Balance sheet, cash flow and financing
On 31 December 2013, the balance sheet total was EUR 1,342.7 million (1,303.5), of which equity accounted for EUR 324.0 million (441.8). Lemminkäinen’s net working capital was EUR 325.1 million (426.5). Lemminkäinen’s working capital optimisation pays particular attention to the timeliness of invoicing and the optimisation of the turnover of trade receivables and trade payables.
At the end of the financial period, Lemminkäinen’s equity ratio was 27.3% (37.2) and gearing was 100.8% (62.8). As a four-quarter average, the equity ratio was 30.3% and gearing was 91.1%. Lemminkäinen’s return on investment was -9.4% (10.8). The clearly negative result and the decreasing shareholders’ equity impaired key figures.
Interest-bearing debt increased by 10 per cent, totalling EUR 407.6 million (371.2) at the end of the review period. Long-term interest-bearing debt totalled EUR 61.3 million (138.8) and short-term interest-bearing debt EUR 346.3 million (232.4). Of all interest-bearing debt, 32 per cent (45) was at a fixed interest rate. At the end of the review period, the Group’s liquid funds stood at EUR 81.1 million (93.9) and interest-bearing net debt totalled EUR 326.5 million (277.3).
Of the company’s interest-bearing debt, 10% (15) comprises loans from financial institutions, 37% (23) commercial papers, 18% (18) project loans related to residential and commercial development, 5% (12) pension loans, 14% (16) finance lease liabilities, and 15% (16) bonds. At the end of the financial period, the company had binding, unused credit limits amounting to EUR 175.0 million (139.6) and overdraft limits amounting to EUR 44.0 million (54.1). In the fourth quarter of the year, Lemminkäinen terminated the EUR 70 million, two-year syndicated credit facility agreed in March 2013, considering it unnecessary. In 2013, the financing expenses, on average, were 2.9% (3.1).
Some of Lemminkäinen’s financial agreements include two financial covenants, which are monitored quarterly: the ratio of net debt to EBITDA and the equity ratio. In March 2013, in connection with limit-related negotiations, Lemminkäinen and its creditors agreed that potential damages will be ignored in the calculation model. Furthermore, before the end of the financial period, an agreement was reached on changes in the covenant terms for Q4/2013 and Q1/2014.
In 2013, net finance costs amounted to EUR 26.7 million (21.4), representing 1.2 per cent (0.9) of net sales.
The increase in finance costs were due to the increase in interest-bearing debt, financing limits renewed during the first months of the year and increasing currency hedging costs.
Cash flow from operations totalled EUR 8.3 million (57.8). The difference from the comparison period was mainly due to the clearly negative result.