PDF - Part of the Annual Report - Ludwig Beck

50 | Management Report
Balance sheet structure
Ludwig
Balance
Beck
sheet
Group
structure
in of € million the Ludwig Beck Group
in € million
Assets Equity & Liabilities
30.8 93.6 30.8 93.6
78.2
38.9
1.9
14.7
17.7
13.4 15.2
1.6
2.7 0.2
11.5 52.8
2000 2001 2000 2001
Fixed assets Equity
Current assets Accruals
Prepaid assets Liabilities
The consolidated balance sheet of the Ludwig Beck Group
showed a strong increase in total assets to € 93.6 (30.8)
million, resulting from the expansion of the consolidatedgroup.
In addition to ludwigbeck-online GmbH and
Ludwig Beck Vertriebs GmbH, the Group now includes the
shareholding of Ludwig Beck Beteiligungs GmbH in Feldmeier
GmbH & Co. Betriebs KG and its real estate assets.
Outlook
Following the extreme difficulties it had to face in the
past year, the German retail clothing sector entered the
current year in a much more subdued mood. The continued
economic downturn, coupled with consumer uncertainty
surrounding the introduction of the euro, have
combined to dash any hopes of a rapid recovery in demand.
The trend towards increased floor space remains strong and
will continue to fuel fierce competition for consumer
attention.
We expect that retail companies without a secure financial
footing and clear market positioning will once again face
far greater problems than the sector as a whole.
The German government expects growth in real terms of
just 0.75% for the current year – a figure which already
takes into account an expected economic recovery in the
second half of 2002. This view is not shared by representatives
of German industry: the Association of German
Chambers of Industry and Commerce (DIHK) expects
“feeble” growth of just 0.5% for 2002.
In its annual economic report, the German government forecasts
nominal growth in consumer spending of around
2.5% (2001: 3.2%). In view of an expected inflation rate
of around 1.5%, this would represent growth of approximately
1.0% (1.4%) in real terms.
Despite the purchase of these real estate holdings, the
Group’s equity ratio remains at a very respectable 41.6
(57.5) %.