CVR No
41 10 05 16
Chairman
Jesper Eiby Christoffersen
The Annual Report was presented and adopted at the Annual General
Meeting of the Company on: 28 May 2025
-
31 December 2024
Care DK BidCo ApS
Annual report for
1 January 2024
C/O Collectia A/S Abildager 11, 2605 Brøndby
Contents
Page
Company Information 3
Key figures 4
Management's Review 5
Management's Statement 12
Independent Auditor's Report on the Financial Statements 13
Group
Consolidated statement of profit and loss 16
Consolidated statement of comprehensive income 17
Consolidated balance sheet 18
Consolidated cash flow statements 20
Consolidated statement of changes in equity 21
Notes 22
Parent
Profit and loss 58
Balance sheet 59
Statement of changes in equity 61
Notes 62
Company Information
Company
Care DK BidCo ApS
C/O Collectia A/S
Abildager 11
2605 Brøndby
Central Business Registration No 41 10 05 16
Registered in Brøndby
Financial period: 1 January 2024 - 31 December 2024
Executive Board
Jesper Eiby Christoffersen
Daniel Bremann Itzhaki
Jesper Gunni Winther
Martin Høy
Board of Directors
Erik Forsberg
Gareth Ridgwell Whiley
Jesper Eiby Christoffersen
Jesper Gunni Winther
Martin Høy
Daniel Bremann Itzhaki
Auditors
PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab
Strandvejen 44
DK-2900 Hellerup
Cvr nr. 33 77 12 31
3
Key figures
1 January to 31
December
2024
1 January to 31
December
2023
1 January to
31 December
2022
1 January to
31 December
2021
TDKK TDKK TDKK TDKK
Financial highlights
Profit and loss accounts
Revenue
357.283
271.039
Gross profit
105.223
82.014
Operating profit
45.430
46.676
48.051
29.451
Net financials
(84.393)
(84.155)
(61.256)
(36.389)
Loss for the year
(36.194)
(34.870)
(7.318)
(12.068)
Balance sheet
Total assets
1.326.340
1.405.780
1.494.175
1.485.007
Total equity
489.089
546.216
Cash flows
Net cash flow from operating activities
58.210
30.901
82.086
45.609
Net cash flow from investing activities
(25.442)
(58.644)
(118.337)
(239.648)
Cash flow from financing activities
(38.305)
15.952
25.313
149.481
Empolyees
Average number of employees
254
249
251
231
Key Ratios
Gross margin (%)
29%
31%
31%
30%
Operating profit (%)
13%
14%
14%
11%
Return on equity (%)
-7%
-7%
-1%
-2%
Equity ratio (%)
37%
38%
35%
37%
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 and debt collection.
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 debtor 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 thousands of 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.
Service offerings
Invoicing, debt & credit management, reminder service, debt collection, legal collection, consulting, billing service,
credit scoring and IT services.
Development during the year
The income statement of the Group for 2024 shows a loss of TDKK 36,194 and at 31 December 2024 the
balance sheet of the Group shows equity of TDKK 489,089.
2024 has been pivotal in expanding the Groups offerings and strengthening the market presence. Focus has been
on broadening our product portfolio, integrating invoicing- and reminder services into our proprietary IT-platform C-
work system to enhance user convenience and financial management. Additionally, we successfully launched
Qatchr, our own credit scoring system for customers, in Germany—marking a significant milestone in our
innovation journey. Our growth has also been fueled by the continued support of our cross-border customers,
demonstrating our commitment to delivering seamless and efficient solutions on an international scale. Together,
these developments underline our dedication to driving value and building stronger relationships by continuously
expanding our value chain and provide the best possible solutions for our customers.
Manatement's Review
The Group has in 2024 continued to execute on the strategy which was laid out in 2020 and been subject to
refinement to ensure alignment with evolving circumstances, opportunities and challenges.
Upon a number of acquisitions in 2021 and an integration focus in 2022, the Group has in 2024 focused on
implementing C-Work (proprietary IT-platform) in Germany and continued to optimize operations in Denmark,
Norway, Finland and Sweden.
The Group remains focused on consolidating the Nordic collection market but will only pursue acquisitions that
meet its requirements, including synergy potential. In 2024, no suitable add-on acquisitions were made. However,
Collectia Group remains committed to its strategy and has the financial resources to continue pursuing
opportunities. 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.
5
Management's Review
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 since
then focused on optimizing the system to enable the best possible efficiency. The production KPIs in Norway have
since shown massive improvement which validates that C-work is superior to its peers in all regions where it has
now been introduced, which has also been a key pillar in the initial strategy.
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 2024 the Group has continued its efforts to implement C-Work in Germany which is expected to be completed
during 2025. 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 no longer considers debt
purchasing as part of its strategy.
The past year and follow-up on development expectations from last year
Management considers the result achieved to be satisfactory given that an overall growth of 3% was achieved.
This was within the band of 1-6% indicated in the 2023 Annual Accounts The increase in revenue from TDKK
345,258 to TDKK 357,283 was driven by more service revenue whereas the portfolio revenue was further reduced
due to fewer portfolios being acquired . Service revenue grew organically by 10% from the prior year which is
remarkable given that especially the Danish business is already a dominant player in the Danish market and as
such it is more difficult to take market shares. The Swedish and German service business were the main drivers
of the increase in revenue and while Norway experienced a setback due to its past license issues it was still
possible to maintain a good growth rate given that the growth in the Danish service business was able to set the
roll of of portfolio revenue in Denmark.
