iso4217:EURxbrli:pure391637642019-08-012020-07-31391637642019-08-012020-07-311391637642019-08-012020-07-312391637642019-08-012020-07-313391637642019-08-012020-07-314391637642019-08-012020-07-315391637642019-08-012020-07-316391637642019-08-012020-07-317391637642019-08-012020-07-318391637642019-08-012020-07-311391637642019-08-012020-07-312391637642018-08-012019-07-31391637642020-07-31391637642019-07-31391637642018-08-01391637642019-08-01391637642018-08-01391637642019-08-012020-07-311391637642018-08-012019-07-311391637642019-08-012020-07-3141391637642018-08-012019-07-3141391637642019-08-012020-07-3142391637642018-08-012019-07-3142RevisionspåtegningÅrsrapport39163764STARK ApSC.F. Richs Vej1152000FrederiksbergDenmark2003-03-17172019-08-012020-07-312018-08-012019-07-312020-12-23Laurits Anton JørgensenSøren Peschardt OlesenSisse Fjelsted RasmussenLene Kjærbo GrothLaurits Anton JørgensenKambiz NourbakhshPatrick Armel Leon LebretonSavvas SavvidisValentyn MakarenkoCEOCFO3396355633963556Deloitte Statsautoriseret RevisionspartnerselskabDeloitte Statsautoriseret RevisionspartnerselskabWeidekampsgade6DK-2300København39163764STARK ApSC.F. Richs Vej 1152000 FrederiksbergTO THE SHAREHOLDER OF STARK APSOpinionWe have audited the Consolidated Financial<br/>Statements and the Financial Statements of<br/>the Parent company STARK ApS for the<br/>financial year 1 August 2019 - 31 July 2020,<br/>which comprise the income statement, balance<br/>sheet, statement of changes in equity and<br/>notes including significant accounting policies,<br/>for the Group as well as the Parent, and the<br/>statement of comprehensive income and the<br/>cash flow statement of the Group. The<br/>Consolidated Financial Statements are<br/>prepared in accordance with International<br/>Financial Reporting Standards as adopted by<br/>the EU and additional requirements of the<br/>Danish Financial Statements Act, and the<br/>Financial Statements of the Parent Company<br/>are prepared in accordance with the Danish<br/>Financial Statements Act.<br/><br/>In our opinion, the Consolidated Financial<br/>Statements give a true and fair view of the<br/>Group’s financial position at 31 July 2020, and<br/>of the results of its operations and cash flows<br/>for the financial year 1 August 2019 - 31 July<br/>2020 in accordance with International<br/>Financial Reporting Standards as adopted by<br/>the EU and additional requirements under the<br/>Danish Financial Statements Act.<br/><br/>Further, in our opinion, the Financial Statements of the Parent company give a true and<br/>fair view of the Parent’s financial position at<br/>31 July 2020, and of the results of its operations for the financial year 1 August 2019 -<br/>31 July 2020 in accordance with the Danish<br/>Financial Statements Act.Basis for OpinionWe conducted our audit in accordance with<br/>International Standards on Auditing (ISAs) and<br/>the additional requirements applicable in<br/>Denmark. Our responsibilities under those<br/>standards and requirements are further<br/>described in the Auditor’s responsibilities for<br/>the audit of the Consolidated Financial<br/>Statements and the Financial Statements of<br/>the Parent company section of this auditor’s<br/>report. We are independent of the Group and<br/>the Parent in accordance with the International<br/>Ethics Standards Board of Accountants’ Code<br/>of Ethics for Professional Accountants (IESBA<br/>Code) and the additional requirements<br/>applicable in Denmark, and we have fulfilled<br/>our other ethical responsibilities in accordance<br/>with these requirements. We believe that the<br/>audit evidence we have obtained is sufficient<br/>and appropriate to provide a basis for our<br/>opinion.Management is responsible for Management’s<br/>Review.<br/><br/>Our opinion on the Consolidated Financial<br/>Statements and the Financial Statements of <br/>the Parent company does not cover Management’s Review, and we do not express any form<br/>of assurance conclusion thereon.<br/>In connection with our audit of the Consolidated Financial Statements and the Financial<br/>Statements of the Parent company, our<br/>responsibility is to read Management’s Review<br/>and, in doing so, consider whether Management’s Review is materially inconsistent with the Consolidated Financial Statements and<br/>the Financial Statements of the Parent<br/>company or our knowledge obtained in the<br/>audit or otherwise appears to be materially<br/>misstated.