Quarterly Report • May 13, 2022
Quarterly Report
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as at 31 March 2022
SERVIZI ITALIA S.P.A. via San Pietro, 59/B - 43019 Castellina di Soragna (PR) - ITALY Share Capital: Euro 31,809,451 fully paid-up Tax Code and Register of Companies No.: 08531760158 Certified Email: [email protected] Tel. +39 0524 598511 - Fax +39 0524 598232 www.servizitaliagroup.com
| 1 | Company officers and corporate information 3 | |
|---|---|---|
| 2 | Group structure 4 | |
| 3 | Directors' report5 | |
| 4 | Accounting schedules 12 | |
| 5 | Notes14 | |
| 5.1 Introduction 14 | ||
| 5.2 Performance by business segment and geographical area14 | ||
| 5.3 Notes on the main changes in the statement of financial position16 | ||
| 5.4 Note on the main changes in the income statement 22 | ||
| 5.5 Consolidated net financial position25 |
| Name and Surname | Position |
|---|---|
| Roberto Olivi (*) | Chairman |
| Ilaria Eugeniani (*) | Deputy Chairman |
| Michele Magagna (*) | Director |
| Umberto Zuliani | Director |
| Antonio Aristide Mastrangelo(1)(2) | Independent Director |
| Anna Maria Fellegara(1) | Independent Director |
| Benedetta Pinna(1) | Independent Director |
(1) Member of the Governance and Related Parties Committee; (2) Lead Independent Director
(*) Members of the Executive Committee
| Name and Surname | Position |
|---|---|
| Roberto Cassader | Chairman |
| Gianfranco Milanesi | Statutory auditor |
| Elena Iotti | Statutory auditor |
| Davide Barbieri | Alternate auditor |
| Valeria Gasperini | Alternate auditor |
| Name and Surname | Position |
|---|---|
| Veronica Camellini | Chairman |
| Francesco Magrini | Member |
| Antonio Ciriello | Member |
Deloitte & Touche S.p.A. - Via Tortona, 25 - 20144 Milan
Servizi Italia S.p.A. Via S. Pietro, 59/b – 43019 Castellina di Soragna (Parma) – Italy Tel.+390524598511, Fax+390524598232, website: www.si-servizitalia.com; Share Capital: Euro 31,809,451 fully paid-up Tax code and Parma Company's Register no. 08531760158; Certified email: [email protected] Founded: 1986 Listing segment: Euronext STAR Milan Ordinary Share ISIN codes: IT0003814537, BLOOMBERG: SRI IM, REUTERS: SRI.MI LEI Code: 815600C8F6D5ACBA9F86
Pietro Giliotti (IRM) e-mail: [email protected] – Tel. +390524598511, Fax +390524598232
Servizi Italia S.p.A., registered offices in Castellina di Soragna (Parma, Italy), listed in the Euronext STAR Milan segment, is the leading Italian operator in the supply of integrated services for the washhire and sterilisation of textile materials and surgical instruments for hospital facilities. With a technologically advanced production platform broken down into laundering facilities, textile sterilisation centres, surgical instrument sterilisation centres and numerous wardrobes, the Company and its Italian and overseas subsidiaries forming the Servizi Italia Group provide their broad and diversified range of services for public and private healthcare facilities in central and northern Italy, in the state of São Paulo in Brazil, in Turkey, India, Albania and Morocco.
| Company name Parent Company and Subsidiaries |
Registered office | Share capital | Interest of equity investments |
|
|---|---|---|---|---|
| Servizi Italia S.p.A. | Castellina di Soragna (Parma) - Italy | EUR | 31,809,451 | Parent |
| SRI Empreendimentos e Participações Ltda |
City of São Paulo, State of São Paulo - Brazil | BRL | 217,757,982 | 100% |
| Steritek S.p.A. | Malagnino (Cremona)- Italy | EUR | 134,500 | 70% |
| San Martino 2000 S.c.r.l. | Genoa - Italy | EUR | 10,000 | 60% |
| Lavsim Higienização Têxtil S.A. | São Roque, State of São Paulo - Brazil | BRL | 29,630,000 | 100%(*) |
| Maxlav Lavanderia Especializada S.A. | Jaguariúna, State of São Paulo - Brazil | BRL | 2,825,060 | 100%(*) |
| Vida Lavanderias Especializada S.A. | São Roque, State of São Paulo - Brazil | BRL | 3,600,000 | 100%(*) |
| Aqualav Serviços De Higienização Ltda |
Vila Idalina, Poá, State of São Paulo - Brazil | BRL | 15,400,000 | 100%(*) |
| Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi |
Ankara - Turkey | TRY | 20,000,000 | 55% |
| Ergülteks Temizlik Tekstil Ltd. Sti. | Smyrna - Turkey | TRY | 1,700,000 | 57.5% (**) |
| Wash Service S.r.l. | Castellina di Soragna (Parma) - Italy | EUR | 10,000 | 90% |
| Ekolav S.r.l. | Lastra a Signa (Florence) - Italy | EUR | 100,000 | 100% |
As at 31 March 2022, the Servizi Italia Group included the following companies:
(*)Held through SRI Empreendimentos e Participações Ltda
(**) held through Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi
| Here below are the associates and joint ventures companies, measured using the equity method in the | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| consolidated financial statements: |
| Company name Associates and Jointly-controlled Companies |
Registered office | Share capital | Interest of equity investment | |
|---|---|---|---|---|
| Arezzo Servizi S.c.r.l. | Arezzo - Italy | EUR | 10,000 | 50% |
| PSIS S.r.l. | Padua - Italy | EUR | 10,000,000 | 50% |
| Steril Piemonte S.c.r.l. | Turin - Italy | EUR | 4,000,000 | 50% |
| AMG S.r.l. | Busca (Cuneo) - Italy | EUR | 100,000 | 50% |
| Iniziative Produttive Piemontesi S.r.l. | Turin - Italy | EUR | 2,500,000 | 37.63% |
| Piemonte Servizi Sanitari S.c.r.l. | Turin - Italy | EUR | 10,000 | 30%(*) |
| SAS Sterilizasyon Servisleri A.Ş. | Istanbul - Turkey | TRY | 24,467,000 | 51% |
| Shubhram Hospital Solutions Private Ltd. | New Delhi - India | INR | 362,219,020 | 51% |
| Finanza & Progetti S.p.A. | Vicenza - Italy | EUR | 550,000 | 50% |
| Brixia S.r.l. | Milan - Italy | EUR | 10,000 | 23% |
| Saniservice Sh.p.k. | Tirana – Albania | LEK | 2,745,600 | 30% |
| Sanitary cleaning Sh.p.k. | Tirana – Albania | LEK | 2,798,800 | 40% |
| Servizi Sanitari Integrati Marocco S.a.r.l. | Casablanca - Morocco | MAD | 122,000 | 51% |
| StirApp S.r.l in liquidation | Modena – Italy | EUR | 208,124 | 25% |
(*) The 15.05% indirect shareholding held through Iniziative Produttive Piemontesi S.r.l. should be added to this.
This Interim Report as at 31 March 2022 has been prepared in compliance with the International Accounting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and approved by the European Union, and must be read together with the information provided in the consolidated financial statements as at 31 December 2021. In order to allow for a better evaluation of the economic and financial performance, the following summary tables show some "Alternative performance indicators", not provided by the IFRS International Accounting Standards. The footnotes of said tables indicate the calculation method used and the composition of these ratios, in line with the guidelines of the European Securities and Market Authority (ESMA).
The table below presents a comparison of the main consolidated income statement figures as at 31 March 2022 with the results as at 31 March 2021 (in thousands of Euros):
| (thousands of Euros) | 31 March 2022 | 31 March 2021 | Change | Change % |
|---|---|---|---|---|
| Revenues | 65,380 | 60,459 | 4,921 | 8.1% |
| EBITDA (a) | 13,290 | 15,237 | (1,947) | |
| EBITDA % | 20.3% | 25.2% | -4.9% | |
| Operating profit (EBIT) | (537) | 1,929 | (2,466) | |
| Operating profit (EBIT)% | -0.8% | 3.2% | -4.0% | |
| Net profit | (273) | 1,411 | (1,684) | |
| Net profit % | -0.4% | 2.3% | -2.8% |
The income figures for the period felt the effects of the extraordinary components and, therefore, the main adjusted indicators are reported below:
| (thousands of Euros) | 31 March 2022 |
(1) | 31 March 2022 adjusted |
31 March 2021 |
Adjusted change |
Change % adj. |
|---|---|---|---|---|---|---|
| Revenues | 65,380 | 1,103 | 66,483 | 60,459 | 6,024 | 10.0% |
| EBITDA (a) | 13,290 | 14,393 | 15,237 | (844) | ||
| EBITDA % | 20.3% | 21.6% | 25.2% | -3.6% | ||
| Operating profit (EBIT) | (537) | 566 | 1,929 | (1,363) | ||
| Operating profit (EBIT)% | -0.8% | 0.9% | 3.2% | -2.3% | ||
| Net profit | (273) | 796 | 523 | 1,411 | (888) | |
| Net profit % | -0.4% | 0.8% | 2.3% | -1.5% |
(a) Group management has defined EBITDA as the difference between the value of sales and services and operating costs before depreciation, amortisation, write-downs, impairment and provisions.
(1) The adjusted figures do not take into account the lower revenues of Euro 1,103 thousand deriving from ISTAT starting from the services provided for the Ferrara Hospital through the project company Prog.este S.p.A. from 2014 to 2021. For more details, see the paragraph "Significant events after the end of the first quarter".
The table below presents a comparison of the main consolidated statement of financial position figures as at 31March 2022 with the figures as at 31 December 2021 (in thousands of Euros):
| (thousands of Euros) | 31 March 2022 | 31 December 2021 | Change | Change % |
|---|---|---|---|---|
| Net operating working capital(a) | (3,260) | (2,138) | (1,122) | 52.5% |
| Other current assets/liabilities(b) | (7,007) | (12,247) | 5,240 | -42.8% |
| Net working capital | (10,267) | (14,385) | 4,118 | -28.6% |
| Non-current assets - medium/long-term provisions | 268,384 | 261,201 | 7,183 | 2.7% |
| of which Rights of use under IFRS 16 | 29,518 | 28,759 | 759 | 2.6% |
| Net invested capital | 258,117 | 246,816 | 11,301 | 4.6% |
| Shareholders' equity (B) | 127,149 | 121,119 | 6,030 | 5.0% |
| Net financial debt(d) (A) | 130,968 | 125,697 | 5,271 | 4.2% |
| of which Financial liabilities under IFRS 16 | 31,263 | 30,572 | 691 | 2.3% |
| Net invested capital(c) | 258,117 | 246,816 | 11,301 | 4.6% |
| Gearing [A/(A+B)] | 50.7% | 50.9% | ||
| Debt/Equity (A/B) | 103.0% | 103.8% |
(a) Net operating working capital is not an accounting measurement under the IFRSs endorsed by the European Union. The Company management has defined net operating working capital as the algebraic sum of inventories, trade receivables and trade payables.
(b) Other current assets/liabilities are calculated as the difference between other current assets, current tax receivables, current tax payables and other current liabilities.
(c) The Company management has defined invested capital as the sum of Shareholders' equity and net financial debt.
(d) The management has defined net financial debt as the sum of amounts Due to banks and other lenders net of Cash and cash equivalents and Current financial receivables.
As at 31 March 2022, the business performance recorded consolidated revenues of the Servizi Italia Group of Euro 65,380 thousand, an increase of 8.1% (+9.0% at constant exchange rates or +10% adjusted) compared to as of 31 March 2021. It should be noted that the Parent Company, as better explained in the paragraph "Significant events after the end of the first quarter" to which reference should be made, recorded a total amount of Euro 1,103 thousand (hereinafter "ISTAT effective date") as a reduction in revenues of the period. The amount is exceptional both in the amount and in its occurrence.
Please note the following as regards revenue from sales and services by sector for 31 March 2022 compared to 31 March 2021:
4,406 thousand, with a decrease of 3.7% due to a lower supply of reusable technical fabric (TTR) in the north-east of Italy with respect to the comparison period. On the line there are also lower revenues for the ISTAT effective date from the years 2014-2021 from Prog.Este. S.p.A. for Euro 93 thousand, net of this extraordinary impact, the line would record a decrease of 1.6%.
• Revenues from surgical instruments sterilization services (Steril C) (which in absolute terms represent 15.9% of the Group's revenues) go from Euro 10,072 thousand in 2021 to Euro 10,396 thousand in 2022, with an increase of 3.2% mainly due to new orders in the north-east are of Italy and to the growth recorded in the period by Steritek S.p.A. for validation services (6.7% in absolute terms on the revenues recorded by the segment) which accounts for 0.9% of the line growth. On the line there are also lower revenues for the ISTAT effective date starting from the years 2014-2021 from Prog.Este. S.p.A. for Euro 586 thousand, net of this extraordinary impact, the line would record revenues up by 9.0%.
