SKAKO A/S
CVR: 36440414
Bygmestervej 2
5600 Faaborg
Denmark
Order backlog
(DKKm)
202.6
(+227.0%)
Up from 61.9
Revenue
(DKKm)
237.4
(-4.3%)
Down from 248.2
EBIT before special items
(DKKm)
21.2
(-13.9%)
Down from 24.6
EBIT margin
8.9%
(-1.0pp)
Down from 9.9%
ROIC
11.7%
(-79.8pp)
Down from 91.5%
(impacted by divestment
of Concrete activities)
*
2024
Annual report
| Annual
report
2024
Page
2
CONTENTS
Management review
1. Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1 Letter to our shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.2 Key events 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.3 Financial key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.4 A landmark year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
1.5 Strategy and business model . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.6 Why invest in SKAKO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
1.7 Financial ambitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
1.8 Financial review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.9 Guidance 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2. Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.1 Company announcements 2024 . . . . . . . . . . . . . . . . . . . . . . . 26
2.2 Corporate social responsibility . . . . . . . . . . . . . . . . . . . . . . . . 27
2.3 Risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.4 Corporate governance and remuneration report . . . . . . . . . . . . . 35
2.5 Executive management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
2.6 Board of directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
2.7 Shareholder information . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3. Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.1 Statement by Management . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.2 Independent auditor’s report . . . . . . . . . . . . . . . . . . . . . . . . . 42
3.3 Consolidated financial statements . . . . . . . . . . . . . . . . . . . . . 47
3.4 Consolidated notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.5 Parent company financial statements . . . . . . . . . . . . . . . . . . . 98
3.6 Parent company notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Important notice about this document
This document contains forward-looking statements. Words such as believe, expect, may, will, plan, strategy, prospect, foresee, estimate, project, anticipate, can, intend,
outlook, guidance, target and other words and terms of similar meaning in connection with any discussion of future operation of financial performance identify forward-
looking statements. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the outlook set forth.
Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect. Due to the war in Ukraine, increased geopolitical
tension and uncertainty regarding interest rate and inflation, this guidance is subject to a higher-than-normal degree of uncertainty.
| Annual
report
2024
Page
3
SKAKO 2024 IN BRIEF
PLANT ORDERS
(
DKK
)
157,540
AFTERSALES
(
DKK
)
79,898
Order intake
(DKKm)
378.1
Up from 237.6
Order backlog
(DKKm)
202.6
Up from 61.9
Revenue
(DKKm)
237.4
Down from 248.2
EBIT before
special items
(DKKm)
21.2
Down from 24.6
EBIT margin before
special items
8.9%
Down from 9.9%
Earnings per share
(DKKm)
3.11
Down from 26.34
(impacted by
divestment of Concrete
activities)
Employees
132
Up from 129
ROIC
11.7%
Down from 91.5%
(impacted by
divestment of Concrete
activities)
Page
3
35%
46%
14%
5%
Recycling Minerals
Fasteners Others
Revenue
2024
DKK 237.4m
34%
66%
Revenue split
by plant orders
and aftersales
| Annual
report
2024
Page
4
1. HIGHLIGHTS
1.1 LETTER TO OUR SHAREHOLDERS
1.2 KEY EVENTS 2024
1.3 FINANCIAL KEY FIGURES
1.4 A LANDMARK YEAR
1.5 STRATEGY & BUSINESS MODEL
1.6 WHY INVEST IN SKAKO
1.7 FINANCIAL AMBITIONS
1.8 FINANCIAL REVIEW
1.9 GUIDANCE 2025
| Annual
report
2023
Page
4
| Annual
report
2024
Page
5
2024 overall did not deliver the expected revenue growth and profitability. This was below
our original guidance for 2024. However, we expect 2025 to show strong revenue growth of
30% -40% and EBIT to grow between 20% and 40%.
Thank you to all our shareholders and customers who believe in SKAKO and to all our
dedicated employees around the world who worked hard in 2024 in a difficult European
business climate. We look forward to deliver a strong growing business in 2025 and the years
to come.
1.1 Letter
to our shareholders
Solid profitability despite a tough European business climate in 2024 and strong
growth ahead!
2024 was characterized by a tough business climate but with a strong focus on building up
our order books for future growth. Despite decreasing revenue and a tough business climate
in Europe, we delivered a 9% EBIT margin due to our asset light business model.
2024 was the first year for the new SKAKO, focused on the Vibration businesses. The first
part of the year involved several activities to separate the two businesses and returning
dividends to shareholders, an extraordinary payment of DKK 122m and the ordinary
dividend of DKK 15m. The share price has reacted very positively to the focused SKAKO
business and the expectations for the future. The share is trading at levels above the average
share price before the sale of SKAKO Concrete.
2024 turned out to be a challenging year proving the value of strategically being exposed in
different markets and different segments. The fastener segment, which is very exposed in
the German market, started the year being hit by the slow demand from the car
manufacturing- and the building industries. We expected the market to turn more positive in
the second half of 2024, but this did not happen. Especially the fastener business saw an
unexpected large decline in the last two months of the year.
Minerals
The mineral business in Europe is developing slowly due to the higher interest rates in this
capital-intensive industry. Despite this we grew revenue in Minerals with 10% since our
customers made significant investments in Africa and in Europe many mineral processing
plants decided to replace outdated machinery. SKAKO was fortunate to win two large orders
with OCP in Morocco. We shall build parts of two new phosphate plants, identical to
previous deliveries. The total order value is DKK 150m and the project will be delivered
primarily in 2025 and 2026. This order will deliver strong revenue and EBIT growth in the
coming 24 months.
1.1 LETTER TO OUR SHAREHOLDERS
Jens Wittrup Willumsen
Chairman of the Board
Lionel Girieud
CEO
Recycling
SKAKO earlier identified the recycling business as a strong supplement to the existing
portfolio. The acquisition of DARTEK at the end of 2019 gave access to new technologies for
SKAKO. In combination with the experiences from the fastener and the mining segment,
SKAKO is today capable of supplying multiple tailormade solutions to the recycling industry.
This has proven to be very valuable in the growth efforts on new European markets in 2024,
where projects have been delivered to new important reference customers. Recycling was
unexpectedly impacted negatively by the hesitant market in the last two months of the year
where some orders were pushed in to the new year and therefor ended with a decline in
revenue of 3.5%. However, we still expect recycling to show strong growth in the coming
years given our strong product portfolio and the strong macro societal trends.
| Annual
report
2024
Page
6
Our purpose
We help our customers use and
reuse the planet’s resources in the
best possible way
Our values
We are dedicated
as our knowledge and competencies are inherited from
more than 60 years of experience and dedicated to your
needs
We are reliable
as we are known for setting the standards of quality and
accuracy within our industry
We are accessible
as we are well represented around the world and always
ready to help
Our brand promises
We develop sustainable,
technology-based and visionary
solutions
We meet customers with a future-oriented mindset and
engage our technical know-how, digitization and
innovative capacity in companies’ individual needs
We provide profitable business
We generate continuous and visible value for our
customers and our investors
We are big enough to cope -
and small enough to care
We match customers' needs and deliver scalable solutions
We commit ourselves in close
partnerships
We put our customers’ needs first and bring our service,
customer-adapted solutions and engineering expertise.
| Annual
report
2024
Page
7
IFAT, Munich
In May, SKAKO participated in one of the biggest recycling
exhibitions worldwide.
1.2 KEY EVENTS 2024
Extraordinary dividend to shareholder DKK 122m
The first part of the year involved several activities to separate the
two businesses and returning dividends to shareholders, an
extraordinary payment of DKK 122m
Pilot Plant in Denmark
The old storage room in Faaborg was completely renovated and
became the new test center in our DK-plant, different SKAKO-
machines are already in preparation to fill up the Pilot Plant to be
able to show the customer all possibilities with SKAKO-solutions
Q1
Q2 Q2
| Annual
report
2023
Page
7
| Annual
report
2024
Page
8
SOLIDS & RECYCLING Dortmund
In October 2024, an important exhibition for the solids handling
and recycling industry.
Biggest order ever to SKAKO for more than DKK 150m
SKAKO was fortunate to win two large orders with OCP in Morocco.
The total order value is DKK 150m and the project will be delivered
primarily in 2025 and 2026.
Q3 Q4 Q4
| Annual
report
2023
Page
8
1.2 KEY EVENTS 2024
New and bigger Pilot Plant in Spain
The new and bigger test center in our plant in Spain was finished
and is already in frequent use for the
different tests with customer products on all available SKAKO-
machines.
| Annual
report
2024
Page
9
1.3 Financial
key figures
1.3 FINANCIAL KEY FIGURES
Key figures and financial ratios – DKK
DKK Thousands 2024 2023 2022 2021 2020
INCOME STATEMENT
Revenue 237,438 248,159 237,535 203,200 167,600
Gross profit 72,885 74,734 68,486 57,000 47,000
Operating profit (EBIT) before special items 21,183 24,599 19,659 14,139 9,576
Special items - (1,934) (1,958) - -
Operating profit (EBIT) after special items 21,183 22,662 17,701 14,139 9,576
Net financial items (2,990) (3,330) (2,226) (4,004) (2,458)
Profit before tax 18,193 19,332 15,474 10,135 7,118
Profit after tax 13,600 13,774 12,385 8,676 6,300
Profit for the year discontinued activities (2,591) 67,463 12,689 2,183 7,946
Profit for the year 11,009 81,237 25,074 10,859 14,246
BALANCE SHEET
Non-current assets 62,833 55,001 88,599 84,216 84,265
Current assets 168,731 287,192 295,458 254,804 237,793
Assets 231,563 342,193 384,057 339,020 322,058
Equity 87,281 215,064 146,167 132,237 127,252
Non-current liabilities 15,647 14,454 26,473 29,122 38,455
Current liabilities 127,272 112,675 211,417 177,661 156,351
Net debt 37,297 (137,478) 20,997 26,987 40,187
Net working capital 79,259 54,684 110,681 105,703 111,295
OTHER KEY FIGURES
Investment in intangible assets 210 561 4,153 3,962 7,236
Investment in tangible assets 13,759 10,600 6,174 3,504 5,860
Cash flow from operating activities (CFFO) (24,135) 16,783 35,665 30,276 4,806
Free cash flow* (34,810) 12,159 28,850 22,810 (8,293)
Average number of employees 132 129 126 125 125
* Free cash flow in 2023 exclusive proceeds from sales of Concrete activities
| Annual
report
2024
Page
10
1.3 Financial
key figures
Figures for 2020 and 2021 contains the “old” SKAKO Group including SKAKO Vibration and the discontinued business SKAKO Concrete.
For calculation of financial ratios please see note 26. Net working capital is calculated as Inventory, Trade receivables and Contract assets less Contract liabilities and Trade
payables. Backlog represents revenue from signed contracts or orders executed but not yet completed or performed in full.
Key figures and financial ratios – DKK CONTINUED
DKK Thousands 2024 2023 2022 2021 2020
FINANCIAL RATIOS
Gross profit margin 30.7% 30.1% 28.8% 25.4% 23.2%
Profit margin (EBIT margin) before special items 8.9% 9.9% 8.3% 5.6% 4.5%
Liquidity ratio 132.6% 254.9% 126.2% 143.4% 152.1%
Equity ratio 37.7% 62.8% 37.5% 39.0% 39.5%
Return on equity 7.3% 42.5% 16.3% 10.2% 8.6%
ROIC 11.7% 91.5% 16.9% 10,3% 8,3%
Financial leverage 42.1% -69.9% 17.8% 20.4% 31.6%
Net debt to EBITDA 1.3 -4.7 0.6 1.0 1.8
Net debt to EBITDA after extraordinary dividends 1.3 -0.5 - - -
NWC/Revenue 33.4% 22.0% 25.5% 29.1% 33.1%
Earnings per share (EPS) 3.51 26.34 5.73 2.8 2.0
Equity value per share 28.32 69.74 27.38 42.9 41.3
Share price 81.2 103.0 62.6 55.2 49.8
Price-book ratio 2.9 1.4 1.3 1.3 1.2
Market cap 255,983 319,960 194,461 171,474 154,700
Order backlog 202,563 61,942 70,700 54,300 58,600
| Annual
report
2024
Page
11
1.3 Financial
key figures
Key figures and financial ratios – EUR*
EUR Thousands 2024 2023 2022 2021 2020
INCOME STATEMENT
Revenue 31,836 33,305 31,866 27,275 22,497
Gross profit 9,773 10,030 9,188 7,651 6,309
Operating profit (EBIT) 2,840 3,301 2,637 1,898 1,285
Special items - (260) (263) - -
Operating profit (EBIT) after special items 2,840 3,041 2,375 1,898 1,285
Net financial items (401) (447) (299) (537) (330)
Profit before tax 2,439 2,595 2,076 1,360 955
Profit after tax 1,823 1,849 1,662 1,165 846
Profit for the year discontinued activities (347) 9,055 1,702 293 1,066
Profit for the year 1,476 10,903 3,364 1,457 1,911
BALANCE SHEET
Non-current assets 8,423 7,380 11,913 11,325 11,327
Current assets 22,618 38,532 39,728 34,264 31,964
Assets 31,041 45,912 51,640 45,589 43,291
Equity 11,700 28,855 19,654 17,782 17,105
Non-current liabilities 2,097 1,939 3,560 3,916 5,169
Current liabilities 17,061 15,118 28,430 23,890 21,017
Net debt 5,000 (18,446) 2,824 3,629 5,402
Net working capital 10,625 7,337 14,884 14,214 14,960
OTHER KEY FIGURES
Investment in intangible assets 28 75 558 533 973
Investment in tangible assets 1,845 1,421 828 471 788
Cash flow from operating activities (CFFO) (3,240) 2,250 4,785 4,071 644
Free cash flow * (4,672) 1,630 3,871 3,067 (1,113)
Average number of employees 132 129 129 129 129
* Free cash flow exclusive proceeds from sales of Concrete activities
| Annual
report
2024
Page
12
1.3 Financial
key figures
Figures for 2020 and 2021 contains the “old” SKAKO Group including SKAKO Vibration and the discontinued business SKAKO Concrete.
Net working capital is calculated as Inventory, Trade receivables and Contract assets less Contract liabilities and Trade payables. Backlog represents revenue from signed
contracts or orders executed but not yet completed or performed in full.
*On the translation of key figures and financial ratios from Danish kroner to euro, Danmarks Nationalbank’s rate of exchange at 31 December 2024 of 746.00 has been
used for balance sheet items, and the average rate of exchange of 745.82 has been used for income statementand cash flow items.
Key figures and financial ratios – EUR* CONTINUED
EUR Thousands 2024 2023 2022 2021 2020
FINANCIAL RATIOS
Gross profit margin 30.7% 30.1% 28.8% 25.4% 23.2%
Profit margin (EBIT margin) 8.9% 9.9% 8.3% 5.6% 4.5%
Liquidity ratio 132.6% 254.9% 126.2% 143.4% 152.1%
Equity ratio 37.7% 62.8% 37.5% 39.0% 39.5%
Return on equity 7.3% 42.5% 16.3% 10.2% 8.6%
ROIC 11.7% 91.5% 16.9% 10,3% 8,3%
Financial leverage 42.1% -69.9% 17.8% 20.4% 31.6%
Net debt to EBITDA 1.3 -4.7 0.6 1.0 1.8
Net debt to EBITDA after extraordinary dividends 1.3 -0.5 - - -
NWC/Revenue 33.4% 22.0% 25.5% 29.1% 33.1%
Earnings per share (EPS) 0.47 3.53 0.77 0.38 0.27
Equity value per share 3.80 9.36 3.67 5.77 5.55
Share price 10.88 13.82 8.39 7.42 6.69
Price-book ratio 3.3 1.4 1.3 1.3 1.2
Market cap 34,314 42,929 26,067 23,058 20,795
Order backlog 27,153 8,311 9,477 7,289 7,866
| Annual
report
2024
Page
13
1.4 Strategy
& business
model
Morocco: A Key Market for SKAKO Vibration
SKAKO Vibration has been actively operating in the Moroccan market since the
early 2000s and has strengthened its presence by establishing a local subsidiary
over a decade ago. This long-term commitment underscores the strategic
importance of Morocco to SKAKO Vibration’s business and its ambition to expand
its footprint in North Africa.
Morocco is one of the most economically developed nations on the African
continent, boasting an impressive average annual GDP growth rate of 5.1% over
the last decade. A major factor contributing to this growth is its vast natural
resources, particularly phosphate rock. The country holds an estimated 70% of the
world’s phosphate rock reserves, making it a dominant player in the global
phosphate industry. These reserves are managed and exploited by the OCP Group
(formerly known as "Office Chérifien des Phosphates"), a state-owned enterprise
that plays a crucial role in the national economy. Recognizing the importance of
modernizing and expanding its operations, OCP launched an ambitious five-year
investment plan worth $13 billion in 2023. This substantial investment aims to
enhance production capacities, optimize transport logistics, and integrate
sustainable practices into the phosphate extraction and processing chain.
