Financial statement

Notes to the company balance sheet

1. Intangible fixed assets (in EUR x 1,000)

The composition and movement of intangible fixed assets in the financial year 2015/2016 were as follows:

  Software Total
Purchase value 803 803
Cumulative depreciation - -
Book value as per July 1st 803 803
Depreciation -268 -268
Movements 2015/2016 -268 -268
Purchase value 803 803
Cumulative depreciation -268 -268
Cumulative depreciation 535 535


2. Tangible fixed assets (in EUR x 1,000)

The movement per category for tangible fixed assets for the year 2015/2016 is as follows:

  Company buildings
and land
Plant and
Other fixed
operating assets
Purchase value 18,121 12,315 181 30,617 28,481
Cumulative depreciation -10,258 -8,087 -155 -18,500 -16,552
Book value as of 1 July 7,863 4,228 26 12,117 11,929
Investments 375 1,802 - 2,177 2,150
Other value adjustments 541 - - 541 -
Disposals - - - - -14
Depreciation -834 -1,315 -15 -2,164 -1,948
Balance 7,945 4,715 11 12,671 12,117
Purchase value 19,037 14,117 181 33,335 30,617
Cumulative depreciations -11,092 -9,402 -170 -20,664 -18,500
Book value as of 30 June 7,945 4,715 11 12,671 12,117


3. Financial fixed assets (in EUR x 1,000)

The movement per category of financial fixed assets is as follows:

in group
in group
ables on
Book value as per
July 1st
26,933 2,864 9 366 25 1,480 51 31,728 30,601
Investments/increase 25 - - 106 - 8 3 142 89
Share of result of of
participating interests
1,981 - - - - - - 1,981 1,392
Dividends/repayments - -200 - -123 - - -21 -344 -554
Exchange rate fluctuations -247 - - - - - - -247 200
Movements 2015/2016 1,759 -200 - -17 - 8 -18 1,532 1,127
Book value as per
30 June
28,692 2,664 9 349 25 1,488 33 33,260 31,728

The receivables from group companies have a term between 3 years and 8 years. Interest is charged on the receivable. This varies from 4% to 6%.

4. Inventories (in EUR x 1,000)

  30-06-2016 30-06-2015
Packaging 481 506
Finished product 352 396
  833 902

No provisions for obsolescence are made on the inventories.

5. Trade receivables (in EUR x 1,000)

  30-06-2016 30-06-2015
Amortized cost of outstanding receivables 41,553 29,933
Minus: provision due to bad debts -14,832 -14,416
  26,721 15,517


6. Other receivables and accrued income (in EUR x 1,000)


  30-06-2016 30-06-2015
Pension contributions 926 855
Licences to be claimed 336 410
Prepaid expenses 525 345
Health insurance premium 209 206
Government grants 648 139
Other amounts 861 1.533
  3,505 3,488


7. Shareholders’ equity (in EUR x 1,000)

The movement per category of shareholder equity is as follows:

Shareholders’ equity Paid and
Book value as of 1 July 15,675 1,433 2,378 217 24,335 44,038
Movements in financial year 2015/2016            
Dividend payment - - - - -4,506 -4,506
Result of financial year - - - - 6,998 6,998
Exchange rate fluctuations - - - -248 - -248
Other movements - - -1,343 - -1,343 -
  - - -1,343 -248 3,835 2,244
Status as of 30 June 15,675 1,433 1,035 -31 28,170 46,282

Issued capital
The authorised capital of the company amounts to EUR 50,000,000 (2014/2015 EUR 50,000,000) divided into
2,500,000 shares of EUR 20 each, with 783,725 ordinary shares being issued. The value of the paid and called-up capital amounts to EUR 15,674,500 (EUR 15,674,500 at the end of 2014/2015).

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

Other legal reserves
Other legal reserves consist of a legal reserve for participating interests. The legal reserve for participating interests relates to companies which are valued in accordance with the equity method. The reserve concerns the difference between the participating interests’ retained profit and direct changes in equity, as determined on the basis of the parent company’s accounting policies, and the share thereof that the parent company may distribute. As to the latter share, this takes into account any profits that may not be distributable by participating interests that are Dutch limited companies based on the distribution tests to be performed by the management of those companies. The legal reserve is determined on an individual basis.

Foreign currency conversion reserve
Conversion differences are accounted for in this legal reserve which are the result of the conversion of functional currency of business operations abroad into the presentation currency of the parent company. In the case of the sale of a participating interest, the associated accumulated exchange differences are transferred to other reserves.

Other reserves
At the General Meeting, it will be proposed to approve the following appropriation of the 2015/2016 result after tax: declaration of a dividend of EUR 4.5 million and addition of the remaining amount of EUR 2.5 million to the other reserves.

