Financial position and cash flow
Financial position
The equity/assets ratio on 30 June 2018 was 29.2 percent compared to 32.2 percent at year-end. Interest-bearing net debt amounted to SEK 3,592 million compared to SEK 1,216 million at the end of 2017. The average interest rate in the loan portfolio, including derivatives, was 1.6 percent (2.5) on 30 June 2018.
Group liquid funds, including unutilized credit facilities, were SEK 3,253 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 11,035 million compared to SEK 10,468 million on 31 December 2017. SEK 8,406 million (6,273) 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 quarter SEK 503 million (519) was net invested in tangible and intangible fixed assets and investment property. During the period January-June SEK 938 million (824) was net invested in tangible and intangible fixed assets and investment property.
Net investments in project and development properties, which are recognized as inventory items, totaled SEK 905 million (803) during the quarter. During the quarter a number of development rights have been acquired in, among other places, Finland. The remaining net investments were connected to the construction of our own housing developments in Finland and Norway. During the second quarter last year development rights worth SEK 658 million were acquired on Kvarnholmen in Nacka. Net investments in project and investment properties totaled SEK 1,002 million (418) during the period January-June 2018.
Cash flow
April – June 2018
Cash flow from current operations was SEK -191 million (-588), of which cash flow from changes in working capital was SEK -886 million (-1,288). The change in working capital included acquisition of development rights in, among other places, Finland and the erection of our own housing developments in Finland and Norway in Project Development. The corresponding quarter last year included the acquisition of development rights worth SEK 658 million on Kvarnholmen in Nacka.
Cash flow from investment activities was SEK -513 million (-517) and consisted of investments in machines and in operations and investment properties.
Cash flow before financing was SEK -704 million (-1,105).
January – June 2018
Cash flow from current operations was SEK -437 million (983) of which cash flow from changes in working capital was SEK -1,236 million (-7). Included in the change in working capital during the period was the acquisition of building rights in, among other places, Finland as well as the construction of our own developed housing projects in Finland and Norway in business area Project Development. The corresponding period last year contained the acquisition of SEK 658 million in building rights on Kvarnholmen in Nacka as well as the divestiture of properties in Arenastaden, Solna to Fabege.
Cash flow from investment activities was SEK -657 million (-300) and was largely investments in machines and in operations property and investment property. The comparable period included the divestiture of financial assets to Fabege.
Cash flow before financing amounted to SEK -1,094 million compared to SEK 683 million for the same period last year. During the first quarter 2017 the transactions carried out regarding Arenastaden, Solna had a positive effect of around SEK 835 million.
Cash flow from financing operations amounted to SEK 999 million (-1,478) of which SEK -1,180 million (-1,062) consisted of paid dividends.