Challenges in Raw Material Transportation for the Mining Industry
One of the most significant challenges faced by mining companies worldwide is the
transportation of large quantities of raw materials from extraction sites to
processing facilities and export terminals. This challenge is particularly pronounced
in Morocco, where phosphate mines are located inland, far from industrial
processing centers and export hubs.
To address this issue, OCP has implemented an innovative and efficient
transportation solution: a phosphate slurry pipeline system. In this process, raw
phosphate is mixed with water to form a slurry, which is then transported through
a network of pipelines that stretch across Moroccan territory. Upon reaching its
destination—often hundreds of kilometers away—the phosphate slurry undergoes
a dehydration process to revert it to a solid state, making it ready for further
processing and export
SKAKO Vibration’s Contribution to Phosphate Processing
SKAKO Vibration plays a critical role in the initial stage of this innovative transport
system. The company provides specialized equipment designed to facilitate the dilution
of phosphate before it is pumped into the pipeline system. SKAKO’s high-performance
technology ensures a smooth and efficient process, optimizing the consistency of the
phosphate slurry and enhancing the overall effectiveness of the transportation system.
1.4 A LANDMARK YEAR
Example of SKAKO scrubbing equipment,
currently operating in Morocco
Example of SKAKO scrubbing equipment,
currently operating in Morocco
| Annual
report
2024
Page
14
Extensive Experience in Phosphate Scrubbing
Thanks to its extensive experience in phosphate processing, SKAKO Vibration has earned
the trust of key industry players and secured significant contracts. In 2024, the company
received two major orders to supply equipment for two additional scrubbing lines,
representing a total contract value exceeding DKK 150 million.
Each scrubbing line is composed of two essential pieces of equipment:
• A “large washing drum”, which ensures thorough dilution of phosphate into water to
create a homogeneous slurry.
• A “high-capacity vibrating screen”, which plays a crucial role in separating unwanted
stones and impurities from the phosphate mixture.
This set of machines is integrated with advanced electronic components that allow precise
control over their operation, ensuring maximum efficiency and reliability. The success of
these new scrubbing lines will be based on the proven performance of a previous scrubbing
line supplied by SKAKO in earlier years, which has demonstrated its effectiveness in
phosphate processing.
Future Project Timeline and Impact
The execution of this large-scale project is planned over the next two years. While initial
development and preparation activities took place end of 2024, the most substantial
impact on SKAKO Vibration’s operations and revenue is expected to be realized in the
following years as the scrubbing lines become fully operational.
With its advanced technological solutions, extensive experience, and strong local
presence, SKAKO Vibration continues to be a key contributor to Morocco’s phosphate
industry. As the demand for high-quality phosphate processing solutions grows, SKAKO
remains committed to delivering innovative and efficient systems to support OCP and
other mining enterprises in achieving their long-term objectives.
A LANDMARK YEAR
Raw phosphate & water
Phosphate slurry
(toward the pipeline)
Unwanted stones
(waste)
| Annual
report
2024
Page
15
SKAKO Dartek
Recycling – Expert
Center
SKAKO Vibration France
Minerals – Expert Center
SKAKO Vibration Denmark
Fasteners – Expert Center
1.4 Strategy
& business
model
Business areas
SKAKO Vibration develops, designs, and sells equipment for the Recycling,
Minerals, and Fasteners industries. Our engineering, assembly, and testing facilities
are located in Faaborg (Denmark), Strasbourg (France), and San Sebastian (Spain).
Our products are built on deep application expertise and proprietary technology.
With a flexible production model, SKAKO Vibration sources components both
internally and from external suppliers. Our primary markets are the EU and North
Africa, where we have branch offices, while we maintain a presence in the USA,
South America, and Asia through partnerships with local companies.
We drive our success through a strong portfolio of high-quality products and a
dynamic organization with extensive design and application know-how.
Strategy
As a leading supplier of vibratory equipment, SKAKO Vibration provides cutting-
edge solutions centered around vibration technology, which are integral to our
customers' industrial processes.
In the Fasteners industry, we are the preferred partner in targeted markets,
particularly among key players in Europe, Asia, and the US.
In the Minerals sector, we have a strong presence, notably in phosphate mining in
North Africa and the construction industry in Europe.
Our recent focus has been on expanding in the Recycling sector, supported by our
comprehensive product range dedicated to this industry. The acquisition of SKAKO
Dartek at the end of 2019 has further strengthened our position.
Since the end of the COVID-19 pandemic, demand from the recycling industry has
surged, driving sustained growth.
As waste recycling becomes increasingly crucial, we anticipate an accelerated growth
trend in this market over the coming decades.
Consequently, we are developing a strategy based on our three core business segments,
with Recycling and Minerals as the primary growth drivers. Our objective is to achieve at
least 50% growth by the end of 2028 while maintaining an EBIT ratio of around 10%.
1.5 STRATEGY & BUSINESS MODEL
| Annual
report
2024
Page
16
Our approach is to collaborate with key players in the Fasteners, Minerals, and Recycling
industries, providing industrial solutions that address major global transformations.
The Minerals Industry: A Sector in Transformation
The Minerals industry is undergoing significant change, largely driven by the shift toward
green growth.
On one hand, a global race for mineral resources is underway, as countries seek to secure
essential materials like lithium, nickel, copper, and rare earth elements for the green
transition. Recent crises have further highlighted the importance of securing supply chains
for raw materials. These trends will drive increased investment in the sector in the coming
years.
On the other hand, the construction and demolition material recycling sector is rapidly
emerging as a key growth area, fueled by private investments and public incentives. Our
highly reliable and efficient sorting and washing equipment plays a critical role in industrial
processes within this sector.
The Fasteners Industry: Impact of Automotive Sector Turbulence
The European automotive industry is currently facing economic challenges due to multiple
factors:
• Reduced vehicle renewal rates due to high prices and an uncertain economic climate.
• Slowing electric vehicle sales.
• Intensified competition from Chinese manufacturers.
These conditions have led to lower investment levels in the Fasteners industry, negatively
impacting our sales in 2024. We anticipate stable revenue in this segment for 2025, followed
by a rebound once market uncertainties subside. The demand for stronger, lighter, and more
advanced fasteners remains high, necessitating future investments that will benefit SKAKO
Vibration, given our strong reputation as a leading supplier in this industry.
Recycling: The Primary Growth Driver
Private sector investments in the Recycling industry has grown by more than 15% p.a. over
the past five years, and this trend is expected to continue, especially in Europe, where
ambitious circular economy policies are in place.
Given that our core sales network is based in Europe, where unified recycling regulations and
initiatives exist, we are focusing our resources on expanding our presence in this market.
Leveraging the expertise of SKAKO Dartek and the broader group’s knowledge in the
Minerals and Fasteners industries, we are continuously developing a specialized product
range tailored to the needs of Recycling companies:
• Size-based sorting: Our equipment classifies recycled materials by size 1.
• Density-based sorting: Our solutions separate materials based on density. 1
• Washing: Our systems effectively clean recycled materials. 2
• Controlled distribution: Our equipment ensures a smooth, uniform, and regulated
material flow. 3
By capitalizing on these capabilities, SKAKO Vibration is well-positioned to drive innovation
and growth in the Recycling sector while strengthening its leadership in Fasteners and
Minerals.
1
Sorting is essential for the Recycling sector and all sorting techniques are used and complement each
other in the industrial processes of this segment.
2
Washing is one of the key operations in the recycling of construction & demolition materials and our
long experience in the Minerals industry positions the company as one of the European leaders in this
field.
3
Most sorting systems (optical or magnetic for example) need to be fed correctly and SKAKO Vibration
has developed a remarkable know-how in this field, in particular thanks to the challenges posed by our
customers of the Fasteners sector.
STRATEGY & BUSINESS MODEL
| Annual
report
2024
Page
17
1.5 Why invest
in SKAKO
1.6 WHY INVEST IN SKAKO
+ 50 years of knowhow with a successful asset
light production model
SKAKO runs a focused business based on vibration technology and advanced
conveyer solutions. We operate with an asset light model based on substantial
outsourcing to trusted partners, build up over years, increasing profitability.
At SKAKO we aim to make our customers’ production flow;hassle-free, reliable, and
sustainable. We use our know-how to define the industry and develop visionary
sustainable and technology-based solutions.
Based on this model, we have established a comprehensive installed fleet of SKAKO
machinery all over the world and we provide our customers with support, spares
and retrofit, whenever needed. Providing continued value to our customers,
partners, and shareholders.
The SKAKO asset light business model has proven to be sustainable, even under
challenging conditions. Despite also being impacted by Covid-19, SKAKO succeeded
in remaining profitable during the pandemic, and has since continued to grow, also
despite tougher market conditions after the war in Ukraine.
Dividend stock with solid capital structure
It is our ambition to continuously deliver a strong dividend to our shareholders, while
keeping a capital structure target of net debt to EBITDA of up to 2.5.
Solid presence in global growing markets
The markets in which SKAKO operates, are solid to strong growth markets. The
demand for building materials as well as industrial machinery has seen growth for
decades, and there are currently no signs of long-term reduction of this growth.
• Recycling – This segment’s growth is driven by a global need to reuse our
planets resources and are seeing large investments in key European markets.
Recycling segment is expected to double by end of 2028.
• Minerals/Mining – This segment’s growth is driven by the green transition and
is expecting to grow with 5% p.a., but with massive investments, most recently
demonstrated by the order SKAKO received of DKK 150m from OCP in
Morrocco.
• Fasteners – this segment is driven by the automotive and building industry,
which in 2024 has seen negative growth particularly due to the German
market. However, this segment is still expected to have an average growth of
5% p.a.
In all segments, SKAKO has a large installed base of equipment which creates a
constant sale of spare parts giving an attractive aftersales-share of 34%. And with
a strong potential to expand the business into new market segments, we are
convinced that the potential for future profitable growth is strong
| Annual
report
2023
Page
18
1.7 FINANCIAL AMBITIONS
1.6 Financial ambitions
• Our ambition is to grow revenue with 50% over the period 2023 to 2028
with an operating margin (EBIT) of around 10%.
• After the decline in 2024 revenue is expected to grow with 30-40% in
2025 driven by the two large orders for OCP in Morocco.
• Despite the decline in revenue in 2024 revenue in Recycling is expected
to double by end of 2028 with a backend loaded profile given SKAKO’s
strong order portfolio and macro societal trends.
Financial ambitions for the Vibration
activities
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0
50
100
150
200
250
300
350
400
2023 2024 Guidance
2025
2026 2027 2028
EBIT%
mDKK
Revenue EBIT margin EBIT margin, ambition
* Guidance 2025: Grey area shows the
guidance interval 30-40% revenue growth
| Annual
report
2024
Page
19
1.7 Financial
review
1.8 FINANCIAL REVIEW
DKK
Thousands 2024 2023 Change
Plant
order revenue 157,540 170,302 -7.5%
Aftersales
revenue 79,898 77,857 2.6%
Total
revenue 237,438 248,159 -4.3%
Production
costs (164,553) (173,425) -5.1%
Gross
profit 72,885 74,734 -2.5%
Gross
profit margin 30.7% 30.1% 0.6pp
Distribution
costs (28,384) (26,010) 9.1%
Administrative
expenses (23,317) (24,126) -3.4%
Operating
profit before special items (EBIT) 21,183 24,599 -13.9%
Operating p
rofit margin before special items (EBIT margin) 8.9% 9.9% -1.0pp
Special items
- (1,934) NA
Operating
profit after special items (EBIT) 21,183 22,662 -6.5%
Profit for the
year before discontinued activities 13,600 13,774 -1.3%
Profit for
discontinued activities (2,591) 67,463 -103.8%
Profit
for the period 11,009 81,237 -86.4%
Order
backlog beginning of period 61,942 72,550 -14.6%
Order
intake 378,059 237,551 59.1%
Revenue
(237,438) (248,159) -4.3%
Order
backlog end of period 202,563 61,942 227.0%
Market development
The market for Vibration in 2024 was impacted negatively by increasing
uncertainty and slow macro-economic growth in Europe. Especially
Fasteners was negatively impacted by a decline in activities in the
automotive industry in Germany as well as the subdued European
construction and building industry.
Despite the uncertain European market Minerals showed a strong growth
of 10% in 2024 and is expected to accelerate this growth in 2025 due to
the two contracts with OCP amounting of DKK 150m. Many resources
were committed to bidding for these contracts and preparing for delivery
of the projects in 2025 and 2026.
Previous years strong growth in Recycling turned into a slight
decline in 2024 due to a more uncertain and hesitant market with
some orders pushed into 2025 resulting in a large decline in Q4.
Despite decreasing revenue and a tough business climate in Europe
SKAKO delivered an EBIT of DKK 21.2m and EBIT margin of around
9%. This shows the robustness of SKAKO’s assets light business
model.
The very strong order inflow in 2024 from the two OCP contracts
will ensure strong growth in both revenue and EBIT in 2025 despite
the uncertain European marked.
| Annual
report
2024
Page
20
1.7 Financial
review
1.8 FINANCIAL REVIEW
Revenue
Activity in the European automotive and construction industries developed more
negatively than expected in the second half of the fourth quarter, which
particularly affected the Fasteners customer segment. As a result, revenue for 2024
decreased by 4.3% driven by a 15% decline in Q4 2024. This was driven by a large
decline in Fasteners of 15%, a decline of 4.4% in Recycling and decline in other of
47%. Minerals showed growth of 10% to some extent impacted by the OCP
contract but also growth in other African countries due to significant investments
from customers. In Europe, many mineral processing plants decided to replace
outdated machinery, and our expertise in custom-made equipment was key to
securing new orders.
The decrease in revenue was driven by a decline in plant sales of 7.5% while the
more stable and more profitable aftersales increased by 2.6%.
Revenue for 2024 declined with 4.3% which was below our guidance of 8
November 2024 (expected revenue development in the range of -2% to 1%)
Order intake and backlog
Order intake was DKK 378m, an increase of 59% compared to 2023 driven by the
largest order ever of DKK 150m with OCP in Morocco.
Order backlog was DKK 203m compared to DKK 62m in 2023 equal to an increase
of 227%.
Gross profit and margin
Gross profit decreased by 2.5% to DKK 73m in 2024, compared to DKK 75m in 2023.
The decrease was driven by lower revenue and an increase in gross profit margin of
0.6pp to 30.7% due to a higher share of aftersales with higher margins than plant
sales.
Capacity costs
Distribution costs increased with 9.1% mainly due to investments in the salesforce to
enable future growth especially in Recycling. Administrative expenses declined with
3.4% despite salary increases of around 4%. This was due to employees participating
in training courses with reimbursement due to low activity level, decrease in
employees in administration and decrease in marketing expenses.
Operating profit
Operating profit before special items decreased by 14% to DKK 21.2m. This was
driven by the decrease in revenue of 4.3%, and a decrease in margin of 1.0pp due to
the investment in the salesforce to enable future growth.
The realized operating profit of DKK 21.2m is equal to the preliminary non-audited
numbers communicated on 21 February 2025 but below the latest guidance of DKK
24-28m communicated on 8 November 2024.
Net financial items
Net financial items amounted to a cost of DKK 3.0m compared to DKK 3.3m in 2023
and consist mainly of interest income, interest expenses along with realized and
unrealized foreign exchange losses.
Tax
The income tax expense for the year amounted to DKK 4.6m (2023: DKK 5.6m),
corresponding to an effective tax rate of 25% since the tax rate in France and Spain is
higher than in Denmark (2022: 29%).
REVENUE FY2024 FY2023 Change Q4 2024 Q4 2023 Change
Fasteners 32,326 38,077 -15.1% 8,113 10,516 -22.9%
Minerals 109,549 99,187 10.4% 27,769 34,296 -19.0%
Recycling 82,804 86,619 -4.4% 21,639 23,814 -9.1%
Other 12,759 24,277 -47.4% 2,985 2,271 31.4%
Total 237,438 248,159 -4.3% 60,506 70,897 -14.7%
| Annual
report
2024
Page
21
1.7 Financial
review
1.8 FINANCIAL REVIEW
Profit for the year for continuing operations
Profit for the year before tax decreased by 5.9% to DKK 18.2m while profit for the
year decreased by 1.3% to DKK 13.6m.
Result of the discontinued operations
The finalization of the transaction for the divestment of the Concrete activities
amounted to DKK 2.6m and was related to final re-payments and related
transaction costs.
Result including discontinued operations
The result including discontinued operations amounted to DKK 11m compared to
DKK 81m in 2023 where DKK 67.5m relates to discontinued activities.
Earnings per share
SKAKO Group delivered a result before discontinued activities of DKK 13.6
compared to DKK 13.7 in 2023 and earnings per share decreased to DKK 3.5 in 2024
compared to DKK 26.3 in 2023 which was positively impacted by the divestment.
Balance sheet
As of 31 December 2024, the Group’s assets totalled DKK 232m compared to DKK
342m last year. The decrease in assets is primarily due to the proceeds in 2023
from the divestment of the Concrete activities which had not yet been distributed
to shareholders.
Non-current assets increased by DKK 8m to DKK 63m, while current assets
decreased with DKK 119m to DKK 169m due to the proceeds in 2023 from the
divestment of the Concrete activities.
