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01.01.2022 - 31.12.2022.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.Copenhagen2023-05-30Jeannett HvidkjærHenrik Holmgaard OlssonHans Maasbølchief executive officerdirectorJan JakobsenJon Skovhus KnudsenMorten ØstergaardKatja Lund SchjølinClaus Flyger PejstrupKenni RiisechairmanTo the shareholders of LTP Group A/SWe have audited the consolidated financial statements and the parent financial statements of LTP Group A/S for the financial year 01.01.2022 - 31.12.2022, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a
summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements
are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2022 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2022 - 31.12.2022 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional
requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further
described in the "Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements" section of this auditor’s
report. We are independent of the Group in accordance
with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.Management is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in
accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements and parent financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
<br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group's and the Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the consolidated financial statements and the parent financial statements, and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Entity’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group and the Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures
in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.Management is responsible for the management commentary.
Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement of the management commentary.Silkeborg2023-05-30Peter MølkjærHeidi Julitta Østergaard Jensenmne24821mne34163State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2022
DKK'0002021
DKK'0002020
DKK'0002019
DKK'0002018
DKK'000Key figuresRevenue1,097,718831,067600,227726,353614,121Gross profit/loss328,394252,166192,527205,330174,514Operating profit/loss74,86570,36447,95055,96647,643Net financials(5,844)2,93714,6139,5601,290Profit/loss for the year117,42869,66044,46761,69349,939Balance sheet total545,788469,641385,602358,398353,786Investments in property, plant and equipment26,64716,8644,75911,03037,104Equity346,883300,270278,281255,653214,194Average invested capital incl. goodwill296,325200,195172,723193,777156,862RatiosGross margin (%)29.9230.3432.0828.2728.42Net margin (%)10.708.387.418.498.13Return on invested capital
incl. goodwill (%)39.6334.8025.7431.8431.84Return on equity (%)36.2924.0816.6626.2624.80Equity ratio (%)63.5663.9472.1771.3360.54Financial highlights are defined and calculated in accordance with the current version of "Recommendations &
Ratios" issued by the CFA Society Denmark.Gross margin (%)
:Gross profit/loss * 100
RevenueNet margin (%)
:
Profit/loss for the year * 100
RevenueReturn on invested capital incl. goodwill (%)
:Profit/loss for the year * 100
Average invested capital incl. goodwillReturn on equity (%)
:Profit/loss for the year * 100
Average equityEquity ratio (%)
:Equity * 100
Balance sheet totalPrimary activities
LTP Group at a glance
LTP Group serves premium garment and furniture brands, offering manufacturing expertise developed and refined through years of experience. LTP Group is a true specialist in handling textiles for many different products and together with the customers LTP Group continuously keeps a focus on strengthening the sustainable offering of technically complex production capabilities and services to ensure longevity of products delivered.
LTP Group works with Sport & Outdoor Garment and Contract furniture brands whose ambitions match to LTP Group, as an industry innovator demonstrating an ambitious commitment to quality through manufacturing practices, combined with both functionality and innovation.
Since LTP Groups foundation in the 1980s, the company has kept pace with an ever-changing marketplace. Being a global manufacturer, LTP Group today delivers its offering from 12 modern production sites, located in six countries.
LTP Group occupies a strategic position in the supply chain between material suppliers and the brands, serving a critical role from idea stage through to the delivery of the final product.
Performance and progress
2022 was another year of growth and significant strategic progress for LTP Group. LTP Group has been able to remain and act as a reliable and stable partner for customers, suppliers, and manufacturing partners, showing strength and flexibility. All colleagues worked vigorously towards delivering value for customers by constantly seeking solutions securing and fulfilling deliveries, meeting the changing needs. The dialog with our customers has become more directed to a holistic partnership model to ensure capacity, the supply chain and at the same time balancing the financing risk.
Despite the disruption in the global supply chain, the impact of the war in Ukraine, inflationary pressure, LTP group managed to deliver a record-high revenue of DKK 1,1 billion. This corresponds to a growth of 32% compared to 2021.
Strategic priorities
In LTP Group the business foundation continues to be strengthened by investing in People & Culture, Digitalization and Sustainability.
Our highly committed and skilled staff remains the foundation for LTP Group as a company. The ability to deliver value to the customers, to innovate, to grow, and deliver long-term growth is contributed by the LTP employees around the world. LTP Group strives to be a company who recognizes the value of personal development and human relations, nursing a strong culture ensuring room for diversities.
In 2022 LTP Group welcomed a new country to the global footprint, establishing garment manufacturing in Botoșani, Romania, thus LTP Group now operates in 6 countries, including the Danish strategic headquarter.
Investing in technology across manufacturing, logistics, sales and administration supports the continued growth, scale and resilience of the LTP Group business. More use of data and advanced analytics in everything we do is a must. We will continue to introduce digital solutions to the benefit of all partners of LTP Group. Technology plays a critical role in fulfilling sustainability ambitions. By investing in data and designing with 3D technology we can foster new ideas to support customers in reducing the climate footprint.
LTP Group is committed to significantly improving the overall sustainability performance and driving positive change across the industries in which the company operates. LTP Group is a production partner embodying the link between functionality and longevity, and to anchor the commitment, it is essential that sustainability is kept as an integrated part of operations, values, and culture. Therefore, we have made sustainability one of our corporate strategic pillars. The 4 commitments themes include: Care for People; Embrace Circularity; Fight for Climate; Unlock Transparency.
