Annual Report • Dec 14, 2010
Annual Report
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NASDAQ OMX Copenhagen A/S Postbox 1040 1007 København K
Roskilde, the14th of December 2010
The board of directors of RIAS A/S has today discussed and approved the annual report for2009/2010. The report e.g. states that:
In his comments on the financial statements, Henning Hess, Managing Director, says:
"In spite of difficult market conditions, it has been feasible to obtain a visible improvement of the 2009/10 results. This was obtained by way of a focused market performance in combination with a very severe cost management.
At the moment, we experience a very diverse development in the close markets. Export-oriented businesses, in particular, have experienced progress, whereas those businesses primarily driven by domestic demand are struggling.
Moreover, the "constraint of credit" exerts a further reinforcement of the negative factor, to the effect that many businesses are still struggling for survival as they are unable to obtain satisfactory credit facilities. This has also affected RIAS' development in the short term. We do believe, however, that, in spite of the still difficult market conditions, our gearing of the company will contribute to a positive and satisfactory development in the years to come."
The annual report for 2009/2010 is available at www.rias.dk as of the 10 January 2011. Also, a printed version can be obtained from our headquarters.
The Annual General Meeting will be held on Friday 21 January 2011, at 1 p.m. in the company's offices in Roskilde.
RIAS A/S is Denmark's leading supplier of semi-finished plastic products with particular competences within the development and sales of e.g. plates, pipes, rods, acrylic sheets and aluminium. The primary application areas of the products are within the industrial, building and advertising sectors. Other than sale of semi-finished products, RIAS A/S also provides technical consultancy on the application of plastic and the processing of semi-manufactured products. RIAS A/S is located in Roskilde and Assentoft, Denmark and is a member of the ThyssenKrupp Plastics International GmbH group. You can learn more at: www.rias.dk
On this date, the board of directors and the management board have discussed and approved the annual report of RIAS A/S for 2009/2010.
The annual report has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and with additional Danish disclosure requirements for annual reports of listed companies.
In our opinion, the consolidated annual accounts and the Parent's financial statements give a true and fair view of the Group's and the Parent's assets, liabilities and financial position as of the 30th of September 2010 and of the results of the Group's as well as the Parent's operations and cash flows for the period from the 1st of October 2009 to the 30th of September 2010.
We believe that the management's review gives a true and fair presentation of the development in the Group's and the Parent's activities and finances, of the results for the year, of the financial position of the company and of the financial position in general with respect to the companies included in the consolidated accounts as well as a description of the most significant risks and uncertainties to which the Group and the Parent is exposed.
We present the annual report for approval at the Annual General Meeting.
Roskilde, the 14th of December 2010
management board of directors
Henning Hess Managing Director
Jürgen Westphal Chairman
Hans Christoffersen
Vice-Chairman
Klaus W. Roth
Dieter Wetzel
Lars Vollmers
Peter Ø. Hansen
| GROUP | PARENT COMPANY | ||||||
|---|---|---|---|---|---|---|---|
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | 2007/08 | 2006/07 | 2005/06 | |
| Profit and loss account (DKK million.) | |||||||
| Net sales | 223,5 | 223,2 | 175,2 | 176,9 | 257,5 | 285,1 | 273,2 |
| Cost of sales | 154,6 | 156,6 | 121,2 | 125,0 | 178,9 | 207,0 | 195,2 |
| Gross profit | 68,9 | 66,6 | 54,0 | 51,9 | 78,6 | 78,1 | 78,0 |
| Capacity costs | 57,7 | 58,1 | 47,3 | 46,9 | 61,8 | 59,9 | 58,5 |
| Depreciation | 5,3 | 5,2 | 4,3 | 4,3 | 3,8 | 3,6 | 4,1 |
| Profit before net financials | 5,9 | 3,3 | 2,4 | 0,7 | 13,0 | 14,6 | 15,4 |
| Income in subsidiary | 0,0 | 0,0 | 1,9 | 3,4 | 0,0 | 0,0 | 0,0 |
| Financial income, net | -0,4 | -0,5 | -0,2 | -0,5 | 0,0 | 0,7 | 0,7 |
| Profit before tax | 5,5 | 2,8 | 4,1 | 3,6 | 13,0 | 15,3 | 16,1 |
| Tax on profit for the year | 1,5 | 0,6 | 0,6 | -0,1 | 3,3 | 3,2 | 4,6 |
| Profit for the year | 4,0 | 2,2 | 3,5 | 3,7 | 9,7 | 12,1 | 11,5 |
| Balance sheet at year-end (DKK million) | |||||||
| Fixed assets | 110,5 | 114,0 | 116,6 | 119,3 | 118,2 | 67,7 | 62,5 |
| Current assets | 93,1 | 83,9 | 69,8 | 64,8 | 77,4 | 104,1 | 102,0 |
| Assets | 203,6 | 197,9 | 186,4 | 184,1 | 195,6 | 171,8 | 164,5 |
| Shareholders' equity | 148,6 | 145,8 | 145,9 | 143,6 | 142,2 | 134,8 | 125,0 |
| Deferred tax | 10,1 | 10,4 | 9,7 | 9,9 | 9,8 | 8,6 | 7,8 |
| Current liabilities | 44,9 | 41,7 | 30,8 | 30,6 | 43,6 | 28,4 | 31,7 |
| Liabilities and shareholders' equity | 203,6 | 197,9 | 186,4 | 184,1 | 195,6 | 171,8 | 164,5 |
| Cash flows (DKK million) | |||||||
| Cash flows from operating activities | 4,3 | 24,7 | 5,1 | 18,3 | 10,4 | 11,3 | 6,4 |
| Cash flows from investing activities | -2,2 | -8,3 | 0,1 | -1,8 | -54,4 | -8,7 | -20,6 |
| For investment in tangible assets | -2,6 | -7,9 | -2,0 | -5,4 | -5,2 | -8,9 | -20,0 |
| Cash flows from financing activities | -0,5 | -16,2 | -3,2 | -15,8 | 21,3 | -2,3 | -2,3 |
| Total cash flows | 1,6 | 0,2 | 2,0 | 0,7 | -22,7 | 0,3 | -16,5 |
| Average number of full-time employees | 91 | 100 | 76 | 84 | 99 | 92 | 91 |
The information above includes data from the parent company up to and including 06/07. Data for 07/08 is for the group
| PARENT COMPANY | |||||||
|---|---|---|---|---|---|---|---|
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | 2007/08 | 2006/07 | 2005/06 | |
| Financial ratios | |||||||
| Gross profit margin | 31% | 30% | 31% | 29% | 31% | 27% | 29% |
| Profit margin | 3% | 1% | 1% | 0% | 5% | 5% | 6% |
| Return on investment | 3% | 2% | 2% | 1% | 9% | 10% | 12% |
| Earnings per DKK 100 share | 17 | 10 | 15 | 16 | 42 | 53 | 50 |
| Dividend per DKK 100 share | 5 | 5 | 5 | 5 | 10 | 10 | 10 |
| Book value per DKK 100 share | 644 | 632 | 633 | 623 | 617 | 585 | 542 |
| Return on equity before tax | 4% | 2% | 3% | 3% | 9% | 12% | 13% |
| Return on equity after tax | 3% | 2% | 2% | 3% | 7% | 9% | 10% |
| Equity ratio | 73% | 74% | 78% | 78% | 73% | 78% | 76% |
| Quoted price at end of September per DKK 100 share |
400 | 318 | 400 | 318 | 459 | 620 | 690 |
Key figures and financial ratios have been prepared in accordance with IFRS standards. The key financial data has been calculated in accordance with "Recommendations & Financial Ratios 2010" issued by the Danish Society of Financial Analysts and of CFA.
Gross profit margin has been computed as gross profit as a percentage of net sales.
Profit margin has been computed as profit before net financials as a percentage of net sales.
Return on investment has been computed as profit before net financials as a percentage of average operational assets for the year, i.e. of total assets less cash and cash equivalents and financial fixed assets.
Earnings per DKK 100 share has been computed as profit for the year divided by 1/100 of the share capital after deduction of the company's holding of own shares, at year-end.
Dividend per DKK 100 share has been computed as dividend divided by 1/100 of the share capital after deduction of the company's holding of own shares, at year-end.
Book value per DKK 100 share has been computed as shareholders' equity at year-end divided by 1/100 of the share capital after deduction of the company's holding of own shares, at year-end.
Return on equity before tax has been computed as profit before tax as a percentage of average shareholders' equity for the year.
