Financial position at the end of March 2018

Caverion’s cash and cash equivalents amounted to EUR 37.2 (24.7) million at the end of March. In addition, Caverion has undrawn revolving credit facilities amounting to EUR 100.0 million and undrawn overdraft facilities amounting to EUR 19.0 million.

The Group’s interest-bearing loans and borrowings amounted to EUR 84.4 (189.6) million at the end of March and the average interest rate after hedges was 2.7 percent. Approximately 83 percent of the loans have been raised from banks and other financial institutions and approximately 14 percent from insurance companies. A total of EUR 30.1 million of the interest-bearing loans and borrowings will fall due during the next 12 months. The Group’s net debt amounted to EUR 47.2 (164.9) million at the end of March. At the end of March, the Group’s gearing was 19.4 (106.4) percent and equity ratio 27.7 (16.7) percent. 

On June 9, 2017 Caverion Corporation issued a EUR 100 million hybrid bond, an instrument subordinated to the company's other debt obligations and treated as equity in the IFRS financial statements. 

Caverion’s external loans are subject to a financial covenant based on the ratio of the Group’s net debt to EBITDA. Financial covenant shall not exceed 3.5:1. At the end of March, the Group’s Net debt to EBITDA was 1.8x according to the confirmed calculation principles.

Debt maturity

Sources of funds in the loan portfolio
Interest rate type (after hedges)

Net debt (EURm)

Gross debt to net debt

Liquidity reserve

Cash flow and working capital

The Group’s operating cash flow before financial and tax items turned clearly positive in the first quarter and amounted to EUR 19.8 (-12.1) million. Cash conversion was 148.2 percent. Operating cash flow improved in all divisions due to better profitability and improved working capital management. The Group’s free cash flow improved to EUR 12.2 (-18.5) million.

The Group’s working capital improved to EUR -41.4 (-21.3) million at the end of March. Working capital also improved from the level of EUR -30.8 million at the end of December 2017. The amount of POC receivables decreased to EUR 240.4 (268.3) million and trade receivables to EUR 269.9 (298.6) million at the end of March. There was good development also in old overdue trade receivables. At the end of March, working capital was still tied by certain risk projects mainly in divisions Industrial Solutions and Germany.