xbrli:pureiso4217:DKK179742462023-01-012023-12-31cmn:ConsolidatedMember179742462023-01-012023-12-311cmn:ConsolidatedMember179742462023-01-012023-12-31fsa:LiquidationAccountMembercmn:ConsolidatedMember179742462023-01-012023-12-311cmn:ConsolidatedMember179742462023-01-012023-12-312cmn:ConsolidatedMember179742462023-01-012023-12-313cmn:ConsolidatedMember179742462023-01-012023-12-311179742462023-01-012023-12-312179742462023-01-012023-12-313179742462023-01-012023-12-314179742462023-01-012023-12-315179742462023-01-012023-12-312cmn:ConsolidatedMember179742462023-12-31179742462022-12-31179742462023-01-012023-12-31179742462022-01-012022-12-31cmn:ConsolidatedMember179742462023-01-012023-12-31179742462022-01-012022-12-31179742462023-01-012023-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember179742462023-01-012023-12-31fsa:OtherStatutoryReservesMembercmn:ConsolidatedMember179742462023-01-012023-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember179742462023-01-012023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember179742462023-01-012023-12-31fsa:RetainedEarningsMember179742462023-12-31cmn:ConsolidatedMember179742462022-12-31cmn:ConsolidatedMember179742462023-01-01cmn:ConsolidatedMember179742462022-01-01cmn:ConsolidatedMember179742462023-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember179742462023-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember179742462023-01-01fsa:OtherStatutoryReservesMembercmn:ConsolidatedMember179742462023-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember179742462023-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember179742462023-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember179742462023-12-31fsa:OtherStatutoryReservesMembercmn:ConsolidatedMember179742462023-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember179742462023-01-01fsa:ContributedCapitalMember179742462023-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember179742462023-01-01fsa:ReserveForDevelopmentExpenditureMember179742462023-01-01fsa:RetainedEarningsMember179742462023-12-31fsa:ContributedCapitalMember179742462023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember179742462023-12-31fsa:ReserveForDevelopmentExpenditureMember179742462023-12-31fsa:RetainedEarningsMember179742462023-01-01179742462023-01-012023-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember179742462023-01-012023-12-31fsa:ContributedCapitalMember179742462023-01-012023-12-311cmn:ConsolidatedMember179742462023-01-012023-12-312cmn:ConsolidatedMember179742462022-01-012022-12-311cmn:ConsolidatedMember179742462022-01-012022-12-312cmn:ConsolidatedMember179742462023-01-012023-12-311cmn:ConsolidatedMember179742462023-01-012023-12-312cmn:ConsolidatedMember179742462022-01-012022-12-311cmn:ConsolidatedMember179742462022-01-012022-12-312cmn:ConsolidatedMember179742462023-01-012023-12-31fsa:ManagementMembercmn:ConsolidatedMember179742462022-01-012022-12-31fsa:ManagementMembercmn:ConsolidatedMember179742462023-01-012023-12-31fsa:BoardOfDirectorsMembercmn:ConsolidatedMember179742462022-01-012022-12-31fsa:BoardOfDirectorsMembercmn:ConsolidatedMember179742462023-01-012023-12-31fsa:ManagementMember179742462022-01-012022-12-31fsa:ManagementMember179742462023-01-012023-12-31fsa:BoardOfDirectorsMember179742462022-01-012022-12-31fsa:BoardOfDirectorsMember179742462023-01-012023-12-31fsa:ShorttermDeferredIncomeMembercmn:ConsolidatedMember179742462023-01-012023-12-31fsa:ReserveForDevelopmentExpenditureMemberGrundlag for konklusionKonklusionRegnskabsklasse C, stor virksomhed2024-05-232024-05-2333963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegning2022-12-312022-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2023-12-312023-01-01LTP Group A/S17974246Årsrapport8600Silkeborg26PapirfabrikkenKøbenhavnKøbenhavn K1473<br /><br />8Bryghuspladsen0The Board of Directors and the Executive Board have today considered and approved the annual report of LTP Group A/S for the financial year 01.01.2023 - 31.12.2023.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 31.12.2023 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2023 - 31.12.2023.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.CopenhagenJeannett HvidkjærHenrik Holmgaard OlssonRasmus Helt Poulsenchief executive officerdirectorMorten ØstergaardJon Skovhus KnudsenKatja Lund SchjølinClaus Flyger PejstrupKenni RiiseChair personTo 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 01.01.2023 - 31.12.2023, 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 31.12.2023 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2023 - 31.12.2023 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 by relevant law and regulations.<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 in the relevant law and regulations. We did not identify any material misstatement of the management commentary.SilkeborgPeter MølkjærHeidi Julitta Østergaard Jensenmne24821mne34163State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2023
