25451996 2024-09-01 2025-08-31 25451996 2024-09-01 2025-08-31 memberOfBoardIdentifier_executive_board_1 25451996 2024-09-01 2025-08-31 memberOfBoardIdentifier_board_of_director_1 25451996 2024-09-01 2025-08-31 memberOfBoardIdentifier_board_of_director_2 25451996 2024-09-01 2025-08-31 memberOfBoardIdentifier_board_of_director_3 25451996 2024-09-01 2025-08-31 memberOfBoardIdentifier_board_of_director_4 25451996 2024-09-01 2025-08-31 1 25451996 2022-09-01 2023-08-31 25451996 2021-09-01 2022-08-31 25451996 2020-09-01 2021-08-31 25451996 2023-08-31 25451996 2022-08-31 25451996 2021-08-31 25451996 2023-09-01 2024-08-31 25451996 2025-08-31 25451996 2024-08-31 25451996 2024-09-01 fsa:ContributedCapitalMember 25451996 2024-09-01 fsa:ReserveForDevelopmentExpenditureMember 25451996 2024-09-01 fsa:RetainedEarningsMember 25451996 2024-09-01 25451996 2024-09-01 2025-08-31 fsa:ContributedCapitalMember 25451996 2024-09-01 2025-08-31 fsa:ReserveForDevelopmentExpenditureMember 25451996 2024-09-01 2025-08-31 fsa:RetainedEarningsMember 25451996 2025-08-31 fsa:ContributedCapitalMember 25451996 2025-08-31 fsa:ReserveForDevelopmentExpenditureMember 25451996 2025-08-31 fsa:RetainedEarningsMember 25451996 2024-09-01 fsa:CompletedDevelopmentProjectsMember 25451996 2024-09-01 fsa:AcquiredOtherSimilarRightsMember 25451996 2024-09-01 fsa:DevelopmentProjectsInProgressMember 25451996 2024-09-01 2025-08-31 fsa:CompletedDevelopmentProjectsMember 25451996 2024-09-01 2025-08-31 fsa:AcquiredOtherSimilarRightsMember 25451996 2024-09-01 2025-08-31 fsa:DevelopmentProjectsInProgressMember 25451996 2025-08-31 fsa:CompletedDevelopmentProjectsMember 25451996 2025-08-31 fsa:AcquiredOtherSimilarRightsMember 25451996 2025-08-31 fsa:DevelopmentProjectsInProgressMember 25451996 2024-09-01 fsa:FixturesFittingsToolsAndEquipmentMember 25451996 2024-09-01 fsa:LeaseholdImprovementsMember 25451996 2024-09-01 2025-08-31 fsa:FixturesFittingsToolsAndEquipmentMember 25451996 2024-09-01 2025-08-31 fsa:LeaseholdImprovementsMember 25451996 2025-08-31 fsa:FixturesFittingsToolsAndEquipmentMember 25451996 2025-08-31 fsa:LeaseholdImprovementsMember 25451996 2024-09-01 fsa:InvestmentsInGroupEnterprisesMember 25451996 2023-09-01 fsa:InvestmentsInGroupEnterprisesMember 25451996 2025-08-31 fsa:InvestmentsInGroupEnterprisesMember 25451996 2024-08-31 fsa:InvestmentsInGroupEnterprisesMember 25451996 2024-09-01 2025-08-31 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 25451996 2025-08-31 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 25451996 2025-08-31 1 fsa:SubsidiaryMember 25451996 2024-09-01 fsa:DepositsLongtermInvestmentsAndReceivablesMember 25451996 2024-09-01 2025-08-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember 25451996 2025-08-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK pure xbrli:pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2024-09-01 2023-09-01 2025-08-31 2024-08-31 Regnskabsklasse C, stor virksomhed Revisionspåtegning true 2025-12-17 Jan Bøgh The Executive Board and Board of Directors have today considered and adopted the Annual Report of BOLIA A/S for the financial year 1 September 2024 - 31 August 2025. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 August 2025 of the Company and of the results of the Company operations for 2024/25. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. Aarhus C 2025-12-17 Lars Lyse Hansen CEO Jan Bøgh Jacob Brunsborg Peter Dornonville de la Cour Andsager Chairman Lars Kallesøe To the shareholder of BOLIA A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 August 2025 and of the results of the Company’s operations for the financial year 1 September 2024 - 31 August 2025 in accordance with the Danish Financial Statements Act.We have audited the Financial Statements of BOLIA A/S for the financial year 1 September 2024 - 31 August 2025, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the 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 Financial Statements” section of our report. We are independent of the Company 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 Management’s Review.Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management is responsible for the preparation of 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 financial statements that are free from material misstatement, whether due to fraud or error.In preparing the Financial Statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the 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 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:Identify and assess the risks of material misstatement of the 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.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 Company’s internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the 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 Company’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 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 Company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view.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. Aarhus C 2025-12-17 PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab 33771231 Henrik Kragh State Authorised Public Accountant mne26783 BOLIA A/S Værkmestergade 11, 1. 8000 Aarhus C 25451996 Aarhus Jens Chr. Skous Vej 1 8000 Aarhus C Seen over a 5-year period, the development of the Company is described by the following financial highlights:Investment in intangible assets36,82731,83737,18839,77141,713In connection with reclassifications between financial costs and other external expenses, the comparative figures for 2020/21, 2021/22 and 2022/23 have been restated. See the description under accounting policies. 