CAPITAL TIED UP
Capital tied up in stock amounted to SEK 3,345.3 million and
increased by SEK 535.0 million, compared with last year (SEK
2,810.3 million). The increase is related to the new product
lines as well as continued buildup of stock in North America. In
addition, the currency exchange rates increased the value by SEK
103.8 million. The Group has a well-balanced stock and the level
of service is good. The stock value is expected to be at a higher
level even during the coming quarters due to our extended promo
range. Stock turnover is on par with last year and amounted to
1.0 (1.0) times.
SEK million
Raw materials
Work in progress
Goods in transit
Merchandise on stock
Total
2019-03
48.5
14.9
124.0
3,157.9
3,345.3
million, of which SEK 2,000 million runs until and including
March 2022 and USD 28 million has a maturity which runs until
and including January 2024. The other SEK 500 million has a term
of between three months and six years. The credit facility amount
is limited to and dependent on the value of some underlying assets.
The funding agreement means that financial ratios (covenants)
must be fulfilled in order to maintain the credit facility.
Based on the present forecast, management estimates that the
Group will be able to meet these ratios with a satisfactory margin.
PERSONNEL AND ORGANISATION
2018-03
34.5
10.3
146.7
2,618.8
2,810.3
The number of employees as of 31 March amounted to 2,604
(2,527) of whom 52 % were women and 48 % were men. Of the
total number of employees 605 (602) work in production.
The production contained within New Wave Group is attributable
to AHEAD (embroidery), Cutter & Buck (embroidery), Dahetra,
Kosta Boda, Orrefors, Paris Glove, Seger, Termo and Toppoint.
Accumulated write-down of inventories amounted to SEK 124.5
(106.0) million and write-down related to merchandise on stock
amounted to 3.8 (3.9) %.
RELATED PARTY TRANSACTIONS
There are lease agreements with related companies. Related
companies to the CEO have bought merchandise and received
payments for consulting services performed. In addition, there are
transactions with related parties to immaterial values. All transac-
tions are on market terms.
Accounts receivable amounted to SEK 991.7 (856.5) million
where growth is mainly related to the higher turnover.
INVESTMENTS, FINANCING
AND LIQUIDITY
This quarter’s cash flow from operating activities amounted to SEK
-65.1 (6.6) million. The Group's purchases of goods have been
higher than last year and the lower cash flow is mainly attribu-
table to the timing of payments of these. Cash flow from investing
activities amounted to SEK -38.3 (-39.8) million.
Net debt increased by SEK 922.3 million, of which SEK
633.2 million is attributable to IFRS 16, and amounted to SEK
2,614.5 (1,692.2) million. Net debt to equity ratio and net debt
in relation to working capital amounted to 73.7 (54.5) % and
76.5 (57.7) % respectively, see also the note related to IFRS 16 on
page 26.
The equity ratio decreased by 5.4 percentage points compared to
last year and amounted to 45.9 (51.3) %, where 4.1 percentage
points of the decrease are attributable to IFRS 16.
The Group’s total credit line as of 31 March amounted to SEK 2,761
8