BoConcept Holding A/S
Mørupvej 16
DK-7400 Herning
CVR no. 37 76 02 50
Annual Report for 2022/23
The Annual Report was presented and adopted
at the Annual General Meeting of the Company on:
28.08.2023
Chairman
BoConcept Holding A/S - Annual Report 2022/23 1
Contents
Page
Key Figures 3
Company Information 4
Management's Review 5
Management's Statement 7
Independent Auditor's Report 8
Group
Statement of Profit and Loss 10
Consolidated Statement of Comprehensive Income 10
Consolidated Balance Sheet 11
Consolidated Statement of Changes in Equity 13
Consolidated Cash Flow Statement 14
Notes 15
Parent Company
Statement of Profit and Loss 38
Statement of Comprehensive Income 38
Balance Sheet 39
Statement of Changes in Equity 40
Notes 41
BoConcept Holding A/S - Annual Report 2022/23 2
2022/23 2021/22 2020/21 2019/20 2018/19
Financial Highlights in DKK million for the Group
Revenue 1,439 1,490 1,211 1,187 1,310
Contribution margin 797 783 666 602 648
238 275 255 111 159
Net financials (49) (16) (23) (9) (4)
Profit/loss before tax 100 175 149 27 112
Profit/loss for the year 66 123 109 14 83
Balance Sheet
Non-current assets 1,528 1,548 1,579 1,681 1,533
Current assets 505 477 602 462 496
Balance sheet total 2,033 2,024 2,181 2,143 2,029
Equity 610 550 1,173 1,066 1,197
Interest bearing debt 761 746 247 377 327
Cash Flows
Operating activities 112 129 281 126 138
Investing activities (26) (19) (4) (29) (35)
Hereof acquisition of tangible assets (6) (11) (5) (11) (16)
Financing activities (29) (297) (165) (77) (44)
Employees
Average number of employees 450 452 473 491 539
Key Ratios
10% 13% 14% 3% 9%
Cash flows before financing activity as a % of revenue* 6% 7% 23% 8% 8%
Return on equity* 11% 14% 10% 1% 7%
Equity ratio* 30% 27% 54% 50% 59%
*The financial ratios are defined as
Operating margin (EBIT%) = EBIT/Revenue
Cash flows before financing activity as a % of revenue = Cash flow before financing activities/Revenue
Return on equity (%) = Profit/loss after tax/((Equity last year + Equity financial year)/2)
Equity ratio (%) = Equity/Balance sheet total
Key Figures
Income Statement
Operating margin (EBIT%)*
Earnings before interest, taxes, depreciation and
amortization
BoConcept Holding A/S - Annual Report 2022/23 3
Company Information
Company BoConcept Holding A/S
Central Business Registration no. 37 76 02 50
Board of Directors Sanna Mari Suvanto-Harsaae, Chairman
Boris Tobias Kawohl, Deputy chairman
Justin Laurens Pabst
Anders Christer Moberg
Executive Board
Mikael Kruse Jensen
Auditors PricewaterhouseCoopers
BoConcept Holding A/S - Annual Report 2022/23 4
Management's Review
Highlights from the 2022/23 financial year
Development and results for the year
Expectations
BoConcept Holding A/S is a global brand and an international furniture franchise chain in the 'affordable premium’ segment. The furniture and accessories
collection is sold through over 340 brand stores in over 60 countries with BoConcept as franchisor, designer, business developer, exclusive supplier and
international distributor.
In the 2022/23 financial year, BoConcept Holding A/S realised its second highest revenue ever at DKK 1,438 million, following a record year in 2021/22
(DKK 1,490 million). A slight year on year decline (3%) following a Covid boosted 2021/22, 19% better than FY20/21, 22% better than FY19/20 and 10%
better than 2018/19, the previous high. Following growth across all markets and product groups in 2021/22, performance was much more varied in 2022/23.
Nevertheless, BoConcept again managed to outperform the global furniture market and continued to take market share by executing its strategy, leveraging the
strength of the franchise partners and opening new stores. Furthermore, the company benefitted from enhanced brand awareness, continuous improvement to
sales processes and further efficiencies in the supply chain. The impact of Covid was restricted to much fewer markets, with China the worst hit. But the
Ukraine war and the ensuing energy crisis and headline inflation affected demand.
There was a strong recovery from the margin pressures experienced last year, resulting in a realized FY22/23 gross profit of 55.4% (2021/22: 52.6%). Full year
Freight % ended slightly higher than 2021/22, but the rates fell in the final quarter and have continued to decline into the new financial year.
EBITDA in 2022/23 was DKK 238 million (2021/22: DKK 275 million). A 13% decline year-on-year, mainly driven by lower revenue, increased investments
in marketing and inflationary pressure on services and payroll. However, the company remained disciplined on costs and as a result, ended close to budgeted
cost levels despite inflationary pressure. EBITDA percentage remained at a healthy 16.5% (2021/22 : 18.5%), above industry average.
After taxes of DKK 34 million, the Profit after Tax for the year was DKK 66 million (2021/22: DKK 123 million).
BoConcept continues to have a solid level of cash generation, with a positive cash flow of DKK 86 million (2021/22: DKK 110 million) before financing
activities. The company managed to further reduce stock levels and operate with close to zero Net Working Capital, while maintaining strong delivery
reliability.
The business enters the 23/24 financial year with 23 newly opened stores and further store openings planned. Many of the planned store openings will be
opened by existing Multi Unit Franchisees, which further enhances the strength of the business, as there are clear synergies to be gained from franchisees
running multiple stores. It will also increase brand awareness as more and more stores open in the world's biggest cities.
There remain numerous external pressures on the business and a level of uncertainty regarding the global economy, but the franchise network remains healthy
and prepared for the times ahead. Opening new stores globally remains a priority for the company and the B2B business is expected to grow in 2023/24. In
addition, further improvements in supply chain costs are expected.
But there does remain some uncertainty regarding the outlook for the coming year. Primarily related to the uncertainty in the global economy and how world
macro events will impact the furniture sector. Inflation has steadied on products purchases and freight, but is expected to remain a burden on the rest of the
business costs.
Management expects a single digit decline in revenue for the coming year. Margins are expected to plateau, but inflationary pressures are expected to remain on
the cost base. Gross margins are expected to be improved from 22/23 levels whilst EBITDA is expected to experience a single digit decline.
BoConcept Holding A/S - Annual Report 2022/23 5
BoConcept Holding A/S - Annual Report 2022/23 6
Executive Board
Board of Directors
BoConcept Holding A/S - Annual Report 2022/23 7
BoConcept Holding A/S - Annual Report 2022/23 8
CVR no. 33 77 12 31
BoConcept Holding A/S - Annual Report 2022/23 9
Consolidated Statement of Profit and Loss
Group
2022/23 2021/22
Note kDKK kDKK
Revenue 3 1,438,814 1,490,281
Cost of goods sold 4 (641,674 ) (706,967 )
Contribution margin 797,140 783,314
Transportation expenses (114,974 ) (116,796 )
Employee related costs 4 (245,117 ) (232,606 )
Marketing expenses (85,483 ) (70,538 )
Rent and maintenance expenses (40,184 ) (32,388 )
IT and Consultancy expenses (91,231 ) (91,858 )
Others 6 17,921 36,097
Operating profit (EBITDA) 238,072 275,225
Amortisation, depreciation, write-downs and impairment losses 7 (89,365 ) (84,634 )
Profit/loss from operating activities (EBIT) 148,707 190,591
Financial income 9 5,889 7,534
Financial expenses 10 (54,580 ) (23,212 )
Profit/loss before tax 100,016 174,913
Tax on profit/loss for the year 11 (33,876 ) (52,115 )
Profit/loss for the year 66,140 122,798
Profit/loss for the year is attributable to:
Shareholder of BoConcept Holding A/S 66,140 122,798
Consolidated Statement of Comprehensive Income
2022/23 2021/22
kDKK kDKK
Profit/loss for for the year 66,140 122,798
Revaluation of hedging instruments before tax 4,644 3,037
Tax on hedging instruments (1,022 ) (668 )
Foreign currency translation, foreign units (5,453 ) 169
Other adjustments in subsidiaries (4,030 ) 0
Total comprehensive income for the year 60,279 125,336
Broken down as follows:
Shareholder of BoConcept Holding A/S 60,279 125,336
BoConcept Holding A/S - Annual Report 2022/23 10
Consolidated Balance Sheet
Group
30.04.2023 30.04.2022
Note kDKK kDKK
Goodwill 533,976 535,311
Master rights 36,600 36,600
Franchise network 112,783 126,523
Brand and concept 571,000 571,000
Software 36,162 36,872
Intangible assets in progress 12,500 4,263
Total intangible assets 12 1,303,021 1,310,569
Right-of-use-assets 13 89,279 86,517
Land and buildings 74,183 79,783
Leasehold improvements 11,538 17,002
Plant and machinery 12,332 12,496
Fixtures and operating equipment 8,166 8,209
Property, plant and equipment in progress 3,047 1,549
Total tangible assets 14 198,545 205,556
Deferred tax 15 2,564 5,279
Other financial assets 16 24,256 26,131
Total other non-current assets 26,820 31,410
Total non-current assets 1,528,386 1,547,535
Inventories 17 139,311 184,111
Trade receivables 18 155,836 150,562
Other receivables 19 34,630 24,527
Cash and cash equivalents 174,745 117,504
Total current assets 504,522 476,704
Total assets
BoConcept Holding A/S - Annual Report 2022/23 11
Consolidated Balance Sheet
Group
30.04.2023 30.04.2022
Note kDKK kDKK
Share capital 20 1,000 1,000
Translation reserve (6,666 ) (1,213 )
Hedging reserve 6,018 2,396
Retained earnings 610,031 547,921
Equity share, BoConcept Holding A/S shareholder 610,383 550,104
Total equity 610,383 550,104
Lease liabilities 13 56,228 52,265
Deferred tax 15 177,343 182,249
Other provisions 21 8,090 8,788
Mortgage credit institutions and banks 22, 27 684,042 723,543
Total non-current liabilities 925,703 966,845
Lease liabilities 13 40,451 39,283
Mortgage credit institutions and banks 22 76,843 22,934
Trade payables 137,378 181,517
Payables, parent company 16,685 15,019
Prepayment from customers 64,364 64,819
Income tax payables 23 36,550 52,115
Other payables 124,551 131,603
Total current liabilities 496,822 507,290
Total liabilities 1,422,525 1,474,135
Total equity and liabilities 2,032,908 2,024,239
BoConcept Holding A/S - Annual Report 2022/23 12
Consolidated Statement of Changes in Equity
Group
Share capital
Hedging
reserve
Translation
reserve
Retained
earnings
Total
kDKK kDKK kDKK kDKK kDKK
Equity at 30.04.2021
Distribution of extraordinary dividend
Profit/loss for the year
Reserve for exchange rate adjustments 0 0 169 0 169
Revaluation of hedging instruments
Equity at 30.04.2022
Profit/loss for the year
Reserve for exchange rate adjustments 0 0 (5,453 ) 0 (5,453 )