DKK'0002022
DKK'0002021
DKK'0002020
DKK'0002019
DKK'000Key figuresRevenue851,6551,097,718831,067600,227726,353Gross profit/loss270,756328,645252,166192,527205,330Operating profit/loss21,00074,87270,36447,95055,966Net financials781(5,844)2,93714,6139,560Profit/loss for the year14,513117,42869,66044,46761,693Balance sheet total423,583545,788469,641385,602358,398Investments in property, plant and equipment15,35026,64716,8644,75911,030Equity310,015346,883300,270278,281255,653Average invested capital incl. goodwill299,811296,325200,195172,723193,777RatiosGross margin (%)31.7929.9430.3432.0828.27Net margin (%)1.7010.708.387.418.49Return on invested capital
incl. goodwill (%)4.8439.6334.8025.7431.84Return on equity (%)4.4236.2924.0816.6626.26Equity ratio (%)73.1963.5663.9472.1771.33Financial 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 is a supply chain and manufacturing partner that works with premium garment and furniture brands. LTP Group has extensive experience in dealing with textiles for various products and collaborates with the customers to constantly improve the sustainable quality of production skills and services that guarantee the durability of the products supplied.
LTP Group partners with Sport & Outdoor Garment and Interior Furniture brands that share LTP Group's vision of being a quality-focused, creative, and value-creating industry leader.
LTP Group has adapted to the changing market since it started in the 1980s. As a global manufacturer, LTP Group operates 9 modern production sites in 5 countries.
LTP Group is a key link in the supply chain between material suppliers and the brands, providing vital services from the concept stage to the final product delivery.
Performance and progress
Following the exceptional growth of 2022, LTP Group faced a normalizing market environment in 2023 across both our Garment and Furniture divisions.
Garment division:
The Sport & Outdoor garment market experienced a continued decline in customer and consumer demand, compounded by high inventory levels within brands and retailers. Despite a 29% decrease in sales compared to the record-breaking year of 2022, the Garment division remains a leader in its sector, supported by a healthy 10% Compound Annual Growth Rate (CAGR) over the past decade.
Furniture division:
The European contract furniture market faced a general economic slowdown throughout 2023, impacting demand by an estimated 15%. LTP Group's Furniture division sales decreased by 11%. However, the division has maintained a strong foundation with a robust 10% CAGR over the past decade.
LTP Group actively cultivates a reputation as a reliable and adaptable partner for our customers, suppliers, and manufacturing partners. This commitment is backed by our financial strength and flexibility. Our entire team is dedicated to exceeding customer expectations by proactively finding solutions, ensuring on-time deliveries, and adapting to evolving industry needs.
We've transitioned our customer relationships towards a more comprehensive partnership model. This collaborative approach focuses on securing production capacity, optimizing the supply chain, fulfill sustainable needs of tomorrow and jointly balance financial risks.
Despite the market challenges, the impact of the war in Ukraine, LTP group managed to deliver revenue of DKK 0,9 billion. This corresponds to a decrease of 22% compared to 2022.
Strategic priorities
It is LTP Groups vision to be #1 preferred manufacturer in the market segments we operate, preparing for bold decision to expand the scope of business. To excel in a constantly evolving environment, embrace the unknown of tomorrow by building a resilient, agile, innovative, global, and scalable organization comprised by empowered, dedicated and responsible employees.
