XCSE:HUSCO ESEF Annual Report
HusCompagniet A/S (XCSE:HUSCO)
ESEF Annual Report
2023-08-22
For: 2023-06-30
View Original
Added on
September 22, 2026
1
17 August 2023
Company Announcement 21/2023
Interim financial report for the period 1 January – 30 June 2023
HusCompagniet confirms outlook for 2023
The first half of 2023 was characterised by increased demand compared to second half of
2022 and ended with 445 houses sold. This is in line with expectations but still below historic
average. The financial result for the first half of 2023 was however affected by the low sales
for newbuild in second half of 2022 and HusCompagniet generated revenue of DKK 1,280
million and EBITDA of DKK 58 million. The second quarter included a re-evaluation of
provisions related to prior years of DKK 15m.
“
The first half of 2023 has been satisfactory on the back of a very challenged 2022. We are pleased
to see that demand in the detached segment is increasing and profitability is improving”
says CEO
Martin Ravn-Nielsen and continues.
“We are also pleased to see that our customer satisfaction continues to be at a very high level”
Selected key highlights H1 2023
DKKm
Q2 2023
Q2 2022
Change
H1 2023
H1 2022
Change
Houses sold (units)
219
358
-39%
445
732
-39%
Houses delivered (units)
265
526
-50%
609
1,006
-39%
Order backlog, gross
1,659
3,497
-53%
1,659
3,497
-53%
Order backlog, net
1,101
2,547
-57%
1,101
2,547
-57%
Revenue
624
1,094
-43%
1,280
2,266
-44%
Gross profit
118
207
-43%
267
425
-37%
EBITDA (bsi)*
16
76
-79%
58
175
-67%
Special items
1
-1
-200%
-1
-1
0%
EBIT
6
64
-91%
35
151
-77%
Gross margin (bsi)*
18.9%
18.9%
0,0 ppt.
20.9%
18.8%
2.1 ppt.
EBITDA margin (bsi)*
2.5%
6.9%
-4.4 ppt.
4.5%
7.7%
-3.2 ppt.
EBIT margin
0.9%
5.8%
-4.9 ppt.
2.7%
6.7%
-4.0 ppt.
Contract assets, gross
522
800
-35%
522
800
-35%
Available cash**
344
262
31%
344
262
31%
Net interest-bearing debt
-489
-897
-45%
-489
-897
-45%
NIBD/LTM EBITDA
2.5x
2.2x
0.3x
2.5x
2.2x
0.3x
FTEs end of period
385
463
-78
385
463
-78
*Before special items **With a RCF facility agreement of DKK 250 million
Highlights
• HusCompagniet generated revenue of DKK 1,280 million in H1 2023 driven by fewer
deliveries.
• The first half of 2023 was characterised by increased demand compared to second half of
2022 and ended with 445 houses sold against 225 in H2 2022. The sales levels are st
ill
below historical average and continued to be affected by current market conditions with
higher interest rates and economic uncertainty
.
2
• EBITDA before special items (bsi) totalled DKK 58 million including a re-evaluation of
provisions related to prior years
of DKK 15 million. This corresponds to an EBITDA
m
argin bsi of 4.5% and 5.7% excluding the provision
.
• H
usCompagniet completed a capital raise in May 2023 and entered into a new loan facility
agreement. With completion of the capital raise of 19.22% and the refinancing in place with
the financing banks, HusCompagniet secured liquidity and flexibility to be able to carry out
strategic investments and implement commercial initiatives.
• On 30 June 2023 net debt was DKK 489 million and with a leverage ratio (NIBD/LTM
EBITDA) of 2.5x
.
Outlook for 2023
We reiterate the full-year 2023 guidance issued on 4 May 2023
• Revenue is expected to be DKK 2,250 -2,500 million
• EBITDA before special items is expected to be DKK 100 – 130 million
• Operating profit (EBIT) is expected to be DKK 50 – 75 million
Webcast and conference call
HusCompagniet will host a conference call for investors and analysts at 13:00 (CEST) today,
Thursday 17 August 2023. The conference call and presentation will be available from
HusCompagniet’s investor website.
