TRAINERS’ HOUSE GROUP HALF YEAR REPORT 1 JANUARY – 30 JUNE 2023
TRAINERS' HOUSE GROUP, STOCK EXCHANGE RELEASE, 20 JULY 2023 at
8:30
January-June 2023 in brief
- net sales EUR 4.9 million (EUR 5.5 million), change of -10.2 %
compared to the corresponding period of the previous year
- operating result EUR 0.2 million (EUR 0.7 million), 3.5% of net
sales (13.6%)
- cash flow from operations EUR 0.3 million (EUR 0.7
million)
- earnings per share EUR 0.08 (EUR 0.35)
April-June 2023 in brief
- net sales EUR 2.2 million (EUR 2.8 million), change of -23.0 %
compared to the corresponding period of the previous year
- operating result EUR -0.2 million (EUR 0.4 million), -10.5% of
net sales (13.7%)
- cash flow from operations EUR 0.0 million (EUR 0.4
million)
- earnings per share EUR -0.11 (EUR 0.18)
Key figures at the end of second quarter of 2023
- cash and cash equivalents EUR 1.8 million (EUR 2.6
million)
- interest-bearing liabilities of EUR 0.3 million (EUR 0.6
million) and interest-bearing net debt of EUR -1.5 million (EUR
-2.0 million).
- equity ratio 64.1 % (65.5 %)
OUTLOOK FOR 2023
The company estimates the operating profit for 2023 to be
between EUR -0.4 and 0.4 million. CEO ARTO HEIMONEN
The half year was bifurcated. The first quarter was excellent,
the latter was difficult.
The market situation weakened. It was more difficult than usual
to get new assignments. In addition, more time was required to
arrange the meetings for Trainers’ House’s customers. This lowered
profitability.
When the outlook worsened, the company immediately took
adjustment measures, considering the long-term operating
conditions.
The amount of customer meetings of consultants was even higher
compared to the first quarter. The reward was received in June,
when sales exceeded expectations.
Improving cash flow and profitability are the most important
goals of the company.
The purpose of Trainers’ House is to help people forward. This
is possible by touching people, electrifying management and
producing verifiable results.
Thank you to customers and employees.
More information: Arto Heimonen, CEO, +358 404 123 456 Saku
Keskitalo, CFO, +358 404 111 111
OPERATIONAL REVIEW
During the review period, the company focused on serving its
customers.
Due to the weakening of the market conditions and to minimize
its effects, Trainers' House carried out change negotiations,
resulting in reorganization of processes, tasks, and reduction of
personnel.
During the review period, the company temporarily closed its
office in Tallinn.
In April the company distributed the first installment of a
dividend of EUR 0.26 per share to its owners. The second part of
the dividend payment of EUR 0.21 per share will be paid on 21
December 2023. FINANCIAL PERFORMANCE Net sales for the reporting
period were EUR 4.9 million (EUR 5.5 million). Operating result was
EUR 0.2 million, 3.5 % of net sales (EUR 0.7 million, 13.6 %). The
result for the period was EUR 0.2 million, 3.6 % of net sales (EUR
0.7 million, 13.5 %).
The breakdown of the Group's figures (unit thousand euros) is
presented in the following table:
|
Group’s main figures (kEUR) |
1-6/2023 |
1-6/2022 |
|
Net sales |
4 943 |
5 502 |
|
Other operating income |
0 |
6 |
|
Expenses arising from employee benefits |
-3 251 |
-3 225 |
|
Other expenses |
-1 251 |
-1 307 |
|
EBITDA |
441 |
976 |
|
Depreciation and impairment losses |
-266 |
-229 |
|
EBIT |
175 |
747 |
|
EBIT, % of net sales |
3.5 |
13.6 |
|
Financial income and expenses |
2 |
-8 |
|
Result before taxes |
177 |
739 |
|
Income taxes |
2 |
3 |
|
Result of the period |
179 |
742 |
|
Result, % of net sales |
3.6 |
13.5 |
LONG-TERM OBJECTIVES
The company's long-term goal is profitable growth. FINANCING,
INVESTMENTS AND SOLVENCY
|
Cash flow and key financing figures (unit million euros) |
1-6/2023 |
1-6/2022 |
|
Cash flow from operations before financial items |
0.3 |
0.7 |
|
Cash flow from operations |
0.3 |
0.7 |
|
Cash flow from investments |
0.0 |
0.0 |
|
Cash flow from financing |
-0.8 |
-1.4 |
|
Total cash flow |
-0.5 |
-0.8 |
|
|
|
|
|
|
6/2023 |
6/2022 |
|
Cash |
1.8 |
2.6 |
|
Interest-bearing debt |
0.3 |
0.6 |
|
Equity ratio % |
64.1 |
65.5 |
MAJOR RISKS AND UNCERTAINTIES
Trainers’ House’s business is sensitive to economic
fluctuations.
