Abelló Linde Centenary Book

EQUITY
n these eight years seven capital increases were carried out, virtually
Ione a year. Two totally freed-up by the shareholders; the first four were
done partly in cash and partly paid for by the assets regularization
account, and only the last one was totally in cash. The company thus took
advantage of three facts:
1. The existence of assets, all the immovables, made up of buildings, land,
machinery, containers, furnishings and installations, entered at cost price, which
have experienced heavy capital gains in the course of the years, the result of the
general increase in the value of these assets and the loss of the purchasing power
of the peseta, in years of high inflation. The legislation makes it possible to
regularize the value of these assets, incorporating the re-evaluation into the
equity.
2. From the start, the company has made the maximum depreciations of
immovable assets, so there is a large amount – sinking fund – that reduces its
accounting value even more.
3. The voluntary reserves are also important, the result of a very prudent
financial policy, with the placing in reserves of an important part of the net profit
achieved in each financial year.
The result is that the capital goes from 132 million pesetas in 1975 to 525
million in 1983, and that this further 393 million has been supplied 33% in cash
and the rest charged to reserves or asset regularization accounts.
In 1981 the accumulated sinking fund, which was 1,593 million pesetas,
was allocated to reducing the value of the immovable assets, so that these were
reduced to 61.5% of their accounting value.
Special gas laboratory at La Sagrera factory
The german majority (1976-1983) 141