1275267000 1315078000 1176422000 290634000 319413000 326090000 -15825000 40618000 88067000 -6086000 3050000 423000 -19397000 35805000 65738000 504047000 537964000 494169000 63645000 53483000 62652000 65787000 57732000 140298000 159695000 188890000 529 484 443 415 347 0.243 0.255 0.228 0.243 0.277 0.019 0.020 0.012 0.031 0.075 0.049 0.049 0.031 0.076 0.178 0.304 0.283 0.278 0.297 0.382 0.160 0.153 0.129 0.205 0.375 Key activitiesThe Company's key activity is the development and sales of own exclusive design collection consisting of furniture and lifestyle products for the private and professional markets. The collection is sold through the Company’s own international concept stores and E-commerce platform, as well as through a global dealer and B2B network. The BOLIA concept stores are run as branches in Denmark, Norway, Germany, Sweden, Austria, Switzerland, France, Belgium, Luxembourg, Spain, and the Netherlands together with BOLIA partnership stores in Singapore and Australia.Development in the yearDuring the financial year, the general market situation has remained highly competitive, and consumer confidence relatively low on most markets. Despite the challenging business climate, BOLIA has increased sales across all markets. This is the result of continuous focus on design, quality and customer experience. Store expansion has been accelerated across current European markets and major investments have also been upheld in sustainable initiatives, concept development and digitalization. Revenue for the financial year 2024/25 amounted to 1,624,196 tDKK which is a 14 % revenue increase compared to the previous financial year and marks a record high turnover in the company’s history. Profit for the year before tax was 35,711 tDKK which was an improvement from the previous financial year but just below expectations and considered satisfactory.Capital resourcesOn 31 August 2025, equity was 191,984 tDKK.Targets and expectations for the year aheadBOLIA International A/S will continue to focus on growth through further international expansion and design- and concept development, as well as investing in sustainable initiatives, and digitalization. The forecast for the financial year 2025/26 is an improved result with an expected profit before tax between 40 and 60 mDKK.Research and developmentIn line with the Company's growth- and innovation strategy, major investments were made in design- and product development and sustainable initiatives throughout the value chain. Together with investments in digitalization and development of the global IT platform.Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Statement of corporate social responsibilityThe Company’s corporate social responsibility report is included in the CSR reporting of the Group. Reference is made to Management’s Review in the Annual Report 2024/25 of Lars Larsen Group A/S, CVR No. 86 00 15 19, which may be obtained from www.cvr.dk. Statement on gender compositionBOLIA International A/S aims to be a highly attractive workplace with equal opportunities for all employees. We will continue our work to further support our policy on gender equality at all management levels and throughout the organization. To achieve this ambition, we will continue to work actively with our equal opportunities policy, our company values, and our human resources, while at the same time basing recruitment on qualifications and competencies.The gender representation at the various management levels is shown in the table below.Det underrepræsenterede kønThe Board of Directors currently consists of four male board members. The Board of directors is composed with the aim of ensuring the right professional competencies. The Board of Directors ambition is to have at least one female board member by 2028. The current gender composition appointed by the General Assembly is four male members.For Other Management positions the ambition is to achieve a gender composition of 60 / 40 by having 40% male Managers by 2028. The BOLIA Gender Equality policy encompasses initiatives to increase the share of the underrepresented gender. At the same time recruitment of Other Managers is being considered individually based on qualifications, experience and corporate cultural fit to provide equal opportunities for employees and applicants. Statement on data ethicsThe statement required under section 99(d) of the Danish Financial Statements Act are contained in the Consolidated financial statements of Lars Larsen Group A/S, CVR No. 86 00 15 19, which may be obtained from www.cvr.dk. 1624196000 1426537000 7307000 7300000 825413000 702963000 411461000 367760000 394629000 363114000 276368000 242372000 86922000 92010000 285000 329000 31054000 28403000 9434000 10991000 4777000 8672000 35711000 30722000 7267000 7480000 28444000 23242000 49940000 68523000 1869000 2407000 18756000 0 70565000 70930000 35195000 31274000 128791000 118938000 163986000 150212000 0 0 18721000 14204000 18721000 14204000 253272000 235346000 197055000 152508000 197055000 152508000 77887000 56567000 17177000 15878000 63641000 46762000 158705000 119207000 23100000 71594000 378860000 343309000 632132000 578655000 1800000 1800000 53583000 53447000 136601000 108293000 191984000 163540000 12278000 16037000 12278000 16037000 104953000 78407000 131524000 128171000 11780000 9077000 8719000 18171000 170894000 165252000 427870000 399078000 427870000 399078000 632132000 578655000 1800000 53447000 108293000 163540000 0 136000 -136000 0 0 0 28444000 28444000 1800000 53583000 136601000 191984000 Business segmentsBusiness to consumer1,460,7401,279,680Business to business163,456146,8571,624,1961,426,537With reference to section 96(1) of the Danish Financial Statements Act, no disclosure is made of the breakdown of revenue into geographical markets as Company Management, including the Board of Directors, finds that such disclosure would be very detrimental to the Company. 