Half Year Financial Report 1 Jan–30 June 2017
27 July 2017
Balance sheet, financing and cash flow
On 30 June 2017, the balance sheet total was EUR 1,018.0 million (1,055.5), of which shareholders' equity accounted for EUR 294.3 million (316.1). 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 June 2017 amounted to EUR 420.6 million (446.4). At the end of the quarter, net working capital stood at EUR 219.8 million (236.9). Working capital declined from comparison period especially in Building construction, Finland.
Interest-bearing debt at the end of the period amounted to EUR 213.0 million (281.3) and interest-bearing net debt totalled EUR 156.8 million (165.2). Long-term interest-bearing debt accounted for 56% (43) of the loan portfolio at the end of the period. Liquid funds totalled EUR 56.2 million (116.2). Of the company's interest-bearing debt, EUR 99.8 million (99.7) comprises bonds, EUR 83.1 million (98.4) borrowings of housing and commercial property companies included in inventory, EUR 29.4 million (31.3) finance lease liabilities and EUR 0.7 million (2.5) 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. During the second quarter, Lemminkäinen has negotiated a waiver related to certain terms of the facility with regard to the planned combination with YIT. 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 (12.4). Of the loan portfolio, 66 % (50) was at a fixed interest rate.
Net finance costs amounted to EUR 4.1 million (4.8) in April–June and EUR 8.4 million (8.7) in January–June. The interest expenses of the hybrid bonds 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 4.0 million (25.6) in April–June and EUR million -44.8 (7.2) in January–June. Cash flow from operations declined due to changes in net working capital. Especially in Paving and Russian operations, change in net working capital increased from the comparison period.
The company will continue to manage the balance sheet and cash flow, and its aim is to increase plot investments in growth centers in building construction in Finland.
Updated 27 July 2017