LTP Group's success is built upon the dedication and expertise of our global workforce. Our employees are the driving force behind our ability to deliver exceptional value to customers, foster innovation, and achieve sustainable growth. We recognize the importance of personal development and fostering strong human connections. LTP Group is committed to cultivating a positive and inclusive company culture that empowers our employees and embraces diversity.
LTP Group has a presence in 6 countries, with the Danish headquarter as the strategic center. The global locations help customers with nearshoring and provide a flexible way to ensure high quality, capacity, and innovation platforms in Europe, Asia, and North America.
LTP Group is strategically investing in technology across our entire operation – manufacturing, logistics, sales, and administration. This focus on data, advanced analytics, and digital solutions drives continued growth, scalability, and a more resilient business. These digital advancements benefit all LTP Group partners. Optimized processes improve efficiency and collaboration, while data-driven insights empower better decision-making. Technology is critical to achieving our sustainability goals. By leveraging data and 3D design technology, we foster eco-friendly innovation. This empowers us to collaborate with customers and reduce their environmental footprint throughout the supply chain.
LTP Group is deeply committed to driving positive change in the industries we serve. We go beyond being a production partner – we believe in creating products that are both functional and long-lasting. To truly embed this commitment, sustainability is woven into the very fabric of our operations, values, and company culture.
Recognizing its critical importance, we have made sustainability a core pillar of our corporate strategy. This translates into four key areas of focus:
- Care for People: We prioritize the well-being of our employees and the communities we touch.
- Embrace Circularity: We champion sustainable practices throughout the product lifecycle, minimizing waste and maximizing resource use.
- Fight for Climate: We actively seek solutions to reduce our environmental impact and combat climate change.
- Unlock Transparency: We believe in open communication and fostering a transparent supply chain.
By focusing on these core commitments, LTP Group aims to be a leader in sustainable manufacturing practices, not just within our own operations, but inspiring across the entire industry.
LTP Group divisional activities and purposes
LTP Group includes two divisions: LTP Garment and LTP Furniture.
LTP Garment empowers premium brands to create active and conscious apparel choices. We're a global manufacturer with regional innovation centers in Europe and Asia, where our dedicated experts develop over 1,500 new styles annually. We offer a comprehensive product portfolio encompassing six key categories: Active Sport, Cycling, Outdoor, Athleisure, Urban Performance, and Sustainable Fashion & Lifestyle.
LTP Garment value proposition resides in the following areas:
- Global & Sophisticated R&D: Our network of innovation centers fosters cutting-edge design and development.
- Cutting-Edge Production: Leverage our highly competitive production facilities equipped with the latest technologies for both large and small batches.
- Dedicated Expertise: Benefit from our in-house specialists in each product category.
- High-End Quality: Our own factories specialize in crafting premium garments.
- Value-Added Services: We go beyond manufacturing. We offer a suite of services to support your success, including collaborative Design of 3D CLO technology allowing co-development of sustainable garments and Industry Insights in our 360° Innovation Book keeps you informed about the latest materials, trims, and trends.
LTP Group have legal ownership of two entities in Belarus, which no longer deliver manufacturing services for the customers. All machinery, tools and equipment are frozen due to local regulations, and the net carrying value was written off at the end of 2022. LTP Group efforts to liquidate the entities has not been successful until the date of this report.
Additionally, we actively participate in FairWear Foundation audits initiated by our brand partners, demonstrating our unwavering commitment to ethical labor practices.
The dedicated team of more than 500 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 is obtained for the European production sites.
LTP Furniture Development Accelerator Center include the latest 3D development software along with in-house wood and foam cutting capabilities to serve customers demands for shorter time-to-market on new product development as well as creating fewer prototypes of each piece of furniture leading to faster decision making and minimizing waste.
During 2023 LTP Furniture production facility in Mexico has been offering our customers manufacturing and easy access to the largest furniture market in the world: North America. The Mexican 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 4 factories in Lithuania and Mexico more than 1,3 million pcs are produced every year.
Development in activities and financesLTP Group performance during the year was impacted by the market conditions. The total sales have decreased overall by 22% and concluded at DKK 851,655,168 compared to DKK 1,097,718,305 in 2022. Operating profit margin shows 2%.
