CVR No
41 10 05 16
Chairman
Anders Svanholm Rosenbeck
The Annual Report was presented and adopted at the Annual General
Meeting of the Company on: 26 April 2024
-
31 December 2023
Care DK BidCo ApS
Annual report for
1 January 2023
c/o Collectia A/S Abildager 11, 2605 Brøndby
Contents
Page
Company Information 3
Key figures 4
Management's Review 5
Management's Statement 14
Independent Auditor's Report on the Financial Statements 15
Group
Consolidated statement of profit and loss 18
Consolidated statement of comprehensive income 19
Consolidated balance sheet 20
Consolidated cash flow statements 22
Consolidated statement of changes in equity 23
Notes 24
Parent
Profit and loss 58
Balance sheet 59
Statement of changes in equity 61
Notes 62
Company Information
Company
Care DK BidCo ApS
Abildager 11
2605 Brøndby
Central Business Registration No 41 10 05 16
Registered in Brøndby
Financial period: 1 January 2023 - 31 December 2023
Executive Board
Anders Svanholm Rosenbeck
Daniel Bremann Itzhaki
Jesper Gunni Winther
Martin Høy
Board of Directors
Erik Forsberg
Gareth Ridgwell Whiley
Anders Svanholm Rosenbeck
Jesper Gunni Winther
Martin Høy
Daniel Bremann Itzhaki
Auditors
PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab
Statsautoriseret Revisionspartnerselskab
Strandvejen 44
DK-2900 Hellerup
Cvr nr. 33 77 12 31
3
Key figures
1 January to 31
December
2023
1 January to 31
December
2022
1 January to
31 December
2021
22 January to
31 December
2020
TDKK TDKK TDKK TDKK
Financial highlights
Profit and loss accounts
Revenue
345.258
186.116
Gross profit
106.018
82.014
73.858
Operating profit
46.676
48.051
29.451
35.293
Net financials
(84.155)
(61.256)
(36.389)
(36.687)
Loss for the year
(34.870)
(7.318)
(12.068)
(36.074)
Balance sheet
Total assets
1.405.780
1.494.175
1.485.007
1.306.855
Total equity
528.726
536.516
Cash flows
Net cash flow from operating activities
30.901
82.086
45.609
43.022
Net cash flow from investing activities
(58.644)
(118.337)
(239.648)
(929.866)
Cash flow from financing activities
15.952
25.313
1.006.840
Empolyees
Average number of employees
285
270
231
174
Key Ratios
Gross margin (%)
31%
31%
30%
40%
Operating profit (%)
14%
14%
11%
19%
Return on equity (%)
-7%
-1%
-2%
-7%
Equity ratio (%)
38%
35%
37%
41%
4
Management's Review
Key activities
Collectia Group is a leading tech-enabled provider of credit management services. Collectia Group is one of the
industry leading players in Denmark and offers services in outsourcing of debt management, debt collection and
debt purchase. The business model is based on a superior proprietary IT-platform which to a large extent has
been developed internally capitalising on the extensive knowledge and experience which has been build up over
many years of operation in the industry. The IT-platform optimises and automates the collection process through
handling and analysis of data, which through applying AI, can be tailored to approach the specific customer in the
most efficient and optimal manner. The Group has for years invested heavily in structuring data, developing
business intelligence and innovative and digital payment solutions as it is management’s belief that automation,
optimisation and AI are cornerstones in being successful in this industry and continuous investments in the
proprietary IT-platform are necessary to maintain an edge over the competitors for the benefit of the Group’s
customers.
Today, Collectia Group services approximately 22,000 corporate customers groupwide, including several of
Denmark's largest businesses within the fields of telecom, insurance, utility, media, parking, fitness and banking
which makes it one of Denmark's largest debt collection companies, with local presence in Norway, Sweden,
Germany and Finland.
The Group has more than 150 years of experience in the industry and it is the distinct aim of the Group to provide
a professional, ethical and high quality treatment of the customers' collection cases. Collectia Group works in
accordance with its four core values; respectful, passionate, innovative and transparent. These values define
what Collectia Group is about and how the employees should act towards our customers and customers.
Specialties
Invoicing, debt & credit management, reminder service, debt collection, legal collection, consulting, billing service,
factoring, credit scoring and IT services.
Development during the year
The income statement of the Group for 2023 shows a loss of TDKK 34,870 and at 31 December 2023 the
balance sheet of the Group shows equity of TDKK 528.726.
The Group was in early 2020 acquired by new owners when the UK based PE-fund Silverfleet Capital invested in
Collectia Group together with the Management team and employees of the Group. The acquisition also marked
the introduction of a new growth strategy which will leverage organic growth through the cutting edge AI-enabled
platform and also include acquisitions of companies in the Nordic region.
Manatement's Review
The Group has in 2023 continued to execute on the strategy which was laid out in 2020. Upon a number of
acquisitions in 2021, an integration focus in 2022, the Group has focused on implementing C-Work (proprietary IT-
platform) on Norway and Germany and continued to optimise operations in Denmark and Sweden.
While the Group still intends to take part in the consolidation of the collection market in the Nordics, the level of
acquisitions is also dependent on whether target companies, which fits the requirements of Collectia Group, can
be identified. Before making such investment, it is key that the right synergy potential is present along with a
variety of other requirements and in 2023 it was not possible to close any add-on acquisitions which fulfilled all the
requirements. However; Collectia Group maintains its appetite for further add-on acquisitions and has sufficient
financial resources to carry out the strategy.
5
Management's Review
Another important part of the strategy is to migrate the superior proprietary IT-platform (C-Work) beyond the
Danish operations. In 2021 Collectia Group succeeded in migrating the IT system to Sweden and the
effectiveness and efficiency of the IT-platform has positively impacted the business by being considerably faster
and more efficient in collecting debt which is to the benefit of our customers who will receive not only faster
payments, but also a higher collection rate.
In late 2022, the IT-platform has also been deployed in the Group’s Norwegian operations and Collectia’s
Norwegian customers are therefore now also experiencing the positive effects from C-Work. The Group has in
2023 focused on fully implementing C-Work, but in the latter part of the year, the group has focused increasingly
on optimising the system to enable the best possible profitability.
As expected, the now completed implementation of C-Work in all of Scandinavia, including Finland, has become a
competitive advantage as Collectia Group is likely the only collection agency where the customers can monitor
performance from all countries in one single system, seamlessly changing from one country to another. The
customers highly appreciate that reporting and handling of the cases are similar throughout the group, which
provides unparalleled transparency.
In 2023 the Group has turned its attention to implementing C-Work in Germany which is expected to be completed
during 2024. Upon completion of this implementation, all countries in Collectia Group operate on the same
efficient IT-platform.
In line with its strategy of becoming a pure tech-enabled service business, the Group has de-prioritised the debt
purchase operations in 2023, implementing a strict requirements for acquiring debt portfolios and has become
significantly selective in terms of acquisition of portfolios.
The past year and follow-up on development expectations from last year
Management considers the result achieved to be satisfactory. The increase in revenue from TDKK 342,911 to
TDKK 345,258 was driven by more service revenue whereas the portfolio revenue was slightly reduced due to
fewer portfolios being acquired. The Danish service business was the main driver of the increase in revenue and
while Germany was relatively flat, both Norway and Sweden suffered from foreign exchange headwind during
FY23. This had a significant impact on revenue and earnings during the year.
Management has also continued to invest in IT personnel to ensure the continued development and superiority of
the proprietary IT system.
Special risks - operating risks and financial risks
Operational risks
Management regularly considers to which degree the Group is subject to operational risks and acts accordingly,
implementing necessary measures and policies.
Management views IT security, Information security (GDPR) and reputational risk to be areas where the group
could be exposed. However, through a combination of awareness, policies and actions, Management believes
that operational disruption would be limited and of a short term nature. During the financial year, however, the
Group has invested in IT security in particular and believes that such pre-emptive measures are the best strategy
to avoid operational disruption. Please also refer to the Data Ethics section of this report.
Foreign exchange risks
Collectia operates in four currencies, EUR, DKK, SEK, and NOK. DKK is tied to the EUR through an official
monetary collaboration, which means that there is little exchange risk as long as this collaboration continues. The
SEK and NOK currencies are a bit more volatile, however the Group's operations in Norway and Sweden are still
limited and the local presence also provides a high degree of natural hedging through a balanced cost structure.
6
Management's Review
Liquidity risks
The Group is dependent on having access to loan credits from banks, however the financing package rests on a
longer term relationship with various banks and financing institutions and the operational cash generation is
positive month on month. Further funding is only needed when making business-expanding investments and the
senior facility agreement in place provides access to such funding on agreed terms. Consequently, management
believes that the liquidity risks associated with general operations are low.
The senior debt package is subject to certain loan covenants which the Group is required to comply with.The
group prepares specific covenant reporting to the financing banks on a quarterly basis and maintains a covenant
forecast model which enables Management to preserve sufficient headroom to the threshold of such covenants.
The Group has throughout financial year FY23 complied with all covenants and demonstrated considerable
headroom and this has continued after the end of the financial year. Based on forecasts, it is Management’s
expectation that the considerable headroom will be expanded going forward.
Portfolio investment risk
The Group has acquired debt portfolios which in essence are past-due consumer receivables which are acquired
at prices significantly below nominal value. The associated risk is that the ability to collect is overestimated at the
time of acquisition. However, the Group has a long track record of buying and successfully managing owned
portfolios in Denmark and has developed models to assist in the valuation of such opportunities. All opportunities
are thoroughly analysed before being presented to the board prior to submitting an offer. Portfolios have only been
acquired in Denmark. Note that the Group has scaled down the acquisition of portfolios and currently, no contracts
have been entered into for FY24, hence the investment risk is considerably lower than in prior years.
Targets and expectations for the year ahead
Collectia is well positioned and expects to continue the organic growth and earnings seen before the Corona
pandemic. The expectation is that the group will take market share based on continued very positive feedback
from the market (measured using NPS surveys) combined with an improved proprietary IT-platform which enables
the Group to perform more efficiently than its peers. Through the combination of high customer satisfaction; the
sales pipeline; our automated, digitalized solutions; and our very passionate employees, we expect to grow in
FY24.
Given that all add-on acquisitions have been fully integrated and no acquisition of portfolios are planned, the
growth target for FY24 is 1-6%. The increase is a combination of an expected reduced revenue from owned
portfolios and an organic growth from the service business. Given that Collectia group does not expect to acquire
more portfolios in FY24, portfolio revenue will naturally be reduced. This is expected to be set-off by growth in the
service business which to some degree is expected to come from the ability to service Scandinavian cross border
customers as Collectia Group’s joint Nordic IT-platform resonates well with this segment. Earnings before
depreciation and amortization margin percentage is expected to range between 33-40% of total revenue.
7
Management's Review
Statutory CSR report
Collectia Group is a leading technology company specializing in credit management services. The Group is
seeking to take a different approach in the industry, which is reflected in its work with digital payment solutions, big
data and artificial intelligence, which helps to streamline and speed up the collection of our customers' unpaid bills.
The business model involves a much larger use of automated workflows than at other collection companies.
Consequently the Group requires considerably fewer operational employees, but invests heavily in IT
development in order to support the continued development of new features and optimization in the proprietary
collection system.
