Page | 0 ANNUAL REPORT 2021/22
CVR 10239680
ANNUAL REPORT 2021/22 Page | 1
addition to developing and producing processors for the Offset and Flexo printing industries, we also offer R&D services
plus a full-range of spare- and wear parts. Further our product portfolio includes exposure units, dryers, light finishers,
mounting tables, plate stackers and software for monitoring and controlling the complete prepress process.
Glunz & Jensen has been operating in prepress for more than 45 years. We have long-standing relations with major players
such as Agfa, Asahi, DuPont, Flint, FujiFilm, Heidelberg, Kodak and MacDermid. We market our products directly to key
customers as well as through a comprehensive and worldwide network of distributors and dealers. We have approx. 100
employees in our facilities in Denmark, Slovakia, and the USA.
We strive to be the most innovative high-end equipment and services provider, delivering outstanding value for money in
our product areas, and thereby growing our market share with our global partners. Further we aim to strengthen our
earnings through improved profitability and optimization of manufacturing and supply chain.
Segment Prepress consist of two product areas described below:
OFFSET
FLEXO
Products
Primary applications
Share of revenue
Main sales channels
Markets
Main market drivers
CtP and iCtP processors which prepare
Offset plates for Offset printing as well
as after sales service
Media industry – production of
newspapers, magazines, books, etc.
Approx. 51% of Prepress
Through large customers as Agfa, Fuji,
Heidelberg, Kodak, and Cron as well as
larger dealers
Global
Develop and supply new, innovative
products and solutions in close
cooperation with customers as well as
ongoing consolidation to maintain
critical mass. There has been and will
be migration to digital platform-based
solutions
Flexographic (Thermal and Solvent)
equipment which process and handle
plates for Flexo printing as well as after
sales service
Packaging industry
Approx. 49% of Prepress
Through large customers as Asahi,
DuPont, Flint, Kodak and MacDermid
as well as larger dealers
Global
Improve technological solutions and
automation of prepress production
processes in close cooperation with
customers. There will be focus on
developing environmentally friendly
solutions which reduces resource
consumption and wastewater
Besides from the main segment Prepress Glunz & Jensen reports and operates within the segment investment
property, Selandia Park.
Page | 2 ANNUAL REPORT 2021/22
TABLE OF CONTENTS
MANAGEMENT'S REVIEW
HEADLINES FOR 2021/22 ............................................................................................................................................ 3
GLUNZ & JENSEN HOLDING A/S LOCATIONS ............................................................................................................... 5
FINANCIAL HIGHLIGHTS .............................................................................................................................................. 6
BUSINESS AND FINANCIAL REVIEW............................................................................................................................. 7
OPTIMISATION OF THE VALUE CHAIN ......................................................................................................................... 8
OUTLOOK ................................................................................................................................................................... 8
FINANCIAL STATEMENTS ............................................................................................................................................ 9
RISK FACTORS ............................................................................................................................................................13
REPORTING ON MANAGEMENT .................................................................................................................................15
STATEMENT ON CORPORATE SOCIAL RESPONSIBILTY AND GENDER DIVERSITY ........................................................19
SHAREHOLDER FACTS ................................................................................................................................................21
BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT ............................................................................................23
GROUP COMPANIES ..................................................................................................................................................25
STATEMENT BY THE BOARD OF DIRECTORS AND THE EXECUTIVE MANAGEMENT AND
THE INDEPENDENT AUDITOR'S REPORT
MANAGEMENT'S REVIEW ..........................................................................................................................................26
INDEPENDENT AUDITOR'S REPORT ............................................................................................................................27
CONSOLIDATED AND PARENT COMPANY FINANCIAL STATEMENTS
INCOME STATEMENT .................................................................................................................................................31
STATEMENT OF COMPREHENSIVE INCOME ...............................................................................................................31
BALANCE SHEET .........................................................................................................................................................32
STATEMENT OF CHANGES IN EQUITY .........................................................................................................................34
STATEMENT OF CASH FLOWS ....................................................................................................................................36
NOTES .......................................................................................................................................................................37
DEFINITIONS OF RATIOS ............................................................................................................................................62
The consolidated financial statements are presented in compliance with International Financial Reporting Standards (IFRS) as
adopted by the EU and additional requirements in the Danish Financial Statements Act. The registered office of Glunz & Jensen
Holding A/S is in Denmark. References to the future in the annual report reflect Management's current expectations as to future
events and financial results. References to the future are associated with uncertainty, and the results achieved may therefore
deviate from the expectations stated in the annual report. Circumstances which may imply that results achieved differ from
expectations are, e.g., developments in the business cycle and financial markets, including economic developments in the world,
wars, pandemics (Covid-19), changes in laws and regulations affecting Glunz and Jensen Holding A/S' business areas and
markets, trends in demand for products, competitive and supplier relationships, and energy and commodity prices. See also the
sections on risk factors in the annual report.
ANNUAL REPORT 2021/22 Page | 3
HEADLINES FOR 2021/22
• The financial year in 2021/22 is from April 1
st
, 2021, to March 31
st
, 2022.
• Revenue in Glunz & Jensen Holding A/S came to DKK 147,0 million in 2021/22 vs. DKK 136,9 million in 2020/21, equal
to a 7,4% increase in revenue. Offset revenue increased 8,1% (2020/21: declined 37,5%), while Flexo revenue
increased 9,4% (2020/21: declined 26,2%) both Offset and Flexo product areas developed very satisfactorily. The
revenue is in line with our expectations announced to the market on February 23
rd
, 2022, as revenue then was
communicated at the DKK 145 million level.
• Gross profit totaled DKK 39,1 million (2020/21: DKK 28,4 million), equal to an improved gross profit margin of 26,6%
(2020/21: 20,7%).
• Profit before financial income and expenses, tax, depreciation, amortization, and impairment of assets, – the EBITDA,
was DKK 23,9 million (2020/21: DKK 19,6 million). The EBITDA is in line with our expectations announced to the market
on February 23
rd
, 2022, as it was then communicated at the DKK 24 million level.
• During 2021/22 Glunz & Jensen finalized the transfer of the assembly and manufacturing activities from Nyborg,
Denmark to Presov, Slovakia in order to consolidate the activities and thereby improve productivity and on-time
deliveries. As a result of the transfer to Presov, Slovakia the leased HQ property in Nyborg was vacated by March 31
st
,
2021 and returned to the owner – and the leased production property in Nyborg was subleased to a 3
rd
party effective
March 1
st
, 2022. The latter resulted in an impairment of leased other fixtures and fittings, tools, and equipment of DKK
0,2 million and impairment of leasehold improvements of DKK 1,0 million included in the 2021/22 financial year.
• Profit for the year before tax totaled DKK 14,6 million (2020/21: DKK 0,9 million). This is in line with our expectations
announced to the market on February 23
rd
, 2022, as profit for the year before tax was then expected at the DKK 14
million level. The improvement in profit for the year before tax is considered very satisfactory.
• Profit for the year totaled DKK 12,1 million (2020/21: DKK 0,9 million), equal to a profit in earnings per share (EPS) of
DKK 6,7 in 2021/22 (2020/21: DKK 0,5 per share).
• Net cash flows from operating activities came at DKK 23,2 million (2020/21: DKK 15,6 million), net investments were
DKK 4,1 million (2020/21: gain of DKK 0,3 million), and cash flow from financing activities were DKK -18,9 million due
to repayment of mortgages to Nordea, repayment of lease liabilities - and decreased utilization of credit lines at Nordea
(2020/21: DKK -16,4 million). The free cash flow at year-end was DKK 19,1 million (2020/21: DKK 15,8 million).
• The Board of Directors recommends that no dividend be distributed for 2021/22.
Page | 4 ANNUAL REPORT 2021/22
Presentation of income statement before and after non-recurring items and fair value adjustments
For reference, please find below income statement which present the income statement before and after non-recurring
items:
Group
Group
2021/22
2020/21
April 1
st
- March 31
st
(DKK ‘000)
Before
non-
recurring
Non-
recurring
Total
Before
non-
recurring
Non-
recurring
Total
Revenue
147.031
-
147.031
136.946
-
136.946
Production costs
(107.955)
-
(107.955)
(106.360)
(2.183)
(108.543)
Gross profit
39.076
-
39.076
30.586
(2.183)
28.403
Other operating income
858
-
858
1.927
2.695
4.622
Sales and distribution costs
(10.935)
-
(10.935)
(10.442)
(462)
(10.904)
Development costs
(1.803)
-
(1.803)
(6.641)
-
(6.641)
Administrative expenses
(9.410)
-
(9.410)
(7.849)
(2.897)
(10.746)
Other operating expenses
-
-
-
-
-
-
Fair value adjustments on investment
properties
-
-
-
-
-
-
Operating profit/(loss)
17.786
-
17.786
7.581
(2.847)
4.734
Profit/(loss) after tax in associates
(17)
-
(17)
26
-
26
Financial income
585
-
585
585
-
585
Financial expenses
(3.733)
-
(3.733)
(4.481)
-
(4.481)
Profit/(loss) before tax
14.621
-
14.621
3.711
(2.847)
864
Income taxes
(2.491)
-
(2.491)
(1.228)
1.219
(9)
Profit/(loss) for the year
12.130
-
12.130
2.483
(1.628)
855
Operating profit/(loss)
17.786
-
17.786
7.581
(2.847)
4.734
Fair value adjustments on investment
properties
-
-
-
-
-
-
Depreciation, amortization, and impairment
losses
6.072
-
6.072
11.441
3.439
14.880
Earnings before interest, taxes, depreciation,
and amortisation (EBITDA)
23.858
-
23.858
19.022
592
19.614
The intention is to segregate special items (non-recurring items) from the normal operations to differentiate turn-around
related items and the normal ongoing operation.
The Non-recurring items are related to turn-around in the previous years. In 2020/21 the non-recurring items are related
to the bankruptcy of Glunz & Jensen S.r.l. reduced by settlement of moulding problems in Selandia Park A/S and
severance cost for dismissed employees.
Glunz & Jensen has not recorded any non-recurring items during 2021/22 and does not foresee any for 2022/23 either.
ANNUAL REPORT 2021/22 Page | 5
GLUNZ & JENSEN HOLDING A/S LOCATIONS
Glunz & Jensen Prepress currently has 3 main locations:
Ringsted, Denmark including HQ, Administration, Finance, Sales and Service. In addition, there is a branch office in Nyborg,
Denmark hosting Thermal R&D.
Presov, Slovakia including Administration & Finance, R&D, Internal Sales, Offset and Flexo Manufacturing and Global
Spare Parts Center.
Inman, SC, USA including Service and Regional Spare Parts Center.
Investment properties in Selandia Park A/S are located in Ringsted, Denmark.
Page | 6 ANNUAL REPORT 2021/22
FINANCIAL HIGHLIGHTS
DKK
DKK
DKK
DKK
DKK
EUR
10 months
12 months
12 months
12 months
12 months
12 months
In millions, except per share data
2017/18
2018/19
2019/20
2020/21
2021/22
2021/22
1)
Key figures
Income statement
Revenue
220,0
227,5
195,6
136,9
147,0
19,8
Gross profit
62,8
43,8
35,3
28,4
39,1
5,2
Operating profit/(loss)
18,2
(3,4)
(17,8)
4,7
17,8
2,4
Net financials
(4,5)
(4,4)
(3,1)
(3,9)
(3,1)
(0,4)
Profit/(loss) for the year
9,9
(6,9)
(18,4)
0,9
12,1
1,6
Profit/(loss) before non-recurring items, financial
income and expenses, tax, depreciation, amortization,
and impairment of assets
(EBITDA before non-recurring items)
26,0
16,4
14,9
19,0
23,9
3,2
Profit/(loss) before financial income and expenses, tax,
depreciation, amortization, and impairment of assets
(EBITDA)
26,8
9,0
1,7
19,6
23,9
3,2
Balance sheet
Assets
Completed development projects
17,2
11,4
5,6
0,2
-
-
Other intangible assets
-
-
-
-
-
-
Other non-current assets
155,0
146,6
166,3
154,7
152,7
20,5
Current assets
106,7
81,6
75,3
57,4
67,5
9,1
Total assets
278,9
239,6
247,2
212,3
220,2
29,6
Liabilities
Share capital
92,2
86,8
73,6
73,9
86,3
11,6
Non-current liabilities
81,1
80,2
88,9
76,5
70,1
9,4
Current liabilities
105,6
72,6
84,7
61,9
63,8
8,6
Total Equity and liabilities
278,9
239,6
247,2
212,3
220,2
29,6
Cash flows
Cash flows from operating activities
16,7
10,6
(2,1)
15,6
23,2
3,1
Cash flows from investing activities
2)
(2,5)
(3,6)
(7,4)
0,2
(4,1)
(0,5)
Cash flows from financing activities
(12,4)
(10,3)
9,3
(16,4)
(18,9)
(2,6)
Change in cash and cash equivalents for the year
1,8
(3,3)
(0,2)
(0,6)
0,2
0,0
2)
including investments in property, plant and
equipment and investment properties
(2,2)
(3,9)
(7,4)
(0,3)
(4,1)
(0,5)
Financial ratios in %
Operating margin
8,3
(1,5)
(9,1)
3,5
11,7
11,7
EBITDA margin
12,2
4,0
0,9
14,3
16,3
16,3
Return on assets (ROIC)
6,8
(1,3)
(7,3)
2,1
8,0
8,0
Return on equity (ROE)
11,8
(7,7)
(22,9)
1,2
15,1
15,1
Equity ratio
33,1
36,2
29,8
34,8
39,2
39,2
Other information
Credit institutions net interest-bearing debt
90,2
84,1
97,5
86,5
71,1
9,6
Interest coverage
7,3
(1,6)
(12,4)
1,7
6,9
6,9
Earnings per share (EPS)
6,0
(3,8)
(10,1)
0,5
6,7
0,9
Diluted earnings per share (EPS-D)
5,4
(3,8)
(10,1)
0,5
6,7
0,9
Cash flow per share (CFPS)
9,9
5,8
(1,1)
8,6
12,7
1,7
Book value per share (BVPS)
50,6
47,7
40,4
40,6
47,4
6,4
Share price (KI)
73
44
55
65
78
10
Average number of shares outstanding (in thousands)
1.664
1.821
1.821
1.821
1.821
1.821
Dividend per share
0,0
0,0
0,0
0,0
0,0
0,0
Average number of employees
195
171
158
119
101
101
For definitions of financial ratios, see page 62. 1) The DKK/EUR exchange rate applied is 744.
The accounting period in 2017/18 is from June 1
st,
2017, to March 31
st
, 2018, hence covering a 10 month period only. Numbers for 2017/18
have not been adjusted to reflect new accounting policies, IFRS 9 and IFRS 15, adopted April 1
st
, 2018.
IFRS 16 is adopted April 1
st
, 2019, and the previous years have not been restated.
ANNUAL REPORT 2021/22 Page | 7
BUSINESS AND FINANCIAL REVIEW
Strategy/Turnaround
Following the decline in revenue over the previous years,
a short-term right-sizing plan (referred to as the Strategy
2020-22) was developed early 2020 covering a 2-year
period. This plan – among others - included further
operational consolidation, additional focus on new
markets, an updated go-to-market approach, new
products launches, and significant organizational
adjustments.
For 2021/22 this resulted in:
Consolidation of activities in Presov, Slovakia, which
contributed to a higher productivity and improved on-
time deliveries that positively impacted the financial
results for 2021/22. Further, our revenue stream
improved for the first time in years, resulting in a
topline growth of 7,4% compared to 2021/22.
The outbreak of war in Ukraine by February 2022 led
us to cease all business with Russia and Belarus.
Further, the war made business in Ukraine very
difficult. These factors have led to a minor loss of
revenue and has added slightly to the general
challenge of securing parts and spares to Glunz &
Jensen.
It is estimated that Strategy 2020-22 from January 2020
has improved the annual EBITDA for the group with
approximately DKK 20 million during the last 2 years.
Glunz & Jensen S.r.l.,Italy
Following the bankruptcy act in 2020 a former employee
filed a court case against Glunz & Jensen S.r.l. and
Glunz & Jensen A/S. The court proceedings were
finalized in the autumn of 2021. The outcome of the court
case was fully in favor of Glunz & Jensen A/S and has
led to reversals of accruals (liabilities) during 2021/22,
hence adjusting the EBITDA positively in 2021/22 by net
DKK 1,2 million by March 31
st
, 2022.
Offset market
Glunz & Jensen’s sales to the Offset market increased
by 8,1% in 2021/22 compared to 2020/21. There was a
sharp slowdown in Offset investments at the start of the
Covid-19 pandemic. The market has subsequently
regained some traction and at the same time we have
increased our market share.
Flexo market
Competition in the Flexo market remained fierce in
2021/22 and we saw sales increasing by 9,4% compared
to 2020/21. The revenue in 2021/22 has been impacted
by difficulties mainly on the supply side. Glunz & Jensen
estimates that the global market volume continues to
grow at 1-3% annually and remains confident that we
maintain momentum in this segment supported by our
improved competitiveness and delivery performance.
Focused development activity
Glunz & Jensen's strategic focus in recent years has
been to meet customer demands through the
development of new and competitive products, both in
Offset and in Flexo. We develop machines both for our
own brand and act as a trusted development partner for
some of the world’s largest plate manufacturers.
Selandia Park A/S
Selandia Park A/S was established on June 1
s
, 2016.
Selandia Park A/S' business objective is to invest in and
operate a property portfolio. The revenue decreased in
2021/22. The decrease is related to the planned
expiration of an added rent income from a particular
tenant. Approximately 1% of the property complex was
idle during 2021/22.
All the tenants - except for one – have renewed their
rental contracts during 2021/22 thus extending the
expiration dates of the rental contracts to 2026 at the
earliest and to 2033 respectively. Selandia Park A/S is
contributing with DKK 8,3 million to the profit before tax.
The fair value of the investment properties amounts to
DKK 140,5 million by March 31
st
, 2022 (2020/21: DKK
137,0 million). The value is positively impacted
compared to 2020/21 due to improvement on the
Investment properties of DKK 3,5 million, which is
included in an extended contract with a tenant. As a
result, the discounted cash flow model used as valuation
method was positively impacted by extended contracts,
increased rental income due to rent adjustment, and the
model was also positively impacted as the property is
almost fully rented out.
Following the strong financial performance in 2021/22,
the Board of Directors decided by May 2022 to
discontinue the sales process thus keeping the
ownership of the investment properties within Glunz &
Jensen.
Page | 8 ANNUAL REPORT 2021/22
OPTIMISATION OF THE VALUE CHAIN
Glunz & Jensen's strategy is based on the following key
themes:
1. Leading the market for Offset prepress equipment
Offset is one of Glunz & Jensen's cornerstone business
areas where the main activity is CtP and iCtP
processors, which develop and prepare aluminum Offset
plates for printing applications such as newspapers,
inserts, magazines, books, information, promotional
material, and a variety of other printed matters.