LTP Group divisional activities and purposes
LTP Group includes two divisions: LTP Garment and LTP Furniture. The divisions share the vision to be the preferred partner in the market for premium garment and contract furniture brands. LTP group is led by passion and excel in a constantly evolving environment, embracing the unknown of tomorrow by a resilient, agile, innovative, global, and scalable organization comprised by empowered, dedicated and responsible employees who lead the daily operational/tactical level.
LTP Garment supports active and conscious lifestyle choices by offering sustainable manufacturing solutions for premium garment brands. LTP Garment is a global manufacturer with regional innovation centers in Europe and Asia, and with experts in each product category developing more than 1.500 new styles every year. LTP Garment operates in 6 product categories: Active Sport, Cycling, Outdoor, Athleisure, Urban Performance and Sustainable Fashion & Lifestyle.
LTP Garment’s value proposition resides in its global and sophisticated R&D setup, highly competitive production with the newest technology and own factories specialised in high-end quality, well-suited for handling production of smaller as well as larger batches. LTP Garment also offer its brand customers a strong
suite of Value-Added services such as 3-D CLO to co-develop the garments in a sustainable way, a 360◦ Innovation book sharing industry insight on the latest materials and trims development and trend analysis. Design & Development Innovation and creation brings new a strong international design network to the forefront of co-creation.
LTP Furniture is a global leader in furniture outsourcing and supports customers from product development to mass production, including assembly, packaging, logistics and direct-to customer delivery. LTP Furniture is a trusted production partner for international demanding contract and design furniture brands. Skills are evolved in an area where it is a must to be an expert in handling 1.000s variants.
The division operates in two main product categories – Contract& Design Furniture and Bed & Sofa Covers and serve more than 30 brands in suppling within the product range of: sofas, poufs, lounges, mattress covers, sofa covers, headboards, bed frames, dining chairs, office chairs, conference chairs, bar stools, acoustic panels and numerous variants of sewn accessories.
The dedicated team of more than 600 employees handles great volume and flexibility emphasised by the fact that every 15 seconds a new furniture item is finished at LTP.
The production is lean and efficient designed and powered to handle short lead times and large number of variances. All European manufacturing sites are ISO-9001 & ISO-14001 certified to ensure the highest quality and environmental standards. To secure transparency in the Supply Chain STEP certifications was obtained during 2022.
In November 2021 LTP Furniture opened its first furniture production facility in Mexico. From Spring 2022 the facility has supported the first customers with sustainable manufacturing and easy access to the largest furniture market in the world: North America. The new production facility counts 4.000 square meters and is located in Saltillo, which is an optimal logistic hub to reach the border of the United States in just hours.
From one of the 5 factories in Lithuania and Mexico more than 1,6 million pcs are produced every year.
Development in activities and financesLTP Group performance during the year was strong. The total sales have increased overall by 32% and concluded at DKK 1,097,718,305 compared to DKK 832,377,498 in 2021. Operating profit margin shows 7% slightly down from 2021. The operating profit is impacted by extraordinary writing off in total DKK 2,925,539 related to inventory, machinery and goodwill in the Belarusian entities.
In the beginning of 2022 LTP Group sold the shareholding of Theca A/S, impacting the profit before tax positively and as expected.
The establishment and build of the operation in Romania and Mexico have impacted the result for 2022 negatively. Profit/loss for the year in relation to expected developmentsProfit before tax of DKK 131,681,201 versus DKK 79,754,720 k in 2021. This is considered a very satisfactory result, and it exceed our expectations for the year.OutlookFollowing an extraordinary 2022 we expect a decline in our earnings for 2023. The geopolitical and macroeconomic environment remains highly uncertain and unforeseen changes may therefore impact the financial result of LTP Group. Growing concerns over inflation, higher interest rates, and the war in Ukraine led to a slowdown in most businesses, which has been especially visible in the second half of 2022. Whilst continuing to invest in digitalization, automation and sustainability, the capacity in LTP Group is closely monitored and adjusted to align with market demand. At the end of 2022 the global growth picture pointed to a market downturn in both divisions.
The situation in Ukraine continue to bring LTP Groups capacity safety in Europe at risk. LTP Group has during 2022 initiated a restructure of the production capacity in Europe. The establishment in Romania as of June 2022 were the first step, and further restructure continues throughout 2023.
As noted in the beginning of 2022, vigilance is called for, and LTP Group Management will stay focused to evaluate the situation and adjust our actions with consideration of all our stakeholders, from employees to customers.
In 2023, based on the market situation and the estimated uncertainty, management expect negative impact to the activities and cost levels in Europe as well as in Asia. Based on the lower demand seen in the past months.
We forecast a net sale for the full year declining up to 20% in local currencies. With lower sales volume, tight cost control and continued focus on adjusting capacity an operating profit of DKK 35-40 mill. is expected.
Despite the outlook, both divisions have a solid position and continuously strong momentum in their market segments, which allow LTP Group to continue to serve and support current and future customers growth journey.
In the beginning of January 2022, the shareholding of Theca A/S was divested. The proceeds are included in the profit and loss for 2022.
