Investments
In 2022, we invested € 15.0 million (2021: € 10.5 million) in our five Business Units. At Staco Nederland various strategic investments were made in new machinery and equipment as well as in renovation of buildings and solar panels. For Rotocoat, the remainder of investments at the site in Heerhugowaard took a larger share, whereas Prestia had a longer list of investments at the various sites. Rezinal and De Boer Staal had mainly smaller investments.
Due to the positive cash flow, all investments in 2022 were fully financed from own resources. In 2023, investment ambitions reach a level of € 15.5 million, apart from some bigger strategical investments that are in preparation for further decision-making.
Group solvency and cash flow
Following the good results, our group solvency, expressed as a percentage of total assets, increased from 38.6% at year-end 2021 to 46.1% at year-end 2022. No dividend was paid in 2022 and it was proposed to add the 2022 net profit in full to the general reserves to enable ROTO to strengthen its strategic positions. The financial position and operating cash flow are sufficient to continue activities without additional financing. ROTO complies with the agreements made with credit institutions.
As a result of higher zinc and steel prices, the working capital increased to € 65.7 million at year-end 2022 (year-end 2021: € 51.3 million). The increase was visible in working capital items such as stocks, receivables corrected by a decrease of liquid assets and the decrease in short-term debt. Overall, the increase in working capital items was related to the increasing (commodity) prices at the end of 2022 compared to 2021. While inventory volume declined due to order book deliveries for which the required orders had been pre-purchased, the increased prices of inventory items had a larger positive effect, leading to a higher inventory value. The positive cash flow from operating activities has been used for payment of investments and repayment of loans resulting in a decrease of cash and cash equivalents of € 13.0 million (2021: an increase of € 12.4 million).