YA Holding announces information regarding its liquidity situation, an agreement with holders of the Company’s bond loan, updated estimates and preliminary financial information
As previously has been announced by YA Holding AB (publ) (”YA” or the ”Company”) on 12 December 2022, the Swedish Public Employment Service’s preliminary forecasts announced in November 2022 with respect to payments during 2023 may have a material negative impact on the group’s EBIT for 2023 compared to the estimates that were announced by the Company on 15 September 2022.
The liquidity situation of the Company and an agreement with holders of the Company´s outstanding bond loan
In light of the forecast announced by the Swedish Public Employment Service in November 2022 with downward revisions, which the Swedish Public Employment Service confirmed on 6 February 2023, in combination with the declining market conditions that the Company has experienced, there is a risk that the Company may face a challenging liquidity situation in the relative near term. The Company has among other things, applied for a temporary tax deferral from the Swedish Tax Agency relating to certain periods during the years 2020-2021 (so-called Covid 19 deferral, which is a legislation that aims to help companies that are fundamentally viable and sound through a temporarily challenging period). The Company has on this day received a decision from the Tax Agency which grants the Company a tax deferral of approximately SEK 39.5 million. The Company’s assessment is that the temporary deferral is sufficient to handle the temporary challenging liquidity situation.
Due to the challenging liquidity situation, there is also a risk that the Company will not fulfil certain financial covenants under the Company’s senior secured sustainability-linked corporate bonds with an initial volume of SEK 480 million within a maximum framework of SEK 650 million that was issued on 17 December 2021 (the ”Bonds”). The Company has therefore together with a committee of bondholders who represents approximately 51.8 percent of all of the Company’s bondholders (the ”Committee”) reached an agreement on amendments to requirements under the Bonds regarding compliance with certain financial covenants relating to liquidity and regarding the possibility of taking up additional indebtedness in the form of temporary tax deferral (so-called Covid 19 deferral). The participants in the Committee have undertaken to vote for a written procedure regarding the above amendments of the terms and conditions of the Bonds and have also undertaken not to vote for an acceleration of the Bonds due to circumstances that following the written procedure do not constitute a default under the terms and conditions of the Bonds.
Against this background, the Company intends to, in the near future, send a notice of written procedure to all bondholders with respect to the amendments stated above regarding certain financial covenants relating to liquidity and the possibility of taking up additional indebtedness in the form of a temporary tax deferral.
The Company expects that the written procedure will be approved as a result of the voting commitments that the Company has received from the participants in the Committee.
Announcement of certain preliminary financial information for the full year 2022
Due to the negotiations that have been ongoing with the Committee, YA also publishes certain preliminary financial information for the full year 2022 on group level, the turnover amounted to approximately MSEK 882 and the EBIT amounted to approximately MSEK -92.
EBIT is stated excluding non-recurring items (goodwill and additional purchase price regarding Arcus Utbildning & Jobbförmedling AB) which together have a negative non-operational net impact on the group´s EBIT for the full year 2022 of approximately SEK -64 million.
All figures for the full year 2022 stated above are preliminary and have not been reviewed by YA’s auditor. The final figures for the full year 2022 may therefore differ from what is stated above. YA’s year-end report for the full year 2022 is expected to be announced on 24 February 2023.
Updates to certain estimates for the group’s financial development
YA also publishes an update of certain estimates regarding the group’s financial development for the full year 2023. For the full year 2023, the Company estimates that the turnover will amount to approximately SEK 900–950 million with an EBIT of approximately SEK 4–12 million. These figures are the Company’s estimates based on certain assumptions, including that the participant volumes for the Swedish Public Employment Service’s labour market training and matching services do not decrease compared to the assumptions in the Swedish Public Employment Service’s forecasts published on 6 February 2023 regarding labour market training and matching services. The figures have not been audited or reviewed by the Company’s auditor. The final outcome for turnover and EBIT during 2023 may differ materially from the Company’s estimates.
Gernandt & Danielsson Advokatbyrå KB has been retained as legal counsel in connection with the above.
This disclosure contains information that YA Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 07-02-2023 09:48 CET.
For further information, please contact:
CEO
YA Holding AB (publ)
Att. Martin Modig
Tel.: +46 (0) 72 369 66 80
E-post: martin.modig@ya.se
CFO
YA Holding AB (publ)
Att. Antti Rokala
Tel.: +46 (0) 76 899 49 73
E-post: antti.rokala@ya.se