Background
Financial statement

Notes to the company balance sheet

1. Intangible fixed assets (in EUR x 1,000)


The movement per category for intangible fixed assets for the year 2016/2017 is as follows:

  Research and 
development costs
Total
2016/2017
Total
2015/2016
       
Purchase value 803 803 803
Cumulative depreciation -268 -268 -
       
Book value as per July 1st 535 535 803
       
Investments 76 76 -
Depreciation -268 -268 -268
       
Movements -192 -192 -268
       
Purchase value  879 879 803
Cumulative depreciation -536 -536 -268
       
Book value as per 30 June 343 343 535
       

 

2. Tangible fixed assets (in EUR x 1,000)


The composition and movement per category for tangible fixed assets for the year 2016/2017 is as follows:

  Company buildings
and land
Machines
and equipment

Other fixed
assets
Total
2016/2017
Total
2015/2016
           
Purchase value 19,036 14,117 181 33,334 30,617
Cumulative depreciation -11,091 -9,402 -170 -20,663 -18,500
           
Book value as per July 1st 7,945 4,715 11 12,671 12,117
           
Investments 6,556 - - 6,556 2,177
Depreciation -838 - - -838 -2,164
Effect of legal restructuring - -4,715 -11 -4,726 -
Disposals -540 - - -540 -
Other value movements - - - - 540
           
Balance  13,123 - - 13,123 555
           
Purchase value 25,052 - - 25,052 33,334
Cumulative depreciations -11,929 - - -11,929 -20,663
           
Book value as per 30 June 13,123 - - 13,123 12,671
           

 

3. Financial fixed assets (in EUR x 1,000)


The movement per category of financial fixed assets is as follows:

 
Participations
in group
companies


Receivables
on group
companies
Other
receivables
Receivables
on
Association
HZPC
Deferred
tax
receivables
Other
securities
Other
recei-
vables
Total
2016/
2017
Total
2015/
2016
                   
Book value as per July 1st 28,692 2,664 9 349 1,488 25 33 33,260 31,728
                   
Investments/increase - - -4 -46 439 - -33 356 142
Effect of legal restructuring 828 - - - - - - 828 -
Result of participating
interests
11,542 - - - - - - 11,542 1,981
Dividends/repayment - - - - - - - - -344
Exchange rate fluctuations -20 - - - - - - -20 -247
                   
Movements 12,350 - -4 -46 439 - -33 12,706 1,532
                   
Book value as per 30 June 41,042 2,664 5 303 1,927 25 - 45,966 33,260
                   

The receivables from group companies have a term between 3 years and 7 years. Interest is charged on the receivable. This varies from 4% to 6%.

4. Inventories (in EUR x 1,000)

  30-06-2017 30-06-2016
     
Packaging - 481
Finished product - 352
     
  - 833

No provisions for obsolescence are made on the inventories.

5. Trade receivables (in EUR x 1,000)

  30-06-2017 30-06-2016
     
Amortised cost of outstanding receivables - 41,553
Minus: provision due to bad debts - -14,832
     
  - 26,721

 

6. Other receivables and accrued income (in EUR x 1,000)

 

  30-06-2017 30-06-2016
     
Pension contributions - 926
Licences to be claimed - 336
Prepaid expenses - 525
Health insurance premium - 209
Government grants - 648
Other amounts - 861
     
  - 3,505

 

7. Shareholders’ equity (in EUR x 1,000)


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 1,035 -31 28,170 46,282
             
Movements in financial year 2016/2017            
Dividends - - - - -5,486 -5,486
Result of financial year - - - - 8,477 8,477
Exchange rate fluctuations - - - -21 - -21
Other movements - - -368 - -368 -
             
  - - 368 -21 2,623 2,970
             
Status as of 30 June 15,675 1,433 1,403 -52 30,793 49,252
             

Issued capital
The authorised capital on the balance sheet date amounts to EUR 50,000,000 (2015/2016 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 2015/2016).

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 2016/2017 result after tax: declaration of a dividend of EUR 5.5 million and addition of the remaining amount of EUR 2.9 million to the other reserves. The change amounting to EUR 368,000 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 2016/2017 result after taxation: an amount of EUR 2,991,479 to be added to the other reserves and the remaining amount of EUR 5,486,075 to be paid out as dividends. Per share certificate, EUR 7.00 is available. This proposal is recorded in the balance sheet under the current liabilities.

 

8. Other debts and accrued liabilities

  30-06-2017 30-06-2016
     
Licences to be paid - 955
Wages and salaries to be paid 467 724
Product related costs - 1,359
Holiday allowances - 878
Pool result to be settled - 3,347
Other amounts 200 2,015
     
  667 9,278

 

Notes to the separate company profit and loss account

 

Wages and salaries 30-06-2017 30-06-2016
     
Gross staff wages 934 10,037
Employer’s social security contributions for staff 52 1,366
Pension premium 79 1,996
     
  1,065 13,399
     
Specific details for numer of FTEs 30-06-2017 30-06-2016
     
Management and Administration 3 25
Commerce and communication - 45
Purchasing and logistical planning - 40
Research - 63
     
  3 173

At HZPC Holding B.V. there were an average of 3 FTE in service, all working in the Netherlands (previous financial year 173 FTE).

 

9. Share in result in participating interests after tax

This relates to the share in result the company has in participating interests of which EUR 11,789,900 (2015/2016: relates to group companies.

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.

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 76,000 (2015/2016: EUR 71,000).


Joure, 5 October 2017

The Executive Board: The Supervisory Board:
G.F.J. Backx (CEO), Managing Director M.J. Ubbens, Chairman
H. Verveld (CCO) C.J. Biemond
J.L. van Vilsteren (CFO) M. Kester
E. Kraaijenzank
W. Sinnema