New Wave Group AB Annual_report_2018_EN_HQ | Page 64

NWG // FINANCIAL INFORMATION
Proposed distribution of profit
The following is at the disposal of the
annual general meeting:
SEK
Retained earnings
Share premium reserve
Result for the year
Total
1 234 511 124
48 017 672
193 302 832
1 475 831 628
The Board proposes a dividend of SEK
2.00 (1.70) per share, corresponding
to SEK 132,687,086 (112,784,023),
and that SEK 1,343,144,542 is carried
forward.
The Board of Directors'
statement regarding
distribution of profit
Justification
Consolidated equity has been calcu-
lated according to the IFRS standards
as adopted by the EU, and in accor-
dance with Swedish law through the
application of the Swedish Financial
Reporting Board’s recommendation,
RFR 1 Supplementary Accounting
Rules for Corporate Groups. The Parent
Company’s equity has been calculated
according to Swedish law and through
the application of the Swedish Financial
Reporting Board’s recommendation,
RFR 2 Accounting for Legal Entities.
The proposed distribution of profit
corresponds to 37 % of the Group’s result
for the year, which is in line with the stated
objective that dividend should equate to
40 % of the Group’s profits for the year
over one business cycle. Investment
plans, consolidation requirements,
064 // ANNUAL REPORT
liquidity and overall position have been
taken into account. The Board finds that
there is full coverage of the Company’s
restricted equity following the proposed
distribution of profit.
The Board also finds that the
proposed dividend to shareholders is
justified with regard to the parameters
stated in chapter 17, section 3, para-
graphs 2 and 3 of the Companies Act (the
nature, scope, and risks of the business,
and
consolidation
requirements,
liquidity, and overall position).
In relation to this, the Board would like
to stress the following:
The nature, scope and risks
of the business
The Board deems that Company equity
and consolidated equity following the
proposed distribution of profit will be
sufficient in relation to the nature, scope,
and risks of the business. In relation to
this, the Board takes into account the
Company’s and the Group’s historical
and budgeted development, investment
plans, and the economic situation.
Consolidation requirements
The Board has undertaken a compre-
hensive assessment of the Company’s
financial position and its ability to
honour its future commitments. The
proposed dividend represents 6.9 % of
the Company’s equity and 3.9 % of conso-
lidated equity. The objective stated with
regard to the Group’s capital structure for
an equity ratio of at least 30 % is retained
following the proposed dividend. The
Company’s and the Group’s equity ratio is
good. Against this background, the Board
considers that the Company and the
Group have the necessary conditions
for taking future business risks and to
withstand any losses. Planned invest-
ments have been taken into account in
determining the proposed dividend.
The distribution of profit will have no
negative effect on the Company’s and the
Group’s ability to make further commer-
cially motivated investments according
to the adopted plans.
Liquidity
The proposed distribution of profit will
not affect the Company’s and the Group’s
ability to honour its payment obligations
on time. The Company and the Group
have access to liquid asset reserves in the
form of both short and long-term credit.
The credit can be obtained at short
notice, which means that the Company
and the Group are prepared to overcome
liquidity variations as well as any unex-
pected events.
Overall position
The Board has evaluated all other known
conditions which may be of significance
for the Company’s and the Group’s
financial position and which have not
been considered within the framework
of that which has been stated above.
In relation to this, no circumstance
has arisen which makes the proposed
dividend seem unjustifiable.