Background
Financial Statement

Notes to the company balance sheet

 

1 - Intangible fixed assets


The movement per category for intangible fixed assets for the year 2017/2018 is as follows:

  Research and
development costs
Total
2017 / 2018
     
Purchase value 879 879
Cumulative depreciation -536 -536
     
Book value as per July 1st 343 343
     
Investments 3,493 3,493
Depreciation -268 -268
     
Movements 2017 / 2018 3,225 3,225
     
Purchase value 4,372 4,372
Cumulative depreciation -804 -804
     
Book value as per 30 June 3,568 3,568
     

 

2 - Tangible fixed assets


The composition and movement per category for tangible fixed assets for the year 2017/2018 is as follows:

  Company buildings
and land
Total
2017 / 2018
     
Purchase value 25,055 25,055
Cumulative depreciation -11,932 -11,932
     
Book value as per July 1st 13,123 13,123
     
Investments 58 58
Depreciation -837 -837
     
Balance 12,344 12,344
     
Purchase value 25,113 25,113
Cumulative depreciation -12,769 -12,769
     
Book value as per 30 June 12,344 12,344
     

 

3 - Financial fixed assets


The movement per category of financial fixed assets for the year 2017/2018 is as follows:

  Partici-
pations
in group
companies
Receivables
in group
companies
Other
receivables
Receivables
on
Association
HZPC
Deferred
tax
receivables
Other
securities
Other
receivables
Total
2017 / 2018
                 
Book value as
per July 1st
41,042 2,664 5 303 1,927 25 - 45,966
                 
IInvestments/increase - 150 - 72 - - 403 625
Result of participating
interests
7,923 - - - - - - 7,923
Exchange rate fluctuations -545 - - - - - - -545
Depreciation/
repayments
- - - -126 -144 - -18 -288
Provision for participating
interests
1,496 - - - - - - 1,496
               
Book value as
per 30 June
49,916 2,814 5 249 1,783 25 385 55,177
                 

The receivables from group companies have a term between 3 years and 8 years. Interest is charged on the receivable. This varies from 4% to 6%.

4 - Other receivables and accrued income

 

  30-06-2018 30-06-2017
     
Grant to be claimed 38 -
     
  38 -

 

5 - Shareholders’ equity


The movement per category of shareholder equity is as follows:

Equity Issued and
called up
capital
Share
premium
reserve
Other
legal
reserves
Reserve
conversion
differences
Other
reserve
Total
             
Book value as of 1 July 15,675 1,433 1,403 -52 30,793 49,252
             
Movements in financial
year 2017/2018
           
Dividends - - - - -3,135 -3,135
Result of financial year - - - - 4,706 4,706
Exchange rate fluctuations - - - -545 - -545
Other movements - - 3,442 - -3,442 -
             
Status as of 30 June 15,675 1,433 4,845 -597 28,922 50,278
             


ISSUED CAPITAL
The authorised capital on the balance sheet date amounts to EUR 50,000,000 (2016/2017 EUR 50,000,000) and consists of 2,500,000 ordinary shares with a nominal value of EUR 20 each, with 783,725 ordinary shares being issued. The value of the paid and called-up capital amounts to EUR 15,674,500 (EUR 15,674,500 at the end of 2016/2017).

SHARE PREMIUM RESERVE
The share premium concerns the income from the issuing of shares in so far as this exceeds the nominal value of the shares (above par income).

OTHER LEGAL RESERVES
Other legal reserves consist of a legal reserve for participating interests and the legal reserve for development costs.

The legal reserve for participating interests relates to companies that are valued in accordance with the equity method. The reserve concerns the difference between the participating interests’ retained profit and direct changes in equity, as determined on the basis of the parent company’s accounting policies, and the share thereof that the parent company may distribute. As to the latter share, this takes into account any profits that may not be distributable by participating interests that are Dutch limited companies based on the distribution tests to be performed by the management of those companies.
 
The legal reserve for development costs relates to the formed reserve of the not yet written off part of the capitalized development costs.
 
The legal reserve is determined on an individual basis.