C
onference call dial-in numbers for investors and analysts:
Participant Dial-in:
Denmark: +45-7-8768490
France: +33-1-81221259
Germany: +49-30-21789327
Sweden: +46-8-1241-0952
United Kingdom: +44-203-7696819
United States: +1 646-787-0157
PIN: 649396
Webc
ast link:
https://huscompagniet-events.eventcdn.net/events/Q2-2023
For additional information, please contact:
Jesper Høybye Group CFO +45 30 58 46 42
3
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
DKK'm
Q2 2023
Q2 2022
H1 2023
H1 2022
2022
Income statement
Revenue
624
1.094
1,280
2,266
4,330
Gross profit
118
207
267
425
837
EBITDA before special items
16
76
58
175
348
EBITDA after special items
17
75
57
174
316
Operating profit (EBIT) before special items
5
64
36
152
300
Operating profit (EBIT)
6
64
35
151
268
Financial income /expenses, net
-13
-5
-22
-10
-27
Profit for the period (continued operations)
-5
45
10
109
190
Profit for the period (discontinued operations)
-3
-9
-3
-10
-20
Profit for the period
-8
36
7
99
170
Balance sheet
Total assets
3,377
3,639
3,377
3,639
3,572
Contract assets, net
425
737
425
737
626
Net working capital
461
657
461
657
511
Net interest-bearing debt (NIBD)
489
897
489
897
768
Equity
2,064
1,814
2,064
1,814
1,881
Cash flow
Cash flow from operating activities
65
13
97
7
268
Cash flow from investing activities
-4
-10
-11
-17
-117
- Hereof from investment in property, plant and equipment
-1
-4
-5
-9
-22
Cash flow from financing activities
18
12
2
-29
-192
Free cash flow
61
3
87
-10
152
Key figures
Revenue growth
-43,0%
0.9%
-43.5%
11.0%
0.3%
Gross margin
18.9%
18.9%
20.9%
18.8%
19.3%
EBITDA before special items
2.5%
6.9%
4.5%
7.7%
8.0%
EBITDA margin after special items
2.7%
6.9%
4.4%
7.7%
7.3%
Earnings Per Share (EPS Basic), DKK
-0.4
2.2
0.3
6.0
9.4
Diluted earnings per share (EPS-D) (DKK)
-0.4
2.2
0.3
5.9
9.4
Dividend per share, DKK
0
-
0
-
0
Share price end of period, DKK
59
63
59
63
41
Market value, DKK billion
1.3
1.1
1.3
1.1
0.7
ROIC
0.2%
2.3%
1.3%
5.4%
9.8%
ROIC (adjusted for goodwill)
0.9%
7.9%
5.2%
18.9%
37.1%
NIBD/LTM EBITDA
2.5
2.2
2.5
2.2
2.4
Refer to the consolidated financial statements 2022 for definition of key figures
4
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Business Update
During the first half of 2023 we saw a
recovery in the demand for newbuild
compared to the second half of 2022. This
was primarily driven by increased activity in
the general housing market, a more stable
development in the interest rate, lower
inflation and improved consumer confidence.
This is particular applicable to the detached
market in Denmark.
The higher demand for newbuild during the
first six months of 2023 resulted in 445
houses sold. The activity level is still below a
historic average and uncertainty remains
high going forward despite increased
visibility.
The semi-detached segment experiences an
increase in activity and dialogue with
professional investors. We do however
experience a market that is impacted by
uncertainty and a minimum of deals are
committed. The return requirement is not in
balance with the high and fluctuating interest
rates. We believe the fundamental demand
from end costumers is still present and the
activity will return.
The Swedish economy suffers from
continued high inflation, high interest rates
and low consumer confidence. We are
looking into opportunities of utilizing the
Swedish factory capacity to deliver to the
semi-detached segment in Denmark.
HusCompagniet generated revenue of DKK
1,280 million in H1 2023. The core market,
Danish detached houses, comprised 67% of
the revenue while Semi-detached and
Sweden comprised 19% and 14%,
respectively.
Customer satisfaction
We are pleased to see that customer ratings
remain high, and we continue to have the
best rating in the industry, with a satisfaction
score of 4.8 out of 5.0 on Trustpilot with more
than 5,000 reviews.
Capital structure and dividend
The management and board reviewed the
financing and capital structure of
HusCompagniet. This resulted in a capital
equity raise and refinancing of current
facilities.
With completion of the capital raise of 19.2%
and the refinancing in place with the current
financing banks, HusCompagniet secured
liquidity and flexibility to be able to carry out
strategic investments and implement
commercial initiatives.
The financial leverage was 2.5x LTM EBITDA
H1 2023.
With the capital increase the share capital of
HusCompagniet consists of 21,710,000
shares of nominally DKK 5 each, equivalent
to a registered share capital of DKK
108,550,000.
The New Facilities Agreement restricts
dividends and share buy backs until 30 June
2024 (except for share buy backs to hedge
positions under share-based incentive
programmes).
HusCompagniet expects to resume dividend
payments once the leverage is back at
appropriate levels.
5
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Financial review for the first half
of 2023
Revenue
HusCompagniet reported a total revenue of
DKK 1,280 million in H1 2023, down 44% from
DKK 2,266 million in H1 2022. Average
selling price (ASP) for the Detached segment
increased to DKK 2.9 million from DKK 2.4
million in H1 2022.
Gross margin
Gross margin was 20.9%, up from 18.8% in H1
2022. The development was mainly driven
by the semi-detached segment and a
continuous focus on margins. The acquisition
of the factory last year has played a pivotal
role in driving this positive trend. The
detached segment was negatively affected
by the
re-evaluation of provision of DKK 15
million.
EBITDA before special items
Reported EBITDA before special items was
DKK 58 million compared with DKK 175
million in H1 2022. This corresponds to an
EBITDA margin before special items of 4.5%
compared to a margin of 7.7% in H1 2022.
The EBITDA margin was 5.7% excluding the
provision of DKK 15 million.
The development was mainly due to
decreased revenue (fewer deliveries). SG&A
decreased as a result of cost cutting
initiatives started in 2022. The number of
FTEs was down 78. The SG&A level is
expected to further decrease in the second
half of 2023 due to staff reductions made in
H2 2022 and H1 2023.
