Press release from Companies
Published: 2024-08-23 11:27:00
Condo sees good development in business after challenging start of the year
Interim
Report
January - June 2024
Condo Nordic Holding AB (publ)
Highlights
• Group net sales up 25% from Q2 2023 to 10 (8,0) MSEK
• Gross profit of 1,5 (0,5) MSEK, equaling a margin of 31% (21%)
• EBITDA of 0,4 (0,0) MSEK equaling a margin of 10% (0%).
• Basic and diluted earnings per share amounted to 0,03 (0) SEK
• Cash flow from operations before changes in working capital amounted to 1,0 (-1,0) MSEK
• Operational cash flow amounted to -1,0 (-0,5) MSEK
• The June sales (XX) was the highest-ever June in the company’s history
• 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 during the spring.
• 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.
• July was also the highest-ever July sales in the company’s history.
• Organisation and warehouse streamlining executed which will give +10 000 € cost savings per month compared to the Q2 setup
|
Financial summary |
Q2 2024 |
Q2 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
|
Net sales |
10 000 |
8 000 |
13 000 |
11 000 |
|
EBITDA |
800 |
500 |
1 000 |
800 |
|
EBITDA margin |
8 % |
6 % |
8 % |
7 % |
|
Adjusted operating profit after financial items taking into account items affecting comparability* |
-285 |
-346 |
-1 393 |
-893 |
|
Adjusted profit margin, taking into account items affecting comparability* |
|
|
|
|
|
Number of shares, end of period |
20 407 347 |
- |
20 407 347 |
- |
|
Earnings per share, SEK |
|
|
|
|
|
Available funds |
|
|
|
|
CEO comments
This quarter was a particularly important milestone in Condo’s history. The mother company of the group, Condo Nordic Holding AB is now listed on the Spotlight Stock Market, which will give us great opportunities for growth, for example in form of using the company share as an element in possible acquisitions.
In the second quarter of 2024, the projects delayed from Q1 eventually started which shows especially in June which saw the best June sales in the history of the company. Accordingly the July sales will be all-time July high.
Condo Finland Oy (previously Condo Group Oy) was established in 2017 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.
Group net sales for the quarter grew 15% and totaled 10 (8,0) MSEK. The gross margin was 31% (28%), an increase of 3,0 percentage points versus the same quarter last year. The EBITDA margin improved to 10%, compared to a margin of 5,0% in Q2 2023.
Cash flow from operations before changes in working capital was 1,0 (-1,0) MSEK and
operational cash flow amounted to 0,2 (0,1) MSEK. The improvement was derived from our strategic shift to focus on profitable growth.
Condo Nordic Holding AB has identified key market elements that support the Company’s business idea and growth strategy.
Ville Valorinta, CEO
Condo Nordic Holding AB
Financial development
April - June 2024
The figures in brackets refer to the previous period. From January to March 2024, net sales decreased by approximately 40% to SEK 4,6 million (compared to SEK 7,8 million in the previous period). 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.
The result after financial items from January to March 2024 amounted to SEK -1,6 million (0,1), corresponding to a negative margin. The negative margin is due to low sales and the Company’s fixed cost structure.
The period's loss after tax amounted to SEK -1,6 (0) million.
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The figures in brackets refer to the previous period. From January to March 2024, net sales decreased by approximately 40% to SEK 4,6 million (compared to SEK 7,8 million in the previous period). 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.
The result after financial items from January to March 2024 amounted to SEK -1,6 million (0,1), corresponding to a negative margin. The negative margin is due to low sales and the Company’s fixed cost structure.
The period's loss after tax amounted to SEK -1,6 (0) million.
