19226980 2022-12-31 19226980 2021-12-31 19226980 2020-12-31 19226980 2024-12-31 19226980 2023-12-31 19226980 2024-01-01 fsa:ContributedCapitalMember 19226980 2024-01-01 fsa:RetainedEarningsMember 19226980 2024-01-01 fsa:ProposedDividendRecognisedInEquityMember 19226980 2024-12-31 fsa:ContributedCapitalMember 19226980 2024-12-31 fsa:RetainedEarningsMember 19226980 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 19226980 2024-01-01 19226980 2023-01-01 19226980 2024-01-01 fsa:LandAndBuildingsMember 19226980 2024-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 19226980 2024-01-01 fsa:LeaseholdImprovementsMember 19226980 2024-12-31 fsa:LandAndBuildingsMember 19226980 2024-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 19226980 2024-12-31 fsa:LeaseholdImprovementsMember 19226980 2024-01-01 fsa:OtherReceivablesMember 19226980 2024-12-31 fsa:OtherReceivablesMember 19226980 2024-12-31 fsa:LongtermMortgageLoansMember 19226980 2023-12-31 fsa:LongtermMortgageLoansMember 19226980 2024-12-31 fsa:LongtermLeaseCommitmentsMember 19226980 2023-12-31 fsa:LongtermLeaseCommitmentsMember 19226980 2024-01-01 2024-12-31 19226980 2024-01-01 2024-12-31 1 19226980 2024-01-01 2024-12-31 memberOfBoardIdentifier_executive_board_1 19226980 2024-01-01 2024-12-31 memberOfBoardIdentifier_executive_board_2 19226980 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_1 19226980 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_2 19226980 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_3 19226980 2024-01-01 2024-12-31 2 19226980 2022-01-01 2022-12-31 19226980 2021-01-01 2021-12-31 19226980 2020-01-01 2020-12-31 19226980 2023-01-01 2023-12-31 19226980 2024-01-01 2024-12-31 fsa:ContributedCapitalMember 19226980 2024-01-01 2024-12-31 fsa:RetainedEarningsMember 19226980 2024-01-01 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 19226980 2024-01-01 2024-12-31 fsa:ManagementMember 19226980 2023-01-01 2023-12-31 fsa:ManagementMember 19226980 2024-01-01 2024-12-31 fsa:BoardOfDirectorsMember 19226980 2023-01-01 2023-12-31 fsa:BoardOfDirectorsMember 19226980 2024-01-01 2024-12-31 fsa:LandAndBuildingsMember 19226980 2024-01-01 2024-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 19226980 2024-01-01 2024-12-31 fsa:LeaseholdImprovementsMember 19226980 2024-01-01 2024-12-31 fsa:OtherReceivablesMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2024-01-01 2023-01-01 2024-12-31 2023-12-31 19226980 MALMOS A/S Gammel Marbjergvej 11 4000 Roskilde Roskilde Nykredit Under Krystallen 1 1780 København V Argument Advokatfirma Aalborgvej 57 9520 Skørping PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Eventyrvej 16 4100 Ringsted Denmark 39 45 39 45 ringsted@pwc.dk 2025-04-11 Michael Gøthche Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of MALMOS A/S for the financial year 1 January - 31 December 2024. 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 December 2024 of the Company and of the results of the Company operations and cash flows for 2024. 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. 2025-04-11 Roskilde Kim Thinggaard Michael Gøthche Morten D. Hansen Chairman Michael Gøthche Lars Møller Hansen To the shareholder of MALMOS A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company´s operations and cash flows for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of MALMOS A/S for the financial year 1 January - 31 December 2024, which comprise income statement, balance sheet, statement of changes in equity, cash flow statement 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 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. 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. Ringsted 2025-04-11 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Per Larsen State Authorised Public Accountant mne27778 Kenneth Østergaard State Authorised Public Accountant mne47262 228893000 212646000 194742000 79516000 79501000 71143000 -404000 -1390000 -1006000 13613000 15590000 11320000 123480000 127766000 85246000 17406000 12508000 10802000 7224000 4820000 30815000 33202000 27613000 21156000 16547000 26157000 -7705000 -4609000 -3336000 -13441000 -3385000 -12044000 844000 8553000 10777000 98 96 92 0.309 0.322 0.347 0.374 0.365 0.063 0.057 0.078 0.101 0.082 0.128 0.114 0.145 0.167 0.188 0.23 0.22 0.25 0.26 0.324 0.479 0.338 0.425 0.513 0.428 Key ActivitiesMalmos carries out small and medium-sized tasks as well as some of Denmark’s largest landscaping projects in collaboration with professional developers, advisers and partners and contributes to value creation from the very first idea and development phases to implementation, delivery and documentation. Malmos combines the clout of a contractor with the heart of a landscape gardener. We are passionate about and driven by market innovation, and it is our dream and vision to set the tone for the landscapes of the future through new forms of collaboration, the use of new (digital) tools and by focusing on reuse and recycling. We provide nature-based solutions that help prepare our society for the future and improve the well-being of people. We see nature as our partner – whether in cities, on land, in the ground or along the coast. The Company’s activities thus comprise landscape construction and nature-based solutions, primarily by early involvement, in partnerships, through the conclusion of construction contracts and through stand-alone work.Development of the year and follow-up on development expectations from last yearConsiderable organic growth without compromising on the bottom line is the short version of Malmos’ year 2024. Achieving a growth rate of 23.5%, we realised revenue of DKK 318 million, which exceeded our expectations. High production rate throughout the year and solid order intake resulted in double-digit revenue growth. We have, thus, for the fifth year in a row, realised organic revenue growth, which is extremely satisfying. Compared to 2021, revenue has increased by 50%, which is in line with our strategy. The profit margin before non-operating items was 8.3%, exceeding our expectations for 2024, which were about 6 to 8%. As the increased incremental revenue did not result in major fluctuations in the Company's expected fixed costs, Management is very satisfied with the results for the year.Strategy and the way forwardIn 2024, we revised Malmos' strategy and direction for the coming years. This was, for example, done by updating the six ambitions supporting our dream. Ambitions aimed at our internal organisation and the external market alike while, at the same time, supporting the societal agenda in general:  ”WE SET THE TONE FOR THE LANDSCAPES OF THE FUTURE"-We deliver high quality and offer advice throughout the value chain. -We prioritise deep professional skills and collaboration -Our employees are managers of their own areas of responsibility. -As climate contractors and landscape creators, we breathe new life into nature -We set a high industry standard for the use of data and technology when performing our services-Our workplace is awesome, and we succeed because we work together This strategy and these specific focus areas, including the underlying strategic action plans, will thus form the basis for our business growth and development in the years to come. A responsible company setting the tone for the landscapes of the futureThe environment, including climate and sustainability, has been a top priority for Malmos for years and is part of our DNA. We have deliberately chosen to include sustainability, climate and the environment in our corporate mission and consider it necessary to be the preferred partner throughout the value chain. Backed by our B-Corp certification, we are continuing our ambitious journey of focusing on the environment, social responsibility and sustainability. The certification covers the entire organisation, from Management and business partners to the environment and impact on society. At Malmos, our target is to be the preferred landscaping partner, and based on a range of initiatives, we have made a mark in the industry, for example by increasing our efforts in terms of utilising existing resources. A specific goal of our Environmental Action Plan is to inform our customers of environmentally friendly alternatives, for example reuse of crushed materials rather than adding new materials. At the same time, Malmos' owner, idverde Denmark, has prepared an ambitious sustainability strategy establishing a number of goals for the Group's work towards 2026, including: -Annually increase the commitment to achieve employee satisfaction of minimum 85%. -Increase the activities contributing positively to biodiversity by 10% annually -Scrutinise every tender to offer possible sustainable alternatives These activities fall perfectly in line with Malmos' DNA, and they have our full support. Social responsibility at every stepAt Malmos, we embrace our social responsibility. This applies to current and future employees alike as well as to others in the community we are part of.  Malmos considers the professional and personal development of our employees a cornerstone of running our business. We take a systematic approach to training our employees; obviously focusing specifically on our hourly-paid employees, but also on salaried employees and managers. Malmos has defined a specific objective of not letting background or social challenges be an obstacle for working. Social sustainability and responsibility are thus goals pursued by Malmos. We will continue our work of improving our approach and ensuring that the resources and support our employees need to succeed are in place at work and in life in general. Malmos is a workplace which provides opportunities for individuals who are unable to work full time or under standard conditions. The individual employee's background and social conditions are not obstacles to a good working life at Malmos.  