Net debt was DKK 37m compared to a positive net debt of DKK 137m in 2023. The
large decrease in net debt is mainly due to the proceeds in 2023 from the
divestment of the Concrete activities which was distributed to shareholders end of
February 2024.
Return on invested capital
In 2024, return on invested capital amounted to 11.7% compared to 91.5% in 2023
which was impacted by the divestment of the Concrete activities.
Net working capital
Net working capital increased by DKK 25m compared to the year before. The
increase is primarily due to a higher level of inventories to mitigate supply chain
challenges and invoicing of the first payments from the OCP projects at the end of
Q4 2024 giving higher trade receivables.
Cash flow development
Cash flow from operating activities amounted to DKK (24)m compared to DKK 96m
for 2023 which included proceeds from divestment of the Concrete activities. The
negative cash flow in 2024 was driven by the increase in net working capital by DKK
24m.
Capital structure
Net interest bearing debt / EBITDA was 1.3 compared to negative 4.7 in 2023 which
was impacted by the proceeds from the divestment of the Concrete activities since
these had not yet been distributed to shareholders at the end of 2023.
The gearing level is well below our gearing target of up to 2.5 and shows that
SKAKO has financial capacity to pay out dividends in the future and to pursue
acquisitions according to our strategy.
| Annual
report
2024
Page
22
1.8 FINANCIAL REVIEW
Equity
The Group’s equity was DKK 87m on 31 December 2024 (DKK 215m on 31 December 2022)
matching an equity ratio of 37.7% (62.8% on 31 December 2023). The change in equity is mainly
due to profit for the year of DKK 11.0m deducted by ordinary and extraordinary dividends in 2024
where more than DKK 137m was distributed to shareholders.
Dividends
Based on the results in 2024 and capital structure of SKAKO A/S as of 31 December 2024, the Board
of Directors recommends a dividend distribution of DKK 2.5 per share (2023: DKK 5 per share)
corresponding to 72% of profit for the year before discontinued activities and a total dividend
distribution of DKK 7.9m. With a share price of DKK 81.2 as of 31 December 2023, this corresponds
to a dividend yield of 3.1%.
Ex-dividend date: 25 April 2025
Record date: 28 April 2025
Payment date: 29 April 2025
Interim dividends
In February 2024, an extraordinary dividend of DKK 39.3 per share was paid to shareholders
following the divestment of the Concrete activities.
The Parent company
The result before interest and tax in the Parent company amounts to a profit of DKK 10.9m. The
profit comes from merger of subsidiaries whereas the costs primarily come from remuneration of
the Board of Directors and costs for warrants.
Events after the balance sheet date
There have been no events that materially affect the assessment of this Annual Report 2024 after
the balance sheet date and up to today.
| Annual
report
2024
Page
23
1.7 Financial
review
DKK
Thousands Q42024* Q42023* Change
Plant
order revenue 36,617 39,721 -7.8%
Aftersales
revenue 23,889 31,176 -23.4%
Total
revenue 60,506 70,897 -14.7%
Production
costs (38,888) (50,024) -22.3%
Gross
profit 21,618 20,873 3.6%
Gross
profit margin 35.7% 29.4% 6.3pp
Distribution
costs (6,658) (6,813) -2.3%
Administrative
expenses (7,808) (6,434) 21.4%
Operating profit (EBIT)
7,151 7,548 -5.3%
Profit margin (EBIT margin)
11.8% 10.6% 1.2pp
Profit for the
period before discontinued activities 4,157 4,558 -8.8%
Profit/(
loss) for discontinued activities (1,006) 59,572 -101.7%
Profit
for the period 3,151 71,903 -95.6%
Order
backlog beginning of period 212,680 72,107 195.0%
Order
intake 50,389 60,732 -17.0%
Revenue
60,506 70,897 -14.7%
Order
backlog endof period 202,563 61,942 227.0%
*Quarterly
figures are unaudited
Consolidated Q4 – 2024 result for continued activities
| Annual
report
2024
Page
24
Guidance 2025
Despite the uncertain marked conditions in Europe, strong growth in both revenue
and operating profit (EBIT) is expected due to the two major contracts with OCP in
Morocco. The development in the order backlog has been positive with an increase
of 227% compared to the previous year.
Guidance for 2025 is:
• Revenue is expected to grow by 30-40%
• Operating profit (EBIT) before special items is expected to be DKK 27-31m
As a result of the geopolitical turmoil and uncertain marked conditions in Europe,
expectations are subject to a higher than usual degree of uncertainty.
| Annual
report
2023
Page
24
1.9 GUIDANCE 2025
| Annual
report
2024
Page
25
2. CORPORATE
GOVERNANCE
2.1 COMPANY ANNOUNCEMENTS IN 2024
2.2 CORPORATE SOCIAL MANAGEMENT
2.3 RISK MANAGEMENT
2.4 CORPORATE GOVERNANCE AND REMUNERATION REPORT
2.5 EXECUTIVE MANAGEMENT
2.6 BOARD OF DIRECTORS
2.7 SHAREHOLDER INFORMATION
| Annual
report
2023
Page
25
| Annual
report
2024
Page
26
3.1 Company
announcements
2024
2.1 COMPANY ANNOUNCEMENTS 2024
Main company announcements in 2024 and 2025
26 February 01 – SKAKO pays an extraordinary dividend higher than expected of DKK 122m due to the sales of
activities in SKAKO Concrete and expects to pay an ordinary dividend of DKK 15m.
14 March 02 – Annual report 2023
26 March 03 – Notice about ordinary general meeting
17 April 04 – Course of general meeting on 17 April 2024
22 May 05 – Interim report for the first quarter of 2024
30 May 06 – SKAKO increases share capital after use of warrants
31 May 07 – Total number of shares and voting rights on 31 May 2024
4 August 08 – SKAKO Vibration wins biggest order ever of more than DKK 150m on cleaning equipment for
phosphate mining plants in Morocco
21 August 09 – Interim report for the first two quarters of 2024
8 November 10 – Update on expectations for 2024
13 November 11 – Interim report for the first three quarters of 2024
19 December 12 – Financial calendar 2025
21 February 2025 1 – Preliminary non-audited figures for 2024 and guidance for 2025
28 February 2025 2 – Change in Executive Management
The company announcements are available on the company website:
https://skako.com/about/investor-relations/#company_announcements
| Annual
report
2024
Page
27
3.2 Corporate
social
responsibility
2.2 CORPORATE SOCIAL RESPONSIBILITY
Report on Corporate Social
Responsibility, cf. Section 99a of the
Danish Financial Statements Act
SKAKO strives to operate its business in a responsible manner and wants to
comply with the legislation in all the countries where operations are conducted.
Furthermore, compliance with Human Rights and consideration for the
environment are considerable focus areas for the Group. SKAKO’s work with
corporate social responsibility is based on value creation and risk management.
SKAKO has chosen to focus its work on social responsibility within five areas:
Environment, human rights, working environment, anti-corruption, and equality.
The policies below have been approved by the Board of Directors.
For a description of SKAKOs strategy and business model please see section 1.5.
Result for 2024 compared to goal for 2024
SKAKO realized 2.2% higher consumption of kWh in 2024 compared to the goal of
506,000 kWh. In 2024 we had the full year effect of solar collectors in France. In
France, the production of electricity based on the solar collectors was much higher
than the use of electricity.
Results & goals
Goal
for
2024
Result 2024 Result 2023 Result 2022 Result 2021
506,000 516,886 790,316 804,777 848,268
Policy
SKAKO seeks to reduce its impact on the environment by reducing
energy consumption year by year. The Group is a know-how and engineering
company with production of key components. The production mainly consists of
assembling and testing and does not include energy-demanding or polluting
processes. All surface treatment processes are outsourced to sub-suppliers. A part
of SKAKO’s supplier “Code of Conduct” addresses impact on the environment. See
under Human rights for more information about the supplier “Code of Conduct”.
Furthermore, SKAKO has taken measures to reduce its energy consumption by,
for example, installing LED lighting in its facilities and installing solar roof panels.
Environment
Actions
SKAKO will reduce consumption of kWh year by year in its production sites.
KPI
Consumed kWh in production sites.
Goal for 2025 is 500,000 kWh.
The SKAKO Group aims to lower the consumption of kWh year by year even though
the business is expected to grow.
Risks
It is not possible to decrease energy consumption fast enough due to high growth in
activities.
| Annual
report
2024
Page
28
3.2 Corporate
social
responsibility
Working environment
Policy
Our employees are our most valuable asset and key to providing high-quality
products and services to our customers. It is vital to SKAKO’s future success that
SKAKO is a safe, motivating and developing place to work.
Actions
1. The sick rate among employees is monitored and we follow up on employees
with high absence.
2. SKAKO will produce an annual employee satisfaction survey to monitor the
development in employee satisfaction. Processes are in place to ensure that
low-scoring departments receive guidance on how to improve employee
satisfaction.
3. Number of on-the-job accidents is measured.
4. All employees must have at least one yearly performance appraisal interview.
KPIs
1. The average sick rate among employees.
2. An average employee satisfaction score of at least 3.5.
3. Number of on-the-job accidents.
4. Percentage of performance appraisal interviews each year.
Results for 2024 compared to goals for 2024
1. SKAKO reduced sick days to 4.0 days well below our goal of 5.0 and below 5.0
days for the SKAKO Group including Concrete activities.
2. In 2024 the employee survey resulted in an employee satisfaction of 3.8 which
was above our goal of at least 3.5.
3. In 2024, SKAKO had 6 on-the-job accidents. Management does not find this
satisfactory although it has been minor on-the-job accidents. Management
will continue to work on eliminating on-the-job accidents.
4. In 2024, the score on appraisal interviews was 85% which was slightly below our
goal of 90%. As this is a vital part of the employee well-being, we will keep
pushing for this.
Results & goals
Goal for
2024
Result
2024
Result
2023
Result
2022
Result
2021
1* 5.0 4.0 5.0 5.5 8.4
2** >3.5 3.8 3.8 4.1 N/A
3 0 6 8 10 5
4 90% 85% 85% 85% 85%
Risks
1. The rate of illness increases due to an epidemic.
2. Internal information on corrective actions is not sufficient.
3. Unintentional violations of safety standards.
4. Performance appraisal interviews are not carried out on time due to high
workload.
*Measured as total number of sick days divided by the average number of employees in the year
**On a scale from 1 to 5, where 5 is the most positive score
Goal for
2025
1* 4.5
2** >3.5
3 0
4 90%
| Annual
report
2024
Page
29
3.2 Corporate
social
responsibility
Anti-corruption and bribery
Policy
SKAKO seeks to avoid corruption and bribery by creating a framework that secures
that employees at SKAKO are able to abide to laws and regulations, and that there
will never exist any doubt with regards to a SKAKO employee’s impartiality.
Actions
1. SKAKO enforces a gift policy.
2. SKAKO has introduced an internal whistle blower scheme to give
employees the opportunity to report on corruption, bribery and other matters
while being anonymous.
3. SKAKO has developed an Employee “Code of Conduct” e-learning
that describes the way SKAKO expects all its employees to act in accordance
with laws and regulations. The employee “Code of Conduct” also describes
usage of the whistle blower scheme. Every year all SKAKO employees
must conduct the Employee “Code of Conduct” e-learning session.
4. Whistle blower scheme will in the future also be available for external parties.
KPIs
2. No reported violations of anti-corruption laws and regulations, and SKAKO
Employee Code of Conduct.
3. All employees to pass SKAKO’s Employee “Code of Conduct” e-learning.
Results for 2024 compared to goals for 2024
1. SKAKO A/S has maintained its gift policy throughout 2024.
2. SKAKO A/S has received no reported violations of anti-corruption laws
and regulations, and SKAKO Employee Code of Conduct in 2024.
3. 85% of SKAKO employees have passed the SKAKO Employee Code of
Conduct e-learning. The main reason for the result not being 100% is new
hires in late 2024 who did not complete the Code of Conduct session yet.
4. The whistle blower scheme was not as planned made available to external
parties this will be implemented in 2025. Furthermore, the whistle blower
scheme is part of the SKAKO Employee Code of Conduct e-learning.
Results & goals
Risks
2. Employees lack knowledge of the whistle blower scheme.
3. Employee “Code of Conduct” e-learning is not prioritized.
Goal for
2024
Result for
2024
Result for
2023
Result
2022
2 0 0 0 0
3 100% 85% 75% 80%
| Annual
report
2024
Page
30
3.2 Corporate
social
responsibility
Human rights
Policy
To SKAKO, respect of human rights is about the company’s own
employees’ conditions and securing that suppliers and sub-suppliers deliver
services to the Group in a way that considers their employees’ rights including
safety and health.
Actions
SKAKO has formulated a Supplier ”Code of Conduct” that specifies principles
we expect our supplier to follow. This ensures that suppliers and their suppliers
produce and deliver their services to the Group in a way that considers the
environment and the employees’ rights.
KPI
The part of our main suppliers that have signed our supplier “Code of Conduct”.
Result for 2024 compared to goal for 2024
SKAKO has not reached the goal of having all suppliers sign our code of
conduct. This will be another target in 2025 and forward. Code of Conduct for
SKAKO Group is currently being revised and will be launched in summer 2025.
Results & goals
Risks
Lack of transparency in compliance with SKAKOs Supplier “Code of Conduct”.
Goal 2024
Result 2023 Result 2022 Result 2021
95% 90% 90% 95% 85%
| Annual
report
2024
Page
31
3.2 Corporate
social
responsibility
Diversity, cf. Section 107d of
the Danish Financial Statements
Act
Policy
At SKAKO A/S we believe that a diverse and tolerant organization makes
the company stronger, increases the competitiveness and creates a good
and innovative working environment. We want to develop and benefit from the
total potential of all employees and that all employees can develop their full
potential in balance between working life and private life. Therefore, no
discrimination based on gender, religion, ethnicity, sexual orientation, etc. is
tolerated in SKAKO. When recruiting members to the SKAKO management team, we
are convinced that diversity will add value to the company.
To make sure all employees and management in SKAKO comply with
SKAKOs policies of tolerance and inclusion, we have established an Employee “Code
of Conduct” e-learning that describes the way SKAKO expects all its employees to
act in accordance with our policies, and laws and regulations.
Actions
1. SKAKO has developed an Employee “Code of Conduct” e-learning
that describes the way SKAKO expects all its employees to act in accordance
with laws and regulations. The employee “Code of Conduct” also describes
usage of the whistle blower scheme. Every year all SKAKO employees must
carry through the Employee “Code of Conduct” e-learning. The e-learning
provides the management with insight on how to secure diversity in the
organization and on management level.
2. Enhance the awareness in the SKAKO management team on the benefits of
diversity. This could be in a workshop with this specific purpose
KPIs
1. All employees to pass SKAKO’s Employee “Code of Conduct” e-learning.
Results for 2024 compared to goals for 2024
1. 85% of SKAKO employees have passed the SKAKO Employee Code of
Conduct e-learning.
The goal for 2025: 100% of SKAKO employees have to pass the SKAKO Employee
Code of Conduct e-learning.
Risks
1. Employee “Code of Conduct” e-learning is not prioritized.
Goal for
2024
Result
2024
Result
2023
Result
2022
Result
2021
1 100% 85% 75% 80% 95%
Results & goals
| Annual
report
2024
Page
32
3.2 Data
Ethics
Data ethics (§99d ÅRL)
Policy
At SKAKO A/S we are acting with responsibility, when it comes to data ethics. This
applies to all data, i.e. business intelligence data, employee information and
supplier/ customer information. We have defined eight basic principles of working
with data:
Welfare: Data on society, democracy and social relations are treated with
respect.
Dignity: Treatment of data may not be used to harm an individual.
Privacy: Any data treatment shall respect privacy and personal data shall
be protected. It should always be considered what data are
necessary and what are the sources of the data.
Own rights: The individual should always have the right to obtain information
on what data are stored and know for what purpose the data are
intended.
Equality: Treatment of data may not discriminate with regards to
ethnicity, sexuality, sex, political opinions, religion, generical data,
disability or other health related information.
Justice: Treatment of data is performed with responsibility to local
legislation.
Data security: Treatment of data shall be sufficiently safe, robust and reliable.
Data shall be stored and shared in way that unintended
availability for unauthorized use is impossible.
Responsibility: SKAKO is responsible for data collected, stored and distributed
by SKAKO.
Actions
1. Continuously communicate the basic principles of data ethics to SKAKO staff.
2. Implement annual review of data stored in CRM system.
3. Secure that all customers and suppliers are confirming their consent with data
stored in CRM.
| Annual
report
2024
Page
33
3.3 Risk management
2.3 RISK MANAGEMENT
First and foremost, risk management activities in the SKAKO Group focus on financial risks to which the Company is fairly likely to be exposed. In connection with the
preparation of the Group’s strategic, budgetary and annual plans, the Board of Directors considers the risks identified in these activities.
Financial risks
Financial risk management concentrates on identifying risks in respect of exchange
rates, credit and liquidity with a view to protecting the Group against potential
losses and ensuring that Management’s forecasts for the current year are only to a
limited extent affected by changes or events in the surrounding world – be the
changes in exchange rates or in interest rates. It is Group policy to exclusively
hedge financial risks arising from our commercial activities and not to undertake
any financial transactions of a speculative nature.
