10139384 2025-01-01 2025-12-31 10139384 2025-01-01 2025-12-31 1 10139384 2025-01-01 2025-12-31 1 10139384 2025-01-01 2025-12-31 2 10139384 2025-01-01 2025-12-31 3 10139384 2025-01-01 2025-12-31 1 10139384 2023-01-01 2023-12-31 10139384 2022-01-01 2022-12-31 10139384 2021-01-01 2021-12-31 10139384 2023-12-31 10139384 2022-12-31 10139384 2021-12-31 10139384 2024-01-01 2024-12-31 10139384 2025-12-31 10139384 2024-12-31 10139384 2025-01-01 c:ContributedCapitalMember 10139384 2025-01-01 c:ReserveForDevelopmentExpenditureMember 10139384 2025-01-01 c:RetainedEarningsMember 10139384 2025-01-01 c:ProposedDividendRecognisedInEquityMember 10139384 2025-01-01 2025-12-31 c:ProposedDividendRecognisedInEquityMember 10139384 2025-01-01 2025-12-31 c:RetainedEarningsMember 10139384 2025-01-01 2025-12-31 c:ReserveForDevelopmentExpenditureMember 10139384 2025-12-31 c:ContributedCapitalMember 10139384 2025-12-31 c:ReserveForDevelopmentExpenditureMember 10139384 2025-12-31 c:RetainedEarningsMember 10139384 2025-12-31 c:ProposedDividendRecognisedInEquityMember 10139384 2025-01-01 10139384 2024-01-01 10139384 2025-01-01 c:CompletedDevelopmentProjectsMember 10139384 2025-01-01 c:AcquiredIntangibleAssetsMember 10139384 2025-01-01 2025-12-31 c:CompletedDevelopmentProjectsMember 10139384 2025-01-01 2025-12-31 c:AcquiredIntangibleAssetsMember 10139384 2025-12-31 c:CompletedDevelopmentProjectsMember 10139384 2025-12-31 c:AcquiredIntangibleAssetsMember 10139384 2025-01-01 c:FixturesFittingsToolsAndEquipmentMember 10139384 2025-01-01 c:LeaseholdImprovementsMember 10139384 2025-01-01 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 10139384 2025-01-01 2025-12-31 c:LeaseholdImprovementsMember 10139384 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 10139384 2025-12-31 c:LeaseholdImprovementsMember 10139384 2025-01-01 c:OtherReceivablesMember 10139384 2025-01-01 2025-12-31 c:OtherReceivablesMember 10139384 2025-12-31 c:OtherReceivablesMember iso4217:DKK xbrli:pure BDO Statsautoriseret Revisionspartnerselskab Havneholmen 2, 6. sal DK-2450 Copenhagen SV 45719375 Årsrapport 2026-05-26 René Kristoffersen Watson-Marlow Flexicon A/S Frejasvej 2-6 4100 Ringsted Den uafhængige revisors erklæring 10139384 1986-01-01 Ringsted 2025-01-01 2025-12-31 2024-01-01 2024-12-31 Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6 2300 Copenhagen Today the Board of Directors and Executive Board have discussed and approved the Annual Report of Watson-Marlow Flexicon A/S for the fi­nan­ci­al year 1 January  - 31 December 2025. 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 Company's assets, liabilities and financial position at 31 December 2025 and of the results of the Company's operations and cash flows for the fi­nan­ci­al year 1 January  - 31 December 2025. The Management Commentary includes in our opinion a fair presentation of the matters dealt with in the Commentary. We recommend the Annual Report be approved at the Annual General Meeting. Ringsted 2026-03-25 Dennis Brockhoff Thaysen Steven Blair Philip Andrew Scott Chairman Assane N’Diaye To the Shareholders of Watson-Marlow Flexicon A/S Konklusion We ha­ve au­di­ted the Fi­nan­ci­al Sta­te­ments of Watson-Marlow Flexicon A/S for the fi­nan­ci­al year 1 January - 31 December 2025, which comprise income statement, Balance Sheet, sta­te­ment of chan­ges in e­qui­ty, cash flows, no­tes and 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 assets, liabilities and financial position of the Com­pa­ny at 31 December 2025 and of the results of the Com­pa­ny's operations and cash flows for the fi­nan­ci­al year 1 January - 31 December 2025 in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   Basis for OpinionGrundlag for konklusion 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 (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the Financial Statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We be­lie­ve that the e­vi­den­ce we ha­ve ob­tai­ned is suf­fi­ci­ent and ap­prop­ria­te to pro­vi­de a ba­sis for our con­clu­si­on.   Grundlag for konklusion Ma­na­ge­ment's Re­spon­si­bi­li­ti­es for the Fi­nan­ci­al Sta­te­ments 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 judgment and maintain professional skepticism 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.   Statement on Management Commentary Management is responsible for Ma­na­ge­ment Com­men­ta­ry.   Our opinion on the Fi­nan­ci­al Sta­te­ments does not cover 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 Ma­na­ge­ment Com­men­ta­ry and, in doing so, consider whether Ma­na­ge­ment Com­men­ta­ry 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 Com­men­ta­ry provides the information required under the Danish Financial Statements Act.   Based on the work we have performed, we conclude that 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 Ma­na­ge­ment Com­men­ta­ry.   