The outlook for 2023 assumes the currency exchange rates, especially the US dollar and VND against the EUR and DKK, will remain at the current rate.
Management has not found any need to change the carrying value of receivables despite the financial impact on the customers, and the production equipment and tools are kept at carrying value without further impairment needs.
Risk management
LTP Group’s ability to manage crises and use the learnings to strengthen and maintain a resilient organization continues to be important.
As a global manufacturer, LTP Group is exposed to a variety of general and specific commercial and financial risks which may have impact on LTP Group’s future growth, activities, financial position, and results.
The Board of Directors is responsible for the LTP Group risk management strategy and the overall framework for identifying and mitigating risks.
The Executive Board is responsible for the day-to-day risk management processes as well as the continuous development of the company’s risk management activities.
Risks are a natural and integral part of LTP Groups business activities. The risk landscape is changing continuously and LTP Group aim to mitigate the risks and reduce them to an acceptable level trough risk management.
LTP Groups risk management framework is based on a structured risk identification, analysis and reporting process providing the basis for risk assessments and subsequent mitigating actions.
Management in LTP Group entities conduct a risk review within their areas of responsibility at least once a year. The risks are discussed, described, scored for severity and likelihood. The risks which are identified to have the largest potential impact on LTP’s business are described below. The risks are not ranked in any order of priority.
Attract and retain employees
Employees are a vital resource for LTP Group. The business success depends on highly qualified management teams and employees with technical and operational qualifications at all organisational levels. It is critical for the capability of handling extraordinary situations like the pandemic and the war in Ukraine.
Failure to attract new talents or retaining existing, experienced key employees can potentially have long-term consequences for the operational and strategic development of LTP Group.
LTP Group strive to ensure the company to be an attractive place to work. This includes a good and safe physical environment and a focus on developing individual employees, on career development and on delegating responsibility to the employees. The local People & Culture organizations are strengthened to enhance focus on key positions and succession planning as well as attracting digital, operational, and functional talents to support the business strategic priorities.
All employees are regulated by contracts to ensure their rights as employees, and the terms offered to the employees are competitive.
Macro-economic and geo-political development
Economic recession triggered by geopolitical conflicts, rising inflation, or pandemic will have an impact on LTP Groups activity levels and, consequently, on the financial results.
LTP Group monitor its markets carefully as well as the customers behaviour and their outlook. The slowdown in the global economy and trade volumes for 2023 is included in the financial outlook. Navigating in economical down turns and consequently the demands is known in LTP Group. Keeping an agility in the business model, flexibility in the cost bases, continuously pursuit cost savings and focusing on keeping the net working capital under control are all tools to resist challenging times.
Financial affairs
The result and equity of LTP Group are impacted by several financial risks, including foreign exchange risks, interest rate risks, liquidity risks and credit risks as well as by the risk that the conditions of the international trade are changed. LTP Group does not engage in speculative transactions.
The credit risk policy includes an ongoing credit assessment, and credit insurance are established on a case-by-case basis.
LTP Group’s credit facilities carry floating interest rate. The development in interest is linked to Cibor 3 months.
Currency exposure is mainly managed in matching income and liabilities in same currencies. Some exposure is present between VND/USD and EUR/USD. No forward cover has been entered into.
IT security breaches and break down of IT systems
IT systems, networks and related processes are essential for LTP Groups day-to-day operations. By increase of digitalization of business processes, cyber-attack or non-availability of IT systems can have significant financial consequence. In addition, LTP Group has a duty to safeguard the data of customers, partners and employees as well as the company’s data.
The majority of the operation and maintenance of networks and servers, back-up, access and firewalls has been outsourced to an external partner. The outsourcing ensures an on-going update of security software and limits the risk of breakdowns. In 2022 the performance of IT platforms and security systems has been stable despite the continued increased number of employees working from home.
LTP Group’s IT objectives comprises a continued effort to increase the protection against attempts to penetrate LTP Groups IT infrastructure. The focus on heightening and strengthening the security position include reduction of the number of applications used through group wide standardization and harmonisation as well as a cross-organisational approach and systematic methods and processes to address exposure.
Compliance
At all levels in LTP Group a commitment to conduct honest and ethical business practice is a must. As a result of performing global operations, LTP Group is subject to extensive international regulatory requirements. In particular regulations related to customs, VAT, tax and data privacy.
Non-compliance may carry a long-term impact on the relationships with customers and stakeholders as well as leading to fines, claims etc.
The internal procedures, systems and employee training programmes are established to ensure compliance relevant legislation and LTP Groups Code of Conduct.
Significant compliance-related risks are monitored and managed from Group level in close cooperation with the local business units.
Statutory report on corporate social responsibilityThe statutory report on sustainability under section 99(a) and for statutory report of gender distribution under section 99(b) of the Danish Financial Statements Act, can be found in LTP Group A/S 2022 Sustainability Report.
For more information refer to LTP Group Sustainability report for 2022. https://publications.ltpgroup.com/view/312955303/
Statutory report on the underrepresented genderLTP Group is subject to the rules on target figures and policies for the gender composition of management.
LTP Group measure the composition from managers to executive management and Board of Directors. The Board of Directors comprises in the year of 17% female and 83% male, changed from 20% and 80% relatively in 2021. The target is to comply to a minimum of 33% females in 2025.
