NoHo Partners Plc issues a profit warning, changes its profit distribution proposal and commences personnel adjustment measures in the changed market situation

NoHo Partners Plc



INSIDE INFORMATION 13 MARCH 2020 at 9:30



NoHo Partners Plc issues a profit warning, changes its profit distribution proposal and commences personnel adjustment measures in the changed market situation

NoHo Partners Plc cancels its profit guidance for 2020 issued on 5 March 2020. At this point, the company does not specify its turnover and profitability forecast for this year in more detail due to the uncertain market situation. The company is not changing its long-term financial objectives at this stage.

At the same time, the Board of Directors of the company has decided to change the profit distribution proposal provided in connection with the financial statements release 2019 with regard to the additional dividend so that it is not proposed the EUR 0.15 additional dividend be paid in May, but the Board of Directors will be authorised to decide the payment of the maximum of EUR 0.15 additional dividend at a later stage. The authorisation would be valid until the following Annual General Meeting.

Moreover, NoHo Partners will commence measures to adjust its personnel in order to minimise the negative financial impacts of the coronavirus (COVID-19) on its business operations. The company is preparing for the temporary changes in the business environment caused by the legislation as well as decreased customer demand by commencing negotiations on temporary layoffs affecting its personnel under the Act on Cooperation within Undertakings.

The purpose of the negotiations is to predict  the financial and production impacts caused by the coronavirus, such as a temporary decrease in the conditions for providing employment. The measures may result in fixed-term, full-time or part-time layoffs of personnel. The negotiations concern all of the Group’s employees in Finland. The negotiations will commence on 18 March 2020, and they are estimated to last two weeks.

Corresponding personnel adjustment measures will also be taken in Norway and Denmark, where the authorities have limited the opening hours and operational prerequisites of restaurants.

“Our business operations clearly exceeded our targets up until the end of last week, but the cancellation of company events and the authority restrictions confirmed during this week have essentially changed our business environment. Although it is impossible to predict the final impacts of the coronavirus at this stage, it is already evident that our previous profit outlooks are no longer valid. In this situation, our primary task is to ensure the safety of our staff and customers and adjust our operations and cost structure to the changed business environment. With our good result from last year, strengthened balance sheet and committed staff, we will get through this exceptional situation and continue to deliver good results once the market situation normalises,” says Aku Vikström, CEO, NoHo Partners.

The profit outlook announced in the financial statements release for 2019 was as follows:

“Profit guidance (as of 5 March 2020):



NoHo Partners estimates that, during the financial period 2020, the Group will achieve a total turnover of approximately MEUR 300 and an EBIT margin of approximately 9 per cent. The turnover of the restaurant business (comparable continuing operations) is estimated to be approximately MEUR 300 and the EBIT margin to exceed 7.5 per cent.



In terms of the Group’s restaurant business, the goal is to achieve a turnover of approximately MEUR 350 and an EBIT margin of approximately 8 per cent by the end of 2021. The Group will update the estimate for the financial period on an annual basis in conjunction with the publication of the result for the fourth quarter.”

More information available from:

Aku Vikström, CEO, NoHo Partners Plc, tel. 9

Jarno Suominen, Deputy CEO, NoHo Partners Plc, tel. 5

Distribution:

NASDAQ Helsinki

Major media

NoHo Partners Plc is a Finnish group established in 1996, specialising in restaurant services. The company, which was listed on NASDAQ Helsinki in 2013 and became the first Finnish listed restaurant company, has continued to grow strongly throughout its history. The Group companies include some 250 restaurants in Finland, Denmark and Norway. The well-known restaurant concepts of the company include Elite, Savoy, Teatteri, Yes Yes Yes, Stefan’s Steakhouse, Palace, Löyly, Hanko Sushi and Cock’s & Cows. In 2019, NoHo Partners Plc’s turnover was MEUR 272.8 and EBIT MEUR 30.6. Depending on the season, the Group employs approximately 2,100 people converted into full-time workers.



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