The general economic situation internationally and in Finland
contains significant risks. The war in Europe, the tense world
political situation and the possible expansion of the crisis can
cause rapid changes in the operating environment.
Changes in the openness of Europe, the freedom of world trade
and the world political situation affect the exports of Finnish
companies, which is reflected in the demand of the domestic
market.
High inflation and the resulting increase in interest rates have
a negative effect on economic activity.
The constant competition for the best employees affects
recruitment and the commitment of key personnel.
The above-mentioned risks, when realized alone or together, have
a significant impact on the company's operations.
The company divides the risk factors affecting business,
earnings, and market capitalization into five main categories:
market and business risks, personnel-related risks, technology and
information security risks, financial risks, and legal risks.
Trainers’ House has sought to hedge against the adverse effects
of other risks with comprehensive insurance policies. These include
statutory insurance, liability and property insurance and legal
expenses insurance. Insurance coverage, insurance values and
deductibles are reviewed annually together with the insurance
company.
The Management Team reports to the Board on a monthly basis on
key business-related risks and, where necessary, risk management
measures.
The Group has the reporting systems required for effective
business monitoring. Internal control is linked to the company’s
vision, strategic goals and the business goals set on the basis of
them.
The realization of business objectives and the Group’s financial
development are monitored on a monthly basis through the Group’s
corporate governance system. As an essential part of the control
system, actual data and up-to-date forecasts are reviewed monthly
by the Group Management Team. The control system includes, among
other things, sales reporting, an income statement, a rolling
revenue and profit forecast, and key figures that are important to
operations.
Trainers’ House is an expert organization. The magnitude of
market and business risks is difficult to determine. Typical risks
in this area are related to, for example, general economic
development, customer distribution, technology choices, the
development of competition and the management of personnel
costs.
Risks are managed through the planning and regular monitoring of
sales, human resources, and operating expenses, which enables rapid
action when circumstances change. The risks of trade receivables
have been taken into account by the recognition of expenses based
on the age of the receivables and individual risk analyzes.
The goal of Trainers’ House’s financial risk management is to
secure the availability of equity and debt financing on competitive
terms and to reduce the impact of adverse market movements on the
company’s operations.
Financial risks are divided into four categories, which are
liquidity, interest rate risks, currency risks and credit risks.
Each risk is monitored separately. Liquidity and interest rate
risks are reduced with sufficient cash resources and efficient
collection of receivables. Currency risks are low as Trainers’
House operates primarily in the euro market. In financial risk
management, the focus is on liquidity.
The success of Trainers’ House as an expert organization depends
on its ability to attract and retain skilled staff. In addition to
a competitive salary, personnel risks are managed through incentive
schemes and investments in personnel training, career opportunities
and general well-being.
Technology is a key part of Trainers’ House’s business.
Technology risks include, but are not limited to, supplier risk,
risks related to internal systems, challenges posed by
technological change, and security risks. Risks are protected
against long-term cooperation with technology suppliers,
appropriate security systems, staff training and regular security
audits.
Trainers’ House’s legal risks are mainly focused on the
contractual relationship between the company and customers or
service providers. At their most typical, they relate to delivery
responsibility and the management of intellectual property rights.
In order to manage the risks related to contracts and intellectual
property rights, the company has internal guidelines for
contractual procedures. In the company’s view, the contractual
risks are not unusual.
At the end of the review period, goodwill and other intangible
assets recognized in the balance sheet have been tested in the
normal way. The test did not reveal any need for impairment.
