Lehto Group Plc
Half-Year Financial Report
21 August 2025 at 09:00 (Finnish time)
Focus on electricity storage project development
This report has been prepared in accordance with the IAS 34 standard and the
report has been prepared on a going concern basis. The company complies with
half-yearly reporting according to the Finnish Securities Markets Act. The
financial statement bulletin is unaudited.
Key events in January-June
Development of the electricity storage business
· During the review period, Lehto's focus was on developing electricity
storage projects.
· At the end of the review period, Lehto had two small electricity storage
facilities in use on the reserve market and five electricity storage facilities
with a combined capacity of approximately 2.2 MW under construction.
· In addition, Lehto has 12 electricity storage projects in development, with
a combined capacity of approximately 55 MW. The company estimates that some of
the projects under development will be ready by the end of 2025.
· The projects have been financed with cash and project-specific loans from
external investors. Lehto is also in negotiations on leasing and installment
financing for batteries.
Events related to the restructuring program
· During the first half of the year, Lehto reduced its secured, unsecured,
conditional and maximum liabilities defined in the restructuring program by a
total of EUR 0.3 million. At the end of the second half of the year,
approximately EUR 1.8 million of liabilities under the restructuring program
must be reduced.
· Lehto Group Oyj and its subsidiary Lehto Components sold their assets during
the review period for approximately EUR 0.3 million. The proceeds from the sales
were mainly used to pay off restructuring liabilities.
Events related to the shares
· On 31 January 2025, the 75,000,000 new shares issued in the conversion of
Lehto's convertible bond were registered in the Trade Register. As a result of
the conversion, the number of shares in the company increased to 162,339,410
shares.
· On 31 January 2025, Lehto announced that as a result of the conversion of
the convertible bond, Ilmarinen Mutual Pension Insurance Company's holding in
Lehto Group Plc's shares and votes has increased to 7.08 percent.
· On 31 January 2025, Lehto announced that as a result of the conversion of
the convertible bond, the combined holding of Hannu Lehto and his controlled
entity Lehto Invest Oy in all shares and votes in Lehto Group Plc has increased
to over 51.75 percent. At that time, Hannu Lehto and Lehto Invest Oy announced
that they would use the exception provided for in Chapter 11, Section 21,
Subsection 5 of the Securities Markets Act and that they would give up their
voting rights exceeding the threshold for the mandatory bid within one month of
the obligation to make a bid, i.e. by 28 February 2025.
· On 28 February 2025, Lehto announced that the combined holding of Hannu
Lehto and Lehto Invest Oy in Lehto Group Plc's shares and votes has decreased to
49.96 percent as a result of the transfer of shares.
· On 15 May 2025, Lehto announced that it had transferred 203,424 of its own
shares held by the company to the members of the Board of Directors as part of
the Board's annual remuneration.
· Stock exchange releases have been published regarding the above-mentioned
events related to the shares, which can be read in full at
https://lehto.fi/en/investors/stock-exchange-releases/.
Lehto has previously announced its intention to transfer the trading venue of
its shares from the Nasdaq Helsinki Stock Exchange (main list) to the First
North Growth Market. Contrary to previous information, Lehto estimates that the
transfer of the trading venue for the shares will not take place by the end of
2025, but only in the first half of 2026, when trading in the shares would also
begin. Admission of shares to trading on the First North Growth Market requires
the preparation of a prospectus and approval by Nasdaq Helsinki. Currently,
trading in the shares is suspended.
Financial development during the review period
The Group's net sales from continuing operations, EUR 0.4 million, were at the
level of the comparison period and consisted mainly of rental income from
properties owned by the Group, electricity market incomes and income from the
sale of inventories.
The operating result from continuing operations was EUR -1.5 million (EUR -4.7
million in 1H24). The operating result was affected by low net sales, factory
maintenance costs and costs related to the start-up of the energy construction
business.
Group 1-6/ 1-6/ 1-12/
2025 2024 * 2024
Net sales from continuing 0.4 0.4 1.1
operations, EUR million
Operating result from -1.5 -4.7 -5.7
continuing operations, EUR
million
Result from continuing -1.7 -6.1 -3.3
operations, EUR million
Result from discontinued 0.0 0.4 0.4
operations, EUR million
Result for the period, EUR -1.7 -5.7 -2.9
million
Cash and other liquid 0.8 0.7 2.2
assets, EUR million
Interest-bearing 4.0 15.8 3.5
liabilities, EUR million
Equity ratio, % -6.8 % -174.7 % 8.2 %
*The figures in the comparative period's income statement have changed due to a
change in the classification of continuing operations. In this report,
discontinued operations include Lehto Group Plc's subsidiaries that went
bankrupt and the Swedish operations.
