Finance

Finance

Haaga-Helia’s earnings in 2020 were EUR 65.8 (65.9 in 2019 and 63.3 in 2018) million, of which basic funding accounted for EUR 58.0 (55.6; 54.5) million, which is 84 per cent of the total earnings.

Total costs were EUR 62.4 (63.5; 61.7) million. Direct personnel costs were EUR 42.6 (41.6; 39.7) million, or 68.2 per cent of the total costs. Haaga-Helia operates on leased premises, with the exception of Porvoo. Rental costs and maintenance charges amounted to EUR 9.0 million (9.2; 9.6), or 14.4 per cent of the total costs.

Haaga-Helia records current assets in accordance with Bookkeeping Act Section 5.2a and the IFRS 9 standard, so that investment assets are valued at fair value and the change of fair value is recorded in the income statement. The IFRS 9 accounting method was implemented in 2019. The positive effect of the accounting method on Haaga-Helia’s 2020 result was EUR 0.7 (2019: 2.0) million. According to the investment policy approved by Haaga-Helia’s Board of Directors, the weight of share investments may not exceed 50 per cent of the value of the investments and the portion of alternative investments can be 10 per cent at maximum.

Other stocks and shares are valued at their purchase price or less. In 2020, the fair value of subsidiary stocks was changed by EUR 0.4 million. The total earnings from investment and funding activities were EUR 0.3 (2.5; -0.02) million.

The result for the financial year was EUR 4.0 (5.5; 1.5) million, which was a clear improvement on what was budgeted (EUR 2.0 million). The result was achieved mainly through operational cost savings, since activities could not be organised as normal due to the Coronavirus epidemic. In addition, the result was increased by the state’s programme for improving education and competency, which granted funding for additional study positions in autumn 2020, for example.

The balance sheet total was EUR 66.6 (59.7; 50.3) million. The advances received include EUR 5.2 (2.9; 3.3) million of funding granted by the Ministry of Education and Culture for various projects. This funding continues to be available beyond 2020. The accruals and deferred incomes include, for example, the deferred holiday pay reservation of EUR 2.6 (2.4; 2.4) million.

Group finance

The Group includes Haaga-Helia University of Applied Sciences Ltd, Kiinteistö Oy Porvoon Campus, Haaga-Helia Global Education Services Ltd, Haaga-Helia Balti OŰ, and Hospitality Innovation School. The EduExcellence Ltd associated company was established in 2017.

The total earnings of the Group were EUR 65.9 (65.8; 63.4) million. The costs were EUR 62.5 (63.8; 61.5) million. Direct personnel costs were EUR 42.6 (41.8; 39.7) million. The total earnings from investment and funding activities were EUR 0.7 (2.2; -0.4) million. The earnings of the funding activities were reduced by the associated company’s result that showed a loss, among other factors.

The Group’s result for the financial year was EUR 4.1 (4.5; 1.6) million. The balance sheet total was EUR 69.4 (66.4; 59.1) million.