The build-up of the operations in Romania and Mexico have impacted the result for 2023 negatively.
Profit/loss for the year in relation to expected developmentsProfit before tax of DKK 21,780,544 versus DKK 131,681,201 in 2022. The profit before tax in 2022 include proceeds from divesting Theca A/S. 2023 profit before tax is considered an unsatisfactory result and is lower than our expectations for the year.OutlookThe economic outlook for 2024 continues to remain uncertain. Continued inflation and still high interest rates suggest another challenging time for consumers across markets. While the market shows early signs of recovery, we remain vigilant in navigating potential obstacles for our Garment and Furniture divisions in 2024.
In 2024 we forecast a further decrease of revenue, and with lower sales volume, tight cost control and continued focus on adjusting capacity an operating profit close to zero 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.
The outlook for 2024 assumes the currency exchange rates, especially the US dollar, MXN 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 prioritizes building a resilient organization by proactively identifying and mitigating potential risks. As a global manufacturer, we understand the inherent risks associated with operating in a dynamic international market. These risks can be commercial, financial, or operational and can impact our growth, activities, and financial performance.
LTP Group identify significant risks within social and employee relations, environment and climate, human rights, and anti-corruption. Thus, in our separate sustainability reporting, the identified risks are addressed in all four areas, including mitigating strategies.
The Board of Directors sets the overall framework for risk management, while the Executive Board oversees its daily implementation and continuous improvement. We believe risk management is an ongoing process, and we are committed to evolving our strategies to address the ever-changing risk landscape.
LTP Group has established a comprehensive risk management framework based on a structured approach:
- Identification: We actively identify potential risks across all areas of our business.
- Analysis: We analyse each risk to assess its likelihood and potential impact.
- Reporting: Identified risks are documented and reported to relevant stakeholders.
- Mitigation: We develop and implement action plans to mitigate identified risks to an acceptable level.
LTP Group entities conduct regular risk assessments at least annually. This process involves detailed discussion, scoring, and documentation of all identified risks. While the report below highlights some of the key risks we face, it is not prioritized and does not represent an exhaustive list.
Attract and retain employees
LTP Group recognizes that our employees are the cornerstone of our success. Highly qualified management teams and skilled personnel at all levels are crucial for navigating complex situations and achieving business objectives. This was particularly evident during the recent pandemic and the war in Ukraine where our team's resilience and expertise played a vital role.
We understand the importance of attracting and retaining talented individuals. LTP Group strives to be an employer of choice by fostering:
LTP Group empowers local People & Culture teams to focus on key positions, implement effective succession planning, and proactively attract digital, operational, and functional talent to support our strategic vision.
By prioritizing employee well-being, growth, and development, we build a strong foundation for LTP Group's continued success.
Macro-economic and geo-political development
LTP Group recognizes that the economic recession triggered by geopolitical conflicts poses potential challenges to our activity levels and financial results. We are actively monitoring market trends, customer behaviour, and global economic forecasts. The potential slowdown in the global economy and trade volumes for 2024 is already factored into our financial outlook.
LTP Group is building resilience through agility and efficiency and have a proven track record of successfully navigating economic downturns. We achieve this through:
By proactively managing risks and implementing these key strategies, LTP Group is well-positioned to weather challenging economic times and maintain strong financial performance.
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, MXN/USD and EUR/USD. No forward cover has been entered.
IT security breaches and break down of IT systems
Protecting our digital core, we focus on security and reliability. LTP Group recognizes the critical role of robust IT systems, networks, and processes in our daily operations. As digitalization increases, the potential consequences of cyberattacks or system downtime become even more significant. We have a fundamental duty to safeguard the data of our customers, partners, employees, and the company itself.
We have partnered with a leading external provider to manage and maintain a significant portion of our network operations. This includes ongoing security software updates, server maintenance, backups, access control, and firewalls. This partnership mitigates the risk of breakdowns and ensures our systems are constantly up to date with the latest security measures.
Despite a significant increase in remote work in 2023, our IT infrastructure has performed well. We are proud of our team's efforts to maintain system stability and security in this evolving landscape.
