CVR. No: 20 89 69 49
Address: Trollesmindealle 25
3400 Hillerød
Together for a Healthier
Tomorrow
Annual Report
2024
Ellab A/S
Page 2
Contents
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Table of Contents
Contents
Financial Performance
Financial Review .............................................................................................................19
Board of Directors ........................................................................................................22
Company Information.............................................................................................23
Overview
Letter from our CEO
................................................................................................3
Five Year Summary ....................................................................................................4
Global Expertise with Local Reach....................................................6
Ellab Presentation.........................................................................................................7
Working at Ellab ...............................................................................................................8
Sustainability ......................................................................................................................10
Parent Company
Income Statement
....................................................................................................63
Balance Sheet .....................................................................................................................64
Cash Flow Statement ..............................................................................................65
Changes in Equity ........................................................................................................66
Notes .............................................................................................................................................68
Managementʼs Statement and Auditorʼs Report
Managementʼs Statement
..............................................................................90
Independent Auditors Report ..................................................................91
1 January 2024 to
31 December 2024
The Annual Report was presented and adopted at
the Annual General Meeting of the Company on:
23 May 2025
Chair of the meeting
Management Review
Financial Statements
Group
Income Statement ....................................................................................................25
Balance Sheet .....................................................................................................................26
Cash Flow Statement ..............................................................................................27
Changes in Equity ........................................................................................................28
Notes ...............................................................................................................................................30
Ellab A/S Annual Report 2024Ellab A/S Annual Report 2024
Page 3
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents Letter from our CEO
2024 was a transformative year for
Ellab - a year marked by both external
challenges and internal progress. While
macroeconomic pressures and geopolitical
uncertainties impacted customer demand
across the industry, we remained steadfast
in our mission and continued to invest in
our future, our people, and our customers.
Early in the year, we finalized the expansion of our headquarters in Hillerød, Denmark.
This milestone significantly increased our production capacity and allowed us to
consolidate all manufacturing activities at a single site. The expansion also enabled
the closure of our UK manufacturing facility. Alongside this, we made substantial
investments in our production capabilities, including the installation of a new Surface
Mount Technology (SMT) line and the implementation of a global management
system. This system harmonizes our operations across regions and represents a
critical step toward our vision of “One Global Ellabˮ.
We also significantly increased our investment in R&D to strengthen our product
portfolio and drive innovation. Notable launches included EvalPro+ and an updated
Sky module - both enhancing our ability to serve the evolving needs of the life
science industry. In parallel, we launched a new global IT platform to support our
“One Global Ellabˮ, a truly integrated global company: global expertise, local reach.
This platform forms the digital backbone for future growth and improved customer
service.
In November, we welcomed PharmaProcess in Italy to the Ellab Group - a strategic
acquisition that further strengthens our European presence and expands our
capabilities.
Andreas Morthorst
CEO
Another important step forward was the introduction of a new Board of Directors.
Their experience, insights, and strategic direction have already played a pivotal role
in steering Ellab through a year of transition and in shaping our long-term priorities.
This year also marked a major evolution of our brand. More than just a new visual
identity, our rebranding reflects a strategic shift: from being a trusted solution
provider to becoming a comprehensive life science compliance partner. Under our
renewed positioning, we support our customers across Validation, Monitoring, and
Calibration - a holistic suite of compliance solutions designed to meet the complex
demands of modern life science environments.
Sustainability has also become more deeply embedded in our strategic
development. We are integrating sustainable practices across product innovation,
operations, and our global supply chain - aiming to reduce environmental impact
while creating long-term value for our customers. Through initiatives such as fleet
electrification, renewable energy sourcing, and Life Cycle Assessments (LCA), we
are shaping a greener future while staying aligned with international standards.
Lastly, 2024 was a milestone year for Ellab as we celebrated our 75th anniversary.
It was a moment to reflect on our legacy - one built on innovation, resilience, and
a commitment to excellence - and to look ahead to an even brighter future. We
are pleased to welcome Gergely Sved as the new CEO of Ellab, joining no later
than 1 June 2025. Gergely Sved comes with extensive industry knowledge and will
support the future growth of Ellab. Thank you to our dedicated employees, loyal
customers, and valued partners for being part of this journey. Together, we are
building the future of compliance in life sciences.
Ellab A/S Annual Report 2024
Page 4
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Five Year Summary
DKK million
12 months
2024
8 months
2023
12 months
2022/23
12 months
2021/22
12 months
2020/21
Key figures
Income statement
Revenue 996.2 634.6 858.2 650.8 497.2
Gross profit 544.5 341.8 510.0 415.9 326.3
Operating profit 73.3 64.6 138.2 136.6 109.3
Net financials (97.1) (59.0) (48.1) (59.5) (17.1)
Net profit for the year (19.4) 10.9 64.7 43.1 53.4
Balance Sheet
Total assets 3,216.5 3,123.9 3,174.7 2,755.1 2,658.0
Equity 2,593.9 1,565.1 1,656.6 1,590.5 1,567.2
Investment in property, plant and equipment (45.5) (30.8) (37.4) (21.5) (21.8)
Cash flows
Cash flow from operating activities 199.1 70.5 85.9 127.4 119.0
Cash flow from investing activities (135.6) (54.5) (395.0) (92.2) (53.0)
Cash flow from financing activities (51.9) (28.1) 311.0 (36.2) (31.5)
Cash flow for the year 11.6 (12.1) 1.9 (1.0) 34.5
Number of employees 757 751 637 456 373
Ratios
Adjusted EBITDA* 276.4 180.8 293.0 248.5 202.9
Adj. EBITDA margin 27.7% 28.5% 34.1% 38.2% 40.8%
Solvency ratio 80.6% 50.1% 52.2% 57.7% 59.0%
Return on equity (0.9%) 1.2% 4.0% 2.7% 3.5%
Ellab A/S Annual Report 2024
Page 5
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
As a result of the intra-group merger between Ellab A/S (continuing company) and the former parent companies Kelvin BidCo A/S (disolved by merger) and Kelvin HoldCo A/S
(disolved by merger) the comparison numbers in the five year summary have been restated as if the merger had always been in place.
As a result of Novo Holdings and Lundbeckfond Investʼs purchase of the Ellab Group in September 2023, the reporting period was changed to end at 31 December.
Consequently the financial year 2023 only covers eight months from 1 May to 31 December 2023, whereas 2024 and the comparison years in the five-year summary all includes
a 12-months reporting period (2024 - 1 January to 31 December and 2022/23, 2021/22, 2020/21 - all from 1 May to 30 April).
The above numbers are not proforma adjusted and do not include the full year impact of acquired entities during the respective years.
The ratios have been calculated in accordance with the recommendations and guidelines issued by the Danish Society of Financial Analysts.
For definitions, see under Accounting Policies.
*Refer to Group note 7.
Five Year Summary continued
Ellab A/S Annual Report 2024
Page 6
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Global Expertise with Local Reach
80+
Offices and
distributors
worldwide
United Kingdom Denmark
• Hillerød, Global HQ
• Lyngby
USA
• Colorado
• Kansas
• New
Hampshire
• New York
• Texas
• Pennsylvania
• North Carolina
Italy
• Milano
Germany
• Bockel
• Ravensburg
Switzerland
• Muttenz
• Stabio
Austria
• Wien
France
• Lyon
Benelux
• Hengelo, NL
• Arnhem, NL
• Cheshire
Ireland
• Co. Cork
• Co. Cavan
- Ellab Offices
- Countries
with Ellab
Distributors
Ellab Presentation
UAE Singapore Philippines
• DAFZ, Dubai • Singapore
City
• Laguna
Ellab A/S Annual Report 2024
Leading Supplier of Validation and Monitoring Solutions
Page 7
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................16
Financial Statements ............................................................... 22
Parent Company .............................................................................57
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 80
Contents
Ellab A/S Annual Report 2024
Page 8
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Working at
Ellab
We are committed to create
a fair, diverse, and inclusive
workplace where all employees
are treated with respect
and dignity and have equal
opportunities to develop their skills
and reach their full potential.
We value the input and expertise of every individual at Ellab. We
encourage open communication and actively seek employee
feedback through our annual engagement survey, town
hall meetings, and regular performance conversations. By
empowering our employees, we cultivate a sense of ownership
and shared responsibility for the Groupʼs success.
We are committed to support the growth and development
of our employees. At Ellab, you will find a wide range of
opportunities for expanding your skills and knowledge.
We offer comprehensive training programs, workshops,
and continuous learning initiatives to ensure that our
workforce remains at the forefront of industry trends and
advancements.
Working at Ellab is an opportunity to join a dynamic and
progressive organization that values its employees. We
are proud of our strong corporate culture, focused on
engagement, professional development, work-life balance,
diversity, well-being, safety, sustainability, and collaboration.
Together, we continue to drive Ellabʼs growth and success.
Working at Ellab is an opportunity to join a dynamic and
progressive organization that values its employees. We
are proud of our strong corporate culture, focused on
engagement, professional development, work-life balance,
diversity, well-being, safety, sustainability, and collaboration.
Together, we continue to drive Ellabʼs growth and success.
At Ellab, we understand that our success as a Group
is directly linked to the development and growth of
our talented employees. We believe in nurturing
a culture of continuous learning and providing
opportunities for our team members to reach their
full potential.
Ellab A/S Annual Report 2024
Page 9
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
During the past years we have seen tremendous growth across Ellab,
and especially our Field Service & Consulting business has continuously
onboarded a lot of new colleagues, either organically or via acquisitions.
We have created career paths, which aligns the ambitious business plans
Ellab has with the ambitious mindsets of our employees.
Our Recipe for Growth in
Field Services & Consulting
Field Service and Consulting
Career Paths
ConsultingValidationField Calibration
In Field Services & Consulting we recruit employees at all levels of
the ‘experience spectrumʼ – from junior associates to team managers
– and ensure that we can show a clear and achievable career
progression in Ellab.
We call it ‘The Diamond Modelʼ, and collaborate with our employees to
create individualized development plans that align with their goals and
the Ellabʼs objectives. These plans are regularly reviewed and updated
to ensure ongoing growth and progress.
The Diamond Model
Level 6
Team/Regional
Manager
Level 4 & 5
Seniors & PMs
Level 3
Engineers & Consultants
Level 1 & 2
Junior Associates
Ellab A/S Annual Report 2024
Page 10
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Sustainability
To secure a sustainable future we continue to
increase our efforts on sustainability.
The Ellab family lives and breathes its values, and that means that
while reducing emissions and waste is a necessity, itʼs not enough.
Being a sustainable company is more than just being green. It also
means ensuring decent jobs, equal opportunities, anti-discrimination
and anti-corruption policies, good employee health and much more. All
are areas that we feel strongly about and work to improve every day.
This section is to report on ESG and corporate social responsibility
(CSR) for the financial year 2024, in accordance with the Danish
Financial Statements Act (“Lovpligtig redegørelse for samfundsansvar,
jf. årsregnskabslovens §99aˮ) for Ellab A/S. Information on the Groupʼs
business model can be found on page 19 in section ‘Key activitiesʼ,
‘Business linesʼ and ‘Overviewʼ.
CSR
Working Together to
Keep the World Safe
for Consumers
Ellab A/S Annual Report 2024
Page 11
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Sustainability
We at the Ellab Group have an ambition to reduce our
green-house gas emissions in line with Science Based
Targets and continue to use 100% renewable electricity.
It is our ambition to be among the leading companies
in our industry in terms of sustainability: environment,
people and business ethics.
Social
Governance
Cyber Security
Training
Governance
Structure
Communication &
New Onboarding
Platform
Engagement Survey
Science Based
Targets
Environmental
Double Materiality
Assessment
Green Electricity
Ellab A/S Annual Report 2024
Page 12
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Ellab A/S Annual Report 2024
Sustainability
Environmental
Environment and climate
Environment and climate are key to the Group, as
complying with selected standards is a prerequisite
for the trading with our customers. Further, taking
responsibility for the Groupʼs impact on the environment
and climate is important to us. Our policy focuses
on minimizing potential and actual negative impacts,
particularly greenhouse gas (GHG) emissions, while
maximizing resource efficiency and increasing recycling
rates of residual materials. We have identified upstream
activities as our primary area of risk, accounting for
approximately 90% of total emissions. To address these
risks, we are implementing a series of targeted actions
and initiatives designed to mitigate their impact.
To enforce this, the Group constantly work with
procedures to comply with the environmental
requirements in our own strategy, the legislation, as well
as those set by customers. Further, certain employees
are dedicated to work with this as part of their daily job,
and environmental polices are in place and updated
when needed. The Group meets the environmental
requirements in the legislation and works consciously
and continuously to minimize the environmental impact
from the operations according to our strategy. In
continuation of this work, the Group has a Sustainability
policy and, in Denmark and the UK an environmental
certification (ISO14001). The production facilities
in Denmark is mainly assembly facilities with very
limited water and electricity usage and low waste from
production that impacts environment.
The above mentioned procedures have been in place
and improved during 2024, and as a result, the Group
is compliant with internal and external requirements.
During 2024, the Ellab Group has continued its work
with Science Based Targets initiative (SBTi) goals after
having our targets validated and being official approved
in May 2023. Ellab commits to reduce absolute scope
1 and 2 GHG emissions 79.6% by 2030 from a 2020
base year. Ellab also commits to reduce absolute scope
3 GHG emissions from purchased goods and services,
upstream transportation and distribution, and employee
commuting by 25% within the same timeframe.
Contributing to achieving the targets set, Ellab Group
has again reached the goal of running on 100% green
electricity (via Energy Attribute Certificates such as
RECs and I-RECs) as well as getting a certificate on our
commitment to reduce food waste at our headquarters
in Denmark. In 2024, Ellab conducted a Double
Materiality Assessment in accordance with the EUʼs
Corporate Sustainability Reporting Directive (CSRD).
This assessment will serve as the foundation for the
Groupʼs reporting, which will be included in future
Annual Reports.
In the next financial year, Ellab will continue advancing
its SBTi targets with a focus on implementing specific
actions across:
- Scope 1: Transitioning to a 100% electric vehicle fleet
by 2030.
- Scope 2: Installing solar panels at our production
facility, and expanding the sourcing of sustainable
energy globally.
- Scope 3: Enhancing carbon accounting by transitioning
from spend-based to activity-based methodologies,
conducting Life Cycle Assessments (LCA) for product
development, and actively engaging with supplier
partners.
Social
Employees and human rights
The employees in the Group are key to the achieved and
future success and results. With respect to our supply
chains and associate companies, we have not identified
any material risks with respect to employee conditions
and human rights.
To support and secure the Groupʼs ability to attract and
retain employees, policies and procedures are in place
to ensure safe and healthy working conditions and
prioritize the mental health of our employees. Policies
like ‘employee code of conductʼ, and ways of working
when hiring people must be applied. ‘Global HR Policyʼ is
in place to secure employee human rights that contribute
to creating an internal work environment with healthy
work terms, protected from bullying & discrimination and
with the rights to enter unions. A whistleblowing system
is available for employees and external stakeholders
to make use of if they experience incidents that do not
comply with the terms of the Group.
Page 13
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Ellab A/S Annual Report 2024
Sustainability
Social
(continued)
Employees and human rights (continued)
In 2024, we continued our efforts to create and sustain
an environment that actively embraces human rights,
diversity, and inclusion in all areas. To ensure that we
make progress, we once again conducted a survey
on employee satisfaction etc. The survey gives us the
opportunity to benchmark against other companies in
the industry, as the questions are standardized by the
third-party vendor, as well as providing new and more
opportunities for reporting and action planning.
With the results from the 2023 and 2024 Engagement
Surveys, local workshops facilitated by leaders with
their respective teams were held in 2024, where action
plans, based on the teamsʼ engagement responses, were
discussed and completed. Working with the action plans
will address the surveyʼs results raised by the employees.
In 2024 the Global Leadership Team (GLT) continued their
work with actions plans to address matters from surveys
resulting in initiatives on ‘developmentʼ which entailed a
new onboarding process that where kicked-off to ensure
new employees the best start at their working experience
at Ellab. Further in 2024, a responsible for ‘Wellbeing
at work and Mental Healthʼ was appointed by the GLT
and the work was kicked-off with a global introduction
informing the Group on the expectations from the leader.
The Group will in the next financial year continue to work
with the findings from the 2024 and prior Engagement
Surveys to ensure progress towards an even better
workplace for all employees in the Group. Further, an
upgrade of the IT platforms used in the HR departments
will be initiated to better facilitate the recruiting process.
A 2025 Engagement Survey will be conducted to
measure the current engagement and to ensure follow-
up on the actions points to support our ambition of the
Ellab Group as an attractive workplace. Further, we will
continue our regular assessments of our policies and
procedures with respect to human rights to ensure we
have a setup that reflect our ambitions.
Our Diversity & Inclusion Policy support equal rights
and opportunities for all employees regardless of race,
gender, religion, age, ethnicity and sexual orientation,
and Ellab maintains a zero-tolerance policy towards
discrimination and harassment of any kind.
We are committed to fostering an inclusive workplace
upholding principles such as social justice, mutual
respect, and freedom of expression, and we believe that
this approach provides great value for the individual,
the society as well as for Ellab as a company. In this
respect, Ellab will always aspire to ensure that the most
qualified candidate is offered the position disregarding
that personʼs gender or other measures of diversity.
These policies apply for the Group including the Board of
Directors and other management levels.
The Ellab Group has a two-stringed governance model,
whereby the Board of Directors oversees the overall
and strategic management and is therefore seen as the
supreme management body of the group. Pursuant to
Ellabʼs governance structure, all strategic matters and
resolutions are discussed and adopted by the Board
of Directors of the parent company of Ellabʼs holding
structure, Echo TopCo A/S, which as of the balance date
had an equal distribution of genders, whereas Ellab A/Sʼ
Board of Directors had a zero % distribution of women.
At the ‘Other management levelsʼ, the underrepresented
gender (women) is 11% (2023: 13%) and, at present,
the underrepresented gender (women) represents 31%
(2023: 32%) of all employees in the Ellab Group. During
2024, focus on reaching a more balanced level has been
in place but the results have not yet materialized as Ellab
operates in a traditionally male dominated and global
industry which makes it difficult to attract talent from all
genders.
The Ellab Group has a target for the coming financial
year to work towards a more balanced gender and this
should be achieved by a continued focus on diversity with
respect to hiring the best candidate. End of December
2024, Ellab Group had 771 employees.
Page 14
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Ellab A/S Annual Report 2024
Sustainability
Governance
The duties and responsibilities of Ellabʼs various governing
bodies are determined by Danish law and Ellabʼs
governance principles, which aim to ensure active and
accountable business management across the Group.
Ellabʼs governance structure consists of its Shareholders,
the Board of Directors, including sub-committees hereof,
and the Executive Board.
Shareholders
The Companyʼs shareholders exercise their rights at the
Companyʼs general meetings. At the Annual General
Meeting, shareholders approve the Annual Report including
the Companyʼs financial results and distribution of profits
or loss (as the case may be), resolve on the discharge
of liability for Management and the Board of Directors,
proposals to amend the Companyʼs Articles of Association
(if relevant) and election of members to the Board of
Directors as well as the independent auditor. Shareholders
may include additional topics on the agenda of the Annual
General Meeting in accordance with the Companyʼs
Articles of Association and the Danish Companies Act. The
general meeting adopts decisions in accordance with the
general rules set out in the Danish Companies Act.
