A hundred-year balance Annual Report 2010 - Uzin Utz AG

Situation of the Group*
* (all figures to IFRS)
52
The asset, financial and revenue situation of the Group
developed positively overall in the year 2010. Increasing
sales in combination with the continuation of strict cost
management led to improvements in most major positions.
Sales revenues and the result from ordinary activities
increased once again.
» In the comparison of the balance sheet values, it must
be noted that the correction to the company valuation of
BIL Leasing shown in the Appendix had an effect on the
previous year’s figures for intangible assets and equity.
Financial position
The balance sheet total increased by € 12.6 million to
€167.3 million (154.7). The share of group non-current
assets fell to 55.3% (57.7), and the current assets therefore
make up 44.7% (42.3) of the balance sheet total.
» Trade receivables rose due to the increased sales from
€22.7 million to €25.7 million.
» As a result of the improved order situation, inventories
rose by €5.2 million from €20.1 million to €25.3
million.
» The intangible assets rose slightly from €31.8 million
to €31.9 million.
» The tangible assets rose by €2.7 million to €59.4 million,
as a result of increased investment activities. The
exchange rate effect from the conversion of non-Euro
balances amounted to around €1.9 million. For the coming
year, a total of €15 million in investments is planned
within the group. These relate mainly to investments
for the extension of the Ulm production location started
in previous years. Investments are also planned at Unipro
B.V. for 2011, which relate mainly to the purchase
of the property currently in use.
» The cash and cash equivalents increased by nearly
0.8% or €0.1 million to €14.5 million.
» With the exception of investment properties, the complete
assets continue to represent the commercially necessary
values.
» Non-balance sheet financing instruments were used,
and refer mainly to rental and leasing contracts.
Liquid and capital resources
The total equity amounted to €77.1 million (67.6), and
at a proportion of 46% (44) of the balance sheet total
remains significantly above the sector average.
» The short-term financial liabilities fell by a total of
€1.6 million to €22.6 million. This reduction results from
capital repayments which were possible due to the high
cash-flow. Long-term fixed-interest loans were also taken
out to take advantage of the favourable interest rate.
This reduced the short-term current-account overdrafts.
» The liabilities from income tax fell from €1.6 million
to €1.2 million.
» The reserves increased by €0.4 million to €6.7 million
(6.3).
» The share of the short-term liabilities in the balance
sheet total thereby fell from 27.2% in the previous year
to 25.8% in the year 2010.
» The long-term due to credit institutions increased by
€1.1 million to €35 million (33.9) due to the above-mentioned
assumption of long-term, low-interest loans.
» The share of the non-current liabilities in the balance
sheet total fell slightly from 29.1% in the previous year
to 28.0% in the year 2010. In absolute terms, the noncurrent
liabilities increased by around €1.9 million from
€45.0 million to €46.9 million.
» The principle and simultaneous objective of the finance
management is to ensure adequate liquidity at all times,
while at the same time maintaining a high equity capital
ratio well above the sector average. This requirement
was also satisfied in the year 2010. Liquidity was insured
at all times, and lines of credit were never utilised to the
full amount. In 2010, various financing measures were
required due to the investments at the Ulm and Haaksbergen
locations. The total credit volume in the group
in the year 2010 was €57.6 million, slightly down from
€58.1 million in the previous year. Of this total, there
were around €22.6 million with a remaining term of up
to one year (24.2), €31.2 million with a remaining term
of between 1-5 years (27.9) and around €3.8 million
with a remaining term of over 5 years (6.0). These loans
were almost all taken out at a fixed interest rate. The remaining
proportion of the credit volume was taken out
at variable interest rates. A further capital requirement
exists particularly for the investments of Uzin Utz AG,
although we do not thereby anticipate any major changes
in the interest rate structure. The total credit volume
also includes three subordinated capital tranches of
Uzin Utz AG in the amount of €6.8 million, which come
from the programmes “Capital for work” and “ERP innovation
programme” of the Kreditanstalt für Wiederaufbau
(Reconstruction Loan Corporation). With its receivables
from this loan, the bank stands irrevocably
behind all present and future receivables of creditors in