Page 74 - Restamax Plc Annual Report 2017

Changes in the regulation environment, especially Goodwill has been tested during the last quarter of 2017.
changes in laws related to serving alcoholic beverages According to the impairment tests of these asset items,
and foodstuffs, labour legislation or variations in their goodwill has not been impaired.
interpretation, may adversely affect the company’s
operating activities. The restaurant and night club Shareholders
business that Restamax is involved in is heavily
regulated in Finland. The administrative and regulatory At the end of the 2017 financial period, Restamax Plc’s
authorities interpret the laws and stipulations applied share capital stood at EUR 150,000 (EUR 150,000) and the
to Restamax; these are related to alcohol, rights to serve total number of shares stood at 16,619,620 (16,619,620).
alcohol, and foodstuffs, food safety and hygiene. The At the end of the financial period, the company did not
interpretations and practices of the authorities may also possess any shares in Restamax Plc. Restamax Plc’s
vary greatly between different regions. The laws and subsidiary Smile Huippu Oy held 43,500 shares (43,500)
stipulations often impose fairly strict, and sometimes on 31 December 2017, which is equivalent to approxi-
even retroactive, responsibilities for costs and damages. mately 0.26% of the company’s entire share capital.
Restamax strives to practise its operations in accordance
with all applicable decrees and regulations and other According to the list of shareholders, the company had
legal provisions. 2,781 (2,052) shareholders on 29 December 2017.

A significant share of Restamax’s business operations On 29 December 2017, the company’s ten largest
is subject to licences and closely controlled. Unexpected shareholders were as follows:
regulatory changes may adversely affect the company’s
operating activities, since Restamax’s operating activi- Shareholder Shares (pcs) ....... %
ties are significantly dependant on matters subject to a Pimu Capital Oy ** 3,500,000 .......... 2.1
licence, such as licences to serve alcohol. A significant Laine Capital Oy * 3,036,000 .......... 18.3
portion of Restamax’s turnover is created by the sale of Niemi Mika Rainer 2,236,789 .......... 13.5
alcoholic beverages; therefore, the company’s sales may Mr Max Oy* 1,574,064 .......... 9.5
be materially affected by the temporary or permanent Evli Suomi Pienyhtiöt 831,248 ............. 5.0
withdrawal of its licences to serve alcohol. Sign Systems Finland Oy 751,540.............. 4.5
Niemi Hanna-Stiina 414,822 ............. 2.5
A ruling in any trial or authoritative process that is Mutual Pension Insurance
negative to the company may adversely affect the Company Ilmarinen 395,000 ............. 2.4
company’s operating activities. Restamax has extensive Laakkonen Mikko Kalervo 340,000 ............ 2.0
operations all over Finland, and Group companies may Elo Mutual Pension
become a party to or an object of a trial, authoritative Insurance Company 271,566 ............. 1.6
process or legal action that is related to their operations. Total 3,351,029 ........... 80.3
Due to the nature of trials, authoritative processes and
other adversarial processes and claims, their outcome * Entity controlled by Board member Timo Laine.
is difficult to anticipate, and no reliable predictions
can be made concerning such processes or claims that ** Entity controlled by Board member Mikko Aartio.
are currently pending or that can be expected in the
future. Any ruling that is negative to Restamax in any Non-financial information
trial, authoritative process or legal action may have a
materially adverse effect on the operating activities, Description of business model
financial position, operating income and future outlook
of Restamax or one of its units, and the share price. Restamax’s head office is in Tampere and the company
also has regional offices at many locations around
The primary financial risks for the company are liquidity, Finland. The Group has restaurants at many locations
interest and credit risks. The company finances its around Finland.
operating activities and growth using income from oper-
ations as well as equity and credit capital. The financial Restamax’s business mainly comprises the produc-
position and liquidity of the company are affected by its tion and provision of restaurant services and labour hire
future cash flows and related risk factors, and the avail- services. Purchases by Restamax Group from producers of
ability of financing. The majority of the Group’s labour products and services from outside the Group constitute
hire business is targeted at the restaurant industry. approximately 19% of the Group’s turnover. Restamax has
Therefore, any changes on the restaurant market and in approximately 520 producers and suppliers of products/
the level of employment in the field will also affect the goods and services from outside the Group
Group’s labour hire business. The labour hire business
may increase the Group’s credit losses. Approximately 44.6% of the Group’s turnover is spent
on employee salaries and social security. Labour at the
Damage risks, sich as the fire risk, are covered with appro- Group’s branches is strongly local.
priate insurances, and they cover property risks, inter-
ruption risks and liability for damage risks. An external Environmental matters
partner is used to take care of insurance issues. The
intention of taking out insurance policies is to cover, at a In its operations, Restamax endeavours to take into
sufficient protection level, all risks which it is sensible to account and reduce its environmental impact and to
protect against financially or for some other reason. promote recycling. Restamax Group’s restaurants comply

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