The Board of Directors
The Board of Directors is overall responsible for the
management of Ellab. The Board of Directors of the
Company (being the operational company of the Ellab
Group) is composed of three (3) members with strong
international business experience in the area in which Ellab
operates
.
Due to operational considerations, the governance
structure of the Ellab Group is structured so that the
Groupʼs strategic matters and resolutions are discussed
and adopted by the Board of Directors of the Ellab Groupʼs
parent company, Echo TopCo A/S, composed by eight
(8) members with extensive knowledge and experience
within industry, energy, high technology, finance, business
management, and development, whereas selected
operational matters concerning only Ellab A/S may be
taken by the Board of Directors of Ellab A/S if deemed
necessary and/or appropriate. The Board of Directors is
composed of representatives from the shareholder side
and independent members.
As the members of the Board of Directors of Ellab A/S also
are members of the Board of Directors of Echo TopCo A/S
with identical leadership of both legal entities, the Board of
Directors of the Company and of Echo TopCo A/S usually
convenes simultaneously with identical agendas.
The Board of Directors has adopted a set of rules of
procedure to set out and govern the performance and the
duties and responsibilities of the Board of Directors as
well as outline the allocation of responsibilities between
the Board of Directors and the Executive Board of the
respective Group company. Further, an annual wheel is
adopted and revised annually to ensure that all relevant
matters are addressed throughout the year. A minimum of
4 ordinary board meetings are held annually.
To further professionalize and streamline the work of
the Board of Directors, several sub-committees have
been established to assist the Board of Directors
within selected strategic subject matters as further
described below. The committeeʼs responsibility is one
of oversight. Thus, the committees have no independent
decision-making authority and can therefore only make
recommendations to the Board of Directors of the
relevant Group company unless the decision-making
competence within limited topics has been delegated to
the relevant committee e.g., via the relevant committeeʼs
charter adopted by the Board of Directors.
Audit Committee
The Committeeʼs purpose is to overview reporting
processes, internal controls, risk assessment and
cooperation with the independent auditor. Further,
oversight of the set-up and performance of the
Groupʼs sustainability reporting including the electronic
reporting process to identify the information reported in
accordance with the sustainability reporting standards
adopted as well as the procedures for identifying and
monitoring various ESG-related risks is placed within the
Audit Committee.
The Audit Committee meets 4-5 times annually and is
currently composed of four (4) members.
Page 15
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Ellab A/S Annual Report 2024
Remuneration - and Nomination Committee
The Committeeʼs task is to prepare and present decision
proposals for the Board of Directors on matters relating
to executive compensation and principal questions and/
or matters that are of considerable importance and may
affect many people within the Group, such as bonus
programs, employment- and incentive schemes, profit
sharing systems. Further, the Committee is responsible
for nomination of candidates for management (executive
and board-level), including determining the relevant
professional competence profile of such and for preparing
the Board of Directorsʼ annual self-assessment.
The Committee is authorized to approve the annual
calculation of bonus and other employment terms (as the
case may be) of the Executive Management, as well as
determination of performance indicators for the future
year in line with the overall terms hereof approved by the
Board of Directors.
The Remuneration – and Nomination Committee meets at
least two (2) times annually and is currently composed of
three (3) members.
M&A Committee
As M&A is an integrated part of the Groupʼs growth
strategy, the Board of Directors has established an M&A
Committee with a task to prepare and present decision
proposals for the Board of Directors on matters relating to
M&A processes and to ensure alignment between strategy
and execution.
The committee meets at least monthly and is currently
composed of four (4) members.
Executive Board
The day-to-day responsibility for Ellabʼs management
lies with the Executive Board, normally consisting of the
CEO and CFO. The Executive Board is responsible for the
conduct of business, all operational matters, organization,
allocation of resources, establishing and implementing
strategies and policies, direction-setting, and timely
reporting of information to the Board of Directors. To
assist in the day to-day management of the Company,
the Executive Board has established a Global Leadership
Team.
The Board of Directors has prepared and adopted a set of
management instructions which clearly explain the duties
and responsibilities of the Executive Board and the Board
of Directors.
To assist the Executive Board with achieving its objectives,
the Executive Board may adopt and revise guidelines and
instructions from time to time, such as e.g., the Groupʼs
Control Environment Manual outlining the overall principles
for continuous risk management and business controls,
including a clear delegation of authority to perform
selected actions within the Group.
During 2024, the new governance structure was ruled
out making global and local policies easy available to all
employees. Further, the new structure ensures publisher
to monitor the reading of the policies rolled out in 2024.
The ongoing training on cyber security awareness
continued in 2024 as it is key for the Group to secure
and project its IT landscape. To support this, the work
on CIS18 was started in 2024 with an assessment of
the setup to enable the implementation. Finally, in 2024,
Ellab conducted a Double Materiality Assessment in
accordance with the EUʼs Corporate Sustainability
Reporting Directive (CSRD). This assessment will serve
as the foundation for the Groupʼs future reporting.
In the next financial year the Group will continue the
work on implementing the CIS 18 framework, NIS-2 and
ancillary cyber awareness training.
Anti-corruption , Code of Conduct and Sanctions
ABC Policy
The Group does not operate in businesses or markets
where corruption is considered a major risk, but as
part of the Groupʼs approach to ESG, an Anti-Bribery &
Corruption Policy has been adopted.
The Anti-corruption & Bribery Policy requires compliance
with all applicable laws and regulations on anti-bribery
and corruption, including, but not limited to, the U.S.
Foreign Corrupt Practices Act (FCPA), the UK Bribery
Act 2010 (UKBA), and other applicable national laws and
regulation applicable to Ellabʼs operations.
Sustainability
Governance
(continued)
Page 16
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Ellab A/S Annual Report 2024
Supplier Code of Conduct
Whoever Ellab may deal with, and wherever Ellab may
operate, Ellab is committed to doing so lawfully, ethically
and with integrity. Therefore, Ellab requests and demands
decent and proper conduct of business from company
associates involved in trade with Ellab. Ellab is of the
conviction that it is of unquestionable mutual interest, that
existing rules and conventions are always adhered to. To
trade with Ellab the supplier must therefore adhere to all
international conventions and national legislation, which
are applicable to the country where the work or service is
carried out.
The above-mentioned requests and demands are laid out
in a Supplier Code of Conduct which the suppliers of Ellab
must adhere to.
Sanctions
The product portfolio of Ellab poses a minimal risk of
non-compliance with financial sanctions due to inter alia
its intended use and targeted customer base. However,
deviations hereto may apply when a local Ellab-subsidiary
e.g. engages in sales outside its primary territory of
operations. To mitigate any risk of non-compliance,
the Group has adopted a Sanctions Compliance Policy
applicable to all Group-companies and employees of Ellab
as well as all business activities conducted by the Group
from time to time, including transactions with customers,
suppliers, partners and other third parties.
During 2024, the above procedures have been in place,
and based on the evaluation carried out in 2024 our
assessments of the businesses and markets, in which the
Group operates remain unchanged. Further, no incidents
of non-compliance with applicable group polices, including
Anti Bribery & Corruption, Sanctions or Code of Conduct
have been reported during 2024.
In the next financial year, we will continue to assess the
businesses and markets in which the Group operates, to
make sure that our internal policies and procedures in
place are appropriate.
Further, and as also described above, a key area of focus
will be to further strengthen our internal compliance
procedures, increase awareness of current areas of focus
as well as new areas, such as e.g. anti-trust regulation,
and to initiate appropriate audits and controls to ensure
compliance with our codes of conduct from our business
relations.
Whistleblowing system
Ellab aims to encourage transparency and security for all
employees and stakeholders. To achieve this ambition,
the Group has, among other things, established a
whistleblower scheme.
Reports can be made by anyone with access to the
system. At Ellab, this includes both internal and external
stakeholders who have experienced serious misconduct or
violations. The whistleblower scheme is the only channel at
Ellab where misconduct can be reported anonymously.
General principles
Ellab is focused on having in place effective procedures
to prevent, detect and address allegations or incidents of
non-compliance with applicable rules and regulations as
well as behavioral codes of conduct etc.
Ellab ensures that any investigations into non-compliance
are performed in the strictest confidence, separate from
the chain of management involved in the matter and with
consideration of actual or potential conflicts of interest.
Further, adequate management attention and effective
reporting structures are in place to ensure transparency
and accountability. This includes inter alia the Audit
Committee, and the Board of Directors regularly being
informed of known or threated incidents and/or cases
within appropriate intervals.
Sustainability
Governance
(continued)
Page 17
Overview
Contents
Overview ..................................................................................................... 3
Letter from our CEO .............................. 3
Five Year Summary .................................. 4
Global Expertise With Local
Reach .............................................................................. 6
Ellab Presentation ......................................7
Working at Ellab ...........................................8
Sustainability .................................................... 10
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Ellab A/S Annual Report 2024
Sustainability
Governance
(continued)
Data ethics
Assessments of the Groupʼs approach to working with
data, already embedded in the existing policies, have
been carried out. The Group has a code of conduct and
several other policies in place which set high standards
for the way of working. The results of the assessments
showed that good behavior and data ethics are in place.
This includes that throughout the years the Group
generated, handled and used data in accordance with
prior practices and policies, including policies on data
privacy and GDPR, and as a responsible company.
It is the ambition of the Group to further formalize
the conducts in a separate policy on data ethics in
accordance with the Danish Financial Statements
Act § 99d (“Redegørelse for politik for dataetik, jf.
årsregnskabslovens § 99dˮ).
Financial Performance
Page 18
Contents
Overview ..................................................................................................3
Financial Performance .......................................................18
Financial Review ........................................19
Board of Directors...................................22
Company Information .......................23
Financial Statements ............................................................24
Parent Company ..........................................................................62
Managementʼs Statement and Auditorʼs
Report ...........................................................................................................89
Contents
Ellab A/S Annual Report 2024
Financial PerformanceFinancial Performance
ELLAB A/S ANNUAL REPORT 2024
Page 19
Contents
Overview ..................................................................................................3
Financial Performance .......................................................18
Financial Review ........................................19
Board of Directors...................................22
Company Information .......................23
Financial Statements ............................................................24
Parent Company ..........................................................................62
Managementʼs Statement and Auditorʼs
Report ...........................................................................................................89
Contents Financial Review
Key activities
Ellab is the market leading supplier of high-end validation-,
monitoring-, and calibration solutions primarily to the life
science industry. Ellab serves more than 70 out of 100 top
global biotech and pharma companies.
Ellab was established in Denmark in 1949. Today, the
Group is headquartered in Hillerød, Denmark, and holds
worldwide presence with R&D and production in Denmark
and has 80+ offices and distributors worldwide, of
which 20+ have calibration facilities. The Group employs
around 800 people and has grown from being a leading
manufacturer of validation equipment to becoming a true
end-to-end solution provider helping customers at every
stage, from commissioning, qualification and validation
(CQV) & consulting to continuous monitoring & calibration.
“Together for a healthier tomorrowˮ - is the overall
purpose of the Ellab Group.
Business lines
Validation Solutions
Validation Solutions are mission-critical validation
systems, used for measuring and documenting critical
parameters, such as temperature, pressure and humidity,
through an industry leading and highly automated
software suite.
Monitoring Solutions
Monitoring Solutions are continuous monitoring of critical
processes covering temperature, humidity, pressure and
CO2 in a hybrid on-premises/cloud IoT solution.
Field Services & Consulting
Field Services & Consulting are services within calibration,
validation and GMP consulting, which are essential to
regulatory compliance.
The internal reporting structure has changed beginning
1 January 2025. The external reporting will reflect this
change and from 2025 and onwards the segmentation will
be:
- Validation Solutions
- Monitoring Solutions
- Calibration Solutions
The previous business line “Field Services & Consultingˮ
has been allocated to “Validation Solutionsˮ and
“Monitoring Solutionsˮ. “Calibration Solutionsˮ has been
separated from these categories and will be reported as a
stand-alone business line going forward.
Overview
Ellab handles sales and services by its own sales
companies in the Nordics, Germany, Austria, Switzerland,
Italy, UK, Ireland, France, Benelux, Spain, North America,
Middle East, Singapore, and Philippines. Other markets
are handled through partnerships with independent
distributors.
Production, assembly, quality inspection and development
of Ellab Equipment (Data Loggers, Thermocouple
Systems, and Monitoring Systems etc.) takes place in the
facility in Hillerød, Denmark.
Development in the year
The financial year covers 12 months whereas the
comparison period only covers eight months as a result
of the shortened reporting period in 2023. The changed
reporting period in 2023 was to align with the reporting
period of the ultimate parent company, the Novo
Nordisk Foundation (as a result of Novo Holdings and
Lundbeckfond Investʼs acquisition of the Ellab Group in
September 2023). Consequently, the comparison figures
in the financial statements are not directly comparable.
Furthermore, both 2023 and 2024 numbers are affected
by the intra-group merger between Ellab A/S (continuing
company), Kelvin BidCo A/S (dissolved by merger) and
Kelvin HoldCo A/S (dissolved by merger).
Echo BidCo A/S had prior to the merger converted intra-
group receivables of DKK 1,066 million from Kelvin HoldCo
A/S into equity via a tax-free contribution. Reference is
made to the Statement of Changes in Equity.
In Q1 2024 the Group completed the transfer of production
and assembly of monitoring systems previously done
in the UK to the production facility in Denmark. With the
transfer the Group also completed the investments in the
production facilities initiated in 2023.
In 2024 the Group continued its significant investments
to support the future growth, such as expanding the
sales organization into new regions, further investments
in product and software development and investments in
supporting functions as well as improved office facilities.
Ellab A/S Annual Report 2024
Financial Performance
Page 20
Contents
Overview ..................................................................................................3
Financial Performance .......................................................18
Financial Review ........................................19
Board of Directors...................................22
Company Information .......................23
Financial Statements ............................................................24
Parent Company ..........................................................................62
Managementʼs Statement and Auditorʼs
Report ...........................................................................................................89
Contents Financial Review
The Group Revenue amounts to DKK 996.2 million and
has increased by DKK 361.6 million compared to last year
explained by the shortened financial year in 2023. The
2024 revenue was negatively impacted by the increasing
interest level which generally led to more cautious CAPEX
spending and demand from customers. The topline growth
is not in line with the expectations but considering the
market conditions and the Groupʼs performance compared
to peers Management finds a steady topline growth
satisfactory.
Operating profit before special items amounts to DKK
109.7 million and is greater than last year mainly explained
by the shortened financial year.
The adjusted EBITDA (note 7) for the period amounts to
DKK 276.4 million and is DKK 95.6 million greater than last
year mainly explained by the shortened financial year. The
adjusted EBITDA margin for the period amounts to 27.7 %
compared to 28.5 % in 2023. The slightly lower EBITDA
margin is primary explained by investments in organization
to fuel future growth.
Special items amounted to DKK 36.4 million and consist
of costs for organisational changes, ERP (cloud) roll-out
and implementing, consultants, costs for closing down UK
factory, restructuring costs and cost for the acquisition of
PharmaProcess Srl. and PharmaProcess GmbH.
Net financial items amount to a cost of DKK 97.1 million
compared to DKK 59.0 million last year explained by lower
net exchange rate gains.
Income taxes for the year amount to an income of DKK
4.4 million, equivalent to a tax percentage of 18.4%
versus -94.0% last year. The tax percentage is normalised
compared to last year where it was impacted by prior year
adjustments.
Net profit for the year amounts to DKK -19.4 million
compared to DKK 10.9 million last year. Total
comprehensive income amounts to DKK -12.8 million
and consists of the net profit for the year and a positive
exchange rate adjustments of net investments in foreign
operations.
Total assets amount to DKK 3,216.5 million as per 31
December 2024 compared to DKK 3,123.9 million as per
31 December 2023. Total assets are impacted by M&A
activity, CAPEX, new leases and higher receivables from
high sales activity in Q4 2024. Total equity amounts
to DKK 2,593.9 million as per 31 December 2024 and
has increased by DKK 1,028.8 million compared to 31
December 2023, explained by the tax-free contribution of
DKK 1,066.0 million from the parent company as a part of
the merger plan.
Cash flow from operating activities for the financial year
amounts to DKK 199.1 million compared to DKK 70.5 million
last year, explained by the shortened financial year and
less interest expenses and taxes paid. External financing
was until Novo Holdings and Lundbeckfond Investʼs
acquisition of the Ellab Group in September 2023 recorded
in Kelvin BidCo A/S (now Ellab A/S) but is now recorded
in Echo BidCo A/S which is the direct parent company of
Ellab A/S.
Cash flow from investing activities for the financial year
was an outflow of DKK 135.6 million compared to DKK
54.5 million last year. The higher outflow is explained by
the M&A activity in 2024, and significant investments in
expansion of the production site in Denmark. Furthermore,
the Group has invested significantly in research and
development projects during 2024 which has been
capitalized on the balance sheet.
Cash flow from financing activities amounts to an outflow
of DKK 51.9 million compared to DKK 28.1 million last year.
The outflow primarily consists of distribution of dividend
partly offset by a new loan from the parent used to finance
M&A activity.
Expectations from last year and development for the
coming year
The result for the period covers 12 months, whereas the
comparison period covers only eight months, making a
like-for-like comparison inappropriate. On a like-for-like
basis (adj. for M&A activity), revenue has increased by 2%
compared to last year, falling short of the expected 10–
15% growth. EBITDA has decreased 7%, and the EBITDA
margin has decreased 3 percentage points compared to
2023, primarily due to high inflation impacting costs. Net
profit is below expectations, largely due to significant
investments in organizational changes, the roll-out of a
new ERP system, and an extensive restructuring of the
Group, including relocating the production of monitoring
equipment to Denmark. Last yearʼs expectations
were based on an anticipated improvement in market
conditions, which has not materialized.
Ellab A/S Annual Report 2024
Financial Performance
Page 21
Contents
Overview ..................................................................................................3
Financial Performance .......................................................18
Financial Review ........................................19
Board of Directors...................................22
Company Information .......................23
Financial Statements ............................................................24
Parent Company ..........................................................................62
Managementʼs Statement and Auditorʼs
Report ...........................................................................................................89
Contents
Taking the market conditions into account, management
is satisfied with the 2024 financial performance. Despite
external challenges, the Group has demonstrated
resilience and adaptability. Furthermore, analyses show
that the Groups relative performance against peers
remains strong, reinforcing confidence in the strategic
direction. This solid positioning in the market provides
management with confidence that the Group continues to
maintain its competitive strength.
Management expects the interest levels and inflation
rates to decrease throughout 2025 which is expected to
improve the momentum for the Group. Management also
expects the M&A market to improve which will play an
important role in achieving the ambitions both short-term
and long-term. Based on these assumptions, Management
expects revenue to organically increase by a minimum of
10% and EBITDA to minimum increase by 15%.
Management is continuously monitoring the geopolitical
situation in order to stay competitive and take the
necessary decisions in due time to achieve the above-
mentioned expectations for the coming year.
