KBA Reports Sheetfed Press Orders Hit Harder than Web

Higher cash flow, solid finances
Cash flows from operating activities swelled from €21.3m to €34.6m, primarily due to higher provisions and a reduction in receivables and inventories. The KBA group’s cash flow is materially influenced by the customer prepayments commonly made in the heavy plant sector, which despite softer sales in the second half-year came to €140.5m (2007: €199.3m). The free cash flow improved from -€17.1m in 2007 to -€9.9m. At the end of December liquid assets stood at €85.8m (31.12.2007: €123.2m). With bank loans down €20.3m at €63.2m, the group’s net financial position remained strong at €22.6m. Additional credit lines totalling €160m have been extended by domestic banks. Although the net loss reduced total equity from €515.1m to €411.1m, an equity ratio of 34.8% (2007: 37.7%) reveals a solid capital base.