The statutory report on the underrepresented gender is included in our sustainability report for 2022 which is available at the above-mentioned link.Statutory report on data ethics policyIn 2021, guidelines on data ethics were implemented in accordance with the Danish Financial Statement Act section 99d. The guidelines describe how data ethics shall be considered and included in the use of data as well as the design and implementation of technologized used for processing data within LTP Group. Data ethics principles will be implemented through the Data Ethics Policy to ensure data management standards.
Achievements in 2022:
LTP Group has carried out a review, supported by an external consultant, of internal procedures and improvements were identified and are in process of being implemented.
Process established for reporting of data ethical concerns, incl. use of the whistleblower hotline for internal parties.
Planned activities:
Data Ethic Policy updated based on review of internal procedures.
Continuously review and assess the adequacy of data ethic.
Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. 1097718305831067098250064461869533110628621310400713616635536831315567702514338038792183035948629328394281252165796157881431274670223114188216703307914978150126593501969105512888432338605280983269626118804127486508370363873471388-1936316266026171369966266026171369961014561185175123513998257634415989754626366141278301175631316812017975472011748284270282516142533591009520455000623000117427842696595160-346845652603182086376700000007000000050000000474278421965951611742784269659516238624492356539370000000700000005000000047427842196595161134240124325911342401243259182889381688762731968047537032261998218884589113424012432594401215246798535300547725086522982873723712983116939636232819023238213611457578936169079398746023230353512310353512311430267138520417710716178014302673673643528511518826540608711341193913501977028624942826665166913444561412126027761431440720049235139207573196263838831363579020740014421263295213924555281962501246942322857471316624710247198119441831978033849092934301180005900042096074323105318548109158516247573899111981366469064027554627321059027321059027321059027321059035179369228762082287620858166734222954486106934323763103346211418626341340886239545788249469640911372512841307537908500000500000500000500000-45747500346845652495796732332204307157016896703461248762643958159591872265579878346883102300270050500000034684565689670264395815500000-45747507157013461248760300270050034688310230027005050000023322043096974265579878050000024957967388470795918722030027005033266918621511100056000332669186215111000560009812588122914419641409909002122914413594328446606455839270107380935076939107380932493365454793505067125871648817657385948659411501399112436361055611243636105568821718346084529692722267950862271069320653818608856738631886634761568932052551873972118581985724781691846462551873972118585457882494696409113725128413075379080-70000000-700000000-70000000-700000000-45747500-3573150-8147900-81479000-8147901969105512888432-39530321-568994190-13967685502581724956118104105458517512-14726595-6263661-12022710-81940243868705719015945-8292420-1133153-26696243-168643816897541706069-6999855201391567130010000000Exchange rate adjustment, intangible assetsExchange rate adjustment, tangible assets1890862171035721612-6291465744086691272448055839270-3350589-3003872-70000000-50000000Short-term deb to banks56611544988866-62105508-4801500612303161-3529052635179369228762081 Revenue2022
DKK2021
DKKGarment segment697,440,328466,814,719Furniture segment400,277,977364,252,379Total revenue by activity 1,097,718,305831,067,0982 Fees to the auditor appointed by the Annual General Meeting2022
DKK2021
DKKStatutory audit services61,50061,500Other assurance engagements298,157287,056Tax services231,93841,236Other services384,114240,622975,709630,414Fees to foreign auditors not appointed by the Annual General Meeting included in above amount to DKK 298k
relating to other assurance engagements (DKK 287k in 2021) and DKK 0k to tax services (DKK 31k in
2021).
3 Staff costs2022
DKK2021
DKKWages and salaries223,678,218159,695,656Pension costs1,438,4992,037,807Other social security costs6,025,1655,299,616231,141,882167,033,079Average number of full-time employees2,6022,058Remuneration
of manage- ment
2022
DKKRemuneration
of manage- ment
2021
DKKExecutive Board7,120,8785,299,983Board of Directors1,117,915845,0008,238,7936,144,983Special incentive programmesLTP Group has established a warrant program for members of the Executive Management. The warrant are granted in accordance with the authorizations given to the Board of Directors by the shareholders. The Board of Directors has fixed the terms of and the size of the grants of warrants, taking into account authorizations from the shareholders, and an assessment of expectations of the Group´s growth. 20.000 warrants are grated at the end of 2022 that each gives the right to subscripe 1 share in the company. Exercise of warrants is by default subject to continuing employment with LTP Group and can only be exercised within 1. January 2028 - 31. January 2028 or in case of an exit. Remuneration to executive Board includes severance pay. 1 Staff costs2022
DKK2021
DKKWages and salaries13,446,86710,554,377Pension costs1,438,4992,037,807Other social security costs92,78467,16614,978,15012,659,350Average number of full-time employees129Remuneration
of
Manage- ment
2022
DKKRemuneration
of Manage- ment
2021
