xbrli:pureiso4217:DKK141253452020-03-012021-02-28141253452020-03-012021-02-281141253452020-03-012021-02-281141253452020-03-012021-02-281141253452020-03-012021-02-282141253452020-03-012021-02-283141253452020-03-012021-02-284141253452020-03-012021-02-285141253452020-03-012021-02-282141253452020-03-012021-02-28141253452019-03-012020-02-29141253452020-03-012021-02-28fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember141253452020-03-012021-02-28fsa:ReserveForCurrentValueOfHedgingMember141253452020-03-012021-02-28fsa:RetainedEarningsMember141253452020-03-012021-02-28fsa:RetainedEarningsMember141253452019-03-012020-02-29fsa:RetainedEarningsMember141253452021-02-28141253452020-02-29141253452020-03-01141253452019-03-01141253452020-03-01fsa:ContributedCapitalMember141253452020-03-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember141253452020-03-01fsa:ReserveForCurrentValueOfHedgingMember141253452020-03-01fsa:RetainedEarningsMember141253452021-02-28fsa:ContributedCapitalMember141253452021-02-28fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember141253452021-02-28fsa:ReserveForCurrentValueOfHedgingMember141253452021-02-28fsa:RetainedEarningsMember141253452020-03-012021-02-28fsa:ContributedCapitalMember141253452020-03-012021-02-281141253452019-03-012020-02-291141253452020-03-012021-02-281141253452019-03-012020-02-291141253452020-03-012021-02-28fsa:ManagementMember141253452019-03-012020-02-29fsa:ManagementMember141253452020-03-012021-02-28fsa:BoardOfDirectorsMember141253452019-03-012020-02-29fsa:BoardOfDirectorsMember141253452020-03-012021-02-28fsa:OtherShorttermPayablesMemberRegnskabsklasse C, mellemstor virksomhed339635562019-03-012020-02-29Esbjerg67018DokkenDeloitte Statsautoriseret RevisionspartnerselskabVejenVejen6600Revisionspåtegning2021-02-282020-03-01<br /><br />50VejenvejEpoke A/S14125345339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Epoke A/S for the financial year 01.03.2020 - 28.02.2021.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 28.02.2021 and of the results of its operations and cash flows for the financial year 01.03.2020 - 28.02.2021.We believe that the management commentary contains a fair review of the affairs and conditions referred to
therein.We recommend the annual report for adoption at the Annual General Meeting.Vejen2021-04-29Peter Bjørn BertelsenCEOSøren Klarskov VilbyThomas MarstrandKristian la CourJane Nykjær KaasgaardDan JohannsenChairmanVice ChairmanTo the shareholders of Epoke A/SWe have audited the financial statements of Epoke A/S for the financial year 01.03.2020 - 28.02.2021, which comprise the income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including a
summary of significant accounting policies. The financial statements are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 28.02.2021 and of the results of its operations and cash flows for the financial year 01.03.2020 - 28.02.2021 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further
described in the "Auditor’s responsibilities for the audit of the financial statements" section of this auditor’s
report. We are independent of the Entity in accordance with the International Ethics Standards Board of
Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable
in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going
concern basis of accounting in preparing the financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the 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:<br />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.
<br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the 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 Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the 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
Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the financial statements, including the disclosures
in the notes, and whether the financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.Management is responsible for the management commentary.
Our opinion on the financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the financial statements and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement of the management commentary.Esbjerg2021-04-29Jørn JepsenLasse Lynggaard Wolffmne24824mne35802State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2020/21
DKK'0002019/20
DKK'0002018/19
DKK'0002017/18
DKK'0002016/17
DKK'000Key figuresRevenue198,761195,737227,257212,242188,533Gross profit/loss77,49287,15686,35279,15467,226Operating profit/loss11,16516,98613,7077,762(2,352)Net financials(1,049)(856)(1,750)(2,302)(2,705)Profit/loss for the year7,0687,8629,298(1,650)(7,241)Total assets181,295168,007166,609180,711180,139Investments in property,
plant and equipment1,3821,8102,5883,5945,523Equity110,103103,79795,80086,16086,639Average invested capital incl goodwill95,25486,27790,62597,985103,245RatiosGross margin (%)38.9944.5338.0037.2935.66Net margin (%)3.564.024.09(0.78)(3.84)Return on invested capital incl. goodwill (%)11.9820.0615.539.02(0.66)Return on equity (%)6.617.8810.22(1.91)(8.05)Equity ratio (%)60.7361.7857.5047.6848.10Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Gross margin (%)
:Gross profit/loss * 100
RevenueNet margin (%)
:Profit/loss for the year * 100
RevenueReturn on invested capital incl. goodwill (%)
:EBITA * 100
Average invested capital incl goodwillReturn on equity (%)
:Profit/loss for the year * 100
Average equityEquity ratio (%)
:Equity * 100
Total assetsPrimary activitiesThe primary activities of Epoke A/S are to develop, manufacture, market and sell Epoke, Brodd and Snowline machinery.