Operating risk and financial risks
With activities around the world, Ellab has the risks
inherent in international activities, including currency risks,
particular in USD. Ellab Group is currently considering
the impact from the increasing tariffs in the US, as the
Group ships the assembled goods from Denmark to the
US. Management will implement structural changes and
will increase prices to offset the impact from the changed
tariffs. The Ellab Group is also to some extend exposed to
changes in interest rates.
Research and development
The Ellab Group continuously invest significantly in
Research and Development. R&D costs for 2024 amount
to DKK 24.8 million (2023: DKK 10.3 million) and relates
to the development of software, products and processes
within Validation and Monitoring Solutions as well as Field
Service & Consulting. The increase is explained by the
shortened financial year.
Intellectual capital resources of importance for future
earnings
The Groupʼs policy is a continuous development of
products and processes. It is therefore crucial that the
Group in the future can attract and retain competent and
motivated employees, including engineers.
Intellectual properties
Due to a growing organization and market presence,
and in order to strategically harvest the benefits of such
growth, the operating model of Ellab has naturally evolved
to a more centralized operating model over time, with a
number of key functions being performed centrally and
key strategic and operational decisions taken centrally by
the Company for the global organization.
Ellab A/S is generally the legal and economic owner of
the Groupʼs intangible property rights. This ownership is
aligned to and supported by the fact that Ellab A/S also
initiates, manages, finances, oversees and controls all
research and development activities within the Group.
Uncertainty relating to recognition and measurement
Recognition and measurement in the Annual Report have
not been subject to any uncertainty.
Unusual events
The Group has been materially affected by the
events explained in the section “Development in the
yearˮ.
The comparison figures consist of eight months due to
a change in accounting year in 2023. Furthermore, the
comparison figures are adjusted due to the merger with
Kelvin HoldCo A/S and Kelvin BidCo A/S.
Except from this, the Group and the results of the activities
and cash flows of the Group for the financial year 2024
have not been affected by any unusual events.
Subsequent events
No events materially affecting the assessment of the
Annual Report have occurred after the balance sheet date.
Ownership
The ultimate parent for which consolidated financial
statements are prepared is the Novo Nordisk Foundation.
The direct parent of Ellab Group is Echo BidCo A/S.
Financial Review
Ellab A/S Annual Report 2024
Financial Performance
Page 22
Contents
Overview ..................................................................................................3
Financial Performance .......................................................18
Financial Review ........................................19
Board of Directors...................................22
Company Information .......................23
Financial Statements ............................................................24
Parent Company ..........................................................................62
Managementʼs Statement and Auditorʼs
Report ...........................................................................................................89
Contents
Henrik Kjær Hansen
Vice chairperson
Independent: No
Senior Partner at Novo Holdings
Former: Moelis & Co. & Deutsche Bank & ABN
AMRO
Christian Salling
Board member
Independent: No
Senior Partner at Novo Holdings
Former: A.T. Kearney & Coloplast
Anders Hedegaard
Chairperson
Independent: Yes
Chairperson in ALK-Abello
Former: CEO in GN Hearing
and CEO in Bavarian Nordic
Board of Directors and Executive Board
Board of Directors
Board of Directors
Andreas Morthorst
CEO
Joined Ellab in Mar 2022
Ex CFO Tivoli, Sr. VP Scandinavian Tobacco Group,
Sr. Manager for Audit & Advisory at PWC, State
Authorized Public Accountant
Executive Board
Ellab A/S Annual Report 2024
Financial Performance
Page 23
Contents
Overview ..................................................................................................3
Financial Performance .......................................................18
Financial Review ........................................19
Board of Directors...................................22
Company Information .......................23
Financial Statements ............................................................24
Parent Company ..........................................................................62
Managementʼs Statement and Auditorʼs
Report ...........................................................................................................89
Contents Company Information
The Company
Ellab A/S
Trollesmindealle 25
DK-3400 Hillerød
The Company
Central Business Registration No: 20 89 69 49
Registered in: Hillerød
Financial period:
1 January 2024 to 31 December 2024
Hillerød, Denmark
Municipality of reg. office:
Board of Directors
Anders Hedegaard | Chairperson
Henrik Kjær Hansen | Vice chairperson
Christian Salling | Board member
Executive Board
Andreas Morthorst | CEO
Auditors
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Strandvejen 44
DK -2900 Hellerup
Ellab A/S Annual Report 2024
Financial Performance
Consolidated Financial Statements
Page 24
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Ellab A/S Annual Report 2024
Financial Statements
ELLAB A/S ANNUAL REPORT 2024
Financial Statements
Page 25
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Consolidated Income Statement
1 January 2024 - 31 December 2024 / 1 May 2023 - 31 December 2023
DKK million Note
12 months
2024
8 months
2023
Revenue 3 996.2 634.6
Cost of production 4, 5 (451.7) (292.8)
Gross profit 544.5 341.8
Distribution costs 4, 5 (237.9) (147.7)
Development costs 4, 5 (24.8) (10.3)
Administration costs 4, 5 (172.1) (97.3)
Operating profit bf special items 109.7 86.5
Special items 6 (36.4) (21.9)
Operating profit 73.3 64.6
Financial income 8 36.7 71.8
Financial expenses 8 (133.8) (130.8)
Profit before tax (23.8) 5.6
Income taxes 9 4.4 5.3
Net profit for the year (19.4) 10.9
Adjusted EBITDA 7
Consolidated Statement of Comprehensive Income
1 January 2024 - 31 December 2024 / 1 May 2023 - 31 December 2023
DKK million Note
12 months
2024
8 months
2023
Net profit for the year
(19.4) 10.9
Other comprehensive income
Items that will be recycled subsequently to
the Consolidated Income Statement:
Foreign exchange adjustments on net
investments in foreign operations
6.6 0.6
Other comprehensive income
for the year, net of tax 6.6 0.6
Total comprehensive income
for the year (12.8) 11.5
Ellab A/S Annual Report 2024
Financial Statements
Income Statement
Page 26
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Consolidated Balance Sheet at 31 December
Assets
DKK million Note 31 Dec 2024 31 Dec 2023
Intangible assets 10 2,559.4 2,577.3
Property, plant and equipment 11 90.8 74.1
Right-of-use assets 12 91.2 60.5
Other receivables 3.8 3.0
Deferred tax assets 9 0.3 0.3
Total non-current assets
2,745.5 2,715.2
Inventories 13 64.7 77.3
Trade receivables 14 244.9 202.9
Contract assets 15 22.3 14.8
Receivables from parent
companies
0.9 0.0
Other receivables 5.1 3.4
Prepayments 11.5 11.7
Income tax receivables 9.2 0.0
Cash and cash equivalents 112.4 98.6
Total current assets
471.0 408.7
Total assets 3,216.5 3,123.9
DKK million Note 31 Dec 2024 31 Dec 2023
Share capital 16
15.0 15.0
Reserve for currency translation
12.1 5.5
Retained earnings
2,566.8 1,544.6
Total equity
2,593.9 1,565.1
Credit facilities 17 57.7 53.5
Lease liabilities 12 76.1 48.9
Deferred tax liabilities 9 216.3 218.6
Payables to parent companies 22 69.1 1,025.0
Total non-current liabilities
419.2 1,346.0
Trade payables 31.6 38.2
Lease liabilities 12 19.6 18.4
Payables to parent companies 49.9 79.2
Income tax payables 18.0 3.3
Other payables 64.0 55.4
Contract liabilities 15 20.3 18.3
Total current liabilities
203.4 212.8
Total liabilities 622.6 1,558.8
Total equity and liabilities 3,216.5 3,123.9
Equity and Liabilities
Ellab A/S Annual Report 2024
Financial Statements
Page 27
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Consolidated Cash Flow Statement
1 January 2024 - 31 December 2024 / 1 May 2023 - 31 December 2023
DKK million Note
12 months
2024
8 months
2023
Net cash flow for the year 11.6 (12.1)
Cash and cash equivalents at the
beginning of the year
98.6 110.7
Effects of exchange rate changes on
cash and cash equivalents
2.2 0.0
Net cash flow for the year 11.6 (12.1)
Cash and cash equivalents at end
of the year 112.4 98.6
Cash and cash equivalents
comprise the following:
Cash at bank and in hand 112.4 98.6
Cash and cash equivalents at end
of the year 112.4 98.6
DKK million Note
12 months
2024
8 months
2023
Net profit for the year (19.4) 10.9
Adjustments 23 259.8 148.4
Changes in net working capital 24 (18.2) (19.8)
Financial income received 0.6 0.7
Financial expenses paid (9.5) (36.7)
Income taxes paid (14.2) (33.0)
Cash flow from operating activities 199.1 70.5
Purchase of intangible assets 10 (25.4) (11.4)
Purchase of property, plant & equip. 11 (45.5) (30.8)
Payment for acquisition of
subsidiaries, net of cash acquired 19 (64.9) (15.4)
Proceeds from sale of property,
plant and equipment 0.2 3.1
Cash flow from investing activities (135.6) (54.5)
Acquisition of treasury shares 0.0 (3.0)
New loan / repayment loan 4.2 (68.0)
Loan parent 68.7 74.5
Repayment of lease liabilities 25 (20.5) (10.8)
Dividend paid (104.3) (20.8)
Cash flow from financing activities
(51.9) (28.1)
Ellab A/S Annual Report 2024
Financial Statements
Cash Flow Statement
Page 28
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Consolidated Statement of Changes in Equity
DKK million Note Share capital
Reserve for
currency
translation
Retained
earnings Total
Equity at 1 January 2024 16 15.0 5.5 1,544.6 1,565.1
Profit for the year 0.0 0.0 (19.4) (19.4)
Other comprehensive income 0.0 6.6 0.0 6.6
Total comprehensive income for the year
0.0 6.6 (19.4) (12.8)
Contribution from parent 22 0.0 0.0 1,066.0 1,066.0
Dividends 16 0.0 0.0 (75.0) (75.0)
Sale of treasury shares 16 0.0 0.0 50.6 50.6
Transactions with owners
0.0 0.0 1,041.6 1,041.6
Equity at 31 December 2024
15.0 12.1 2,566.8 2,593.9
Ellab A/S Annual Report 2024
Financial Statements
Changes in Equity
Page 29
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Consolidated Statement of Changes in Equity
DKK million Note Share capital
Reserve for
currency
translation
Retained
earnings Total
Equity at 1 May 2023 16 15.0 4.9 1,636.7 1,656.6
Profit for the year 0.0 0.0 10.9 10.9
Other comprehensive income 0.0 0.6 0.0 0.6
Total comprehensive income for the year
0.0 0.6 10.9 11.5
Dividends 16 0.0 0.0 (100.0) (100.0)
Acquisition of treasury shares 0.0 0.0 (3.0) (3.0)
Transactions with owners
0.0 0.0 (103.0) (103.0)
Equity at 31 December 2023
15.0 5.5 1,544.6 1,565.1
Ellab A/S Annual Report 2024
Financial Statements
Page 30
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents Notes - Group
1. Accounting policies
2. Critical accounting estimates and judgements
3. Revenue from contracts with customers
4. Employee costs
5. Amortisation and depreciation
6. Special items
7. Adjusted EBITDA
8. Financial income and expenses
9. Income and deferred taxes
10. Intangible assets
11. Property, plant and equipment
12. Leases
13. Inventories
14. Trade receivables
15. Contract balances
16. Share capital
17. Financial risk management
18. Capital management
19. Business Combinations
20. Commitments and contingent liabilities
21. Fee to auditors appointed at the general meeting
22. Related parties
23. Cash flow statement - adjustments
24. Cash flow statement - changes in net working capital
25. Changes in liabilities arising from financing activities
26. List of group companies
27. Events after the balance sheet date
Ellab A/S Annual Report 2024
Financial Statements
Page 31
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
1. Accounting policies
The consolidated financial statements of the Group have been
prepared in accordance with IFRS accounting standards as
adopted by the EU as well as additional Danish disclosure
requirements applying to entities of large enterprises reporting
in class C.
The annual report has been prepared under the historical cost
convention. The financial statements are presented in million
Danish Kroner (mDKK) with one digit, which is also the parent
companyʼs functional currency.
Merger with parent companies
As of 1 January 2024, Kelvin HoldCo A/S completed the
merger with its wholly-owned subsidiaries, Kelvin BidCo A/S
and Ellab A/S, with Ellab A/S as the continuing entity. This
merger is accounted for as a business combination under
common control, where the assets and liabilities of Kelvin
BidCo A/S and Kelvin HoldCo A/S have been transferred to
Ellab A/S at their carrying amounts using the Group-value
method including restating the comparison numbers as
if the merger has always been in place. The following
table shows the 2023 numbers from the Ellab Groupʼs
consolidated financial statement from 1 May 2023 to 31
December 2023 and the restated numbers from the merger.
The opening balances of 1 May 2023 are equal to the
closing balances of 30 April 2023 reported in the 2022/23
consolidated financial statements of Kelvin HoldCo A/S.
DKK million
Total
comprehen-
sive income for
the year
Assets 31
December 2023
Liabilities 31
December 2023
Equity 31
December 2023
Ellab Group, pre merger 81.0 1,135.5 657.7 4 7 7.8
Result from merged companies
(mainly amortisation and interest
expenses, net of tax)
(69.5)
Goodwill from merged
companies
1,222.7
Other intangible assets from
merged companies
76 7.6
Mainly group balances and
deferred tax from merged
companies
(1.9) 901.1
Retained earnings from merged
companies
1,087.3
Ellab Group, post merger
11.5 3,123.9 1,558.8 1,565.1
Ellab A/S Annual Report 2024
Financial Statements
Page 32
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
1. Accounting policies (continued)
Change of reporting period in comparison figures
As a result of Novo Holdings and Lundbeckfond Investʼs
purchase of the Ellab Group in 2023, the reporting period
in the comparison numbers was changed (to align with the
reporting period of the ultimate parent company, The Novo
Nordisk Foundation) and only covers the eight months from
1 May 2023 to 31 December 2023, whereas the actual period
covers 12 months from 1 January 2024 to 31 December
2024. Consequently, the comparison figures in the financial
statements are not directly comparable.
Material accounting policies
The Groupʼs accounting policies are described in relation to
the individual notes to the Consolidated Financial Statements.
Management regards the following as the most material
accounting policy information for the recognition and
measurement of reported amounts as well as relevant to an
understanding of the Consolidated Financial Statements:
- Revenue from contracts with customers (note 3)
- Intangible assets (note 10)
- Business combinations (note 19)
Basis of consolidation
The consolidated financial statements include the parent
company, Ellab A/S, and its subsidiaries (the Group).
Subsidiaries are all entities over which the Group has control.
The Group controls an entity when the group 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 to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are deconsolidated
from the date that control ceases.
Intercompany transactions, balances and unrealised gains
on transactions between group companies are eliminated.
Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the transferred asset.
Foreign currency translation
Functional currency
Items included in the financial statements of each of the
Groupʼs entities are measured using the currency of the
primary economic environment in which the entity operates
(‘the functional currencyʼ).
Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are generally
recognised in profit or loss.
The results and financial position of foreign operations that
have a functional currency different from the presentation
currency are translated into the presentation currency as
follows:- assets and liabilities for each balance sheet presented
are translated at the closing rate at the date of that balance
sheet- income and expenses for each statement of profit or
loss and statement of comprehensive income are translated
at average exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing
on the transaction dates, in which case income and expenses
are translated at the dates of the transactions), and- all
resulting exchange differences are recognised in other
comprehensive income.
Business Combinations
The acquisition method of accounting is used to account
for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration
transferred for the acquisition of a subsidiary comprises the:-
fair values of the assets transferred- liabilities incurred to
the former owners of the acquired business- equity interests
issued by the group- fair value of any asset or liability resulting
from a contingent consideration arrangement, and- fair value
of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are, with limited
exceptions, measured initially at their fair values at the
acquisition date. The group recognises any non-controlling
interest in the acquired entity on an acquisition-by-acquisition
basis either at fair value or at the non-controlling interestʼs
proportionate share of the acquired entityʼs net identifiable
assets.
Ellab A/S Annual Report 2024
Financial Statements
Page 33
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Business Combinations (continued)
Acquisition-related costs are expensed as incurred.
The excess of the:- consideration transferred,- amount of any
non-controlling interest in the acquired entity, and- acquisition-
date fair value of any previous equity interest in the acquired
entity over the fair value of the net identifiable assets acquired
is recorded as goodwill. If those amounts are less than the fair
value of the net identifiable assets of the business acquired,
the difference is recognised directly in profit or loss as a
bargain purchase.
Where settlement of any part of cash consideration is deferred,
the amounts payable in the future are discounted to their
present value as at the date of exchange. The discount rate
used is the entityʼs incremental borrowing rate, being the
rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a
financial liability. Amounts classified as a financial liability are
subsequently remeasured to fair value, with changes in fair
value recognised in profit or loss. If the business combination
is achieved in stages, the acquisition date carrying value of
the acquirerʼs previously held equity interest in the acquiree is
remeasured to fair value at the acquisition date. Any gains or
losses arising from such measurement are recognised in profit
or loss.
Income statement
Cost of production
Cost of production comprises costs incurred to achieve
revenue for the year. Cost comprises raw materials,
consumables, direct labour costs and indirect production
costs such as maintenance and depreciation, etc, as well as
operation, administration and management of factories.
Distribution costs
Distribution expenses from sales units comprise costs in the
form of salaries to sales and distribution staff, advertising and
marketing expenses, sales office expenses as well as operation
of motor vehicles, depreciation, etc. amortisation of intangible
assets, except for development projects that are included in
development costs.
Development costs
Research and development costs comprise research costs,
costs relating to development projects that do not qualify for
recognition in the balance sheet as well as amortisation and
impairment of development projects.
Administrative costs
Administrative expenses comprise expenses for Management,
administrative staff, office expenses, depreciation, etc.
Income tax
The income tax expense or credit for the period is the tax
payable on the current periodʼs taxable income based on the
applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the
tax laws enacted or substantively enacted at the balance sheet
date in the countries where the Company and its subsidiaries
operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions, where
appropriate, on the basis of amounts expected to be paid to the
tax authorities.
Deferred income tax is provided in full, using the liability
method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the
consolidated financial statements. Deferred income tax is not
accounted for if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that
at the time of the transaction affects neither accounting nor
taxable profit or loss. Deferred income tax is determined using
tax rates (and laws) that have been enacted or substantially
enacted by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realised or
the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable
that future taxable amounts will be available to utilise those
temporary differences and losses.
Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised in other
Notes - Group
1. Accounting policies (continued)
Ellab A/S Annual Report 2024
Financial Statements
Page 34
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
comprehensive income or directly in equity. In this case, the
tax is also recognised in other comprehensive income or
directly in equity, respectively.
Impairment of non-current assets
Goodwill & development projects in progress are not subject
to amortisation but tested annually for impairment, or more
frequently if events or changes in circumstances indicate that
they might be impaired. Other assets are tested for impairment
whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the assetʼs carrying
amount exceeds its recoverable amount. The recoverable
amount is the higher of an assetʼs fair value less costs of
disposal and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of
assets (cash-generating units). Non-financial assets other than
goodwill that suffered an impairment are reviewed for possible
reversal of the impairment at the end of each reporting period.
Prepayments
Prepayments recognised as an asset comprise prepaid
expenses regarding subsequent financial reporting years.