Earnings before depreciation and amortisation was slightly lower than expected which was due to more non-
operational/non-recurring costs than expected. If adjusted for such costs, earnings would be slightly above the
lower threshold expected in last year’s Annual report with a 33% margin.
The company has maintained its focus on advancing IT capabilities, reflecting its dedication to innovation and
future readiness, which has to some degree influenced overall financial results . The service business growth of
10% in the group underpinned the fact that we are likely taking market shares as the market for collection service
as such is not subject to material growth in the different markets where Collectia Group operates.
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 continued to invest in IT security in particular and believes that such pre-emptive measures ais 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.
Exchange rate fluctuations have been limited in the financial year.
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 FY24 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.. Note that the Group has scaled down the acquisition of portfolios and currently, no contracts
have been entered into for FY25, hence the investment risk continues to be reduced.
Targets and expectations for the year ahead
Collectia is well positioned and expects to continue the organic growth of 1% to 7% which is a combination of the
growth in the service business and a decline in the Portfolio business.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 and operate 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 continue to grow in FY25.
Given that all add-on acquisitions have been fully integrated, and no acquisition of portfolios are planned, the
growth target for FY25 is in line with that of FY24. 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 FY25, 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 was 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 FY25 based on the above materiality analysis. In total
twelve specific actions have been planned for FY25: four are related to People; three are related to Governance;
two are related to Debtors and Customers; and three are related to Environmental Management.
8
Management's Review
The Group values its staff as the most important resource, integral to the ESG policy. To attract and retain
qualified and dedicated employees who align with Collectia Group's values, the Group aims to be an attractive
workplace.
Regular employee satisfaction surveys show results above the industry benchmark. These surveys, which review
seven factors (Colleagues, Achievements, Purpose, Leadership, Influence, Mastery, and Balance) plus an overall
Job Satisfaction factor, will continue to ensure employee wellbeing. Additionally, diversity, equity, and inclusion-
related questions, along with an eNPS, are included.
While there are no specific improvement targets, results are compared to peer groups, and actions are taken at
the department level if results are significantly below the benchmark. The surveys are currently being analyzed to
identify areas for improvement.
Human Rights
The Group is committed to protecting fundamental human rights across all operations and promoting respect for
these principles among employees and business partners. There has not been any violation of human rights in
2024 to our knowledge.
In FY23, all employees underwent Code of Conduct awareness training. The Group adopted a Code of Conduct
for Employee Rights at the end of 2022 to foster a responsible and positive business culture. This Code
addresses discrimination based on age, gender, religion, or race. The next training session is scheduled for H1
2025. The Code of Conduct awareness training has not been carried out during 2024 but is scheduled to be
executed shortly into 2025.
While the impact of the Code of Conduct has not been measured, it aims to ensure a positive influence on
business, society, the environment, debtors, customers, employees, and investors.
The group assumes that the risk of human rights violation is low given that the group only operates in Europe and
does not import any goods from the rest of the world. The nature of the business also supports this assessment.
External environment
The Group aims to be the most environmentally friendly digital debt collection company by leading sustainable
projects, reducing CO2 emissions, and promoting a green mindset among stakeholders. The 'A Greener Collectia'
project focuses on reducing food waste, using electric company cars, minimizing travel between offices,
partnering with green suppliers, and lowering the carbon footprint across all offices.
Despite the nature of the business already having a low environmental impact, Collectia Group has further
reduced its carbon footprint by installing solar cells on the office building roof in Denmark, generating 19,155.59
kWh in 2024. Additionally, significant investments in the IT platform have greatly reduced paper usage.
Since 2022, Collectia Group has been measuring its carbon footprint and setting targets for reduction. The
preliminary numbers for FY24 are:
9
Management's Review
Each office submits annual reports on Scope 1, 2, and 3 data. The calculations are performed in a spreadsheet,
providing a detailed breakdown of total CO2e emissions in tonnes.
Which environmental risks do we face, and how can we proactively prevent them?
In Germany, there is a potential risk of flooding. Fortunately, all employees can work remotely, ensuring continued
operations.
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
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 2024 we’ve had
multiple prioritized activities supporting this agenda. Among other things a DEI-B calendar was launched, and
surveys was pushed out every quarter 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.
We have focused on onboarding across the entire Group to ensure everyone is aligned with the company culture,
which reduces the risk of workplace clashes. At the same time, we have introduced a Talent Management
program that helps us identify and nurture talent. In this way, we are creating people-centric processes that reduce
the risk of employee disengagement, turnover, ineffective leadership, or cultural issues.
Employee engagement was measured during 2024 by an average of 7 factors measured in the quarterly
employee satisfaction surveys. These factors are Colleagues, Achievements, Purpose, Influence, Leadership,
Mastery and Balance.
Each factor includes 5-6 questions. For instance, a question from the Leadership category is:
"Do you feel that your immediate supervisor values you and your work?"
Similarly, a question from the Purpose category might be:
"Do you find meaning in the decisions made at your workplace?"
Result December 2024:
10
Management's Review
Anti-Corruption
The Group's anti-corruption policy, adopted in early 2021, ensures adherence to high ethical standards and
prohibits bribery. Identified risks of corrupt behavior are mainly among employees. All new employees are trained
in the policy, which outlines expected behavior to ensure business is conducted with integrity and in compliance
with local laws and regulations.
The policy, available in multiple languages, emphasizes ethical responsibility, a healthy work environment, and
human rights. When acquiring new businesses, the Group implements its ethics, practices, and policies gradually
to ensure proper integration.
