Statement of Financial Position and Financing
|Dec. 31, 2020||Dec. 31, 2019|
|Total equity and liabilities||158.0||154.2|
|Cash flow of the review period:||Jan.-Dec- 2020||Jan.-Dec. 2019|
|+ profit of the period +/- adjustment of accrual basis items||14.1||14.3|
|+/- change in net working capital||-6.8||-4.2|
|- interest, taxes and dividends||-0.5||-0.4|
|= net cash from operating activities||6.9||9.6|
|- net cash from investing activities||-15.9||-18.6|
|- net cash from financing activities||-1.5||13.2|
|= Net change in cash and cash equivalents||-10.5||4.3|
The amount of gross investments in the period under review was EUR 17.4 million. Net investments for the review period totaled to EUR 17.0 million. The total amount of depreciation during the period under review was EUR 11.4 million. The amount of interest-bearing debt, including finance lease liabilities, was EUR 22.5 million at the end of the reporting period (EUR 22.6 million). Bittium´s equity ratio at the end of the period was 73.1 percent (73.4 percent).
The Group´s liquidity remained good despite the uncertainty caused by the Covid-19 pandemic. Securing cash flow has not required any special adjustment measures and no significant changes have been identified in the credit risks of trade receivables. Cash and other liquid assets at the end of the reporting period were EUR 24.7 million (EUR 35.2 million). Net cash flow during the period was EUR -10.5 million. The net cash flow resulted from EUR 13.6 million investments made into own product development as the most significant item (EUR 4.3 million including as the most significant items the withdrawal of a EUR 20.0 million bank loan, EUR 15.6 million investments made into own product development and the EUR 5.4 million dividend payment).
Bittium has a EUR 20.0 million senior loan and a EUR 10.0 million committed overdraft credit facility agreement with Nordea Bank Finland Plc. Maturity date for the senior loan is May 24, 2024 and the credit limit agreement is valid until May 24, 2024. Bittium has EUR 10.0 million committed overdraft credit facility agreement with OP Corporate Bank Plc valid until May 24, 2022. At the end of the review period, no limits from these facilities were in use.
Bittium follows a hedging strategy that has an objective to ensure the business margins in changing market circumstances by minimizing the influence of exchange rates. According to the hedging strategy principles, the net position in the currency is hedged when it exceeds the euro limit defined in the hedging strategy. The net position is determined based on accounts receivable, accounts payable, order book, and budgeted net currency cash flow.