Cash and cash equivalents
Cash and cash equivalents comprises cash and bank balances.
Equity
Share capital
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new shares are shown in
equity as a deductions, net of tax, from the proceeds.
Foreign currency translation reserve
Exchange differences arising on translation of the foreign
controlled entities are recognised in other comprehensive
income and accumulated in a separate reserve within equity.
The cumulative amount is reclassified to profit or loss when the
net investment is disposed of.
Dividends
Provision is made for the amount of any dividend declared,
being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but
not distributed at the end of the reporting period.
Financial liabilities
Borrowings are initially recognised at fair value which is
generally proceeds received, and net of transaction costs
incurred. Subsequently, borrowings are measured at amortised
cost. Borrowings are classified as current liabilities unless the
group has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period.
Provision
Provisions are measured as Managementʼs best estimate of the
amount which is expected to be required to settle the liability.
Provisions for the reinstatement of tenancies etc. upon eviction
are measured at the present value of the expected future
liability at the date of the statement of financial position. The
provision is determined based on current legislation and
estimated future costs, discounted to their present value.
Any specific risks that are believed to apply to the provision
are recognised in estimated costs. The discount factor used
reflects the general level of interest rates. Liabilities are
recognised as they arise and are adjusted on a regular basis to
reflect changes in requirements, price levels, etc. The increase
of the present value over time is recognised under financial
expenses in the statement of comprehensive income.
Other financial liabilities, including bank and loans, trade and
other payables, are on initial recognition measured at fair value.
The liabilities are subsequently measured at amortised cost.
Fair value estimation
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value of
financial assets traded in active markets are based on quoted
market prices at the close of trading on the reporting date.
The fair value of financial instruments that are not traded in an
active market is determined using generally accepted valuation
technics based on observable inputs from active markets. For
financial liabilities where the fair value is disclosed, the fair
value is estimated by discounting future contractual cash flows
at the current market interest rate.
Notes - Group
1. Accounting policies (continued)
Ellab A/S Annual Report 2024
Financial Statements
Page 35
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Cash flow statement
The cash flow statement shows the Groupʼs cash flows
for the year broken down by operating, investing and
financing activities, changes for the year in cash and
cash equivalents as well as the Companyʼs cash and cash
equivalents at the beginning and end of the year.
Cash flows from operating activities are calculated as the
net profit for the year adjusted for changes in working
capital and non-cash operating items such as depreciation,
amortisation and impairment losses, and provisions.
Working capital comprises current assets less short-term
debt excluding items included in cash and cash equivalents.
Cash flows from investing activities comprise cash flows
from acquisitions and disposals of companies, intangible
assets, property, plant and equipment as well as fixed asset
investments.
Cash flows from financing activities comprise cash flows
from the raising and repayment of long term debt and
principal element on lease payments as well as payments to
and from shareholders.
Key Figures
The financial ratios have been calculated in accordance
with the recommendations of the Association of Danish
Financial Analysts.
Financial highlights
Adoption of new and amended IFRSs
Management has assessed the impact of new or
amended and revised accounting standards and
interpretations (IFRSs) issued by the IASB and IFRSs
endorsed by the European Union effective on or after
1 January 2024. It is assessed that application of
amendments effective from 1 January 2024 has not had a
material impact on the consolidated financial statements
for 2024.
Furthermore, Management has assessed the impact
of new or amended accounting standards and
interpretations (IFRSs) issued by the IASB that have not
yet become effective. No new or amended accounting
standards or interpretations (IFRSs) have been early
adopted. Management does not anticipate any significant
impact on the consolidated financial statements in the
period of initial application after the adoption of these
amendments.
2. Critical accounting estimates and judgements
Solvency Ratio
Equity at year end
Total assets at year end
Return on equity
Net profit for the year
Average equity
Notes - Group
1. Accounting policies (continued)
In the preparation of the consolidated financial statements
according to IFRS, Management is required to make
certain estimates as many financial statement items
cannot be reliably measured, but must be estimated as
the value of assets and liabilities often depends on future
events that are somewhat uncertain.
The judgments, estimates and assumptions made
are based on historical experience and other factors
that Management considers to be reliable, but which
by their very nature are associated with uncertainty
and unpredictability. These assumptions may prove
incomplete or incorrect, and unexpected events or
circumstances may arise. A description of significant
accounting estimates and judgments is included in the
relevant notes:
- Goodwill (note 10)
- Business combinations (note 19)
Reference to the specific notes for further information on
the key accounting estimates and assumptions applied.
Ellab A/S Annual Report 2024
Financial Statements
Page 36
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
3. Revenue from contracts with customers
Accounting Policies
Revenue relating to sale of validation and monitoring solutions is recognised at
a point in time when control of the products transfers to the customers, usually
upon delivery. Each product is considered as one performance obligation.
Validation Solutions also includes rentals of equipments, which is recognised
over time as a service since the control of the equipment is not transferred to the
customer.
The revenue from field service & consulting services relates to consultancy
services for validation and other services. Revenue is derived over time and
recognised in the income statement as the services are rendered. Field service &
consulting contracts include fixed price contracts and contracts based on hourly
rates. Distinct contracts are considered as one performance obligation. Revenue
is recognised by measuring progress towards completion of the performance
obligation.
Measurement of progress is based on an input method relating to direct labour
hours spent. For contracts with differences between cumulative revenue
recognised and cumulative amounts invoiced to the customer, the Group
recognises a contract asset or a contract liability for the difference.
For field service and other consulting contracts where the customers are
invoiced a fixed amount for each hour of services provided, Ellab applies the
practical expedient in IFRS 15, whereby revenue is recognised in the amount to
which Ellab has a right to invoice, as this corresponds directly with the value
of the completed services.
The Group derives revenue from the following business lines.
DKK million
12 months
2024
8 months
2023
Validation Solutions 502.2 293.6
Monitoring Solutions 46.4 33.9
Field Services & Consulting 447.6 307.1
Total revenue 996.2 634.6
Revenue per geography:
United States 383.8 250.0
United Kingdom and Ireland 188.2 113.4
Rest of world 424.2 271.2
Total revenue 996.2 634.6
Revenue is recognised as follows:
At a point in time 475.3 291.2
Over time 520.9 343.4
Total revenue 996.2 634.6
Ellab A/S Annual Report 2024
Financial Statements
Page 37
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
4. Employee costs
DKK million
12 months
2024
8 months
2023
Wages and salaries 428.1 272.0
Defined contribution plans 15.2 11.8
Other social security costs 41.2 21.5
Total employee costs for the year 484.5 305.3
Employee costs incl. in intangible
assets (24.8) (9.5)
Change in employee costs incl. in
inventories (2.3) (5.3)
Total employee costs expensed to
the income statement 457.4 290.5
Wages and salaries, pensions and other social security expenses
are recognised in the following items:
Cost of production 257.7 171.8
Distribution costs 96.2 61.0
Development costs 9.2 6.1
Administrative costs
94.3 51.6
Total employee costs expensed to
the income statement 457.4 290.5
Average number of employees 757 751
Key Management Compensation
Key Management consists of Executive Board and Board of Directors and total
compensation paid or payable for employee services is shown below*:
f
DKK million
12 months
2024
8 months
2023
Wages and salaries 6.1 8.4
Board fee 1.1 0.6
Defined contribution plans 0.2 0.2
Other social security costs 0.0 0.0
Total 7.4 9.2
Executive Board received DKK 6.3 million (2023: DKK 8.1 million) in compensation
(amounts relate to two executive board members employed in the financial year).
Wages and salaries include fixed-base salary and accrued cash bonuses designed
to incentivize individual performance and the achievement of a number of
predefined short-term functional and individual business targets.
If an individual is dismissed, the ordinary salary is paid for up to a 9-month notice
period. In the event of change of control, individuals do not receive any additional
compensation.
Certain employees participate in a management equity program, which allows
them to acquire shares in Echo TopCo A/S (parent company) subject to customary
leaver options. As Ellab A/S is not part of the transaction it is considered an equity
settled program. The investments were made at fair value why no economic
benefit to the participants, hence, no expenditure or effect on either the balance
sheet or on the income statement of the Group.
*Part of the total compensation of key management personnel is charged via management
fees and not part of the total employee costs.
Ellab A/S Annual Report 2024
Financial Statements
Page 38
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
DKK million
12 months
2024
8 months
2023
Intangible assets 117.5 65.4
Property, plant and equipment 27.9 17.7
Right-of-use assets 21.3 11.2
Total 166.7 94.3
Amortisation and depreciation are recognised in the following items:
Cost of production 19.6 12.6
Distribution costs 114.4 67.1
Development costs 11.6 2.4
Administrative costs 21.1 12.2
Total 166.7 94.3
DKK million
12 months
2024
8 months
2023
Organisational changes 12.0 12.1
ERP roll-out and related IT
implementation costs 7.0 1.0
Consultants 5.7 3.9
Restructuring costs 11.7 0.0
Costs, sale of the Ellab Group 0.0 4.9
Total 36.4 21.9
Accounting Policies
Special items include significant income and expenses of a special non-recurring
nature which cannot be attributed directly to the Groupʼs ordinary operating activities
of the continued activities. Special items include costs related to acquisition of
businesses, organisational changes and other consultancy assistance. These items
are classified separately in the income statement to provide a transparent view of
the Groupʼs ordinary operating profit.
7. Adjusted EBITDA
Notes - Group
5. Amortisation and depreciation
Notes - Group
6. Special items
DKK million
12 months
2024
8 months
2023
Operating profit before special items 109.7 86.5
Amortisation and depreciation (note 5) 166.7 94.3
Adjusted EBITDA 276.4 180.8
Ellab A/S Annual Report 2024
Financial Statements
Page 39
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
8. Financial income and expenses
DKK million
12 months
2024
8 months
2023
Financial income
Exchange rate gains 34.7 62.3
Other financial income 2.0 9.5
Total 36.7 71.8
Financial expenses
Exchange rate losses 56.9 59.5
Interest expense to group companies 67.6 18.9
Interest expense on lease liabilities 5.5 2.5
Other financial expenses
3.8
49.9
Total 133.8 130.8
Effective interest expenses on financial liabilities measured at amortised cost
amounted to DKK 75.3 million (2023 DKK 51.9 million). Other financial income
includes fair value adjustment of financial liabilities of DKK 0.0 million (2023 DKK
8.6 million).
Accounting Policies:
Financial income and expenses are recognised in the income statements at the
amounts that relate to the financial year. Net financials include interest income
and expenses as well as impact from exchange rate gains/losses mainly related to
loans.
Notes - Group
9. Income and deferred taxes
DKK million
12 months
2024
8 months
2023
Current tax:
Current tax on profits for the year
Current tax profits for previous years
Deferred tax on profit for the year
15.7
(0.1)
(20.0)
6.8
0.1
(4.3)
Deferred tax profit for previous years 0.0 (7.9)
Total (4.4) (5.3)
Tax calculated at 22% of profit bf. tax (5.2) 1.2
Tax according to income statement (4.4) (5.3)
Variance 0.8 (6.5)
Tax effects of:
Differences in the tax rates in foreign
subsidiaries relative to 22% 0.9 0.5
Non-deductible expenses 0.3 0.2
Tax relating to previous years (0.1) (7.8)
Other incl. non-taxable fair value adj. (0.3) 0.6
Total 0.8 (6.5)
Effective tax rate 18.4% (94.0%)
Ellab A/S Annual Report 2024
Financial Statements
Page 40
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
9. Income and deferred taxes
DKK million 31 Dec 2024 31 Dec 2023
Deferred tax at 1 January / 1 May
(218.3) (235.0)
Deferred tax recognised in the income statement
20.0 12.2
Additions relating to acquisition of subsidiaries*
(17.7) 4.5
Deferred tax at 31 December
(216.0) (218.3)
Deferred tax relates to:
Intangible assets
(221.3) (224.7)
Property, plant and equipment
0.9 5.2
Leases
1.7 1.7
Inventories
0.8 0.6
Trade & other receivables
(0.6) (1.4)
Other liabilities
2.5 0.3
(216.0) (218.3)
Of which presented as deferred tax assets
0.3 0.3
Of which presented as deferred tax liabilities
(216.3) (218.6)
(216.0) (218.3)
* After completion of the preliminary business
combinations, adjustment of ‘deferred tax
liabilityʼ (DKK 4.5 million) have been included in
‘Additions relating to acquisition of subsidiariesʼ
in 2023. In 2024 the addition is related to the
acquisition during the financial year. Refer to
note 19.
From 1 January 2024 Ellab was subject to Global
Minimum Tax (OECD BEPS Pillar Two rules). The
rules did not have a material impact on the tax
position of Ellab in 2024. Ellab has applied the
exemption to recognise deferred tax assets and
liabilities arising from the implementation of the
Piller Two rules.
Ellab A/S Annual Report 2024
Financial Statements
Page 41
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
10. Intangible Assets
DKK million Goodwill
Other
intangible
assets Brand
Customers &
distributors Technology
Completed
development
projects
Development
projects in
progress Total
Cost:
At 1 January 2024 1,551.3 4.4 85.9 861.8 324.6 28.7 34.6 2,891.3
Business combinations 51.9 0.0 0.0 21.6 0.0 0.0 0.0 73.5
Additions during the period 0.0 0.0 0.0 0.0 0.0 0.0 25.4 25.4
Transfer for the year 0.0 0.0 0.0 0.0 0.0 36.9 (36.9) 0.0
Exchange rate adj. 0.4 0.0 0.0 0.4 0.0 0.0 0.0 0.8
At 31 December 2024 1,603.6 4.4 85.9 883.8 324.6 65.6 23.1 2,991.0
Accumulated amortisation:
At 1 January 2024 0.0 2.6 18.3 197.2 69.2 26.7 0.0 314.0
Amortisation for the period 0.0 0.8 4.6 70.7 29.8 11.6 0.0 117.5
Exchange rate adj. 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1
At 31 December 2024 0.0 3.4 22.9 268.0 99.0 38.3 0.0 431.6
Carrying amount
31 December 2024 1,603.6 1.0 63.0 615.8 225.6 2 7.3 23.1 2,559.4
Ellab A/S Annual Report 2024
Financial Statements
Page 42
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
10. Intangible Assets (continued)
DKK million Goodwill
Other
intangible
assets Brand
Customers &
distributors Technology
Completed
development
projects
Development
projects in
progress Total
Cost:
At 1 May 2023 1,555.8 4.2 85.9 862.4 324.6 25.9 26.2 2,885.0
Acquisition of business* (4.5) 0.0 0.0 0.0 0.0 0.0 0.0 (4.5)
Additions during the period 0.0 0.2 0.0 0.0 0.0 0.0 11.2 11.4
Transfer for the year 0.0 0.0 0.0 0.0 0.0 2.8 (2.8) 0.0
Exchange rate adj. 0.0 0.0 0.0 (0.6) 0.0 0.0 0.0 (0.6)
At 31 December 2023 1,551.3 4.4 85.9 861.8 324.6 28.7 34.6 2,891.3
Accumulated amortisation:
At 1 May 2023 0.0 2.0 15.4 150.7 56.2 24.3 0.0 248.6
Amortisation for the period 0.0 0.6 2.9 46.5 13.0 2.4 0.0 65.4
At 31 December 2023 0.0 2.6 18.3 197.2 69.2 26.7 0.0 314.0
Carrying amount
31 December 2023 1,551.3 1.8 67.6 664.6 255.4 2.0 34.6 2,577.3
*After completion of the preliminary business combinations, adjustments of ‘goodwillʼ (DKK -4.5 million) have been included in ‘Acquisition of businessʼ.
Ellab A/S Annual Report 2024
Financial Statements
Page 43
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Goodwill
Goodwill on acquisitions of subsidiaries is included in
intangible assets. Goodwill is not amortised but is tested for
impairment annually, or more frequently, if events or changes
in material circumstances indicate that it might be impaired.
Goodwill is carried at cost less accumulated impairment losses.
Other intangible assets
The Group amortises intangible assets with a finite useful life
using the straight-line method over the following periods:
Technology 10 years
Brand 15 years
Completed development projects 3 years
Other intangible assets 3-15 years
Customers & distributors 5-15 years
Amortisation is recognised in the income statement as
‘Distributionʼ and ‘Developmentʼ costs.
Customers and distributors
On initial recognition, customers and distributors identified
from business combinations are recognised in the balance
sheet at fair value. Subsequently, customers and distributors
are measured at cost less accumulated amortisation and
impairment losses.
Technology
On initial recognition, technology identified from business
combinations are recognised in the balance sheet at fair
value. Subsequently, technology is measured at cost less
accumulated amortisation and impairment losses.
Brand
On initial recognition, brand identified from business
combinations are recognised in the balance sheet at fair value.
Subsequently, brand is measured at cost less accumulated
amortisation and impairment losses.
Development projects
Development costs cover costs and salaries directly or
indirectly attributable to the development activities of the
enterprise.
Development projects that are clearly defined and identifiable
and in respect of which technical feasibility, sufficient
resources and a potential future market or development
opportunity in the enterprise can be demonstrated, and where
it is the intention to manufacture, market or use the project,
are recognised as intangible assets. This applies where the
cost can be measured reliably and if sufficient certainty exists
that future earnings cover production costs, selling costs and
administrative expenses as well as the development costs.
Amortisation of development projects recognised will start
when the asset is ready for use.
Other development costs are recognised in the income
statement as incurred.
Development projects in progress
For development projects in progress, Management estimates
on an ongoing basis whether each project is likely to generate
future economic benefits for the Group in order to qualify
for recognition. The development projects are evaluated on
technical as well as commercial criteria. In Managementʼs
opinion, the development projects qualify for recognition.
Development projects completed and in progress
Development projects in progress and completed development
projects relates to development of the Groupʼs products and are
internally developed. Research and development costs expensed
during the year amount to DKK 13.2 million (2023 DKK 7.9 million)
excluding amortisation. The carrying amount of development
projects in progress is tested for impairment at least once a year.
Goodwill, customers and distributors and technology
Goodwill, customers and distributors and technology relates to the
completed acquisitions in:
- 2024 (PharmaProcess, Italy and Switzerland)
- 2022/23 (Causa B.V., the Netherlands, Project Support A/S,
Denmark, CalX Ltd., Ireland, Integrated Commissioning &
Qualification Corp., US, Evolution Scientific Inc., US, Complete
Technical Solutions (CQV) Ltd., UK, PharmaSys Inc., US)
- 2021/22 (Valcom Compliance and Validation B.V., the
Netherlands, Arena Instrumentation Ltd., United Kingdom, Clover
Life Science S.r.l., Italy, Manilite Limited, Ireland)
- 2020/21 (P.E.C. (Denmark) A/S, Denmark)
- 2019/20 (Hanwell Group, United Kingdom, Instrument Technology
Limited, Ireland, Adsano Group, Germany and Switzerland,
Argideen Science Limited, Ireland.
- 2018/19 (Ellab A/S, FasInternational Srl, Italy)
Acquired technology relates to established systems and
procedures while acquired customers and distributors relates to
the existing network of customers and distributors that will expand
the Groupʼs current markets.
