Page 41 - CODIC Rapport Annuel 2014/2015

II. BALANCE SHEET

The balance sheet total rose from €210.3m to €327.5m during the financial year 2014-15.

Interests accounted for using the equity method (€84.6m)
This item appears in the balance sheet as a result of the application of IFRS 11 imposing the
equity method for joint ventures.
It increased during the financial year from €70.3m to €84.6m, representing an increase of €14.3m,
mainly due to the disposal of 51% of the three Royal-Hamilius (non-residential) companies, which
therefore come under this category.
The amounts capitalised relating to the Château Roussillon project, where works are underway,
also contributed to the increase. In contrast, the disposal of the shares held in the Espace Plus
real estate company had a lowering effect on this item.

Inventories (€177.2m)
Inventories rose from €109.4m to €177.2m, representing an increase of €67.8m.
The increase is mainly linked to the works underway on the Gateway site, construction on the
Résonance project, the capitalised expenditure relating to the Best project and the developments
underway on Royal-Hamilius.

Operating receivables (€13.7m)
Receivables rose from €10.4m as at 30/04/2014 to €13.7m as at 30/04/2015. The increase in
this item is mainly due to the sales carried out over the period. This balance notably includes
a recoverable VAT amount of €3.1m and a receivable balance on the price of the shares in the
Royal-Hamilius companies.

Equity (€114.6m)
Equity rose during the financial year from €95.6m to €114.6m. This represents an increase
of €18.7m which is due to several factors, i.e. the net profit generated over the financial year
(€+17.6m), a capital increase with a share issue premium (€+3.0m) and the Group’s acquisition
of own shares (€-1.9m).

Tax liabilities (€-6.4m)
Statutory taxes payable are mainly related to the flat-rate corporate tax in Luxembourg.
The tax losses considered recoverable (and therefore capitalised) mainly concern Codic Belgium,
Codic International, Codic France and Codic Luxembourg.

Borrowings (€109.2m)
The financing of the Résonance project was set up during the financial year.
Furthermore, two new corporate facilities were set up totalling €40m.
All of the covenants on the credit facilities were complied with as at 30/04/15.

Operating liabilities (€-100.9m)
The amount of operating liabilities comprises, on the one hand, the sums owed to suppliers for
projects and, on the other, the reserves created at the time of sales (unforeseen, invoices yet to
be received, rent guarantees, fittings).
The prepayments received relating to the construction of the Gateway project, for which the
margin will be recorded in the results at a later time, are also included in this item (€10.4m).
It also includes a sum of €35.9m related to the recognition of the partial sale of the three Hamilius
companies (including the reintegration of 100% of the inventories related to the construction).

Cash flow (€16.5m)
The operating cash flow generated by the Group during the year was positive in the amount of
€16.5m. It relates to the various sales and developments carried out during the financial year.
The flows related to financing operations were also positive in the amount of €17.3m. The net
cash flow increased by €33.8m over the financial year.

39Codic Annual Report 2014/2015