The Group's cash and cash equivalents decreased to EUR 0.8 million (EUR 2.2
million on 31 December 2024). The decrease in cash and cash equivalents was
mainly due to the loss-making result and investments in electricity storage
projects.
The Group's personnel decreased during the review period. At the end of June,
the Group had 57 (76 on 31 December 2024) employees, of whom 50 (67 on 31
December 2024) were on full-time or part-time layoffs. The laid-off employees
are employees of Lehto Components Oy.
Energy construction business during the review period
During the review period, Lehto's focus was on developing electricity storage
projects and coordinating the technical requirements and commercial solutions
for electricity storage. Among other things, Lehto signed several land lease
agreements for electricity storage locations, prepared technical plans related
to the sites, negotiated with electricity grid companies on connecting
electricity storage to electricity grids, and obtained permits related to the
construction of electricity storage.
During the review period, Lehto started the construction of five new electricity
storage projects with a total capacity of approximately 2.2 MW. At the end of
the review period, the projects in question were still under construction. The
commissioning of the electricity storage projects requires passing tests and
approval from the transmission grid company Fingrid. The construction permit
processes for electricity storage projects and the permit processes of
electricity grid companies have required more time than expected.
At the end of the review period, Lehto had 12 electricity storage projects in
the development phase, with a combined capacity of approximately 55 MW. The
company estimates that some of the projects under development will be ready for
production by the end of 2025. The projects have been financed with cash and
project-specific loans from external investors. Loans from investors amounted to
approximately EUR 0.5 million during the review period. Lehto is also in
negotiations for leasing and installment financing of batteries.
Balance sheet and financial position
Consolidated balance sheet, 30 Jun2025 30 Jun2024 31 Dec 2024
EUR million
Non-current assets 6.9 7.8 6.4
Current assets
Inventories, excluding IFRS 0.6 1.3 0.7
16 assets
Current receivables 0.2 0.6 0.2
Cash and cash equivalents 0.8 0.7 2.2
Non-current assets held for 1.9 2.4
sale
Assets total 10.4 10.4 11.8
Equity -0.7 -18.2 1.0
Financial liabilities 4.0 15.8 3.5
Lease liabilities 0.0 0.3 0.0
Advances received 0.0
Other paybles 4.4 12.5 4.7
Liabilities related to non 2.7 2.6
-current assets held for
sale
Equity and liabilities 10.4 10.4 11.8
total
Assets
Non-current assets increased by EUR 0.5 million from the year-end as a result of
investments in electricity storage made to the balance sheet. At the end of the
review period, non-current assets were EUR 6.9 million and they mainly consist
of Lehto Components Oy's Oulainen factory building and machinery and furniture.
Non-current assets also include a total of EUR 1.5 million in ownerships and
shares in real estate companies and one project company, as well as parts and
components of electricity storage.
Inventories, EUR 0.6 million, mainly consist of materials of Lehto Components Oy
and finished products owned by Lehto Group Plc.
Cash and cash equivalents decreased by EUR 1.7 million, which was due to a loss
and investments in electricity storage.
Non-current assets held for sale consist of lease rights related to Lehto
Components Oy's Hartola factory, machinery and equipment.
Liabilities
The amount of financial liabilities increased by EUR 0.5 million during the
review period as a result of loans taken out for electricity storage
investments. At the end of the review period, the amount of financial
liabilities was EUR 4.0 million, of which approximately EUR 3.5 million consists
of secured RCF bank debt and approximately EUR 0.5 million of loans taken out
for electricity storage investments.
The RCF bank debt will be repaid according to the schedule specified in the
company's restructuring program. The debt is secured by, among other things, all
shares and most significant receivables of real estate companies owned by Lehto
Group Oyj, as well as the assets of bankrupt subsidiaries. If the assets of the
bankruptcy estates of subsidiaries are used to repay Lehto Group Oyj's RCF bank
debt, the bankruptcy estates in question will become creditors of Lehto Group
Oyj with the rights of the original creditor.
