Financial position and capital expenditure

At the end of the fiscal year, the Digia Group’s consolidated balance sheet total stood at EUR 87.8 (115.4) million and the equity ratio was 47.8 (58.8) per cent. Net gearing was 34.5 (20.2) per cent. At the year-end, the Group’s liquid assets totalled EUR 8.2 (9.7) million.

At the end of the year, the Group had interest-bearing liabilities of EUR 21.9 (23.3) million. These consisted of EUR 20.0 million in loans from financial institutions and EUR 1.9 million in financial leasing liabilities. During the period, the company repaid EUR 2 million in loans from financial institutions.

On 31 October 2011, Digia revised its three-year loan arrangements, replacing the company’s old loan portfolio totalling EUR 17 million. The loan agreement is financed by Pohjola Bank and Nordea Bank. The total sum of the new loan was EUR 22 million, of which the company withdrew EUR 17 million. As part of the financing package, the company committed to covenants concerning the maintenance of the company’s financial standing and liquidity, which were similar to the previous package. One difference lies in the fact that the company can now distribute a maximum of 50 per cent (previously 30%) of the Group’s net profit for the year, without separate agreement. Further information on financing loans is presented in Note 22 to the financial statements.

The Group carries out quarterly impairment testing of goodwill and intangible assets with an indefinite useful life. Impairment testing is described in more detail in the notes to the financial statements, under Note 15 ‘Intangible assets’.

The company has financing, framework and delivery agreements with special terms and conditions for any situation in which control of the company changes hands.

The Group's cash flow from business operations for 2011 was positive by EUR 8.8 million (positive by EUR 11.1 million), cash flow from investments was negative by EUR 2.7 million (negative by EUR 2.0 million) and cash flow from finance was negative by EUR 7.6 million (negative by EUR 9.9 million). Cash flow from operations was negatively affected by the fact that the company paid EUR 2.2 million more in tax than in the previous year. Cash flow from finance was negatively affected by a repayment of loans totalling EUR 2.0 million, as well as by the payment of dividends with a total effect of EUR 5.6 million.

The Group’s total investments into fixed assets were EUR 2.7 (2.0) million. Acquisitions of tangible fixed assets totalled EUR 2.1 (1.7) million.

Return on investment (ROI) for 2011 was -28.7 (19.3) per cent and return on equity (ROE) was -41.9 (18.3) per cent.