Amortisation and depreciation
Amortisation and depreciation amounted to
DKK 22 million against DKK 23 million in H1
2022. Amortisation mainly consists of
development projects including ERP system.
Depreciation mainly refers to leasing
contracts and factory equipment.
EBIT
Reported EBIT amounted to DKK 35 million
against DKK 151 million in H1 2022,
corresponding to a margin of 2.7% and 6.7%
respectively. The margin level reflected a
challenging market.
Net financials
Reported net financials was an expense of
DKK 22 million compared to an expense of
DKK 10 million in H1 2022. The increase is
due to refinancing costs from full
amortization of cost related to previous loan
and higher interest.
Profit for the period before tax for
continued operations
Profit for period before tax from the
continued operation was DKK 12 million in H1
2023 compared with DKK 141 million in H1
2022.
Taxation
Reported tax for H1 2023 was DKK 2 million
against DKK 32 million in H1 2022.
Discontinued operations
During 2020, the Group closed its German
and Swedish brick house activities. Loss from
discontinued operations was DKK 3 million
reflecting an increase in provisions for the
close down expenses.
6
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Q2-2023
Q2-2022
H1-2023
H1-2022
Sales (units)
219
358
445
732
Detached
169
279
287
557
Semi detached
9
52
101
126
Sweden
41
27
57
49
Deliveries (units)
265
526
609
1,006
Detached
142
364
342
705
Semi detached
73
93
145
165
Sweden
50
69
122
136
Order backlog (gross)
(DKKm)
1,659
3,497
1,659
3,497
Detached
1,080
2,525
1,080
2,525
Semi detached
449
658
449
658
Sweden
129
314
129
314
Order backlog (net) (DKKm)
1,101
2,547
1,101
2,547
Detached
775
1,832
775
1,832
Semi detached
278
434
278
434
Sweden
48
281
48
281
Share of own land* (%)
14.0%
10.1%
12.9%
15.7%
Detached (%)
9.2%
8.0%
8.5%
8.2%
Semi-detached (%)
23.3%
18.3%
23.4%
47.9%
*Only Denmark
Cash flow
Operating activities
Net cash generated from operating activities
was DKK 97 million compared with DKK 7
million in H1 2022 driven by the lower activity
level.
Investing activities
Net investments related to development
projects and property, plant, and equipment,
were DKK 11 million in H1 2023 compared to
DKK 17 million in H1 2022.
Financing activities
Cash flows from finance of DKK 2 million are
mainly related to the capital raise of DKK 207
million and the repayment of loans (DKK 175
million). No dividends were paid to
shareholders in 2023, whereas DKK 29
million was paid in 2022.
Free cash flow
Free cash flow was DKK 87 million against
negative DKK 10 million in H1 2022, mainly
driven by operating activities.
Balance sheet
Financing
Net interest-bearing debt (NIBD) totalled DKK
489 million H1 2023 against DKK 768 million
end 2022. The net interest-bearing debt to
EBITDA ratio was 2.5x compared to 2.4x at
year-end 2022. The decrease in debt was
mainly due to the capital raise and new
capital loan structure.
Equity
The Groups equity increased by DKK 183
million in H1 2023 and ended at DKK 2,064
million. The increase was based on capital
increase of DKK 207 million, partly offset
from cost of capital increase (DKK 8 million),
purchase of own shares (DKK 8 million).
Net working capital
Net working capital totalled DKK 461 million
H1 2023, down from DKK 671 million H1 2022.
The change was mainly caused by a
decrease in contract assets, partly offset by
an increase of trade and other payables.
7
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Contract assets
Contract assets (net) amounted to DKK 425
million compared to DKK 737 million end of
H1 2022. The development reflected the low
sales level in H2 2022.
Dividend
Dividends are suspended in 2023 and thus
no distribution to shareholders in 2023.
HusCompagniet expects to return to making
dividend payments, once the leverage is
back within the long-term target.
8
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Financial review for the second
quarter of 2023
Revenue
HusCompagniet reported total revenue of
DKK 624 million in Q2 2023 down 43% from
DKK 1,094 million in Q2 2022. Deliveries
amounted to 265 houses which is a decrease
of 50% from 526 houses in Q2 2022.
EBITDA before special items
Reported EBITDA before special items was
DKK 16 million compared with DKK 76 million
in Q2 2022. This corresponds to an EBITDA
margin before special items of 2.5%. A
provision of DKK 15 million was included in
the quarter. The EBITDA margin excluding
the provision was 5.0%.
Special items
Special items amounted to positive DKK 1
million in Q2 2023 related to reversal of
impairment of leaseholds year end 2022.
Profit for the period
Profit for the period from continued
operations was negative DKK 5 million in Q2
2023, against DKK 45 million in Q2 2022.
Cash flow
Operating activities
Net cash generated from operating activities
was DKK 65 million compared with DKK 13
million in Q2 2022. Inflow was mainly driven
by a lower activity level.
Investing activities
Net investments related to development
projects and property, plant, and equipment,
were DKK 4 million in Q2 2023 compared to
DKK 10 million in Q2 2022.
Financing activities
Cash flows from finance of DKK 18 million are
mainly related to the capital raise of DKK 207
and the repayment of loans (DKK 175 million).
Free cash flow
Free cash flow was DKK 61 million against
DKK 12 million in Q2 2022, mainly driven by
operating activities.
