Interim / Quarterly Report • Aug 18, 2022
Interim / Quarterly Report
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18 August 2022
Company Announcement 32/2022
First half of 2022 was characterised by historically challenging markets with distressed supply chains and high-cost inflation. Q2 2022 margins were pressured by immediate surcharges from suppliers, while adjustments to sales prices are expected to positively impact margins in H2 2022. Demand for newbuilds have decreased and the lower sales levels are expected to continue. A reorganisation is initiated on 18 August. Outlook for 2022 is adjusted due to lower expected sales for 2022, delayed effect of sales price adjustments and special items in relation to reorganisation.
Despite severe market challenges, revenue increased by 11% year-over-year to DKK 2,266 million whilst EBITDA was DKK 175 million on par with first half of 2021. Despite challenges an efficient completion rate of deliveries was kept.
"First half of 2022 presented new market challenges in an already stressed market environment. In April 2022, immediate surcharges were imposed by our suppliers due to accelerated energy prices, in addition to a period of high-cost inflation. While Q2 2022 earning levels were pressured by these challenges, our strong margin focus and continued price adjustments are expected to positively impact margin levels in the second half of 2022." says CEO Martin Ravn-Nielsen and continues.
"The sales for newbuilds decreased significantly in 2022 and the demand is currently below precovid levels. We have adjusted the organisation accordingly, and today we regretfully initiate a collective redundancy process. HusCompagniet remains financially strong, these are historically challenging times and calls for extraordinary measures to continue being a healthy and robust business."
| DKKm | Q2 2022 | Q2 2021 | Change | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|---|
| Houses sold (units) | 358 | 721 | -50.3% | 732 | 1,347 | -45.7% |
| Houses delivered (units) | 526 | 424 | 24.1% | 1,006 | 818 | 23.0% |
| Order backlog, gross | 3,497 | 3,775 | -7.4% | 3,497 | 3,775 | -7.4% |
| Order backlog, net | 2,547 | 2,912 | -12.5% | 2,547 | 2,912 | -12.5% |
| Revenue | 1,094 | 1,084 | 0.9% | 2,266 | 2,041 | 11.0% |
| Gross profit | 207 | 229 | -9.6% | 425 | 419 | 1.4% |
| EBITDA (bsi)* | 76 | 101 | -24.8% | 175 | 175 | 0.0% |
| Special items | -1 | 0 | - | -1 | 0 | - |
| EBIT | 64 | 90 | -29% | 151 | 152 | -0.7% |
| Gross margin (bsi)* | 18.9% | 21.2% | -2.3 ppt. | 18.8% | 20.6% | -1.8 ppt. |
| EBITDA margin (bsi)* | 6.9% | 9.3% | -2.4 ppt. | 7.7% | 8.6% | -0.9 ppt. |
| EBIT margin | 5.8% | 8.3% | -2.5 ppt. | 6.7% | 7.4% | -0.7 ppt. |
| Contract assets, gross | 800 | 807 | -0.9% | 800 | 807 | -0.9% |
| Available cash** | 262 | 475 | -44.8% | 262 | 475 | -44.8% |
| Net interest-bearing debt | -897 | -702 | 27.7% | -897 | -702 | 27.7% |
| NIBD/LTM EBITDA (bsi)* | 2.2x | 1.8x | 0.4x | 2.2x | 1.8x | 0.4x |
| FTEs end of period | 463 | 453 | 2.2% | 463 | 453 | 2.2% |
*Before special items **With a RCF facility agreement of DKK 400 million
We adjust the full-year 2022 guidance issued on 28 April 2022 due to lower expected sales for 2022, delayed effect of sales price adjustments and special items in relation to reorganisation.
• Revenue is expected to be DKK 4,100 – 4,400 million (previously DKK 4,250 – 4,550 million)
• EBITDA before special items is expected to be DKK 340 – 360 million (previously DKK 370-410 million)
• Operating profit (EBIT) is expected to be DKK 265 – 290 million (previously DKK 320-360 million). EBIT guidance adjustment includes special items effect of DKK 20-25 million from reorganisation
HusCompagniet expects net debt to EBITDA before special items around 2.0x at the end of 2022 (previously below 2.25x). Several planned acquirements of new land plots are cancelled or postponed due to the current market situation.
| DKKm | Updated 18 August 2022 |
Updated 28 April 2022 |
Initial Outlook 6 November 2020 |
|---|---|---|---|
| Revenue | 4,100-4,400 | 4,250-4,550 | 4,350-4,650 |
| EBITDA before special items | 340-360 | 370-410 | 420-450 |
| EBIT | 265-290 | 320-360 | 370-400 |
| Leverage ratio (NIBD/LTM EBITDA bsi) | around 2.0x | below 2.25x | below 2.0x |
The visibility has been reduced substantially due to the war in Ukraine and an uncertain geopolitical situation not seen in recent times. High-cost inflation, distressed supply chains, and rising interest rates are affecting the market situation. HusCompagniet are continuously adjusting sales prices to follow the market development.
Immediate surcharges were in April imposed from suppliers as high as up to 30%, due to accelerated energy prices. Continuous adjustments to sales prices are expected to positively impact margins in H2 2022.
Due to market slowdown in all segments, we adjust our assumptions for sales in 2022, and consequently deliveries are also adjusted.
The 2022 guidance is based on no severe disruption of supply chains including gas supply emerging and on raw material prices not significantly exceeding current levels.
HusCompagniet will host a conference call (in English) for investors and analysts at 10:00 (CEST) today, Wednesday 18 August 2022. The conference call and presentation will be available from HusCompagniet's investor website.
