Statement of Financial Position and Financing
The figures presented in the statement of financial position of December 31, 2018,
are compared with the statement of the financial position of December 31, 2017 (MEUR).
|Dec. 31, 2018||Dec. 31, 2017|
|Total equity and liabilities||132.4||138.4|
|Cash flow of the review period:||Jan,-Dec. 2018||Jan.-Dec. 2017|
|+ Profit of the period +/- Adjustment of accrual basis items||7.9||-2.4|
|+/- Change in net working capital||-8.4||2.0|
|- interest, taxes and dividends||0.0||0.3|
|= Net cash from operating activities||-0.5||-0.0|
|- Net cash from investing activities||-19.8||-18.5|
|- Net cash from financing activities||-11.7||-13.4|
|= Net change in cash and cash equivalents||-32.0||-32.0|
Net cash from operating activities in 2017 includes operative cash flows from both continuing and discontinuing operations.
The amount of gross investments in the period under review was EUR 21.2 million. Net investments for the review period totaled to EUR 21.2 million. The total amount of depreciation during the period under review was EUR 4.6 million. The amount of interest-bearing debt, including finance lease liabilities, was at the end of the reporting period EUR 1.5 million (EUR 1.2 million on December 31, 2017). Bittiumīs equity ratio at the end of the period was 84.7 percent (85.6 percent on December 31, 2017).
Cash and other liquid assets at the end of the reporting period were EUR 30.9 million (EUR 62.9 million on December 31, 2017). Net cash flow during the period was EUR -32.0 million. The net cash flow resulted as the most significant items from the EUR 15.1 million investments made into own product development and the EUR 10.7 million dividend payment (EUR -32.0 million, in 2017, including EUR 5.8 million investments made into own product development, EUR 10.7 million dividend payment and investments in the new premises in Oulu as the most significant items).
Bittium has a total of EUR 30.0 million committed credit facility agreements. In December 2018, Bittium renewed one EUR 10.0 million credit facility agreement so that the amount of the credit limit was raised to EUR 20.0 million. This new credit facility agreement is valid until December 31, 2021. The other EUR 10.0 million credit facility agreement, signed in 2017,is valid until December 31, 2019. At the end of the review period, EUR 0.0 million of these facilities were in use.
Bittium follows a hedging strategy that has an objective to ensure the business margins in changing market circumstances by minimizing the influence of exchange rates. According to the hedging strategy principles, the net position in the currency is hedged when it exceeds the euro limit defined in the hedging strategy. The net position is determined on the basis of accounts receivable, accounts payable, order book and budgeted net currency cash flow.