The offering includes a full-service debt collection solution. This means that Collectia Group offers handling of all
types of services in connection with sales invoices / debtor administration, such as invoice, reminder, debt
collection notice, administration of payment agreements, debt collection service, as well as legal processing.
ESG Strategy
The board of directors guides and governs the overall strategy for the Group’s corporate sustainability and
maintains general oversight of the Group’s work within the ESG sphere. The Executive Management is
responsible for ensuring that the ESG strategy is implemented accordingly. The strategy has been refocused in
FY23 with three overall focus areas:
•Treating debtors fairly: Ensure compliance, reasonable payment terms, employee learning and development,
Increase financial literacy
•Investing in our people: Diversity & inclusion, employee learning & development, employee wellbeing, attracting
and retaining talent
•Industry leading compliance: The Group Objective is to ensure that compliance controls and processes are
consistent across the Group. As compliance is a great concern for all businesses – and especially in our industry,
we believe that it is of great importance that we continue to improve and are up-to-date on our GDPR and general
compliance.
In order to be able to prioritized actions related to the focus areas the Group has prepared a materiality analysis
which forms the background of all ESG efforts:
A number of prioritized actions have been planned for FY24 based on the above materiality analysis. In total
fifteen specific actions have been planned for FY24: four are related to People; two are related to Governance;
two are related to Debtors and Customers; and four are related to Environmental Management.
8
Management's Review
The Group is a knowledge-intensive organization and its staff are considered the most important resource and
form as such an important part of the ESG policy. The Group wants to be an attractive place to work in order to
attract and maintain qualified and dedicated employees who are willing to act in accordance with the values of
Collectia Group.
The Group carries out regular measurements of employee satisfaction and historically these show employee
satisfaction above the industry benchmark. The Group will continue to carry out measurements of the working
environment and employee satisfaction to ensure the employees' wellbeing. The employee surveys review seven
factors plus an overall Job Satisfaction factor. The 7 factors are: Colleagues, Achievements, Purpose, Leadership,
Influence, Mastery and Balance. Furthermore, we add our own diversity, equity and inclusion-related questions
plus an eNPS. There are no targets for improvement, but the results are measured against the companies’ peer
group and as such, actions are taken at department level if the results are considerably below the peer group.
The surveys are currently being analyzed and used to determine any areas for improvement.
Human Rights
The Group supports the protection of fundamental human rights in all aspects of the operations and seeks to
promote respect for these principles by others where it has an influence, particularly our employees, and all other
entities and individuals with whom it has a business relationship.
The Group has in FY23 introduced all employees to a Code of Conduct awareness training. The Group adopted a
Code of Conduct for Employee Rights by the end of 2022 and the objective is to ensure and promote a sound
business culture in Collectia Group. It is about taking responsibility and ensuring a positive impact on our
business, society, the environment, debtors, customers, employees and investors. We will continue with the Code
of Conduct training in 2024.
Among other things, the Code of Conduct includes elimination of discrimination with respect to employment based
on age, gender, religion, or race. The Group has not measured the effect of the implementation of the Code of
Conduct.
External environment
The Group aspires to be the most environmentally friendly digital debt collection company. The Group intends to
do this by leading the way with sustainable projects, reducing our CO2 emissions and promoting a green mindset
among our stakeholders. Therefore, we have launched the project 'A Greener Collectia' to help realize our goals.
The project seeks to reduce food waste, implement electric company cars only, seek to travel less between
offices, use green suppliers only and reduce the Group’s carbon footprint across all offices. It should, however, be
noted that due to the nature of the business, Collectia Group already has a very low impact on the external
environment and has sought to reduce its carbon footprint further by installing solar cells on the office building roof
in Denmark. In 2023 our solar cells gave us kWh 20.903,39. Collectia Group has also significantly reduced the
use of paper through the investments made in the IT-platform.
In 2022 Collectia Group started measuring the Group’s carbon footprint and has set targets for reducing the
carbon footprint in 2023. The preliminary numbers for carbon footprint in FY23 were:
9
Management's Review
Which environmental risks do we face, and how can we proactively prevent them?
In Germany we have a potential risk for flooding. Fortunately, all employees can work remotely, so we will still be
able to operate.
Vendor risks
Due to our dependence of mail-delivery, we should expect to be affected if flooding occurs. In that case delays are
anticipated, though the impact will be limited because of our high focus on digitalizing our communication
methods.
Customers, sales strategy
In case of flooding less cars will be in the need of parking and therefore, we assume that there will be less cases
regarding parking fees to handle.
We have several customers that are highly aware of keeping up with the green transitioning, e.g., Green Mobility.
We are foreseeing more business coming our way from these types of customers. At the same time petrol stations
increasingly focus on charging points for electrical vehicles.
The utility industry is in rapid development transitioning to sustainable energy. We see great potential in becoming
specialists in this specific industry, hoping to take an even bigger market share than we already have.
Which opportunities has our business looking into the climate changing?
Already at this point, we are taking several initiatives to lower our carbon footprint, contributing to minimize climate
change by reducing our utility consumption. Also, we activate employee campaigns with the focus to lessen food
waste and to enhance recycling. These initiatives will continuously be prioritized.
We are working on expanding the HQ business continuity plan to the whole Group.
Investing in People
The Group’s objective is to invest in our people by focusing on Diversity, Equity, Inclusion and Belonging,
employee learning and development, employee wellbeing and attracting and retaining talent. In 2023 we’ve had
multiple prioritized activities supporting this agenda. Among other things a DEI-B calendar was launched, and
surveys was pushed out every month to all the employees. We do this to create a greater sense of security within
the employees and to obtain some concrete tools to strengthen employee wellbeing.
Employee engagement was measured during 2023 by an average of 7 factors measured in the monthly employee
satisfaction surveys. These factors are Colleagues, Achievements, Purpose, Influence, Leadership, Mastery and
Balance.
Result December 2023:
10
Management's Review
Anti-Corruption
The Group's policy related to anti-corruption secures that we act according to high ethical standards and forbids
the participation in any kind of bribery. The policy was adopted and implemented in the early part of 2021.
Risks of corrupt behavior have been identified as likely mainly among own employees. It is the Group's policy that
all new employees are introduced to and trained in the corporate anti-corruption policy. The policy
describes in detail the behavior which is expected by the employees in order to secure that business is carried out
applying decent and honest business practices and above all, by respecting applicable local laws and regulations
in all countries where Collectia Group operates. It is essential to the owners and Management that the Group
carries out its business respecting ethical responsibility, a healthy work environment and human rights.
When acquiring new businesses, Collectia Group seeks to implement its ethics, practices and policies as soon as
possible, however, the Group recognizes that such implementation is a process that takes time in order to make
sure that it is well founded in the acquired entities and that the new Collectia Group employees comply with the
intentions of the Group along with all of their Collectia Group colleagues.
The policy has been prepared in several languages in order to ensure proper anchoring with all employees of the
Group.
The Group is not aware of any events of non-compliance with the policies in 2023 or after the balance sheet date
and until the issuance of this report.
In 2023, we implemented our internal whistleblower channel. At Collectia, we aim for an open and trusting
corporate culture, where everyone can safely and securely bring potential legal violations or any serious concerns
to our attention. All employees have been made aware that such whistleblower channel exists and that reports are
treated in line with the highest standards of confidentiality. We will continue providing our internal whistleblower
channel in 2024 and coming years.
11
Management's Review
Account of the gender composition of Management, cf. §99b
Diversity, equality, and inclusion are high on the agenda at Collectia. In 2021 we changed the name of our HR
department to People & Culture. Focusing on how Collectia has a people-oriented culture, where we invest in
employee engagement and success to remain competitive is now a pillar in the way we conduct business. Also,
we believe that inclusion is the key to unlocking a talent’s full potential.
As per 31 December 2023, the Board of Directors consisted of six men and no women. The Group targets to elect
at least one board member from the underrepresented gender to the Board of Directors no later than during 2025.
For hiring at management level and (all other positions in the Group), the Group targets to have representatives of
both genders among the top 3 candidates.
In 2023 we’ve hired the underrepresented gender in the second level of management, with the purpose to develop
and perchance a position in the Board of Directors. This is prioritized as a part of building a sustainable successor
plan, and to promote gender equality.
As of 31 December 2023, there is an equal gender distribution in Other Management Levels, with a total of 9
members, whereas 3 are females (33% of the underrepresented gender). It is the policy of Collectia Group to
leverage female mid-level managers to senior level managers as this is entirely possible due to the solid base of
female managers in the Group. Note also, that the senior leadership team has been expanded with one female
senior level manager in 2024 as the management team has been expanded with a Group Compliance Director as
Collectia Group wants to be ahead of the curve when it comes to compliance.
We increase hiring diversity and aim to hire the underrepresented gender if we have candidates of all genders
who are equally qualified for the position. In 2023 we’ve hired one employee of the underrepresented gender in
this level of management.
12
As per 31st of December 2023
Board of Directors
Total number of members 6
Total number of 0%
underrepresented gender in pct.
Target for underrepresented 20%
gender in pct
Year of achieving target 2025
Other Management Levels
Total number of members 9
Total number of underrepresented
gender in pct. 33%
Management's Review
Data Ethics
Collectia Group has implemented a Data Ethics Policy in accordance with Section 99d of the Danish Financial
Statements Act. The Policy supplements the Group’s already existing data protection efforts and reflects
Collectia’s commitment to handling data in a responsible manner based on confidentiality, integrity, and
availability.
The Group’s focus on data ethics is based on the fact that the Group handles large quantities of personal data and
GDPR is therefore very high on the agenda in the Group. Collectia ensures that data is collected for specific and
legitimate purposes and processed in a legal, respectful, and transparent manner, including that the processing
only includes the data that is necessary to fulfil the purpose of the processing. At the same time, Collectia always
ensure that all collected data is relevant, sufficient, and up to date, as well as making sure that personal data is
not stored longer than necessary, that the stored data is protected against unlawful destruction, modification or
publication and that data processing takes place with respect for the individuals' privacy.
The Group also invests heavily in data protection which has become high on the agenda in many companies in
recent years. The Group IT organization has been strengthened with cyber security experts and systems and
controls are in place to prevent the effects of cyber-attacks and monitor irregular data flows continuously.
Furthermore, all staff members receive training focused on correct data handling and general cyber security
awareness when starting employment and ongoing throughout the employment.
The formalized Data Ethics Policy, explains our internal guidelines regarding the work with data ethics, including
how we collect, process, and use data ethically correctly, responsibly, and transparently, and will continuously be
revised and approved by the board of Collectia at least once a year.
Statutory report on Corporate governance
The organization of the Management is, among other things, based on the Danish Companies Act, the Danish
Financial Statements Act and the company's articles of association. The Company has based its corporate
governance efforts on a two-tier system where the Board of Directors and the Executive Management have two
distinct roles. The Executive Management undertakes the operational management of the Company, whereas the
Board of Directors determines the overall company strategy and acts as a sounding board to the Executive
Management of the Company. In addition, Executive Management is continuously monitoring the financial
development as well as developments in the field of corporate governance to ensure that the Group - internally as
well as externally - is managed in a way that is in accordance with applicable laws, to protect the interests of all
stakeholders.
