Interim
Report
January - June 2024
Condo Nordic Holding AB (publ)
Highlights
Q2 Financial Highlights
   Group net sales Q2 2024 10 166 (10 680) kSEK
   Adjusted operating profit after financial items taking into account items affecting comparability -514
(1 288) kSEK, equaling a margin of -5% (12%)
   EBITDA of -5 502 (1748) kSEK.
   Cash flow from operations before changes in working capital amounted to -1,0 (0,8) MSEK
   Operational cash flow amounted to 2,1 (0,9) MSEK
   The June sales (4,53 MSEK) was the highest-ever June sales in the company's history
Q2 Operational Highlights
    Condo Nordic Holding provided over 20 000 days of accommodation all across Finland during the period of January-June.
    completed the biggest ever projects of the company, furnishing almost 100 apartments for the clients in Raahe, Finland during the spring.
Q2 Other Highlights
    Condo Finland Oy was acquired by Upgrade Invest Nordic AB's subsidiary, Upgrade Invest Nordic 3 AB, which is now known as Condo Nordic Holding AB, on March 28, 2024, through a reverse acquisition.
    Elisa Saarinen and Anton Sikström, external board members, joined and strengthened Condo Nordic Holding AB's board.
    Condo Nordic Holding AB was approved and listed at the Spotlight Market on July 8, 2024.
Highlights after the End of the Quarter
    July was also the highest-ever July sales in the company's history.
    Organisation and warehouse streamlining executed which will give +10000 € cost savings per month compared to the Q2 setup
Financial summary                Q2 2024   Q2 2023  Jan-Jun 2024  Jan-Jun 2023
[kSEK]
Net sales                        10166     10 653   14 617        18 422
EBITDA                           -5 502    1748     -6 654        2 250
EBITDA margin                    -54,1 %   16,4 %   -45,5 %       12,2 %
Adjusted operating profit after  -514      1 288    -2 105        1 386
financial items taking into
account items affecting
comparability*
Adjusted profit margin, taking   -5 %      12 %     -14 %         8 %
into account items affecting
comparability*
Number of shares, end of period  20407347  -        20407347      -
Earnings per share, SEK          neg                neg
CEO comments
"Establishing a strong base for growth that is sustainable and profitable."
This quarter was an important milestone in Condo Nordic Holding AB's history. We are now listed on the Spotlight Stock Market, which will give us new opportunities for visibility and e.g. acquisitions.
In the second quarter of 2024, we experienced positive growth trend  by continuing to execute our profitable growth strategy, focusing on enhancing operational and financial performance.
In 2017, Condo Finland Oy was established to provide housing solutions for project teams. The company focuses on project accommodation, catering to corporate clients for several months to multiple years. Condo has a loyal customer base and an extensive network of lease providers in Finland, as well as partnerships in other European countries. Our corporate clients typically come from non-cyclical industries like renewable energy, industrial projects, and transport infrastructure. Besides project accommodation, Condo Nordic Holding AB is building a portfolio of permanently furnished apartments in big cities to offer short-term accommodation to retail customers.
Revenue growth and improved profitability in the second quarter
Due to a delay with some big projects the Group net sales for the second quarter was 3 % lower than in Q2 in 2023, however the trend was growing and the sales in June was over 40 % higher than in 2023. Based on the current sales outlook the board expects the total revenue in 2024 to reach 35-40 MSEK as mentioned in the listing memorandum.
Cash flow from operations before changes in working capital was -1,0 (0,8) MSEK and operational cash flow amounted to 2,1 (0,9) MSEK.
Key market elements
Condo Nordic Holding AB has identified key market elements that support the Company's business idea and growth strategy.
1. Longer Stays: Furnished apartments are preferred for longer stays due to their more homelike environment and extensive space.
2. Diversification of Accommodation Options: Customers are increasingly seeking alternatives to traditional hotels, and furnished apartments provide a viable option for immersing themselves in local lifestyles and enjoying home comforts.
3. Rise in Business Travel: Many companies favor furnished apartments for accommodating employees during long-term business assignments because they offer better value for extended stays.
4. Importance of Location: Furnished apartments are often situated in city centres or residential areas, attracting customers who prefer proximity to local attractions and amenities.
5. Need for Privacy and Independence: Furnished apartments afford customers greater privacy and autonomy with separate living and sleeping areas and fully equipped kitchens for meal preparation.
Ville Valorinta, CEO
Condo Nordic Holding AB
Financial development
April - June 2024
Net sales
The figures in brackets refer to the previous period. In Q2 2024, net sales decreased by approximately 5% to SEK 10,2 million (compared to SEK 10,7 million in the same period previous year).This decrease was primarily caused by clients delaying large projects. However, these projects have now commenced, and the Company anticipates they will positively impact the remainder of the year.