Return on equity after tax has been computed as profit for the year as a percentage of average shareholders' equity for the year.
Equity ratio has been computed as shareholders' equity at year-end as a percentage of total assets at year-end.
Book value per DKK 100 share (DKK) Indre værdi pr. DKK 100 aktie
The information above includes data from the parent company up to and including 06/07. Data for 07/08 is for the group
The Group's main activity consists of the sale, processing and distribution of semi-finished plastic products for all branches of the manufacturing, building and construction industries as well as the public sector.
The Group is the largest supplier within semi-finished plastic products in Denmark.
• In 2009/10, the Group has had a positive cash flow from operation of tDKK 4,314; and, as of the 30th of September 2010, the Group has increased debt to credit institutions by tDKK 580 as compared with the 30th of September 2009.
• The considerable uncertainty regarding the future effects of the financial crisis has resulted in a continued hesitant attitude from the Group's domestic customers; and, as a consequence of this, new investments have been suspended for the present.
For further elaboration, please see the comments in the Financial Review.
The Group is comprised of the Parent Company RIAS A/S and the 100%-owned subsidiary Nordisk Plast A/S.
Unforeseen price fluctuations and discontinuation of trade with large customers may affect the Group adversely with regard to the earnings expectations for the year, but these are normal risks in a trading enterprise.
There is no speculation in financial risks, and thus, the Group's management is solely focused on the management of financial risks that are a direct consequence of the Group's operation and financing.
The Group has no derivative financial instruments.
The Group makes no interest-rate transactions for hedging purposes, as moderate changes in interest-rate levels will have no material effect on earnings.
The Group's credit risks are connected to receivables from sale and services. In so far as it is possible, it is the Group's policy to take out credit insurance for receivables from sale and services. Outstanding amounts from sale and services are continuously monitored, and – to the extent necessary – such amounts will be written down.
The Group is only exposed to exchange-rate developments to a limited extent. Practically all trade takes place in DKK or EUR. As the currency exposure with respect to DKK/EUR is considered quite insignificant, the Group does not hedge its net debt in foreign currency.
The Group only has debts falling due within a period of one year cf. the balance sheet. Payment thereof, DKK 44.9 million, can be fully covered by payments from receivables.
The Group has specific knowledge and competencies within the area of trade with semi-finished plastic products.
The Group attaches importance to attracting, retaining and contributing to the development of well-educated and motivated employees who can participate in safeguarding one of our core values, namely that of providing our customers with the best service.
In 2009/10, the Group's number of full-time employees averaged 91, which are 9 fewer than in 2008/09. As of the 30th of September 2010, the Group employs 88 full-time employees, which are 7 fewer than was the case on the 30th of September 2009.
RIAS continuously strives to limit the environmental impacts. However, the environmental impact directly caused by RIAS's activities is, in itself, insignificant, as RIAS's activities mainly comprise the distribution and sales of semi-finished plastic products, but not the manufacturing thereof.
RIAS is not a party to any environmental lawsuits.
Albeit not involved in particular research-based activities, the Group is constantly developing its business and competence.
The Group does not use incientive programmes.
RIAS A/S merged with Nordisk Plast A/S as of 1st October 2010
The board of directors and the management are continuously making an effort with respect to further development of good corporate governance practices in consideration of the legislation in force and the development in practice.
In 2008, OMX Nordic Exchange Copenhagen A/S published updated recommendations for good corporate governance, where the basic principle of the recommendations is the "comply or explain" principle.
It is the opinion of the board of directors that the main recommendations for good corporate governance are practiced by the Group's management.
In the following areas, the Group has chosen to comply with and explain a different practice
siderations received by the individual members of board and manage ment, as the Group is of the conviction that the remuneration of the board of directors and the management is in accordance with common Danish practice.
• The Group does not prepare quarterly reports, but interim financial statements.
The board of directors and the management have the overall responsibility for the Group's risk management and internal controls in connection with the financial reporting, including compliance with relevant legislation and other regulations related to the financial reporting.
The Group has established risk-management and internal-control systems in order to ensure that the internal and external financial reporting provides a true and fair view without significant misinformation.
The board of directors' and the management's opinions of the recommendations for corporate governance are outlined on www.rias.dk Link: http://www.rias.dk/page496.aspx together with the statutory statement on corporate governance.
RIAS A/S's board of directors also perform the function of audit committee.
The overall purpose of the audit committee is to minimise the risk of any significant misstatements in the accounting information - internally as well as externally. In practice, this duty is performed by analysing the internalcontrol environment, the financial reporting, the auditing, the applied accounting policies and the presentation of the interim financial statements and financial statements in general.
The audit committee is focused on the continued development in the control environment as well as the continuous evaluation of those business procedures and financial and accounting matters that are of significant importance to the accounting information.
In connection with the audit-committee meetings, the external auditor can be called in.
RIAS considers the protection of secure social relations an important element in the operation of a business. On a monthly basis, a follow-up on absence due to sickness is carried out for the purpose of identifying signs of poor job satisfaction; and on the whole RIAS is continually working towards securing the best possible working environment. Likewise, the company has a high awareness as to the health of the employees which, concretely, has led to the company's contribution towards a health-insurance scheme.
RIAS consciously puts in an effort to limit the environmental impact of the application of the company's products. This takes place via the membership of the organisation Wuppi. The objective of Wuppi is that of collecting and disposing of PVC waste in a sustainable manner. Moreover, RIAS is focused on the company's CO2 consumption. A project has been initiated for the purpose of minimising the energy consumption through the implementation of various energy-conserving measures, in the production as in the administration.
RIAS typically enters into long-term supplier relations. Other than financial and quality evaluations, the overall evaluation of the individual supplier will also contain an evaluation as to whether the supplier exercises conventional social responsibility, comprising the elimination of child labour etc.
RIAS has implemented a "whistle blower" hotline facilitating an opportunity for our employees to inform impartial persons of the Thyssen-Krupp Group about any infringement of the corruption or cartel-formation practices, or the suspicion thereof.
The company's share capital of tDKK 23,063 is distributed on tDKK 3,125 A shares and tDKK 19,938 B shares.
The A shares, which are non-negotiable instruments, are attributed 10 votes per DKK 100 share, cf. section 11 of the articles of association. The B shares, which are negotiable instruments, are attributed 1 vote per DKK 100 share, cf. section 11 of the articles of association.
The share is listed on NASDAQ OMX Copenhagen and as of the 30th of September 2010, the share price was 400 which corresponds to a market value of DKK 92.2 million.
There are more than 200 registered shareholders in the company.
The following shareholders have reported owning 5% or more of the total capital:
The board of directors and the management do not own shares in RIAS A/S.
Any amendment of the company's articles of association will require 2/3 of the share capital to be represented at the Annual General Meeting and that any amendment proposals are adopted with 2/3 of the cast votes as well as 2/3 of the share capital represented at the Annual General Meeting.
In accordance with authorisation from the Annual General Meeting, the company can acquire own shares up to 10% of the share capital until the 21st of January 2011. The purchase price of such shares cannot deviate more than 10% from the current stock exchange quotation applicable at all times.
The Annual General Meeting will be held on the 21st of January 2011 at 10.00 a.m. at RIAS A/S, Industrivej 11, Roskilde, Denmark.
The purchase price of such shares cannot deviate more than 10% from the current stock exchange quotation applicable at all times.
• In connection with the Annual General Meeting Klaus Roth and Hans Christoffersen will resign from the board. To replace them, the board of directors recommend that the Annual General Meeting will elect Peter Swinkels and Steen Rygaard Andersen. The board further recommends that the remainder of the elected board members be re-elected at the Annual General Meeting.
