Investor Relations
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Note 17 - Shareholders’ equity

Consolidated shareholders’ equity

Share capital

Parent Company’s share capital.

Other capital contributions

This refers to capital contributed by the owners and includes share premium reserves that were transferred to the statutory reserve at December 31, 2005. As of January 1, 2006 and forward, allocations to share premium reserves are also recognized as capital contributions.

Reserves

Hemtex’ reserves consist solely of translation reserves. The translation reserve contains all exchange-rate differences that arise in the translation of financial reports from foreign operations that have prepared their accounts in another currency than that used for the Group’s financial reports. The Parent Company and the Group present their reports in SEK.  

Retained earnings and net profit for the year

Retained earnings and net profit for the year includes profits earned by the Parent Company and its subsidiaries, less dividends paid. Previous allocations to statutory reserves, including transferred share premium reserves, are included in this equity item.

Shareholders’ equity in the Parent Company

Share capital

The registered share capital amounts to SEK 102,681,000 (73,344,000) and comprises 41,072,360 shares (29,337,400). Hemtex AB has only one type of share with all shares carrying equal voting rights.

Restricted reserves

Restricted reserves may not be reduced through dividends.

Statutory reserve: The objective of the statutory reserve is to save a portion of net profit that is not needed to cover losses brought forward.

Non-restricted equity

Share premium reserve: When a share is issued at a premium price, meaning that payment is received in excess of the share’s par value, an amount corresponding to the payment received in excess of the par value is transferred to the share premium reserve. According to the transition rule in the amendment to the Swedish Annual Accounts Act, funds transferred to the premium reserve prior to January 1, 2006 are to be transferred to the statutory reserve in the first annual report prepared after January 1, 2006. Premium reserves arising after January 1, 2006 are recognized as non-restricted equity.

Retained earnings and net profit for the year: corresponds to the total accumulated gains and losses generated, less dividends paid.

Capital management

In accordance with the Board of Directors’ policy, the Group’s financial objective is to have a favorable capital structure and financial stability, thereby retaining investors, credit providers, market confidence and to constitute a basis for continued development of business operations. Capital is defined as total equity.