In 2013, the €2,036k increase in “available‑for‑sale” assets stemmed from the strengthening and fair‑value readjustment of the stake owned by Cambridge Consultants in its business‑incubator activity in Aveillant.
5.4.2 Loans and receivables
Construction‑effort loans totalled €10,251k at 31 December 2013, vs. €8,995k at end‑2012.
This €1,256k increase on 2012 levels stemmed notably from: ❚ the fair value impact of construction effort loans (‑€398k), booked
in the income statement; and
❚ loan payments of €1,776k in 2013; plus ❚ debt maturity repayments totalling €122k.
Other loans and receivables comprise deposits and guarantees.
5.4.3 Other financial assets
The Group’s minority stake in the Singapore‑based company, Flight Focus, acquired in 2012, was valued at €861k in 2013 plus the contribution of two convertible bonds totalling €1,296k.
5.5
Other non-current assets and taxes
Other non‑current assets and taxes mainly include:
❚ proceeds amounting to €3,642k on the disposal of equity securities with maturities of more than one year;
❚ trade receivables due in more than one year’s time of €4,107k; ❚ social security and tax receivables due in more than one year’s
time of €65,850k.
5.6 Inventories
Inventories and work in progress are broken down as follows:
(in thousands of euros) Dec. 2013 Dec. 2012
Raw materials 382 464
Work in progress 329 363
Finished goods 29 33
Provisions for inventory (43) (61)
5.7
Trade receivables net of provisions for depreciation
Trade receivables are due within a maximum of one year.(in thousands of euros)
Dec. 2013 Dec. 2012
Total Matured Not matured Total Matured Not matured Net accounts receivable (clients) 338,294 71,538 266,756 437,211 57,636 379,575
Changes in provisions for trade receivables are broken down as follows:
31/12/2012
Provisions booked
over the period Write backs
Exchange rate differences
Scope of consolidation
changes Other changes 31/12/2013
(5,549) (2,439) 2,463 23 (540) 2,011 (4,031)
Trade and other receivables which are overdue are listed in the following table:
(in thousands of euros) Dec. 2013 Dec. 2012
Expiring in less than 1 month 36,584 35,105
Expiring in 1‑3 months 19,252 14,311
Expiring in more than 3 months 15,702 8,220
TOTAL TRADE RECEIVABLES OVERDUE 71,538 57,636
In 2013, the Group signed several new factoring and trade‑ receivable contracts in France and Europe. The principal features of these agreements are as follows:
❚ the implementation of a guarantee ceiling for the payment recovery of each trade receivable sold by the Company to the factor. This facility is contingent upon obtaining prior consent from the bank;
❚ a guarantee against insolvency of the debtor should it be put into receivership or liquidated by court order;
❚ the waiver of all recourse to claims against the Company within the limit of the authorised guarantee ceilings (factoring without recourse);
❚ the opening of a cash collateral account which is refundable on termination of the contract and where the amount is adjusted to
match the level of guaranteed trade receivables assigned to the factor without recourse;
❚ the contract is open‑ended and may be terminated at any time by either party. Should the Group choose to do so, it is contractually bound to give notice of nine months in France and three months in other European countries. The factor can terminate the contract if the Group fails to honour its obligations to ensure a regular flow of trade‑receivable transfer, endures a significant deterioration in its financial situation or reduction in share capital, or if its business assets are placed under lease management.
The Group had available factoring lines totalling €306.3m at 31 December 2013. Within the context of the above factoring agreements, the amount of assigned trade receivables totalled €229.8m.
Recognition of receivables assigned without recourse had the following impact on the Group’s financial statements (in thousands of euros):
Assets Dec. 2013
Accounts receivable (client) (137,493)
Security deposit 15,849
(121,644)
Liabilities Dec. 2013
Current financial liabilities (121,644)
(121,644) The Group is still responsible for recovering trade receivables whose payment is not guaranteed by the factor. These receivables are booked as assets and offset in “current financial liabilities” (see note 5.11).
Assets Dec. 2013 Dec. 2012
Accounts receivable (client) 92,263 219,790
o/w unfunded portion of trade receivables and cancellation of deposits (25,827) (44,672)
66,436 175,118
Liabilities Dec. 2013 Dec. 2012
Current financial liabilities 66,436 175,118
66,436 175,118
5.8
Other receivables
This item includes tax receivables and other operating receivables. Within the framework of a trade‑receivables discount contract, the Group sold all of its CICE tax receivables maturing on 31 December 2017 for an amount of €9,616k. After deduction of a €481k guarantee deposit, Altran Technologies received €9,135k.
5.9
Current financial assets
This item includes deposits and guarantees maturing in less than one year, and notably that concerning non‑recourse factoring contracts amounting to €15,849k.
5.10 Shareholders’ equity and earnings
per share
The following calculations are based on an average price of €5.81 per Altran Technologies share in 2013.
At 31 December 2013, Altran’s share capital totalled €87,375,660 for 174,751,320 ordinary shares. This 29,901,464 unit increase on end‑2012 levels stemmed mainly from the conversion of bonds (OCEANE) in May 2013. The weighted average number of ordinary shares outstanding totalled 163,951,451 in 2013 and the weighted average number of ordinary and dilutive shares totalled 164,442,521.