The Group’s products are sold through own companies in Denmark, Germany and Poland. Sales and marketing in other markets are based on partnerships with dealers and the subsidiaries based in the respective countries.
Focusing on the customer and in co-operation with dealers, Epoke Group markets Epoke winter road mainte-nance products together with Snowline snow removal equipment and Brodd sweepers. Epoke Group aims to become the industry’s best-known brand and to be a market leader in selected segments.
Epoke Group develops and manufactures state-of-the-art salt and liquid spreaders together with Snowline snow removal equipment and Brodd sweepers that meet the customers' requirements in terms of service, quality and economic life costs. Development in activities and financesRevenue realised by Epoke A/S comes to DKK 199m against DKK 196m last year, the main share of which is attributable to exports.
Profit for the year before net financials is DKK 11,165k against a profit of DKK 16,986k for last year. Profit for the year after tax is DKK 7,068k against a profit of DKK 7,862k last year.
Epoke A/S is a firmly based enterprise with a solvency ratio of 60.73% at 28 February 2021. Profit/loss for the year in relation to expected developmentsManagement considers profit for the year satisfactory. OutlookManagement expects an improved financial performance for the next financial year.
Use of financial instrumentsEpoke A/S’ receivables and loans are primarily denominated in DKK. Epoke A/S does not apply financial instruments for the purpose of speculating.
Excess liquidity is deposited in money market accounts or the like. Therefore, Epoke A/S is exposed to no
material financial risks.
Epoke A/S follows a board-approved fiscal policy that operates with a low risk profile so that exchange rates, interest rates and credit risks only occurs on the basis of commercial conditions. Epoke A/S has an interest rate swap in order to hedge the interest risk involved in bank loans until maturity.
Epoke A/S is among other things using steel as raw material in its products, thus Epoke A/S is exposed to the development in steel prices.
Intellectual capital resourcesEpoke Group aims to be an attractive workplace with motivated and committed staff. To ensure continued motivation and strong commitment on the part of staff, work at Epoke A/S is performed on the basis of corporate values enabling the individual staff member to make his or her own decisions. The management philosophy is freedom with responsibility.
Epoke Group has formulated a senior policy and is locally known for its efforts to retain senior staff as well as other social initiatives. Environmental performanceEpoke A/S holds a clean environmental approval dated 1 August 2000, and the 2019 inspection confirmed the approval.
Epoke A/S is compliant with applicable environmental law etc. and has not received any complaints or claims relating to non-compliance with environmental rules on the part of its foreign subsidiaries.
Epoke A/S aimes at receiving ISO 14001 certificate in the coming year. Research and development activitiesThe Group is among the absolute market leaders when it comes to spreaders for winter road clearance. The Group has won this position through persistent and targeted development efforts as regards spreaders and related electronic products.
The Group protects its development projects by taking out patents, if appropriate. The Group intends to sustain its position by continuously adding the resources required and staying focused on road clearance.