Risk management is considered an essential part of the realisation of the Group’s objectives and strategy. The
daily activities and the implementation of the established strategy involve inherent risks, and the Group's handling
of these risks is therefore seen as a natural and integrated part of the daily work and a way to ensure stable and
reliable growth.
The Board of Directors is appointed by Silverfleet Capital. The Board of Directors consists of six members at the
time of the issuance of this report. Board meetings are held 10 times a year. Additionally, the Chairman Committee
meets with Executive Management on an ongoing basis.
Research and development
Collectia will continue to invest in developing our business especially within IT, big data and AI to support the
ambitious growth plans of the Group.
Intellectual capital resources
We invest in our employees both in a continuous internal and external training and education, and we invest in
attracting new relevant staff.
Subsequent events
No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.
13
Management's Statement
Brøndby, 26. april 2024
Executive Board
Anders Svanholm Rosenbeck Jesper Gunni Winther
Daniel Bremann Itzhaki
Martin Høy
Board of Directors
Erik Forsberg Gareth Ridgwell Whiley
Chairman
Daniel Bremann Itzhaki Anders Svanholm Rosenbeck
Jesper Gunni Winther
Martin Høy
The Board of Directors and the Executive Board have today considered and adopted the Annual Report of
Care DK BidCo ApS for 2023
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a
true and fair view of the financial position at 31 December 2023 of the Group and the Parent Company and
of the results of the Group and Parent Company operations and consolidated cash flows for the financial
year 1 January to 31 December 2023.
We recommend that the Annual Report be adopted at the Annual General Meeting.
The Consolidated Financial Statements have been prepared in accordance with International Financial
Reporting Standards as adopted by the EU and further requirements in the Danish Financial Statements
Act, and the Parent Company Financial Statements have been prepared in accordance with the Danish
Financial Statements Act. Management’s Review has been prepared in accordance with the Danish
Financial Statements Act.
In our opinion, Management’s Review includes a true and fair account of the development in the operations
and financial circumstances of the Group and the Parent Company, of the results for the year and of the
financial position of the Group and the Parent Company.
14
Independent Auditor’s Report
Basis for Opinion
Statement on Management’s Review
We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of
Care DK BidCo ApS for the financial year 1 January to 31 December 2023, which comprise income
statement, balance sheet, statement of changes in equity and notes, including material accounting policy
information, for both the Group and the Parent Company, as well as statement of comprehensive income and
cash flow statement for the Group (“financial statements”).
To the Shareholder of Care DK BidCo ApS
Opinion
Moreover, in our opinion, the Parent Company Financial Statements give a true and fair view of the Parent
Company’s financial position at 31 December 2023 and of the results of the Parent Company’s operations for
the financial year 1 January to 31 December 2023 in accordance with the Danish Financial Statements Act.
In our opinion, the Consolidated Financial Statements give a true and fair view of the Group’s financial
position at 31 December 2023 and of the results of the Group’s operations and cash flows for the financial
year 1 January to 31 December 2023 in accordance with IFRS Accounting Standards as adopted by the EU
and further requirements in the Danish Financial Statements Act.
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional
requirements applicable in Denmark. Our responsibilities under those standards and requirements are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of the Group in accordance with the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Account-ants (IESBA Code) and the additional ethical
requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Management is responsible for Management’s Review.
Our opinion on the financial statements does not cover Management’s Review, and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read Management’s Review
and, in doing so, consider whether Management’s Review is materially inconsistent with the financial
statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether Management’s Review provides the information required
under the Danish Financials Statements Act.
Based on the work we have performed, in our view, Management’s 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 Statement Act. We did not identify any material
misstatement in Management’s Review.
15
Independent Auditor’s Report
Management’s Responsibilities for the Financial Statements
In preparing the financial statements, Management is responsible for assessing the Group’s and the Parent
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting in preparing the financial statements unless Management
either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic
alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in
Denmark, we exercise professional judgment and maintain professional skepticism 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
Group’s and the Parent Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
• Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s and the Parent
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group
and the Parent Company to cease to continue as a going concern.
Auditor’s Responsibilities for the Audit of the Financial Statements
Management is responsible for the preparation of Consolidated 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 the preparation of Parent Company Financial Statements that give a
true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as
Management determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
16
Independent Auditor’s Report
Hellerup, 26. april 2024
CVR No 33 77 12 31
Ulrik Ræbild
Mads Blichfeldt Fjord
State Authorised Public Accountant
State Authorised Public Accountant
mne33262
mne46065
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
• 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.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the Consolidated Financial Statements. We are
responsible for the direction, supervision and performance 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.
Auditor’s Responsibilities for the Audit of the Financial Statements, continued
17
Consolidated statement of profit or loss
Note
1 January to 31
December
2023
1 January to 31
December
2022
TDKK TDKK
Revenue from customer contracts
3
317.145
316.481
Revenue from portfolio investments and other revenue in
accordance with the effective interest method
28.113 30.321
Revaluations of portfolio investments
0
(3.892)
Total Revenues
345.258
342.911
Staff expenses
4, 5
(112.107)
(103.757)
Other external expenses
(127.132)
(132.783)
Earnings before depreciation and amortisation
106.018
106.371
Depreciation and amortisation 6
(59.343) (58.320)
Operating profit before special items
46.676
48.051
Special items
7
0
0
Operating income after special items
46.676
48.051
Financial income
8
7.662
7.993
Financial expenses
9
(91.816)
(69.250)
Loss before tax
(37.479)
(13.205)
Income tax expense
10
2.609
5.887
Loss for the year
(34.870)
(7.318)
Loss is attributable to:
Owners of the parent company
(34.870)
(7.318)
(34.870)
(7.318)
18
Consolidated statement of comprehensive income
1 January to 31
December
2023
1 January to 31
December
2022
TDKK TDKK
Loss for the period
(34.870)
(7.318)
Other comprehensive income
Items that will be subsequently reclassified to profit or loss
Other adjustments
3.745
0
Exchange differences on translation of foreign operations
961
(17.264)
Other comprehensive income for the period, net of tax 4.706 (17.264)
Total comprehensive income for the period (30.164) (24.583)
Total comprehensive income for the period is attributable to:
Owners of the parent company (30.164) (24.583)
(30.164) (24.583)
19
Consolidated balance sheet
Note
31 December
2023
31 December
2022
TDKK TDKK
Goodwill
11
707.953
711.808
Other intangible assets
11
298.259
339.067
Property, plant and equipment
12
4.258
4.458
Right-of-use assets
14
15.787
14.278
Portfolio investments
15
246.018
242.597
Total non-current assets 1.272.276 1.312.208
Trade receivables
16
25.250
34.067
Contract work in progress
17
44.907
43.952
Current tax assets
2.413
2.264
Other receivables
18
20.510
26.381
Prepayments
4.111
10.763
Cash and cash equivalents
36.314
48.104
Total current assets 133.505 165.531
Total assets 1.405.780 1.477.739
20
Consolidated balance sheet
Note
31 December
2023
31 December
2022
TDKK TDKK
Share capital
19
5.720
5.719
Share premium
629.438
592.182
Foreign currency translation reserve
(17.778)
(18.738)
Retained earnings
(88.654)
(57.529)
Capital and reserves attributable to owners
528.726 521.633
Total equity
528.726
521.633
Other provisions
1.700
1.700
Borrowings
20
676.646
702.719
Lease liabilities
14
12.017
13.847
Deferred tax liabilities
13
68.714
80.393
Other payables
4.226
4.089
Total non-current liabilities 763.303 802.748
Borrowings
20
31.320
20.658
Trade payables
8.127
14.461
Lease liabilities
14
3.654
1.877
Income tax payables
4.606
5.861
Other payables
66.045
110.501
Total current liabilities 113.751 153.358
Total liabilities 877.054 956.106
Total equity and liabilities 1.405.780 1.477.739
21
Consolidated cash flow statement
Notes
1 January to 31
December
2023
1 January to 31
December
2022
TDKK TDKK
Operating profit before special items
46.676
48.051
Adjustments
29
72.314
67.907
Changes in net working capital
30
(34.777)
10.400
Special items paid
7
0
0
Payments received on loan portfolio
41.283
25.031
Interests received, bank deposits etc.
7.662
1.512
Interests paid
(91.816)
(61.601)
Income taxes paid
10
(10.440)
(9.214)
Net cash flow from operating activities 30.901 82.086
Purchase and sale of intangible assets
11
(15.292)
(15.458)
Purchase and sale of property, plant and equipment
12
(850)
(1.704)
Purchase of loan portfolios
15
(42.633)
(101.175)
Cash flow from business combinations
130
0
Net cash flow from investing activities (58.644) (118.337)
Repayment of borrowings
25
(38.480)
(26.573)
Raising of borrowings
25
22.700
55.347
Principal elements of lease payments
25
(5.525)
(3.461)
Cash capital increase
37.257
0
Cash flow from financing activities 15.952 25.313
Net cash flow for the year (11.791) (10.938)
Cash and cash equivalents, beginning of the year
48.104
59.042
Cash and cash equivalents at end of the year 36.313 48.104
22
Consolidated statement of changes in equity
Share
capital
Share
premium
Foreign
currency
translation
reserve
Retained
earnings Total
TDKK TDKK TDKK TDKK TDKK
Equity at 1 January 2022
5.719
592.182
-1.474
546.216
Loss for the year
0 0 0 -7.318 -7.318
Other comprehensive income for the period
0 0 -17.264 0 -17.264
Total comprehensive income for the period
0
0
-7.318
Equity at 31 December 2022
5.719 592.182 -18.738 -57.529 521.633
Equity at 1 January 2023
5.719
592.182
521.633
Loss for the year
0
0
0
Other adjustments
0
0
0
3.745
3.745
Other comprehensive income for the period
0
0
961
0
961
Total comprehensive income for the period
0
0
961
Transactions with owners in their capacity as owners
Capital increase
1
37.256
0
0
37.257
Total transactions with owners 1 37.256 0 0 37.257
Equity at 31 December 2023
5.720 629.438 -17.778 -88.654 528.726
23
Notes
1. Accounting policies
2. Critical accounting estimates and judgements
3. Revenue from contracts with customers and other revenue
4. Employee costs
5. Share-based payment plans
6. Depreciation and amortisation
7. Special items
8. Financial income
9. Financial expenses
10. Tax on profit for the year
11. Intangible assets
12. Property, plant and equipment
13. Deferred tax
14. Leases
15. Portfolio investments
17. Contract balances
18. Other receivables
19. Share capital
20. Borrowings
16. Trade receivables
20. Borrowings
21. Financial risk management
22. Capital management
23. Business combinations
24. Commitments and contingent liabilities
25. Changes in liabilities arising from financing activities
26. Related parties
27. Fee to auditors appointed at the general meeting
28. Events after the balance sheet date
29. Cash flow statement - adjustments
30. Cash flow statement - changes in net working capital
31.
List of group companies
24
Notes
1. Accounting policies
General information
Basis of preparation
Basis of consolidation
No standards which are not yet effective have been applied.
The IASB has issued, and the EU has endorsed, a number of new standards, and updated some existing
standards, the majority of which are effective for accounting periods beginning on January 1, 2022 or later.
