Notes to the Consolidated Financial Statement

 

22. Financial liabilities

 

 

2010

2009

2010

2009

€ 000

Fair values

Fair values

Balance sheet values

Balance sheet values

Non-current

 

 

 

 

   Bank loan

14,701

20,081

16,000

23,000

   Subordinated loan

41

79

44

89

   Finance lease liabilities

507

478

565

513

  Total

15,249

20,639

16,609

23,601

 

 

 

 

 

Current

 

 

 

 

   Bank loan

5,797

5,797

6,000

6,000

   Subordinated loan

41

73

44

82

   Finance lease liabilities

636

716

662

745

  Total

6,474

6,586

6,706

6,827

Total

21,723

27,225

23,316

30,429

         

 

The fair value of loans has been calculated by discounting the loan capital on the balance sheet date using a discount rate of 7.86%, which has been determined with regard to the industry's general risk level.

On 3 February 2009, Digia signed a three-year syndicated loan agreement that replaced the company's prior loans in their entirety. The loan agreement is financed by Pohjola Bank, Nordea Bank and Varma. In addition to a three-year bank-financed package of EUR 42 million, the package included EUR 8 million in re-borrowing of pension contributions. There is also a maximum EUR 5 million credit limit. 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's loan covenant terms were modified during the period to stipulate that the company is allowed to distribute a maximum of 50 per cent of the consolidated net profit for 2010 for dividends in 2011.

During the financial year, the company repaid EUR 7.0 million in loans, reducing its interest-bearing liabilities to EUR 22.0 million. The loans have floating interest rates tied to Euribor, plus a margin. The average interest rate of the loans in 2010 was 2.8% (3.4% in 2009). The shares of Digia Finland Ltd and Digia Financial Software Ltd are pledged as collateral for the loans.

A subordinated loan has been granted by TEKES for product development. The loan has a fixed interest rate, which ranged between 1.0% and 3.0% until 31 December 2010. The effective interest rates on finance lease liabilities during the fiscal year was 4.48% (4.99% in 2009). 

Interest-bearing liabilities fall due as follows:

Year, € 000

2010

2009

2010

-

6,827

2011

6,706

6,447

2012

14,886

15,640

2013 1,194  1,515

Later

530

0

Total

23,316

30,429

 

The tables below describe agreement-based maturity analysis results for 2010 and the 2009 comparison period. The figures are undiscounted and include interest payments and the repayment of loan capital:


€ 000
31 Dec 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

           

 


€ 000
31 Dec 2009

Balance sheet values

Cash flow

Less than 1 year

1–2 years

2–5 years

Bank loans 

29,000

30,715

6,872

6,675

17,169

Subordinated loans

170

174

84

45

45

Finance lease liabilities

1,259

1,311

785

410

116

Total

30,429

32,200

7,741

7,130

17,330