Exchange rate risks
With more than 90% of the Group’s sales being invoiced in DKK and EUR currencies,
reported revenue is only limited affected by movements in the Group’s trading
currencies.
Credit risks
The Group’s credit risks relate primarily to trade receivables. For large projects we
have a signed Letter of Credit from the customer’s bank before we undertake any
work. Our remaining customer base is fragmented so credit risks in general only
lead to minor losses on individual customers. Overall, we therefore estimate that
we have no major credit exposure on Group level. With the two large orders with
OCP in Morocco of DKK 150m the credit risk exposure on one single customer is
higher than previously seen. This risk is mitigated through letter of credit for more
than 80% of the payments and customary downpayments. Historically SKAKO has
not had any credit losses with this customer. However late payment of invoices
from countries in North Africa is often seen.
Financial reporting process
and internal controls
SKAKO has established and maintains an internal control setup that supports
correct and timely reporting to Management and Market. The responsibility of
maintaining sufficient and efficient internal control and risk management in
connection with financial reporting lies with the Executive Board. The Board of
Directors has assessed the Group’s existing control environment and concluded
that it is adequate andthat there is no need for setting up an internal audit function.
Once every quarter we carry through a detailed planning and forecast process, and
any deviations from the plans and budgets are carefully monitored. Furthermore,
we perform weekly, monthly and quarterly reviews and assessments of all large
projects.
Liquidity risk
The Group aims at having sufficient cash resources to be able to take appropriate
steps in case of unforeseen fluctuations in cash outflows. With higher uncertainty
regarding the timing of payments from OCP there is a risk that we see higher
fluctuations in our liquidity. These fluctuations will be mitigated through suitable
undrawn credit facilities.
| Annual
report
2024
Page
34
3.3 Risk management
Safeguarding corporate assets
Management continuously seeks to minimize any financial consequences of
damage to corporate assets including any operating losses resulting from such
damage. We have invested in security and surveillance systems to prevent damage
and to minimize such damage, should it arise. Major risks, which cannot be
adequately minimized, are identified by the Company’s Management, who will
ensure that appropriate insurance policies are, on a continuous basis, established
under the Group’s global insurance program administered by recognized and credit-
rated insurance brokers and that such insurances are taken out with insurance
companies with high credit ratings. The Group’s insurance program has deductible
clauses in line with normal market terms. The Board of Directors reviews the
Company’s insurance policies once a year including the coverage of identified risks
and is briefed regularly on developments in identified risks. The purpose of this
reporting is to keep the Board members fully updated and to facilitate corrective
action to minimize any such risks.
Declining market conditions
Management continuously monitors market conditions and maintains close
relations to significant customers in order to be able to make a timely response in
light of changing circumstances. Monitoring of consequences regarding the Corona
virus falls under this category, as well as geopolitical risks such as the current
Ukraine war, inflation and increasing interest rates.
Cyber security
SKAKO maintains and enforces an IT safety policy to reduce risks from cyber crime.
Furthermore, SKAKO has implemented an IT contingency plan based on
recommendations from the Danish Data Protection Agency and other
recommended authorities regarding cyber security. SKAKO’s head of IT operations
oversees monitoring and enforcing of the IT contingency plan.
Project execution
The Company continuously executes projects across the world, and in some cases
faces challenges in the execution. Management continuously monitors project
execution to identify possible risks as early as possible. Furthermore, projects are
actively distributed among project managers to ensure that the most experienced
managers execute the most complex projects. Due to execution of the two large
orders with OCP in Morocco this risk is higher than normal. However, the risk should
be manageable since SKAKO has executed similar projects in Morocco before.
| Annual
report
2024
Page
35
3.4 Corporate
governance
and remuneration
report
2.4 CORPORATE GOVERNANCE
AND REMUNERATION REPORT
Recommendations on corporate governance
As a listed company on 31 December 2024, SKAKO observes the
´Recommendations on Corporate Governance´ (issued in November 2017 and
updated in December 2020) implemented by Nasdaq Copenhagen in its ´Rules for
issuers of shares´. The ´Recommendations on Corporate Governance´ contain 40
recommendations and are based on the comply-or-explain principle, which makes
it legitimate for a company to explain why it does not comply with them. SKAKO
fully complies with 38 of the 40 recommendations, and partially complies with
one, and therefore complies with the ´Recommendations on Corporate
Governance´ in all material respects.
A complete schematic presentation of the recommendations and how we comply,
Statutory report on corporate governance, cf. section 107 b of the Danish Financial
Statements Act, is available on our website under Investor Relations.
https://skako.com/about/investor-relations/ (in the Master Data section)
We find it relevant to highlight a number of aspects and supplementary
information on corporate governance in the SKAKO Group in this chapter.
Deviations from recommendations
SKAKO has not established a nomination or a remuneration committee. Given the
size of SKAKO, the Board of Directors finds it most suitable that the total Board of
Directors takes care of the tasks.
Audit committee
The Company’s Board of Directors has set up an audit committee. The Board of
Directors appoints the chairman of the Audit Committee, who must be
independent and who must not be Chairman of the Board of Directors.
According to its charter, the Audit Committee, among other things, assists the
Board of Directors in relation to internal accounting and financial control systems,
the integrity of the company’s financial reports and engagements with external
auditors. The audit committee also carries out ongoing assessments of the
company’s financial and business risks. The audit committee has also a special
focus on the divestment of Concrete activities.
In 2024, the committee reviewed the main accounting principles, tax strategy and
compliance and key risks, etc.
In 2024, the Audit Committee held four meetings.
Remuneration
The Company has formulated remuneration policies for the Board of Directors and
Executive Management. The policies were approved on the general assembly 28
April 2021.
The policies are available on our website under Investor Relations.
Furthermore, the Company has produced a remuneration report for the Board of
Directors and Executive Management.
The report is available on our website under Investor Relations.
| Annual
report
2024
Page
36
3.5 Executive
management
2.5 EXECUTIVE MANAGEMENT
Name Lionel Girieud Thomas Pedersen
Born in 1971 1975
Title CEO Group CFO
Member of the
management since
2016 2022
Number of shares
in SKAKO
5,166 0
Board positions – –
| Annual
report
2024
Page
37
3.6 Board
of directors
2.6 BOARD OF DIRECTORS
Name Jens Wittrup Willumsen
Title
Chairman of the Board of Directors and member of the audit committee
Considered as a non-independent Board member
Born in
1960
Board member
since
2010
SKAKO shares
Jens Wittrup Willumsen owns 50% of the shares in Frederik2 Aps. Frederik2 Aps owns
800,000 shares in SKAKO.
Further, Jens Wittrup Willumsen has a direct ownership of 19,876 shares in SKAKO.
Managerial
positions in other
companies
Chairman of the Board:
Licensewatch A/S, COMIT A/S, Begravelse Danmark A/S
Deputy Chairman:
Billund Lufthavn A/S
Board member:
FDM Travel A/S, Charlotte Sparre A/S, Experimentarium A/S, Museum Kolding,
SEC Datacom Group A/S, TMC Nordic AS
Otherspositions:
Frederik2 ApS, Director own investment company
Special
competences
Jens Wittrup Willumsen is educated Cand. Merc. from Copenhagen Business School and
has had managing positions in Denmark and abroad. His competences include strategy,
finance, financing, sales and marketing.
Participation in
board meetings
Jens Wittrup Willumsen participated in all board and audit committee meetings in 2024.
Carsten KrogsgaardThomsen
Chairman of the Audit Committee
Considered as an independent Board member
1957
2017
19,255
Board member:
NTG Nordic Transport Group
A/S,
Carsten Krogsgaard Thomsen is educated Cand. Polit. and has had a long career with
primary focus on economics and finance. Through his career, Carsten Krogsgaard Thomsen
has accumulated extensive experience within M&A, and compliance in listed companies.
From 2014 to 2020 Carsten Krogsgaard Thomsen was CFO in NNIT and previously also held
positions as EVP and CFO in Dong Energy A/S, EVP in DSB (Danish State Railways), finance
and planning manager at
Rigshospitalet (the Copenhagen University Hospital) and consultant in McKinsey & Company.
Carsten Krogsgaard Thomsen participated in all board
and audit committee meetings in 2024.
| Annual
report
2024
Page
38
3.6 Board
of directors
Name
Title
Born in
Board member
since
SKAKO shares
Managerial
positions in other
companies
Special
competences
Participation in
board meetings
Christian Herskind Jørgensen
Considered as a non-independent Board member
1961
2009
Christian Herskind Jørgensen owns 50% of the shares in
Frederik2 Aps. Frederik2 Aps owns 800,000 shares in SKAKO.
Further, Christian Herskind Jørgensen has a direct ownership
of 109,000 shares in SKAKO.
Chairman of the Board:
Fonden Amager Bakke, LABFLEX A/S, Taulov DryPort A/S, Skive Holding
ApS, Associated Danish Ports A/S, Skive Holding ApS, Labflex Ltd.
Board member:
Nordsøenheden/Nordsøfonden, LM|Pihl A/S, Den Selvejende Institution
Museum Fredericia
Others positions:
Herskind Venture Capital ApS, Director own holding company,
Ejendomsselskabet Helsingør/Århus, Director Frederik2 ApS,
Director own holding company
Christian Herskind Jørgensen is educated lawyer from University
of Copenhagen and University of London and is also Brigadier.
His competences include significant experience within sales,
marketing, strategy, management, HR and legal matters.
Christian Herskind Jørgensen participated in all board
meetings in 2024.
Sophie Louise Knauer
Considered as an independent Board member
1983
2020
–
Board member:
NTG Nordic Transport Group A/S, Solar A/S, Rekom
Group A/S, Rekom Group Holding ApS, Ferm Living
ApS, CC Globe Holding I ApS, CC Globe Holding II ApS,
CC Fly Holding I ApS, CC Mist NEW Holding II ApS
Other positions:
Lady invest ApS and It’s a club ApS managing director
and owner.
Sophie Louise Knauer is educated HA JUR and Cand.
Merc. in economy and strategic management from
Copenhagen Business School. Her career includes top
management in TDC, CEO for People Group A/S and
senior consultant at McKinsey & Company.
Sophie Louise Knauer has built strong competences
within strategic management and digital
transformation.
Sophie Louise Knauer participated in all
board meetings in 2024.
| Annual
report
2024
Page
39
3.7 Shareholder
information
2.7 SHAREHOLDER INFORMATION
As of 31 December 2024, SKAKO’s nominal share capital was 31,524,960 DKK
divided into 3,152,496 shares of 10 DKK each. All shares are fully paid, the same
class and carry one vote each.
The Board of Directors has been authorized by the annual general assembly to
initiate a share buy-back programme for up to 10% of the share capital. The
authorization was valid until 1 April 2027.
SKAKO A/S is listed at NASDAQ OMX Copenhagen A/S under identification code
DK0010231877. By the end of 2024 the company had 1,989 registered shareholders
compared with 2,003 registered shareholders by the end of 2023. The registered
shareholders own a total of 93.5% of the share capital compared to 93.9% by the
end of 2023.
Specification of movements in share capital
Shareholders with more than 5% of the share
Dividends
Based on the results in 2024 and capital structure of SKAKO A/S as of 31 December
2024, the Board of Directors recommends a dividend distribution of DKK 2.5 per
share corresponding to 72% of profit for the year exclusive the profit from
discontinued activities and a total dividend distribution of DKK 9.3m. With a share
price of DKK 81.2 as of 31 December 2024, this corresponds to a dividend yield of
3.1%.
Ex dividend date:
Record date:
Payment date:
25 April 2025
28 April 2025
29 April 2025
Financial calendar 2025
DKK
Thousands 2024 2023 2022 2021 2020
Share
capital
31,064 31,064 31,064 31,064 31,064
at
01.01.
Capital
increase 461 – – – –
Share
capital
31,525 31,064 31,064 31,064 31,064
at
31.12.
Frederik2 ApS, Copenhagen
Danica Pension,Copenhagen
Maj Invest Holding A/S, Copenhagen
25.75%
10.48%
9.98%
Presentation of the annual report
Together with HC Andersen Capital, SKAKO A/S will do an online presentation of the
annual report for 2024 on Thursday 13 March 2025 at 11.00 - 11.30 am.
Registration for event: https://www.inderes.dk/videos/skako-presentation-of-annual-
results-for-2024
Annual general meeting 2025
The annual general meeting will be held on Thursday 24 April 2025 at 3 p.m. at the
Company’s head office at Bygmestervej 2, 5600 Faaborg, Denmark.
Investor Relations
Investors, analysts and medias are welcome to contact Jens Wittrup Willumsen
(Chairman of the Board of Directors) by phone +45 2347 5640 or by e-mail to
skako.dk@skako.com
12
March
Annual
report for 2024
24 April
Ordinary
general meeting 2025
21 May
Trading statement Q1 2025
20 August
Interim report for the first half
-year of 2025
12 November
Trading statement Q3 2025
| Annual
report
2024
Page
40
3. FINANCIAL
STATEMENTS
3.1 STATEMENT BY MANAGEMENT
3.2 INDEPENDENT AUDITOR’S REPORT
3.3 CONSOLIDATED FINANCIAL STATEMENT
3.4 CONSOLIDATED NOTES
3.5 PARENT COMPANY FINANCIAL STATEMENT
3.6 PARENT COMPANY NOTES
| Annual
report
2022
Page
40
| Annual
report
2024
Page
41
4.1 Statement
by Management
Board of Directors
Executive Board
Thomas Pedersen
CFO
Jens Wittrup Willumsen
Chairman
Christian Herskind Jørgensen
Carsten Krogsgaard Thomsen
Deputy Chairman
3.1 STATEMENT BY MANAGEMENT
Today, we have discussed and approved the Annual Report 2024 of SKAKO A/S for
the financial year 1 January to 31 December 2024.
The annual report has been prepared and presented in accordance with IFRS
accounting standards as adopted by the EU and further requirements in the Danish
Financial Statement Act.
In our opinion, the consolidated financial statements and the parent company
financial statements give a true and fair view of the Group’s and the parent
company’s assets, liabilities and financial position on 31 December 2024 and of the
results of the Group’s and the parent company’s operations and cash flows for the
financial year 1 January to 31 December 2024.
Further, in our opinion the Management’s report includes a fair view of the
development and performance of the Group’s and the parent company’s business
and financial condition, the profit for the year and of the Group’s and the parent
company’s financial position, together with a description of the principal risks and
uncertainties that the Group and the parent company face.
In our opinion, the annual report of SKAKO A/S for the financial year 1 January to 31
December 2024 with the file name 529900WNR3U8C847AW24-2024-12-31-en.zip
is prepared, in all material respects, in compliance with the ESEF Regulation.
We recommend the Annual Report for 2024 be approved at the Annual General
Meeting.
Faaborg, 12 March 2025
Sophie Louise Knauer
Lionel Girieud
Director
| Annual
report
2024
Page
42
4.2 Independent
auditor’s
report
3.2 INDEPENDENT AUDITOR’S REPORTS
To the shareholders of SKAKO A/S
Report on the audit of the Financial Statements
Our opinion
In our opinion, the Consolidated Financial Statements and the Parent Company
Financial Statements give a true and fair view of the Group’s and the Parent
Company’s financial position at 31 December 2024 and of the results of the
Group’s and the Parent Company’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.
Our opinion is consistent with our Auditor’s Long-form Report to the Audit
Committee and the Board of Directors.
What we have audited
The Consolidated Financial Statements and Parent Company Financial Statements
of SKAKO A/S for the financial year 1 January to 31 December 2024 comprise
income statement and statement of comprehensive income, balance sheet, cash
flow statement, statement of changes in equity and notes, including material
accounting policy information for the Group as well as for the Parent Company.
Collectively referred to as the “Financial Statements”.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(ISAs) and the additional requirements applicable in Denmark. Our responsibilities
under those standards and requirements are further described in the Auditor’s
responsibilities for the audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Independence
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. We have also fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code.
To the best of our knowledge and belief, prohibited non-audit services referred to
in Article 5(1) of Regulation (EU) No 537/2014 were not provided.
Appointment
We were first appointed auditors of SKAKO A/S on 26 April 2012 for the financial
year 2012. We have been reappointed annually by shareholder resolution for a
total period of uninterrupted engagement of 13 years including the financial year
2024. We were reappointed following a tendering procedure at the General
Meeting on 19 April 2022.
| Annual
report
2024
Page
43
4.2 Independent
auditor’s
report
Revenue recognition of plant sales from customer contracts
Revenue from plant customer contracts is recognised over time. The proportion of
revenue to be recognised in a particular period is calculated according to the
percentage of completion of the plant project. This is measured by reference to
the costs of performing the contract incurred up to the relevant balance sheet
date as a percentage of the total estimated costs of performing the contract.
Contract assets amounted to DKK 36 million (2023: DKK 38 million) net and
contract liabilities amounted to DKK 1 million (2023: DKK 3 million) net.
Recognition of the Group’s revenue involves a high degree of subjectivity in
determining significant assumptions for the total estimated costs of plant projects.
We focused on this area, as recognition of revenue involves judgements made by
Management originating from percentage of completion and estimated cost to
completion of plant projects.
