The largest lettuce cultivation company in Germany want to expand to Poland and Romania. An investment with opportunities for growth, but also with risks. These risks showed themselves recently, but how will it go in the future?
Behr AG want to put together up to 10 million Euro by means of the issue of profit certificates and for that offer an annual basic interest of 8.5 percent. The term is ten years and from the eighth year the investor has the right to cancel. In case the business runs extremely well, investors may receive a bonus of maximum 1%, which is dependent on the profit, with the result that the maximum obtainable interest may even be 9.5 percent.
As usual, with a profit certificate this will only happen when Behr AG shows sufficient profit on its balance sheet. In case this is lower than the interest then it will decrease proportionally. This arrangement includes, that in case of loss investors will share in the loss, because the rights of refund are smaller proportionally as well. There the investors can only hope that the profit situation will improve in the coming years again.
Finally the financial director Ulf Wittlich is of the opinion that, on the basis of the business construction, losses are virtually impossible. Because the issuer of Behr AG is the operative holding company of the concern, responsible for strategy and sales.
Behr AG want to put together up to 10 million Euro by means of the issue of profit certificates and for that offer an annual basic interest of 8.5 percent. The term is ten years and from the eighth year the investor has the right to cancel. In case the business runs extremely well, investors may receive a bonus of maximum 1%, which is dependent on the profit, with the result that the maximum obtainable interest may even be 9.5 percent.
As usual, with a profit certificate this will only happen when Behr AG shows sufficient profit on its balance sheet. In case this is lower than the interest then it will decrease proportionally. This arrangement includes, that in case of loss investors will share in the loss, because the rights of refund are smaller proportionally as well. There the investors can only hope that the profit situation will improve in the coming years again.
Finally the financial director Ulf Wittlich is of the opinion that, on the basis of the business construction, losses are virtually impossible. Because the issuer of Behr AG is the operative holding company of the concern, responsible for strategy and sales.
Worse years in the cultivation of vegetables, such as for instance 2004, 2007 and 2008, when the main product iceberg lettuce could only be produced at a loss by the suppliers, had as a result only an indirect influence on the results of Behr AG.
So far as Behr AG was in a position to show stable annual surpluses of between 1.73 and 1.24 million Euro over the last three years. The annual surplus, however, decreased between 2005 and 2007 despite increasing turnovers of 1.8 million to Euro 231,000.