Training of future skilled workers is part of Malmos' core DNA. We train the green workforce of the future through the usual vocational training and education system and by means of labour market training via the AMU system. A key part of this is Malmos' apprentice academy, where we make a special effort to improve the skills of future landscape gardeners and designers. Our commitment to education goes beyond vocational training. Also in 2024, we had trainees and students from higher education programmes who underwent part of their training at Malmos. For example, we offered after-school jobs for young people living in socially deprived urban areas, cooperation with and training at vocational schools, higher educational institutions, etc. We engage actively with all age groups and focus on ensuring that Malmos is ready for the future. Malmos – completely safeAt Malmos, not a year goes by without focus on health and safety. Due to our constant focus on communicating and sharing knowledge throughout the organisation, we see a continued positive development. Only by letting everyone understand their contribution to a pleasant work environment will we improve and achieve our goals. Therefore, we have worked on making our health and safety policy as well as roles and responsibilities completely clear and ready for the reality we are part of. Our key messages are: -We want all our employees to be safe on the job throughout the day and to return home uninjured and happy -We maintain a strong focus on security measures that provide value and effect -We must be involved in 0 serious accidents and have an LTIF of less than 15 Our constant focus and development of our health and safety work are reflected in a downward trend in the number of accidents. The focal points of our annual safety week were orderliness and tidiness. Our employees worked with different elements within these topics across the organisation to challenge and take inspiration from each other. This work will continue into 2025 when the key topics will be presence and communication.idverde Denmark GroupMalmos is a wholly owned subsidiary of the idverde Denmark Group, which functions as both the holding and management company for several affiliated entities, including Malmos A/S, ZinCo Danmark A/S, OKNygaard A/S, Grøn Vækst A/S, Lauge Bonde ApS, and BroKomp A/S.As the holding company, idverde Denmark Group consolidates the operations of its subsidiaries, ensuring alignment with the overall Group strategy while driving operational efficiency and fostering continuous development. The Company, together with its sister companies, leverages synergies within the group to promote growth, innovation, and operational excellence.As part of the idverde Group, which spans more than 150 branches across six countries, the Company benefits from the collective expertise, resources, and strategic initiatives developed at the Group level, supporting sustainable long-term value creation for stakeholders across all affiliated companiesFor further details on the idverde Denmark Group, including the holding company’s mission statement and overall strategy, please refer to the Annual Report 2024 of Armorica Danmark ApS.Risk managementMalmos takes a proactive approach to risk management in order to ensure future growth for our business and secure our employees, values, assets and reputation. This work is performed partly by the Board of Directors and partly by day-to-day management, who actively monitor our risk management on a current basis and assess any changes and new risks. We want to act responsibly and thus have a risk policy that identifies risks, monitors them and addresses the risks that can be minimised. Research and developmentResearch and development activities are primarily, but not entirely, centred around biodiversity, vertical green walls and ‘Wild on purpose’, where, through various collaborations and activities, we work to increase knowledge and opportunities to promote the diversity of animal species, plant life and thus the planet's entire eco-system, and to respond to the climate challenges. A year ago, we decided to give priority to innovation and development as one of four key elements of our strategy plan. We intend to make innovation and development a direct part of our dream to set the tone for the landscapes of the future. The goal was to establish a structured foundation for cultivating and developing ideas and suggestions to enhance our company – and the landscaping business in general. And that was the beginning of Malmos LAB, which will provide the framework for our innovation. At Malmos LAB, which acts as our greenhouse for the future, we create the Malmos of the future. We take up all good suggestions and make an informed decision about any development of ideas, interesting thoughts, future products, new working methods, etc. Our expectations for 2025We left 2024 with top-line growth, a considerable volume of orders and satisfactory bottom-line results. In 2025, once more, we expect double-digit revenue growth in the range of 10% to 15% based on the strategic objectives and efforts made for the coming years. The profit margin before non-operating items is expected to reach the upper limit of the industry level, i.e. 6%-8%.Uncertainty relating to recognition and measurementThere has been no uncertainty relating to recognition and measurement in the Annual Report.Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 317666000 257165000 2637000 1825000 192797000 151418000 29290000 24637000 98216000 82935000 70642000 61871000 7676000 6417000 19898000 14647000 3441000 1507000 3436000 3317000 19903000 12837000 4574000 2837000 15329000 10000000 8000000 8000000 7329000 2000000 0 8059000 35380000 27461000 533000 353000 35913000 35873000 902000 540000 902000 540000 36815000 36413000 25000 25000 25000 25000 38411000 36093000 4559000 4739000 74876000 29029000 3000 4000 107000 507000 117956000 70372000 60000 22066000 118041000 92463000 154856000 128876000 1000000 1000000 26644000 19315000 8000000 8000000 35644000 28315000 14054000 13600000 14054000 13600000 0 3091000 12050000 7054000 12050000 10145000 0 211000 35380000 31273000 5309000 3167000 24390000 26813000 5971000 5369000 9965000 495000 3589000 0 8504000 9488000 93108000 76816000 105158000 86961000 154856000 128876000 1000000 19315000 8000000 0 0 -8000000 0 7329000 8000000 1000000 26644000 8000000 15329000 10000000 10719000 10593000 -4542000 -4532000 21506000 16061000 3441000 1507000 -3436000 -3317000 21511000 14251000 -531000 -1254000 20980000 12997000 -17406000 -12508000 -362000 -41000 11216000 1697000 -6552000 -10852000 -3302000 -208000 -5752000 -4577000 -15875000 -10698000 4107000 4771000 12890000 7950000 -8000000 -12500000 -15932000 -15262000 -1504000 -13117000 22066000 35183000 20562000 22066000 60000 22066000 20502000 0 20562000 22066000 No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 59512000 52119000 9764000 8497000 1091000 1004000 275000 251000 70642000 61871000 4890000 3595000 570000 450000 5460000 4045000 111 107 Including remuneration to the Executive Board and Board of Directors: The remuneration to the Board of Directors is invoiced to the Company as part of a Management fee, which is included as a cost in " Other external expenses" in the Income Statement. 7676000 6417000 7676000 6417000 3003000 1416000 438000 91000 3441000 1507000 3589000 0 822000 2837000 531000 0 -368000 0 4574000 2837000 12642000 53388000 1777000 226000 16883000 297000 12868000 7384000 0 0 62887000 2074000 4582000 25927000 1423000 0 7479000 118000 81000 0 0 4663000 5899000 0 0 27507000 1541000 0 35380000 533000 0 22127000 0 540000 362000 902000 902000 Intercompany cash pool balance 20502000 0 Other receivables 54374000 29029000 Total 74876000 29029000 The intercompany cash pool balance is available for the Company's disposal equal to cash. Selling price of work in progress 404537000 460335000 Payments received on account -405949000 -460965000 Total -1412000 -630000 Recognised in the balance sheet as follows: Contract work in progress recognised in assets 4559000 4739000 Prepayments received recognised in debt -5971000 -5369000 Total -1412000 -630000 Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Deferred tax liabilities at 1 January 13600000 10763000 Amounts recognised in the income statement for the year 454000 2837000 Deferred tax liabilities at 31 December 14054000 13600000 Property, plant and equipment 1682000 3336000 Trade receivables -33000 -33000 Contract work in progress 12405000 10580000 Amortization 0 -3000 Tax loss carry-forward 0 -280000 14054000 13600000 Deferred tax asset Calculated tax assets 0 0 Carrying amount 0 0 0 2209000 0 882000 0 3091000 0 211000 0 0 12050000 7054000 12050000 7054000 5309000 3167000 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt. The debt falls due for payment as specified below: Mortgage loans Lease obligations -3441000 -1507000 3436000 3317000 6150000 5946000 4574000 2837000 10719000 10593000 -1737000 -2238000 -2805000 -2294000 -4542000 -4532000 Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Within 1 year 111000 110000 Between 1 and 5 years 83000 193000 Total 194000 303000 Rent obligations, period of non-terminability 2-10 years 23808000 8976000 Other contingent liabilities The Company has provided an unlimited suretyship towards danish group companies engagement with banks. The group companies 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 Armorica Danmark ApS, 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. Transactions The 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 Statements The Company is included in the Group Annual Report of the Parent Company of the largest and smallest group: Name Place of registered office Armorica Danmark ApS, CVR-nr. 40 89 54 93 Roskilde The Annual Report of MALMOS A/S for 2024 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2024 are presented in TDKK. true Revenues 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. Leases in terms of which the Company assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Company. The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. Ved salg af varer indregnes nettoomsætning, når fordele og risici vedrørende de solgte varer er overgået til køber, nettoomsætningen kan måles pålideligt og det er sandsynligt, at de økonomiske fordele ved salget vil tilgå selskabet. Igangværende arbejder for fremmed regning (entreprisekontrakter) indregnes i takt med, at produktionen udføres, hvorved nettoomsætningen svarer til salgsværdien