Lehto Group (LEHTO) Q2 2024 earnings summary

Executive summary

• Net sales from continuing operations fell 95.9% year-over-year to EUR 4.7 million for H1 2024, reflecting the exit from construction and bankruptcy of key subsidiaries.

• Operating result from continuing operations was a loss of EUR 4.0 million, with a negative margin of 85.0%.

• The group is undergoing corporate restructuring, shifting focus to real estate energy solutions and electricity storage.

• Trading in shares remains suspended since February 2024, and the restructuring program proposal was submitted in June 2024.

Financial highlights

• Result for the period was a loss of EUR 5.7 million, compared to a loss of EUR 21.0 million in H1 2023.

• Cash and liquid assets at period end were EUR 0.7 million, down from EUR 9.0 million a year earlier.

• Interest-bearing liabilities totaled EUR 15.8 million, with lease liabilities at EUR 0.3 million.

• Equity ratio was -174.7% and net gearing ratio -84.4%, both reflecting negative equity.

• Personnel reduced to 99, with 88 on full-time layoff.

Outlook and guidance

• No financial outlook provided due to business discontinuity and ongoing restructuring.

• Liquidity expected to improve in H2 2024 from equity investments and asset sales.