At LTP Group, we are constantly striving to strengthen our cyber defenses. Our key objectives include reduced attack surface, i.e., we are actively working to reduce the number of applications used across the company through standardization and harmonization. This minimizes potential vulnerabilities; Cross-Organizational Approach, i.e., we foster a company-wide culture of cybersecurity awareness. Standardizing processes and implementing systematic methods help us address security risks effectively.
By prioritizing security and reliability, LTP Group ensures a stable, secure, and trusted digital environment for all our stakeholders.
Compliance
LTP Group is committed to conduct honest and ethical business practice. 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 2023 Sustainability Report.
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, same as in 2022. The target is to comply to a minimum of 33% females in 2025.
For more information refer to the LTP Group Sustainability report for 2023. https://publications.ltpgroup.com/view/20406431/
Statutory report on the underrepresented gender20232022Supreme management bodyTotal number of members56Underrepresented gender (%)20.0017.00Target figures (%)40.0040.00Year of expected achievement of target figures20282028LTP group aims to have a diverse executive management and Board of Directors representative of surrounding society with respect to gender, age, education, competences, and thus perspectives. The executive management and Board of Directors must, as a group, have knowledge, insight, and qualifications to understand and develop LTP Group.
LTP Group aim to achieve equal gender representation in the Board of Directors by 2028 corresponding to 40% females in the Board of Directors, when having 5 members of the Board of Directors. In 2023 the Board of Directors comprised of 1 female (20%) and 4 males (80%).
In 2023 the Board of Directors was reduced by one member, reducing the number of members from 6 to 5. All recruitment practices in LTP Group include a requirement for a diverse candidate pool. In the event of changes in the Board of Directors, the recruitment practice follows the same requirement for having a diverse candidate pool.LTP Group correspondingly aims to achieve equal gender representation in executive management. In 2023 the executive management had two members, one female, one male, resulting in equal gender representation. Due to a vacancy in the executive management by year end 2023 and 2022, the management team was down one headcount. The target is based on the preferred headcount of three in executive management.The company has fewer than 50 employees and is therefore not subject to the rules for setting targets and policies for other management levels. The statutory report on sustainability under section 99(a) of the Danish Financial Statements Act, can be found in LTP Group A/S 2023 Sustainability Report.560.20.170.40.420282028LTP group aims to have a diverse executive management and Board of Directors representative of surrounding society with respect to gender, age, education, competences, and thus perspectives. The executive management and Board of Directors must, as a group, have knowledge, insight, and qualifications to understand and develop LTP Group.
LTP Group aim to achieve equal gender representation in the Board of Directors by 2028 corresponding to 40% females in the Board of Directors, when having 5 members of the Board of Directors. In 2023 the Board of Directors comprised of 1 female (20%) and 4 males (80%).
In 2023 the Board of Directors was reduced by one member, reducing the number of members from 6 to 5. All recruitment practices in LTP Group include a requirement for a diverse candidate pool. In the event of changes in the Board of Directors, the recruitment practice follows the same requirement for having a diverse candidate pool.LTP Group correspondingly aims to achieve equal gender representation in executive management. In 2023 the executive management had two members, one female, one male, resulting in equal gender representation. Due to a vacancy in the executive management by year end 2023 and 2022, the management team was down one headcount. The target is based on the preferred headcount of three in executive management.The company has fewer than 50 employees and is therefore not subject to the rules for setting targets and policies for other management levels. The statutory report on sustainability under section 99(a) of the Danish Financial Statements Act, can be found in LTP Group A/S 2023 Sustainability Report.Statutory report on data ethics policyThe guidelines on data ethics effective from 2021, in accordance with the Danish Financial Statement Act section 99d, describe how data ethics shall be considered and included in the use of data as well as the design and implementation of technologies 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 2023:
Data Ethic Policy updated based on review of internal procedures.