Reference is made to note 1 and 17.
We considered the appropriateness of the Group’s accounting policies for
revenue recognition and assessed compliance with applicable accounting
standards.
We performed risk assessment procedures with the purpose of achieving an
understanding of it-systems, procedures and relevant controls relating to revenue
recognition from customer contracts. In respect of controls, we assessed whether
these were designed and implemented effectively to address the risk of material
misstatement.
We performed substantive procedures over input data from contracts and costs
charged to plant projects.
We assessed Management’s estimated cost to completion and contribution
margin for customer contracts in order to evaluate the valuation of customer
contracts and recognised revenue.
We performed a retrospective analysis of Management’s ability to assess the cost
to completion and expected contribution margin in prior years.
We tested Management’s estimated percentage of completion by assessing
subsequent development in costs allocated to the plant projects and
Management’s updated estimates for cost to completion and contribution
margin.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2024. These matters were
addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key audit matter How our audit addressed the key audit matter
Deferred tax assets
At 31 December 2024, the Group has recognised deferred tax assets of DKK 10
million (2023: DKK 10 million).
Management is required to exercise considerable judgement when determining
the appropriate amount to capitalise in respect of deferred tax.
We focused on this area as the amounts involved are significant and the valuation
of tax assets is dependent on highly subjective assumptions on budgeted taxable
income for the coming years.
Reference is made to note 15.
We evaluated Management’s method for estimating the deferred tax assets.
In understanding and evaluating Management’s method and assumptions we
performed a retrospective analysis of Management’s ability to budget the taxable
income in prior years.
Further, we examined the Group’s budgets and projections for the coming years
including significant assumptions.
We evaluated and challenged the adequacy of the significant assumptions
determined by Management in developing the accounting estimate.
| Annual
report
2024
Page
44
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 in the
audit, or otherwise appears to be materially misstated.
Moreover, we considered whether Management’s Review includes the disclosures
required by the Danish Financial 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 Statements Act. We did not identify any material misstatement in Management’s
Review.
Management’s responsibilities for the Financial Statements
Management is responsible for the preparation of consolidated financial statements and
parent company financial statements that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU and further requirements in the Danish
Financial Statements Act, and for such internal control as Management determines is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management is responsible for assessing the
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 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.
Statement on Management’s Review
| Annual
report
2023
Page
44
| Annual
report
2024
Page
45
4.2 Independent
auditor’s
report
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an 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 in accordance with ISAs and the additional requirements
applicable in Denmark, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Financial
Statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
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 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 or the Parent Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content 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.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence and, where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the Financial Statements of
the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the
matter.
| Annual
report
2024
Page
46
4.2 Independent
auditor’s
report
Report on compliance with the ESEF Regulation
As part of our audit of the Financial Statements we performed procedures to
express an opinion on whether the annual report of SKAKO A/S for the financial
year 1 January to 31 December 2024 with the filename
529900WNR3U8C847AW24-2024-12-31-en.zip is prepared, in all material
respects, in compliance with the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) which
includes requirements related to the preparation of the annual report in XHTML
format and iXBRL tagging of the Consolidated Financial Statements including
notes.
Management is responsible for preparing an annual report that complies with
the ESEF Regulation. This responsibility includes:
• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including
extensions to the ESEF taxonomy and the anchoring thereof to elements
in the taxonomy, for all financial information required to be tagged using
judgement where necessary;
• Ensuring consistency between iXBRL tagged data and the Consolidated
Financial Statements presented in human-readable format; and
• For such internal control as Management determines necessary to enable
the preparation of an annual report that is compliant with the ESEF
Regulation.
Our responsibility is to obtain reasonable assurance on whether the annual
report is prepared, in all material respects, in compliance with the ESEF
Regulation based on the evidence we have obtained, and to issue a report that
includes our opinion. The nature, timing and extent of procedures selected
depend on the auditor’s judgement, including the assessment of the risks of
material departures from the requirements set out in the ESEF Regulation,
whether due to fraud or error. The procedures include:
• Testing whether the annual report is prepared in XHTML format;
• Obtaining an understanding of the company’s iXBRL tagging process and
of internal control over the tagging process;
• Evaluating the completeness of the iXBRL tagging of the Consolidated
Financial Statements including notes;
• Evaluating the appropriateness of the company’s use of iXBRL elements
selected from the ESEF taxonomy and the creation of extension elements
where no suitable element in the ESEF taxonomy has been identified;
• Evaluating the use of anchoring of extension elements to elements in the
ESEF taxonomy; and
• Reconciling the iXBRL tagged data with the audited Consolidated Financial
Statements.
In our opinion, the annual report of SKAKO A/S for the financial year 1 January to
31 December 2024 with the file name 529900WNR3U8C847AW24-2024-12-31-
en.zip is prepared, in all material respects, in compliance with the ESEF
Regulation.
Odense, 12 March 2025
PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab
CVR no 3377 1231
Torben Jensen
State Authorized
Public Accountant
mne18651
Mikael Johansen
State Authorized
Public Accountant
mne23318
| Annual
report
2024
Page
47
4.3 Consolidated
financial
statements
DKK
Thousands
2024 2023
Notes
1, 2
Revenue from contracts with customers 237,438 248,159
3, 4
Production costs (164,553) (173,425)
Gross profit 72,885 74,734
4
Distribution costs (28,384) (26,010)
4,
5, 6 Administrative expenses (23,318) (24,128)
Operating profit before special items (EBIT) 21,183 24,596
7
Special items - (1,934)
Operating profit (EBIT) 21,183 22,662
8
Financial income 1,623 2,163
8
Financial expenses (4,613) (5,493)
Profit before tax 18,193 19,332
9
Tax on profit for the year (4,593) (5,558)
Profit for the year before discontinued activities 13,600 13,774
10
Result of discontinued activities after tax (2,591) 67,463
Profit for the year 11,009 81,237
Profit for the year attributable to SKAKO A/S shareholders 11,009 81,237
11
Earnings per share (EPS), DKK 3.51 26.34
11
Diluted earnings per share (EPS), DKK 3.49 25.36
11
Earnings per share continuing activities (EPS), DKK 4.35 4.47
11
Diluted earnings per share continuing activities (EPS), DKK 4.31 4.32
Consolidated income statement
3.3 CONSOLIDATED FINANCIAL
STATEMENTS
| Annual
report
2024
Page
48
4.3 Consolidated
financial
statements
Consolidated statement of comprehensive income
DKK Thousand
2024 2023
Notes
Profit for the year 11,009 81,237
Other comprehensive income:
Items that have been or may subsequently be reclassified to the income statement:
Foreign currency translation, subsidiaries (2,893) 2,661
Value adjustments of hedging instruments - 49
Other comprehensive income (2,893) 2,710
Comprehensive income 8,116 83,947
| Annual
report
2024
Page
49
4.3 Consolidated
financial
statements
Consolidated balance sheet 31 December
DKK
Thousands 2024 2023
Notes
Intangible
assets 25,132 25,189
Intangible
assets under development 672 1,615
12
Intangible
assets 25,804 26,804
14
Leased
assets 12,715 8,025
13
Land and
buildings 4,722 4,173
13
Plant and
machinery 1,539 1,168
13
Operating equipment, fixtures and fittings
4,304 1,673
13
Leasehold
improvements 2,620 2,427
13
Tangible
assets under construction 246 74
Tangible
assets 26,146 17,540
Other
receivables 775 766
15
Deferred
tax assets 10,107 9,891
Other
non-current assets 10,882 10,657
Total non
-current assets 62,833 55,001
16
Inventories
30,272 26,182
21
Trade
receivables 66,312 58,274
17, 21
Contract
assets 36,429 38,203
Other
receivables 9,608 7,706
Prepaid
expenses 1,271 800
Cash
24,839 156,027
Current
assets 168,731 287,192
Assets
231,563 342,193
| Annual
report
2024
Page
50
4.3 Consolidated
financial
statements
Consolidated balance sheet 31 December CONTINUED
DKK
Thousands 2024 2023
Notes
Share
capital
31,525 31,064
Foreign
currency translation reserve
(150) 2,743
Hedging
reserve
- -
Retained
earnings
48,025 165,725
Proposed
dividends
7,881 15,532
Equity
87,281 215,064
Other
liabilities
2,308 2,300
19
Provisions
1,493 2,059
18
Loans and
borrowings
2,074 4,106
14
Leasing
9,772 5,989
Non
-current liabilities
15,647 14,454
19
Provisions
1,277 1,027
18
Loans and borrowings
2,290 2,270
18
Bank loans and credit facilities
45,083 3,278
14
Leasing
2,917 2,905
17
Contracts
liabilities
1,009 3,310
Trade payables
52,745 64,665
Income
tax
59 7,070
Other
liabilities
23,255 28,150
Current
liabilities
128,635 112,675
Liabilities
144,282 127,129
EQUITY AND LIABILITIES
231,563 342,193
| Annual report 2024 Page 514.3 Consolidated financial statements
Consolidated cash flow statement
DKK
Thousnads 2024 2023
Notes
20
12
13
20
18,193 104,391
(9,119) (67,073)
(8,648) 45,207
(4,090) (4,378)
Profit before tax including discontinued activities
Adjustments
Changes in receivables, etc.
Change in inventories
Change in trade payables and other liabilities, etc.
(17,880) (61,364)
(21,544) 16,783
1,623 2,163
(4,613) (5,493)
Cash flow from operating activities before financial items and tax
Interest received
Interest paid
Taxes paid and received
(7,685) (1,294)
(32,219) 12,159
(210) (561)
(5,128) (10,600)
1,894 24,094
Cash flow from operating activities
Investment in intangible assets
Investment in tangible assets
Disposals
Proceeds from sale of Concrete activities
(2,591) 148,916
(6,035) 161,849
8,630 573
(6,847) (13,323)
(136,522) (15,532)
Cash flow from investing activities
Proceeds from leasecontracts
Repayments
Paid dividends
Change in short-term bank facilities
41,805 (34,841)
(92,934) (63,123)
(131,188) 110,885
156,027 45,142
24,839 156,027
Cash flow from financing activities
Change in cash and cash equivalents
Cash and cash equivalents 1 January
Cash and cash equivalents 31 December
Breakdown of cash and cash equivalents at the end of the year:
Cash
24,839 156,027
Cash and cash equivalents at the end of the year:
24,839 156,027
| Annual
report
2024
Page
52
4.3 Consolidated
financial
statements
Consolidated statement of changes in equity
DKK Thousands
Share capital
Foreign currency
translation reserve
Hedging reserve
Retained
earnings
Proposed
dividends
Equity
Equity 1
January 2024 31,064 2,743 - 165,725 15,532 215,064
Extraordinary
dividends (121,989) 121,989 -
Paid
dividends 999 (137,521) (136,522)
Increase
of share capital 461 461
Comprehensive
income in 2024:
Profit for the
year 3,128 7,881 11,009
Other
comprehensive income:
Recirculated currency translation
adjustments, subsidiaries
- (2,893) - - (2,893)
Other
comprehensive income - (2,893) - - (2,893)
Comprehensive
income, year - (2,893) - 3,128 7,881 8,116
Share
-based payment, warrants - - - 163 - 163
Equity 31 December 2024
31,525 (150) - 48,025 7,881 87,281
| Annual
report
2024
Page
53
4.3 Consolidated
financial
statements
Consolidated statement of changes in equity
DKK Thousands
Share capital
Foreign currency
translation reserve
Hedging reserve
Retained earnings
Proposed
dividends
Equity
Equity 1
January 2023 31,064 82 (49) 99,538 15,532 146,167
Paid
dividends (15,532) (15,532)
Comprehensive
income in 2023:
Profit for the
year 65,705 15,532 81,237
Other
comprehensive income:
Foreign currency translation adjustments,
subsidiaries
2,661 2,661
Value adjustments of hedging instruments
49 49
Other
comprehensive income 2,661 49 2,710
Comprehensive
income, year 2,661 49 65,705 15,532 83,947
Share
-based payment, warrants 482 482
Equity 31 December 2023
31,064 2,743 0 165,725 15,532 215,064
| Annual
report
2024
Page
54
4.4 Consolidated
notes
3.4 CONSOLIDATED NOTES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Note No.
1.
12.
15.
17.
19.
Significant estimates and assessments:
Notes to consolidated financial statements
Revenue from contracts with customers . . . . . . . . . . . . . . . . . 55
Segment information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Production costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Staff costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Share-based payment, warrants . . . . . . . . . . . . . . . . . . . . . . 64
Fee to parent company auditors appointed at annual general meeting 66
Special items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Net financial items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Tax on profit for the year . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Discontinued activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Earnings per share (EPS) . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Tangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Leases – Right-of-use assets . . . . . . . . . . . . . . . . . . . . . . . 79
Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84
Contract assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . 85
Bank loans and credit facilities . . . . . . . . . . . . . . . . . . . . . . . 87
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Adjustments, consolidated cash flow statement . . . . . . . . . . . . 91
Exchange rate, liquidity and credit risks . . . . . . . . . . . . . . . . . 92
Contractual liabilities, contingent liabilities and securities . . . . . . . 95
Related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Events after the balance sheet date . . . . . . . . . . . . . . . . . . . 95
Approval and publication . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Group accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Description
Page Page
Description
Note No.
Revenue from contracts with customers . . . . . . . . . . . . . . 55
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Contract assets and liabilities . . . . . . . . . . . . . . . . . . . . . 85
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
| Annual
report
2024
Page
55
4.4 Consolidated
notes
Accounting policy
SKAKO develops, designs and sells high-end vibratory feeding, conveying,
and screening equipment, used across the complete spectrum of material
handling and processing. The main focus is on plant sales with a solid
aftersales division.
Administrative functions such as Finance, HR and IT are shared by the
divisions. The administrative functions are based in the individual countries
but supported by Group functions in Denmark. Shared costs are allocated to
business segments based on assessment of usage.
All intercompany transactions are made on market terms.
Segment assets and liabilities comprise items directly attributable to a
segment and items that can be allocated to a segment on a reasonable
basis.
Revenue is the fair value of consideration received or receivable from the
sale of our plants and aftersales products or services and is the gross sales
price less VAT and any price reductions in the form of discounts and rebates.
Geographical information is based on the four regions that support the
industries. Revenue is presented in the region in which delivery takes place.
Segment income and costs include transactions between business areas.
The transactions are eliminated in connection with the consolidation
Revenue is recognized over time or at a point in time. Revenue is
recognized over time when an asset on behalf of a customer is created with
no alternative use and SKAKO has an enforceable right to payment for
performance completed year to date, or the customer obtains control of a
plant or product and thus has the ability to direct the use and obtain the
benefit from the plant or product.
Terms of payment are depending on conditions in the specific market. Plant
sales orders are in general agreed with prepayment and payment
milestones.
Plant sales
Plant sales are negotiated contracts to design and install concrete batching
plants, and vibratory feeding, conveying and screening equipment for
customers. Revenue will be recognized over time, as the above criteria are
met, using “the percentage of completion method”.
The proportion of revenue to be recognized in a particular period is
calculated according to the percentage of completion of the project. For
most contracts this is measured by reference to the costs of performing the
contract incurred up to the relevant balance sheet date as a percentage of
the total estimated costs of performing the contract. Reference to cost is
assessed to be the most appropriate method as incurred hours and material
costs are the value drivers for the projects. The sales value agreed in the
contract is recognized over the contract period using above method.
Contracts where the recognized revenue from the work performed exceeds
progress billings are recognized in the balance sheet under assets
Contracts for which progress billings exceed the revenue are recognized
under liabilities. Prepayments from customers are recognized under
liabilities.
If it is likely that the total costs in relation to a construction contract will
exceed the total revenue on a specific project, the expected loss is
recognized immediately in the income statement in the current period.
1. Revenue from contracts with customers
| Annual
report
2024
Page
56
4.4 Consolidated
notes
Accounting policy CONTINUED
Significant assessment by Management
Assessments regarding contracts with customers is performed when
determining if a contract for sale of a plant, spare parts or service, or a
combination hereof, involves one or more performance obligations.
Assessments regarding recognition method are made when determining if a
contract for sale of a plant, spare parts or service is recognized as revenue
over time or at a point in time. The assessments relate to whether we have
an alternative use of the assets sold and if we have an enforceable right to
payment throughout the contractual term.
When assessing if an asset has no alternative use, we estimate the
alternative use cost amount. We have limited historical data as we rarely
redirect our assets. The estimate is based on the specifics of each contract.
When assessing if we are entitled to payment throughout the contract term,
an assessment is made based on the contract wording, legal entitlement and
profit estimates.
Significant estimates by Management
Total expected costs related to plant sales are partly based on estimates as
they include provisions for unforeseen cost deviations in future supplies of
raw materials, subcontractor products and services plus construction
and handing over. Provisions for warranties on work-in-progress for third
parties are based on Management estimates for each project while taking
contract obligations into account.
1. Revenue from contracts with customers CONTINUED
SKAKO sell a range of spare parts and products as aftersales to the plant
sales. Revenue is recognized when control of the products has transferred,
being when the products are delivered to the customer. Delivery occurs
when the products have been shipped to the specific location, the risks of
obsolescence and loss have been transferred to the customer, and SKAKO has
objective evidence that all criteria for acceptance have been fulfilled.