Copenhagen 2026-03-25 Deloitte Statsautoriseret Revisionspartnerselskab 33963556 Flemming Larsen Den uafhængige revisors erklæring State Authorised Public Accountant mne27790 60705000 66463000 77660000 21682000 30468000 48654000 -334000 -109000 -1343000 16956000 24310000 37158000 90782000 68565000 83750000 71827000 54871000 67562000 -15797000 -10102000 -3617000 -6684000 -717000 66 73 75 77 66 8.2 15.0 26.8 39.7 60.9 The ratios stated in the list of key figures and ratios have been calculated as follows:   Return on equity: Profit/loss after tax x 100        Average equity Principal activities As in prior years, the Company’s primary activities consist of design, production and sale of filling and encapsulation machines.   Development in activities and financial position The Gross Profit for the financial year amounts to DKK ‘000 49,395 against DKK ‘000 56,675 in the previous year, corresponding to a decrease of 5%. Profit before Tax amounts to DKK ‘000 8,919 against DKK ‘000 15,358 last year. During the year, customer demand has been positively affected by the beginnings of a recovery in the Biopharm sector. The demand for consumables has been relatively strong, while demand for capital equipment is still low, following strong demand during the Covid-19 pandemic.  Inventories have furthermore been reduced by DKK ‘000 11,578 through transfer of a Cellefill iASP system to demo stock under Property, plant and equipment. Gross Profit for the year is affected by an extraordinary write-down on inventories of DKK ‘000 10,241.  Following the challenging market conditions, including the effects of US tariffs on global trade, the Company does not expect a material recovery in sales in 2026. The Management considers the Profit for the year as satisfactory in consideration of the difficult market conditions.   Profit/loss for the year compared to the expected development The development in volume for the year is slightly below the Company’s expectations, while the development in profit for the year is in line with the expectations as stated in the Annual Report 2024.  The low demand for capital equipment has affected the sales of bespoke systems more than expected.   Significant events after the end of the financial year No events have occurred after the end of the financial year of material importance for the company’s financial position.   Special risks Operational risks The Company’s most significant operational risks are attached to the ability to maintain a strong position on its key markets and to be on the forefront of the technological development within the Company’s main products. Financial risks The Company is through its operations, investments and financing only to a certain extent exposed to changes in foreign exchange rates and changes in the market rate of interest. Foreign exchanges risks Most of the Company’s revenue is in DKK or EUR, which significantly reduces its exchange risks. However, a part of the revenue is in USD, and a part of the cost of goods is in GBP so the Company is exposed to significant changes in these currencies. Future expectations The Company expects Gross Profit for 2026 in the range of DKK 55-60 mio. and profit for the year 2026 in the range of DKK 12-16 mio.    Environmental situation The Company is certified according to ISO 9001:2015, ISO 14001:2015 and ISO 45001. The Company is working determinedly to improve the environmental effort. This is done within the framework of the Spirax Group’s overall targets.   49395000 56675000 13689000 15088000 26877000 24948000 8829000 16639000 457000 280000 367000 1561000 8919000 15358000 1760000 3691000 7159000 11667000 17961000 19320000 44000 20000 18005000 19340000 16232000 1268000 7111000 8127000 23343000 9395000 483000 474000 483000 474000 41831000 29209000 12525000 19336000 354000 7799000 402000 2944000 0 8938000 13281000 39017000 6148000 10711000 49304000 17570000 0 1090000 630000 1298000 1689000 0 941000 716000 58712000 31385000 71993000 70402000 113824000 99611000 1200000 1200000 14009000 16490000 55444000 65804000 20000000 0 90653000 83494000 4880000 4759000 965000 1811000 5845000 6570000 2311000 4834000 9983000 912000 17326000 9547000 17326000 9547000 113824000 99611000 DKK '000Sha­re ca­pi­talReserve for development costsRetained profitProposed dividendTotal Equity at 1 January 20251.20016.49065.804083.494 -20.000 Proposed profit allocation, note 5 -12.84120.0007.159 Other legal bindingsCapitalized development costs -2.4812.481 0 Equity at 31 December 20251.20014.00955.44420.00090.653 1200000 16490000 65804000 0 -20000000 -12841000 -2481000 2481000 1200000 14009000 55444000 20000000 7159000 11668000 3750000 3747000 89000 1280000 1761000 3691000 -2650000 -1793000 25736000 5800000 -26309000 -16449000 7777000 -1966000 -846000 -1995000 16467000 3983000 -576000 -9054000 -15797000 -1049000 -16373000 -10103000 -94000 -1284000 -94000 -1284000 0 -7404000 0 7404000 1 | Staff costs Ave­ra­ge num­ber of full ti­me em­ploy­ees6673 Wages and salaries 40.02942.000 Pensions 6.5227.242 Social security costs 648247 47.19949.489 The remuneration of the Board of Executives is, in accordance with section 98 b(3) of the Danish Financial Statements Act, not disclosed, as the Board of Executives consists of only one member. No remuneration has been paid to the Board of Directors. 