RIAS A/S has issued the following company notices:
| 14th of October 2009 | Downward adjustment of the expectations to 2008/09 |
|---|---|
| 27th of October 2009 F | inancial calendar 2009/10 |
RIAS A/S has issued the following company notices:
| 14th of October 2009 | Downward adjustment of the expectations to 2008/09 |
|---|---|
| 27th of October 2009 F | inancial calendar 2009/10 |
| 10th of December 2009 Announcement concerning an adjustment of the level of costs |
|
| 19th of January 2010 | Adjustment of share capital and votes |
| 1st of March 2010 | Announcement in compliance with S. 29 of the |
| Danish Act on Securities Trading | |
| 21st of May 2010 T | he half-yearly report for 2010 |
| 13th of August 2010 | Interim financial statements, 3rd quarter 2009/10 |
| 6th of October 2010 F | inancial calendar 2010/11 |
RIAS A/S expects to issue the following company notices:
| 14th of December 2010 Announcement of the financial statements for 2009/10 | |
|---|---|
| 21st of January 2011 | Interim financial statements, 1st quarter 2010/11 |
| 21st of January 2011 | Annual General Meeting |
| 19th of May 2011 | the half-yearly report for 2010/11 |
| 15th of August 2011 | Interim financial statements, 3rd quarter 2010/11 |
Enquiries regarding investor relations and the share market can be directed at:
Henning Hess, Managing Director Telephone: +45 46 77 00 00 Fax: +45 46 77 01 03 E-mail: [email protected]
The turnover went up by tDKK 254 from tDKK 223,204 in 2008/09 to TDKK 223,458 i 2009/10.
The turnover in the Industry Division went down by tDKK 9,518 from tDKK 157,501 in 2008/09 to tDKK 147,983 in 2009/10, which corresponds to a decline of 6%. Due to the financial crisis, the market has been characterised by considerable caution, which is manifested in the customers' stocks being kept at a minimum and, also, the individual orders are smaller than previously.
The Building & Construction Division experienced an almost identical rise in turnover: by tDKK 9,772 from tDKK 65,703 in 2008/09 to tDKK 75,475 in 2009/10 which corresponds to a rise of 15%. This growth can mainly be ascribed to DIY products.
The gross profit went up by tDKK 2,193 from tDKK 66,631 in 2008/09 to tDKK 68,824 in 2009/10 which corresponds to a rise of 3.3%.
The gross profit margin went up by 1 percentage point from 29.8% in 2008/09 to 30.8% in 2009/10. The company has thus succeeded in increasing the gross profit in a highly competitive market.
Costs went down by tDKK 384 from tDKK 63,376 in 2008/09 to tDKK 62,992 in 2009/10, which corresponds to a decline of 0.6%, attributable to organizational adjustment.
Financial incomes went down by tDKK 256 from tDKK 642 in 2008/09 to tDKK 386 in 2009/10.
Financial expenses went down by tDKK 303 from tDKK 1,098 in 2008/09 to tDKK 795 in 2009/10.
Net financial items developed from an expense of tDKK 456 in 2008/09 to an expense of tDKK 409 in 2009/10.
The effective tax rate for 2009/10 is 27.1% against 21.4% in 2008/09. The change can primarily be attributed to adjustment of tax for previous years.
The profit for 2009/10 amounts to tDKK 3,954 as compared with tDKK 2,199 in 2008/09.
Intangible assets have declined from tDKK 55,884 as of the 30th of September 2009 to tDKK 55,494 as of the 30th of September 2010.
The primary intangible asset is goodwill of tDKK 53,085, which can be attributed to the acquisition of the operations of Rodena A/S and Nordisk Plast A/S. The goodwill values have undergone an impairment test, which is described in more detail in note 9 of the consolidated accounts.
As of the 30th of September 2010, computer software amounts to tDKK 1,571. As of the 1st of March 2009, Nordisk Plast A/S switched to the same computer system for trade and finance as the one used by RIAS A/S.
Tangible fixed assets have declined from tDKK 58,090 as of the 30th of September 2009 to tDKK 55,078 as of the 30th of September 2010. The Group has not made any new investments of significance during the year under review.
Stocks went up by tDKK 2,878 from tDKK 28,200 as of the 30th of September 2009 to tDKK 31,078 as of the 30th of September 2010 which corresponds to a rise of 10%. The Group is focused on continuously adjusting the stock situation in order that it matches the current market; and the stock adjustment is partly a reflection of a general rise in the prices for raw materials and partly an expression of buffer stocks made necessary as a consequence of a scarcity of raw materials.
Receivables went up by tDKK 4,491 from tDKK 50,252 as of the 30th of September 2009 to tDKK 54,743 as of the 30th of September 2010, which corresponds to a rise of 9%. This rise can primarily be attributed to a change in customer mix.
Liabilities went up by tDKK 2,982 from tDKK 52,058 as of the 30th of September 2009 to tDKK 55,040 as of the 30th of September 2010, which corresponds to a rise of 6%. The rise can, among other things, be attributed to an increase in trade creditors and credit-institution borrowings.
Debt to credit institutions went up from tDKK 14,501 as of the 30th of September 2009 to tDKK 15,081 as of the 30th of September 2010.
Cash flows from operating activities went down by tDKK 20,395 from tDKK 24,709 in 2008/2009 to tDKK 4,314 in 2009/2010 which can primarily be attributed to a change in the working capital from the beginning to the end of the fiscal year. This change is related to stocks, receivables and trade creditors and other debt.
Cash flows for investment activity went down by tDKK 6,120 from tDKK 8,306 in 2008/09 to tDKK 2,186 in 2009/2010
All in all, the Group's cash funds and the draw on credit facilities have gone down from a net amount of tDKK -9,531 as of the 30th of September 2009 to a net amount of tDKK -8,558 as of the 30th of September 2010.
Statement of total gains and losses 1 October - 30 September DKK '000
| Note | GROUP | PARENT COMPANY | |||
|---|---|---|---|---|---|
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | ||
| 2 | Net sales | 223,458 | 223,204 | 175,182 | 176,947 |
| Cost of sales | 154,634 | 156,573 | 121,212 | 124,978 | |
| Gross profit | 68,824 | 66,631 | 53,970 | 51,969 | |
| 3-4 | Distribution expenses | 46,305 | 46,818 | 37,041 | 36,974 |
| 3-4 | Administrative expenses | 16,687 | 16,558 | 14,507 | 14,257 |
| Profit before net financials | 5,832 | 3,255 | 2,422 | 738 | |
| Dividend from subsidiaries | 0 | 0 | 1,855 | 3,437 | |
| 5 | Financial income | 386 | 642 | 341 | 381 |
| 6 | Financial expenses | 795 | 1,098 | 509 | 928 |
| Profit before tax | 5,423 | 2,799 | 4,109 | 3,628 | |
| 7 | Corporation tax | 1,469 | 600 | 627 | -59 |
| Profit for the year | 3,954 | 2,199 | 3,482 | 3,687 | |
| Other comprehensive income | 0 | 0 | 0 | 0 | |
| Comprehensive income of the year | 3,954 | 2,199 | 3,482 | 3,687 | |
| Proposed distribution of profit | |||||
| Proposed dividend | 1,153 | 1,153 | |||
| Transferred to retained earnings | 2,329 | 2,534 | |||
| 3,482 | 3,687 | ||||
| 8 | Earnings per share | ||||
| Earnings per share (ESP) of DKK 100 share | 17,14 | 9,53 | |||
| Earnings per share diluted (ESP-P) of DKK 100 | 17,14 | 9,53 |
| Note | GROUP | PARENT COMPANY | |||
|---|---|---|---|---|---|
| Fixed assets | 2010 | 2009 | 2010 | 2009 | |
| Long-term assets | |||||
| 9 | Intangible assets | ||||
| Goodwill | 53,085 | 54,085 | 15,307 | 15,307 | |
| Customer relations | 838 | 0 | 0 | 0 | |
| Computer software | 1,571 | 1,799 | 1,112 | 1,220 | |
| 55,494 | 55,884 | 16,419 | 16,527 | ||
| 10 | Tangible assets | ||||
| Land and buildings | 38,019 | 38,766 | 38,019 | 38,766 | |
| Plant and machinery | 7,595 | 8,873 | 6,899 | 7,936 | |
| Other fixtures and fittings, machinery and equipment | 9,084 | 10,451 | 6,067 | 7,261 | |
| Payment in advance and tangible assets in progress |
380 | 0 | 380 | 0 | |
| 55,078 | 58,090 | 51,365 | 53,963 | ||
