Source January-June 2025 Half-year Report published on 8 August 2025:
Financial income and expenses for April-June amounted to EUR -2.0 (-1.4) million. Net financial expenses included EUR 0.6 (0.8) million in dividend and interest income, EUR -0.2 (-0.1) million in fair value changes on derivatives, and EUR -0.2 (-0.3) million in interest expenses. In addition, financial expenses included EUR -1.5 (-1.4) million in interest on lease agreement debts under IFRS 16 and EUR -0.7 (-0.5) million in other financial expenses.
Financial income and expenses amounted to EUR -3.3 (-2.1) million in January–June. Dividend and interest income amounted to EUR 1.3 (1.7) million, fair value changes of derivatives amounted to EUR -0.4 (0.3) million, and interest expenses were EUR -0.4 (-0.6) million, of which EUR 0.0 (0.0) million was capitalised as of the beginning of the year. In addition, financial expenses included EUR -2.8 (-2.8) million in interest on lease agreement debts under IFRS 16 and EUR -1.0 (-0.8) million in other financial expenses.
Equity ratio was 34.4 (33.6) per cent and gearing was 68.8 (70.9) per cent. Excluding the impact of IFRS 16, the equity ratio was 50.1 (46.9) per cent and gearing was -13.3 (-6.2) per cent.
Capital employed stood at EUR 297.3 (274.9) million and the return on investment was 1.9 (3.2) at the end of the review period. Excluding the impact of IFRS 16, capital employed amounted to EUR 189.3 (177.2) million.
Net interest-bearing debt totalled EUR 98.9 (96.8) million at the end of the review period. Net interest-bearing debt saw a year-on-year decrease of EUR 2.0 million. Excluding the impact of IFRS 16, net interest-bearing debt totalled EUR -20.7 (-9.0) million, representing a decrease of EUR 11.7 million on the comparison period. Housing corporation loans accounted for EUR 16.7 (16.5) million of the interest-bearing debt.
In May, the company agreed on a committed unsecured revolving credit facility of EUR 40 million tied to sustainability objectives with the syndicate banks. The revolving credit facility matures in three years with an optional one-year extension. The new revolving credit facility is valid until May 2028. It replaces the EUR 40 million unsecured committed revolving credit facility signed in April 2023. The interest margin on the revolving credit facility is tied to two of SRV's key sustainability targets: the emission intensity of indirect emissions (scope 3) and the lost-time injury frequency (LTIF). The financial covenants are the equity ratio, gearing, ratio of interest-bearing net debt to EBITDA and minimum liquidity.
EUR 10 million of the company's EUR 40 million committed revolving credit facility had been allocated as a committed overdraft facility by the end of the review period, and it remained unused at the end of the period. Of the remaining EUR 30 million, EUR 1 million was in use and EUR 29 million was unused.
In June, the company agreed with two financiers on a binding EUR 15 million facility for financing plot acquisitions. The facility is valid for three years and its
financial covenants are the equity ratio and gearing. The facility remained unused at the end of the review period.
The company has EUR 21.1 million and EUR 36.0 million convertible hybrid bonds resulting from the financing arrangement implemented in June 2022. The coupon interest rate for the equity-like hybrid bonds is 4.875 per cent per annum. The equity-like bonds have no maturity date, are unsecured and rank subordinate to other debt obligations. Convertibility of the hybrid bonds is structured such that the hybrid bond terms include a special right, as per the Companies Act, to convert the bonds into shares if the company does not redeem them before 30 June 2026. The hybrid bonds are recorded as equity inthe balance sheet at the assumed market value (60% of nominal value) at the time of recognition, and their value in equity on the balance sheet as of 30 June 2025 was EUR 33.5 million.
At the end of the period, the Group’s financial reserves totalled EUR 95.2 (80.4) million, consisting of undrawn project financing amounting to EUR 1.5 million, an undrawn committed revolving credit facility of EUR 29.0 million, an unused committed overdraft facility of EUR 10 million, and cash and cash equivalents of EUR 54.7 million.
Financial reserves
The company has a EUR 100 million domestic commercial paper programme. By the end of the review period, EUR 2.5 million in commercial paper had been issued from this programme.
The financial covenants of SRV’s financing agreements are equity ratio, gearing, net debt/EBITDA, minimum liquidity, and certain other restrictions. The covenant levels of these financing agreements are determined on the basis of the accounting principles in force when the loan agreements were signed. Recognition of income on the basis of percentage of completion in developer contracting projects is taken into consideration in the calculation of the equity ratio covenant. The loan agreements also contain some other deviations from traditional covenant calculation methods. The main covenants of the financing agreements are presented in note 11 to the half-year report.
SRV's investment commitments totalled EUR 19.6 (19.6) million at the end of the review period, and consisted of investments in Fennovoima and the Tampere Central Deck and Arena project.
Translation differences recognised in equity totalled EUR 0.0 (-4.9) million at the end of the review period.
January-June 2025 Half-year Report published on 8 August 2025.