Therefore, they have not yet been adopted. Care DK BidCo ApS expects to adopt these standards, updates
and interpretations when they become mandatory. The following standard is expected to have a material
impact on Care DK BidCo ApS in the current or future reporting periods and on forseeable future
transactions:
Amendments to IAS 1 Presentation of Financial Statements:
• Classification of Liabilities as Current or Noncurrent (issued on 23 January 2020);
• Classification of Liabilities as Current or Noncurrent - Deferral of Effective Date (issued on 15 July 2020);
and
• Non-current Liabilities with Covenants (issued on 31 October 2022)
Care BidCo ApS was incorporated on 22 January 2020, and is through its subsidiaries (the Group) an IT
company, who is specialized in credit management services. The Group offers services in outsourcing of debt
management, debt collection and debt purchase.
The consolidated financial statements of the group have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the EU as well as additional Danish disclosure
requirements applying to entities of reporting class C for large enterprises.
The consolidated financial statements have been prepared under the historical cost convention, except for
derivative financial instruments that are measured at fair value. The financial statements are presented in
Danish Kroner (DKK), as this is the parent company's functional currency. The financial statements have
been rounded to the nearest thousand except when otherwise stated.
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.
New accounting policies and disclosures effective in 2023 or later
The consolidated financial statements include the parent company, Care DK BidCo ApS, and its subsidiaries.
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. This is generally established through
holding of the Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
They are deconsolidated from the date that control ceases.
With regards to the true and fair view of the financial statements, certain reclassifications have been made in
the balance sheet and notes. Comparative figures have been adjusted accordingly.
This includes a reclassification of Client funds (cash held on behalf of clients), which were classified as "other
receivables" in the financial statements of 2022. The Client funds consist of cash, which the Group legally
cannot distribute or use for own purposes. In 2022, a corresponding liability was recognised under other
payables. In the financial statements for 2023, and the comparative figures for 2022, the Client funds are
presented on net basis reducing assets and liabilities.
25
Notes
1. Accounting policies, continued
Business combinations
For the purpose of currency translation, assets and liabilities of foreign operations comprise remeasurement
to fair value of identifiable assets and liabilities and goodwillarising in business combinations.
Transactions and balances
Foreign currency translation
Functional currency
The results and financial position of foreign operations that have a functional currency different from the
Group's presentation currency (DKK) 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 and presented in a
separate reserve within equity. Net assets include goodwill and purhcase price allocation adjustments
including intangible assets attributable to the individual entities
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.
Items included in the financial statements of each of the Group’s entities are measured using the currency of
the primary economic environment in which the entity operates (‘the functional currency’).
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 interest’s proportionate share of the acquired entity’s net identifiable assets.
Acquisition-related costs are expensed as incurred.
The acquisition method of accounting is used to account for all business combinations. 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, and
- fair value of any asset or liability resulting from a contingent consideration arrangement
The excess of the consideration transferred over the fair value of the net identifiable assets acquired is
recorded as goodwill.
26
Notes
1. Accounting policies, continued
Revenue from debt collection services
Revenue from portfolio investments in accordance with the effective interest method
Other revenue
Staff expenses
Other external expenses
Special items
Staff expenses comprise wages and salaries as well as payroll expenses.
Other external expenses comprise expenses for administration and sales as well as office expenses, etc.
In addition to revenue from collection services and income fom aquired debt portfolios, the Group has other
revenue streams from contracts with customers such as reminder services, invoicing services, financial data
on a subscription basis. These revenues are recognised when control of the services is transferred to the
customer generally being at the point in time where the service is delivered.
Interest revenue from investments in credit impaired portfolios is recognised at the credit adjusted effective
interest rate. Upon acquisition of a debt portfolio, the credit adjusted effective interest rate (EIR) is
determined, based on expected cash flows.
The effect of re-assessment of the expected cash flows is reported as revaluations of portfolio investments
Revenue recognition
The Group's principal income derives from sales of collection services and from investments in portfolios of
credit impaired overdue receivables.
Revenue from debt collection service is recognized along with provision of the service. Recognition of
revenue commences if it is probable that the consideration will be collected from the debtor. The assessment
is performed on a portfolio basis. Consequently, revenue recognition is based on the estimated success rate.
The contract consideration for the proportion of the cases expected to be collected is recognized in full over
the period in which the work is performed based on an estimate over costs incurred compared to the total
costs expected to be incurred to fulfil the performance obligation
Amortisation, depreciation and impairment losses
Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment
of intangible assets and property, plant and equipment.
Items of income and expense of non-recurring nature which by their nature are not related to the Group’s
ordinary operations or investment in future activities are presented as special items in the income statement.
Financial income and expenses
Financial income and expenses include interest income and expenses as well as allowances and surcharges
under the advance-payment-of-tax scheme, etc.Interest income and exepenses are recognised in the income
statements under the effective interest method.
27
Notes
1. Accounting policies, continued
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.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised
in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.
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.
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.
The income tax expense or credit for the period is the tax payable on the current period’s 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.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise
those temporary differences and tax loss carryforwards
Income tax
28
Notes
1. Accounting policies, continued
Goodwill
Software, licenses, development costs, customer rights
- Software/technology
5-10 years
- Development costs
10 years
- Customer contracts
7-20 years
The Group amortises intangible assets with a finite useful life using the straight-line method over the following
periods:
Goodwill is measured as described under the accounting policy for business combinations. Goodwill on
acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for
impairment annually, or more frequently if events or changes in circumstances indicate that it might be
impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to
those cash-generating units or groups of cash-generating units that are expected to benefit from the business
combination in which the goodwill arose. The units or groups of units are identified at the lowest level at
which goodwill is monitored for internal management purposes, being the geographical areas in which the
Group operates.
Separately acquired intangible assets are shown at historical cost. Software/technology and customer
contracts acquired through business combinations are recognised at fair value at the acqusition date.
Separately acquired intangible assets have a finite useful life and are subsequently carried at cost less
accumulated amortisation and impairment losses.
Costs of development projects comprise salaries, amortisation and other expenses directly or indirectly
attributable to the Company's development activities.
IT-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 use the software, are recognised as intangible assets. This
applies if sufficient certainty exists that the value in use of future earnings can cover future operating
expenses involved as well as the development costs.
Development projects that do not meet the criteria for recognition in the balance sheet are recognised as
expenses in the income statement as incurred.
Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or
at a lower recoverable amount.
As of the of completion, capitalised development costs are amortised on a straight-line basis over the period
of the expected economic benefit from the development work. The amortisation period is 5 years.
Intangible assets
29
Notes
1. Accounting policies, continued
- Other fixtures and fittings, tools and equipment 5 years
- Leasehold improvements 5 years
Leases
Variable lease payments are recognised as an expense in profit or loss in the periods to which they relate.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
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.
Property, plant and equipment is measured at historical cost less accumulated depreciation. The cost
includes expenditure that is directly attributable to the acquisition of the items.
The Group has elected to recognise short-term leases and leases of low-value assets.
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.
Subsequent costs are included in the asset’s 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.
Lease liabilities are subsequently measured by increasing increasing the carrying amount to reflect interest
on the lease liability, and reducing the carrying amount to reflect the lease payments made.
Property, plant and equipment
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 profit or loss 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 asset's useful life and the lease term on a straight-line basis.
The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined,
or the Group’s incremental borrowing rate.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in profit or loss as other operating income/expenses.
Depreciations are calculated using the straight-line method, net of their residual values over their estimated
useful lives, as follows:
30
Notes
1. Accounting policies, continued
Portfolio investments
The Group has entered into arrangements under which the Group is committed to acquire portfolios of credit
impaired receivables on a continuous basis at a predetermined discount. If following the committment to
acquire loan portfolios the credit quality deteriorates compared to the expection reflected in the agreed
discount, a provision for an expected additional credit loss is recognised. The expected credit loss provision if
any is offset against the purchase price upon acquisition, resulting in a higher credit adjusted effective
interest rate.
Trade Receivables
Trade receivables are recognised initially at transaction price value and subsequently measured at amortised
cost using the effective interest method, less loss allowance.
Goodwill and intangible assets with an indefinite useful life are not subject to amortisation and are 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
asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s
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.
Impairment of non-current assets
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables.
See note 16 for a description of the Group’s impairment policies for trade receivables.
The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore
measures them subsequently at amortised cost.
Portfolio investments consists of portfolios of credit impaired recevables purchased at a discount reflecting an
expectation of significant credit losses. Upon acquisition of a debt portfolio, a credit adjusted effective interest
rate is determined, based on expected cash inflows on the portfolio. The expected cash flows are re-
assessed on a regular basis, and the carrying amount is adjusted to the present value of the re-assessed
expected cash flows, discounted at the credit adjusted effective interest rate. The effect of the reassessment
is recognised in the income statement as a revaluation gain or loss.
Cash flow projections are monitored over the course of the year and updated based on, among other things,
achieved collection results, agreements reached with end-customers on installment plans and
macroeconomic information, including forecasts of economic development and unemployment in each
country. Cash flow projections are made at the individual portfolio level.
31
Notes
1. Accounting policies, continued
Contract work in progress
Other receivables
Share premium
Premium on issue of ordinary shares are recognised as share premium
Foreign currency translation reserve
Equity
Receivables are recognised in the balance sheet at amortised cost, which substantially corresponds to
nominal value less provisions for bad debts.
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.
Exchange differences arising on translation of foreign operations 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.
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.
Prepayments
Cash and cash equivalents comprises unrestricted cash and bank balances. Restricted cash held from
collection from customers is not considered cash held by Collectia and are netted against other payables.
Prepayments recognised as an asset comprise prepaid expenses regarding subsequent financial reporting
years and are measured at cost price.
Cash and cash equivalents
Contract work in progress comprises the sales value of ongoing debt collection services. The contract work is
measured at the collection fee to which the Group will become entitled multiplied by the estimated proportion
of work completed at the balance sheet date, based on the proportion of costs incurred as of the balance
sheet date compared to the total costs expected to be incurred. Costs incurred is considered the primary
value driver and consequently used as the basis for determining the percentage of completion. Contract work
is recognised only to the extent that the Group expects to receive the consideration. Assessment of the
collectibility is determined on a portfolio basis.
Share capital
Financial liabilities
Borrowings are initally recognised at fair value which is generally proceeds received, and net of transaction
costs incurred. Subsequently, borrowings are measured at amortised cost using the effective interest rate
method.
Other financial liabilities, including trade and other payables, are on initial recognition measured at fair value.
The liabilities are subsequently measured at amortised cost.
32
Notes
1. Accounting policies, continued
The financial ratios have been calculated in accordance with the recommendations of the Association of
Danish Financial Analysts.
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.
Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets,
property, plant and equipment as well as investments in loan portfolios.
Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in
working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and
provisions. Working capital comprises current assets less short-term debt excluding items included in cash
and cash equivalents.
The cash flow statement shows the Group's cash flows for the year broken down by operating, investing and
financing activities, changes for the year in cash and cash equivalents as well as the Group's cash and cash
equivalents at the beginning and end of the year. the cash flow statement is presented under the indrect
method.
Key Figures
The fair value of financial instruments that are not traded in an active market is determined using generally
accepted valutaion 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.
Cash flow statement
Unidentified- and excess payments are recognised as liabilities, and are not derecognized until the obligation
to repay expires. The gains are included in other revenue.
Other liabilities
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest
expense.
Provisions
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.
