Lumi Education Group (LUMI) H1 2024 earnings summary

Executive summary

• Revenue and profit remained stable in H1 2024 compared to last year, excluding the prior year's goodwill impairment.

• ONH delivered 22% revenue growth, while Sonans faced a challenging market but improved profitability through cost reductions.

• Operating cash flow was strong, supported by credit control and sale of the collection portfolio.

• New Chairperson and CEO appointed; 50% of the unsecured subordinated loan from Lola Bidco AS converted to equity.

Financial highlights

• Total income was NOK 212.6m, up 0.1% year-over-year; EBIT at NOK 24.3m vs. NOK -246.6m last year (impairment-adjusted EBIT last year: NOK 23.7m).

• Adjusted EBIT was NOK 27.7m (down 9% year-over-year); adjusted EBIT margin 13.0%.

• Net profit for H1 2024 was NOK 2.9m, compared to a loss of NOK 264.7m last year.

• Net cash flow from operations was NOK 32.3m, up from NOK 2.3m last year.

• Cash position at period end was NOK 65.1m, with NOK 70m undrawn credit facility.

Outlook and guidance

• ONH autumn intake up over 20% year-over-year; Sonans intake slightly above last year.

• FY 2024 income expected at NOK 255–265m for ONH and NOK 180–185m for Sonans.

• Continued growth anticipated for ONH; Sonans revenue expected to stabilize.

• Additional NOK 10m in cost savings expected from the cost program in 2024/2025.