Interim Report 1 Jan–30 September 2017
26 October 2017
Balance sheet, financing and cash flow
On 30 September 2017, the balance sheet total was EUR 1,037.0 million (1,156.7), of which shareholders' equity accounted for EUR 330.3 million (346.5). 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 30 September 2017 amounted to EUR 404.5 million (394.6). At the end of the quarter, net working capital stood at EUR 213.0 million (188.8). Working capital grew from comparison period especially in Infra projects.
Interest-bearing debt at the end of the period amounted to EUR 192.2 million (273.7) and interest-bearing net debt totalled EUR 104.5 million (82.0). Long-term interest-bearing debt accounted for 61% (43) of the loan portfolio at the end of the period. Liquid funds totalled EUR 87.7 million (191.8). Of the company's interest-bearing debt, EUR 99.2 million (99.7) comprises bonds, EUR 65.4 million (92.5) borrowings of housing and commercial property companies included in inventory, EUR 27.0 million (29.7) finance lease liabilities and EUR 0.6 million (2.3) other financial liabilities. No commercial papers were outstanding at the end of the quarter (49.6).
In the third quarter, the noteholders' meeting approved the changes to the terms and conditions of Lemminkäinen's EUR 100,000,000 senior unsecured notes. The changes will become effective at the completion of the planned merger of Lemminkäinen into YIT Corporation.
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 (12.5). Of the loan portfolio, 73% (51) was at a fixed interest rate.
Net finance costs amounted to EUR 3.7 million (4.9) in July–September and EUR 12.1 million (13.6) in January–September. The interest expenses of the hybrid bond are not recorded under finance costs in the income statement; instead, their impact can be seen in earnings per share and equity.
Cash flow from operating activities amounted to EUR 51.6 million (86.0) in July–September and EUR 6.8 million (93.2) in January–September. Cash flow from operating activities declined due to changes in net working capital, especially in Infra projects and Russian operations.
Updated 26 October 2017