No non-compliance events were reported in 2024 or after the balance sheet date. In 2023, the Group introduced
an internal whistleblower channel to promote an open and trusting corporate culture. Employees are aware of this
channel, and reports are handled with the highest confidentiality standards. The whistleblower channel will
continue to be available in 2025 and beyond.
Data Ethics
Collectia Group has implemented a Data Ethics Policy in accordance with Section 99d of the Danish Financial
Statements Act. This policy supplements existing data protection efforts and reflects Collectia’s commitment to
handling data responsibly, focusing on confidentiality, integrity, and availability.
Given the large quantities of personal data handled, GDPR compliance is a top priority. Collectia ensures data is
collected for specific, legitimate purposes and processed legally, respectfully, and transparently. Only necessary
data is processed, kept relevant, sufficient, and up to date, and stored only as long as needed. Data is protected
against unlawful destruction, modification, or publication, respecting individuals' privacy.
The Group invests heavily in data protection, strengthening the IT organization with cybersecurity experts and
implementing systems to prevent cyber-attacks and monitor irregular data flows. All staff receive training on
correct data handling and cybersecurity awareness upon employment and ongoing.
The formalized Data Ethics Policy outlines guidelines for ethical data collection, processing, and use. It is 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.
11
Management's Statement
Brøndby, 28 May 2025
Executive Board
Jesper Eiby Christoffersen Jesper Gunni Winther
Daniel Bremann Itzhaki
Martin Høy
Board of Directors
Erik Forsberg Gareth Ridgwell Whiley
Chairman Vice chairman
Daniel Bremann Itzhaki Jesper Eiby Christoffersen
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 2024
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 2024 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 2024.
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.
12
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 2024, 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 2024 and of the results of the Parent Company’s operations for
the financial year 1 January to 31 December 2024 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 2024 and of the results of the Group’s operations and cash flows for the financial
year 1 January to 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU
and further requirements in the Danish Financial Statements Act.
We 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 Accountants (IESBA Code) and the additional
ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Management is responsible for Management’s Review.
Our opinion on the financial statements does not cover Management’s Review, and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read Management’s Review
and, in doing so, consider whether Management’s Review is materially inconsistent with the financial
statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether Management’s Review provides the information required
under the Danish 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.
13
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.
14
Independent Auditor’s Report
Hellerup, 28 May 2025
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.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the
Consolidated Financial Statements. We are responsible for the direction, supervision and review of the audit
work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
Auditor’s Responsibilities for the Audit of the Financial Statements, continued
15
Consolidated statement of profit or loss
Note
1 January to 31
December
2024
1 January to 31
December
2023
TDKK TDKK
Revenue from customer contracts
3
331.167
317.145
Revenue from portfolio investments and other revenue in
accordance with the effective interest method
26.116 28.113
Revaluations of portfolio investments
0
0
Total Revenues
357.283
345.258
Staff expenses
4, 5
(117.055)
(112.107)
Other external expenses
(135.005)
(127.132)
Earnings before depreciation and amortisation
105.223
106.018
Depreciation and amortisation 6
(59.792) (59.343)
Operating profit before special items
45.430
46.676
Special items
7
0
0
Operating income after special items
45.430
46.676
Financial income
8
4.611
7.662
Financial expenses
9
(89.004)
(91.816)
Loss before tax
(38.963)
(37.479)
Income tax expense
10
2.769
2.609
Loss for the year
(36.194)
(34.870)
Loss is attributable to:
Owners of the parent company
(36.194)
(34.870)
(36.194)
(34.870)
16
Consolidated statement of comprehensive income
1 January to 31
December
2024
1 January to 31
December
2023
TDKK TDKK
Loss for the period
(36.194)
(34.870)
Other comprehensive income
Items that will be subsequently reclassified to profit or loss
Other adjustments
0
3.745
Exchange differences on translation of foreign operations
(3.443)
961
Other comprehensive income for the period, net of tax (3.443) 4.706
Total comprehensive income for the period (39.637) (30.164)
Total comprehensive income for the period is attributable to:
Owners of the parent company (39.637) (30.164)
(39.637) (30.164)
17
Consolidated balance sheet
Note
31 December
2024
31 December
2023
TDKK TDKK
Goodwill
11
701.373
707.953
Other intangible assets
11
255.306
298.259
Property, plant and equipment
12
4.300
4.258
Right-of-use assets
14
15.914
15.787
Portfolio investments
15
218.413
246.018
Total non-current assets 1.195.306 1.272.276
Trade receivables
16
32.384
25.250
Contract work in progress
17
45.147
44.907
Current tax assets
1.492
2.413
Other receivables
18
17.375
20.510
Prepayments
3.858
4.111
Cash and cash equivalents
30.777
36.314
Total current assets 131.034 133.505
Total assets 1.326.340 1.405.780
18
Consolidated balance sheet
Note
31 December
2024
31 December
2023
TDKK TDKK
Share capital
19
5.720
5.720
Share premium
629.438
629.438
Foreign currency translation reserve
(21.221)
(17.778)
Retained earnings
(124.848)
(88.654)
Capital and reserves attributable to owners
489.089 528.726
Total equity
489.089
528.726
Other provisions
1.700
1.700
Borrowings
20
645.565
676.646
Lease liabilities
14
12.704
12.017
Deferred tax liabilities
13
58.594
68.714
Other payables
4.348
4.226
Total non-current liabilities 722.911 763.303
Borrowings
20
29.909
31.320
Trade payables
9.275
8.127
Lease liabilities
14
3.345
3.654
Income tax payables
4.535
4.606
Other payables
67.276
66.045
Total current liabilities 114.340 113.751
Total liabilities 837.251 877.054
Total equity and liabilities 1.326.340 1.405.780
19
Consolidated cash flow statement
Notes
1 January to 31
December
2024
1 January to 31
December
2023
TDKK TDKK
Operating profit before special items
45.430
46.676
Adjustments
29
68.441
72.314
Changes in net working capital
30
(1.486)
(34.777)
Special items paid
7
0
0
Payments received on loan portfolio
36.061
41.283
Interests received, bank deposits etc.
