1
18 August 2022
Company Announcement 32/2022
Interim financial report for the period 1 January – 30 June 2022 and adjusted
financial outlook for 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 pre-
covid 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.”
Selected key highlights H1 2022
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
2
Highlights
• H1 2022 revenue increased by 11% year-over-year to DKK 2,266 million, supported by an
increase in deliveries totalling 1,006 houses, up by 188 from 818 houses in H1 2021. Q2
2022 revenue totalled DKK 1,094 million against DKK 1,084 million from Q2 2021, up 0.9%
in the period.
• Sales totalled 732 houses compared to 1,347 in H1 2021, a decrease of 45.7% against an
extraordinary high market activity in H1 2021. The current sales levels reflect a hesitant
market, and we are seeing lower levels than pre-covid.
• EBITDA before special items (bsi) totalled DKK 175 million, on par with H1 2021, and
corresponding to an EBITDA margin of 7.7% against 8.6% in H1 2021. Q2 2022 EBITDA
margin came out at 6.9% against 9.3% in Q2 2021. Immediate surcharges from suppliers
pressured the margins in the second quarter. Continuous price adjustments on sales
prices are expected to positively impact margins in H2 2022.
• Due to lower sales in H1 2022 and the expected continued lower demand,
HusCompagniet has reduced number of employees in H1 2022 by a total of 41 employees.
On 18 August HusCompagniet will initiate a collective redundancy process primarily in the
Detached segment. Ramp-up in Sweden and the Semi-detached segment are postponed
for the time being while focusing on acquiring the right competencies.
• The reorganisations in 2022 are expected to generate an annual SG&A saving of
approximately DKK 55-65 million. Also, a one-off expense of around DKK 20-25 million
will impact special items for 2022, due to the redundancies made in June and on 18 August
including closing of offices (production and sales).
• On 30 June 2022 net debt was DKK 897 million while the leverage ratio (NIBD/LTM
EBITDA) was 2.2x compared to 1.8x at year-end 2021. The development was primarily 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.
Outlook for 2022 adjusted
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
3
HusCompagniet A/S, Plutovej 3 , 8700 Ho rsens , CVR: 36972963
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.
Assumptions for the outlook
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.
• Current expectations for 2022 sales are between 1,100 – 1,400 (previously 1,700 and 2,100
houses).
• Current expectations for 2022 deliveries are between 1,925 and 2,050 houses (previously
1,950- 2,100)
• Revenue from the semi-detached segment is assumed to be around DKK 450-500 million
(previously DKK around 500 million)
• Share of deliveries on own land is expected to be around 10% due to the current size of
the land bank. Long-term target remains at around 20%
• Current expectations for capital expenditures are DKK 40–60 million and comprise
investments in digitalisation, automation, B2B and sustainability
• Full year cash conversion (free cash flow to EBITDA) is expected to be at least 50% despite
the increased capex level
• Special items of DKK 25 -30 million is expected, including expenses for redundancies
(Previously DKK 2-5 million)
• As announced on 1 July 2021, due to the delayed closing of the acquisition of Danhaus
Production A/S, 2022 expected revenue from the factory is expected to be around DKK
50-80 million (previously around DKK 100 million) with an expected break-even EBITDA
result (unchanged).
Webcast and conference call
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/
For additional information, please contact:
Mads Dehlsen Winther, Group CFO
Cristina Rønde Hefting, Head of IR & Press +45 51 96 23 14
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HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
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
5
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Business Update
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 high-
cost 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.
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 4.7. out of 5.0 on Trustpilot with
more than 4,500 reviews.
Contingency planning and activities
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.
6
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
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.
Semi-detached – strategy update
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 semi-
detached 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.
Acquisition of factory in Esbjerg, Denmark
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.
Automation of the Swedish factory
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.
Capital structure and divided
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%.
7
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Financial review for the first half
of 2022
Revenue
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
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.
EBITDA before special items
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
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.
Special items
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.
EBIT
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.
Net financials
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 for continued
operations
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.
Taxation
Reported tax for H1 2022 was DKK 32 million
against DKK 32 million in H1 2021.
Discontinued operations
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.
8
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
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
Cash flow
Operating activities
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.
Investing activities
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
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
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.
Balance sheet
Financing
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.
Equity
The Groups equity decreased by DKK 71
million in H1 2022, to stand at DKK 1,814
million. The decrease was based dividend
9
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
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
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
Contract assets (net) amounted to DKK 737
million compared to DKK 678 million end of
H1 2021. The development reflected slightly
higher building activity.
Order backlog
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%.
Land bank
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.
Dividend
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.
Events after the balance sheet date
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.
10
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Financial review for the second
quarter of 2022
Revenue
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.
EBITDA before special items
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
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
Profit for the period from continued
operations was DKK 45 million in Q2 2022,
against DKK 68 million in Q2 2021.
Cash flow
Operating activities
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.
Investing activities
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
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.
Segments
Detached is our largest segment comprising
78% of total revenue in H1 2022. Semi-
detached and Sweden comprised 14% and
8%, respectively. For H1 2021, the revenue
split between the segments was 81%, 12%
and 7%, respectively.
Denmark - detached
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
11
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Denmark - Semi-detached houses
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-o-
y). 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-o-
y 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%.
Sweden
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.
Outlook for 2022
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
320-360
370-400
Leverage
ratio
(NIBD/LTM
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
12
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Assumptions for the outlook
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.
• Current expectations for 2022 sales
are between 1,100 – 1,400
(previously 1,700 and 2,100 houses).
• Current expectations for 2022
deliveries are between 1,925 and
2,050 houses (previously 1,950-
2,100)
• Revenue from the semi-detached
segment is assumed to be around
DKK 450-500 million (previously
DKK around 500 million)
• Share of deliveries on own land is
expected to be around 10% due to
the current size of the land bank.
