KH Group PLC
Bursus version May 6, 2025 at 8:00 am Est
KH Group PLC’s Business Review of January-March 2025: moderate growth and improvement in profitability
This is the summary of the business review for January-March 2025. The full semester report is attached to this version and is also available on the company’s website in www.khgroup.com.
KH group, January-March 2025 IFRS
- Net sales amounted to EUR 41.8 (40.4) million. HTJ and Indoor were retrospectively classified as abandoned operations.
- The comparable operating profit was 0.2 (-0.1) million euros.
- The operating profit was -0.1 (-0.5) million euros.
- The net profit for the period from continuous operations was -0.4 (-1.7) million euros.
- The profit by action (not diluted and diluted) of continuous operations was -0.01 EUR (-0.03).
- Capital capital per share at the end of the examination period were 0.85 EUR (1.30).
- The equity yield for the 12 -month rolling was -43.4% (-19.2%).
- The group’s cash and cash equivalents amounted to 4.5 million euros at the end of the exam period.
- The gear at the end of the examination period was 291.3% (225.3%).
- Education to the exclusion of rental liabilities was 187.9% (141.6%).
CEO Nikulainen City:
“”Net sales and operating benefits of the continuous operations group increased moderately in annual sliding during the January-March exam period. Net sales and KH-KONEET operating profit increased in Finland and Sweden despite the weakened market situation. Sales of excavators of heavy caterpillars in Finland, in particular, increased significantly in annual sliding. The net sales of Nordic Rescue Group decreased, but the operating profit for the first quarter was equally with the comparison period. The financial situation of the counties of the well-being services became clearer after the start of the year and, consequently, the order book for operations of the Nordic Rescue Group in Finland was strengthened during the exam period. In Sweden, the demand for rescue vehicles has remained at a good level.
In the interior group, the general uncertainty on the market continued to have a negative impact on net sales and operational profit. The vast program to reform the operating model aimed at improving the profitability of the interior group targets an annual improvement in operating profit of at least 10 million euros by the end of 2026. An important part of the improvement in targeted profitability should already be carried out during 2025. Change negotiations concluded in December 2024 will generate annual savings in terms of cost of wages of approximately 6 to 7 million euros, will improve the result of the company already during the secondary school.
As a strategic measure, KH Group announced in March 2024 that it had initiated a sales process for the interior group. KH Group has initiated a financial advisor to explore various options for his participation as a indoor group. No final decision was made on the sale of inner group holdings and there is no certainty as to the time, on the conditions or the completion of such a transaction. The KH group aims to complete the process in 2025. Another strategic step was completed in March 2025 while the KH group acquired the KH-KONEET group remaining of the OY minority actions in accordance with the shareholders’ agreement and KH-KONEET is now a entirely belonging to KH Group. The purchase price of shares was 2.0 million euros.
In 2025, the activity sectors will focus on securing net sales and operating profits as well as improving the efficiency of the working capital. The KH group’s strategy change is advanced according to the plan. “”
Events after the examination period
The board of directors of KH Group PLC has decided to establish an action-based action regime for key employees of KH-KONEET. The plan replaces the action plan based on the performance announced on May 31, 2024. The aim of the new program is to align the objectives of shareholders and key employees in order to increase the value of long -term shareholders, to guide key employees to achieve the strategic objectives of the company, to initiate their commitment to the company and to offer them a program of competitive incentive based on the ear and the accumulation of KH Shares. The performance-based action regime has one (1) performance period of two (2) years, corresponding to financial periods 2025-2026. The program offers key employees the possibility of gaining KH group actions according to performance
Financial objectives and future perspectives
KH Group’s objective is to become an industrial group built around the KH-KONEET company and to exceed other areas of activity in accordance with the group’s strategy. At the same time, active developments will continue concerning other areas of activity. The exit planning and the assessment of exit possibilities for other areas of activity will also continue.
In the coming years, the objective is to invest in the growth of the main company and to pay dividends after significant outings within the limits established by the balance sheet structure and the financing agreements.
The directives with the current group structure of continuous operations for 2025 are as follows: the company estimates that net sales (194.0 million euros) and comparable operating profit (7.2 million euros) will remain approximately at the same level in annual shift in annual one year.
KH Group PLC
Nikulainen city
CEO
Additional information:
CEO Nikulainen City, Tel. +358 400 459 343
DISTRIBUTION:
Nasdaq Helsinki Ltd
Major media
www.khgroup.com
KH Group PLC is a Nordic conglomerate operating in the activity zones of KH-Koneet, Nordic Rescue Group and Group Indoor. We are one of the main suppliers of construction and moving equipment, the manufacturer of rescue vehicles as well as the furniture and interior decoration retailer. The objective of our strategy is to create an industrial group around KH-KONEET affairs. KH Group’s share is listed on Nasdaq Helsinki.
