Auditors warn against bankruptcy by Heckler & Koch
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The gun manufacturer has high debts. The auditors therefore see an "existence-threatening risk" – if it fails to provide sufficient liquidity. It's about two alternatives.
D The auditors of the weapon manufacturer Heckler & Koch see the company's continued existence in danger. According to information from WELT AM SONNTAG, the auditing company KPMG has introduced a warning passage in its statement according to the consolidated balance sheet for 2018.
It has the title "Significant uncertainty in connection with continued operations". In particular, the auditors point to the risk of lack of liquidity.
The company's continued existence is therefore dependent on the fact that this year considerably more money comes from high-yield products in the cash. If this fails, financing would be needed from "external sources". If this is not enough, "there is a risk that jeopardizes the company's continued existence," it says.
The Board believes in the immediate turnaround
The Board itself points out this risk in the consolidated accounts. However, he is convinced that the round will succeed. A positive development is expected this year and with a certain increase in sales, a clearly improved positive operating profit.
The arms producer in Oberndorfer has long been burdened by high debts. The Group's sales increased by 21 percent in 2018 to EUR 220.95 million. Still, the bottom line was EUR 8.05 million again a loss. The debt amounts to EUR 381.7 million.
As stated in the invitation to the Annual General Meeting, the financial expert Jean-Christoph Arntz, who was recently elected to the Board in 2018, surprisingly delivered. He will be replaced by the auditor Martin Heiner Sorg from the law firm Binz in Stuttgart.