af årets udførte arbejder (produktionsmetoden). Denne metode anvendes, når de samlede indtægter og omkostninger på entreprisekontrakten og færdiggørelsesgraden på balancedagen kan opgøres pålideligt, og det er sandsynligt, at de økonomiske fordele, herunder betalinger, vil tilgå selskabet. Som færdiggørelsesgrad anvendes afholdte omkostninger i forhold til de forventede samlede omkostninger på entreprisekontrakten. Nettoomsætningen måles til det modtagne vederlag og indregnes eksklusive moms og med fradrag af rabatter i forbindelse med salget. Revenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company. Contract work in progress (construction contracts) is recognised at the rate of completion, which means that revenue equals the selling price of the work completed for the year (percentage-ofcompletion method). This method is applied when total revenues and expenses in respect of the contract and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined on the basis of the ratio between the expenses incurred and the total expected expenses of the contract. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year. Other 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 losses comprise depreciation and impairment of property, plant and equipment. Other 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 property, plant and equipment. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax 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. The Company is jointly taxed with danish group companies. 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). 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: Production buildings 50 years Other fixtures and fittings, tools and equipment 3-8 years Leasehold improvements 7 years Depreciation period and residual value are reassessed annually. The carrying amounts of 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 depreciation. Fixed asset investments consist of depositories. Inventories 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 raw materials and consumables 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. Contract work in progress is measured at selling price of the work performed calculated on the basis of the stage of completion. The stage of completion is measured by the proportion that the contract expenses incurred to date bear to the estimated total contract expenses. Where it is probable that total contract expenses will exceed total revenues from a contract, the expected loss is recognised as an expense in the income statement. Where the selling price cannot be measured reliably, the selling price is measured at the lower of expenses incurred and net realisable value. Payments received on account are set off against the selling price. The individual contracts are classified as receivables when the net selling price is positive and as liabilities when the net selling price is negative. Expenses relating to sales work and the winning of contracts are recognised in the income statement as incurred. Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Dividend distribution proposed by Management for the year is disclosed as a separate Dividend item. 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. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured 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 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 onaccount taxation scheme are recognised in the income statement in financial income and expenses. Mortgage loans are measured at amortised cost, which for cash loans corresponds to the remaining loan. Amortised cost of debenture loans corresponds to the remaining loan calculated as the underlying cash value of the loan at the date of raising the loan adjusted for depreciation of the price adjustment of the loan made over the term of the loan at the date of raising the loan. Other debts are measured at amortised cost, substantially corresponding to nominal value. The cash flow statement shows the Company´s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Company´s cash and cash equivalents at the beginning and end of the year. Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents. Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and equipment as well as fixed asset investments. Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders. Cash and cash equivalents comprise ”Cash at bank and in hand” and balances available on the Company's sub-account on intercompany cash pool. The cash flow statement cannot be immediately derived from the published financial records. Gross margin Gross profit x 100 / Revenue Profit margin before non-recurring costs Profit/loss before non-recurring costs x 100 / Revenue Profit margin Profit/loss of primary operations x 100 / Revenue Return on assets Profit/loss of primary operations x 100 / Total assets at year end Solvency ratio Equity at year end x 100 / Total assets at year end Solvency ratio excl. net debt to factor Equity at year end x 100 / (Total assets at year end - net debt to factor) Return on equity Net profit for the year x 100 / Average equity