Revaluation of hedging instruments
Tax of hedging instruments
Other adjustments
Equity at 30.04.2023
BoConcept Holding A/S - Annual Report 2022/23 13
Consolidated Cash Flow Statement
Group
2022/23 2021/22
kDKK kDKK
Profit/loss from operating activities (EBIT) 148,707 190,591
Adjustments for non-cash items 25 77,698 78,423
Changes in working capital 26 (20,557 ) (86,673 )
Cash flow from operating activities before financial items 205,848 182,341
Interest income etc. 5,889 5,692
Interest paid (47,803 ) (19,024 )
Income taxes paid (51,960 ) (40,197 )
Net cash flow from operating activities 111,974 128,812
Acquisition of intangible assets (20,084 ) (8,495 )
Acquisition of tangible assets (6,009 ) (10,753 )
Net cash flow from investing activities (26,093 ) (19,248 )
Cash flow before financing activities 85,881 109,564
New loans from banks 0 499,717
Installments on mortgage credit institutions and banks 14,408 0
Addition/disposals, financial assets 1,875 (4,766 )
Repayment of leasing debt (44,923 ) (43,404 )
Dividend paid 0 (748,498 )
+
Cash flow from financing activities (28,640 ) (296,951 )
Cash inflow/outflow for the year 57,241 (187,387 )
Cash and cash equivalents, beginning of the year 117,504 304,891
Cash and cash equivalents at end of the year 174,745 117,504
The amount may be broken down as follows:
Cash without restrictions 174,745 117,504
BoConcept Holding A/S - Annual Report 2022/23 14
Notes
Group
1. Accounting policies
2. Critical accounting estimates and judgements
3. Revenue
4. Costs
5. Fee to auditors appointed at the annual General Meeting
6. Others
7. Amortisation, depreciation, write-downs and impairment losses
8. Development costs
9. Financial income
10. Financial expenses
11. Tax on profit/loss for the year
12. Intangible assets
13. Leases
14. Tangible assets
15. Deferred tax
16. Other financial assets and deposits
17. Inventories
18. Trade receivables
19. Other receivables
20. Share capital
21. Other provisions
22. Amounts owed to credit institutions
23. Income tax payable
24. Contingent liabilities and security
25. Adjustment for non-cash items
26. Changes in working capital
27. Financial risk management
28. Transactions with related parties
BoConcept Holding A/S - Annual Report 2022/23 15
Notes
Group
1. Accounting policies
Accounting policies are unchanged from last year.
The annual report is presented in DKK 000, which is the functional and presentation currency of the company.
Consolidated financial statements and business combinations
Accounting policies
The consolidated financial statements for the period 1 May 2022 to 30 April 2023 have been prepared in accordance with International Financial Reporting Standards
as adopted by the EU. Further, the annual report has been prepared in accordance with the additional Danish disclosure requirements for annual reports.
The consolidated financial statements include the parent, BoConcept Holding A/S, as well as subsidiaries and enterprises in which BoConcept Holding A/S holds
more than 50 per cent of the votes, directly or indirectly, or in any other way exercises a controlling influence (subsidiaries). BoConcept Holding A/S and the
subsidiaries are collectively referred to as the group.
The consolidated financial statements have been prepared as a consolidation of the parent company's and the individual subsidiaries' financial statements by
consolidating accounting items of a similar nature and subsequently eliminating intra-group income and expenses, shareholdings, intra-group accounts and dividends
as well as unrealised gains and losses on transactions between the consolidated enterprises. The consolidated financial statements have been prepared in compliance
with the accounting policies applicable to the BoConcept Holding group.
In the consolidated financial statements the accounting items of the subsidiaries are recognised in full.
Acquisition and disposal of entities
When accounting for business combinations, the acquisition method is applied in accordance with IFRS 3.
Acquirees are recognized in the consolidated financial statements from the date of acquisition. The date of acquisition is the date on which BoConcept Holding A/S
obtains control of the company.
The consideration transferred as payment for the acquiree consists of the fair value of assets transferred, liabilities incurred to former owners of the acquiree and
equity instruments issued. Contingent considerations dependent on future events or the performance of contractual obligations are also recognized at fair value and
form part of the total consideration transferred. Fair value changes in contingent considerations are recognised in the income statement until final settlement.
Identifiable assets, liabilities and contingent liabilities of the acquiree are measured at fair value at the date of acquisition by applying relevant valuation methods.
Identifiable intangibles are recognised if they are separable or arise from a contractual right. Deferred tax is recognised for identifiable tax benefits existing at the
date of acquisition.
The excess of the total consideration transferred, value of non-controlling interests and the fair value of any equity investments previously held in the acquiree over
the total identifiable net assets measured at fair value are recognized as goodwill.
If measurement of the identifiable net assets is uncertain at the date of acquisition, initial recognition is done based on provisional amounts. Measurement period
adjustments to the provisional amounts may be done for up to 12 months following the date of acquisition. The effects of cross period measurement period
adjustments are recognised in equity at the beginning of the financial year, and comparative figures are restated. After the end of the period, goodwill is no longer
adjusted.
Transaction costs inherent from the acquisition are recognized in the income statement when incurred.
Other than cross-period measurement period adjustments, comparative figures are not adjusted when acquiring or disposing entities.
BoConcept Holding A/S - Annual Report 2022/23 16
Notes
Group
Foreign currency translation
Derivative financial instruments
INCOME STATEMENT
Revenue
Cost of goods sold
Employee related cost
Marketing
Transportation
Depreciations
The group fixes a functional currency for each of the reporting enterprises. The functional currency is the currency which is applied in the primary economic
environment in which the individual reporting unit operates. Transactions denominated in currencies other than the functional currency are foreign currency
transactions.
On initial recognition, transactions denominated in foreign currencies are translated to the functional currency at the exchange rates prevailing at the transaction
date. Any exchange differences between the rate prevailing at the transaction date and the rate prevailing at the date of settlement on receivables, payables and other
monetary items are taken to the income statement as financial items.
Receivables, debts and other monetary items in foreign currencies are converted at the exchange rate prevailing at the balance sheet date. The difference between
the rate prevailing at the balance sheet date and the rate prevailing at the time when the receivable or payable item arose is included in the income statement under
financial income and expenses.
On recognition in the consolidated financial statements of enterprises with a functional currency other than Danish kroner the income statements of such enterprises
are translated to the rate prevailing at the transaction date, and the balance sheet items are translated to the rate prevailing at the balance sheet date. An average
exchange rate for the month is used as the exchange rate at the transaction date to the extent that this does not significantly distort the presentation of the underlying
transactions. Foreign exchange differences arising on translation of the opening balance of the equity of such enterprises at the exchange rates prevailing at the
balance sheet date and on translation of the income statements from the exchange rates at the transaction date to the exchange rates at the balance sheet date are
recognised in other comprehensive income and classified in equity under a separate translation reserve.
Derivative financial instruments are initially and subsequently recognised at fair value in the balance sheet. Positive and negative fair values of derivative financial
instruments are included in other receivables and payables, respectively, and set-off of positive and negative values is only made when the company has the right and
the intention to settle several financial instruments net. Fair values of derivative financial instruments are calculated on the basis of current market data and
generally accepted valuation methods.
Changes in the portion of the fair value of derivative financial instruments designated as and qualifying as a cash flow hedge are recognised in other comprehensive
income and classified under a separate hedging reserve in equity. Once the hedged transaction is realised, gains or losses incidental to such hedging transactions are
transferred from the equity and recognised with the hedged item.
The group manufactures and sells a range of furniture to a number of frachisees. Sales are recognised when control of the products has transferred, being when the
products are delivered to the franchisee, the franchisee has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that
could affect the franchisee’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and
loss have been transferred to the franchisee, and either the franchisee has accepted the products in accordance with the sales contract, the acceptance provisions
have lapsed, or the group has objective evidence that all criteria for acceptance have been satisfied.
The furniture is sometimes sold with retrospective volume discounts based on aggregate sales over a 12 months period. Revenue from these sales is recognised
based on the price specified in the contract, net of the estimated volume discounts. Accumulated experience is used to estimate and provide for the discounts, using
the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. A refund liability
(included in trade and other payables) is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting
period. No element of financing is deemed present as the sales are made with standard credit terms, which are consistent with market practice.
A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is
required before the payment is due.
Cost of goods sold include cost related to the production and purchasing of materials and direct salaries paid to generate revenue for the year.