4.611
7.662
Interests paid
(89.004)
(91.816)
Income taxes paid
10
(5.843)
(10.440)
Net cash flow from operating activities 58.210 30.901
Purchase and sale of intangible assets
11
(15.468)
(15.292)
Purchase and sale of property, plant and equipment
12
(1.426)
(850)
Purchase of loan portfolios
15
(8.548)
(42.633)
Cash flow from business combinations
0
130
Net cash flow from investing activities (25.442) (58.644)
Repayment of borrowings
25
(33.311)
(38.480)
Raising of borrowings
25
0
22.700
Principal elements of lease payments
25
(4.994)
(5.525)
Cash capital increase
0
37.257
Cash flow from financing activities (38.305) 15.952
Net cash flow for the year (5.537) (11.791)
Cash and cash equivalents, beginning of the year
36.314
48.104
Cash and cash equivalents at end of the year 30.777 36.313
20
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 2023
5.719
592.182
521.633
Loss for the year
0 0 0 -34.870 -34.870
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
Equity at 1 January 2024
5.720
629.438
528.726
Loss for the year
0
0
0
Other adjustments
0
0
0
0
0
Other comprehensive income for the period
0
0
-3.443
0
-3.443
Total comprehensive income for the period
0
0
-3.443
Equity at 31 December 2024
5.720 629.438 -21.221 -124.848 489.089
21
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
16. Trade receivables
17. Contract balances
18. Other receivables
19. Share capital
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
22
Notes
1. Accounting policies
General information
Basis of preparation
With regards to the true and fair view of the financial statements, certain reclassifications have been made in
the notes.
Comparative figures have been adjusted accordingly.
No standards which are not yet effective have been applied.
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.
New accounting policies and disclosures effective in 2024 or later
The IASB has issued amendments to some existing standards which are effective for accounting periods
beginning on or after 1 January 2024 and are or could be relevant for the Group:
• Amendment to IAS 1, Presentation of Financial Statements: Clarifies that the distinction between current
and non-current liabilities must be based on the rights existing on the balance sheet date and introduces
disclosure requirements for loan covenants.
• IFRS 16, Leasing: Clarifies that the amount of a deferred gain in a sale and leaseback transaction shall
reflect the economic interest retained through the lease. For instance, variable lease payment not based on
an index shall be included in determining the economic interest retained.
The amendments have not had any impact on the Group’s accounting policies.
23
Notes
The IASB has issued amendments to some existing standards which are not yet effective and could be
relevant to the Group.
Amendment to IAS 21, Foreign exchange rates (1 January 2025).
The amendment clarifies the procedures relating to the assessment of whether a currency is exchangeable
into another currency, and when it is not, how to determine the exchange rate to use and which disclosures to
provide.
Amendments to IFRS 9, Classification and Measurement of Financial Instruments (1 January 2026)
comprising:
• Clarification of the requirements for the timing of recognition and derecognition of some financial assets and
liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
• Clarification to and addition of further guidance for assessing whether a financial asset meets the solely
payments of principal and interest (SPPI) criterion.
IFRS 18, Presentation of financial statements (1 January 2027, not yet EU endorsed)
•IFRS 18 will replace IAS 1 Presentation of financial statements, introducing new requirements that will help
to achieve comparability of the financial performance of similar entities. It does not comprise guidance on
recognition and measurement but could potentially have significant impact on the presentation of the income
statement.
Management does not expect any significant impact from the adoption of the amendments to IAS 21 and
IFRS 9. Management has not yet completed the assessment of the impact from IFRS 18.
24
Notes
Basis of consolidation
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.
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.
25
Notes
1. Accounting policies, continued
Business combinations
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.
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’).
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
Revenue recognition
The Group's principal income derives from sales of collection services and from investments in portfolios of
credit impaired overdue receivables.
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 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.
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.
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
27
Notes
1. Accounting policies, continued
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
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.
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 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 10 years.
Intangible assets
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.
29
Notes
1. Accounting policies, continued
- Other fixtures and fittings, tools and equipment 5 years
- Leasehold improvements 5 years
The Group has elected to recognise short-term leases and leases of low-value assets.
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 assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
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:
Leases
Variable lease payments are recognised as an expense in profit or loss in the periods to which they relate.
30
Notes
1. Accounting policies, continued
Portfolio investments
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.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables.
The 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.
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
Impairment of non-current assets
See note 16 for a description of the Group’s impairment policies for trade receivables.
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
Prepayments
Cash and cash equivalents comprises unrestricted cash and bank balances. Restricted cash held from
collection from customers is not considered cash held by Care DK BidCo Group 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
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.
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.
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.
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.
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.
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.
Provisions
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. 65% of the
carrying amount of right of use assets as of 31 December 2024.
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 2024 is 701 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 2024.
