YA Holding publishes quarterly interim report Q3 2023.

YA Holding AB (publ) ("YA" or the "Company") publishes quarterly interim report for the period 1 January 2023 to 30 September 2023.

Third quarter (July - September) 2023

• Net sales decreased by 12,2% to 173.9 mnkr (198.1).
• EBIT for the quarter amounted to -132.6 mnkr (-33.0).
• EBIT excluding non-recurring items amounted to -16.6 mnkr (-33.0).
• Total cash flow for the quarter was 6.7 (-48.0).
• The average number of students and participants was 8 272 (9 104).
• The share of participants employed three months after completing the employment training (AUB) or vocational secondary education (VUX) was 68% (66%).

Nine months period (January – September) 2023

• Net sales increased by 0.5% to 638.9 mnkr (636.0).
• EBIT for the period amounted to -152.5 mnkr (-68.0).
• EBIT excluding non-recurring items amounted to -36.5 mnkr (-68.0).
• Total cash flow for the period was 3.0 (-76.5).
• The average number of students and participants was 9 540 (10 115).
• The share of participants employed three months after the training was 63% (64%).

Significant events during and after the quarter

As communicated by the Group on 31 August 2023, the wholly-owned subsidiary YrkesAkademin AB has experienced financial difficulties and a liquidity shortage during the quarter. The board of YrkesAkademin AB therefore resolved to apply for a company restructuring on 4 September 2023 and the Falu district court granted the application the same day. For more information, please refer to the Group's separate press releases on this topic on 31 August 2023 and 4 September 2023.

A creditors’ meeting took place in Falu district court on 25 September and the district court decided that the company restructuring in YrkesAkademin AB may continue until 4 December 2023. After that, the continuation of the company restructuring will be tried by the court again. The non-recurring items of 116 mnkr in this report arise from the restructuring, impairment losses, and revaluation of a contingent liability. For more details, please refer to the section Revenues and Earnings.

On 26 September 2023, an extraordinary general meeting in YA Holding AB’s parent company YA Invest AB resolved to issue a call option regarding a potential transfer of all shares in YA Holding without compensation. The call option is intended to be issued to certain holders of YA Holding’s outstanding bonds. The decision is a result of the discussions that led to certain holders of the bond loan providing commitment funding for the restructuring of YA Holding’s subsidiary YrkesAkademin AB. The option concerns the shares in YA Holding and does not directly affect YA Holding’s consolidated accounts. However, the option offsets the carried value of the subsidiary shares, and the liquidation plan regarding YA Invest will have to be established as soon as the option is exercised.

The exercise of the option requires that the holders of the Bond Loan approve the transfer of the shares in YA Holding through a separate written procedure. YA Invest is also intended to obtain a put option entailing a right to sell all its shares in YA Holding to the holders of the call option, or a purchaser directed by them, from 1 April 2024 if the call option has not been exercised by 31 March 2024 at the latest. For more information, please refer to the Group's separate press release on this topic on 26 September 2023.

On 2 October 2023, YA Holding received the bondholders’ approval for certain changes to the terms of its existing bond loan as announced in connection to the written procedure initiated on 13 September 2023 regarding the Company’s senior secured sustainability-linked corporate bonds. The changes to the terms entered into force on 2 October 2023 in connection with the expiry of the voting period. The adjusted terms for the Bonds are available on the Company’s website. The changes to the terms are set out in the notice to the Written Procedure which is available on the Company’s website. The revised terms include an interest-free period until September 17, 2024.

The goodwill impairment tests were carried out as of 30 September 2023. The test indicated an impairment need and the Group recognized an impairment loss of 21,3 mnkr regarding the segment Vocational Secondary Education (VUX) and 2,1 mnkr regarding the segment Matching.

As of 30 September 2023, the Group reassessed the value of the performance-based earn-out payment related to the acquisition of Arcus Utbildning & Jobbförmedling AB. As a result, the carried value of the contingent liability was revalued from 34 mnkr to 14,4 mnkr.

As a result of the restructuring in YrkesAkademin AB, an analysis of the potential effects in YA Holding and the need for possible impairments of the value of YA Holding’s holdings in subsidiaries had to be commenced after the end of the reporting period in November 2023. As a result of the impairments of values in subsidiaries which was resolved to be necessary in November 2023 and which should have effect as per the last date of the reporting period, 30 September 2023, there were reasons to assume that YA Holding's equity was less than half of the registered share capital. Hence, a balance sheet for liquidation purposes has been prepared. YA Holding intends to and expects to recover the equity deficit in due time and connection with the finalization of the restructuring in YrkesAkademin AB.

On 20 November 2023, YA Holding AB entered into the debt financing agreement and subsequently made a drawdown of the nominal amount of 34 mnkr (approximately 32.3 mnkr in cash after a so-called Original Issue Discount) provided by certain holders of YA Holding AB’s bonds and approved to be provided in the written procedure, the proceeds of which will mainly be used to finance the restructuring in YrkesAkademin AB.   

The report is available at www.ya.se

The information was submitted, through the provision of the specified contact person, for publication on 2023-11-28 11:15 CET.

Sender
Martin Modig, CEO YA Holding AB (publ)

For press questions, please contact:
Alice Hedin, acting press secretary
Phone: +46 (0) 70 878 91 05
E-mail: alice.hedin@ya.se