Planned activities:
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. 851655168109771830519625690250064465073396733104547109487715215973388627505459015282650139218302270756327328645284113606771578814422868410123138573317370959149781501879908919691055346389338605227312026962612100001774872235-635667147138906266026106266026194252381014257830501923513997864471115993873131080641278302178054413168120113634695117482842726784914253359-87800055000145126951174278420-90075-33397230480000001451269511742784242442701-75930006480000007878511134240787851113424015405073182889382549614319680418742538226199827878511134240463312414401215250207243005477271343252982873789401991169396300143939982136188865888893616900014080011430267194366177107140800114302672868873822851151881090164271134119392876752332862494289269179113444561440771984614314401598306513920722040095638388315710217620740014492398615139245552396758624694237670000996238613166247190313119441852965893384909420001180001832880420960727104031854811345805616247573814659993366469060273210590273210590273210590273210594400606735179369351793692287620819247661222954483145662994323763103390765486263413423582726545788249321582887372512841500000500000500000500000-3837865-4574756256267157013127276463461248765756627595918722310015407346883102500000-4574757157013461248760500000-383786562562631272764603468831023100154073468831025000002495796738847079591872205000002513346086145245756627503468831020332669011100003326698219342111000772195798125881138959641478358529909002285726335943280558392793073210738093930732107380931587040645479350589454257164881748313886594137516111243636375161112436363148473882171822959479296927221559107227106964452818608851057314671886634763348138255187391135673191985724783348138255187394235827265457882493215828873725128410-48000000-480000000-48000000-480000000-3380390000-33803900-338039000-3380390187990891969105548626293-507634018842539943799889942523810410545-8644711-14733747-16683606-120227107252232027453977-1119577-8292420-15350499-2669624318956386897540-6999855227817681139156713Exchange rate adjustment, intangible assetsExchange rate adjustment, tangible assets-815411892301358621711339183735721612859141576317558905583927-8411623-3350589-48000000-70000000Short-term deb to banksLoans from owners and management -98073615661154-1086847511233080-77087459-5087242888266981230316144006067351793691 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. 2 Fees to the auditor appointed by the Annual General Meeting2023
DKK2022
DKKStatutory audit services80,00061,500Other assurance engagements376,139298,157Tax services563,235231,938Other services324,027384,1141,343,401975,709Fees to foreign auditors not appointed by the Annual General Meeting included in above amount to DKK 376k
relating to other assurance engagements (DKK 298k in 2022) and DKK 217k to tax services (DKK 0k in
2022).
3 Staff costs2023
DKK2022
DKKWages and salaries218,963,376223,080,787Pension costs1,925,6811,438,499Other social security costs7,795,0446,866,447228,684,101231,385,733Average number of full-time employees2,3052,602Remunerationof management
2023
DKKRemunerationof management
2022
DKKExecutive Board5,953,8947,120,878Board of Directors1,400,0001,117,9157,353,8948,238,793Special 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 2023 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 costs2023
DKK2022
DKKWages and salaries15,351,20613,446,867Pension costs1,925,6811,438,499Other social security costs94,07292,78417,370,95914,978,150Average number of full-time employees1212Remunerationof
Manage- ment
2023
DKKRemunerationof Manage- ment
2022
DKKExecutive Board5,953,8947,120,878Board of Directors1,400,0001,117,9157,353,8948,238,793Special 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 2023 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 Excutive Board includes severance pay.230526021212Remunerationof management
2023
DKKRemunerationof management
2022
DKKExecutive Board5,953,8947,120,878Board of Directors1,400,0001,117,9157,353,8948,238,793Remunerationof
Manage- ment
2023
DKKRemunerationof Manage- ment
2022
DKKExecutive Board5,953,8947,120,878Board of Directors1,400,0001,117,9157,353,8948,238,793595389471208781400000111791559538947120878140000011179154 Depreciation, amortisation and impairment losses2023
DKK2022
