YA Holding’s subsidiary YrkesAkademin AB has financial difficulties, previous estimates of financial performance no longer relevant and estimates for the group’s financial performances disclosed

The board in YA Holding AB (publ) (“YA Holding” or the “Company”) announces that its wholly owned subsidiary YrkesAkademin AB has financial difficulties and explores the possibility to apply for insolvency proceedings in YrkesAkademin AB, primarily company reconstruction.

YrkesAkademin AB’s operations and results have not progressed as expected during the summer as a result of reduced revenues due to that the number of students enrolled has been significantly lower than expected, combined with higher operational costs, which has led to a liquidity shortage in YrkesAkademin AB. This has in turn resulted in YrkesAkademin AB’s financial position under the prevailing operational and financial conditions to no longer be sustainable and that YrkesAkademin AB may soon become insolvent. The board is therefore considering to apply for insolvency proceedings in YrkesAkademin AB, primarily company reconstruction (Sw. företagsrekonstruktion), and explores the conditions for such proceedings. Company reconstruction is a tool to prevent bankruptcy for companies that are in financial difficulties but yet in the long-term have good abilities to continue its operations. The existing board and management in YrkesAkademin AB continues to represent and be responsible for the operations during the company reconstruction. The purpose of the company reconstruction is to reach long-term sustainable conditions to secure the operations, jobs and education programs within YrkesAkademin AB.

The Company deems that there are potential for the operations of YrkesAkademin AB to become profitable again, provided that, inter alia, necessary financial and operational measures can be carried out and that YrkesAkademin AB can secure financing for continued operations. YA Holding currently conducts positive discussions with certain holders of YA Holding’s outstanding bond loan with ISIN SE0016831150 regarding securing financing for YrkesAkademin AB’s continued operations. Certain bondholders have confirmed their interest to provide financing during a company reconstruction of YrkesAkademin AB and discussions on the detailed terms and structure for such financing are ongoing. In addition, the Company is currently having a dialog with YrkesAkademin AB’s other creditors regarding the situation.

The board intends to further explore the potential to, within the scope of a company reconstruction, execute the changes that it deems necessary in order to overcome YrkesAkademin AB’s difficulties, including trying to secure financing to enable a company reconstruction.

At this stage, it is not possible to provide information regarding the expected timeline of a possible company restructuring in YrkesAkademin AB and what further actions may be carried out in such procedure.

If YA Holding is unable to secure continued financing for YrkesAkademin AB, YrkesAkademin AB will within short become insolvent and will be required to file a bankruptcy petition.

Further, on 7 February 2023, the Company published an estimate for the group's financial development for the full year 2023. As a result of YrkesAkademin AB:s current situation the announced estimate of the Company's financial development is no longer relevant.

YA Holding also announces certain preliminary estimates of the group’s financial performance for the remainder of 2023 and for the full year 2024. These figures are the Company’s estimates based on certain highly uncertain assumptions, inter alia, that a company reconstruction in YrkesAkademin AB can be carried out and that the participation volumes for the Swedish Public Employment Service’s (Sw. Arbetsförmedlingen) labour market education services achieves certain levels in 2023 and 2024. The figures have not been audited or reviewed by YA Holding’s auditor. The final outcome for 2023 and 2024 revenue and EBIT is highly uncertain and may differ significantly from the Company’s estimates. YA Holding preliminarily estimates that the group’s revenue for 2023 will be approximately SEK 790 million with an EBIT of approximately minus SEK 39 million. For the full year 2024, YA Holding estimates that revenues will amount to approximately SEK 720 million with an EBIT of approximately SEK 46 million.

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 01-09-2023 00:16 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