The carrying amount of portfolio investments as of 31 December 2024 is 218 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 2024
1 January to 31
December 2023
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 debt collection
317.157
306.515
Other revenue
14.009
10.630
Total revenue satisfied over time 331.167 317.145
Denmark
194.635
195.100
Sweden
42.344
35.036
Norway
36.238
43.441
Germany
56.281
41.942
Finland
1.669
1.626
331.167 317.145
4. Employee costs
Wages and salaries
102.775
99.116
Defined contribution plans
10.057
8.487
Share-based payment
0
0
Other social security costs
4.223
4.504
Other staff costs
0
0
117.055 112.107
Average number of employees
254
249
Key Management Compensation
Executive Board:
Wages and salaries
6.621
6.122
Defined contribution plans
731
595
Share-based payment
0
0
Other social security costs
28
27
Total
7.380 6.744
Board of Directors:
Board compensation
1.856
1.585
Share-based payment
0
0
Total
1.856
1.585
Total compensation of key management personnel
9.236
8.329
Key Management consists of Executive Board and Board of Directors. The compensation paid or payables to key
management for employee services is shown below:
The Group derives revenue in the following major geographical regions.
35
Notes
5. Share-based payment plans
1 January to 31
December 2024
1 January to 31
December 2023
TDKK TDKK
6. Depreciation and amortisation
Depreciation on property, plant and equipment
1.437 1.381
Depreciation on right-of-use assets
4.210 4.782
Amortisation on intangible assets
54.144 53.180
59.792 59.343
7. Special items
8. Financial income
Foreign exchange rate gains
2.978
3.223
Other financial income
1.633
4.438
4.611 7.662
Special items are non-recurring items based on management judgement. In 2023 and 2024, 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.
36
Notes
1 January to 31
December 2024
1 January to 31
December 2023
TDKK TDKK
9. Financial expenses
Foreign exchange rate losses
6.561
8.390
Interest expense on lease liabilities
1.044
1.110
Interest on financial liabilities measured at amortised cost
75.519
73.159
Other financial expenses
5.880 9.157
89.004 91.816
10. Tax on profit for the year
Current tax:
Current tax on profits for the year
6.666
9.035
Current tax on profits for previous years
27
(2.762)
Deferred tax on profit for the year
(9.463)
(9.130)
Deferred tax on profits for previous years
0 248
(2.769) (2.609)
Calculated 22.0% tax on profit for the year before income tax
(8.572)
(8.245)
Differences (5.802) (5.636)
Tax effects of:
Non-deductible expenses
1.013
7
Tax losses with no deferred tax recognized
(7.391) (9.032)
Current tax on profits for previous years
(27)
2.762
Deferred tax on profits for previous years
0
(248)
Higher/lower tax rate in subsidiaries
603
875
(5.802) (5.636)
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 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
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
Cost:
At 1 January 2024
154.645 260.038 707.953 1.649 71.725
Additions through business
combinations
0 0 0 0 0
Additions during the year
197
0
0
1.092
14.179
Transfer
0
0
0
0
0
Disposals during the year
0
0
-549
0
0
Exchange difference
-4
-4.893
-6.032
2
-994
At 31 December 2024 154.838 255.145 701.373 2.743 84.910
Accumulated amortisation and impairment:
At 1 January 2024
59.940 109.822 0 0 20.036
Amortisation for the year
15.661
30.045
0
0
8.438
Reversal of amortisation
0
0
0
0
0
Exchange difference
-3
-1.540
0
0
-70
At 31 December 2024
75.598 138.327 0 0 28.405
Carrying amount
31 December 2024
79.240 116.818 701.373 2.743 56.505
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 2024, the carrying amount of software was 79.240 TDKK. The Group estimates the remaining
useful life of the software to be 5 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 2024, the carrying amount of customer contracts was 116.818
TDKK. The Group estimates the remaining useful life of the significant customer contracts to be 4 years.
Completed development projects relate to the development of new versions of the Group's existing software
products. The projects has been 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 2024, the carrying amount of completed development projects was 56.505 TDKK. The Group
estimates the remaining useful life of the development projects to be 8 years.
39
Notes
11. Intangible assets, continued
Impairment tests of goodwill and trademark
31 December
2024
31 December
2023
Cash-generating unit:
TDKK TDKK
Denmark
512.308
512.308
Sweden
58.121
60.108
Norway
77.163
81.808
Germany
53.780
53.729
Total 701.373 707.953
Goodwill is monitored by Management at the level of the country by country activities (cash generating units). As of
31 December 2024, 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 2025–2029 and thereafter a terminal period with a perpetual
growth rate of equilibrium of 2 percent, which is forecasted from 2030. 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 2024, 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 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
Cost:
At 1 January 2024
2.763
5.651
Additions through business combinations
0
0
Additions during the year
1.043
383
Disposals during the year
0
0
Exchange adjustment
29
0
At 31 December 2024
3.835 6.034
Accumulated depreciation and impairment:
At 1 January 2024
1.427
2.729
Depreciation for the year
665
772
Reversal of amortisation
0
0
Exchange adjustment
-25
0
At 31 December 2024
2.067 3.502
Carrying amount 31 December 2024
1.768 2.532
41
Notes
31 December
2024
31 December
2023
TDKK TDKK
13. Deferred tax
Deferred tax at 1 January
68.714
78.667
Additions through business combinations
0
0
Deferred tax reccognised in the statement of profit or loss
(9.463)
(9.130)
Adjustment prior year
0
248
Exchange adjustment
(657)
(1.071)
Deferred tax at 31 December 58.594 68.714
Deferred tax relates to
Intangible assets
(54.767)
(64.024)
Property, plant and equipment
1
(38)
Right-of-use assets and lease liabilities, net
836
757
Contract assets and liabilities
(7.235) (7.368)
Portfolio investments
0 0
Trade receivables
42 0
Debt
2.529
1.959
Tax loss carry forward
0
0
(58.594) (68.714)
Of which presented as deferred tax assets
0
0
Of which presented as deferred tax liabilities
(58.594)
(68.714)
(58.594) (68.714)
42
Notes
31 December
2024
31 December
2023
TDKK TDKK
14. Leases
Right-of-use assets
Properties
13.922
14.430
Cars
785
1.079
Others
1.207
278
15.914 15.787
Lease liabilities
Current
3.345
3.654
Non-current
12.704
12.017
16.049 15.671
1 January to
31 December
2024
1 January to
31 December
2023
Depreciation charge of right-of-use assets
TDKK TDKK
Properties
3.268
3.702
Cars
663
910
Others
279
170
4.210 4.782
Interest expense (included in financial expenses) 1.044 1.110
The total cash outflow for leases in 2024 was TDKK 4.994
Additions to the right-of-use assets during the 2024 financial year were TDKK 4.325 (2023, 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 exercise. The lease represents approx. 65% of the carrying
amount of right of use assets as of 31 December 2024.