Revenue from the service contracts is recognized in the period in which the
services are provided based on amounts billable to a customer. Revenue is
recognized based on usage of units, and price lists according to the contract.
Aftersales, spare parts and products Aftersales services
Order backlog
The order backlog represents the value of outstanding performance
obligations on effective contracts, where we will transfer control at a future
point in time and the remaining performance obligations on contracts where
we transfer control over time.
| Annual
report
2024
Page
57
4.4 Consolidated
notes
Revenue, DKK ThousandsGroup20242023Plant157,540170,302- Over time153,572165,323- Apoint in time3,9684,979Aftersales79,89877,857- Overtime--- Apoint in time79,89877,857Totalrevenue237,438248,159
Segregation of revenue
Revenue,DKK Thousands 2024 2023Revenue recognizedthat was included in the contract liability balance at the beginning of the period:- Plantsales 3,310 3,700- Aftersales- -Totalrevenue recognized from contract liabilities 3,310 3,700
Segregation of revenue
1. Revenue from contracts with customers CONTINUED
| Annual
report
2024
Page
58
4.4 Consolidated
notes
Africa
Revenue: DKK 29,005k (2023: DKK 23,271k)
Hereof revenue in Morocco: DKK 11,149k (2023: DKK 1,796k)
North America
Revenue: DKK 6,027k (2023: DKK 7,337k)
Rest of the world
Revenue: DKK 7,941k (2023: DKK 10,371k)
Europe
Revenue: DKK 194,465k (2023: DKK 207,180k)
Hereof revenue in Denmark: DKK 10,504k (2023: DKK 22,719)
Hereof revenue in France: DKK 63,289k (2023: DKK 55,145k)
Hereof revenue in the UK: DKK 11,919k (2023: DKK 15,617k)
Hereof revenue in Germany: DKK 22,805k (2023: DKK 30,868k)
Hereof revenue in Spain: DKK 43,320k (2023: DKK 42,657k)
Geographical revenue information
1. Revenue from contracts with customers CONTINUED
Geographical non-current assets information
North America
DKK 0k (2023: DKK 0k)
Europe
DKK 62,833k (2023: DKK 45,959k)
Hereof in Denmark: DKK 38,312k (2023: DKK 29,710k)
Hereof in France: DKK 14,950k (2023: DKK 13,313k)
Hereof in Spain: DKK 8,900k (2023: DKK 1,452k)
Hereof in Other: DKK 671k (2023: DKK 484k)
| Annual
report
2024
Page
59
4.4 Consolidated
notes
Not distributed including2024VibrationEliminations Group totalparent companyMinerals109,549- - 109,549Fasteners32,326- - 32,326Recycling82,804- - 82,804Other12,759- - 12,759Totalrevenue237,438- - 237,438Depreciations(5,785)(660) - (6,445)Operatingprofit (EBIT) before special items25,072(3,889) - 21,183Orderbacklog, beginning61,942- - 61,942Orderintake378,059- - 378,059Orderbacklog, ending202,563- - 202,563Segmentnon-current assets52,367340,280 (329,815) 62,833Segmentassets266,558428,897 (463,891) 231,564Segmentliabilities93,103186,540 (135,361) 144,282Investmentsin intangible and tangible asset13,440529 - 13,969Averagenumber of employees132- - 132
2024
DKK Thousands
2. Segment information
| Annual
report
2024
Page
60
4.4 Consolidated
notes
Not distributed 2023VibrationEliminations Group totalincludingparent companyMinerals99,187- - 99,187Fasteners38,077- - 38,077Recycling86,619- - 86,619Other24,277- - 24,277Totalrevenue248,159- - 248,159Depreciations(4,511)- - (4,511)Operatingprofit (EBIT) before special items27,157(2,558) - 24,599Orderbacklog, beginning72,550- - 72,550Orderintake237,551- - 237,551Orderbacklog, ending61,942- - 61,942Segmentnon-current assets44,97410,027 - 55,001Segmentassets258,248154,449 (45,237) 367,460Segmentliabilities102,79775,211 (45,237) 132,771Investmentsin intangible and tangible asset11,161- - 11,161Averagenumber of employees129- - 129
2023
DKK Thousands
2. Segment information
| Annual
report
2024
Page
61
4.4 Consolidated
notes
3. Production costs
Accounting policy
Production costs are costs incurred to generate revenue. Production costs
consist of raw materials, consumables, production staff, research and
development cost as well as maintenance of and depreciation, amortisation
and impairment losses on property, plant and equipment and intangible
assets used in the production process.
Research costs are always recognized in the Income Statement in step with
the incurrence of such costs. Development costs include all costs not
satisfying the capitalization criteria, but incurred in connection with
development, prototype construction and development of new business
concepts.
Direct and indirect research and development incentives in terms of tax
incentives and other grants and subsidy schemes for research and
development are recognized when there is reasonable certainty that the
conditions for such grants are satisfied and that they will be awarded. Grants
are offset against research and development costs.
The measurement and classification of government grants related to
research and development is based on Management’s assessment. The
incentive schemes applied do not require positive taxable income and hence
government grants received have been accounted for in accordance with IAS
20.
DKKThousands 2024 2023Costof goods sold during the year 101,832 106,073Write-downof inventories for the year, net 542 139Research and development costs 42 45Production staff costs and other costs 62,137 67,168Totalproduction costs 164,553 173, 425
| Annual
report
2024
Page
62
4.4 Consolidated
notes
4. Staff costs
Accounting policy
Staff costs consist of direct wages and salaries, remuneration, pension, share-based payments, training, etc.
DKKThousands 2024 2023Wages,salaries and other remuneration 47,158 53,242Contributionplans and other social security costs, etc. 12,621 10,912Share-based payment, warrants 163 482Otherstaff costs 2,195 2,92962,137 67,565
The
amounts are included in the items:
Productioncosts 20,356 36,352Distributioncosts 25,248 20,706Administrativecosts 16,533 10,50762,137 67,565
The average number of employees was 132 (2023: 129).
| Annual
report
2024
Page
63
4.4 Consolidated
notes
DKKThousands 2024 2023Boardof Directors and Audit Committee 1,310 1,652ExecutiveManagementWages,salaries and other remuneration 5,832 7,648Contributionplans and other social security costs, etc. 301 341Share-based payment, warrants 163 4936,296 8,482
Total
remuneration for Executive Management and Board of Directors 7,606 10,134
Remuneration to Executive Management and Board of Directors
The Executive Management have been granted warrants to subscribe for shares in the company, cf. note 5.
The Executive Management contracts are based on normal conditions.
The board of directors and audit committee fee includes DKK 78k to board member for extraordinary work
during the transaction and divestment of SKAKO Concrete activities
4. Staff costs CONTINUED
| Annual
report
2024
Page
64
4.4 Consolidated
notes
5. Share-based payment, warrants
Accounting policy
Plans classified as equity-settled warrants are measured at fair value at grant date and are recognized in the income statement as staff costs in the period in
which the final entitlement to the warrants is attained (the vesting period), as well as an inflow directly in equity.
In connection with initial recognition of warrants, an estimate is made of the number of warrants to which Group Executive Management and key staff are
expected to become entitled. Subsequent adjustment is made for changes in the estimate of the number of warrant entitlements, so the total recognition is
based on the actual number of warrant entitlements.
The fair value of the warrants allocated is estimated by means of the Monte Carlo model. The calculation takes into account the terms and conditions under
which the share warrants are allocated.
In 2021, the Executive Management and other key employees in the Group have been granted warrants to purchase a total of 150,000 shares in the company at a set price
(strike price). The share-based programme has vesting conditions under which Management must stay employed for three years to receive the remuneration. The following
exercise period runs for two years.
In 2024, the Executive Management and other key employees in the Group have been granted warrants to purchase a total of 30,000 shares in the company at a set price
(strike price). The share-based programme has vesting conditions under which Management must stay employed for three years to receive the remuneration. The following
exercise period runs for two years.
| Annual
report
2024
Page
65
4.4 Consolidated
notes
The recognized fair value of warrants in the consolidated income statement amounts to DKK 163k (cost) (2023: DKK 482k, cost).
The calculation of the fair value of warrants at the time of allocation is based on the following assumptions:
5. Share-based payment, warrants CONTINUED
* For the 2021 programme, the preceding 48 months have been used
** The expected future dividend at the time of granting
2021 warrants 2024 warrantsGranted Strike priceExerciseGranted Strike priceExercise(all)period starts(all)period startsWarrants granted 150,000 55,60 April 2024 30,000 67.9 July 2028Executive management40,00030,000- hereof forfeited-Total executive management 40,000 -Other employees10,000-- Hereof forfeited-Total other employees 10,000 -Number of warrant entitlements 50,000 30,000
Granted 22 March 2021Granted 12 July 2024Average price per share 55.6 67.9Annual hurdle rate 0% 0%Strike price per share 55.6 67.9Expected volatility* 33.5% 31.2%Expected dividends** 4.1% 5.0%Cost of equity 7.0% 8.5%Number of shares allocated 150,000 30,000Fair value per warrant, DKK 16.90 14.18Total fair value, DKK thousands 2,535 425
| Annual
report
2024
Page
66
4.4 Consolidated
notes
6. Fee to parent company auditors appointed
at the annual general meeting
In addition to the statutory audit, PwC, the Group auditors appointed at the Annual General Meeting,
provides other assurance engagements and other consultancy services to the Group.
A few Group enterprises are not audited by the Parent’s appointed auditors (PwC) or the auditors’ foreign affiliates.
The fee for non-audit services delivered by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab to the
Group amounts to DKK 0.4m (2023: DKK 0.5m) and consists of tax, VAT and accounting advisory.
DKKThousands 2024 2023PwCStatutoryaudit 1,011 1,164Otherassurance engagements 160 -Taxand indirect taxes consultancy 190 150Otherservices 176 3331,537 1,647Otheraudit firmsStatutoryaudit 298 224Otherassurance engagements 52 0Taxand indirect taxes consultancy 303 67Otherservices 453 3471,107 637
| Annual
report
2024
Page
67
7. Special items
Accounting policy
Special items include significant expenses of a special nature that relates to the terminated transaction on divestment of SKAKO’s to divions SKAKO Concrete
and SKAKO Vibration including all operating activities in SKAKO Group and that cannot be attributed directly to the Group’s ordinary operating activities.
Special items include significant non-recurring items.
Special items are shown separately from the Group’s ordinary operations as this gives a truer and fairer view of the Group’s operating profit.
There has been no special items in 2024.
Special items in 2023 consists of transaction costs for the terminated transaction process with Zefyr Invest and amounting to DKK 1.9m
4.4 Consolidated
notes
| Annual
report
2024
Page
68
4.4 Consolidated
notes
8. Net financial items
Accounting policy
Net financial items mainly consist of interest income and interest expenses and also include interest on lease debt as well as realized and unrealized foreign
exchange gains and losses. Interest income and interest expenses are accrued based on the principal amount and the effective interest rate.
The effective interest rate is the discount rate used for discounting expected future payments attaching to the financial asset or financial liability in order for
amoritized cost to match the carrying amount of such asset or liability.
DKKThousands 2024 2023Intereston cash and bank deposits 1,601 2,140Financialincome from financial assets not measured at fair value in the income statement 1,601 2,140Foreignexchange gains, net 22 23Financialincome 1,623 2,163Intereston bank debt (1,922) (2,011)Intereston lease debt (325) (102)Financial expenses on financial liabilities not measured at fair value in the income statement (2,247) (2,113)Foreignexchange losses, net - (170)Otherfinancial expenses (2,366) (3,210)Financialexpenses (4,613) (5,493)Netfinancial items (2,990) (3,330)
| Annual
report
2024
Page
69
4.4 Consolidated
notes
9. Tax on profit for the year
Accounting policy
Tax for the year comprises current tax and changes in deferred tax and is recognized in the Income Statement with the share attributable to the profit for the
year, and in the other comprehensive income with the share attributable to items recognized in other comprehensive income. Exchange rate adjustments of
deferred tax are included as part of the year’s adjustments of deferred tax.
Current tax comprises tax calculated on the basis of the expected taxable income for the year using the applicable tax rates for the financial year and any
adjustments of taxes for previous years.
DKKThousands 2024 2023Currenttax on the profit for the year (4,223) (1,788)Adjustmentof current tax, prior years - (1,371)Changein deferred tax (370) (2,399)Taxfor the period, net income (4,593) (5,558)Taxusing the Danish corporate tax rates (3,823) (1,036)Effectof tax rates in foreign jurisdictions (400) (675)Taxassets not previously capitalized (370) (2,476)Permanent and temporary differences and other items - (1,371)(4,593) (5,558)
| Annual
report
2024
Page
70
4.4 Consolidated
notes
10. Discontinued activity
Accounting policy
Discontinued activities are excluded from the result of continuing activities and presented separately as profit/loss from discontinued activities in the income statement.
Compared figures are restated.
Cashflow from discontinued activities is presented separately as net cash from discontinued activities in the cash flow statement and specified in this section. Compared
figures are restated.
Analysis of
income from the discontinued activities 2024 2023
Revenue- 268,446Cost(1,902) (253,672)Other operating income or loss (gains from divestment after tax)(3,580) 57,330Financial income 2,891 -Profit before tax from discontinued activities (2,591) 72,104Income tax - (4,641)Profit after tax from discontinued activities (2,591) 67,463
The SKAKO Concrete activities were sold to Zefyr Invest IV as of December 29, 2023.
Net cash flow from the
discontinued activities 2024 2023
Cash flow from operating activities (5,482) 14,933Cash flow from investing activities - 133,983Cash flow from financing activities 2,891 -Net cash flow from discontinued activities (2,591) 148,916
| Annual
report
2024
Page
71
4.4 Consolidated
notes
11. Earnings per share (EPS)
Accounting policy
Earnings per share (EPS) and diluted earnings per share (EPS, diluted) are measured according to IAS 33. Non-diluted earnings per share are calculated as the
profit for the year divided by the total average number of shares outstanding during the year (shares issued adjusted for treasury shares).
Diluted earnings per share are calculated as the profit for the year divided by the average number of shares outstanding less share options in-the-money (shares
issued adjusted for treasury shares).
DKKThousands 2024 2023EarningsProfitfor the year 11,009 81,238Numberof shares, averageNumberof shares issued 3,152,496 3,106,418Adjustmentfor treasury share (22,567) (22,567)Averagenumber of shares 3,129,929 3,083,851Earningsper share (EPS) 3.51 26.34Earningsper share, diluted 3.49 25.36Earnings per share continuing activities (EPS), DKK 4.35 4.47Diluted earnings per share continuing activities (EPS), DKK 4.31 4.32
As of 31 December 2024, SKAKO’s nominal share capital was 31,524,960 DKK divided into 3,152,496 shares of 10 DKK each. All shares are of the same class and
carry one vote each.
Treasury shares represents 0.71% of number of shares issued.
| Annual
report
2024
Page
72
4.4 Consolidated
notes
12. Intangible assets
assets
Accounting policy
Development projects for which the technical rate of utilization, sufficient
resources and a potential future market or application in the Group can be
demonstrated and which are intended to be manufactured, marketed or
used are recognized as completed development projects. This requires that
the cost can be determined, and it is sufficiently certain that the future
earnings or the net selling price will cover production, sales and
administrative costs plus the development costs. Other development costs
are recognized in the income statement when the costs are incurred.
Development costs consist of salaries and other costs that are directly
attributable to development activities.
Amortization of completed development projects is charged on a straight-
line basis during their estimated useful life. Development projects are
written down for impairment to recoverable amount, if lower. Development
projects in progress are tested for impairment once a year.
The amortization profile is systematically based on the expected useful life
of the assets, taking into account the remaining agreement period and
consumption (unit of production method) at the time of implementation.
The basis of amortization is reduced by impairment, if any.
Amortization takes place systematically over the estimated useful life of the
assets which is as follows:
• Development costs, 2-10 years
• Software systems, 2-10 years
• Other intangible assets, 3-5 years
On initial recognition, goodwill is recognized and measured as the
difference between the purchase price – including the value of non-
controlling interests in the acquired enterprise and the fair value of any
existing investment in the acquired enterprise – and the fair values of the
acquired assets, liabilities and contingent liabilities. Please refer to
Accounting policies in Note 26.
On recognition, goodwill is allocated to corporate activities that generate
independent payments (cash generating units). The definition of a cash-
generating unit is in line with the Group’s managerial structure as well as
the internal financial management reporting.
SKAKO goodwill relates to SKAKO Dartek and goodwill is monitored as in
previous years. Impairment test of goodwill are based on calculated capital
value of the single unit, based on five-year business plans as well as a
calculated terminal value that compared with carrying amount of the
tested assets.
The main assumptions of the business plans of the individual CGUs are
linked to SKAKO’s expected growth and earnings over a number of years,
and the applied gross profit margins and costs are based on management's
expectations.