DKKAmortisation of intangible assets5,080,9074,078,898Impairment losses on intangible assets(1,903)477,940Depreciation on property, plant and equipment14,122,46012,686,618Impairment losses on property, plant and equipment(402,375)2,447,59918,799,08919,691,0552 Depreciation, amortisation and impairment losses2023
DKK2022
DKKAmortisation of intangible assets346,389336,282Depreciation on property, plant and equipment02,323346,389338,6055 Tax on profit/loss for the year2023
DKK2022
DKKCurrent tax8,403,48514,058,915Change in deferred tax(1,135,636)194,4447,267,84914,253,3594 Tax on profit/loss for the year2023
DKK2022
DKKChange in deferred tax(878,000)55,000(878,000)55,0006 Proposed distribution of profit/loss2023
DKK2022
DKKExtraordinary dividend distributed in the financial year48,000,00070,000,000Retained earnings(33,487,305)47,427,84214,512,695117,427,8425 Proposed distribution of profit and loss2023
DKK2022
DKKExtraordinary dividend distributed in the financial year48,000,00070,000,000Retained earnings(33,487,305)47,427,84214,512,695117,427,84248000000700000004800000070000000-3348730547427842-33487305474278427 Intangible assetsCompleted development projects
DKKAcquired intangible assets
DKKGoodwill
DKKCost beginning of year3,528,24226,853,9294,374,907Exchange rate adjustments082,249(10,229)Additions01,119,5770Disposals0(14,153)(1,177,661)Cost end of year3,528,24228,041,6023,187,017Amortisation and impairment losses beginning of year(2,394,002)(8,564,991)(1,178,103)Exchange rate adjustments09,5210Reversal of impairment losses01,9030Amortisation for the year(346,389)(4,097,115)(637,403)Reversal regarding disposals014,1531,178,103Amortisation and impairment losses end of year(2,740,391)(12,636,529)(637,403)Carrying amount end of year787,85115,405,0732,549,614Completed development projects
DKKAcquired intangible assets
DKKGoodwill
DKKCost beginning of year3,528,24226,853,9294,374,907Exchange rate adjustments082,249(10,229)Additions01,119,5770Disposals0(14,153)(1,177,661)Cost end of year3,528,24228,041,6023,187,017Amortisation and impairment losses beginning of year(2,394,002)(8,564,991)(1,178,103)Exchange rate adjustments09,5210Reversal of impairment losses01,9030Amortisation for the year(346,389)(4,097,115)(637,403)Reversal regarding disposals014,1531,178,103Amortisation and impairment losses end of year(2,740,391)(12,636,529)(637,403)Carrying amount end of year787,85115,405,0732,549,614<br />6 Intangible assetsCompleted development projects
DKKCost beginning of year3,528,242Cost end of year3,528,242Amortisation and impairment losses beginning of year(2,394,002)Amortisation for the year(346,389)Amortisation and impairment losses end of year(2,740,391)Carrying amount end of year787,851<br />Completed development projects
DKKCost beginning of year3,528,242Cost end of year3,528,242Amortisation and impairment losses beginning of year(2,394,002)Amortisation for the year(346,389)Amortisation and impairment losses end of year(2,740,391)Carrying amount end of year787,8518 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.7 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.9 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 year71,896,9806,192,25274,093,44417,750,196838,261Exchange rate adjustments(85,494)(129,892)(536,912)36,009(1,118)Transfers2,850,3731,409,037(1,882,101)(2,377,309)0Additions2,864,4592,034,0567,485,3242,350,434616,226Disposals0(112,843)(3,018,005)(467,642)0Cost end of year77,526,3189,392,61076,141,75017,291,6881,453,369Depreciation and impairment losses beginning of year(27,884,828)(3,186,775)(44,264,707)(6,056,233)(16,900)Exchange rate adjustments3,600117,909315,43050,3330Transfers(254,063)(153,562)191,012216,6120Reversal of impairment losses068,618330,82702,930Depreciation for the year(3,059,786)(1,290,251)(7,210,222)(2,562,201)0Reversal regarding disposals072,1751,630,23500Depreciation and impairment losses end of year(31,195,077)(4,371,886)(49,007,425)(8,351,489)(13,970)Carrying amount end of year46,331,2415,020,72427,134,3258,940,1991,439,3998 Property, plant and equipmentLeasehold improvements
DKKCost beginning of year83,493Cost end of year83,493Depreciation and impairment losses beginning of year(83,493)Depreciation and impairment losses end of year(83,493)Carrying amount end of year010 Financial assetsOther receivables
