Interim report 1 Jan–31 March 2017
27 April 2017
Balance sheet, financing and cash flow
On 31 March 2017, the balance sheet total was EUR 931.0 million (949.6), of which shareholders' equity accounted for EUR 288.5 million (301.7). Shareholders' equity includes EUR 34.8 million (69.3) hybrid bond. The company is entitled to redeem the remaining nominal amount of EUR 35.2 million hybrid bond earliest in March 2018.
The Group's operating capital on 31 March 2017 amounted to EUR 392.9 million (450.4). The decrease is mainly due to decline in net working capital. At the end of the quarter, net working capital stood at EUR 188.6 million (235.8). It has been mostly reduced by sale of completed units in Finland.
Interest-bearing debt at the end of the quarter amounted to EUR 215.1 million (289.0) and interest-bearing net debt totalled EUR 137.6 million (186.6). Long-term interest-bearing debt accounted for 56% (42) of the loan portfolio at the end of the period. Liquid funds totalled EUR 77.5 million (102.4). Of the company's interest-bearing debt, EUR 99.8 million (99.7) comprises bonds, EUR 83.1 million (104.1) borrowings of housing and commercial property companies included in inventory, EUR 31.4 million (32.9) finance lease liabilities and EUR 0.9 million (2.7) other financial liabilities. No commercial papers were outstanding at the end of the quarter (49.6).
In March 2017, Lemminkäinen signed a new EUR 200 million committed revolving credit facility. The facility will mature during the first quarter in 2020 with options for two one year extensions. Simultaneously, the company cancelled its EUR 185 million committed revolving credit facility that would have matured during the first quarter in 2018. At the end of the period, the company had available committed revolving credit facilities worth EUR 200.0 million (185.0) and overdraft limits worth EUR 12.5 million (12.3). Of the loan portfolio, 65% (48) was at a fixed interest rate.
Net finance costs amounted to EUR 4.3 million (3.9) in January–March. The interest expenses of the hybrid bonds are not recorded under finance costs in the income statement; instead, they impact earnings per share and equity.
Cash flow from operating activities amounted to EUR -48.9 million (-18.4) in January–March. Cash flow from operations declined due to changes in net working capital.
The company has successfully strengthened its financial position. The company will continue to manage the balance sheet and cash flow, and its aim is to increase plot investments in growth centres in building construction in Finland.
Updated 27 April 2017