Gross profit
The result after financial items in Q2 2024 amounted to SEK -6,7 million (1,3), corresponding to a negative margin. The negative margin is due to low sales and the Company's fixed cost structure. Furthermore, listing costs of approximately 5,5 MSEK affect the result in the period.
The period's result after tax amounted to SEK -6,6 (1,2) million.
EBITDA
EBITDA amounted to SEK -5,5 (1,7) million for the period.
Cash flow
Cash flow amounted to SEK -0,2 (0,8) million for the period.
January - June 2024
Net sales
The figures in brackets refer to the previous period. From January to June 2024, net sales decreased by approximately 20% to SEK 14,6 million (compared to SEK 18,4 million in the same period previous year). This decrease was primarily caused by clients delaying large projects. However, these projects have now commenced, and the Company anticipates they will positively impact the remainder of the year.
Gross profit
The result after financial items from January to June 2024 amounted to SEK -8,3 million (-3,9), corresponding to a negative margin. The negative margin is due to low sales and the Company's fixed cost structure. Furthermore, listing costs of approximately SEK 5,5 million affect the result in the period.
The period's result after tax amounted to SEK -8,2 (1,2) million.
EBITDA
EBITDA amounted to SEK -6,6 (2,3) million for the period.
Cash flow
Cash flow amounted to SEK -0,3 (1,4) million for the period.
Summary of financial reports
Condensed consolidated statement of comprehensive income
+-------------------------------+-------+------++-------+-------+---------+
|                               |April-June    ||January-June   |Full year|
+-------------------------------+-------+------++-------+-------+---------+
|[kSEK]                         |2024   |2023  ||2024   |2023   |2023     |
+-------------------------------+-------+------++-------+-------+---------+
|Net sales                      |10 166 |10 653||14 617 |18 422 |32495    |
+-------------------------------+-------+------++-------+-------+---------+
|Other incomes                  |0      |27    ||7      |71     |161      |
+-------------------------------+-------+------++-------+-------+---------+
|Total income                   |10 166 |10 680||14624  |18 493 |32656    |
+-------------------------------+-------+------++-------+-------+---------+
|Operating expenses             |       |      ||       |       |         |
+-------------------------------+-------+------++-------+-------+---------+
|Raw materials and consumables  |-5 748 |-4 692||-8 829 |-8 042 |-14572   |
+-------------------------------+-------+------++-------+-------+---------+
|Other external expenses        |-1 603 |-1 911||-2 337 |-3 468 |-6722    |
+-------------------------------+-------+------++-------+-------+---------+
|Personnel costs                |- 1 527|-1 238||-2 427 |-2 427 |-4066    |
+-------------------------------+-------+------++-------+-------+---------+
|Listing cost                   |-5 510 |0     ||-5 519 |0      |0        |
+-------------------------------+-------+------++-------+-------+---------+
|Other operating expenses       |-1 281 |-1091 ||-2 166 |-2 307 |-4317    |
+-------------------------------+-------+------++-------+-------+---------+
|Total operating expenses       |-15 668|-8 932||-21 278|-16 243|-34981   |
+-------------------------------+-------+------++-------+-------+---------+
|EBITDA                         |-5 502 |1 748 ||-6 654 |2 250  |2 979    |
+-------------------------------+-------+------++-------+-------+---------+
|Depreciation and write-downs of|-1 019 |-362  ||-1 297 |-705   |-1393    |
|intangible and tangible fixed  |       |      ||       |       |         |
|assets                         |       |      ||       |       |         |
+-------------------------------+-------+------++-------+-------+---------+
|Operating profit (EBIT)        |-6 521 |1 386 ||-7 951 |1 545  |1 586    |
+-------------------------------+-------+------++-------+-------+---------+
|Results from financial items   |       |      ||       |       |         |
+-------------------------------+-------+------++-------+-------+---------+
|Financial income               |1      |0     ||1      |0      |3        |
+-------------------------------+-------+------++-------+-------+---------+
|Financial costs                |-172   |-98   ||-342   |-159   |-481     |
+-------------------------------+-------+------++-------+-------+---------+
|Financial net                  |-171   |-98   ||-341   |-159   |-478     |
+-------------------------------+-------+------++-------+-------+---------+
|                               |       |      ||       |       |         |
+-------------------------------+-------+------++-------+-------+---------+
|Profit before tax              |-6 692 |1 288 ||-8 292 |1 386  |1 108    |
+-------------------------------+-------+------++-------+-------+---------+
|                               |       |      ||       |       |         |
+-------------------------------+-------+------++-------+-------+---------+
|Current tax                    |89     |-81   ||88     |-233   |-356     |
+-------------------------------+-------+------++-------+-------+---------+
|The result of the period       |-6 603 |1 208 ||-8 204 |1 153  |752      |
+-------------------------------+-------+------++-------+-------+---------+
Condensed consolidated statement of financial position
[kSEK]                          June 30, 2024  June 30, 2023  December 31, 2023
Assets
Non-current assets
Intangible assets               50 872         1 322          1177
