The financial position of the Group remained on a strong level during the second quarter.

The interest bearing net debt amounted to EUR 55 (98) million at the end of July. The effective net debt equalled EUR 162 (232) million as it includes as debt the sold receivables of EUR 107 (133) million.

Cash and liquid assets amounted to EUR 13 (6) million. The available limit in the committed credit facilities with core banks amounted to EUR 200 (200) million, and the unused limit in the securitisation programs was EUR 136 (113) million.

Net financial items increased to EUR -2,1 million compared with EUR -1,4 million during the second quarter in 2006. Year to date net financial expenses were EUR -3,9 (-3,4) million. The change is mainly explained by the higher general interest rate level.

Net gearing decreased to 13 (26)%, and equity ratio improved slightly to 33 (32)%. 

Free cash flow and net working capital

For the quarter which ended 31st of July the operative cash flow before changes in the net working capital and investments improved to EUR 40 (32) million. Reduction in the net working capital brought in EUR 37 (-141) million. Together with the net investments of EUR -7 (51) million the free cash flow during the second quarter amounted to EUR 70 (-57) million.

Year to date operative cash flow before changes in the net working capital and investments was EUR 70 (62) million. Changes in the net working capital resulted in a negative cash flow of EUR -120 (-85) million while the net cash flow effect of investments was EUR -8 (45) million. On a year to date basis the free cash flow was EUR -58 (22) million.

The cash flow from investments during the second quarter in 2006 was impacted by the sale of MedLab division to CapMan equity funds.