Other liabilities are mainly unsecured liabilities according to the
restructuring program and in addition, ordinary trade and accrued liabilities.
Liabilities related to non-current assets held for sale are the realized and
future rental obligations of Lehto Components Oy's Hartola factory in accordance
with IFRS 16.
Cash Flow
Cash flow statement, EUR million 1-6/ 1-6/ 1-12/
2025 2024 2024
Cash flow from operating activities
Result for the period + adjustments to accrual-based items -0.9 -4.2 -5.4
Change in net working capital -0.1 -0.8 -0.4
Total cash flow from operating activities -1.1 -5.0 -5.8
Cash flow from investments -0.7 0.0 -0.2
Cash flow from financing 0.4 -0.5 2.0
Change in cash and cash equivalents -1.4 -5.4 -4.0
Cash and cash equivalents at the beginning of the year 2.2 6.1 6.1
Cash and cash equivalents at the end of the period 0.8 0.7 2.2
Financial outlook
Due to uncertainties related to the initial phase of the business, Lehto does
not provide a precise estimate of the development of its net sales or operating
result in 2025.
During 2025, Lehto aims to build significantly more new electricity storage
capacity, which will be used primarily in the reserve and wholesale markets, but
also in connection with the properties' own energy solutions.
During 2026-2028, Lehto aims to build new electricity storage capacity so that
the net sales generated from electricity storage in 2028 would be approximately
EUR 25 million and the operating result would be more than 10% of net sales.
The business requires significant battery investments, which will be acquired
partly by leasing and partly by purchasing for its own balance sheet. The
working capital needs of the initial phase of the business will be managed
through capital investments specified in Lehto's restructuring program.
Risks and uncertainties
The most important risks for 2025 are described below.
Liquidity and funding risk
The company is in restructuring proceedings and in accordance with the
restructuring program, the company's cash expenses can be financed in the
following main aspects:
· The company's current operating expenses will be paid with capital
investments in accordance with the restructuring program and with the income
flows from completed electricity storage projects.
· The investments required by electricity storage projects will be financed
with project-specific debt instruments.
· Payments of restructuring liabilities will be financed by the sale of assets
At the time of publication of this half-yearly report, the company does not have
significant regular income flows. The company's current cash resources are not
sufficient to cover the company's current expenses, investments required by
electricity storage projects and payments in accordance with the restructuring
program. In the last quarter of the year, the company will have to make
repayments of restructuring liabilities of approximately EUR 2.2 million.
Although Lehto's reserve and wholesale market yields are expected to grow during
2025, the company must succeed in selling its assets and/or obtaining new equity
or debt financing to meet its payment obligations.
Failure to raise capital or sell assets could result in the company being unable
to meet its payment obligations.
Risks related to starting and expanding the energy construction business
The business is still in its early stages and its expansion requires, among
other things, technical assessment and planning, building procurement channels,
finding suitable energy project sites, operational implementation of projects,
obtaining financing, and finding partners and building cooperation models.
Failure to implement these may lead to delays in starting the business and a
deterioration in liquidity.
Risks related to the sale of factory operations
The company is in negotiations to sell the factory operations of Lehto
Components Oy. It is possible that the factory operations cannot be sold or the
factory premises and equipment cannot be leased. In such a situation, the
company would be left with cost burdens related to the maintenance of the
factories and the company might not be able to meet its payments.
Resolutions of the Annual General Meeting
The Annual General Meeting held on 22 May 2025 decided, in accordance with the
proposal of the Board of Directors, that no dividend be paid based on the
approved balance sheet for the financial year 1 January - 31 December 2024.
The number of members of the Company's Board of Directors was decided to be
three. In accordance with the proposal of the Shareholders' Nomination Board,
Timo Okkonen, Tarja Teppo and Hannu Lehto were re-elected as members of the
Board of Directors. Jani Nokkanen had previously notified the Company that he
was no longer available as a member of the Board of Directors. The term of
office of the Board of Directors members will end at the Annual General Meeting
in 2025.
The Annual General Meeting authorized the Board of Directors to decide on the
acquisition of the Company's own shares in one or more installments with funds
belonging to the Company's unrestricted equity or without consideration, so that
the maximum number of shares to be acquired is 16,200,000 shares. The amount
corresponds to approximately 10 percent of all shares in the Company.
