Financial position The Group’s cash and cash equivalents, including interest bearing securities, amounted to SEK 100.4 (94.5) million at the end of the period and total interest- bearing liabilities to SEK 328.5 (283.1) million. Net debt thus amounted to SEK 228.1 (188.6) million, which corresponds to a debt/equity ratio of 0.5 (0.5) times rolling twelve-month adjusted EBITDA. Equity amounted to SEK 1,432.7 (1,516.9) million, which corresponded to an equity/assets ratio of 68.4 (71.1) percent. Quality and sustainability Hemnet’s sustainability work is carried out as an integral part of its ongoing operations. Hemnet Group AB (publ) has drawn up a statutory sustainability report according to ÅRL which can be found on pages 22-29. The statutory sustainability report also covers the Group. The company does not conduct any permit or notification activities according to the Swedish Environmental Code. Research and development Hemnet’s corporate culture is characterised by a constant desire to refine and improve our products and services. The property platform is built and managed by specialist teams in development, sales, market and product. Learning and development occurs naturally in everyday life between teams. Testing, exploring and taking on new challenges to strengthen our position in the market by building simple and efficient services for our users is a key part of our business. A business characterised by a high rate of development. The vision to be the key to your home journey guides Hemnet’s development work. During the year, SEK 13.7 million (6.5) was capitalised regarding development expenses. The capitalised development expenses are recognised in the balance sheet as intangible assets. Outlook Hemnet is by far Sweden’s largest residential property platform and during the pandemic we saw a record high activity in the housing market, which normalised in 2022 as a result of macroeconomic changes. In the longer term, however, we do not see that interest in the residential property market will decrease. The company will continue to develop and improve the product portfolio that is now in place for the main customer groups: property sellers, real estate agents and real estate developers, as well as to evaluate and prioritise which additional needs of the housing market players that the company can meet through new or improved services. Furthermore, the focus will continue to be on strengthening our cooperation and our relationships with real estate agents and property developers, which are important partners. Group risks and risk factors All operations are associated with a certain degree of risk-taking, risks that can affect operations, standing and results. Risks related to Hemnet’s operations, as well as its expectations and management, are analysed annually by the Board and Group management. During the pandemic Hemnet saw a record high activity in the housing market and in Hemnet’s channels, which normalised in 2022 as a result of macroeconomic changes. In the longer term, however, we do not see that interest in the residential property market will decrease. However, there are pressures from old and new competitors and with that competition comes a risk that both visitors, real estate agents and advertisers use services other than Hemnet, which could have a negative impact on the business. In recent years, Hemnet has diversified its revenue streams through a number of changes, including by developing value-added services that give property sellers the opportunity to influence their sale. Hemnet has also introduced new products for companies operating in the residential property market such as real estate agents, property developers and banks. It is important for the company to continue developing new and existing services that meet the needs of current and future customer groups. The income from property listings is a significant part of sales. Developments in the Swedish housing market can therefore have a significant effect on Hemnet’s operations. Hemnet’s advertising business has continued to develop positively and the company offers advertising both through direct sales and through programmatic trading. The development and trends for ad purchases in the market can affect Hemnet’s revenue both positively and negatively.
For Hemnet, it is central to have a good relationship with real estate agents and to have a substantial range of property listings. Hemnet’s future business may be threatened if a deteriorating estate agent relationship would lead to a deterioration in the range of property listings. In addition to its own funds, the Group’s operations are also financed through borrowing. As a result, the business is exposed to financing risks, interest rate and credit risks. The Group has a long-term credit agreement that extends until April 2024. Further information on the Group’s debt can be found in notes G21 and G22. For further information on risks, see the section on Internal controls and risk management on page 38. Management and employees The organisation has continued to grow and the number of employees at the end of the year amounted to 135 people, which is an increase of 23 people compared with the beginning of the year. The average number of employees at Hemnet in 2022 was 124, with 53 of them women and 71 men. Significant events after the end of the financial year The company has entered into an agreement for new premises for the head office in Stockholm from 1 January 2023. This increases the right-to-use assets and leasing liabilities by SEK 56.5 million as per 1 January 2023. On 27 January 2023 the Board decided to update Hemnets profitability target from the current medium-term adjusted EBITDA margin target of 45-50 percent to a long-term adjusted EBITDA margin target of over 55 percent.
On 31 January, 2023, Hemnet’s previous majority shareholder, General Atlantic, divested its shares in Hemnet.
Hemnet continued the share repurchase program in 2023 and repurchased an additional 487,745 shares for a total of SEK 76 million during the period from 1 January, 2023 to 15 March, 2023. Parent Company’s earnings and financial position Hemnet Group AB (publ) is the parent company of the Hemnet group. The Parent Company’s net sales of SEK 9.2 (5.6) million referred in their entirety to intra-group services invoiced to other Group companies. The Parent Company’s costs amounted to SEK 20.1 (59.3) million, where the decrease in costs mainly are related to costs in 2021 for the preparations for Hemnet’s IPO. Group contributions received from the subsidiary Hemnet Holding AB amounted to SEK 435.0 (286.2) million, with profit before tax amounting to SEK 416.8 (227.0) million. Cash and cash equivalents amounted to SEK 34.9 (19.8) million. Equity amounted to SEK 949.9 (996.9) million. The total number of shares amounted to 101,131,478 (101,131,478) and the number of shares outstanding amounted to 98,838,795 as of 31 December 2022.
Administration report
Hemnet Group | Annual and sustainability report 2022 · 33
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