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Financing, capital expenditure and changes in the Group structure

​Financing and capital expenditure

Cash flow from operating activities amounted to EUR 76.4 million (89.8). A total of EUR 2.7 million in working capital was released (9.5 released). The exceptionally high cash flow from operating activities in the comparison period was affected by the factoring of trade receivables implemented in summer 2015.

At the end of the period, interest-bearing liabilities amounted to EUR 66.9 million (95.8). 

Net interest-bearing liabilities amounted to EUR 38.7 million (EUR 41.8 million), showing a decrease of EUR 27.0 million from the previous quarter and a decrease of EUR 3.1 million from the comparison period.

Net financial expenses in 2016 amounted to EUR 0.4 million (EUR 2.2 million). Net financial expenses were 0.1% (0.3%) of net sales and they included EUR 1.4 million in exchange rate gains arising from the appreciation of the Russian rouble.

The average interest rate on long-term loans (with interest rate hedging) was 1.6% (1.5%). Long-term loans totalling EUR 2.6 million will mature in 2017.

The equity ratio was 50.4% (46.5%) and the gearing rate was 17.3 (19.8). Liquid assets at the end of the period amounted to EUR 28.2 million (54.0).

The EUR 100 million commercial paper programme and the committed limit totalling EUR 100 million were not in use at the end of the period, as was the case in the comparison period.

Gross capital expenditure in 2016 totalled EUR 41.6 million (49.6; 44.7), consisting primarily of machine and equipment purchases, investments in information systems and acquisitions. Of the significant ongoing information system projects, the deployment of the new ERP system for Facility Services and the first deployments of new financial systems took place in late 2016 and early 2017.

Loans, liabilities and contingent liabilities to related parties

Related-party transactions are accounted for in Note 33.

Changes in ​Group structure

The Group acquired the shares of Huurinainen Oy, a Kajaani-based company specialising in waste management and sewer maintenance, and the business operations of the Pieksämäki-based JPM-Kuljetus Oy.

 

 Key figures for financing

 
 
 
 
 
 
 
 
 
2016
2015
2014
 
Interest-bearing liabilities, EUR million
66.9
95.8
96.0
 
Net interest-bearing liabilities, EUR million
38.7
41.8
52.0
 
Interest expenses, EUR million
1.7
1.1
1.3
 
Net finance costs, EUR million
-0.4
-2.2
-21.9
 
Net finance costs, % of net sales
0.1
0.3
3.4
 
Net finance costs, % of operating profit
0.7
4.4
45.2
 
Equity ratio, %
50.4
46.5
46.3
 
Gearing, %
17.3
19.8
25.2
 
Cash flow from operating activities, EUR million
76.4
89.8
79.6
 
Change in working capital in the cash flow statement, EUR million
2.7
9.5
2.2
 

 Invested capital

 
 
 
 
 
 
 
 
 
EUR million
31 Dec 2016
31 Dec 2015
31 Dec 2014
 
Non-current assets
308.3
303.4
296.5
 
Inventories and receivables
116.3
108.3
117.8
 
Liquid assets
28.2
54.0
44.5
 
Deferred tax liability
-24.8
-24.9
-24.7
 
Trade and other payables
-129.9
-121.7
-120.4
 
Provisions
-6.8
-8.0
-7.5
 
Other non-interest-bearing liabilities
-1.5
-3.7
-3.4
 
Invested capital
289.9
307.4
302.9
 

 Capital expenditure by balance sheet item

 
 
 
 
 
 
 
 
 
 
EUR million
2016
2015
2014
 
Real estate
4.7
3.3
1.4
 
Machinery, equipment and other property, plant and equipment
26.3
32.3
31.2
 
Goodwill and other intangible rights arising from business acquisitions
1.4
6.0
6.8
 
Other intangible assets
9.3
7.9
4.6
 
Other non-current assets
0.0
0.0
0.7
 
Total
41.6
49.6
44.7
 

 Capital expenditure by division

 
 
 
 
 
 
 
 
 
 
 
EUR million
2016
2015
2014
 
Environmental Services
18.5
24.4
26.6
 
Industrial Services
8.2
7.5
6.6
 
Facility Services
14.5
17.3
11.3
 
Renewable Energy Sources
0.3
0.3
0.2
 
Group administration and other
0.0
0.0
0.0
 
Total
41.6
49.6
44.7

Lassila & Tikanoja plc

  • Valimotie 27
    P.O. Box 28
    FIN-00380 Helsinki

 

  • Telephone +358 10 636 111
    Fax +358 10 636 2800
    Business ID 1680140-0