Liquidity risk is the risk that the Group encounters problems meeting its commitments related to the Group’s financial liabilities. Financing risk is the risk that the Group is unable to obtain sufficient financing at a reasonable cost.
The maturity profile of contractual payment commitments related to the Group’s and the parent company’s financial liabilities, excluding derivatives, is presented in the tables below. The amounts in these tables are not discounted values and they also include interest payments where relevant, which means that these amounts cannot be reconciled with the amounts reported in the balance sheets. Interest payments are established based on the conditions applicable on the closing day. Amounts in foreign currency have been translated into SEK at closing day exchange rates. The Group’s loan agreements contain no special conditions that could result in the payment date being significantly earlier that shown in the tables.
The information below shows that the expected outflow amounts to SEK 21,000,000 (22,000,000) over the coming 12 months. The Group’s liquidity reserve is defined as cash and cash equivalents, which amounted to SEK 194,606,000 (27,057,000) at year-end, and will be used to meet this outflow. In addition, there is the possibility of borrowing against trade accounts receivable if further funds should be needed in the short term. In March 2016, short-term liabilities to related parties was converted into shares.
|31 Dec 2016||Within 3 months||3-12 months||1-5 years||More than 5 years||Total|
|Trade accounts payables||16,902||0||0||16,902|
|Other current liabilities||2,265||1,396||0||0||3,661|
|Liabilities to related parties||0||0||0||0|
|31 Dec 2015||Within 3 months||3-12 months||1-5 years||More than 5 years||Total|
|Trade accounts payables||8,393||0||0||8,393|
|Other current liabilities||1,438||1,492||0||0||2,930|
|Liabilities to related parties||10,180||0||0||10,180|
Credit risk is the risk that a counterparty in a transaction will not fulfill its contractual obligations, thereby incurring a loss for the Group. The Group’s exposure to credit risk is mainly attributable to accounts receivable. To limit the Group’s credit risk, the company has formulated a credit policy that stipulates, for example, the requirement of a credit assessment of every new customer. The situation of existing customers is also monitored continuously, in order to identify warning signs at an early stage.
Credit risk also arises when the company’s surplus liquidity is invested in various types of financial instruments. Under the financial policy, surplus liquidity may only be placed in interest-bearing bank accounts or in interest-bearing securities. The financial policy states that credit risk from the investment of surplus liquidity is to be reduced by only investing with counterparties that have a very good rating. The financial policy also states that investments shall normally be spread across multiple counterparties or issuers. The credit risk pertaining to bank balances is limited because the counterparties are banks with a high credit rating. A Board decision is required for alternative investments above and beyond what has been approved in the financial policy.
Trade accounts receivable are spread across a large number of customers, and no customer represents a significant portion of the total. Neither are trade accounts receivable concentrated to a specific geographical area. The Group therefore assesses that the concentration risk is limited.
The Group’s maximum exposure to credit risk is judged to be reflected in the recognised amounts of all financial assets, and shown in the table below.