66 73 40029000 42000000 6522000 7242000 648000 247000 47199000 49489000 2 | Financial income Other interest income 457280 457280 457000 280000 457000 280000 3 | Financial expenses Other interest expenses 016 Exchange losses 3671.545 3671.561 0 16000 367000 1545000 367000 1561000 1787000 2070000 -148000 496000 121000 1125000 5 | Proposed distribution of profit Proposed dividend for the year 20.0000 Retained earnings -12.84111.667 7.15911.667 20000000 0 -12841000 11667000 7159000 11667000 6 | Intangible assets DKK '000Development projects completedIntangible fixed assets acquired Cost at 1 January 2025 23.179331 Additions 52155 Disposals -2.0830 Cost at 31 December 2025 21.617386   Amortisation at 1 January 2025 3.858311 Amortisation for the year -20231 Amortisation at 31 December 2025 3.656342 Carrying amount at 31 December 202517.96144 DKK '000Development projects completedIntangible fixed assets acquired Cost at 1 January 2025 23.179331 Additions 52155 Disposals -2.0830 Cost at 31 December 2025 21.617386   Amortisation at 1 January 2025 3.858311 Amortisation for the year -20231 Amortisation at 31 December 2025 3.656342 Carrying amount at 31 December 202517.96144 23179000 331000 521000 55000 2083000 0 21617000 386000 3858000 311000 -202000 31000 3656000 342000 17961000 44000 7 | Property, plant and equipment DKK '000Other plant, machinery, tools and equipmentLeasehold improvements Cost at 1 January 2025 4.24810.260 Additions 15.7970 Disposals -5290 Cost at 31 December 2025 19.51610.260   Depreciation and impairment losses at 1 January 2025 2.9792.133 Reversal of depreciation of assets disposed of -5140 Depreciation for the year 8191.016 Depreciation and impairment losses at 31 December 2025 3.2843.149 Carrying amount at 31 December 202516.2327.111 4248000 10260000 15797000 0 529000 0 19516000 10260000 2979000 2133000 514000 0 819000 1016000 3284000 3149000 16232000 7111000 8 | Financial non-current assets DKK '000Rent deposit and other receivables Cost at 1 January 2025 474Additions 9Cost at 31 December 2025 483  Carrying amount at 31 December 2025483 474000 9000 483000 483000 9 | Receivables from group enterprises Receivables from group enterprises consts of cash pool arangement of 41,099 TDKK for 2025 compared to 11,573 TDKK for 2024 and other receivables from group enterpireses of 8,205 TDKK for 2025 compared to 5,,997 TDKK for 2024.  10 | Prepayments and accrued income Insurances 941716 941716 11 | Sha­re ca­pi­talAllocation of Share capital: Shares, 1.200 unit in the denomination of 1.000 DKK1.2001.200 1.2001.200 12 | Provision for deferred tax The provision for deferred tax is related to differences between the carrying amount and tax value of securities, receivables, intangible and tangible fixed assets, including recognised finance lease contracts. 20252024 DKK '000DKK '000 Deferred tax relates to the following: Operating equipment 684-86 Leasehold improvements 215226 Software 104 Development costs 3.9514.252 Stock 20363 4.8804.759 Deferred tax, beginning of year 4.7593.634 Deferred tax of the year, income statement 1211.125 Deferred tax for the year through profit/loss statement4.8804.759 13 | Other provisions for liabilities Provisions expected to mature within one year 9651.811 Other provisions for liabilities includes warranty provisions etc. 15 | Related parties The controlling interest of Watson-Marlow Flexicon A/S includes: Controlling interest Related parties with a controlling interest comprise: Spirax-Sarco Investments Ltd., Charlton House, Cheltenham, Gloucestershire, GL53 BER, United Kingdom. Related parties with a significant influence comprise: Spirax-Sarco Engineering BV., Charlton House, Cheltenham, Gloucestershire, GL53 BER, United Kingdom. Other related parties having performed transactions wih the company The company's related parties having a significant influence comprise subsidiaries and associates as well as the companies' Board of Directors, Board of Executives and executive officers and their relatives. Related parties also include companies in which the above mentioned group of persons has material interests. Transactions with related parties The company did not carry out any material transactions that were not concluded on market conditions. According to section 98c, subsection 7 of the Danish Financial Statements Act information is given only on transactions that were not performed on common market conditions. 16 | Consolidated Financial Statements Name and registered office address of the Parent preparing consolidated financial statements for the smallest group: Spirax-Sarco Engineering Plc, Charlton House, Cheltenham, Gloucestershire, GL53 8ER, United Kingdom, www.spiraxsarcoengineering.com. The Annual Report of Watson-Marlow Flexicon A/S for 2025 has been presented in accor­dance with the pro­vi­sions of the Da­nish me­di­um-si­ze Fi­nan­ci­al State­ments Act for en­ter­pri­ses in re­por­ting class C.  Regnskabsklasse C, mellemstor virksomhed-falseThe Annual Report is prepared consistently with the accounting principles applied last year.   Regnskabsklasse C, mellemstor virksomhed false Gross Profit Gross profit is calculated with reference to Section 32 of the Danish Financial Statements Act as a summary of net revenue, other operating income and other external costs. Net revenue Net revenue from sale of merchandise and finished goods is recognised in the Income Statement if supply and risk transfer to purchaser has taken place before the end of the year and if the income can be measured reliably and is expected to be received. Net revenue is recognised exclusive of VAT, duties and less discounts related to the sale.   