Tangible non-current assets     5 287          4 741          3824
Financial non-current assets    5 089          3 479          5133
Total non-current assets        61 248         9 542          10134
Current assets
Accounts receivable             1 341          -2 463         207
Other receivables               1 430          3 671          720
Prepayments and accrued income  492            207            54
Cash and bank balances          225            3 289          136
Total current assets            3 488          4 703          1116
Total assets                    64 736         14 245         11250
Equity and liabilities
Equity                          49 074         5 338          924
Non-current liabilities         3 717          3 509          2944
Total current liabilities       11 944         5 398          7 382
Total equity and liabilities    64 736         14 245         11250
Condensed consolidated statement of cash flow
April            January-June    Full year
-June
[kSEK]                             2024   2023      2024    2023    2023
Operating Activities
Profit before tax                  -6     1288      -8 292  1 386   1186
692
Non-cash items                     6 051  392       7 108   675     1470
Taxes paid                         -340   -879      -389    -464    -232
Cash flow from operating           -981   801       -1 573  1 597   2424
activities before changes in
working capital
Increase/decrease in operating     -1     -1 726    -2 282  951     -849
receivables                        792
Increase/decrease in operating     4 867  1 859     5 314   -197    1237
liabilities
Changes in working capital         3 075  133       3 032   754     388
Cash flow from operating           2 094  934       1 459   2 351   2812
activities
Cash flow from investing           -2     -879      -2 678  -1 646  -2284
activities                         269
Cash flow from financing           0      788       917     718     -2253
activities
Cash flow for the period           -176   843       -303    1 423   -1725
Available funds at beginning of    401    2 446     528     1 866   1862
the period
Cash flow for the period           -176   843       -303    1 423   -1725
Available funds at the end of the  225    3 289     225     3 289   137
period
Condensed income statement for the parent company
The parent company Condo Nordic Holding AB (publ) (CIT 559432-1571) was registered on April 28, 2023, with the Swedish Companies Registration Office.
The current business name was registered on June 20, 2024.
The parent company, Condo Nordic Holding AB, performs group-wide functions for company management and stock exchange-related matters. The group's operating company is the subsidiary Condo Finland Oy.
No comparative figures are reported for the parent company, as the parent company was only registered on April 28, 2023.
+-------------------------------+----+----++----+----+---------+
|                               |April    ||January  |April 28 |
|                               |-June    ||-June    |-December|
|                               |         ||         |31       |
+-------------------------------+----+----++----+----+---------+
|[kSEK]                         |2024|2023||2024|2023|2023     |
+-------------------------------+----+----++----+----+---------+
|Net sales                      |0   |0   ||0   |0   |0        |
+-------------------------------+----+----++----+----+---------+
|Other incomes                  |0   |0   ||0   |0   |0        |
+-------------------------------+----+----++----+----+---------+
|Total income                   |0   |0   ||0   |0   |0        |
+-------------------------------+----+----++----+----+---------+
|Operating expenses             |    |    ||    |    |         |
+-------------------------------+----+----++----+----+---------+
|Raw materials and consumables  |0   |0   ||0   |0   |0        |
+-------------------------------+----+----++----+----+---------+
|Other external expenses        |-34 |0   ||-37 |0   |-82      |
+-------------------------------+----+----++----+----+---------+
|Personnel costs                |0   |0   ||0   |0   |0        |
+-------------------------------+----+----++----+----+---------+
|Listing cost                   |-206|0   ||-215|0   |0        |
+-------------------------------+----+----++----+----+---------+
|Other operating expenses       |0   |0   ||0   |0   |0        |
+-------------------------------+----+----++----+----+---------+
|Total operating expenses       |-240|0   ||-251|0   |-82      |
+-------------------------------+----+----++----+----+---------+
|EBITDA                         |-240|0   ||-251|0   |-82      |
+-------------------------------+----+----++----+----+---------+
|Depreciation and write-downs of|0   |0   ||0   |0   |0        |
|intangible and tangible fixed  |    |    ||    |    |         |
|assets                         |    |    ||    |    |         |
+-------------------------------+----+----++----+----+---------+
|Operating profit (EBIT)        |-240|0   ||-251|0   |-82      |
+-------------------------------+----+----++----+----+---------+
|Results from financial items   |    |    ||    |    |         |
+-------------------------------+----+----++----+----+---------+
|Financial income               |0   |0   ||0   |0   |3        |
+-------------------------------+----+----++----+----+---------+
|Financial costs                |0   |0   ||0   |0   |0        |
+-------------------------------+----+----++----+----+---------+
|Financial net                  |0   |0   ||0   |0   |3        |
+-------------------------------+----+----++----+----+---------+