The Annual General Meeting authorized the Board of Directors to decide on share
issues and the issuance of stock options and other special rights entitling to
shares, so that the Board of Directors is authorized to decide on the issuance
of a total of 16,200,000 shares through a share issue or by issuing stock
options or other special rights entitling to shares. The amount corresponds to
approximately 10 percent of all shares in the company.
The above-mentioned and other decisions of the Annual General Meeting are
reported in the stock exchange release published on 22 May 2025.
Events after the review period
There are no events after the end of the review period that would have a
material impact on Lehto's revenue, results or financial position.
20 August 2025
Lehto Group Plc
Board of Directors
Further information:
Hannu Lehto, CEO
+358 500 280 448
Veli-Pekka Paloranta, CFO
+358 400 944 074
TABLES
The preparation principles and calculation formulas for the half-yearly report
are mainly the same as in the company's latest financial statements. The
financial statements have been prepared on a going concern basis. The going
concern basis has no effect on the valuation of balance sheet items, as the
valuation of the Group's assets is based on an estimate of the recoverable
amounts in situations where they fall below the carrying amount determined on a
going concern basis.
CONSOLIDATED STATEMENT OF COMPREHENSIVE 1-6/ 1-6/ 1-12 /
INCOME
EUR million 2025 2024 * 2024
Net sales 0.4 0.4 1.1
Other operating income 0.0 0.6 0.8
Changes in inventories - -0.2 -0.2
Material and services -0.2 -0.3 -0.7
Employee benefit expenses -0.5 -1.7 -2.2
Depreciation and amortisation -0.8 -0.9 -1.0
Other operating expenses -0.5 -2.5 -3.4
Operating result -1.5 -4.7 -5.7
Financial income 0.0 0.0 6.2
Financial expenses -0.1 -1.5 -3.9
Result before taxes -1.7 -6.1 -3.3
Income taxes 0.0 0.0 0.0
Result from continuing operations -1.7 -6.1 -3.3
Result from discontinued operations 0.0 0.4 0.4
Result for the period -1.7 -5.7 -2.9
Result attributable to
Equity holders of the parent company -1.7 -5.7 -2.9
Non-controlling interest 0.0 0.0 0.0
-1.7 -5.7 -2.9
Components of other comprehensive income
Items that may be reclassified
subsequently to profit or loss
Translation difference 0.0 -0.1 -0.1
0.0 -0.1 -0.1
Comprehensive result, total -1.7 -5.8 -3.0
Comprehensive result attributable to
Equity holders of the parent company -1.7 -5.8 -3.0
Non-controlling interest 0.0 0.0 0.0
-1.7 -5.8 -3.0
Earnings per share calculated from the
result attributable to shareholders of
the parent company, EUR per share
Average number of (issue-adjusted) 162 189 933 87 135 986 88 078 609
outstanding shares during the period,
basic
Average number of (issue-adjusted) 162 189 933 87 147 129 88 084 150
outstanding shares during the period,
diluted
Earnings per share from continuing -0.01 -0.07 -0.04
operations, basic
Earnings per share from continuing -0.01 -0.07 -0.04
operations, diluted
Earnings per share from discontinued 0.00 0.01 0.00
operations, basic
Earnings per share from discontinued 0.00 0.01 0.00
operations, diluted
Earnings per share, basic -0.01 -0.07 -0.03
Earnings per share, diluted -0.01 -0.07 -0.03
*The figures in the comparative period's income statement have changed due to a
change in the classification of continuing operations. In this report,
discontinued operations include Lehto Group Plc's subsidiaries that went
bankrupt and the Swedish operations.