| 11 | Long-term assets | ||||
| Equity holdings in subsidiary | 0 | 0 | 48,787 | 48,787 | |
| 0 | 0 | 48,787 | 48,787 | ||
| Long-term assets | 110,572 | 113,974 | 116,571 | 119,277 | |
| Current assets | |||||
| 12 | Stock | 31,078 | 28,200 | 21,165 | 19,591 |
| 13 | Debtors | 54,743 | 50,252 | 43,583 | 42,419 |
| Prepayments | 728 | 465 | 656 | 345 | |
| Cash and cash equivalents | 6,523 | 4,970 | 4,431 | 2,462 | |
| Current assets | 93,072 | 83,887 | 69,835 | 64,817 | |
| Assets | 203,644 | 197,861 | 186,406 | 184,094 |
19-22 Other notes
| Note | GROUP | PARENT COMPANY | |||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | ||
| Liabilities | |||||
| 14 | Shareholders' equity | ||||
| Share capital | 23,063 | 23,063 | 23,063 | 23,063 | |
| Revaluation reserve | 1,898 | 1,898 | 1,898 | 1,898 | |
| Retained earnings | 122,490 | 119,689 | 119,788 | 117,459 | |
| Proposed dividends | 1,153 | 1,153 | 1,153 | 1,153 | |
| Shareholders' equity | 148,604 | 145,803 | 145,902 | 143,573 | |
| Liabilities | |||||
| 15 | Long-term liabilities | ||||
| Deferred tax | 10,116 | 10,381 | 9,704 | 9,895 | |
| Total long-term liabilities | 10,116 | 10,381 | 9,704 | 9,895 | |
| Current liabilities | |||||
| 16 | Credit banks | 15,081 | 14,501 | 8,001 | 10,048 |
| 17 | Debt to trade creditors and other liabilities | 27,651 | 26,704 | 21,994 | 20,578 |
| Corporation tax | 2,192 | 472 | 805 | 0 | |
| Current liabilities | 44,924 | 41,677 | 30,800 | 30,626 | |
| Liabilities | 55,040 | 52,058 | 40,504 | 40,521 | |
| Liabilities and shareholders' equity | 203,644 | 197,861 | 186,406 | 184,094 | |
| 18 | Contingencies and other financial obligations |
| DKK '000 | |||||
|---|---|---|---|---|---|
| Share Capital |
Revaluation reserve |
Retained earnings |
Proposed dividends |
Total | |
| GROUP | |||||
| 2008/2009 | |||||
| Balance 1 October 2008 Changes in equity in 2008/09: |
23,063 | 1,898 | 118,643 | 2,306 | 145,910 |
| Profit for the year | 2,199 | 2,199 | |||
| Comprehensive income of the year | 2,199 | 2,199 | |||
| Dividend distributed | -2,306 | -2,306 | |||
| Proposed dividends | -1,153 | 1,153 | 0 | ||
| Total changes in equity in 2008/09 i alt | 0 | 0 | 1,046 | -1,153 | -107 |
| Balance 30 September 2009 | 23,063 | 1,898 | 119,689 | 1,153 | 145,803 |
| 2009/2010 | |||||
| Balance 1 October 2009 Changes in equity in 2009/10: |
23,063 | 1,898 | 119,689 | 1,153 | 145,803 |
| Profit for the year | 3,954 | 3,954 | |||
| Comprehensive income of the year | 3,954 | 3,954 | |||
| Dividend distributed | -1,153 | -1,153 | |||
| Proposed dividends | -1,153 | 1,153 | 0 | ||
| Total changes in equity in 2009/10 i alt | 0 | 0 | 2,801 | 0 | 2,801 |
| Balance 30 September 2010 | 23,063 | 1,898 | 122,490 | 1,153 | 148,604 |
| PARENT COMPANY | |||||
| 2008/2009 | |||||
| Balance 1 October 2008 Changes in equity in 2008/09 |
23,063 | 1,898 | 114,925 | 2,306 | 142,192 |
| Profit for the year | 3,687 | 3,687 | |||
| Comprehensive income of the year | 3,687 | 3,687 | |||
| Dividend distributed | -2,306 | -2,306 | |||
| Proposed dividends | -1,153 | 1,153 | 0 | ||
| Total changes in equity in 2008/09 i alt | 0 | 0 | 2,534 | -1,153 | 1,381 |
| Balance 30 September 2009 | 23,063 | 1,898 | 117,459 | 1,153 | 143,573 |
| 2009/2010 | |||||
| Balance 1 October 2009 | 23,063 | 1,898 | 117,459 | 1,153 | 143,573 |
| Changes in equity in 2009/10 | |||||
| Profit for the year | 3,482 | 3,482 | |||
| Comprehensive income of the year | 3,482 | 3,482 | |||
| Dividend distributed | -1,153 | -1,153 | |||
| Proposed dividends | -1,153 | 1,153 | 0 | ||
| Total changes in equity in 2009/10 i alt | 0 | 0 | 2,329 | 0 | 2,329 |
| Balance 30 September 2010 | 23,063 | 1,898 | 119,788 | 1,153 | 145,902 |
| GROUP | PARENT COMPANY | ||||
|---|---|---|---|---|---|
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | ||
| The profit for the year | 3,954 | 2,199 | 3,482 | 3,687 | |
| Adjusted for non-cash operating items etc.: | |||||
| Financial income | -386 | -642 | -341 | -381 | |
| Financial costs | 795 | 1,098 | 509 | 928 | |
| Income in subsidiaries | 0 | 0 | -1,855 | -3,437 | |
| Tax on profit or loss for the year | 1,469 | 600 | 627 | -59 | |
| Cash flows from primary operating activities | 5,832 | 3,255 | 2,422 | 738 | |
| Financial income, paid | 386 | 642 | 341 | 381 | |
| Financial expenses, paid | -795 | -1,098 | -509 | -928 | |
| Depreciation | 5,448 | 5,179 | 4,272 | 4,302 | |
| Gain on sale of tangible and financial assets | |||||
| 141 | -206 | 217 | -135 | ||
| Change in stocks | -2,878 | 7,638 | -1,574 | 5,042 | |
| Change in debtors | -3,546 | 11,904 | -904 | 9,527 | |
| Change in trade creditors and other debt | 309 | 1,185 | 1,415 | 1,588 | |
| Corporation tax paid | -583 | -3,790 | -583 | -2,165 | |
| Cash flow from operating activities | 4,314 | 24,709 | 5,097 | 18,350 | |
| Purchase of intangible assets | -340 | -878 | -329 | -223 | |
| Purchase of tangible assets | -2,687 | -7,901 | -2,020 | -5,387 | |
| Sale of tangible assets | 841 | 473 | 566 | 342 | |
| Purchase of financial assets | 0 | 0 | 0 | 0 | |
| Received dividend | 0 | 0 | 1,855 | 3,437 | |
| Cash flow from investing activities | -2,186 | -8,306 | 72 | -1,831 | |
| Changes in debt to credit banks | 578 | -13,859 | -2,047 | -13,549 | |
| Dividend paid | -1,153 | -2,306 | -1,153 | -2,306 | |
| Cash flow from financing activities | -575 | -16,165 | -3,200 | -15,855 | |
| Cash flow for the year | 1,553 | 238 | 1,969 | 664 | |
| Cash and cash equivalents 1 October | 4,970 | 4,732 | 2,462 | 1,798 | |
| Cash and cash equivalents 30 September | 6,523 | 4,970 | 4,431 | 2,462 |
RIAS A/S is a limited company based in Denmark. The annual report for the period from the 1st of October 2009 to the 30th of September 2010 includes consolidated accounts for RIAS A/S and its subsidiaries (the Group) as well as separate financial statements for the Parent Company.
The annual report of RIAS A/S for 2009/10 has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and in accordance with additional Danish disclosure requirements for the presentation of accounts for listed companies, cf. OMX Nordic Exchange Copenhagen A/S' disclosure requirements for the presentation of annual reports of listed companies as well as the IFRS order issued in compliance with the Danish Financial Statements Act.
The annual report also complies with the International Financial Reporting Standards issued by IASB.
As of the 14th of December 2010, the board and management have discussed and approved the annual report for 2009/10. The annual report has been presented for RIAS A/S's shareholders for approval at the Annual General Meeting to be held on the 21st of January 2011.
The annual report is reported in DKK rounded off to the closest DKK 1,000
The annual report has been compiled in accordance with the historical cost price principle.
The accounting policy described below has been applied consistently throughout the financial year and for the comparative figures.
As of the 1st of January 2010 RIAS A/S has implemented:
These changes have neither affected recognition nor measurement, and thus, the accounting policy has not been changed as compared with the preceding year.
The changes do not affect the earnings per share.
The consolidated accounts include the Parent Company RIAS A/S as well as the subsidiary Nordisk Plast A/S, where RIAS A/S has control of the company's financial and operational policies with a view to achieving return or other advantages from its activities. Control is achieved by directly or indirectly owning or controlling more than 50% of the voting rights or otherwise controlling the company in question.
In the assessment as to whether RIAS A/S has control or significant influence, the potential voting rights that can be used on the reporting date are taken into account.
