Financial position

Group solvency stated as a percentage of total assets rose from 58.6% at year-end 2019 to 60.3% at year-end 2020. No dividend was paid in 2020 due to the economic reality of the covid crisis. For the financial year 2020, it has also been proposed to add the net profit entirely to the general reserves to give ROTO the opportunity to strengthen its strategic positions.

Current assets -/- current liabilities as at 31 December (x € 1,000)

The change in working capital, with stocks and receivables falling and short-term debt increasing, amounts to € 47.5 million (end of 2019: € 50.6 million). As a result of deliveries in the order book for which the required orders had been purchased in advance, stocks continue to be depleted. The decrease in revenue also leads to a decrease in receivables. The positive cash flow and reduced working capital resulted in an increase in cash and cash equivalents of almost € 5.0 million.

The cash flow from operations in 2020 was € 12.4 million (2019: € 13.5 million). The decrease in the cash flow from operations of € 1.1 million is attributable to a lower net revenue result of € 3.0 million, the effect of the sale of the shareholding in Métal Déployé in 2019 of in total of € 3.1 million, a lower depreciation of € 1.3 million and a positive change in working capital of a total of € 0.4  million.

Cash flows (x € 1,000)

The cash flow from investment activities shows an increase of € 1.5 million, mainly explained by divestments in 2019 and an increase in investments by € 0.1 million in 2020.

The cash flow from financing activities amounts to € 1.9 million (2019: € 0.2 million). Long-term loans have been repaid in 2020 and no dividend has been paid.

The financial position and the operating cash flow are adequate to continue the activities without additional financing. ROTO complies amply with the agreements made with the credit institution.

The quick ratio (cash and cash equivalents plus receivables in relation to current liabilities) is 1.07 at the end of 2020 (end of 2019: 1.14). ROTO has sufficient liquid resources.

The current ratio (including inventories) of 2.41 is slightly lower than the 2.61 at the end of 2019. This is due to the increase in short-term financing of working capital of € 2.2 million.

Quick ratio per 31 december • Current ratio per 31 december