222540000 196462000 22756000 18060000 31072000 27850000 276368000 242372000 529 484 Remuneration to the Executive Board has not been disclosed in accordance with section 98 B(3) of the Danish Financial Statements Act. 3844000 10207000 950000 784000 4640000 0 9434000 10991000 4482000 8191000 295000 481000 4777000 8672000 12121000 8352000 -3759000 -1249000 -1095000 377000 7267000 7480000 -136000 8889000 136000 -8889000 28444000 23242000 286973000 7422000 0 18071000 0 18756000 305044000 7422000 18756000 218450000 5015000 0 36654000 538000 0 255104000 5553000 0 49940000 1869000 18756000 Development projects relate to the development of the company's digital platform, which is fully implemented by the business. Sub-projects of the IT project are completed on an ongoing basis.Development projects in progress relate to development of the company's new website, which is expected to be fully implemented in 2025/26.The costs primarily consist of external expenses, mainly consultancy services.The project is progressing as planned, utilizing the resources allocated by management. Management expects the project to have a positive impact on revenue and gross profit, and therefore has not identified any indications of impairment related to the development project. 80083000 240947000 18089000 45556000 275000 98000 97897000 286405000 48809000 122009000 14094000 35636000 201000 31000 62702000 157614000 35195000 128791000 0 0 0 0 0 0 Investments in subsidiaries are specified as follows:000 Bolia Inc. Delaware, USA 1.00 0 0 14204000 5767000 1250000 18721000 18721000 Prepayments and accrued income consist mainly of prepaid expenses relating to rent and marketing. Deferred tax liabilities at 1 September16,03717,286Amounts recognised in the income statement for the year-3,759-1,249Deferred tax liabilities at 31 August12,27816,037Fixed asset investments-7,620-4,688Trade receivables-186-523Leasehold improvements4,6303,883Rights3774Prepayments2,2592,217Development projects13,15815,07412,27816,037 Prepayments are mainly made up of prepayments received regarding income in the following years as well as issued gift cards. Other contingent liabilitiesGuarantees have been provided to external parties, which at 31 August amounted to:31,23730,863The company's enterprises are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable is disclosed in the Annual Report of Lars Larsen Group A/S, which is the management company of the joint taxation purposes. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company's liability.Lars Larsen Group A/S has entered into an agreement concerning a group arrangement for Lars Larsen Group. As of 31 August 2025 0 TDKK had been withdrawn from the total group facility. As a participant in the group account arrangement, Bolia A/S has provided surety towards credit institutions as security for Lars Larsen Group A/S' obligations under the group agreement.Other financial obligationsAs of 31 August 2025 the Company has assumed rental and lease obligations, which are non-terminable for 1-10 years, which total TDKK 534.043 (2023/24: 438.059). Controlling interestLars Larsen Group A/S, CVR-nr. 86 00 15 19Parent entityTransactionsThe Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(6) of the Danish Financial Statements Act. Consolidated Financial StatementsThe Company is included in the Group Annual Report of the Parent Company of the largest and smallest group:Lars Larsen Group A/S, CVR-nr. 86 00 15 19AarhusThe Group Annual Report of Lars Larsen Group A/S, CVR-nr. 86 00 15 19 may be obtained at the following address:Lars Larsen Group A/SRandersvej 2C8600 SilkeborgDanmark With reference to section 96(3) of the Danish Financial Statements Act and to the consolidated financial statements for 2024/25 of Lars Larsen Group A/S, CVR-nr. 86 00 15 19, the Company has not disclosed the fee to the auditors appointed at the general meeting. No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. The Annual Report of BOLIA A/S for 2024/25 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C.The accounting policies applied remain unchanged from last year.The Financial Statements for 2024/25 are presented in TDKK.Reclassification of comparative figuresThis year, there have been reclassifications between financial costs and other external expenses, to which comparative figures have been adjusted. The adjustment has not had an impact on the year's profit, equity or total assets. With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2024/25 of Lars Larsen Group A/S, CVR-nr. 86 00 15 19, the Company has not prepared consolidated financial statements. With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of Lars Larsen Group A/S, CVR-nr. 86 00 15 19, the Company has not prepared a cash flow statement.Social responsibilityWith reference to section 99a (7) of the Danish Financial Statements Act and to the social responsibility included in the consolidated financial statements of Lars Larsen Group A/S, CVR-nr. 86 00 15 19, the Company has not prepared social responsibility statement in the Management’s Review. Recognition and measurementRevenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably.Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below.Recognition and measurement take into account predictable losses and risks occurring before the presentation of the Annual Report which confirm or invalidate affairs and conditions existing at the balance sheet date. Translation policiesDanish kroner is used as the presentation currency. All other currencies are regarded as foreign currencies.Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity.Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement.Fixed assets acquired in foreign currencies are measured at the transaction date rates. Segment information on revenueWith reference to section 96(1) of the Danish Financial Statements Act, no disclosure is made of the breakdown of revenue into business segments as Company Management, including the Board of Directors, finds that such disclosure would be very detrimental to the Company. RevenueRevenue from the sale of goods for resale and finished goods is recognised in the income statement when the sale is considered effected based on the following criteria:- delivery has been made before the end of the financial year;- a binding sales agreement has been made;- the selling price has been determined; and- payment has been received or may with reasonable certainty be expected to be received.Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Cost of goods soldCost of goods sold comprise the purchase price etc. for goods sold in the year. Other external expensesOther external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc. Staff expenses comprise wages and salaries as well as payroll expenses. Amortisation, depreciation and impairment lossesAmortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Other operating income and expensesOther operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company, including gains and losses on the sale of intangible assets and property, plant and equipment. Income from investments in subsidiariesDividends from subsidiaries are recognised as income in the income statement when adopted at the General Meeting of the subsidiary. However, dividends relating to earnings in the subsidiary before it was acquired by the Parent Company are set off against the cost of the subsidiary. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax on profit/loss for the yearTax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.Any changes in deferred tax due to changes to tax rates are recognised in the income statement.The Company is jointly taxed with Lars Larsen Group A/S. The tax effect of the joint taxation with the subsidiaries is allocated to Danish enterprises showing profits or losses in proportion to their taxable incomes (full allocation with credit for tax losses). Intangible fixed assetsDevelopment projectsCosts of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities.Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the enterprise can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs.Development projects that do not meet the criteria for recognition in the balance sheet are recognised as expenses in the income statement as incurred.Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount corresponding to the recognised development costs is allocated to the equity item 'Reserve for development costs'. The reserve comprises only development costs recognised in financial years beginning on or after 1 January 2016. The reserve is reduced by amortisation of and impairment losses on the development projects on a continuing basis.As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work. The amortisation period is 3-5 year. Rights are measured at cost less accumulated amortisation and less any accumulated impairment losses or at a lower value in use.Rights are amortised over the period of the agreement, which is 6 years. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses.Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:Other fixtures and fittings, tools and equipment3-6 years Leasehold improvements6 years The fixed assets’ residual values are determined at nil.Depreciation period and residual value are reassessed annually. Impairment of fixed assetsThe carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation.If so, the asset is written down to its lower recoverable amount. Investments in subsidiariesInvestments in subsidiaries are measured at cost. Where cost exceeds the recoverable amount, write-down is made to this lower value. Other fixed asset investments consist of deposits. InventoriesInventories are measured at the lower of cost under the FIFO method and net realisable value.The net realisable value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price.The cost of goods for resale equals landed cost. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Provisions for bad debts are determined on the basis of an individual assessment of each receivable, and in respect of trade receivables, a general provision is also made based on the Company’s experience from previous years. PrepaymentsPrepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Dividend distribution proposed by Management for the year is disclosed as a separate equity item. Deferred tax assets and liabilitiesDeferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively.Deferred tax assets are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity.Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax receivables and liabilitiesCurrent tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Payables are recognised at cost at the time of incurring the debt. Subsequently, they are determined at amortised cost, which in terms of short-term and non-interest-bearing liabilities as well as variable-rate liabilities usually corresponds to nominal value. Deferred incomeDeferred income comprises payments received in respect of income in subsequent years. Financial HighlightsExplanation of financial ratiosGross marginGross profit x 100 / RevenueProfit marginProfit/loss of primary operations x 100 / RevenueReturn on assetsProfit/loss of primary operations x 100 / Total assets at year endSolvency ratioEquity at year end x 100 / Total assets at year endReturn on equityNet profit for the year x 100 / Average equity