NWG // 2020
The financing agreement means that key ratios ( covenants ) must be met for maintenance of the credit limit . Net debt to credit institutes amounted to SEK 1,629.8 ( 2,401.5 ) million , which gives an available credit of SEK 1,503.4 million .
Net debt decreased by SEK 697.1 million , and amounted to SEK 2,396.4 ( 3,093.5 ) million . The Group ’ s net debt to credit institutes decreased by SEK 771.7 million , while the leasing liabilities increased by SEK 74.6 million . The net debt to equity ratio and net debt in relation to working capital amounted to 62.1 ( 82.8 ) % and 68.9 ( 78.3 ) %, respectively .
The equity ratio improved by 5.0 percentage points compared to the previous year and amounted to 49.0 ( 44.0 ) %.
Personnel and organization
The average number of employees was 2,085 ( 2,592 ), of which 49 % were women and 51 % were men . Of the total number of employees , 404 ( 592 ) work in production .
The production within the New Wave Group is attributable to AHEAD ( embroidery ), Cutter & Buck ( embroidery ), Dahetra , Kosta Boda , Orrefors , Paris Glove , Seger , Termo and Toppoint .
Intangible assets
The Group ’ s intangible assets with indefinite useful life consist of goodwill and trademarks . The useful lives are assessed to be indefinite because they are well established strategic brands in respective markets which the Group intends to maintain and develop further . The brands with greater value , listed at their acquisition values , are well-known brands such as Orrefors and Kosta Boda within Gifts & Home Furnishings as well as mainly Cutter & Buck within Sports & Leisure . The value of the Group ’ s goodwill and trademarks , which are based on local currency and can give rise to currency translation effects in the consolidated financial statements , have been allocated between the cash-generating units they are considered to belong to . These units are also the Group ’ s segments . The value of these intangible assets is reviewed annually to ensure that the value does not deviate negatively from book value , but can be tested more frequently if there are indications that the value has decreased . In an impairment test , the recoverable amount needs to be determined by a calculation of the respective cash-generating unit ’ s value in use . The value in use is based on established cash flow projections for the next five years , and a long-term growth rate , so-called terminal growth . The most important assumptions in determining the value in use include growth rate , operating margin and discount rate
( WACC ). When calculating the discount rate , an assessment of financial factors such as interest rates , borrowing costs , market risk , beta values and tax rates will be carried out . As the cash generating units have different characteristics , each unit is assessed after its commercial factors . The estimated cost of capital ( WACC ) is considered to be representative of all cash generating units .
The cash flow forecasts that form the basis for the impairment test are based on the five year forecast adopted by the Board ( 2021-2025 ) and thereafter a terminal growth of 2.0 ( 3.0 )%. In calculating the present value of expected future cash flows , a weighted average cost of capital ( WACC ) of 10.2 ( 10.2 ) % before tax is used .
Based on the tests and analyzes that have been carried out during the quarter , there is currently no need for impairment . Nor was there any need for impairment for the comparison year .
Related party transactions
Lease agreements exist with related companies . Associated companies to the CEO have purchased goods and received compensation for consultancy services performed . In addition , there are transactions with related parties at immaterial values . All transactions have been made on market terms .
The Parent company
Total revenue for the quarter amounted to SEK 35.9 ( 30.2 ) million . Result before appropriations and tax amounted to SEK -18.8 ( 3.0 ) million . The lower result is related to write-downs of financial fixed assets , where previously made shareholder contributions to cover losses in subsidiaries have been impaired . Cash flow from investing activities amounted to SEK 15.5 (-7.2 ) million . The positive amount is related to intra-Group sales of shares in Group companies . The total assets amounted to SEK 4,286.2 ( 4,791.4 ) million and equity , including the equity portion of untaxed reserves , amounted to SEK 2,083.9 ( 1,993.8 ) million .
Total revenue for the period January-September amounted to SEK 108.6 ( 101.5 ) million . Result before appropriations and tax amounted to SEK -15.9 ( 168.3 ) million . The lower result is related to the fact that no dividends from subsidiaries have been received during the period . Cash flow from investing activities amounted to SEK 11.5 (-9.9 ) million , where the positive amount is related to intra-Group sales of shares in Group companies . Net debt amounted to SEK 1,452.9 ( 2,187.8 ) million . The Parent company ’ s net financing to subsidiaries amounted to SEK 1,518.4 ( 2,087.1 ) million .
12 // Q3