Batenburg

Notes to the consolidated balance sheet
in € 1,000
1. Property, plant and equipment		Machines	Other
	Land and	and	tangible
	buildings	Installations	assets	Total
Value at costs	15,269	131	8,932	24,332
Accumulated depreciation (-)	5,241	80	6,783	12,104
Balance at 1 January 2007	10,028	51	2,149	12,228
Changes in 2007:
Investments	677	46	1,980	2,703
Business combinations	161	390	250	801
Deconsolidation	-	-	403	403
Disposals (-)	82	-	70	152
Depreciation (-)	728	114	743	1,585
Total changes 2007	28	322	1,014	1,364
Value at costs	15,297	1,003	10,022	26,322
Accumulated depreciation (-)	5,242	629	6,859	12,730
Balance at 31 December 2007/
1 January 2008	10,055	374	3,163	13,592
Changes in 2008:
Investments	134	588	1,198	1,920
Disposals (-)	-	-	29	29
Depreciation (-)	790	190	1,035	2,015
Total changes 2008	-656	398	134	-124
Value at costs	15,431	1,591	10,764	27,786
Accumulated depreciation (-)	6,032	819	7,467	14,318
Balance at 31 December 2008	9,399	772	3,297	13,468

The actual value of land and buildings, based on recent appraisals, amounts to € 14.1 million (2007: € 14.3 million).

2. Intangible assets	2008	2007
Goodwill
Value at costs	13,432	6,106
Accumulated amortisation (-)	1,728	398
Balance at 1 January	11,704	5,708
Business combinations	95	7,326
Impairment	-	1,330
Total changes	95	5,996
Value at costs	13,527	13,432
Accumulated amortisation (-)	1,728	1,728
Balance at 31 December	11,799	11,704

The goodwill in the consolidated balance sheet at 31 December 2008 relates to acquisitions as of 2001. It relates (until 2007) to the acquisitions of Van Dalen Installatietechniek B.V., Elektrotechnisch Bureau J.H. Sparreboom B.V., Technische Handelsonderneming Bevar B.V., Van Roij Lastechniek B.V., Calibration Instruments & Systems B.V., TPC Electronics B.V., AVEC Goor B.V., TPC Electronics GmbH, Daelman Systems B.V. and Installatiebedrijf Wisse B.V.
In 2008 a new business combination is TIP B.V. This acquisitions is disclosed in the paragraph "Changes within the Company".

The recoverable amount of the cash generating units is based on value in use. For the calculation expected cash flows are used from the budgets and medium-term plans over a period of four years. For the period after four years no growth rate has been applied. Expected cash flows are calculated at a tax rate of 25.5% and discounted at a Weighted Average Cost of Capital (WACC) of 8.4% (2007: 8.6%). The WAC has changed as a result of the decreased risk-free interest rate and an increased market risk premium.
No impairment losses were recognised at 31 December 2008. The impairment in 2007 relates to IJsselmuiden B.V.

3. Inventories	2008		2007
Trade goods	13,385		13,397
Raw materials	1,922		2,042
Provision for obsolete goods and materials	3,780		-3,702
Total	11,527		11,737


4. Trade receivables	2008		2007
Trade receivables up to 3 months	26,638		25,904
Trade receivables older than 3 months	1,231		1,585
Provision for doubtful debts	-753		-736
Total	27,116		26,753

The average agreed term of payment amounts to approximately 30 days. Credit risks increase when trade receivables are older than 3 months.


5. Work in progress	2008		2007
Cumulative incurred costs and profit at the end of the year	35,172		29,928
Progress billing	37,392		30,281
Work in progress	-2,760		-353
Due to customers	5,852		4,934
Due from customers	3,092		4,581


6. Cash and cash equivalents	2008		2007
Total	5,382		4,928

At the end of 2008 an amount of € 3.2 million is placed in short-term deposit (2007: none).


7. Employee benefits	2008		2007
Liabilities related to jubilee benefits	388		374
Other pension liabilities	116		94
Total	504		468

Most of the Dutch employees participate in an pension scheme organised by the pension fund Pensioenfonds Metaal en Techniek (“PMT”). According to IAS 19 this plan is treated as defined contribution plan, because PMT cannot provide reliable information on the individual liabilities and assets of the participants. Based on the guidelines and principles of PMT, the coverage ratio (assets divided by liabilities) amounts to 87% at the end of 2008 (31 December 2007: 153%). As a result of the low coverage ratio PMT will raise the pension premium by 1% and will not index the pension agreements as of 1 January 2009. The franchise for 2009 earlier was fixed on € 15,004. PMT must submit a recovery plan to the Nederlandsche Bank before 1 April 2009.


8. Deferred tax liabilities	2008		2007
Balance at 1 January	916		2,534
Changes due to differences in commercial and fiscal valuation	-78		239
Changes due to tax rate alterations	-		-1,062
Changes due to deconsolidation	-		-858
Changes due to business combinations	-		63
Balance at 31 December	838		916

	2008		2007
Non-current assets	646		704
Liabilities	193		228
Receivables	-1		-16
Total	838		916


9. Current provisions	2008		2007
Warranty provision	1,161		1,110
Pension provision	21		43
Total	1,182		1,153

Warranty provision	2008		2007
Balance at 1 January	1,110		1,165
Changes due to business combinations	-		81
Changes due to deconsolidation	-		-211
Other changes	51		75
Balance at 31 December	1,161		1,110

The provision is based on warranty obligations arising from projects for third parties. The warranty term is in general 1 year. The provision is based on historical warranty information.


10. Due to customers		2008	2007
Due to customers arises when costs incurred and profit of a project less provisions for costs is less than progress billing, taking into account the stage of completion of the construction contract		5,852	4,934

Annual report Batenburg 2008

Notes to the consolidated balance sheet