ellingham plc opens a spanish subsidiary which starts operating on 2 january 2011 600521

Ellingham plc opens a Spanish subsidiary, which starts operating on 2 January 2011. On 2 January 2011 it has to buy a machine costing €30m, partly financed by a €20m bank loan repayable in instalments of €2m every 15 July and 15 January over 5 years. Financial expenses, payable on a half-yearly basis, are as follows:

2011

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June

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Dec

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Dec

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0.1

Profits are tax free. Sales will be €12m per month. A month”s inventory of finished products will have to be built up. Customers pay at 90 days.

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