At the end of the reporting period, the Digia Group’s consolidated balance sheet total stood at EUR 83.3 million (12/2012: EUR 92.4 million), and the equity ratio was 49.9 (52.6) per cent. Net gearing was 28.9 (27.5) per cent. Period-end cash and cash equivalents totalled EUR 6.5 (8.3) million.
Interest-bearing liabilities amounted to EUR 16.9 (19.8) million at the period end. These consisted of EUR 15.5 million in loans from financial institutions and EUR 1.4 million in financial leasing liabilities.
The Group’s cash flow from business operations for the period was positive by EUR 4.9 (19.9) million. In 2012, cash flow from operations included EUR 12.2 million in cash flow related to the Qt acquisition. Cash flow from investments for the review period was negative by EUR 1.6 (16.2) million. In 2012, cash flow from investments included EUR 14.5 million in cash flow related to the Qt acquisition. Cash flow from finance for the review period was negative by EUR 5.1 (3.6) million. The cash flow from finance was negatively affected by repayment of company loans.
The Group’s investments in fixed assets during the review period totalled EUR 1.6 (0.8) million.
Return on investment (ROI) for the period was -4.4 (11.3) per cent, and return on equity (ROE) was -10.4 (9.8) per cent.
On 19 December 2013, Digia revised its three-year loan arrangements, replacing the company’s old loan portfolio totalling EUR 15 million. The total sum of the new loan was EUR 25 million, of which the company withdrew EUR 15 million. The loan agreement continued to be financed by Nordea Bank and Pohjola Bank.
The Group carries out quarterly impairment testing on goodwill and intangible assets with an indefinite useful life.
The Group made a EUR 0.4 million writedown related to itemised intangible assets allocated to the fourth quarter. After this, it was found necessary to make a EUR 6.6 million writedown related to the goodwill of domestic operations. The writedown derives from a change in the Group’s estimate of the long-term profit forecast for its domestic business operations, on which evaluations must be based according to standards.
Impairment testing is described in further detail in the notes to the financial statements, under Note 15 ‘Intangible assets’.