Conference call dial-in numbers for investors and analysts:
DK: +45 32 74 07 10 UK: +44 20 3481 4247 US: +1 646 307 1963 https://streams.eventcdn.net/huscompagniet/h1-2022/
Mads Dehlsen Winther, Group CFO
Cristina Rønde Hefting, Head of IR & Press +45 51 96 23 14
| DKK'm | H1 2022 | H1 2021 | Q2 2022 | Q2 2021 | 2021 |
|---|---|---|---|---|---|
| Income statement | |||||
| Revenue | 2,266 | 2.041 | 1.094 | 1.084 | 4,315 |
| Gross profit | 425 | 419 | 207 | 229 | 875 |
| EBITDA before special items | 175 | 175 | 76 | 101 | 401 |
| EBITDA after special items | 174 | 175 | 75 | 101 | 401 |
| Operating profit (EBIT) before special items | 152 | 152 | 64 | 90 | 355 |
| Operating profit (EBIT) | 151 | 152 | 64 | 90 | 355 |
| Financial income /expenses, net | -10 | -10 | -5 | -5 | -20 |
| Profit for the year (continued operations) | 109 | 109 | 45 | 68 | 265 |
| Profit for the year (discontinued operations) | -10 | 0 | -9 | 0 | 0 |
| Profit for the year | 99 | 109 | 36 | 68 | 265 |
| Balance sheet | |||||
| Total assets | 3,639 | 3,652 | 3,639 | 3,652 | 3,578 |
| Contract assets, net | 737 | 678 | 737 | 678 | 725 |
| Net working capital | 657 | 528 | 657 | 528 | 517 |
| Net interest-bearing debt (NIBD) | 897 | 702 | 897 | 702 | 713 |
| Equity | 1,814 | 1.909 | 1,814 | 1.909 | 1.885 |
| Cash flow | |||||
| Cash flow from operating activities | 7 | 72 | 13 | 62 | 258 |
| Cash flow from investing activities | -17 | -7 | -10 | -3 | -22 |
| - Hereof from investment in property, plant and equipment |
-9 | -4 | -4 | -2 | -11 |
| Cash flow from financing activities | -29 | -71 | 12 | -69 | -261 |
| Free cash flow | -10 | 66 | 3 | 59 | 237 |
| Key figures | |||||
| Revenue growth | 11.0% | 20.6% | 0.9% | 28.7% | 19.9% |
| Gross margin | 18.8% | 20.6% | 18.9% | 21.2% | 20.3% |
| EBITDA before special items | 7.7% | 8.6% | 6.9% | 9.3% | 9.3% |
| EBITDA margin after special items | 7.7% | 8.6% | 6.9% | 9.3% | 9.3% |
| Earnings Per Share (EPS Basic), DKK | 6.0 | 5.5 | 2.2 | 3.4 | 13.7 |
| Diluted earnings per share (EPS-D) (DKK) | 5.9 | 5.5 | 2.2 | 3.4 | 13.7 |
| Dividend per share, DKK | - | - | - | - | 7.35 |
| Share price end of period, DKK | 63 | 119 | 63 | 119 | 118 |
| Market value, DKK billion | 1.1 | 2.4 | 1.1 | 2.4 | 2.4 |
| ROIC | 5.4% | 5.6% | 2.3% | 3.3% | 13.2% |
| ROIC (adjusted for goodwill) | 18.9% | 22.9% | 7.9% | 13.5% | 53.4% |
| NIBD/LTM EBITDA before special items | 2.2 | 1.8 | 2.2 | 1.8 | 1.8 |
Refer to the consolidated financial statements 2021 for definition of key figures
First half of 2022 was severely affected by distressed supply chains and high-cost inflation fuelled by the war in Ukraine. Interest rates rose and consumer confidence decreased to historically low levels. Customers in all segments have been hesitant and the demand has decreased.
HusCompagniet sales amounted to 732 houses in H1 2022 down 45.7% compared to 1,347 houses in H1 2021 which was an extraordinarily high-demanded market. The sales level in H1 2022 was 14% lower than in H1 2020, which reflected a more normalised level, totalling 852 houses.
The decreased demand in May and June continued in July and overall sales in the first half of 2022 were below normalised level.
Due to the continued lower demand, redundancies were made during H1 2022, and again on 18 August 2022 a redundancy process has been initiated. Details are outlined under Contingency planning and activities.
Deliveries amounted to 1,006 houses, up 23% from 818 in H1 2021. The higher level reflected a high completion rate of 2021 sales, despite challenging markets with distressed supply chains. Focus on improving the delivery flow between quarters continues yet a challenging fourth quarter for 2022 is expected in Zealand.
Average selling price (ASP) increased in the detached segment to DKK 2.5 million reflecting this effect. Order books have shortened in Jutland and Funen while Zealand still have prolonged delivery time due to scarcity in sub-contractors. Building permit process are overall back on pre-covid levels.
HusCompagniet generated revenue of more than DKK 2.2 billion in H1 2022, up 11% from H1 2021. HusCompagniet's core market, Danish detached houses, comprised 78% of the revenue while Semi-detached and Sweden comprised 14% and 8%, respectively.
EBITDA margin before special items decreased by 0.9%-points impacted by highcost inflation.
Immediate surcharges from suppliers had an impact especially in the second quarter. Continuous price adjustments have somewhat mitigated the effects and adjustments are expected to positively impact margin levels in the second half of 2022.
HusCompagniet successfully maintained the important target of delivering 98% of our houses on time and at agreed cost backed by HusCompagniets long term relationships with sub-contractors and suppliers.
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 4.7. out of 5.0 on Trustpilot with more than 4,500 reviews.
Our business model and position in the market allow us to quickly adapt to changes in the supply and demand structure and secure competitive offerings.
The market demand for Detached houses has been reduced substantially since the extraordinarily high level in H1 2021. In February 2022 a staff reduction was completed, and 28 employees were terminated. In June, staff was reduced by 13 and on 18 August a collective redundancy process was initiated. Negotiations are initiated with approximately 46 employees seen to be terminated.
Reductions are concentrated in the detached segment to meet the lower demand. Market development are being monitored closely and further actions will be taken if necessary.
Due to lower production capacity needed and geographic optimisation, the Herning office will close production and the Horsens office will close both production and sales during 2022. In addition, the current Esbjerg office will move to the newly acquired factory.
Ramp up processes in Sweden and in the Semi-detached segment have been postponed for the time being while keeping focus on acquiring relevant competences.
The reorganisations made in 2022 are expected to save approx. DKK 55 - 65 million on SG&A annually.
Severance cost for reduction of staff in June and August and closing of offices of around DKK 20-25 million in total is expected for 2022, which will impact special items.
Further initiatives include a reduction of the showhouse portfolio going forward.