8. Other debts and accrued liabilities

  30-06-2016 30-06-2015
Licences to be paid 955 1,164
Wages and salaries to be paid 724 634
Product related costs 1,359 673
Holiday allowances 878 789
Pool result to be settled 3,347 815
Other amounts 2,015 1,918
  9,278 5,993


9. Share in result in participating interests after tax

This relates to the share in result the company has in participating interests of which EUR 2,002,000 (2014/2015: EUR 1,052,000) relates to group companies.

10. Personnel expenses

  30-06-2016 30-06-2015
Gross staff wages 10,037 9,667
Employer’s social security contributions for staff 1,366 1,286
Pension premium 1,996 1,659
  13,399 12,612
Specific details for number of FTEs 2015/2016 2014/2015
Management and Administration 25 23
Commerce and communication 45 40
Purchasing and logistical planning 40 39
Research 63 63
  173 165

At HZPC Holland B.V. there were an average of 173 FTE in service, all working in the Netherlands (previous financial year 165 FTE).

Financial instruments
In normal business operations the Company makes use of financial instruments which expose the Company to market, currency, interest rate, credit and liquidity risks. To manage these risks, the company has established a policy, which includes a system of credit limits and procedures, to reduce the risks of unpredictable adverse developments in financial markets and thus the effects on the financial performance of the Company.

Credit risk
The Company incurs credit risk on loans and receivables recorded under financial fixed assets, trade and other receivables and cash. The maximum credit risk facing the Company amounts to 43 million euros. Exposure to credit risk of the Company is primarily determined by the individual characteristics of each customer. In addition, management also considers the demographics of the customer base, including the default risk of the country in which customers operate, as these factors have an influence on the credit risk, particularly in the currently deteriorating economic conditions.

Due to the unrest in the Middle East, the credit risk in this region is high. The receivables from customers from this region are mostly covered. The Company has taken the following measures to limit credit risk:

  • Safeguard measures such as advance payments, letters of credit and bank guarantees are used regularly;
  • Credit limits are actively monitored throughout the season.

As a result of international activities the Company does, by way of receivables and debts recorded in the balance sheet, hold net investments in foreign companies and is exposed to a risk in relation to future foreign currency transactions in
US dollars/British pounds/Polish zloty and Canadian dollars in particular.

On June 30 2016 the net exposure was converted into EUR at the spot rate as of the balance sheet date as follows:

x 1,000

local currency

local currency
USD 1,833 2,024 - -
GBP 3,199 2,674 - -
PLN 1,480 6,471 - -
CAD - - - -
Total 6,512 - -  

Liquidity risk
The Company monitors its liquidity position through successive liquidity budgets. The management will ensure that sufficient liquidity is available to meet the obligations. In 2015, a centralized cash management system was introduced to manage cash flows within the European companies.The Company is partly funded by grower deposits which are repayable on demand by growers. If a large number of growers collect their credit claims this will have a negative impact on the liquidity of the Company. For this, the Company has an overdraft facility of EUR 15 million.

Interest risk
The company is exposed to an interest risk in relation to the interest bearing assets and liabilities, including the grower deposits. Agreements for variable interest are made concerning these assets and liabilities. The Company therefore faces a risk with regard to future cash flows. The interest rate risk on interest-bearing receivables and payables is very limited and therefore the management has taken no additional mitigating measures.

Off-balance sheet assets and liabilities

These include:

  • Liabilities under operating leases and rent for an amount of EUR 1.1 million. Of this amount, EUR 0.4 million has a term of less than one year. The remaining amount concerns an obligation for less than five years.
  • To hedge commercial transactions in ware potatoes for the coming harvest HZPC Holland B.V. takes forward positions in the futures market for potatoes at the expense and risk of the growers. These positions are valued daily at cost price or lower market value. Any results on the year end outstanding positions are accounted for in the year to which the harvest relates. The unrealized exchange gain on the balance sheet date at the expense and risk of the growers amounted to EUR 10,450 positive.

Tax entity
Together with its subsidiaries within the Netherlands, the Company forms a tax entity for corporate income tax purposes and sales tax. The standard conditions stipulate that each of the companies is liable for the tax payable by all companies belonging to the tax entity. The fiscal entity does not differ from the fiscal entity in the consolidated financial statement.

Remuneration of managing and supervisory directors
A statement of the remuneration of the management has been omitted, pursuant to the provisions of Section 383 of Book 2, Title 9 of the Dutch Civil Code. The remuneration of Supervisory Board members amounts to EUR 71,000 (2014/2015: EUR 71,000).

Joure, 6 October 2016

The Executive Board:
G.F.J. Backx (CEO), Managing Director
H. Verveld (CCO)
J.L. van Vilsteren (CFO)

The Supervisory Board:
M.J. Ubbens, Chairman
E. Kraaijenzank
A.T. Oosterhof
W. Sinnema
B.T. Visser