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3.3 Liquidity risk

The Orell Füssli Group monitors its liquidity risk through prudent liquidity management by pursuing the principle of its maintaining a liquidity reserve in excess of daily and monthly needs for operating funds. This includes holding sufficient reserves of cash and cash equivalents, funding possibilities by maintaining an adequate amount of credit facilities and the ability to issue shares or bonds on the market. Rolling liquidity planning is therefore conducted based on expected cash flows and is regularly updated. It has to be borne in mind that the book Retailing divisions customarily hold higher liquidity reserves at year-end due to the seasonal nature of their businesses and these are reduced again in the following quarter. Average liquidity reserves are usually much lower than those held at year-end are.

Available liquidity as of the balance sheet date was as follows:

Liquidity reserves and credit facilities

in CHF thousand   Notes   31.12.2018   31.12.2017
Cash and cash equivalents   4.12    99,994   85,961
Prepayments PoC / from customers   4.22    –37,741   –31,628
Other financial assets / liabilities   4.15 / 4.24    –1,635   –3,625
Cash and cash equivalents net       60,618   50,708
 
Thereof assigned to other shareholders       8,562   11,315
Disposable cash and cash equivalents       52,056   39,393
 
Available lines of credit       66,825   83,200
./. Secured guarantees by banks (without prepayment guarantees)       –1,018   –3,258
./. Lines of credit used         –1,170
Total disposable cash and cash equivalents and unused lines of credit       117,863   118,165

As well as the committed credit facilities in local currencies, sufficient funds should also be available to conduct ordinary business activities in the future. After the disposal of parts of Atlantic Zeiser GmbH the committed credit facilities for Zeiser GmbH are determined according to the remaining business.

If additional liquidity is required for significant investments in non-current assets and expenditure on future acquisitions, an adjustment of the credit facilities may be considered. However, a mortgage could also be taken out on the unencumbered property at Dietzingerstrasse in Zurich.