xbrli:pureiso4217:DKK179742462021-01-012021-12-31cmn:ConsolidatedMember179742462021-01-012021-12-311cmn:ConsolidatedMember179742462021-01-012021-12-311cmn:ConsolidatedMember179742462021-01-012021-12-312cmn:ConsolidatedMember179742462021-01-012021-12-313cmn:ConsolidatedMember179742462021-01-012021-12-311179742462021-01-012021-12-312179742462021-01-012021-12-313179742462021-01-012021-12-314179742462021-01-012021-12-315179742462021-01-012021-12-312cmn:ConsolidatedMember179742462020-01-012020-12-31cmn:ConsolidatedMember179742462021-01-012021-12-31179742462020-01-012020-12-31179742462021-01-012021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMembercmn:ConsolidatedMember179742462021-01-012021-12-31fsa:OtherStatutoryReservesMembercmn:ConsolidatedMember179742462021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember179742462021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember179742462020-01-012020-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember179742462021-01-012021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember179742462021-01-012021-12-31fsa:RetainedEarningsMember179742462021-01-012021-12-31fsa:RetainedEarningsMember179742462020-01-012020-12-31fsa:RetainedEarningsMember179742462021-12-31cmn:ConsolidatedMember179742462020-12-31cmn:ConsolidatedMember179742462021-12-31179742462020-12-31179742462021-01-01cmn:ConsolidatedMember179742462020-01-01cmn:ConsolidatedMember179742462021-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember179742462021-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMembercmn:ConsolidatedMember179742462021-01-01fsa:OtherStatutoryReservesMembercmn:ConsolidatedMember179742462021-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember179742462021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember179742462021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMembercmn:ConsolidatedMember179742462021-12-31fsa:OtherStatutoryReservesMembercmn:ConsolidatedMember179742462021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember179742462021-01-01fsa:ContributedCapitalMember179742462021-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember179742462021-01-01fsa:ReserveForDevelopmentExpenditureMember179742462021-01-01fsa:RetainedEarningsMember179742462021-12-31fsa:ContributedCapitalMember179742462021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember179742462021-12-31fsa:ReserveForDevelopmentExpenditureMember179742462021-12-31fsa:RetainedEarningsMember179742462021-01-01179742462021-01-012021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember179742462021-01-012021-12-31fsa:ContributedCapitalMember179742462021-01-012021-12-311cmn:ConsolidatedMember179742462020-01-012020-12-311cmn:ConsolidatedMember179742462021-01-012021-12-31fsa:ManagementMembercmn:ConsolidatedMember179742462020-01-012020-12-31fsa:ManagementMembercmn:ConsolidatedMember179742462021-01-012021-12-31fsa:BoardOfDirectorsMembercmn:ConsolidatedMember179742462020-01-012020-12-31fsa:BoardOfDirectorsMembercmn:ConsolidatedMember179742462021-01-012021-12-31fsa:ManagementMember179742462020-01-012020-12-31fsa:ManagementMember179742462021-01-012021-12-31fsa:BoardOfDirectorsMember179742462020-01-012020-12-31fsa:BoardOfDirectorsMember179742462021-01-012021-12-31fsa:ShorttermDeferredIncomeMembercmn:ConsolidatedMember179742462021-01-012021-12-31fsa:ReserveForDevelopmentExpenditureMemberGrundlag for konklusionKonklusionRegnskabsklasse C, stor virksomhed33963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegning2020-12-312020-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2021-12-312021-01-01LTP Group A/S17974246Årsrapport8600Silkeborg26PapirfabrikkenKøbenhavnKøbenhavn K1473<br /><br />8BryghuspladsenThe Board of Directors and the Executive Board have today considered and approved the annual report of LTP Group A/S for the financial year 01.01.2021 - 31.12.2021.The annual report is presented 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 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2021 - 31.12.2021.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.Copenhagen2022-05-09Jeannett HvidkjærHenrik Holmgaard OlssonCamilla Deichmannchief executive officerdirectordirectorJan JakobsenAstrid HaugJon Skovhus KnudsenPeter MidtgaardMorten ØstergaardchairmanTo 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 01.01.2021 - 31.12.2021, 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 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2021 - 31.12.2021 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.Silkeborg2022-05-09Peter MølkjærHeidi Julitta Østergaard Jensenmne24821mne34163State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2021