The consolidated balance sheet of Trainers’ House has goodwill
of EUR 2.1 million. The balance sheet value of other intangible
assets is EUR 1.0 million. If the Group's profitability does not
develop as forecasted or other external factors independent of the
Group's operations, such as interest rates, change significantly,
it is possible that goodwill and other intangible assets will have
to be written off. Recognition of an impairment loss would have no
effect on the Group's cash flow.
Due to the project nature of the operations, the order backlog
is short, and predictability is therefore challenging.
The description of potential risks is not comprehensive.
Trainers' House conducts continuous risk assessment in connection
with its operations and strives to hedge against identified
risks.
Investors have also been informed about the risks in the
company’s annual review and on the website at
www.trainershouse.fi.
PERSONNEL At the end of the review period, the Group had 118
(143) employees. As before, the company reports the number of
employees converted to full-time employees.
DECISIONS REACHED AT THE ANNUAL GENERAL MEETING
The annual general meeting of Trainers' House Plc was held on 29
March 2023 in Helsinki.
The annual general meeting confirmed the financial statements
and discharged CEO and the members of the Board of Directors from
liability for the fiscal year 1 January - 31 December 2022.
The annual general meeting decided, in accordance with the
board's proposal, that the company will distribute a dividend of
EUR 0.47 per each company share. The dividend will be paid in
two installments so that EUR 0.26 will be paid on 26 April 2023
(dividend payment record date 19 April 2023) and EUR 0.21 will be
paid on 21 December 2023 (dividend payment record date 14 December
2023). The dividend is paid to the shareholder who is entered in
the company's shareholder register on the record date of the
dividend payment.
Aarne Aktan, Jarmo Hyökyvaara, Elma Palsila and Jari Sarasvuo
were re-elected as members, and Emilia Tauriainen as a new member
to the Board of Directors. In the board meeting held after the
annual general meeting, the Board of Directors elected Jari
Sarasvuo as the chairperson of the board.
The annual general meeting decided that the board member's
remuneration shall be EUR 2,500 per month and the chairperson's
remuneration will be EUR 4,500 per month.
Ernst & Young Oy was re-elected as the company's auditor.
The remuneration to the auditor is paid according to the auditor's
reasonable invoice.
The annual general meeting decided on amending Article 12 of the
Articles of Association so that the general meeting can be held
without a physical meeting place as a remote meeting. A new
paragraph will be added to Article 12 of the Articles of
Association, which will read in its entirety as follows:
"The board can decide that the general meeting is held without a
meeting place whereby the shareholders shall exercise their power
of decision in full in real-time during the meeting using
telecommunication connection and technical means (remote meeting).”
SHARES AND SHARE CAPITAL The company’s share is listed on Nasdaq
Helsinki Ltd under the name Trainers’ House Plc (TRH1V).
At the end of the reporting period, Trainers’ House Plc had
2,147,826 shares and a registered share capital of EUR 880,743.59.
The company does not hold any of its own shares. There have been no
changes in the share capital during the period.
Share performance and trading
During the period under review, a total of 149 thousand shares,
or 7.0 % of the average number of all company shares (452 thousand
shares, 21.1 %), were traded on Nasdaq Helsinki for a value of EUR
0.8 million (EUR 3.4 million). The period’s highest share quotation
was EUR 6.12 (EUR 9.80), the lowest EUR 3.96 (EUR 5.86) and the
closing price EUR 4.20 (EUR 5.98). The weighted average price was
EUR 5.17 (EUR 7.53). At the closing price on 30 June 2023, the
company’s market capitalization was EUR 9.0 million (EUR 12.8
million).