Our aim is to further strengthen our position on the global
Offset market by continuing to invest in R&D and deliver
cutting-edge quality products with low energy
consumption and reduced environmental impact at
competitive prices. Further we will increase our footprint
in regions, which are still showing good development for
Offset products, mainly APAC and Latin America.
2. Developing a leading position in the Flexo market
through customer satisfaction and the development
and launch of cost-efficient products
Glunz & Jensen is one of the largest providers of Flexo
equipment globally. In addition, we act as a valued
development and manufacturing partner for some of the
largest plate manufacturers globally. The Flexo market –
which mainly serves the packaging industry - develops
at an estimated annual growth rate of 1-3%, driven by
underlying growth in packaging, changing demographics,
and shares gained from other printing
technologies. We expect to gain market share in this
segment going forward.
3. Growing the after-market
Glunz & Jensen's aftermarket business includes sales of
spare parts, consumables for iCtP products, installation,
repair, preventive maintenance of hardware and
software. In addition to enhanced profitability, it
strengthens our relationship with customers and
provides valuable feedback and dialogue with the end-
users.
We strive to increase our aftermarket business by
streamlining our supply chain to serve customers faster
and continue to offer high-quality OEM parts to keep our
equipment running smoothly.
4. Improving profitability
During the last 24 months a significant number of steps
have been taken to further improve the profitability of
Glunz & Jensen. These include reduction of product
range (overlapping products), transfer of functions from
Denmark to our subsidiary in Slovakia and
discontinuation of loss-making parts of our business and
product portfolio and a stringent focus on cost throughout
the value chain.
These significant steps combined with a great effort by
our staff have resulted in a significantly improved
profitability by approx. DKK 14 million in 2021/22 -
compared to the 2020/21 profit before tax at DKK 0,9
million.
OUTLOOK
For fiscal 2022/23, the Group revenue is expected to be
at the DKK 150-155 million level, while operating profit
(EBITDA) is expected at the DKK 20 -25 million level as
a result of the turnaround and the strong top-line
performance. The profit before tax is expected at the
DKK 14-18 million level.
Management underlines that the guidance for the fiscal
year 2022/23 is associated with a greater deal of
uncertainty than usual, due to challenges on the supply
side of parts and materials.
It is the Group’s intention to use the free cash flow to the
greatest possible benefit to its shareholders. This
includes investment in business development and
technology as well as reduction of debt.
ANNUAL REPORT 2021/22 Page | 9
FINANCIAL STATEMENTS
The Group
Income statement
Group revenue
The Group's revenue totaled DKK 147,0 million in
2021/22 (2020/21: DKK 136,9 million), corresponding to
an increase in revenue of 7,4%.
Figure #1: Revenue (DKKm), fiscal years, note 2017/18 at
only 10 months
Revenue in Offset increased by 8,1%, Flexo revenue
increased by 9,4% while rental income from Selandia
Park decreased by 5,9%.
Figure #2: Revenue (million DKK) by product, fiscal years,
note 2017/18 at only 10 months
New product range in Offset segment
Glunz & Jensen has successfully launched the next
generation of iCtP equipment, the PlateWriter Infuse and
the PlateWriter Infuse XL. These systems have replaced
the PlateWriter 2000 and PlateWriter 3600 respectively.
The new generation is also available as an Infuse retrofit
kit, enabling upgrades of existing equipment in the field.
Further, the InterPlater MD85T Offset processor has
been released. This will be followed by the InterPlater
125T in April 2022. The InterPlater MD platform is a cost-
efficient model of the well-established InterPlater HDX,
targeting emerging markets.
Selandia Park
Rental income in Selandia Park A/S decreased to DKK
12,2 million (2020/21: DKK 13,0 million), excluding rental
income from Glunz & Jensen A/S. The decrease is
related to the planned expiration of an added rent income
from a particular tenant. Approximately 97% of the
premises are fully rented out at year end. All the tenants
- except for one – have renewed their rental contracts
during 2021/22 thus prolonging the expiration dates of
the rental contracts to 2026 at the earliest and to 2033 at
the latest. The fair value of the investment properties
amounts to DKK 140,5 million by March 31
st
, 2022
(2020/21: DKK 137,0 million). The value is positively
impacted due to improvement on the Investment
properties of DKK 3,5 million which is included in an
extended contract with a tenant. Further, the discounted
cash flow model used as valuation method was positively
impacted by extended contracts, increased rental
income due to rent adjustment and also the model was
positively impacted by the close to 100% occupation rate.
Gross profit
Gross profit for 2021/22 totaled DKK 39,1 million
(2020/21: DKK 28,4 million), corresponding to an
improved gross margin at 26,6% against 2020/21 of
20,7%.
Figure #3: Gross profit and gross profit margin for the fiscal
years
EBITDA
Profit before interest, tax, and depreciation and
amortization (EBITDA) totaled DKK 23,9 million,
(2020/21: DKK 19,6 million) corresponding to an EBITDA
margin of 16,2% (2020/21: 14,3%).
Page | 10 ANNUAL REPORT 2021/22
Figure #4: EBITDA/EBITDA margin, all shown in fiscal
years. Note 2017/18 is only 10 months.
Profit before tax greatly improved
Glunz & Jensen succeeded with the operational plans for
2021/22 and also managed to reduce the cost which in
combination led the profit before tax to DKK 14,6 million
(2020/21: DKK 0,9 million), a very satisfactory result in
the current market conditions.
Figure #5: Profit before tax/profit before tax margin, all
shown in fiscal years. Note 2017/18 is only 10 months.
The EBITDA and the profit before tax are the key KPI’s
for the Board of Directors and management in assessing
the progress being made in the turnaround plan.
Management expects to maintain an EBITDA margin at
approx. 15% and a profit before tax margin at approx. 10%
in the fiscal year 2022/23.
During 2021/22 Glunz & Jensen finalized the transfer of
activities from Nyborg, Denmark to Presov, Slovakia in
order to consolidate the activities and thereby get higher
efficiency, a lower cost base, and improved on-time
deliveries. Due to the transfer, part of the leased
properties in Nyborg was vacated, which resulted in an
impairment of leased properties of DKK 0,2 million
(2020/21: DKK 2,8 million) and impairment of leasehold
improvements of DKK 1,0 million (2020/21: DKK 0,6
million). All leased properties in Nyborg were either
subleased to a 3
rd
party by March 2022 or already
returned to the owner by March 2021.
The number of staff by the end of 2021/22 was 106
(2020/21: 99).
Operating profit for the financial year 2021/22 represents
a profit of DKK 17,8 million against a profit of DKK 4,7
million in 2020/21.
The Group's net financial expenses in 2021/22 totaled
DKK 3,1 million (2020/21: DKK 3,9 million).
Financial income in 2021/22 amounted to DKK 0,6
million against DKK 0,6 million in 2020/21, while financial
expenses amounted to DKK 3,7 million against DKK 4,5
million in 2020/21.
Satisfactory results of operations
The Group reported a profit before tax of DKK 14,6
million in 2021/22, against a profit of DKK 0,9 million in
2020/21.
The Group recognized tax of DKK 2,5 million in 2021/22
against at tax of DKK 0,0 million in 2020/21. Profit for the
year after tax was DKK 12,1 million (2020/21: DKK 0,9
million), corresponding to earnings per share (EPS) of
DKK 6,7 (2020/21: DKK 0,5). The financial performance
is considered satisfactory by the Executive Management
and the Board of Directors.
In 2021/22 other comprehensive income amounted to
DKK 0,3 million of which all were related to exchange
rate adjustments of investments in subsidiaries. In
2020/21 other comprehensive income amounted to a
cost of DKK 0,5 million – also related to exchange rate
adjustments of investments in subsidiaries.
Balance sheet
Increase in tied-up capital from working capital
The Group's assets totaled DKK 220,2 million on March
31
st
, 2022, against DKK 212,3 million the year before.
Non-current assets decreased by DKK 2,4 million
primarily due to a decrease of DKK 3,2 million in property,
plant and equipment, a DKK 5,7 million decrease in
leasehold obligations, an increase of DKK 3,3 million in
investment properties and a DKK 3,2 million increase in
other receivables.
Inventories increased from DKK 36,4 million last year to
DKK 41,0 million - mainly due to efforts in securing parts
for manufacturing and spare-parts, but also due to an
increase in work in progress.
Trade receivables increased by DKK 3,3 million to DKK
20,8 million mainly due to increased activity.
Equity came at DKK 86,3 million, corresponding to a
solvency ratio of 39,2%, compared to 34,8% the year
before. The Board of Directors recommends to the
Annual General Meeting that no dividend payment be
distributed for fiscal year 2021/22.
ANNUAL REPORT 2021/22 Page | 11
Long- and short-term interest-bearing debt to credit
institutions totaled DKK 72,2 million at the end of 2021/22
(2020/21: DKK 87,3 million), of which DKK 50,9 million
(2020/21: DKK 56,3 million) are long-term liabilities and
DKK 21,3 million (2020/21: DKK 31,0 million) are current
liabilities. Net interest-bearing debt to banks decreased
by DKK 15,4 million during fiscal 2021/22 to DKK 71,1
million.
Investment properties totaled DKK 140,5 million end of
2021/22 compared to DKK 137,0 million end of 2020/21
due to the result of the updated discounted cash flow
model used as valuation method. From December 1
st
,
2019, all buildings in Selandia Park A/S, Denmark are
measured at fair value.
Cash flow and liquidity
Positive cash flow
Cash flow from operating activities amounted to DKK
23,2 million in 2021/22 (2020/21: DKK 15,6 million),
mainly driven by the operating profit
Cash flow from investment activities used DKK 4,1
million in 2021/22 (2020/21: gain of DKK 0,2 million). The
increased utilization in 2021/22 is mainly related to a
DKK 3,5 million upgrade of the investment property
linked to a specific tenant.
The positive free cash flow thus amounted to DKK 19,1
million in 2021/22 (2020/21: DKK 15,8 million).
Capital resources
At the end of fiscal 2020/21, the Group's total available
credit facilities amounted to DKK 93,7 million compared
to DKK 101,7 million at the end of 2020/21. DKK 72,2
million was utilized at the end of 2021/22 against DKK
87,3 million the year before.
Liquidity reserves totaled DKK 21,5 million by March 31
st
,
2022 (2020/21: DKK 14,4 million).
Based on budgets, including expectations to the cash
flow and the development of the capital base, existing
credit facilities, related contractual and expected
maturities and conditions, the Board of Directors and the
Executive Management consider the Group's liquidity
and capital resources to be satisfactory.
The Group's available credit lines for 2022/23 were
extended by Nordea on May 12
th
, 2022, to continue to
May 2023 and the cooperation letter was signed by the
Company on May 12
th
, 2022, as planned. The
cooperation letter is subject to three covenants, which
the Prepress division of Glunz & Jensen must observe in
order to maintain the loan. The financial covenants are
related to the financial ratio "solvency", the agreed level
of EBITDA, and loan to value. Please refer to note 27
regarding covenants.
EVENTS AFTER THE BALANCE SHEET DATE
The Group's available credit lines for 2022/23 were
extended by Nordea on May 12
th
, 2022, to continue to
May 2023 and the cooperation letter was signed by the
Company on May 12
th
, 2022, as planned.
Following the strong financial performance in 2021/22,
the Board of Directors decided by May 2022 to
discontinue the sales process thus keeping the
ownership of the investment properties within Glunz &
Jensen.
No other events have occurred since March 31
st
, 2022,
which are considered to have a significant impact on the
Group's or the Parent Company’s financial position.
Page | 12 ANNUAL REPORT 2021/22
The Parent Company
Income statement
The Parent Company's revenue, which consists of
management fees to subsidiaries, totaled DKK 9,3
million in fiscal year 2021/22 (2020/21: DKK 7,8 million).
Profit after tax in subsidiaries totaled a profit of DKK 11,1
million in fiscal 2021/22 (2020/21: a loss of DKK -0,4
million).
Regarding development in the subsidiaries please refer
to the Group income statement information on page 9.
Financial income in 2021/22 amounted to DKK 1,6
million against DKK 2,4 million in 2020/21. The financial
income relates to interest received from subsidiaries.
The Parent Company's profit after tax totaled a profit of
DKK 12,1 million in 2021/22 against a profit of DKK 0,9
million in 2020/21.
Balance sheet
The Parent Company's total assets amounted to DKK
92,9 million on March 31
st
, 2022 (2020/21: DKK 78,1
million).
The majority of the assets in the Parent Company refer
to the subsidiaries as investments in subsidiaries amount
to DKK 54,0 million (2020/21 DKK 39,1 million) and
receivables from subsidiaries came to DKK 37,8 million
(2020/21: DKK 37,8 million) as of March 31
st
, 2022.
Equity came at DKK 86,3 million, corresponding to a
solvency ratio of 92,8%, compared to 94,6% the year
before. The Board of Directors recommends to the
Annual General Meeting that no dividend payment be
distributed for fiscal year 2021/22.
Cash flow and liquidity
Cash flow from operating activities amounted to DKK
10,2 million in 2021/22 (2020/21: DKK loss of 19,9
million), primarily driven by profit for the year from
subsidiaries of DKK 11,1 million.
Cash flow from investing activities was negative by DKK
10,0 million in 2020/21 due to a capital increase given to
Glunz & Jensen A/S.
The positive free cash flow thus amounted to DKK 0,2
million in 2021/22 (2020/21: DKK 0,1 million).
Based on budgets, including expectations to the cash
flow and the development of the capital base, existing
credit facilities and related contractual and expected
maturities and conditions, the Board of Directors and the
Executive Management consider the Group's and
thereby also the Parent Company’s liquidity and capital
resources to be satisfactory.
EVENTS AFTER THE BALANCE SHEET DATE
No other events have occurred since March 31
st
, 2022,
which are considered to have a significant impact on the
Parent Company’s financial position.
ANNUAL REPORT 2021/22 Page | 13
RISK FACTORS
Glunz & Jensen Holding's risk policies and -procedures
must efficiently and securely identify, control, and reduce
the risks that may affect the Group's business base,
development, and value creation. A number of
commercial and financial risk factors can have a
significant impact on the Group's future financial position,
activities and results of operations. The Group's most
important risk factors are outlined below.
Commercial risk
Glunz & Jensen's revenue is affected by both global
economic developments and changes in industry-
specific conditions. The macroeconomic cycles generally
affect Glunz & Jensen's customers' probability of
investment and may reduce revenue and earnings.
Glunz & Jensen's order lead time is 26 weeks, which is
considered to be market-conform. As revenue
expectations beyond this period are based on non-
binding estimates from the Group's largest customers or
based on expectations from management Glunz &
Jensen, deviations from the expected revenue may
occur.
Glunz & Jensen markets a large part of its production to
a number of major customers with whom the Company
has a long-term customer relationship. The four largest
customers represent approximately 56% of total revenue.
One customer account for more than 20% of the Group's
revenue.
New technologies and product development
Glunz & Jensen's products are based on many years of
development for the Offset and Flexo printing. Insight
into the industry's process needs and production
technologies is crucial to the Company's ability to
maintain customer’s loyalty. Some items in Glunz &
Jensen's products are patented, but most of the
Company's sales are based on products that do not
involve patented technology.
As a market leader, Glunz & Jensen's goal is to be
among the first to offer products tailored to new
technologies within the Company's two product areas.
This places great demands on continual product
development, enabling the Group to market products at
competitive prices in a timely manner, which will also
match customer needs. Lack of success in this area can
affect revenue and results of operations negatively.
Glunz & Jensen's most important Offset activity is the
development and sales of CtP developers. The
continued use of CtP processors is conditional on the
development of Offset printing plates. Several large plate
manufacturers have developed printing plates that do not
require development. The process-free CtP technology
has gained ground and may affect the demand for CtP
processors negatively.
Glunz & Jensen's strategy in the Flexo area is the
continued development of technology for solvent-based,
and thermal-based prepress solutions, an area in which
the Group is currently leading the market. Automation
and adaptation to latest technologies are important
requirements to ensure continued positive development
of the Flexo area.
Competition and market conditions
Prices of Offset and Flexo equipment are under pressure.
This is partly due to increased competition (Flexo) and
partly due to the fact, that still smaller print shops invest
in CtP technology (Offset), leading to demand for smaller
equipment and thereby lower investments. The outlook
is therefore unchanged, i.e., competition and a possible
consolidation in the CtP area.
Production and supplier risks
Maintaining high reliability of delivery and high quality is
important to maintain existing customer relationships. To
strengthen competitiveness, Glunz & Jensen has
established its main production in Slovakia. If the factory
in Slovakia is impacted by production problems or
accidents, such as fire, this may affect delivery capacity
and thus reduce the Group's earnings.
The Russia-Ukraine conflict has highlighted the need to
consider geopolitical instability when choosing suppliers.
Glunz & Jensen has strengthened its purchasing
organization to counter potential supply risks. However,
ongoing world-wide supply shortage may affect the cost
prices and the planned in-flow of parts (incl. microchips)
to Glunz & Jensen.
Risk related to property market
The risk associated with the investment property is
primarily determined by the uncertainty of the value of
the property involved. As such, a property
market recession could materially adversely affect the
value of the property. Further the ability to secure that all
property is rented out will impact the future cash flow of
Glunz & Jensen and thereby the value of the investment
property.
Insurance risk
It is the Group's policy to hedge risks that may threaten
the Group's financial position. In addition to statutory
insurance, insurance against product liability and
operating losses has thus been taken out. Property, plant,
Page | 14 ANNUAL REPORT 2021/22
and inventories are insured at replacement value at all
risk levels.
Other risks
There is ongoing consolidation in the graphic industry.
Glunz & Jensen is actively involved in industry
consolidation; this trend will benefit Glunz & Jensen.
Cyber risks
The continuously evolving threat of cyber security, data
leakage and data security is a key area of focus. A major
cyberattack could result in an extended period of down
time resulting in delays to customers and additional costs
for the organization. Glunz & Jensen is focused on IT
Security and awareness. In 2021/22, increased cyber
awareness training and further IT security measures
across the organization have been introduced helping to
mitigate this risk.
For financial risks, please refer to note 27.
Covid-19
The year 2021/22 was affected by the Covid-19
pandemic. However, the impact was significantly less
than in 2020/21.
Glunz & Jensen has already undertaken specific
measures to ensure the health and safety of its
employees globally. In addition to human risk, the
outbreak of the virus also poses an economic risk to
Glunz & Jensen’s operations and its trade volumes.
Further the customers’ ability to pay might be impacted
by the pandemic.
The Covid-19 affected our ability to serve our customers
as travel restrictions have been imposed, which has
adversely affected our sales, installation, and service
teams.