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Summary of financial reports
|
|
April-June |
|
January-June |
Full year |
||
|
[kSEK] |
2024 |
2023 |
|
2024 |
2023 |
2023 |
|
Net sales |
0 |
0 |
|
|
|
32 495 |
|
Other incomes |
0 |
0 |
|
|
|
161 |
|
Total income |
0 |
0 |
|
0 |
0 |
32 656 |
|
Operating expenses |
|
|
|
|
|
|
|
Raw materials and consumables |
0 |
0 |
|
|
|
-14 572 |
|
Other external expenses |
0 |
0 |
|
0 |
0 |
-6 722 |
|
Personnel costs |
0 |
0 |
|
0 |
0 |
-4 066 |
|
Listing cost |
0 |
0 |
|
0 |
0 |
-5 304 |
|
Other operating expenses |
0 |
0 |
|
0 |
0 |
-4 317 |
|
Total operating expenses |
0 |
0 |
|
0 |
0 |
-34 981 |
|
EBITDA |
0 |
0 |
|
0 |
0 |
-2 325 |
|
Depreciation and write-downs of intangible and tangible fixed assets |
0 |
0 |
|
0 |
0 |
-1 393 |
|
Operating profit (EBIT) |
0 |
0 |
|
0 |
0 |
-3 718 |
|
Results from financial items |
|
|
|
|
|
|
|
Financial income |
0 |
0 |
|
0 |
0 |
3 |
|
Financial costs |
0 |
0 |
|
0 |
0 |
-481 |
|
Financial net |
0 |
0 |
|
0 |
0 |
-478 |
|
|
|
|
|
|
|
|
|
Profit before tax |
0 |
0 |
|
0 |
0 |
-4 196 |
|
|
|
|
|
|
|
|
|
Current tax |
0 |
0 |
|
0 |
0 |
-356 |
|
The result of the period |
0 |
0 |
|
0 |
0 |
-4 552 |
|
[kSEK] |
June 30, 2024 |
June 30, 2023 |
December 31, 2023 |
|
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Intangible assets |
0 |
0 |
1 177 |
|
Tangible non-current assets |
0 |
0 |
3 824 |
|
Financial non-current assets |
0 |
0 |
5 133 |
|
Total non-current assets |
0 |
0 |
10 134 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Accounts receivable |
0 |
0 |
207 |
|
Other receivables |
0 |
0 |
720 |
|
Prepayments and accrued income |
0 |
0 |
54 |
|
Cash and bank balances |
0 |
0 |
136 |
|
Total current assets |
0 |
0 |
1 116 |
|
Total assets |
0 |
0 |
11 250 |
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
Equity |
0 |
0 |
924 |
|
Non-current liabilities |
0 |
0 |
2 944 |
|
Total current liabilities |
0 |
0 |
7382 |
|
Total equity and liabilities |
0 |
0 |
11 250 |
|
|
April-June |
|
January-June |
Full year |
||
|
[kSEK] |
2024 |
2023 |
|
2024 |
2023 |
2023 |
|
Operating Activities |
|
|
|
|
|
|
|
Profit before tax |
0 |
0 |
|
0 |
0 |
1 186 |
|
Non-cash items |
0 |
0 |
|
0 |
0 |
1 470 |
|
Taxes paid |
0 |
0 |
|
0 |
0 |
-232 |
|
Cash flow from operating activities before changes in working capital |
0 |
0 |
|
0 |
0 |
2 424 |
|
Increase/decrease in operating receivables |
0 |
0 |
|
0 |
0 |
-849 |
|
Increase/decrease in operating liabilities |
0 |
0 |
|
0 |
0 |
1 237 |
|
Changes in working capital |
0 |
0 |
|
0 |
0 |
388 |
|
Cash flow from operating activities |
0 |
0 |
|
0 |
0 |
2 812 |
|
Cash flow from investing activities |
0 |
0 |
|
0 |
0 |
-2 284 |
|
Cash flow from financing activities |
0 |
0 |
|
0 |
0 |
-2 253 |
|
Cash flow for the period |
0 |
0 |
|
0 |
0 |
-1 725 |
|
Available funds at beginning of the period |
0 |
0 |
|
0 |
0 |
1 862 |
|
Cash flow for the period |
0 |
0 |
|
0 |
0 |
-1 725 |
|
Available funds at the end of the period |
0 |
0 |
|
0 |
0 |
137 |
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-June |
|
January-June |
April 28-December 31 |
||
|
[kSEK] |
2024 |
2023 |
|
2024 |
2023 |
2023 |
|
Net sales |
0 |
|
|
0 |
|
0 |
|
Other incomes |
0 |
|
|
0 |
|
0 |
|
Total income |
0 |
|
|
0 |
|
0 |
|
Operating expenses |
|
|
|
|
|
|
|
Raw materials and consumables |
0 |
|
|
0 |
|
0 |
|
Other external expenses |
0 |
|
|
0 |
|
-82 |
|
Personnel costs |
0 |
|
|
0 |
|
0 |
|
Listing cost |
0 |
|
|
0 |
|
0 |
|
Other operating expenses |
0 |
|
|
0 |
|
0 |
|
Total operating expenses |
0 |
|
|
0 |
|
-82 |
|
EBITDA |
0 |
|
|
0 |
|
-82 |
|
Depreciation and write-downs of intangible and tangible fixed assets |
0 |
|
|
0 |
|
0 |
|
Operating profit (EBIT) |
0 |
|
|
0 |
|
-82 |
|
Results from financial items |
|
|
|
|
|
|
|
Financial income |
0 |
|
|
0 |
|
3 |
|
Financial costs |
0 |
|
|
0 |
|
0 |
|
Financial net |
0 |
|
|
0 |
|
3 |
|
|
|
|
|
|
|
|
|
Profit before tax |
0 |
|
|
0 |
|
-79 |
|
|
|
|
|
|
|
|
|
Current tax |
0 |
|
|
0 |
|
0 |
|
The result of the period |
0 |
|
|
0 |
|
-79 |
|
[kSEK] |
June 30, 2024 |
June 30, 2023 |
December 31, 2023 |
|
Assets |
|
|
|
|
Non-current assets |
0 |
0 |
50 |
|
Current assets |
0 |
0 |
392 |
|
Total assets |
0 |
0 |
442 |
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
Equity |
0 |
0 |
421 |
|
Non-current liabilities |
0 |
0 |
0 |
|
Total current liabilities |
0 |
0 |
21 |
|
Total equity and liabilities |
0 |
0 |
442 |
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.
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).
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.
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.
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.
Preparing the year-end 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.
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.
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.
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.
The group's auditor has not reviewed this interim report.
|
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