SUMMARY OF FINANCIAL STATEMENTS AND NOTES The report has been
prepared in accordance with IAS 34 standard. The report has been
prepared in accordance with IFRS standards and interpretations that
have been approved for application in the EU and are in force on 1
January 2023. In this interim report Trainers’ House has followed
the same accounting policies and calculation methods as in the 2022
annual financial statements. The figures given in the interim
report are unaudited.
|
INCOME STATEMENT IFRS (kEUR) |
1-6/2023 |
1-6/2022 |
1-12/2022 |
|
NET SALES |
4 943 |
5 502 |
9 753 |
|
Other operating income |
0 |
6 |
6 |
|
Expenses: |
|
|
|
|
Materials and services |
-222 |
-261 |
-484 |
|
Personnel-related expenses |
-3 251 |
-3 225 |
-6 146 |
|
Depreciation and impairment losses |
-266 |
-229 |
-491 |
|
Other operating expenses |
-1 029 |
-1 046 |
-2 064 |
|
Total expenses |
-4 768 |
-4 760 |
-9 185 |
|
Operating result |
175 |
747 |
574 |
|
Financial income and expenses |
2 |
-8 |
-15 |
|
Result before taxes |
177 |
739 |
559 |
|
Income taxes |
2 |
3 |
22 |
|
RESULT OF THE PERIOD |
179 |
742 |
581 |
|
Result attributable to owners of the parent company |
179 |
742 |
581 |
|
Earnings per share, EUR |
0.08 |
0.35 |
0.27 |
|
Earnings per share attributable to owners of the parent company,
EUR |
0.08 |
0.35 |
0.27 |
|
BALANCE SHEET IFRS (kEUR) |
6/2023 |
6/2022 |
12/2022 |
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Tangible assets |
510 |
716 |
730 |
|
Goodwill |
2 129 |
2 129 |
2 129 |
|
Other intangible assets |
1 046 |
1 132 |
1 089 |
|
Long-term receivables |
|
|
|
|
Other receivables, long-term |
155 |
190 |
172 |
|
Deferred tax receivables |
205 |
200 |
208 |
|
Total long-term receivables |
360 |
390 |
380 |
|
Total non-current assets |
4 045 |
4 367 |
4 328 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Account receivables and other receivables |
870 |
1 265 |
1 183 |
|
Cash and cash equivalents |
1 787 |
2 559 |
2 247 |
|
Total current assets |
2 657 |
3 824 |
3 430 |
|
TOTAL ASSETS |
6 702 |
8 191 |
7 758 |
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY AND LIABILITIES |
|
|
|
|
Equity attributable to the owners of the parent company |
|
|
|
|
Share capital |
881 |
881 |
881 |
|
Distributable non-restricted equity fund |
37 |
37 |
37 |
|
Retained earnings |
3 111 |
3 540 |
3 540 |
|
Result of the period |
179 |
742 |
581 |
|
Total shareholders’ equity |
4 209 |
5 200 |
5 039 |
|
Long-term liabilities |
|
|
|
|
Deferred tax liabilities |
208 |
225 |
213 |
|
Long-term financial liabilities |
38 |
307 |
180 |
|
Total long-term liabilities |
246 |
532 |
394 |
|
Short-term liabilities |
|
|
|
|
Short-term financial liabilities |
291 |
259 |
337 |
|
Accounts payable and other liabilities |
1 956 |
2 200 |
1 989 |
|
Total short-term liabilities |
2 247 |
2 459 |
2 326 |
|
Total liabilities |
2 493 |
2 991 |
2 719 |
|
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES |
6 702 |
8 191 |
7 758 |
|
CASH FLOW STATEMENT IFRS (kEUR) |
1-6/2023 |
1-6/2022 |
1-12/2022 |
|
CASH FLOW FROM OPERATIONS |
|
|
|
|
Result of the period |
179 |
742 |
581 |
|
Adjustments |
314 |
233 |
490 |
|
Changes in working capital |
-193 |
-292 |
-74 |
|
Cash flow from operations before financial items and taxes |
300 |
683 |
997 |
|
Financial items and taxes paid |
-13 |
-8 |
-16 |
|
CASH FLOW FROM OPERATIONS |
287 |
675 |
982 |
|
CASH FLOW FROM INVESTMENTS |
|
|
|
|
Investments in tangible and intangible assets |
5 |
-47 |
-163 |
|
Granted loans |
0 |
0 |
-122 |
|