To strengthen the liquidity and capital of Glunz & Jensen,
the Board of Directors decided in 2020 to initiate a sales
process for the investment properties in Selandia Park
A/S (assets) or the entity holding the Selandia Park real
estate (shares). It was expected that the Covid-19 might
delay the sales process further. Following the strong
financial performance in 2021/22, the Board of Directors
decided by May 2022 to discontinue the sales process
thus keeping the ownership of the investment properties
within Glunz & Jensen.
In general, the outlook remains uncertain
ANNUAL REPORT 2021/22 Page | 15
REPORTING ON MANAGEMENT
• This statement of reporting on management is part of
the Management's review, see section 99b and 107b
of the Danish Financial Statements Act, covering the
fiscal year April 1
st
, 2021 – March 31
st
, 2022. The
statement consists of three elements:
• Corporate Governance
• Data Ethics
• The composition of the governing bodies and their
functions
• Main elements of the Company’s internal control and
risk management system
Corporate Governance
Glunz & Jensen emphasizes the pursuit of good
corporate governance and continuous optimization of the
Group's Management. The overall framework for the
management of Glunz & Jensen is based on the
Company's Articles of Association, values, and policies
as well as current Danish and international legislation
and "Rules for Issuers of Shares" on NASDAQ OMX
Copenhagen A/S, to ensure that the Group pursues its
obligations to all shareholders, customers, employees,
and other stakeholders, as well as to support long-term
value creation.
Glunz & Jensen is governed by the Corporate
Governance Committee's recommendations of
December 2020.
The recommendations are available at:
https://corporategovernance.dk/.
In accordance with the recommendations, we explain on
Glunz & Jensen's website how the Company complies
with the recommendations:
The Group has decided to deviate from the
recommendations due to the size of the Company and
thus arranged differently in the following areas:
• The company publishes half year reports at NASDAQ
OMX and on the company´s website. The company
publishes Q1 and Q3 announcements commenting
the development in the company.
• Glunz & Jensen has not yet adopted a policy on
corporate social responsibility. A policy on corporate
social responsibility will be adopted during 2022/23.
• Glunz & Jensen has no Board committees, as the
size of the Company and the operation of the Board
mean that it is deemed more efficient to not establish
special Board committees. The Board of Directors as
a whole assumes the responsibilities of the
committees.
• Glunz & Jensen has no share-based incentive
schemes for the Executive Management as the
Board of Directors finds the current remuneration
sufficient.
• Glunz & Jensen has no “claw-back” scheme to
reclaim variable remuneration from the Board or the
Executive Management if the recipient has acted in
bad faith but will consider adopting it.
Interaction with shareholders and other
stakeholders
Glunz & Jensen's Management continually seeks to
have a dialogue with shareholders and other
stakeholders. The company strives for a high degree of
openness and effective dissemination of information.
The dialogue with and information to shareholders and
stakeholders take place through the publication of
interim reports and other communications from the
Company, as well as meetings with investors, analysts,
and the press and at the Company's general meeting.
Interim reports and other announcements are available
on Glunz & Jensen's website immediately after
publication.
The company's Articles of Association contain no limits
on ownership or voting rights. If an offer is made to
acquire the Company's shares, the Board of Directors
will – in accordance with Danish law – openly consider
and convey the offer to the shareholders, accompanied
by the Board of Directors comments.
The Glunz & Jensen Group has not entered into
significant agreements that are affected, changed, or
expired in the event of a change of control of the
Company, except if a shareholder other than Heliograph
Holding GmbH acquire more than 50% of the shares in
Glunz & Jensen. If this situation occur the notice of the
CEO are increased from 9 to 18 months. The notice will
be reduced with a month for each month passed since
the new main shareholder has acquired the 50% shares
until the normal notice of 9 months have been reached
again.
Besides the above mentioned regarding the CEO, there
are no agreements with the Executive Management or
employees regarding retention or compensation in case
of resignation or dismissal or termination of a post as a
result of the acquisition of the Glunz & Jensen Group
Page | 16 ANNUAL REPORT 2021/22
The general meeting is Glunz & Jensen's supreme
decision-making authority, and the Board of Directors
emphasizes that shareholders be given adequate
information about the business to be transacted at the
general meeting. Notice of general meetings is published
on the website and sent electronically to all registered
shareholders, who have registered their e-mail address
at least three weeks prior to the event.
All shareholders are entitled to attend and vote at the
Annual General Meeting. Shareholders can also provide
a power of attorney to the Board – on an item-by-item
case on the agenda. The general meeting gives
shareholders the opportunity to ask questions to the
Board of Directors and the Executive Management. The
shareholders can submit proposals that must be
discussed at the general meeting. The Articles of
Association contain no special rules regarding
amendments to the Company's Articles of Association.
Thus, only the provisions of the Danish Companies Act
apply in this area.
Data ethics
In accordance with the regulations, we communicate on
Glunz & Jensen’s website how the Company complies:
The processing of personal data is not a critical part of
and neither closely linked to the companies’ business
activities. As a B2B company with no transactions with
private customers, the company only processes
personal data in respect of customers and suppliers to a
very limited extent – and only for customer/supplier
administration purposes. The processing of personal
data mainly relates to the internal activities involving
employees' personal data for HR administration
purposes.
Composition of the governing bodies and their function
Board of Directors
According to the Articles of Association, the Board of
Directors consists of three to eight members elected by
the general meeting. Each year, all of the members are
elected by the general meeting. Resigned members are
eligible for re-election. The Board of Directors elects a
Chairman and a Deputy Chairman from among its own
number. Further, two employee representatives are
elected for a 4-year election period, which has been
determined in accordance with the Danish Companies
Act. The members elected by the general meeting are
considered to be independent.
The current Board of Directors consisted of six members
at the end of the fiscal year 2021/22, two of whom are
employee representatives. The two employee
representatives were elected in May 2021.
As an age limit has been introduced for the members
elected by the general meeting, these must resign at the
first Annual General Meeting after they have reached the
age of 65.
In connection with the identification of new Board
members, a careful assessment of required knowledge
and professional experience is made to ensure that the
Board possesses the necessary competencies.
Information about the individual Board members can be
found on page 23.
The Board at work
In accordance with the Companies Act, the Board of
Directors represents Glunz & Jensen's overall
management and defines the Group's goals and
strategies as well as approves the overall budgets and
action plans. In addition, the Board of Directors in
general supervises the Group and checks that it is
managed properly and in accordance with Danish law
and the Articles of Association. The general guidelines
for the Board's work are laid down in the rules of
procedure, reviewed at least once a year and adapted to
Glunz & Jensen's needs. The rules of procedure include
procedures for Management's reporting, the Board's
working method and a description of the Chairman's
tasks and responsibilities.
The Board of Directors is notified on an ongoing basis of
the Group's performance. This takes place
systematically at meetings as well as in written and oral
reports. The Board receives a monthly report, which
includes information on financial developments and the
most important activities and transactions.
At least five ordinary Board meetings must be held
annually with a fixed plan for the contents of the meetings.
In addition, the Board meets whenever necessary. In
fiscal 2021/22, six board meetings were held.
No committees have been active during 2021/22.
The Board of Glunz & Jensen has thus collectively taken
on the tasks of the audit committee.
Risk management
In connection with the strategy review, the Board of
Directors and the Executive Management perform a
comprehensive risk assessment for the Group to identify
which issues – internal as external – may affect the
Group's business base and development.
The risk assessment focuses primarily on the
identification of business risks, and for selected risks,
action plans are identified to reduce and handle such
risks. Glunz & Jensen has decided to manage general
risks by taking out relevant insurance, such as "all-risk"
on buildings and movables, transport insurance etc. As
a main rule, financial risks are the result of commercial
activities, and the Group does not actively speculate in
financial risks.
ANNUAL REPORT 2021/22 Page | 17
The Board of Directors establishes policies and
frameworks for the Group's key risks and ensures
effective management of these risks. Reporting on
significant risks is included in the ongoing reporting to the
Board of Directors.
For a more detailed description of Glunz & Jensen's risks,
see the section "Risk factors".
Executive Management
The Executive Management is appointed by the Board of
Directors. The Executive Management is responsible for
the day-to-day operations of the Group and, in
accordance with guidelines and instructions developed
by the Board of Directors, prepares action plans and
budgets that support the Company's strategy and reports
on ongoing performance developments, risks and other
essential information to the Board. The Board of
Director's delegation of responsibilities to the Executive
Management is outlined in the Board's rules of procedure.
Evaluation of the Board of Directors and the
Executive Management
A formalized evaluation of the work of the Board of
Directors and the Executive Management is in place. The
Chairman of the Board of Directors regularly reviews the
work of the Executive Management and individual Board
members, the cooperation of the Board of Directors, the
Board of Directors' working methods and the cooperation
between the Board of Directors, and the Executive
Management. Based on these assessments, the Board
of Directors' and the Executive Management's work is
adjusted on a regular basis.
Remuneration to the Board of Directors and the
Executive Management
Glunz & Jensen seeks to ensure that members of the
Board of Directors and the Executive Management are
remunerated at a competitive and reasonable level,
helping to ensure that Glunz & Jensen can attract and
retain competent individuals.
Members of the Board of Directors receive a fixed,
annual fee, and the total remuneration to the Board of
Directors is approved by the Annual General Meeting in
connection with the approval of the annual report. In
fiscal 2021/22, directors' fees amounted to DKK 800.000,
including DKK 250.000 to the Chairman, DKK 150.000 to
the Vice-Chairman and DKK 100.000 to the other
members. Members of the Board of Directors are not
subject to bonus schemes, but in accordance with
section 198 of the Danish Companies Act, the Board of
Directors is authorized to acquire treasury shares up to
60% of the Company’s share capital at the market price
prevailing at the date of acquisition with a deviation of up
to 10% until June 28
th
, 2023.
The remuneration of the Executive Management is
determined by the Board of Directors. In 2021/22,
members of the Executive Management received a basic
salary, including usual benefits such as company car and
telephone, and are also eligible for a bonus scheme. The
Executive Management consisted of CEO Martin
Overgaard Hansen and CFO Henrik Blegvad Funk. The
total remuneration paid to the Executive Management
amounted to DKK 5,9 million in 2021/22.
The Remuneration report 2021-22 is available at:
https://www.glunz-jensen.com/investor/corporate-
governance/incitamentspolitik
Incentive programs
Glunz & Jensen continually seeks to establish incentive
programs that support its shareholders value creation.
The incentive programs for the Executive Management
and key employees include a bonus scheme. The results
in 2021/22 triggered provisions at DKK 1,6 million related
to the bonus schemes.
The main elements of the Company's internal control
and risk management system
Risk assessment in connection with the financial
reporting process
The Board of Directors and the Executive Management
have overall responsibility for the Group's risk
management and internal control in connection with the
financial reporting process, e.g., responsibility for
ensuring compliance with relevant legislation and other
regulations in relation to the financial reporting.
The Group's internal control and risk management
systems should improve the probability of reporting
without significant errors, omissions, and irregularities
and, moreover, should ensure that the financial
statements are presented in accordance with
International Financial Reporting Standards (IFRS) as
approved by the EU and other accounting regulations
applicable to Danish listed companies.
The Group's internal control and risk management
systems in connection with the financial reporting include:
Control environment
The Board of Directors is responsible for identifying the
Group's most significant risks and the adequacy of
internal controls in connection with the presentation of
the financial statements. The Executive Management is
responsible for the operational organization and daily
execution of an effective control environment, e.g., for
ensuring compliance with relevant legislation in
connection with the presentation of the financial
statements. The Executive Management reports to the
Board of Directors on all relevant matters and
assessments.
The operational management includes an appropriate
organizational structure, written procedures for essential
Page | 18 ANNUAL REPORT 2021/22
processes, accounting instructions for subsidiaries,
authorization and certification rules, segregation of
duties, consolidation procedures, check and
documentation lists and IT security. The Executive
Management regularly assesses the adequacy of the
control environment, including the adequacy of
resources and competencies.
Risk assessment and risk management
The Board of Directors and the Executive Management
continually consider risks that are considered to be of
importance to the Group's financial reporting, based on
a concrete assessment of the significance and
probability of each individual risk. The risk assessment
focuses on significant financial items and involves an
assessment of the immediate risk associated with each
item and the critical processes that form the individual
financial statements.
Risk assessments and risk management are included as
part of the Group's strategy plan.
Control activities
The Group's control activities are organized taking into
account the overall objective of reducing the risk of
material misstatements, deficiencies or irregularities to
an acceptable and low level, so that the consolidated
financial statements and the financial statements are
correct. Control activities are performed at management
and operational level, and checks are performed
manually and systematically.
Control activities include the following essential elements:
• The Board of directors reviews and approves the
budget presented by the Executive Management for
the coming year. The budget includes operations,
balance sheet, liquidity, and investments.
• The Board receives monthly income, balance and
liquidity accounts with budget follow-up, key figures,
and comments on significant developments and/or
deviations. The reporting also includes an update
from area managers regarding actual sales
(customers and products), order status, expectations
as to the future, product development, competitors
etc. Subsidiaries submit monthly accounts with
comments on developments. The reporting is used
as a basis in the group reporting to the Board of
Directors.
• In connection with the year-end, a reporting package
is prepared for the subsidiaries with a view to meeting
disclosure requirements, including disclosure
requirements under IFRS.
• The Parent Company's finance department is
responsible for managing the monitoring and
controlling of financial reports from subsidiaries, with
active participation of local financial controllers.
Regular visits are made to subsidiaries.
Management in subsidiaries liaises with the external
auditor. The Executive Management is informed of
matters identified during the audit of subsidiaries.
• Before the financial statements are presented, the
Board of Directors and the Executive Management
discuss critical accounting practices and estimates
as well as other matters of major importance to the
presentation of the financial statements.
Monitoring
The Board of Directors and the Executive Management
annually assess the adequacy of the Group's risk
management and control systems in the context of the
year-end process, including how the Group is protected
against fraud and accounting irregularities. The
assessment is based on a goal of efficiency and
accountability, and focus is thus primarily on significant
matters.
Audit
The external auditor is elected annually by the Annual
General Meeting. Prior to the election, the Board of
Directors assesses the auditor's independence and
competences etc. Audit tender process is preformed
when required by law or more frequently if the Board of
Directors decides it to be appropriate.
The scope for the auditor's work – including fee, audit-
related tasks, and non-audit related tasks – are
stipulated in an agreement.
Members of the Board of Directors receive the external
auditor's audit report concerning the auditor's review of
the annual report. The Board of Directors reviews the
audit report and the annual report at a meeting with the
external auditor, and the auditor's observations and
significant findings arising from the audit are discussed.
In addition, the significant accounting policies and audit
assessments are reviewed.
ANNUAL REPORT 2021/22 Page | 19
STATEMENT ON CORPORATE SOCIAL RESPONSIBILTY AND GENDER
DIVERSITY
Page | 20 ANNUAL REPORT 2021/22
Diversity
ANNUAL REPORT 2021/22 Page | 21
SHAREHOLDER FACTS
Share information
Glunz & Jensen Holding’s shares are listed on NASDAQ
Copenhagen A/S and are traded under ISIN code
DK0010249309.
At the end of the fiscal year, the share price was DKK
77,50 against DKK 65,00 at the beginning of the year.
The market value of the share capital amounted to DKK
141 million on March 31
st
, 2022.
In 2021/22 a total of 162.078 (2020/21: 313.928) shares
were traded at a total market value of DKK 11,8 million
(2020/21: DKK 17,3 million).
Share capital and voting rights
The share capital in Glunz & Jensen amounted to
nominally DKK 36,4 million on March 31
st
, 2022. Divided
into 1.821.309 shares at a nominal value of DKK 20,00.
The shares, which are negotiable instruments without
restrictions on marketability, are issued to the holder and
entitle the holder to cast one vote per share at general
meetings.
A total of 82.409 warrants remained unallocated and
remained available during 2021/22 until they expired on
March 8
th
, 2022.
In accordance with section 198 of the Danish Companies
Act, the Board of Directors is authorized to acquire
treasury shares up to 60% of the Company’s share
capital at the market price prevailing at the date of
acquisition with a deviation of up to 10% until June 28
th
,
2023.
Glunz & Jensen did not own treasury shares at the end
of the fiscal year 2021/22 or 2020/21.
Ownership
At the end of the fiscal year, Glunz & Jensen had 560
(2020/21: 636) registered shareholders holding 95,6%
(2020/21: 95,4%) of the share capital. Glunz & Jensen
wishes to provide the best possible way of providing its
shareholders with information about the Group so that all
shareholders are encouraged to list their shares in the
Company's register of shareholders.
Change of control
The Glunz & Jensen Group has not entered into
agreements with finance companies, customers,
suppliers, employees, or others which will be affected or
changed, or which will expire if the control in the Parent
Company changes.
Decisions by the Board of Directors and proposals for
the general meeting
Dividend
Glunz & Jensen wants to create the greatest possible
value for the shareholders. Based on the Company's
financial standing and investment and liquidity
requirements, the Board of Directors therefore assesses
whether the excess liquidity, after any investments in
organic or acquisitive growth measures that can increase
the long-term return on the invested capital, must be
used to distribute dividends or repurchase of treasury
shares.
The Board of Directors proposes to the Annual General
Meeting that no dividend be distributed for fiscal 2021/22,
and the Company's profit for the year will be transferred
to next year.
Share price development since March 31
st
, 2019
Investor relations
Glunz & Jensen emphasizes to continually providing
timely, accurate and relevant information about the
Group, including its strategy, results of operations and
expectations. Through ongoing reporting, the Group
seeks to provide all stakeholders with easy access to
information, and emphasis is placed on maintaining an
active dialogue with stakeholders.
Communication with investors, analysts, the press, and
other stakeholders takes place through ongoing public
announcements, including interim reports and individual
meetings. Notices are available on the Company's
website.
Page | 22 ANNUAL REPORT 2021/22
Shareholders, analysts, investors, and other interested
parties who have questions regarding Glunz & Jensen
should contact:
Glunz & Jensen Holding A/S
Address: Selandia Park 1
DK-4100 Ringsted
Phone: +45 5768 8181
Fax: +45 5768 8340
E-mail: [email protected]
Martin Overgaard Hansen, CEO
Phone: +45 2260 8405
E-mail: mo[email protected]
Flemming Nyenstad Enevoldsen, Chairman of the Board of Directors
Phone: +45 4043 1303
E-mail: f.n.e[email protected]
Annual general meeting
The Company's Annual General Meeting will be held on Thursday, June 30
th
, 2022, at 15:00 PM at the Company's
registered address, Selandia Park 1, DK-4100 Ringsted.