Fair value estimation
Other liabilities comprises employee related costs, wihtholding tax liabilities, VAT etc. The liabilities are
measured at the amount expected to be paid.
33
Notes
2. Critical accounting estimates and judgements
The lease of the property in Brøndby has a purchase option of 20,8 MDKK which management does not
consider reasonably certain to exercisehas not yet decided to use. The lease represents approx. 74% of the
carrying amount of right of use assets as of 31 December 2023.
Portfolio investments
Leases
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. The most critical judgments, estimates and assumptions for the individual items are
described below.
Impairment testing of goodwill
The carrying amount of goodwill as of 31 December 2023 is 708 MDKK.
For goodwill impairment testing, a number of estimates are made on the development in revenues, gross
profits, operating margins etc. These are based on an assessment of current and future developments in the
cash-generating units and on historical data and assumptions of future expected market developments. Refer
to note 11 for a description of the impairment test prepared at 31 December 2023.
The carrying amount of portfolio investments as of 31 December 2023 is 246 MDKK. The recognition of
portfolio investments is based on The Group’s own projection of future cash from the acquired portfolios.
Although the Group has historically had good projection accuracy with regard to cash flows and future
deviations, differences to the realized cash flows may occur.
The Group applies internal rules and a decision-making process in the adjustment of established cash
projections in combination with external valuations by a specialist on yearly basis.
Each time a new portfolio is acquired Management takes great care in forecasting the future gross cash flows
as this in turn is determining the price which the Group is able to offer.
If collection performance deviates from the forecast then the expected future cash flows are re-assessed and
the carrying amount are adjusted. All changes in cash flow projections are ultimately decided on at executive
level.
The Group has not sold portfolios of credit impaired debt. Divestments of portfolios are not included in the
business model for this asset category.
34
Notes
1 January to 31
December 2023
1 January to 31
December 2022
TDKK TDKK
3. Revenue from costumer contracts and other revenue
Revenue is in all material aspects for all revenue streams recognised over time.
Revenue from contracts with costumers
306.515
307.064
Other revenue
10.630 9.418
Total revenue satisfied over time 317.145 316.481
Denmark
195.100 181.482
Sweden
35.036 33.767
Norway
43.441 54.835
Germany
41.942
45.270
Finland
1.626
1.128
317.145 316.483
4. Employee costs
Wages and salaries
99.116
91.909
Defined contribution plans
8.487
7.938
Share-based payment
0
0
Other social security costs
4.504
3.910
Other staff costs
0
0
112.107 103.757
Average number of employees
285
270
Key Management Compensation
Executive Board:
Wages and salaries
6.122
5.595
Defined contribution plans
595
627
Share-based payment
0
0
Other social security costs
27
16
Total
6.744 6.238
Board of Directors:
Board compensation
1.585
1.892
Share-based payment
0
0
Total
1.585
1.892
Total compensation of key management personnel
8.329
8.130
The Group derives revenue in the following major geographical
Key Management consists of Executive Board and Board of Directors. The compensation paid or payables to key
management for employee services is shown below:
35
Notes
5. Share-based payment plans
1 January to 31
December 2023
1 January to 31
December 2022
TDKK TDKK
6. Depreciation and amortisation
Depreciation on property, plant and equipment
1.381 1.682
Depreciation on right-of-use assets
4.782 2.907
Amortisation on intangible assets
53.180 53.703
59.343 58.292
7. Special items
8. Financial income
Foreign exchange rate gains
3.223
3.099
Other financial income
4.438
4.894
7.662 7.993
Special items are non-recurring items based on management judgement. In 2022 and 2023, no non-recurring cost
have been recognised.
Management and certain employees of the Group have invested in shares in the company ultimately controlling
Care DK Bidco, Credit Services Holdings Limited. The share holdings are subject to customary leaver provisions,
and consequently, the arrangement is considered a share-based payment arrangement. Neither Care DK Bidco
ApS or any of its subsidiaries have any obligations in respect of the arrangement, and consequently, the
arrangement is classified as an equity settled arrangement.
The amount paid for the shares is equal to their fair value, and consequently, no compensation expense is
recognized. The total shareholding as of 31 December 2023 amounts to 13.9% of all outstanding preference shares
and 24.4% of all outstanding ordinary shares.
36
Notes
1 January to 31
December 2023
1 January to 31
December 2022
TDKK TDKK
9. Financial expenses
Foreign exchange rate losses
8.390
6.627
Interest expense on lease liabilities
1.110
1.022
Interest on financial liabilities measured at amortised cost
73.159
57.720
Other financial expenses
9.157 3.881
91.816 69.250
10. Tax on profit for the year
Current tax:
Current tax on profits for the year
9.035
8.536
Current tax on profits for previous years
(2.762)
347
Deferred tax on profit for the year
(9.130)
(10.127)
Deferred tax on profits for previous years
248 (4.642)
(2.609) (5.887)
Calculated 22.0% tax on profit for the year before income tax
(8.245)
(2.905)
Differences (5.636) 2.982
Tax effects of:
Non-deductible expenses
7
(817)
Tax losses with no deferred tax recognized
(9.032) 0
Current tax on profits for previous years
2.762
(347)
Deferred tax on profits for previous years
(248)
4.642
Higher/lower tax rate in subsidiaries
875
(497)
(5.636) 2.982
Effective tax rate
-7%
12%
37
Notes
11. Intangible assets
Software/
technology
Customer
contracts Goodwill
Development
projects in
progress
Completed
development
projects
TDKK TDKK TDKK TDKK TDKK
Cost:
At 1 January 2022
153.418 272.624 722.667 0 43.933
Additions through business
combinations
0 0 0 0 0
Additions during the year
2.174
0
0
532
14.885
Transfer
0
0
0
0
0
Exchange difference
-1.238
-8.019
-10.859
0
0
At 31 December 2022 154.354 264.605 711.808 532 58.818
Accumulated amortisation and impairment:
At 1 January 2022
28.776 50.277 0 0 3.760
Amortisation for the year
15.322
31.171
0
0
9.344
Reversal of amortisation
0
0
0
0
0
Exchange difference
0
594
0
0
0
At 31 December 2022 44.098 82.042 0 0 13.104
Carrying amount
31 December 2022
110.256 182.563 711.808 532 45.714
Cost:
At 1 January 2023
154.354 264.605 711.808 532 58.818
Additions through business
combinations
0 0 577 0 0
Additions during the year
703
0
0
1.117
12.895
Transfer
0
0
0
0
0
Disposals during the year
0
0
0
0
0
Exchange difference
-412
-4.567
-4.432
1
12
At 31 December 2023 154.645 260.038 707.953 1.649 71.725
Accumulated amortisation and impairment:
At 1 January 2023
44.098 82.042 0 0 13.104
Amortisation for the year
15.803
30.147
0
0
7.230
Reversal of amortisation
0
0
0
0
0
Exchange difference
39
-2.367
0
0
-298
At 31 December 2023
59.940 109.822 0 0 20.036
Carrying amount
31 December 2023
94.705 150.216 707.953 1.649 51.689
38
Notes
11. Intangible assets, continued
Software comprises of external software products and arises mainly from a business combination made in 2020.
Software is recognised at fair value at the date of acquisition, and is subsequently amortised on a straight-line basis.
As at 31 December 2023, the carrying amount of software was 94.705 TDKK. The Group estimates the remaining
useful life of the software to be 6 years.
Customer contracts were acquired through the business combination in 2020 and through further business
combinations in 2021. They are recognised at their fair value at the date of acquisition, and are subsequently
amortised on a straight-line basis. As at 31 December 2023, the carrying amount of customer contracts was 150.216
TDKK. The Group estimates the remaining useful life of the significant customer contracts to be 3 years.
Completed development projects relate to the development of new versions of the Group's existing software
products. The projects are progressing according to plan through the use of the resources allocated by Management
to the development. The software is used in the present market to the Company's exisiting customers, and
furthermore contribute to efficiency and high margins in core business activities. Prior to the initiation of the projects,
the Company inquired of its customers as to the need for an updated programme, which was well received. The cost
is recognised at cost at the date of acquisition, and subsequently amortised on a straight-line basis. As at 31.
December 2023, the carrying amount of development projects was 51.689 TDKK. The Group estimates the
remaining useful life of the development projects to be 9 years.
39
Notes
11. Intangible assets, continued
Impairment tests of goodwill and trademark
31 December
2023
31 December
2022
Cash-generating unit:
TDKK TDKK
Denmark
512.308
512.308
Sweden
60.108
59.404
Norway
81.808
90.127
Germany
53.729
49.969
Total 707.953 711.808
Goodwill is monitored by Management at the level of the country by country activities (cash generating units). As of
31 December 2023, the carrying amount of goodwill allocated to each cash generating unit is shown below:
Impairment testing of goodwill for each cash-generating unit was done prior to preparation of the annual accounts.
The recoverable amount is determined through an estimation of its value in use. For each cash-generating unit,
management has compiled a projection of annual future cash flows based on historical experience and the
company's own plans and estimates for the future. Collectia Group has historically been able to gain market shares
which is also assumed for the forecast period. The continued development of and investment in the proprietary IT
system is also a main driver in the growth as the offering to customers is more complete and more efficient. The key
operating assumptions are revenue growth rate and capex. Potential clients are naturally attracted to an efficient
collection set-up and Collectia Group’s proprietary IT system provides such set-up and continues to benchmark
above its peers.
Management have evaluated what growth rates are achievable and as such, these vary between the companies
based on their best assumption of how the general assumptions above affects each CGU. The calculation is
generally based on a forecast by CGU for the years 2024–2028 and thereafter a terminal period with a perpetual
growth rate of equilibrium of 2 percent, which is forecasted from 2029. The cash flows have been discounted to
present the value applying a weighted average cost of capital of 11% for the Norwegian CGU and 10% on other
CGU's (percent, per year before tax, corresponding to 8,6 percent per year after tax for the Norwecian CGU and 7,8
on other CGU’s). The recoverable amount has been compared for each unit with the Group’s net book value of the
unit’s assets and liabilities.
Goodwill
The Group tests whether goodwill has suffered any impairment on an annual basis. For 2023, no impairment loss
has been recognised.