In H1 2022 we sold 126 units of which 77 were B2B sales against 138 in H1 2021 of which 79 were B2B sales.
Due to the decrease in demand the sales level for 2022 is expected to be lower than the realised 387 units in 2021.
Long process time in Semi-Detached permits continued to rise in H1 2022. Despite current market challenges we are comfortable with the strategic target set of 750 sold semidetached houses annually by end of 2025.
The Semi-detached strategy will be further supported by the acquisition of a factory in Esbjerg, Denmark in April 2022, focusing on the use of more sustainable materials in Semi-detached projects. Further, a frame agreement for up to 370 units with NREP entered in Q2 2022 is expected to support sales levels.
HusCompagniet acquired the factory in Esbjerg, Denmark on 28 April 2022 and the agreement was closed 1 July 2022. The integration process is in progress.
To ease capacity constraints and increase utilisation of the Swedish factory a production re-build including automation improvements in one of two production halls began in the July 2022 to increase capacity by up to 40%.
The upgrade is going according to plan and production in upgraded production hall will start again according to plan in September 2022.
Due to the capacity constraints and limitation of market activities, the market share in the Swedish segment was decreasing in a falling market.
Financial leverage was 2.2x LTM EBITDA bsi on 30 June 2022, up from 1.8x on 31 December 2021. The level increase was mainly due to the acquisition of the factory in Esbjerg, Denmark.
Liquidity remains solid, and due to postponements and cancellations of land bank acquisitions, financial gearing is expected to be around 2.0x by end of 2022.
A DKK 7.35 per share dividend, totalling DKK 132 million, was paid out in April 2022 following shareholder approval at the General Meeting.
The dividend policy adopted targets an initial pay-out ratio of at least 50% of the reported profit for the year by means of dividend to at least 25% by means of dividend, supplemented by means of share buyback for around 25%.
HusCompagniet reported a total revenue of DKK 2,266 million in H1 2022, up 11% from DKK 2,041 million in H1 2021, in line with guidance. The increase was mainly due to an increase in the number of houses delivered totalling of 1,006 houses. Average selling price (ASP) for the Detached segment increased to DKK 2.4 million from DKK 2.2 million in H1 2021, reflecting a strong margin focus.
Gross margin was 18.8%, down from 20.6% in H1 2021. The development was mainly driven by high-cost inflation and immediate surcharges from suppliers affecting all segments. Semi-detached was on a lower margin compared to H1 2021, mainly due to internal transfer pricing as a substantial part of the production was completed in the detached segment. The transfer pricing effect is expected to reduce over time as the Semi-detached organisation is ramping up.
Reported EBITDA before special items was DKK 175 million compared with DKK 175 million in H1 2021. This corresponds to an EBITDA margin before special items of 7.7% compared to a margin of 8.6% in H1 2021.
The development was mainly due to decrease in gross margin while SG&A increased slightly due to a smaller ramp-up of the organisation in Semi-Detached and Sweden. The SG&A level is expected to decrease in the second half of 2022 due to staff reductions made in February 2022.
Amortisation and depreciation amounted to DKK 23 million against DKK 23 million in H1 2021. Depreciation amounted to DKK 14 million. Amortisation mainly consists of development projects including ERP system. Depreciation mainly refers to leasing contracts.
There were Special items of DKK 1 million in H1 2022 due to the acquisition of the Factory in Esbjerg, Denmark. There were no special items in H1 2021.
Reported EBIT amounted to DKK 151 million against DKK 152 million in H1 2021, corresponding to a margin of 6.7% and 7.4% respectively. The margin level reflected a challenging market. A continued strong margin focus is expected to positively impact margin levels in the second half of 2022.
Reported net financials was an expense of DKK 10 million compared to an expense of DKK 10 million in H1 2021.
Profit for the year before tax from the continued operation was DKK 141 million in H1 2022 compared with DKK 142 million in H1 2021.
Reported tax for H1 2022 was DKK 32 million against DKK 32 million in H1 2021.
During 2020, the Group closed its German and Swedish brick house activities finalised in September 2020. Reported loss from discontinued operations was DKK 10 million in H1 2022 due to a noncash effect of currency adjustments on loans received from group entities.
| Q2-2022 | Q2-2021 | H1-2022 | H1-2021 | |
|---|---|---|---|---|
| Sales (units) | 358 | 721 | 732 | 1,347 |
| Detached | 279 | 511 | 557 | 981 |
| Semi detached | 52 | 56 | 126 | 138 |
| Sweden | 27 | 154 | 49 | 228 |
| Deliveries (units) | 526 | 424 | 1,006 | 818 |
| Detached | 364 | 348 | 705 | 675 |
| Semi detached | 93 | 20 | 165 | 31 |
| Sweden | 69 | 56 | 136 | 112 |
| Order backlog (gross) (DKKm) |
3,497 | 3,775 | 3,497 | 3,775 |
| Detached | 2,525 | 2,867 | 2,525 | 2,867 |
| Semi detached | 658 | 584 | 658 | 584 |
| Sweden | 314 | 324 | 314 | 324 |
| Order backlog (net) (DKKm) | 2,547 | 2,912 | 2,547 | 2,912 |
| Detached | 1,832 | 2,255 | 1,832 | 2,255 |
| Semi detached | 434 | 378 | 434 | 378 |
| Sweden | 281 | 279 | 281 | 279 |
| Share of own land* (%) | 10.1% | 20.1% | 15.7% | 15.9% |
| Detached (%) | 8.0% | 17.8% | 8.2% | 14.2% |
| Semi-detached (%) | 18.3% | 60.0% | 47.9% | 51.6% |
*Only Denmark
Net cash generated from operating activities was DKK 7 million compared with DKK 72 million in H1 2021. Cash flows were supported by the higher operating profit offset by changes in working capital.
Net investments of DKK 17 million were generated during H1 2022, against DKK 7 million in H1 2021. Net investments mainly related to development projects and property, plant, and equipment.
Free cash flow was negative DKK 10 million against DKK 66 million in H1 2021, mainly driven by operating activities. Cash conversion was negative 6%.