Notes - Group
10. Intangible Assets (continued)
Ellab A/S Annual Report 2024
Financial Statements
Page 44
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
10. Intangible Assets (continued)
Impairment tests
The Group continuously assesses whether there is any
indication that an asset may be impaired. If any indication
exists, or when annual impairment testing of goodwill and
development project in progress are required, the Group
estimates the recoverable amount of the asset.
Result of the annual impairment test - goodwill
The carrying amount of goodwill, DKK 1,600.9 million (2023
DKK 1,551.3 million), relating to completed acquisitions, is
tested annually for impairment. The recoverable amount is
calculated as the present value of future net cash flows.
The entities are monitored by Management as a single cash
generating unit (CGU) since it is not practically possible to
separate the revenue streams into smaller cash generating
units. The Group sell products and services from all three
business lines to its customers, why the organisation is
setup so that sales, marketing, customer service and R&D
etc. supports all three business lines. Moreover, assets and
liabilities cannot clearly be allocated to one specific business
line as they concern and include impact from all business lines.
Key parameters in the test are revenue growth, EBITDA
margins, expected capital expenditure and growth expectations
for the terminal period.
The estimated future free net cash flows in the impairment
test for 2024 are based on budget for 2025 and the business
plans and projections to 2032 for the combined business
activities considered as one CGU. Revenue is expected to
increase by an annually average of 10.9% from 2024 to 2032.
The long-term growth rate in the terminal period is estimated
to 2.2% for the use of this impairment test. All regions are
expected to continue the growth relating to sale of validation
and monitoring solutions and further develop field service and
other consulting activities. The EBITDA margin is estimated to
a level corresponding to historical EBITDA margins and in line
with long term expectations and forecasts. A discount rate
(WACC) was applied for the specific business areas based on
assumptions about interest rates and risks reflecting the risks
inherent in the assets. WACC was estimated to 8.5% (pre-tax
discount rate 11.0%) based on the cost of debt related to
external financing of bank loan for the acquisitions and cost of
equity based on the rate of return.
The assumptions used in the impairment test for 2024 were
in all materiality in accordance with the impairment test for
2023 for key assumptions relating to growth and discount
rate. However, the budget period was in 2024 extended from
five to eight years to better reflect the trend from high growth
rates towards a steady stade level that will be used for the
terminal period. For the period ending 31 December 2023, the
budget and business plans were based on revenue expected
to increase annually by 17% from 2023 to 2028. The long-term
growth rate in the terminal period was estimated to 1%. In 2023
discount rate (WACC) was applied for the specific business
areas based on assumptions about interest rates and risks
reflecting the risks inherent in the assets. WACC was estimated
to 9.9% (pre-tax discount rate 12.7%).
Key assumptions have been determined by using a
combination of long-term trends, historical performance
and the Groupʼs strategy. The expected annual growth rate
and the expected margins in the budget period are based on
historical experience and assumptions about expected market
developments.
The impairment tests did not show indications of impairment
losses to be recognised. In Managementʼs opinion, reasonable
changes in key assumptions mentioned above will not cause
significant impairment losses.
Development projects in progress
The carrying amount of development projects in progress
is tested for impairment at least once a year. If the tests
show evidence of impairment, the asset is written down to
the recoverable amount through the income statement. The
recoverable amount is the higher of the fair value of the asset
less the expected costs to sell and its value in use. The value in
use is calculated as the present value of expected future cash
flows from the development projects in progress.
Key accounting estimates:
Goodwill impairment test
The group tests whether goodwill has suffered any
impairment on an annual basis. Qualitative factors
considered in this assessment include industry and market
considerations, financial performance and other relevant
events and factors affecting the Group. For the 2024 and
2023 reporting periods, the recoverable amount of the
cash-generating unit was determined based on value-in-use
calculations which require the use of assumptions in the
calculation of cash-flow projections, discount rates and
terminal growth rates.
Ellab A/S Annual Report 2024
Financial Statements
Page 45
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
11. Property, plant and equipment
Key accounting estimates (continued):
The calculations use cash flow projections
based on financial forecasts covering a five to
eight-year period. Cash flows beyond the eight-
years period are extrapolated using an estimated
growth rate. Key estimates in the calculation of
discounted future cash flows include expected
growth in revenue, estimated costs and discount
rate. Estimates of growth and costs are based
on historical data combined with various internal
estimates and external sources including macro
economy expectations.
Accounting Policies:
Property, plant and equipment is measured at
historical cost less accumulated depreciation
and impairment losses. The cost includes
expenditure that is directly attributable to the
acquisition of the items. Subsequent costs
are included in the assetʼs carrying amount or
recognised as a separate asset, as appropriate,
only when it is probable that future economic
benefits associated with the item will flow
to the group and the cost of the item can be
measured reliably. The carrying amount of any
component accounted for as a separate asset is
derecognised when replaced. All other repairs
and maintenance are charged to profit or loss
during the reporting period in which they are
incurred.
DKK million
Land and
buildings
Plant and
machinery
Other
fixtures and
equipment
Leasehold
improvements Total
Cost:
At 1 January 2024 1.7 1 7.1 161.3 19.0 199.1
Acquisition of business 0.0 0.0 1.4 0.0 1.4
Additions 0.0 4.5 21.7 19.3 45.5
Disposals (1.7) (1.3) (8.7) (1.9) (13.6)
Exchange rate adj. 0.0 0.0 2.7 0.0 2.7
At 31 December 2024 0.0 20.3 178.4 36.4 235.1
Accumulated
depreciation:
At 1 January 2024
0.2 6.6 110.4 7.8 125.0
Depreciation
0.0 2.2 23.3 2.4 27.9
Disposals
(0.2) (0.3) (7.5) (1.3) (9.3)
Exchange rate adj.
0.0 0.0 0.7 0.0 0.7
At 31 December 2024 0.0 8.5 126.9 8.9 144.3
Carrying amount
31 December 2024 0.0 11.8 51.5 27.5 90.8
11. Property, plant and equipment
10. Intangible Assets (continued)
Ellab A/S Annual Report 2024
Financial Statements
Page 46
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
11. Property, plant and equipment
DKK million
Land and
buildings
Plant and
machinery
Other
fixtures and
equipment
Leasehold
improvements Total
Cost:
At 1 May 2023 4.1 9.1 150.9 12.6 176.7
Additions 0.0 7.9 16.5 6.4 30.8
Disposals (2.4) 0.0 (4.2) 0.0 (6.6)
Exchange rate adj. 0.0 0.1 (1.9) 0.0 (1.8)
At 31 December 2023 1.7 17.1 161.3 19.0 199.1
Accumulated
depreciation:
At 1 May 2023
0.3 6.1 98.6 6.8 111.8
Depreciation
0.0 0.4 16.3 1.0 17.7
Disposals
(0.1) 0.0 (4.2) 0.0 (4.3)
Exchange rate adj.
0.0 0.1 (0.3) 0.0 (0.2)
At 31 December 2023 0.2 6.6 110.4 7.8 125.0
Carrying amount
31 December 2023 1.5 10.5 50.9 11.2 74.1
Depreciations are recognised in the income statement as “Cost of productionˮ, “Distribution costsˮ and “Administration
costsˮ.
Accounting Policies:
Depreciations are calculated using the straight-
line method, net of their residual values over their
estimated useful lives, as follows:
Buildings 40 years
Plant and machinery 5-10 years
Other fixtures and equipment 3-5 years
Leasehold improvements 5-10 years
The assetsʼ residual values and useful lives are
reviewed, and adjusted if appropriate, at the end of
each reporting period.
Ellab A/S Annual Report 2024
Financial Statements
Page 47
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
12. Leases
The Group has recognised the following amounts relating to leases:
DKK million 31 Dec 2024 31 Dec 2023
Right-of-use assets
Properties 78.3 51.3
Cars and other leases 12.9 9.2
Total
91.2 60.5
Lease liabilities
Non-current 76.1 48.9
Current 19.6 18.4
Total
95.7 67.3
Additions to the right-of-use assets during the financial year ending 31 December
2024 were DKK 53.1 million (2023 DKK 14.7 million) of which DKK 0.4 million (2023
DKK 0.0 million) was from business acquisitions.
The income statement shows the following amounts relating to leases:
DKK million
12 months
2024
8 months
2023
Depreciation, properties 15.7 8.8
Depreciation, cars and other leases 5.6 2.4
Interest expense on lease liabilities 5.5 2.5
Total income statement
26.8 13.7
The total cash outflow for leases in the financial year was DKK 26.0 million (2023
DKK 13.3 million). For maturity analysis refer to note 17.
The Group leases various properties, equipment and cars. Rental contracts are typically made for fixed periods of 3 to 10 years but may have extension
options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose
any covenants, but leased assets may not be used as security for borrowing purposes.
Extension options or periods after termination options are included in the lease term if the lease is reasonably certain to be extended or not terminated based
on the Groupʼs strategy and other relevant factors such as significant leasehold improvements. The Group has not entered into significant lease contracts
that have not yet commenced.
Ellab A/S Annual Report 2024
Financial Statements
Page 48
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
12. Leases (continued)
Accounting policies:
Leases are recognised as a right-of-use asset and a
corresponding liability at the date at which the leased
asset is available for use by the group. Each lease payment
is allocated between the liability and finance cost. The
finance cost is charged to the income statement over the
lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each
period. The right-of-use asset is depreciated over the
shorter of the assetʼs useful life and the lease term on a
straight-line basis.
Leases include mainly properties and cars.
Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities include
the net present value of the following lease payments:
- fixed payments (including in-substance fixed payments),
less any lease incentives receivable
- variable lease payment that are based on an index or a
rate
- amounts expected to be payable by the lessee under
residual value guarantees
- the exercise price of a purchase option if the lessee is
reasonably certain to exercise that option, and
- payments of penalties for terminating the lease, if the
lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate
implicit in the lease, if that rate can be determined, or the
groupʼs incremental borrowing rate.
Lease liabilities are subsequently measured by increasing
the carrying amount to reflect interest on the lease liability,
and reducing the carrying amount to reflect the lease
payments made.
Right-of-use assets are measured at cost comprising the
following:
- the amount of the initial measurement of lease liability
- any lease payments made at or before the
commencement date less any lease incentives received
- any initial direct costs, and restoration costs.
Variable lease payments, payments associated with short-
term leases and leases of low-value assets are recognised
on a straight-line basis as an expense in the income
statement. Short-term leases are leases with a lease
term of 12 months or less. Low-value assets comprise IT-
equipment and small items of office furniture.
Ellab A/S Annual Report 2024
Financial Statements
Page 49
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
13. Inventories
DKK million 31 Dec 2024 31 Dec 2023
Raw materials and consumables 20.7 31.7
Finished goods and goods for resale 44.0 45.6
Total
64.7 7 7.3
The following are included in "Costs of production":
Inventories recognised as an expense
93.8 53.3
Accounting Policies:
Inventories are measured at the lower of cost under the FIFO method and net
realisable value.
The net realisable value of inventories is calculated at the amount expected to
be generated by sale of the inventories in the process of normal operations with
deduction of selling expenses. The net realisable value is determined allowing for
marketability, obsolescence and development in expected selling price.
The cost of finished goods and work in progress comprises the cost of raw
materials, consumables and direct labour with addition of indirect production
costs. Indirect production costs comprise the cost of indirect materials and labour
as well as maintenance and depreciation of the machinery, factory buildings
and equipment used in the manufacturing process as well as costs of factory
administration and management.
Ellab A/S Annual Report 2024
Financial Statements
Page 50
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
14. Trade receivables
DKK million 31 Dec 2024 31 Dec 2023
Trade receivables (gross) 248.0 205.9
Provision for bad debt (3.1) (3.0)
Trade receivables net
244.9 202.9
Movement on the Group's provision for bad debt are as follows:
Opening balances (3.0) (3.4)
Additions for the period (0.5) (0.4)
Reversals 0.1 0.1
Confirmed losses 0.3 0.7
Provision for bad debt
(3.1) (3.0)
Accounting Policies:
Trade receivables are recognised initially at fair value and subsequently measured
at amortised cost using the effective interest method, less loss allowance. The
Group holds the trade receivables with the objective to collect the contractual
cash flows and therefore measures them subsequently at amortised cost.
Trade receivables are generally due for settlement within 30 to 90 days and
therefore are all classified as current. Due to the short-term nature of the current
receivables, their carrying amount is considered to be the same as their fair value.
Trade receivables are recognised initially at the amount of consideration that is
unconditional.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses which uses a lifetime expected loss allowance for all trade receivables.
The allowance is based on a provision matrix on aging of customers and includes
both historical as well as forward-looking information. The cost of allowances for
expected credit losses are recognised in the income statements as distribution
costs. Subsequent recoveries of amounts previously written off are credited
against distribution costs.
The maximum credit exposure is equal to the carrying value of trade receivables.
For a further description of management of credit risks, please see note 17
Financial risk management.
Ellab A/S Annual Report 2024
Financial Statements
Page 51
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
14. Trade receivables (continued)
DKK million Receivable Loss rate %
31 Dec 2024
Provision
Impairment of trade receivables can be specified as follows:
Current 167.5 0.0% 0.0
Overdue < 30 days 33.7 0.0% 0.0
Overdue 31 - 60 days 18.1 0.0% 0.0
Overdue 61 - 90 days 7.8 0.1% 0.0
Overdue 91 - 120 days 5.8 0.0% 0.0
Overdue > 121 days 15.1 20.6% 3.1
Total
248.0 3.1
DKK million Receivable Loss rate %
31 Dec 2023
Provision
Impairment of trade receivables can be specified as follows:
Current 130.4 0.0% 0.0
Overdue < 30 days 29.8 0.0% 0.0
Overdue 31 - 60 days 16.9 0.2% 0.0
Overdue 61 - 90 days 12.4 0.8% 0.1
Overdue 91 - 120 days 12.1 12.4% 1.5
Overdue > 121 days 4.3 32.6% 1.4
Total
205.9 3.0
Ellab A/S Annual Report 2024
Financial Statements
Page 52
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
15. Contract balances
The Group has recognised the following related to contracts with customers:
DKK million 31 Dec 2024 31 Dec 2023
Trade receivables 244.9 202.9
Contract assets 22.3 14.8
Contract liabilities 20.3 18.3
Revenue recognised in the reporting period that was included in contract
liabilities at the beginning of the period is DKK 18.3 million
(2023: DKK 14.4 million).
Accounting Policies:
Contract assets relates to field service contracts and other consultancy contracts
with customers where revenue is recognised over time in the income statement
when the outcome of the contracts can be estimated reliably. If the services
rendered by the Group exceed the payment, a contract asset is recognised.
Contract liabilities are prepayments by customers for goods and services that have
not been delivered and prepayments relating to rental of equipment.
Notes - Group
16. Share capital and treasury shares (continued)
31 December 2024 31 December 2023
The share
capital
comprise:
Number
of shares
(‘000)
Nominal
value (DKK
million)
Number
of shares
(‘000)
Nominal
value (DKK
million)
A shares 15,000 15.0 15,000 15.0
Share
capital 15,000 15.0 15,000 15.0
All shares have a nominal value of DKK 1. All shares carry same rights and
preferences. The shares carry no restrictions.
Dividends (DKK million)
2024 2023
Interim dividend 0.0 25.0
Dividend prior years 75.0 75.0
Total distribution for the year
75.0 100.0
DKK 75.0 million dividend distributed in 2024 (proposed dividend in the
Annual Report 2023) was DKK 5.0 per share.
DKK 100.0 million dividend distributed in 2023 (proposed dividend in the
Annual Report 2022/23 and interim dividend in 2023) was DKK 6.67 per share.
Retained earnings at 31 December 2024 includes proposed dividend of
DKK 100.0 million (DKK 6.67 per share).
16. Share capital and treasury shares
Kelvin HoldCo A/S (part of the merger) owned 1.4 million treasury shares
at the beginning of the financial year. The treasury shares was sold to the
parent company, Echo BidCo A/S at a value of DKK 50.6 million during
2024. The transaction was made as a non-cash transfer as the value of the
shares was used to partly reduce the loan from Echo BidCo A/S.
Ellab A/S Annual Report 2024
Financial Statements
Page 53
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
17. Financial risk management
Financial risk factors
The Groupʼs management of financial risks is centralized
to Ellab A/S. The Group identifies, monitors, assesses and
mitigates financial risk at headquarter in cooperation with
the Groupʼs business units. The Group is exposed to foreign
exchange risk, liquidity risk and credit risk that can have a
significant impact on the financial performance of the Group.
Significant risks are continuously assessed by Management
and the Board of Directors. The level of risks are assessed to
unchanged from previous years.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future
cash flows of an exposure will fluctuate because of changes
in foreign exchange rates.
The Group has international operating activities. As a resultat
of the Groupʼs structure, Management has assessed the
risks related to foreign exchange rate as normal. The Group
handles exchange rate risk by establishing sales entities in
countries where the Group has significant activities or where
the Group expects growth, thereby matching income and
expenses in the same currency. As a result of the Groupʼs
structure, sales from local sales entities are invoiced in the
local functional currency and expenses incurred are in the
local functional currency. Hence the Group companies do
not have significant transactions in other currencies than
the local functional currency. As a result of this strategy, the
exposure to foreign exchange rates is minimized and the risk
relating to foreign exchange rates considered normal.
The Group does not hedge foreign currency risk.
Sensitivity:
The Group is primarily exposed to changes in USD. The
sensitivity of profit or loss to changes in the exchange rates
arises mainly from USD denominated financial instruments,
such as intercompany loans. The sensitivity analysis is based
on financial instruments recognised at 31 December 2024 in
the balance sheet and the assumption that all other variables
and exposures remain constant. The sensitivity analysis does
not include financial assets and liabilities in the functional
currency of the Groupʼs subsidiaries or translation risk from
consolidation of income statement.
A 5% increase in the year-end rate in the following currencies
versus DKK would impact the Groupʼs profit and equity as
follows (a 5% decrease would have the opposite impact):
Interest rate risk
The Groupʼs interest-bearing assets / liabilities consist of cash
and cash equivalents, credit facilities and loans from parent
companies (non-current) and are all at floating rates.
An increase in relevant interest rates of 1%-point would have
decreased net profit by DKK 0.8 million (2023 DKK 8.2 million).
Credit risk
Credit risk arises from cash and cash equivalents, as well
as credit exposures to customers, including outstanding
receivables. The Groupʼs primary credit exposure is related
to trade receivables (see note 14 for information on expected
credit losses) and cash positions.
The credit risk of the Group is assessed to be low. Credit risk
related to trade receivables is managed by continuous risk
assessment of major customers. The Group has policies in
relation to maximum credit limits and prepayment requirements
for customers with high credit risk. Based on forecasts as well
as historical data, the Group expects only insignificant loss
allowances for trade receivables. The Group has no major
exposure relating to one single customer or business partner.
In relation to the credit risk related to financial institutions,
the Group monitors financial institutions and places funds in
financial institutions with satisfactory credit ratings.
Liquidity risk
Based on the Groupʼs financial reserves and credit facilities,
the liquidity risk of the Group is assessed to be low. Overall, the
Groupʼs external debt financing is limited.
The financial position of the Group and short-term forecasts of
liquidity reserves is continuously monitored by Management
and the finance department to ensure that sufficient financial
resources are available.