Segments
Detached is our largest segment comprising
67% of total revenue in H1 2023. Semi-
detached and Sweden comprised 19% and
14%, respectively. For H1 2022, the revenue
split between the segments was 78%, 14%
and 8%, respectively.
Denmark - detached
Sales was 287 in H1 2023, down 48% or 270
houses from 557 houses in H1 2022. Q2
2023 sales came in at 169 houses.
Deliveries decreased 51% totalling 342 in H1
2023 from 705 houses in H1 2022.
Revenue amounted to DKK 859 million,
down 51% from DKK 1,769 million from H1
2022. The decrease was driven by fewer
deliveries as a result of a reduced sale in
2022. Share of own land deliveries was 8.5%
up from 8.2%.
The gross margin was 16.8% down from
18.8% and EBITDA before special items DKK
12 million. The margin would have been 18.7%
excluding the provision of DKK 15 million.
Average selling price (ASP) was DKK 2.9
million increased from DKK 2.4 million in H1
2022, The increase was due to higher sales
prices and a higher proportion of houses
delivered in Zealand.
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Sales
374
358
138
87
226
219
Deliveries
480
526
417
580
344
265
9
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Denmark - Semi-detached houses
Sales was 101 units, down from 126 in H1
2022
Revenue amounted to DKK 247 million, down
from DKK 319 million in H1 2022. Revenue
comprised mainly contracted work in
progress. Share of own land in deliveries was
23.4%.
The gross margin was 25.8% and EBITDA
before special items DKK 29 million,
corresponding to a margin of 11.9%. Semi-
detached was on a higher margin compared
to H1 2022, mainly due to increase in projects
delivered directly to end customer in line with
the increased production capacity.
Average selling price (ASP) was DKK 1.8
million, same level as H1 2022. Share of own
land deliveries decreased in the period. The
Q2 2023 gross margin was 23.8% and an
EBITDA margin at 10.8%.
Sweden
Revenue amounted to DKK 175 million, down
from DKK 178 million in H1 2022. The gross
margin was 33.9% with EBITDA before
special items at DKK 17 million,
corresponding to an EBITDA margin of 9.6%.
Average selling price (ASP) was DKK 1.4
million, up from DKK 1.3 million in H1 2022
Outlook for 2023
We reiterate the full-year 2023 guidance
issued on 4 May 2023
• Revenue is expected to be DKK
2,250 -2,500 million
• EBITDA before special items is
expected to be DKK 100 – 130 million
• Operating profit (EBIT) is expected to
be DKK 50 – 75 million
Assumptions for the outlook
The 2023 guidance is based on no severe
disruption of supply chains emerging, on raw
material prices not significantly exceeding
current levels and that the market will slowly
pick-up during 2023.
• Current expectations for 2023
deliveries are between 950 and
1,100
• Revenue from the semi-detached
segment is assumed to be around
DKK 350-450 million
General assumptions
General assumptions comprise assumptions
relating to macro-economic conditions,
industry considerations, regulatory changes,
and customer behaviour (particularly in the
light of the Covid-19 pandemic). The Group’s
estimates assume that there will not be any
material change in the competitive or
regulatory landscape, and no other external
actions.
Forward-looking statements
This interim report includes forward-looking
statements on various matters, such as
expected earnings and future strategies and
expansion plans. Such statements are
uncertain and involve various risks, as many
factors, some of which are beyond our
control, may result in actual developments
differing considerably from the set
expectations. Such factors include but are
not limited to general economic and business
conditions, exchange rate and interest rate
fluctuations, the demand for our services and
competition in the market.
Risk factors
HusCompagniet is exposed to strategic,
operational, and financial risks, which are
described in the management review and
the 2022 Annual Report prepared in
accordance with IFRS.
10
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Statement by Management
The Board of Directors and the Executive Board have reviewed and approved the interim condensed
consolidated financial statement of the Group for the period 1 January – 30 June 2023. The interim condensed
consolidated financial statement, which has not been audited or reviewed by the Company’s auditor, has been
prepared in accordance with IAS 34 ‘Interim Financial Reporting’, as adopted by the EU, and additional
requirements in the Danish Financial Statements Act.
It is our opinion that the interim condensed consolidated financial statement gives a true and fair view of the financial
position for the Group on 30 June 2023 and the results of the Group’s operations and cash flow for the period 1
January – 30 June 2023.
Further, in our opinion, the Management's review gives a fair view of the development in the Group's activities and
financial matters, results of operations, cash flows and financial position as well as a description of material risks
and uncertainties that the Group face.
