PHM Group Holding Oyj’s Financial Statements Bulletin 2023: Strong last quarter due to organic growth and high acquisition activity

PHM Group Holding Oyj Stock Exchange Release, 14 February 2024 at 10.00 a.m. (EET)

This release is a summary of PHM Group Holding Oyj’s financial statements bulletin 2023. The full release is attached and available on our website at https://www.phmgroup.com/investors/.

Highlights of October–December 2023 

• Reported revenue increased by 36% to EUR 195.9 million (144.1).
• Reported EBITDA increased by 38% to EUR 25.2 million (18.3).
• LFL revenue increased by 3% to EUR 206.2 million (200.6). At comparable exchange rates, LFL revenue increased by 6%.
• LFL adjusted EBITDA increased by 6% to EUR 30.3 million (28.6). At comparable exchange rates, LFL adjusted EBITDA increased by 9%.
• Profit for the period amounted to EUR -2.5 million (9.1).
• Operating cash flow before acquisitions increased by 110% to EUR 28.7 million (13.7).
• Leverage amounted to 5.36x (4.81).

 

Highlights of January–December 2023 

• Reported revenue increased by 29% to EUR 624.9 million (483.3).
• Reported EBITDA increased by 20% to EUR 86.2 million (71.9).
• LFL revenue increased by 2% to EUR 758.9 million (747.0). At comparable exchange rates, LFL revenue increased by 6%.
• LFL adjusted EBITDA increased by 3% to EUR 115.8 million (112.2). At comparable exchange rates, LFL adjusted EBITDA increased by 7%.
• Profit for the period amounted to EUR -2.3 million (14.2).
• Operating cash flow before acquisitions increased by 31% to EUR 68.9 million (52.7).

 

Significant events during the quarter

• Result improved by increased revenues and improved margins but was negatively impacted by headwind from exchange rates development.
• High M&A activity continued; Total acquired revenue amounted to EUR 92.4 million in Q4 2023, spearheaded by the acquisition of Sefbo, making PHM the market leader in Norway.
• Tap issue of senior secured callable floating rate notes in a nominal amount of EUR 140 million.
• Launch of PHM Digital customer portal to property maintenance customers in Finland.
• Tommy Fredriksen appointed County Director Norway and member of the Group Management Team.

Group key figures

 

EUR million, IFRS	10-12/23	10-12/22	Change %	1-12/23	1-12/22	Change %
Reported
Revenue	195.9	144.1	36%	624.9	483.3	29 %
EBITDA	25.2	18.3	38%	86.2	71.9	20 %
Adjusted EBITDA	28.5	20.7	37%	93.7	77.2	21%
Adjusted EBITDA margin%	14.6%	14.4%	0.2%	15.0%	16.0%	-1%
Adjusted EBITA	19.8	20.0	-1%	65.0	56.0	16%
Adjusted EBITA margin%	10.1%	13.9%	-3.8%	10.4%	11.6%	-1%
LFL *) financials
LFL Revenue	206.2	200.6	3%	758.9	747.0	2%
LFL EBITDA	26.9	26.1	3%	108.4	106.4	2%
Adjusted LFL EBITDA	30.3	28.6	6%	115.8	112.2	3%
Adjusted LFL EBITDA margin%	14.7%	14.2%	0.5%	15.3%	15.0%	0.3%
Adjusted LFL EBITA	20.9	19.6	7%	80.8	78.8	2%
Adjusted LFL EBITA margin%	10.2%	9.8%	0.4%	10.6%	10.5%	0.1%
Financial position
Operating cash flow before acquisitions**	28.7	13.7	110%	68.9	52.7	31%
Cash conversion before acquisitions***	114%	75%	39%	80%	73%	6%
Interest bearing net debt	647.8	421.2	54%	647.8	421.2	54%
Leverage, x****	5.36	4.81	11%	5.36	4.81	11%

*) LFL = Like-for-like, financials adjusted to reflect full 12 months of all entities owned at the end of the period
**) EBITDA + change in NWC (excluding intra group liability to ultimate parent) – CAPEX (excluding acquisition capex)
***) EBITDA / Operating cash flow before acquisitions
****) Interest bearing net debt / (LFL LTM adjusted EBITDA + run rate synergies). Run rate synergies per 31.12.2023 amounted to EUR 5.0 million (31.12.2023: 1.0)

Management review

The fourth quarter of 2023 was successful in many ways: organic growth was strong with improved profitability, M&A activity continued to be high, and the PHM Digital customer portal was launched for maintenance customers in Finland having previously been available only for property management clients in Sweden.  

Despite no clear improvement in the market conditions, both contract and additional sales increased, and thanks to successful in-housing of services provided and costs control the profit margins improved. The operating cash flow was very strong in the quarter and the cash conversion for the full year exceeded the level of 2022.

Altogether ten acquisitions were closed during the quarter, of which the most significant was the acquisition of Sefbo Group, the leading service provider of contract and subscription-based property services to housing associations in Norway, which more than doubled the size of PHM’s Norwegian business. The acquisition was financed with a tap issue of senior secured floating rate notes in the nominal value of EUR 140 million.

During 2023, the development of the PHM Digital customer portal has been one of the most important projects in the Group. PHM Digital, previously only used in Sweden for property management customers under the name Realnode, was developed to fit both the property maintenance market and the Finnish market whereby the potential customer reach was multiplied. At the end of 2023, the PHM Digital customer portal was successfully launched to Finnish property maintenance customers.

PHM will continue executing its strategy to fulfil the mission of taking care of people by taking care of their surroundings, simultaneously becoming the market leader across all our markets.

 

Events after the review period

After the review period PHM has completed two acquisitions in Finland.

 

Briefing invitation

PHM Group Holding Oyj’s CEO Ville Rantala and CFO Petri Pellonmaa will present the result to investors and analysts on 15 February 2024 at 11.00 a.m. (EET) in a Teams meeting. Invitations to investor meetings can be subscribed from the website.

 

Publication of the next financial results

The Financial Statements and Annual Report for 2023 will be published during the week starting on April 22, 2024 (week 17).

PHM Group Holding Oyj will publish its Q1/2024 interim report on 15 May 2024 at 10.00 a.m. (EET).

 

PHM GROUP HOLDING OYJ

 

For further information, please contact:

Ville Rantala
Group CEO
ville.rantala@phmgroup.com

Petri Pellonmaa
Group CFO
petri.pellonmaa@phmgroup.com

 

PHM Group Holding Oyj in brief

PHM Group is a property services group whose mission is to care about people by taking care of their surroundings. PHM Group consists of the best local enterprises sharing the same values and motives, entrepreneurship, and a fair and responsible way of working. We believe that the only thing better than local service is local service with big resources. With PHM Group you do not have to choose between your well-known local entrepreneur and a big provider. With PHM Group, you get both. Read more at https://www.phmgroup.com/