DKK'0002020
DKK'0002019
DKK'0002018
DKK'0002017
DKK'000Key figuresRevenue831,067600,227726,353614,121510,202Gross profit/loss252,166192,527205,330174,514150,563Operating profit/loss70,36447,95055,96647,64344,128Net financials2,93714,6139,5601,2907,918Profit/loss for the year69,66044,46761,69349,93940,142Balance sheet total469,641385,602358,398353,786272,486Investments in property, plant and equipment16,8644,75911,03037,10415,441Equity300,270278,281255,653214,194188,613Average invested capital incl. goodwill165,040172,723193,777156,862131,579RatiosGross margin (%)30.3432.0828.2728.4229.51Net margin (%)8.387.418.498.137.87Return on invested capital
incl. goodwill (%)42.2125.7431.8431.8430.51Return on equity (%)24.0816.6626.2624.8023.28Equity ratio (%)63.9472.1771.3360.5469.22Financial 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 activities2021 has been a year impacted by various diverted consequences of the continued global pandemic as well as
changes in the global supply chain, caused by inventory and material shortages as well as logistic challenges.
Health and wellbeing were at risk the world over, and as in 2020 our main focus remained the health and
wellbeing of our employees. The global supply chain challenges have driven up the cost of logistics and raw
materials and in the last quarter of 2021 significantly increases in utility cost were also a reality.
LTP Group has been able to remain and act as a reliable and stable partner towards customers, suppliers, and
manufacturing partners, showing strength and flexibility even though 2021 did its best to challenge our
determination and resilience. We have constantly been seeking solutions to be able to secure, fulfill our deliveries
and meet our customer’s changing needs. The dialog with our customers has become more directed to a holistic
partnership model to ensure the capacity, the supply chain and at the same time balancing the financing risk.
LTP Group managed to deliver its highest ever revenue of DKK 830 million regardless of these conditions in 2021.
This corresponds to a growth of 38% compared to 2020.
LTP Group has continued to invest, prioritize, and accelerate on shared strategic focus areas strengthening the
foundation, which include People & Culture, Digitalization and Sustainability, all seen as imperatives for
continued growth:
People – it is people and their work that make LTP Group what it is. The employees of LTP are key to the success,
their performance, well-being and knowledge significantly impacts the customer and business partner
satisfaction, and in the end the financial performance. We strive to maintain and nurse a strong culture which
ensure room for diversities and development.
In 2021 LTP Group welcomed a new country to the global footprint, establishing furniture manufacturing in
Saltillo, Mexico, thus LTP Group now operates in 6 countries.
Every day more than 2,000 employees go to work to create value for our business partners. The employees in LTP
Group have once again shown the strength of a strong culture in which the challenges are faced as a team. Local
management teams and all employees in LTP Group has delivered an incredible effort this year.
Digitalization – we are building a strong digital foundation which will enable us to support a continued growth
and scale 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.
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 batches. LTP Garment also offer its brand customers a strong suite of Value-Added services Together with the brand partners we move industry boundaries. LTP Garment work with 3-D CLO to co-develop the garments of tomorrow in a sustainable way. It also offers a 360◦ Innovation book sharing industry insight on the latest materials and trims development. Design & Development Innovation and Creation brings new a strong international design network to the forefront of co-creation.
LTP Furniture is a trusted production partner and serve as a 100% OEM partner by working with the most professional and demanding brands in the industry. Skills are evolved in an area where it is a must to be an expert in handling 1.000s variants.
Partnering with LTP gives access to numerous value-added services, partners and experts. LTP Furniture offers a total supply chain solution, including full assembly, packaging and logistics.
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.
From one of the 4 factories in Lithuania more than 2.000.000 pcs are produced every year. 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 initiated 2021 and during 2022 several sites will comply with this new standard.