Shareholders on June 8
th
, 2022
Ownership
interest (%)
Heliograph Holding GmbH, Konrad-Zuse-Bogen 18, 82152 Krailling, Germany
50,10
Strategic Investments A/S
16,05
Notified according to the section 38 of the Danish Securities Trading Act
66,15
All other shareholders
33,85
Total
100,00
Share-related key figures and financial ratios
2017/18
2018/19
2019/20
2020/21
2021/22
Average number of shares outstanding (in thousands)
1.666
1.821
1.821
1.821
1.821
Earnings per share (EPS), %
6,0
(3,8)
(10,1)
0,5
6,7
Diluted earnings per share (EPS-D), %
5,4
(3,8)
(10,1)
0,5
6,7
Cash flow per share (CFPS), %
9,9
5,8
(1,1)
8,6
12,7
Book value per share (BVPS), %
50,6
47,7
40,4
40,6
47,4
Share price per share
73
44
55
65
78
Share price /book value
1,4
0,9
1,4
1,6
1,6
Market value of average number of shares (DKK million)
133
80
100
118
141
Dividend per share
-
-
-
-
-
Pay-out ratio, %
-
-
-
-
-
ANNUAL REPORT 2021/22 Page | 23
BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT
Board of Directors
Flemming N. Enevoldsen (1961)
CEO & Non-Executive Director.
Chairman of the Board of Directors of Glunz & Jensen
Holding A/S.
Member of the Board of Directors of Glunz & Jensen
Holding A/S since 2017. Re-elected in 2021 and is up for
re-election in 2022.
Regarded as independent.
Chairman of the Board of Directors in: Insepa A/S,
Espersen A/S, Head Energy Denmark A/S, Head Energy
A/S (Norway), Business Esbjerg, ST Plast A/S, Skov
Industri A/S, Suztain A/S, ABL Food A/S, Glunz &
Jensen A/S and Selandia Park A/S.
Member of the Board of Directors in Green Genius A/S
and Jysk Display A/S.
Competences: Many years of international experience
as CEO within production and energy with expertise in
generating profit and leadership skills. 10 years of
experience in sales management roles of equipment for
the graphic arts industry – including Glunz & Jensen
products.
Randi Toftlund Pedersen (1963)
Group Senior Vice President Corporate Finance, Salling
Group A/S.
Vice-Chairman of the Board of Directors of Glunz &
Jensen Holding A/S.
Member of the Board of Directors of Glunz & Jensen
Holding A/S since 2020. Re-elected in 2021 and is up for
re-election in 2022.
Regarded as independent.
Board Member and Chairman Audit Committee in
Roblon A/S.
Chairman of the Board of Directors in Salling Group
Forsikring A/S.
Board Member in Salling Group Ejendomme A/S.
Competences: Many years of experience as CFO within
production and supply chain companies. Experience
from listed companies and within the consumer market.
Expertise in Corporate Finance, generating profit and
leadership skills.
Maximilian Rid (1961)
CEO & Non-Executive Director.
Member of the Board of Directors of Glunz & Jensen
Holding A/S since 2020. Re-elected in 2021 and is up for
re-election in 2022.
Not regarded as independent.
CEO and shareholder in MRB Holding GmbH.
Board member in several subsidiaries of Heliograph
Holding GmbH: Daetwyler Graphics AG, Lüscher
Technologies AG.
CEO and shareholder in MRGrund GmbH.
Member of the board and treasurer in European
Rotogravure Association (E.R.A.) e.V.
Competences: Many years of CEO experience with
strategy and management with particular emphasis on
international BTB sales and marketing.
Rolf Pfiffner (1969)
CEO at Daetwyler Graphics AG.
Member of the Board of Directors of Glunz & Jensen
Holding A/S since 2017. Re-elected in 2021 and is up for
re-election in 2022.
Not regarded as independent.
Board of Management in Heliograph Holding GmbH.
Competences: Many years of experience as CEO within
process and prepress technology with formation of new
companies, restructuring and acquisitions.
Thomas Haase (1971)*
Global Offset Key Account Manager
Member of the Board of Directors of Glunz & Jensen
Holding A/S since June 2021. The election period ends
in 2025.
Søren Andersen (1971)*
Product Manager Offset
Member of the Board of Directors of Glunz & Jensen
Holding A/S since January 2022. The election period
ends in 2025.
*Elected by the employees
Executive Management
Martin Overgaard Hansen (1973)
CEO of Glunz & Jensen Holdings A/S since September
1
st
, 2019.
Henrik Blegvad Funk (1964)
CFO of Glunz & Jensen Holdings A/S since April 1
st
,
2016.
All the the Board of Directors participated in all the Board of Director meetings during 2021/22.
Page | 24 ANNUAL REPORT 2021/22
Board of Directors and Executive Management;
Ownership interest in Glunz & Jensen Holding A/S
No. of shares
2021/22
2020/21
Maximilian Rid
912.500
877.533
Rolf Pfiffner
1.000
0
Flemming N. Enevoldsen
9.584
4.170
Randi Toftlund Petersen
0
0
Thomas Haase
0
0
Søren Andersen
33
33
Martin Overgaard Hansen
300
0
Henrik Blegvad Funk
0
0
ANNUAL REPORT 2021/22 Page | 25
GROUP COMPANIES
Selandia Park 1
4100 Ringsted
Tel. +45 5768 8181
www.glunz-jensen.com
Glunz & Jensen A/S
Selandia Park 1
4100 Ringsted
Tel. +45 5768 8181
www.glunz-jensen.com
Selandia Park A/S
Selandia Park 1
4100 Ringsted
Denmark
Tel. +45 5768 8181
www.glunz-jensen.com
Legal structure – all legal units owned 100%
Glunz & Jensen s.r.o.
Kosicka 50, P.O. Box 116
080 01 Presov
Slovakia
Tel. +421 51 756 3811
Glunz & Jensen, Inc.
2185 Highway 292
Inman, SC 29349
USA
Tel. +1 864 568 4638
Glunz & Jensen A/S owns 40 % of GKS International Ltd. in the
UK.
Page | 26 ANNUAL REPORT 2021/22
MANAGEMENT'S REVIEW
th
, 2022
Executive Management
Board of Directors
*Elected by the employees
ANNUAL REPORT 2021/22 Page | 27
INDEPENDENT AUDITOR'S REPORT
Report on the audit of the Consolidated Financial Statements and Parent Company Financial Statements
Opinion
Basis for opinion
Key audit matters
Page | 28 ANNUAL REPORT 2021/22
Statement on the Management's review
ANNUAL REPORT 2021/22 Page | 29
Auditor's responsibilities for the audit of the financial statements
Report on compliance with the ESEF Regulation
Page | 30 ANNUAL REPORT 2021/22
th
, 2022
CVR no. 25 57 81 98
ANNUAL REPORT 2021/22 Page | 31
INCOME STATEMENT
Note
April 1
st
- March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
2
Revenue
3,4,6
Production costs
(107.966 )
(108.543 )
Gross profit
7
Other operating income
4,6
Sales and distribution costs
(10.932 )
(10.904 )
4,6
Development costs
(1.803 )
(6.641 )
4,6
Administrative expenses
(9.402 )
(10.746 )
(9.499 )
(8.475 )
7
Other operating expenses
14
Fair value adjustments on investment properties
Operating profit/(loss)
(249 )
(675 )
15
Profit/(loss) after tax in subsidiaries
(382 )
16
Profit/(loss) after tax in associates
(17 )
8
Financial income
8
Financial expenses
(3.733 )
(4.481 )
(31 )
(31 )
Profit/(loss) before tax
9
Income taxes
(2.491 )
(9 )
(287 )
(483 )
Profit/(loss) for the year
Attributable to:
Equity holders of Glunz & Jensen Holding A/S
Total
Proposed appropriation of the loss for the year:
Retained earnings
Total
Earnings per share
10
Basic earnings per share (DKK)
10
Diluted earnings per share (DKK)
STATEMENT OF COMPREHENSIVE INCOME
Note
April 1
st
/ June 1
st
- March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
Profit/(loss) for the year
Other comprehensive income:
Items that may be reclassified to the income statement:
Other comprehensive income after tax in associates
(6 )
Exchange rate adjustments of investments in subsidiaries
(522 )
(528 )
Total other comprehensive income
(528 )
(528 )
Total comprehensive income
Attributable to:
Equity holders of Glunz & Jensen Holding A/S
Total comprehensive income
Page | 32 ANNUAL REPORT 2021/22
BALANCE SHEET
Note
March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
ASSETS
Non-current assets
Intangible assets
11
Completed development projects
Property, plant, and equipment
12
Property, plant, and equipment
13
Leased assets
14
Investment properties
Other non-current assets
15
Investments in subsidiaries
16
Investments in associates
17
Deferred tax
18
Other receivables
Total non-current assets
Current assets
19
Inventories
20
Trade receivables
Receivables from subsidiaries
18
Other receivables
Income tax
Prepayments
Cash
Total current assets
TOTAL ASSETS
ANNUAL REPORT 2021/22 Page | 33
Note
March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
LIABILITIES
21
Equity
Share capital
Translation reserve
Revaluation reserve
Retained earnings
Total equity
Non-current liabilities
17
Deferred tax
22
Provisions
23
Credit institutions
24
Other payables
25
Prepayments from customers
13
Lease liabilities
Total non-current liabilities
Current liabilities
23
Credit institutions
Trade payables
13
Lease liabilities
Income tax
22
Provisions
25
Prepayments from customers
24
Other payables
Total current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
Page | 34 ANNUAL REPORT 2021/22
STATEMENT OF CHANGES IN EQUITY
Group (DKK ‘000)
Share
capital
Retained
earnings
Revaluation
reserve
Translation
reserve
Total
Equity March 31
st
, 2020
Changes in equity 2020/21
Profit/(loss) for the year
Other comprehensive income
Other comprehensive income after tax in
associates
(6 )
(6 )
Exchange rate adjustments of investments in
subsidiaries
(522 )
(522 )
Total other comprehensive income
(528 )
(528 )
Total comprehensive income for the year
(528 )
Equity March 31
st
, 2021
Changes in equity 2021/22
Profit/(loss) for the year
Other comprehensive income
Other comprehensive income after tax in
associates
Exchange rate adjustments of investments in
subsidiaries
(522)
Total other comprehensive income
Total comprehensive income for the year
Equity March 31
st
, 2022
ANNUAL REPORT 2021/22 Page | 35
Parent Company (DKK ‘000)
Share capital
Retained
earnings
Revaluation
reserve
Translation
reserve
Total
Equity March 31
st
, 2020
-
Changes in equity 2020/21
Profit/(loss) for the year
Other comprehensive income:
Exchange rate adjustments of investments in
subsidiaries
(528 )
(528 )
Total other comprehensive income
(528 )
(528 )
Total comprehensive income for the year
(528 )
Equity March 31
st
, 2021
-
Changes in equity 2021/22
Profit/(loss) for the year
Other comprehensive income:
Exchange rate adjustments of investments in
subsidiaries
Total other comprehensive income
Total comprehensive income for the year
Equity March 31
st
, 2022
Page | 36 ANNUAL REPORT 2021/22
STATEMENT OF CASH FLOWS
Note
April 1
st
- March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
Operating activities
Profit/(loss) for the year
Adjustment for non-cash items etc.:
Amortization, depreciation, and impairment losses
Gain and loss on sale of non-current assets
(40 )
(159 )
Fair value gain on investment properties
Profit/(loss) after tax in subsidiaries
(11.120 )
Profit/(loss) after tax in associates
(26 )
Other non-cash items, net
(1.150 )
(5.255 )
Provisions
(1.740 )
Financial income
(585 )
(585 )
(1.577 )
(2.426 )
Financial expenses
Tax on operating profit
Cash flows from operating activities before changes in working
capital
(33 )
(552 )
Changes in working capital:
Changes in inventories
(4.445 )
Changes in payable and receivables from subsidiaries
(22.768 )
Changes in receivables
(3.933 )
(283 )
Changes in trade and other payables
(9.527 )
Changes in working capital
(21.434 )
Interest etc. received
Interest etc. paid
(3.197 )
(4.158 )
(9 )
(13 )
Net income tax paid
(448 )
(221 )
(323 )
(308 )
Net cash flows from operating activities
(19.881 )
2, 12
Acquisition of items of property, plant, and equipment
(627 )
(277 )
14
Acquisition of investment properties
(3.500 )
15
Capital increase in subsidiary
(10.000 )
12
Sale of items of property, plant, and equipment
Dividends from subsidiary
Net cash flows from investing activities
(4.087 )
(10.000 )
Free cash flow
13
Repayment lease liabilities
(3.786 )
(4.779 )
(238 )
(133 )
23
Change in net interest-bearing debt
(15.120 )
(11.588 )
Net cash flows from financing activities
(18.906 )
(16.367 )
(238 )
(133 )
Net cash flows generated during the year
(569 )
(14 )
Cash and cash equivalents at the beginning of the year
Exchange gains/(losses) rate on cash and cash equivalents
(24 )
Cash and cash equivalents at the end of the year
ANNUAL REPORT 2021/22 Page | 37
NOTES
1.
Significant accounting estimates and judgements
Estimates and judgements:
In applying the Group’s and the Parent Company’s accounting policies, Management is required to make judgments,
estimates and assumptions concerning the carrying amount of assets and liabilities that cannot be immediately inferred
from other sources. The judgments, estimates and assumptions made are based on historical experience and other
relevant factors which Management considers reasonable under the circumstances, but which are inherently uncertain
and unpredictable. Estimates and underlying assumptions are assessed on an ongoing basis. Changes to accounting
estimates are recognized in the reference period in which the change occurs and in future reference periods if the change
affects both the period in which the change occurs and subsequent reference periods.
Capital structure and financing:
The Group's primary loan agreement with Nordea is subject to certain conditions and three covenants, which Glunz &
Jensen must observe to maintain the loan, including financial covenants concerning the financial ratio "solvency" and the
agreed level of EBITDA and loan to value covenants. During 2021/22 Glunz & Jensen did not breach any covenant. The
budget for 2022/23 was presented to and viewed satisfactory by the Group's main banker in February 2022 and a letter
of cooperation for 2022/23 was received by Glunz & Jensen on May 12
th
, 2022. On this basis, Management considers the
Group’s funding for 2022/23 sufficient to be able to continue meeting its payment obligations and its obligations under the
financing covenants during 2022/23.
Investment properties:
For investment properties, a valuation methodology based on a discounted cash flow (DCF) model are used every year.
In 2021/22 the discount rate used was 7,5%, the yearly average rent adjustment was 2,5%, the maintenance per m
2
in
DKK was 42 and the occupancy rate was 97% (2020/21: discount rate was 7,5%, rent adjustment was 2,0%, the
maintenance per m
2
in DKK was 42 and the occupancy rate was 87%).
The most significant factor in the fair value calculation is the discount rate. Sensitivity analysis of the fair value calculation
indicates that a change in the discount rate +/- 0,5% will lead to a fair value adjustment of approximately DKK 10,5 million.
The discount rate is based on available information from commercial real estate agents and the Executive Management's
assessments. The fair values of the properties are however not based on valuations performed by independent external
valuer. Please see note 14 concerning investment properties.
Leased Property asset:
During 2021/22 the leased Property in Nyborg, Denmark was fully subleased for a two year period to external tenant. The
lease period in Nyborg ends in July 2025. The property has been tested for impairment as of March 31
st
, 2022. The
impairment is based on a valuation methodology based on a discounted cash flow (DCF). The conditions of the calculation
are utilization of and/or sublease of all of the Property during the remaining lease period. Interest rate used is 4,5%.
The most significant factor in the impairment calculation is the two-year sublease period. The sensitivity analysis of the
impairment calculation indicates depreciation impairment cost of approximately DKK 1,9 million if no sublease agreement
is made after the two-year period. Please see note 13 concerning Leased assets and note 18 concerning other
receivables.
Estimated level of expected losses on trade receivables:
Write-downs for expected losses on receivables from sales are recognized immediately in the income statement at the
same time as the receivable based on a simplified expected credit loss model. When estimating the level of receivables
that in the future is expected not to be collected Management take the following information into account; historical losses
on receivables, ageing of the receivables, access to payment securities and possibilities to off-set assets against claims.
When doing the assessment, we also evaluate the global financial situation and political environments that could impact
the recoverability.
Inventories:
In connection with the preparation of the annual report and during the year, Management regularly assesses the need for
writing down the inventory value regarding phase-out of materials, consumables, and/or finished machines. The need for
write-downs is estimated based on analysis in which last year's revenue is compared to the present composition of the
inventories. The percentage of the write-down increase depends on the number of years of revenue the inventory is
estimated to cover. If Management estimates that future revenue differs significantly compared to historical sales, e.g.,
due to planned phase-outs, this is taken into consideration in the impairment test. Normally, inventory write-downs are
made when Management estimates that the product portfolio covers more than two years' future expected revenue. Most
of the uncertainties in the impairment test relate to estimating the future revenue, the effect of phase-outs and the precision
of the write-down percentages used.
Page | 38 ANNUAL REPORT 2021/22
1.
Significant accounting estimates and judgements (continued)
Deferred tax assets:
When measuring deferred tax assets, Management considers if future earnings, based on budget and operating plans,
will make it possible to utilize the temporary differences between the carrying amount and the tax base of assets and
liabilities or tax loss-carry forwards. See note 17, which states that tax loss-carry forward are expected to be utilized by
2024/25 at the latest.
Non-current assets:
The carrying amounts of non-current assets are reviewed annually to determine whether there is any evidence of
impairment. If any such evidence exists, the recoverable amount of the asset is estimated. The recoverable amount of an
asset is the higher of its fair value less expected disposal costs and its value in use. The value in use is determined as
the present value of expected future cash flows from the asset or the cash-generating unit to which the assets belong.
Accounting policies:
In applying the Group’s and the Parent Company’s accounting policies, Management is required to make other judgments
not relating to estimates which might significantly affect amounts recognized in the annual report.
Management has made such judgments concerning:
Segments:
The Glunz & Jensen Group’s main activities lie within the Prepress market. Product area Flexo and Product area Offset,
are both part of the prepress market. All products and services are connected to setters and printing equipment. In addition
to equipment, Glunz & Jensen sells installation of the equipment, service, and spare parts. At the production facility in
Slovakia, Glunz & Jensen manufactures both Flexo and Offset equipment. Glunz & Jensen markets Flexo and Offset
through a comprehensive and worldwide network of private label partners, distributors, and dealers. Flexo and Offset
equipment are sold on a standalone basis or in conjunction with other product types. Glunz & Jensen’s service
organization provides service for both Flexo and Offset equipment. Glunz & Jensen sees an overlap between customers
within Flexo and Offset. Consequently, Glunz & Jensen has concluded that Offset and Flexo belong to the same segment.
The management of Glunz & Jensen and the internal financial reporting is organized accordingly.
Thus Glunz & Jensen Group account can be divided into two segments: prepress market and investment property,
Selandia Park.
Glunz & Jensen presents entity-wide information regarding geographical distribution of revenue and assets. However,
Glunz & Jensen's financial reporting does not include information regarding geographical markets beyond those reflected
in note 2 and geographical markets are not considered operating segments.
