26211425 2025-05-01 2026-04-30 26211425 2025-05-01 2026-04-30 2 26211425 2025-05-01 2026-04-30 memberOfBoardIdentifier_executive_board_1 26211425 2025-05-01 2026-04-30 memberOfBoardIdentifier_board_of_director_1 26211425 2025-05-01 2026-04-30 memberOfBoardIdentifier_board_of_director_2 26211425 2025-05-01 2026-04-30 memberOfBoardIdentifier_board_of_director_3 26211425 2025-05-01 2026-04-30 memberOfBoardIdentifier_board_of_director_4 26211425 2025-05-01 2026-04-30 memberOfBoardIdentifier_board_of_director_5 26211425 2025-05-01 2026-04-30 1 26211425 2023-05-01 2024-04-30 26211425 2022-05-01 2023-04-30 26211425 2021-05-01 2022-04-30 26211425 2024-04-30 26211425 2023-04-30 26211425 2022-04-30 26211425 2024-05-01 2025-04-30 26211425 2026-04-30 26211425 2025-04-30 26211425 2025-05-01 fsa:ContributedCapitalMember 26211425 2025-05-01 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 26211425 2025-05-01 fsa:ReserveForDevelopmentExpenditureMember 26211425 2025-05-01 fsa:ReserveForCurrentValueOfHedgingMember 26211425 2025-05-01 fsa:RetainedEarningsMember 26211425 2025-05-01 fsa:ProposedDividendRecognisedInEquityMember 26211425 2025-05-01 26211425 2025-05-01 2026-04-30 fsa:ContributedCapitalMember 26211425 2025-05-01 2026-04-30 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 26211425 2025-05-01 2026-04-30 fsa:ReserveForDevelopmentExpenditureMember 26211425 2025-05-01 2026-04-30 fsa:ReserveForCurrentValueOfHedgingMember 26211425 2025-05-01 2026-04-30 fsa:RetainedEarningsMember 26211425 2025-05-01 2026-04-30 fsa:ProposedDividendRecognisedInEquityMember 26211425 2026-04-30 fsa:ContributedCapitalMember 26211425 2026-04-30 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 26211425 2026-04-30 fsa:ReserveForDevelopmentExpenditureMember 26211425 2026-04-30 fsa:ReserveForCurrentValueOfHedgingMember 26211425 2026-04-30 fsa:RetainedEarningsMember 26211425 2026-04-30 fsa:ProposedDividendRecognisedInEquityMember 26211425 2024-05-01 26211425 2025-05-01 fsa:AcquiredLicencesMember 26211425 2025-05-01 fsa:DevelopmentProjectsInProgressMember 26211425 2025-05-01 2026-04-30 fsa:AcquiredLicencesMember 26211425 2025-05-01 2026-04-30 fsa:DevelopmentProjectsInProgressMember 26211425 2026-04-30 fsa:AcquiredLicencesMember 26211425 2026-04-30 fsa:DevelopmentProjectsInProgressMember 26211425 2025-05-01 fsa:PlantAndMachineryMember 26211425 2025-05-01 fsa:FixturesFittingsToolsAndEquipmentMember 26211425 2025-05-01 fsa:LeaseholdImprovementsMember 26211425 2025-05-01 fsa:PrepaymentsForPropertyPlantAndEquipmentMember 26211425 2025-05-01 2026-04-30 fsa:PlantAndMachineryMember 26211425 2025-05-01 2026-04-30 fsa:FixturesFittingsToolsAndEquipmentMember 26211425 2025-05-01 2026-04-30 fsa:LeaseholdImprovementsMember 26211425 2025-05-01 2026-04-30 fsa:PrepaymentsForPropertyPlantAndEquipmentMember 26211425 2026-04-30 fsa:PlantAndMachineryMember 26211425 2026-04-30 fsa:FixturesFittingsToolsAndEquipmentMember 26211425 2026-04-30 fsa:LeaseholdImprovementsMember 26211425 2026-04-30 fsa:PrepaymentsForPropertyPlantAndEquipmentMember 26211425 2025-05-01 fsa:InvestmentsInGroupEnterprisesMember 26211425 2024-05-01 fsa:InvestmentsInGroupEnterprisesMember 26211425 2026-04-30 fsa:InvestmentsInGroupEnterprisesMember 26211425 2025-04-30 fsa:InvestmentsInGroupEnterprisesMember 26211425 2025-05-01 2026-04-30 fsa:InvestmentsInGroupEnterprisesMember 26211425 2024-05-01 2025-04-30 fsa:InvestmentsInGroupEnterprisesMember 26211425 2025-05-01 2026-04-30 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 26211425 2026-04-30 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 26211425 2025-05-01 2026-04-30 relatedEntityIdentifier_sub_2 fsa:SubsidiaryMember 26211425 2026-04-30 relatedEntityIdentifier_sub_2 fsa:SubsidiaryMember iso4217:DKK pure xbrli:pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2025-05-01 2024-05-01 2026-04-30 2025-04-30 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning true 2026-06-25 Brian Dysted The Executive Board and Board of Directors have today considered and adopted the Annual Report of Westpack A/S for the financial year 1 May 2025 - 30 April 2026. 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 30 April 2026 of the Company and of the results of the Company operations and cash flows for 2025/26. 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. Holstebro 2026-06-25 Morten Dalsgaard Nielsen CEO Martin Stephan Welna Morten Dalsgaard Nielsen Morten Loft Sørensen Chairman Carsten Pingel Klaus Wätzold Madsen To the shareholder of Westpack A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 30 April 2026 and of the results of the Company’s operations and cash flows for the financial year 1 May 2025 - 30 April 2026 in accordance with the Danish Financial Statements Act.We have audited the Financial Statements of Westpack A/S for the financial year 1 May 2025 - 30 April 2026, 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.Plan and perform the audit to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the Financial Statements. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion.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. Holstebro 2026-06-25 PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab 33771231 Poul Spencer Poulsen Daniel Mogensen State Authorised Public Accountant State Authorised Public Accountant mne23324 mne45831 Westpack A/S Sletten 21 7500 Holstebro + 45 70 80 93 33 sales@westpack.com www.westpack.com 26211425 Holstebro Hjaltesvej 16 7500 Holstebro Seen over a 5-year period, the development of the Company is described by the following financial highlights:EBITDA65,83564,94855,56454,48963,853Cash flows from: 90590000 85539000 96652000 47697000 47314000 45315000 -2594000 -4154000 -1416000 35011000 33945000 31805000 143875000 150486000 165560000 7090000 1153000 3570000 9126000 3813000 84505000 95462000 61513000 46859000 50156000 41427000 -4020000 -9538000 -11554000 -45423000 -22604000 -30659000 -2584000 18014000 -786000 159 157 160 148 142 0.355 0.393 0.332 0.314 0.274 0.630 0.589 0.587 0.634 0.372 0.449 0.492 0.389 0.432 0.566 Key activitiesWestpack A/S develop, market and sell quality packaging and accessories for jewelry, watches and eyewear segments.Development in the yearThe income statement of the Company for 2025/26 shows a profit of TDKK 43,826, and at 30 April 2026 the balance sheet of the Company shows an equity of TDKK 107,430.In the year the Company realized a 7% growth in revenue, despite a continued low consumer confidence across markets and a noticeable negative impact on the lower USD currency rate. Further, the Company realized an improvement in gross profit driven by growth in revenue, efficiency measures and savings from sourcing activities, thus offsetting the negative impact on the lower USD currency rate. Net profit also shows improvement but is affected by the costs for the expansion and modernization of Headquarter.The past year and follow-up on development expectations from last yearProfits for the year shows improvement but did not fully meet the expectations outlined in the annual report for 2024/25, due to negative impact on the lower USD currency rate. In this context, the Company considers the profit for the year to be satisfactory.Foreign exchange risksIt is company policy to cover special risks relating to currency to the extent possible. Currency risks are covered via currency forwards. The Company is actively working to reduce currency risks, by entering into EUR-based purchase and sales agreements to the greatest extent possible.Targets and expectations for the year aheadFor the financial year 2026/27, the Company is expecting continued growth in no. of customers and no. of products sold, driven by its e-commerce platform. Overall revenue is expected to be at same or slightly higher level than current year, while earnings are expected to improve in the range of 1–5%. These expectations are based on an acknowledgement of the continued low consumer confidence across markets, while maintaining a strong focus on winning customers and improving profitability through customer value propositions, efficiency initiatives and investments in manufacturing technologies.External environmentDuring the year, the Company has invested on a current basis in reducing the environmental impact and has through these investments achieved minor energy consumption savings. The Company will keep its focus on this.Uncertainty relating to recognition and measurementThere has been no uncertainty regarding recognition and measurement in the Annual Report.Unusual eventsThe financial position at 30 April 2026 of the Company and the results of the activities and cash flows of the Company for the financial year for 2025/26 have not been affected by any unusual events.Subsequent eventsThe Company’s parent Company has entered into an agreement to acquire an international competing business. The acquisition is intended to strengthen the Group’s overall market position and complement the Company’s future revenue and earnings through market synergies. The transaction has been signed but is not yet closed, pending final closing conditions. 111457000 104580000 30414000 28102000 20524000 18091000 60519000 58387000 -202000 105000 245000 278000 4807000 4525000 55755000 54245000 11929000 11915000 43826000 42330000 1040000 715000 0 233000 1040000 948000 4918000 8923000 1530000 1557000 18000 26000 6307000 0 12773000 10506000 5194000 5218000 5194000 5218000 19007000 16672000 90037000 93725000 32085000 30034000 592000 368000 4366000 4596000 2512000 2637000 39555000 37635000 21825000 696000 151417000 132056000 170424000 148728000 1000000 1000000 4098000 4122000 0 182000 -18000 -780000 102350000 58140000 0 25000000 107430000 87664000 1288000 1668000 1288000 1668000 420000 5961000 6045000 5488000 21134000 19846000 13671000 6645000 20436000 21456000 61706000 59396000 61706000 59396000 170424000 148728000 1000000 4122000 182000 -780000 58140000 25000000 87664000 0 0 0 0 0 25000000 25000000 0 178000 0 0 0 0 178000 0 0 0 977000 0 0 977000 0 0 -182000 0 182000 0 0 0 0 0 215000 0 0 215000 0 -202000 0 0 44028000 0 43826000 1000000 4098000 0 -18000 102350000 0 107430000 43826000 42330000 22009000 22618000 3368000 -9428000 69203000 55520000 245000 278000 4835000 4480000 64613000 51318000 12294000 23181000 52319000 28137000 586000 480000 7089000 1121000 -7675000 -1601000 0 498000 7026000 2050000 25000000 38000000 -17974000 -36448000 26670000 -9912000 -5265000 4647000 21405000 -5265000 Cash and cash equivalents are specified as follows: 21825000 696000 -420000 -5961000 21405000 -5265000 The Company’s parent Company has entered into an agreement to acquire an international competing business. The acquisition is intended to strengthen the Group’s overall market position and complement the Company’s future revenue and earnings through market synergies. The transaction has been signed but is not yet closed, pending final closing conditions. 