xbrli:pureiso4217:DKK133975972020-10-012021-09-30133975972020-10-012021-09-301133975972020-10-012021-09-301133975972020-10-012021-09-301133975972020-10-012021-09-302133975972020-10-012021-09-303133975972020-10-012021-09-304133975972020-10-012021-09-30133975972019-10-012020-09-30133975972020-10-012021-09-30fsa:RetainedEarningsMember133975972020-10-012021-09-30fsa:RetainedEarningsMember133975972019-10-012020-09-30fsa:RetainedEarningsMember133975972021-09-30133975972020-09-30133975972020-10-01133975972019-10-01133975972020-10-01fsa:ContributedCapitalMember133975972020-10-01fsa:RetainedEarningsMember133975972021-09-30fsa:ContributedCapitalMember133975972021-09-30fsa:RetainedEarningsMember133975972020-10-012021-09-301133975972020-10-012021-09-302133975972020-10-012021-09-303133975972019-10-012020-09-301133975972019-10-012020-09-302133975972019-10-012020-09-303133975972020-10-012021-09-30fsa:ShorttermPrepaymentsOfWorkInProgressMemberGrundlag for konklusionKonklusion2022-02-252022-02-25Regnskabsklasse C, mellemstor virksomhed2019-10-012020-09-3033963556København S23006WeidekampsgadeDeloitte Statsautoriseret RevisionspartnerselskabGlostrupGlostrup2600Revisionspåtegning2021-09-302020-10-013 sal<br /><br />21SydvestvejHumac A/S13397597339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Humac A/S for the financial year 01.10.2020 - 30.09.2021.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 30.09.2021 and of the results of its operations and cash flows for the financial year 01.10.2020 - 30.09.2021.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.GlostrupMichael BechPhilippe GensMichael BechTikhon SmykovDenis SitnikovChairmanTo the shareholder of Humac A/SWe have audited the financial statements of Humac A/S for the financial year 01.10.2020 - 30.09.2021, 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 30.09.2021 and of the results of its operations and cash flows for the financial year 01.10.2020 - 30.09.2021 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 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 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.CopenhagenFlemming Larsenmne27790State Authorised Public AccountantFinancial highlights2020/21 DKK'0002019/20 DKK'0002018/19 DKK'0002017/18 DKK'0002016/17 DKK'000Key figuresRevenue781,686682,923725,968729,443724,913Gross profit/loss71,02269,74064,43065,92271,620Operating profit/loss3,1272,287(920)1,2297,173Net financials(2,973)(3,025)(2,694)(2,880)(2,880)Profit/loss for the year480(738)(3,614)(1,515)3,114Total assets141,030116,203125,474128,662127,482Equity8,5998,1198,85412,46813,984Cash flows from (used in) operating activities(34,449)42,399(544)(5,169)(5,020)Cash flows from (used in) investing activities(6,351)(3,964)(3,803)(4,890)(5,790)Cash flows from (used in) financing activities40,472(38,505)4,410(676)11,037Average number of employees154151155152151RatiosGross margin (%)9.0910.218.889.049.88EBIT margin (%)0.400.33(0.13)0.170.99Net margin (%)0.06(0.11)(0.50)(0.21)0.43Return on equity (%)5.74(8.70)(33.90)(11.45)24.00Equity ratio (%)6.106.997.069.6910.97Financial 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 RevenueEBIT margin (%):Operating profit/loss * 100 RevenueNet margin (%) :Profit/loss for the year * 100 RevenueReturn on equity (%) :Profit/loss for the year * 100 Average equityEquity ratio (%) :Equity * 100 Total assetsPrimary activitiesThe Company's principal activity is sales of consumer electronics, IT equipment, system integration and other IT-related services. At the end of the financial year, the Company operated 23 monobrand stores, Apple and two online shops focusing on sales directly to private and business customers, a direct sales function focusing on all segments in the B2B area, as well as local authorized service sites for Apple products.Development in activities and financesThis is the Company's tenth year of operation under the ownership of the Inventive Retail Group. The lnventive Retail Group (IRG) was founded in Russia in 1995 and has collaborated with Apple since 1996. In recent years, the Group has invested heavily in retail chain set-up, following the same model as Humac. The Group's Management has extensive experience with retailing across markets and runs several monobrand retail concepts (a total of over 450 monobrand stores within several brands, including Apple, Xiaomi, Samsung, Nike, LEGO, Street Beat, and UNOde50). In 2020/21, Humac A/S continued the ongoing process of digitization and cost efficiency improvement, relocation, and expansion of the number of stores as well as optimization of sales and service channels. As of 30 September, the chain includes 23 stores and four service sites as well as B2B and two online shops. Since acquiring the Bang & Olufsen shop at Strøget in Copenhagen in March 2017, Humac has further developed its cooperation with Bang & Olufsen. In January 2021 Bang & Olufsen decided to terminate the monobrand contract with Humac. Bang & Olufsen wanted to operate the retail stores by themselves. As a consequence of, this Humac has terminated the sales and distribution of Bang & Olufsen in all channels. The termination has been done during Covid-19 lock down period according to the terms of Business transfer undertaking act. At the same time Humac has closed the web shop “SoundStore”. Humac has continued the digitization process and runs web shops with both cash sales and credit sales under Humac.dk and Rentefri.dk. Further Humac has released the “Humac App” on IOS platform to support our customer loyalty program. The App was released in May 2021. During Covid-19 periods and lock down periods Humac has seen a growing interest from consumers, SMB and Large Enterprises in purchasing Apple products for entertainment and work usage. Humac has expanded its market share in both the retail area and especially the SMB business segment during the period. Revenue has grown accordingly to the sales growth in the market despite a very constrained supply of inventory and products. Profit/loss for the year in relation to expected developmentsDuring the financial year 2020/21, the Company realized a profit of DKK 480 thousand. Equity at 30 September 2021 made up DKK 8,599 million. Management considers the results unsatisfactory. The combination of Covid-19 lock down effects and constrained supply of product in a booming market are factors that have significantly influenced results for the year. Accordingly, equity change from DKK 8,116 thousand at the beginning of the financial year to DKK 8,599 thousand at the end of the financial year. The Board of Directors has decided that for now the Company is not to pay any dividends to its investors and at the same time has assessed that at present, the Company is not to receive any additional capital. The current credit facilities are retained to ensure continued growth potential for the Company. Management expects improved profit development for the financial year 2021/22. The Management and the Board of Directors are aware of risk related to Covid-19 effects and the balance between investments and results to ensure the Company's strength and competitiveness in a challenged retail market. OutlookHumac will continue to reduce costs and optimize processes and systems, thus focusing on delivering the best customer experience, including additional use of IT systems to optimize operations and generate additional sales. Further growth in number of retail outlets and services attached to our sales channels will have priority in the coming financial year. The Company's Management expects the Company's current cash situation to be maintained and improved in 2021/22. However, a continued situation with Covid-19 impact and restrictions, further price competition from new / existing chains or lack of deliveries and/or delayed launch of new Apple products may adversely affect the Company's results in the coming year. It is Management's opinion that the implemented strategic and cost-effective initiatives will ensure growth in revenue and earnings for the coming year (2021/22). Events after the balance sheet dateNo events materially affecting the assessment of the annual report have occurred after the balance sheet date. 781686000682923000120340006707000693620000593982000290780002590800071022000697400006254700061509000534800059440003127000228700015300012400031260003149000154000-738000-3260000480000-738000480000480000-738000660001520005687000468600057530004838000371200031130001345000157300050570004686000102750001055800010275000105580002108500020082000723460005740600072346000574060002771100020132000110001100033800003054000158640001435100056400077000047530000383180006900039700039700046700011994500096121000141030000116203000310200031020005497000501700085990008119000310200050170008119000310200054970004062300015100029760002512000527170005198000071940005942000289210004749900013243100010808400013243100010808400014103000011620300053480005943000Change in inventoriesChange in receivablesChange in payables-149400006459000-8886000763000-1737700029210000-3272800044662000153000124000-1874000-2387000-3444900042399000-3865000-1539000-3460000-21590006910000-1438000-26600017210000-6351000-3964000-40800000384350004047200000-3850500040472000-38505000-328000-70000690003970001 Events after the balance sheet dateNo events materially affecting the assessment of the annual report have occurred after the balance sheet date. 2 Other operating incomeThe other operating income includes government grants awarded in connection with Covid-19.3 Staff costs2020/21 DKK'0002019/20 DKK'000Wages and salaries58,56157,653Pension costs3,1193,108Other social security costs86774862,54761,509Average number of full-time employees154151According to section 98 B(3) of the Danish Financial Statements Act, remuneration to the Executive Board has not been disclosed. No remuneration has been paid to the Board of Directors.1541514 Depreciation, amortisation and impairment losses2020/21 DKK'0002019/20 DKK'000Amortisation of intangible assets2,9502,377Depreciation of property, plant and equipment2,3983,5675,3485,9445 Other financial income2020/21 DKK'0002019/20 DKK'000Other interest income11448Exchange rate adjustments39761531246 Other financial expenses2020/21 DKK'0002019/20 DKK'000Financial expenses from group enterprises1,415759Other interest expenses1,6632,371Exchange rate adjustments48193,1263,149<br />2020/21 DKK'0002019/20 DKK'000Financial expenses from group enterprises1,415759Other interest expenses1,6632,371Exchange rate adjustments48193,1263,1497 Tax on profit/loss for the year2020/21 DKK'0002019/20 DKK'000Change in deferred tax(326)0(326)08 Proposed distribution of profit and loss2020/21 DKK'0002019/20 DKK'000Retained earnings 480(738) 480(738)9 Intangible assetsAcquired intangible assets DKK'000Acquired licences DKK'000Cost beginning of year3,42218,318Additions03,865Disposals(183)0Cost end of year3,23922,183Amortisation and impairment losses beginning of year(3,270)(13,632)Amortisation for the year(86)(2,864)Reversal regarding disposals1830Amortisation and impairment losses end of year(3,173)(16,496)Carrying amount end of year665,68710 Property, plant and equipmentOther fixtures and fittings, tools and equipment DKK'000Leasehold improvements DKK'000Cost beginning of year22,38327,987Additions2,464996Disposals(1,404)(2,037)Cost end of year23,44326,946Depreciation and impairment losses beginning of year(19,270)(26,414)Depreciation for the year(1,584)(814)Reversal regarding disposals1,1231,627Depreciation and impairment losses end of year(19,731)(25,601)Carrying amount end of year3,7121,34511 Financial assetsDeposits DKK'000Cost beginning of year10,558Additions1,438Disposals(1,721)Cost end of year10,275Carrying amount end of year10,275<br />Deposits DKK'000Cost beginning of year10,558Additions1,438Disposals(1,721)Cost end of year10,275Carrying amount end of year10,27512 Deferred tax Changes during the year2020/21 DKK'0002019/20 DKK'000Beginning of year3,0543,054Recognised in the income statement326Indtast beløbEnd of year3,3803,054The company's deferred tax asset in total amounts to DKK 3,054 thousand, of which nil is attributable to the value of tax loss carryforwards. ​ ​Management has found it fair to recognise the tax asset of an amount of DKK 3,054 thousand as it is expected to be utilised within the next 3-5 years according to the Company's budgets and projections.13 PrepaymentsPrepayments comprise prepaid expenses regarding rent and insurance.14 Share capitalNumberShare capital3,1023,10215 Prepayments received from customersPrepayments received from customers consists of deposit and payment related to gift card.16 Contingent liabilitiesThe company has rental obligations liabilities at a total amount of DKK 52.945 thousand (2020: DKK 26.277 thousand), DKK 22.536. thousand is due within 1 year and DKK 0 thousand is due after 5 years. The company has other operating liabilities at a total amount of DKK 568 thousand (2020: DKK 434 thousand), DKK 319 thousand (2020: DKK 380 thousand) is due within 1 year and DKK 0 thousand (2020: DKK 54 thousand) is due after 5 years.17 Assets charged and collateralCredit facility of DKK 10 million is secured by company pledge in intangible assets, property, plant and equipment, inventories and trade receivables for one supplier. Credit facility of DKK 10 million is secured by company pledge in intangible assets, property, plant and equipment, and inventories for bank facility. Through external bank there has been issued a letter of credit to one supplier with total credit facility of DKK 34 million.18 Related parties with controlling interestHumac A/S related parties comprise the following: Control: ReStore Retail Group Limited (Kennedy Avenue 12, Kennedy Business Centre, 5th Floor, Office 504, P.C. 1087, Nicosia, Cyprus) holds the majority of the contributed capital in the company. Humac A/S is part of the consolidated financial statements of ReStore Retail Group Limited (Kennedy Avenue 12, Kennedy Business Centre, 5th Floor, Office 504, P.C. 1087, Nicosia, Cyprus), which is the smallest and largest group, in which the company is included as a subsidiary. The consolidated financial statements of ReStore Retail Group Limited can be obtained by contacting the company at the address above. Related party transactions: Intercompany balance to group company are disclosed in the balance sheet, and expensed interest is disclosed in note 4. Ownership: The following shareholders are registered in the company's register of shareholders as holding a minimum of 5% of the votes or a minimum of 5% of the contributed capital: ReStore Retail Group Limited, Kennedy Avenue 12, Kennedy Business Centre, 5th Floor, Office 504, P.C. 1087, ​Nicosia, Cyprus.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.falseRecognition 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.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.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary activities.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, and social security contributions, pension contributions, etc for entity staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and losses from the sale of intangible assets and property, plant and equipment.Other financial incomeOther financial income comprises dividends etc received on other investments, interest income, including interest income on receivables from group enterprises, net capital or exchange gains on securities, payables and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies, amortisation of financial liabilities, and 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.Intangible assetsIntangible assets comprise acquired intangible assets and acquired licenses.Intangible assets acquired are measured at cost less accumulated amortisation. Acquired intangible assets are amortised on a straight-line basis over their remaining duration, and licences are amortised over the term of the agreement.Intangible assets are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentLeasehold improvements and other fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses. 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. The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation is made on the basis of the following estimated useful lives of the assets:Other fixtures and fittings, tools and equipment3-5 yearsLeasehold improvements3-7 yearsEstimated 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.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value. Cost consists of purchase price plus delivery costs. 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.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based value of assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset. However, no deferred tax is recognised for amortisation of goodwill disallowed for tax purposes and temporary differences arising at the date of acquisition that do not result from a business combination and that do not have any effect on profit or loss or on taxable income. Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.CashCash comprises cash in hand and bank deposits.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, and 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 financial income, financial expenses and income tax paid. Cash flows from investing activities comprise payments in connection with acquisition and divestment of enterprises, activities and fixed asset investments, and purchase, development, improvement and sale, etc of intangible assets and property, plant and equipment. Cash flows from financing activities comprise changes in the size or composition of the contributed capital and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, 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, and 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 financial income, financial expenses and income tax paid. Cash flows from investing activities comprise payments in connection with acquisition and divestment of enterprises, activities and fixed asset investments, and purchase, development, improvement and sale, etc of intangible assets and property, plant and equipment. Cash flows from financing activities comprise changes in the size or composition of the contributed capital and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, 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.2022-02-25Michael Bech