35394818 2022-12-31 35394818 2021-12-31 35394818 2020-12-31 35394818 2024-12-31 35394818 2023-12-31 35394818 2024-01-01 fsa:ContributedCapitalMember 35394818 2024-01-01 fsa:RetainedEarningsMember 35394818 2024-01-01 fsa:ProposedDividendRecognisedInEquityMember 35394818 2024-12-31 fsa:ContributedCapitalMember 35394818 2024-12-31 fsa:RetainedEarningsMember 35394818 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 35394818 2024-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 35394818 2024-01-01 fsa:LeaseholdImprovementsMember 35394818 2024-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 35394818 2024-12-31 fsa:LeaseholdImprovementsMember 35394818 2024-01-01 fsa:DepositsLongtermInvestmentsAndReceivablesMember 35394818 2024-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember 35394818 2024-12-31 fsa:LongtermLeaseCommitmentsMember 35394818 2023-12-31 fsa:LongtermLeaseCommitmentsMember 35394818 2024-12-31 fsa:OtherLongtermPayablesMember 35394818 2023-12-31 fsa:OtherLongtermPayablesMember 35394818 2024-12-31 fsa:OtherShorttermPayablesMember 35394818 2023-12-31 fsa:OtherShorttermPayablesMember 35394818 2024-01-01 2024-12-31 35394818 2024-01-01 2024-12-31 1 35394818 2024-01-01 2024-12-31 memberOfBoardIdentifier_executive_board_1 35394818 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_1 35394818 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_2 35394818 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_3 35394818 2024-01-01 2024-12-31 2 35394818 2022-01-01 2022-12-31 35394818 2021-01-01 2021-12-31 35394818 2020-01-01 2020-12-31 35394818 2023-01-01 2023-12-31 35394818 2024-01-01 2024-12-31 fsa:ContributedCapitalMember 35394818 2024-01-01 2024-12-31 fsa:RetainedEarningsMember 35394818 2024-01-01 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 35394818 2024-01-01 2024-12-31 fsa:ManagementMember 35394818 2023-01-01 2023-12-31 fsa:ManagementMember 35394818 2024-01-01 2024-12-31 fsa:BoardOfDirectorsMember 35394818 2023-01-01 2023-12-31 fsa:BoardOfDirectorsMember 35394818 2024-01-01 2024-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 35394818 2024-01-01 2024-12-31 fsa:LeaseholdImprovementsMember 35394818 2024-01-01 2024-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2024-01-01 2023-01-01 2024-12-31 2023-12-31 35394818 OKNygaard A/S Rosbjergvej 5G 8220 Brabrand Aarhus 2013-07-02 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Eventyrvej 16 4100 Ringsted Denmark 39 45 39 45 ringsted@pwc.dk 2025-06-30 Lars Møller Hansen Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of OKNygaard 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 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. 2025-06-30 Brabrand Lars Møller Hansen CEO Morten Hansen Chairman Jesper Nørholt Lars Møller Hansen To the shareholder of OKNygaard 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 for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of OKNygaard A/S for the financial year 1 January - 31 December 2024, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for 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 2025-06-30 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Brian Pedersen State Authorised Public Accountant mne28701 Keld A. M. Nielsen State Authorised Public Accountant mne40037 673037000 640156000 531074000 102109000 89166000 82935000 7170000 5669000 4403000 -3691000 -2909000 -1627000 3986000 2456000 3106000 348370000 329513000 227424000 10099000 21765000 34063000 35079000 20560000 64317000 60331000 57707000 517 486 473 0.28 0.429 0.152 0.139 0.156 -0.033 0.027 0.011 0.009 0.008 -0.053 0.058 0.021 0.017 0.019 0.133 0.192 0.185 0.183 0.254 -0.238 0.145 0.064 0.042 0.055 The mandatory statement on corporate social responsibility pursuant to section 99a of the Danish Financial Statements Act is included in the parent company Armorica Danmark's (CVR.: 40895493) group management report in the section on the statement on corporate social responsibility for 2024. The Board has reviewed the company's data handling, data storage, cybersecurity, and data ethical standards. Our data ethics policy includes essential aspects such as data handling, personal data the company possesses, security management of personal data, description of access rights to the company's systems, the number of years data is stored in the company, etc. In 2024, we finalized our comprehensive review, and it results in an updated data policy. Key activities OKNygaard's ambition is to be the ones who create landscape in Denmark's green outdoor areas and urban spaces and we want to be recognized as trusted landscape gardener and climate contractor both locally and nationwide. As part of Europe's largest landscaping group, idverde, OKNygaard draws on competencies and experience from its affiliated companies in Denmark, France, England, the Netherlands, Germany and Switzerland, and our employees are provided with the opportunity of education and development across the entire Idverde organisation and national borders. We have our head office in Aarhus and branches throughout Denmark. This gives us the opportunity to work for both large nationwide and small local customers. More than 100 landscape gardeners and climate specialists are ready to solve customers' tasks, no matter where in the country we are needed. OKNygaard performs all types of tasks in connection with landscaping and climate solutions. The landscape gardening business is one business area, Landscaping, with associated deliveries within climate, local drainage of rainwater, sewerage and renovation. The customers are business-to-business and public companies, housing associations, institutions as well as nationwide chain companies and organizations. The past year and follow-up on development expectations from last year With effect from 1 January 2024, OKNygaard Maintenance business has been demerged from OKNygaard A/S to the sister company Grøn Vækst A/S (CVR.: 40895493) for consolidating idverde Group’s Maintenance business into one legal entities with the idverde DK Group. For 2024, OKNygaard realized revenue of DKK 275 millions (compared to DKK 792 millions including the demerger OKNygaard Maintenance business). In 2024, OKNygaard has been going through a strategic commercial transformation for acting more selective in our commercial processes for pipeline management and pricing calculation. The work with the transformation and our change of commercial approach has for a short period of 2-3 months in 2024 resulted in a pause for winning new projects and the consequence for a reduced total revenue for 2024. The profit margin before non-operating items ended at 0.2% (compared to 4.4% in 2023), which is negatively affected by a lower gross margin from several projects and not in line with our expectation and our historically normally good project executions. Risk management OKNygaard 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. Targets and expectations for the year ahead Expectations for 2025 are characterized by an increased focus on commercial transformation, profitability and synergies from the integration plan in the idverde group, including increased collaboration with Lauge Bonde Aps in West Jutland of Denmark. We expect a further negative revenue growth rate in the range of 10%-20% based for 2024. The profit margin before non-operating items is expected in the range of 4%-6%. Uncertainty relating to recognition and measurement Measurement of contract work in progress is based on accounting estimates made by management. The estimates are made in accordance with accounting policies and based on assumptions and experience that management considers realistic and responsible. Unusual events No unusual circumstances have occurred during the financial year that have had an impact on the for the period profit or balance sheet for the period as of 31 December 2024. Subsequent events No events of significant importance to the financial position of the company have occurred after the end of the financial year. 275196000 792064000 2580000 12206000 169260000 366828000 31421000 97792000 77095000 339650000 80092000 292867000 5731000 24741000 268000 756000 -8996000 21286000 1209000 2837000 5016000 11690000 -12803000 12433000 -1764000 2697000 -11039000 9736000 0 3800000 2000000 6000000 -13039000 -64000 24337000 85335000 408000 701000 24745000 86036000 0 1000 943000 3248000 943000 3249000 25688000 89285000 1747000 3269000 1747000 3269000 67255000 151639000 22126000 53907000 36850000 33380000 312000 2349000 0 10000 9274000 12799000 135817000 254084000 7357000 19242000 144921000 276595000 170609000 365880000 5308000 5308000 15345000 58945000 2000000 6000000 22653000 70253000 16890000 18538000 16890000 18538000 12595000 40463000 2265000 6687000 14860000 47150000 47618000 80343000 5691000 17033000 33088000 68478000 5418000 7549000 14634000 11510000 9757000 45026000 116206000 229939000 131066000 277089000 170609000 365880000 5308000 58945000 6000000 0 -30561000 0 0 0 6000000 0 -13039000 2000000 5308000 15345000 2000000 No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Geographical segments Revenue, Denmark 275196000 792064000 Total 275196000 792064000 Business segments Construction work 275196000 369668000 Operation and maintenance 0 422396000 Total 275196000 792064000 70455000 261226000 7015000 23141000 2622000 8500000 80092000 292867000 1969000 2326000 120000 120000 2089000 2446000 131 552 Including remuneration to the Executive Board and Board of Directors: 1136000 2416000 73000 421000 1209000 2837000 -1764000 2697000 -1519000 -968000 1519000 968000 -1764000 2697000 188736000 2038000 144052000 1522000 9902000 198000 5050000 0 49536000 714000 103401000 1337000 79852000 1144000 5618000 113000 3968000 0 25199000 306000 24337000 408000 18503000 0 3248000 2311000 322000 316000 943000 943000 Selling price of work in progress 678813000 824051000 Payments received on account -662105000 -777693000 Total 16708000 46358000 Recognised in the balance sheet as follows: Contract work in progress recognised in assets 22126000 53907000 Prepayments received recognised in debt -5418000 -7549000 Total 16708000 46358000 Prepayments comprises prepaid expenses relating to materials for use in contract work, insurances, subscriptions etc. Deferred tax liabilities at 1 January 18538000 14873000 Net effect from demerger and business sale -1404000 0 Amounts recognised in the income statement for the year -244000 3665000 Deferred tax liabilities at 31 December 16890000 18538000 0 0 12595000 40463000 12595000 40463000 5691000 17033000 0 0 2265000 6687000 2265000 6687000 9757000 45026000 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: Lease obligations Other payables Charges and security The following assets have been placed as security with in connection with the company having provided a floating charge of TDKK 20,100: Other fixtures and fittings, tools and equipment 6169000 28001000 Inventories 1747000 3269000 The company has provided surety bonds to other group companies. Rental and lease obligations Rental obligations regarding fixed assets, non-cancellation periods between 1 and 52 months 14177000 10076000 Rental obligations regarding rental contracts, non-cancellation periods between 1 and 123 months 47281000 43336000 Guarantee obligations The company is responsible for work warranty commitments that the guarantee insurance company has given to third parties 89938000 109914000 Other contingent liabilities The company is jointly taxed with other companies in the group and is jointly and severally liable for income taxes for the jointly taxed companies. The total known tax liability for the jointly taxed companies at the balance sheet date has not yet been calculated. Please refer to the management company Armorica Danmark ApS' annual accounts for further information. Basis Controlling interest Armorica Danmark ApS, Roskilde Parent company IDVERDE Société par actions simplifiée á associé unique Ultimate parent company 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) of the Danish Financial Statements Act. There have been no transactions with the Supervisory Board, the Executive Board, senior officers, significant shareholders, group enterprises