The product portfolio is characterized by high performance, low service costs, high quality of products and in particular innovative solutions. Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of
this annual report.19876100019573700010814000-733900017920001190600099372000113517000128750001430900077492000871560006270900066168000361800040020001116500016986000-795000-365400014360001216000248500020720009321000124760002253000461400070680007862000007068000706800078620000010830001333000108300013330005754000679700046900006360000232000017750000012764000149320006233000820800061000610006294000826900020141000245340002225400023243000117740001142700025854000370150005988200071685000264580001903600030383000335720004113000012997000360000091100016460009924200067251000203000045370003875000-72890001611540001434730001812950001680070001500000015000000-8130000510000958650008879700011010300010379700015000000008879700010379700015000000-81300051000958650002931000326200029310003262000662400075750006305000327700012929000108520009590001613000200006620002909000854300011329000849200015052000160630003180000318000022670009550001961600010588000553320005009600068261000609480001812950001680070000-8130000-813000660000660000-150000-1500036180004002000-331000-328000-11148000-3203000Gains and losses
from the sale of assets under Other operating income0-113060003304000615100014360001216000-2485000-2089000-1316000-13100009390003968000-1382000-181100018300012569000-119900010758000-26000014726000Instalments on loans etc.-1605000-3562000-1605000-3562000-18650001116400020100003875000200006620001 Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.
2 Other operating incomeOther operating income includes compensation from pay support schemes established as a result of the outbreak and spread of COVID-19 in 2020, with DKK 1,193k in compensation for staff costs.3 Staff costs2020/21
DKK'0002019/20
DKK'000Wages and salaries56,72559,911Pension costs4,4934,620Other social security costs1,4911,63762,70966,168Average number of full-time employees131134Remuneration
of
management2020/21
DKK'000Remuneration of management
2019/20
DKK'000Executive Board1,5492,299Board of Directors3903901,9392,689Remuneration of the Executive Board includes remuneration for two directors for the first two months of the financial year and for one director for the rest of the financial year.131134Remuneration
of
management2020/21
DKK'000Remuneration of management
2019/20
DKK'000Executive Board1,5492,299Board of Directors3903901,9392,689154900022990003900003900004 Depreciation, amortisation and impairment losses2020/21
DKK'0002019/20
DKK'000Amortisation of intangible assets250324Depreciation of property, plant and equipment3,4713,685Profit/loss from sale of intangible assets and property, plant and equipment(103)(7)3,6184,0025 Other financial income2020/21
DKK'0002019/20
DKK'000Financial income from group enterprises822943Other financial income6142731,4361,2166 Other financial expenses2020/21
DKK'0002019/20
DKK'000Financial expenses from group enterprises547456Other financial expenses1,9381,6162,4852,072<br />2020/21
DKK'0002019/20
DKK'000Financial expenses from group enterprises547456Other financial expenses1,9381,6162,4852,0727 Tax on profit/loss for the year2020/21
DKK'0002019/20
DKK'000Current tax2,2534,124Change in deferred tax04902,2534,6148 Proposed distribution of profit and loss2020/21
DKK'0002019/20
DKK'000Retained earnings 7,0687,862 7,0687,8629 Intangible assetsCompleted development projects
DKK'000Goodwill
DKK'000Cost beginning of year7592,400Cost end of year7592,400Amortisation and impairment losses beginning of year(759)(1,067)Amortisation for the year0(250)Amortisation and impairment losses end of year(759)(1,317)Carrying amount end of year01,08310 Property, plant and equipmentLand and buildings
DKK'000Plant and machinery
DKK'000Other fixtures and fittings, tools and equipment
DKK'000Leasehold improvements
DKK'000Cost beginning of year33,87640,35011,45683Additions001,3820Disposals(209)0(796)0Cost end of year33,66740,35012,04283Depreciation and impairment losses beginning of year(27,079)(33,990)(9,681)(83)Depreciation for the year(1,043)(1,670)(758)0Reversal regarding disposals20907170Depreciation and impairment losses end of year(27,913)(35,660)(9,722)(83)Carrying amount end of year5,7544,6902,320011 Financial assetsInvestments in group enterprises
DKK'000Deposits
DKK'000Cost beginning of year27,68761Cost end of year27,68761Impairment losses beginning of year(19,479)0Exchange rate adjustments(813)0Amortisation of goodwill(546)0Share of profit/loss for the year(403)0Adjustment of intra-group profits1550Investments with negative equity value depreciated over receivables (2,460)0Other adjustments2,0920Impairment losses end of year(21,454)0Carrying amount end of year6,23361Investments in subsidiariesRegistered inCorporate formEquity
interest
%Alfred Thomsen GmbH Eichenzell, GermanyGmbH100Epoke Maschinenbau GmbH & Co. KG Eichenzell, GermanyGmbH & Co. KG100Epoke Sp. z.o.o. Warzawa, PolandSp. z.o.o. 100Brodd Sweden AB SwedenAB100Brodd Polonia Sp. z.o.o. Poland Sp. z.o.o. 100<br />Investments in group enterprises