In accordance with the Group's accounting policy, the consolidated accounts integrate the financial statements of the Parent Company and the individual subsidiaries with elimination of Group-internal income and costs, shareholdings, internal profits and outstanding amounts, as well as gains through transactions between the consolidated companies - realised as unrealised. Unrealised losses are eliminated in the same way as unrealised gains, to the extent that there has been no impairment.
Participating interest in a subsidiary is offset against the proportional share of the subsidiary's fair value of identifiable net assets and included contingent liabilities at the time of acquisition.
In the consolidated accounts, the entries of the subsidiaries are booked at 100%.
Neither the financial year nor the index-base year comprises any mergers.
Transactions in foreign currencies are translated at transaction-date rates or at approximate rates. Exchange differences that arise between the rate on the transaction date and the rate at the date of payment are recognised in the income statement under financial income or expenses.
Receivables, debt and other monetary items in foreign currencies are translated at balance-sheet-date exchange rates. Any differences between the balance-sheet-date rates and the rates at the time when the receivable or debt arose or the rate in the latest annual report are recognised in the income statement under financial income and expenses.
Fixed assets purchased in foreign currencies are translated at transaction-date rates.
Net turnover from the sale of goods for resale and finished goods are recognised in the income statement provided that delivery and risk transfer to the buyer have taken place before the end of the financial year, and provided that the income can be measured reliably and that receipt thereof is expected.
The net turnover is measured at the fair market value of the agreed consideration exclusive of VAT and other charges collected on behalf of a third party. All types of discounts given have been recognised in the turnover statements.
Cost of goods sold comprises the direct costs for the purchasing of goods for resale as well as the wage costs for industrial processing and craftsmanship involved in connection with the turnover of the year.
Distribution costs comprise costs incurred in connection with the distribution of products sold during the year, completed sales campaigns, etc. This also includes costs for sales personnel, advertising and exhibition costs as well as write-downs. Also, write-downs of receivables from sales are included.
Administrative costs comprise costs incurred during the year for management and administration, including costs for the administrative staff, office costs and depreciation.
Dividend from participating interest in subsidiaries is recognised as income in the income statement of the Parent Company for the financial year in which the dividend is announced.
Financial income and expenses include interest, exchange gains and losses, write-downs related to securities, debt and transactions in foreign currencies as well as additional charges and reimbursements under the Danish Tax Prepayment Scheme etc.
RIAS A/S is taxed jointly with the other Danish companies in the ThyssenKrupp Group. The current Danish corporation tax is allocated between the jointly taxed companies in proportion to their taxable profits. The jointly taxed companies are part of the tax prepayment scheme.
The tax for the year, which consists of the current tax on profit for the year and change in deferred tax, is recognised in the income statement with the part that can be attributed to the net profit for the year, and directly in the equity with the part that can be attributed to direct entries to the equity.
At the first recognition, goodwill is recognised at cost price in the balance sheet. Subsequently, goodwill is measured at cost price with deduction of accumulated depreciation. No amortisation of goodwill is carried out.
The book value of goodwill is allocated to the Group's cash-generating units at the time of the acquisition. Cash-generating units are determined on the basis of the management structure and the internal financial management.
Customer relations acquisitioned in connection with mergers have been measured at cost price less accumulated amortisations and write-downs depreciated by the straight-line method over the economic life which has been estimated to 16 years.
Computer software has been been measured at cost price less accumulated amortisations depreciated by the straight-line method over the economic life which has been estimated to 5 years.
Land and buildings, technical plants and machinery, other plants, operating machinery and equipment as well as prepayments for and tangible assets being manufactured are measured at cost less accumulated depreciation.
The cost price covers purchase price and costs directly attributable to the acquisition until the date on which the asset is ready for use. Borrowing costs are not included in the cost price.
Subsequent costs, such as costs related to the replacement of components of a tangible asset, are recognised in the book value of the asset in question when it is likely that the incurrence will result in future financial advantages for the Group. The replaced components stop being recognised in the balance sheet, and the book value is transferred to the income statement. All costs for ordinary repair and maintenance are included in the income statement at the incurrence.
Tangible assets are depreciated on a straight-line basis over the expected useful lives of the assets, which are as follows:
| Warehouse buildings constructed in 2006 | 30 years |
|---|---|
| Other office and warehouse buildings | 20 years |
| Technical plants and machinery | 10 years |
| Other plants, operating machinery and equipment | 5-10 years |
There is no depreciation on land.
The basis of depreciation is calculated in consideration of the asset's scrap value reduced by any depreciation. The scrap value, which will be determined at the date of acquisition, will be subject to annual reappraisal. In the event that the scrap value exceeds the book value of the asset, depreciation will cease.
In case of changes during the depreciation period or in the scrap value, the effect of the depreciation will be recognised as a forward-looking change of the accounting estimate.
Depreciation is recognised in the income statement under distribution and administration costs, respectively.
Investments in subsidiaries are measured in the financial statements of the Parent Company at cost price. In the event of an indication of impairment, an impairment test will be carried out as described in the accounting policy of the consolidated annual accounts. Should the book value exceed the recoverable amount, a write-down to the lower value will be carried out.
Goodwill is tested for impairment on an annual basis, the first time before the end of the year of acquisition.
The book value of goodwill is tested for impairment in the cash-generating unit to which the goodwill is allocated and written down to the recoverable amount via the income statement if the book value is higher. The recoverable amount is calculated as the present value of the future net cash flows from the company or activity (cash-generating unit) to which the goodwill is related.
The book value of other long-term assets will be subjected to annual assessments for the purpose of determining any indication of impairment. In the event of such an indication, the recoverable value of the asset will be estimated. The recoverable value represents the highest fair market value less deduction of anticipated disposal costs or net present value. The net present value is calculated as the current value of anticipated future cash flows from the asset or from the cash-flow generating unit of which the asset is part.
An impairment loss will be recognised when the book value of an asset or a cash-flow generating unit will exceed the asset's or the cash-flow generating unit's recoverable value. An impairment loss will be recognised in the income statement under distribution and administrative costs, respectively. Write-down of goodwill will be recognised on a separate line of the income statement.
Stocks are measured at cost price according to the FIFO method or the net realisable value if this is lower.
The cost price of goods for resale includes the acquisition cost with the addition of delivery costs.
The net realisable value for stocks is calculated as selling price less costs of completion and costs incurred to realise the sale, and it is determined in consideration of marketability, obsolescence and the development in anticipated selling price.
Receivables, comprising the items receivables from sales and services, receivables at Parent Company and other receivables, are measured at amortised cost price, which usually corresponds to the nominal value. Write-downs to net realisable value are made to counter anticipated losses at net selling price, which are calculated on the basis of an individual assessment of each receivable.
Prepayments recognised under assets include incurred expenses related to the following financial year. The item is measured at the amount paid.
Suggested dividend is recognised as a liability at the time of adoption at the Annual General Meeting (the date of declaration). Dividend expected to be paid for the year is recognised as a special item under equity.
Revaluation reserve comprises value adjustment in connection with a change in the amortisation period for buildings.
Current tax liabilities and receivable current tax are recognised on the balance sheet as calculated tax of the taxable profit for the year, adjusted for tax from taxable profits for preceding years as well as prepaid tax.
Deferred tax is measured in accordance with the balance sheet liability method for all temporary differences between book values and value for tax purposes of assets and liabilities. However, there will be no recognition of deferred tax of provisional differences concerning goodwill and other items not eligible for tax depreciation – except for takeovers – occurring at the at the date of acquisition without having any effect on neither profits nor taxable income. Both deferred tax liabilities and deferred tax assets are recognised.
Deferred tax assets are measured at the value at which the asset is anticipated to be realised. The deferred tax is measured on the basis of the current tax rate. Any changes in deferred tax due to changes in tax rates are recognised in the income statement.
Provisions are recognised where the Group, as a result of circumstances taking place prior to or on the balance-sheet date, has a legal or actual obligation, and where there is a probability that economic benefits will be surrendered in order to meet this obligation.
Provisions are measured at the discretion of the management as an estimate of the amount with which the obligation is anticipated to be redeemable.
Credit institution borrowings etc. are recognised at the date of the raising of loans at the proceeds receivable after deduction of transaction costs. In subsequent periods the financial liabilities will be recognized at amortised cost by application of "the effective-yield method" in order that the difference between the proceeds and the nominal value be recognized in the income statement under finance costs throughout the term of the loan.
