Lehto Group announced its financial goals for next year – The shares are to be transferred to First North

Under renovation Lehto Group informs that it intends to apply for a transfer to the Helsinki Stock Exchange’s First North marketplace and that it is aiming for positive operating profit and cash flow during the next year with energy business.

At the moment, trading of Lehto’s shares on the main list of the Helsinki Stock Exchange has been suspended.

According to the company’s press release, the new plans in the energy construction business have resulted in the First North market place being better suited to the company’s current size category and growth profile.

Accepting shares for trading in First North requires the preparation of a company prospectus and the approval of Nasdaq Helsinki.

According to the company’s estimate, trading of shares on the new marketplace could begin in the first or second quarter of 2025.

The goal is a positive result during the next year

In connection with the half-year review in August, Lehto said that he plans to focus his business on energy solutions for buildings and electricity storage in the future.

By the end of 2024, Lehto’s goal is to put the first electricity storage sites into production use. According to the company’s press release, new cash flow starts to accumulate from the projects as soon as they are completed.

The key financial goal for 2025 is to increase operating profit and business cash flow to a positive level.

During the next year, Lehto’s goal is to build significantly more new electricity storage capacity.

During the years 2026–2028, Lehto’s goal is to build new electricity storage capacity so that the turnover from electricity storage in 2028 would be around 25 million euros and the operating profit would be more than 10 percent of the turnover.

According to the release, the business requires significant battery investments, which in the initial phase will be acquired by renting and in the later phase also partly by purchasing on the balance sheet.

The working capital needs of the initial phase of the business are taken care of with the help of capital investments specified in Lehto’s restructuring program.

The energy business is progressing

The energy construction business is based on the utilization of electricity reserves in balancing the production and demand of the electricity market and in energy saving solutions for buildings.

Lehto says that in the future, he will primarily aim to build a distributed electricity storage system, where relatively small batteries are placed in properties in different parts of Finland.

In addition to the distributed electricity storage system, the company’s goal is to build medium-sized battery parks detached from real estate.

Lehto is also developing a solution where the building’s Technical Solutions work together with the batteries as balancers of the electricity grid.

In its energy construction business, Lehto acquires suitable locations for the use of batteries, i.e. buildings or land, plans and implements battery installations, if necessary, connects batteries as part of the property’s own energy solution, obtains the necessary permits, and makes the necessary agreements with property owners, electricity grid companies and business partner companies.

Batteries are bought or rented and their operation is controlled by the partner company’s software.

According to the company’s press release, the business income is generated by the Finnish grid company Fingrid’s from the reserve market compensations paid, from the revenues based on the sale and purchase of electricity from the Nord Pool marketplace, and from the compensations paid by property owners and users.

Lehto also develops battery park projects to be sold to investors in the field.

During the summer of 2024, Lehto has implemented the first pilot project where the electricity storage is connected to the property. The electricity storage and its control mechanisms have been verified by Fingrid and the electricity storage is already in use by the reserve market.