Employee related cost include indirect salaries and personnel related cost.
Marketing expenses includes cost related to marketing campaigns.
Transportation cost includes cost related to distribute goods related to generating revenue for the year.
Depreciations is related to amortization and depreciations of intangible and tangible assets for the year.
BoConcept Holding A/S - Annual Report 2022/23 17
Notes
Group
Rent and Maintenance
IT and Consultancy
Others
Financial income and expenses
Tax on profit for the year
BALANCE SHEET
Intangible assets
Goodwill
Master rights
Brand and concept
Franchise network
Software
Rent and maintenance cost include cost related to rental of stores and offices and maintenance of production facilities and buildings.
IT and Consultancy cost include cost related to IT equipment and communication, consultancy, audit, legal advisory and insurances.
Others is cost that is not included in the above.
Financial income and expenses include interest income and expenses, exchange adjustments relating to securities, payables and transactions denominated in foreign
currencies, amortisation of financial assets and liabilities and surcharges and allowances under the advance-payment-of-tax scheme etc.
Furthermore, realised and unrealised gains and losses relating to derivative financial instruments which do not qualify as hedging contracts are also recognised.
Tax for the year, which comprises current income taxes, the joint taxation contribution for the year relating to the use or refund of tax losses and changes in deferred
tax for the year, for instance as a result of changes in the tax rate, is recognised in the income statement with the proportion attributable to the profit for the year and
is recognised directly in other comprehensive income and equity respectively as regards the portion attributable to amount included in other comprehensive income
or items under the equity.
The current Danish income tax is allocated among the jointly taxed companies in the form of settlement of joint tax contributions in proportion to their taxable
income. In this connection Danish companies with tax losses receive joint tax contributions from companies that have been able to utilise these losses to reduce their
own taxable profits.
Goodwill is initially recognised in the balance sheet at cost as described under 'The Consolidated Financial Statements and Business Combinations'. Subsequently
goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised.
The carrying amount of goodwill is allocated to the group's cash-generating units at the acquisition date. The identification of cash-generating units is based on
management structure and internal financial control. Management estimates that the smallest cash-generating units to which the carrying amount of goodwill can be
allocated is the collective group of subsidiaries.
At least once a year the carrying amount of goodwill is tested for impairment together with the other non-current assets in the cash-generating unit to which goodwill
is allocated and written down to the recoverable amount over the income statement if the carrying amount is higher. The recoverable amount is computed as the
present value of the expected future net cash flows from the enterprise or activity (cash-generating unit) to which goodwill is allocated.
Master rights acquired to run and start up new BoConcept Brand Stores on a specific market are recognised in the balance sheet.
Master rights are of indefinite duration as it is a general access to run and start up BoConcept Brand Stores on specific markets. The characteristics of the acquired
rights are in fact comparable to goodwill.
Master rights are measured at cost. No amortisation is made in respect of these as their useful lives cannot be determined, but they are subject to an annual
impairment test.
BoConcept is an international franchise concept owner with a full product range of furniture and accessories. BoConcept is positioned in the 'affordable premium'
segment, which entails strong reliance on its brand/concept image.
The rights are of indefinite duration, and the characteristics of the acquired rights are in fact comparable to goodwill.
Brand and concept are measured at cost. No amortisation is made in respect of these as their useful lives cannot be determined, but they are subject to an annual
impairment test.
Furniture and accessories collections are sold through the BoConcept franchise chain worldwide. BoConcept Holding A/S and the franchisee have a long-term
contractual agreement. Franchise network is amortised over 15 years.
Software is acquired externally and is measured at cost less accumulated amortisation. Software is written down to the recoverable amount or to the carrying
amount, whichever is the lower. Amortisation is charged over three to eight years.
BoConcept Holding A/S - Annual Report 2022/23 18
Notes
Group
Intangible assets in progress
Tangible assets
Buildings
10-25 years
Plant and machinery
5-9 years
Fixtures and fittings, other plant and equipment
3-7 years
Leasehold improvements
3-10 years
Leases
The company conducts no research. New products and product innovations are developed in consultation with external consultants. Development costs are
recognised as intangible assets in progress when they are clearly defined, identifiable, and for which technical feasibility, sufficient resources and a potential future
market or application in the enterprise can be demonstrated. In addition, it is the intention to use the costs for future commercial or enterprise purposes. This applies
if the costs can be measured reliably, and sufficient certainty exists that future earnings or the net selling price can cover development costs. Other development
costs not qualifying for capitalization are recognised in the income statement as research and development costs.
Capitalised development costs are measured at cost less accumulated amortisation and impairment losses. Development costs comprise the cost of external
consultatns, amortisation and other costs attributable to BoConcept’s development activities.
Following completion of the development work, development costs are amortised on a straight-line basis over their estimated useful lives. The amortisation period is
three to five years. The basis of amortisation is calculated net of any impairment losses.
Land and buildings, plant and machinery and fixtures and fittings, other plant and equipment are measured at cost less accumulated depreciation and impairment
losses.
The cost comprises the cost of acquisition as well as costs directly attributable to the acquisition until such time when the asset is put into service.
The cost of assets held under finance leases is stated at the lower of the fair value of the assets and the present value of the future minimum lease payments. For the
calculation of the present value, the interest rate implicit in the lease or an approximation thereof is used as the discount rate.
Subsequent costs, e.g. in connection with replacement of components of property, plant and equipment, are recognised in the carrying amount of the asset if it is
probable that the costs will result in future economic benefits for the group. The replaced components are removed from the balance sheet and recognised as an
expense in the income statement. All costs incurred for ordinary repairs and maintenance are recognised in the income statement as incurred.
Depreciation is provided on a straight-line basis over the expected useful lives of the assets, applying the following useful lives:
Land is not depreciated.
Depreciation is calculated on the basis of the residual value less impairment losses. The residual value is determined at the acquisition date and reassessed annually.
If the residual value exceeds the carrying amount, depreciation is discontinued.
When changing the depreciation period or the residual value, the effect on the depreciation is recognised prospectively as a change in accounting estimates.
Depreciation is recognised in the income statement on a separate line.
The right-of-use asset and corresponding lease liability will be recognised at the commencement date, i.e. the date the underlying asset is available for use. Our lease
terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.
Right-of-use assets are measured at cost corresponding to the lease liability recognised, adjusted for any lease incentives received, initial direct costs and estimated
restoration costs. Depreciations are done following the straight-line method over the lease term or the useful life of the right-of-use assets, whichever is shortest.
The lease liabilities are measured at the present value of lease payments to be made over the lease term. The lease payments are discounted using the incremental
borrowing rate. The lease payments include fixed payments and variable lease payments that depend on an index or a rate, less any lease incentives receivable. If the
contract holds an option to purchase, extend or terminate a lease and it is reasonably certain to be exercised by BoConcept Holding A/S, the lease payments will
include those. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event or condition that
triggers the payment occurs.
The discount rate used for assessment of the leasing payments in accordance with IFRS 16 has been set by obtaining a market evaluation of the interest rate on
which BoConcept would have been able to obtain financing should we have bought the assets instead of leasing. Thus the interest rate used for discounting the
leasing payments shall be seen as the market rate at the relevant time.
For all classes of assets, non-lease components, i.e. service elements, will be separated from the lease components and thereby not form part of the right-of-use asset
and financial lease liability recognised in the balance sheet.
Right-of-use assets have the following lease terms:
Buildings 1-15 years.
Vehicles 1-5 years.
Other assets 1-4 years.
BoConcept Holding A/S - Annual Report 2022/23 19
Notes
Group
Impairment of non-current assets
Other financial assets
Inventories
Receivables
Prepayments
EQUITY
Goodwill, master rights and brand and concept are subject to annual impairment tests, or where there seems to be a need for testing, initially before the end of the
acquisition year.
The carrying amounts of goodwill, master rights and brand and concept are subject to an impairment test together with the other non-current assets in the cash-
generating unit to which goodwill, master rights and brand and concept have been allocated, and the said assets are written down to the recoverable amount via the
income statement if this is lower than the carrying amount. The recoverable amount is generally computed as the present value of the expected future net cash flows
from the enterprise or activity (cash-generating unit) to which goodwill or the master rights are allocated.
An impairment loss is recognised if the carrying amount of an asset or a cash-generating unit, respectively, exceeds the recoverable amount of the asset or the cash-
generating unit. Impairment losses are recognised in the income statement under production costs, distribution costs and administrative expenses respectively.
Impairment of goodwill is not reversed. Impairment of other assets is only reversed in connection with changes in the assumptions and estimates underlying the
impairment calculation. Impairment is only reversed to the extent that the asset's new carrying amount does not exceed the carrying amount of the asset after
amortisation had the asset not been impaired.
Securities are recognised at fair value.
Inventories are measured at cost according to the FIFO method. Where the net realisable value is lower than the cost, the item is written down to the former lower
value.
The cost of goods for resale, raw materials and consumables includes the purchase price and delivery costs.
The cost of finished goods and work in progress comprises the cost of raw materials, consumables, direct wages and production overheads. Production overheads
include indirect materials and wages as well as maintenance and depreciation of the machinery, plant and equipment applied in the production process as well as the
cost of factory administration and management.
The net realisable value of inventories is calculated as the selling price less costs of completion and costs necessary to make the sale and is determined taking into
account marketability, obsolescence and development in expected selling price.
Receivables are measured at amortised cost price, which is equal to the nominal value less loss allowance. The Group applies the IFRS 9 simplified approach to
measuring the expected credit losses.
Receivables are initially recognised at fair value and subsequently measured at amortised cost less write-down for losses. Provisions for losses are made by applying
the expected loss impairment model and provisions are made based on an objective indicaton if an individual receivable or a portfolio of receivables are impaired.
Prepayments measured at cost price and recognised under assets include costs paid relating to subsequent financial years.
Dividend
The dividend proposed is recognised as a liability at the time of approval by the general meeting. Dividend which is expected to be distributed for the year is shown
as a separate item under the equity. Interim dividend is recognised as a liability at the date when the decision to pay interim dividend is made.
Translation reserve
The translation reserve in the consolidated financial statements comprises foreign exchange differences arising on translation of financial statements of foreign
enterprises from their functional currencies to the presentation currency of the BoConcept Holding group (Danish kroner). On full or partial realisation of the net
investment the foreign exchange adjustments are recognised in the income statement.
Hedging transaction reserve
Hedging instruments are recognised at fair value, and fair value adjustments are effected in the equity for unsettled instruments.
BoConcept Holding A/S - Annual Report 2022/23 20
Notes
Group
LIABILITIES
CASH FLOW
Income taxes and deferred tax
In pursuance of the joint taxation provisions Layout Holdco A/S in its capacity of administration company takes over the liability for the income taxes of the
subsidiaries vis-à-vis the tax authorities as the subsidiaries make their joint tax contributions.
Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of
prior years and for tax paid on account.
Deferred tax is measured according to the balance sheet liability method of all temporary differences between the carrying amount and the tax base of assets and
liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill.
In cases where the tax base may be measured according to alternative tax regulations, deferred tax is measured on the basis of the use of the asset or liability
planned by the management.
Deferred tax assets are subject to an annual impairment test and are amortised if it is deemed probable that the deferred tax asset cannot be eliminated against tax on
future earnings or offset against deferred tax liabilities within the same legal tax entity or jurisdiction. In the assessment importance is attached to the type and
nature of the recognised deferred tax asset, the expected time limit for eliminating the deferred tax asset, tax planning possibilities etc.
Deferred tax will be adjusted to account for the elimination of unrealised intra-group profits and losses.
Deferred tax is measured according to the tax rules and at the tax rates applicable in the respective countries at the balance sheet date when the deferred tax is
expected to crystallise as current tax.
Provisions
Provisions are recognised when, as a result of events arising before or at the balance sheet date, the group has a legal or a constructive obligation and it is probable
that there may be an outflow of resources embodying economic benefits to settle the obligation. The amount recognised as a provision is management's best estimate
of the expenses required to settle the obligation.
Restructuring costs are recognised as a liability when the persons affected by it have been notified of a detailed, formal restructuring plan not later than at the
balance sheet date.
Financial liabilities
Payables to mortgage credit institutions and banks are recognised in the amount of the proceeds after deducting transaction costs when the loan is raised. In
subsequent periods the financial liabilities are recognised at amortised cost using the 'effective rate of interest method' thus that the difference between the proceeds
and the nominal value is recognised in the income statement under financial expenses over the term of the loan. Financial liabilities also include the capitalised
residual obligation under finance leases. Other liabilities are measured at the nominal value which corresponds to the amortised cost for current payables.
Cash flow statement
The cash flow statement shows the group's cash flow divided into operating, investing and financing activities, the change in cash and cash equivalents during the
year and the group's cash and cash equivalents at the beginning of the year and at year-end.
Cash flow from financing activities
Cash flows from financing activities comprise changes in the size or composition of the share capital and related costs as well as the raising of loans, repayment of
long-term interest-bearing debt, acquisition and disposal of treasury shares and payment of dividend to the shareholder.
Cash and cash equivalents
Cash and cash equivalents comprise cash and short-term marketable securities with a term of three months or less at the acquisition date which are subject to an
insignificant risk of changes in value.
Prepayments from customers
Prepayments from customers recognised under liabilities are measured at cost and include prepayments received concerning ordered, but not yet delivered, furniture.
BoConcept Holding A/S - Annual Report 2022/23 21
Group
2. Critical accounting estimates and judgements
Estimation uncertainty
Determining the carrying amounts of certain assets and liabilities requires estimation of the effects of future events on the carrying amounts of these assets and
liabilities at the balance sheet date. Estimates that are material for the financial reporting are made, among other things, by computing amortisation, depreciation,
write-downs and impairment losses, provisions as well as contingent liabilities and assets. The estimates applied are based on assumptions which are sound, in the
management's opinion but which by their very nature, are uncertain and unpredictable. The assumptions may be incomplete or inaccurate, and unexpected events or
circumstances may arise. Moreover, the company is subject to risks and uncertainties that may cause the actual results to differ from these estimates.
The notes provide information on bases and assumptions, on the future and other estimation uncertainties at the balance sheet date where there is a considerable risk
of changes that may lead to a significant adjustment of the carrying amounts of assets or liabilities within the next financial year.
For BoConcept Holding A/S the measurement of goodwill DKK 534 million, master rights DKK 37 million, franchise network DKK 113 million, brand & concept
DKK 571 million, trade receivables DKK 156 million and inventory DKK 139 million may be significantly affected by major changes in the estimates and
underlying assumptions of the calculations. For a description of impairment tests for intangible assets reference is made to note 12, where the amounts are also
stated.
Trade receivables are measured at amortised cost or net realisable value in the balance sheet, corresponding to the nominel value less write-downs for bad debt and
doutful debt. Write-downs to provide for losses are determined on the basis of an individual assesment of each receivable and the specific risk of the debtor being
unable to pay. Collective write-downs in respect of other franchisees are determined on the basis of a general assesment of the risk that the group of debtors is
unable to pay in the light of the company's experience from previous years. The determination is therefore to some extent based on estimates.
Inventory consists of; finished goods, raw materials and work in progress, valued at either the standard production cost (own production) or after FIFO accounting
principles, minus provisions for obsolescence. The provision for obsolescence is based upon the company’s internal write-down policy, which in turn is evaluated
based upon a combination of Product Life Cycle status and product turnover rates.
Material judgements
In applying the acquisition method of accounting, estimates are an integral part of assessing fair values of several identifiable assets acquired and liabilities assumed
as observable market prices are typically not available.
Valuation techniques where estimates are applied typically relate to determining the present value of future uncertain cash flows or assessing other events in which
the outcome is uncertain at the date of acquisition.
More significant estimates are applied in accounting for brand and concept, franchise network, property, plant and equipment, inventories and deferred tax.
Master rights acquired to run and start up new BoConcept brand stores in specific markets are recognised in the balance sheet. The rights have no fixed term and
have the characteristics of goodwill. Upon acquisition of enterprises and activities, management will evaluate whether such acquisition is deemed to constitute an
enterprise or individual assets, including master rights and liabilities. Where no staff members, key net assets, are acquired, and where other contractual conditions
otherwise support this position, management will deem the acquisition to consist of individual assets, typically including master rights. The Franchise Network
which is the deemed value of the global franchise operators to BoConcept are depreciated over the determined useful lifetime, which is impacted by material
judgement. Goodwill and the Brand and Concept, which is the value attached to the IP of the BoConcept business model, was valued at acquisition in 2016 and are
annually assessed using a discounted cashflow impairment testing approach, which is impacted by significant assumptions made.
BoConcept Holding A/S - Annual Report 2022/23 22
Notes
3. Revenue
2022/23 2021/22
Revenue coming from sale of furniture
kDKK kDKK
EMEA 804,776 829,274
Americas
178,430 188,388
APAC
455,608 472,619
1,438,814 1,490,281
4. Costs
Staff Costs
Wages and salaries
(234,190) (248,116)
Pensions
(9,581) (9,292)
Termination payments
(24) 391
Other social security costs
(1,848) (1,840)
Other staff costs
(26,207) (16,041)
(271,850) (274,898)
Average number of employees
Wages and salaries
(12,280) (11,491)
Short-term incentive plan (Bonus)
(11,593) (6,385)
Pensions (1,594) (1,076)
(25,467) (18,951)
5. Fee to auditors appointed at the annual General Meeting
Audit
(1,037) (786)
Other services
(193) (474)
Tax consultancy
(586) (200)
(1,816) (1,460)
6. Others
Changes in bad debt provision
(4,007) 0
Management fee and commission with subsidiaries
(9,783) (4,138)
Other expenses
(12,910) (11,208)
(26,700) (15,346)
Changes in bad debt provision
0 14,000
Other income
44,621 37,443
44,621 51,443
7. Amortisation, depreciation, write-downs and impairment losses
Amortisation of intangible assets
(26,747) (26,336)
Depreciation of tangible assets
(17,466) (15,908)
Depreciation of right-of-use assets
(45,152) (42,390)
(89,365) (84,634)
Including Key Management Personnel (Executive management team*):
*The Executive Management team had 6 members at the end of the financial year 2022/23 (5 members in 2021/22). Remuneration of the Executive Board and
Board of Directors was kDKK 9.303 in 2022/23 (2021/22: kDKK 8.885).