Financing activities was negative DKK 29 million, against negative DKK 71 million in H1 2021. Payment of dividend to shareholders of DKK 132 million was paid in April 2022 while DKK 60 million was paid in April 2021. Proceeds from loan in H1 2022 of net DKK 153 million included funds to pay for acquired factory in Esbjerg Denmark of DKK 75 million.
Net interest-bearing debt (NIBD) totalled DKK 897 million on 30 June 2022 against DKK 713 million on 31 December 2021. The net interest-bearing debt to EBITDA ratio was 2.2x compared to 1.8x at year-end 2021. The increase was mainly due to the acquisition of the factory in Esbjerg.
The Groups equity decreased by DKK 71 million in H1 2022, to stand at DKK 1,814 million. The decrease was based dividend
payment of DKK 132 million in April 2022 and purchase of own shares of DKK 37 million in Q1 2022, partly offset from the profit for the period.
Net working capital totalled DKK 657 million on 30 June 2022, up from DKK 528 million on 30 June 2021. The change was mainly caused by an increase in trade and other receivables and contract liabilities. Net working capital increased from DKK 517 million. On 31 December 2021, DKK 75 million was deposited in June for the acquisition of the factory in Esbjerg, Denmark.
Inventories totalled DKK 313 million on 30 June 2022, from DKK 314 million on 30 June 2021, on 31 December 2021 inventories totalled DKK 316 million.
Contract assets (net) amounted to DKK 737 million compared to DKK 678 million end of H1 2021. The development reflected slightly higher building activity.
The order backlog (gross) on 30 June 2022 amounted to DKK 3,497 million compared to DKK 3,775 million on 30 June 2021. The Net order backlog on 30 June 2022 amounted to DKK 2,547 million against DKK 2,912 million on 31 December 2021. The decreased level backlog was due to lower sales rate in H1 2022 compared to H1 2021.
Deliveries amounted to 1,006 houses, which exceeded the H1 2021 figure of 818. In H1 2021, 15.7% of deliveries were houses built on own land. Full-year level is expected to be around 10%.
As of 30 June 2022, HusCompagniet's land bank comprised 239 individual land plots (including show houses and project houses) valued at DKK 226 million. As of 31 December 2021, HusCompagniet's land bank comprised 271 individual land plots (including show houses and project houses) valued at DKK 215 million.
A dividend of DKK 7.35 per share for the 2021 financial year was distributed following shareholder approval at the Annual General Meeting held on 8 April 2022.
HusCompaginet's dividend policy targets initial pay-out ratio of at least 50% of reported profit for the year by means of dividend to at least 25% by means of dividend, supplemented by means of share buyback for around 25%.
The dividend for 2021 financial year added up to a total dividend pay-out of approximately DKK 132 million, corresponding to pay-out ratio of 50% of the consolidated profit after tax.
On 18 August, HusCompagniet will initiate a collective redundancy process, primarily in the Detached segment. The reorganisation, including closing of offices, is expected to generate expenses of DKK 20-25 million that will impact special items for 2022.
No other events have occurred after the balance sheet date that are expected to have a material effect on HusCompagniet's financial position.
HusCompagniet reported total revenue of DKK 1,094 million in Q2 2022 up 0.9% from DKK 1,084 million in Q2 2021. Deliveries amounted to 526 houses an increase of 24.1% from 424 houses in Q2 2021. Revenue was positively impacted by the higher level of deliveries offset by high-cost inflation in the period.
Reported EBITDA before special items was DKK 76 million compared with DKK 101 million in Q2 2021. This corresponds to an EBITDA margin before special items of 6.9% compared to a margin of 9.3% in Q2 2021. Gross margin was 18.9% down from 21.2%. The quarter was affected by immediate surcharges imposed from suppliers.
Special items amounted to DKK 1 million in Q2 2022 related to the acquisition of the factory in Esbjerg, Denmark, compared to no Special items in Q2 2021.
Profit for the period from continued operations was DKK 45 million in Q2 2022, against DKK 68 million in Q2 2021.
Net cash generated from operating activities was DKK 13 million compared with DKK 62 million in Q2 2021. Inflow from operating profit was partly offset by changes in working capital. DKK 75 million was paid for the factory in Esbjerg, Denmark in June 2022.
Net investments of DKK 10 million were made during Q2 2022, against DKK 3 million in Q2 2021. Free cash flow
Free cash flow was DKK 3 million, against DKK 59 million in Q2 2021. Cash conversion was 4% for the quarter.
Financing activities was DKK 12 million, against negative DKK 69 million in Q2 2021. The financing activities were affected by temporarily proceeds from the revolving credit facility of net DKK 153 million partly offset by dividend payment of DKK 132 million.
Detached is our largest segment comprising 78% of total revenue in H1 2022. Semidetached and Sweden comprised 14% and 8%, respectively. For H1 2021, the revenue split between the segments was 81%, 12% and 7%, respectively.
Sales was 557 in H1 2022, down 43% or 424 houses from an extraordinary high level of 981 houses in Q2 2021. Q2 2022 sales came in at 279 houses.
Deliveries increased 4% totalling 705 in H1 2022 from 675 houses in H1 2021. Production utilisation increased in the period. Q2 2022 deliveries came in at 364 houses.
Revenue amounted to DKK 1,769 million, up 7% from DKK 1,651 million from H1 2021. The increase was driven by increased deliveries. Share of own land deliveries was 8.2% down from 14.2%.
The gross margin was 18.8% (20.2% y-o-y) with EBITDA before special items at DKK 139 million, corresponding to a margin of 7.8%.
EBITDA bsi margin decreased from 8.2% in H1 2021, primarily due to immediate surcharges from suppliers in Q2. Q2 2022 EBITDA bsi margin was 6.8%.
Average selling price (ASP) was DKK 2.4 million on par increased from DKK 2.2 million in H1 2021, reflecting a strong margin focus. Q2 2022 ASP was DKK 2.5 million.
| Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | |
|---|---|---|---|---|---|---|
| Sales | 626 | 721 | 545 | 484 | 374 | 358 |
| Deliveries | 394 | 424 | 390 | 623 | 480 | 526 |
Sales was 126 units, down from 138 in H1 2021. 77 were B2B sales. On 30 June 2022, the order book (net) was at DKK 434 million.