<br/><br/>Moreover, it is our responsibility to consider<br/>whether Management’s Review provides the<br/>information required under the Danish<br/>Financial Statements Act.<br/><br/>Based on the work we have performed, we<br/>conclude that Management’s Review is in<br/>accordance with the Consolidated Financial<br/>Statements and the Financial Statements of<br/>the Parent company and has been prepared in<br/>accordance with the requirements of the<br/>Danish Financial Statements Act. We did not<br/>identify any material misstatement of Management’s Review.Management is responsible for the preparation<br/>of the Consolidated Financial Statements that<br/>give a true and fair view in accordance with<br/>International Financial Reporting Standards as<br/>adopted by the EU and additional requirements of the Danish Financial Statements Act<br/>as well as the preparation of the Financial<br/>Statements of the Parent company that give a<br/>true and fair view in accordance with the<br/>Danish Financial Statements Act, and for such<br/>internal control as Management determines is<br/>necessary to enable the preparation of the<br/>Consolidated Financial Statements and the<br/>Financial Statements of the Parent company<br/>that are free from material misstatement,<br/>whether due to fraud or error.<br/><br/>In preparing the Consolidated Financial<br/>Statements and the Financial Statements of<br/>the Parent company, Management is responsible for assessing the Group’s and the<br/>Parent’s ability to continue as a going concern,<br/>for disclosing, as applicable, matters related to<br/>going concern, and for using the going concern<br/>basis of accounting in preparing The Consolidated Financial Statements and the Financial<br/>Statements of the Parent company unless<br/>Management either intends to liquidate the<br/>Group or the Parent or to cease operations, or<br/>has no realistic alternative but to do so.Our objectives are to obtain reasonable<br/>assurance about whether the Consolidated<br/>Financial Statements and the Financial<br/>Statements of the Parent company as a whole<br/>are free from material misstatement, whether<br/>due to fraud or error, and to issue an auditor’s<br/>report that includes our opinion. Reasonable<br/>assurance is a high level of assurance, but is<br/>not a guarantee that an audit conducted in<br/>accordance with ISAs and the additional<br/>requirements applicable in Denmark will<br/>always detect a material misstatement when it<br/>exists. Misstatements can arise from fraud or<br/>error and are considered material if, individually or in the aggregate, they could reasonably<br/>be expected to influence the economic<br/>decisions of users taken on the basis of the<br/>Consolidated Financial Statements and the<br/>Financial Statements of the Parent company.<br/><br/>As part of an audit conducted in accordance<br/>with ISAs and the additional requirements<br/>applicable in Denmark, we exercise professional judgement and maintain professional<br/>scepticism throughout the audit. We also:<br/><br/>• Identify and assess the risks of material<br/>misstatement of the Consolidated Financial<br/>Statements and the Financial Statements of<br/>the Parent company, whether due to fraud<br/>or error, design and perform audit procedures responsive to those risks, and obtain<br/>audit evidence that is sufficient and<br/>appropriate to provide a basis for our<br/>opinion. The risk of not detecting a material<br/>misstatement resulting from fraud is higher<br/>than for one resulting from error, as fraud<br/>may involve collusion, forgery, intentional<br/>omissions, misrepresentations, or the<br/>override of internal control.<br/>• Obtain an understanding of internal control<br/>relevant to the audit in order to design audit<br/>procedures that are appropriate in the<br/>circumstances, but not for the purpose of<br/>expressing an opinion on the effectiveness<br/>of the Group’s and the Parent’s internal<br/>control.<br/>• Evaluate the appropriateness of accounting<br/>policies used and the reasonableness of<br/>accounting estimates and related disclosures made by Management.