Consolidated EBITDA went from Euro 15,237 thousand in the first three months of 2021 to Euro 13,290 in the same period of 2022, going from 25.2% to 20.3% of revenues or a decrease in absolute value of 12.8%. The EBITDA margin for the period was affected by one-off and exceptional elements that characterized both the first quarter of 2022 and the first quarter of 2021. With regard to the first quarter of 2021, we note that it was positively influenced by the capital gain relating to the sale of the workwear branch for Euro 1.5 million. In the first quarter of 2022, on the other hand, the negative impact relating to the ISTAT effective date was recorded to Prog.Este. S.p.A. for Euro 1,103 thousand. Net of this latter impact, the EBIDTA margin for the first quarter of 2022 would be equal to 21.6%. It should also be noted that in the first quarter of 2022 the growth in terms of incidence on revenues from costs for services (+2.9%) is mainly connected to the increases recorded by utilities such as gas and electricity as well as the activation of cloakroom services connected to launch of new tenders in north-east Italy. Personnel costs decreased in terms of incidence on turnover (-0.2%) compared to the previous period, albeit growing in absolute value (+7.5%) following the increase in the number of Group employees. In the period there was a slight decrease in operating margin results in the Brazil area (EBITDA margin going from 32.2% to 29.2%), and a significant decrease in Turkey (EBITDA margin which going from 27.7% 0.9%) mainly due to the increases recorded in the period, in different proportions in the respective countries, in relation to energy costs and costs for raw materials and the impact on operating costs, related to the strong inflationary increase, recorded in the Turkish area.
The consolidated operating result (EBIT) went from Euro 1,929 thousand during the first three months of 2021 (3.2% compared to the turnover for the period) to Euro -536 thousand during the same period in 2022 (-0.8% compared to the turnover for the period, or 0.9% adjusted), mainly due to the dynamics already described in the comment on the change in turnover and EBITDA and to a lower incidence of amortisation and depreciation for the period.
Financial management showed an increase in financial income compared to the same period of the previous year mainly due to exchange gains deriving from the appreciation of the Brazilian Real against the Euro. It should also be noted that the revaluations of some companies valued according to the equity method for a total of Euro 696 thousand had a positive impact on the results for the period.
Taxes for the period are positive for Euro 322 thousand with an incidence on the pre-tax result of 54.1% and mainly concern the allocation of deferred taxes on the tax losses incurred by the Parent Company.
Therefore, the consolidated intermediate financial statements as at 31 March 2022 closed with a net loss of Euro 273 thousand compared to the net profit of Euro 1,411 thousand for the same period of the year.
The main characteristics of the awarded contracts, which have an annual contract value of more than Euro 50 thousand, are provided below:
| Customer | Service provided | Duration | Contract value per year |
|
|---|---|---|---|---|
| years | (thousands of Euros) |
|||
| AOU Gaetano Martino of Messina* | Surgical instruments sterilisation service | 8 | 2,068 | |
| CUC della Carnia - APSP La Quiete di Udine* | Hotel and support services | 5 | 578 | |
* renewed
The contracts that ended during the reference period are outlined below:
| Customer | Service provided | Contract value per year (thousands of Euros) |
|---|---|---|
| ASST Sette Laghi - PO Tradate | Integrated linen wash-hire service | 723 |
The Covid-19 viral epidemic has imposed the need to contain epidemiological development as much as possible, leading to changes in hospital procedures and activities with regard to hygiene guarantees for medical and nursing staff, for wards and in-patients designated for the treatment of infections caused by the Coronavirus. All the activities of the Group, which operates in strict compliance with the relevant regulations, were only in part impacted by the evolution of the contingent epidemiological situation during the period. We are confident that the effects associated with the pandemic risk will gradually diminish and that the Group will be able to adapt, as it has done in the past, to the consequent regulatory and market changes.
On 15 April 2022 the Parent Company received from the project company Prog.Este. S.p.A. a communication in which the loss of the same is announced at the Court of Appeal of Bologna, and the waiver of further appeal regarding the lawsuit brought by the Hospital of Ferrara and qualified as "ISTAT effective date". The sentence established the correct starting date for the application of ISTAT for the period on the enhancement of the services offered, which accrues not from the date of stipulation of the project financing (2006), but from the following year, that is to say from 31 December 2007. The period subject to recalculation pertaining to Servizi Italia concerns the years
** new customer
from 2014 to 2021 for a total amount of Euro 1,103 thousand. The Parent Company has made provision for the aforementioned amount during the period, which is exceptional in terms of both the amount and its occurrence.
On 20 April 2022, the ordinary session of the Shareholders' Meeting:
As at 6 May 2022, the Company acquired a total of 2,173,358 treasury shares on the Euronext Milan Market managed by Borsa Italiana, equal to 6.83% of the share capital.
Although the short and medium-term forecasts are complex due to the destabilizing geopolitical context and the significant price increases recorded, for the year 2022 the Group anticipates positive results in Italy and Brazil, while the relative evolving scenario is more complex in relation to Turkey, increasingly oppressed by a context of growing inflation and currency volatility which affects energy and raw material costs more than proportionally warranted compared to the other areas in which the Group operates. At the basis of the sound elements to counter this moment of uncertainty is the Group's customer portfolio, which is presumed not to be affected directly by the "Donbass crisis". Moreover, the Group does not operate directly with stakeholders involved in economic restrictions approved by the European Council through Decision (EU) 2022/266 and Regulation (EU) 2022/263. For the next few months, margin recovery actions are also planned aimed at the recognition to customers of a temporary refund aimed at partially mitigating the significant increase in energy costs, both thanks to all the government aids the Group will be able to access. The Group, in the mediumterm strategy, despite the uncertainty of a situation deriving from an increase in energy costs and raw materials which is presumed to persist beyond the current year, expects an organic consolidation of its leadership position in the Italian and foreign market and a continuous search for optimization and efficiencies. The Group will continue to operate to reach its objectives and comply with commitments undertaken and aims to maintain a solid capital situation through an adequate financial balance and good creditworthiness with banking institutions.
From 22 June 2009, the Company's stock has been traded on the Euronext STAR Milan segment of Euronext Milan (EXM). The main share and stock exchange data as at 31 March 2022 is disclosed below along with share volume and price trends:
| Share and stock exchange data | 31 March 2022 |
|---|---|
| No. of shares making up the share capital | 31,809,451 |
| Price at IPO: 4 April 2007 | 8.50 |
| Price as at 31 March 2022 | 1.83 |
| Maximum price during the period | 2.11 |
| Minimum price during the period | 1.79 |
| Average price during the period | 1.98 |
| Volumes traded during the period | 1,355,037 |
| Average volumes during the period | 21,172 |
During the reporting period, the investor relations team participated in the MidCap Event in Paris (11 May 2022). During the meetings, which were held in person, the Group's top management met with various analysts and investors; in addition to this, throughout the period, the Investor Relations Team remained available for individual and group calls with anyone interested in obtaining information and analysing activities and businesses.
In addition to the research study by Specialist Intermonte SIM, the Group also appointed Midcap Partners (Appointed rep by Louis Capital Markets UK, LLP).
