Annual Report 2009

A N N U A L R E P O R T 2 0 0 9 22 REPORT BY THE BOARD OF DIRECTORS REPORT ON ASSETS AND FINANCIAL MANAGEMENT Assets and Funds The Company’s total assets recognised as at 31 December 2009 in accordance with International Financial Reporting Standards amounted to EUR 254 571 thousand, which means a year-on-year drop by EUR 25 398 thousand, i.e. 9.1%. The decrease resulted mainly from the EUR 28 585 thousand decrease in the closing balance of current assets; inventories dropped by EUR 13 537 thousand and receivables by EUR 8 667 thousand. A lower closing balance of current assets was a direct consequence of the drop in sales during the crisis and it was an important step to maintaining the Company's financial stability. On the other hand, non-current assets experienced a mild increase, by EUR 3 187 thousand, mainly thanks to increased financial investments owing to the purchase of the remaining portion of shares in the Spanish company Transformaciones Metalurgicas, S.A. (35.18%) for EUR 5 745 thousand. In liabilities, the Company experienced a decrease in equity by EUR 6 601 thousand, which was due to the loss incurred in FY 2009. In accordance with the existing legal procedures, upon transition from the local currency to the euro as of 1 January 2009, the Company's Board of Directors revalued the face value per share from SKK 1 000 to EUR 34, rounding to whole euros upward, which increased the registered capital by EUR 1 922 thousand from retained earnings. The Company's total liabilities decreased by EUR 18 797 thousand, i.e. by 18.7%. Trade payables dropped by EUR 15 843 thousand and contributed largely to the aforementioned decrease. Bank loans dropped by EUR 1 337 thousand and liabilities for employee bonuses dropped by EUR 1 490 thousand. Despite the recognised operating loss, the equity to total assets ratio increased to 67.8%, which means an increase of 3.8%. The Company's gearing was at 21.8%. Financial assets Receivables Property, plant and equipment 35% 39% 11% Inventories Other assets 14% 1% 100% Structure of Assets as at 31 Dec 2009