Breakdown of equity capital Number Nominal value
Number of shares comprising the share capital at opening 144,849,856 €0.50
Capital increase–recognition of OCEANE bond conversion 29,644,052 €0.50
Capital increase–reserved for the employee shareholding plan 257,412 €0.50
Cancellation of treasury stock (631,900) €0.50
Number of shares comprising the share capital at closing (excluding treasury stocks) 174,119,420 €0.50 The Combined Ordinary and Extraordinary Shareholders’ Meeting
on 28 June 2013, voted to authorise, in accordance with the 10th resolution, the implementation of a share buyback programme. This programme was set up for the purposes of retaining shares for subsequent payment or exchange in the event of an external growth, merger, spin‑off or capital‑contribution transaction. The characteristics of the share buy‑back programme are as follows: ❚ the number of shares that can be acquired is capped at 10% of
the Company’s share capital at any given time, on the Eurolist Compartment B of the NYSE/Euronext Paris Market;
❚ the maximum purchase price per Altran Technologies share is capped at €15. In the event of transactions carried out on the share capital, notably by way of incorporation of reserves and allocation of free shares, and/or the division or consolidation of shares, this price shall be adjusted by applying a multiplying factor equal to the ratio between the number of shares comprising the share capital prior to the transaction, and the number after the transaction;
❚ this share buy‑back programme has been authorised for a period of eighteen months running from the date of the Combined Ordinary and Extraordinary Shareholders’ Meeting (28 June 2013) until 28 December 2014 at the latest.
At 31 December 2013:
❚ 171,429 Altran Technologies treasury shares valued at €1,055.9k and within the framework of the Exane‑BNP Paribas liquidity contract were booked under equity. Net capital gains on the Group’s own shares (€161.5k in 2013) were booked under reserves attributable to shareholders.
❚ 460,471 Altran Technologies treasury shares valued at €2,223.9k and held within the framework of the Kepler‑Cheuvreux liquidity contract were booked under equity.
(in thousands of euros) Dec. 2013 Dec. 2012*
Net income (Altran Technologies) 65,798 64,880
Impact of dilutive share‑based payments 341 654
Ordinary shares (weighted average number) 163,951,451 144,557,546
Options granted with a dilutive impact 491,071 120,686
Earnings per share (€) 0.40 0.45
Diluted earnings per share (€) 0.40 0.45
(in thousands of euros) Dec. 2013 Dec. 2012*
Net income (Altran Technologies) on continuing activities 65,798 67,417
Impact of dilutive share‑based payments 341 654
Ordinary shares (weighted average number) 163,951,451 144,557,546
Options granted with a dilutive impact 491,071 120,686
Earnings per share (€) 0.40 0.47
Diluted earnings per share (€) 0.40 0.46
(in thousands of euros) Dec. 2013 Dec. 2012*
Net income (Altran Technologies) on discontinued operations - (2,537)
Impact of dilutive share‑based payments
Ordinary shares (weighted average number) 163,951,451 144,557,546
Options granted with a dilutive impact 491,071 120,686
Earnings per share (€) - -0.02
Diluted earnings per share (€) - -0.02
* 2012 figures restated for the impact of revised IAS 19 (see note 4). The strike prices of all outstanding share‑warrant options and free shares are lower than the average 2013 share price. As such, these plans had a dilutive impact in 2013.
Options and free shares granted by the Group and which are expected to have a dilutive impact concern stock‑option plans where the strike price is lower than the average share price in 2013. These concern:
1. the 20 December 2007 stock‑option plan involving a maximum of 1,033,031 stock options. Exercise of this plan would have a dilutive impact equivalent to the issue of 298,408 new shares;
2. the 31 January 2012 free share plan involving a maximum of 310,000 free shares for French employees and 182,500 free shares for employees outside France. Exercise of this plan would have a dilutive impact equivalent to the issue of 121,270 new shares for beneficiaries in France and 71,393 new shares for beneficiaries outside of France.
The characteristics of the Group’s stock‑option plans are described in note 6.4.
5.11 Net financial debt
Net financial debt is the difference between total financial liabilities and cash and cash equivalents.
(in thousands of euros) Dec. 2013 Dec. 2012
Cash and cash equivalent 322,999 178,057
Cash liabilities ‑ ‑
Net cash 322,999 178,057
Convertible bond loans (>1 year) 134,371 116,889
Credit establishment borrowings and debt (>1 year) 121,997
Other long‑term financial liabilities 1,693 2,451
Current bond loans 2,330 8,868
Current borrowings 14,251 30,253
Bank overdrafts* 78,167 187,403
Other current financial liabilities 470 742
Gross financial debt 353,278 346,606
NET FINANCIAL DEBT (30,280) (168,549)
* Including factoring of €66.4m at 31 December 2013 vs. €175.1m at 31 December 2012 (for total lines of €306.3m at end‑2013 vs. €315.6m at end‑2012).
Consolidated net financial debt narrowed to €30,280k at end‑2013, down €138,269k on end‑2012 levels. €121,644k of this decrease stemmed from the sale of trade receivables without recourse.