<br/>• Conclude on the appropriateness of<br/>Management’s use of the going concern<br/>basis of accounting in preparing the<br/>Consolidated Financial Statements and the<br/>Financial Statements of the Parent company,<br/>and, based on the audit evidence obtained,<br/>whether a material uncertainty exists related<br/>to events or conditions that may cast<br/>significant doubt on the Group’s and the<br/>Parent’s ability to continue as a going<br/>concern. If we conclude that a material<br/>uncertainty exists, we are required to draw<br/>attention in our auditor’s report to the<br/>related disclosures in the Consolidated<br/>Financial Statements and the Financial<br/>Statements of the Parent company or, if such<br/>disclosures are inadequate, to modify our<br/>opinion. Our conclusions are based on the<br/>audit evidence obtained up to the date of our<br/>auditor’s report. However, future events or<br/>conditions may cause the Group and the<br/>Parent to cease to continue as a going<br/>concern.<br/>• Evaluate the overall presentation, structure<br/>and content of the Consolidated Financial<br/>Statements and the Financial Statements of<br/>the Parent company, including the disclosures in the notes, and whether the<br/>Consolidated Financial Statements and the<br/>Financial Statements of the Parent<br/>company represent the underlying transactions and events in a manner that gives a<br/>true and fair view.<br/>• Obtain sufficient appropriate audit evidence<br/>regarding the financial information of the<br/>entities or business activities within the<br/>Group to express an opinion on the<br/>Consolidated Financial Statements. We are<br/>responsible for the direction, supervision<br/>and performance of the group audit. We<br/>remain solely responsible for our audit<br/>opinion.<br/><br/>We communicate with those charged with<br/>governance regarding, among other matters,<br/>the planned scope and timing of the audit and<br/>significant audit findings, including any<br/>significant deficiencies in internal control that<br/>we identify during our audit.Copenhagen2020-12-23Kim Takata MückeAnette Belträo-PrimdahlState-Authorised Public AccountantState-Authorised Public Accountantmne10944mne45854SUSTAINABILITY<br/><br/>As a leading heavy building materials supplier, we<br/>aim to contribute to the solution of current and future<br/>environmental and social challenges by sourcing<br/>our products responsibly, drive efficient and safe<br/>operations and enable our customers to make<br/>informed decisions on sustainable construction.<br/><br/>STARK Group’s core values, Decency, Passion<br/>and Pride, support sustainable performance<br/>by focusing on how we interact with the<br/>world around us. We have supplemented our<br/>values with a Code of Conduct to provide<br/>more practical guiding principles for daily<br/>behaviour. It applies to all employees,<br/>temporary personnel, agents, contractors,<br/>and suppliers. The Code of Conduct was<br/>implemented in STARK Deutschland in 2020<br/>and has been distributed to all new suppliers.<br/><br/>OUR SUSTAINABILITY FRAMEWORK<br/>Our sustainability framework ensures that<br/>material issues, which can be risk-related<br/>as well as business opportunities, are<br/>identified and addressed with relevant<br/>policies, targets, and actions and that all<br/>employees and business partners understand<br/>the commercial relevance and necessity<br/>of integrated sustainability in business<br/>operations.<br/><br/>We have established a Sustainability Advisory<br/>Board consisting of the STARK Group CEO,<br/>the CEOs of each of the five business units,<br/>the CEO of STARK Sourcing, the Group<br/>CFO, Chief Strategy Officer, Chief Human<br/>Resources Officer, General Counsel, Head of<br/>Communications and Head of Sustainability.<br/><br/>The main role of the advisory board is to<br/>define the sustainability framework and set<br/>targets to ensure a common direction to<br/>work towards integrated sustainability in all<br/>business operations.<br/><br/>In 2020, we have set new and ambitious<br/>sustainability targets which have now been<br/>integrated into the Group’s business strategy<br/>for the period 2020-2024.