ANNUAL REPORT Notes
Translation exposure on the balance sheet The Group ’ s net assets are largely in SEK . Of the net assets in foreign currencies on the balance sheet date of 31 December 2015 , approximately SEK 220.4 m are attributable to Norwegian kronor ( NOK ) and SEK 305.4 M to EUR . If the Norwegian krona were to strengthen / weaken by 10 per cent against SEK , the Group ’ s total shareholders ’ equity would increase / decrease by approximately SEK 22.0 m . If the euro were to strengthen / weaken by 10 per cent against SEK , the Group ’ s total shareholders ’ equity would increase / decrease by approximately SEK 30.5 m . At present no currency hedges have been contracted for net assets in the foreign subsidiaries .
Interest rate risk Interest rate risk pertains to the risk that changes in the market interest rates will have a negative effect on the Group ’ s net interest income . The Group ’ s total interest rate risk is low due to its low level of borrowing . According to the Group ’ s finance policy , derivative instruments may not be used to manage interest rate risks .
The Group ’ s interest income and interest expenses are in all material respects dependent on changes in Swedish and Norwegian market interest rates . For most of the Group ’ s operations , a joint Group account exists for management of the Group ’ s liquidity . The Group ’ s interest-bearing liabilities at 31 December 2015 amounted to SEK 126.6 m ( 40.4 ) ( see Note 25 ).
The table below shows the Group ’ s interest-bearing net assets on the respective balance sheet dates . If the market level of interest rates for 2015 had been 1 percentage point higher / lower , the Group ’ s net interest income would have been approximately SEK 0.1 m higher / lower .
Group Interest-bearing net assets ( SEK m ) 31 / 12 / 2015 31 / 12 / 2014
Cash and cash equivalents |
102.9 |
72.4 |
Interest-bearing receivables |
0.5 |
1.2 |
Interest-bearing liabilities |
– 126.6 |
– 40.4 |
Total |
– 23.2 |
33.2 |
Other price risks At 31 December 2015 there were no significant assets or liabilities with exposure to other price risks .
CREDIT RISK The Group ’ s operations may give rise to credit risks . Credit risk pertains to the risk of loss as a result of the failure of a counterparty to fulfil its obligations . Addnode Group ’ s credit risk is considered to be low in general . The maximum credit risk is associated with the carrying amount of financial assets on the consolidated balance sheet .
Addnode Group ’ s credit risk is primarily attributable to trade receivables , which are distributed among a large number of counterparties . Of total trade receivables at 31 December 2015 , 61 per cent ( 68 ) were for amounts of less than SEK 1 m per customer . The Group has established guidelines to ensure that sales are made to customers with suitable credit backgrounds . Historically the Group has had very low costs for bad debts . The provision for bad debts amounted to SEK 1.5 m ( 2.0 ) on 31 December 2015 , corresponding to 0.3 per cent ( 0.5 ) of total trade receivables . Earnings for 2015 were positively affected by SEK 0.1 m (– 1.5 ) through the reversal of previous provisions for bad debts
Concentration of trade receivables ( SEK m )
Group 31 / 12 / 2015 31 / 12 / 2014 Amount Share Amount Share
Trade receivables < SEK 1 m per customer |
263.7 |
61 % |
264.9 |
68 % |
Trade receivables SEK 1 – 5 m per customer |
100.1 |
23 % |
73.4 |
19 % |
Trade receivables > SEK 5 m per customer |
68.3 |
16 % |
49.7 |
13 % |
Total |
432.1 |
100 % |
388.0 |
100 % |
The following table shows the age structure of the trade accounts receivable that were past due on the balance sheet date , but for which no need to recognise impairment was identified :
Group Past due trade receivables ( SEK m ) 31 / 12 / 2015 31 / 12 / 2014
Trade receivables past due 1 – 29 days |
56.6 |
69.4 |
Trade receivables past due 30 – 59 days |
7.8 |
7.3 |
Trade receivables past due 60 – 89 days |
2.4 |
1.5 |
Trade receivables past due 90 days or more |
3.3 |
8.3 |
Total |
70.1 |
86.5 |
LIQUIDITY RISK Liquidity risk pertains to the risk that costs will be higher and financing opportunities limited when loans are to be renegotiated , and that payment obligations cannot be fulfilled due to insufficient liquidity or difficulties in obtaining financing . The Group ’ s liquidity risk is considered to be relatively limited . Liquidity risk is managed by the Group having sufficient cash and cash equivalents and shortterm investments in a liquid market to cover future payments and access to financing through committed overdraft facilities when this is deemed necessary .
At year-end 2015 the Group ’ s cash and cash equivalents amounted to SEK 102.9 m ( 72.4 ). The Group ’ s interest-bearing liabilities on 31 December 2015 amounted to SEK 126.6 m ( 40.4 ). In January 2015 the Parent Company signed an agreement with Nordea for a credit facility of up to SEK 200 m to be used to finance future acquisitions . During the year , SEK 94.0 m of this facility was used , and on the respective due dates the amounts may be re-borrowed in their entirety within the framework of the credit facility ’ s total amount ( see Note 25 ). The credit facility may also be used to pay contingent consideration . The Parent Company has an existing agreement with Nordea for a SEK 100 m bank overdraft facility . Addnode Group has positive cash flow from operating activities , and the Group ’ s cash and cash equivalents on 31 December 2015 as well as the contracted credit facility and bank overdraft facility exceed future payments pertaining to reported provisions and financial liabilities according to the table below , which shows undiscounted future cash flows ( the differences compared with the amounts reported on the consolidated balance sheet for interest-bearing liabilities pertain to the discount effect ).
68