DKKExecutive Board7,120,8785,299,983Board of Directors1,117,915845,0008,238,7936,144,983Special incentive programmesLTP Group has established a warrant program for members of the Executive Management. The warrant are granted in accordance with the authorizations given to the Board of Directors by the shareholders. The Board of Directors has fixed the terms of and the size of the grants of warrants, taking into account authorizations from the shareholders, and an assessment of expectations of the Group´s growth. Grant takes place as of January 1, 2023. Exercise of warrants is by default subject to continuing employment with LTP Group.Remuneration to Excutive Board includes severance pay.26022058129Remuneration
of manage- ment
2022
DKKRemuneration
of manage- ment
2021
DKKExecutive Board7,120,8785,299,983Board of Directors1,117,915845,0008,238,7936,144,983Remuneration
of
Manage- ment
2022
DKKRemuneration
of Manage- ment
2021
DKKExecutive Board7,120,8785,299,983Board of Directors1,117,915845,0008,238,7936,144,9837120878529998311179158450007120878529998311179158450004 Depreciation, amortisation and impairment losses2022
DKK2021
DKKAmortisation of intangible assets4,078,8983,535,281Impairment losses on intangible assets477,9400Depreciation on property, plant and equipment12,686,6189,353,151Impairment losses on property, plant and equipment2,447,599019,691,05512,888,4322 Depreciation, amortisation and impairment losses2022
DKK2021
DKKAmortisation of intangible assets336,282253,153Depreciation on property, plant and equipment2,32327,830338,605280,9835 Income from investments in associatesIncome from investments in associates include profit from sale of shares.3 Income from investments in associatesIncome from investments in associates include profit from sale of shares.6 Tax on profit/loss for the year2022
DKK2021
DKKCurrent tax14,058,91510,509,573Change in deferred tax194,444(276,132)Adjustment concerning previous years0(138,237)14,253,35910,095,2045 Tax on profit/loss for the year2022
DKK2021
DKKChange in deferred tax55,000623,00055,000623,0007 Proposed distribution of profit/loss2022
DKK2021
DKKExtraordinary dividend distributed in the financial year70,000,00050,000,000Retained earnings47,427,84219,659,516117,427,84269,659,5166 Proposed distribution of profit and loss2022
DKK2021
DKKExtraordinary dividend distributed in the financial year70,000,00050,000,000Retained earnings47,427,84219,659,516117,427,84269,659,5168 Intangible assetsCompleted development projects
DKKAcquired intangible assets
DKKGoodwill
DKKCost beginning of year3,300,97922,027,2781,177,661Exchange rate adjustments016,5140Additions227,2634,867,9113,197,246Disposals0(57,774)0Cost end of year3,528,24226,853,9294,374,907Amortisation and impairment losses beginning of year(2,057,720)(5,139,651)(423,958)Exchange rate adjustments0(16,703)0Impairment losses for the year0(6,876)(471,064)Amortisation for the year(336,282)(3,459,535)(283,081)Reversal regarding disposals057,7740Amortisation and impairment losses end of year(2,394,002)(8,564,991)(1,178,103)Carrying amount end of year1,134,24018,288,9383,196,804Completed development projects
DKKAcquired intangible assets
DKKGoodwill
DKKCost beginning of year3,300,97922,027,2781,177,661Exchange rate adjustments016,5140Additions227,2634,867,9113,197,246Disposals0(57,774)0Cost end of year3,528,24226,853,9294,374,907Amortisation and impairment losses beginning of year(2,057,720)(5,139,651)(423,958)Exchange rate adjustments0(16,703)0Impairment losses for the year0(6,876)(471,064)Amortisation for the year(336,282)(3,459,535)(283,081)Reversal regarding disposals057,7740Amortisation and impairment losses end of year(2,394,002)(8,564,991)(1,178,103)Carrying amount end of year1,134,24018,288,9383,196,804<br />7 Intangible assetsCompleted development projects
DKKCost beginning of year3,300,979Additions227,263Cost end of year3,528,242Amortisation and impairment losses beginning of year(2,057,720)Amortisation for the year(336,282)Amortisation and impairment losses end of year(2,394,002)Carrying amount end of year1,134,240<br />Completed development projects
DKKCost beginning of year3,300,979Additions227,263Cost end of year3,528,242Amortisation and impairment losses beginning of year(2,057,720)Amortisation for the year(336,282)Amortisation and impairment losses end of year(2,394,002)Carrying amount end of year1,134,2409 Development projectsDevelopment project comprise of new IT systems and solutions supporting BI, development of a new homepage
etc. The systems creates optimization in operations across the group companies.8 Development projectsDevelopment project comprise of new IT systems and solutions supporting BI, development of a new homepage etc. The systems creates optimization in operations across the group companies.10 Property, plant and equipmentLand and buildings
DKKPlant and machinery
DKKOther fixtures and fittings, tools and equipment
DKKLeasehold improvements
DKKProperty, plant and equipment in progress
DKKCost beginning of year71,854,0944,018,15061,877,85510,256,416145,757Exchange rate adjustments(15,524)(596,921)(1,847)(852,932)(1,283)Transfers02,530,293(2,526,403)0(3,890)Additions58,410270,90417,270,7558,346,712700,146Disposals0(30,174)(2,526,916)0(2,469)Cost end of year71,896,9806,192,25274,093,44417,750,196838,261Depreciation and impairment losses beginning of year(25,055,559)(1,509,498)(38,164,872)(4,023,597)0Exchange rate adjustments3,870272,34835,199294,9190Transfers0(1,819)1,81900Impairment losses for the year0(1,084,515)(1,346,184)0(16,900)Depreciation for the year(2,833,139)(871,751)(6,654,173)(2,327,555)0Reversal regarding disposals08,4601,863,50400Depreciation and impairment losses end of year(27,884,828)(3,186,775)(44,264,707)(6,056,233)(16,900)Carrying amount end of year44,012,1523,005,47729,828,73711,693,963821,3619 Property, plant and equipmentLeasehold improvements