In October 2021, a new location in Lithuania, of more than 4.000 square meter for production within textile solutions was ready to serve our current and new customers within the Bed & Sofa Cover segment
Development in activities and financesLTP Group performance during the year was strong. The sales have increased overall by 38% and concluded at DKK 831,067k compared to DKK 600,227k in 2020. Operating profit margin shows 8,4% slightly up from 2020.
Profit/loss for the year in relation to expected developmentsProfit before tax of DKK 79,755k versus DKK 50,887k in 2020. This is considered a very satisfactory result, and it exceed our expectations for the year.Outlook
The situation in Ukraine brings LTP Groups capacity safety in Europe at risk, and consequently LTP Group has decided to restructure the production capacity in Europe. The establishment of new and more capacity include acquisitions, as well as third-party manufacturing partnerships.
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. The production capacity in Europe is high on the 2022 agenda.
In 2022, based on the situation and the estimated uncertainty, management expect negative impact to the activities and cost levels in Europe, while activities in Asia and North America is assessed to grow, yet also impacted by increased prices. Overall, an estimated profit of DKK 65-70 mill. is expected.
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.
The outlook for 2022 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
The Pandemic and the war in Ukraine have highlighted the importance of LTP Group’s ability to manage crises and use the learnings to become even stronger and maintain a resilient organization.
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.
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.
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 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.
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 2021 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 and in the countries operated in 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 corporation with the local business units.
Statutory report on corporate social responsibilityOur sustainability activities and progress are presented in LTP Sustainable Report for 2021, which constitutes the group’s statutory reports on corporate social responsibility. The LTP Sustainable report for 2021 can be found on the company's website: https://www.ltpgroup.com/care/compliance-reports
Statutory report on the underrepresented genderPursuant to the Danish Companies Act, the Board has set a target for the proportion of General Meeting elected female board members of at least 20% (corresponding to 1 female in the Board of directors with 5 members elected at the general meeting). The present proportion og General Meeting-elected female board members is 1 female and 4 males. For other layers of management, no policies have been set as there are less than 50 employees in the Danish Company and there is not any requirements for policies for the under-represented gender in foreign subsidiaries.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. LTP Group has carried out a review of internal procedures and improvements were identified and in process of being implemented. These reviews and assessments of the adequacy of data ethics will be conducted on an annual basis.Events after the balance sheet dateWe refer to note 1 for description of events after the balance sheet date.
83106709860022662918695331135724631310400105886053683131538120054443380387275580795948629243035125216579619252686612746702111421121670330791340354861265935011643482128884321035405128098321394218804121873787036387347949951-193631-7153127136996916701871369969167018851751242867372576344549722626366110516973117563261899279754720508867337028251643859155100952046419578623000-608000696595164446715571369960125225205000000050000000200000001965951624467155696595164446715568767345-4910782950000000500000002000000019659516244671551243259109081012432591090810168876271924541975370394212918884589212783581243259109081046798535476187432508652231507623712983163018416232819492546723233015314575733064793987467119419123233015335351231382156583535123138215658138520412707481617801577723673643539486406265406087250684146135019770131958955266651669251805109121260277766734627200492331429577573196231447261363579084766852126329521197244508196250165092386019962285747170802405670001024719876143063191321137782934309145559000390004323105124594010922331454899911198175752111402755462282774122876208581667345816673436142138610693785506633462114125364329540886239306828074696409113856022503075379082824879165000005000005000005000003468456537548992233220430224183860548320548320264537165239684165655798785274678830027005027828147750000037548992548320239684165050000034684565548320264537165027828147730027005027828147950000022418386085083152746788050000023322043096974265579878027828147918621527107656000018621527107656000012291441167638150668215066821512291441174320300668215446606429975625076939880732493365880735067125823426138657385944577445715013995823023460845695106268056421654325032170942867847673863930811568932058961766772118583538222169184646107049697721185842064374696409113856022503075379082824879160-50000000-500000000-50000000-500000000-1423023304800232905702329055002329055-10000000100000000-100000001000000001288843210354051-568994191760239-13967680249561186006424185175124286733-6263661-10516973-8194024-82257601901594545608241-1133153-4404001-16864381-19732117060690100000005000000-62914653986781272448046006919-3003872-4070396-50000000-20000000Short-term deb to banks498886688073-48015006-23982323-352905262202459622876208581667341 Events after the balance sheet dateWith a part of LTP Group‘s business in Ukraine and Belarus, LTP Group is impacted by Russia’s invasion of the
sovereign state of Ukraine.