Pursuant to Art. 3 of Consob Resolution No. 18079 dated 20 January 2012, Servizi Italia S.p.A. decided to join the out-put regime set forth in Art. 70, par. 8 and Art. 71, par. 1-bis, of Consob Regulation No. 11971/99 (as amended), availing itself of the right to derogate from the obligation to publish the disclosures as set forth in Annex 3B of the aforementioned Consob Regulation at the time of significant mergers, spin-offs, share capital increases through contributions in kind, acquisitions and transfers.
With reference to the changes made to the regulatory framework in 2016, Servizi Italia S.p.A. publishes the additional periodical information, meeting the obligations specified for the issuers listed in the EURONEXT STAR Milan segment in Art. 2.2.3, Par. 3, of the Regulations for the Markets organised and managed by Borsa Italiana S.p.A. and in the notice No. 7578 issued by Borsa Italiana on 21 April 2016.
The Chairman of the Board of Directors
(Roberto Olivi)
| ASSETS Non-current assets Property, plant and equipment 167,622 163,326 Intangible assets 4,301 4,477 Goodwill 63,635 62,684 Equity-accounted investments 29,113 27,486 Equity investments in other companies 3,305 3,305 Financial receivables 4,550 3,746 Deferred tax assets 9,121 8,349 Other assets 3,162 3,495 Total non-current assets 284,809 276,868 Current assets Inventories 8,535 8,408 Trade receivables 69,102 65,139 Current tax receivables 1,865 1,872 Financial receivables 5,664 6,087 Other assets 13,599 9,585 Cash and cash equivalents 3,918 3,217 Total current assets 102,683 94,308 TOTAL ASSETS 387,492 371,176 SHAREHOLDERS' EQUITY AND LIABILITIES Group shareholders' equity Share capital 29,677 29,809 Other reserves and retained earnings 96,337 82,375 Profit (loss) for the period (89) 7,500 Total shareholders' equity attributable to shareholders of the parent 125,925 119,684 company Total shareholders' equity attributable to non-controlling interests 1,224 1,435 TOTAL SHAREHOLDERS' EQUITY 127,149 121,119 LIABILITIES Non-current liabilities Due to banks and other lenders 54,382 58,750 Deferred tax liabilities 2,096 2,107 Employee benefits 8,740 8,338 Provisions for risks and charges 5,200 4,834 Other financial liabilities 389 388 Total non-current liabilities 70,807 74,417 Current liabilities Due to banks and other lenders 86,168 76,251 Trade payables 80,897 75,685 Current tax payables 402 276 Employee benefits 642 719 Other financial liabilities 1,860 2,454 Provisions for risks and charges 1,336 1,526 Other payables 18,231 18,729 Total current liabilities 189,536 175,640 TOTAL LIABILITIES 260,343 250,057 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 387,492 371,176 |
(thousands of Euros) | 31 March 2022 |
31 December 2021 |
|---|---|---|---|
| (thousands of Euros) | 31 March 2022 |
31 March 2021 |
|---|---|---|
| Sales revenues | 65,380 | 60,459 |
| Other income | 1,292 | 2,687 |
| Raw materials and consumables | (7,214) | (6,875) |
| Costs for services | (23,435) | (19,920) |
| Personnel expense | (22,376) | (20,805) |
| Other costs | (357) | (309) |
| Depreciation/amortisation, impairment and provisions | (13,827) | (13,308) |
| Operating profit | (537) | 1,929 |
| Financial income | 337 | 178 |
| Financial expenses | (1,091) | (1,153) |
| Income/(expense) from equity investments | - | - |
| Share of profit/loss of equity-accounted investments | 696 | 477 |
| Profit before tax | (595) | 1,431 |
| Current and deferred taxes | 322 | (20) |
| Profit (loss) for the period | (273) | 1,411 |
| of which: portion attributable to shareholders of the parent | (89) | 1,371 |
| Attributable to non-controlling interests | (184) | 40 |
| (thousands of Euros) | 31 March 2022 |
31 March 2021 |
|---|---|---|
| Profit (loss) for the period | (273) | 1,411 |
| Other comprehensive income that will not be reclassified to the Income Statement | ||
| Actuarial gains (losses) on defined benefit plans | - | - |
| Income taxes on other comprehensive income | - | - |
| Other comprehensive income that may be reclassified to the Income Statement | ||
| Gains (losses) from translation of foreign financial statements | 5,692 | (2,455) |
| Portion of comprehensive income of the investments measured using the equity method |
871 | 287 |
| Income taxes on other comprehensive income | - | - |
| Total other comprehensive income after taxes | 6,563 | (2,168) |
| Total comprehensive income for the period | 6,290 | (757) |
| of which: portion attributable to shareholders of the parent | 6,501 | (712) |
| Attributable to non-controlling interests | (211) | (45) |
| (thousands of Euros) | 31 March 2022 |
31 December 2021 |
31 March 2021 |
|---|---|---|---|
| Cash and cash equivalents in hand | 27 | 21 | 25 |
| Cash at bank | 3,891 | 3,196 | 4,725 |
| Cash and cash equivalents | 3,918 | 3,217 | 4,750 |
| Current financial receivables | 5,664 | 6,087 | 6,078 |
| Current due to banks and other lenders | (86,168) | (76,251) | (82,495) |
| of which Financial liabilities under IFRS 16 | (3,382) | (3,285) | (3,432) |
| Current net financial debt | (80,504) | (70,164) | (76,417) |
| Non-current due to banks and other lenders | (54,382) | (58,750) | (61,730) |
| of which Financial liabilities under IFRS 16 | (27,881) | (27,287) | (28,391) |
| Non-current net financial debt | (54,382) | (58,750) | (61,730) |
| Net financial debt | (130,968) | (125,697) | (133,397) |
The Interim Report as at 31 March 2022 has been prepared in compliance with Art. 154-ter of the Consolidated Law on Finance.
The accounting principles and criteria adopted to prepare this Interim Report as at 31 March 2022, which has not been audited, are the same as those used to prepare the annual financial statements as at 31 December 2021. The consolidated subsidiaries are San Martino 2000 S.c.r.l., Steritek S.p.A., Wash Service S.r.l., Ekolav S.r.l., SRI Empreendimentos e Participações Ltda (parent company of the companies: Lavsim Higienização Têxtil S.A., Maxlav Lavanderia Especializada S.A., Vida Lavanderias Especializada S.A., Aqualav Serviços De Higienização Ltda) and Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Anonim Şirketi (parent company of the company: Ergülteks Temizlik Tekstil Ltd. Sti.).
The estimation criteria used to prepare the Interim Report are basically the same as those applied in the Annual Financial Statements.
This Interim Report is approved by the Board of Directors on 13 May 2022.