DKKCost beginning of year83,493Cost end of year83,493Depreciation and impairment losses beginning of year(81,170)Depreciation for the year(2,323)Depreciation and impairment losses end of year(83,493)Carrying amount end of year011 Financial assetsInvestments in associates
DKKOther receivables
DKKCost beginning of year666,6671,385,204Exchange rate adjustments029,736Additions015,327Disposals(666,667)0Cost end of year01,430,267Revaluations beginning of year34,684,5640Reversal regarding disposals(34,684,564)0Revaluations end of year00Carrying amount end of year01,430,267Theca A/S is sold at the beginning of 2022 with a significant gain.10 Financial assetsInvestments in group enterprises
DKKInvestments in associates
DKKOther receivables
DKKCost beginning of year31,032,099666,667161,780Additions4,326,309015,327Disposals0(666,667)0Cost end of year35,358,4080177,107Revaluations beginning of year198,860,97734,684,5640Exchange rate adjustments(814,790)00Amortisation of goodwill(753,703)00Share of profit/loss for the year55,718,72900Dividend(6,688,416)00Investments with negative equity value depreciated over receivables 3,256,87600Reversal regarding disposals0(34,684,564)0Revaluations end of year249,579,67300Carrying amount end of year284,938,0810177,107A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.Theca A/S is sold at the beginning of 2022 with a significant gain.12 Deferred tax2022
DKK2021
DKKIntangible assets(250,000)(274,000)Property, plant and equipment(211,683)(115,215)Inventories0111,548Liabilities other than provisions1,531,2721,432,917Tax losses carried forward1,067,165944,282Deferred tax2,136,7542,099,532
Changes during the year2022
DKK2021
DKKBeginning of year2,099,5321,436,948Recognised in the income statement37,222662,584End of year2,136,7542,099,532Deferred tax has been recognised in the balance sheet as follows2022
DKK2021
DKK
Deferred tax assets2,469,4232,285,747
Deferred tax liabilities(332,669)(186,215)2,136,7542,099,532Deferred tax assetsDeferred tax asset is expected to be actualised in future earnings in the Group over the next 3-5 years. There is a tax losses carried forward of DKK 2,4 mill that are not recognized.13 PrepaymentsPrepayments under current assets relate to costs in subsequent periods.11 PrepaymentsPrepayments under current assets relate to costs in subsequent periods.14 CashDKK 10 mill. is locked in an Escrow account. The amount will be desbursed at the latest in June 2023.12 CashThe entity has 10 mil. DKK locked in an Escrow account. The amount will be disbursed at the latest in june 2023.15 Contributed capitalNumberPar value
DKKNominal
value
DKKShare capital5010,000.00500,00050500,00016 Non-current liabilities other than provisionsDue within 12
months
2022
DKKDue within 12
months
2021
DKKDue after
more than 12
months
2022
DKKMortgage debt3,594,3284,466,0649,812,588Prepayments received from customers0096,4143,594,3284,466,0649,909,00217 Deferred incomeDeferred income contains income in subsequent periods. 18 Changes in working capital2022
DKK2021
DKKIncrease/decrease in inventories5,232,808(92,908,502)Increase/decrease in receivables(60,948,455)(21,375,133)Increase/decrease in trade payables etc.16,185,32657,384,216(39,530,321)(56,899,419)19
Fair value informationOther investments
DKKFair value end of year 27,321,059Unrealised fair value
adjustments recognised in
the income statement
(1,532,272)14
Fair value informationOther investments
DKKFair value end of year27,321,059Unrealised fair value
adjustments recognised in
the income statement(1,532,272)20 Unrecognised rental and lease commitments2022
DKK2021
DKKTotal liabilities under rental or lease agreements until maturity 10,093,54513,022,59321 Assets charged and collateralMortgage debt is secured by way of mortgages on properties.
The carrying amount of mortgaged properties is TDKK 40.730.
16 Assets charged and collateralThe Entity has guaranteed the subsidiaries’ debt to Sydbank. The subsidiaries’ bank debt amounts to DKK 4.096.630 as of 31.12.2022. 22 SubsidiariesRegistered inOwnership
%UAB LTP TexDanKedaniniai, Lithaunia100.00UAB LTPKaunas, Lithaunia100.00UAB JMJ BalticKaunas, Lithaunia100.00LTP BelvitVitebsk, Belarus100.00LTP OrlitVitebsk, Belarus100.00LTP Vietnam Company LimitedHo Chi Minh City, Vietnam100.00LTP Ukraine LLCLviv, Ukraine100.00LTP Furniture MexicoSaltillo, Mexico100.00LTP Balkan SRLBotosani, Romania100.00549650256088037028493808122989307635015940388051818847079697424000000-6688416668841600-850358503504 Other financial income2022
DKK2021
DKKFinancial income from group enterprises1,507,649366,944Other interest income2,006,3492,209,4003,513,9982,576,34413 Deferred tax2022
DKK2021
DKKIntangible assets250,000274,000Property, plant and equipment(10,000)(15,000)Tax losses carried forward(129,000)(203,000)Deferred tax111,00056,000
Changes during the year2022
DKK2021
DKKBeginning of year56,000(567,000)Recognised in the income statement55,000623,000End of year111,00056,000<br />13 Deferred tax15 Contingent liabilitiesLiabilities under rental or lease agreements until maturity in total 834.832 DKK.17 Related parties with controlling interestThe Entity did not carry out any substantial transactions with related parties that were not concluded on
market conditions. According to Section 98c (7) of the Danish Financial Statements Act, information is provided only about transactions that have not been concluded on commen market conditions. The consolidated financial statements have been presented in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (large). The parent financial statements have been presented in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (medium).The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.falseRecognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year. <br />Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence.
