Notes to the Consolidated Financial Statement

 

22. Financial liabilities

€ 000

2011
Fair values

2010
Fair values

2011
Balance sheet values

2010
Balance sheet values

Non-current

 

 

 

 

   Bank loan

13,028

14,701

14,500

16,000

   Subordinated loan

0

41

0

44

   Finance lease liabilities

868

507

942

565

  Total

13,896

15,249

15,442

16,609

 

 

 

 

 

Current

 

 

 

 

   Bank loan

5,320

5,797

5,500

6,000

   Subordinated loan

44

41

44

44

   Finance lease liabilities

851

636

886

662

  Total

6,215

6,474

6,430

6,706

Total

20,111

21,723

21,872

23,316

         

The fair value of loans has been calculated by discounting the loan capital on the balance sheet date using a discount rate of 6.71%, which has been determined with regard to the industry’s general risk level.

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 a part of the financing package, the company committed to covenants concerning the maintenance of the company’s financial standing and liquidity. The loan covenants comprise the following key figures: operating profit before depreciation and amortisation (EBITDA) in relation to net debt, equity ratio and net gearing. 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. The company fulfilled the set loan covenants in 2011.

During the financial year, the company repaid EUR 2.0 million in loans, reducing its interest-bearing liabilities to EUR 20.0 million. The loans have floating interest rates tied to Euribor, plus a margin. The average interest rate of the loans in 2011 was 3.2% (2.8% in 2010). The shares of Digia Finland Ltd and Digia Financial Software Ltd are pledged as collateral for the loans. On 31 December 2011, the book value of pledged shares was EUR 109.4 million.

A subordinated loan has been granted by TEKES for product development. The loan has a fixed interest rate, which was 1.0% until 31 December 2011. The effective interest rate on finance lease liabilities during the fiscal year was 4.51% (4.48%).

Interest-bearing liabilities fall due as follows:

Year, € 000

2011

2010

2011

 -

6,706

2012

6,430

14,886

2013

5,689

1,194

2014 9,752 530

Later

-

-

Total

21,872

23,316

 


The tables below describe agreement-based maturity analysis results for 2011 and the 2010 comparison period. The figures are undiscounted and include interest payments and the repayment of loan capital:

€ 000

 


31.12.2011

Balance sheet values

Cash flow

Less than 1 year

1–2 years

2–5 years

Bank loans

20,000

21,165

6,055

5,395

9,714

Subordinated loans

44

44

44

0

0

Finance lease liabilities

1,828

1,828

886

689

252

Total

21,872

23,037

6,986

6,084

9,967

           

€ 000

 


31.12.2010

Balance sheet values

Cash flow

Less than 1 year

1–2 years

2–5 years

Bank loans 

22,000

22,658

6,514

14,616

1,528

Subordinated loans

89

89

45

44

0

Finance lease liabilities

1,227

1,227

662

342

223

Total

23,316

23,975

7,221

15,002

1,751