Notes to the company financial statements
- General information
Beter Bed Holding N.V. operates in the European bedroom furnishings market. Its activities include retail trade through the chains Beter Bed, Beddenreus, Sängjätten and Matratzen Concord (until 2 December 2019). Beter Bed Holding N.V. is also active in the field of developing and wholesaling branded products in the bedroom furnishing sector via its subsidiary DBC International. The registered office of Beter Bed Holding N.V. is Linie 27 in Uden, the Netherlands. Beter Bed Holding N.V.'s shares are listed on Euronext Amsterdam.
The company financial statements have been compiled on the basis of Title 9, Book 2 of the Dutch Civil Code. Beter Bed Holding N.V. uses the option of art. 362.8 Title 9, Book 2 of the Dutch Civil Code to prepare the company financial statements, using the same accounting policies as in the consolidated financial statements (IFRS as adopted for use in the European Union).
The participating interests in group companies are valued at the net asset value calculated in accordance with Beter Bed Holding N.V.’s policies. When a participating interest has a negative equity the sequence is as follows: first, the valuation of the participating interest is reduced, after which a write-down is applied to the amounts owed by this participating interest insofar as these are an increase of the net investment in the participating interest, and then a provision is formed.
Beter Bed Holding N.V. had an average number of 5 employees (FTE) in 2019 (2018: 6).
The company financial statements are presented in euros and all amounts are rounded to thousands (€ 000) unless stated otherwise.
- 26 Financial assets
This item includes the participating interests in the Group companies and the amounts owed by the group companies.
Movements in this item were as follows:
in thousand €
Share in subsidiaries
Loans
Deferred tax assets
Total
Balance at 1 January 2018
98,543
87,240
-
185,783
Net income from subsidiaries: profit / (loss)
(25,090)
-
-
(25,090)
Capital contribution
3,556
-
-
3,556
Repayment of loans
-
(87,240)
-
(87,240)
Exchange rate differences
(125)
-
-
(125)
Revaluation
403
-
-
403
Change to provision for subsidiaries
2,647
-
-
2,647
Valuation differences
-
-
4,850
4,850
Balance at 31 December 2018
79,934
-
4,850
84,784
Net income from subsidiaries: profit / (loss)
(33,323)
-
-
(33,323)
Capital contribution
7,495
-
-
7,495
Exchange rate differences
(61)
-
-
(61)
Revaluation
111
-
-
111
Transfer to current tax assets
-
-
(4,850)
(4,850)
Valuation differences
-
-
125
125
Divestments
(2,866)
-
-
(2,866)
Balance at 31 December 2019
51,290
-
125
51,415
- 27 Receivables
in thousand €
2019
2018
Receivables from group companies
-
1,823
Corporate income taxes
1,557
653
VAT receivables
246
140
Other receivables
2,778
1,609
At 31 December
4,581
4,225
All receivables fall due within one year.
Beter Bed Holding N.V. uses a cash pool structure as a result of which there are minimal and very short-term current account intra-group balances.
- 28 Cash and cash equivalents
This item relates to the balance of cash in hand and at the bank. The cash and cash equivalents are at the full disposal of the Company.
- 29 Equity
The authorised share capital of Beter Bed Holding N.V. amounts to € 2 million and is divided into 100,000,000 ordinary shares with a nominal value of € 0.02 each. On 31 December 2019 a total of 24,105,562 ordinary shares were issued and outstanding.
All shares rank equally with regard to the Company’s residual assets.
There are no shares that have been repurchased and not yet cancelled. Repurchased shares are no longer included in the earnings per share calculation.
The movement in the equity items is explained in the consolidated statement of changes in equity.
in thousand €
2019
2018
Shareholders' equity at year-end
3,035
46,636
Restricted reserves:
Issued share capital
(482)
(439)
Revaluation reserve
(386)
(3,200)
Foreign currency translation reserve
(514)
(548)
Equity instruments
(3,500)
-
Total unrestricted reserves at 31 December
(1,847)
42,449
- 30 Provisions
At year-end 2019 and 2018 the provisions consisted in full of the provision for participating interests. The participating interests' provision is a provision for participating interests that have negative net asset value after setting off loans provided by the Company.
The movements in the provisions in 2019 and 2018 are as follows:
in thousand €
2019
2018
Balance at 1 January
5,647
9,912
Net income from subsidiaries: (profit) / loss
6,177
5,366
Capital contribution
(10,361)
(12,278)
Exchange rate differences
(295)
-
Divestments
3,682
-
Transfer from financial fixed assets
-
2,647
Balance at 31 December
4,850
5,647
In 2019 the negative equity of some of the subsidiaries has been purified through capital deposits. As such, these subsidiaries are now independently capable to meet their obligations. This has resulted in a decrease of the provision for participating interests of Beter Bed Holding N.V.
- 31 Current liabilities
The breakdown of this balance sheet item is as follows:
in thousand €
2019
2018
Borrowings
9,994
19,905
Payables to group companies
35,869
48,351
Taxes and social security contributions
51
27
Other liabilities
3,161
1,007
At 31 December
49,075
69,290
Beter Bed Holding N.V. uses a cash pool structure as a result of which there are only short-term current account intra-group balances.
- 32 Commitments not included in the balance sheet
Together with the other Dutch operating companies, the Company is part of a tax entity for corporation tax purposes. Each of the operating companies is jointly and severally liable for the tax payable of all operating companies included in the tax entity. The Company settles the corporation tax with the operating companies concerned on the basis of the profit or loss before income tax of the operating company concerned.
Beter Bed Holding N.V. has issued declarations of joint and several liability for all Dutch group companies for the obligations arising from legal transactions entered into by these group companies. Pursuant to these letters of guarantees, the Dutch group companies have made use of the exemption options laid down in Section 403, paragraphs 1 and 3, of Part 9, Book 2 of the Dutch Civil Code.
- 33 Post-balance sheet events
There have been no subsequent events between the end of the year and the preparation of these financial statements which are required to be disclosed.
- 34 Audit fees
The fees for the audit of the financial statements and other non-audit services by the independent auditor PwC Auditors were:
in thousand €
2019
2018
Total
Total
Audit of financial statements
454
468
Continuing operations
318
367
Discontinued operations
136
101
Other non-audit services
-
16
Continuing operations
-
11
Discontinued operations
-
5
Total audit fees
454
484
The other non-audit services relate to the review of the interim figures.
An amount of € 136 thousand (2018: € 101 thousand) relates to the discontinued operations.
- 35 Appropriation of result
The Management Board proposes to deduct the net result of € (52,575) thousand in full from the other reserves. The proposal for the appropriation of result has not been taken into the balance sheet.
Uden, the Netherlands, 17 March 2020
Management Board
Supervisory Board
A.J.G.P.M. Kruijssen, CEO
B.E. Karis, Chair
P.C. Boone, Vice-Chair
A. Beyens
H.C.M. Vermeulen