40
Notes
12. Property, plant and equipment
Other fixtures
and fittings,
tools and
equipment
Leasehold
improve-
ments
TDKK TDKK
Cost:
At 1 January 2022
2.186
3.892
Additions through business combinations
0
0
Additions during the year
614
1.090
Disposals during the year
0
0
Exchange adjustment
-37
0
At 31 December 2022
2.763 4.982
Accumulated depreciation and impairment:
At 1 January 2022
446
1.131
Depreciation for the year
964
718
Reversal of amortisation
0
0
Exchange adjustment
28
0
At 31 December 2022
1.438 1.849
Carrying amount 31 December 2022
1.325 3.133
Cost:
At 1 January 2023
2.763
4.982
Additions through business combinations
93
0
Additions during the year
177
673
Disposals during the year
0
0
Exchange adjustment
-269
-4
At 31 December 2023
2.763 5.651
Accumulated depreciation and impairment:
At 1 January 2023
1.438
1.849
Depreciation for the year
554
827
Reversal of amortisation
0
0
Exchange adjustment
-565
53
At 31 December 2023
1.427 2.729
Carrying amount 31 December 2023
1.336 2.922
41
Notes
31 December
2023
31 December
2022
TDKK TDKK
13. Deferred tax
Deferred tax at 1 January
78.667
96.048
Additions through business combinations
0
0
Deferred tax reccognised in the statement of profit or loss
(9.130)
(10.127)
Adjustment prior year
248
(4.642)
Exchange adjustment
(1.071)
(2.612)
Deferred tax at 31 December 68.714 78.667
Deferred tax relates to
Intangible assets
(64.024)
(73.450)
Property, plant and equipment
(38)
(237)
Right-of-use assets and lease liabilities, net
757
431
Contract assets and liabilities
(7.368) (7.083)
Portfolio investments
0 0
Debt
1.959
1.672
Tax loss carry forward
0
0
(68.714) (78.667)
Of which presented as deferred tax assets
0
0
Of which presented as deferred tax liabilities
(68.714)
(78.667)
(68.714) (78.667)
42
Notes
31 December
2023
31 December
2022
TDKK TDKK
14. Leases
Right-of-use assets
Properties
14.430
13.532
Cars
1.079
575
Others
278
171
15.787 14.278
Lease liabilities
Current
3.654
1.877
Non-current
12.017
13.847
15.671 15.724
1 January to
31 December
2023
1 January to
31 December
2022
Depreciation charge of right-of-use assets
TDKK TDKK
Properties
3.702
2.264
Cars
910
492
Others
170
151
4.782 2.907
Interest expense (included in financial expenses) 1.110 1.021
The total cash outflow for leases in 2023 was TDKK 5,525.
Additions to the right-of-use assets during the 2023 financial year were TDKK 793.
The group leases various properties and cars. Others comprise leases of print machines and other operational
leases.
The individually most signficant lease relates to the rental agreement for the corporate head quarter in Brøndby. The
contract expires in 2033. The lease of the property in Brøndby has a purchase option of DKK 20,8 million which
management does not consider reasonably certain to exercisehas not yet decided to use. The lease represents
approx. 74% of the carrying amount of right of use assets as of 31 December 2023.
The Group has recognised the following amounts relating to leases:
43
Notes
31 December
2023
31 December
2022
15. Portfolio investments
TDKK TDKK
The Group has recognised the following amounts relating purchased debt portfolios
Portfolio investments beginning of the year
242.597
172.215
Purchased debt
41.283
101.175
Installments
-42.633
-25.031
Remeasurements
0
-3.892
Transfer
4.751
-1.869
Exchange differences
20
0
Closing balance 246.018 242.597
Carrying amount 246.018 242.597
Disbursements during the year amounted to TDKK 92.328.
The Group's accounting policy for portfolio investments is described in Note 1.
16. Trade receivables
Trade receivables net impairment
25.250
34.067
The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables and contract asset.
As of 31 December 2023, the nominal outstanding amount is 1.749.230 TDKK (31 December 2022, 1.852.112
TDKK).
When determining the expected credit loss rates supportable information about past events as well as current and
future economic conditions are considered. The historical credit losses experienced in previous years are
insignificant. Adjusting the historical loss rates to reflect current information and Management's expectations about
forward-looking information affecting the customers' ability to settle the receivables, the Group has determined the
expected credit loss as of 31 December 2023 to be insignificant.
Further information about the Group's credit risk related to trade receivables are provided in note 21.
Trade receivables are non-interst bearing and are generally due for settlement within 30 days and therefore are all
classified as current.
44
Notes
17. Contract balances
The Group has recognised the following assets and liabilities related to contracts with customers:
31 December
2023
31 December
2022
TDKK TDKK
Work in progress 44.907 43.952
Contract assets 44.907 43.952
Deferred income 0 0
Contract liabilities 0 0
18. Other receivables
31 December
2023
31 December
2022
TDKK TDKK
Other receivables 20.510 26.381
Other receivables 20.510 26.381
19. Share capital
31 December
2023
31 December
2023
Number of
shares
Nominal value
TDKK
The share capital comprise:
A shares (oridnary shares) - fully paid
76.525.500
5.720
Share capital 76.525.500 5.720
A-shares A-shares
31 December
2023
31 December
2022
Changes in share capital
TDKK TDKK
Opening balance
5.719
5.719
Capital increase
1
0
5.720 5.719
All shares have nominal value of EUR 0.01 and carries one vote.
The shares are non-negotiable instruments. Any transfer of shares are subject to consent of the Board of Directors.
45
Notes
20. Borrowings
Interest rate
Effective
interest rate Currency Maturity
Carrying
amount
TDKK
Term Loan A
Floating
13,46%
DKK
90.773
Term Loan B
Floating
10,25%
DKK
391.844
First Accordion Facility B
Floating
11,10%
NOK
54.217
Acquisition Facility A
Floating
10,27%
DKK
148.782
Revolving Credit facility
Floating
6,38%
DKK
22.350
Total borrowings
707.966
Repayment of 38.480 TDKK has been made on Term Loan A during Financial Year 2023.
The borrowings comprise of loan facilities to Debt Purchase and Debt Collection. There are covenants attached to
the loan facilities. Refer to note 21.
As security for the loans, material bank accounts held by the Group have been pledged. These bank balances
amount to 51.944 TDKK (Free and available cash) as of 31 December 2023. Furthermore, the Parent Companys
shares in subsidiaries together with intercompany receivables and loans have been pledged. Shares in subsidaries
amounts to DKK 974 millions as of 31 December 2023. For intercompany balances, reference is made to notes for
the Parent Company.
Further, an assignment agreement has been made in respect of the Group's payment claims, if any, under the
Acquisition Agreement and the buyer-side warranty and indeminty insurance policy.
The loan bear interest of CIBOR + a fixed credit spread for the loans in DKK currency, and an interest of NIBOR + a
fixed credit spread for the loan in NOK currency. If CIBOR or NIBOR for an interest period resets at a rate below 0,
the rate is set at 0.
On Term loan A, installments equal to the net cash inflow from the debt portfolio shall be made semi-annually.
Repayments are estimated annually. The estimations process is discussed under liquidity risk in note 21.
Term loan B and First Accordion Facility B shall be repaid in full on the maturity date.
The Revolving Credit Facility shall be repaid in full on the maturity date. The Facility renews every three months.
As of March 2021, the loans can be repaid partially or in full at the principal outstanding amount + accrued interest.
46
Notes
21. Financial risk management
Financial risk factors
Market risk
Interest rate risk
Sensitivity:
Impact on post
tax profit and
equity
Impact on post
tax profit and
equity
1 January to 31
December 2023
1 January to 31
December 2022
CIBOR - increase by 100 basis points
-5.610
-5.642
CIBOR - decrease by 50 basis points
2.805
2.821
The Group’s financial liabilities comprise borrowings, leases and trade and other payables. The main
purpose of these financial liabilities is to finance the Group’s operations. The Group’s financial assets include
trade and other receivables and cash and cash equivalents. The Group also enters into derivative
transactions for the purpose of hedging its exposure to interest rate fluctuations. It is the Group's policy that
no trading in derivatives for speculative purposes may be undertaken.
The Group is exposed to market risk (interest rate and foreign exchange rate), credit risk and liquidity risk.
The Group's management oversees the management of these risks on an ongoing basis and responds to
those risks as appropriate.
The impact from changes in the general interest level will only impact the interest rate cap derrivative and
the accounts with an insignificant amount and has therefore not been prepared.
The impact presented in the above sensitivity analysis is based on the financial assets and financial liabilites
recognised as of 31 December 2023. The analysis does not consider the impact from repayments, proceeds
etc. related to the borrowings. Management considers the sensitivy analysis to be reasonably possible based
on the current market conditions.
Interest rate risk is that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group’s main interest rate risk arises from long-term borrowings with
floating rates, which expose the group to cash flow interest rate risk.
Profit or loss and equity is sensitive to higher/lower interest income from cash and cash equivalents as a
result of changes in interest rates.
Due to the volatile interest rate level, the Group has entered into an interest rate cap in order to hedge the
risk of increases in CIBOR to above 3.5% p.a. until October 2024 on a principal of 436 MDKK. After the
balance sheet date the Group has entered into another interest rate cap that extends the hedge from
October 2024 to October 2025 on the same terms as the existing hedge. The contracts are not designated
as a hedging instrument, and fair value adjustments are recognised in the income statement.
47
Notes
21. Financial risk management, continued
Foreign currency risk
Sensitivity
Impact on post
tax profit
Impact on post
tax profit
1 January to 31
December 2023
1 January to 31
December 2022
TDKK TDKK
DKK/EUR exchange rate - increase 1%
-50
-46
DKK/EUR exchange rate - decrease 1%
50
46
DKK/SEK exchange rate - increase 10%
-929
-865
DKK/SEK exchange rate - decrease 10%
929
865
DKK/NOK exchange rate - increase 10%
-734
3,097
DKK/NOK exchange rate - decrease 10%
-734
-3,097
The impact presented in the above sensitivity analysis is based on the financial assets and financial liabilites
recognised as of 31 December 2023.
The following table demonstrates the sensitivity to a reasonably possible change in foreign exchange rates.
With all other variables held constant, the Group's profit is affected as follows:
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 is only to a limited degree subject to foreign currency risks. The Group maintains operations in
Denmark, Germany, Norway, Finland and Sweden where the day-to-day business is carried out in local
currencies. The Group has the majority of its cash flows in DKK and EUR from its operations in Denmark,
Finland and Germany. Combined these three entities are expected to represent 84% of EBITDA on a Group
basis in FY24. It is relevant to apply EBITDA for this purpose as there is a high degree of natural hedging in
the Group due to the local presence (costs in local currency) in all relevant countries.
The external loan package is to a large extent denominated in DKK/EUR (92%) and the remainder in NOK
(8%). Since the majority of the operating cash flows are also denominated in DKK and EUR there is
alignment between operating cash inflows and financing cash outflows. In addition, the DKK is tied to the
EURO through an offical monetary collaboration which fixes the DKK to the EURO and as such only very
small changes in the conversion rate occurs. The additon of the Equity Group in Norway was financed with a
loan in NOK, however; there is aslo here alignment between the denomination of the loan and the
operational cash flows.
48
Notes
21. Financial risk management, continued
Credit risk
As part of its debt portfolio investment activities, the Group acquires portfolios of credit impaired loans and
receivables for the purpose of collecting them to the extent possible. Unlike the debt collection service
activities where the Group acts on behalf of clients in return for commissions and fees, the Group assumes
all the rights and risks associated with the loans and receivables. The portfolios are purchased at prices
significantly below their nominal value, and the Group is entitled to the entire amount it collects, including
interest and fees. Due to the fact that the loans and receivables are credit impaired, it is obvious that the
entire nominal amount of the respective portfolios will not be recovered.
The risk in this business is that the Group, at the time of acquisition, overestimates its ability to collect the
amounts, underestimates the costs of collection or that the credit quality of debt portfolios acquired based
on committments is lower than anticipated when entering into the agreement. The maximum credit risk
amounts to the carrying amount of the debt portfolio, 246.018 TDKK and the commitment to acquire
portfolios in the future through so-called forward flow contracts where the Group has committed to buy an
unknown number of new cases at an agreed rate as the cases arise.