LTP Group has decided to stop all corporation with third party manufacturing partners in Belarus, and are in
transition to finalize current orders. LTP Group has decided to restructure the production capacity in Europe.
Apart from uncertainty related to LTP groups Ukrainian and Belarusian activities there have been no events since 31 December 2021 which could significantly affect the evaluation of the Group‘s financial position and revenues at 31 December 2021.
In January, LTP Group completed the divestment of the 33% shareholding in Theca A/S. Theca A/S was fully
acquired by Actona Company A/S, a company in Lars Larsen Group.
1 Events after the balance sheet dateWith a part of LTP Group‘s business in Ukraine and Belarus, LTP Group is impacted by Russia’s invasion of the sovereign state of Ukraine.
LTP Group has decided to stop all corporation with third party manufacturing partners in Belarus, and are in transition to finalize current orders. LTP Group has decided to restructure the production capacity in Europe.
Apart from uncertainty related to LTP groups Ukrainian and Belarusian activities there have been no events since 31 December 2021 which could significantly affect the evaluation of the Group‘s financial position and revenues at 31 December 2021.
In January, LTP Group completed the divestment of the 33% shareholding in Theca A/S. Theca A/S was fully acquired by Actona Company A/S, a company in Lars Larsen Group.
2 RevenuePursuant to the derogations in section 96 (1) of the Danish Financial Statements Act the Company has not
disclosed distribution of revenue across segments as Management estimates that the specification could
cause significant damage to the Company. 3 Fees to the auditor appointed by the Annual General Meeting2021
DKK2020
DKKStatutory audit services61,50058,000Other assurance engagements287,056283,838Tax services41,23648,956Other services240,622236,637630,414627,431Fees to foreign auditors not appointed by the Annual General Meeting included in above amount to DKK 321k
relating to other assurance engagements (DKK 323k in 2020) and DKK 31k to tax services (DKK 39k in
2020).
4 Staff costs2021
DKK2020
DKKWages and salaries159,695,656128,492,588Pension costs2,037,8071,179,135Other social security costs5,299,6164,363,763167,033,079134,035,486Average number of full-time employees2,0581,834Remuneration
of manage- ment
2021
DKKRemuneration
of manage- ment
2020
DKKExecutive Board5,299,9834,669,711Board of Directors845,000756,6676,144,9835,426,378Special 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.2 Staff costs2021
DKK2020
DKKWages and salaries10,554,37710,411,320Pension costs2,037,8071,179,135Other social security costs67,16653,02712,659,35011,643,482Average number of full-time employees97Remuneration
of
Manage- ment
2021
DKKRemuneration
of Manage- ment
2020
DKKExecutive Board5,299,9834,669,711Board of Directors845,000756,6676,144,9835,426,378Special 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.2058183497Remuneration
of manage- ment
2021
DKKRemuneration
of manage- ment
2020
DKKExecutive Board5,299,9834,669,711Board of Directors845,000756,6676,144,9835,426,378Remuneration
of
Manage- ment
2021
DKKRemuneration
of Manage- ment
2020
DKKExecutive Board5,299,9834,669,711Board of Directors845,000756,6676,144,9835,426,37852999834669711845000756667529998346697118450007566675 Depreciation, amortisation and impairment losses2021
DKK2020
DKKAmortisation of intangible assets3,535,2811,421,444Depreciation on property, plant and equipment9,353,1518,932,60712,888,43210,354,0513 Depreciation, amortisation and impairment losses2021
DKK2020
DKKAmortisation of intangible assets253,153186,110Depreciation on property, plant and equipment27,83027,832280,983213,9426 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax10,509,5736,711,720Change in deferred tax(276,132)(319,698)Adjustment concerning previous years(138,237)27,55610,095,2046,419,5785 Tax on profit/loss for the year2021