|                               |    |    ||    |    |         |
+-------------------------------+----+----++----+----+---------+
|Profit before tax              |-240|0   ||-251|0   |-79      |
+-------------------------------+----+----++----+----+---------+
|                               |    |    ||    |    |         |
+-------------------------------+----+----++----+----+---------+
|Current tax                    |49  |0   ||49  |0   |0        |
+-------------------------------+----+----++----+----+---------+
|The result of the period       |-190|0   ||-202|0   |-79      |
+-------------------------------+----+----++----+----+---------+
Condensed balance sheet for the parent company
[kSEK]                        June 30, 2024  June 30, 2023  December 31, 2023
Assets
Non-current assets            51 479         0              50
Current assets                186            500            392
Total assets                  51 665         500            442
Equity and liabilities
Equity                        51 648         500            421
Non-current liabilities       0              0              0
Total current liabilities     17             0              21
Total equity and liabilities  51 665         500            442
Notes
General information about the Group
The Condo Nordic Holding Group includes the parent company Condo Nordic Holding AB (CIT 559432-1571) and the subsidiary Condo Finland Oy (CIT 2777073-4), which has a wholly owned subsidiary, Suomen Majoituspalvelu Oy (CIT 2558565-8). The parent company is a Swedish public limited company. The board has its seat in the Stockholm municipality. The company's registered address is ℅ Aalto Capital, Riddargatan 17, 114 57 Stockholm.
Accounting principles
Condo Nordic Holding AB prepares accounts following the Annual Accounts Act and The Accounting Board's general advice BFNAR 2012:1 Annual report and consolidated accounts (K3).
Group accounts
In the consolidated accounts, Condo Nordic Holding AB's acquisition of Condo Finland Oy is reported according to the rules on reverse acquisition. This means that Condo Finland Oy is reported as the acquiring company even though Condo Nordic Holding AB is, legally speaking, the parent company.
Reverse acquisition and listing cost
Applied consolidated accounting and the rules for reverse acquisition where Condo Finland Oy is reported as the acquiring company means, among other things, that an exceptional cost of a non-recurring nature, a listing cost (surplus value) of SEK 5,304 thousand arises and charges the operating expenses in the Condensed consolidated statement of comprehensive income for Q2 2024.
Comparative numbers
The group's comparative figure for 2023 refers to the legal subsidiary Condo Finland Oy, which, from an accounting point of view, constitutes the parent company following the principle of reverse acquisition. As of April 28, 2023, the group's income and balance sheets include the legal parent company, Condo Nordic Holding AB.
Estimates and assessments
Preparing the report requires that company management make judgments, estimates, and assumptions that affect the application of the accounting principles and the reported amounts of assets, liabilities, income, and costs. Actual outcomes may differ from these estimates and judgments. The estimates and assumptions are reviewed regularly.
Staff
The group's number of employees amounted to that of the period ending in 10 (8), of which 5 (4) were men and 5 (4) women.
Transactions with related parties
There is an outstanding loan of EUR 422 thousand to Opema Oy, owned by Ilkka Holmlund 55%, Ville Valorinta 30%, and Karri Rantasila 15%. The original plan was for Opema to expand its hotel business and eventually merge with Condo. However, due to the post-COVID environment, Opema required working capital to keep developing the hotel business. To meet this need, it was decided that Condo would provide the necessary working capital through a loan to Opema. Later, in late 2023, a decision was made for Condo to focus on project accommodation and furnished apartments exclusively. As a result, the hotel business was never merged into Condo. The loan is interest-free and matures on January 31, 2029. During the loan term, it can be continuously amortised with cash and dividend offsets. A bankruptcy application was filed against Opema at the end of June 2024. The process is still ongoing and negotiations underway about the application being withdrawn. Condo has guarantees for the loans to Opeman mentioned above and hence no write-downs have been considered necessary at this point.
Material risks and uncertainties
The group's overall risk assessment is described in the Listing Memorandum for Condo Nordic Holding AB on the Spotlight Stock Market in July 2024.
Review by auditor
The group's auditor has not reviewed this interim report.
Upcoming reports
+-------------------------------------+-----------------+
|Interim report January-September 2024|November 22, 2024|
+-------------------------------------+-----------------+
|Year-end report 2024                 |February 21, 2025|
+-------------------------------------+-----------------+
|Annual report 2024                   |March 21, 2025   |
+-------------------------------------+-----------------+
|Annual general meeting               |May 14, 2025     |
+-------------------------------------+-----------------+
Board of Directors assurance
The Board of Directors and the CEO confirm that this report provides a fair overview of the Company's business, position and results and describes the significant risks and uncertainties facing the Company and its subsidiaries.
Stockholm, August 23, 2024