Virum, 17 August 2023
Executive Board:
Martin Ravn-Nielsen Jesper Høybye
Group CEO Group CFO
Board of Directors:
Claus V. Hemmingsen Anja B. Eriksson
Chairperson Vice chairperson
Stig Pastwa Ylva Ekborn
Ole Lund Andersen Michael Troensegaard Andersen
11
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Interim consolidated Income Statement
DKK'000
Note
H1 2023
H1 2022
Q2 2023
Q2 2022
FY 2022
Revenue
3, 4
Cost of Sales
-1,012,949
-1,840,892
-505,874
-886,650
-3,492,916
Gross profit
Staff cost
-144,689
-176,657
-73,912
-90,929
-346,287
Other external expenses
-64,488
-73,504
-28,520
-40,451
-142,400
Other operating income/(expenses), net
-257
Operating profit before depreciation and amortisation (EBITDA)
before special items
Special items
-1,145
-722
-722
-31,939
Operating profit before depreciation and amortisation (EBITDA)
after special items
Depreciation and amortisation
-22,047
-23,207
-11,021
-11,446
-48,343
Operating profit (EBIT)
Financial income
Financial expenses
-23,304
-10,311
-13,538
-5,451
-27,784
Profit before tax from continuing operations
-6,956
Tax on profit
-2,235
-32,069
-13,437
-50,449
Profit for the period from continuing operations
-4,671
Profit/(loss) after tax for the period from discontinued operations
5
-3,075
-9,665
-3,073
-8,601
-20,169
Profit for the period
-7,744
Profits attributable to:
DKK'000
H1 2023
H1 2022
Q2 2022
Q2 2021
FY 2022
Equity owners of the Company
-7,744
Earnings per share:
DKK
Note
H1 2023
H1 2022
Q2 2023
Q2 2022
FY 2022
Earnings per share (EPS Basic)
-0.4
Diluted earnings per share (EPS-D)
-0.4
Earnings per share (EPS Basic) continuing operations
-0.4
Diluted earnings per share (EPS-D) continuing operations
-0.4
Earnings per share (EPS) (DKK) from discontinued business
-0.1
-0.6
-0.1
-0.5
-1.1
Diluted earnings per share (EPS-D) (DKK) from discontinued business
-0.1
-0.6
-0.1
-0.5
-1.1
12
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Interim consolidated Statement of Other Comprehensive Income
DKK'000
Note
H1 2023
H1 2022
Q2 2023
Q2 2022
FY 2022
Profit for the year
-7,744
Other comprehensive income
0
0
0
0
0
Items that may be reclassified to the income statement in
subsequent periods
0
0
0
0
0
Foreign currency translation differences, subsidiary
-18,473
-4,455
-14,000
-5,551
-11,719
Other comprehensive income, net of tax
-18,473
-4,455
-14,000
-5,551
-11,719
Total comprehensive income for the year
-11,626
-21,744
Total comprehensive income attributable to:
DKK'000
Note
H1 2023
H1 2022
Q2 2023
Q2 2022
FY 2022
Equity owners of the Company
-11,626
-21,744
13
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Interim consolidated Balance Sheet
DKK'000
Note
H1 2023
FY 2022
H1 2022
Assets
Non-current assets
Goodwill
9
Intangible assets
Right-of-use assets
Property, plant, and equipment
Deferred tax asset
Other receivables
Total non-current assets
Current assets
Inventories
6
Contract assets
7
Trade and other receivables
Prepayments
Cash and cash equivalents
Total current assets
Total assets
14
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Interim consolidated Balance Sheet - continued
DKK'000
Note
H1 2023
FY 2022
H1 2022
Equity and liabilities
Equity
Share capital
Retained earnings and other reserves
Total equity
Liabilities
Non-current liabilities
Borrowings
8
Lease liabilities
Provisions
Deferred tax liability
Total non-current liabilities
Current liabilities
Borrowings
8
Lease liabilities
Trade and other payables
Contract liabilities
7
Prepayments from customers
7
Provisions
Income tax payable
Other liabilities
Bank overdrafts
Total current liabilities
Total liabilities
Total equity and liabilities
15
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Interim consolidated Statement of Cash Flows
DKK'000
Note
H1 2023
H1 2022
FY 2022
Cash flow from operating activities
EBITDA, after special items
EBITDA, discontinued activities
-2,980
-193
EBITDA
Adjustments for non-cash items
Adjusted EBITDA
Changes in working capital
-150,911
Cash flow from operating activities before financial items
Interest received
Interest elements of lease payments
-2,191
-2,604
-5,014
Interest paid
-18,826
-7,706
-22,771
Corporation tax paid
-5,935
-16,402
-65,065
Net cash generated from operating activities
Cash flow from investing activities
Acquisition of assets recognised as property, plant, and equipment
-4,756
-9,184
-22,401
Acquisition of assets recognised as intangible assets
-5,764
-7,631
-13,155
Cash outflow on acquisition subsidiaries
-75,252
Cash and cash equivalents of subsidiaries on acquisition date
-5,746
Net cash generated from investing activities
-10,521
-16,815
-116,554
Cash flow from financing activities
Repayment of long-term debt and mortgage
-675,489
-523
Repayment of bank overdraft
-50,000
-125,000
Proceeds from loans
Repayment of lease liabilities
-12,588
-13,088
-22,697
Capital increase
Transaction costs share issue
-8,087
Dividend to equity holders
-132,276
-132,276
Acquisition of own shares
-7,935
-36,821
-36,821
Net cash generated from financing activities
-28,639
-192,317
Total cash flows
-38,433
-40,400
Cash and cash equivalents on 1 January
Net foreign currency gains or losses
-1,925
-9,813
Cash and cash equivalents on 30 June/31 December
Free cash flow
-9,794
16
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Interim consolidated statement of changes in equity
2023
DKK'000
Share
capital
Foreign
currency
translation
reserve
Retained
earnings
Proposed
dividend
Total
Equity on 1 January
-10,063
Profit for the
period
Other comprehensive income:
Foreign currency translation differences
-18,473
-18,473
Total other comprehensive
income
-18,473
-18,473
Transactions with owners of the Company
and other equity transactions:
Increase in capital
Transaction costs capital
increase
-8,087
-8,087
Share-based payment
Purchase of own shares
-7,935
-7,935
Total transactions with owners of the
Company and other equity transactions
Equity on 30 June
-28,537
17
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Interim consolidated statement of changes in equity
2022
DKK'000
Share
capital
Foreign
currency
translation
reserve
Retained
earnings
Proposed
dividend
Total
Equity on 1 January
Profit for the period
Other comprehensive income:
Foreign currency translation
differences
-4,455
-4,455
Total other comprehensive
income
-4,455
-4,455
Transactions with owners of the
Company and other equity transactions:
Capital reduction
-8,950
Share-based payment
Purchase of own shares
-36,821
-36,821
Dividends, own shares
Dividends paid
-132,276
-132,276
Total transactions with owners of the
Company and other equity transactions
-8,950
-24,925
-132,276
-166,151
Equity on 30 June
-2,799
18
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
Notes overview
1. Summary of significant accounting policies 19
2. Accounting estimates and judgements 19
3. Segment information 19
4. Revenue 22
5. Discontinued operations 24
6. Inventory 25
7. Contract assets 25
8. Borrowings 26
9. Impairment 27
10. Events after the balance sheet date 27
19
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
1 Accounting policies
This interim condensed financial report comprises the period 1 January – 30 June 2023.
The interim condensed financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and
Danish disclosure requirements for listed companies.
The financial part of the interim condensed financial report has been prepared in accordance with IAS 34 for interim condensed consolidated
financial statements.
The accounting policies are unchanged from the 2022 consolidated financial statements, to which reference is made except the changes
stated below. A full description of accounting policies is provided in the 2022 consolidated financial statements.
Changes to accounting policies
HusCompagniet A/S has implemented the following new or amended standards and interpretations with effect from 1 January 2023:
· Amendments to Definition of Accounting Estimates - Amendments to IAS 8; Disclosure of Accounting Policies - Amendments to IAS 1 and
IFRS Practice Statement 2; Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12.
HusCompagniet A/S has implemented the standards and interpretations that became effective in the EU for 2023. None of these standards or
interpretations has affected recognition or measurement in 2023 or is expected to affect the Group.
2 Accounting estimates and judgements
In preparing the interim condensed financial statements, management made various judgements, estimates and assumptions concerning
future events that affected the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income, and
expenses. Actual results may differ from these estimates.
The significant estimates made by management applying the Group’s accounting policies and the associated significant estimating
uncertainties are the same for the preparation of the interim condensed financial statements as for the preparation of the consolidated
financial statements for 2022.
3 Segment information
For management purposes, the Group is organised into business units based on its products and services as well as geographical location.
The Group has three reportable segments, as follows:
- The detached houses in Denmark segment, which comprise brick houses built on site and plots
- The semi-detached houses in Denmark segment, which comprises brick houses built on sites and plots, includes both business-to-business
and business-to-consumers. In 2022 an acquisition of a pre-fab factory was completed. The pre-fab factory produces components used in
semi-detached production
- The Swedish business comprise detached prefabricated houses
No operating segments have been aggregated to form the above reportable operating segments.
Executive Management is responsible for operating results of its business units separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is evaluated based on EBITDA and is measured consistently with operating
profit (EBIT) plus amortisation and depreciation in the consolidated financial statements. The Group's depreciation, amortisations, financing
(including financial income and financial expenses) and income taxes are managed on a Group basis and are not allocated to operating
segments. Assets and Liabilities are not allocated to segments.
Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.
20
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
3 Segment information – continued
H1 2023
Denmark
Sweden
DKK'000
Detached
houses
Semi-
detached
houses
Wooden
houses
Total
continuing
operations
Total
discontinued
operations
Total
segments
Revenue
External customers
881,584
223,877
174,620
1,280,081
-275
1,279,807
Inter-segment
-22,905
22,905
0
0
0
0
Total revenue
858,680
246.782
174,620
1,280,081
-275
1,279,807
Income/(expenses)
Cost of goods
-736,525
-161,015
-115,409
-1,012,949
3
-1,012,946
Inter-segment
21,988
-21,988
0
0
0
0
Segment gross profit
144,143
63,778
59,211
267,132
-271
266,860
Gross margin
16.8%
25.8%
33.9%
20.9%
n.a.
20.9%
Other operating
income/(expenses), net
-160
-97
0
-257
0
-257
Staff costs
-97,828
-31,741
-15,119
-144,689
0
-144,689
Other operating expenses
-34,590
-2,627
-27,271
-64,488
272
-64,216
Segment EBITDA bsi
11,565
29,313
16,820
57,698
1
57,699
EBITDA bsi margin
1.3%
11.9%
9.6%
4.5%
n.a.
4.5%
Special items
432
205
-1,783
-1,145
-2,981
-4,126
EBITDA
11,997
29,518
15,037
56,553
-2,980
53,573
EBITDA margin
1.4%
12.0%
8.6%
4.4%
n.a.
