the hedge (or the portion of the hedge concerned) was deemed to be effective or not, as deﬁned by IAS 39. In the event that an appreciation was initially recognized in other comprehensive income, the accumulated proﬁts or losses are then included in income for the period in which the initially planned transaction actually takes place.
NOTE 3.2 INTEREST RATE RISK
The Group’s cash surpluses consist exclusively of interest-bearing sight accounts held with blue-chip international banks. The foreign exchange risk-hedging contracts are negotiated exclusively in France with the three company’s banks. The corresponding asset values are monitored regularly.
NOTE 3.5 LIQUIDITY RISK
Since the Group no longer has ﬁnancial debt, it is not exposed to interest-rate risk. Its residual borrowings (€0.4 million at December 31, 2014) consist exclusively of interest-free government grants. Finally, the Group follows a conservative policy in short-term investing its cash surpluses, placing them only in money market mutual funds classiﬁed as “euro money market funds” by the Autorité des Marchés Financiers, in negotiable certiﬁcates of deposit issued by the company’s banks, or in interest-bearing sight accounts.
NOTE 3.3 CUSTOMER DEPENDENCY RISK
The main indicator monitored by the Group in order to measure a possible liquidity risk is available cash (see note 18.1). This indicator is compared against cash forecasts over a six-month time horizon. The risk that the Group may have to contend with a shortterm cash shortage is close to zero. The Group’s free cash represents a substantial and sufﬁcient liquidity reserve. Thanks to its structurally negative or near-zero working capital requirement, any cash ﬂows generated by the Group help to bolster its liquidity.
There is no material risk of dependence on any particular customer or group of customers, as no individual customer represented more than 7% of consolidated revenues in 2014 as was the case in previous years, and the company’s 10 largest customers represented less than 20% revenues combined, and the top 20 less than 25%.
NOTE 3.4 CREDIT AND COUNTERPARTY RISKS
The Board of Directors has proposed to the Shareholders’ Meeting on April 30, 2015 to declare a dividend of €0.25 per share in 2015 in respect of ﬁscal year 2014. The company declared a dividend of €0.22 per share in 2014, in respect of ﬁscal year 2013.
TAX ON DIVIDENDS
The Group is exposed to credit risks in the event of customer insolvency or default. This risk is heightened in the context of the economic crisis and can negatively impact Group proﬁt. The Group pays close attention to the security of payment for the systems and services delivered to its customers. It notably manages this risk via a range of procedures, which include preventively analyzing its customers’ solvency and provide for the strict and systematic application of several measures for dealing with customers in arrears. The Group’s exposure to counterparty risks arises from its cash holdings and contracts entered into within the framework of its policy on foreign exchange risk hedging.
The Second Supplementary Budget Act for 2012 (deuxième loi de ﬁnances rectiﬁcative pour 2012), dated August 16, 2012, has instituted a tax on dividends in the form of an additional contribution to income tax equal to 3% of the amounts distributed by companies subject to income tax in France. It applies to all dividends paid with effect from August 17, 2012 and must be recognized at the time of approval of the dividends by the Board of Directors. A tax expense of €197,000 has been recognized on dividends paid in 2014 in respect of ﬁscal year 2013. This amount was fully recognized in the income statement, as per IAS 12.
POST CLOSING EVENTS
No signiﬁcant event has occurred since December 31, 2014.
126 – 2014 Financial Report Consolidated ﬁnancial statements