.
Operating profit's lower level compared to the comparison period is mainly due
to a low margin housing project being recognized as income in the review period
and the start of some business premises projects shifting to the second quarter.
The order backlog grew and was EUR 178.1 million (145.8) at the end of the
review period. A construction project is included in the order backlog once the
contract for the construction project has been signed or, in case of own-
developed projects, once the decision to start construction has been made and
the contract has been signed in projects carried out on a contractor basis.
NET SALES BY SERVICE AREA, EUR MILLION 1-3/2016 1-3/2015 Change 1-12/2015
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Business premises 20.5 19.2 6.7 % 109.8
Housing 28.3 19.7 43.7 % 69.5
Social care and educational premises 7.1 6.6 8.5 % 38.4
Building renovation 6.3 5.0 27.2 % 58.0
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Total 62.3 50.5 23.4 % 275.6
Net sales growth continued on all service areas. The Housing service area had
the strongest growth of 43.7 % during the first quarter. Four housing projects
were completed during the review period, with a total of 160 apartments, as well
as 4 business premises projects and 7 social care and educational premises
projects.
Balance sheet and financing
GROUP BALANCE SHEET, EUR Million 31 Mar 2016 31 Mar 2015 31 Dec 2015
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Non-current assets 16.2 8.5 14.6
Current assets
Inventories 47.0 41.9 51.3
Current receivables 47.0 58.6 47.2
Cash and cash equivalents 25.2 7.7 24.6
Assets held for sale 0.0 1.9 0.0
Total assets 135.4 118.6 137.6
Equity 28.3 20.2 33.4
Financial liabilities 12.3 19.9 17.0
Prepayment received 54.0 48.1 47.9
Other payables 40.8 29.5 39.3
Liabilities associated with assets held 0.0 1.0 0.0
for sale
Total equity and liabilities 135.4 118.6 137.6
The group's financial position remained strong. At the end of the review period
net gearing was -45.8 % (60.5 %) and equity ratio was 34.8 % (28.6 %). Equity
decreased by EUR 5.1 million during the review period, which is explained by a
decision on EUR 7.9 million dividend distribution. During the review period the
company repaid interest-bearing debt and its amount at the end of the review
period was EUR 12.3 million (19.9).
The effects of the Initial Public Offering carried out after the end of the
review period is not presented on the 31 March 2016 balance sheet.
Main events during the review period
During the first quarter of 2016 all of the group's units began using the name
of Lehto. The name of the group's parent company was changed from Päätoimija Plc
to Lehto Group Plc already in December 2015. By uniting all operations under one
Lehto-brand, the strongly growing group aimed at uniting the presentation of its
broad service offerings as well as strengthening the recognition of its brand.
In March 2016 Lehto Group Plc and Citycon Finland Oy signed a preliminary
agreement on the development project of Lippulaiva shopping center in
Espoonlahti. According to the preliminary agreement the project will be prepared
in close cooperation with Citycon, Lehto and the project's designers. The aim is
to sign the final agreement on the contract in early autumn 2016. The project
includes the building of approximately 550 apartments, a metro connection, a bus
terminal and 1,400 parking slots. The gross area for the project is 170,000 m2.
Lehto is planning on building the shopping center, bus terminal, metro
connection and parking slots as a turnkey contract project and the housing
project as developer contracting project. The estimated time of construction is
2016-2020. There are uncertainties related to the realization of this project
that are usual in this type of development projects.
On 29 March 2016 the company announced its intention to list on Nasdaq Helsinki.
On 30 March 2016 the Annual General Meeting authorized the company's board of
directors to carry out the necessary measures needed for the Initial Public
Offering.
Events after the review period
On 12 April 2016 the company announced the initial price range for its planned
initial public offering, the number of shares offered and other essential terms
of the offering.
On 14 April 2016 the company announced it has submitted the listing application
to Nasdaq Helsinki Ltd ("Helsinki Stock Exchange") for the listing of the
company's shares.
On 22 April 2016 the company announced that the initial public offering had been
oversubscribed and the subscription period discontinued.
On 27 April 2016 the company announced that its initial public offering had been
completed and the final subscription price in the public offering and the
institutional offering was EUR 5.10 per share.
On 28 April 2016 trading of the company's shares commenced on the main list of
Nasdaq OMX Helsinki.
On 3 May 2016 the company announced its 10 largest shareholders after the end of
the initial public offering.
On 18 May 2016 the company announced that the over-allotment option connected to
the initial public offering had been fully exercised.
Financial outlook for 2016
In the strategy period 2016-2020 the company's target for average annual growth
in net sales is about 10-15 %.
In 2016 growth in net sales is estimated to be at the least in accordance with
the average growth target, and operating profit is estimated to be about 8-10 %
of net sales.
The accumulation of both net sales and operating profit are estimated to focus
more on the second half of 2016. The key factors affecting net sales and
operating profit are the recognition based on delivery of developer contracting
housing production, the number of apartments sold, as well as start and sales of
social care and educational premises and other business premises projects.
Kempele 25 May 2016
Lehto Group Plc
Board of Directors
For more information:
Veli-Pekka Paloranta, CFO
+358 400 944 074
veli-pekka.paloranta@lehto.fi
Lehto Group in brief
Lehto Group is a Finnish construction and real estate group focusing on
economically driven construction. The company's mission is to be an innovative
reformer of the construction industry. The company has divided its operations
into four service areas: Business Premises, Housing, Social Care and Educational
Premises and Building Renovation. Lehto Group currently operates in Finland and
is geographically concentrated in growth centres which form a significant part
of the construction volume. The company's headquarters are located in Kempele.
The company employed 423 people at the end of the financial year 2015.
www.lehto.fi
[HUG#2015483]
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