Impact on profit for the year
2024 2023
USD 3.3 (12.0)
Ellab A/S Annual Report 2024
Financial Statements
Page 54
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
17. Financial risk management (continued)
31 December 2024
DKK million 0-1 year 1-5 years After 5 years Total*
Fair value
level 2**
Fair value
level 3***
Carrying
amount
Recognised at amortised cost
Credit facilities 3.0 65.9 0.0 68.9 57.7 57.7
Lease liabilities 22.0 57.1 35.2 114.3 95.7
Trade payables 31.6 0.0 0.0 31.6 31.6
Group payables 53.6 79.2 0.0 132.8 119.0
Other payables 61.0 0.7 0.0 61.7 61.7
Total 171.2 202.9 35.2 409.3 57.7 365.7
Recognised at fair value
Other payables 2.3 0.0 0.0 2.3 2.3 2.3
Total 2.3 0.0 0.0 2.3 2.3 2.3
Total financial liabilities 173.5 202.9 35.2 411.6 57.7 2.3 368.0
Recognised at amortised cost
Cash 112.4 0.0 0.0 112.4 112.4
Trade receivables 244.9 0.0 0.0 244.9 244.9
Group & other receivables 6.0 0.2 3.6 9.8 9.8
Total financial assets 363.3 0.2 3.6 367.1 367.1
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies
are calculated based on the rates at the balance sheet date.
** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, Group and other
payables, trade receivables and other receivables which are stated at the net carrying amount at year-end.
*** Financial liabilities measured at fair value level 3 relate to earn-outs. Calculation of fair value of the earn-outs is based on probability-weighted financial
performance outcomes relevant to the earn-out agreements. Fair value adjustments are recognised in the profit or loss.
Ellab A/S Annual Report 2024
Financial Statements
Page 55
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
17. Financial risk management (continued)
31 December 2023
DKK million 0-1 year 1-5 years After 5 years Total*
Fair value
level 2**
Fair value
level 3***
Carrying
amount
Recognised at amortised cost
Credit facilities 3.3 65.5 0.0 68.8 53.5 53.5
Lease liabilities 19.8 54.1 8.0 81.9 67.3
Trade payables 38.2 0.0 0.0 38.2 38.2
Group payables 148.4 1,280.2 0.0 1,428.6 1,104.2
Other payables 53.2 0.0 0.0 53.2 53.2
Total 262.9 1,399.8 8.0 1,670.7 53.5 1,316.4
Recognised at fair value
Other payables 0.0 2.8 0.0 2.8 2.2 2.2
Total 0.0 2.8 0.0 2.8 2.2 2.2
Total financial liabilities 262.9 1,402.6 8.0 1,673.5 53.5 2.2 1,318.6
Recognised at amortised cost
Cash 98.6 0.0 0.0 98.6 98.6
Trade receivables 202.9 0.0 0.0 202.9 202.9
Group & other receivables 3.4 3.0 0.0 6.4 6.4
Total financial assets 304.9 3.0 0.0 307.9 3 07.9
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies
are calculated based on the rates at the balance sheet date.
** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, Group and other
payables, trade receivables and other receivables which are stated at the net carrying amount at year-end.
*** Financial liabilities measured at fair value level 3 relate to earn-outs. Calculation of fair value of the earn-outs is based on probability-weighted financial
performance outcomes relevant to the earn-out agreements. Fair value adjustments are recognised in the profit or loss.
Ellab A/S Annual Report 2024
Financial Statements
Page 56
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
18. Capital management
The Groupʼs objective when managing capital is to safeguard their ability
to continue as a going concern, so that the Company can continue to
provide returns for shareholders and benefits for other stakeholders and
maintain an optimal capital structure.
The Group centrally monitors capital on relevant key figures. The Group
manages its capital structure and makes adjustments in light of changes
in economic conditions. The Group monitors capital on the basis of the
net debt to adjusted EBITDA ratio including the parent company Echo
BidCo A/S. The Groupʼs strategy during 2024 was to maintain a net debt
to adjusted EBITDA ratio below 6.5 (2023: ratio below 6.5). The Group
fulfilled capital management targets during 2024.
Ellab A/S Annual Report 2024
Financial Statements
Page 57
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
19. Business combinations
Acquisitions 2024
On 28 November 2024 the Group acquired 100% of
the share capital in PharmaProcess Srl based in Italy
and PharmaProcess GmbH based in Switzerland
(“PharmaProcessˮ) in a combined acquisition. The total
purchase consideration of DKK 68.8 million and was
paid in cash.
PharmaProcess
PharmaProcess is an esteemed provider of specialized
services like pharmaceutical engineering consultancy
and commissioning & validation for the life science
sector.
The acquisition of PharmaProcess enhances Ellabʼs
service portfolio in Italy and Switzerland, enabling
the delivery of integrated solutions for clients in the
life science sector with Ellab and PharmaProcessʼs
combined offerings.
Details of the acquisition
Net assets have been adjusted to comply with the
Groupʼs accounting policies and financial reporting
requirements. The calculated goodwill of DKK 51.9
million relates to know-how, workforce and synergies
expected from combining the operations of the Ellab
Group and the acquired businesses relating to sale
of validation and monitoring solutions as well as
optimising processes within sales, and Field Service &
Consulting expertise. The value of customers of DKK
21.6 million is based on the fair value assessment of
the customer relationships at the acquisition date.
The recognition of fair value assets have resulted in
recognition of a deferred tax liability of DKK 17.7 million.
Acquisition-related costs of DKK 2.7 million are
included in ‘Special Itemsʼ in the income statement and
DKK 1.1 million in operating cash flows in the statement
of cash flows.
The goodwill recognised is not tax deductable for
income tax purposes.
PharmaProcess contributed with revenue of DKK 2.9
million and profit for the year of DKK 0.7 million to the
Group for the period from 28 November 2024 to 31
December 2024.
If the acquisition had occurred on 1 January 2024,
proforma revenue and profit for the year ended 31
December 2024 would have been DKK 1,027.4 million
and DKK -15.3 million respectively.
Details of the purchase consideration, the net assets
acquired and goodwill are as follows:
DKK million 2024
Customers 21.6
Property, plant and equipment 1.4
Right of use asset 0.4
Trade and other receivables 17.2
Cash 3.9
Total assets
44.5
Deferred tax liability, net 17.7
Lease liabilities 0.4
Trade payables 1.6
Income tax 4.1
Other payables 3.8
Total liabilities 27.6
Acquired net assets 16.9
Goodwill 51.9
Total purchase price 68.8
Cash flow impact:
Cash payment 68.8
Less cash in acquired business (3.9)
Cash flow in investing activities 64.9
Ellab A/S Annual Report 2024
Financial Statements
Page 58
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Charges and security
Shares in the parent company, Ellab Inc., Ellab GmbH,
Ellab UK Ltd., Ellab Benelux B.V. and Ellab Ireland Ltd.
have been pledged as security for credit institutions of
the parent company Echo BidCo A/S.
Contingent liabilities
The Danish Group companies are jointly and severally
liable for tax on the jointly taxed incomes etc. of the
Group. The total amount of corporation tax payable is
disclosed in the Annual Report of Novo Holdings A/S,
which is the management company of the joint taxation
purposes. Moreover, the Group companies are jointly
and severally liable for Danish withholding taxes by
way of dividend tax, tax on royalty payments and tax
on unearned income. Any subsequent adjustments of
corporation taxes and withholding taxes may increase
the Companyʼs liability.
The Group is not involved in lawsuits expected to have
a material effect on the financial position of the Group.
DKK million
12 months
2024
8 months
2023
Audit fee to PwC 1.6 1.6
Other assurance
engagements 0.1 0.3
Tax advisory
services 1.2 0.6
Non-audit
services 0.8 0.8
Total
3.7 3.3
21. Fee to auditors
Key accounting estimates:
Business combinations
As a result of acquisitions, Management makes estimates
relating to identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination, and
with measuring the fair value at the time of acquisition.
Significant estimates are made in the measurement of the
fair value of customers at the time of acquisition in relation
to cash-flow projections, discount rates and terminal growth
rates. Furthermore, key assumptions have been made in
relation to the useful lives of the intangible assets identified
in the acquisitions. When estimating the useful lives of
the assets, management has considered among other
expectations to expected churn rates based on historical
customer churn rates and the groupʼs primary customer
groups. The churn rate and expected useful lives of assets
acquired in a business combination are reassessed annually.
Changes in actual useful lives or expected useful lives of
these assets are recognised in the financial statements, when
such changes are ascertained.
20. Commitments and contingent liabilities
Notes - Group
19. Business combinations (continued)
Contingent consideration
The acquisitions completed in 2022/23 (accounting year
before change of reporting period) included contingent
consideration. The contingent consideration is measured at
fair value. The adjustments are a result of differences between
the initial recognition and updated assessments of the future
results and final settlements when terms of the earn-out were
settled. Below is the movements in the financial year.
DKK million 2024
Contingent consideration 2023 2.2
FX adjustments 0.1
Contingent consideration 2024
2.3
Contingent liabilities (continued)
The Group has as part of the acquisition of
PharmaProcess Srl. agreed to defer the payment of
a part of the purchase price. The first part will be
paid out in November 2025, and the second part in
November 2026. The payment is contingent based
on the sellersʼ continuous employment with the
Group. Consequently. the payment will be built up
over time and an interest of 2.6 % will be included.
The total outstanding amount which has not yet
been recognised at the balance sheet amounts to
DKK 15.3 million.
Ellab A/S Annual Report 2024
Financial Statements
Page 59
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
22. Related parties
Ellab Groupʼs ultimative parent is: Novo Nordisk Foundation. The ultimate
parent for which consolidated financial statements are prepared is: Novo
Nordisk Foundation, Tuborg Havnevej 19, 2900 Hellerup, Denmark. The direct
parent of Ellab Group is: Echo BidCo A/S.
Transactions with key management personnel and the ultimate parent
Transactions with key management personnel include transactions with
companies controlled by the key management personnel, Novo Nordisk
Foundation (12 September 2023 to 31 December 2024) and EQT Mid Market
Europe Fund (1 May 2023 to 11 September 2023).
Transactions between related parties
The direct parent company has granted tax-free contributions that was
settled by way of the parent company forgiving the parent companyʼs
intercompany receivables of DKK 1,066.0 million from Ellab Group.
Acquisition of services (Management fees) from parent companies amounting
to DKK 6.5 million (2023 DKK 11.6 million).
Rental agreement with Ellab Properties A/S, in which Ellab A/Sʼ former
Chairperson of the Board (1 May 2023 to 11 September 2023) has significant
influence. The disclosed amounts relates only to the period with influence,
DKK 0.0 (2023 DKK 1.4 million). The rental agreement is still in place.
Consultancy fees to Ellab A/Sʼ former Chairperson of the Board (1 May 2023
to 11 September 2023) DKK 0.0 (2023 DKK 0.5 million).
A new loan from the parent company was established in 2024 to finance
the acquisition of PharmaProcess. The loan is in EUR and the interest rate is
6.1%. 31 December 2024, the loan is DKK 69.1 million (2023 DKK 0.0). Unpaid
dividend amounts to DKK 49.9 million (2023 DKK 79.2 million).
All transactions were performed on an armʼs length basis. Other than these
transactions, there has been no transactions with key management personnel
or their close relatives.
DKK million
12 months
2024
8 months
2023
Financial income (36.7) (71.8)
Financial expenses
133.8 130.8
Depreciation, amortisation and impairment
losses, including losses and gains on sales 166.5 93.5
Income tax expense (4.4) (5.3)
Other adjustments 0.6 1.2
259.8 148.4
24. Cash flow statement - changes in net working capital
Change in inventories 13.1 (19.5)
Change in trade and Group receivables (24.0) 9.5
Change in contract assets and liabilities (2.9) 1.4
Change in receivables and prepayments (1.0) 1.2
Change in trade and Group payables (6.6) 14.0
Change in other payables 3.2 (26.4)
(18.2) (19.8)
23. Cash flow statement - adjustments
Ellab A/S Annual Report 2024
Financial Statements
Page 60
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
25. Changes in liabilities arising from financing activities
This section sets out an analysis of liabilities arising from financing activities and the movements in each of the periods presented.
DKK million
1 January
2024
Financing
cash flows Additions Disposal FX changes
Other
changes*
31 December
2024
Credit facilities 53.5 4.2 0.0 0.0 0.0 0.0 57.7
Loan parent companies 1,025.0 68.7 0.0 0.0 24.4 (1,049.0) 69.1
Lease liabilities 67.3 (20.5) 51.4 (3.1) 0.6 0.0 95.7
Total liabilities from financing
activities 1,145.8 52.4 51.4 (3.1) 25.0 (1,049.0) 222.5
DKK million
1 May
2023
Financing
cash flows Additions Disposal FX changes
Other
changes**
31 December
2023
Credit facilities 121.5 (68.0) 0.0 0.0 0.0 0.0 53.5
Bank loans 911.4 0.0 0.0 0.0 11.4 (922.8) 0.0
Loan parent companies 0.0 74.5 0.0 0.0 (14.4) 964.9 1,025.0
Lease liabilities 67.9 (10.8) 14.7 0.0 (0.6) (3.9) 67.3
Total liabilities from financing
activities 1,100.8 (4.3) 14.7 0.0 (3.6) 38.2 1,145.8
*The 2024 ‘Otherʼ column for ‘Loan parent companiesʼ includes the impact from the merger plan (Ellab A/S, Kelvin BidCo A/S and Kelvin HoldCo A/S) where the loans from
the parent company were forgiven via a tax-free contribution of DKK 1,066 million. The ‘Otherʼ column also includes the effect of accrued but not paid interest on interest-
bearing loans.
**The 2023 ‘Otherʼ column for ‘Bank loansʼ is the amount paid directly by Novo Holdings A/S and Lundbeckfond Invest A/S in connection with their purchase of the Ellab
Group in September 2023. The amount in ‘Loan parent companiesʼ is establishment of intercompany loans as the replacement for the bank loans.
Ellab A/S Annual Report 2024
Financial Statements
Page 61
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Income Statement .................................. 25
Balance Sheet ................................................... 26
Cash Flow Statement ............................ 27
Changes in Equity ...................................... 28
Notes - Group ................................................. 30
Parent Company .............................................................................62
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes - Group
26. List of group companies
Type
Place of
incorporation
Ownership
interest
Ellab Inc. Subsidiary USA 100%
Ellab (UK) Ltd. Subsidiary UK 100%
Ellab Monitoring Solutions Ltd. Subsidiary UK 100%
Complete Technical Solutions (CQV) Ltd. Subsidiary UK 100%
Arena Instrumentation Ltd. Subsidiary UK 100%
Ellab GmbH Subsidiary Germany 100%
Ellab SARL Subsidiary France 100%
Ellab Philippines Corp. Subsidiary Philippines 99.97%
Ellab Benelux B.V. Subsidiary Netherlands 100%
Ellab FZCO Subsidiary Dubai 100%
Ellab Italy Srl Subsidiary Italy 100%
PharmaProcess Srl Subsidiary Italy 100%
Ellab Ireland Ltd. Subsidiary Ireland 100%
Autocal Ireland Ltd. Subsidiary Ireland 100%
CalX Instrumentation Services Ltd. Subsidiary Ireland 100%
Ellab AG Subsidiary Switzerland 100%
PharmaProcess GmbH Subsidiary Switzerland 100%
Ellab Austria Subsidiary Austria 100%
Ellab Solutions Spain
Ellab Singapore PTE. Ltd.
Subsidiary
Subsidiary
Spain
Singapore
100%
100%
27. Events after the balance sheet date
No events materially affecting the assessment
of the Annual Report have occurred after the
balance sheet date.