Intangible assets with a finite useful life are measured at cost less
accumulated amortization and impairment losses. Goodwill is not
amortized but is tested for impairment at least once a year. If the
recoverable amount of a cash-generating unit is lower than the carrying
amounts of property, plant and equipment and intangible assets including
goodwill, attributable to the particular cash generating unit, the particular
assets will be written down.
| Annual
report
2024
Page
73
4.4 Consolidated
notes
Significant estimate by Management
Impairment testing is carried out annually on preparation of the annual report or on indication of impairment in which discounted values of future cash flows
are compared with carrying amounts. The calculations use cash flow projections based on financial budgets approved by Management covering a five-year
period.
Cash flows beyond the five-year period are extrapolated using growth rates estimated by Management.
Other intangibleIntangible assets DevelopmentGoodwillSoftware Totalassetsunder developmentprojectsCostat 1 January 2024 22,295 - 1,615 1,472 4,936 30,318Foreignexchangeadjustments 4 3 3 10Investments15 195 210Disposals-Transferredbetween categories (947) 376 (571)Costat 31 December 2024 22,295 - 672 1,490 5,510 29,967Amortisationand impairment - - - 574 2,940 3,5141January 2024Foreignexchange adjustment 2 3 5Disposals-Amortisation162 482 644Amortisationand impairment - - - 738 3,425 4,16331December 2024Carryingamount 31 December 2024 22,295 - 672 752 2,085 25,804
DKK Thousands
12. Intangible assets CONTINUED
| Annual
report
2024
Page
74
4.4 Consolidated
notes
Other intangibleIntangible assets DevelopmentGoodwillSoftware Totalassetsunder developmentprojectsCostat 1 January 2023 25,440 4,426 4,237 1,458 30,098 65,659Foreignexchangeadjustments - - - - - -Investments- - 94 112 355 561Disposals(3,145) (4,426) (2,716) (98) (25,517) (35,902)Transferredbetween categories - - - -Costat 31 December 2023 22,295 - 1,615 1,472 4,936 30,318Amortisationand impairment 1- 2,868 - 469 21,897 25,234January2023Foreignexchange adjustment - - - - - -Disposals- (2,868) - (49) (19,523) (22,440)Amortisation- - - 154 566 720Amortisationand impairment 31- - - 574 2,940 3,514December2023Carryingamount 31 December 2023 22,295 - 1,615 898 1,996 26,804
DKK Thousands
12. Intangible assets CONTINUED
| Annual
report
2024
Page
75
4.4 Consolidated
notes
DKK
Thousands 2024 2023
Depreciation
is included in the items:
Production costs 451 504Distributioncosts 161 180Administrativecosts 32 36644 720
Impairment test of goodwill:
The carrying amount of goodwill related to SKAKO Dartek, DKK 22,295.
12. Intangible assets CONTINUED
Key assumptions
The recoverable amount determined in the impairment test is based on a value-in-use
calculation. To determine the value-in-use, management is required to estimate the
present value of the future free net cash flow based on budgets and strategy for the
coming five years as well as projections for the terminal period. Significant parameters in
the estimate of the present value are discount rate, revenue growth, EBIT margin,
expected investments and growth expectations for the terminal period.
The discount rate is determined to reflect the risks. The discount rate applied is the
weighted average cost of capital (WACC) and reflects the latest market assumptions for
the cost of equity and the cost of debt. The discount rate used amounts to 10.0% before
tax and estimates for future revenue growth (2023: 10.0% before tax). The uncertainties
associated with these expectations are reflected in the cash flow.
The expected annual growth rate and the expected margins in the budget period are
based on historical experience and the assumptions about expected market
developments. The long-term growth rate for the terminal period is based on the
expected growth in the world economy, specifically for the industries. The valuation
method is based on annual revenue growth of 2% in 2025 to 2029 as well as in the
terminal period (2023: 2%). Investments reflect both maintenance and expectations of
organic growth.
Over the next five years, the EBIT margin is expected at stable at the current level around
10% (2023: 10%).
Sensitivity analysis
Based on current assumptions we see no impairment indications, and our key
assumptions are not sensitive to reasonable changes to an extent that will result in
an impairment loss neither individually or in combination. For example, a lowering of
perpetual growth to zero and increasing the discount rate by two percentage points
will not lead to impairment. Similarly, a decrease in EBIT by 20% in combination with
an increase in investments as a percentage of revenue by 1 percentage points will
not lead to impairment.
A sensitivity analysis has not been carried out, as negative changes in the
fundamental assumption, which will result in impairment of goodwill, are considered
unlikely to become a reality.
| Annual
report
2024
Page
76
4.4 Consolidated
notes
13. Tangible assets
Land and buildings, plant and machinery and other facilities, operating equipment and tools and equipment are measured at cost less accumulated
depreciation and impairment losses.
Depreciation is charged on a straight-line basis over the estimated useful life of the assets until they reach the estimated residual value.
Estimated useful life is as follows:
• Buildings, 10-40 years
• Plant and machinery, 3-10 years
• Operating equipment and other tools and equipment, 3-10 years
• Leasehold improvements, 3-10 years
• Land not depreciated
Newly acquired assets are depreciated from the time they are available for use.
Accounting policy
| Annual
report
2024
Page
77
4.4 Consolidated
notes
Tangible assetsPlant & Operating equipment, Leasehold Land & buildingsin course ofTotalmachineryfixtures and fittingsimprovementsconstructionCost1 January 2024 6,189 5,989 9,712 3,309 74 25,273Foreignexchange adjustments 18 15 (29) - - 3Investments903 631 3,422 - 172 5,128Disposals- (147) (211) - - (358)Transferred between categories - - - 571 - 571Costat 31 December 2024 7,109 6,488 12,894 3,880 246 30,617Depreciationand impairment 2,016 4,821 8,039 882 - 15,7581January 2024Foreignexchange adjustments 13 11 (91) - - (67)Disposals- (147) (211) - - (358)Depreciation358 264 852 378 - 1,852Depreciation and impairment 2,387 4,949 8,589 1,260 - 17,18531December 2024Carryingamount 31 December 2024 4,722 1, 539 4,304 2,620 246 13,432
DKK Thousands
13. Tangible assets CONTINUED
| Annual
report
2024
Page
78
4.4 Consolidated
notes
Tangible assetsPlant & Operating equipment, Leasehold Land & buildingsin course ofTotalmachineryfixtures and fittingsimprovementsconstructionCost1 January 2023 8,422 10,827 17,049 7,440 156 43,894Foreignexchange adjustments - (4) (9) - - (13)Investments1,942 260 819 557 - 3,578Disposals(4,176) (5,094) (8,147) (4,688) (81) (22,186)Transferred between categoriesCost31 December 2023 6,189 5,989 9,712 3,309 74 25,273Depreciationand impairment 1 January 2,601 9,589 14,591 4,534 - 31,3152023Foreignexchange adjustments - (3) (9) - - (12)Disposals(867) (4,951) (6,965) (3,943) - (16,726)Amortization282 186 422 292 - 1,182Depreciationand impairment 31 2,016 4,821 8,039 882 - 15,758December2023Carryingamount 31 December 20234,173 1,168 1,673 2,427 74 9,515
DKK Thousands
DKK
Thousands 2024 2023
Depreciation
is included in the items:
Production costs 1,296 827Distributioncosts 463 296Administrativecosts 93 591,852 1,182
13. Tangible assets CONTINUED
| Annual
report
2024
Page
79
4.4 Consolidated
notes
14. Leases – right-of-use 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, less any lease incentives receivable.
• Variable lease payment that are based on an index or a rate, initially measured using the index or rate as the commencement date.
• Amounts expected to be payable by the Group under residual value guarantees.
• The exercise price of a purchase option if the Group is reasonably certain to exercise that option.
• Payments of penalties for terminating the lease if the lease term reflects the Group exercising that option.
The lease payments are discounted using the interest rate for implicit in the lease. If that rate cannot be readily determined, which is generally the case for
leases in the Group., the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to
obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
Lease payments are allocated between principal 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.
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 cost and restoration cost.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. While the Group revalues its
land and buildings that are presented within property, plant and equipment, it has chosen not to do so for the right-of-use buildings held by the Group.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognized on a straight-line basis as an expense in
profit or loss. Short-term leases are leased with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture.
Accounting policy
| Annual
report
2024
Page
80
4.4 Consolidated
notes
Leaseassets Rental of promises Equipment Company cars TotalCosts1 January 2024 9,312 498 7,499 17,309Additions5,326 - 3,305 8,631Disposals- - (1,536) (1,536)Reclassification- - - -Exchangerate adjustment - 2 16 18Costs31 December 2024 14,638 500 9,284 24,422Depreciationand impairment loss 1 January 2024 4,379 171 4,734 9,284Depreciation2,164 67 1,718 3,949Depreciationreversed on disposals - - (1,536) (1,536)Exchangerate adjustment - 1 9 10Depreciationand impairment loss 31 December 2024 6,543 239 4,925 11,707Carryingamount 31 December 2024 8,095 261 4,359 12,715
DKK Thousands
Leaseassets Rental of promises Equipment Company cars TotalCosts1 January 2023 10,561 682 9,490 20,733Additions4,404 342 2,276 7,022Transferredbetween categories (5,653) (526) (4,267) (10,446)Disposals- - - -Exchangerate adjustment - - - -Costs31 December 2023 9,312 498 7,499 17,309Depreciationand impairment loss 1 January 20234,544 475 6,928 11,947Depreciation1,271 15 1,323 2,609Depreciationreversed on disposals (1,436) (319) (3,517) (5,272)Exchangerate adjustment - - - -Depreciationand impairment loss 31 December 2023 4,379 171 4,734 9,284Carryingamount 31 December 2023 4,933 327 2,765 8,025
DKK Thousands
14. Leases – right-of-use assets CONTINUED
| Annual
report
2024
Page
81
4.4 Consolidated
notes
Leaseliabilities – DKK Thousands2024 2023Lease liabilities are recognized in the balance sheet as follows:Non-current liabilities 9,772 5,989Currentliabilities 2,917 2,905Totallease liabilities 12,689 8,894Recognizedin the profit and loss statement:Interest expensesrelated to lease liabilities 438 186Expenserelating to short-term leases (included in cost of goods sold and administrative expenses) 2,051 1,397Expenserelating to leases of low-value assets that are not shown above as short-term leases 7 7Expense relation to variable lease payments not included in lease liabilities - -
Cashflow from leasing – DKK Thousands2024 2023Interests(438) (186)Liabilitiespayment (2,051) (1,397)Adjustmentsin total according to leases (2,488) (1,583)
14. Leases – right-of-use assets CONTINUED
| Annual
report
2024
Page
82
4.4 Consolidated
notes
15. Deferred tax
Deferred tax is calculated using the balance sheet liability method on temporary differences between the carrying amounts for financial reporting purposes
and the amounts used for taxation purposes. Deferred tax is calculated based on the applicable tax rates for the individual financial years. The effect of
changes in the tax rates is stated in the income statement unless they are items previously entered in the statement of other comprehensive income.
A deferred tax provision is made to cover re-taxation of losses in foreign enterprises if shares in the enterprises concerned are likely to be sold and to cover
expected additional future tax liabilities related to financial year or previous years. No deferred tax liabilities regarding investments in subsidiaries are
recognized if the shares are unlikely to be sold in the short term.
The tax value of losses that are expected with adequate certainty to be available for utilization against future taxable income in the
same legal tax unit and jurisdiction is included in the measurement of deferred tax.
SKAKO A/S is jointly taxed with all Danish subsidiaries, SKAKO A/S being the administrator of the Danish joint taxation.
All the Danish subsidiaries provide for the Danish tax based on the current rules with full distribution. Recognition of deferred tax assets and tax liabilities is
made in the individual Danish enterprises based on the principles described above. The jointly taxed Danish enterprises are included in the Danish tax payable on
account scheme.
If companies in the Group have deferred tax liabilities, they are valued independently of the time when the tax, if any, becomes payable.
Significant estimate by Management
Deferred tax assets, including the tax value of tax losses allowed for carry forward, are recognized in the balance sheet at the estimated realisable value of
such assets, either by a set-off against a deferred tax liability or by a net asset to be set off against future positive taxable income. At the balance sheet date,
an assessment is made as to whether it is probable that sufficient taxable income will be available in the future against which the deferred tax asset can be
utilized. Deferred tax on temporary differences between the carrying amounts and the tax values of investments in subsidiaries is recognized unless the Parent
is able to control the time of realization of such deferred tax, and it is probable that such deferred tax will not be realized as current tax in the foreseeable
future. Deferred tax is recognized in respect of eliminations of intra-Group profits and losses.
Accounting policy
| Annual
report
2024
Page
83
4.4 Consolidated
notes
DKKThousands 2024 2023Deferred tax recognized in the balance sheet:Deferredtax assets 10,107 9,891Deferredtax, net 31 December 10,107 9,891Deferredtax, net 1 January 9,891 25,575Foreigncurrency translation adjustments - -Changesin deferred tax 216 (15,684)Deferredtax, net 31 December 10,107 9,891Deferredtax:Intangibleassets (456) (989)Property, plants and equipment (77) 55Inventories939 1,055Provisions- -Tax losses10,107 10,330Otheritems (406) (560)10,107 9,891Deferred tax assets not recognized:Intangibleassets - -Property, plants and equipment 205 205Inventories- -Other items 121 121Tax losses16,976 17,38417,302 17,710
Tax losses carried forward are not subject to time limitation. All recognized deferred tax assets are expected to be offset against positive taxable income within a five-year
period. Recognition is based on current results and Management’s expectations for the future. The deferred tax assets are evaluated in each tax jurisdiction in the SKAKO
Group, consisting of joint taxations in respectively Denmark, France, Germany, Spain and the UK.
Management has performed a sensitivity analysis on expectations for the future. This shows that a 10 % decrease compared to expectations will result in a decrease of DKK
1.3m in the recognized deferred tax assets. Because the deferred tax assets are evaluated in each tax jurisdiction, the sensitivity cannot be applied on a linear basis.
15. Deferred tax CONTINUED
| Annual
report
2024
Page
84
4.4 Consolidated
notes
16. Inventory
Accounting policy
Raw materials, work-in-progress and goods for resale are measured at cost according to the FIFO principle (according to which the most recently purchased
items are considered to be in stock) or at their net realizable value, whichever is lower.
Group-manufactured products and work in progress are measured at the value of direct cost, direct payroll costs, consumables and a proportionate share of
indirect production costs (IPC), which are allocated on the basis of the normal capacity of the production facility. IPC include the proportionate share of
capacity costs directly relating to Group-manufactured products and work in progress.
Inventory– DKK Thousands 2024 2023Rawmaterials and consumables 5,528 3,854Work-in-progress 6,042 4,612Finishedgoods and goods for resale 18,702 17,717Inventories net of write-downs at 31 December 30,272 26,182Includedin Income Statement under production costs:Write-down of inventories for the year542139Write-down of inventories prior year101,832105,893Costs of goods sold during the year
Write-downs for the year are shown net as breakdown into reversed write-downs.
| Annual
report
2024
Page
85
4.4 Consolidated
notes
17. Contract assets and liabilities
Accounting policy
Revenue is recognized based on the value of the work completed at the balance sheet date. The revenue corresponds to the sales value of the year’s
completed work based on costs incurred as a percentage of the total estimated costs (percentage of completion method).
The stage of completion for the individual project is calculated as the ratio between the cost incurred at the balance sheet date and the total estimated cost to
complete the project. In some projects, where cost estimates cannot be used as a basis, the ratio between completed sub-activities and the total project is
used instead. All direct and indirect costs that relate to the completion of the contract are included in the calculation.
When invoicing on account exceeds the value of the work completed, the liability is recognized as a contract liability under short-term liabilities.
If projects are expected to be loss-making, the loss is recognized immediately in the income statement. Costs not yet incurred are provided for as other
provisions. Provisions are based on individual assessment of the estimated loss until the projects have been completed.
Significant assessment by Management
Total expected costs related to work-in-progress for third parties are partly based on estimates as they include provisions for unforeseen cost deviations in
future supplies of raw materials, subcontractor products and services plus construction and handing over. Provisions for warranties on work-in-progress for
third parties are based on Management estimates for each project while taking contract obligations into account.
| Annual
report
2024
Page
86
4.4 Consolidated
notes
DKKThousands 2024 2023Totalcosts incurred 63,401 82,276Valuationafter IFRS 9 (note 21) (139) (139)Profitrecognized as income, net 18,247 26,633Contractassets 81,510 108,770Contractliabilities (46,090) (73,877)Netcontract assets and liabilities 35,420 34,893Ofwhich contract assets are stated under assets 36,429 38,203andcontract liabilities (1,009) (3,310)Netcontract assets and liabilities 35,420 34,893
Contract assets and liabilities consist of all open projects on 31 December including cost and profit recognized in prior years.
The majority of all contract assets and liabilities on 31 December are expected to be revenue recognized in 2024.
17. Contract assets and liabilities CONTINUED
| Annual
report
2024
Page
87
4.4 Consolidated
notes
18. Bank loans and credit facilities
Accounting policy
Debt to credit institutions is recognized at the date of borrowing at the proceeds received less transaction costs. For subsequent periods, financial liabilities are
measured at amortized cost for the difference between proceeds and the nominal value to be recognized as a financial expense over the term of the loan.
