Statement of Financial Position and Financing
The figures presented in the statement of financial position of December 31, 2023, are compared with the statement of the financial position of December 31, 2022 (MEUR).
| Dec. 31, 2023 | Dec. 31, 2022 | |
|---|---|---|
| Non-current assets | 84.6 | 85.0 |
| Current assets | 73.1 | 84.6 |
| Total assets | 157.7 | 169.7 |
| Share capital | 12.9 | 12.9 |
| Other capital | 94.6 | 102.8 |
| Total equity | 107.6 | 115.8 |
| Non-current liabilities | 1.8 | 21.7 |
| Current liabilities | 48.3 | 32.2 |
| Total equity and liabilities | 157.7 | 169.7 |
| Cash flow of the review period | 1–12/2023 | 1–12/2022 |
|---|---|---|
| + profit of the period +/- adjustment of accrual basis items | 5.1 | 11.7 |
| +/- change in net working capital | -3.0 | -2.9 |
| – interest, taxes and dividends | -0.9 | -0.8 |
| = net cash from operating activities | 1.2 | 8.0 |
| – net cash from investing activities | -7.7 | -8.0 |
| – net cash from financing activities | -4.2 | -3.0 |
| = net change in cash and cash equivalents | -10.7 | -3.0 |
The number of gross investments in the period under review was EUR 9.4 million (EUR 9.5 million). Net investments for the review period totaled to EUR 9.2 million (EUR 9.4 million). The total amount of depreciation during the period under review was EUR 9.5 million (EUR 10.7 million). The amount of interest-bearing debt, including finance lease liabilities, was EUR 22.6 million at the end of the reporting period (EUR 22.4 million). Bittium’s equity ratio at the end of the period was 69.6 percent (69.7 percent).
The group’s liquidity remained good despite that the business developed weaker than expected, and the cash flow was clearly negative. Inventories and accounts receivable were at a high level at the end of the financial year. Securing cash flow has not required special adjustment measures, and no significant changes have been identified in the credit risks of customer receivables.
Cash and other liquid assets at the end of the reporting period were EUR 8.3 million (EUR 19.0 million). Net cash flow during the period was EUR -10.7 million. The net cash flow resulted from EUR -4.3 million operating loss, EUR 7.2 million investments made into own R&D, EUR 3.0 million increase in net working capital, and EUR 1.8 million dividend payment as the most significant items weakening the cash flow (EUR -3.0 million including EUR 6.6 million investments made into own product development, and EUR 1.4 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. The 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 September 30, 2025. At the end of the review period, no limits from these facilities were in use. The company has started negotiations to arrange refinancing for financial instruments maturing on May 24, 2024.
Bittium follows a hedging strategy that has the 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.