or other related parties, except for intercompany transactions and normal management remuneration. Consolidated Financial Statements The Company is included in the Group Annual Report of the Parent Company: Name Place of registered office Armorica Danmark ApS Roskilde, Denmark The Annual Report of OKNygaard A/S for 2024 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The Financial Statements for 2024 are presented in TDKK. Some changes have been made to the comparison figures. The changes have no effect on the year's result, equity and balance sheet total. false The presentation format in the income statement has been changed from function-based to nature-based in 2024. Comparative figures for 2023 have been adjusted. The changes have no effect on the year's result, equity and balance sheet total. Otherwise, the accounting policies are unchanged compared to last year. With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of , the Company has not prepared a cash flow statement. 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. Danish kroner is used as the presentation currency. All other currencies are regarded as foreign currencies. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement; however, see the section on hedge accounting. Income statements of foreign subsidiaries and associates that are separate legal entities are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising on the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity. Income statements of enterprises that are integrated entities are translated at transaction date rates or approximated average exchange rates; however, items derived from non-monetary balance sheet items are translated at the transaction date rates of the underlying assets or liabilities. Monetary balance sheet items are translated at the exchange rates at the balance sheet date, whereas non-monetary items are translated at transaction date rates. Exchange adjustments arising on the translation are recognised in financial income and expenses in the income statement. Revenue from the sale of goods for resale and finished goods is recognised in the income statement when the sale is considered effected based on the following criteria:• delivery has been made before year end;• a binding sales agreement has been made;• the sales price has been determined; and• payment has been received or may with reasonable certainty be expected to be received. 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-of-completion 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. Services are recognised at the rate of completion of the service to which the contract relates by using the percentage-of-completion method, which means that revenue equals the selling price of the service completed for the year. This method is applied when total revenues and expenses in respect of the service 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 service. 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 as well as office expenses, etc. Staff costs include wages and salaries including compensated absence and pensions as well as other social security contributions etc. made to the entity's employees. 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 comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra payments and repayment under the on-account taxation scheme. 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 the Danish affiliated companies. The tax effect of the joint taxation with the subsidiaries is allocated to 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. Interest expenses on loans contracted directly for financing the construction of property, plant and equipment are recognised in cost over the construction period. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Other fixtures and fittings, tools and equipment 3-5 years Leasehold improvements 5 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. The recoverable amount of the asset is calculated as the higher of net selling price and value in use. Where a recoverable amount cannot be determined for the individual asset, the assets are assessed in the smallest group of assets for which a reliable recoverable amount can be determined based on a total assessment. Goodwill, head office buildings and other assets for which a separate value in use cannot be determined as the asset does not on an individual basis generate future cash flows are reviewed for impairment together with the group of assets to which they are attributable. Fixed asset investments, which consist of listed bonds and shares, are measured at their fair values at the balance sheet date. Fair value is determined on the basis of the latest quoted market price. Investments which are not traded in an active market are measured at the lower of cost and recoverable amount. Other fixed asset investments consist of deposit which are recognised and measured at cost. 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 recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised in respect of temporary differences concerning goodwill not deductible for tax purposes and other items - apart from business acquisitions - where temporary differences have arisen at the time of acquisition without affecting the profit for the year or the taxable income. 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, including the tax base of tax loss carry-forwards, 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. Deferred tax assets and liabilities are offset within the same legal tax entity. Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously. Loans, such as loans from credit institutions, are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period. 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. Gross margin Gross profit x 100 / Revenue Profit margin Profit/loss of primary operations x 100 / Revenue Adjusted profit margin 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. factoring debt Equity at year end x 100 / Total assets at year end excl. factoring debt Return on equity Net profit for the year x 100 / Average equity