Revenue amounted to DKK 319 million, up from DKK 239 million in H1 2021. Revenue comprised mainly contacted work in progress. Share of own land in deliveries was 47.9%.
The gross margin was 8.4% (11.0% y-o-y) and EBITDA before special items DKK 13 million, corresponding to a margin of 4.1%. (7.3% y-oy). Semi-detached was on a lower margin compared to H1 2021, mainly due to internal transfer pricing as the majority of production was completed in the detached segment. The transfer pricing effect is expected to reduce over time as the Semi-detached organisation is increasing production capacity.
Average selling price (ASP) was DKK 1.8 million, an increase from DKK 1.3 million y-oy due to the delivery of larger projects with higher ASP. Share of own land deliveries decreased in the period. The Q2 2022 gross margin was 10.3% and an EBITDA margin at 3.6%.
Sales was 49 houses from 228 in H1 2021. Market demand declined and sales and marketing efforts were postponed in 2022 due to production capacity shortage at the Swedish factory. Increase in deliveries from 112 to 136, an increase of 21%.
Revenue amounted to DKK 178 million, up from DKK 150 million in H1 2021. The increase was driven by increased deliveries. The gross margin was 37.3% with EBITDA before special items at DKK 23.3 million, corresponding to an EBITDA margin of 13.1%. Average selling price (ASP) was DKK 1.3 million, on par with H1 2021 due to change in share of on-site construction projects.
The Q2 2022 gross margin was 36.9%, while the EBITDA margin was 12.0%.
The factory is undergoing automation upgrade to increase capacity.
We adjust the full-year 2022 guidance issued on 28 April 2022 due to lower expected sales for 2022, delayed effect of sales price adjustments and special items in relation to reorganisation.
• Revenue is expected to be DKK 4,100 – 4,400 million (previously DKK 4,250 – 4,550 million)
• EBITDA before special items is expected to be DKK 340 – 360 million (previously DKK 370-410 million)
• Operating profit (EBIT) is expected to be DKK 265 – 290 million (previously DKK 320- 360 million). EBIT guidance adjustment includes special items effect of DKK 20-25 million from reorganisation
HusCompagniet expects net debt to EBITDA before special items around 2.0x at the end of 2022 (previously below 2.25x). Several planned acquirements of new land plots are cancelled or postponed due to the current market situation.
| DKKm | Updated 28 April 2022 |
Initial Outlook 5 November 2021 |
|---|---|---|
| Revenue | 4,250-4,550 | 4,350-4,650 |
| EBITDA | 370-410 | 420-450 |
| EBIT Leverage ratio (NIBD/LTM |
320-360 | 370-400 |
| EBITDA bsi) | below 2.25x | below 2.0x |
The visibility has been reduced substantially due to the war in Ukraine and an uncertain geopolitical situation not seen in recent times. High-cost inflation, distressed supply chains, and rising interest rates are affecting the market situation. HusCompagniet are continuously adjusting sales prices to follow the market development.
Immediate surcharges were in April imposed from suppliers as high as up to 30%, due to accelerated energy prices. Continuous adjustments to sales prices are expected to positively impact margins in H2 2022.
Due to market slowdown in all segments, we adjust our assumptions for sales in 2022, and consequently deliveries are also adjusted
The 2022 guidance is based on no severe disruption of supply chains including gas supply emerging and on raw material prices not significantly exceeding current levels.
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.
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.
HusCompagniet is exposed to strategic, operational, and financial risks, which are described in the management review and the 2021 Annual Report prepared in accordance with IFRS.
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 2022. 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 2022 and the results of the Group's operations and cash flow for the period 1 January – 30 June 2022.
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, 18 August 2022
Executive Board:
Group CEO Group CFO
Martin Ravn-Nielsen Mads Dehlsen Winther
Board of Directors:
Claus V. Hemmingsen Anja B. Eriksson Chairperson Vice chairperson
Stig Pastwa Ylva Ekborn
Mads Munkholt Ditlevsen Bo Rygaard
| DKK'000 | Note | H1 2022 | H1 2021 | Q2 2022 | Q2 2021 | FY 2021 |
|---|---|---|---|---|---|---|
| Revenue | 3, 4 | 2,266,150 | 2,040,504 | 1,093,638 | 1,083,667 | 4,314,783 |
| Cost of Sales | -1,840,892 | -1,621,117 | -886,650 | -854,273 | -3,439,886 | |
| Gross profit | 425,258 | 419,387 | 206,988 | 229,394 | 874,897 | |
| Staff cost | -176,657 | -185,582 | -90,929 | -98,535 | -349,059 | |
| Other external expenses | -73,504 | -58,719 | -40,451 | -29,739 | -124,900 | |
| Other operating income | 106 | 107 | 106 | 76 | 173 | |
| Operating profit before depreciation and amortisation (EBITDA) before special items |
