Deposits and Cash in Last 5 Years
(As at 31 March)
Liquidity and Financial
Resources
Shareholders’ funds as at 31 March 2014
were US$575.6 million, an increase of
2.0% from US$564.3 million in the last
financial year. Shareholders’ funds per
share increased by 1.8% from US$2.25 to
US$2.29.
The Group had no borrowings as at
31 March 2013 and 31 March 2014.
The Group’s financial resources remain
strong. As at 31 March 2014, deposits
and cash increased from US$308.6
million to US$322.9 million, an increase
of 4.6% compared with the last financial
year-end-date. It was mainly due to
the increase in cash generated from
operations compared with the same
period last year. The Group has adequate
liquidity to meet its current and future
working capital requirements.
Analysis of Cash Flow from Operations
2014
2013
(Restated)
Change
US$ million
US$ million US$ million
Operating profit
226.1
223.9
2.2
Depreciation and amortisation
31.3
29.3
2.0
EBITDA
257.4
253.2
4.2
Gain on disposal of tangible assets
(0.1)
(0.1)
–
Working capital change
(0.1)
(38.8)
38.7
Cash generated from operations
257.2
214.3
42.9
The Group’s cash generated from operations for the year ended 31 March 2014 was
US$257.2 million, as compared to US$214.3 million in the previous financial year. The
increase was mainly attributable to the increase in EBITDA in the financial year 2014
and the lower working capital investment compared with the previous financial year.
Working Capital Change
Balance as at
31 March 2013
(Restated)
Hedging
and others
Working capital
change per
cash flow
Balance as at
31March
2014
US$ million US$ million US$ million
US$ million
Stocks
276.9
–
(11.0)
265.9
Trade debtors
224.9
–
(16.3)
208.6
Other debtors, deposits
and prepayments
32.2
(2.4)
(2.6)
27.2
Trade creditors
(176.2)
–
35.4
(140.8)
Other creditors
and accruals
(154.4)
(4.2)
(5.0)
(163.6)
Provisions
(28.2)
–
0.3
(27.9)
Net obligations on
defined benefit
scheme
(6.5)
5.2
(0.7)
(2.0)
Total working capital
168.7
(1.4)
0.1
167.4
Stocks
as of 31 March 2014 were US$265.9 million, decreased from US$276.9 million
as of 31 March 2013. The turnover days fell from 90 days to 87 days. The reduction
resulted from management’s effort to improve stock management.
As at 31 March 2014 and 2013
All figures are in US$ million unless stated otherwise
2014
2013
Stocks
265.9
276.9
Average stocks as a percentage of Group revenue
14.3%
13.9%
Turnover days
87 days
90 days
US$ million
382.6
333.1 326.5
308.6
322.9
10 11 12 13 14
0
50
100
150
200
250
300
350
400
9
VTech Holdings Limited
Annual Report 2014