Enterprises in which the Group, directly or indirectly, holds between 20% and 50% of the voting rights and exercises significant, but not controlling influence, are regarded as associates.<br />Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.
Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements. Minority interests’ pro rata shares of the profit/loss and the net assets are disclosed as separate items in Management's proposal for the distribution of net profit/loss and equity, respectively.
Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the takeover date, with net assets having been calculated at fair value.Business combinationsNewly acquired or newly established enterprises are recognised in the financial statements from the time
of acquiring or establishing such enterprises. Divested or wound-up enterprises are recognised in the income
statement up to the time of their divestment or winding-up.
The purchase method is applied at the acquisition of new enterprises, under which identifiable assets and
liabilities of these enterprises are measured at fair value at the acquisition date. Provisions for costs of
restructuring of the enterprise acquired are only made in so far as such restructuring was decided by the
enterprise acquired prior to acquisition. Allowance is made for the tax effect of restatements.Positive differences in amount (goodwill) between cost of the acquired share and fair value of the assets
and liabilities taken over are recognised under intangible assets, and they are amortised systematically over
the income statement based on an individual assessment of their useful lives. If the useful life cannot be
estimated reliably, it is fixed at 10 years. Useful life is reassessed annually. Negative balances (negative
goodwill) are recognised as income in the income statement.The uniting-of-interests method is applied on acquisition of enterprises, mergers, demergers, contributions
of assets and exchanges of shares, etc. in which the enterprises concerned are controlled by the Parent. Under
the uniting-of-interests method, the acquiree’s assets and liabilities are recognised at their carrying
amounts,
adjusted for any differences in accounting policies. The difference between the consideration
agreed and the
carrying amount of the acquiree is recognised in equity. The comparative figures are
restated.Profit or loss from divestment of enterprisesProfits or losses from divestment or winding-up of enterprises are calculated as the difference between selling
price or settlement price and the carrying amount of the net assets at the time of divestment and winding-up,
respectively.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the
transaction
date. Receivables, payables and other monetary items denominated in foreign currencies that
have not been
settled at the balance sheet date are translated using the exchange rate at the balance
sheet date. Exchange
differences that arise between the rate at the transaction date and the rate in effect
at the payment date, or the
rate at the balance sheet date, are recognised in the income statement as
financial income or financial expenses.
Property, plant and equipment, intangible assets, inventories and
other non-monetary assets that have been
purchased in foreign currencies are translated using historical
rates.
When recognising foreign subsidiaries and associates that are independent entities, the income statements
are translated at average exchange rates for the months that do not significantly deviate from the rates at
the
transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered belonging to the independent foreign entity and is translated using the exchange
rate at the
balance sheet date. Exchange differences arising out of the translation of foreign subsidiaries’
equity at the
beginning of the year at the balance sheet date exchange rates and out of the translation of income statements
from average rates to the exchange rates at the balance sheet date are classified
directly as equity.
Exchange adjustments of outstanding accounts with independent foreign subsidiaries, which are considered
part of the total investment in the subsidiary in question, are classified directly as equity.When recognising foreign subsidiaries that are integral entities, monetary assets and liabilities are
translated
using the exchange rates at the balance sheet date. Non-monetary assets and liabilities are
translated at the
exchange rate at the time of acquisition or the time of any subsequent revaluation or writedown.
The items of the
income statement are translated at the average rates of the months; however, items
deriving from non-monetary
assets and liabilities are translated using the historical rates applicable to the
relevant non-monetary items.RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement
when delivery is made and risk has passed to the buyer. Revenue from the sale of services is recognised
in the
income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and
sales
discounts and is measured at fair value of the consideration fixed.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities, including rent of premises.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary
inventory
writedowns.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of
receivables recognised in current assets.Staff costsStaff costs comprise wages and salaries, and social security contributions, pension contributions, etc
. for entity
staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible
assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and
losses from the sale of intangible assets and property, plant and equipment.Other operating expensesOther operating expenses comprise expenses of a secondary nature as viewed in relation to the Entity’s
primary
activities.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses.