4.2%
21
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
3 Segment information – Continued
H1 2022
Denmark
Sweden
DKK'000
Detached
houses
Semi-detached
houses
Wooden
houses
Total continuing
operations
Total
discontinued
operations
Total
segments
Revenue
External customers
1,966,192
121,774
178,185
2,266,150
0
2,266,150
Inter-segment
-196,764
196,764
0
0
0
0
Total revenue
1,769,427
318,538
178,185
2,266,150
0
2,266,150
Income/(expenses)
Cost of goods
-1,626,484
-102,772
-111,636
-1,840,892
-280
-1,841,172
Inter-segment
188,894
-188,894
0
0
0
0
Segment gross profit
331,837
26,872
66,549
425,258
-280
424,978
Gross margin
18.8%
8.4%
37.3%
18.8%
n.a.
18.8%
Other operating
income/(expenses), net
106
0
0
106
0
106
Staff costs
-140,420
-12,016
-24,221
-176,657
0
-176,657
Other operating
expenses
-52,819
-1,662
-19,023
-73,504
1,426
-70,089
Segment EBITDA bsi
138,704
13,194
23,305
175,203
1,146
178,337
EBITDA margin
7.8%
4.1%
13.1%
7.7%
n.a.
7.9%
Special items
-722
0
0
-722
-0
-722
EBITDA
137,982
13,194
23,305
174,481
1,146
177,615
EBITDA margin
7.8%
4.1%
13.1%
7.7%
n.a.
7.8%
Reconciliation of profit as per interim statement
DKK'000
2023 H1
2022 H1
Segment EBITDA from continuing operations
57,698
174,481
Segment EBITDA from discontinued operations
1
1,146
Special items
-4,126
-1,146
Depreciation and amortisations
-22,047
-23,207
Financial income
1,007
1,437
Financial expenses
-23,452
-21,463
Loss before tax from discontinued operations
3,075
9,738
Profit before tax from continuing operations
12,156
140,986
22
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
4 Revenue
H1 2023
Denmark
Sweden
DKK'000
Detached
houses
Semi-
detached
houses
Wooden
houses
Total
continuing
operations
Total
discontinued
operations
Total segments
Sales value houses sold on
customers building sites
779,984
135,363
174,620
1,089,966
0
1,089,966
Sales value houses sold on
own building sites
7,843
111,346
0
119,189
0
119,189
Total Contracted sales
787,827
246,709
174,620
1,209,156
0
1,209,156
Denmark
Sweden
DKK'000
Detached
houses
Semi-
detached
houses
Wooden
houses
Total
continuing
operations
Total
discontinued
operations
Total segments
Show- and project houses
67,683
0
0
67,683
0
67,683
Other revenue
309
73
0
382
-275
107
Sales of land plots
2,861
0
0
2,861
0
2,861
Total Non-contracted
sales
70,853
73
0
70,925
-275
70,651
Total Revenue
885,680
246,782
174,620
1,280,081
-275
1,279,807
23
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
4 Revenue - Continued
Revenue per segment and category - Contracted Sales
H1 2022
Denmark
Sweden
DKK'000
Detached
houses
Semi-
detached
houses
Wooden houses
Total
continuing
operations
Total discontinued
operations
Total segments
Sales value houses sold on
customers building sites
1,594,646
159,434
178,185
1,932,264
0
1,932,264
Sales value houses sold on
own building sites
119,577
159,104
0
278,681
0
278,681
Total Contracted sales
1,714,222
318,538
178,185
2,210,945
0
2,210,945
Revenue per segment and category - Non-contracted sales
H1 2022
Denmark
Sweden
DKK'000
Detached
houses
Semi-
detached
houses
Wooden houses
Total
continuing
operations
Total
discontinued
operations
Total segments
Show houses
39,596
0
0
39,596
0
39,596
Other revenue
0
0
0
0
0
0
Sales of land plots
15,609
0
0
15,609
0
15,609
Total Non-contracted
sales
55,205
0
0
55,205
0
55,205
Total Revenue
1,769,427
318,538
178,185
2,266,150
0
2,266,150
Revenue per continuing and discontinued operations
DKK'000
2023 H1
2022 H1
Total revenue from continuing operations
1,280,081
2,266,150
Total revenue from discontinued operations
-275
0
Total revenue
1,279,807
2,266,150
The Group is engaged in construction activities in Denmark and Sweden.
Non-contracted sales are recognised on delivery (point-in-time). Contracted sales are recognised over time. Payment is typically due at the
time of final delivery of the house project; however, a small deposit is paid upon contract negotiation.
The Group receives a bank guarantee in connection with the start-up of each contract, and is entitled to payment for work performed,
including profit, during the project. Construction contracts with professional investors may also include payments on account.
Contracted sales comprise the sale of houses constructed on the customers land, or houses sold on own land (semi-detached includes land
plots) that are covered by a customer contract before construction is started.
24
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
4 Revenue - Continued
Conversely, non-contracted sales comprise of:
1. The sale of houses constructed on own land to which no customer contract has been entered into before construction starts.
2. The sale of detached land-plots to which no customer contract has been entered into before purchase and development of the land plots.
