Sponda’s operations generate financial wellbeing through the cash flows between the company and its stakeholders. Direct financial impacts include rental income from clients, purchases from suppliers, personnel salaries, dividends paid to shareholders and investments to make the business grow. Sponda’s operations also have an indirect impact, for example on the business of clients and suppliers.
Cash flow between stakeholders
Cash flow |
|
2010
M€ |
% of
revenue |
2009
M€ |
% of
revenue |
| Customers |
+ Revenues |
232.1 |
100.0 |
237.2 |
100.0 |
| Suppliers |
- Purchases |
-58.0 |
-25.0 |
-62.0 |
-26.1 |
| Personnel |
- Personnel expenses |
-11.1 |
-4.8 |
-12.1 |
-5.1 |
| Shareholders |
- Dividends |
-33.3 |
-14.3 |
208.2 |
87.8 |
| Financiers |
- Net financing costs |
-58.5 |
-25.2 |
-65.0 |
-27.4 |
| Public sector |
- Taxes |
-13.8 |
-5.9 |
-9.5 |
-4.0 |
Customers
95 per cent of Sponda’s total revenue comes from rental income and about 5 per cent from management fees for real estate funds and from Sponda’s share of their profits. Sponda aims to provide the best possible business environment for the business operations of customers and the most effective customer relationship on the market.
Personnel
Sponda’s employee expenses totalled EUR 11.1 million in 2010. At year’s end the company employed altogether 119 people, with 12 of these working at the offices in Russia. The company’s personnel belong to an incentive scheme with bonuses linked to the company’s targets.
Service suppliers
Sponda purchases services from partners and subcontractors that are not part of Sponda’s core business. These include building management services, construction and maintenance services and certain administrative functions. Sponda indirectly employs many people through property maintenance and capital expenditure on property.
Sponda requires all its subcontractors and partners to have operations that are transparent and responsible and take environmental issues into account.
Financiers
Sponda’s net financial costs totalled EUR 58.5 million in 2010. At the end of the year the company had EUR 1,572.6 million in interest-bearing loans and an equity ratio of 39 per cent.
Shareholders
At the end of 2010 Sponda had a total of 9,644 shareholders, with 50.1 per cent of these being nominee registered. The company’s cash flow from operations per share was EUR 0.37. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.15 per share be paid for the 2010 financial year.
Public sector
Sponda paid EUR 2.7 million in income taxes and EUR 11.2 million in real estate taxes in 2010. The company received EUR 23.5 million in income from state-owned enterprises and companies in the form of rent.
Support of non-profit activities
Sponda donated the money reserved for traditional Christmas greetings to WWF’s Operation Mermaid. Sponda has not provided financial support for political parties or for individuals standing for election to positions of trust.
Investments
Capital expenditure on property maintenance amounted to EUR 29.9 million. These investments ensure the wellbeing of tenants and provide the best possible conditions for business operations. A total of EUR 46.5 million was invested in the Group’s property development during the year.