Cash and cash equivalents consist of on demand bank deposits and are held with established banks with a
high credit rating. The Group uses a number of banks with local presence for its day-to-day operations.
The Group's trade receivables are from clients in various industries. Generally there are very few losses due
to the payment process where the Groups fees are deducted from collected amount before it is returned ot
he client. Realised losses are few and usually only materialises if the debtor goes bankcrupt after which the
cases is out in to the normal colletion routine.
Management monitors rolling forecasts of the Group’s liquidity reserve, comprising the potentially undrawn
borrowing facilities and cash and cash equivalents on the basis of expected cash flows.This is generally
carried out at local level in the operating companies of the group, in accordance with practice and limits set
by the Group. These limits vary by location to take into account the liquidity of the market in which the entity
operates. In addition, the group’s liquidity management policy involves projecting cash flows in major
currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet
liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Credit risk arises from cash and cash equivalents, debt portfolios, committments to acquire debt portfolios in
the future and trade receivables. The credit risk exposure arises primarily from the debt portfolio.
Liquidity risk
Prudent liquidity risk Management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when
due and to close out market positions.
49
Notes
21. Financial risk management, continued
Maturity analysis
Less than 1
year
Between 1 and
5 year More than 5 years
Total
TDKK TDKK TDKK TDKK
As at 31 December 2022
Non-derivatives
Borrowings
23.920
714.403
0
738.323
Interests on borrowings
62.091
176.643
0
238.734
Commitments to acquire debt
portfolios
38.470 2.070 0 40.540
Lease liabilities
1.877
13.846
0
15.723
Interests on lease liabilities
1.025
4.260
0
5.285
Trade payables
14.461
0
0
14.461
Other payables
128.723
4.005
0
132.728
270.567 915.227 0 1.185.794
Expected cash inflow on debt
portfolis
99.748 307.329 413.114 820.191
Expected net cash outflow
167.557
x
596.214 -413.114 350.657
As at 31 December 2023
Non-derivatives
Borrowings
34.900
684.339
0
719.239
Interests on borrowings
77.608
199.851
277.459
Commitments to acquire debt
portfolios
883 883
Lease liabilities
3.654
13.967
17.621
Interests on lease liabilities
938
2.593
957
4.487
Trade payables
8.127
0
0
8.127
Other payables
66.045
4.226
70.271
192.155 904.976 957 1.098.087
Expected cash inflow on debt
portfolis
89.810 277.626 377.240 744.676
Expected net cash outflow
-28.221 -623.076 376.283 -275.013
The amounts disclosed in the table are the contractual undiscounted cash flows (including interest
payments). Balances due within 12 months equal their carrying balances as the impact of discounting is not
significant. As described in note 20, the Group has an obligation to make repayments on loan facility A equal
to the amounts collected on the debt portfolios less collection costs. The amounts included in the maturity
analysis are based on expected net cash inflows from portfolios. To enable reader of the financial statements
to better evaluate the liquidy risk, the expected gross cash inflow in the debt portfolios is presented adjecent
to the maturiy analysis.
The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on their
contractual maturities.
The Group also has access to committed and uncommited facilities for the purpose of acquiring additional
portfolios and bolt-on acquisitions.
50
Notes
21. Financial risk management, continued
31 December
2023
31 December
2022
Financial assets and liabilities per measurement category
TDKK TDKK
Financial assets
Portfolio investments
246.018 242.597
Trade receivables
25.250 34.067
Other receivables
19.213 19.718
Cash and cash equivalents
36.314 48.104
326.796 344.487
Financial assets at fair value through profit or loss
1.297 6.663
Financial liabilities at amortised cost
Borrowings
707.966 723.377
Trade payables
8.127 14.461
Payables to Group companies
0 0
Other payables (current and non-current)
44.752 92.823
760.845 830.661
Financial liabilities at fair value through profit or loss
0
0
Fair value measurement and fair value hierarchy
The only financial instruments measured at fair value is the interest rate cap and the foreign currency
exchange contract. Fair value is determined based on generally accepted valuation methods and observable
input (level 2). Fair value of borrowings amounts to TDKK 719.239 (level 2). The fair value is based on
expected contractual payments discounted using current market interest rates. Fair value of the debt
portfolio is estimated to approximately equal the carrying amount due to the fact that the carrying amount is
determined based on expected future cash inflows. The value is based on unobservable input (level 3)
For all other financial instruments, not measured at fair value, the fair value approximates their carrying
amount.
Financial assets at amortised cost
51
Notes
22. Capital management
23. Business combinations
The group has complied with all covenants throughout the reporting period and after the balance sheet date
with comfortable headroom to covenant thresholds.
The Group´s objectives when managing capital are to maintain a stable or growing cash balance and service
the debt and other obligations in a timely manner. In order to aid such objectives Management prepares
cash flow budgets once a year and forecasts when required. This enables Management to act in due time in
order to comply with the capital management objectives.
Under the terms of the Senior Facilities Agreement the Group is required to comply with the following
financial covenants:
DC (debt collection) business Leverage Ratio which essentially means that the ratio of DC borrowings to
EBITDA less of extraordinary items will be of no more than a maximum ratio compared to the DC borrowings.
The maximum ratio is reduced during the loan period.
DP ERC covenant which compares the expected future 10 years net cash inflows from the portfolios held
compared to the DP borrowings. The ratio between the net inflows and DP borrowings shall not exceed 85%.
There are in addition a number of secondary covenants which are to be reported and complied with if certain
circumstances arise.
Acquisition of System Kreditt
On 24 October 2023, Inga Acquisition ApS, a wholly-owned subsidiary of Care DK BidCo ApS acquired
100% of the issued share capital of System Kreditt Inkasso AS. The company provide debt collection
services, and the purpose of the acquisition is to further develop the Group.
The purchase price for the acquisition amounted to 993 TDKK, of which the net identifiable assets
amounted to 443 TDKK, including cash balances of 130 TDKK. The surplus value of 550 TDKK is allocated
to goodwill. The goodwill is attributable to the existing debt collection license and it will not be deductible for
tax purposes.
The contribution to revenue and operating profit in 2023 was 0 TDKK. There were no acquisition-related
costs.
52
Notes
24. Commitments and contingent liabilities
10.Danish accounts pledge agreement granted by Collectia A/S over its Danish bank accounts;
Contingent liabilities
Payment guarantee concerning debt collection of DKK 5.000.000
Guarantee obligations
11.Danish accounts pledge agreement granted by Inga Finans ApS over its Danish bank accounts;
12.Danish assignment agreement granted by Inga Acquisition ApS over its rights under intra-group
receivables;
13.Danish assignment agreement granted by Collectia A/S over its rights under intra-group receivables;
14.Danish assignment agreement granted by Inga Finans ApS over its rights under intra-group
receivables;
15.German share pledge agreement granted by Collectia A/S over its shares in Collectia GmbH;
16.German share pledge agreement granted by Collectia GmbH over its shares in PNO GmbH;
17.German account pledge agreement granted by Collectia GmbH over its German bank accounts;
18.German account pledge agreement granted by PNO GmbH over its German bank accounts;
19.German assignment agreement granted by Collectia GmbH over its rights under intra-group loans;
20.German assignment agreement granted by PNO GmbH over its rights under intra-group loans;
21.Swedish share pledge agreement granted by Collectia A/S over its shares in Collectia Sverige AB;
22.Swedish share pledge agreement granted by Collectia Sverige AB over its shares in
Collectia AB;
23.Swedish share pledge agreement granted by Collectia Sverige AB over its shares in Svenska
Fakturaköp AB;
24.Swedish account pledge agreement granted by Collectia Sverige AB, Collectia AB and Svenska
Fakturaköp AB over certain of their bank accounts;
25.Swedish inter-company loan pledge agreement granted by Collectia Sverige AB, Collectia AB and
Svenska Fakturaköp AB over their rights under inter-company loans.
26.Norwegian share pledge agreement (dated 25 April 2022) granted by Collectia A/S over its shares in
Collectia Norge AS;
27.Norwegian share pledge agreement (dated 25 April 2022) granted by Collectia Norge AS over its
shares in Collectia AS;
28.Norwegian share pledge agreement (dated 25 April 2022) granted by Collectia AS over its shares in
Equity Kapital AS;
29.Norwegian security agreement (dated 25 April 2022) granted by Collectia Norge AS; and
30.Norwegian security agreement (dated 25 April 2022) granted by Collectia AS.
9.Danish accounts pledge agreement granted by Inga Acquisition ApS over its Danish bank accounts;
6.Danish share pledge agreement granted by Care DK Bidco ApS over its shares in Inga Acquisition ApS;
7.Danish share pledge agreement granted by Inga Acquisition ApS over its shares in Collectia A/S;
8.Danish share pledge agreement granted by Collectia A/S over its shares in Inga Finans ApS;
1.English debenture granted by Care Midco 1 Limited, Care Midco 2 Limited, Care DK Bidco ApS over all
their assets and undertaking;
2.Danish share pledge agreement granted by Care Midco 2 Limited over its shares in Care DK Bidco ApS;
3.Danish accounts pledge agreement granted by Care DK Bidco ApS over its Danish bank accounts;
4.Danish assignment agreement granted by Care DK Bidco ApS over its rights under the acquisition’s
share purchase agreement and W&I insurance policy;
5.Danish assignment agreement granted by Care DK Bidco ApS over its rights under intra-group
receivables;
53
Notes
25. Changes in liabilities arising from financing activities
1 January
2022 New loans Repayment
Non-cash
movement New leases
31
December
2022
TDKK TDKK TDKK TDKK TDKK
693.869
55.347
-26.573
734
0
723.377
15.979 0 -3.461 2.582 624
15.724
709.848
55.347
-30.034
3.316
624
739.101
1 January
2023 New loans Repayment
Non-cash
movement New leases
31
December
2023
TDKK TDKK TDKK TDKK TDKK
723.377
22.700
-38.480
369
0
707.966
15.724
0
-5.525
-1.120
6.592
15.671
739.101 22.700 -44.005 -751 6.592 723.637
26. Related parties
Transactions with:
1 January
to 31
December
2023
1 January
to 31
December
2022
TDKK TDKK
Silverfleet Capital Partners
1.250
1.224
26. Related parties (continued)
Consolidated Financial Statements:
Name
London
16 Northumberland Avenue
Information about management's remuneration has been disclosed in note 4. The Group had the following
transactions with related parties during the year:
Place of registered office
The Group Annual Report may be obtained at the following address:
Craven House
Current and non-current
borrowings
Current and non-current lease
liabilities
Total liabilities from
financing activities
The Group is included in the ultimate parent company Annual Report of Care TopCo Limited.
Credit Services Holdings Limited
London
WC2N 5AP
The United Kingdom
This section sets out an analysis of liabilities arising from financing activities and the movements in each of the
periods presented.
Non-cash movements consist primarily of amortization expenses on loan costs and exchange rate adjustments.
Current and non-current
borrowings
Current and non-current lease
liabilities
Total liabilities from
The Group pays for the services of the Investor Directors to Silverfleet Partners in accordance with the
Investment Agreement.