 

FOREIGN CURRENCY TRANSLATION RESERVE
Exchange gains and losses arising from the translation of foreign operations from functional to reporting currency are recorded in this legal reserve. In the case of the sale of a participating interest, the associated accumulated exchange differences are transferred to other reserves.

OTHER RESERVES
At the General Meeting, it will be proposed to approve the following appropriation of the 2017/2018 result after tax: declaration of a dividend of EUR 3.1 million and addition of the remaining amount of EUR 1.6 million to the other reserves. The change amounting to EUR 3,442,000 refers to the donation to the legal reserve.

PROPOSAL FOR RESULT
The General Meeting of Shareholders will be asked to approve the following appropriation of the 2017/2018 result after taxation: an amount of EUR 1,570,000 to be added to the other reserves and the remaining amount of EUR 3,134,900 to be paid out as dividends. Per share certificate, EUR 4.00 is available. This proposal is recorded in the balance sheet under the current liabilities.

6 - Other debts and accrued liabilities

  30-06-2018 30-06-2017
     
Wages and salaries to be paid 320 467
Pension liabilities 14 -
Provision lawsuits 517 -
Other amounts 217 200
     
  1,068 667

 

7 - Share in result in participating interests after tax

This relates to the share in result the company has in participating interests of which EUR 8,956,000 (2016/2017: EUR 11,820,900): relates to group companies. The other part concerns results in minority interests amounting to EUR 1,033,000 negative.

8 - Other income and expenses after tax

The other after-tax result concerns the regular costs for conducting holding activities. These costs encompass personnel costs, other corporate costs, including legal costs, depreciation and interest assets/liabilities.

Wages and salaries 30-06-2018 30-06-2017
     
Gross staff wages 761 934
Employer’s social security contributions for staff 44 52
Pension premium 74 79
     
  879 1,065
     

 

Specific details for number of FTEs 30-06-2018 30-06-2017
     
Management and Administration 3 3
     

 

At HZPC Holding B.V. there were an average of 3 FTE in service, all working in the Netherlands (previous financial year 3 FTE).

 

Other explanatory notes


FINANCIAL INSTRUMENTS
In the normal course of business, the Company uses financial instruments that expose the Company to market, currency, interest rate, credit and liquidity risks. To manage these risks, the company has developed a policy, including the establishment of a system of credit limits and procedures to reduce the risks of unpredictable adverse developments in financial markets and thus the financial performance of the company.

CREDIT RISK
The Company incurs credit risk on loans and receivables recorded under financial fixed assets, trade and other receivables and cash.

LIQUIDITY RISK
The Company monitors its liquidity position through successive liquidity budgets. The management will ensure that sufficient liquidity is available to meet the obligations.

INTEREST RISK
The Company incurs interest on interest bearing assets and liabilities. Both of these receivables and payables have agreed on variable rate interest rate agreements, which means that the Company is exposed to future cash flows. The interest rate risk on interest-bearing receivables and payables is very limited and therefore the management has taken no additional mitigating measures. In order to limit the interest risk on the credit facility, an interest cap has been implemented as a mitigating measure.

OFF-BALANCE SHEET ASSETS AND LIABILITIES
The Company has liabilities under operating leases and rent for an amount of EUR 124,000. Of this amount, EUR 40,000 has a term of less than one year. The remaining amount concerns an obligation for less than five years.

TAX ENTITY
Together with its subsidiaries within the Netherlands, the Company forms a tax entity for corporate income tax purposes and value-added tax. The standard conditions stipulate that each of the companies is liable for the tax payable by all companies belonging to the tax entity. The fiscal entity does not differ from the fiscal entity in the consolidated financial statement.

REMUNERATION OF MANAGING AND SUPERVISORY DIRECTORS
A statement of the remuneration of the management has been omitted, pursuant to the provisions of Section 383 article 1 of Book 2 of the Dutch Civil Code, final sentence. The remuneration of Supervisory Board members amounts to EUR 72,000 (2016/2017: EUR 76,000).

Joure, 4 October 2018

The Executive Board:
G.F.J. Backx (CEO), Managing Director
H. Verveld (CCO)
J.L. van Vilsteren (CFO)

The Supervisory Board:
M.J. Ubbens, Chairman
C.J. Biemond
M. Kester
E. Kraaijenzank
W. Sinnema