The cash flow statement shows the Group's and the Parent Company's cash flows of the year distributed on the operating, investment and financing activities of the year, changes of the year in cash funds as well as cash funds at the beginning and end of the year.
Cash flows from operating activities are calculated by application of the indirect method as profit before tax adjusted for non-cash operating items, changes in working capital, received and paid interest, as well as corporation tax paid.
Cash flows from investment activity comprise payments made in connection with the purchase and sale of intangible and tangible fixed assets and fixed-asset investments together with dividend received.
Cash flows from financing activity comprise the taking out of loans, interest on interest-bearing debt and payment of dividend to shareholders.
Cash and cash equivalents comprise cash, fixed-term deposits and other bank deposits with credit institutions of a high financial standing.
The Group's overall business activities consist of the sale and distribution of semi-manufactured plastic products for the manufacturing, building and construction industries as well as the public sector. In this business area, the company mainly operates within the two general segments constituted by the manufacturing and building industries.
Earnings per share (EPS) and diluted earnings per share (EPS-D) are calculated in compliance with IAS 33.
Other financial ratios are calculated in compliance with "Recommendations & Financial Ratios 2010" ("Anbefalinger & Nøgletal 2010") issued by the Danish Society of Financial Analysts.
Accounting judgments and estimates
The calculation of the book value of certain assets and liabilities presupposes assessments, estimates and assumptions about future events.
Such estimates and assumptions are based on historical experience and other factors that the management has deemed justifiable according to the circumstances, but which are naturally uncertain and unpredictable. These assumptions may be incomplete or inaccurate, and unexpected events or circumstances may occur. Furthermore, the Group is subject to risks and uncertainties that can lead to actual outcomes that will differ from such estimates.
It may be necessary to adjust previous estimates as a consequence of changes in the circumstances on which the previous estimates were based or due to new knowledge or subsequent developments.
For 2009 and 2010, developments in the world economy and in the financial markets have resulted in increased uncertainty with respect to a number of central preconditions and assumptions as to the future – e.g. credit risks, interest levels, sales volume, volatility, etc. as compared with previous years.
Estimates that are material for the financial reporting are for example made through calculation of depreciations and write-downs with respect to e.g. goodwill and debtors, the selling price of stocks, amortisations, accrual and provisions.
At the annual impairment test of goodwill, an estimate is made as to how those parts of the company (cash-generating units) to which goodwill is related will be able to generate satisfactory positive net cash flows in the future to support the goodwill value and other net assets in such parts of the company.
Due to the nature of the business, anticipated cash flows must be determined for many years into the future which, obviously, leads to uncertainty.
As an element in the application of the company's accounting policy, the management will make assessments, beyond estimated assessments, that may significantly influence the amounts recognised in the annual report.
| GROUP | PARENT COMPANY | ||||
|---|---|---|---|---|---|
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | ||
| Note 2. Net sales | |||||
| Net sales, Industry | 147,983 | 157,501 | 99,707 | 111,244 | |
| Net sales, Building and Construction | 75,475 | 65,703 | 75,475 | 65,703 | |
| 223,458 | 223,204 | 175,182 | 176,947 |
Sales outside Denmark constitute 8% of the Group's net turnover All long-term assets are located in Denmark.
The Group's products are by far marketed to Danish customers. The turnover spans a considerable number of different products and customers. No single customer represents more than 10% of the total turnover.
| Note 3. Depreciation | ||||
|---|---|---|---|---|
| Distribution costs include depreciation as follows: | ||||
| Amortisation of intangible assets | 673 | 560 | 393 | 492 |
| Amortisation of tangible assets | 4,246 | 4,101 | 3,452 | 3,380 |
| 4,919 | 4,661 | 3,845 | 3,872 | |
| Administrative expenses include depreciation as follows: | ||||
| Afskrivninger fra immaterielle assets | 57 | 63 | 44 | 55 |
| Afskrivninger fra materielle assets | 472 | 455 | 384 | 375 |
| 529 | 518 | 427 | 430 | |
| 5,448 | 5,179 | 4,272 | 4,302 | |
| Note 4. Employee matters | ||||
| Emoluments for the Members of the Board of Directors | 90 | 88 | 90 | 88 |
| Remuneration for the Management | 1,838 | 1,860 | 1,838 | 1,860 |
| Wages and salaries | 37,491 | 39,746 | 31,557 | 33,375 |
| Pensions | 2,935 | 2,890 | 2,297 | 2,355 |
| Other social security contributions | 828 | 908 | 719 | 808 |
| 43,182 | 45,492 | 36,501 | 38,486 | |
| Average number of full time employees | 91 | 100 | 76 | 84 |
| Number of full time employees 30 September | 88 | 95 | 73 | 80 |
| Note 5. Financial income | ||||
| Interest, cash at bank and in hand etc. | 386 | 504 | 341 | 381 |
| Foreign exchange gains | 0 | 138 | 0 | 0 |
| Note 6. Financial cost | ||||
| Interest credit institutions etc. | 551 | 1,009 | 374 | 839 |
| Loss on foreign currency translation | 244 | 89 | 135 | 89 |
| 795 | 1,098 | 509 | 928 | |
| Note 7. Corporation tax | ||||
| Tax paid for the year | 1,720 | 472 | 805 | 0 |
| Deferred tax for the year | -263 | 325 | -190 | 138 |
| Prior-year tax adjustment | 12 | -197 | 12 | -197 |
| 1,469 | 600 | 627 | -59 | |
| Calculated 25% of the net profit or loss for the year before tax | 1,397 | 700 | 564 | 48 |
| Tax effect on non-deductible expenses | 60 | 97 | 51 | 90 |
| Adjustment of deferred tax for previous years | 12 | -197 | 12 | -197 |
| 1,469 | 600 | 627 | -59 |
DKK '000
| GROUP | ||||
|---|---|---|---|---|
| 2009/10 | 2008/09 | |||
| Note 8. Earnings per share | ||||
| Earnings for the year, DKK '000 | 3,954 | 2,199 | ||
| Average number of shares, DKK 100 | 230,630 | 230,630 | ||
| Average number of own shares, DKK 100 | 0 | 0 | ||
| 230,630 | 230,630 | |||
| Earnings per share (EPS) of DKK 100 | 17,14 | 9,53 | ||
| Earnings per share diluted (ESP-D) of DKK 100 | 17,14 | 9,53 | ||
| Note 9. Intangible assets | Goodwill | Customer relations |
Edb-software | Total |
| GROUP | ||||
| Cost price 1 October 2008 | 54,085 | 0 | 13,837 | 67,922 |
| Additions during the year | 0 | 0 | 878 | 878 |
| Disposals during the year | 0 | 0 | 0 | 0 |
| Cost price 30 September 2009 | 54,085 | 0 | 14,715 | 68,800 |
| Depreciation 1 October 2008 | 0 | 0 | -12,293 | -12,293 |
| Depreciation during the year | 0 | 0 | -623 | -623 |
| Reversed depreciations on the disposals of the year | 0 | 0 | 0 | 0 |
| Depreciation 30 September 2009 | 0 | 0 | -12,916 | -12,916 |
| Book value 30 September 2009 | 54,085 | 0 | 1,799 | 55,884 |
| Cost price 1 October 2009 | 54,085 | 0 | 14,715 | 68,800 |
| Additions during the year | 0 | 0 | 340 | 340 |
| Disposals during the year | 0 | 0 | 0 | |
| Transfers | -1,000 | 1,000 | 0 | 0 |
| Cost price 30 September 2010 | 53,085 | 1,000 | 15,055 | 69,140 |
| Depreciation 1 October 2009 | 0 | -12,916 | -12,916 | |
| Depreciation during the year | 0 | -162 | -568 | -730 |
| Reversed depreciations on the disposals of the year | 0 | 0 | 0 | |
| Depreciation 30 September 2010 | 0 | -162 | -13,484 | -13,646 |
| Book value 30 September 2010 | 53,085 | 838 | 1,571 | 55,494 |
| PARENT COMPANY | ||||
| Cost price 1 October 2008 | 15,307 | 0 | 13,837 | 29,144 |
| Additions during the year | 0 | 223 | 223 | |
| Disposals during the year | 0 | 0 | 0 | 0 |
| Cost price 30. September 2009 | 15,307 | 0 | 14,060 | 29,367 |
| Depreciation 1 October 2008 | 0 | 0 | -12,293 | -12,293 |
| Depreciation during the year | 0 | -547 | -547 | |
| Reversed depreciations on the disposals of the year | 0 | 0 | 0 | 0 |
| Depreciation 30 September 2009 | 0 | 0 | -12,840 | -12,840 |
| Book value 30 September 2009 | 15,307 | 0 | 1,220 | 16,527 |
| Cost price 1 October 2009 | 15,307 | 0 | 14,060 | 29,367 |
| Additions during the year | 0 | 329 | 329 | |
| Disposals during the year | 0 | 0 | 0 | 0 |
| Cost price 30 September 2010 | 15,307 | 0 | 14,389 | 29,696 |
| Depreciation 1 October 2009 | 0 | 0 | -12,840 | -12,840 |
| Disposals during the year | 0 | 0 | -437 | -437 |
| Reversed depreciations on the disposals of the year | 0 | 0 | 0 | 0 |
| Depreciation 30 September 2010 | 0 | 0 | -13,277 | -13,277 |
Book value 30 September 2010 15,307 0 1,112 16,419
As of the 30th of September 2009, the management has tested the book value of goodwill for impairment for the group as well as the parent company. Goodwill has been allocated to the following cash-generating units:
| GROUP | DKK '000 Parent company |
|||||
|---|---|---|---|---|---|---|
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | |||
| Nordisk Plast A/S | 37,778 | 38,778 | 0 | 0 | ||
| RIAS A/S | 15,307 53,085 |
15,307 54,085 |
15,307 15,307 |
15,307 15,307 |
The recoverable amount is based on the value in use, which is calculated through the use of expected net cash flows on the basis of approved budgets as well as supported projections and with a discount rate before tax of 8.8%.