Production costs Production costs comprise costs, including wages and salaries and write-off, incurred to achieve the net revenue for the year. Commercial enterprises recognise cost of sales, and the manufacturing enterprises recognise production costs equal to the revenue for the year, including direct and indirect costs of raw materials and consumables, wages and salaries, rent and leasing and depreciation of production plant.   Amortisation of capitalised development and research costs and the development costs that do not fulfil the criteria for capitalisation are also recognised in production costs.   Write-down is recognised in connection with expected losses on project contracts.   Distribution costs The costs incurred for distribution of goods sold during the year and for sales campaigns carried out during the year are recognised in distribution costs. The costs of the sales personnel, advertising and exhibition costs and amortisation are also recognised in distribution costs.   Administrative expenses Administrative expenses recognise costs incurred during the year regarding management and administration of the group, inclusive of costs relating to the administrative staff, executives, office premises, office expenses etc and related amortisation.   Financial income and expenses Financial income and expenses include interest income and expenses, financial expenses of finance leases, realised and unrealised gains and losses arising from investments in financial assets, debt and transactions in foreign curren­cies, amortisation of financial assets and liabi­lities as well as charges and allowances under the tax-on-account scheme etc. Financial income and expenses are recognised in the income statement by the amounts that relate to the financial year.   Tax The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the income statement by the portion that may be attributed to the profit for the year, and is recognised directly in the equity by the portion that may be attributed to entries directly to the equity.   Intangible fixed assets Acquired goodwill is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over the expected useful life which is estimated to 10 years. The period of amortisation is determined based on an assessment of the acquired company’s position in the market and earnings profile, and the industry-specific conditions.   Profit or loss from sale of intangible fixed assets is calculated at the difference between the sales price and the carrying amount at the time of the sale. Profit and loss are recognised in the Income Statement under other operating income or other operating expenses.    Property, plant and equipment Production plant and machinery, other plants, fixtures and equipment are measured at cost less accumulated depreciation and write-down.   The depreciation base is cost less estimated residual value after end of useful life.   The cost includes the acquisition price and costs incurred directly in connection with the acqui­sition until the time when the asset is ready to be used. As regards self-manufactured assets, the cost price includes cost of materials, components, subcontractors, direct payroll and indirect production costs.   Straight-line depreciation is provided on the basis of an assessment of the expected useful lives of the assets and their residual value:   Useful lifeProduction plant and machinery 2-8 yearsOther plant, fixtures and equipment 3-5 yearsLeasehold improvements 5 yearsEstimated useful lives and residual values are reassessed annually. Profit or loss on sale of property, plant and equipment is stated as the difference between the sales price less selling costs and the carrying amount at the date of sale. Profit or loss is recognised in the Income Statement as other operating income or other operating expenses.   Financial non-current assets Impairment of fixed assets The carrying amount of intangible and tangible fixed assets together with investments, which are not measured at fair value, are valued on an annual basis for indications of impairment other than that reflected by amortisation and depreciation.    In the event of impairment indications, an impairment test is made for each asset or group of assets, respectively. If the net realisable value is lower than the carrying amount, write-down is provided to the lower value.   The recoverable amount is calculated at the higher of net selling price and capital value. The capital value is determined as the fair value of the expected net cash flows from the use of the asset or group of assets and the expected net cash flows from sale of the asset or group of assets after the end of its useful life.    Inventories Inventories are measured at cost using the FIFO-principle. If the net realisable value is lower than cost, write-down is provided to the lower value.   The cost of merchandise as well as raw materials and consumables is calculated at acquisition price with addition of transportation and similar costs.   