Investment, financing and cash flow
Total investments amounted to € 19.8 million in 2016. A total of € 16.5 million was invested in new and existing stores. The largest investments were made in the remodelling of stores in Germany (Matratzen Concord), the Netherlands (Beddenreus), Austria (conversion of BettenMax) and Sweden (acquisition and conversion of Sängjätten). The number of stores increased by 45 (net). Substantial investments were also made in the omnichannel infrastructure (e-commerce and webshops) in the year under review.
Cash flow1 amounted to € 30.5 million in 2016 (2015: € 33.0 million). Solvency remained high, at 53.5% at year-end 2016 (2015: 57.5%).
As the company operates on a debt-free basis, the net interest-bearing debt/EBITDA ratio was zero at year-end 2016, as had also been the case in 2015.
The reduction of net working capital, while maintaining the commercial strength of the formats, was continued in 2016. Notwithstanding the increase in stock position due to the expansion of the number of stores, the further reduction of working capital achieved during the year under review was largely due to an € 11.3 million increase in current liabilities.
- 1 net profit plus depreciation, amortisation, impairments and carrying amount of disposals.