The Group has recognised the following amounts relating to leases:
43
Notes
31 December
2024
31 December
2023
15. Portfolio investments
TDKK TDKK
The Group has recognised the following amounts relating purchased debt portfolios
Portfolio investments beginning of the year
246.018
242.597
Purchased debt
8.548
41.283
Installments
-36.061
-42.633
Transfer
0
4.751
Exchange differences
-92
20
Closing balance 218.413 246.018
Carrying amount 218.413 246.018
Disbursements during the year amounted to TDKK 78.887 (2023, TDKK 92.328)
The Group's accounting policy for portfolio investments is described in Note 1.
16. Trade receivables
Trade receivables net impairment
32.384
25.250
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 2024, the nominal outstanding amount is 1.668.694 TDKK (31 December 2023, 1.749.230
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 2024 to be insignificant.
Further information about the Group's credit risk related to trade receivables are provided in note 21.
Trade receivables are non-interest 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
2024
31 December
2023
TDKK TDKK
Work in progress 45.147 44.907
Contract assets 45.147 44.907
Deferred income 0 0
Contract liabilities 0 0
18. Other receivables
31 December
2024
31 December
2023
TDKK TDKK
Other receivables 17.375 20.510
Other receivables 17.375 20.510
Other receivables comprise primarily of factoring agreements and guarantee portfolios.
19. Share capital
31 December
2024
31 December
2024
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
2024
31 December
2023
Changes in share capital
TDKK TDKK
Opening balance
5.720
5.719
Capital increase
0
1
5.720 5.720
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
15,29%
DKK
Q1, 2027
60.996
Term Loan B
Floating
10,72%
DKK
Q1, 2027
391.844
First Accordion Facility B
Floating
12,76%
NOK
Q1, 2027
51.502
Acquisition Facility A
Floating
10,76%
DKK
Q1, 2027
148.782
Revolving Credit facility
Floating
6,73%
DKK
Q3, 2026
22.350
Total borrowings
675.474
Repayment of 33.311 TDKK has been made on Term Loan A during Financial Year 2024.
The borrowings comprise of loan facilities to Debt Purchase and Debt Collection. There are covenants attached to
the loan facilities. Refer to note 22.
As security for the loans, material bank accounts held by the Group have been pledged. These bank balances
amount to 30.777 TDKK (Free and available cash) as of 31 December 2024. Furthermore, the Parent Company's
shares in subsidiaries together with intercompany receivables and loans have been pledged. Shares in subsidaries
are recognized to the orginal purchase price of DKK 974 million as of 31 December 2024. 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 2024
1 January to 31
December 2023
CIBOR - increase by 100 basis points
-5.329
-5.610
CIBOR - decrease by 50 basis points
2.665
2.805
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 2024. 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 2025 on a principal of 436 MDKK. 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 2024
1 January to 31
December 2023
TDKK TDKK
DKK/EUR exchange rate - increase 1%
-83
-50
DKK/EUR exchange rate - decrease 1%
83
50
DKK/SEK exchange rate - increase 10%
-1.036
-929
DKK/SEK exchange rate - decrease 10%
1.036
929
DKK/NOK exchange rate - increase 10%
-8.605
-7.493
DKK/NOK exchange rate - decrease 10%
8.605
7.493
The impact presented in the above sensitivity analysis is based on the financial assets and financial liabilites
recognised as of 31 December 2024.
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 88% of EBITDA on a Group
basis in FY25. 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, 218.413 TDKK and the commitment to acquire
portfolios in the future through so-called forward flow contracts where the Group has committed to buy a
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 to
the 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.
Given that the Group is ultimately owned by PE owners it is expected that the debt will be repaid at the time
of closing of a divestment of the full group. The group will as such be refinanced at closing. If a divestment
does not occur prior to expiration of the current Senior Facilities Agreement, a refinancing process will be
initiated to maintain a solid capital structure.
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 2023
Non-derivatives
Borrowings
34.900
684.339
0
719.239
Interests on borrowings
77.608
199.851
0
277.459
Commitments to acquire debt
portfolios
883 0 0 883
Lease liabilities
3.654
8.415
5.552
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
0
70.271
192.155 899.424 6.509 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
As at 31 December 2024
Non-derivatives
Borrowings
29.909
653.304
0
683.213
Interests on borrowings
69.739
82.138
0
151.877
Commitments to acquire debt
portfolios
1.008 0 0 1.008
Lease liabilities
3.345
9.110
3.594
16.049
Interests on lease liabilities
930
2.381
547
3.858
Trade payables
9.275
0
0
9.275
Other payables
67.276
4.348
0
71.624
181.482 751.281 4.141 936.904
Expected cash inflow on debt
portfolis
79.615 252.899 322.353 654.866
Expected net cash outflow
-101.868 -498.382 318.212 -282.038
The maturity of Borrowings and Interests on borowings are detalied in note 20.