2.
Segment information
The Glunz & Jensen Group consists of two reportable segments: the prepress market and rental of the Selandia Park
properties.
April 1
st
, 2021 – March 31
st
, 2022
(DKK ‘000)
Prepress
market
Selandia
Park
Total
segments
Elimi-
nations
Consoli-
dated
External revenue
134.800
12.231
147.031
-
147.031
Inter-segment
-
155
155
(155)
-
Total revenue
134.800
12.386
147.186
(155)
147.031
Fair value loss on investment properties
-
-
-
-
-
Depreciation and impairment of property, plant, and
equipment
3.790
-
3.790
-
3.790
Depreciation and impairment of leased assets
2.091
-
2.091
-
2.091
Amortization and impairment of intangible assets
232
-
232
-
232
Operating profit/(loss)
7.904
9.882
17.786
-
17.786
Profit/(loss) after tax in associates
(17)
-
(17)
-
(17)
Financial income
585
-
585
-
585
Financial expenses
(2.161)
(1.572)
(3.733)
-
(3.733)
Segment profit/(loss) before tax
6.311
8.310
14.621
-
14.621
Segment assets
79.095
141.118
220.213
-
220.213
Capital expenditure
627
3.500
4.127
-
4.127
Segment liabilities
38.354
95.601
133.955
-
133.955
ANNUAL REPORT 2021/22 Page | 39
2.
Segment information (continued)
April 1
st
, 2020 – March 31
st
, 2021
(DKK ‘000)
Prepress
market
Selandia
Park
Total
segments
Elimi-
nations
Consoli-
dated
External revenue
123.947
12.999
136.946
-
136.946
Inter-segment
-
142
142
(142)
-
Total revenue
123.947
13.141
137.088
(142)
136.946
Fair value gains on investment properties
-
-
-
-
-
Depreciation and impairment of property, plant, and
equipment
3.711
-
3.711
-
3.711
Depreciation and impairment of leased assets
5.782
5.782
5.782
Amortization and impairment of intangible assets
5.387
-
5.387
-
5.387
Operating profit/(loss)
(5.835)
10.569
4.734
-
4.734
Profit/(loss) after tax in associates
26
-
26
-
26
Financial income
585
216
801
(216)
585
Financial expenses
(2.468)
(2.229)
(4.697)
216
(4.481)
Segment profit/(loss) before tax
(7.692)
8.556
864
-
864
Segment assets
74.992
137.281
212.273
-
212.273
Capital expenditure
277
-
277
-
277
Segment liabilities
39.602
98.225
137.827
-
137.827
Sales and purchases between the segments are made on terms equivalent to those that prevail in arm’s length
transactions.
Glunz & Jensen operates mainly in the European and North American markets.
External revenue is allocated to geographical areas based on the customer’s geographical location, whereas non-current
assets are allocated to geographical areas based on the geographical location of the reporting units.
Geographical distribution
(DKK ‘000)
Revenue
2021/22
Revenue
2020/21
Non-
current
assets
2021/22
March 31
st
Non-
current
assets
2020/21
March 31
st
Group
EMEA (Europe, Middle East, Africa) *
95.949
92.142
147.810
153.067
Americas
31.453
29.609
10
14
Asia and the Pacific
19.629
15.195
-
-
Total
147.031
136.946
147.810
153.081
* Selandia Park is included in EMEA.
8% of the Group's revenue relates to Denmark (2020/21: 10%).
Major customers:
Customers with a revenue of more than 10% of total revenue accounted for DKK 71,7 million in 2021/22 (2020/21: DKK
59,8 million).
Revenue:
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Type of Revenue
Sale of goods
128.262
119.707
Sale of services
6.538
4.240
Rental income from investment properties
12.231
12.999
147.031
136.946
Timing of revenue recognition
Revenue recognized at a point in time
128.262
119.707
Revenue recognized over time
18.769
17.239
147.031
136.946
Investe-
ringer
2007/08
Page | 40 ANNUAL REPORT 2021/22
3.
Production costs
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Cost of goods sold
75.648
65.499
Inventory write-downs
738
2.135
Reversed inventory write-downs
(1.128)
(1.140)
Inventory write-downs are made based on an assessment that includes expectations as to future demand and use of the
item concerned. As such expectations can change from year to year, significant fluctuations in the need for write-downs
may occur. As a result, written-down inventories are sometimes reversed.
4.
Staff costs
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
Wages and salaries
26.173
33.525
6.196
5.406
Defined contribution plans
933
1.903
302
308
Other social security costs
4.035
4.152
13
11
31.141
39.580
6.511
5.725
Staff costs are recognized as follows:
Production costs
9.150
18.225
-
-
Labor transferred to inventory
5.721
5.080
-
-
Sales and distribution costs
6.933
8.551
-
-
Product development costs
409
-
-
-
Administrative expenses
8.928
7.724
6.511
5.725
31.141
39.580
6.511
5.725
Average number of full-time employees
Remuneration of the Executive Management:
Salaries
4.222
4.077
4.222
4.077
Bonus
1.489
689
1.489
689
Remuneration of the Executive Management total
5.711
4.766
5.711
4.766
Remuneration of the Board of Directors:
Directors' fees
800
759
800
759
Total remuneration of the Board of Directors
800
759
800
759
Executive Management:
Martin Overgaard Hansen CEO of Glunz & Jensen Holding A/S since September 1
st,
2019. Henrik Blegvad Funk CFO of
Glunz & Jensen Holding A/S since April 1
st
, 2016.
There are no defined benefit plans within the Group.
During 2020/21 the Group recognized DKK 1.761 thousand in Covid-19 compensation relating to staff costs. The
compensation was recognized as other operating income. During 2021/22 DKK 347 thousand of this was reversed due
to final calculation of the Covid-19 compensation. The reversal is recognized as negative other operating income.
To tie the Board of Directors, the Executive Management, and other executive officers more closely to the Group, Glunz
& Jensen Holding A/S had set up a share-based program.
In 2017, the Group set up an incentive program for the Board of Directors, the Executive Management and two executive
officers. The program was based on warrants. A total of 185.820 warrants were issued in 2016/17, 84.624 of which were
granted to the Board of Directors, 72.364 to the Executive Management and 28.832 to the rest of the management team.
The warrant program was brought forward and excised by March 20
th
, 2018, due to the take-over bid by Heliograph
Holding GmbH as announced on February 21
st
, 2018. The exercise price was fixed at DKK 41,50 per share of nominally
DKK 20 and a risk-free interest rate at -0,30% p.a., calculated from December 30
th
, 2016, and until the warrants were in
fact exercised. The exercise price was fixed based on the listed price one day after the publication of the Q3 report on
April 27
th
, 2017, and up to May 2
nd
, 2017. The number of exercised and issued warrants by March 19
th
, 2018, were a total
of 161.309 warrants with 59.595 warrants issued to the Board of Directors, 2.830 warrants to a previous member of the
Board of Directors, 70.052 warrants issued to the Executive Management and 28.832 warrants issued to the rest of the
management team. A total of 82.409 warrants remained unallocated and remained available until March 8
th
, 2022.
ANNUAL REPORT 2021/22 Page | 41
5.
Auditor’s fee
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
Total fees to the auditors:
KPMG
644
-
233
-
EY
48
721
26
269
692
721
259
269
Statutory audit
350
458
83
115
Tax and VAT assistance
45
73
(18)
-
Other services
297
190
194
154
692
721
259
269
Group:
Non-audit services provided by KPMG amounts to DKK 294 thousand in 2021/22 relating to sundry tax advisory services
and other advisory services (2020/21: DKK 0).
Non-audit services provided by EY amounts to DKK 48 thousand in 2021/22 relating to sundry tax advisory services and
other advisory services (2020/21: DKK 263 thousand).
Parent company:
Non-audit services provided by KPMG amounts to DKK 150 thousand in 2021/22 relating to sundry tax advisory services
and other advisory services (2020/21: DKK 0).
Non-audit services provided by EY amounts to DKK 26 thousand in 2021/22 relating to sundry tax advisory services and
other advisory services (2020/21: DKK 154 thousand).
6.
Depreciation, amortization, and impairment losses
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
Amortization, intangible assets
232
5.387
-
-
Depreciation, property, plant, and equipment
2.781
3.110
-
-
Impairment losses, property, plant, and equipment
1.009
601
-
-
Depreciation, leased assets
1.863
2.944
106
121
Impairment losses, leased assets
228
2.838
110
-
6.113
14.880
216
121
Amortization, depreciation, and impairment losses are included in
the following items:
Production costs
5.291
6.699
-
-
Sales and distribution costs
231
379
-
-
Development costs
340
5.731
-
-
Administrative expenses
251
2.071
216
121
6.113
14.880
216
121
Amortizations relating to intangible assets are recognized in development costs. See notes 11, 12 and 13 concerning
impairment of intangible assets, property, plant, and equipment and leased assets.
7.
Other operating income and expenses
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Other operating income
Gain on sale of non-current assets
40
159
Glunz & Jensen S.r.l., Italy reversals of accruals (liabilities)
1.155
2.696
Covid-19 compensation from government
(347)
1.761
Other income
10
6
858
4.622
Other operating expenses
Loss on sale of non-current assets
-
-
-
-
Moder-
selskab
2007/08
tDKK.
Page | 42 ANNUAL REPORT 2021/22
7.
Other operating income and expenses (continued)
Based on the difficulties related to the current business environment in general related to Covid-19 which made normal
business operations challenging and following the past years efforts to turn Glunz & Jensen S.r.l. around and into a
profitable organization, including injecting significant amounts of cash over the past years, the Board of Directors in the
parent company (Glunz & Jensen A/S) decided to prioritize the operations in the parent company Glunz & Jensen A/S
(Denmark ) and the subsidiary Glunz & Jensen s.r.o. (Slovakia). The decision was made on May 15
th
, 2020, as the parent
company Glunz & Jensen A/S concluded that it was expected to be unable to provide further support to Glunz & Jensen
S.r.l. Following the bankruptcy act in 2020 a former employee filed a court case against Glunz & Jensen S.r.l. and Glunz
& Jensen A/S. Glunz & Jensen A/S assessed the risk and recognized provisions in the event of a negative outcome of
the court case based on legal advice from the lawyer team. The net composition of the balance sheet provisions in Glunz
& Jensen A/S led to reversals of accruals (liabilities) during 2020/21 hence adjusting the EBITDA positively in 2020/21 by
net DKK 2.696 thousand by March 31
st
, 2021.
The outcome of the court case was fully in favor of Glunz & Jensen A/S. As a result, provision of DKK 1.155 thousand
was reversed by March 31
st
, 2022.
During 2020/21 the Group recognized DKK 1.761 thousand in Covid-19 compensation relating to staff costs. The
compensation relates to productions costs (DKK 1.275 thousand), sales and distribution costs (DKK 280 thousand) and
administrative expenses (DKK 206 thousand). During 2021/22 final calculation of the Covid-19 compensation resulted in
reversal of DKK 347 thousand. The reversed compensation relates to productions costs.
8.
Financial income and expenses
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
Financial income
Interest income, cash, and cash equivalents etc.
3
8
-
-
Interest income, subleasing receivables
42
-
-
-
Interest income from subsidiaries
-
-
1.577
2.426
Foreign exchange gains
540
577
-
-
585
585
1.577
2.426
Interest on financial assets measured at amortized cost
represents
45
8
1.577
2.426
Financial expenses
Interest expenses, credit institutions
1.950
2.545
1
4
Interest expenses, leasing liabilities
536
306
22
18
Foreign exchange losses
847
984
1
-
Other financial expenses
400
646
7
9
3.733
4.481
31
31
Interest on financial liabilities measured at amortized cost
represents
2.486
2.851
23
22
9.
Tax on profit/(loss) for the year
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Parent
Company
2021/22
Parent
Company
2020/21
Tax on profit/(loss) for the year:
Current tax
1.339
22
299
323
Adjustment of tax regarding previous years
(55)
355
-
97
Adjustment of deferred tax
1.207
(368)
(12)
63
Total tax on profit/(loss) for the year
2.491
9
287
483
Analysis of tax on profit/(loss) for the year:
Tax charged at 22%
3.217
189
2.732
294
Tax effect of:
Non-deductible Profit/(loss) after tax in subsidiaries
-
-
(2.446)
84
Non-taxable income and non-deductible expenses
(710)
(376)
1
8
Non-recognized deferred tax asset in foreign subsidiaries
(28)
3
-
-
Adjustment of tax calculated for foreign subsidiaries against 22%
67
(162)
-
-
Tax relating to previous years
(55)
355
-
97
2.491
9
287
483
Effective tax rate
17,0%
1,0%
2,3%
36,1%
ANNUAL REPORT 2021/22 Page | 43
9.
Tax on profit/(loss) for the year (continued)
Group:
The effective tax rate for 2021/22 increased to 17% from 1% in 2020/21 due to adjustments of non-taxable income and
non-deductible expenses and adjustments of tax relation to prior years.
Parent:
The effective tax rate for 2021/22 decreased to 2% from 36% in 2020/21 due to the development in non-deductible
Profit/(loss) after tax in subsidiaries.
10.
Earnings per share
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Profit/(loss) for the year
12.130
855
Average number of shares
1.821
1.821
Average number of outstanding shares
1.821
1.821
Average dilutive effect of outstanding warrant program shares
-
-
Average number of outstanding shares, diluted
1.821
1.821
Earnings per share (EPS) (DKK)
6,7
0,5
Diluted earnings per share (EPS-D) (DKK)
6,7
0,5
11.
Intangible assets
(DKK ‘000)
Completed
develop-
ment
projects
Total
Group
Total cost on April 1
st
, 2020
49.090
49.090
Disposals
(42.263)
(42.263)
Total cost on March 31
st
, 2021
6.827
6.827
Amortization and impairment losses on April 1
st
, 2020
43.471
43.471
Amortization for the year
5.387
5.387
Depreciation of disposals
(42.263)
(42.263)
Amortization and impairment losses on March 31
st
, 2021
6.595
6.595
Carrying amount on March 31
st
,
2021
232
232
Total cost on April 1
st
, 2021
6.827
6.827
Disposals
(6.827)
(6.827)
Total cost on March 31
st
, 2022
-
-
Amortization and impairment losses on April 1
st
, 2021
6.595
6.595
Amortization for the year
232
232
Depreciation of disposals
(6.827)
(6.827)
Amortization and impairment losses on March 31
st
, 2022
-
-
Carrying amount on March 31
st
, 2022
-
-
Group
Development projects:
Amortization relating to development projects is recognized in development costs.
Development costs of DKK 1.803 thousand (2020/21: DKK 6.641 thousand) were incurred in 2021/22. Hereof, DKK 0
(2020/21: DKK 0) are recognized in the balance sheet and DKK 1.803 thousand (2020/21: DKK 6.641 thousand) are
recognized in the income statement as development costs.
Disposals for the year mainly refer to the fully amortized completed development projects which were recognized as part
of the acquisition of the former subsidiary Glunz & Jensen Microflex A/S.
On March 31
st
, 2021, Management tested the carrying amount of development projects. Project development plans and
revenue budget approved by Management were compared to the project development processes, which included a follow-
up on expenses incurred, time schedules and project completion.
Page | 44 ANNUAL REPORT 2021/22
12.
Property, plant, and equipment
(DKK ‘000)
Land and
buildings
Other
fixtures
and fittings,
tools, and
equipment
Leasehold
improve-
ments
Total
Group
Total cost on April 1
st
, 2020
33.537
30.633
4.305
68.475
Foreign exchange adjustments
(152)
(88)
-
(240)
Additions
186
91
-
277
Disposals
-
(10.547)
(561)
(11.108)
Total cost on March 31
st
, 2021
33.571
20.089
3.744
57.404
Depreciation and impairment losses on April 1
st
, 2020
24.602
29.829
1.478
55.909
Foreign exchange adjustments
(118)
(84)
-
(202)
Depreciation for the year
2.110
251
749
3.110
Impairment for the year
-
-
601
601
Depreciation of disposals
-
(10.229)
(561)
(10.790)
Depreciation and impairment losses on March 31
st
, 2021
26.594
19.767
2.267
48.628
Carrying amount on March 31
st
, 2021
6.977
322
1.477
8.776
Total cost on April 1
st
, 2021
33.571
20.089
3.744
57.404
Foreign exchange adjustments
3
29
-
32
Additions
51
576
-
627
Disposals
-
(2.237)
(3.744)
(5.981)
Total cost on March 31
st
, 2022
33.625
18.457
-
52.082
Depreciation and impairment losses on April 1
st
, 2021
26.594
19.767
2.267
48.628
Foreign exchange adjustments
3
26
-
29
Depreciation for the year
2.113
200
468
2.781
Impairment for the year
-
-
1.009
1.009
Depreciation of disposals
-
(2.237)
(3.744)
(5.981)
Depreciation and impairment losses on March 31
st
, 2022
28.710
17.756
-
46.466
Carrying amount on March 31
st
, 2022
4.915
701
-
5.616
Group:
The carrying amount of land and buildings amounting to DKK 4.915 thousand (March 31
st
, 2021: DKK 6.977 thousand)
had a registered mortgage on March 31
st
, 2022. The value of the relating collateral was DKK 5.160 thousand on March
31
st
, 2022 (March 31
st
, 2021: DKK 6.297 thousand).
On March 31
st
, 2022, Management tested the carrying amount of Property, plant, and equipment. In fiscal 2021/22,
impairment testing showed a need to recognize an impairment loss of DKK 1.009 thousand due to sublease of the leased
premises in Nyborg, Denmark. In fiscal 2020/21, impairment testing of Property, plant, and equipment showed a need to
recognize an impairment loss of DKK 601 thousand.
ANNUAL REPORT 2021/22 Page | 45
13.
Leased assets
(DKK ‘000)
Property
Other
fixtures
and fittings,
tools, and
equipment
Total
Group
Adjusted balance on April 1
st
, 2020
12.278
2.682
14.960
Foreign exchange adjustments
(2)
0
(2)
Additions
-
602
602
Disposals
-
(523)
(523)
Depreciation for the year
(3.873)
(684)
(4.557)
Impairment for the year
(2.451)
(387)
(2.838)
Carrying amount on March 31
st
, 2021
5.952
1.690
7.642
Balance on April 1
st
, 2021
5.952
1.690
7.642
Foreign exchange adjustments
-
-
-
Additions
1.022
318
1.340
Disposals
-
(266)
(266)
Transfer to Other receivables (Subleasing)
(4.693)
-
(4.693)
Depreciation for the year
(1.299)
(564)
(1.863)
Impairment for the year
-
(228)
(228)
Carrying amount on March 31
st
, 2022
982
950
1.932
Parent
Adjusted balance on April 1
st
, 2020
-
-
-
Additions
-
413
413
Depreciation for the year
-
(121)
(121)
Carrying amount on March 31
st
, 2021
-
292
292
Balance on April 1
st
, 2021
-
292
292
Additions
-
318
318
Disposals
-
(113)
(113)
Depreciation for the year
-
(106)
(106)
Impairment for the year
-
(110)
(110)
Carrying amount on March 31
st
, 2022
-
281
281
March 31
st
(DKK ‘000)
Group
2022
Group
2021
Parent
Company
2022
Parent
Company
2021
Expected maturity:
Due within 1 year or less
2.585
3.537
87
133
Due within 1-5 years
5.865
7.586
214
187
Due after 5 years
-
-
-
-
Total non-discounted leasing liabilities March 31
st
8.450
11.123
301
320
Leasing liabilities recognized in the balance sheet:
Long-term liabilities
5.206
6.805
204
169
Short-term liabilities
2.423
2.999
75
121
Total liabilities
7.629
9.804
279
290
Leasing liabilities recognized in income statement:
Interest
536
324
22
18
Cost relating to leasing agreements with a term of less than 12
months or low value
36
117
-
-
Moder-
selskab
2012
tDKK,
Group:
In fiscal 2021/22, payments related to leases amounted to DKK 3.786 thousand (2020/21: DKK 4.779 thousand) of which
interest payments relating to recognized lease liabilities accounted for DKK 536 thousand (2020/21: DKK 324 thousand)
and repayment of recognized lease liabilities account for DKK 3.250 thousand (2020/21: DKK 4.455 thousand).
The weighted average discount rate applied is 5%.
On March 31
st
, 2022, Management tested the carrying amount of leased assets. In fiscal 2021/22, impairment testing
showed a need to recognize an impairment loss of DKK 228 thousand due to early termination of lease agreements.
(2020/21: DKK 2.838 thousand)
Page | 46 ANNUAL REPORT 2021/22
13.
Leased assets (continued)
Finance lease:
During 2021/22, the Group has sub-leased a building that has been presented as part of a right-of-use asset – property,
plant, and equipment for a two-year period.
During 2021/22, the Group recognized a gain of DKK 0 (2020/21: DKK 0) on derecognition of the right-of-use asset
pertaining to the building. During 2021/22, the Group recognized interest income on lease receivables of DKK 42 thousand
(2020/21: DKK 0).
The following table sets out a maturity analysis of lease receivables, showing the undiscounted lease payments to be
received after the reporting date.
March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Due within 1 year or less
1.893
-
Due within 1-2 years
1.767
-
Due after 3 years
-
-
Total non-discounted lease receivable
3.660
-
Unearned finance income
612
-
Net investment in the lease
3.048
-
Moder-
selskab
2012
tDKK,
Parent Company:
In fiscal 2021/22, payments related to leases amounted to DKK 238 thousand (2020/21: DKK 151 thousand), of which
interest payments relating to recognized lease liabilities accounted for DKK 22 thousand (2020/21: DKK 18 thousand) and
repayment of recognized lease liabilities account for DKK 216 thousand (2020/21: DKK 133 thousand).
The weighted average discount rate applied is 5%.
On March 31
st
, 2022, Management tested the carrying amount of leased assets. In fiscal 2021/22, impairment testing
showed a need to recognize an impairment loss of DKK 110 thousand due to early termination of lease agreements.
(2020/21: DKK 0).
14.
Investment properties
(DKK ‘000)
Group
2021/22
Group
2020/21
Opening balance on April 1
st
137.000
137.000
Additions (subsequent expenditure)
3.500
-
Reevaluation reclassified property measured at fair value
-
-
Closing balance on March 31
st
140.500
137.000
Direct operating expenses (including repairs and maintenance) that did not generate rental
income (included in administrative expenses)
2.504
2.572
The investment properties are located in Ringsted. Selandia Park A/S was established on June 1
st
, 2016. Selandia Park
A/S' business objective is to invest in and operate a property portfolio.
97% of the investment properties were leased to tenants on March 31
st
, 2022 (2020/21: 87%). Own-use of the properties
are 2% on March 31
st
, 2022 (2020/21: 3%).
During 2021/22 all the tenant – except for one – have renewed their rental contracts thus extending the expiration dates
of the rental contracts to 2026 at the earliest and to 2033 respectively. One of the extended agreements include
improvement plan which initially is partly financed by Selandia Park A/S. The additions of DKK 3.500 thousand refer to
this agreement. The discounted cash flow (DCF) model includes the repayment schedule for the improvement.
The carrying amount of investment properties amounting to DKK 140.500 thousand had a registered mortgage on March
31
st
, 2022 (March 31
st
, 2021: DKK 137.000 thousand). The value of the relating collateral was DKK 56.312 thousand at
March 2022 (March 31
st
, 2021: DKK 61.736 thousand).
Please see note 1 Significant accounting estimates and judgements “Investment properties” and note 2 Segments “Rental
of the Selandia Park properties”.
ANNUAL REPORT 2021/22 Page | 47
15.
Investment in subsidiaries
Parent Company (DKK ‘000)
Profit/(loss)
for the year
after tax
2021/22
Equity
2021/22
Profit/(loss)
for the year
after tax
2020/21
Equity
2020/21
Glunz & Jensen A/S, Ringsted, Denmark
4.659
8.504
(7.056)
(6.405)
Selandia Park A/S, Ringsted, Denmark
6.461
45.517
6.674
39.056
11.120
54.021
(382)
32.651
Ownership interest is 100% for both 2021/22 and 2020/21.
Parent
company
2021/22
Parent
company
2020/21
Total cost on April 1
st
120.000
120.000
Increase capital
10.000
-
Total cost on March 31
st
130.000
120.000
Adjustments on April 1
st
(87.349)
(66.439)
Profit/(loss) for the year
11.120
(382)
Dividend from subsidiaries??text
-
(20.000)
Foreign exchange adjustments
250
(528)
Adjustments on March 31
st
(75.979)
(87.349)
Carrying value on March 31
st
54.021
32.651
Net deficit on equity against receivables from subsidiaries
-
6.405
Carrying value on March 31
st
54.021
39.056
As of March 31
st
, 2022, the difference on initial recognition of the subsidiaries totaled DKK 0 thousand.
No tax liability will be incurred on realization of the Parent Company’s investments in subsidiaries at carrying amount
(2020/21: DKK 0 thousand).
In May 2021 Glunz & Jensen A/S were granted a tax-free group contribution of DKK 10.000 thousand.
16.
Investments in associates
The Group's investments in associates are measured using the equity method.
March 31
st
(DKK ‘000)
Group
2022
Group
2021
GKS International Ltd, UK (40% ownership interest)
244
259
244
259
As the associate's revenue is less than 1% of consolidated revenue, the Management evaluates that the associates are
not significant for which reason no further information is disclosed regarding this entity.
Page | 48 ANNUAL REPORT 2021/22
17.
Deferred tax
(DKK ‘000)
Group
2022
Group
2021
Parent
Company
2022
Parent
Company
2021
Deferred tax on April 1
st
(3.393)
(3.739)
(196)
(133)
Foreign exchange adjustments
8
(22)
-
-
Tax income/(expense) during the period recognized in profit or
loss
(1.207)
368
12
(63)
Deferred tax on March 31
st
(4.592)
(3.393)
(184)
(196)
Breakdown of deferred tax and recognition in the balance sheet:
Deferred tax asset
1.051
995
-
-
Deferred tax liability
(5.643)
(4.388)
(184)
(196)
Total on March 31
st
(4.592)
(3.393)
(184)
(196)
__ Group
___ 2018
The value of tax loss carry-forwards has been recognized as a deferred tax asset in the companies where, based on the
budget, it is considered very likely that they can be set off against future earnings and where a history of profit before tax
in the last three years has been verified. The value of tax loss carry-forwards, DKK 5.058 thousand at March 31
st
, 2022
(March 31
st
, 2021: DKK 5.592 thousand), has not been recognized as a deferred tax asset, as it is not considered likely
that they will be utilized.
(DKK ‘000)
Intangible
assets
Property,
plant, and
equipment
Current
assets
Liabilities
Tax loss
carry-
forwards
etc.
Total
Group
Deferred tax on April 1
st
, 2020
(1.436)
(7.352)
(322)
700
4.671
(3.739)
Foreign exchange adjustments
-
(3)
(19)
-
-
(22)
Recognized in profit/(loss) for the
year, net
1.385
1.619
508
(393)
(2.751)
368
Deferred tax on March 31
st
, 2021
(51)
(5.736)
167
307
1.920
(3.393)
Deferred tax on April 1
st
, 2021
(51)
(5.736)
167
307
1.920
(3.393)
Foreign exchange adjustments
-
-
8
-
-
8
Recognized in profit/(loss) for the
year, net
51
(1.383)
(51)
(62)
238
(1.207)
Deferred tax on March 31
st
, 2022
-
(7.119)
124
245
2.158
(4.592)
Parent Company
Deferred tax on April 1
st
, 2020
-
-
-
(133)
-
(133)
Recognized in profit/(loss) for the
year, net
-
-
-
(63)
-
(63)
Deferred tax on March 31
st
, 2021
-
-
-
(196)
-
(196)
Deferred tax on April 1
st
, 2021
-
-
-
(196)
-
(196)
Recognized in profit/(loss) for the
year, net
-
-
-
12
-
12
Deferred tax on March 31
st
, 2022
-
-
-
(184)
-
(184)
18.
Other receivables
March 31
st
(DKK ‘000)
Group
2022
Group
2021
Parent
Company
2022
Parent
Company
2021
Non-current other receivables:
Sub-leasing receivable
3.205
-
-
-
Deposit regarding leased property
155
3.360
-
-
-
Current other receivables:
Sub-leasing receivable
1.373
-
-
-
VAT and other receivables (authorities)
1.562
1.244
-
-
Other receivables
472
-
-
-
3.407
1.244
-
-
In March 2022 the Property in Nyborg, Denmark was fully subleased for a two-year period leading to reclassification of
leased property asset to other receivables.
Please see note 1 Significant accounting estimates and judgements “Leased Property asset” and note 13 Leased
assets.
ANNUAL REPORT 2021/22 Page | 49
19.
Inventories
March 31
st
(DKK ‘000)
Group
2022
Group
2021
Raw materials and consumables
31.437
31.151
Finished goods and semi-manufacture goods
9.577
5.295
Total
41.014
36.446
Inventories recognized at net realizable value
124
97
20.
Trade receivables
(DKK ‘000)
Group
2022
Group
2021
Trade receivables, gross
21.403
18.503
Changes in credit loss allowance:
Allowance on April 1
st
(1.081)
(2.873)
Additions in the year
(27)
(77)
Realized losses in the year
258
-
Reversal in the year
218
1.869
Allowance on March 31
st
(632)
(1.081)
Trade receivables, net
20.771
17.422
The credit risk of the various trade receivables is mainly associated with the customer's geographical location.
Breakdown of trade receivables, net, based on the customer’s geographical location:
March 31
st
(DKK ‘000)
Group
2022
Group
2021
Western Europe
11.550
9.607
Eastern Europe
1.122
977
North America
2.804
3.052
Asia and Pacific
3.687
1.421
Rest of the world
1.608
2.365
Trade receivables, net
20.771
17.422
The write down in 2021/22 is based on historical observed default rates adjusted for estimates of uncertainties in project
related activities and market conditions.
As of March 31
st
, 2022, 22,3% of the trade receivables are due (March 31
st
, 2021, 17,5%).
In the expected default rate is included effect of Covid-19 and the war in Ukraine.
(DKK ‘000)
Expected
default rate
Trade
receivables
gross
Expected
loss
Trade
receivables
net
Maturity of trade receivables on March 31
st
, 2021:
Not due
1,5%
14.403
220
14.182
Due 0-30 days
9,4%
2.692
255
2.438
Due 30-60 days
20,9%
63
13
50
Due more than 60 days
44,1%
1.345
593
752
18.503
1.081
17.422
Maturity of trade receivables on March 31
st
, 2022:
Not due
1,4%
16.233
244
15.989
Due 0-30 days
6,9%
5.050
340
4.710
Due 30-60 days
20,2%
1
0
1
Due more than 60 days
40,3%
119
48
71
21.403
632
20.771
No loss is expected on receivables from subsidiaries in the Parent Company
See to note 27, section debtor risks.
Page | 50 ANNUAL REPORT 2021/22
21.
Share capital and treasury shares
The share capital in Glunz & Jensen Holding A/S consists of 1.821.309 shares as of March 2022 and likewise in March
2021, representing a nominal value of DKK 20 each. The total nominal value is DKK 36.426 thousand. No shares carry
any special rights. All shares are fully paid.
As of March 31
st
,
2022, and on March 31
st
, 2021, Glunz & Jensen Holding A/S hold no treasury shares.
Movements in the share capital during the last 5 years:
Number of
shares
Nominal
value
Capital increase in 2017/18
161.309
3.226.180
Disposal of treasury shares in 2017/18
6.617
132.340
Glunz & Jensen Holding A/S has been authorized by the shareholders to acquire up to 25% of its treasury shares.
Please see to note 27 under the "Capital management" section.
22.
Provisions
(DKK ‘000)
Group
2022
Group
2021
Parent
Company
2022
Parent
Company
2021
Warranty commitments on April 1
st
985
1.329
-
-
Additions
1.098
52
-
-
Disposals
(638)
(396)
-
-
Warranty commitments on March 31
st
1.445
985
-
-
Restructuring on April 1
st
1.598
7.021
-
-
Foreign exchange adjustments
-
(23)
-
-
Additions
-
443
-
-
Reversals
(1.155)
(4.004)
-
-
Paid
(443)
(1.839)
-
-
Restructuring on March 31
st
-
1.598
-
-
Provisions on March 31
st
1.445
2.583
-
-
Breakdown of provisions by non-current and current liabilities:
Non-current liabilities
361
246
-
-
Current liabilities
1.084
2.337
-
-
Provisions on March 31
st
1.445
2.583
-
-
Warranties
A provision has been made for warranty commitments to cover contract-related warranty for goods already delivered.
Warranty commitments are recognized as the goods are sold and are calculated based on historical warranty costs. The
warranty commitments cover a period from 6 months to 2 years after delivery of the goods.
Warranty commitments comprise commitments under ordinary product guarantees of up to 1-2 years. The commitments
are calculated based on historical warranty costs and are assessed for specific matters. The expenses are expected to
be incurred over the next two years.
Restructuring
Provisions for restructuring costs in 2020/21 related to severance cost. Following the bankruptcy act in 2020 in Glunz &
Jensen S.r.l. a former employee filed a court case against Glunz & Jensen. The court proceedings ended in 2021/22 with
positive outcome for Glunz & Jensen and as a result provision of DKK 1.155 thousand is reversed. The reversal is
recognized under operating income.
Reversals of restructuring costs in 2020/21 also refer to Glunz & Jensen S.r.l., Italy due to bankruptcy.
ANNUAL REPORT 2021/22 Page | 51
23.
Credit institutions
(DKK ‘000)
Due within
1-5 years
Due after
5 years
Due after 1
year, total
Due within
1 year
Total
Group
Credit institutions on March 31
st
, 2021:
Credit institutions (DKK), floating rate 3%
21.580
34.737
56.317
21.592
77.909
Credit institutions (USD), floating rate 7%
-
-
-
64
64
Credit institutions (GBP), floating rate 7%
-
-
-
2.828
2.828
Credit institutions (EUR), floating rate 3%
-
-
-
6.514
6.514
21.580
34.737
56.317
30.998
87.315
Credit institutions on March 31
st
, 2022:
Credit institutions (DKK), floating rate 2%
21.573
29.312
50.885
13.578
64.463
Credit institutions (USD), floating rate 4%
-
-
-
9
9
Credit institutions (GBP), floating rate 4%
-
-
-
504
504
Credit institutions (EUR), floating rate 2%
-
-
-
7.220
7.220
21.573
29.312
50.885
21.311
72.196
(DKK ‘000)
March 31
st
,
2020
Cash flows
Non-cash
items
March 31
st
,
2021
Group
Non-current credit institutions
61.683
(5.366)
-
56.317
Current credit institutions
37.243
(6.222)
(23)
30.998
98.926
(11.588)
(23)
87.315
March 31
st
,
2021
Cash flows
Non-cash
items
March 31
st
,
2022
Group
Non-current credit institutions
56.317
(5.432)
-
50.885
Current credit institutions
30.998
(9.688)
1
21.311
87.315
(15.120)
1
72.196
The Parent Company has no credit facilities.
24.
Other payables
March 31
st
(DKK ‘000)
Group
2022
Group
2021
Parent
Company
2022
Parent
Company
2021
Non-current other payables:
Holiday pay
2.142
2.396
-
-
VAT and other payables toward authorities
871
-
155
-
Other payables
151
163
-
-
3.164
2.559
155
-
Current other payables:
Wages, salaries, holiday pay etc.
6.157
5.153
2.797
2.061
Accrued employee taxes
57
907
-
155
VAT and other payables toward authorities
4.218
1.234
2.638
858
Other payables
5.454
2.066
257
226
15.886
9.360
5.692
3.300
Page | 52 ANNUAL REPORT 2021/22
25.
Prepayments from customers
March 31
st
(DKK ‘000)
Group
2022
Group
2021
Non-current prepayments from customers:
Prepayment from tenants in Selandia Park
4,817
6.176
4,817
6.176
Current prepayments from customers:
Prepayments from customers in connection with the sale of
goods and services
6.784
2.896
Prepayment from tenants in Selandia Park
2.323
2.042
9.107
4.938
In 2012/13, Selandia Park rebuilt one office facility for an external tenant. Part of the rebuilding of the office was paid by
the tenant upfront. The prepayment will be recognized as revenue by 2023/24.
26.
Contingent liabilities and collateral
Group:
The shares in Glunz & Jensen A/S and Selandia Park A/S are pledged as security towards the main bank, Nordea. The
Group has provided a company charge of DKK 35,0 million secured upon the Company’s inventories, goodwill, domain
names and rights, fixtures, and operating equipment as well as unsecured claims relating to the sale of goods and services
at a carrying amount of DKK 3,3 million. The company charge of DKK 35,0 million has been provided as security for credit
facility of which 10,7 million has been drawn.
Please refer to note 12, Property, plant, and equipment and 14 Investment properties regarding collateral mortgage.
The Group is a party to a limited number of lawsuits and disputes. In Management’s opinion, these lawsuits and disputes
will not significantly affect the financial position of the Group.
Parent Company:
The Parent Company acts as guarantor for the subsidiaries’ credit facilities. The financial guarantee on March 31
st
, 2022,
amounted to DKK 30,0 million of which 10,7 million has been drawn (March 31
st
, 2021: DKK 32,5 million of which DKK
19,3 million has been drawn).