DKKCost beginning of year1,430,267Exchange rate adjustments(72,216)Additions49,950Cost end of year1,408,001Carrying amount end of year1,408,0019 Financial assetsInvestments in group enterprises
DKKOther receivables
DKKCost beginning of year35,358,408177,107Additions017,259Cost end of year35,358,408194,366Revaluations beginning of year249,579,6730Exchange rate adjustments(3,380,390)0Share of profit/loss for the year18,251,9810Dividend(37,307,376)0Investments with negative equity value depreciated over receivables 15,971,3780Investments with negative equity value transferred to provisions 8,219,3420Revaluations end of year251,334,6080Carrying amount end of year286,693,016194,366A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.11 Deferred tax2023
DKK2022
DKKIntangible assets(173,000)(250,000)Property, plant and equipment46,287(211,683)Liabilities other than provisions2,186,4571,531,272Tax losses carried forward1,907,8421,067,165Deferred tax3,967,5862,136,754
Changes during the year2023
DKK2022
DKKBeginning of year2,136,7542,099,532Recognised in the income statement1,830,83237,222End of year3,967,5862,136,754Deferred tax has been recognised in the balance sheet as follows2023
DKK2022
DKK
Deferred tax assets3,967,5862,469,423
Deferred tax liabilities0(332,669)3,967,5862,136,754Deferred 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 7,3 mill that are not recognized.10 Deferred tax2023
DKK2022
DKKIntangible assets(173,000)(250,000)Property, plant and equipment5,00010,000Tax losses carried forward935,000129,000Deferred tax767,000(111,000)
Changes during the year2023
DKK2022
DKKBeginning of year(111,000)(56,000)Recognised in the income statement878,000(55,000)End of year767,000(111,000)Deferred tax assetsThe tax losses carried forward is expected to be used within the next 3-5 years.12 PrepaymentsPrepayments under current assets relate to costs in subsequent periods.11 PrepaymentsPrepayments under current assets relate to costs in subsequent periods.13 Contributed capitalNumberPar value
DKKNominal
value
DKKShare capital5010,000.00500,00050500,00014 Non-current liabilities other than provisionsDue within 12
months
2023
DKKDue within 12
months
2022
DKKDue after
more than 12
months
2023
DKKMortgage debt2,857,2633,594,3287,721,957Prepayments received from customers00113,8952,857,2633,594,3287,835,85215 Deferred incomeDeferred income contains income in subsequent periods. 16 Changes in working capital2023
DKK2022
DKKIncrease/decrease in inventories50,297,9685,232,808Increase/decrease in receivables48,625,639(60,948,455)Increase/decrease in trade payables etc.(50,297,314)4,952,24648,626,293(50,763,401)17 Unrecognised rental and lease commitments2023
DKK2022
DKKTotal liabilities under rental or lease agreements until maturity 30,608,34610,093,54518 Assets charged and collateralMortgage debt is secured by way of mortgages on properties.
The carrying amount of mortgaged properties is TDKK 40.656.
14 Assets charged and collateralThe Entity has guaranteed the subsidiaries’ debt to Sydbank. The subsidiaries’ bank debt amounts to DKK 0 as of 31.12.2023. 19 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, Romania100.0018251980549650252866930162849380811338964035015940251334608249579673614524884707821934200400000-373073763730737600-27018327018303 Other financial income2023
DKK2022
DKKFinancial income from group enterprises2,221,3311,507,649Other interest income332,2392,006,348Fair value adjustments496,62203,050,1923,513,99712 Provisions for investments in group enterprisesOther provisions comprise value of negative equity in investments in group entreprises.13 Contingent liabilitiesLiabilities under rental or lease agreements until maturity in total 779.439 DKK.15 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, with precaution for few reclassifications.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 normal 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, including loss from the sale of intangible assets and property, plant and equipment.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.
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.Other provisionsOther provisions comprise value of negative equity in investments in group entreprises etc.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.
2024-05-23Jeannett Hvidkjær