KH Group Plc
Stock Exchange Release 21 March 2025 at 8:00 EET

KH Group Plc’s Financial Statements Release for 1 January – 31 December 2024

Net sales increased – profitability declined;
Sale process for Indoor Group initiated

This is the summary of the Financial Statements Release for 2024. The full Financial Statements Release is attached to this release and is also available on the company’s website at www.khgroup.com

KH Group announced on 13 March 2025, that it has initiated a sale process regarding its shareholding in Indoor Group. In this Financial Statements Release, Indoor Group is reported in accordance with "IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations" standard. The continuing operations include the business areas KH-Koneet and Nordic Rescue Group.

KH Group, October–December 2024 pro forma

• Net sales amounted to EUR 61.7 (50.5) million.
• Operating profit was EUR 3.4 (3.5) million.
• KH-Koneet’s net sales increased, but profitability declined slightly year-on-year.
• NRG’s net sales and operating profit were above the level of the comparison period.

KH Group, January–December 2024 pro forma

• Net sales amounted to EUR 194.0 (190.6) million.
• Operating profit was EUR 7.2 (8.1) million.

KH Group, January–December 2024 reported IFRS

• Net sales amounted to EUR 194.0 (124.0) million. The figure for the comparison period includes net sales accumulated in May–December 2023. HTJ and Indoor have been retrospectively classified as discontinued operations.
• Operating profit was EUR 5.8 (-6.7) million.
• Net profit for the period from continuing operations was EUR 1.4 (-10.4) million.
• Earnings per share (undiluted and diluted) from continuing operations were EUR 0.02 (-0.18).
• Equity per share at the end of the review period was EUR 0.84 (1.36).
• Return on equity for rolling 12 months was -46.6% (-17.5%).
• The Group’s cash and cash equivalents amounted to EUR 9.8 million at the end of the review period.
• Gearing at the end of the review period was 283.4% (195.4%).
• Gearing excluding lease liabilities was 177.3% (116.7%).
  

Proposal for the distribution of profit

The Board of Directors proposes to the Annual General Meeting that no dividend be distributed for the past financial period. The profit distribution proposal of the Board of Directors takes into account the company’s liquidity situation at the time of making the profit distribution proposal, expected cash flows during the new year and the investments required by the change in strategy.

CEO Ville Nikulainen:

"KH Group divested HTJ in July 2024 in line with its strategic direction. In March 2025 KH Group informed about initiating the Indoor Group sale process.

The Group’s pro forma net sales increased, and operating profit decreased in the review period year-on-year in October–December. KH-Koneet’s net sales increased in both operating countries, but operating profit was lower than in the comparison period. Nordic Rescue Group’s pro forma net sales and operating profit increased year-on-year during the fourth quarter. The demand for rescue vehicles in Sweden has remained at a good level but, in Finland, the budgeting phase of the wellbeing services counties has slowed down the realisation of new orders during last autumn and winter.

For Indoor Group, the general market uncertainty and the increase to the general value-added tax rate in Finland had a negative impact on net sales and operating profit. In August 2024, KH Group announced the launch of an extensive operating model reform programme aimed at improving the group company Indoor Group's profitability. The reform includes development initiatives to stabilise Indoor Group's financial situation in the challenging furniture industry market environment. The company aims for an annual operating profit improvement of at least EUR 10 million by the end of 2026. Based on current information, a significant part of the targeted profitability improvement is estimated to be realised already during 2025. KH Group published a press release concerning the reform of Indoor Group's operating model and change negotiations in December 2024. The outcome of the change negotiations was that 162 employment relationships will be terminated in Indoor Group.

In 2025, the business areas will focus on securing net sales and operating profit as well as improving the efficiency of working capital. KH Group’s change in strategy is being advanced according to plan.”

Events after the review period

In March 2025 KH Group acquired the remaining KH-Koneet Group Oy minority shares in accordance with the shareholder agreement. As a result, KH-Koneet is a fully owned subsidiary of KH Group Plc. The share purchase price was EUR 2.0 million.

On 30 September 2024, Indoor Group did not fulfil the covenants of its financing agreement, after which the company has negotiated with the financing provider on updating the financing agreement. In December 2024, Indoor Group signed an agreement with the financing provider, according to which the financing provider will not demand the repayment of loans despite the breach of covenants provided that certain conditions are met. According to the agreement, KH Group granted Indoor Group a shareholder loan of EUR 1.0 million in January 2025. After the end of the financial period, the agreement with the financing provider has been extended in steps until 31 May 2025, and the parties have negotiated on the financing agreement terms for the sale process period.

On 13 March 2025 KH Group announced to have initiated a sale process regarding its shareholding in Indoor Group Holding Oy ("Indoor Group"), of which the Company owns 58.3 per cent. KH Group has engaged a financial advisor to explore various options for its Indoor Group shareholding. No final decision has been made on the sale of Indoor Group holdings and there is no certainty as to the timing, terms or completion of any such transaction. KH Group aims to complete the process during 2025. The Company will communicate the matter in accordance with the applicable rules on the basis of its possible progress.

Future outlook

KH Group’s objective is to become an industrial group built around the KH-Koneet business and to divest other business areas in line with previous strategy. At the same time, active developments will continue regarding other business areas. Exit planning and the assessment of exit opportunities for the other business areas will also continue.

During the next few years, the aim is to invest in the growth of the core business and pay dividends after significant exits within the limits established by the balance sheet structure and financing agreements.

The guidance with the current Group structure of continuing operations for 2025 is as follows: the company estimates that both the net sales (EUR 194.0 million) and the comparable operating profit (EUR 7.2 million) will remain approximately at the same level year-on-year.

Results presentation webcast

KH Group will organise a result briefing in Finnish for analysts, investors and the media on 21 March at 1:00 pm in Studio Eero at Sanomatalo. You can follow the live webcast at https://khgroup.events.inderes.com/q4-2024 . The presentation material and webcast recording will be available on the same day on KH Group’s website.

KH GROUP PLC

Ville Nikulainen
CEO

FURTHER INFORMATION:
CEO Ville Nikulainen, tel + 358 400 459 343

DISTRIBUTION:
Nasdaq Helsinki Ltd
Main media
www.khgroup.com

KH Group Plc is a Nordic conglomerate operating in the business areas of KH-Koneet, Indoor Group and Nordic Rescue Group. We are a leading supplier of construction and earth-moving equipment, furniture and interior decoration retailer as well as rescue vehicle manufacturer. The objective of our strategy is to create an industrial group around the business of KH-Koneet. KH Group’s share is listed on Nasdaq Helsinki.