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ÉTATS FINANCIERS
6
PARENT COMPANY FINANCIAL STATEMENTS
loan and a €200 million revolving credit facility (see “Significant events
after the reporting date” below). Consequently, the drawdown on the
revolving credit facility included in “Bank borrowings” at 31 December
2016 was repaid in early 2017.
Changes in share capital and issue premiums
The Company’s share capital totalled €22,218,216 at 31 December
2016, unchanged from 31 December 2015.
Significant events after the reporting date
On 24 January 2017 Assystem entered into a new €280 million
financing arrangement with a pool of banks, comprising (i) an
€80 million term loan redeemable at maturity in January 2022 and
(ii) a €200 million five-year revolving credit facility with two one-year
extension options (subject to the lenders’ agreement).
The related financing agreement contains a covenant based on the
consolidated gearing ratio (consolidated net debt at the test date/
EBITDA for the past 12 months as adjusted for acquisitions and
divestments). This ratio is measured at the end of each half-year period
(with the first test taking place at 31 December 2016), and must not
exceed 2.75 at end-December and 3.0 at end-June. If the covenant
is breached, a qualified majority of lenders (representing at least two
thirds of the lending commitments) may demand early repayment of the
corresponding borrowings. At 31 December 2016, the Group’s gearing
ratio was below the ceiling specified in the covenant.
The Odirnane bonds that remained outstanding at 31 December 2016
(representing 8.8% of the original issue) have been redeemed in full in
cash, without any Assystem shares allocated to their holders. The cost of
these redemptions, including accrued coupons, totalled €14.35 million,
which was paid between late February and 6 March 2017.
Risk factors
ASG LEGAL DISPUTE
ASG is involved in a legal dispute with Acergy (since renamed Subsea
7) and Iska Marine concerning a fire that occurred in January 2010
on board a ship – the Acergy Falcon – which was dry-docked in Brest
for maintenance at the time. There were no significant developments in
this case during 2016. The only noteworthy facts during the year were
of a procedural nature as the proceedings concerning the merits of the
case were re-listed with the Brest Commercial Court, which ordered
that all of the pending cases related to this same incident should be
joined and heard together. As in prior periods, Assystem still considers
that there is no evidence that ASG was at fault or that it will necessarily
be held fully or partially liable. In addition, as in previous periods, the
Group confirms that in the event ASG is held liable, this claim would
be covered under the Group’s third-party liability insurance policies.
TAX AUDIT
In late 2014 Assystem France received notification of a €13.5 million
tax reassessment relating to research tax credits. Assystem considers
that this reassessment is based on a general position taken by the
French tax authorities which is applicable to all of the French companies
concerned. Assystem is contesting the grounds of the reassessment in
their entirety. However, in view of new case law in 2015, and based
on the opinions of legal experts, the Group set aside a €7.3 million
provision in its 2015 financial statements. At 31 December 2016
Assystem had not yet received a payment notice from the tax authorities
for the reassessed amount and the valuation of the related risk was
unchanged compared with 31 December 2015. The risk related to
this litigation was transferred from Assystem France to Assystem SA on
30 December 2016 (see Note 5 – Provisions).
NOTE 2
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation and summary of significant
accounting policies
Assystem’s parent company financial statements for the year ended
31 December 2016 have been prepared in accordance with French
generally accepted accounting principles including the principle of
segregation of accounting periods. They are presented on a going
concern basis and accounting policies have been applied consistently
from one year to the next.
Accounting entries are based on the historical cost convention.
Fixed assets
Property, plant and equipment are stated at cost, corresponding to either
purchase cost (including incidental expenses but excluding transaction
costs), or production cost.
Interest on borrowings specifically used to finance property, plant and
equipment is not included in production cost.
Intangible assets are carried at cost, excluding financial expenses,
which are not capitalised.
ASSYSTEM
REGISTRATION DOCUMENT
2016
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