Lehto has discontinued the Building Renovation service area and will limit its renovation operations
Lehto Group Plc
Stock exchange release
25 January 2019, at 1.00 p.m.
In the stock exchange release published on 2 November 2018, Lehto announced that it was planning to discontinue the Building Renovation service area and merge the building renovation operations into other service areas. In accordance with the plan, the Building Renovation service area has been discontinued and the building renovation operations have been transferred to two other service areas.
Changes in the Business Premises service area
The ongoing complete renovation projects have been transferred to the Business Premises service area, where they will be completed by the current project organisation. The resourcing for managing the projects has been strengthened.
Lehto estimates that the ongoing renovation projects will be completed by mid-2019. Upon completion of the projects, the project organisation will be assigned to other projects in the Business Premises service area.
In the future, new comprehensive renovation projects will only be undertaken selectively on condition that the renovation is related to new construction projects or when it is a significant part of a larger commercial entity. Lehto has committed to some these kind of projects already before the discontinuation of the Building Renovation service area.
Changes in the Housing service area
There has been a profitable pipeline renovation unit within the discontinued Building Renovation service area. This unit has been transferred to the Housing service area, where it will be further developed and continued.
In addition, Lehto will continue to develop the concept of complementary construction (in which additional floors are built on top of existing buildings) and aims to utilise it in connection with pipeline renovations. Lehto sees the sale of complementary construction rights as one way for housing companies to finance pipeline renovation projects.
Hannu Lehto, CEO, Lehto Group Plc
Tel. +358 500 280 448