CONSOLIDATED BALANCE SHEET
EUR million 30 Jun 2025 30 Jun 2024 31 Dec 2024
Assets
Non-current assets
Other intangible assets 0.2 0.0 0.2
Property, plant and 5.2 5.4 4.7
equipment
Investment properties 0.6 0.7 0.6
Investments and receivables 0.9 1.8 0.9
Non-current assets total 6.9 7.8 6.4
Current assets
Inventories 0.6 1.3 0.7
Trade and other receivables 0.2 0.6 0.2
Cash and cash equivalents 0.8 0.7 2.2
Current assets total 1.6 2.6 3.0
Non-current assets held for 1.9 2.4
sale
Assets, total 10.4 10.4 11.8
Equity and liabilities
Equity
Share capital 0.1 0.1 0.1
Invested non-restricted 102.6 88.7 102.6
equity reserve
Translation difference -0.2 -0.2 -0.2
Retained earnings -104.0 -101.1 -101.1
Result for the financial -1.7 -5.7 -2.9
period
Capital loan 2.5 - 2.5
Equity attributable to -0.7 -18.2 1.0
shareholders of the parent
company
Non-controlling interest 0.0 0.0 0.0
Equity total -0.7 -18.2 1.0
Non-current liabilities
Non-current provisions 0.0 0.0 0.0
Financial liabilities 3.1 0.0 1.8
Lease liabilities 0.0 0.1 0.0
Other non-current 3.5 0.1 3.5
liabilities
Non-current liabilities 6.6 0.2 5.3
total
Current liabilities
Current provisions 0.1 0.4 0.1
Financial liabilities 0.9 15.8 1.7
Lease liabilities 0.0 0.2 0.0
Trade and other payables 0.8 12.0 1.1
Current liabilities total 1.8 28.4 2.9
Liabilities related to non 2.7 2.6
-current assets held for
sale
Liabilities total 11.1 28.5 10.9
Equity and liabilities, 10.4 10.4 11.8
total
CONSOLIDATED
STATEMENT OF
CHANGES IN
EQUITY
EUR million Equity
attributable
to
shareholders
of the
parent
company
Share Invested Translation Retained Capital Total
Non Equity,
capital non difference earnings loan
-controlling total
-restricted
equity
interest
reserve
Equity at 1 0.1 88.7 -0.1 -101.1 -12.4
0.0 -12.4
January 2024
Comprehensive
income
Result for -0.1 -5.7 -5.8
0.0 -5.8
the
financial
period
Total -0.1 -5.7 -5.8
0.0 -5.8
comprehensive
income
Equity at 30 0.1 88.7 -0.2 -106.7 -18.2
0.0 -18.2
June 2024
Equity at 1 0.1 102.6 -0.2 -104.0 2.5 1.0
0.0 1.0
January 2025
Comprehensive
income
Result for 0.0 -1.7 -1.7
0.0 -1.7
the
financial
period
Total 0.0 -1.7 -1.7
0.0 -1.7
comprehensive
income
Equity at 30 0.1 102.6 -0.2 -105.7 2.5 -0.7
0.0 -0.7
June 2025
CONSOLIDATED CASH FLOW STATEMENT 1-6/ 1-6/ 1-12/
EUR million 2025 2024 2024
Cash flow from operating activities
Result for the financial period -1.7 -5.7 -2.9
Adjustments:
Non-cash items 0.0 0.0 -0.4
Depreciation and amortisation 0.8 1.1 1.1
Financial income and expenses 0.1 1.6 -2.1
Capital gains -0.6 -0.3
Income taxes 0.0 0.0 0.0
Changes in working capital:
Change in trade and other receivables 0.0 -3.1 -2.7
Change in inventories 0.1 1.7 2.2
Change in trade and other payables -0.2 0.7 0.0
Interest paid and other financial expenses -0.1 -0.6 -0.8
Financial income received 0.0 0.0 0.0
Income taxes paid 0.0 0.0 0.0
Net cash from operating activities -1.1 -5.0 -5.8
Cash flow from investments
Investment in property, plant and equipment -0.7 0.0 0.0
Investment in other intangible assets 0.0 -0.2
Proceeds from sale of tangible and intangible assets 0.0 0.1
Financial assets at fair value through profit or loss 0.0
Repayments of loan receivables 0.0 0.0
Net cash from investments -0.7 0.0 -0.2
Cash flow from financing
Loans drawn 0.5
Loans repaid -0.1 -0.3 -0.3
Lease liabilities paid -0.2 -0.2
Equity loans drawn 2.5
Net cash used in financing activities 0.4 -0.5 2.0
Change in cash and cash equivalents (+/-) -1.4 -5.4 -4.0
Cash and cash equivalents at the beginning of the year 2.2 6.1 6.1
Effects of exchange rate change 0.0 0.0 0.0
Cash and cash equivalents at the end of the period 0.8 0.7 2.2
KEY FIGURES 1-6/ 1-6/ 1-12/