<br/><br/>MATERIALITY AND SUSTAINABILITY<br/>PROGRAMMES<br/>Our materiality assessment covers the entire<br/>value chain, which we manage in three<br/>sections; Our Products, covering activities in<br/>the supply chain, Our Operations, covering<br/>our own activities with direct impacts, and<br/>Our Market, covering downstream activities<br/>such as construction, use and end-of-use. In<br/>defining our material issues, we also consider<br/>the principles of the UN Global Compact and<br/>how we can contribute to the Sustainable<br/>Development Goals.<br/><br/>Ten material issues have been identified. Five<br/>of them are within our operations, three in<br/>our supply chain and two in our downstream<br/>value chain. We have also identified key risks<br/>in each part of the value chain. The material<br/>issues form the basis of our ten sustainability<br/>programmes, KPIs and targets described in<br/>detail in our Sustainability Report 2019/20.<br/>Progress against these targets is reported in<br/>our Sustainability Report.<br/><br/>UN SUSTAINABLE DEVELOPMENT GOALS<br/><br/>In STARK Group, we support a wide range<br/>of the Sustainable Development Goals<br/>(SDG), focusing mainly on SDG 15 – Life<br/>on land, and SDG 12 – Responsible<br/>consumption and production. As a leading<br/>supplier of heavy building materials,<br/>primarily originating directly from natural<br/>resources (wood, stone, sand, metal, oil)<br/>sustainable use of the earth’s resources<br/>is a necessity for securing long-term<br/>access to materials. In addition, we<br/>positively impact SDG 4 and SDG 10 by<br/>offering internships and apprenticeships<br/>and ensuring equal treatment and<br/>opportunities for all.<br/><br/>The full corporate social responsibility<br/>statement of STARK ApS as required by<br/>the EU Directive 2014/95/EU and Sections<br/>99a and 99b of the Danish Financial<br/>Statements Act can be found here<br/>starkgroup.dk/newsroom/publications<br/><br/>OUR PRODUCTS<br/>Better product from trusted<br/>suppliers in order to meet customer<br/>and societal expectations, both<br/>now and for the future<br/><br/>Being a leading retailer and<br/>distributor of heavy-side building<br/>materials in Northern Europe,<br/>we source a large variety of<br/>products on a global scale. We<br/>are committed to supplying safe,<br/>reliable and robust products to<br/>our customers and to procuring<br/>products from financially<br/>healthy, reliable sources that<br/>trade ethically and responsibly,<br/>demonstrating anti-corruptive<br/>policies. We work with our<br/>suppliers, NGOs and authorities<br/>to encourage sustainable<br/>practices and accelerate the<br/>green transition in order to<br/>maintain excellent standards<br/>of product quality and safety<br/>without jeopardising ecosystems<br/>and society in the long term.<br/><br/>OUR OPERATIONS<br/>To be an efficient and trusted<br/>distributor, partner and employer of<br/>choice in the industry, ensuring<br/>long-term sustainability<br/><br/>The health and safety of our people are key<br/>priorities for STARK Group. We aim to create<br/>an accident-free workplace, and we are<br/>committed to continuous improvements in<br/>health, safety and well-being throughout our<br/>operations.<br/><br/>Employee training and competence is a mix<br/>of supervised practising in our stores, training<br/>classes and courses, and e-learning programs<br/>undertaken through the corporate e-learning<br/>system. Health, safety and sustainability<br/>issues make up a significant part of the<br/>onboarding programme, as these issues<br/>support our cooperate values and are key<br/>contributors to our long-term success.<br/>STARK Group’s employees have a high<br/>engagement level, as evidenced by STARK<br/>Group’s results in its GELx* surveys, most<br/>recently measured in November 2020, where<br/>STARK achieved a top quartile benchmark<br/>score of 74 compared to the average of 71 for<br/>other comparable businesses.<br/><br/>Environment & Climate<br/>We are committed to running environmentally<br/>efficient operations that minimise carbon<br/>emissions and waste in order to reduce<br/>negative impacts on the environment and<br/>climate. Our carbon targets will from 2021<br/>be science-based in order to ensure that<br/>the Group’s reduction targets are consistent<br/>with what according to science is necessary<br/>to limit global warming in line with the Paris<br/>agreement. Our new targets will during the<br/>2021 be submitted to SBTi for validation. If,<br/>contrary to expectations, our greenhouse<br/>gas emission targets do not meet the SBTi<br/>criteria validation, we will adjust the targets<br/>accordingly.