The revenue from sales and services of Servizi Italia Group shown below divided by business line and geographical area for the periods ending 31 March 2022 and 31 March 2021 show the following data and changes:
| (thousands of Euros) | 31 March 2022 | % | 31 March 2021 |
% | Change % |
% Organic change |
% Exchange rate change |
|---|---|---|---|---|---|---|---|
| Wash-hire | 50,578 | 77.4% | 45,813 | 75.8% | 10.4% | 11.5% | -1.1% |
| Linen sterilisation (Steril B) | 4,406 | 6.7% | 4,574 | 7.6% | -3.7% | -3.7% | 0.0% |
| Surgical instrument sterilisation (Steril C) |
10,396 | 15.9% | 10,072 | 16.7% | 3.2% | 3.2% | 0.0% |
| Sales revenues | 65,380 | 100.0% | 60,459 | 100.0% | 8.1% | 9.0% | -0.8% |
| (thousands of Euros) | 31 March 2022 | % | 31 March 2021 |
% | Change % |
% Organic change |
% Exchange rate change |
|---|---|---|---|---|---|---|---|
| Italy | 57,091 | 87.3% | 52,486 | 86.8% | 8.8% | 8.8% | 0.0% |
| Brazil | 6,664 | 10.2% | 6,054 | 10.0% | 10.1% | -2.1% | 12.2% |
| Turkey | 1,625 | 2.5% | 1,919 | 3.2% | -15.3% | 48,9% | -64.2% |
| Sales revenues | 65,380 | 100.0% | 60,459 | 100.0% | 8.1% | 9.0% | -0.8% |
It should be noted that the Parent Company, as better explained in the paragraph "Significant events after the end of the first quarter" to which reference should be made, recorded a total amount of Euro 1,103 thousand (hereinafter "ISTAT effective date") as a reduction in revenues of the period. The amount is exceptional both in the amount and in its occurrence.
• Revenues deriving from wash-hire services (which in absolute terms represent 77.4% of the Group's revenues) go from Euro 45,813 thousand in the first three months of 2021 to Euro 50,578 thousand in the same period of 2022, recording an increase of 10.4 % (or 11.5% at
constant exchange rates), supported by an important growth in the Italian wash-hire sector which recorded an increase in revenues of 11.8%, an increase connected both to the tenders in the north-east of Italy and to the full recovery of the hotel business which in 2021 was essentially absent due to Covid. Lower revenues were also recorded on the line for the ISTAT effective date starting from the years 2014-2021 from Prog.Este. S.p.A. for Euro 424 thousand. Net of this extraordinary impact, the line revenues would have increased by 11.3%. Revenues in the Brazil area were characterized by a slight drop in local currency (-2.1%), offset by a markedly positive exchange rate effect of 12.2% (appreciation of the Brazilian Real against the Euro) which led to a positive change of 10.1% for the period. The Turkish area recorded an organic growth of 48.9%, offset by a negative exchange rate effect of 64.2% (depreciation of the Turkish Lira against the Euro) which led to a negative change of turnover by 15.3%.0
Changes in property, plant and equipment and the associated accumulated depreciation are shown in the table below.
| (thousands of Euros) | Land and buildings |
Plant and machinery |
Returnable assets |
Equipment | Other assets |
Assets under constructio n |
Total |
|---|---|---|---|---|---|---|---|
| Historical cost | 39,263 | 149,532 | 35,262 | 70,666 | 169,995 | 6,774 | 471,492 |
| Accumulated amortisation | (10,758) | (107,462) | (26,850) | (58,347) | (104,749) | - | (308,166) |
| Balance as at 31 December 2021 |
28,505 | 42,070 | 8,412 | 12,319 | 65,246 | 6,774 | 163,326 |
| Translation differences | 274 | 1,182 | 228 | 160 | 1,575 | 694 | 4,113 |
| Increases | 1,377 | 731 | 90 | 1,043 | 10,043 | 496 | 13,780 |
| Decreases | - | (5) | (1) | - | (23) | (22) | (51) |
| Amortisation | (817) | (2,031) | (395) | (1,183) | (9,120) | - | (13,546) |
| Impairments (reinstatements) |
- | - | - | - | - | - | - |
| Reclassifications | - | 185 | 7 | 6 | 104 | (302) | - |
| Balance as at 31 March 2022 | 29,339 | 42,132 | 8,341 | 12,345 | 67,825 | 7,640 | 167,622 |
| Historical cost | 41,019 | 152,700 | 35,818 | 72,004 | 183,082 | 7,640 | 492,263 |
| Accumulated amortisation | (11,680) | (110,568) | (27,477) | (59,659) | (115,257) | - | (324,641) |
| Balance as at 31 March 2022 | 29,339 | 42,132 | 8,341 | 12,345 | 67,825 | 7,640 | 167,622 |
The item Translation difference refers to the variations in exchange rates for Brazilian companies (SIR Empreendimentos e Participações L.t.d.a., Lavsim Higienização Têxtil S.A., Maxlav Lavanderia Especializada S.A., Vida Lavanderias Especializada S.A., Aqualav Serviços De Higienização Ltda) and Turkish ones (Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi e Ergülteks Temizlik Tekstil Ltd. Sti.).
The increases at 31 March 2022 mainly refer to investments in linen, included in the item Other assets, equal to Euro 9,741 thousand of which 8,633 thousand relating to the Italy area and Euro 1,108 thousand relating to the Brazil area. These investments are aimed at an increasingly efficient management of the inventories.
The item Land and Buildings records an increase of Euro 1,377 thousand mainly attributable to the change in the value of the right of use asset for the inflationary adjustment of lease contracts following the application of the IFRS16 accounting standard.
The Plant and Machinery item records an increase of Euro 731 thousand and regards investments made in the Turkey area for Euro 420 thousand.
The item Industrial and commercial equipment shows increases of Euro 1,043 thousand, of which Euro 469 thousand relating to the purchase of surgical instruments and Euro 574 thousand for the purchase of industrial equipment.
The increases in the item Fixed assets in progress relate to works on third party assets still under construction at 31 March 2022 for Euro 350 thousand in the Italy area, mainly relating to the washhire division, and Euro 146 thousand in the Brazil area.
The reclassifications of the item Fixed assets in progress show decreases of Euro 302 thousand relating to Euro 185 thousand to the entry into operation of new plants and machinery by the Parent Company.
