Notes to the company balance sheet and profit and loss account
- General
The registered office of Beter Bed Holding N.V. is Linie 27, Uden, the Netherlands. The financial statements have been compiled on the basis of Title 9, Book 2 of the Dutch Civil Code in accordance with International Financial Reporting Standards (IFRS), as adopted for use in the European Union and applied to the consolidated financial statements. The participating interests in group companies are valued at the net asset value calculated in accordance with Beter Bed Holding N.V.’s policies. When a participating interest has a negative equity the sequence is as follows: first, the valuation of the participating interest is reduced, after which a write-down is applied to the amounts owed by this participating interest insofar as these are an increase of the net investment in the participating interest, and then a provision is formed.
Beter Bed Holding N.V. had an average number of 7 employees (FTE) in 2016 (2015: 7).
The company financial statements are presented in euros and all amounts are rounded to thousands (€ 000) unless stated otherwise. Following the recent amendment of Section 402 of Book 2 of the Dutch Civil Code, the company financial statements no longer include an abbreviated profit and loss account.
The note on executive remuneration is included in the notes to the consolidated balance sheet and profit and loss account.
The fees charged for the audit of the financial statements and other non-audit services by the auditor PwC Accountants N.V. are also disclosed in the notes to the consolidated balance sheet and profit and loss account.
- 1 Financial assets
This item includes the participating interests in the group companies and the amounts owed by the group companies.
The loans to participating interests item recognises loans in accordance with market conditions to Beter Beheer B.V and Sängjätten Sverige AB of € 87,240 (2015: € 87,240) and € 419 (2015: € 0) respectively. The loan to Beter Beheer B.V. is a fixed-interest loan at an interest rate of 7% (2015: 7%). The loan to Sängjätten Sverige AB is also a fixed-interest loan at an interest rate of 6.5%. The remaining term to maturity of the loan to Beter Beheer B.V. is two years. The loan to Sängjätten Sverige AB was granted in June 2016, and has no expiry date. No security was provided for these loans. The fair value of the loans is equal to their nominal value.
Movements in this item were as follows:
Participating interests in group companies
Loans
Total
Balance at 1 January 2015
70,988
88,240
159,228
Net income from subsidiaries
18,966
-
18,966
Dividend received
(12,056)
-
(12,056)
Capital contribution
250
-
250
Changes in exchange rates
283
-
283
Revaluation
(35)
-
(35)
Repayment of loans
-
(1,000)
(1,000)
Balance at 31 December 2015
78,396
87,240
165,636
Balance at 1 January 2016
78,396
87,240
165,636
Net income from subsidiaries
14,588
-
14,588
Dividend received
(665)
-
(665)
Acquisitions
3,298
-
3,298
Granted loans to group companies
-
874
874
Changes in exchange rates
(179)
(5)
(184)
Change to provisions for subsidiaries
1,377
(450)
927
Balance at 31 December 2016
96,815
87,659
184,474
- 2 Receivables
2016
2015
Group companies
2,253
545
Taxes and social security contributions
32
33
Other receivables
2,681
2,606
Total
4,966
3,184
All receivables fall due within one year.
Beter Bed Holding uses a cash pool structure as a result of which there are minimal and very short-lived current account intra-group balances.
- 3 Cash and cash equivalents
This item relates to the balance of cash in hand and at the bank. The cash and cash equivalents are at the full disposal of the company.
- 4 Equity
The company’s authorised capital amounts to € 2,000, divided into 100 million ordinary shares with a nominal value of € 0.02 each. At the end of 2016 21,955,562 shares had been issued and paid up (2015: 21,955,562).
There are no shares that have been repurchased and not yet cancelled. Repurchased shares are no longer included in the earnings per share calculation.
The movement in the equity items is explained in the consolidated statement of changes in equity. The revaluation reserve is the statutory revaluation reserve and relates to company land. The reserve for currency translation differences is also a statutory reserve. Neither reserve is freely distributable.
- 5 Provisions
At year-end 2016 and 2015 the provisions consisted in full of the provision for participating interests. The participating interests' provision is a provision for participating interests that have negative net asset value after setting off loans provided by the company. The movements in the provisions in 2016 and 2015 are as follows:
2016
2015
Balance at 1 January
13,843
12,857
Results from subsidiaries
927
986
Balance at 31 December
14,770
13,843
- 6 Current liabilities
The breakdown of this balance sheet item is as follows:
2016
2015
Credit institutions
96,176
78,334
Taxes and social security contributions
1,127
246
Other liabilities, accruals and deferred income
627
807
Total
97,930
79,387
Beter Bed Holding uses a cash pool structure as a result of which there are minimal and very short-lived current account intra-group balances.
- 7 Commitments not included in the balance sheet
Together with the other Dutch operating companies, the company is part of a tax entity for corporation tax purposes. Each of the operating companies is jointly and severally liable for the tax payable of all operating companies included in the tax entity. The company settles the corporation tax with the operating companies concerned on the basis of the profit or loss before income tax of the operating company concerned.
Beter Bed Holding N.V. has issued declarations of joint and several liability for all Dutch group companies for the obligations arising from all legal transactions entered into by these group companies.
- 8 Post-balance sheet events
No events that are required to be disclosed occurred in the period between the end of the year under review and the preparation of these financial statements.
- 9 Appropriation of profit
Appropriation of profit pursuant to the articles of association
Article 34 of the Articles of Association states the most important provisions pertaining to the appropriation of profit:
Paragraph 1
Every year the Management Board, subject to approval from the Supervisory Board, determines the proportion of the company’s profit – the positive balance of the profit and loss account – to be added to the company’s reserves.
Paragraph 2
The profit remaining after the reservation pursuant to the previous paragraph shall be placed at the disposal of the Annual General Meeting.
Appropriation of profit2016
Profit for the year
19,015
Interim dividends paid
(7,465)
Addition to reserves1
(2,768)
Available for payment
8,782
- 1 On the basis of the balance of outstanding and repurchased shares as at 31 December 2016.
The proposal for the appropriation of profit has not been taken into the balance sheet.
Uden, The Netherlands, 16 March 2017
Management Board
Supervisory Board
A.H. Anbeek, CEO
D.R. Goeminne, Chairman
B.F. Koops, CFO
A.J.L. Slippens, Vice chairman
E.A. de Groot
W.T.C. van der Vis