DKK2020
DKKChange in deferred tax623,000(608,000)623,000(608,000)7 Proposed distribution of profit/loss2021
DKK2020
DKKExtraordinary dividend distributed in the financial year50,000,00020,000,000Retained earnings19,659,51624,467,15569,659,51644,467,1556 Proposed distribution of profit and loss2021
DKK2020
DKKExtraordinary dividend distributed in the financial year50,000,00020,000,000Retained earnings19,659,51624,467,15569,659,51644,467,1558 Intangible assetsCompleted development projects
DKKAcquired intangible assets
DKKGoodwill
DKKCost beginning of year2,895,37723,215,6141,177,661Exchange rate adjustments054,3620Additions405,602727,5510Disposals0(1,970,249)0Cost end of year3,300,97922,027,2781,177,661Amortisation and impairment losses beginning of year(1,804,567)(3,970,195)(235,532)Exchange rate adjustments0(45,988)0Amortisation for the year(253,153)(3,093,702)(188,426)Reversal regarding disposals01,970,2340Amortisation and impairment losses end of year(2,057,720)(5,139,651)(423,958)Carrying amount end of year1,243,25916,887,627753,703Completed development projects
DKKAcquired intangible assets
DKKGoodwill
DKKCost beginning of year2,895,37723,215,6141,177,661Exchange rate adjustments054,3620Additions405,602727,5510Disposals0(1,970,249)0Cost end of year3,300,97922,027,2781,177,661Amortisation and impairment losses beginning of year(1,804,567)(3,970,195)(235,532)Exchange rate adjustments0(45,988)0Amortisation for the year(253,153)(3,093,702)(188,426)Reversal regarding disposals01,970,2340Amortisation and impairment losses end of year(2,057,720)(5,139,651)(423,958)Carrying amount end of year1,243,25916,887,627753,703<br />7 Intangible assetsCompleted development projects
DKKCost beginning of year2,895,377Additions405,602Cost end of year3,300,979Amortisation and impairment losses beginning of year(1,804,567)Amortisation for the year(253,153)Amortisation and impairment losses end of year(2,057,720)Carrying amount end of year1,243,259<br />Completed development projects
DKKCost beginning of year2,895,377Additions405,602Cost end of year3,300,979Amortisation and impairment losses beginning of year(1,804,567)Amortisation for the year(253,153)Amortisation and impairment losses end of year(2,057,720)Carrying amount end of year1,243,2599 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 year70,422,3973,255,98552,022,4817,809,78233,064Exchange rate adjustments106,431437,9511,117,210478,373(20,622)Additions2,007,855608,97612,140,9821,968,261138,307Disposals(682,589)(284,762)(3,402,818)0(4,992)Cost end of year71,854,0944,018,15061,877,85510,256,416145,757Depreciation and impairment losses beginning of year(22,803,654)(940,909)(35,720,640)(2,884,315)0Exchange rate adjustments(18,993)(145,158)(820,064)(133,520)0Depreciation for the year(2,839,820)(500,349)(5,007,220)(1,005,762)0Reversal regarding disposals606,90876,9183,383,05200Depreciation and impairment losses end of year(25,055,559)(1,509,498)(38,164,872)(4,023,597)0Carrying amount end of year46,798,5352,508,65223,712,9836,232,819145,7579 Property, plant and equipmentLeasehold improvements
DKKCost beginning of year83,493Cost end of year83,493Depreciation and impairment losses beginning of year(53,340)Depreciation for the year(27,830)Depreciation and impairment losses end of year(81,170)Carrying amount end of year2,32311 Financial assetsInvestments in associates
DKKOther receivables
DKKCost beginning of year666,6671,270,748Exchange rate adjustments0110,448Additions04,108Disposals0(100)Cost end of year666,6671,385,204Revaluations beginning of year37,548,9910Exchange rate adjustments(1,423)0Share of profit/loss for the year7,136,9960Dividend(10,000,000)0Revaluations end of year34,684,5640Carrying amount end of year35,351,2311,385,204Theca A/S i sold at the beginning of 2022.