The gross profit during the budget and estimate period is estimated on the basis of historical gross profits and amounts to 28-32%. The budget and estimate period of the impairment test does not include assumptions about significant increases in turnover or efficiency improvements. Thus, no growth rates over 3% have been used.
The average growth rate used for extrapolation of future net cash flows for the years after 2015 has been estimated at 2.5%. The growth is estimated not to exceed the long-term average growth rate within the markets of the group.
The management estimates the probable changes of the basic assumptions will not result in the book values of goodwill to exceed the recoverable amounts.
| Land and | Plant and | Other fixtures and fittings, machinery and |
Payments in advance and tangible assets in progress |
Total | |
|---|---|---|---|---|---|
| Note 10. Tangible assets | buildings | machinery | equipment | ||
| GROUP | |||||
| Cost price 1 October 2008 | 61,711 | 13.764 | 18,405 | 1,007 | 94,887 |
| Additions during the year | 195 | 3,458 | 4,248 | 0 | 7,901 |
| Disposals during the year | 0 | -350 | -1,469 | 0 | -1,819 |
| Transfers and allocations | 0 | 4,144 | -3,137 | -1,007 | 0 |
| Cost price 30 September 2009 | 61,906 | 21,016 | 18,047 | 0 | 100,969 |
| Depreciation 1 October 2008 | -22,407 | -8,789 | -8,679 | 0 | -39,875 |
| Depreciation during the year | -733 | -1,364 | -2,459 | 0 | -4,556 |
| Depreciation for the disposals during the year | 0 | 350 | 1,202 | 0 | 1,552 |
| Transfers and allocations | 0 | -2,340 | 2,340 | 0 | 0 |
| Depreciation 30 September 2009 | -23,140 | -12,143 | -7,596 | 0 | -42,879 |
| Book value 30 September 2009 | 38,766 | 8,873 | 10,451 | 0 | 58,090 |
| Cost price 1 October 2009 | 61,906 | 21,016 | 18.047 | 0 | 100,969 |
| Additions during the year | 0 | 634 | 2.054 | 0 | 2,688 |
| Disposals during the year | 0 | -606 | -2.379 | 0 | -2,985 |
| Transfers and allocations | 0 | -380 | 0 | 380 | 0 |
| Cost price 30 September 2010 | 61,906 | 20,664 | 17,722 | 380 | 100,672 |
| Depreciation 1 October 2009 | -23,140 | -12,143 | -7,596 | 0 | -42,879 |
| Depreciation during the year | -747 | -1,488 | -2,482 | 0 | -4,717 |
| Depreciation for the disposals during the year | 0 | 562 | 1,440 | 0 | 2,002 |
| Depreciation 30 September 2010 | -23,887 | -13,069 | -8,638 | 0 | -45,594 |
| Book value 30 September 2010 | 38,019 | 7,595 | 9,084 | 380 | 55,078 |
| PARENT COMPANY | |||||
| Cost price 1 October 2008 | 61,711 | 13,764 | 16,039 | 1,007 | 92,521 |
| Additions during the year | 195 | 3,065 | 2,127 | 0 | 5,387 |
| Disposals during the year | 0 | -350 | -1,082 | 0 | -1,432 |
| Transfers and allocations | 0 | 1,007 | 0 | -1,007 | 0 |
| Cost price 30 September 2009 | 61,906 | 17,486 | 17,084 | 0 | 96,476 |
| Depreciation 1 October 2008 | -22,407 | -8,789 | -8,787 | 0 | -39,983 |
| Disposals during the year | -733 | -1,111 | -1,911 | 0 | -3,755 |
| Depreciation for the disposals during the year | 0 | 350 | 875 | 0 | 1,225 |
| Depreciation 30 September 2009 | -23,140 | -9,550 | -9,823 | 0 | -42,513 |
| Book value 30 September 2009 | 38,766 | 7,936 | 7,261 | 0 | 53,963 |
| Cost price 1. October 2009 | 61,906 | 17,486 | 17,084 | 0 | 96,476 |
| Additions during the year | 0 | 634 | 1,386 | 0 | 2,020 |
| Disposals during the year | 0 | -606 | -1,754 | 0 | -2,360 |
| Transfers and allocations | 0 | -380 | 0 | 380 | 0 |
| Cost price 30 September 2010 | 61,906 | 17,134 | 16,716 | 380 | 96,136 |
| Depreciation 1 October 2009 | -23,140 | -9,550 | -9,823 | 0 | -42,513 |
| Depreciation during the year | -747 | -1,247 | -1,841 | 0 | -3,835 |
| Depreciation for the disposals during the year | 0 | 562 | 1,015 | 0 | 1,577 |
| Depreciation 30 September 2010 | -23,887 | -10,235 | -10,649 | 0 | -44,771 |
| Book value 30 September 2010 | 38,019 | 6,899 | 6,067 | 380 | 51,365 |
| Note 11. Equity holdings in subsidiary | 2010 | 2009 |
|---|---|---|
| Cost price 1 October | 48,787 | 48,787 |
| Cost price 30 September | 48,787 | 48,787 |
| Depreciation 30 September | 0 | 0 |
| Book value 30 September | 48,787 | 48,787 |
| Name | Domicile | Ownership interest in % Turnover | Assets | Liabilities | Equity | Profit for the year | |
|---|---|---|---|---|---|---|---|
| Nordisk Plast A/S | Denmark | 100 | 50,063 | 28,832 | 15,459 | 13,373 | 2,489 |
| 13,373 | 2,489 |
| GROUP | parent company |
|||
|---|---|---|---|---|
| Note 12. Stock | 2009/10 | 2008/09 | 2009/10 | 2008/09 |
| Stocks can be itemised as follows: | ||||
| Commodities | 34,818 | 31,837 | 22,693 | 21,074 |
| Writedown 1 October | -3,637 | -3,028 | -1,483 | -870 |
| Writedowns for the year | -103 | -609 | -45 | -613 |
| Writedowns as at 30 September | -3,740 | -3,637 | -1,528 | -1,483 |
| 31,078 | 28,200 | 21,165 | 19,591 |
Adjustments for writedown of stocks have been booked under cost of sales
| GROUP | parent | company | ||
|---|---|---|---|---|
| Note 13. Debtors | 2009/10 | 2008/09 | 2009/10 | 2008/09 |
| Receivables from sale and services | 47,948 | 43,661 | 36,396 | 34,726 |
| Receivables at parent company | 0 | 891 | 0 | 891 |
| Receivables at parent company | 0 | 0 | 669 | 1,450 |
| Receivables at group enterprises | 0 | 22 | 0 | 22 |
| Other receivables | 4,887 | 4,340 | 4,610 | 3,992 |
| Corporation tax | 1,908 | 1,338 | 1,908 | 1,338 |
| 54,743 | 50,252 | 43,583 | 42,419 | |
| Writedown for bad debts can be itemised as follows: | ||||
| Writedown 1 October | -500 | -400 | -250 | -250 |
| Writedowns for the year | -915 | -100 | -735 | 0 |
| Depreciations 30 September | -1415 | -500 | -985 | -250 |
Depreciation is continuously carried out for the purpose of meeting impairment losses. Depreciation adjustment has been recognized under distribution costs.