BoConcept Holding A/S - Annual Report 2022/23 23
Notes
Group
2022/23 2021/22
8. Development costs
kDKK kDKK
Development costs paid during the year
(8,423) (9,592)
9. Financial income
Interest income, other
5,889 5,692
Foreign exchange rate adjustments
0 1,842
5,889 7,534
10. Financial expenses
Interest expenses, lease liabilities
(2,196) (3,782)
Interest expenses, other
(47,803) (19,024)
Settlement of hedging instruments
30 (406)
Foreign exchange rate adjustment
(4,611) 0
(54,580) (23,212)
11. Tax on profit/loss for the year
Tax on profit/ loss for the year may be subdivided as follows:
Current tax (35,323) (52,115)
Deferred tax 2,191 3,752
Adjustment previous years' taxes (51) (3,116)
Withholding tax (693) (636)
(33,876) (52,115)
Tax on profit/loss for the year may be explanied as follows:
Calculated 22% tax on profit/loss for the year before tax (22,004) (38,481)
Withholding tax (693) (636)
Adjustments to withholding tax related to previous years 0 0
The tax effect of:
Deferred tax asset not recognised on losses arising in the year 0 0
Reversal of tax provisions 0 (359)
Non-taxable income and non-deductible costs (7,808) (5,817)
Higher tax rate in subsidiaries (3,320) (3,706)
Adjustment of tax related to previous years (51) (3,116)
(33,876) (52,115)
Effective tax rate 33.9% 29.8%
BoConcept Holding A/S - Annual Report 2022/23 24
Notes
Group
12. Intangible assets
kDKK
Goodwill Master rights
Franchise
network
Brand and
concept Software
Intangible
assets in
progress Total
Acquisition cost, beg.year 535,311 42,039 206,100 571,000 155,510 4,263 1,514,223
Foreign exchange rate
adjustments
(1,335) 0 0 0 0 0 (1,335)
Additions 0 0 0 0 7,584 12,500 20,084
Transfers 0 0 0 0 4,263 (4,263) 0
Acquisition cost, year-end 533,976 42,039 206,100 571,000 167,357 12,500 1,532,972
Amortisation and impairment
losses, beg.year
0 (5,439) (79,577) 0 (118,638) 0 (203,654)
Foreign exchange rate
adjustments
0 0 0 0 450 0 450
Amortisation for the year 0 0 (13,740) 0 (13,007) 0 (26,747)
Amortisation and impairment
losses, year-end
0 (5,439) (93,317) 0 (131,195) 0 (229,951)
Carrying amount, year-end 533,976 36,600 112,783 571,000 36,162 12,500 1,303,021
Depreciated over a period of 15 years 3-8 years
Master rights relate to acquisition of master rights in China, the UK, Spain, Sweden, Portugal and Denmark.
An impairment test of the carrying amounts of goodwill, master rights and brand & concepts has been carried out at 30 April 2023.
2022/23 2021/22
Master rights:
kDKK
kDKK
China
8,278
8,278
Denmark
4,483
4,483
Portugal
2,226
2,226
Spain
8,871
8,871
Sweden
4,760
4,760
UK
7,982
7,982
Total 36,600 36,600
Goodwill is based on the cashflow generating regions in EMEA, AMERICAS and APAC
Goodwill:
EMEA 314,329 314,329
AMERICAS 40,737 40,737
APAC 178,910 180,245
Total 533,976 535,311
2022/23
The carrying amount of master rights is based on cash flow generating stores in Denmark, the UK, Spain, Portugal, Sweden and China.
BoConcept Holding A/S - Annual Report 2022/23 25
Notes
Group
Brand and concepts is based on cashflow generating regions in EMEA, AMERICAS and APAC
2022/23
2021/22
Brand and concepts:
kDKK kDKK
EMEA 336,108 336,108
AMERICAS 43,993 43,993
APAC 190,899 190,899
Total 571,000 571,000
kDKK
Goodwill Master rights
Franchise
network
Brand and
concept Software
Intangible
assets in
progress Total
Acquisition cost, beg.year 533,533 42,039 206,100 571,000 150,892 1,584 1,505,148
Foreign exchange rate
adjustments
1,778 0 0 0 0 0 1,778
Additions 0 0 0 0 4,807 3,688 8,495
Transfers 0 0 0 0 1,009 (1,009) 0
Disposals for the year 0 0 0 0 (1,198) 0 (1,198)
Acquisition cost, year-end 535,311 42,039 206,100 571,000 155,510 4,263 1,514,223
Amortisation and impairment
losses, beg.year
0 (5,439) (65,837) 0 (106,152) 0 (177,428)
Foreign exchange rate
adjustments
0 0 0 0 (1,088) 0 (1,088)
Amortisation for the year 0 0 (13,740) 0 (12,596) 0 (26,336)
Disposals for the year 0 0 0 0 1,198 0 1,198
Amortisation and impairment
losses, year-end
0 (5,439) (79,577) 0 (118,638) 0 (203,654)
Carrying amount, year-end 535,311 36,600 126,523 571,000 36,872 4,263 1,310,569
Depreciated over a period of 15 years 3-8 years
2021/22
The main factors in the determination of the recoverable amount are revenue and contribution margin which both affect the free cash flow. Furthermore the discount
rate is a main assumption.
The recoverable amounts of goodwill, master rights and brand and concepts are based on the capital value, which is determined by applying expected cash flows
based on the budget for the next year and an estimated projection for the next four years at an annual growth rate related to expected revenue growth from increased
same-store-sales and opening of new stores followed by the calculation of a terminal value without annual growth and with an unchanged free cash flow. Free cash
flow is based on past performance/management expectation of market developments etc. and is expected to be around DKK 135 million in average over the next 5
years, and DKK 1,061 million in the terminal period (last year 2,071 million). All amounts have been discounted at 10.20% after-tax (9.32% last year) and 13.08%
pre-tax (11.95% last year).
The calculated recoverable amounts of the remaining values are significantly higher than the carrying amounts.
BoConcept Holding A/S - Annual Report 2022/23 26
13. Leases
This note provides information for leases where the group is a lessee.
Amounts recognised in the balance sheet
2022/23 2021/22
kDKK kDKK
Right-of-use assets
Buildings
85,782 83,072
Vehicles
2,823 2,329
Other
674 1,116
89,279 86,517
The maturity of Lease liabilities - Non-discounted (kDKK)
Within 1 year 40,451 39,283
Between 1 and 5 years 55,595 50,267
After 5 years 633 1,998
96,679 91,548
Amounts recognised in the statementof profit or loss
2022/23 2021/22
kDKK kDKK
Depreciation charge right-of-use assets
Buildings (depreciated over a period of 1-15 years) 42,847 39,016
Vehicles (depreciated over a period of 1-5 years) 1,748 1,761
Other (depreciated over a period of 1-4 years) 557 1,613
45,152 42,390
Interest expenses related to lease liabilities 2,196 3,782
Expense relating to short-term leases 481 463
2,677 4,245
Total cash outflow for leases is specified in the cash flow statement.
Additions/remeasurements to the right-of-use assets during the financial year 2022/23 were kDKK 48.242 (2021/22: kDKK 25.212).
BoConcept Holding A/S - Annual Report 2022/23 27
Notes
Group
14. Tangible assets
kDKK
Land and
buildings
Leasehold
improvements
Plant
and machinery
Fixtures and
operating
equipment
Property,
plant and
equipment in
progress
Total
Acquisition cost, beg.year 259,485 51,746 182,049 41,262 1,549 536,091
Additions 0 1,009 2,395 356 2,249 6,009
Transfers 674 0 77 0 (751) 0
Disposals for the year 0 (1,513) 0 0 0 (1,513)
Acquisition cost, year-end 260,159 51,242 184,521 41,618 3,047 540,587
(179,702) (34,744) (169,553) (33,053) 0 (417,052)
Foreign exchange rate adjustments (60) 703 0 2,554 0 3,197
Depreciation for the year (6,214) (5,663) (2,636) (2,953) 0 (17,466)
Disposals for the year 0 0 0 0 0 0
Depreciation and impairment losses, year-end (185,976) (39,704) (172,189) (33,452) 0 (431,321)
Carrying amount, year-end 74,183 11,538 12,332 8,166 3,047 109,266
Depreciated over a period of 10-25 years 3-10 years 5-9 years 3-7 years
kDKK
Land and
buildings
Leasehold
improvements
Plant and
machinery
Fixtures and
operating
equipment
Property,
plant and
equipment in
progress
Total
Acquisition cost, beg.year 258,330 47,319 177,766 38,898 3,625 525,938
Foreign exchange rate adjustments
1 0 0 0 0 1
Additions 678 4,937 1,134 2,455 1,549 10,753
Transfers 476 0 3,149 0 (3,625) 0
Disposals for the year 0 (510) 0 (91) 0 (601)
Acquisition cost, year-end 259,485 51,746 182,049 41,262 1,549 536,091
(173,702) (33,012) (167,521) (30,440) 0 (404,675)
Foreign exchange rate adjustments
0 3,563 0 (250) 0 3,313
Depreciation for the year (6,000) (5,422) (2,032) (2,454) 0 (15,908)
Disposals for the year 0 127 0 91 0 218
Depreciation and impairment losses, year-end (179,702) (34,744) (169,553) (33,053) 0 (417,052)
Carrying amount, year-end 79,783 17,002 12,496 8,209 1,549 119,039
Depreciated over a period of 10-25 years 3-10 years 5-9 years 3-7 years
2022/23
Depreciation and impairment losses, beg.year
2021/22
Depreciation and impairment losses, beg.year
BoConcept Holding A/S - Annual Report 2022/23 28
Notes
Group
15. Deferred tax
2022/23 2021/22
kDKK kDKK
Deferred tax, beg.year (176,970) (180,723)
Deferred tax for the year 2,191 3,753
Deferred tax, year-end (174,779) (176,970)
Deferred tax is recognised in the balance sheet as follows
Deferred tax (asset) 2,564 5,279
Deferred tax (liability) (177,343) (182,249)
Net deferred tax, year-end (174,779) (176,970)
Deferred tax relates to:
Intangible assets (175,572) (179,434)
Tangible assets 111 (113)
Current assets (18) 3,300
Current liabilities 700 (723)
(174,779) (176,970)
16. Other financial assets and deposits
2022/23 2021/22 2022/23 2021/22
kDKK
kDKK
kDKK
kDKK
Acquisition cost, beg.year 25,058 20,324 1,074 1,042
Foreign exchange rate adjustments (1,944) (364) (9) 32
Additions 78 5,464 0 0
Disposals for the year 0 (366) 0 0
Acquisition cost, year-end 23,192 25,058 1,065 1,074
17. Inventories
2022/23 2021/22
kDKK
kDKK
Raw materials and consumables 11,588 7,984
Goods in progress 4,255 2,984
Manufactured goods and goods for resale 123,468 173,143
139,311 184,111
Cost of sales for the year which is included in production costs 792,716 811,374
Write-down of inventories 0 5,108
Reversal of write-downs for the year 10,020 0
Layout Holdco A/S is the administrator of joint taxation scheme, and in the capacity it settles all payments of incoming taxes with the tax authorities.
Deposits Other financial assets
BoConcept Holding A/S - Annual Report 2022/23 29
Notes
Group
18. Trade receivables
2022/23 2021/22
kDKK
kDKK
Trade receivables 155,836 150,562
Provisions for losses have been recognised in the above items as follows:
Provisions, beg.year (38,978) (44,874)
Change in provision for the year (9,344) 5,896
Provisions, year-end (48,322) (38,978)
Gross receivables before provision for losses
Not due 154,989 163,686
Overdue in 0-30 days 17,115 10,039
Overdue in 31-60 days 7,005 863
Overdue in > 60 days 25,049 14,952
204,158 189,540
Write-down distribution
Not due (10,983) (17,455)
Overdue in 0-30 days (7,855) (7,629)
Overdue in 31-60 days (6,758) (437)
Overdue in > 60 days (22,726) (13,457)
(48,322) (38,978)
19. Other receivables
Other receivables 10,888 15,205
Prepayments 23,742 9,322
Total other receivables 34,630 24,527
20. Share capital
The share capital comprise:
Number of
shares
Nominal
value
(kDKK)
Number of
shares
Nominal value
(kDKK)
1,000 1,000 1,000 1,000
Each share represents 1 vote
21. Other provisions
2022/23 2021/22
kDKK kDKK
Acquisition cost, beg.year 8,788 7,495
Foreign rate adjustments (657) 423
Additions for the year 36 1,136
Disposals for the year (77) (266)
8,090 8,788
Other provisions relate to re-establishment of leaseholds.
A shares
2022/23 2021/22
BoConcept Holding A/S - Annual Report 2022/23 30
Notes
Group
22. Amounts owed to credit institutions
2022/23 2021/22
Mortgage credit institutions
kDKK
kDKK
Within 1 year 2,947 2,934
Between 1 and 5 years 8,974 11,826
After 5 years 0 0
11,921 14,760
Credit institutions
After 5 years 0 525,000
Between 1 and 5 years 690,000 205,000
Long-term part 690,000 730,000
Within 1 year 73,896 20,000
73,896 20,000
Amortised loan costs
(14,932) (18,283)
23. Income tax payable
Corporation tax, due at the beginning 52,115 43,010
Paid corporation tax (51,960) (40,197)
Adjustment previous years' taxes 51 (2,813)
Tax of the year 36,344 52,115
Tax payable at year end 36,550 52,115
24. Contingent liabilities and security
Securities
Security in the following BoConcept A/S assets:
Land and buildings recognised at: 27,650 30,475
Production, plant and machinery recognised at: 12,288 12,452
Are charged in addition to the mortgage debt of: 11,921 14,760
Subject to letter of indemnity of: 0 50,000
Security in the following BoConcept A/S assets:
Goodwill, domain names and various rights 36,600 36,600
Plant, operating equipment and machinery 16,243 14,480
Inventory value 116,248 155,195
Receivables and location involvement 108,673 115,964
Total 277,764 322,239
Registered value of company security 125,000 125,000
BoConcept A/S has provided guarantee for franchisees' landlords for rent of DKK 32.6 million (last year DKK 34.7 million).
BoConcept A/S has provided guarantee for franchisee's electronic payments towards third party of DKK 3.7 million (last year DKK 3.7 million).
BoConcept A/S has provided guarantee for bank arrangement with shares in subsidiary with a booked value of DKK 38.5 million (Last year 48.6 million).
BoConcept A/S has some ongoing legal cases which in managements opinion, are unlikely to resolve in any material impact to the company.
BoConcept A/S has provided a surety for Rolling credit Facility of DKK 37.5 million.
BoConcept Holding A/S has provided guarantee for bank arrangement with shares in subsidiary with a booked value of DKK 1.368 million.
BoConcept Holding A/S has provided a joint and several guarantee (or surety) for a bank arrangement in BoConcept A/S.
BoConcept Holding A/S - Annual Report 2022/23 31
Notes
Group
25. Adjustment for non-cash items 2022/23 2021/22
kDKK
kDKK
Depreciation and impairment losses for the year 89,365 84,633
Provisions for re-establishment of leaseholds (698) 1,292
Other adjustments (10,969) (7,502)
77,698 78,423
26. Changes in working capital
Change receivables (15,377) (17,982)
Change inventories 44,800 (44,030)
Change trade payables, etc. (49,980) (24,661)
(20,557) (86,673)
27. Financial risk management
The company's policy for financial risk management
Market risk
Foreign exchange risks
Foreign currencies
Pre-
payment/
maturity
Receivables
Liabilities
other than
provisions
Hedged by
forward
exchange
contracts
Net position
< 1 year 712 (44) 0 668
> 1 year 0 0 0 0
< 1 year 19,214 (1,367) (60,169) (42,322)
> 1 year 0 0 0 0
< 1 year 26,803 (5,736) (54,916) (33,849)
> 1 year 0 0 0 0
< 1 year 103 (44) (7,529) (7,470)
> 1 year 0 0 0 0
< 1 year 52,744 (18,019) (17,367) 17,358
> 1 year 0 0 0 0
< 1 year 77,129 (57,538) 0 19,591
> 1 year 0 0 0 0
< 1 year 127 (25,555) 26,463 1,035
> 1 year 0 0 0 0
< 1 year 513 (23) 0 490
> 1 year 0 0 0 0
177,345 (108,326) (113,518) (44,499)
Sale/purchase of currencies in accordance with agreements 0
Unrealised net loss (113,518)
On account of its operations, investments and financing the BoConcept Holding group is exposed to a number of foreign exchange and interest rate fluctuations.
The management identifies the scope and concentration of risks and puts in place policies for addressing such risks on the basis of an ongoing review of the
business. In addition, the group is subject to credit and liquidity risk. It is the group's policy not to speculate actively in financial risks. The sole
purpose of the group's financial management is therefore to manage or eliminate financial risks associated with the group's operations and financing.
The group's policy for financial risk management is unchanged from last year and appears from management. As a result, the carrying amount of financial
instruments approx. corresponds to the fair value.
In BoConcept Holding's case, market risks associated with financial instruments consist of foreign exchange risks and interest rate risks.
2022/23
PLN
GBP
JPY
SEK
USD
EUR
CNY
Other
BoConcept Holding A/S - Annual Report 2022/23 32
Notes
Group
Foreign currencies
Pre-
payment/
maturity
Receivables
Liabilities
other than
provisions
Hedged by
forward
exchange
contracts
Net position
< 1 year 501 (30) 0 471
> 1 year 0 0 0 0
< 1 year 12,014 (1,228) (47,150) (36,364)
> 1 year 0 0 0 0
< 1 year 28,431 (2,100) (43,891) (17,560)
> 1 year 0 0 0 0
< 1 year 2,483 0 (6,347) (3,864)
> 1 year 0 0 0 0
< 1 year 65,048 (36,704) 13,948 42,292
> 1 year 0 0 0 0
< 1 year 102,877 (75,881) 0 26,996
> 1 year 0 0 0 0
< 1 year (79) (27,467) 12,443 (15,103)
> 1 year 0 0 0 0
< 1 year 513 (2) 0 511
> 1 year 0 0 0 0
211,788 (143,412) (70,997) (2,621)
Sale/purchase of currencies in accordance with agreements 0
Unrealised net loss (70,997)
2022/23 2021/22
USD kDKK kDKK
Equity 868 2,115
Profit for the year 1,736 1,417
GBP
Equity (2,116) (1,818)
Profit for the year 892 539
CNY
Equity 52 (755)
Profit for the year (1,271) (1,377)
JPY
Equity (1,692) (878)
Profit for the year 1,053 1,317
EUR
CNY
Other
99% (last year 98%) of revenue is realised abroad. This figure is not indicative of the foreign exchange risk since, under the group's purchasing policy, purchasing
and selling currencies are matched whenever possible.
The group has net inflows denominated in EUR, GBP, JPY, SEK and USD, while the major exposure on the outflow side is denominated in CNY.
Foreign exchange risks are managed centrally, and the most important and volatile currencies are hedged by means of foreign exchange contracts and option
contracts with a maximum term of 12 months. Foreign currency translation adjustments of investments in group enterprises with a functional currency different
from that of the parent company are recognised directly in equity. Associated foreign exchange risks are not hedged since the group takes the view that ongoing
hedging of such long-term investments would not be the best policy based on an overall evaluation of the risks and costs involved.
The isolated effects of a 5% increase in the foreign exchange rate at 30 April vis-a-vis DKK by translation of assets and obligations may be broken down as follows:
2021/22
PLN
GBP
JPY
SEK
USD
BoConcept Holding A/S - Annual Report 2022/23 33
Notes
Group
2022/23 2021/22
kDKK
kDKK
USD EBIT effect (4,023) (1,355)
JPY EBIT effect 6,231 5,991
GBP EBIT effect 2,334 (2,463)
CNY EBIT effect 4,811 3,767
Interest rate risk
Analysis of sensitivity to interest rate risks
2022/23 2021/22
kDKK
kDKK
Equity (10,386) (4,185)
Loss for the year (16,295) (7,648)
Capital management
Credit risks
2022/23
2021/22
kDKK
kDKK
The maxium credit risk without taking into account security provided for trade receivables 155,836 150,007
The maximum credit risk associated with bank deposit, securities and derivative financial instruments 174,745 117,504
34,630 24,527
365,211 292,038
The below table states the EBIT effect of 5% foreign exchange increase compared with the average exchange rate realised per financial year.
Particulars of the currencies having the greatest impact on the equity and profit for the year have been provided above. The above analysis is based on the
assumption that all other variables, especially the interest rate, remain constant. The expectations are based on current market data. A corresponding drop in the
exchange rates of the above currencies would have the same effect in reverse on the equity and profit/loss for the year.
The groups's interest rate risk is related to interest rate fluctuations that may affect the group's cash flows related to interest receivable and interest payable as well as
the fair value of financial instruments.
BoConcept Holding A/S expects the level of interest rates in Denmark to be affected by the interest rates in the euro-zone and in the USA. Based on analyses in euro-
zone and in the USA, BoConcept expects the level of interest rates to change by up to 1 percentage point either way. A rise in the level of interest rate of 2
percentage point (2021/22: 1 percentage point) would have the effect outlined below of the equity and loss for the year:
Most of the debt to mortgage credit institutions and other bank loans takes the form of contracts carrying variable rates of interest, this year as well as last year. We
have concluded an interest rate swap agreement with a total term of 2½ years and an interest rate cap of 2.5%, covering approximately 58% of our total debt to
mortgage credit institutions and banks. The weighted effective rate of interest measured at the balance sheet date was 3.8%.
The market value of the interest rate swap agreement is negative before tax DKK 5.9 million. (last year a negative value of DKK 0.2 million).
We wish to maintain a strong and efficient balance sheet and to strike an optimal balance between reinvesting capital back into our business and returning surplus
funds to our shareholder.
BoConcept A/S (the Group’s parent) is an operating company. BoConcept A/S have a number of revenue generating operations of its own spread across a number of
different markets.
Financial income and expenses, net decreased to DKK -48,7 millions (2021/22: -15.7 million). Strong focus on net working capital continued, along with favourable
currency movements.
The group's credit risk is primarily associated with receivables and bank deposits as well as derivative financial instruments.
Credit risks related to bank deposits are hedged by placing bank deposits in systemic banks. Credit risk associated with receivables arise when BoConcept Holding
A/S and subsidiaries make sales that are not prepaid. By far the majority of receivables are payable by franchisees who have submitted opening budgets in advance.
65% of BoConcept's customers had not defaulted on the due dates at 30 April 2023 (2021/22: 82%). 92% of BoConcept's customers have been paying their debts
within 30 days of the due date. Receivables that are more than 90 days overdue have been provided for in full.
The maximum credit risk associated with other receivables
BoConcept Holding A/S - Annual Report 2022/23 34
Notes
Group
Liquidity risk
Nominal
value
Fair value
Less than 1
year
Between 1
and 5 years
More than 5
years
Total
kDKK kDKK kDKK kDKK kDKK kDKK
Amounts owed to mortgage credit institutions 11,921 11,921 2,947 8,974 0 11,921
Amounts owed to credit institutions 763,896 763,896 73,896 690,000 0 763,896
775,817 775,817 76,843 698,974 0 775,817
Leasing 96,679 96,679 40,451 55,595 633 96,679
154,063 154,063 154,063 0 0 154,063
0 0 31,843 1,028 4,396 37,267
Other payables
125,502 125,502 125,502 0 0 125,502
376,244 376,244 351,859 56,623 5,029 413,511
1,152,061 1,152,061 428,702 755,597 5,029 1,189,328
Other financial assets 24,256 24,256 0 24,256 0 24,256
Trade receivables 155,836 155,836 155,836 0 0 155,836
Other receivables
34,631 34,631 34,631 0 0 34,631
Cash 174,745 174,745 174,745 0 0 174,745
389,468 389,468 365,212 24,256 0 389,468
Derivative financial instruments
Forward exchange contracts 0 0 113,518 0 0 113,518
0 0 113,518 0 0 113,518
389,468 389,468 478,730 24,256 0 502,986
2022/23
Measured at amortised cost (loans and
other commitments)
Total financial liabilities
Measured at amortised cost (deposits
and receivables)
Total financial assets
Trade payables including intercompany
Lease guarantees and guarantees provided
for franchisees (contingent liabilities)
The liquidity risk means the risk that BoConcept Holding group may not be able to fulfil its obligations as a result of a failure to realise assets or obtain adequate
financing. The company ensures to maintain the best possible liquidity in order that it can continue to fulfil its financial commitments, under normal as well
extraordinary circumstances. Sufficient cash resources are maintained to fulfil expected operational and financial obligations as well as bearing unforeseeable
operating costs. The BoConcept loan facilities are based on fulfilling the conditions of the bank covenant. The Group 23/24 budget shows that a breach of the bank
covenant is not expected.
Unutilised credit facilities for BoConcept Holding A/S and BoConcept A/S amounted to DKK 116.3 million at the end of the financial year compared to DKK 149.9
million the year before. Cash amounted to DKK 174.7 million compared to DKK 117.5 million last year.
Below is a time table cash flows associated with financial liabilities and hedging instruments:
BoConcept Holding A/S - Annual Report 2022/23 35
Notes
Group
Nominal
value
Fair value
Less than 1
year
Between 1
and 5 years
More than 5
years
Total
kDKK kDKK kDKK kDKK kDKK kDKK
Amounts owed to mortgage credit institutions 14,760 14,760 2,934 11,826 0 14,760
750,000 750,000 20,000 205,000 525,000 750,000
764,760 764,760 22,934 216,826 525,000 764,760
Leasing 91,548 91,548 39,283 50,267 1,998 91,548
196,536 196,536 196,536 0 0 196,536
0 0 30,487 2,625 4,496 37,608
Other payables
132,680 132,680 132,680 0 0 132,680
420,764 420,764 398,986 52,892 6,494 458,372
Total financial liabilities
1,185,524 1,185,524 421,920 269,718 531,494 1,223,132
Other financial assets 26,131 26,131 0 26,131 0 26,131
Trade receivables including intercompany 150,007 150,007 150,007 0 0 150,007
Other receivables
24,527 24,527 24,527 0 0 24,527
Cash 117,504 117,504 117,504 0 0 117,504
Total 318,169 318,169 292,038 26,131 0 318,169
Derivative financial instruments
Forward exchange contracts 0 0 70,997 0 0 70,997
0 0 70,997 0 0 70,997
318,169 318,169 363,035 26,131 0 389,166
Measured at amortised cost (deposits
and receivables)
Total financial assets
Cash flows for both the hedged assets and hedged liabilities as well as the hedging instruments are recognised in the income statement for the same period.
In the balance sheet, the value of derivative financial instruments is included in other receivables and other payables, respectively.
Generally, the fair value of financial liabilities and financial assets is determined in accordance with discounted cash flow models at the market rate of interest and
subjects to the credit terms prevailing at the balance sheet date.
Financial instruments measured at fair value are categorised into the following levels of the fair value hierarchy:
Level 1: Observable market prices for identical instruments.
Level 2: Valuation techniques primarily based on observable prices or traded prices for comparable instruments.
Level 3: Valuation that are not based on observable market data.
The fair value of BoConcept Holding Group's forward exchange contracts of other derivative instruments (commodity instruments) and debt to mortgage debt
institutions is measured according to level 2 as the fair value can be established directly based on exchange rates published and forward interest rates specified at the
balance sheet date.
2021/22
Measured at amortised cost (loans and
other commitments)
Amounts owed to credit institutions
Trade payables including intercompany
Lease guarantees and guarantees provided
for franchisees (contingent liabilities)
BoConcept Holding A/S - Annual Report 2022/23 36
Notes
Group
28. Transactions with related parties
BoConcept Holding A/S Group's related parties with significant influence include the shareholder (Layout Holdco A/S) of the company, the Board of Directors, the
executive board and executives as well as the said persons' family members. Related parties also include companies in which the above mentioned group of persons
have considerable interests.
Furthermore, the related parties include group enterprises in which BoConcept Holding A/S has control or significant influence, cf. listing of subsidiaries on page
45.
Transactions conducted with the executive board only include normal management remuneration, cf. note 4.