Ellab A/S Annual Report 2024
Financial Statements
Parent Company
Page 62
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Ellab A/S Annual Report 2024
Parent Company
ELLAB A/S ANNUAL REPORT 2023
Parent Company
Page 63
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Income Statement
1 January 2024 - 31 December 2024 / 1 May 2023 - 31 December 2023
DKK million Note
12 months
2024
8 months
2023
Revenue 2 336.9 203.3
Cost of production 3, 4 (133.8) (80.8)
Gross profit 203.1 122.5
Distribution costs 3, 4 (125.5) (71.1)
Development costs 3, 4 (23.0) (9.2)
Administration costs 3, 4 (65.1) (32.1)
Other income 52.1 30.5
Operating profit bf special items 41.6 40.6
Special items 5 (19.0) (15.8)
Operating profit 22.6 24.8
Result of investments in
subsidiaries, net of tax
39.9 42.9
Financial income 6 58.1 60.3
Financial expenses 6 (153.0) (119.9)
Profit before tax (32.4) 8.1
Income taxes 7 15.7 2.8
Net profit for the year (16.7) 10.9
Statement of Comprehensive Income
1 January 2024 - 31 December 2024 / 1 May 2023 - 31 December 2023
DKK million Note
12 months
2024
8 months
2023
Net profit for the year
(16.7) 10.9
Other comprehensive income
Items that will be recycled subsequently to
the Consolidated Income Statement:
Foreign exchange adjustments on net
investments in foreign operations
6.6 0.6
Other comprehensive income for
the year, net of tax 6.6 0.6
Total comprehensive income for
the year (10.1) 11.5
Ellab A/S Annual Report 2024
Parent Company
Income Statement
Page 64
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Balance Sheet at 31 December
Assets
DKK million Note 31 Dec 2024 31 Dec 2023
Intangible assets 8 2,201.7 2,243.0
Property, plant and equipment 9 29.6 22.6
Right-of-use assets 12 45.1 21.9
Other receivables 3.6 2.9
Investments in subsidiaries 10 639.9 521.9
Receivables from group companies 68.2 311.6
Total non-current assets
2,988.1 3,123.9
Inventories 13 54.8 56.3
Trade receivables 14 28.1 25.1
Contract assets 0.9 0.8
Receivables from group companies 141.8 126.3
Tax receivables 8.2 0.0
Other receivables 0.6 0.0
Prepayments 5.6 4.3
Cash and cash equivalents 13.7 26.7
Total current assets
253.7 239.5
Total assets
3,241.8 3,363.4
DKK million Note 31 Dec 2024 31 Dec 2023
Share capital 15 15.0 15.0
Reserve for net revaluation under
the equity method 105.8 73.6
Reserve for development projects
39.0 28.5
Retained earnings
2,458.2 1,469.4
Total equity
2,618.0 1,586.5
Credit facilities 16 57.7 53.5
Lease liabilities 12 43.8 19.3
Deferred tax liabilities 11 187.5 195.5
Payables to group companies 16 69.1 1,025.0
Total non-current liabilities
358.1 1,293.3
Trade payables 10.4 18.2
Lease liabilities 12 4.1 4.9
Payables to group companies 16 227.0 442.9
Income tax payables 0.0 0.1
Other payables 20.4 16.4
Contract liabilities 3.8 1.1
Total current liabilities
265.7 483.6
Total liabilities 623.8 1,776.9
Total equity and liabilities 3,241.8 3,363.4
Equity and Liabilities
Ellab A/S Annual Report 2024
Parent Company
Balance Sheet
Page 65
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents Cash Flow Statement
1 January 2024 - 31 December 2024 / 1 May 2023 - 31 December 2023
DKK million Note
12 months
2024
8 months
2023
Dividend paid (104.3) (20.8)
Cash flow financing activities
(35.7) (20.2)
Net cash flow for the year (13.0) 5.8
Cash and cash equivalents,
beginning of the year 26.7 20.9
Net cash flow for the year (13.0) 5.8
Cash and cash equivalents at end
of the year 13.7 26.7
DKK million Note
12 months
2024
8 months
2023
Net profit for the year (16.7) 10.9
Adjustments 20 158.7 75.5
Changes in net working capital 21 (15.7) 22.2
Financial income received 4.4 5.5
Financial expenses paid (5.6) (33.5)
Income taxes paid (0.6) (14.5)
Cash flow operating activities 124.5 66.1
Purchase of intangible assets 8 (25.1) (11.2)
Purchase of property, plant and
equipment 9 (13.2) (18.4)
Payment for acquisition of
subsidiaries (71.5) (15.4)
Cash from merger 0.0 8.1
Loans to related parties &
repayment 8.0 (3.2)
Cash flow investing activities (101.8) (40.1)
Lease payments (4.3) (2.9)
Credit facilities 4.2 (68.0)
Loan parent company 68.7 74.5
Acquisition of treasury shares 0.0 (3.0)
Ellab A/S Annual Report 2024
Parent Company
Cash Flow Statement
Page 66
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Statement of Changes in Equity
DKK million Note Share capital
Reserve for
net revaluation
under the
equity method
Reserve for
development
projects
Retained
earnings Total
Equity at 1 January 2024 15 15.0 59.3 28.5 1,483.7 1,586.5
Profit for the period 0.0 39.9 0.0 (56.6) (16.7)
Development costs for the period 0.0 0.0 19.6 (19.6) 0.0
Amortisation for the period 0.0 0.0 (9.1) 9.1 0.0
Other comprehensive income 0.0 6.6 0.0 0.0 6.6
Total comprehensive income for the period
0.0 46.5 10.5 (67.1) (10.1)
Capital contribution 0.0 0.0 0.0 1,066.0 1,066.0
Dividends 0.0 0.0 0.0 (75.0) (75.0)
Disposal of treasury shares 0.0 0.0 0.0 50.6 50.6
Transactions with owners
0.0 0.0 0.0 1,041.6 1,041.6
Equity at 31 December 2024
15.0 105.8 39.0 2,458.2 2,618.0
Proposed dividend for the year
100.0
Transferred to retained earnings
(116.7)
Distribution of net profit
(16.7)
Ellab A/S Annual Report 2024
Parent Company
Changes in Equity
Page 67
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Statement of Changes in Equity
DKK million Note Share capital
Reserve
for net
revaluation
under the
equity method
Reserve for
development
projects
Retained
earnings Total
Equity at 1 May 2023 15 15.0 1 7.5 22.7 1,622.8 1,678.0
Profit for the year 0.0 42.9 0.0 (32.0) 10.9
Development costs for the year 0.0 0.0 7.7 (7.7) 0.0
Amortisation for the year 0.0 0.0 (1.9) 1.9 0.0
Other comprehensive income 0.0 0.6 0.0 0.0 0.6
Merger with subsidiary 0.0 (1.7) 0.0 1.7 0.0
Total comprehensive income for the year
0.0 41.8 5.8 36.1 11.5
Dividends 0.0 0.0 0.0 (100.0) (100.0)
Acquisition of treasury shares 0.0 0.0 0.0 (3.0) (3.0)
Transactions with owners
0.0 0.0 0.0 (103.0) (103.0)
Equity at 31 December 2023
15.0 59.3 28.5 1,483.7 1,586.5
Interim dividend for the year
25.0
75.0Proposed dividend for the year
Transferred to retained earnings
(89.1)
Distribution of net profit
10.9
Ellab A/S Annual Report 2024
Parent Company
Page 68
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents Notes
1. Accounting policies
2. Revenue from contracts with customers
3. Employee costs
4. Amortisation and depreciation
5. Special items
6. Financial income and expenses
7. Income taxes
8. Intangible assets
9. Property, plant and equipment
10. Investment in subsidiaries
11. Deferred tax liabilities
12. Leases
13. Inventories
14. Trade receivables
15. Share capital
16. Financial risk management
17. Capital management
18. Commitments and contingent liabilities
19. Changes in liabilities arising from financing activities
20. Cash flow statement - adjustments
21. Cash flow statement - changes in net working capital
22. Related parties
23. Events after the balance sheet date
Ellab A/S Annual Report 2024
Parent Company
Page 69
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
1. Accounting policies
The financial statements of the parent have been prepared
in accordance with IFRS accounting standards as
adopted by the EU as well as additional Danish disclosure
requirements applying to entities of reporting class large C.
The Parent Company Financial Statements are presented
in million Danish kroner (mDKK), which is considered the
functional currency of the companyʼs activities.
The accounting policies are the same as for the consolidated
financial statements with the following exceptions. For a
detailed specification of the parent companyʼs accounting
policies note stated in this section, please see note 1 of the
consolidated financial statements and other selected Group
notes where the accounting policies are presented together
with the specific notes.
As of 1 January 2024, Kelvin HoldCo A/S completed the
merger with its wholly-owned subsidiaries, Kelvin BidCo A/S
and Ellab A/S, with Ellab A/S as the continuing entity. This
merger is accounted for as a business combination under
common control, where the assets and liabilities of Kelvin
BidCo A/S and Kelvin HoldCo A/S have been transferred to
Ellab A/S at their carrying amounts using the Group-value
method including restating the comparison numbers as if the
merger has always been in place. The following table shows
the 2023 numbers from the Ellab A/S parent companyʼs
financial statement from 1 May 2023 to 31 December 2023
and the restated numbers from the merger. The addition
to ‘Investment in subsidiariesʼ is related to the subsidiaries
share of fair value adjustments from Kelvin BidCo A/Sʼ
purchase of the Ellab Group in 2019.
DKK million
Total
comprehen-
sive income for
the year
Assets 31
December 2023
Liabilities 31
December 2023
Equity 31
December 2023
Ellab A/S, pre merger 81.0 1,386.9 887.5 499.4
Result from merged companies
(mainly amortisation and interest
expenses, net of tax)
(69.5)
Goodwill from merged
companies
1,043.7
Other intangible assets from
merged companies
708.1
Investment in subsidiaries 225.8
Mainly group balances and
deferred tax from merged
companies
(1.1) 889.4
Retained earnings from merged
companies
1,087.1
Ellab A/S, post merger
11.5 3,363.4 1,776.9 1,586.5
Ellab A/S Annual Report 2024
Parent Company
Page 70
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
As of 1 May 2023, Ellab A/S completed the merger with its
wholly-owned subsidiary, Project Support A/S. This merger
is accounted for as a business combination under common
control, where the assets and liabilities of Project Support
A/S have been transferred to Ellab A/S at their carrying
amounts using the book-value method.
Material accounting policies The parent
companyʼs accounting policies are described in relation to
the individual notes (refer to Group). Management regards
the following as the most material accounting policy
information for the recognition and measurement of reported
amounts as well as relevant to an understanding of the
Parent Financial Statements:
- Revenue from contracts with customers
- Intangible assets
- Investment in subsidiaries
Other income
Other income includes royalty from subsidiaries.
Investments in subsidiaries
Investments in subsidiaries are recognised and measured
using the equity method.
Under the equity method, the investments in subsidiaries
are initially recognised at cost. The carrying amount of the
investment is adjusted to recognise changes in the parent
companyʼs share of net assets of the subsidiary since
the acquisition date. Goodwill relating to the subsidiary is
included in the carrying amount of the investment.
The statement of profit or loss reflects the parent companyʼs share
of the results of operations of the subsidiary. Any change in other
comprehensive income (OCI) of the subsidiaries is presented as
part of the parent companyʼs OCI. In addition, when there has
been a change recognised directly in the equity of the subsidiary,
the parent company recognises its share of any changes in the
statement of changes in equity. Unrealised gains and losses
resulting from transactions between the parent company and
the subsidiaries are eliminated to the extent of the interest in the
subsidiary.
The aggregate of the parent companyʼs share of profit or loss of an
subsidiary is shown on the face of the statement of profit or loss
outside operating profit and represents profit or loss after tax and
non-controlling interests of the subsidiary.
An impairment test of an investment is conducted if an event
or a change in conditions indicate that the carrying value of
the investment is not recoverable. The measurements of the
investments require estimates based on various factors, such as
the expectations to future cash flows. If the parent company has
a legal or constructive obligation to cover a negative net asset
value of a subsidiary, this obligation is recognised by means of a
provision.
Critical accounting estimates and judgements
For a description of critical accounting estimates and judgements,
please see note 2 of the consolidated financial statements (excl.
business combinations).
Notes
1. Accounting policies (continued)
Ellab A/S Annual Report 2024
Parent Company
Page 71
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
3. Employee costs
DKK million
12 months
2024
8 months
2023
Wages and salaries 113.9 68.4
Defined contribution plans 9.4 5.3
Other social security costs 1.3 1.0
Total employee costs for the year 124.6 74.7
Employee costs in intangible assets (24.8) (9.5)
Change in costs included in inventories (2.3) (5.3)
Total income statement
97.5 59.9
Wages and salaries, pensions and other social security costs
are recognised in the following items:
Cost of production 45.9 27.5
Distribution costs 16.5 11.9
Development costs 7.3 5.1
Administrative costs 24.0 14.2
Special items 3.8 1.2
Total income statement 97. 5 59.9
Average number of employees 206 179
Key Management Compensation
Key Management consists of Executive Board and the Board of Directors. Refer to
the Group note 4 ‘Employee costsʼ for information on the total compensation paid
or payable for employee services.
Notes
2. Revenue from contracts with customers
DKK million
12 months
2024
8 months
2023
Revenue from the following business lines:
Validation Solutions 267.1 165.1
Monitoring Solutions 20.6 0.7
Field Services & Cons.
49.2 37.5
Total revenue 336.9 203.3
Revenue per geography:
United States 78.1 57.3
UK and Ireland 29.2 15.1
Rest of world
229.6 130.9
Total revenue 336.9 203.3
Revenue is recognised as follows:
At a point in time 277.2 161.8
Over time 59.7 41.5
Total revenue 336.9 203.3
Ellab A/S Annual Report 2024
Parent Company
Page 72
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
5. Special items
DKK million
12 months
2024
8 months
2023
Organisational changes 8.3 6.8
ERP roll-out and related IT
implementation costs 6.9 1.0
Consultants 3.2 2.5
Restructuring costs 0.6 0.0
Costs, sale of the Ellab Group 0.0 5.5
Total 19.0 15.8
Notes
4. Amortisation and depreciation
DKK million
12 months
2024
8 months
2023
Intangible assets 107.5 56.5
Property, plant and equipment 6.2 2.3
Right-of-use assets 5.7 2.8
Total 119.4 61.6
Amortisation and depreciation are recognised in the following items:
Cost of production 3.5 1.6
Distribution costs 95.9 54.0
Development costs 11.7 2.4
Administrative costs 8.3 3.6
Total 119.4 61.6
Ellab A/S Annual Report 2024
Parent Company
Page 73
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
6. Financial income and expenses
DKK million
12 months
2024
8 months
2023
Financial income
Exchange rate gains 47.9 35.1
Interest income from group companies 9.4 23.6
Other financial income 0.8 1.6
Total financial income 58.1 60.3
Financial expenses
Foreign exchange rate losses 69.3 32.5
Interest expense to group companies 78.1 37.5
Interest expense on lease liabilities 2.7 0.8
Other financial expenses 2.9 49.1
Total financial expenses 153.0 119.9
Effective interest expenses on financial liabilities measured at amortised
cost amounted to DKK 83.0 million (2023 DKK 68.8 million).
7. Income taxes
DKK million
12 months
2024
8 months
2023
Current tax:
Current tax on profits for the year
Current tax on profits for previous years
Deferred tax on profit for the year
(7.8)
0.1
(8.0)
(1.9)
(0.3)
(1.2)
Deferred tax on profit for previous years 0.0 0.6
Total (15.7) (2.8)
Tax calculated at 22% of profit before tax (7.1) 1.8
Tax according to income statement (15.7) (2.8)
Variance (8.6) (4.6)
Tax effects of:
Non-deductible expenses 0.2 4.8
Tax relating to previous years 0.1 0.3
Non-taxable income/loss from
investments in subsidiaries (8.8) (9.4)
Additional deductions for specific
expenses (0.1) (0.3)
Total (8.6) (4.6)
Effective tax rate 48.5% (34.1%)
Ellab A/S Annual Report 2024
Parent Company
Page 74
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
8. Intangible Assets
DKK million Goodwill
Other
intangible
assets Brand
Customers &
distributors Technology
Completed
development
projects
Development
projects in
progress Total
Cost:
At 1 January 2024 1,310.0 2.9 85.9 759.3 325.2 28.7 34.6 2,546.6
Additions during the year 27.5 0.0 0.0 13.6 0.0 0.0 25.1 66.2
Transfers for the year 0.0 0.0 0.0 0.0 0.0 36.7 (36.7) 0.0
At 31 December 2024 1,337.5 2.9 85.9 772.9 325.2 65.4 23.0 2,612.8
Accumulated amortisation:
At 1 January 2024 0.0 1.4 18.3 187.6 69.6 26.7 0.0 303.6
Amortisation for the year 0.0 0.6 4.6 60.8 29.8 11.7 0.0 107.5
At 31 December 2024 0.0 2.0 22.9 248.4 99.4 38.4 0.0 411.1
Carrying amount
31 December 2024 1,337.5 0.9 63.0 524.5 225.8 27.0 23.0 2,201.7
For the annual impairment test of the recognised ‘Goodwillʼ and ‘Development projects in progressʼ in the parent company, please refer to Group
note 10. The assumptions used and the calculated recoverable amount can also be applied for the parent company, as there is no significant
financial metrics that would impact the calculations. The conclusion from the Group of no impairment needs is also valid for the parent company.
Ellab A/S Annual Report 2024
Parent Company
Page 75
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
8. Intangible Assets (continued)
DKK million Goodwill
Other
intangible
assets Brand
Customers &
distributors Technology
Completed
development
projects
Development
projects in
progress Total
Cost:
At 1 May 2023 1,269.3 2.9 85.9 743.7 325.2 25.9 26.2 2,479.1
Additions during the year 3.1 0.0 0.0 0.0 0.0 0.0 11.2 14.3
Merger with subsidiary 37.6 0.0 0.0 15.6 0.0 0.0 0.0 53.2
Transfers for the year 0.0 0.0 0.0 0.0 0.0 2.8 (2.8) 0.0
At 31 December 2023 1,310.0 2.9 85.9 759.3 325.2 28.7 34.6 2,546.6
Accumulated amortisation:
At 1 May 2023 0.0 0.9 15.4 147.3 56.6 24.3 0.0 244.5
Amortisation for the year 0.0 0.5 2.9 37.7 13.0 2.4 0.0 56.5
Merger with subsidiary 0.0 0.0 0.0 2.6 0.0 0.0 0.0 2.6
At 31 December 2023 0.0 1.4 18.3 187.6 69.6 26.7 0.0 303.6
Carrying amount
31 December 2023 1,310.0 1.5 67.6 571.7 255.6 2.0 34.6 2,243.0
Goodwill, brand, customers and distributors and technology relate to intellectual property rights from the fair value adjustments recognised when Kelvin BidCo A/S
(now merged with Ellab A/S) acquired the Ellab Group in 2019. Goodwill and customers & distributors also relate to values transferred to Ellab A/S from acquired
subsidiaries as part of the Groupʼs transfer pricing structure.
Development projects in progress and completed development projects relates to development of the Groupʼs products.
Amortisations for completed development projects are in the income statement recognised as ‘Development costsʼ and remaining intangible assets as ‘Distribution
costsʼ.
Research and development costs expensed during the year amount to DKK 11.3 million (2023 DKK 6.8 million) excluding amortisation.
Ellab A/S Annual Report 2024
Parent Company
Page 76
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
9. Property, plant and equipment
DKK million
Plant and
machinery
Other
fixtures and
equipment
Leasehold
improvements Total
Cost:
At 1 January 2024 15.4 20.5 10.5 46.4
Additions 3.5 4.8 4.9 13.2
At 31 December 2024 18.9 25.3 15.4 59.6
Accumulated depreciation:
At 1 January 2024
5.9 14.7 3.2 23.8
Depreciation
1.8 2.8 1.6 6.2
At 31 December 2024 7.7 1 7.5 4.8 30.0
Carrying amount 31 December 2024 11.2 7.8 10.6 29.6
Ellab A/S Annual Report 2024
Parent Company
Page 77
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
9. Property, plant and equipment (continued)
DKK million
Plant and
machinery
Other
fixtures and
equipment
Leasehold
improvements Total
Cost:
At 1 May 2023 7.6 16.3 4.3 28.2
Additions 7.3 4.9 6.2 18.4
Merger with subsidiary 0.5 0.0 0.0 0.5
Disposals 0.0 (0.7) 0.0 (0.7)
At 31 December 2023 15.4 20.5 10.5 46.4
Accumulated depreciation:
At 1 May 2023
5.5 13.8 2.9 22.2
Depreciation
0.4 1.6 0.3 2.3
Disposals
0.0 (0.7) 0.0 (0.7)
At 31 December 2023 5.9 14.7 3.2 23.8
Carrying amount 31 December 2023 9.5 5.8 7.3 22.6
Refer to Group note 11 on accounting policies.
Ellab A/S Annual Report 2024
Parent Company
Page 78
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
10. Investment in subsidiaries
DKK million 31 Dec 2024 31 Dec 2023
Cost:
At 1 January / 1 May
462.6 521.3
Additions during the year
71.5 (3.0)
Merger with subsidiary
0.0 (55.7)
At 31 December
534.1 462.6
Accumulated value adjustments:
At 1 January / 1 May
59.3 17.5
Exchange adjustment
6.6 0.6
Result of investments in subsidiaries, net of tax
39.9 42.9
Merger with subsidiary
0.0 (1.7)
At 31 December
105.8 59.3
Carrying amount at 31 December
639.9 521.9
Reference is made to Group note 26 for an overview of subsidiaries.
Ellab A/S Annual Report 2024
Parent Company
Page 79
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
11. Deferred tax liabilities
DKK million 31 Dec 2024 31 Dec 2023
Deferred tax at 1 January / 1 May
195.5 193.7
Deferred tax recognised in the income statement
(8.0) (0.6)
Merger with subsidiary
0.0 2.4
Deferred tax liabilities
187.5 195.5
Deferred tax relates to:
Intangible assets
187.1 194.3
Property, plant and equipment
(0.6) (0.3)
Leases
(0.8) (0.5)
Inventories
1.1 1.5
Trade receivables
1.1 0.6
Other
(0.4) (0.1)
Deferred tax liabilities
187.5 195.5
Ellab A/S Annual Report 2024
Parent Company
Page 80
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
12. Leases
The Group has recognised the following amounts relating to leases:
DKK million 31 Dec 2024 31 Dec 2023
Right-of-use assets
Properties 44.9 21.4
Cars and other leases 0.2 0.5
Total
45.1 21.9
Lease liabilities
Non-current 43.8 19.3
Current 4.1 4.9
Total
47.9 24.2
Additions to the right-of-use assets during the financial year ending 31 December
2024 were DKK 29.1 million (2023: DKK 6.0 million).