This item changed as follows:
| (thousands of Euros) | Trademarks, Software, Patents and Intellectual Property Rights |
Customer contracts portfolio |
Other intangible assets |
Assets under construction and payments on account |
Total |
|---|---|---|---|---|---|
| Historical cost | 7,712 | 8,368 | 991 | 340 | 17,411 |
| Accumulated amortisation | (6,370) | (5,752) | (812) | - | (12,934) |
| Balance as at 31 December 2021 |
1,342 | 2,616 | 179 | 340 | 4,477 |
| Translation differences | 24 | - | 31 | 1 | 56 |
| Increases | 59 | - | - | 3 | 62 |
| Decreases | - | - | - | - | - |
| Amortisation | (158) | (112) | (24) | - | (294) |
| Impairments (reinstatements) |
- | - | - | - | - |
| Reclassifications | 132 | - | - | (132) | - |
| Balance as at 31 March 2022 |
1,399 | 2,504 | 186 | 212 | 4,301 |
| Historical cost | 7,993 | 8368 | 1,079 | 212 | 17,652 |
| Accumulated amortisation | (6,594) | (5,864) | (893) | - | (13,351) |
| Balance as at 31 March 2022 |
1,399 | 2,504 | 186 | 212 | 4,301 |
The increases in the item Trademarks, Software and Patent rights and use of intellectual property are mainly attributable to the purchase by the Parent Company of software licenses. In addition, the reclassification from Assets in progress and advances to the item Trademarks, Software and Patent rights and use of intellectual property relating mainly to the entry into operation of new software licenses by the Parent Company should be noted.
Goodwill is allocated to the Servizi Italia Group's cash generating units identified on the basis of geographical area, which reflects the areas of operation of the companies acquired over the years.
In particular, goodwill is allocated by geographical area as follows:
| (thousands of Euros) | as at 31 December 2021 |
Increases/ (Decreases) |
Translation differences |
as at 31 March 2022 |
|---|---|---|---|---|
| CGU Italy | 51,668 | - | - | 51,668 |
| CGU Turkey | 4,497 | - | (290) | 4,207 |
| CGU Brazil | 6,519 | - | 1,241 | 7,760 |
| Total | 62,684 | - | 951 | 63,635 |
The change in the period is exclusively attributable to exchange differences from the translation into Euros of goodwill arising from acquisitions in Brazil and Turkey.
With the exception of the portion of goodwill relating to CGU Steritek (surgical instrument sterilisation operating segment), all other goodwill is included in the wash hire operating segment, as defined for the purposes of the sector reporting required by IFRS 8.
At the date of approval of this interim report, no facts or events have taken place that may indicate an impairment loss in the goodwill recognised and tested for impairment at the end of 2021.
This item changed as follows:
| (thousands of Euros) | as at 31 March 2022 | as at 31 December 2021 |
|---|---|---|
| Opening balance | 24,988 | 22,483 |
| Increases/(decreases) | - | 524 |
| OCI changes | 871 | 650 |
| Revaluations/(write-downs) | 696 | 1,923 |
| Translation differences | (73) | (592) |
| Closing balance | 26,482 | 24,988 |
| of which recognised among provisions for risk and charges | (2,631) | (2,498) |
| of which recognised among equity-accounted investments | 29,113 | 27,486 |
The revaluations and write-downs include the portions of profits and losses recorded by the investees in the period.
The item OCI changes, positive for Euro 871 thousand, corresponds the portion attributable to the Servizi Italia Group, within the scope of application of the equity method, of the change in fair value of hedging derivatives subscribed by the company Ospedal Grando S.p.A. (subsidiary of the jointly controlled company Finanza e Progetti S.p.A.).
It should be noted that the positive results recorded in the year represented by the revaluations net of the write-downs are mainly attributable to the results achieved by the Finanza e Progetti Group and by the result recorded by the companies PSIS S.r.l. and SAS Sterilizasyon Servisleri A.Ş.
With reference to the equity investment in Shubhram Hospital Solutions Private Limited, in consideration of the commitments assumed with the local Indian partner, the portion of the losses exceeding the value of the equity investment was booked to the item Provisions for risks and charges.
The item is broken down as follows:
| (thousands of Euros) | as at 31 March 2022 | as at 31 December 2021 |
|---|---|---|
| Substitute tax Italian Decree Law 185/2008 subsequent years | 1,219 | 1,931 |
| Aqualav receivable in escrow account | 1,513 | 1,271 |
| Other non-current assets | 430 | 293 |
| Total | 3,162 | 3,495 |
The change in the item is mainly due to the release to the income statement of the substitute taxes based on art. 15, paragraphs 10-12 of the Law Decree 185/08, paid in order to obtain the tax recognition of the goodwill values that emerged during the business combination. These substitute taxes were recognised as an advance on current taxes and entered into the Income Statement within the time frame when the company benefits from the tax deductions related to the respective goodwill amounts. The change in "Aqualav receivable in escrow account" is attributable to the appreciation of the exchange rate of the Real against the Euro.
Trade receivables amount to Euro 69,102 thousand as at 31 March 2022, up by Euro 3,963 thousand compared to 31 December 2021.
From the start of the year to 31 March 2022, the Servizi Italia Group carried out some transactions involving the disposal of the receivables described below:
The item is broken down as follows:
| (thousands of Euros) | as at 31 March 2022 | as at 31 December 2021 |
|---|---|---|
| Due from others | 10,400 | 8,034 |
| Deferred income | 3,009 | 1,360 |
| Guarantee deposits receivable | 180 | 191 |
| Accrued income | 10 | - |
| Total | 13,599 | 9,585 |
The item Receivables from others is mainly composed of the VAT receivable of the Parent Company requested for reimbursement for a total of Euro 6,383 thousand (Euro 4,711 as at 31 December 2021) and, for the remainder, mainly of advances and receivables from social security institutions, all due within the year . Prepayments increased primarily as a result of rentals and insurance premiums that were recognised at the beginning of the year. The item Guarantee deposits refers to energy utilities and rental contracts.
As at 31 March 2022, the fully subscribed and paid-up share capital of Servizi Italia S.p.A. was broken down into 31,809,451 ordinary shares with a nominal amount of Euro 1 each. In the first three months of 2022, the Parent Company purchased 132,450 treasury shares for Euro 261 thousand, equal to 0.82% of the share capital, with an average purchase price of Euro 1.97 per share. Following these transactions, the Company held 2,132,858 treasury shares amounting to 6.70% of the share capital as at 31 March 2022. The value of the treasury shares held at 31 March 2022 of Euro 5,656 thousand was classified as a reduction in shareholders' equity.
In addition, note should be taken of the positive impact, for Euro 5.692 thousand, on the translation reserves of the equity of the Group that prepare their financial statements in foreign currency and mainly as a result of the appreciation of the Brazilian Real during the period.
The item is broken down as follows:
| (thousands of Euros) | as at 31 March 2022 | as at 31 December 2021 | ||||
|---|---|---|---|---|---|---|
| Current | Non-current | Total | Current | Non-current | Total | |
| Bank borrowing | 82,665 | 26,480 | 109,145 | 72,833 | 31,398 | 104,231 |
| Payables due to other lenders | 3,503 | 27,902 | 31,405 | 3,418 | 27,352 | 30,770 |
| Total | 86,168 | 54,382 | 140,550 | 76,251 | 58,750 | 135,001 |
The portion of payables due within 12 months relating to the item Payables to banks and other lenders as at 31 March 2022 shows an increase of Euro 9,917 thousand, going from Euro 76,251 thousand at 31 December 2021 to Euro 86,168 thousand at 31 March 2022. This increase was brought about by the payment of the expired mortgage instalments for the period and a greater recourse to self-liquidating credit lines as well as the increase in the payable linked to the application of IFRS 16 in the period. Current payables to banks and other lenders due within 12 months show a decrease from Euro 58,750 thousand as at 31 December 2021 to Euro 54,382 thousand as at 31 March 2022. This change, equal to Euro 4,368 thousand, is mainly connected to the short-term reclassification of the loan instalments.
