Source January-December 2024 Financial Statement Release published on 6 February 2025:
Financial income and expenses in October-December amounted to EUR -1.4 (-2.5) million. Net financial expenses included EUR 0.8 (0.9) million in dividend and interest income, EUR -0.3 (-1.3) million in fair value changes on derivatives, and EUR -0.2 (-0.3) million in interest expenses. In addition, financial expenses included EUR -1.4 (-1.4) million in interest on lease agreement debts under IFRS 16 and EUR -0.3 (-0.4) million in other financial expenses.
Financial income and expenses amounted to EUR -6.3 (-9.0) million in January–December. Net financial expenses included EUR 3.4 (2.3) million in dividend and interest income, exchange rate differences amounting to EUR 0.0 (-2.6) million arising from the conversion of subsidiary and associated company loans, which did not have an impact on cash flow, fair value changes on derivatives amounting to EUR -1.9 (-0.6) million, and interest expenses of EUR -1.0 (-1.1) million, of which EUR 0.0 (0.7) million was capitalised as of the beginning of the year. In addition, financial expenses included EUR -5.5 (-5.6) million in interest on lease agreement debts under IFRS 16 and EUR -1.2 (-2.1) million in other financial expenses.
Equity ratio was 35.1 (34.4) per cent and gearing was 65.5 (71.7) per cent. Excluding the impact of IFRS 16, the equity ratio was 48.2 (48.0) per cent and gearing was -6.0 (-4.3) per cent.
Capital employed stood at EUR 283.6 (277.7) million and the return on investment was 5.5 (-2.6) at the end of the review period. Excluding the impact of IFRS 16, capital employed amounted to EUR 189.5 (179.7) million.
Net interest-bearing debt totalled EUR 96.2 (99.4) million at the end of the review period. Net interest-bearing debt saw a year-on-year decrease of EUR -3.2 million. Excluding the impact of IFRS 16, net interest-bearing debt totalled EUR -9.2 (-6.3) million, representing a decrease of EUR -2.9 million on the comparison period. Housing corporation loans accounted for EUR 16.4 (17.1) million of the interest-bearing debt.
In April, the company agreed with the syndicate banks to exercise the one-year extension option of the current EUR 40 million committed revolving credit facility which is tied to sustainability targets as well as the replacement of the minimum EBITDA covenant with a net debt/EBITDA covenant. In accordance with the exercised extension option, the revolving credit facility is valid until April 2026.
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 29.0 million was unused. 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 in the 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 31 December 2024 was EUR 33.5 million.
At the end of the period, the Group’s financing reserves totalled EUR 79.6 (78.6) million, consisting of 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 40.5 million.
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 and the inclusion of capital loans into equity are 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 interim 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-December 2024 Financial Statement Release published on 6 February 2025: