19226980 2025-01-01 2025-12-31 19226980 2025-01-01 2025-12-31 2 19226980 2025-01-01 2025-12-31 memberOfBoardIdentifier_executive_board_1 19226980 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_1 19226980 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_2 19226980 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_3 19226980 2025-01-01 2025-12-31 1 19226980 2023-01-01 2023-12-31 19226980 2022-01-01 2022-12-31 19226980 2021-01-01 2021-12-31 19226980 2023-12-31 19226980 2022-12-31 19226980 2021-12-31 19226980 2024-01-01 2024-12-31 19226980 2025-01-01 2025-12-31 1 19226980 2024-01-01 2024-12-31 1 19226980 2023-01-01 2023-12-31 1 19226980 2022-01-01 2022-12-31 1 19226980 2021-01-01 2021-12-31 1 19226980 2025-01-01 2025-12-31 2 19226980 2024-01-01 2024-12-31 2 19226980 2023-01-01 2023-12-31 2 19226980 2022-01-01 2022-12-31 2 19226980 2021-01-01 2021-12-31 2 19226980 2025-12-31 19226980 2024-12-31 19226980 2025-01-01 fsa:ContributedCapitalMember 19226980 2025-01-01 fsa:RetainedEarningsMember 19226980 2025-01-01 fsa:ProposedDividendRecognisedInEquityMember 19226980 2025-01-01 19226980 2025-01-01 2025-12-31 fsa:ContributedCapitalMember 19226980 2025-01-01 2025-12-31 fsa:RetainedEarningsMember 19226980 2025-01-01 2025-12-31 fsa:ProposedDividendRecognisedInEquityMember 19226980 2025-12-31 fsa:ContributedCapitalMember 19226980 2025-12-31 fsa:RetainedEarningsMember 19226980 2025-12-31 fsa:ProposedDividendRecognisedInEquityMember 19226980 2024-01-01 19226980 2025-01-01 2025-12-31 fsa:ManagementMember 19226980 2024-01-01 2024-12-31 fsa:ManagementMember 19226980 2025-01-01 2025-12-31 fsa:BoardOfDirectorsMember 19226980 2024-01-01 2024-12-31 fsa:BoardOfDirectorsMember 19226980 2025-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 19226980 2025-01-01 fsa:LeaseholdImprovementsMember 19226980 2025-01-01 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 19226980 2025-01-01 2025-12-31 fsa:LeaseholdImprovementsMember 19226980 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 19226980 2025-12-31 fsa:LeaseholdImprovementsMember 19226980 2025-01-01 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 19226980 2025-01-01 2025-12-31 fsa:LeaseholdImprovementsMember 19226980 2025-01-01 fsa:OtherReceivablesMember 19226980 2025-01-01 2025-12-31 fsa:OtherReceivablesMember 19226980 2025-12-31 fsa:OtherReceivablesMember 19226980 2025-12-31 fsa:LongtermLeaseCommitmentsMember 19226980 2024-12-31 fsa:LongtermLeaseCommitmentsMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2025-01-01 2024-01-01 2025-12-31 2024-12-31 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning true 2026-06-30 Jesper Nørholt The Executive Board and Board of Directors have today considered and adopted the Annual Report of MALMOS A/S for the financial year 1 January - 31 December 2025. 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 2025 of the Company and of the results of the Company operations and cash flows for 2025. 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. Roskilde 2026-06-30 Rasmus Karkov CEO Morten D. Hansen Carsten Ullits Olesen Marc Gullhem Venier Chairman To the shareholder of MALMOS A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 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.We have audited the Financial Statements of MALMOS A/S for the financial year 1 January - 31 December 2025, which comprise income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for 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. 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. Ringsted 2026-06-30 PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab 33771231 Per Larsen Kenneth Østergaard State Authorised Public Accountant State Authorised Public Accountant mne27778 mne47262 MALMOS A/S Gammel Marbjergvej 11 4000 Roskilde 19226980 Roskilde Eventyrvej 16 4100 Ringsted Nykredit Under Krystallen 1 1780 København V Seen over a 5-year period, the development of the Company is described by the following financial highlights:Profit/loss of ordinary primary operations7,94917,26112,82215,63315,803Profit/loss before non-recurring costs and financial income and expenses21,60526,49819,32723,61522,489Profit/loss before financial income and expenses14,18119,89814,64717,86921,388Cash flows from: 257165000 228893000 212646000 82935000 79516000 79501000 -1810000 -404000 -1390000 10000000 13613000 15590000 128876000 123480000 127766000 19147000 17406000 12508000 10802000 7224000 28315000 30815000 33202000 12997000 21156000 16547000 -10852000 -7705000 -4609000 -15262000 -13441000 -3385000 -13117000 844000 8553000 127 111 107 98 96 0.280 0.309 0.322 0.347 0.374 Profit margin before non-recurring costs 0.059 0.083 0.075 0.103 0.106 0.039 0.063 0.057 0.078 0.101 0.081 0.128 0.114 0.145 0.167 0.218 0.230 0.220 0.250 0.260 Solvency ratio excl. net debt to factor 0.284 0.335 0.290 0.318 0.331 0.290 0.479 0.338 0.425 0.513 Key activitiesMalmos solves small and medium-sized tasks as well as some of the country's largest landscape projects together with professional developers, consultants and partners – and contributes to value creation from the very early idea and development phases to implementation, delivery and documentation. Malmos has the muscle of a contractor and the heart of a landscaper.We are passionate and driven by market innovation, and our dream and vision is to set the tone for the landscapes of the future. In new forms of collaboration, with new (digital) tools and with reuse and recycling in mind.We provide nature-based solutions that help equip our society for the future and improve people's well-being. We see nature as our partner – whether it's in cities, on land, in the ground or along coasts.The company's activities thus comprise landscape construction and nature-based solutions, primarily through early involvement, in partnerships and by entering into construction contracts as well as in the case of individual billing.Development during the year and follow-up on last year's expectationsWe achieved revenue growth of 16% in 2025, corresponding to DKK 50 million. Total revenue for the year of DKK 368 million was higher than our expectations, but at the same time reflects the strategic ambition to be the leading landscape provider in the industry.The project mix looked different in 2025 than the previous year. Whereas in 2024 we had a predominance of green projects, we carried out a broader palette of project types in 2025. Several projects within road restoration, sewerage and climate protection contributed to our top-line growth in the year.The operating profit margin before non-operating items landed at 5.9%, which was at the low end of our guidance for 2025 with a range of 6-8%. The increased additional turnover did not lead to major fluctuations in the company's fixed costs. We managed 2025 well to the finish line despite a few project challenges along the way, which is why the management is satisfied with the year.The strategy and the way forwardIn 2025, there has continued to be a focus on compliance with the strategy, values and focus areas that have been continuously developed and have always characterized Malmos: Among other things, the vision of setting the tone for the landscapes of the future through high professionalism and quality in climate protection, biodiversity and landscapes as a whole.In 2025, the work to identify and cultivate synergies in relation to idverde has intensified. For the same reason, the tagline, "en del af idverde", has been added to the Malmos logo, emphasizing that Malmos is starting to draw more on competencies from idverde companies in five other European countries. For example, in relation to the relocation of large trees as well as climate and coastal protection, but also in relation to synergies across marketing, HR and other functions.The plan for future growth and development will thus take place in a mix of classic Malmos virtues and competencies with added strength and new opportunities via the idverde base.A responsible company that sets the tone for the landscapes of the futureThe environment, including climate and sustainability, has been a top priority for Malmos for years and is part of our DNA. We have deliberately chosen to include sustainability, climate and the environment in our corporate mission and consider it necessary to be the preferred partner throughout the value chain.Year by year, more resources are being added in relation to strengthening our efforts on ESG and sustainability. Partly to meet the legislation's stricter reporting requirements; but in particular to be able to provide our customers with the best advice and service from idea to delivery of our projects regarding opportunities to reuse and recycle materials, reduce CO2 emissions, ensure a good working environment and contribute to a healthy social development with internships and apprenticeships, jobactivation offers and much more.Malmos' CSR work has always been driven with the heart – but today, and in the future, also supported by more formalized valuation systems and certifications, e.g. B-Corp. This combination of heart and systematics helps to ensure a healthy and continuous development and allocation of resources in many different focus areas, so that we go 360 degrees around all areas of the ESG wheel (the technical/physical, the social and the cultural efforts).Development of labour – development of peopleAt Malmos, we take on social responsibility. This applies to both our current employees, future employees and others in the society we are a part of.At Malmos, we see the professional and personal development of our employees as a cornerstone of running our business. We have a systematic approach to training our employees, with a focus on our hourly paid employees, our salaried employees and our managers.We at Malmos have a clear goal whereas background and social challenges should not be an obstacle at work. Social sustainability and responsibility are thus a goal for Malmos. We will continue to work to improve our approach and ensure that our employees have the resources and support they need to succeed both in the workplace and in life in general.Malmos is a workplace where there is room for people who cannot fit in a full-time job or a job under normal conditions. The individual employee's background and social conditions are not an obstacle for a good working life in Malmos.Training of future skilled workers is part of the core of Malmos' DNA. We educate the green craftsmen of the future through the vocational training programme or under the auspices of AMU, a Danish organisation offering labour market courses. An important part of this is Malmos' apprentice academy, where we make a special effort to improve the skills of future landscape gardeners and landscape designers.Our commitment to education goes beyond vocational training. Recurring in 2025, we had interns and students from higher education who took part of their education at Malmos. For example, we had leisure jobs for young people in socially disadvantaged residential areas, cooperation and teaching with vocational schools, higher education institutions, etc.We work actively with all age groups and focus on ensuring that Malmos is a company that is geared for the future.Malmos – Safety FirstNot a year goes by without a focus on work environment and safety in Malmos. Due to a constant focus on communicating and sharing knowledge throughout the organization, we can see a continued positive development. Only by everyone being able to see their contribution to the good work environment can we improve and achieve our goal. That is why we have worked to make our work environment policy, roles and responsibilities completely clear and ready for the reality we are part of. Our main messages are:-All major start-ups, gatherings and meetings start with safety as the first item on the agenda -We want our employees to arrive at work safely and return home safe and happy-We have a strong focus on security measures that provide value and effect-We must have 0 serious accidents and at least less than 15 LTIFThe constant focus and development of our work with occupational health and safety have meant that we continue to follow the downward trend in the number of accidents.During Safety Week 2025, we focused on safety on our construction sites, in addition to information from employees about what safety means to them, including the following:-Pattern rounds on all construction sites in collaboration with our occupational health and safety representative and site managers.-We increased our focus on visible safety data sheets when handling chemicals -Check of first aid kits and fire extinguishers2026 will be used to provide information about the use of risk assessments on construction sites, a first aid course for everyone and a pattern round on all sites again.Risk managementAt Malmos we take a proactive approach to risk management in order to ensure future growth for our business and secure our employees, values, assets and reputation. This work is performed partly by the Board of Directors and partly by day-to-day management, who actively monitor our risk management on a current basis and assess any changes and new risks. We want to act responsibly and thus have a risk policy that identifies risks, monitors them and addresses the risks that can be minimised.Research and developmentResearch and development activities are primarily centered around – but not limited to – biodiversity, vertical green walls, new forms of collaboration/framework conditions (partnerships) as well as new trends in relation to green tripartite etc., where we work through various collaborations and activities to increase knowledge and opportunities, in order to boost the depth and breadth of animal species, plant life and thus the planet's entire ecosystem, as well as to protect against climate challenges.Last year, we decided to prioritise innovation and development as one of four key elements of our strategic plan. We want innovation and development to play directly into our dream of setting the tone for the landscapes of the future. The goal has been to create a systematic breeding ground for identifying and maturing ideas and suggestions for improvement in our company – and in the landscape industry in general. This created Malmos LAB, which will create the framework for innovation.At Malmos LAB, which acts as our incubator for the future, we create the Malmos of the future. We honour all good ideas and ensure active stance and possible further development of all inventions, good thoughts, future products, new working methods, etc.In 2026, the ambition is to create even greater integration from idverde in our innovation and LAB work.Our outlook for the year 2026We left 2025 with top-line growth and a satisfactory bottom line. In 2026, we expect continued revenue growth in the range of 5-10%, which builds on the strategic goals and efforts that have been made for the coming years. The operating profit margin before non-operating items is expected to land in the upper limit of the industry level between 5-7%.Uncertainty relating to recognition and measurementThere has been no uncertainty regarding recognition and measurement in the Annual Report.Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 367869000 317666000 6232000 2637000 237975000 192797000 33110000 29290000 103016000 98216000 79863000 70642000 8972000 7676000 14181000 19898000 3590000 3441000 3966000 3436000 13805000 19903000 3057000 4574000 10748000 15329000 41545000 35380000 2608000 533000 44153000 35913000 1043000 902000 1043000 902000 45196000 36815000 25000 25000 25000 25000 48019000 38411000 8579000 4559000 73794000 74876000 11000 3000 146000 107000 130549000 117956000 60000 60000 130634000 118041000 175830000 154856000 1000000 1000000 29392000 26644000 8000000 8000000 38392000 35644000 15257000 14054000 15257000 14054000 13653000 12050000 13653000 12050000 40115000 35380000 7319000 5309000 36236000 24390000 4919000 5971000 10135000 9965000 1854000 3589000 7950000 8504000 108528000 93108000 122181000 105158000 175830000 154856000 1000000 26644000 8000000 35644000 0 0 8000000 8000000 0 2748000 8000000 10748000 1000000 29392000 8000000 38392000 10748000 15329000 11439000 10719000 -3434000 -4542000 18753000 21506000 3590000 3441000 3966000 3436000 18377000 21511000 3589000 531000 14788000 20980000 19147000 17406000 141000 362000 2900000 11216000 -16388000 -6552000 0 3302000 6474000 5752000 0 15875000 4735000 4107000 10087000 12890000 1528000 0 8000000 8000000 1876000 -15932000 276000 -1504000 20562000 22066000 20838000 20562000 Cash and cash equivalents are specified as follows: 60000 60000 20778000 20502000 20838000 20562000 67131000 59512000 11219000 9764000 1238000 1091000 275000 275000 79863000 70642000 Including remuneration to the Executive Board and Board of Directors:Part of the remuneration to the Executive board and the Board of Directors is invoiced to the Company as part of a Management fee, which is included as a cost in " Other external expenses" in the Income Statement. 3210000 4890000 761000 570000 3971000 5460000 127 111 8972000 7676000 8972000 7676000 3555000 3003000 35000 438000 3590000 3441000 1854000 3589000 1203000 822000 0 531000 0 -368000 3057000 4574000 8000000 8000000 2748000 7329000 62887000 2074000 16937000 2210000 6669000 0 73155000 4284000 27507000 1541000 8837000 135000 -4734000 0 31610000 1676000 41545000 2608000 3-8 years7 years 26137000 0 902000 141000 1043000 1043000 Selling price of work in progress374,330404,537Payments received on account-370,670-405,9493,660-1,412Recognised in the balance sheet as follows:Contract work in progress recognised in assets8,5794,559Prepayments received recognised in debt-4,919-5,9713,660-1,412 Intercompany cash pool balance20,77820,502Other receivables53,01654,37473,79474,876The intercompany cash pool balance is available for the Company's disposal equal to cash. Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Deferred tax liabilities at 1 January14,05413,600Amounts recognised in the income statement for the year1,203454Deferred tax liabilities at 31 December15,25714,054Property, plant and equipment1,3831,682Trade receivables-33-33Contract work in progress13,90712,40515,25714,054 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 obligations20,97217,359 0 0 13653000 12050000 13653000 12050000 7319000 5309000 3590000 3441000 3966000 3436000 8006000 6150000 3057000 4574000 11439000 10719000 -13675000 -1737000 -10241000 2805000 -3434000 -4542000 Rental and lease obligationsLease obligations under operating leases. Total future lease payments:Within 1 year211111Between 1 and 5 years45183662194Rent obligations, period of non-terminability 2-10 years21,29223,808Other contingent liabilitiesThe Company has provided an unlimited suretyship towards danish group companies engagement with banks.The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable is disclosed in the Annual Report of Armorica Danmark ApS, which is the management company of the joint taxation purposes. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company’s liability.Other financial obligationsAs a part of normal business, the Company has entered into agreements with subcontractors with a total obligation of TDKK 113,663. The agreements are related to normal ongoing and agreed revenue contracts. Of the total obligation, TDKK 78,517 is agreed with intercompany subcontractors. TransactionsThe Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(6) of the Danish Financial Statements Act. Consolidated Financial StatementsThe Company is included in the Group Annual Report of the Parent Company of the largest and smallest group:Armorica Danmark ApS, CVR-nr. 40 89 54 93Roskilde No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. The Annual Report of MALMOS A/S for 2025 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C.The accounting policies applied remain unchanged from last year.The Financial Statements for 2025 are presented in TDKK. Recognition and measurementRevenues 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. RevenueRevenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company.Contract work in progress (construction contracts) is recognised at the rate of completion, which means that revenue equals the selling price of the work completed for the year (percentage-ofcompletion method). This method is applied when total revenues and expenses in respect of the contract and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined on the basis of the ratio between the expenses incurred and the total expected expenses of the contract.Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Expenses for raw materials and consumablesExpenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year. Other external expensesOther external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc. Staff expenses comprise wages and salaries as well as payroll expenses. Amortisation, depreciation and impairment lossesAmortisation, depreciation and impairment losses comprise depreciation and impairment of property, plant and equipment. Other operating income and expensesOther operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company, including gains and losses on the sale of property, plant and equipment. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax on profit/loss for the yearTax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.The Company is jointly taxed with danish group companies. The tax effect of the joint taxation with the subsidiaries is allocated to Danish enterprises showing profits or losses in proportion to their taxable incomes (full allocation with credit for tax losses). Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses.Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:Production buildings50 years Other fixtures and fittings, tools and equipment3-8 years Leasehold improvements7 years Depreciation period and residual value are reassessed annually. Impairment of fixed assetsThe 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.If so, the asset is written down to its lower recoverable amount. Fixed asset investments consist of depositories. InventoriesInventories 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 progressContract 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. PrepaymentsPrepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. DividendDividend distribution proposed by Management for the year is disclosed as a separate Dividend item. Deferred tax assets and liabilitiesDeferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.Deferred tax assets are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity.Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax receivables and liabilitiesCurrent tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the onaccount taxation scheme are recognised in the income statement in financial income and expenses. Mortgage loans are measured at amortised cost, which for cash loans corresponds to the remaining loan. Amortised cost of debenture loans corresponds to the remaining loan calculated as the underlying cash value of the loan at the date of raising the loan adjusted for depreciation of the price adjustment of the loan made over the term of the loan at the date of raising the loan.Other debts are measured at amortised cost, substantially corresponding to nominal value. The cash flow statement shows the Company’s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Company’s cash and cash equivalents at the beginning and end of the year.Cash flows from operating activitiesCash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents.Cash flows from investing activitiesCash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and equipment as well as fixed asset investments.Cash flows from financing activitiesCash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders.Cash and cash equivalentsThe cash flow statement cannot be immediately derived from the published financial records. Cash and cash equivalents comprise ”Cash at bank and in hand” and balances available on the Company's sub-account on intercompany cash pool. Financial HighlightsExplanation of financial ratiosGross marginGross profit x 100 / RevenueProfit margin before non-recurring costsProfit/loss before non-recurring costs x 100 / RevenueProfit marginProfit/loss of primary operations x 100 / RevenueReturn on assetsProfit/loss of primary operations x 100 / Total assets at year endSolvency ratioEquity at year end x 100 / Total assets at year endSolvency ratio excl. net debt to factorEquity at year end x 100 / (Total assets at year end - net debt to factor)Return on equityNet profit for the year x 100 / Average equity