The cost of finished goods and work in progress includes cost of raw materials, consumables, direct payroll cost and indirect production cost. Indirect production costs include indirect mate­rials and payroll and maintenance and depreci­ation of the machines, factory buildings and equipment used in the production process, cost of factory administration and management and capitalised development costs relating to the products.   The net realisable value of inventories is stated at sales price less completion costs and costs incurred to execute the sale and is determined with due regard to marketability, obsolescence and development in expected sales price.   Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is reduced by write-down to meet expected losses.   Write-off is performed to provide for losses when an objective indication has been assessed to have incurred that a receivable or a portfolio of receivables are impaired. If there is an objective indication that an individual receivable is impaired, the write-off is performed at individual level.   Receivables for which there are no objective indication of impairment at individual level are assessed at portfolio level for objective indication of impairment. The portfolios are primarily based on the debtors’ registered office and credit rating in accordance with the Company’s policy for credit risk management. The objective indicators, which are applied for portfolios, are determined based on the historical loss experiences.   Write-off is determined as the difference between the carrying amount of receivables and the present value of the expected cash flows, including realisable value of any received collaterals. The effective interest rate is used as discount rate for the single receivable or portfolio.   Accruals, assets Accruals recognised as assets include costs incur­red relating to the subsequent financial year.   Other provisions for liabilities Other provisions for liabilities include the expected cost of warranty commitments and deferred tax.   Warranty commitments include liabilities for improvement of work within the warranty period. The provision for liabilities is measured and recognised on the basis of experience with warranty work.    When it is likely that the total costs will exceed the total income on the contract work in pro­gress, a provision is made for the total loss that is anticipated for the contract. The provision is recognised as a cost under production costs.   Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the balance sheet as the calculated tax on the taxable income for the year, ad­justed for tax on the taxable income for previous years and taxes paid on account.   The Company is subject to joint taxation with Danish group companies. The current corporation tax is distributed among the joint taxable companies in proportion to their taxable income and with full allocation and refund related to tax losses. The joint taxable companies are included in the on account tax scheme. Joint taxation contributions receivable and payable are recognised in the Balance Sheet under current assets and liabilities, respectively.    Deferred tax is measured on the temporary dif­ferences between the carrying amount and the tax value of assets and liabilities.   Deferred tax assets, including the tax value of tax loss carry-forwards, are measured at the ex­pected realisable value of the asset, either by set-off against 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 under the legislation in force on the balance sheet date would be ap­pli­cable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity.   Liabilities Other financial liabilities are measured at amortised cost, which usually corresponds to nominal value.   Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange on the transaction date. Exchange differences arising between the rate on the transaction date and the rate on the payment date are recognised in the income statement as a financial income or expense. Fixed assets acquired in foreign currencies are translated at the rate of exchange on the transaction date.   Cash Flow Statement   The cash flow statement shows the company’s cash flows for the year for operating activities, investing activities and financing activities in the year, the change in cash and cash equivalents of the year and cash and cash equivalents at beginning and end of the year.   Cash flows from operating activities:Cash flows from operating activities are computed as the results for the year adjusted for non-cash operating items, changes in net working capital and corporation tax paid.   Cash flows from investing activities:Cash flows from investing activities include payments in connection with purchase and sale of intangible and tangible fixed asset and fixed asset investments.   Cash flows from financing activities:Cash flows from financing activities include changes in the size or composition of share capital and related costs, and borrowings and repayment of interest-bearing debt and payment of dividend to shareholders.   Cash and cash equivalents:Cash and cash equivalents include bank overdraft and cash in hand.