BoConcept Holding A/S - Annual Report 2022/23 37
Statement of Profit and Loss
Parent Company
2022/23 2021/22
Note kDKK kDKK
Contribution Margin
0 0
Employee related expenses
2
(23,613) (21,144)
IT and Consultancy expenses
(2,115) (17,537)
Others 3
34,800 29,675
Operating profit before depreciations and profit from Group enterprises
9,072 (9,006)
Profit from group enterprises 4
97,967 147,504
Profit/loss from operating activities (EBIT)
107,039 138,498
Financial expenses 5
(41,539) (14,013)
Profit/loss before tax
65,500 124,485
Tax on profit/loss for the year 6
640 (1,687)
Profit/loss for the year
66,140 122,798
Profit/loss for the year is attributable to:
Shareholder of BoConcept Holding A/S 66,140 122,798
Statement of comprehensive income
2022/23 2021/22
kDKK kDKK
Profit/loss for for the year 66,140 122,798
Revaluation of hedging instruments before tax 5,898 0
Tax of hedging instruments (1,298) 0
Equity movements in subsidiaries
(10,462) 2,537
Total comprehensive income for the year 60,279 125,335
Broken down as follows:
Shareholder of BoConcept Holding A/S 60,279 125,335
BoConcept Holding A/S - Annual Report 2022/23 38
Balance Sheet
Parent Company
30.04.2023 30.04.2022
kDKK kDKK
Investment in group enterprises
4 1,337,920 1,310,413
Deposits
57 57
Total other non-current assets
1,337,977 1,310,470
Total non-current assets
1,337,977 1,310,470
Other receivables
7 7,585 1,728
Cash and cash equivalents
4,981 452
Total current assets
12,566 2,180
Total assets
1,350,543 1,312,649
Share capital
9 1,000 1,000
Retained earnings
604,782 549,104
Reserve for net revaluation under the equity method
0 0
Hedging reserve
4,600 0
Equity share, BoConcept Holding A/S shareholder
610,383 550,104
Total equity
610,383 550,104
Deferred tax
10 369 367
Mortgage credit institutions and banks
11 675,068 711,717
Total non-current liabilities
675,437 712,084
Mortgage credit institutions and banks
11 40,000 20,000
Payables, group enterprises
17,125 16,058
Income tax payables
8 656 139
Other payables
6,942 14,264
Total current liabilities
64,723 50,461
Total liabilities
740,160 762,545
Total equity and liabilities
1,350,543 1,312,649
BoConcept Holding A/S - Annual Report 2022/23 39
Statement of Changes in Equity
Parent Company
Share capital Hedging reserve
Retained
earnings
Reserve for net
revaluation under
the equity method
Total
kDKK
kDKK kDKK kDKK kDKK
Equity at 30.04.2021
1,000 0 1,112,843 59,424 1,173,267
Distribution of extraordinary dividend
0 0 (748,498) 0 (748,498)
Profit/loss for the year
0 0 122,798 0 122,798
Equity movements in subsidiaries
0 0 2,537 0 2,537
Transfer from reserve for net revaluation
0 0 59,424 (59,424) 0
Equity at 30.04.2022
1,000 0 549,104 0 550,104
Profit/loss for the year
0 0 66,140 0 66,140
Equity movements in subsidiaries
0 0 (10,462) 0 (10,462)
Revaluation of hedging instruments
0 5,898 0 0 5,898
Tax of hedging instruments
0 (1,298) 0 0 (1,298)
Equity at 30.04.2023
1,000 4,600 604,782 0 610,383
BoConcept Holding A/S - Annual Report 2022/23 40
Notes
Parent Company
1. Accounting policies
2. Staff
3. Others
4. Investment in group enterprises
5. Financial expenses
6. Tax on profit/loss for the year
7. Other receivables
8. Income taxes
9. Share capital
10. Deferred tax
11. Amounts owed to credit institutions
12. Transactions with related parties
13. Subsidiaries
BoConcept Holding A/S - Annual Report 2022/23 41
Notes
Parent Company
1. Accounting policies
Investment, group enterprises
2. Staff
Staff Costs
2022/23
2021/22
kDKK kDKK
Wages and salaries (21,856) (19,958)
Pensions (1,261) (737)
Other staff costs (496) (449)
(23,613) (21,144)
Average number of employees 6 5
Key Management Compensation (Executive management team*):
Wages and salaries
(3,070) (2,873)
Short-term incentive plan (Bonus) (2,898) (1,596)
Pensions (398) (269)
(6,366) (4,738)
The parent company financial statements for the period 1 May 2022 to 30 April 2023 have been prepared in accordance with International Financial
Reporting Standards as adopted by the EU. Further, the annual report has been prepared in accordance with the additional Danish disclosure requirements for
annual reports.
The accounting policies as described below have been applied consistently over the financial year.
The annual report is presented in DKK 000, which is the functional and presentation currency of the company.
For accounting policies besides "Investment, group enterprises" please refer to accounting policies for the group financial statements.
The proportionate share of profit or loss from subsidiaries after tax after elimination of the proportionate share of intra-group gains and loss is recognised in
the income statement.
Investment in subsidiaries are, at first recognition, measured at cost and subsequently at the proportionate share of the companies’ net assets calculated in
accordance with the parent company’s accounting policies with deduction or addition of the proportionate share of unrealised intra-group gains and losses
calculated to the acquisition method.
Investments in entities with negative net assets are recognised at DKK nil, and receivables and loans from the entities, if any, are written down corresponding
to the parent company’s share of the negative assets to the extend the amount is deemed irrecoverable. In case the negative accounting value of the net assets
exceeds the receivable amounts the remaining amount is recognised as liability in case the parent company has a judicial or actual obligation to cover the
negative balance.
The net revaluation of the investment in subsidiaries are transferred to the designated reserve under equity in case the carrying amount exceeds the
acquisitions price. Recently acquired or established companies are recognised in the financial statement from the date of the acquisition. Sold or liquidated
companies are likewise recognised until the date of the sale or liquidation
*The Executive Management team had 6 members at the end of the financial year 2022/2023 (5 members in 2021/22). Remuneration of the Executive Board
and Board of Directors was kDKK 2.405 in 2022/23 (2021/22: kDKK 2.300).
BoConcept Holding A/S - Annual Report 2022/23 42
Notes
Parent Company
3. Others 2022/23 2021/22
kDKK kDKK
Management fee 34,800 32,400
Other
0 (2,725)
34,800 29,675
4. Investment in group enterprises
Cost, beg.year 1,452,958 1,452,958
Cost, year-end 1,452,958 1,452,958
Value adjustments:
Revaluations at the beginning of the year (142,545) 59,424
Profit/loss for the year 110,852 160,389
Dividend from group enterprises (60,000) (352,010)
Income recognition of added values (12,884) (12,885)
Equity movements in group enterprises (10,461) 2,538
Value adjustments at year-end (115,038) (142,545)
Booked value at the end of the year 1,337,920 1,310,413
Ownership
share
Share capital
BoConcept A/S 100% 2,000
5. Financial expenses
Financial expenses, group enterprises 0 (1,463)
Other interest expenses (38,184) (9,625)
Non-deductible fees (3,355) (2,925)
(41,539) (14,013)
6. Tax on profit/loss for the year
Tax on profit for the year
640 (1,687)
640 (1,687)
Tax on profit/loss for the year may be subdivided as follows:
Current tax 642 (139)
Deferred tax (2) 0
Adjustment of tax related to previous years
0 (1,548)
640 (1,687)
The shares of BoConcept A/S have been pledged for security for engagement with a bank. For a description of security, please see the consolidated accounts.
Layout Holdco A/S is the parent company of BoConcept Holding A/S which is the parent company of BoConcept A/S.
BoConcept Holding A/S - Annual Report 2022/23 43
Notes
Parent Company
2022/23 2021/22
kDKK
kDKK
Tax on profit/loss for the year may be explanied as follows:
Calculated 22% tax on profit/loss for the year before tax 14,410 27,387
The tax effect of:
Non-taxable income and non-deductible costs
(15,050) (27,248)
Adjustment of tax related to previous years
0 1,548
(640) 1,687
Effective tax rate
1% -1%
7. Other receivables
Prepayments 7,585 1,728
Total other receivables 7,585 1,728
8. Income taxes
Income taxes receivable, beg. of the year (139) 972
Adjustment of tax related to previous years 0 (1,548)
Tax settled 139 576
Current tax for the year (656) (139)
(656) (139)
9. Share capital
The share capital comprise:
Number of
shares
Nominal
value
(TDKK)
A shares 1,000 1,000
10. Deferred tax
2022/23 2021/22
kDKK kDKK
Deferred tax, beg.year (367) (367)
Deferred tax for the year (2) 0
Deferred tax, year-end (369) (367)
Deferred tax is recongnised in the the balance sheet as follows:
Deferred tax (asset) 0 0
Deferred tax (liability) (369) (367)
Net deferred tax, year-end (369) (367)
Deferred tax relates to:
Intangible assets 0 0
Tangible assets 0 0
Current assets (369) (367)
Current liabilities 0 0
(369) (367)
Layout Holdco A/S is the administrator of the joint taxation scheme, and in the capacity, it settles all payments of income tax with the tax authorities.
BoConcept Holding A/S - Annual Report 2022/23 44
Notes
Parent Company
2022/23 2021/22
11. Amounts owed to credit institutions
kDKK kDKK
Credit institutions/leasing debt
After 5 years 0 525,000
Between 1 and 5 years 690,000 205,000
690,000 730,000
Witin 1 year 40,000 20,000
Other short-term debt 0 0
40,000 20,000
Amortised loan costs
(14,932) (18,283)
12. Transactions with related parties
2022/23 2021/22
kDKK
kDKK
Management fee
34,800 32,400
13. Subsidiaries
Company name
Owner share
BoConcept A/S
100%
BoConcept Germany GmbH
100%
BoConcept France Sarl
100%
BoConcept Beaugrenelle Sarl
100%
BoConcept North America Inc.
100%
BoConcept USA Inc.
100%
BoConcept Franchise Inc.
100%
BoConcept Madison Inc.
100%
BoConcept Westchester NY, LLC.
100%
BoConcept Japan KK
100%
BC Design Holding Ltd.
100%
BoConcept Furniture Trading Co Ltd.
100%
BoConcept Retail China Ltd
100%
BC Commercial A/S
100%
Non-active companies
BoConcept Hong Kong Ltd 100%
Kansas, USA
New York, USA
Ølgod, Denmark
Tokyo, Japan
New York, USA
Hong Kong, Hong Kong
BoConcept Holding A/S' related parties with significant influence include the shareholder (Layout Holdco A/S) of the company, Board of Directors, the
executive board and executives as well as the said persons' family members. Related parties also include companies in which the above mentioned group of
persons have considerable interests. There have been no transactions with the shareholder besides normal business procedure.
Furthermore, the related parties include group enterprises in which BoConcept Holding A/S has control or significant influence, cf. list of subsidiaries in note
13.
Transactions conducted with the executive board only include normal management remuneration, cf. note 2 as well as the transactions shown below.
Transactions conducted with other executives include normal remuneration, cf. note 4 in the consolidated accounts.
Domicile
Ølgod, Denmark
Düsseldorf, Germany
Hong Kong, Hong Kong
Shanghai, China
Paris, France
Paris, France
Shanghai, China
Kansas, USA
Delaware, USA
BoConcept Holding A/S - Annual Report 2022/23 45