175,202 | 175,193 | 75,714 | 101,196 | 401,111 | |
| Special items | -722 | -1 | -722 | 0 | 0 | |
| Operating profit before depreciation and amortisation (EBITDA) after special items |
174,481 | 175,192 | 74,992 | 101,196 | 401,111 | |
| Depreciation and amortisation | -23,207 | -23,106 | -11,446 | -11,190 | -46,118 | |
| Operating profit (EBIT) | 151,274 | 152,086 | 63,546 | 90,006 | 354,993 | |
| Financial income | 23 | 37 | 14 | 28 | 300 | |
| Financial expenses | -10,311 | -10,277 | -5,451 | -5,359 | -20,761 | |
| Profit before tax from continuing operations | 140,986 | 141,845 | 58,112 | 84,676 | 334,533 | |
| Tax on profit | -32,069 | -32,455 | -13,437 | -16,767 | -69,981 | |
| Profit for the period from continuing operations | 108,918 | 109,390 | 44,676 | 67,909 | 264,552 | |
| Profit/(loss) after tax for the period from discontinued operations | 5 | -9,665 | -75 | -8,601 | 169 | 0 |
| Profit for the period | 99,253 | 109,316 | 36,075 | 68,078 | 264,552 | |
| Profits attributable to: | ||||||
| DKK'000 | H1 2022 | H1 2021 | Q2 2022 | Q2 2021 | FY 2021 | |
| Equity owners of the Company | 99,253 | 109,316 | 36,075 | 68,078 | 264,552 | |
| Earnings per share: | ||||||
| DKK | Note | H1 2022 | H1 2021 | Q2 2022 | Q2 2021 | FY 2021 |
| Earnings per share (EPS Basic) | 6.0 | 5.5 | 2.2 | 3.4 | 13.7 | |
| Diluted earnings per share (EPS-D) | 5.9 | 5.5 | 2.2 | 3.4 | 13.7 | |
| Earnings per share (EPS Basic) continuing operations | 6.5 | 5.5 | 2.7 | 3.4 | 13.7 | |
| Diluted earnings per share (EPS-D) continuing operations | 6.5 | 5.5 | 2.7 | 3.4 | 13.7 | |
| Earnings per share (EPS) (DKK) from discontinued business | -0.6 | 0.0 | -0.5 | 0.0 | 0.0 | |
| Diluted earnings per share (EPS-D) (DKK) from discontinued business | -0.6 | 0.0 | -0.5 | 0.0 | 0.0 |
| DKK'000 | Note | H1 2022 | H1 2021 | Q2 2022 | Q2 2021 | FY 2021 |
|---|---|---|---|---|---|---|
| Profit for the year | 99,253 | 109,316 | 36,075 | 68,078 | 264,552 | |
| 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 | -4,455 | -462 | -5,551 | 0 | -2,112 | |
| Other comprehensive income, net of tax | -4,455 | -462 | -5,551 | 0 | -2,112 | |
| Total comprehensive income for the year | 94,808 | 108,854 | 30,524 | 68,078 | 262,440 | |
| Total comprehensive income attributable to: |
| DKK'000 | Note | H1 2022 | H1 2021 | Q2 2022 | Q2 2021 | FY 2021 |
|---|---|---|---|---|---|---|
| Equity owners of the Company | 94,808 | 108,854 | 30,524 | 68,078 | 262,440 |
| DKK'000 | Note | H1 2022 | FY 2021 | H1 2021 |
|---|---|---|---|---|
| Assets | ||||
| Non-current assets | ||||
| Goodwill | 2,019,275 | 2,031,471 | 2,035,014 | |
| Intangible assets | 39,297 | 39,741 | 40,501 | |
| Right-of-use assets | 77,805 | 87,709 | 95,670 | |
| Property, plant, and equipment | 27,662 | 20,728 | 19,993 | |
| Deferred tax asset | 27,568 | 28,153 | 0 | |
| Other receivables | 4,756 | 4,756 | 4,756 | |
| Total non-current assets | 2,196,363 | 2,212,558 | 2,195,934 | |
| Current assets | ||||
| Inventories | 6 | 312,549 | 315,926 | 314,422 |
| Contract assets | 7 | 800,096 | 809,330 | 806,791 |
| Trade and other receivables | 302,562 | 170,272 | 246,360 | |
| Prepayments | 11,992 | 14,203 | 13,063 | |
| Cash and cash equivalents | 15,063 | 55,420 | 75,038 | |
| Total current assets | 1,442,263 | 1,365,151 | 1,455,674 | |
| Total assets | 3,638,626 | 3,577,709 | 3,651,608 |
| DKK'000 | Note | H1 2022 | FY 2021 | H1 2021 |
|---|---|---|---|---|
| Equity and liabilities | ||||
| Equity | ||||
| Share capital | 91,050 | 100,000 | 100,000 | |
| Retained earnings and other reserves | 1,722,579 | 1,784,982 | 1,809,065 | |
| Total equity | 1,813,629 | 1,884,982 | 1,909,065 | |
| Liabilities | ||||
| Non-current liabilities | ||||
| Borrowings | 672,442 | 672,058 | 671,674 | |
| Lease liabilities | 64,337 | 73,247 | 82,005 | |
| Provisions | 7,977 | 8,680 | 8,555 | |
| Deferred tax liability | 38,373 | 38,683 | 10,117 | |
| Total non-current liabilities | 783,130 | 792,668 | 772,351 | |
| Current liabilities | ||||
| Lease liabilities | 21,876 | 23,076 | 23,150 | |
| Trade and other payables | 612,135 | 554,333 | 630,091 | |
| Contract liabilities | 7 | 62,613 | 84,730 | 129,234 |
| Prepayments from customers | 7 | 10,133 | 10,081 | 32,235 |
| Provisions | 31,910 | 34,718 | 34,222 | |
| Income tax payable | 60,390 | 44,998 | 36,192 | |
| Other liabilities | 89,648 | 148,123 | 85,068 | |
| Bank overdrafts | 153,162 | 0 | 0 | |
| Total current liabilities | 1,041,867 | 900,059 | 970,192 | |
| Total liabilities | 1,824,997 | 1,692,727 | 1,742,543 | |
| Total equity and liabilities | 3,638,626 | 3,577,709 | 3,651,608 |
| DKK'000 | Note H1 2022 |
H1 2021 | FY 2021 |
|---|---|---|---|
| Cash flow from operating activities | |||
| EBITDA, after special items | |||
| EBITDA, discontinued activities | 174,481 | 175,192 | 401,111 |
| EBITDA | 0 | -75 | 5,501 |
| Adjustments for non-cash items | 174,481 | 175,117 | 406,612 |