AssociatesRegistered inOwnership
%Theca A/SAarhus33,310 Financial assetsInvestments in group enterprises
DKKInvestments in associates
DKKOther receivables
DKKCost beginning of year24,600,762666,667157,772Additions6,431,33704,108Disposals00(100)Cost end of year31,032,099666,667161,780Revaluations beginning of year187,709,95437,548,9910Exchange rate adjustments2,330,479(1,423)0Amortisation of goodwill(188,426)00Share of profit/loss for the year61,068,8007,136,9960Dividend(52,059,830)(10,000,000)0Revaluations end of year198,860,97734,684,5640Carrying amount end of year229,893,07635,351,231161,780A 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.Investments in
associatesRegistered inCorporate
formOwnership
%Theca A/SAarhusLimited liability company33,312 Deferred tax2021
DKK2020
DKKIntangible assets(274,000)0Property, plant and equipment(115,215)(595,838)Inventories111,548111,589Liabilities other than provisions1,432,9171,029,458Tax losses carried forward944,282891,739Deferred tax2,099,5321,436,948
Changes during the year2021
DKK2020
DKKBeginning of year1,436,9481,117,250Recognised in the income statement662,584292,134Other Changes027,564End of year2,099,5321,436,948Deferred tax has been recognised in the balance sheet as follows2021
DKK2020
DKK
Deferred tax assets2,285,7471,708,024
Deferred tax liabilities(186,215)(271,076)2,099,5321,436,948Deferred tax assetsDeferred tax asset is expected to be actualised in future earnings in the Group over the next 3-5 years. 11 Deferred tax2021
DKK2020
DKKIntangible assets(274,000)(40,000)Property, plant and equipment15,00012,000Tax losses carried forward203,000595,000Deferred tax(56,000)567,000
Changes during the year2021
DKK2020
DKKBeginning of year567,000(41,000)Recognised in the income statement(623,000)608,000End of year(56,000)567,000Deferred tax assetsThe tax losses carried forward is expected to be used within the next 3-5 years.13 PrepaymentsPrepayments under current assets relate to costs in subsequent periods.12 PrepaymentsPrepayments under current assets relate to costs in subsequent periods.14 Contributed capitalNumberPar value
DKKNominal
value
DKKShare capital5010,000.00500,00050500,00015 Non-current liabilities other than provisionsDue within 12
months
2021
DKKDue within 12
months
2020
DKKDue after
more than 12
months
2021
DKKMortgage debt4,466,0642,997,56212,291,4414,466,0642,997,56212,291,44116 Deferred incomeDeferred income contains income in subsequent periods. 17 Changes in working capital2021
DKK2020
DKKIncrease/decrease in inventories(92,908,502)(11,955,029)Increase/decrease in receivables(21,375,133)3,469,634Increase/decrease in trade payables etc.57,384,21610,245,634(56,899,419)1,760,23918 Unrecognised rental and lease commitments2021
DKK2020
DKKTotal liabilities under rental or lease agreements until maturity 13,022,59314,997,62419 Assets charged and collateralMortgage debt is secured by way of mortgages on properties.
The carrying amount of mortgaged properties is TDKK 45.734.
15 Assets charged and collateralThe Entity has guaranteed the subsidiaries’ debt to Sydbank. The subsidiaries’ bank debt amounts to DKK 2.583.574
as of 31.12.2021. 20 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, Mexico100.0060880370374767192298930762123107163880518121960478969742850831-520598305205983000118911-11891104 Other financial income2021
DKK2020
DKKFinancial income from group enterprises366,944459,914Other interest income2,209,40089,8082,576,344549,72213 Other payables2021
DKK2020
DKKHoliday pay obligation0668,2150668,21514 Contingent liabilitiesLiabilities under rental or lease agreements until maturity in total 139.766 DKK.16 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).Changes in accounting policiesThe Group and the Parent have changed their accounting policies with regard to a interpretation from the Danish Business Authority which states that deductions from the company's overdraft facility are classified as cash flows from financing activities. Previously it was classified as cash and cash equivalents in the cash flow statement. The change entails a positive effect on cash flows from financing activities of 5,1 mio.DKK in 2021 and an increase in cash and cash equivalents of the same amount.
The comparative figures have been restated following the change in accounting policies.
Apart from the areas mentioned above, the annual report has been presented applying the accounting policies consistently with last year.Recognition 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.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.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.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: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.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.
2022-05-09Jeannett Hvidkjær