Hilding Anders AB
Hilding Anders October EBITDA Halves YoY as Cyberattack Derails Sales; Liquidity Tight as Restructuring Advisory Fees Drive Cash Burn, Belgian Sale-and-Leaseback Deal Faces Delay
Tue 12/06/2022 12:54 PM
Hilding Anders was hit by a cyberattack in October that disrupted production and the Sweden-based mattress maker’s ability to ship and invoice orders. As a result, sales fell 18.2% year over year in the period while EBITDA halved. Liquidity remains tight but is set to rise according to the group’s 13-week cash flow forecast, however the group’s planned sale and leaseback of its Belgian site has been delayed, sources said.
Sales reached €44 million during October, which was below €58 million budgeted and down on €54 million the same month last year. As a result, Hilding generated just €2.1 million of EBITDA versus €6.7 million budgeted and €4.4 million last year. However, the group expects to receive compensation under an insurance claim for lost profits due to the cyberattack, sources noted.
Hilding burnt through almost €14.9 million of cash during October, partly driven by a €3.2 million trade working capital outflow, while it also had a €12.6 million outflow for other financing activities related to advisory fees for its restructuring, which was completed in September, sources said. As a result, its cash balance dropped to €19.6 million by the end of October.
According to its 13-week cash flow forecast the group expects its cash balance to have improved to €31.1 million by the end of November and to €50.7 million by the end of December.
The KKR-owned company had aimed to raise an additional €15.8 million through a sale and leaseback deal for its Belgian production site by year-end, however the discovery of contamination on the site has now pushed this back by three months, sources noted.
The Russian joint venture Askona, held by Hilding via Halecroft Ltd., a holding company incorporated in Cyprus, remains under pressure. Volumes continued to drop, with 124,000 mattresses sold in October versus 193,000 budgeted and 185,000 last year, which translated into sales of 2.66 billion Russian rubles ($42 million) versus RUB 4.39 billion budgeted and RUB 3.47 billion the same period last year. EBITDA turned negative RUB 12 million versus RUB 614 million budgeted and RUB 577 million last year.
Despite the EBITDA loss, the entity’s cash balance improved to RUB 668 million in October from RUB 440 million in September, driven by a RUB 280 million working capital release and net RUB 111 million inflow from financing activities.
According to Reorg’s CLO database, Hilding’s loans are held by the following managers. Click HERE to see the full list of holders in the database.
– Robert Schach
Sales reached €44 million during October, which was below €58 million budgeted and down on €54 million the same month last year. As a result, Hilding generated just €2.1 million of EBITDA versus €6.7 million budgeted and €4.4 million last year. However, the group expects to receive compensation under an insurance claim for lost profits due to the cyberattack, sources noted.
Hilding burnt through almost €14.9 million of cash during October, partly driven by a €3.2 million trade working capital outflow, while it also had a €12.6 million outflow for other financing activities related to advisory fees for its restructuring, which was completed in September, sources said. As a result, its cash balance dropped to €19.6 million by the end of October.
According to its 13-week cash flow forecast the group expects its cash balance to have improved to €31.1 million by the end of November and to €50.7 million by the end of December.
The KKR-owned company had aimed to raise an additional €15.8 million through a sale and leaseback deal for its Belgian production site by year-end, however the discovery of contamination on the site has now pushed this back by three months, sources noted.
The Russian joint venture Askona, held by Hilding via Halecroft Ltd., a holding company incorporated in Cyprus, remains under pressure. Volumes continued to drop, with 124,000 mattresses sold in October versus 193,000 budgeted and 185,000 last year, which translated into sales of 2.66 billion Russian rubles ($42 million) versus RUB 4.39 billion budgeted and RUB 3.47 billion the same period last year. EBITDA turned negative RUB 12 million versus RUB 614 million budgeted and RUB 577 million last year.
Despite the EBITDA loss, the entity’s cash balance improved to RUB 668 million in October from RUB 440 million in September, driven by a RUB 280 million working capital release and net RUB 111 million inflow from financing activities.
According to Reorg’s CLO database, Hilding’s loans are held by the following managers. Click HERE to see the full list of holders in the database.
– Robert Schach
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