Annual report 2022: Finance
Lead paragraph
Haaga-Helia’s earnings in 2022 were EUR 67.5 (67.4 in 2021) and 65.8 in 2020) million, of which basic funding accounted for EUR 56.1 (59.1; 58.0) million, or 83 per cent of the total earnings.
The total costs were EUR 70.3 (65.9; 62.4) million. Direct personnel costs were EUR 49.1 (46.6; 42.6) million, corresponding to 69.8 per cent of the total costs. Haaga-Helia operates its facilities on leased premises, with the exception of Porvoo. Facility rents and maintenance charges amounted to EUR 9.8 (9.0; 9.0) million, or 13.9 per cent of the total costs.
The operating result of EUR -2.9 (1.5; 3.4) million was considerably weaker than the budgeted result. The difference was due to the increase in the number of personnel and in the rental expenses resulting from higher energy prices during 2022.
The Haaga-Helia University of Applied Sciences records current assets in accordance with the Accounting Act Section 5.2a and the IFRS 9 standard, in which investment assets are valued at fair value and the change in fair value is recorded in the income statement. The accounting method pursuant to the IFRS 9 standard was implemented in 2019. The negative impact of the accounting method on Haaga-Helia’s 2022 result was EUR -6.9 (2021: 3.4; 2020: 0.7; 2019: 2.0) million. According to the investment policy approved by the Board of Directors, the regular weight of the investment in shares is 50 per cent of the investments’ value. Alternative investments can account for a maximum of 10 per cent.
Other shares and participations are valued at their acquisition value or a lower value. The total earnings from investment and funding activities were EUR -6.8 (3.5; 0.3) million.
The result for the financial year showed a loss of EUR -9.7 (5.0; 4.0) million. Compared to the previous year, the basic funding is considerably lower (EUR -3.0 million), which is compensated by the significantly increased external RDI funding (EUR +1.9 million), the increase in the personnel and lease expenses (EUR -3.3 million) and the considerable reduction in the market value of the financial assets (EUR -6.8 million).
The balance sheet total was EUR 63.7 (71.6; 66.6) million. The advances received include EUR 8.7 million of payments received on multiannual projects financed with external funding. The accrued expenses and deferred income include the deferred holiday pay reservation of EUR 3.2 (3.0; 2.6) million.