To a wide extent, the company has taken out insurance for receivables from sales and services, see also note 20.
The company's share capital of tDKK 23,063 is distributed on tDKK 3,125 A shares and tDKK 19,938 B shares.
The A shares, which are non-negotiable instruments, are attributed 10 votes per DKK 100 share, cf. Section 11 of the articles of association.
The B shares, which are negotiable instruments, are attributed 1 vote per DKK 100 share, cf. Section 11 of the articles of association.
The Group continually monitors the need for an adjustment of the capital structure for the purpose of weighing the increase in the required rate of return of the equity against the increased uncertainty with respect to borrowed funds. As of 30 September 2010, the percentage ratio of the equity constituted 73% (30 September 2009: 74%). The objective is an equity-to-debt ratio of 70-80%. The capital is managed for the Group as a whole.
It is RIAS A/S' dividend policy that the shareholders should obtain a return on their investment by way of
increased values combined with a return that is higher than a risk free investment in bonds. Dividend distribution will take place in consideration of the required consolidation of the equity capital constituting the Group's basis for further expansion. The dividend distributed for future years, is expected to be in the environment of DKK 5-10 per DK 100 share.
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | |
| Note 15. Deferred tax | ||||
| Balance 1 October | 10,381 | 10,056 | 9,895 | 9,757 |
| Adjustment of deferred tax for the year | -263 | 325 | -190 | 138 |
| Balance 30 September | 10,118 | 10,381 | 9,705 | 9,895 |
| Deferred tax is attributable to: | ||||
| Buildings | 4,994 | 4,956 | 4,994 | 4,956 |
| Plant and machinery | 1,189 | 1,256 | 926 | 1,007 |
| Intangible assets | 4,344 | 4,402 | 4,104 | 4,132 |
| Other temporary differences | -409 | -233 | -319 | -200 |
| 10,118 | 10,381 | 9,705 | 9,895 |
The group's credit facilities consist of agreed bank overdrafts in DKK and EUR with variable interest that are not subject to special terms or conditions.
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | |
| Note 17. Trade creditors and other debt | ||||
| Suppliers of goods and services | 7,361 | 6,245 | 3,793 | 2,807 |
| Debt to parent company | 523 | 0 | 523 | 0 |
| Debt to subsidiary | 0 | 0 | 254 | 110 |
| Debt to group enterprises | 28 | 35 | 28 | 35 |
| VAT payable | 4,311 | 7,589 | 3,260 | 6,327 |
| Holiday-pay liabilities | 3,636 | 3,954 | 2,784 | 3,074 |
| Other debt | 11,792 | 8,881 | 11,352 | 8,225 |
| 27,651 | 26,704 | 21,994 | 20,578 |
DKK '000
On behalf of RIAS A/S, Danske Bank has provided a project guarantee of TDKK 19 towards customers.
A lease of the property Virkevangen 80, Assertoft, 8960 Randers SØ has been agreed between Nordisk Plast A/S and Byg Invest ApS.
Based on the rent for October 2010, the rental liability, in the irrevocable renting periode from 1 October 2009 to 1 December 2016, amounts til tDKK 18,404.
Of this tDKK 2,568 fall due within one year, tDKK 10,272 fall due within 1-5 years, and tDKK 2,996 fall due after more than 5 years. In 2009/10, a rent payment cost of tDKK 2,568 has been recognized.
| DKK '000 | ||||
|---|---|---|---|---|
| GROUP | PARENT COMPANY | |||
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | |
| Note 19. Remuneration to auditors appointed by the General Meeting | ||||
| RIR REVISION : |
||||
| Statutory audit | 310 | 299 | 310 | 299 |
| Other assurance engagements | 40 | 6 | 40 | 6 |
| Tax-related consulting services | 0 | 0 | 0 | 0 |
| Other services: | 101 | 55 | 101 | 55 |
| 451 | 360 | 451 | 360 | |
| KPMG: | ||||
| Statutory audit | 233 | 226 | 233 | 226 |
| Other assurance engagements | 15 | 0 | 15 | 0 |
| Tax-related consulting services | 0 | 0 | 0 | 0 |
| Other services: | 157 | 121 | 157 | 121 |
| 405 | 347 | 405 | 347 | |
| Other: | ||||
| Statutory audit, National Revision Registrerede revisorer A/S | 133 | 123 | 0 | 0 |
| Other services, PricewaterhouseCoopers | 0 | 75 | 0 | 75 |
| 133 | 198 | 0 | 75 | |
| 989 | 905 | 856 | 782 |
There is no speculation in financial risks, and thus, the Group's management is solely focused on the management of those financial risks that are a direct consequence of the Group's operation and financing.
The Group has no derivative financial instruments.
The Group makes no interest-rate transactions for hedging purposes, as moderate changes in interest-rate levels will have no material effect on the Group's earnings and equity.
The sensitivity to the interest-rate risk is low and is mainly tied in with cash funds and overdraft facilities. As these are continuously optimised, deposit and overdraft balances will cancel out one another; and, thus addition of interests will be minimised.
The Group's credit risks are connected to receivables from sale and services occurring when the Group performs sales without the reception of a prepayment. The Group's policy with respect to contracting credit risks entails the performance of a credit rating of all customers – upon re-cognition, and subsequently on an ongoing basis. In the event that no satisfactory insurance as to the credit-risk rating of the customer can be obtained, a particular ecurity will be required for the sale. The primary coverage instrument with respect to insecurity of payment is credit risk insurance which the company applies to a wide extent. Credit-risk insurance is taken out with Euler Hermes credit insurance. In the event that credit-risk insurance cannot be taken out for a given customer, this customer will either be subjected to a severe monitoring as to internal credit limits or a prepayment may be requested.
The credit-risk management is based on internal customer-credit limits. The credit limits will be determined on the basis of the customers' creditworthiness in combination with the current market situation.
To counter loss, write-downs will be recognised to the extent necessary.
The group is only affected by the exchange rate development to a limited extent. Almost all trade takes place in DKK or EUR. As the currency risk of DKK/ EUR is considered very small, the group does not hedge its net debt in foreign currencies.
The Group's cash-flow reserve consists of cash funds and undrawn credit facilities. The Group's objective is to have satisfactory cash funds for a continued and appropriate allocation of funds in the event of fluctuation in the cash flow. The Group has entered into agreements with external banks concerning credit facilities by way of overdraft facilities amounting to a total of DKK 35 million.
The Group only has debts falling due within a period of one year cf. the balance sheet. Payment thereof, DKK 44.9 million, can be fully covered by payments from receivables.
Control:
Thyssen Röhm Kunststoffe GmbH, which holds all the A shares of RIAS A/S, has control of the company.
The ultimate parent company is ThyssenKrupp AG.
Significant influence:
The company's related parties with significant influence include the company's board of directors and management as well as employees in management positions and these person's related family members. Related parties also include group enterprises in which the above-mentioned group of people have significant interests.
Other related parties include subsidiary, as mentioned in note 11.
No transactions have been carried out with the board of directors, the management, employees in managing positions, material shareholders or other related parties apart from payment of considerations.
DKK '000
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2009/10 | 2008/09 | 2009/10 | 2008/09 | |
| Trade with parent company amounts to: | ||||
| Other income | 1,105 | 1,207 | 1,105 | 1,207 |
| Purchase of services | -576 | -337 | -576 | -316 |
| Trade with group enterprises amounts to: | ||||
| Sale of goods and services | 113 | 180 | 113 | 180 |
| Purchase of goods and services | -528 | -1,725 | -528 | -1,725 |
| Legal assistance from Lund Elmer Sandager | -51 | -76 | -51 | -58 |
| Trade with subsidiary amounts to: | ||||
| Sale of goods and services | 0 | 0 | 1,041 | 887 |
| Purchase of goods and services | 0 | 0 | -1,064 | -527 |
As of 1 October 2010 RIAS A/S merged with Nordisk Plast A/S
RIAS A/S Industrivej 11 Postbox 179 DK - 4000 Roskilde
Tlf. +45 46 77 00 00 Fax +45 46 77 00 10 www.rias.dk
CVR nr. DK 44065118
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