The uncertain geopolitical situation may have an impact on the company’s market environment. For the time being, the company does not see a significant impact on demand in its operating countries.  

The rise in the general cost level caused by the prevailing global situation has an impact on the company’s business. To mitigate the impact, the company has prepared for increasing raw material prices, for example, through the centralisation of purchase and sales agreements as well as price increases.   

The sales and profitability of restaurant services are affected by the financial situation of households and the development of purchasing power and corporate sales. The business outlook for the tourism and restaurant sector and consumer confidence have been weakened by the uncertain geopolitical climate and the general increase in costs and interest rate. Demand for restaurant services has, however, remained at a good level.  

Inflation and weakening consumer purchasing power and confidence constitute a risk to the development of NoHo Partners’ turnover and cash flow. The adaptation of operating costs and the ability to mount an agile response to changes in customer demand are the key factors for the company to influence the development of turnover and EBIT. 

Business premises expenses constitute a significant share of NoHo Partners’ operating expenses. The Group’s business premises are primarily leased, so the development of the general level of rents has a significant impact on the Group’s operations.   

The Group’s financing needs will be covered by optimising working capital and through external financing arrangements so that the Group has sufficient liquidity or unwithdrawn committed credit arrangements at its disposal. The operational monitoring and management of liquidity risk are centralised in the Group’s finance department, where the sufficiency of financing is managed based on rolling forecasts.   

Unexpected legislative amendments related to the company’s business, might have a negative effect on the company’s liquidity.

The Group strives to assess and track the amount of funding required by the business, for example by performing a monthly analysis of the utilisation rate of the restaurants and the development of sales, in order to ensure that the Group has sufficient working capital and liquid assets to fund the operations and repay loans that fall due. The aim is to ensure the availability and flexibility of Group financing through sufficient credit limit reserves, a balanced loan maturity distribution and sufficiently long loan periods as well as using several financial institutions and forms of financing, when necessary. Market interest rates may have a negative impact on the company’s financial expenses. 

Changes in the macroeconomic environment or the general financing market situation may negatively affect the company’s liquidity as well as the availability, price and other terms and conditions of financing.

The Group has a significant amount of goodwill on the consolidated balance sheet, which is subject to a write-off risk in case the Group’s expected future cash flows decline permanently due to external or internal factors. 

Changes in regulations governing the restaurant business in the Group’s various markets may have a negative impact on the Group’s operations. Regulatory changes concerning, for example, alcohol, food and labour laws and value-added taxation may affect the company’s business. 

The availability of skilled part-time labour particularly during high seasons and on the weekends can be seen as an uncertainty factor, that may affect the company’s business operations