5 Discontinued operations
In 2019, the Group decided to close its German activities and to focus on its original core market segments. The decision was driven by the
difficulty of establishing a network of suppliers to support its business and of establishing significant brand recognition in a large new market.
Also in 2019, the Group decided to cease its Swedish brick-house business activities due to the substantial differences in the supply and sales
process in Sweden as compared to Denmark and due to Swedish customer preferences for wood rather than brick houses. The German and
Swedish brick house activities were closed during September 2020. The closing of the discontinued operations are proceeding as expected.
The closing is expected to be finalised in 2024.
DKK'000
H1 2023
H1 2022
Revenue
0
0
Expenses
-2,980
0
Impairment
0
0
Operating income
-2,980
0
Finance Costs
-95
-9,738
Profit/(loss) before tax from discontinued operations
-3,075
-9,738
Tax on profit/(loss)
0
74
Profit/(loss) after tax for the period from discontinued operations
-3,075
-9,665
The net cash flows generated /(incurred) by the business segments brick houses in Sweden and the operations in Germany are, as follows:
DKK'000
H1 2023
H1 2022
Operating
-5,423
-2,031
Investing
0
0
Financing from group entities
4,684
17,000
Net cash inflow/(outflow)
-739
14,969
25
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
6 Inventories
DKK'000
H1 2023
H1 2022
FY 2022
Raw materials
20,423
9,793
26,587
Show-houses and semi-detached houses (non-contracted)
148,119
159,735
164,158
Land
178,282
143,066
155,294
Write-down inventories
-3,005
0
-3,005
Total inventories
343,820
312,549
343,033
7 Contract assets
DKK'000
H1 2023
H1 2022
FY 2022
Selling price of contract assets
565,803
810,395
760,375
Invocing on account
-141,052
-72,911
-134,478
424,752
737,484
626,015
Calculated as follows:
Contract assets
522,408
800,096
731,056
Contract liabilities
-97,656
-62,613
-105,041
424,752
737,484
626,015
Prepayments from customers regarding construction contracts not yet started
9,276
10,133
15,312
Delivery obligations
H1 2023
H1 2022
FY 2022
Within one year
1,512,269
3,282,289
1,966,382
After one year
146,745
214,232
90,714
Construction contracts (assets/liabilities)
Contract assets comprise the selling price of work performed where the Group does not yet have an unconditional right to payment, as the
work performed has not yet been approved by the customer.
Contract liabilities comprise agreed, unconditional payments received on account for work yet to be performed.
Payment is typically due at the time of final delivery of the house project; however, a small deposit is paid upon contract negotiation. The
Group receives a bank guarantee in connection with the start-up of each contract, and is entitled to payment for work performed, including
profit during the project.
Delivery obligations are lower in H1 2023 due to a decline in sales compared to H1 2022.
Credit risk on contract assets is generally managed by regular credit rating of customers and business partners. The credit risk exposure
relating to dealing with private counterparties is estimated to be limited.
26
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
8. Borrowings
DKK'000
Maturity
Fixed or floating
interest
Carrying amount
Bank loan
2026
Floating
496,738
Mortgage
2032
Floating
10,192
30 June 2023
506,930
DKK'000
Maturity
Fixed or floating
interest
Carrying amount
Bank loan
2024
Floating
672,442
30 June 2022
672,442
DKK'000
Maturity
Fixed or floating
interest
Carrying amount
Bank loan
2024
Floating
672,825
Mortgage loan
2032
Floating
10,681
31 December 2022
683,506
The presented amounts to be repaid do not include directly related costs arising from the issuing of the loans of DKK 500m (30 June 2023:
DKK 3.3m) and cost of previous loan of DKK 675m (30 June 2023: DKK 2.6M 31 December 2021: USD 2.6m), which are amortized over the
term of the loans.
As of 30 June 2023, HusCompagniet A/S was in compliance with the financial covenants. HusCompagniet A/S expects to remain in
compliance with the financial covenants in the remaining period of 2023.
27
HusCompagniet A/S, Agerøvej 31, 8381 Tilst, CVR: 36972963
9 Impairment
For impairment testing, goodwill is allocated to the three CGU’s (“Detached”, “Semi-detached” and “Wooden houses”), which are also the
operating and reportable segments. Among other factors, the Group considers the relationship between its market capitalization and the
carrying value of assets including goodwill, when assessing for indicators of impairment. Impairment tests are performed separately for all
three CGU’s once a year or more frequently if indication of impairment exists. On H1 2023 Management has revisited forecasts for all three
CGU’s and concludes that no impairments are necessary
Key Assumptions
The recoverable amount determined in the impairment test is based on a value-in-use calculation. To determine the value-in-use, management
is required to estimate the present value of the future free net cash flows based on budgets and strategy for the coming 5 years (“the budget
period”) as well as projections for the terminal period after the budget period. A 5-year period is used to reflect a full business cycle.
Assumptions are used in the estimate of the present value are the discount rate, revenue growth (estimated on basis of expected units to be
delivered and expected unit price) and EBIT-margin. Other assumptions include expected required investments, market share and growth
expectations in the terminal period.
10 Events after the balance sheet date
We are not aware of any other events after June 30, 2023, that potentially could have a material impact on the Group’s financial position.