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Earnings per share were € 1.34. This is 2.9% lower
than in 2013. The lower profit was partly offset by
the positive impact of the share buyback in 2014,
as part of the further optimization of the
capital structure.
FREE CASH FLOW
AND NET FINANCIAL DEBT
The free cash flow was € 51.8 million, compared to
€ 46.3 million in 2013, a rise of 11.7%.
The higher free cash flow was primarily due to
working capital movements (€ +10.1 million) and
lower interest paid (€ +0.6 million), partly offset by
lower EBITDA and other financial charges
(€ -2.8 million), higher income taxes paid
(€ -2.1 million) and higher maintenance capital
expenditure (€ -0.3 million).
The working capital movements are chiefly due to:
★
★
A number of one-off items (€ +2.1 million),
including the high receipts in 2014 of sector-
related government grants in France (CNC)
(€ +1.0 million), lower payments with regard to
tax sheltering (€ +0.7 million) and higher
subsidies received, related to staff training in
Belgium (€ +0.5 million);
★
★
Lower minimum guarantees paid in 2014 and
higher debts at year-end at KFD
(€ +2.0 million);
★
★
Higher trade payables due to an improved
year-end in Spain, lower invoices payable at
year-end 2013 and higher invoices to be
received at year-end 2014 (€ +3.9 million);
★
★
Improved collection of overdue receivables in
2014 (€ +0.7 million);
★
★
A higher number of cinema vouchers sold, but
not used, at year-end 2014 (€ +0.7 million).
In 2014 capital expenditure was € 32.8 million,
€ 20.7 million more than in 2013. The main invest-
ments in 2014 were the installation of laser
projectors and Dolby Atmos sound systems in the
Group’s four megaplexes, the first phase of refitting
the acquired cinemas in Spain, the investment in
new front office software for the Group, the pur-
chase of the site in Dordrecht (the Netherlands) on
which a new cinema will be built, the construction
of the new indoor playground in Madrid (Spain),
the second part of the remodelling of the cinema in
Louvain (Belgium) and the purchase of the Toison
d’Or building in Brussels (Belgium).
Net financial debt was € 118.6 million at
31 December 2014, an increase of € 30.5 million
compared to the end of 2013 (€ 88.1 million), due to
the acquisitions in the Netherlands and Spain for
€ 26.1 million, maintenance and renewal invest-
ments for € 17.1 million, share buybacks for € 18.7
million and the dividend pay-out of € 16.8 million.
Nevertheless, the NFD/EBITDA ratio increased from
1.2 to only 1.7.
The total gross financial debt increased by € 28.2
million to € 136.0 million at 31 December 2014,
compared to € 107.8 million at 31 December 2013.
BALANCE SHEET
Fixed assets, at € 302.1 million, represented 87.0%
of the balance sheet total as at 31 December 2014.
This includes land and buildings (including invest-
ment property) with a carrying amount of
€ 197.1 million, or 56.8% of the balance sheet total.
At 31 December 2014 equity was € 104.7 million.
Solvency was 30.2%, after further share buybacks
in 2014 totaling € 18.8 million and the dividend
pay-out of € 16.8 million.
KEY EVENTS AFTER THE END OF
THE FISCAL YEAR 2014
In January 2015 the Group concluded a private
placement of bonds with institutional investors.
For more detailled information, we kindly would like
to refer to Note 29 to the Consolidated Financial
Statements.
25
KINEPOLIS GROUP
ANNUAL REPORT 2014
03 / MANAGEMENT REPORT