The Parent Company acts as management company for the jointly taxed Danish companies. Pursuant to the provisions
of the Danish Corporate Income Tax Act, the Parent Company is thus liable to withhold tax at source on interest, royalties,
and dividend for the jointly taxed companies for contingent liabilities and to withhold income taxes. The Parent Company
recognized jointly tax receivables in the balance sheet amounting to DKK 0 on March 31
st
, 2022 (March 31
st
, 2021: DKK
0,0 million). The Parent Company's liability regarding joint tax may be impacted by future corrections of the taxable income.
The companies in the joint taxation arrangement are not subject to withholding tax on dividend, interest, or royalties.
Please refer to note 12, Property, plant, and equipment and 14 Investment properties regarding collateral mortgage.
The Parent Company is a party to a limited number of disputes. In Management’s opinion, these disputes will not
significantly affect the financial position of the Parent Company.
27.
Financial risks and financial instruments
Risk management policy:
As a result of its operating, investing, and financing activities, the Group is exposed to various financial risks, including
market risks, credit risks and liquidity risks. It is the Group’s policy not to speculate actively in financial risks. The Group’s
financial risk management is thus aimed exclusively at managing the financial risks that are a direct consequence of the
Group’s operating, investing, and financing activities.
Currency risk:
The Group’s currency risk consists of transaction risks and currency translation risks.
The main part of the Group's sales is invoiced in EUR and USD. In 2021/22, approx. 81% of sales were invoiced in EUR
and approx. 10% in USD (2020/21: 79 % in EUR and 11% in USD).
The main part of the Group's expenses is paid in EUR (51%), DKK (39%) and USD (8%). In 2021/22, expenses paid in
DKK, USD and EUR amounted to 98% of total expenses (2020/21: 98%). As Management considers the EUR/DKK
exchange rate to be fixed, the Group's exposure to currency risks is limited.
As part of the Group’s currency policy, Glunz & Jensen seeks only to reduce the impact of exchange rate fluctuations
(EUR exempted) on its profits and financial position via financial instruments when the risk is assesses as unacceptable.
As in 2021/22, future currency transactions are currently not hedged. Due to the foreign subsidiaries, Glunz & Jensen is
exposed to currency translation risks insofar as part of the Group’s earnings and net assets derive from these foreign
subsidiaries and, therefore, are translated and included in the consolidated financial statements, which are presented in
DKK.
ANNUAL REPORT 2021/22 Page | 53
27.
Financial risks and financial instruments (continued)
An increase in the USD rate of 10% is estimated, all else being equal, to affect the Group's operating profit by approx.
DKK 0,1 million (2020/21: DKK 0,5 million). The estimate is based on the level of USD Profit/(loss) transactions in 2021/22.
Based on the Group’s USD exposure at the balance sheet date, the impact of a hypothetical fluctuation of 10% of the
USD/DKK exchange rate on the profit/(loss) for the year and consolidated equity amounts to DKK 0 regarding cash and
receivables (2020/21: DKK 0,1 million) and DKK 0 regarding financial liabilities (2020/21: DKK 0), respectively.
Interest rate risk:
As a result of its investing and financing activities, the Group is exposed to interest rate fluctuations. Net interest-bearing
debt on March 31
st
, 2022, amounted to DKK 71,4 million (March 31
st
, 2021: DKK 86,5 million).
During 2018/19 Selandia entered into a DKK 74,0 million floating-rate, 14-year DKK-based bond loan. All of the interest-
bearing debt earns interest at floating rates.
A 1 percentage point change in the general interest rate level relative to the balance sheet date is estimated to affect the
Group's profit/(loss) for the year by DKK 0,6 million and consolidated equity by DKK 0,6 million based on financial
commitments at March 31
st
, 2022 (March 31
st
, 2021: an effect on the profit/(loss) for the year of DKK 0,8 million and
consolidated equity of DKK 0,8 million). The estimate does not include adjustments concerning repayment and borrowing.
Credit risk:
The Group may realize losses if trade and other receivables are not settled. The majority of the Group’s goods and
services are sold to large companies with which Glunz & Jensen has long-term relationships. The four largest customers
account for approx. 56% of total revenue. The Group normally requires prepayment from new customers.
Based on the Group's internal credit procedures, the credit risk associated with the various trade receivables mainly
relates to the customer's geographical location. Trade receivables deemed to have a high credit quality (low risk) are
estimated to relate to Western Europe and North America. Conversely, trade receivables relating to Asia, Eastern Europe
and rest of the world are deemed to have a lower credit quality (medium and high risk). As part of the Group's risk
management, past due receivables are monitored monthly. Historically, the Group has realized only minor credit losses
related to trade receivables. Please refer to note 20 regarding the credit quality of trade receivables.
Liquidity risk:
Liquidity risk is the risk that Glunz & Jensen will be unable to meet its obligations as they fall due because of its inability
to liquidate assets or obtain adequate funding.
The Group's primary loan agreement with Nordea is subject to certain conditions and three covenants, which Glunz &
Jensen must observe to maintain the loan, including financial covenants concerning the financial ratio "solvency" and the
agreed level of EBITDA and loan to value covenants. During 2021/22 Glunz & Jensen did not breach any covenant. The
budget for 2022/23 was presented to and viewed satisfactory by the Group's main banker in February 2022 and a letter
of cooperation for 2022/23 was received by Glunz & Jensen on May 12
th
, 2022. On this basis, Management considers the
Group’s funding for 2022/23 sufficient to be able to continue meeting its payment obligations and its obligations under the
financing covenants during 2022/23.
The Group's interest-bearing liabilities amounted to DKK 72,2 million on March 31
st
, 2022 (March 31
st
, 2021: DKK 87,3
million).
On March 31
st
, 2022, the Group's credit facilities amounted to DKK 93,7 million (March 31
st
, 2021: DKK 101,7 million) of
which DKK 72,2 million has been drawn (March 31
st
, 2021: DKK 87,3 million). The liquidity reserve amounted to DKK 21,5
million on March 31
st
, 2022 (March 31
st
, 2021: DKK 14,4 million).
The liabilities fall due as follows:
Group
(DKK ‘000)
Carrying
amount
Payment
obligation
In 1 year
or less
1-5 years
Over 5
years
On March 31
st
, 2021
Non-derivative financial instruments:
Credit institutions and banks
87.315
88.773
32.459
21.577
34.737
Lease liabilities
9.804
11.123
3.537
7.586
-
Trade payables
11.147
11.147
11.147
-
-
Total
108.266
111.043
47.143
29.163
34.737
On March 31
st
, 2022
Non-derivative financial instruments:
Credit institutions and banks
72.196
72.742
21.857
21.573
29.312
Lease liabilities
7.629
8.450
2.585
5.865
-
Trade payables
13.105
13.105
13.105
-
-
Total
92.930
94.297
37.547
27.438
29.312
Page | 54 ANNUAL REPORT 2021/22
27.
Financial risks and financial instruments (continued)
Parent Company
(DKK ‘000)
Carrying
amount
Payment
obligation
In 1 year
or less
1-5 years
Over 5
years
On March 31
st
, 2021
Non-derivative financial instruments:
Lease liabilities
290
320
133
187
Trade payables
118
118
118
-
-
Total
408
438
251
187
-
On March 31
st
, 2022
Non-derivative financial instruments:
Lease liabilities
279
301
87
214
Trade payables
51
51
51
-
-
Total
330
352
138
214
-
The maturity analysis is based on undiscounted cash flows, including estimated interest payments. Interest payments are
based on current market conditions.
The Group did not enter into any new long-term debt agreements in 2021/22.
Management believes that the Group has sufficient cash resources to cover planned operations and ongoing investments.
Capital management:
It is the Group's policy that capital is distributed to the shareholders via dividends or that Glunz & Jensen purchases
treasury shares if and when earnings justify it. This means that during periods of low and unstable income, the equity ratio
must be high, while it may be reduced if earnings stabilize at a higher level than achieved in recent years.
On March 31
st
, 2022, the equity ratio was 39,2% (2020/21: 34,8%). Based on the performance during 2021/22 and the
outlook for 2022/23, the Board of Directors proposes to the Annual General Meeting that no dividend be distributed for
fiscal 2021/22.
Fair values:
There was no difference between the fair values and the carrying amounts of financial assets and liabilities on March 31
st
,
2022, or on March 31
st
, 2021. Short-term, floating-rate bank loans are measured at price of 100. The methods used are
unchanged compared with last year.
Group
(DKK ‘000)
Fair value measurement hierarchy for assets and liabilities using:
Observable
inputs
(Level 2)
Un-
observable
inputs
(Level 3)
Total
At March 31
st
, 2021
Non-current assets:
Investments Properties
-
137.000
137.000
Total Non-current assets
-
137.000
137.000
At March 31
st
, 2022
Non-current assets:
Investments Properties
-
140.500
140.500
Total Non-current assets
-
140.500
140.500
There are no fair value measurement hierarchy for assets and liabilities in the parent company.
ANNUAL REPORT 2021/22 Page | 55
28.
Related parties
Group:
The Group's related parties include the members of the Board of Directors and the Executive Management and their close
family members.
Apart from contracts of employment, no transactions were entered into between the Group and the Executive
Management in the year. Remuneration to the Board of Directors and the Executive Management is disclosed in note 4.
Heliograph Holding GmbH owns 50,1% of the share capital and hence can exercise control over the Group. No
transactions have taken place between the Group and Heliograph Holding GmbH during 2021/22 and 2020/21.
On March 31
st
, 2022, the following shareholders owned more than 5% of Glunz & Jensen Holding A/S' share capital and
voting rights:
Heliograph Holding GmbH 50,1%.
Related party transactions are carried through on arm’s length basis.
Further, the associate GKS International Ltd. is a related party. Transactions with associates:
April 1
st
– March 31
st
(DKK ‘000)
Group
2021/22
Group
2020/21
Sale of parts and services
36
23
Parent Company:
In addition to the above, related parties of the Parent Company include subsidiaries as mentioned in note 14 and
associates. The Danish group companies are jointly taxed. On March 31
st
, 2022, tax of DKK 0 was transferred between
the Parent Company and the Danish subsidiaries (March 31
st
, 2021: DKK 0,0 million).
There were no transactions between the Parent Company and associates during 2021/22.
Related party transactions are carried through on arm’s length basis.
April 1
st
– March 31
st
(DKK ‘000)
Parent
Company
2021/22
Parent
Company
2020/21
Sale of services to subsidiaries
9.250
7.800
Interest income from subsidiaries
1.577
2.426
Tax free contribution to subsidiaries
10.000
-
Dividend received from subsidiaries
-
20.000
29.
Events after the balance sheet date
The Company's available credit lines for 2022/23 were extended by Nordea on May 12th, 2022, to continue to May 2023
and the cooperation letter was signed by the Company on May 12
th
, 2022, as planned. The cooperation letter is subject
to three covenants, which the Prepress division of Glunz & Jensen must observe in order to maintain the loan. The
financial covenants are related to the financial ratio "solvency", the agreed level of EBITDA, and loan to value
No other events have occurred since March 31
st
, 2022, which is deemed to have a significant impact on the Group's or
the Parent Company’s financial position.
30.
New accounting standards
The IASB has issued several new standards and amendments not yet in effect or endorsed by the EU and therefore not
relevant for the preparation of the 2021/22 consolidated financial statements. Glunz & Jensen Holding A/S expects to
implement these standards when they take effect. None of the new standards issued are currently expected to have any
significant impact on the consolidated financial statements when implemented.
Page | 56 ANNUAL REPORT 2021/22
31.
Accounting policies
Glunz & Jensen Holding A/S is a limited company domiciled in
Denmark. The annual report for the period April 1
st
, 2021 -
March 31
st
, 2022, includes both consolidated financial
statements of Glunz & Jensen Holding A/S and its subsidiaries
(the Group) and the separate financial statements of the Parent
Company.
The annual report of Glunz & Jensen Holding A/S for 2021/22
has been prepared in accordance with International Financial
Reporting Standards as adopted by the EU and additional
requirements of the Danish disclosure requirements for listed
companies.
The Board of Directors discussed and approved the annual
report of Glunz & Jensen Holding A/S for 2021/22 on June 8
th
,
2022. The annual report will be submitted to the shareholders of
Glunz & Jensen Holding A/S for adoption at the Annual General
Meeting on June 30
th
, 2022.
Basis of preparation
The annual report is presented in DKK, rounded to the nearest
amount in DKK thousands. The annual report is prepared using
the historical cost principle. However, recognized derivatives
are measured at fair value. Non-current assets are measured at
the lower of their carrying amount before the reclassification and
fair value less selling costs.
Adoption of new and revised IFRSs
Glunz & Jensen Holding A/S has implemented all the relevant
new or amended financial reporting standards and
interpretations as adopted by the EU that are effective as of April
1
st
, 2022.
No new standards or interpretations have had effect on the
financial statements of the Group
The accounting policies have been applied consistently in the
financial year and to comparative figures.
Description of accounting policies
Consolidated financial statements
The consolidated financial statements include the Parent
Company Glunz & Jensen Holding A/S and subsidiaries.
Subsidiaries are entities controlled by the group. The group
‘controls’ an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity.
The financial statements of subsidiaries are included in the
consolidated financial statements from the date on which control
commences until the date on which control ceases.
The consolidated financial statements are prepared by
aggregating the Parent Company’s and the individual
subsidiaries’ financial statements, applying the Group’s
accounting policies. Intra-group income and expenses,
shareholdings, balances, and dividends as well as realized and
unrealized gains arising from intra-group transactions are
eliminated on consolidation.
Entities in which the Group holds between 20% and 50% of the
voting rights and over which it exercises significant influence,
but which it does not control, are considered associates.
Business combinations
Newly acquired or established companies are recognized in the
consolidated financial statements from the date of acquisition.
Enterprises sold or otherwise disposed of are recognized in the
consolidated financial statements until the date of sale/disposal.
Comparative figures are not restated to reflect newly acquired
companies. Discontinued operations are presented separately,
see below.
In the acquisition of new entities over which the Group obtains
control, the acquisition method is used, meaning that the
acquired entities' identifiable assets, liabilities and contingent
liabilities are measured at fair value at the date of acquisition.
Intangible assets identified are recognized if they can be
separated or if they originate from contractual terms. The tax
effect of the revaluations performed is considered.
Positive balances (goodwill) between the purchase
consideration for the acquired enterprise and the fair value of
the acquired assets, liabilities and contingent liabilities are
recognized as asset in intangible assets and tested for
impairment at least once a year. The first impairment test is
performed before the end of the acquisition year. Upon
acquisition, goodwill is allocated to the cash-generating unit
which subsequently forms the basis for impairment testing.
Goodwill and fair value adjustments arising from acquisition of
foreign entities with a functional currency other than DKK are
accounted for as assets and liabilities of the foreign entity. This
means that goodwill and fair value adjustments are initially
translated at the foreign entity’s functional currency at the
transaction date. Negative goodwill arising on acquisition is
recognized directly in the income statement at the date of
acquisition.
The consideration for an entity consists of the fair value of the
consideration paid for the acquiree. If the final determination of
the consideration is contingent on one or more future events,
such events are recognized at fair value at the date of
acquisition. Expenses relating to the acquisition are recognized
in profit or loss when incurred.
If, at the date of acquisition, there is uncertainty as to the
identification or measurement of acquired assets, liabilities or
contingent liabilities or the determination of the purchase
consideration, initial recognition is made based on initially
calculated values. These values may be adjusted, or additional
assets or liabilities may be recognized, until 12 months after the
acquisition if new information is obtained about circumstances
that existed at the date of acquisition and which would have
affected the calculation of the values at the date of acquisition
had such information been known. Subsequently, goodwill is not
adjusted. Changes in estimates of conditional purchase
considerations are generally recognized directly in the income
statement.
Gains or losses on disposal of subsidiaries are calculated as the
difference between the selling price or the settlement price and
the carrying amount of net assets, including goodwill at the date
of the disposal and the expenses relating to the disposal.
Foreign currency translation
A functional currency is designated for each of the reporting
entities in the Group. The functional currency is the currency
used in the primary economic environment in which the
ANNUAL REPORT 2021/22 Page | 57
reporting entity operates. Transactions denominated in
currencies other than the functional currency are transactions in
foreign currencies.
Transactions in foreign currencies are translated into the
functional currency at the exchange rate at the transaction date.
Gains and losses arising between the rate at the transaction
date and the rate at the date of payment are recognized in the
statement of comprehensive income under financial income and
expenses.
Receivables and payables and other monetary items
denominated in foreign currencies are translated into the
functional currency at the exchange rate at the balance sheet
date. Differences between the rate at the balance sheet date
and the rate at the transaction date or the exchange rate stated
in the latest annual report are recognized in the statement of
comprehensive income under financial income and expenses.
On recognition of foreign subsidiaries and associates with a
functional currency other than DKK, items in the statement of
comprehensive income are translated at average rate rates that
do not differ significantly from the rates ruling at the transaction
date. Balance sheet items in subsidiaries and the equity share
of associates are translated at closing rates.
Exchange rate differences arising on the translation of the
opening equity of subsidiaries and associates at closing rates
and on the translation of items in the statement of
comprehensive income from average rates to closing rates are
recognized in the consolidated financial statements under other
comprehensive income in equity as a separate translation
reserve.
Derivative financial instruments
Derivative financial instruments are recognized at fair value. The
fair value of derivative financial instruments is recognized in
other receivables (positive value) and in other payables
(negative values). Offsetting of positive and negative values
only occurs when the Company is entitled to and intends to
settle several derivative financial instruments net.
Fair values of derivative financial instruments are determined
based on current market data.
Any gains or losses arising from fair value adjustments of
derivative financial instruments are taken directly to profit or loss,
except for the effective portion of cash flow hedges, which is
recognized in other comprehensive income and later
reclassified to profit or loss when the hedge item affects profit or
loss.
For derivative financial instruments that do not qualify for
recognition as hedging instrument, fair value adjustments are
recognized under financial income and expenses in the
statement of comprehensive income.
Statement of comprehensive income
Revenue
The Glunz & Jensen Group’s main activities lie within Flexo and
Offset, which are both part of the prepress market. All products
and services are connected to setters and printing equipment.
In addition to equipment, Glunz & Jensen sells installation of the
equipment, service, and spare parts.
Revenue from contracts with customers is recognized when
control of the goods or services are transferred to the customer
at an amount that reflects the consideration to which the Group
expects to be entitled in exchange for those goods or services.
The Group has generally concluded that it is the principal in its
revenue arrangements, because it typically controls the goods
or services before transferring them to the customer.
The recognized revenue is measured at the fair value of the
agreed consideration exclusive of VAT and fees collected on
behalf of third parties. All forms of discounts will be recognized
in revenue.
Any part of the total consideration that is variable, e.g. in the
form of discounts, bonuses, penalties, etc., will be recognized in
revenue only when reasonably certain that no repayments will
be made in subsequent periods, i.e. as the result of failure to
meet goals, etc.