DKK'000Deposits
DKK'000Cost beginning of year27,68761Cost end of year27,68761Impairment losses beginning of year(19,479)0Exchange rate adjustments(813)0Amortisation of goodwill(546)0Share of profit/loss for the year(403)0Adjustment of intra-group profits1550Investments with negative equity value depreciated over receivables (2,460)0Other adjustments2,0920Impairment losses end of year(21,454)0Carrying amount end of year6,2336112 Other receivablesOther receivables include a receivable of DKK 41,131k at the Danish Tax Authorities, which the company can claim for payment within 5 days.13 PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years.14 Share capitalNumberPar value
DKK'000Nominal
value
DKK'000Ordinary shares1,5001015,0001,50015,00015 Other provisionsOther provisions comprise service and warranty commitments.16 Non-current liabilities other than provisionsDue within 12 months
2020/21
DKK'000Due within 12
months
2019/20
DKK'000Due after more than 12 months
2020/21
DKK'000Outstanding after 5 years
2020/21
DKK'000Debt to other credit institutions9599626,6242,847Other payables06516,3055,8009591,61312,9298,64717 Other payables2020/21
DKK'0002019/20
DKK'000VAT and duties6100Wages and salaries, personal income taxes, social security costs, etc payable6,2683,387Holiday pay obligation4,8775,920Other costs payable7,8611,28119,61610,58818 Changes in working capital2020/21
DKK'0002019/20
DKK'000Increase/decrease in inventories11,803(6,165)Increase/decrease in receivables(31,262)316Increase/decrease in trade payables etc8,3112,646(11,148)(3,203)19 Financial instrumentsInterest rate swap has been entered into in order to hedge the interest risk involved in bank loans until
maturity. The fair value of the interest rate swap amounts to DKK 94k at 28.02.2021 and has been recognised
as other payable. The interest rate swap guarantees a fixed interest rate of 4.08% on the loan concerned.
20 Unrecognised rental and lease commitments2020/21
DKK'0002019/20
DKK'000Liabilities under rental or lease agreements until maturity in total8451,46821 Contingent liabilitiesThe Entity participates in a Danish joint taxation arrangement in which Epoke Investment II A/S serves as the administration company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for the jointly taxed entities, and for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for the jointly taxed entities. The total known net liability of the jointly taxed entities under the joint taxation arrangement is evident from the administration company’s financial statements.
22 Assets charged and collateralDebt to other credit institutions, DKK 7,583k are secured on real property. The mortgage also comprises
the plant and machinery deemed part of the property.
The carrying amount of mortgaged properties is DKK 5,754k and the carrying amount of mortgaged plant is
DKK 4,690k.
As collateral for bank loans, DKK 20k, the company has issued a floating company charge at nominal
value DKK 30,000k including inventories, trade receivables, intangible assets and other fixtures and fittings, tools and equipment, which amounts to DKK 89,743k.
Collateral provided for group enterprisesThe Entity has issued a letter of support to Epoke Maschinenbau GmbH & Co. KG. Total liabilities for Epoke
Maschinenbau GmbH & Co. KG is DKK 14,752k at 28.02.2021 however DKK 9,713k is intercompany liabilities to
Epoke A/S.23 Related parties with controlling interestEpoke Investment II A/S, Charlottenlund, Denmark holds all shares in Epoke A/S and so it controls the company. The ultimate
parent, Erhvervsinvest II K/S, Charlottenlund, Denmark holds more than 90% of the shares of Epoke Investment II A/S and has controlling interest.24 Non-arm’s length related party transactionsAccording to section 98c(7) of the Danish Financial Statements Act, only non-arm’s-length related party
transactions are disclosed. However, all transactions have been made on arm’s length basis in the financial
year.25 Group relationsName and registered office of the Parent preparing consolidated financial statements for the group:
Epoke Investment II A/S, Charlottenlund, Denmark. This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (medium).The accounting policies applied to these financial statements are consistent with those applied last year.falseConsolidated financial statementsReferring to section 112(1) of the Danish Financial Statements Act,
no consolidated financial statements have been prepared.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the
transaction date. Receivables, payables and other monetary items denominated in foreign currencies that
have not been settled at the balance sheet date are translated using the exchange rate at the balance
sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect
at the payment date, or the rate at the balance sheet date, are recognised in the income statement as
financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and
other non-monetary assets that have been purchased in foreign currencies are translated using historical
rates.