72700000 71058000 7450000 6633000 2475000 2143000 199000 149000 82824000 79983000 Wages and salaries etc. are recognised in the following items:Production expenses56,59055,574Distribution expenses16,37615,537Administrative expenses9,8588,87282,82479,983 3612000 3605000 159 157 12309000 11953000 -380000 -38000 11929000 11915000 0 15000000 0 25000000 -202000 105000 44028000 2225000 6264000 233000 586000 0 233000 -233000 7083000 0 5549000 0 494000 0 6043000 0 1040000 0 3 years 56053000 10467000 38000 0 0 783000 0 6307000 56053000 11250000 38000 6307000 47130000 8910000 12000 0 4005000 810000 8000 0 51135000 9720000 20000 0 4918000 1530000 18000 6307000 3-5 years3-5 years10 years 1096000 1096000 1096000 1096000 4122000 4346000 178000 -329000 -202000 105000 4098000 4122000 5194000 5218000 Investments in subsidiaries are specified as follows:HKD 1RMB 1.000.000 Westpack Limited Hong Kong 1.00 Westpack Trading Ltd Kina 1.00 9001000 9875000 1915000 2735000 77356000 80785000 1765000 330000 90037000 93725000 Prepayments consist of prepaid expenses concerning rent, insurance premiums and subscriptions. The share capital consists of 1,000,000 shares of a nominal value of TDKK 1,000. No shares carry any special rights. Deferred tax liabilities at 1 May1,6681,706Amounts recognised in the income statement for the year-380-38Deferred tax liabilities at 30 April1,2881,668 Derivative financial instruments contracts in the form of forward exchange contracts have been concluded. At the balance sheet date, the fair value of derivative financial instruments amounts to:Liabilities231,000Forward exchange contracts have been concluded to hedge future sale of goods in SEK and costs of sales in CNH. At the balance sheet date, the fair value of the forward exchange contracts amounts to TDKK -23. Sale of goods in SEK of TDKK 7,128 and costs of sales in CNH of TDKK 4,269 have been hedged. The forward exchange contracts have a maturity of 0 - 12 months.Forward exchange contracts977-23 245000 278000 4807000 4525000 5316000 6561000 -202000 105000 11929000 11915000 22009000 22618000 3688000 -11566000 -2150000 1798000 -853000 -1419000 977000 -1079000 3368000 -9428000 Charges and securityThe following assets have been placed as security with bankers:Mortgage deeds registered to the mortgagor totalling TDKK 2,000, providing security on property, plant and equipment at a total carrying amount of:6,47510,506 Rental and lease obligationsLease obligations under operating leases. Total future lease payments:Within 1 year490551Between 1 and 5 years8721,0501,3621,601Rental obligations, period of non-terminability 100 months (112 months)50,88455,168Rental obligations, period of non-terminability 186 months15,8710Guarantee obligationsOther contingent liabilitiesThe 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 Adelis Services II 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 obligationsThe Company has entered into mutually binding agreements regarding the purchase and delivery of production equipment. As of 30 April 2026, the remaining contractual commitment amounts to TDKK 18.500 which is expected to be settled within the next financial year. 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:Wonder HoldCo A/SHolstebroWonder BidCo A/SHolstebro The Annual Report of Westpack A/S for 2025/26 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 2025/26 are presented in TDKK. With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2025/26 of Wonder BidCo A/S, the Company has not prepared consolidated financial statements. 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.Recognition and measurement take into account predictable losses and risks occurring before the presentation of the Annual Report which confirm or invalidate affairs and conditions existing at the balance sheet date. 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. Translation policiesTransactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses 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.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 rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement.Fixed assets acquired in foreign currencies are measured at the transaction date rates. Derivative financial instruments are initially recognised in the balance sheet at cost and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as ”Other receivables” and ”Other payables”, respectively.Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial instrument is designated and qualify as hedge accounting. Hedge accountingChanges in the fair values of financial instruments that are designated and qualify as fair value hedges of a recognised asset or a recognised liability are recognised in the income statement as are any changes in the fair value of the hedged asset or the hedged liability related to the hedged risk.Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of expected future transactions are recognised in the fair value reserve under equity as regards the effective portion of the hedge. The ineffective portion is recognised in the income statement. If the hedged transaction results in an asset or a liability, the amount deferred in equity is transferred from equity and recognised in the cost of the asset or the liability, respectively. If the hedged transaction results in an income or an expense, the amount deferred in equity is transferred from equity to the income statement in the period in which the hedged transaction is recognised. The amount is recognised in the same item as the hedged transaction.Changes in the fair values of financial instruments that are designated and qualify as hedges of net investments in independent foreign subsidiaries or associates are recognised directly in equity as regards the effective portion of the hedge, whereas the ineffective portion is recognised in the income statement. 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.Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Production expensesProduction expenses comprise costs incurred to achieve revenue for the year. Cost comprises raw materials, consumables, direct labour costs and indirect production costs such as maintenance and depreciation, etc, as well as operation, administration and management of factories.Production expenses also include amortisation of goodwill to the extent that goodwill relates to production activities. Gross profitWith reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, production expenses and other operating income. Distribution expensesDistribution expenses comprise costs in the form of salaries to sales and distribution staff, advertising and marketing expenses as well as operation of motor vehicles, depreciation, etc. Administrative expensesAdministrative expenses comprise expenses for Management, administrative staff, office expenses, depreciation, etc. 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 intangible assets and property, plant and equipment. Income from investments in subsidiariesThe item “Income from investments in subsidiaries” in the income statement includes the proportionate share of the profit for the year. 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.Any changes in deferred tax due to changes to tax rates are recognised in the income statement.The Company is jointly taxed with Adelis Services II ApS. 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). Intangible fixed assetsPatents and licences are measured at the lower of cost less accumulated amortisation and recoverable amount. Patents are amortised over the remaining patent period, and licences are amortised over the licence period; however not exceeding 3 year.Development costs and costs relating to rights developed by the Company are recognised in the income statement as costs in the year of acquisition. 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:Plant and machinery3-5 years Other fixtures and fittings, tools and equipment3-5 years Leasehold improvements10 years Depreciation period and residual value are reassessed annually. Impairment of fixed assetsThe carrying amounts of intangible assets and 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 amortisation and depreciation.If so, the asset is written down to its lower recoverable amount. Investments in subsidiariesInvestments in subsidiaries are recognised and measured under the equity method.The item “Investments in subsidiaries” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises.The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries.Subsidiaries with a negative net asset value are recognised at DKK 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. 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 goods for resale, raw materials and consumables equals landed cost.The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct labour with addition of indirect production costs. Indirect production costs comprise the cost of indirect materials and labour as well as maintenance and depreciation of the machinery, factory buildings and equipment used in the manufacturing process as well as costs of factory administration and management. 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. Provisions for bad debts are determined on the basis of an individual assessment of each receivable, and in respect of trade receivables, a general provision is also made based on the Company’s experience from previous years. 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 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. Current tax receivables and liabilitiesCurrent 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. 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 ”Overdraft facilities”. Financial HighlightsExplanation of financial ratiosReturn on assetsProfit/loss of primary operations x 100 / Total assets at year endSolvency ratioEquity at year end x 100 / Total assets at year endReturn on equityNet profit for the year x 100 / Average equity