Revenue from sale of goods is recognized at the point in time
when control of the asset is transferred to the customer,
generally on delivery of the equipment. The normal credit term
is 30 to 90 days upon delivery.
The Group considers whether there are other promises in the
contract that are separate performance obligations to which a
portion of the transaction price needs to be allocated (e.g.,
warranties). In determining the transaction price for the sale of
equipment, the Group considers the effects of variable
consideration, the existence of significant financing components,
noncash consideration, and consideration payable to the
customer (if any).
Customers are not entitled to return purchased goods.
The sale of services includes service packages and extended
guarantees concerning products sold. The services typically
include one performance obligation which is recognized on a
straight-line basis over the period during which the services are
provided.
Rental income arising from operating leases on investment
properties is accounted for on a straight-line basis over the
lease terms.
Costs
The Group distributes the cost, including depreciation and
amortization and wages and salaries, by the functions
production costs, sales and distribution costs, development
costs and administrative expenses. Costs not directly
attributable to a function are allocated to the functions based on
the number of employees in each function.
Administrative expenses comprise operating expenses relating
to the Group’s investment property.
Development costs comprise research costs and any
development costs not qualifying for capitalization and
depreciation and amortization of capitalized development
projects.
Administrative expenses comprise operational expenses
relating to the Group's rental property.
Page | 58 ANNUAL REPORT 2021/22
Other operating income and expenses
Other operating income and expenses comprise items of a
secondary nature, including gains and losses from disposal of
intangible assets and property, plant and equipment, which are
measured as the selling price less selling costs and the carrying
value at the time of sale.
Other operating income also includes government Covid-19
compensation related to payroll. The compensation is
recognized when compensation is expected to materialize. The
compensation is allocated to functions under staff costs.
Financial income and expenses
Financial income and expenses comprise interest, including
interest on lease liabilities, fair value gains and losses on
securities, realized and unrealized foreign exchange
adjustments, amortization and surcharges and allowances
under the tax prepayment scheme. Also included are realized
and unrealized gains and losses relating to derivative financial
instruments not qualifying as effective hedges.
Income tax expense
Glunz & Jensen Holding A/S is jointly taxed with its Danish
subsidiaries. The current Danish income tax charge is allocated
among the jointly taxed entities in proportion to their taxable
income.
Tax for the year, comprising current income tax for the year and
changes in deferred tax, including such changes as follow from
changes in the tax rate, is recognized in profit or loss, other
comprehensive income or in equity, depending on where the
relevant item is recognized.
Balance sheet
Development projects, patents, and trademarks
Development costs comprise costs and salaries and
depreciation and amortization relating to the Group’s
development activities.
Development costs on an individual project are recognized as
an intangible asset when the Group can demonstrate the
technical feasibility of completing the intangible asset so that the
asset will be available for use or sale, the technical feasibility of
completing the intangible asset so that the asset will be
available for use or sale, its intention to complete and its ability
and intention to use or sell the asset, how the asset will generate
future economic benefits, the availability of resources to
complete the asset and the ability to reliably measure the
expenditure during development.
Following initial recognition of the development expenditure as
an asset, the asset is carried at cost less any accumulated
amortization and accumulated impairment losses. Amortization
of the asset begins when development is complete, and the
asset is available for use. It is amortized over the period of
expected future benefit, which is 3-10 years. During the period
of development, the asset is tested for impairment annually.
Other development costs are expensed as incurred.
Patents and trademarks are measured at cost less any
accumulated depreciation and accumulated impairment losses.
Patents are amortized on a straight-line basis over the term of
the patent. Trademarks are amortized using the straight-line
method over their expected useful live. The amortization period
is 3-5 years.
The amortization periods mentioned above also apply to
acquired assets.
Property, plant, and equipment
Property, plant, and equipment are measured at cost less
accumulated depreciation and accumulated impairment losses.
Cost comprises the purchase price and any costs directly
attributable to the acquisition until the asset is available for use.
Subsequent costs, e.g., for the replacement of components of
an item of property, plant or equipment, are recognized in the
carrying amount of the asset when it is likely that the
expenditure of the replacement involves a future financial
benefit for the Group. The carrying amount of the replaced
components ceases to be recognized in the balance sheet and
is transferred to profit or loss. All other costs related to general
repair and maintenance are recognized in profit or loss as and
when incurred.
The cost value of a total asset is divided into separate
components that are depreciated separately if the useful lives of
the individual components differ. Items of property, plant and
equipment are depreciated on a straight-line basis over their
expected useful lives:
Production buildings and components 10-20 years
Technical installations 10-15 years
Administration buildings and components 10-25 years
Other fixtures and fittings 3-5 years
Land is not depreciated.
The depreciation basis is determined considering the residual
value of the asset and any impairment losses. The residual
value is determined at the date of acquisition and is re-assessed
annually. If the residual value exceeds the carrying amount of
the asset, depreciation will cease. If the depreciation period or
the residual value is changed, the effect on depreciation going
forward is recognized as a change in accounting estimates.
Leased assets
A lease asset and a lease liability are recognized in the balance
sheet when a right-of-use lease asset is transferred to the group
or the parent company for the term of the lease pursuant to a
concluded lease agreement and the group obtains the right to
substantially all of the economic benefits from the use of the
identifiable asset and the right to control the use of the
identifiable asset. Service components are excluded from the
lease liability.
On initial recognition, lease liabilities are measured at the
present value of the future lease payments, discounted using an
alternative interest rate.
The lease liability is measured at amortized cost using the
effective interest rate method. The lease liability is re-measured
when there is a change in the underlying contractual cash flows
due to changes in an index or an interest rate, if there is a
change to the estimate of a residual value guarantee, or if there
is a change to the assessment as to whether it is reasonably
certain that a purchase option, an extension option or a
termination option will be exercised.
On initial recognition, the right-of-use asset is measured at cost,
corresponding to the value of the lease liability adjusted for
prepaid lease payments plus any initial direct costs and
ANNUAL REPORT 2021/22 Page | 59
estimated costs for dismantling, removing, and restoring or
similar and less any discounts or other types of incentive
payments granted by the lessor.
On subsequent recognition, the asset is measured at cost less
any accumulated depreciation and impairment. The right-of-use
asset is depreciated over the shorter of the lease term and the
useful life of the asset. Depreciation charges are recognized in
the income statement on a straight-line basis.
The right-of-use asset is adjusted for any changes in the lease
liability due to changes in the lease terms or changes in the
contractual cash flows as a result of changes in an index or an
interest rate.
Lease assets are depreciated on a straight-line basis over the
estimated lease term.
The lease asset and the lease liability are presented separately
by the group and the parent company in the balance sheet.
The group and the parent company have elected not to
recognize right-of-use assets of low value and short-term leases
in the balance sheet and instead to recognize lease payments
concerning these leases in the income statement on a straight-
line basis.
When the group is an intermediate lessor, it accounts for its
interests in the head lease and the sub-lease separately. It
assesses the lease classification of a sub-lease with reference
to the right-of-use asset arising from the head lease, not with
reference to the underlying asset.
Investment property
Investment properties are measured initially at fair value, which
reflects market conditions at the reporting date. Gains or losses
arising from changes in the fair values of investment properties
are included in profit or loss in the period in which they arise,
including the corresponding tax effect. Fair values are
determined based on an annual evaluation performed by an
accredited external independent valuer applying a valuation
model recommended by the International Valuation Standards
Committee.
Investment properties are derecognized either when they have
been disposed of or when they are permanently withdrawn from
use and no future economic benefit is expected from their
disposal. The difference between the net disposal proceeds and
the carrying amount of the asset is recognized in profit or loss
in the period of derecognition.
Transfers are made to (or from) investment property only when
there is a change in use. For a transfer from investment property
to owner-occupied property, the deemed cost for subsequent
accounting is the fair value at the date of change in use. If
owner-occupied property becomes an investment property, the
Group accounts for such property in accordance with the policy
stated under "Property, plant and equipment" up to the date of
change in use. At the same date the property are evaluated to
fair value and the adjustment between the cost value and fair
value are recognized as other comprehensive income.
Investments in subsidiaries and associates
Investments in subsidiaries and associates are measured using
the equity method.
Investments in subsidiaries and associates are measured at the
proportionate share of the entities' net asset value calculated in
accordance with the Group's accounting policies minus or plus
unrealized intra-group profits and losses and plus or minus any
residual value of positive or negative goodwill determined in
accordance with the purchase method of accounting.
Investments in subsidiaries and associates with negative net
asset values are measured at DKK 0, and any amounts owed
by such entities are written down insofar as the amount
receivable is considered irrecoverable. If the Parent Company
has a legal or constructive obligation to cover a deficit that
exceeds the amount owed, the remaining amount is recognized
under "Provisions".
Net revaluation of investments in subsidiaries and associates is
recognized in the net revaluation reserve according to the equity
method under equity where the carrying amount exceeds cost.
Dividends from subsidiaries which are expected to be declared
before the annual report of Glunz & Jensen Holding A/S is
adopted are not taken to the net revaluation reserve.
Impairment of non-current assets
Development projects are tested annually for evidence
impairment.
Deferred tax assets are tested for impairment annually and are
written down if it is deemed likely that the deferred tax asset
cannot be utilized against tax on future income or set off against
deferred tax liabilities in the same legal tax entity and jurisdiction.
This assessment considers the type and nature of the
recognized deferred tax asset, the estimated period for set-off
of the deferred tax asset etc.
Other long-term assets are tested for impairment once a year.
When there is evidence that an asset may be impaired, the
recoverable amount of that asset is determined. The
recoverable amount is the higher of the net selling price of the
asset and the net present value of the expected future net cash
flows.
An impairment loss is recognized when the carrying amount of
an asset or its cash-generating unit exceeds the recoverable
amount of the asset or its cash-generating unit. Impairment
losses are recognized in the statement of incomprehensive
income under production costs, development costs, sales and
distribution costs and administrative expenses. However,
impairment losses in respect of goodwill are recognized in a
separate line in the statement of incomprehensive income.
Impairment losses on other long-term assets are reversed to the
extent that changes have occurred in the assumptions and
estimates based on which the impairment loss was recognized.
Impairment losses are reversed only to the extent that the new
carrying amount of the asset does not exceed the carrying
amount it would have had net of amortization and net of
depreciation if the impairment loss had not been recognized.
Inventories
Inventories are measured at cost using the FIFO method.
Goods for resale, raw materials and consumables are measured
at cost, comprising the purchase price plus delivery costs.
Finished goods and work in progress are measured at cost,
comprising the cost of raw materials, consumables, direct labor
Page | 60 ANNUAL REPORT 2021/22
costs and production overheads. Production overheads
comprise indirect materials and labor costs as well as
maintenance and depreciation of production machinery, factory
buildings and equipment and factory administration and
management costs.
Where the net realizable value is lower than cost, inventories
are written town to such lower value. The net realizable value of
inventories is determined as the selling price less costs of
completion and costs necessary to make the sale and is
determined taking into account marketability, obsolescence,
and developments in the expected selling price.
Receivables
Receivables are measured at amortized cost. A credit loss
allowance is made upon initial recognition based on historical
observed default rates adjusted for forward looking estimates
(simplified 'expected credit loss’ model). The cost of the credit
loss allowances is included in sales and distribution costs. A
loss is considered realized when it is certain that we will not
recover the receivable, e.g., in case of bankruptcy or similar.
Deposits are measured at fair value cost and consists of rent
deposits. The leases are non-cancellable for a period of 0–2
years.
Prepayments
Prepayments include expenses paid in respect of subsequent
fiscal years.
Equity
Dividend:
Dividend proposed for the year is recognized as a liability at the
time it is adopted at the Annual General Meeting. The amount
proposed as dividend for the year is stated as a separate item
in equity.
Translation reserve:
The translation reserve in the consolidated financial statements
includes accumulated foreign exchange differences arising on
the translation of the financial statements of foreign subsidiaries
from their functional currency to the presentation currency of the
Group.
Hedging reserve:
The hedging reserve contains the accumulated net change in
the fair value of hedging transactions qualifying as cash flows
hedges for which the hedged transaction has not yet been
realized.
Revaluation reserve:
The revaluation reserve contains adjustment occurred during
transfers to (or from) investment property when there is a
change in use.
Share-based payment
Share-based incentive schemes under which executive officers
may only opt to purchase shares in the Company (equity-settled,
share-based payment arrangements) are measured at the fair
value of the equity instruments at the grant date and are
recognized in the income statement under staff costs over the
vesting period. The counter entry is taken directly to equity. The
fair value of the equity instruments is measured using the Black-
Scholes model with the parameters indicated in note 4.
Income tax and deferred tax
Current tax payable and receivable is recognized in the balance
sheet as tax computed on the taxable income for the year,
adjusted for tax on the taxable income of prior years and for tax
paid on account.
Deferred tax is measured using the balance sheet liability
method, providing for all temporary differences between the
carrying amount and the tax base of assets and liabilities.
However, the following items are not recognized: goodwill not
deductible for tax purposes and other items – apart from
business combinations – where temporary differences have
arisen at the date of acquisition that neither affect profit/(loss)
nor taxable income.
Deferred tax assets, including the tax base of tax loss carry-
forwards, are recognized as other non-current assets at the
value at which they are expected to be utilized, either by
elimination against tax on future earnings or by set-off against
deferred tax liabilities within the same legal tax entity and
jurisdiction.
The deferred tax charge is adjusted in respect of elimination of
unrealized intra-group profits and losses.
Deferred tax is measured based on the tax rules and at the tax
rates that will apply under the legislation enacted at the balance
sheet date in the relevant countries when the deferred tax is
expected to crystallize in the form of current tax. Changes in
deferred tax as a result of changes in tax rates are recognized
in the statement of comprehensive income.
Under the joint taxation rules, Glunz & Jensen Holding A/S, as
the management company, becomes liable vis-à-vis the tax
authorities for the subsidiaries’ income taxes as the subsidiaries
pay their joint taxation contributions. Joint taxation contributions
payable and receivable are recognized in the balance sheet
under receivables from/payables to subsidiaries.
Provisions
Provisions comprise estimated commitments regarding
warranty obligations and restructuring etc.
Provisions are recognized when, as a result of events occurring
before or at the balance sheet date, the Group has a legal or
constructive obligation, and it is probable that an outflow of
resources embodying economic benefits will be required to
settle the obligation. Provisions are measured at Management's
best estimate of the amount required to settle the obligation at
the balance sheet date.
A provision for warranties is recognized when the underlying
products or services are sold. The provision is based on
historical warranty data.
Restructuring costs are recognized as liabilities when a detailed,
formal restructuring plan has been announced not later than at
the balance sheet date to the parties affected by the plan.
Pension obligations
Payments relating to defined contribution plans under which the
Group regularly pays fixed contributions into an independent
pension fund are recognized in profit or loss in the period in
which they are earned, and outstanding payments are
recognized in the balance sheet under other payables.
There are no defined benefit plans within the Group.
ANNUAL REPORT 2021/22 Page | 61
Financial liabilities
Payables to credit institutions are recognized at the date of
borrowing at fair value (corresponding to the net proceeds
received) less transaction costs paid. In subsequent periods,
payables to credit institutions are measured at amortized cost,
corresponding to the capitalized value using the effective
interest rate method. Accordingly, the difference between the
proceeds and the nominal value (capital loss) is recognized in
profit or loss over the term of the loan.
Other liabilities are measured at net realizable value.
Prepayments from customers
Prepayments from customers include payments received which
relate to subsequent financial years.
Cash flow statement
The cash flow statement shows cash flows for the year, broken
down by operating, investing and financing activities, and the
year’s changes in cash and cash equivalents as well as cash
and cash equivalents at the beginning and end of the year.
The cash flow effect of acquisitions and disposals of entities is
shown separately under cash flows from investing activities.
Cash flows from acquisitions of entities are recognized in the
cash flow statement from the date of acquisition, and cash flows
from disposals of entities are recognized up to the date of
disposal.
Cash flows from operating activities are determined as
profit/(loss) for the year adjusted for non-cash operating items,
changes in working capital, interest received and paid, including
interest on lease liabilities, and income taxes paid.
Cash flows from investing activities comprise payments in
connection with acquisitions and disposals of entities and
activities; acquisitions and disposals of intangible assets,
property, plant and equipment, investment properties and other
non-current assets; and acquisitions and disposals of securities
that are not recognized as cash and cash equivalents.
Cash flows from financing activities comprise changes in the
size or composition of the share capital and associated
expenses as well as raisings of loans, repayment of interest-
bearing debt, including repayment of lease liabilities, purchase
and sale of treasury shares, and payment of dividends as well
as dividend received from subsidiaries.
Cash and cash equivalents comprise deposits with credit
institutions and cash.
Segment information
Segment information is prepared in accordance with the
Group's accounting policies and internal financial reporting.
The Group presents two reportable segments: the prepress
marked and the property rental Selandia Park.
Segment revenue, segment expenses, segment assets and
liabilities are those items that are directly attributable to the
individual segment or can be allocated to the segment on a
reliable basis.
Segment assets are those assets that are employed directly by
the segment in its operating activities, including non-current
assets, inventories, trade receivables, other receivables,
prepayments and cash and cash equivalents.
Segment liabilities are those liabilities that result from the
segments’ operating activities, including trade liabilities,
borrowings, lease liabilities and other liabilities.
Additional segment information is stated regarding consolidated
revenue broken down by geographic market.
Page | 62 ANNUAL REPORT 2021/22
DEFINITIONS OF RATIOS
Earnings per share (EPS) and diluted earnings per share (EPS-D) are calculated in accordance with IAS 33.
Other ratios are calculated in accordance with the online version "Recommendations & Financial Ratios" issued by the
Danish Finance Society.
The ratios in the annual report are calculated as follows:
Gross margin
Gross profit x 100
Revenue
Operating margin
Operating profit (EBITA) x 100
Revenue
Operating margin before
non-recurring costs
EBITA before non-recurring costs x 100
Revenue
EBITDA margin
Profit before interest, tax, amortization, depreciation and impairment x 100
Revenue
EBITDA margin before
non-recurring costs
EBITDA before non-recurring costs x 100
Revenue
Return on assets (ROIC)
Operating profit x 100
Average operating assets
Return on equity (ROE)
Profit or loss for the year x 100
Average Equity
Equity ratio
Equity at year-end x 100
Liabilities at year-end
Interest coverage
Operating profit (EBITA) + interest income
Interest expenses
Earnings per share (EPS)
Profit(loss) for the year
Average number of shares outstanding
Diluted earnings per share (EPS-D)
Diluted earnings
Diluted average number of shares outstanding
Cash flow per share (CFPS)
Cash flows from operating activities
Diluted average number of shares outstanding
Book value per share (BVPS)
Equity at year-end
Numbers of shares at year end
Pay-out ratio
Total dividend paid
Profit or loss for the year
Share price/book value (KI)
Share price
BVPS
ANNUAL REPORT 2021/22 Page | 63