Financing and financial position

Interim report Q1/2012 9 May 2012

Net operational cash flow was EUR 17.1 million (EUR -18.0 million in 1-3/2011). Cash flow improved in the review period due to a decline in receivables. The Group’s inventories were EUR 367.5 million (EUR 330.4 million), the share of land areas and plot-owning companies being EUR 178.2 million (EUR 191.4 million). The Group’s invested capital amounted to EUR 435.1 million (EUR 410.6 million).

At the end of the review period, the Group’s total financing reserves were EUR 131.8 million, of which Group cash assets accounted for EUR 10.2 million, open-ended account limits and committed undrawn financing reserves and credit facilities for EUR 121.6 million.

Investments in SRV’s developer-contracted housing and commercial construction projects inFinlandtotal EUR 142.8 million. SRV estimates that the completion of these projects requires another EUR 88 million. Moreover, an investment of EUR 22 million is required by the construction of infrastructure in Kalasatama centre, on which decisions have already been finalised. Undrawn housing corporation loans and receivables for housing construction projects and undrawn commercial construction financing amounted to EUR 98 million.

Investments in completed international developer-contracted projects amount to EUR 37.7 million, of which EUR 0.8 million relates to unsold residential projects inEstonia, EUR 1.5 million to unsold housing projects inVyborg, and EUR 35.4 million to the Etmia office project.

Equity ratio was 31.9 per cent (33.2%). The change in the equity ratio and net liabilities was affected by growth in inventories, and the EUR 2.5 million derivative agreement signed by SRV with Nordea Bank Ab for 552 833 SRV Group Plc shares, which are considered to be equivalent to treasury shares held by the company. The Group’s shareholders’ equity totalled EUR 165.4 million (EUR 154.8 million on 31 March 2011). The Group’s net interest-bearing liabilities were EUR 259.5 million on 31 December 2011 (EUR 246.4 million). Net financing expenses were EUR -1.5 million (EUR +0.7 million). Return on equity was 2.1 per cent (2.5 per cent) and return on investment -1.0 per cent (2.9 per cent).

Financial result 2011 16 February 2012

Net cash flow from operating activities amounted to EUR -45.2 million (EUR -27.8 million). The weakening of the review period cash flow was attributable to the increase in inventories. Group inventories amounted to EUR 354.4 million (EUR 323.8 million) of which land and plot-owning companies represented EUR 187.8 million (EUR 181.3 million). The Group invested capital amounted to EUR 454.0 million (EUR 387.1 million).

At the end of the financial year, the Group financing reserves were EUR 114.4 million, of which Group cash assets amounted to EUR 12.5 million, overdraft facilities, committed undrawn credit facilities and agreed but undrawn credits amounted to EUR 96 million. Moreover, the undrawn housing corporate loans related to RS projects totalled EUR 5.9 million. In addition to its financing reserves, the Group had EUR 33 million worth of binding credit agreements and a further EUR 32 million in receivables from the sales of the Kampin Luola Oy stock.

Investments in SRV’s developer- contracted housing and commercial construction projects in Finland, completed and those under construction, total at EUR 105.9 million. SRV estimates that the completion of these projects will require a further investment of EUR 130.0 million. Undrawn housing corporate loans, sales receivables and undrawn project finance for commercial and public property projects amount to a total of EUR 137.4 million.

Investments in completed international projects total EUR 38.2 million, of which unsold residential projects in Estonia amount to EUR 0.9 million, and to EUR 1.9 million in Vyborg. EUR 35.4 million is invested in the Etmia office project.

The equity ratio was 31.0 percent (35.2 percent). The changes in the equity ratio and the net liabilities were brought about by the increase in inventories and by the EUR 2.5 million derivative agreements signed by SRV with Nordea Bank Ab for 552,833 SRV Group Plc.’s shares comparable to treasury shares held by the company. The Group shareholders’ equity totalled EUR 169.7 million (EUR 157.2 million) at period end. Group net interest-bearing liabilities were EUR 271.8 million (EUR 222.8 million) at period end. Net financing expenses totalled EUR 3.3 million (EUR 4.5 million). The return on investment (ROI) was 4.5 percent (4.1 percent) and the return on equity (ROE) 3.3 percent (3.2 percent).

Interim report Q3/2011

Net operational cash flow was EUR -54.3 million negative (EUR -35.5 million in January-September 2010). The weakening of the cash flow during the review period was attributed to the increase of inventories. The Group’s inventories were EUR 389.0 million (EUR 314.8 million), the share of land areas and plot-owning companies being EUR 199.2 million (EUR 174.4 million). The Group’s invested capital amounted to EUR 444.2 million (EUR 390.3 million).

At the end of the review period, the Group’s financing reserves totalled EUR 138 million, of which the Group’s cash assets amounted to EUR 11.6 million, the amount of open-ended account limits and committed undrawn financing reserves and commitments amounted to EUR 112.9 million and withdrawable housing company credits related to RS projects amounting to EUR 14.7 million. The Group’s net interest-bearing liabilities were EUR 269.6 million (EUR 229.7 million) on 30 September 2011. Net financing expenses totalled EUR 2.5 million (EUR 2.8 million).

