Financial position and cash flow

Financial position

The equity/assets ratio on 31 March 2018 was 33.4 percent compared to 32.2 percent at year-end. Interest-bearing net debt amounted to SEK 1,709 million compared to SEK 1,216 million at the end of 2017. The average interest rate in the loan portfolio, including derivatives, was 2.3 percent (3.1) on 31 March 2018.

Group liquid funds, including unutilized credit facilities, were SEK 4,489 million at the end of the period compared to SEK 5,145 million on 31 December 2017.

At the end of the period Group contingent liabilities, excluding joint and several liabilities in trading and limited partnerships, amounted to SEK 10,630 million compared to SEK 10,468 million on 31 December 2017. SEK 7,935 million (7,750) of contingent liabilities was surety given for credit lines for tenant-owned apartments under production.

Project and development properties

In connection with implementation of IFRS 15 the previous balance item Work-in-progress has been included in the balance item Project and development properties. Recalculation of the financial reports for 2017 is presented on Peab’s website www.peab.com/ifrs. As of 1 January 2017 the recalculated reported amount was SEK 1,203 million.

Investments and divestments

During the period SEK 435 million (305) was net invested in tangible and intangible fixed assets and development property.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 97 million (net divestment with SEK 385 million) during the period.

Cash flow

Cash flow from current operations was SEK -246 million (1,571), of which cash flow from changes in working capital was SEK -350 million (1,281). More tied up working capital in Project Development operations had a negative effect on cash flow in the quarter. The corresponding quarter last year included divestments of properties in Arenastaden to Fabege as well as positive effects from a reduction in accounts receivable.

Cash flow from investment activities was SEK -144 million (217). The corresponding quarter last year included divestments of financial fixed assets to Fabege.

Cash flow before financing amounted to SEK -390 million compared to SEK 1,788 million for the same period last year. The corresponding period last year included transactions in Arenastaden with Fabege for around SEK 835 million.

Cash flow from financing operations, which in the first quarter refers to changes in loans, amounted to SEK 62 million (-1,117).