Consolidated Financial Statements - L. Possehl & Co. mbH

Possehl Inc. Group: American trading activities turn
out to be very successful
In fi scal year 2005, the Possehl Inc. Group was again able to achieve the
high sales level of the previous year. The earnings that were achieved
from these sales were equally positive. Expanding the range of products
by adding chemicals together with the good market position in
Central and South America guaranteed the success of our American
trading activities.
At the beginning of the year 2006 we handed over our products from
the non-fi reproof division to our previous American partner. The trade
in industrial raw materials for the steel and foundry industry for North
America that remained with Possehl Inc. enabled a closer tie to the
Erzkontor Group, which was operating primarily in Europe.
EARNINGS POSITION IN THE SERVICES
BUSINESS SEGMENT
in €T
2005 2004 Change %
Sales 10,067 9,316 8.1
EBT 1,394 1,319 5.7
Capital expenditures 315 252 25.0
Sales with services continue to advance
The Services division was again able to increase its sales level as
in the previous year. With revenues of € 10.0 million, the group of
companies in the insurance, transport, tank protection, reconstruction
and gravel industry reported growth of about 8 % compared to
the reference period.
The largest share of this positive development was claimed by
Possehl Umweltschutz GmbH, which was able to generate its jump in
sales mainly by supplying a rather large construction project from its
own gravel sources. The company also succeeded in holding its ground
in the diffi cult tank protection segment, which is burdened by the high
price of oil and the resulting consumer behavior, through its good
service and by expanding the market territory to Mecklenburg-West
Pomerania.
GRKI achieved sales and earnings at the level of the previous year
through the operation of the recycling yards.
Broker activities also
record good earnings
The struggle for market share based on price intensifi ed in the insurance
market during the reporting period. This also characterized the
business development of Lubeca Versicherungskontor GmbH. Our
company was nevertheless able to successfully hold its own on the
market.
Teutonia Fracht- und Assekuranzkontor GmbH played a role in the increased
demand for freight space, the price of which again increased
signifi cantly.
The companies in the Services division are anticipating that business
volume will remain at the same high level for the next several years.
NET ASSETS AND FINANCIAL POSITION
Financial management and fi nancial position: The Group
continues to have a high level of liquidity
The fi nancing of the Possehl Group is handled centrally for the most
part, with the goal of ensuring the cost-effective and secure provision
of liquidity for all Group companies. At the same time, an attempt is
made to invest the cash in banks in the most profi table way.
As of the balance sheet date, the net debt of the Group is € 35.5 million
(previous year: € 40.4 million). It therefore decreased by € 4.9
million or 12.1 %. The inventory of cash and cash equivalents increased
together with a slight increase in liabilities due to banks by € 12.1 million
to € 56.7 million. This was possible even though the purchase
price for the acquisition of the Harburg-Freudenberger Group was paid
completely from internal funds.
The gearing as a ratio of net debt to equity once again improved during
the reporting period. The value declined from 22.2 % to 17.3 %. Taking
into account the shares in Norddeutsche Affi nerie AG held in the
fi nancial assets as well as the shares in Süd-Chemie AG reported within
the current assets, there is once again a positive net liquidity on the
balance sheet date. The shares in Süd-Chemie AG were disposed of at
the beginning of fi scal year 2006. An infl ow of liquidity of € 37.3 million
resulted from this sale. This enabled us to continue fi nancing the
growth of the Group largely from our own internal funds.
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