<br />Income from investments in associatesIncome from investments in associates comprises the pro rata share of the individual
associates,
profit/loss after pro rata elimination of intra-group profits or losses. In addition the accounting item this year consists of a significant gain from sale of shares.Other financial incomeOther financial income comprises dividends etc. received on other investments, interest income, including
interest income on receivables from group enterprises, net capital or exchange gains on securities, payables
and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish
Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group
enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies,
amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the
portion attributable to entries directly in equity.GoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from
acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by
Management for each business area. For one amount of goodwill, it has not been
possible to estimate useful
life reliably, for which reason such useful life has been set at 10 years. Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etc.Intellectual property rights etc. comprise development projects completed and in progress with related
intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.Development projects on clearly defined and identifiable products and processes, for which the technical rate
of utilisation, adequate resources and a potential future market or development opportunity in the enterprise
can be established, and where the intention is to manufacture, market or apply the product or process in
question, are recognised as intangible assets. Other development costs are recognised as costs in the income
statement as incurred. When recognising development projects as intangible assets, an amount equalling
the costs incurred less deferred tax is taken to equity under reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and
indirectly attributable to the development projects.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible
assets and depreciation on property, plant and equipment used in the development process are recognised
in
cost based on time spent on each project.
Completed development projects are amortised on a straight-line basis using their estimated useful lives
which are determined based on a specific assessment of each development project. If the useful life cannot
be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property
rights,
the maximum period of amortisation is the remaining duration of the relevant rights. Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are
amortised
on a straight-line basis over their remaining duration, and licences are amortised on a straight-line basis over the term of the agreement.
Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentLand and buildings, plant and machinery, and other fixtures and fittings, tools and equipment are
measured at
cost less accumulated depreciation and impairment losses. Land is not depreciated.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of
the
asset until the time when it is ready to be put into operation. For self-constructed assets, cost comprises
direct
and #indirect costs of materials, components, subsuppliers and labour costs. For assets held under
finance
leases, cost is the lower of the asset’s fair value and present value of future lease payments.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible
assets
and depreciation on property, plant and equipment used in the manufacturing process are recognised
in cost
based on time spent on each asset.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line
depreciation is made on the basis of the following estimated useful lives of the assets:Useful life
Buildings10-20 yearsPlant and machinery2-10 yearsLeasehold improvements2-5 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed
the contract period.
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesInvestments in group enterprises are recognised and measured in the parent financial statements according to the equity
method.
This means that investments are measured at the pro rata share of the enterprises’ equity value plus
unamortised goodwill and plus or minus unrealised intra-group profits or losses.
Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises
are written down to net realisable value based on a specific assessment. If the Parent has a legal
or constructive
obligation to cover the liabilities of the relevant enterprise, and it is probable that such
obligation will involve a
loss, a provision is recognised that is measured at present value of the costs
necessary to settle the obligations at
the balance sheet date.
Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to
reserve
for net revaluation according to the equity method in equity.
Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.
Investments in associatesInvestments in associates are recognised and measured according to the equity method. This
means that investments are measured at the pro rata share of the associates’ equity value plus unamortised
goodwill and plus or minus unrealised pro rata intra-group profits and losses.
Associates with negative equity value are measured at DKK 0. Any receivables from these associates are
written down to net realisable value based on a specific assessment. If the Parent has a legal or constructive
obligation to cover the liabilities of the relevant associate, and it is probable that such obligation will involve
a loss, a provision is recognised that is measured at present value of the costs necessary to settle the
obligations at the balance sheet date.
Upon distribution of profit or loss, net revaluation of investments in associates is transferred to reserve for
net revaluation according to the equity method in equity.
Investments in associates are written down to the lower of recoverable amount and carrying amount.
Investments in associates fall within the definitions of both participating interests and associates, yet in these consolidated financial statements they have been presented as investments in associates because this designation reflects more accurately the Group’s involvement in the relevant entities.
ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists
of costs of raw materials, consumables, direct labour costs and indirect production costs.
Indirect production costs comprise indirect materials and labour costs, costs of maintenance of, depreciation
on and impairment losses relating to machinery, factory buildings and equipment used in the manufacturing
process, and costs of factory administration and management. Finance costs are not included in cost.
The net realisable value of inventories is calculated as the estimated selling price less completion costs and
costs incurred to execute sale.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of
assets and liabilities, for which the tax-based value is calculated based on the planned use of each
asset.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at
their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.Other investments (current assets)Other current asset investments comprise listed securities measured at fair value (market price) at the
balance sheet date.CashCash comprises cash in hand and bank deposits.DividendDividend is recognised as a liability at the time of adoption at the general meeting. Proposed dividend for
the financial year is disclosed as a separate item in equity. Extraordinary dividend adopted in the financial
year is recognised directly in equity when distributed and disclosed as a separate item in Management's
proposal for distribution of profit/loss.Mortgage debtAt the time of borrowing, mortgage debt to mortgage credit institutions is measured at cost which corresponds
to the proceeds received less transaction costs incurred. Mortgage debt is subsequently measured at
amortised
cost. This means that the difference between the proceeds at the time of borrowing and the nominal
repayable
amount of the loan is recognised in the income statement as a financial expense over the term
of the loan
applying the effective interest method.<br />Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Operating leasesLease payments on operating leases are recognised on a straight-line basis in the income statement over
the
term of the lease.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the
goods agreed or completion of the service agreed.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income
is measured at cost.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes and taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment, including acquisition of assets held under finance
leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, inception of finance leases, repayments of interest-bearing
debt, short-term bank loans, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk.
The cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes and taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment, including acquisition of assets held under finance
leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, inception of finance leases, repayments of interest-bearing
debt, short-term bank loans, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk.
2023-05-31Jeannett Hvidkjær