The item is broken down as follows:
| (thousands of Euros) | as at 31 March 2022 | as at 31 December 2021 |
|---|---|---|
| Opening balance | 6,360 | 6,327 |
| Provisions | 145 | 1,884 |
| Payments/resolutions | (270) | (2,008) |
| Translation differences | 301 | 157 |
| Closing balance | 6,536 | 6,360 |
The item includes the provision for coverage of losses on equity investments for Euro 2.632 thousand, which refers to the investment in Shubhram Hospital Solutions Private Limited, and corresponds to the portion of the losses exceeding the value of the equity investment that will be covered in consideration of the commitments assumed with the local partner for the development of business in the Indian market. It should also be noted that of the provisions recognized in the period equal to Euro 145 thousand, Euro 130 thousand relate to the losses attributable to the Servizi Italia group recorded by the equity investment Shubhram Hospital Solutions Private Limited.
The uses for the period concern the partial reversal of the provision for onerous contracts (at 31 March 2022 equal to Euro 752 thousand), the outcome of the estimates made in relation to the provisions of the international accounting standard IAS 37 regarding onerous contracts by the Parent Company. The reversal, equal to Euro 225 thousand, is aimed at offsetting the negative operating margins for the period estimated when preparing the consolidated financial statements as at 31 December 2021, in order to neutralize the impact on the Group's profitability. Based on the projections made to estimate the provision, and according to the average terms of the contracts examined, use of Euro 412 thousand of the amount allocated within the next 12 months.
It should also be noted that the portion of post-employment benefits corresponding to the perimeter of employees pertaining to the restructuring project of Ariccia, the relevant information for which
was provided in the financial statements as at 31 December 2021, was also classified under current liabilities.
The item is broken down as follows:
| (thousands of Euros) | as at 31 March 2022 | as at 31 December 2021 |
|---|---|---|
| Payable for Wash Service S.r.l. put option | 389 | 388 |
| Total | 389 | 388 |
The item relates to the payable associated with the put option to the shareholders of Wash Service S.r.l.
The item is broken down as follows:
| (thousands of Euros) | as at 31 March 2022 | as at 31 December 2021 |
|---|---|---|
| Due to suppliers | 73,835 | 68,931 |
| Due to associates | 2,085 | 1,843 |
| Due to parent company | 4,424 | 4,703 |
| Payables to companies under the control of the parent companies | 553 | 208 |
| Total | 80,897 | 75,685 |
The item is broken down as follows:
| (thousands of Euros) | as at 31 March 2022 | as at 31 December 2021 |
|---|---|---|
| Payable to Area S.r.l. | - | 200 |
| Deferred price Aqualav Serviços De Higienização Ltda | 14 | 12 |
| Payable for Steritek S.p.A. put option | 1,846 | 1,843 |
| Payables to Wash Service S.r.l. shareholders | - | 399 |
| Total | 1,860 | 2,454 |
The change in the item is related in particular to the payment of the last price tranche for 90% of the share capital of Wash Service S.r.l. purchased in 2019, as well as to the payment of the remaining tranche of the acquisition from Area S.r.l. of the shares relating to the company Brixia S.r.l.
The table below provides a breakdown of other current payables.
| (thousands of Euros) | as at 31 March 2022 | as at 31 December 2021 |
|---|---|---|
| Deferred income and accrued expenses | 232 | 278 |
| Payables due to social security and welfare institutions | 4,499 | 5,202 |
| Due to employees | 10,697 | 9,723 |
| Employee/professional IRPEF (personal income tax) payable | 1,520 | 2,741 |
| Other payables | 1283 | 785 |
| Total | 18,231 | 18,729 |
The change in the item is mainly related to the payable to employees which, with respect to the comparison period, includes the progressive accrual of the related thirteenth month pay and bonuses.
As of 31 March 2022, the consumption of raw materials amounted to Euro 7,214 thousand, an increase of Euro 339 thousand compared to the previous period, mainly as a result of the higher costs incurred for consumables and fuels, which were negatively affected by the increasing price dynamics. Consumption mainly refers to the purchase of washing products, chemicals, packaging, spare parts, as well as disposables and PPE products.
The item is broken down as follows:
| (thousands of Euros) | from 1 January to 31 March | ||
|---|---|---|---|
| 2022 | 2021 | ||
| External laundering and other industrial services | 8,156 | 7,336 | |
| Travel and transport | 3,779 | 3,379 | |
| Utilities | 5,191 | 3,149 | |
| Administrative costs | 866 | 938 | |
| Consortium and sales costs | 1,507 | 1,480 | |
| Personnel expense | 667 | 560 | |
| Maintenance | 2,224 | 2,025 | |
| Use of third-party assets | 676 | 697 | |
| Other services | 369 | 356 | |
| Total | 23,435 | 19,920 |
Costs for services recorded an increase of 17.6% compared to the same period of the previous year equal to Euro 3,515 thousand, going from Euro 19,920 thousand in the first quarter of 2021 to Euro 23,435 thousand in the first quarter of 2022. The increase is also seen in terms of incidence on revenues, which went from 32.9% in the first three months of 2021 to 35.8% in the first three months of 2022, mainly due to the significant increases in energy tariffs recorded starting from last quarter of 2021. The item External services for laundries and other industrial services recorded an increase of Euro 820 thousand, mainly deriving from the changed logistical and production structure aimed at managing the laundry and cloakroom services connected to the launch of new tenders. Travel and transport costs show an increase of Euro 400 thousand compared to 31 March 2021, mainly generated by the Parent Company, and specifically to the hotel sector which returns to full activity compared to the first quarter of 2021, which was heavily affected by the Covid emergency, and to new tenders launched in the north-east of Italy (started in 2021, now fully operational). The costs relating to Utilities show an increase equal to Euro 2,042 thousand compared to the same period of the previous financial year or a growth of 2.7% in terms of incidence on revenues, due to the continuous significant rise in prices that began at the end 2021, and which have further worsened following the destabilizing macroeconomic and geopolitical context in place.