| Adjusted EBITDA | 1,425 | 3,997 | 11,495 |
| Changes in working capital | 175,906 | 179,114 | 418,107 |
| Cash flow from operating activities before financial items | -142,196 | -76,052 | -84,508 |
| Interest received | 33,710 | 103,062 | 333,599 |
| Interest elements of lease payments | 23 | 36 | 300 |
| Interest paid | -2,604 | -2,871 | -5,736 |
| Corporation tax paid | -7,706 | -7,406 | -15,025 |
| Net cash generated from operating activities | -16,402 | -20,384 | -54,661 |
| 7,021 | 72,437 | 258,477 | |
| Cash flow from investing activities | |||
| Acquisition of assets recognised as property, plant, and equipment Acquisition of assets recognised as intangible assets |
-9,184 | -3.883 | -11,327 |
| -7,631 | -2.854 | -10,435 | |
| Net cash generated from investing activities | -16,815 | -6,737 | -21,762 |
| Cash flow from financing activities | |||
| Repayment of bank overdraft | -50,000 | 1,340 | 0 |
| Proceeds from bank overdraft | 203,546 | 0 | 0 |
| Repayment of lease liabilities | -13,088 | -12,399 | -21,850 |
| Dividend to equity holders | -132,276 | -60,000 | -60,000 |
| Dividends from own treasury shares | 0 | 410 | 410 |
| Acquisition of own shares | -36,821 | 0 | -179,990 |
| Net cash generated from financing activities | -28,639 | -70,648 | -261,430 |
| Total cash flows | -38,433 | -4,948 | -24,715 |
| Cash and cash equivalents on 1 January | 55,420 | 77,916 | 77,467 |
| Net foreign currency gains or losses | -1,925 | 2,070 | 2,668 |
| Cash and cash equivalents on 30 June/31 December | 15,063 | 75,038 | 55,420 |
| Free cash flow | -9,794 | 65,700 | 236,715 |
2022
| DKK'000 | Share capital |
Foreign currency translation reserve |
Retained earnings |
Proposed dividend |
Total |
|---|---|---|---|---|---|
| Equity on 1 January | 100,000 | 1,656 | 1,651,050 | 132,276 | 1,884,982 |
| Profit for the period |
0 | 0 | 99,253 | 0 | 99,253 |
| Other comprehensive income: Foreign currency translation |
|||||
| differences | 0 | -4,455 | 0 | 0 | -4,455 |
| Total other comprehensive income |
0 | -4,455 | 0 | 0 | -4,455 |
| Transactions with owners of the Company and other equity transactions: |
|||||
| Capital reduction | -8,950 | 0 | 8,950 | 0 | 0 |
| Share-based payment | 0 | 0 | 2,946 | 0 | 2,946 |
| Purchase of own shares | 0 | 0 | -36,821 | 0 | -36,821 |
| Dividends, own shares | 0 | 0 | 0 | 0 | 0 |
| Dividends paid | 0 | 0 | 0 | -132,276 | -132,276 |
| Total transactions with owners of the Company and other equity transactions |
-8,950 | 0 | -24,925 | -132,276 | -166,151 |
| Equity on 30 June | 91,050 | -2,799 | 1,725,378 | 0 | 1,813,629 |
| DKK'000 | Share capital |
Foreign currency translation reserve |
Retained earnings |
Proposed dividend |
Total |
|---|---|---|---|---|---|
| Equity on 1 January | 100,000 | 3,768 | 1,693,424 | 60,000 | 1.857,192 |
| Profit for the period |
0 | 0 | 109,316 | 0 | 109,316 |
| Other comprehensive income: | |||||
| Foreign currency translation differences | 0 | -462 | 0 | 0 | -462 |
| Total other comprehensive | |||||
| income | 0 | -462 | 0 | 0 | -462 |
| Transactions with owners of the Company and other equity transactions: Share-based |
|||||
| payment Dividends, own |
0 | 0 | 2,609 | 0 | 2,609 |
| shares | 0 | 0 | 410 | 0 | 410 |
| Dividends paid | 0 | 0 | 0 | -60,000 | -60,000 |
| Total transactions with owners of the Company and other equity transactions |
0 | 0 | 3,019 | -60,000 | -56,981 |
| Equity on 30 June | 100,000 | 3,306 | 1,805,759 | 0 | 1,909,065 |
| 1. | Summary of significant accounting policies | 24 |
|---|---|---|
| 2. | Accounting estimates and judgements | 24 |
| 3. | Segment information | 24 |
| 4. | Revenue | 27 |
| 5. | Discontinued Business | 29 |
| 6. | Inventory | 30 |
| 7. | Contract assets | 30 |
| 8. | Business combinations | 31 |
| 9. | Events after the balance sheet date | 31 |
This interim condensed financial report comprises the period 1 January – 30 June 2022.
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 2021 consolidated financial statements, to which reference is made except the changes stated below. A full description of accounting policies is provided in the 2021 consolidated financial statements.
HusCompagniet A/S has implemented the following new or amended standards and interpretations with effect from 1 January 2022:
· Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and Annual Improvements 2018-2020.
HusCompagniet A/S has implemented the standards and interpretations that became effective in the EU for 2022. None of these standards or interpretations has affected recognition or measurement in 2022 or is expected to affect the Group.
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 2021.
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 comprise brick houses built on site and plots, includes both business-to-business and business-to-consumers
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.
