annual report - Kendrion

The balance sheet total increased by
EUR 52 million from end 2010 to end 2011,
as a result of:
z Acquisition of FAS Controls, Inc.:
EUR 41 million;
z Increased inventories (23%) and trade
and other receivables (18.5%):
total EUR 12 million;
z Reduced deferred income tax:
EUR 4 million.
Goodwill payments were made for the
Linnig Group in 2007, Tri-Tech in 2008,
Magneta in 2010 and FAS Controls, at the
end of 2011.
Acquisition-related intangible assets for the
four acquisitions mainly consist of the value
of customer relations and technology.
The annual amortisation (without taking
foreign currency translation differences into
account) will amount to EUR 2.4 million in
2012 and EUR 2.0 million in 2013, and will
decrease incrementally to EUR 1.3 million
in 2017 and EUR 0.5 million in 2018 (up to
2026). Further information is included in
the notes 2 and 20 on pages 91 and
following and 117 and following.
Deferred income tax
EUR million
Valued tax losses carried forward
Germany income tax (15.8%)
Germany trade tax (12.2%)
The Netherlands income tax (25.5%)
Austria income tax (25.0%)
Total
Temporary differences
Deferred income tax assets
Deferred income tax
We refer to note 4 on pages 94, 95 and 96
of the financial statements for more
detailed information.
Net working capital 31 December
EUR million
Inventories
Trade and other receivables, tax receivable
Trade and other payables, tax payable
2011
38.6
9.0
3.6
–
51.2
4.0
55.2
9.3
1
2011
34.7
36.6
(39.8)
2010
47.5
18.6
5.2
2.0
73.3
3.9
77.2
12.8
2010
28.2
30.5
(32.7) Net working capital as a % of revenue
remained stable compared to 2010,
although 2011 compared to 2010 has been
negatively influenced by income tax
receivable and payable; excluding this
effect, net working capital would have been
11.9% (12.5% at end 2010).
The Days Inventory Outstanding as based
on the fourth-quarter revenue increased
from 44 to 49, partly explained by increased
activities in Asia (sea freight), while Days
Sales Outstanding increased from 41 to 44.
The increases in both working capital
categories were compensated by the
increase in Payables. The increase in
inventories will result in more stringent
monitoring of stock levels in 2012.
The quality of the trade receivables
portfolio remains at a high level.
At year-end the provision amounted to
EUR 0.3 million. Amounts › 60 days overdue
are negligible (less than 1%).
Net working capital 31.5 26.0
At year-end 2011, the solvency ratio was
As % of revenue 11.8% 11.7% 40% (year-end 2010: 64.7%).
1 Before acquisition of FAS Controls, Inc.
2 Excluding an earn-out liability.
44
annual report 2011