Financial Instruments - Fair values and risk management (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Classification and Carrying Amounts of Group's Financial Assets and Financial Liabilities

The following table shows the classification and carrying amounts of Group’s financial assets and financial liabilities as at December 31, 2018, 2017 and January 1, 2017.


Financial assets	31/12/18		31/12/17		01/01/17
Financial assets at amortised cost
Other non-current receivables		4,533		1,402		2,137
Trade receivables		40,967		37,549		40,138
Other current receivables		9,507		12,910		18,237
Cash and cash equivalents		62,131		55,035		64,981

Total (a)		117,138		106,896		125,493

Financial assets at fair value
Forward exchange contracts		218		339		223

Total (b)		218		339		223

Total financial assets (a+b)		117,356		107,235		125,716

Financial assets at amortised cost include trade receivables, other receivables and cash and cash equivalent. Financial assets at fair value reflect the positive change in fair value of foreign exchange forward contracts that are not designated as hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for future cash flows from accounts receivables and sale orders.


Financial liabilities	31/12/18		31/12/17		01/01/17
Financial liabilities at amortised cost
Long-term borrowings		20,943		25,717		17,961
Bank overdraft and short-term borrowings		35,148		25,967		24,427
Trade payables		77,901		76,035		70,457
Other payables		26,914		27,587		29,407

Total (a)		160,906		155,306		142,252


Financial liabilities at fair value
Forward exchange contracts	320	267	1,293

Total (b)	320	267	1,293

Total financial liabilities (a+b)	161,226	155,573	143,545

Summary of Carrying Amount and Fair Value of Financial Assets and Financial Liabilities

The following table shows the carrying amount and fair value of Group’s financial assets and financial liabilities as at December 31, 2018, 2017 and January 1, 2017, other than those with carrying amount that are reasonable approximation of fair value.


Financial assets	31/12/18				31/12/17				01/01/17
	Carrying amount		Fair value		Carrying amount		Fair value		Carrying amount		Fair value

Forward exchange contracts		218		218		339		339		223		223

Financial liabilities

Floating-rate borrowings		13,943		13,943		18,197		18,197		16,926		16,926
Fixed rate borrowings		7,000		7,000		7,520		7.520		1,035		1,035

Total long-term borrowings		20,943		20,943		25,717		25,717		17,961		17,961

Forward exchange contracts		320		320		267		267		1,293		1,293

Summary of Information about Credit Risk Exposure on Trade Receivables Using a Provision Matrix

Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix as at December 31, 2018 and January 1, 2018, further to the adoption of IFRS 9.

December 31, 2018


Trade receivables	Days past due
	<30 days			30-60 days			61-90 days			> 91 days			Total

Outstanding trade receivables		9,288			1,323			88			669			11,368
Trade receivables subject to specific valuation														39,226

Total gross carrying amount														50,594
Default rate		0.10	%		0,99	%		2.90	%		5.80	%
Expected credit loss		9			13			3			39			64

January 1, 2018


Trade receivables	Days past due
	<30 days			30-60 days			61-90 days			> 91 days			Total

Outstanding trade receivables		11,661			651			254			173			12,739
Trade receivables subject to specific valuation														35,585

Total gross carrying amount														48,324
Default rate		0.11	%		1.04	%		2.99	%		5.33	%
Expected credit loss		13			7			8			9			37

Summary of Maturity Profile of Financial Liabilities Based on Contractual Undiscounted Payments

The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments as at December 31, 2018 and 2017.


December 31, 2018	Less than 2 months		2 to 12 months		1 to 2 years		2 to 5 years		More than 5 years		Total

Long-term borrowings		860		9,722		3,177		5,381		1,803		20,943
Bank overdraft and short-term borrowings		35,148		—		—		—		—		35,148
Trade and other payables		26,914		77,901		—		—		—		104,815
Losses on derivative financial instruments		320		—		—		—		—		320

Total financial liabilities		63,242		87,623		3,177		5,381		1,803		161,226


December 31, 2017	Less than 2 months		2 to 12 months		1 to 2 years		2 to 5 years		More than 5 years		Total

Long-term borrowings		314		4,526		10,576		7,455		2,846		25,717
Bank overdraft and short-term borrowings		25,967		—		—		—		—		25,967
Trade and other payables		27,587		76,035		—		—		—		103,622
Losses on derivative financial instruments		267		—		—		—		—		267

Total financial liabilities		54,135		80,561		10,576		7,455		2,846		155,573


January 1, 2017	Less than 2 months		2 to 12 months		1 to 2 years		2 to 5 years		More than 5 years		Total

Long-term borrowings		659		10,973		2,853		3,476		—		17,961
Bank overdraft and short-term borrowings		24,427		—		—		—		—		24,427
Trade and other payables		29,407		70,457		—		—		—		99,864
Losses on derivative financial instruments		1,293		—		—		—		—		1,293

Total financial liabilities		55,786		81,430		2,853		3,476		—		143,545

Summary of Sensitivity to Reasonably Possible Change in Interest Rates on that Portion of Loans and Borrowings Affected

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Group’s profit before tax is affected through the impact on floating rate borrowings as follows:


	Increase/decrease in basis points		Effect on profit before tax

2018		+ 45		(71	)
2018		- 45		71

2017		- 45		(90	)
2017		- 45		78

Summary of Sensitivity to Reasonably Possible Change in Foreign Exchange Rates and Impact on Profit Before Tax

The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant.


	Change in foreign exchange rates			Effect on profit before tax

2018		+5	%		2,776
2018		-5	%		(3,183	)

2017		+5	%		3,023
2017		-5	%		(3,449	)

Summary of Changes in Liabilities Arising from Financing Activities

The following tables show the changes in liabilities arising from financing activities for the two years ended as at December 31, 2018.


December 31, 2018	Jan 1, 2018		Cash flows			Changes in fair value			Dec 31, 2018

Long-term borrowings		25,717		(4,774	)		—			20,943
Bank overdraft and short term borrowings		25,967		9,181			—			35,148
Losses on derivative financial instruments		267		—			53			320

Total liabilities from financing activities		51,951		4,407			53			56,411


December 31, 2017	Jan 1, 2017		Cash flows			Changes in fair value			Dec 31, 2017

Long-term borrowings		17,961		7,756			—			25,717
Bank overdraft and short term borrowings		24,427		1,540			—			25,967
Losses on derivative financial instruments		1,293		—			(1,026	)		267

Total liabilities from financing activities		43,681		9,296			(1,026	)		51,951