The income statement shows the following amounts relating to leases:
DKK million
12 months
2024
8 months
2023
Depreciation, properties 5.4 2.6
Depreciation, cars and other leases 0.3 0.2
Interest expense on lease liabilities 2.7 0.8
Total income statement
8.4 3.6
The total cash outflow for leases in 2024 was DKK 7.0 million
(2023: DKK 3.8 million). For maturity analysis refer to note 16.
Ellab A/S leases various properties, equipment and cars. Rental contracts are typically made for fixed periods of 3 to 10 years but may have extension
options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose
any covenants, but leased assets may not be used as security for borrowing purposes.
Extension options or periods after termination options are included in the lease term if the lease is reasonably certain to be extended or not terminated based
on the Groupʼs strategy and other relevant factors such as significant leasehold improvements.
Ellab A/S Annual Report 2024
Parent Company
Page 81
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
13. Inventories
DKK million 31 Dec 2024 31 Dec 2023
Raw materials and consumables 20.4 21.8
Finished goods and goods for resale 34.4 34.5
54.8 56.3
The following are included in ‘Costs of productionʼ:
Inventories recognised as an expense
78.9 38.9
DKK million 31 Dec 2024 31 Dec 2023
Trade receivables (gross) 29.5 26.5
Provision for bad debt (1.4) (1.4)
Trade receivables net
28.1 25.1
Movement on the parent's provision for bad debt are as follows:
Opening balances (1.4) (1.4)
Additions 0.0 0.0
Reversals 0.0 0.0
Provision for bad debt
(1.4) (1.4)
14. Trade receivables
DKK million Receivable Loss rate %
31 Dec 2024
Provision
Impairment of trade receivables can be specified as follows:
Current 18.3 0.0% 0.0
Overdue < 30 days 4.4 0.0% 0.0
Overdue 31 - 60 days 1.6 0.0% 0.0
Overdue 61 - 90 days 0.0 0.0% 0.0
Overdue 91 - 120 days 0.5 0.0% 0.0
Overdue > 121 days 4.7 29.8% 1.4
Total
29.5 1.4
14. Trade receivables (continued)
DKK million Receivable Loss rate %
31 Dec 2023
Provision
Impairment of trade receivables can be specified as follows:
Current 17.9 0.0% 0.0
Overdue < 30 days 3.3 0.0% 0.0
Overdue 31 - 60 days 1.0 0.0% 0.0
Overdue 61 - 90 days 1.0 0.0% 0.0
Overdue 91 - 120 days 2.9 34.5% 1.0
Overdue > 121 days 0.4 100.0% 0.4
Total
26.5 1.4
Ellab A/S Annual Report 2024
Parent Company
Page 82
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Credit risk
The company has significant intercompany receivables related to ordinary
business activities. The company has not historically experienced loss on
subsidiaries and does not expect loss in the future. The credit loss is therefore
estimated to DKK 0.0 (2023 DKK 0.0).
Interest rate risk
The companyʼs interest-bearing assets / liabilities consist of cash and cash
equivalents, credit facilities and loans from parent companies (non-current) and
are all at floating rates.
An increase in relevant interest rates of 1%-point would have decreased net profit
by DKK 1.7 million (2023 DKK 8.7 million).
16. Financial risk management (continued)
Notes
15. Share capital
For information on share capital, refer to note 16 for the Group.
16. Financial risk management
For a description of the parentʼs Financial Risk Management, please see note 17 for the
Group. In addition to the Financial Risk Management of the Group, Ellab A/S is exposed
to the following risks.
Foreign currency risk
As a result of the Groupʼs international operating activities, Ellab A/S is exposed to
fluctuations in foreign exchange rates. Ellab A/Sʼ exchange rate exposure is primarily
related to USD and EUR as a major part of the companyʼs sales to internal sales entities
are invoiced in those currencies. Due to the Danish fixed exchange rate policy against
EUR, exhange rates EUR against DKK is not considered an exposure.
Sensitivity:
The company is primarily exposed to changes in USD. The sensitivity of profit or
loss to changes in the exchange rates arises mainly from USD denominated financial
instruments. A 5% increase in the year-end rate in the following currencies versus DKK
would impact the companyʼs profit as follows (a 5% decrease would have the opposite
impact):
Impact on profit for the year
2024 2023
USD 3.3 (12.0)
Ellab A/S Annual Report 2024
Parent Company
Page 83
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
16. Financial risk management (continued)
31 December 2024
DKK million 0-1 year 1-5 years After 5 years Total*
Fair value
level 2**
Fair value
level 3
Carrying
amount
Recognised at amortised
cost
Credit facilities 3.0 65.9 0.0 68.9 57.7 57.7
Lease liabilities 6.1 26.5 28.7 61.3 47.9
Trade payables 10.4 0.0 0.0 10.4 10.4
Group payables 241.1 79.2 0.0 320.3 296.1
Other payables 19.7 0.7 0.0 20.4 20.4
Total financial liabilities 280.3 172.3 28.7 481.3 57.7 432.5
Cash and cash
equivalents
13.7 0.0 0.0 13.7 13.7
Trade receivables 28.1 0.0 0.0 28.1 28.1
Contract assets 0.9 0.0 0.0 0.9 0.9
Group & other receivables 147.3 81.3 0.0 228.6 210.6
Total financial assets 190.0 81.3 0.0 271.3 253.3
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies
are calculated based on the rates at the balance sheet date.
** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, Group and other
payables, trade receivables and other receivables which are stated at the net carrying amount at year-end.
Ellab A/S Annual Report 2024
Parent Company
Page 84
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
16. Financial risk management (continued)
31 December 2023
DKK million 0-1 year 1-5 years After 5 years Total*
Fair value
level 2**
Fair value
level 3
Carrying
amount
Recognised at amortised
cost
Credit facilities 3.3 65.5 0.0 68.8 53.5 53.5
Lease liabilities 4.8 18.9 4.0 27.7 24.2
Trade payables 18.2 0.0 0.0 18.2 18.2
Group payables 537.8 1,280.2 0.0 1,818.0 1,467.9
Other payables 16.4 0.0 0.0 16.4 16.4
Total financial liabilities 580.5 1,364.6 4.0 1,949.1 53.5 1,580.2
Cash and cash
equivalents
26.7 0.0 0.0 26.7 26.7
Trade receivables 25.1 0.0 0.0 25.1 25.1
Contract assets 0.8 0.0 0.0 0.8 0.8
Group & other receivables 150.1 398.6 0.0 548.7 437.9
Total financial assets 202.7 398.6 0.0 601.3 490.5
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies
are calculated based on the rates at the balance sheet date.
** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, Group and other
payables, trade receivables and other receivables which are stated at the net carrying amount at year-end.
Ellab A/S Annual Report 2024
Parent Company
Page 85
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
17. Capital management
For disclosure on capital management, reference is made to note 18 for the
Group.
18. Commitments and contingent liabilities
Charges and security
The companyʼs shares and shares in Ellab Inc., Ellab GmbH, Ellab UK Ltd., Ellab
Ireland Ltd. and Ellab Benelux B.V. have been pledged as security for credit
institutions of the parent company Echo BidCo A/S.
The company has acceded to the lease agreement as guarantor for its wholly
owned subsidiary, Ellab Ireland Ltd. The related lease liability is recognised in the
Groupʼs consolidated financial statements as per 31 December 2024 and amounts
to DKK 8.4 million. No amounts are recognised in the parent companyʼs balance
sheet.
Contingent liabilities
The Danish Group companies are jointly and severally liable for tax on the jointly
taxed incomes etc. of the Danish Group. The total amount of corporation tax
payable is disclosed in the Annual Report of Novo Holdings A/S, which is the
management company of the joint taxation purposes. Moreover, the Group
companies are jointly and severally liable for Danish withholding taxes by way of
dividend tax, tax on royalty payments and tax on unearned income. Any subsequent
adjustments of corporation taxes and withholding taxes may increase the
companyʼs liability.
The company is not involved in any lawsuits which are expected to have a material
effect on the Financial position of the company.
Ellab A/S Annual Report 2024
Parent Company
Page 86
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
19. Changes in liabilities arising from financing activities
This section sets out an analysis of liabilities arising from financing activities and the movements in each of the periods presented.
DKK million
1 January
2024
Financing
cash flows Additions FX changes
Other
changes*
31 December
2024
Credit facilities 53.5 4.2 0.0 0.0 0.0 57.7
Loan parent company 1,025.0 68.7 0.0 24.4 (1,049.0) 69.1
Lease liabilities 24.2 (4.3) 29.1 0.0 (1.1) 4 7.9
Total liabilities from financing activities
1,102.7 68.6 29.1 24.4 (1,050.1) 174.7
DKK million
1 May
2023
Financing
cash flows Additions FX changes
Other
changes**
31 December
2023
Credit facilities 121.5 (68.0) 0.0 0.0 0.0 53.5
Bank loans 911.4 0.0 0.0 11.4 (922.8) 0.0
Loan parent company 0.0 74.5 0.0 (14.4) 964.9 1,025.0
Lease liabilities 22.6 (2.9) 6.0 0.0 (1.5) 24.2
Total liabilities from financing activities
1,055.5 3.6 6.0 (3.0) 40.6 1,102.7
*The 2024 ‘Otherʼ column for ‘Loan parent companyʼ includes the impact from the merger plan (Ellab A/S, Kelvin BidCo A/S and Kelvin HoldCo A/S) where the loans from the
parent company were forgiven via a tax-free contribution of DKK 1,066 million. The ‘Otherʼ column also includes the effect of accrued but not paid interest on interest-bearing
loans, and terminations in lease liabilities.
**The 2023 ‘Otherʼ column for ‘Bank loansʼ is the amount paid directly by Novo Holdings A/S and Lundbeckfond Invest A/S in connection with their purchase of the Ellab
Group in September 2023. The amount in ‘Loan parent companyʼ is establishment of intercompany loans as the replacement for the bank loans.
Ellab A/S Annual Report 2024
Parent Company
Page 87
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
20. Cash flow statement - adjustments
DKK million
12 months
2024
8 months
2023
Financial income (58.1) (60.3)
Financial expenses
153.0 119.9
Depreciation, amortisation and impairment
losses, including losses and gains on sales 119.4 61.6
Income tax expense
(15.7) (2.8)
Income from subsidiaries
(39.9) (42.9)
158.7 75.5
21. Cash flow statement - changes in net working capital
Change in inventories
2.8 (17.7)
Change in trade and Group receivables
(15.7) 31.7
Change in contract assets and liabilities
2.6 0.0
Change in receivables and prepayments
(2.6) 1.4
Change in trade and Group payables
(6.8) 19.4
Change in other payables
4.0 (12.6)
(15.7) 22.2
Ellab A/S Annual Report 2024
Parent Company
Page 88
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................18
Financial Statements ............................................................... 24
Parent Company .............................................................................62
Income Statement .................................. 63
Balance Sheet ................................................... 64
Cash Flow Statement ............................ 65
Changes in Equity ...................................... 66
Notes - Parent company ................68
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Contents
Notes
22. Related parties
For related parties disclosure, reference is made to note 22 for the Group.
Details for transactions between Ellab A/S and subsidiaries are provided in the
following.
Significant transactions between Ellab A/S, subsidiaries and parent
During the year, in the course of ordinary business activities, subsidiaries
purchased goods and services from Ellab A/S, and Ellab A/S purchased goods
from subsidiaries.
Receivables from Group companies relates to purchase of goods and services
from the subsidiaries to Ellab A/S in the course of ordinary business activities.
The receivables are expected to be repaid in cash.
Loans to related parties have been used by subsidiaries for acquisitions and
are payable in September 2028. Interest are at market levels.
Payables to related parties relates to purchase of goods and recharge of costs
initially paid by related parties.
Loans from related parties mainly relates to transfer of intellectual property
rights from subsidiaries to Ellab A/S and loan from the parent company is
related to financing of acquisitions. Loans are either payable in September
2028 or upon 5 business days written notice.
The proposed ordinary dividend for the financial year amounts to DKK 100.0
million (2023 DKK 100.0 million).
Total proposed dividend from prior periods of DKK 49.9 million (2023 DKK
79.2 million) to the parent company is unpaid at the balance sheet date.
The table below shows the transactions between Ellab A/S and subsidiaries as
well as the outstanding amounts at the balance sheet date.
DKK million
12 months
2024
8 months
2023
Revenue 194.9 122.4
Purchased goods
(36.1) (19.9)
Interest income
9.4 23.6
Interest expenses
(78.1) (37.5)
Receivables
137.2 122.6
Loans to related parties
72.8 315.3
Payables
(8.9) (7.9)
Loans from related parties
(237.2) (1,380.8)
Declared unpaid dividend
(49.9) (79.2)
23. Events after the balance sheet date
No events materially affecting the assessment of the Annual Report have
occurred after the balance sheet date.
Ellab A/S Annual Report 2024
Parent Company
Managementʼs Statement
and Auditorʼs Report
Page 89
Contents
Ellab A/S Annual Report 2024
Managementʼs Statement and Auditorʼs Report
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................16
Financial Statements ............................................................... 22
Parent Company .............................................................................57
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Managementʼs Statement ...................... 90
Independent Auditors Report .......... 91
ELLAB A/S ANNUAL REPORT 2023
Managementʼs Statement and Auditorʼs Report
Page 90
Contents Managementʼs Statement
The Executive Board and the Board of Directors have considered and
approved the Annual Report of Ellab A/S for the financial year 1 January 2024
to 31 December 2024.
The consolidated financial statements and parent companyʼs financial
statements (“Financial Statementsˮ) have been prepared in accordance with
IFRS Accounting Standards as adopted by the EU, and further requirements in
the Danish Financial Statements Act.
Executive Board
Andreas Morthorst | CEO
Board of Directors
Anders Hedegaard | Chairperson
Christian Salling | Boardmember
In our opinion, the Financial Statements give a true and fair view of the
financial position at 31 December 2024 of the Group and parent company and
of the results of the the Group and parent companyʼs operations and cash
flows for the financial year 1 January 2024 to 31 December 2024.
In our opinion, Managementʼs Review includes a true and fair account of the
matters dealt with.
We recommend that the Annual Report be adopted at the Annual General
Meeting.
Hillerød, 25 April 2025
Henrik Kjær Hansen | Vice Chairperson
Ellab A/S Annual Report 2024
Managementʼs Statement and Auditorʼs Report
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................16
Financial Statements ............................................................... 22
Parent Company .............................................................................57
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Managementʼs Statement ...................... 90
Independent Auditors Report .......... 91
Page 91
Contents Independent Auditors Report
To the Shareholder of Ellab A/S
Opinion
In our opinion, the Consolidated Financial Statements
and the Parent Company Financial Statements give
a true and fair view of the Groupʼs and the Parent
Companyʼs financial position at 31 December 2024 and
of the results of the Groupʼs and the Parent Companyʼs
operations and cash flows for the financial year 1
January to 31 December 2024 in accordance with IFRS
Accounting Standards as adopted by the EU and further
requirements in the Danish Financial Statements Act.
We have audited the Consolidated Financial Statements
and the Parent Company Financial Statements of Ellab
A/S for the financial year 1 January - 31 December
2024, which comprise income statement and statement
of comprehensive income, balance sheet, statement
of changes in equity, cash flow statement and notes,
including material accounting policy information, for
both the Group and the Parent Company (“financial
statementsˮ).
Basis for Opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark. Our
responsibilities under those standards and requirements
are further described in the “Auditorʼs Responsibilities
for the Audit of the Financial Statementsˮ section
of our report. We are independent of the Group in
accordance with the International Ethics Standards
Board for Accountantsʼ International Code of Ethics
for Professional Accountants (IESBA Code) and the
additional ethical requirements applicable in Denmark,
and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the IESBA
Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis
for our opinion.
Statement on Managementʼs Review
Management is responsible for Managementʼs Review.
Our opinion on the financial statements does not cover
Managementʼs Review, and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read Managementʼs Review and,
in doing so, consider whether Managementʼs Review is
materially inconsistent with the financial statements or
our knowledge obtained during the audit, or otherwise
appears to be materially misstated.
Moreover, it is our responsibility to consider whether
Managementʼs Review provides the information required
under the Danish Financial Statements Act.
Based on the work we have performed, in our view,
Managementʼs Review is in accordance with the
Consolidated Financial Statements and the Parent
Company Financial Statements and has been prepared
in accordance with the requirements of the Danish
Financial Statements Act. We did not identify any
material misstatement in Managementʼs Review.
Managementʼs Responsibilities for the Financial
Statements
Management is responsible for the preparation of
Consolidated Financial Statements and Parent Company
Financial Statements that give a true and fair view in
accordance with IFRS Accounting Standards as adopted
by the EU and further requirements in the Danish
Financial Statements Act, and for such internal control
as Management determines is necessary to enable the
preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, Management
is responsible for assessing the Groupʼs and the
Parent Companyʼs ability to continue as a going
concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of
accounting in preparing the financial statements unless
Management either intends to liquidate the Group or
the Parent Company or to cease operations, or has no
realistic alternative but to do so.
Auditorʼs Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditorʼs report that
includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs and the additional
requirements applicable in Denmark will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of these financial statements.
Ellab A/S Annual Report 2024
Managementʼs Statement and Auditorʼs Report
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................16
Financial Statements ............................................................... 22
Parent Company .............................................................................57
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Managementʼs Statement ...................... 90
Independent Auditors Report .......... 91
Page 92
Contents Independent Auditors Report
To the Shareholders of Ellab A/S
As part of an audit conducted in accordance with ISAs
and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain
professional scepticism throughout the audit. We
also:
• Identify and assess the risks of material
misstatement of the financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error as
fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on
the effectiveness of the Groupʼs and the Parent
Companyʼs internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made by
Management.
• Conclude on the appropriateness of Managementʼs
use of the going concern basis of accounting in
preparing the financial statements and, based on
the audit evidence obtained, whether a material
uncertainty exists related to events or conditions
that may cast significant doubt on the Groupʼs
and the Parent Companyʼs ability to continue as
a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention
in our auditorʼs report to the related disclosures in
the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our auditorʼs report. However, future events
or conditions may cause the Group and the Parent
Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and
contents of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events in
a manner that gives a true and fair view.
• Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within
the group as a basis for forming an opinion on the
Consolidated Financial Statements and the Parent
Company Financial Statements. We are responsible
for the direction, supervision and review of the audit
work performed for purposes of the group audit.
We remain solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
Torben Jensen
State Authorised Public Accountant
mne18651
Hellerup, 25 April 2025
PricewaterhouseCoopers
Statsautoriseret
Revisionspartnerselskab
CVR No 33 77 12 31
André Nielsen
State Authorised Public Accountant
mne46624
Ellab A/S Annual Report 2024
Managementʼs Statement and Auditorʼs Report
Contents
Overview ..................................................................................................... 3
Financial Performance ..........................................................16
Financial Statements ............................................................... 22
Parent Company .............................................................................57
Managementʼs Statement and Auditorʼs
Report .............................................................................................................. 89
Managementʼs Statement ...................... 90
Independent Auditors Report .......... 91
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