<br/><br/>*) GELx is a Global Employee & Leadership Index tool<br/>measuring employee satisfaction, motivation, and<br/>loyalty scores. Index ranging from -100 to 100 and<br/>calculated by subtracting the percentage of detractors<br/>from percentage of promoters.<br/><br/>OUR MARKET<br/>To be the preferred partner for<br/>sustainable construction,<br/>supporting development towards<br/>a more sustainable future<br/><br/>To address the global challenges,<br/>including climate change, increasing<br/>consumption and disposal of<br/>resources, and the depletion of<br/>nature and biodiversity, STARK<br/>Group is constantly looking for<br/>sustainable alternatives in all product<br/>categories to support and promote<br/>the distribution of sustainable and<br/>eco-labelled products, support<br/>the development of sustainable<br/>construction and make it easier for<br/>our customers to make informed<br/>choices.<br/><br/>One of the largest barriers to<br/>sustainability in the construction<br/>industry is craftsmen’s limited<br/>knowledge of sustainable alternatives<br/>and requirements. STARK Group aims<br/>to lower this barrier by widening the<br/>assortment of eco-labelled products<br/>and providing relevant product<br/>knowledge of sustainable alternatives,<br/>as well as ensuring correct and<br/>efficient product documentation.<br/>Where commercially relevant, we are<br/>active in sustainability networks and<br/>open to collaborating in partnerships<br/>that promote sustainability and<br/>circularity.starkgroup.dk/newsroom/publicationsPeople<br/>As a workplace, we ensure equal treatment<br/>and opportunities for all employees. We<br/>take pride in belonging to a community<br/>that comprises different genders, ages,<br/>ethnicities, disabilities, sexual orientations,<br/>faiths and religions. Women constitute 22%<br/>of our employees and account for 14% of<br/>our management positions. At STARK Group<br/>level, the Executive Committee consists<br/>of 30% women (3 out of 10) and the Group<br/>Management Team’s gender balance is 50/50.<br/>The Executive Board of STARK ApS consist<br/>of 25% women (2 out of 8). We continuously<br/>work to adjust the gender balance of the<br/>company.409500000022990000003065000000171400000028900000018300000010300000005850000005460000003100000001950000009200000010200000041000000101000000019400000051000000300000008900000052000000108000000-100000015000000200000093000000-300000092000000-3000000100000005000000-130000005000000-90000002000000-10000008000000-21000000101000000-24000000100000000-240000001000000027000000026600000027000000028600000027700000026500000055600000054300000053500000067600000064700000063900000010300000042000000310000003200000016000000190000003510000000011620000007050000006890000001000000100000010000002400000026000000170000004400000027000000310000001900000001300000017620000001275000000125500000048800000028000000027300000010000000700000011000000424000000231000000231000000210000001500000029000000010000001000000346000000181000000191000000181000000191000000128900000071500000073600000000300000030510000001990000000199400000010000001000000100000023500000017400000017400000078000000-25000000-1000000314000000150000000174000000900000000323000000150000000174000000900000006100000052000000190000007000000500000076500000093500000092800000011000000800000060000001220000001310000001490000003000000000013070000001142000000114000000019000000600000012000000160000000082400000053900000054100000027700000000215000000144000000116000000160000009000000110000005400000000142100000069800000068000000027280000001840000000182000000030510000001990000000199400000010200000095000000193000000400000003890000001290000006700000033000000130000006000000(Decrease)/increase in provisions and other liabilities(Decrease)/increase in provisions and other liabilities1000000-300000030900000090000000227000000280000003900000030000005400000046000000120000007000000-254000000-7800000055000000120000003000000002000000450000000Proceeds from loans from related partiesProceeds from loans from related partiesRepayments of loans from related partiesRepayments of loans from related parties2550000001000000-101000000-19000000112000000-20000000167000000-8000000-2000000-2000000165000000-10000000