Investments in SRV’s developer contracting RS housing projects in Finland including completed, unsold projects, total EUR 111.0 million. SRV estimates that the completion of these projects requires EUR 70.7 million. Undrawn housing corporate loans and receivables related to RS projects total EUR 92.9 million. Investments in the business premises projects on a developer contracting basis total EUR 37.1 million. Investments in the completed international projects total EUR 41.4 million, of which unsold residential projects in Estonia amount to EUR 1.0 million, and EUR 1.9 million in Vyborg.  EUR 38.5 million is invested in the Etmia office project.

 Equity ratio was 30.9 per cent (35.1%). The change in the equity ratio and net liabilities was affected by the increase in inventories and the EUR 2.5 million derivative agreement signed by SRV with Nordea Bank Ab for 552,833 SRV Group Plc’s shares which are considered equal to treasury shares held by the company. The Group’s shareholders’ equity totalled EUR 161.1 million (EUR 155.3 million on 30 September 2010). The return on investment was 1.4 per cent (3.2%) and the return on equity was 2.4 per cent negative (2.3% positive).

Interim report Q2/2011

Net operational cash flow was EUR -43.5 million negative (EUR -27.8 million in JanuaryJune 2010). The weakening of the cash flow during the review period was attributed to the increase of inventories. The Group’s inventories were EUR 360.9 million (EUR 302.1 million), the share of land areas and plot-owning companies being EUR 196.3 million (EUR 174.0 million). The Group’s invested capital amounted to EUR 446.5 million (EUR 384.9 million). 

At the end of the review period, the Group’s financing reserves totalled EUR 138 million, of which the Group’s cash assets amounted to EUR 20.5 million, the amount of open-ended account limits and committed undrawn financing reserves and commitments amounted to EUR 97.3 million and withdrawable housing company credits related to RS projects amounting to EUR 20.6 million. The Group’s net interest-bearing liabilities were EUR 263.5 million (EUR 263.5 million) on 30 June 2011. Net financing expenses totalled EUR 0.7   12 (31) million. The financing expenses were affected by the gains from interest rate swaps, exchange rate gains and financial incomes from associated companies.

Investments in SRV’s developer contracting RS housing projects in Finland including completed, unsold projects, total around EUR 95.9 million. SRV estimates that the completion of these projects requires another EUR 81.4 million. Undrawn housing corporate loans related to RS projects totalled EUR 91.3 million. Investments in the business premises projects on a developer contracting basis total EUR 32.7 million. Investments in the completed international projects total EUR 41.3 million, of which unsold residential projects in Estonia amount to EUR 1.0 million, and EUR 2.1 million in Vyborg.  EUR 38.2 million is invested in the Etmia office project.

Equity ratio was 31.7 per cent (35.1%). The change in the equity ratio and net liabilities was affected by the increase in inventories and the EUR 2.5 million derivative agreement signed by SRV with Nordea Bank Ab for 552,833 SRV Group Plc’s shares which are considered equal to treasury shares held by the company. The Group’s shareholders’ equity totalled EUR 162.5 million (EUR 152.2 million on 30 June 2010). The return on investment was 1.4 per cent (2.1%) and the return on equity was 1.3 per cent negative (0.1%).

Interim report Q1/2011

Net operational cash flow was EUR  -18.0 million negative (EUR  -7.1 million in JanuaryMarch 2010). The weakening of the cash flow during the review period was attributed to the increase of inventories. The Group’s inventories were EUR 330.6 million (EUR 290.0 million), the share of land areas and plot-owning companies being EUR 191.4 million (EUR 165.9 million). The Group’s invested capital amounted to EUR 410.6 million (EUR 357.5 million).

At the end of the review period, the Group’s financing reserves were EUR 132.1 million, of which the Group’s cash assets amounted to EUR 9.4 million and the share of committed undrawn financing reserves amounted to EUR 101.7 million. In addition, the group had committed financing commitments amounting to EUR 29.4 million. The Group’s net interest-bearing liabilities were EUR 246.4 million on 31 March. Net financing incomes 10 (28) totalled EUR 0.7 million (net financing expenses EUR 1.4 million). The increase of financing incomes was attributable to gains from interest rate swaps, exchange rate gains and financial incomes from associated companies.

Investments in SRV’s developer contracting housing projects in Finland including completed, unsold projects, total around EUR 81.4 million. SRV estimates that the completion of these projects requires another EUR 71.7 million. Undrawn housing corporate loans related to RS projects totalled EUR 85.0 million. Investments in the business premises projects on a  developer contracting basis total EUR 25.7 million. Investments in the completed international projects total EUR 38.4 million, of which unsold residential projects in Estonia amount to EUR 1.0 million, and EUR 2.1 million in Vyborg.  EUR 38.8 million is invested in the Etmia office project.

Equity ratio was  33.2 per cent (37.0%). The change in the equity ratio and net liabilities was affected by the EUR 8.5 million derivative agreement signed by SRV with Nordea Bank Ab for 1,909,483 SRV Group Plc’s shares which  are considered equal to treasury shares held by the company as well as the increase in inventories. The Group’s shareholders’ equity totalled EUR 152.6 million (EUR 147.5 million on 31  March 2010). The return on investment was 2.5 per cent (2.5%) and the return on equity was 2.9 per cent (-1.7%).