Inside information: Lassila & Tikanoja will recognise impairments and make provisions of approximately EUR 28 million in total relating to its Swedish facility services business

    Inside information: Lassila & Tikanoja will recognise impairments and make provisions of approximately EUR 28 million in total relating to its Swedish facility services business

Lassila & Tikanoja Plc
Stock exchange release
Inside information
13 December 2024 at 8:05 a.m.

Inside information: Lassila & Tikanoja will recognise impairments and make provisions of approximately EUR 28 million in total relating to its Swedish facility services business

In its Q4 2024 reporting, Lassila & Tikanoja will recognise impairments and make provisions of approximately EUR 28 million in total (before taxes) relating to its Swedish facility services business. The impairments and provisions will be reported as items affecting comparability.

The net sales and operating profit development of the Swedish facility services business has been weaker than anticipated. Based on routine impairment testing, an impairment of approximately EUR 23 million will be recognised in the consolidated goodwill related to Facility Services Sweden. The impairment will be recognised in the result for Q4 2024, and it will have no impact on the cash flow or adjusted operating profit of Lassila & Tikanoja. Following the impairment, the balance sheet value of the goodwill related to the Swedish facility services business will be approximately EUR 9 million.

In addition, Lassila & Tikanoja will recognise provisions totalling approximately EUR 5 million in relation to Facility Services Sweden’s unprofitable customer agreements and disputes. The provisions concerning unprofitable agreements relate to two public-sector customer agreements and according to Lassila & Tikanoja’s estimate, the future expenses related to said agreements will exceed their expected revenue. The provisions will be recognised in the result for Q4 2024, and they will have no impact on the cash flow or adjusted operating profit of Lassila & Tikanoja.

The impairments and provisions have no impact on Lassila & Tikanoja’s guidance for 2024.

Helsinki, 13 December 2024

LASSILA & TIKANOJA PLC

Board of Directors

Eero Hautaniemi
President and CEO

For additional information:

Eero Hautaniemi, President and CEO, tel. [phone]

Joni Sorsanen, CFO, tel. [phone]

Lassila & Tikanoja is a service company that is putting the circular economy into practice. Together with our customers, we keep materials, manufacturing sites and properties in productive use for as long as possible and we enhance the use of raw materials and energy. This is to create more value with the circular economy for our customers, personnel and society in a broader sense. Achieving this also means growth in value for our shareholders. Our objective is to continuously grow our actions’ carbon handprint, our positive effect on the climate. We assume our social responsibility by looking after the work ability of our personnel as well as offering jobs to those who are struggling to find employment, for example. With operations in Finland and Sweden, L&T employs approximately 8,160 people. Net sales in 2023 amounted to EUR 802.1 million. L&T is listed on Nasdaq Helsinki.

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www.lt.fi/en/