Items impacting financial results

Switch language to English
Switch language to Finnish

Exel Composites’ main cost items impacting profitability are:

Income taxes

2019
2018
Profit before taxes 3,885 1,705
Consolidated income taxes at Group’s domestic tax rate (20%) 777 341
Impact of different tax rates of foreign subsidiaries 49 -68
Tax-exempt income and non-deductible expenses 63 25
Tax at source booked as cost 129 0
Income taxes for prior years 142 18
Effect of deferred tax assets not recognized 420 1,068
Other items -93 -66
Income tax recognized in consolidated income statement
1,488
1,319
Effective tax rate 38.3 77.3

 

The table above shows the income tax reconciliation and the total income tax amount (tax charge) as reported in the accounting. Cash flow effect of the actually paid income taxes was in 2018 EUR 2.4 million (0.7).

Exchange rates

Exel Composites’ functional currency is euro. Other key currencies for the Group are AUD (Australia), GBP (United Kingdom), RMB (China), USD (USA) and HKD (Hong Kong).

In 2019 exchange rates impacted revenue by 0.6%.

Debt structure and covenants

The Group’s exposure to the risk of changes in the market interest rates relates primarily to the Group’s loans. The effect of one percentage point in the interest rates on 31 December 2019 was EUR 324 (296) thousand.

Non-current interest-bearing loans and borrowings

2019
2018
Loans from financial institutions 10,564 10,781
Lease liabilities 3,549
Pension loans 690 613
Total
14,803
11,394

Current interest-bearing loans and borrowings

2019
2018
Loans from financial institutions 20,833 12,872
Lease liabilities 1,262 0
Cheque account with overdraft facility 264 5,362
Total
22,360
18,234

 

EUR 18 million of current interest-bearing liabilities were commercial papers. To secure the payment of commercial papers, the company had at the end of the financial year unused, non-current (over 12 months) revolving credit facilities for EUR 20
million.