100
SABAF S.P.A. BUSINESS AND FINANCIAL STATUS IN THOUSANDS OF EURO
Cash flows for the period are summarised in the table below:
2014
2013
2014-2013 CHANGE
% CHANGE
Sales revenue
115,919
112,417
3,502
+3.1%
EBITDA
17,984
16,902
1,082
+6.4%
Operating profit (EBIT)
9,708
5,382
4,326
+80.4%
Pre-tax profit
10,533
5,718
4,815
+84.2%
Net Profit
7,878
3,730
4,148
+111.2%
Balance sheet and financial position The reclassification based on financial criteria is illustrated below: IN THOUSANDS OF EURO
31/12/2014
31/12/2013
Non-current assets
85,110
84,392
Short-term assets6
62,583
58,478
Short-term liabilities7
(25,856)
(23,882)
Working capital 8
36,727
34,596
Financial assets
1,660
1,451
Provision for risks and charges, employee severance pay reserve, deferred taxes
(3,191)
(2,928)
NET INVESTED CAPITAL
120,306
117,511
(17,072)
(13,152)
(7,340)
0
NET FINANCIAL POSITION
(24,412)
(13,152)
SHAREHOLDERS’ EQUITY
95,894
104,359
Short-term net financial position Medium/long-term net financial position
IN THOUSANDS OF EURO
2014
2013
Cash and cash equivalents – opening balance
2,345
1,601
Operating cash flow
14,124
17,101
(9,030)
(9,217)
(6,073)
(7,140)
Cash flow for the period
(979)
744
Cash and cash equivalents – closing balance
1,366
2,345
Cash flow from investments Cash flow from financing activities
Net financial debt and the net short-term financial position shown in the tables above are defined in compliance with the net financial position detailed in Note 21 of the statutory accounts, as required by the CONSOB memorandum of 28 July 2006. The financial year 2014 ended with a 3.1% increase in sales over 2013, supported by greater sales of light alloy valves. Further improvements in productivity made it possible to deal with the fall in average sales prices and to improve EBIT more than proportionally; EBITDA stood at €18 million, 15.5% of sales (€16.9 in 2013, 15%). As described in more detail in the Notes to the separate financial statements, the value of the investment in Faringosi Hinges, which fell by €3.7 million in previous years, was restored by €1.8 million in 2014 following the results of the impairment test, based on the business plan which forecasts a significant increase in sales and profitability for the subsidiary. EBITDA came in at €9.7 million, equivalent to 8.4% of sales (€5.4 million in 2013, 4.8% of sales), net profit was €7.9 million, or 6.8% of sales (vs. €3.7 million in 2013, 3.3%). The actual cost of the main raw materials (brass, aluminium alloys and steel) was on average 5.7% lower compared to 2014. The impact of labour costs on sales remained essentially stable at 24%. Net finance expense as a percentage of sales was minimal, at 0.33% (0.61% in 2013), given the low level of financial debt and the low interest rates. Operating cash flow (net profit plus depreciation & amortisation) increased from €13.6 million to €16.9 million, equivalent to 14.6% of sales (vs. 12.1% in 2013). In 2014 Sabaf S.p.A. invested over €9 million. The main investments in the year related to the industrialisation of new models of special burners and light alloy valves, sales of which are expected to increase further in the future. At 31 December 2014, working capital stood at €36.7 million compared with €34.6 million the previous year: its percentage impact on sales rose to 31.7% from 30.8% at the end of 2013.
6 Sum of inventories, trade receivables, tax credits, and other current receivables 7 Sum of trade payables, tax payables, and other payables 8 Difference between current assets and current liabilities