2025 2024 *1) 2024
Net sales, EUR million 0.4 0.4 1.1
Net sales, change % 21.6 % -87.4 % -75.6 %
Operating result, EUR million -1.5 -4.7 -5.7
Operating result, as % of net sales -350.4 % -1303.4 % -521.2 %
Result for the period, EUR million -1.7 -5.7 -2.9
Result for the period, as % of net sales -385.8 % -1583.8 % -270.2 %
Equity ratio, % -6.8 % -174.7 % 8.2 %
Gearing, % -1099.7 % -1.0 % 496.4 %
Net gearing ratio, % -837.1 % -84.4 % 412.1 %
Return on equity, ROE, % N/A -41.3 % N/A
Return on investment, ROI, % -76.8 % -5.9 % 1.4 %
Order backlog, EUR million 0.0 0.0 0.0
Personnel at the end of period 57 99 76
Gross expenditure on assets, EUR million -0.7 0.0 -0.2
Equity / share, EUR -0.004 -0.21 0.0
Earnings per share, basic -0.01 -0.07 -0.03
Earnings per share, diluted -0.01 -0.07 -0.03
Average number of (issue-adjusted) 162 189 933 87 135 986 88 078 609
outstanding shares during the period,
basic
Average number of (issue-adjusted) 162 189 933 87 147 129 88 084 150
outstanding shares during the period,
diluted
Number of (issue-adjusted) outstanding 162 339 410 87 135 986 162 135 986
shares at the end of the period
Market value of share at the end of N/A *2) 2.8 N/A *2)
period, EUR million
Share prices, EUR
Highest price, EUR 0.06 0.0578
Lowest price, EUR 0.02 0.0151
Average price, EUR 0.03 N/A *2)
Price at the end of period, EUR 0.03 0.0318
Share turnover, shares 18 708 406
Share turnover out of average number of 21.2 %
shares, %
Price / Earnings -0.95
*1) The figures in the comparative period's income statement have changed due
to a change in the classification of continuing operations. In this half-year
report, companies that went bankrupt and the Swedish operations are presented
as discontinued operations.
*2) Trading in the share has been suspended since February 6, 2024.
LIABILITIES AND GUARANTEES
EUR million 30 Jun 2025 30 Jun 2024 31 Dec 2024
Loans covered by pledges on
assets
Loans from financial 3.4 3.4 3.4
institutions
Total 3.4 3.4 3.4
Guarantees
Company mortgages 67.6 67.6 67.6
Real-estate mortgages 67.6 69.0 67.6
Pledges 0.7 0.0 0.1
Total 135.9 136.6 135.3
Contract guarantees
Warranty guarantees 0.0 0.0 0.0
Rent guarantees 0.1 0.1 0.1
Counter-guarantees given on 3.1 30.9 3.1
behalf of bankrupt companies
Total 3.3 31.0 3.3
Contract guarantees
Production guarantees 0.5 0.8 0.6
The pledges are investments and other financial assets pledged as collateral for
loans from financial institutions. Pledges are presented at carrying amount.
TRANSACTIONS WITH RELATED PARTIES
In addition to Group companies, members of the Board of Directors and the
Group's senior management, the Group's related parties include those entities in
which the related party or their family members have influence, either through
ownership or management. Related parties also include associated companies and
joint ventures. There have been no transactions with associated companies.
Transactions
with
related
parties
Sales Sales Purchases Purchases Sales
Purchases
EUR million 1-6/2025 1-6/2024 1-6/2025 1-6/2024 1-12/2024 1
-12/2024
Key 0.2 0.0 0.1 0.2 0.1
0.1
personnel
and
their
controlled
entities
Total 0.2 0.0 0.1 0.2 0.1
0.1
Receivable Receivable Liabilities Liabilities Receivable
Liabilities
EUR million 30 June 30 June 30 June 30 June 31 Dec 31
Dec 2024
2025 2024 2025 2024 2024
Key - - 2.8 0.0 -
2.5
personnel
and
their
controlled
entities
Total - - 2.8 0.0 -
2.5
During the review period Lehto sold one land plot for the related party.
Transactions with related parties have been carried out on market terms.
Liabilities to related parties relate to loans granted to the company by
entities controlled by Hannu Lehto.