The item is broken down as follows:
| (thousands of Euros) | from 1 January to 31 March | |
|---|---|---|
| 2022 | 2021 | |
| Costs for directors' fees | 311 | 284 |
| Salaries and wages | 15,204 | 14,314 |
| Temporary work | 699 | 461 |
| Social security charges | 4,993 | 4,747 |
| Employee severance indemnity | 1,110 | 940 |
| Other costs | 59 | 59 |
| Total | 22,376 | 20,805 |
The item Personnel costs went from Euro 20,805 thousand as at 31 March 2021 to Euro 22,376 thousand as at 31 March 2022, recording an increase of Euro 1,571 thousand. The increase is attributable both to an increase in costs relating to the item Wages and salaries, due to the increase in the number of Group employees, and to an increase relating to the item Temporary work, mainly attributable to the hotel sector and the entry into operation of tenders in north-east Italy started in the previous year.
| Units as of 31 March | ||
|---|---|---|
| 2022 | 2021 | |
| Executives | 17 | 17 |
| Middle managers | 38 | 40 |
| White-collar staff | 294 | 281 |
| Blue-collar staff | 3,360 | 3,328 |
| Total | 3,709 | 3,666 |
The item is broken down as follows:
| (thousands of Euros) | from 1 January to 31 March | |
|---|---|---|
| 2022 | 2021 | |
| Amortisation of intangible assets | 293 | 359 |
| Depreciation of property, plant and equipment | 13,546 | 12,844 |
| Impairment and provisions | (12) | 105 |
| Total | 13,827 | 13,308 |
The item Amortisation, depreciation and write-downs recorded an increase compared to the same period of the previous year of Euro 519 thousand, from Euro 13,308 thousand in the first three months of 2021 in the same period of 2022. The change is mainly contextualized by the increase in the item Depreciation of tangible fixed assets, which goes from Euro 12,844 thousand as of 31 March 2022 to Euro 13,546 thousand in the same period of 2022 against the greater investments made in Italy and Brazil during 2021 and in the first quarter of 2022.
Financial income is broken down as follows:
| (thousands of Euros) | from 1 January to 31 March | |
|---|---|---|
| 2022 | 2021 | |
| Bank interest income | 11 | 6 |
| Default interest | 16 | 64 |
| Interest income on loans to third-party companies | 129 | 100 |
| Other financial income | 13 | 8 |
| Exchange rate earnings | 168 | - |
| Total | 337 | 178 |
Financial expenses are composed as follows:
| (thousands of Euros) | from 1 January to 31 March | |
|---|---|---|
| 2022 | 2021 | |
| Interest expense and bank commission | (542) | (480) |
| Interest and expense to other lenders | (36) | (35) |
| Financial expense on employee benefits | (8) | (7) |
| Exchange rate losses | - | (107) |
| Other financial expenses | (505) | (524) |
| Total | (1,091) | (1,153) |
The increase in the item Financial income is mainly attributable to exchange gains recorded in the period for Euro 168 thousand relating primarily to the appreciation of the Real against the Euro recorded with respect to the comparison period. The main change relating to financial expenses is attributable to the item Exchange losses recorded in the comparison period relating to the recorded depreciation of the Turkish Lira against the Euro.
| (thousands of Euros) | 31 March 2022 | 31 December 2021 | 31 March 2021 |
|---|---|---|---|
| Cash and cash equivalents in hand | 27 | 21 | 25 |
| Cash at bank | 3,891 | 3,196 | 4,725 |
| Cash and cash equivalents | 3,918 | 3,217 | 4,750 |
| Current financial receivables | 5,664 | 6,087 | 6,078 |
| Current due to banks and other lenders | (86,168) | (76,251) | (82,495) |
| of which Financial liabilities under IFRS 16 | (3,382) | (3,285) | (3,432) |
| Current net financial debt | (80,504) | (70,164) | (76,417) |
| Non-current due to banks and other lenders | (54,382) | (58,750) | (61,730) |
| of which Financial liabilities under IFRS 16 | (27,881) | (27,287) | (28,391) |
| Non-current net financial debt | (54,382) | (58,750) | (61,730) |
| Net financial debt | (130,968) | (125,697) | (133,397) |
The change in net financial debt at 31 March 2022 compared to 31 December 2021 includes, among other things, investments in materials, primarily textile and linen products to enter into the production process, for approximately Euro 12.3 million as well as the payment of the fifth and last instalment of the price for 90% of the company Wash Service S.r.l. for Euro 0.4 million and financial contributions in jointly controlled companies for a total of Euro 1.0 million. The consolidated net financial position therefore changes from Euro 125,697 thousand at 31 December 2021 to Euro 130,968 thousand at 31 March 2022 with a negative change equal to Euro 5,271 thousand showing however a positive change equal to Euro 2,429 thousand compared to 31 March 2021. Furthermore, it should be remembered that in the first quarter of 2021 there was also the collection of the price for the sale of the workwear branch for approximately Euro 9.5 million, an element of an extraordinary nature in the 2021 financial year.
Also shown below is the total financial debt drawn up pursuant to the ESMA Recommendation of 4 March 2021 which is applicable from 5 May 2021, in which the value of "Other current financial liabilities" is recorded under the item "Current financial debt" and "the value of "Other non-current financial liabilities", as well as the summary of the Group's direct and indirect financial debt is recorded under item "Trade and other non-current payables".
| (thousands of Euros) | as at 31 March 2022 |
as at 31 December 2021 |
as of 31 March 2021 |
|---|---|---|---|
| A. Cash and cash equivalents | 3,918 | 3,217 | 4,750 |
| B. Cash and cash equivalents | - | - | - |
| C. Other current financial assets | 5,664 | 6,087 | 6,078 |
| D. Cash and cash equivalents (A)+(B)+(C) | 9,582 | 9,304 | 10,828 |
| E. Current financial debt (including debt instruments, but excluding the current portion of non-current financial debt) |
(50,553) | (40,012) | (49,174) |
| F. Current portion of non-current borrowings | (37,475) | (38,693) | (34,096) |
| of which Financial liabilities under IFRS 16 | (3,382) | (3,285) | (3,432) |
| G. Current financial debt (E) + (F) | (88,028) | (78,705) | (83,270) |
| H. Current net financial debt (G) - (D) | (78,446) | (69,401) | (72,442) |
| I. Non-current financial debt (excluding the current portion and debt instruments) |
(54,382) | (58,750) | (61,730) |
| of which Financial liabilities under IFRS 16 | (27,881) | (27,287) | (28,391) |
| J. Debt instruments | - | - | - |
| K. Trade and other non-current payables | (389) | (388) | (2,214) |
| L. Non-current financial debt (I) + (J) + (K) | (54,771) | (59,138) | (63,944) |
| M. Net financial debt (H) + (L) | (133,217) | (128,539) | (136,386) |
The Chairman of the Board of Directors
(Roberto Olivi)
––––––––––– o –––––––––––
The Financial Reporting Manager Angelo Minotta states pursuant to paragraph 2, Article 154 bis of the Consolidated Law on Finance that the accounting information presented in this document corresponds to the documented results, books and accounting entries.
The Financial Reporting Manager
(Angelo Minotta)
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