The impairment test concerning HLRE Holding Group’s assets was made at the end of October and as a result write down of goodwill with EUR 14.7 million is booked in Q3 Interim Report. Write down is allocated to CGU1 (cash generating unit), which consist mostly of roof installation business in Finland.
Determining the recoverable amount of a cash-generating unit is based on value in use calculations, which require the use of estimates. The calculations use cash flow projections based on budgets and estimates approved by the management for a five-year period. The cash flow projections are based on the Group’s actual results and the management’s best estimates of future sales, development of costs, general market conditions and applicable tax rates. The estimated future net cash flows are discounted to their present value when estimating the recoverable amount based on the pre-tax weighted average cost of capital.
The market environment for roof renovations in Finland (CGU 1) has been challenging during the financial year under review, as was the case in the preceding financial year. For the Company, this was reflected in subdued consumer demand, with necessary renovations being postponed. Based on updated valuations, the recoverable amount of a cash-generating unit for CGU1 has decreased by EUR 22.7 million from the valuation made at the end of last financial year (January 2025). Despite the fact that carrying value of assets has been decreased as well, the updated valuation lead to the write down of goodwill with EUR 14.7 million for CGU1.
The table below presents the allocation of goodwill to the Group’s cash-generating units:
|
Thousands of euros |
31.10.2025 |
31.1.2025 |
|
Installation of roof and rainwater systems and drainage business in Finland CGU1 |
15 703 |
30 403 |
|
Production of rainwater management systems and roof safety products CGU2 |
4 870 |
4 870 |
HLRE Holding Oyj’s main shareholders have evaluated the possibility to strengthen HLRE Holding Group’s shareholder equity during Q4 in order to cover the Group’s financial statements negative equity because of goodwill write down. The process for the equity strengthening could be executed by either converting shareholders’ loans into equity or debt forgiveness of shareholder loans. The equity strengthening process is subject to other finance arrangements during the Q4. Total amount of shareholders’ and convertible loans including deferred interests is EUR 20.4 million at the end October.
For further information:
Kimmo Riihimäki, Group CEO
+358 400 730 671
Juha Nuutinen, Group CFO
+358 50 438 0984