Annual Report Coforta 2015

Page 56

General notes CoĂśperatie Coforta U.A. ('the Cooperative') was incorporated on 25 October 1996 and has its registered office in The Hague, the Netherlands. It is the sole shareholder of The Greenery B.V. ('the Company').

Amounts included in the notes are amounts in thousands of euros, unless stated otherwise.

1 Principal activities

has only used the accounts receivable financing

The Cooperative holds the entire share capital of The

facility, which is maximised at EUR 75 million, on the

Greenery B.V. The Greenery is a leading, international

basis of advances for trade receivables recognised by

company engaged in obtaining a full assortment of

the bank. In addition, due to the introduction of

fruit, vegetables and mushrooms from around the

supply chain finance with a major client, the use of

world and supplying these fresh to its clients every

this facility decreased in 2015.

day, all year round. Its clients are mainly wholesalers and supermarket chains in Europe and North America.

Outlook for 2016 and beyond

The company also supplies caterers and industry. The

In 2016 the operating result is expected to show

Greenery B.V. has branches in 11 countries and its

further improvement; despite the positive

policy and approach focus on market orientation, food

development of commercial and financial result, the

safety, sustainability, innovation and logistics

fall in members' volumes continues to require our

efficiency.

attention. Management expects to be able to absorb this decrease in the short term through contracted

2 Continuity

additional purchases. In addition, it focuses on the need to bind members, which is important to ensure

Developments in 2015

the long-term continuity of the company and of

The strategy towards supply chain cooperation and

CoĂśperatie Coforta.

cost-price leadership, launched in 2015, proved effective in 2015. In that year profitability levels

Management has prepared a liquidity forecast in

improved, despite the high costs associated with the

order to assess whether the company will be able to

disposal, restructuring or closure of loss-making

meet its commitments in 2016 and subsequent years.

activities. The net result for 2015 is EUR 4.1 million.

To that end, it has prepared assumptions regarding

Excluding the positive income from associates of EUR

volume and price developments, operating expenses,

11 million, the company registered a modestly

working capital and potential risks. These

positive net result from continuing operations of EUR

assumptions are updated on an ongoing basis.

1.3 million (2014 on a similar basis: â‚Ź 4 million negative).

The uncommitted accounts receivable financing facility will remain an essential source of working

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The programme launched in 2014 with a view to

capital financing. In addition, the company expects to

generating liquidity through the sale of assets and

receive income from the sale of real estate and is

thus to repay our bank loans was continued in 2015.

anticipating the further introduction of supply chain

The result was that in May 2015 all our bank credit

finance at another major client. A contract for the sale

facilities were repaid and that the company no longer

of one real estate object has already been signed;

uses the existing credit facilities, with the exception

management expects to be able to complete the

of a few bank guarantees. In consultation with the

transaction and receive the proceeds in the first

company, the banks will terminate those existing

trimester of 2016. Talks with interested parties are

facilities on 1 July 2016. Since May 2015, the company

underway on the sale of other real estate. The


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