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
2024
31 December
2023
Financial assets and liabilities per measurement category
TDKK TDKK
Financial assets
Portfolio investments
218.413 246.018
Trade receivables
32.384 25.250
Other receivables
17.368 19.213
Cash and cash equivalents
30.777 36.314
298.943 326.796
Financial assets at fair value through profit or loss
7 1.297
Financial liabilities at amortised cost
Borrowings
675.474 707.966
Trade payables
9.275 8.127
Other payables (current and non-current)
48.992 44.752
733.741 760.845
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
unobservable input (level 3). Fair value of borrowings amounts to TDKK 683.213 (level 3). 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
The covenants cover borrowings amounting to TDKK 675.474, as pr. 31 December 2024.
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.
No new business combinations were recognized in 2024.
52
Notes
24. Commitments and contingent liabilities
Commitments to acquire debt portfolios of TDKK 1.008
10.Danish accounts pledge agreement granted by Collectia A/S over its Danish bank accounts;
Contingent liabilities
Payment guarantee concerning debt collection of TDKK 5.000
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
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
1 January
2024 New loans Repayment
Non-cash
movement New leases
31
December
2024
TDKK TDKK TDKK TDKK TDKK
707.966
0
-33.311
819
0
675.474
15.671
0
-4.994
1.047
4.325
16.049
723.637 0 -38.305 1.866 4.325 691.523
26. Related parties
Transactions with:
1 January
to 31
December
2024
1 January
to 31
December
2023
TDKK TDKK
Silverfleet Capital Partners, management fee 1.298
1.250
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
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.
Current and non-current
borrowings
Current and non-current lease
liabilities
Total liabilities from
financing activities
54
Notes
27. Fee to auditors appointed at the general meeting
2023
Nirschl,
Grössl &
Koll. GmbH
Wirtschafts
prüfungsge
sellschaft
Henka
Revision
AS
R3 PwC
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
2024
Nirschl,
Grössl &
Koll. GmbH
Wirtschafts
prüfungsge
sellschaft
Henka
Revision
AS
R3 PwC
TDKK
TDKK
TDKK
TDKK
149
265
37
724
0
93
0
314
113
0
0
175
0
13
0
105
262
371
37
1.318
28. Events after the balance sheet date
The group has successfully won an arbitration case in Norway, which is expected to contribute NOK 34 million,
equivalent to DKK 22 million, after the close of the financial year.
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
2024
1 January
to 31
December
2023
TDKK TDKK
59.792 59.343
Other adjustmenst
-431
-288
Unrealized exchange adjustments
3.374
4.102
Fair value adjustment on hedging instruments
2.152
5.365
Amortisation
3.554
3.792
68.441 72.314
30. Cash flow statement - Changes in net working capital
1 January
to 31
December
2024
1 January
to 31
December
2023
TDKK TDKK
Change in receivables
-3.987
15.954
Change in other liabilities
1.353
-44.397
Change in trade payables
1.148
-6.334
-1.486 -34.777
31. List of group companies
The Group's principal subsidiaries at 31 December 2024 are set out below:
Type
Ownership
interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Collectia Service GmbH
100%
100%
100%
100%
100%
Collectia AB
Subsidiary
Stockholm, Sweden
Place of incorporation
Brøndby, Denmark
Subsidiary
Collectia OY Subsidiary
Collectia GmbH Subsidiary
Subsidiary
Collectia AS Subsidiary
DR. DUVE Inkasso GmbH Subsidiary
Adressa GmbH Subsidiary
Hanover, Germany
Tønsberg, Norway
Helsingfors, Finland
Kristiansund, Norway
Depreciation, amortisation and impairment losses, including losses and
gains on sales
Svenska Fakturaköb AB
Equity Kapital AS
Collectia Sverige AB Subsidiary
Subsidiary
Subsidiary
Subsidiary
Brøndby, Denmark
Brøndby, Denmark
Stockholm, Sweden
Tønsberg, Norway
Subsidiary
PNO GmbH
Malmø, Sweden
Deggendorf, Germany
Deggendorf, Germany
Hanover, Germany
Subsidiary Hanover, Germany
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 2024
1 January to 31
December 2023
TDKK TDKK
Gross profit/loss
5.061 9.587
Staff expenses
2 -7.380 -6.744
Operating profit/loss
-2.318 2.843
Other operating expenses 0 -3.785
Profit/loss before net financials
-2.318 -942
Financial income 3
19.249 27.105
Financial expenses 4
-81.993 -81.939
Profit/loss before tax
-65.062 -55.776
Tax on profit/loss of the year 5
11.792 11.920
Profit/loss for the year
-53.270 -43.855
58
Balance sheet (Parent Company)
Notes
31 December
2024
31 December
2023
TDKK TDKK
Investments in subsidiaries
6 974.200 974.200
Fixed assets
974.200 974.200
Receivables from group entities
133.385 214.044
Other receivables
89 782
Deferred tax
7 2.529 1.959
Corporation tax receivable from
group enterprises
16.850 17.202
Receivables
152.852 233.987
Cash at bank and in hand 658 551
Current assets 153.511 234.539
Assets
1.127.710 1.208.738
59
Balance sheet (Parent Company)
Note
31 December
2024
31 December
2023
TDKK TDKK
Share capital
8
5.720 5.720
Retained earnings
418.167 471.437
Total equity
423.887
477.157
Credit institutions
10 645.565 676.646
Long-term debt
645.565
676.646
Credit institutions
10 29.909 31.320
Trade payables
1.072 840
Payables to group enterprises
8.438 1.829
Corporation tax
3.750 4.598
Other payables
10 15.091 16.349
Short-term debt
58.259 54.936
Total debt
703.824 731.582
Total equity and liabilities
1.127.710 1.208.738
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 2023
5.720 0 0 471.437 477.157
Net profit/loss for the year
0 0 0 (53.270) (53.270)
Equity at 31 December 2024
5.720 0 0 418.167 423.887
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. Deffered tax
8. Share capital
9. Distribution of profit
10. Long-term debt
11. Related parties and disclosure of consolidated financial statements
12. Events after the balance sheet date
13. 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 medium-sized enterprises of reporting
class C.
