4.3 Annual Result
In addition to the EBITA or EBIT from operating business, the annual result is made up of the financial result and the taxes on income. In the 2004/2005 financial year the financial result amounted to € 0.2 million. The considerable fall in comparison to the previous year by around € 0.6 million is largely due to the fact that SinnerSchrader paid around € 20.8 million from the liquidity reserve to the shareholders within the framework of a capital repayment in early November 2004. Added to this is the fact that the interest level in the year of the report continued to fall, which had an effect on the result earned from investment of the remaining liquidity reserve, because SinnerSchrader continued its investment strategy with low tied-in interest periods, which was aimed at flexibility.
In spite of the positive pre-tax result, there was also a positive contribution to the annual result from income taxes in the 2004/2005 financial year. At € 0.15 million, it was around € 0.1 million above the value of the previous year. On the one hand, no income taxes had to be paid due to the existing accumulated losses on the positive result before tax brought forward. On the other hand, the return to operating profitability meant that future tax savings had to be balanced by means of the formation of a latent tax position with an effect on results due to the remaining accumulated losses brought forward. In view of the number of preceding loss years and the continuing comparatively high uncertainty with respect to future estimates of results, the volume of balanced tax savings was based only on the expected results for the next planned year. The value of future tax saving volume from accumulated losses brought forward was adjusted as of 31 August 2005, as in previous years.
The EBIT, financial result and income tax effect resulted in an overall annual profit of € 0.55 million in the 2004/2005 financial year in comparison to an annual loss of € –0.5 million in 2003/2004. Per share, based on the average in circulation during the year, this represents an annual profit of € 0.05 for 2004/2005 in comparison to € –0.05 in the previous year.
Fig. 12 | EBITA distribution according to segments in € 000s