4.20.4
Shareholders' equity

The movements in shareholders’ equity in 2020 were as follows:

  Share capital Share premium Hedging reserve Translation reserve Other legal reserve Other reserve Unappropriated result Total equity
  € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000
Balance at 1 January 2020
268
42,314
-432
-12,607
2,615
288,232
2,804
323,195
Net profit - - - - - - 64,829 64,829
Other comprehensive income - - -7,083 -4,681 - -666 - -12,430
Total comprehensive income
-
-
-7,083
-4,681
-
-666
64,829
52,399
 
Transfer to other reserve - - - - - 2,804 -2,804 -
Dividends paid - - - - - - - -
Share-based payments 0 -0 - - - 351 - 351
Other changes - - - - 1,675 -1,667 - 8
Balance at 31 December 2020
268
42,314
-7,515
-17,288
4,290
289,055
64,829
375,953

 

The movements in shareholders’ equity in 2019 were as follows:

  Share capital Share premium Hedging reserve Translation reserve Other legal reserve Other reserve Unappropriated result Total equity
  € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000
Balance at 1 January 2019
266
42,468
2,644
-22,184
3,273
275,654
20,271
322,391
Net profit - - - - - - 2,804 2,804
Other comprehensive income - - -3,076 9,577 - 18 - 6,519
Total comprehensive income
-
-
-3,076
9,577
-
18
2,804
9,323
 
Transfers to other reserves           20,271 -20,271 0
Dividends paid 2 -2 - - - -8,532 - -8,532
Share-based payments - -152 - - - 192 - 40
Other changes - - - 1 -658 630   -27
Balance at 31 December 2019
268
42,314
-432
-12,607
2,615
288,232
2,804
323,196

 

Accell Group has issued share options (note 4.17.4 Share-based payments of the consolidated financial statements).

Ordinary shares

At 31 December 2020, the authorised capital consists of 55,000,000 ordinary shares, 5,000,000 cumulative preference shares F and 60,000,000 cumulative preference shares B, each with a nominal value of € 0.01. Of these, 26,805,031 (2019: 26,802,751) ordinary shares have been issued and duly paid at 31 December 2020. As a result, the issued and paid-up share capital amounted to € 268,050 (2019: € 268,028).

Share premium reserve

The share premium is the income from the issuing of shares in so far as this exceeds the nominal value of the shares (above par income).

Hedging reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.

Translation reserve

The legal translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. The income statement includes a reclassification gain of € 1.3 million (2019: loss of € 7.9 million) related to the liquidation of Accell North America (2019: US discontinued operations). 

Other legal reserves

Other legal reserves consist of a legal reserve for participating interests and a legal reserve for capitalised development costs.

The legal reserve for participating interests, which amounted to € 3.6 million (2019: € 1.9 million), pertains to participating interests that are accounted for according to the equity accounting method. The reserve represents the difference between the participating interests’ retained profit and direct changes in equity, as determined on the basis of Accell Group’s accounting policies, and the share thereof that Accell Group may distribute. The legal reserve is determined on an individual basis.

In accordance with applicable legal provisions, a legal reserve for the carrying amount of € 0.7 million (2019: € 0.7 million) has been recognised for capitalised development in the Netherlands. 

Proposal for profit appropriation (Unappropriated result)

The Board of Management proposes to the General Meeting that the result after tax for 2020 of € 64.8 million (profit) should be allocated to the other reserves. The 2020 result after tax is presented as unappropriated profit in shareholders' equity.

Dividend

In light of the unforeseen and unprecedented impact of COVID-19 on economic activity and the markets Accell Group is operating in, and the uncertainty regarding the length and depth of the pandemic, the Board of Management decided on 25 March 2020 to withdraw the 2019 dividend proposal from the Annual General Meeting agenda.

In June 2020, Accell Group entered into an additional € 115 million loan facility with five syndicate banks, which was partially backed by a Dutch state guarantee in favor of the banks under the so-called GO-C scheme (Garantie Ondernemingsfinanciering Corona). The GO-C facility has a term of up to two years. In June 2020, € 60 million was drawn under this facility; the remainder is available until April 1, 2021. According to the GO-C Facility, no cash dividend distributions shall be made, unless the GO-C facility is repaid and cancelled and the original financial covenants that applied prior to June 2020 are complied with. For further details regarding the covenants see note 4.9.1.1.

As a result, no dividend will be distributed over the 2020 financial year.