PDF Document 2.46 MB - Geveko

Financial Reports / NotesNote 29 Contingent liabilities, cont’dThe total demands over and above transfers to reserve, amount tosome SKr 3 million. Geveko’s assessment is that the parties concernedhave no grounds for their claims over and above the provisionsmade.No significant liabilities are expected to arise as a consequenceof any of the above types of contingent liability.Contingent assetsThe Group has tax-deductible loss allowances for which no deferredtax receivables are stated (see Note 10). They amount to SKr28,692,000 (36,665,000).Note 31 Adjustments for items notincluded in cash flow, cont’dCash flow from changes in working capitalGroup Parent company2007 2006 2007 2006Increase(-)/Decrease(+)in inventories -13,026 -17,628 - -Increase(-)/Decrease(+)in current receivables -14,839 -17,274 567 -342Increase(+)/Decrease(-)in current,interest-free liabilities -12,737 12,519 1,079 807-40,602 -22,383 1,646 465Note 30 UndertakingsThe Geveko Group has no current operational leasing contracts ofmaterial importance, except for rental agreements and site leasesrelating to property used in the business. Information on theGroup’s significant rental agreements is provided below.Group 2007 2006Fall due for payment within one year 4,931 3,945Fall due for paymentbetween one and five years 8,057 10,435Fall due for payment after five years 0 0Rent for site leases per year 388 382Rental costs and site lease rental costs inrespect of property used in the businessamounted during the year to:Rental costs 4,578 4,160Site lease rent 388 382Geveko’s undertaking to pay in capital amounts in total to 3.5 millioneuro. The remaining commitment as of 31 December 2007 amountsto 1.2 million euro, or SKr 11.3 million.Note 31 Adjustments for items notincluded in cash flowGroupParent company2007 2006 2007 2006Tax 6,857 8,404 - -Depreciation 70,331 73,850 22 31Write-downin value of intangiblefixed assets - - - -Capital gains/losseson sales of fixed assets 12,529 -24,826 14,722 -19,492Change in valueof securities 3,896 -80,367 3,896 -80,367Dividends -14,801 -13,022 -14,801 -38,021Financial income -7,084 -5,683 -12,388 -7,076Financial costs 39,944 14,632 16,420 2,159Pension provisions 1,068 -382 - -Change inother provisions -3,899 79 - -Interest in earningsof associate companies -205 -10,951 - -Unrealisedprice changes -1,501 - - -Total 107,135 -38,266 7,871 -142,766Note 32 Acquisition of subsidiariesIn 2007, all the shares in LKF Nederland BV, Holland, were acquiredfor SKr 0.2 million, in Dartom Sp z oo, Poland, for SKr 18.4 million,in GiK Sp z oo, Poland, for SKr 16.1 million, in Technom Sp z oo,Poland, for SKr 20.9 million, and in Osfer sro, Slovakia, for SKr 12.3million. Moreover, two subsidiaries, Geveko Industri A.S., Norway,and Cleanosol Rus LLC, Russia, have been set up, each of whichwith equity of SKr 0.1 million. Finally, 28% of the shares in MagyarPlastiroute Kft, Hungary, have been acquired for SKr 33.0 million.This company was formerly an associated company.All of the acquired companies are engaged in contract roadmarking and the sale of materials. Their sales in 2007 amounted toSKr 192.3 million and their net profit to SKr 1.5 million. Their salessince the acquisition dates in 2007 amounted to SKr 47.6 million,while their net result was a loss of SKr 1.9 million.The difference between their book values and market values isattributable to the excess value of land, buildings, equipment andplant, and to customer contracts and relations.The Group has acquired the following assets and liabilities asa result of consolidating the above companies.Market Bookvalue valueIntangible fixed assets 46,943 -Tangible fixed assets 65,969 50,022Financial fixed assets 17,071 17,071Current assets 103,102 103,102Liquid funds 37,403 37,403270,488 207,598Minority interests 29,300 -Provisions 16,073 40Interest-bearing liabilities 8,592 8,592Interest-free liabilities 49,126 49,126103,091 57,758Purchase price paid during the year - -101,156Liquid funds of acquired companies - 37,403Effect on Group’s liquid funds - -63,75372