| 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% | -0% | 18.8% |
| Other operating income | 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 | 138,704 | 13,194 | 23,305 | 175,203 | 1,146 | 178,337 |
| EBITDA margin | 7.8% | 4.1% | 13.1% | 7.7% | - | 7.9% |
| H1 2021 | Denmark | Sweden | ||||
|---|---|---|---|---|---|---|
| DKK'000 | Detached houses |
Semi-detached houses |
Wooden houses |
Total continuing operations |
Total discontinued operations |
Total segments |
| Revenue | ||||||
| External customers | 1,779,798 | 110,424 | 150,282 | 2,040,504 | 0 | 2,040,504 |
| Inter-segment | -128,713 | 128,713 | 0 | 0 | 0 | 0 |
| Total revenue | 1,651,085 | 239,137 | 150,282 | 2,040,504 | 0 | 2,040,504 |
| Income/(expenses) | ||||||
| Cost of goods | -1,440,987 | -89,265 | -90,865 | -1,621,117 | 0 | -1,621,117 |
| Inter-segment | 123,564 | -123,564 | 0 | 0 | 0 | 0 |
| Segment gross profit | 333,663 | 26,307 | 59,416 | 419,387 | 0 | 419,387 |
| Gross margin | 20.2% | 11.0% | 39.5% | 20.6% | - | 20.6% |
| Other operating | ||||||
| income | 107 | 0 | 0 | 107 | 0 | 107 |
| Staff costs | -157,444 | -8,473 | -19,666 | -185,582 | -4 | -185,586 |
| Other operating expenses |
-41,590 | -458 | -16,671 | -58,719 | 155 | -58,564 |
| Segment EBITDA | 134,737 | 17,376 | 23,079 | 175,192 | 151 | 175,344 |
| EBITDA margin | 8.2% | 7.3% | 15.4% | 8.6% | - | 8.6% |
| DKK'000 | 2022 H1 | 2021 H1 |
|---|---|---|
| Segment EBITDA from continuing operations | 174,481 | 175,192 |
| Segment EBITDA from discontinued operations | 1,146 | 151 |
| Special items from discontinued operations | -1,146 | -1 |
| Depreciation and amortisations | -23,207 | -23,106 |
| Financial income | 1,437 | 12,317 |
| Financial expenses | -21,463 | -22,783 |
| Profit before tax from discontinued operations | 9,738 | 75 |
| Profit before tax from continuing operations | 140,986 | 141,845 |
| 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 Sales value houses sold on |
1,594,646 | 159,434 | 178,185 | 1,932,264 | 0 | 1,932,264 | |
| 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 |
| Denmark | Sweden | |||||
|---|---|---|---|---|---|---|
| DKK'000 | Detached houses |
Semi detached houses |
Wooden houses |
Total continuing operations |
Total discontinued operations |
Total segments |
| Show- and project 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 segment and category - Contracted Sales
H1 2021 Denmark Sweden DKK'000 Detached houses Semidetached houses Wooden houses Total continuing operations Total discontinued operations Total segments Sales value houses sold on customers building sites 1,319,724 41,771 150,282 1,511,777 0 1,511,777 Sales value houses sold on own building sites 180,649 197,366 0 378,015 0 378,015 Total Contracted sales 1,500,373 239,137 150,282 1,889,792 0 1,889,792
Revenue per segment and category - Non-contracted sales
H1 2021
| Denmark | Sweden | |||||
|---|---|---|---|---|---|---|
| DKK'000 | Detached houses |
Semi detached houses |
Wooden houses | Total continuing operations |
Total discontinued operations |
|
| Total segments | ||||||
| Show houses | 67,497 | 0 | 0 | 67,497 | 0 | 67,497 |
| Other revenue | ||||||
| 0 | 0 | 0 | 0 | 0 | 0 | |
| Sales of land plots | ||||||
| 83,215 | 0 | 0 | 83,215 | 0 | 83,215 | |
| Total Non-contracted sales |
150,712 | 0 | 0 | 150,712 | 0 | 150,712 |
| Total Revenue | 1,651,085 | 239,137 | 150,282 | 2,040,504 | 0 | 2,040,504 |
Revenue per continuing and discontinued operations
| DKK'000 | 2022 H1 | 2021 H1 |
|---|---|---|
| Total revenue from continuing operations | 2,266,150 | 2,040,504 |
| Total revenue from discontinued operations | 0 | 0 |
| Total revenue | 2,266,150 | 2,040,504 |
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.
Conversely, non-contracted sales comprise of:
The sale of houses constructed on own land to which no customer contract has been entered into before construction starts.
The sale of detached land-plots to which no customer contract has been entered into before purchase and development of the land plots.
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 2023.
| DKK'000 | H1 2022 | H1 2021 |
|---|---|---|
| Revenue | 0 | 0 |
| Expenses | 0 | 151 |
| Impairment | 0 | 0 |
| Operating income | 0 | 151 |
| Finance Costs | -9,738 | -226 |
| Profit/(loss) before tax from discontinued operations | -9,738 | -75 |
| Tax on profit/(loss) | 74 | 0 |
| Profit/(loss) after tax for the period from discontinued operations | -9,665 | -75 |
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 2022 | H1 2021 |
|---|---|---|
| Operating | -2,031 | -75 |
| Investing | 0 | 0 |
| Financing from group entities | 17,000 | 0 |
| Net cash inflow/(outflow) | 14,969 | -75 |
| DKK'000 | H1 2022 | H1 2021 | FY 2021 |
|---|---|---|---|
| Raw materials | 9,793 | 7,063 | 9,766 |
| Show-houses and semi-detached houses (non-contracted) | 159,735 | 141,697 | 140,718 |
| Land | 143,066 | 170,662 | 165,442 |
| Write-down inventories | 0 | -5,000 | 0 |
| Total inventories | 312,549 | 314,422 | 315,926 |
| DKK'000 | H1 2022 | H1 2021 | FY 2021 |
|---|---|---|---|
| Selling price of contract assets | 810,395 | 838,614 | 859,079 |
| Prepayments from customers | -72,911 | -161,057 | -134,478 |
| 737,484 | 677,557 | 724,601 |
Calculated as follows:
| Prepayments from customers regarding construction contracts not yet started | 10,133 | 32,235 | 10,081 |
|---|---|---|---|
| 737,484 | 677,557 | 724,601 | |
| Contract liabilities | -62,613 | -129,234 | -84,730 |
| Contract assets | 800,096 | 806,791 | 809,330 |
| Delivery obligations | H1 2022 | H1 2021 | FY 2021 |
|---|---|---|---|
| Within one year | 3,282,289 | 3,760,575 | 3,553,226 |
| After one year | 214,232 | 53,567 | 185,976 |
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.
Contract liabilities were largely affected by a high level of deposits in 2021 due to the negative interest rate environment. As a result, the Company removed the deposit option which is the main reason H1 2022 prepayments are lower than H1 2021.
Delivery obligations are lower in H1 2022 due to a decline in sales compared to H1 2021.
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.
HusCompagniet A/S has closed the agreement to acquire 100% of the shares in Danhaus Production A/S from NVV GmbH and JAWS Holding ApS (Danhaus) at an enterprise value of DKK 90 million on a debt-free basis. The acquisition was completed on 1 July 2022, hence HusCompagniet closing balance and thereby also initial accounting for the business combination is incomplete at time of report Q2 2022. It is expected that the majority of the purchase price will be allocated to tangible assets due to the factory owned by Danhaus Production A/S. The intended primary use for the factory will be to produce components to the detached segment and increase the level of automation. The purchase price does not have any contingent liabilities related. The acquisition-related costs amount to DKK 0,7 million.
On 18 August, HusCompagniet will initiate a collective redundancy process, primarily in the Detached segment. The reorganisation, including closing of offices, is expected to generate expenses of DKK 20-25 million that will impact special items for 2022.
No other events have occurred after the balance sheet date that are expected to have a material effect on HusCompagniet's financial position.
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