Financial Position and Capital Expenditure

At the end of the reporting period, the Digia Group’s consolidated balance sheet total stood at EUR 80.4 (12/2013: 83.3) million and the equity ratio was 51.5 (12/2013: 49.9) per cent. Net gearing was 30.3 per cent (12/2013: 28.9) per cent. Cash and cash equivalents at the end of the period totalled EUR 5.1 (12/2013: 6.5) million.

Interest-bearing liabilities at period end amounted to EUR 16.2 (12/2013: 16.9) million. These consisted of EUR 15.0 million in loans from financial institutions and EUR 1.2 million in financial leasing liabilities.

Consolidated net cash flow from operating activities for the period was EUR 1.9 million (4.9) million positive. Cash flow from investments for the period was negative by EUR 1.2 (1.6) million. Cash flow from finance for the period was negative by EUR 2.0 (5.1) million, with a EUR 0.1 million positive net impact of loans on cash flow. Repayments of bank loans totalled EUR 4.7 million, short-term loan withdrawals amounted to EUR 3.0 million and long-term loan withdrawals to EUR 1.8 million.

The Group’s investments in fixed assets during the period totalled EUR 1.1 (1.6) million.

Return on investment (ROI) for the period was 9.0 (-4.4) per cent, and return on equity (ROE) was 7.8 (-10.4) per cent.

The Group carries out quarterly impairment testing of goodwill and intangible assets with an indefinite useful life.

Impairment testing is described in more detail in the notes to the financial statements, under Note 15 ‘Intangible assets’.