Long-term target remains at around
20%
• Current expectations for capital
expenditures are DKK 40–60 million
and comprise investments in
digitalisation, automation, B2B and
sustainability
• Full year cash conversion (free cash
flow to EBITDA) is expected to be at
least 50% despite the increased
capex level
• Special items of DKK 25 -30 million
is expected, including expenses for
redundancies (Previously DKK 2-5
million)
• As announced on 1 July 2021, due to
the delayed closing of the
acquisition of Danhaus Production
A/S, 2022 expected revenue from
the factory is expected to be around
DKK 50-80 million (previously
around DKK 100 million) with an
expected break-even EBITDA result
(unchanged).
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 2021 Annual Report prepared in
accordance with IFRS.
13
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Statement by Management
Executive Board:
Board of Directors:
14
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Interim condensed consolidated Income Statement
DKK'000
Note
H1 2022
H1 2021
Q2 2022
Q2 2021
FY 2021
Revenue
3, 4
Cost of Sales
-1,840,892
-1,621,117
-886,650
-854,273
-3,439,886
Gross profit
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
Operating profit before depreciation and amortisation (EBITDA)
before special items
Special items
-722
-1
-722
Operating profit before depreciation and amortisation (EBITDA)
after special items
Depreciation and amortisation
-23,207
-23,106
-11,446
-11,190
-46,118
Operating profit (EBIT)
Financial income
Financial expenses
-10,311
-10,277
-5,451
-5,359
-20,761
Profit before tax from continuing operations
Tax on profit
-32,069
-32,455
-13,437
-16,767
-69,981
Profit for the period from continuing operations
Profit/(loss) after tax for the period from discontinued operations
5
-9,665
-75
-8,601
Profit for the period
Profits attributable to:
DKK'000
H1 2022
H1 2021
Q2 2022
Q2 2021
FY 2021
Equity owners of the Company
Earnings per share:
DKK
Note
H1 2022
H1 2021
Q2 2022
Q2 2021
FY 2021
Earnings per share (EPS Basic)
Diluted earnings per share (EPS-D)
Earnings per share (EPS Basic) continuing operations
Diluted earnings per share (EPS-D) continuing operations
Earnings per share (EPS) (DKK) from discontinued business
-0.6
-0.5
Diluted earnings per share (EPS-D) (DKK) from discontinued business
-0.6
-0.5
15
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Interim condensed consolidated Statement of Other Comprehensive Income
DKK'000
Note
H1 2022
H1 2021
Q2 2022
Q2 2021
FY 2021
Profit for the year
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
-2,112
Other comprehensive income, net of tax
-4,455
-462
-5,551
-2,112
Total comprehensive income for the year
Total comprehensive income attributable to:
DKK'000
Note
H1 2022
H1 2021
Q2 2022
Q2 2021
FY 2021
Equity owners of the Company
16
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Interim condensed consolidated Balance Sheet
DKK'000
Note
H1 2022
FY 2021
H1 2021
Assets
Non-current assets
Goodwill
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
17
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Interim condensed consolidated Balance Sheet - continued
DKK'000
Note
H1 2022
FY 2021
H1 2021
Equity and liabilities
Equity
Share capital
Retained earnings and other reserves
Total equity
Liabilities
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Deferred tax liability
Total non-current liabilities
Current liabilities
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
18
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Interim condensed consolidated Statement of Cash Flows
DKK'000
Note
H1 2022
H1 2021
FY 2021
Cash flow from operating activities
EBITDA, after special items
EBITDA, discontinued activities
-75
EBITDA
Adjustments for non-cash items
Adjusted EBITDA
Changes in working capital
-142,196
-76,052
-84,508
Cash flow from operating activities before financial items
Interest received
Interest elements of lease payments
-2,604
-2,871
-5,736
Interest paid
-7,706
-7,406
-15,025
Corporation tax paid
-16,402
-20,384
-54,661
Net cash generated from operating activities
Cash flow from investing activities
Acquisition of assets recognised as property, plant, and equipment
-9,184
-3,883
-11,327
Acquisition of assets recognised as intangible assets
-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
Proceeds from bank overdraft
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
Acquisition of own shares
-36,821
-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
Net foreign currency gains or losses
-1,925
Cash and cash equivalents on 30 June/31 December
Free cash flow
-9,794
19
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Interim condensed 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
20
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Interim condensed consolidated statement of changes in equity –
continued
2021
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
-462
-462
Total other comprehensive
income
-462
-462
Transactions with owners of the Company
and other equity transactions:
Share-based
payment
Dividends, own
shares
Dividends paid
-60,000
-60,000
Total transactions with owners of the
Company and other equity transactions
-60,000
-56,981
Equity on 30 June
21
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
Notes overview
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
22
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
1 Accounting policies
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.
Changes to accounting policies
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.
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 2021.
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 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.
23
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
3 Segment information
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%
24
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
3 Segment information - Continued
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%
Reconciliation of profit
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
25
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
4 Revenue
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
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
26
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
4 Revenue - Continued
Revenue per segment and category - Contracted Sales
H1 2021
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
1,319,724
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.
27
HusCompagniet A/S, Plutovej 3, 8700 Horsens, 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 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
28
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
6 Inventories
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
7 Contract assets
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:
Contract assets
800,096
806,791
809,330
Contract liabilities
-62,613
-129,234
-84,730
737,484
677,557
724,601
Prepayments from customers regarding construction contracts not yet started
10,133
32,235
10,081
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
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.
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.
29
HusCompagniet A/S, Plutovej 3, 8700 Horsens, CVR: 36972963
8 Business Combinations
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.
9 Events after the balance sheet date
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.