The Parent Company Financial Statements for 2024 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
amounts that have previously been recognised in the income statement.
Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to
the asset will flow to the Company, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out
of the Company, and the value of the liability can be measured reliably.
Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as
described for each item below
The accounting policies applied remain unchanged from last year.
63
Notes
Derivative financial instruments
Hedge accounting
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.
Derivative financial instruments are initially recognised in the balance sheet at cost and are subsequently
remeasured at their fair values. Positive and negative fair values of derivative financial instruments are
classified as ”Other receivables” and ”Other payables”, respectively.
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
Changes in the fair values of derivative financial instruments are recognised in the income statement unless
the derivative financial instrument is designated and qualify as hedge accounting.
Changes in the fair values of financial instruments that are designated and qualify as fair value hedges of a
recognised asset or a recognised liability are recognised in the income statement as are any changes in the
fair value of the hedged asset or the hedged liability related to the hedged risk.
Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of
expected future transactions are recognised in the fair value reserve under equity as regards the effective
portion of the hedge. The ineffective portion is recognised in the income statement. If the hedged transaction
results in an asset or a liability, the amount deferred in equity is transferred from equity and recognised in the
cost of the asset or the liability, respectively. If the hedged transaction results in an income or an expense,
the amount deferred in equity is transferred from equity to the income statement in the period in which the
hedged transaction is recognised. The amount is recognised in the same item as the hedged transaction
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
2024
1 January to
31 December
2023
2. Staff expenses
TDKK TDKK
Wages and salaries
6.621 6.122
Pensions
731 595
Other social security expenses
28 27
7.380 6.744
Average number of employees
4 4
Key Management Compensation
3. Financial income
Interest from group enterprises
14.987 20.319
Other financial income
1.471 3.562
Exchange adjustments
2.791 3.223
19.249 27.105
4. Financial expenses
Interest to group enterprises
729 328
Other financial expenses
81.231 81.610
Exchange adjustments
33 0
81.993 81.939
5. Tax on profit/loss for the year
Current tax for the year
(11.222) (10.359)
Current tax on profits for previous years
0 (901)
Deferred tax for the year
(570) (661)
(11.792) (11.920)
Refer to note 4 in the consolidated financial statements for the subsidiaries of the Group.
66
Notes
31 December
2024
31 December
2023
TDKK TDKK
6. Investments in subsidiaries
Cost at 1 January 2024
974.200 974.200
Cost at 31 December 2024
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:
116.453,90 DKK
Votes and ownership: 100%
Refer to note 31 in the consolidated financial statements for the subsidiaries of the Group.
67
Notes
31 December
2024
31 December
2023
TDKK TDKK
7. Deferred tax
Deferred tax at 1 January
1.959 1.297
Deferred tax reccognised in the statement of profit or loss
570 661
Deferred tax at 31 december 2.529 1.959
8. Share capital
Refer to note 19 in the consolidated financial statement for an overview of the changes in share capital.
9. Distribution of profit
1 January to
31 December
2024
1 January to
31 December
2023
TDKK TDKK
Retained earnings
-53.270 -43.855
10. 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
2024
31 December
2023
TDKK TDKK
Credit institutions
More than 5 years
0 0
Between 1 and 5 years
645.565 676.646
Long-term part
645.565 676.646
Other short term-debt to credit institutions
29.909 31.320
675.474 707.966
Other payables
Between 1-5 years
0 0
Long-term part
0 0
Other short-term payables
15.091 16.349
15.091 16.349
The recognised deferred tax asset comprises timing differences relating to amortization costs. In the years
ahead, the Company expect to realise the recognised deferred tax asset. On that basis, the asset has been
recognised at 31 December.
68
Notes
11. Related parties and disclosure of consolidated financial statements
Controlling interest Basis
Silverfleet Capital Partners LLP, The United Kingdom. Capital owner (Majority)
Transactions
Consolidated Financial Statements:
Consolidated Financial Statements for:
Name
Place of
Credit Services Holdings Limited Craven House
16 Northumberland Avenue
London
WC2N 5AP
The United Kingdom
Care DK BidCo ApS Abildager 11
2605 Brøndby
Danmark
12. Events after the balance sheet date
Refer to note 28 in the consolidated financial statements for more information.
13. Commitments and contingent liabilities
Refer to note 24 in the consolidated financial statements for more information.
The Danish group companies 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;
The Company has chosen only to disclose transactions which have not been made on an arm's length basis in
accordance with section 98(c)(7) of the Danish Financial Statements Act.
The Danish group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group.
The total amount of corporation tax payable by the Danish group companies amounts to TDKK 3.750. Moreover,
the Danish 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.
69
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