Repayment of loan receivables |
26 |
0 |
0 |
|
Interests received |
15 |
0 |
0 |
|
CASH FLOW FROM INVESTMENTS |
46 |
-47 |
-285 |
|
CASH FLOW FROM FINANCING |
|
|
|
|
Repayment of lease liabilities |
-197 |
-159 |
-326 |
|
Dividends paid* |
-597 |
-1 289 |
-1 503 |
|
CASH FLOW FROM FINANCING |
-793 |
-1 448 |
-1 828 |
|
TOTAL CASH FLOW |
-460 |
-820 |
-1 131 |
|
CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
|
|
Opening balance of cash and cash equivalents |
2 247 |
3 378 |
3 378 |
|
Closing balance of cash and cash equivalents |
1 787 |
2 559 |
2 247 |
|
CHANGE IN CASH AND CASH EQUIVALENTS |
-460 |
-820 |
-1 131 |
* The comparative figures 1-6/2022 for dividends paid have been
adjusted -38 kEUR related to withholding taxes paid during
1-6/2022. The corresponding change is reflected in the change in
working capital. CHANGE IN SHAREHOLDERS’ EQUITY (kEUR)Equity
attributable to owners of the parent company
|
CHANGE IN SHAREHOLDERS’ EQUITY (kEUR) |
Share capital |
Distributable non-restricted equity fund |
Retained earnings |
Total |
|
Equity 1 January 2022 |
881 |
37 |
5 043 |
5 961 |
|
Other comprehensive income |
|
|
742 |
|
|
Dividends |
|
|
-1 503 |
|
|
Equity 30 June 2022 |
881 |
37 |
4 282 |
5 200 |
|
|
|
|
|
|
|
Equity 1 January 2023 |
881 |
37 |
4 121 |
5 039 |
|
Other comprehensive income |
|
|
179 |
|
|
Dividends |
|
|
-1 009 |
|
|
Equity 30 June 2023 |
881 |
37 |
3 291 |
4 209 |
RELATED PARTY TRANSACTIONS
During the period under review, Trainers’ House had transactions
with Causa Prima Ltd, a company controlled by Jari Sarasvuo, the
Chairperson of the Board of Directors, and Pro Vividus Ltd and
Anorin Liekki Ltd, which are related to the company.
The following transactions took place with related parties:
|
RELATED PARTY TRANSACTIONS (kEUR) |
1-6/2023 |
1-6/2022 |
1-12/2022 |
|
Purchases during the period |
105 |
160 |
245 |
|
Liabilities at the end of the period |
52 |
60 |
53 |
|
PERSONNEL |
1-6/2023 |
1-6/2022 |
1-12/2022 |
|
Average number of personnel |
125 |
121 |
128 |
|
Personnel at the end of the period |
118 |
143 |
131 |
|
COMMITMENTS AND CONTINGENT LIABILITIES |
6/2023 |
6/2022 |
12/2022 |
|
Collaterals and contingent liabilities given for own
commitments |
139 |
140 |
140 |
|
OTHER KEY FIGURES |
6/2023 |
6/2022 |
12/2022 |
|
Equity ratio (%) |
64.1 |
65.5 |
68.9 |
|
Shareholders' equity/share (EUR) |
1.96 |
2.42 |
2.35 |
Calculation formulas for key figures
Earnings per share =
Result of the period attributable to owners of the parent company
Average number of shares
adjusted for share issue in financial
period Interest-bearing net debt = Interest-bearing liabilities –
cash and cash equivalents Equity ratio (%)
= Equity x 100
Balance sheet total – advances
received Equity / share
=
Equity
Number of shares adjusted for share issue
at
the
end of financial period
|
Items affecting the calculation of key figures |
6/2023 |
6/2022 |
12/2022 |
|
Advances received (kEUR) |
133 |
251 |
449 |
|
Interest-bearing liabilities (kEUR) |
329 |
566 |
517 |
|
Average number of shares adjusted for share issue in financial
period (unit thousand shares) |
2 148 |
2 148 |
2 148 |
|
Number of shares adjusted for share issue at the end of the
financial period (unit thousand shares) |
2 148 |
2 148 |
2 148 |
In Helsinki 20 July 2023 TRAINERS’ HOUSE PLC BOARD OF DIRECTORS
Information: Arto Heimonen, CEO, +358 404 123 456 Saku
Keskitalo, CFO, +358 404 111 111 DISTRIBUTION Nasdaq Helsinki Main
media www.trainershouse.fi – For investors
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