|
2018 / 2019 |
2017 / 2018 |
|
|
|
Licenses to be paid |
1,655 |
2,023 |
Wages and salaries to be paid |
720 |
439 |
Pension contributions |
354 |
356 |
Holiday allowances |
1,406 |
1,292 |
Product related costs |
5,136 |
5,566 |
Growers |
882 |
4,854 |
Other amounts |
4,810 |
4,259 |
|
|
|
|
14,963 |
18,789 |
Other debts and accrued liabilities contain no amounts with a term longer than one year.
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. The maximum credit risk facing the company amounted to EUR 51 million. Exposure to credit risk of the company is primarily determined by the individual characteristics of each customer. In addition, management also considers the demographics of the customer base, including the default risk of the country in which customers operate, because these factors, particularly in the current deteriorating economic conditions, have an influence on the credit risk.
Due to the unrest in the Middle East, the credit risk in this region is high. The receivables from customers from this region are mostly covered. The company has taken the following measures to limit credit risk:
- Safeguard measures such as advance payments, letters of credit and bank guarantees are used regularly;
- Credit limits are actively monitored throughout the season.
- New deliveries for the new season are rarely permitted until debts from the previous season have been paid.
Currency risk
As a result of international activities the company, by way of the receivables and debts recorded in the balance sheet, holds net investments in foreign companies and is exposed to a currency risk in relation to future foreign currency transactions in US Dollars/Pounds Sterling/Polish Zloty and Canadian Dollars in particular. On June 30 2019 the net exposure was converted into EUR at the spot rate as of the balance sheet date as follows:
x 1000 |
Rate
EUR |
ASSETS
local currency |
ASSETS
in EUR |
LIABILITIES
local currency |
LIABILITIES
in EUR |
|
|
|
|
|
|
USD |
1.140 |
2.613 |
2.292 |
0 |
0 |
GBP |
0.900 |
4.909 |
5.454 |
3.043 |
3.381 |
PLN |
4.240 |
18.611 |
4.389 |
4.244 |
1.001 |
CAD |
1.490 |
5.331 |
3.578 |
4.005 |
2.688 |
|
|
|
|
|
|
Totaal |
|
|
15.713 |
|
7.070 |
|
|
|
|
|
|
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. The business runs liquidity risks with respect to the interest on the credit facility. An interest cap has been implemented to cover the interest risk on the credit facility. The conditions of hedge accounting are fulfilled, whereby the hedge relationship is processed in accordance with the rules of cost price hedge accounting. For the securities provided, we refer you to ‘Credit facilities’ on page 62.
Interest risk
The Company incurs interest on interest bearing assets and liabilities. Both of these receivables and payables have agreed on a floating rate interest rate agreements, thereby running the risk of doing business in respect of future cash flows. In order to limit the interest risk on the credit facility, a interest cap has been agreed as a mitigating measure.
Off-balance sheet assets and liabilities
These include:
- Obligations under operating leases and rent for an amount of EUR 1.4 million. Of this amount, EUR 0.6 million has a term of less than one year. The remaining amount concerns an obligation for less than five years. The remaining amount concerns an obligation for less than 5 years. The debt for rental and lease in accounting year 2018/2019 amounted to EUR 0.9 million.
- To hedge commercial transactions in ware potatoes for the coming harvest, HZPC Holland B.V. uses potato futures for the account and risk of the growers. These positions are valued daily at cost price or lower market value. Any results on the year end outstanding positions are recorded in the year to which the harvest relates. The unrealized exchange gain on the balance sheet date at the expense and risk of the growers amounts to EUR 1,000.
- Several claims have been filed against the company and/or group companies, including South Africa and against the Challenger variety, which are contested by it/them. Although the outcome of these disputes cannot be predicted with certainty, it is assumed - partly on the basis of legal advice received - that it will not adversely affect the consolidated position.