54
Notes
27. Fee to auditors appointed at the general meeting
2022
Nirschl,
Grössl &
Koll. GmbH
Wirtschafts
prüfungsge
sellschaft
Henka
Revision
AS
R3 Pricewater-
house-
Coopers
TDKK TDKK TDKK TDKK
168
166
68
1.156
0
0
0
497
0
0
0
336
23
24
0
53
191
190
68
2.042
2023
Nirschl,
Grössl &
Koll. GmbH
Wirtschafts
prüfungsge
sellschaft
Henka
Revision
AS
R3 Pricewater-
house-
Coopers
TDKK
TDKK
TDKK
TDKK
182
270
91
726
0
62
0
203
0
0
0
324
13
193
0
44
195
525
91
1.297
28. Events after the balance sheet date
Audit fee
Other assurance engagements
Tax advisory services
Other services
Audit fee
Other assurance engagements
Tax advisory services
Other services
No other events materially affecting the assessment of the Annual Report have occurred after the balance sheet
date.
55
Notes
29. Cash flow statement - adjustments
1 January
to 31
December
2023
1 January
to 31
December
2022
TDKK TDKK
59.343 58.320
Remeasurement of portfolios
0
3.892
Other adjustmenst
-288
2.136
Unrealized exchange adjustments
4.102
3.061
Fair value adjustment on hedging instruments
5.365
-3.383
Amortisation
3.792
3.881
72.314 67.907
30. Cash flow statement - Changes in net working capital
1 January
to 31
December
2023
1 January
to 31
December
2022
TDKK TDKK
Change in receivables
15.954
-10.294
Change in other liabilities
-44.397
15.368
Change in trade payables
-6.334
5.326
-34.777 10.400
31. List of group companies
The Group's principal subsidiaries at 31 December 2023 are set out below:
Type
Ownership
interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
System Kreditt Inkasso AS
100%
Collectia Nova AS
100%
100%
Depreciation, amortisation and impairment losses, including losses and
gains on sales
Collectia OY Subsidiary
Collectia GmbH Subsidiary
Subsidiary
Collectia AS Subsidiary
DR. DUVE Inkasso GmbH Subsidiary
Adressa GmbH Subsidiary
Hanover, Germany
Tønsberg, Norway
Helsingfors, Finland
Hanover, Germany
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Stockholm, Sweden
Place of incorporation
Brøndby, Denmark
Brøndby, Denmark
Brøndby, Denmark
Stockholm, SwedenCollectia AB
Svenska Fakturaköb AB
Equity Kapital AS
Collectia Sverige AB Subsidiary
Kristiansund, Norway
Tønsberg, Norway
Subsidiary
PNO GmbH
Malmø, Sweden
Deggendorf, Germany
Deggendorf, Germany
Subsidiary Oslo, Norway
Subsidiary Oslo, Norway
Collectia Norge AS Subsidiary
Inga Acquisition ApS
Collectia A/S
Inga Finans ApS
56
Parent company
Statement of profit or loss
Notes
1 January to 31
December 2023
1 January to 31
December 2022
TDKK TDKK
Gross profit/loss
9.587 10.802
Staff expenses
2 -6.744 -6.238
Operating profit/loss
2.843 4.564
Other operating expenses -3.785 -4.974
Profit/loss before net financials
-942 -410
Financial income 3
27.105 21.854
Financial expenses 4
-81.939 -58.139
Profit/loss before tax
-55.776 -36.695
Tax on profit/loss of the year 5
11.920 7.832
Profit/loss for the year
-43.855 -28.863
58
Balance sheet (Parent Company)
Notes
31 December
2023
31 December
2022
TDKK TDKK
Investments in subsidiaries
6 974.200 974.200
Fixed assets
974.200 974.200
Trade receivables
0 0
Receivables from group entities
214.044 234.515
Other receivables
782 7.055
Deferred tax
1.959 1.297
Corporation tax receivable from
group enterprises
17.202 18.170
Receivables
233.987 261.037
Cash at bank and in hand 551 625
Current assets 234.539 261.663
Assets
1.208.738 1.235.862
59
Balance sheet (Parent Company)
Note
31 December
2023
31 December
2022
TDKK TDKK
Share capital
7
5.720 5.719
Share premium
0 0
Retained earnings
471.437 478.036
Total equity
477.157
483.755
Credit institutions
9 676.646 702.719
Other payables
0 0
Long-term debt
676.646
702.719
Credit institutions
9 31.320 20.658
Trade payables
840 741
Payables to group enterprises
1.829 3.252
Corporation tax
4.598 9.907
Other payables
16.349 14.829
Short-term debt
54.936 49.388
Total debt
731.582 752.107
Total equity and liabilities
1.208.738 1.235.862
60
Statement of changes in equity
Share capital
Share
premium
Currency
translation
reserve
Retained
earnings Total
TDKK TDKK TDKK TDKK TDKK
Equity at 1 January 2022
5.719 0 0 478.036 483.755
Capital increase
1 37.256 0 0 37.257
Dividend
0 0 0 0 0
Transfer
0 (37.256) 0 37.256 0
Cash-flow-hedges
0 0 0 0 0
Net profit/loss for the year
0 0 0 (43.855) (43.855)
Equity at 31 December 2023
5.720 0 0 471.437 477.157
61
Notes
1.
Accounting policies
2.
Staff expenses
3.
Financial income
4.
Financial expenses
5. Tax on profit/loss for the year
6. Investments in subsidiaries
7. Share capital
8. Distribution of profit
9. Long-term debt
10. Related parties
11. Events after the balance sheet date
12. Commitments and contingent liabilities
62
Notes
Recognition and measurement
Translation policies
1. Accounting policies
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction.
Exchange differences arising due to differences between the transaction date rates and the rates at the
dates of payment are recognised in financial income and expenses in the income statement. Where foreign
exchange transactions are considered hedging of future cash flows, the value adjustments are recognised
directly in equity
Receivables, payables and other monetary items in foreign currencies that have not been settled at the
balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between
the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose
are recognised in financial income and expenses in the income statement.
The separate financial statements for the parent company ("the Parent") of the Group has been prepared in
accordance with the Danish Financial Statements Act applying to enterprises of reporting class B as well as
selected rules applying to reporting class C.
The Parent Company Financial Statements for 2023 are presented in Danish kroner (TDKK).
Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial
assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses
incurred to achieve the earnings for the year are recognised in the income statement, including depreciation,
amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of
Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to
the asset will flow to the Company, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out
of the Company, and the value of the liability can be measured reliably.
Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as
described for each item below
The accounting policies applied remain unchanged from last year.
63
Notes
Revenue
Gross profit/loss
Staff expenses
Income Statement
With reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a
summary of revenue and other external expenses.
Other external expenses
Revenue from the sale of services is recognised when the risks and rewards relating to the services sold
have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the
economic benefits relating to the sale will flow to the Company.
Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts
relating to sales.
Other external expenses comprise costs for administration, etc.
Tax on profit/loss for the year
Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax
attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to
equity transactions is recognised directly in equity.
The Company is jointly taxed with wholly owned Danish and foreign subsidiaries. The tax effect of the joint
taxation is allocated to enterprises in proportion to their taxable incomes.
Staff expenses comprise wages and salaries as well as payroll expenses.
Financial income and expenses
Financial income and expenses are recognised in the income statement at the amounts relating to the
financial year.
1. Accounting policies, continued
64
Notes
Receivables
Financial debt
Receivables are recognised in the balance sheet at amortised cost, which substantially corresponds to
nominal value. Provisions for estimated bad debts are made.
Deferred tax assets and liabilities
Deferred income tax is measured using the balance sheet liability method in respect of temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively.
Deferred tax assets are measured at the value at which the asset is expected to be realised, either by
elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax
entity.
Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation
at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in
deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred
tax relates to items recognised in equity.
Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income
for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and
repayment under the on-account taxation scheme are recognised in the income statement in financial
income and expenses.
Current tax receivables and liabilities
Loans, such as loans from credit institutions, are recognised initially at the proceeds received net of
transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference
between the proceeds and the nominal value is recognised as an interest expense in the income statement
over the loan period.
Other debts are measured at amortised cost, substantially corresponding to nominal value.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. Where cost exceeds the recoverable amount, write-down
is made to this lower value.
Balance sheet
1. Accounting policies, continued
65
Notes
1 January to
31 December
2023
1 January to
31 December
2022
2. Staff expenses
TDKK TDKK
Wages and salaries
6.122 5.595
Pensions
595 627
Other social security expenses
27 16
6.744 6.238
Average number of employees
4 4
3. Financial income
Interest from group enterprises
20.319 18.755
Other financial income
3.562 0
Exchange adjustments
3.223 3.099
27.105 21.854
4. Financial expenses
Interest to group enterprises
328 259
Other financial expenses
81.610 57.880
Exchange adjustments
0 0
81.939 58.139
5. Tax on profit/loss for the year
Current tax for the year
-10.359 -7.140
Current tax on profits for previous years
-901 0
Deferred tax for the year
-661 -692
(11.920) (7.832)
66
Notes
31 December
2023
31 December
2022
TDKK TDKK
6. Investments in subsidiaries
Cost at 1 January 2023
974.200 974.200
Additions for the year
0 0
Cost at 31 December 2023
974.200 974.200
Carrying amount at 974.200 974.200
Investments in subsidiaries are specified as follows:
Name:
Inga Acquisition ApS
Place of registered office: Brøndby
Share capital:
116.453,80 DKK
Votes and ownership: 100%
See note 31 in the consolidated financial statements for the subsidiaries of the Group.
7. Share capital
Refer to note 19 in the consolidated financial statement for an overview of the changes in share capital.
8. Distribution of profit
1 January to
31 December
2023
1 January to
31 December
2022
TDKK TDKK
Retained earnings
-43.855 -28.863
67
Notes
9. Long-term debt
Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt.
The debt falls due for payment as specified below
31 December
2023
31 December
2022
TDKK TDKK
Credit institutions
More than 5 years
0 0
Between 1 and 5 years
676.646 702.719
Long-term part
676.646 702.719
Other short term-debt to credit institutions
31.320 20.658
707.966 723.377
Other payables
Between 1-5 years
0 0
Long-term part
0 0
Other short-term payables
16.349 14.829
16.349 14.829
10. Related parties
Refer to note 26 in the consolidated financial statements for more information.
Consolidated Financial Statements:
Consolidated Financial Statements for:
Name
Place of
Credit Services Holdings Limited Craven House
16 Northumberland Avenue
London
WC2N 5AP
Kingdom
Care DK BidCo ApS Abildager 11
2605 Brøndby
Danmark
68
Notes
11. Events after the balance sheet date
Refer to note 28 in the consolidated financial statements for more information.
12. Commitments and contingent liabilities
The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The
total amount of corporation tax payable by the Group amounts to TDKK 6,844. Moreover, the group companies
are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and
tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase
the Company’s liability.
Refer to note 24 in the consolidated financial statements for more information.
The group’s danish entities have joint and several liability for joint VAT registration.
Guarantee obligations
1.Danish accounts pledge agreement granted by Care DK Bidco ApS over its Danish bank accounts;
2.Danish assignment agreement granted by Care DK Bidco ApS over its rights under the acquisition’s share
purchase agreement and W&I insurance policy;
3.Danish assignment agreement granted by Care DK Bidco ApS over its rights under intra-group receivables;
4.Danish share pledge agreement granted by Care DK Bidco ApS over its shares in Inga Acquisition ApS;
69
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