When recognising foreign subsidiaries and associates that are independent entities, the income statements
are translated at average exchange rates for the months that do not significantly deviate from the rates at
the transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered belonging to the independent foreign entity and is translated using the exchange
rate at the balance sheet date. Exchange differences arising out of the translation of foreign subsidiaries’
equity at the beginning of the year at the balance sheet date exchange rates and out of the translation of income statements from average rates to the exchange rates at the balance sheet date are classified
directly as equity.
Exchange adjustments of outstanding accounts with independent foreign subsidiaries, which are considered
part of the total investment in the subsidiary in question, are classified directly as equity.Derivative financial instrumentsOn initial recognition in the balance sheet, derivative financial instruments are measured at cost and
subsequently at fair value. Derivative financial instruments are recognised under other receivables or other
payables.
Changes in the fair value of derivative financial instruments classified as and complying with the
requirements for hedging the fair value of a recognised asset or a recognised liability are recorded in the
income statement together with changes in the value of the hedged asset or the hedged liability.
Changes in the fair value of derivative financial instruments classified as and complying with the
requirements for hedging future transactions are recognised directly in equity. When the hedged transactions
are realised, the accumulated changes are recognised as part of cost of the relevant financial statement
items.
For derivative financial instruments that do not comply with the requirements for being treated as hedging
instruments, changes in fair value are recognised currently in the income statement as financial income or
financial expenses.Public grantsPublic grants are recognised when a final commitment has been received from the grantor and it is probable
that the conditions of the grant will be fulfilled. Grants are recognised as income in the income statement
as earned. RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement when delivery is made and risk has passed to the buyer. Revenue from the sale of services is recognised in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and sales discounts and is measured at fair value of the consideration fixed. Changes in inventories of finished goods and work in progressChanges in inventories of finished goods and work in progress comprise decreases or increases for the financial year in inventories of finished goods and work in progress. This item includes ordinary writedowns of such inventories. Changes in inventories of raw materials are included in costs of raw materials and consumables. Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities, including gains and losses
from the sale of intangible assets as well as property, plant and equipment.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary
inventory writedowns.
Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of receivables recognised in current assets. Staff costsStaff costs comprise salaries and wages as well as social security contributions, pension contributions, etc for entity staff.Depreciation, amortisation and impairment lossesAmortisation, depreciation and impairment losses relating to intangible assets and property, plant and equip-ment comprise amortisation, depreciation and impairment losses for the financial year, calculated on the basis of the residual values and useful lives of the individual assets and impairment testing.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of internal profits or losses. Other financial incomeOther financial income comprises interest income, including interest income on receivables from group en-terprises, net capital gains on payables and transactions in foreign currencies as well as tax relief under the Danish Tax Prepayment Scheme etc. Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group en-terprises, net capital losses on securities, payables and transactions in foreign currencies, amortisation of financial liabilities as well as tax surcharge under the Danish Tax Prepayment Scheme etc. Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion attributable to entries directly in equity.
The Entity is jointly taxed with the parent company and all the parent company’s Danish subsidiaries. The current
Danish income tax is allocated among the jointly taxed entities proportionally to their taxable in-come (full
allocation with a refund concerning tax losses). GoodwillGoodwill is the positive difference between cost and value in use of assets and liabilities taken over as part of the acquisition. Goodwill is amortised straight-line over its estimated useful life which is fixed based on the experience gained by Management for each business area. Useful life is determined based on an assess-ment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings profile and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. If it is not possible to estimate the useful life reliably, it is set at 10 years. Useful lives are reassessed on an annual basis. The amortisation period used is 10 years.
Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etcIntellectual property rights etc comprise development projects completed and in progress with related intel-lectual property rights. Development projects on clearly defined and identifiable products and processes, for which the technical rate of utilisation, adequate resources and a potential future market or development opportunity in the enterprise can be established, and where the intention is to manufacture, market or apply the product or process in question, are recognised as intangible assets. Other development costs are recognised as costs in the income statement as incurred. When recognising development projects as intangible assets, an amount equalling the costs incurred is taken to equity under Reserve for development costs that is reduced as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and indirectly attributable to the development projects.
Completed development projects are amortised on a straight-line basis using their estimated useful lives which are determined based on a specific assessment of each development project. If the useful life cannot be estimated reliably, it is fixed at 10 years. For development projects, protected by intellectual property rights, the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation period used is 5 years.
Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentLand and buildings, plant and machinery as well as other fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses. Land is not depreciated.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the asset until the time when it is ready to be put into operation. For self-constructed assets, cost comprises direct and indirect costs of materials, components, subsuppliers and labour costs.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible assets and depreciation of property, plant and equipment used in the development process are recognised in cost based on time spent on each asset.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line de-preciation is made on the basis of the following estimated useful lives of the assets: Buildings7-33 yearsPlant and machinery3-10 yearsOther fixtures and fittings, tools and equipment3-5 yearsLeasehold improvements7 yearsFor leasehold improvements the depreciation period cannot exceed
the contract period.
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesInvestments in group enterprises are recognised and measured according to the equity method. This means that investments are measured at the pro rata share of the enterprises’ equity value plus or minus unamor-tised goodwill and plus or minus unrealised intra-group profits or losses.
Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises are written down to net realisable value based on a specific assessment. If the Parent has a legal or con-structive obligation to cover the liabilities of the relevant enterprise, and it is probable that such obligation is imminent, a provision is recognised that is measured at present value of the costs deemed necessary to incur to settle the obligation.
Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to Reserve for net revaluation according to the equity method under equity.
Goodwill is calculated as the difference between cost of the investments and fair value of the pro rata share of assets and liabilities acquired. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. Useful life is determined based on an assessment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings profile and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. If the useful life cannot be estimated reliably, it is fixed at 10 years. Useful lives are reassessed annually. The amortisation period used is 10 years.
Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists of costs of raw materials, consumables, direct labour costs and indirect production costs.
Indirect production costs comprise indirect materials and labour costs, costs of maintenance of, depreciation of and impairment losses relating to machinery, factory buildings and equipment used in the manufacturing process as well as costs of factory administration and management. Finance costs are not included in cost.
The net realisable value of inventories is calculated as the estimated selling price less completion costs and costs incurred to execute sale. ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and
doubtful debts.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.<br />Joint taxation contributions payable or receivableCurrent joint taxation contributions receivable or joint taxation contributions payable are recognised in the
balance sheet, calculated as tax computed on the taxable income of the year, which has been adjusted for
prepaid tax. For tax losses, joint taxation contributions receivable are only recognised if such losses are
expected to be used under the joint taxation arrangement.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises cash in hand and bank deposits.Other provisionsOther provisions comprise anticipated costs of guarantee commitments etc.
Other provisions are recognised and measured as the best estimate of the expenses required to settle the liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the balance sheet date are measured at their discounted value.
Guarantee commitments comprise commitments to remedy defects and deficiencies within the guarantee period. Operating leasesLease payments on operating leases are recognised on a straight-line basis in the income statement over
the term of the lease.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the
goods agreed or completion of the service agreed.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating profit/loss adjusted for non-cash operating items, working capital changes and income taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of enterprises, activities and fixed asset investments as well as purchase, development, improvement and sale, etc of intangible assets and property, plant and equipment, including acquisition of assets held under finance leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital and related costs as well as the raising of loans, inception of finance leases, repayments of interest-bearing debt, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less short-term bank loans. The cash flow statement shows cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating profit/loss adjusted for non-cash operating items, working capital changes and income taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of enterprises, activities and fixed asset investments as well as purchase, development, improvement and sale, etc of intangible assets and property, plant and equipment, including acquisition of assets held under finance leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital and related costs as well as the raising of loans, inception of finance leases, repayments of interest-bearing debt, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less short-term bank loans. 2021-04-29Anders Møberg Eriksen