Carrying
DKK ThousandsMore than 5Total2024 0-1 year 1-5 yearsWeighted averageyears amount effective interest rateCashand cash equivalents 24,839 - - 24,839 24,839 0.6%Assets24,839 - - 24,839 24,839 0.6%Leasedebt (2,917) (9,772) - (12,689) (12,689) 5.5%Otherdebt (2,290) - - (2,290) (2,290) 0.0%Debtto credit institutions - (2,074) - (2,074) (2,074) 1.0%Shortterm bank facilities (45,083) - - (45,083) (45,083) 5.0%Liabilities(50,290) (11,846) - (62,136) (62,136) 4.8%Netdebt (25,451) (11,846) - (37,297) (37,297) 4.3%
| Annual
report
2024
Page
88
4.4 Consolidated
notes
DKK ThousandsWeighted average2023 0-1 year 1-5 years TotalMore than 5CarryingYears amount effective interest rateCashand cash equivalents 156,027 - - 156,027 156,027 3.1%Assets156,027 156,027 156,027 3.1%Leasedebt (2,905) (5,989) - (8,895) (8,895) 3.4%Otherdebt (2,270) - - (2,269) (2,269) 0.0%Debtto credit institutions - (4,106) - (4,106) (4,106) 0.4%Shortterm bank facilities (3,278) - - (3,278) (3,278) 6.0%Liabilities(8,453) (10,095) - (18,548) (18,548) 3.4%Netdebt 147,574 (10,095) - 137,479 137,479 2.9%
Based on the Group’s net debt at the end of the 2024 financial year, a rise of 1 percentage point in the general interest rate level will cause a decrease in consolidated
annual earnings after tax and equity of approx. DKK 370k (DKK 150k in 2023).
Cash management
SKAKO is committed to maintaining a flexible capital structure. On 31 December 2024, SKAKO had undrawn committed credit facilities in the amount of DKK 44,053k (2023:
DKK 168,797k). On 31 December 2024, SKAKO had ‘cash and cash equivalents’ and ‘bank overdraft’, net of DKK (20,244)k (2022: DKK 152,749k).
Capital management
SKAKO monitors capital on the basis of the net debt relative to EBITDA. At the end of the year, the net debt to EBITDA ratio was equity ratio was 1.3 (2023: negative
4.7). SKAKO has a medium-term goal of a net debt to EBITDA ratio below 2.5.
18. Bank loans and credit facilities CONTINUED
| Annual
report
2024
Page
89
4.4 Consolidated
notes
19. Provisions
Accounting policy
Provisions are recognized when the Group, due to an event occurring before or at the balance sheet date, has a legal or constructive obligation and it is
probable that financial benefits must be waived to settle the obligation. Provisions are measured according to Management’s best estimate of the amount
whereby the obligation is expected to be settled.
Provisions for warranty claims are estimated on a project-by-project basis based on historically realized cost related to claims in the past. The provision covers
estimated own costs of completion, subsequent warranty supplies and unsettled claims from customers or subcontractors.
Provisions regarding disputes and lawsuits are based on Management’s assessment of the likely outcome settling the cases based on the information at hand
at the balance sheet date.
Significant assessment by Management
Management assesses provisions and the likely outcome of pending and probable lawsuits, etc. on an on-going basis. The outcome depends on future events,
which are uncertain by nature. In assessing the likely outcome of lawsuits, etc., Management bases its assessment on internal and external legal assistance and
established precedents.
Warranties and other provisions are measured on the basis of empirical information covering several years. Together with estimates by Management of future
trends, this forms the basis for warranty provisions and other provisions. Long-term warranties and other provisions discounted to net present value takes
place based on the future cash flow and discount rate expected by Management.
| Annual
report
2024
Page
90
4.4 Consolidated
notes
DKKThousands 2024Warranties Other provisions TotalProvisionsat 1 January 1,427 1,659 3,086Foreignexchange adjustments - 5 5Additions1,904 1,268 3,172Used(1,029) (1,664) (2,693)Reversals(800) - (800)Provisionsat 31 December 1,502 1,268 2,770Thematurity of provisions is specified as follows:Current liabilities1,277 0 1,277Non-current liabilities 225 1,268 1,4931,502 1,268 2,770
DKKThousands 2023Warranties Other provisions TotalProvisionsat 1 January 3,524 4,351 7,875Foreignexchange adjustments 0 (2) (2)Additions1,827 1,659 3,486Used(2,724) (4,349) (7,073)Reversals(1,200) - (1,200)Provisionsat 31 December 1,427 1,659 3,086Thematurity of provisions is specified as follows:Current liabilities1,027 0 1,027Non-current liabilities 400 1,659 2,0591,427 1,659 3,086
Provisions for warranty covers a 1-3-year warranty period.
Other provisions relate to provisions for disputes, etc. and are essentially expected to be applied within the next five years.
19. Provisions CONTINUED
| Annual
report
2024
Page
91
4.4 Consolidated
notes
20. Adjustments, consolidated cash flow statement
DKKThousands 2024 2023Amortisation and depriciation 6,445 4,511Changein provisions (316) (1,403)Financialitems received and paid 2,990 3,330Other- (73,511)9,119 (67,073)
DKKThousands 2024 2023Borrowings1 January 18,548 29,757Repayments(6,847) (18,231)Newborrowings 50,435 7,022Currencyadjustments - -Borrowings31 December 62,136 18,548
Adjustments
Change in borrowings and short-term credit facilities
| Annual
report
2024
Page
92
4.4 Consolidated
notes
21. Exchange rate, liquidity and credit risks
Accounting policy
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past
due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of
contracts. The Group has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the
contract assets.
The expected loss rates are based on the payment profiles of sales over a period of 36 months before 31 December 2024 and the corresponding historical
credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic
factors affecting the ability of the customers to settle the receivables.
Trade receivables and contract assetsare written down when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of
recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a
period of longer than 120 days past due.
Impairment losses on trade receivables and contract assets are presented as net impairment losses within operating profit. Subsequent recoveries of amounts
previously written down are credited against the same line item.
Risk management activities in the SKAKO Group mainly focus on financial risks to which the Company is fairly likely to be exposed. In connection with the preparation of
the Group’s strategic, budgetary and annual plans, the Board of Directors considers the risks identified in these activities.
Financial risks
Financial risk management concentrates on identifying risks in respect of exchange rates, credit and liquidity with a view to protecting the Group against potential losses and
ensuring that Management’s forecasts for the current year are only to a limited extent affected by changes or events in the surrounding world – be the changes
in exchange rates or in interest rates. It is Group policy to exclusively hedge financial risks arising from our commercial activities and not to undertake any financial
transactions of a speculative nature.
Exchange rate risks
With more than 90% of the Group’s sales being invoiced in foreign currencies, primarily EUR, reported revenue is affected by movements in the Group’s trading
currencies. The Group does not hedge (systematic) currency risks with financial instruments but seeks to minimize such exchange rate risks by matching positive
and negative cash flows in the main currencies as much as possible. The Group conducts ongoing conversion to DKK in connection with the purchase and sale of
foreign currency and monitoring of currency exposure.
| Annual
report
2024
Page
93
4.4 Consolidated
notes
Below is a sensitivity analysis in respect of exchange rates, given a positive change of 5% in the currencies with the highest exposures. We do not consider a currency risk
on EUR. The estimate has been provided on a non-hedged basis.
Liquidity risk
The Group aims at having sufficient cash resources to be able to take appropriate steps in case of unforeseen fluctuations in cash outflows. We
have access to suitable undrawn credit facilities and the liquidity risk is therefore considered to be low.
Credit risks
The Group’s credit risks relate primarily to trade receivables and contract assets. For large projects we have a signed Letter of Credit from the customer’s bank before we
undertake any work. Our remaining customer base is fragmented so credit risks in general only involve minor losses on individual customers.
Overall, we therefore estimate that we have no major credit exposure on Group level. The maximum credit risk relating to receivables matches the carrying amount of
such receivables. All trade receivables are considered to be paid within one year
Trade receivables can be allocated as follows:
The Group has two types of financial assets that are subject to the expected credit loss model:
• Trade receivables from contracts with customers
• Contract assets from plant sales
2024: Potential impact on 2023: Potential impact onDKK ThousandsNet position Change in currencyP/L and Equity P/L and equityEUR47,106 0% 0 0USD2,604 10% 260 78GBP8,894 5% 445 598SEK588 5% 29 0NOK62 5% 3 0MAD18,740 5% 937 712
DKKThousands2024 2023Europe41,813 53,193TheUSA 903 112Africa23,111 4,969Other485 -66,312 58,274
21. Exchange rate, liquidity and credit risks CONTINUED
| Annual
report
2024
Page
94
4.4 Consolidated
notes
While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial. The
loss allowance as at 31 December 2023 and 31 December 2024 was determined as follows for both trade receivables and contract assets:
31 December 2024 – DKK Thousands
The closing loss allowances for trade receivables and contract assets as at 31 December 2023 reconcile to the opening loss allowances as follows:
Due 31-120Not Due Due 0-30 daysDue 121-365 Due more thanTotaldays days 1 yearExpectedloss rate 0.6% 1.0% 1.5% 2.5% 57.0%Grosscarrying amount – trade receivables 49,190 5,794 4,464 4,306 7,243 70,997Grosscarrying amount – contract assets 36,429 0 0 0 0 36,429Lossallowance 462 58 67 108 4,129 4,824
31
December 2023 – DKK Thousands
Due 31-120 Due 121-365 Due more thanNot Due Due 0-30 daysTotaldays days 1 yearExpectedloss rate 0.1% 0.4% 1.0% 1.9% 30.0%Grosscarrying amount – trade receivables 42,880 5,831 3,226 2,485 8,229 62,651Grosscarrying amount – contract assets 38,203 0 0 0 0 38,203Lossallowance 81 58 43 19 4,315 4,516
DKK ThousandsContract assets Trade receivables2024 2023 2024 20231January – calculated under IFRS 9 139 138 4,377 2,080Increase in loan loss allowance recognized in profit or loss during 139 139 4,685 4,377theyearReceivables written off during the year as uncollectible - - - -Unusedamount reversed (139) (138) (4,377) (2,080)At31 December 139 139 4,685 4,377
21. Exchange rate, liquidity and credit risks CONTINUED
| Annual
report
2024
Page
95
4.4 Consolidated
notes
The company’s financial institutions have provided bank guarantees for consignments and prepayments of a total of DKK 61.3m (2023: DKK 28.3m).
Towards the company’s primary financial institution, a deposit of DKK 50m (2023: DKK 50m) has been provided with deposit in unsecured claims, stocks, tangible assets
and intangible rights.
There is a 21-month rent commitment related to a building in Denmark. The minimum rent liability amounts to DKK 3.5m (2023: DKK 2.1m).
The Danish subsidiaries of the Group are liable for tax of the jointly taxed income, etc. of the Group. SKAKO A/S is the administrative company of the joint taxation.
22. Contractual liabilities, contingent liabilities and
securities
25. Approval and publication
At the Board meeting on 12 March 2025, our Board of Directors approved this Annual Report 2024 for publication. The report will be presented to the shareholders of
SKAKO A/S at the annual general meeting on 24 April 2025.
24. Events after the balance sheet date
There have been no events that materially affect the assessment of this Annual Report 2024 after the balance sheet date and up to today.
23. Related parties
SKAKO A/S has no related parties with a controlling interest. Given its share of ownership, Frederik2 ApS are considered to have significant influence.
The company’s related parties comprise the company’s Executive Management, Board of Directors and these persons’ related family members. Related parties also
comprise companies in which the before-mentioned persons have controlling or common control. In addition, related parties comprise the subsidiaries cf. page 113 in which
SKAKO A/S has controlling or significant influence.
| Annual
report
2024
Page
96
4.4 Consolidated
notes
The Group’s general accounting policies are described below. In addition to this,
specific accounting policies are described in each of the individual notes to the
consolidated financial statements.
26. Group accounting policies
Generally
The consolidated financial statements are presented in compliance with IFRS
Accounting Standards (IFRS) as adopted by the EU and Danish disclosure
requirements for annual reports published by reporting class D (listed) companies
cf. the Danish executive order on IFRS issued in compliance
with the Danish Financial Statements Act. The registered office of SKAKO A/S is in
Faaborg, Denmark.
The consolidated financial statements are presented in Danish kroner (DKK), which
is the presentation currency for Group activities and the functional currency for the
Parent. The consolidated financial statements are presented on the basis of
historical cost except for share-based remuneration which are measured at their
fair value.
The financial statements for the Parent as well as the Parent’s accounting policies
are presented from the consolidated financial statements and are shown on the
last part of this Annual Report 2024.
The accounting policies remain unchanged for the consolidated financial
statements compared to 2023.
Effect of new accounting standards
New standards, amendments, and interpretations adopted but not yet effective
The IASB has issued the following new standards, amendments and new
interpretations which could be relevant to SKAKO A/S,but which have not yet
been adopted by the EU:
• IFRS 18, Presentation and Disclosure in Financial Statements: This new
standard replaces IAS 1 and it implements set of new requirements for
presentation and disclosures in the financial statements. The new standard
requires the income statement to be structured into five categories, while also
introducing two new subtotals. Furthermore, the new term “Management
Performance Measures (MPM)” is introduced, which must be disclosed in the
notes of the financial statements. The new requirements for presentation and
disclosures are applicable for all financial statements, including consolidated
financial statements, separate financial statements and interim financial
statements.
The amendment will be effective for financial years beginning on or after 1
January 2027. Early adoption of the amendment is permitted, when approved by
the EU.
Changes in accounting policies and classification for 2024
No new standards are expected to be implemented in 2024.
Distribution costs
Distribution costs include costs relating to training, sales, marketing, promotion
materials, distribution, bad debts as well as depreciation, amortisation and
impairment losses on assets used for distribution purposes.
Income statement
Income and costs are recognized on an accrual basis. The income statement is
broken down by function, and all costs including depreciation, amortization and
impairment losses are then charged to production, distribution and
administration.
Consolidation principles
The consolidated financial statements are prepared on the basis of the financial
statements for the Parent and its subsidiaries by aggregating uniform items.
The financial statements included in the consolidated financial statements are
prepared in accordance with the Group’s accounting policies. Intra-Group income,
expenses, shareholdings, balances and dividends as well as unrealized intra- Group
profits on inventories are eliminated. The accounting items of subsidiaries are
recognized 100% in the consolidated financial statements.
Consolidated financial statements
The consolidated financial statements comprise SKAKO A/S (the Parent) and the
enterprises in which the Parent can or actually does exercise control by either
directly or indirectly holding more than 50% of the voting rights.
Classification discontinued activities
A discontinued operation is a component of the entity that has been disposed.
The results of discontinued operations are presented separately in the
statement of profit or loss. Comparatives in the statement of profit and loss for
previous periods are restated to reflect the result of discontinued operations.
Definition of materiality
IFRS contain extensive disclosure requirements. The Group discloses the
information required according to IFRS unless such information is deemed
immaterial.
Effect of new accounting standards not yet in force
Revised and new standards and interpretations issued, but not yet effective or
approved by the EU at the time of publication of this Annual Report 2024 have not
been incorporated into this report.
| Annual
report
2024
Page
97
4.4 Consolidated
notes
Prepaid expenses
Prepaid expenses recognized under assets include costs relating to the subsequent
financial years. Prepaid expenses are measured at cost.
Cash flow from investing activities comprises cash flows from the purchase and
sale of intangible, tangible and financial non-current assets.
Cash flow from financing activities comprises cash flows from raising and repaying
long-term debt, instalments on lease liabilities and bank overdraft.
26. Group accounting policies CONTINUED
Cash flow statement
The cash flow statement is prepared according to the indirect method and reflects
the consolidated net cash flow broken down into operating, investing and financing
activities.
Cash flow from operating activities includes inflows from the year’s operations
adjusted for non-cash operating items, changes in working capital, financial
income received and expenses paid, realized foreign currency translation gains
and losses and income tax paid. Cash flow from investing activities includes the
purchase, development, improvement or sale of intangible assets and property,
plant and equipment.
Treasury shares
On the sales of treasury shares, the purchase price or selling price, respectively, is
recognized directly in equity under other reserves (retained earnings).
Equity
Foreign currency translationreserve includesforeign currency translationadjustments
on the translation of financial statements of foreign subsidiaries from their respective
functionalcurrencies into Danish kroner. Foreign currency translation adjustments
are recognized in the income statement on realizationof the net investment. Hedging
reserves include fair value adjustments of derivatives satisfying the criteria for hedging
of future transactions.The amounts are recognized in the income statement or the
balance sheet in step with recognition of the hedged transactions.
Cash and cash equivalents
Cash and cash equivalents consist of bank deposits and certain overdrafts, and
other liquid assets.
Deferred income
Deferred income includes income received relating to the subsequent financial
year. Deferred income is measured at cost.
Financial ratios
Financial ratios are calculated as follows:
• Gross profit margin = Gross profit x 100 / Revenue
• Profit margin = EBIT x 100 / Revenue
• Liquidity ratio = Total current assets x 100 / Total current liabilities
• Equity ratio = Total equity x 100 / Total assets
• Return on equity = Profit for the period x 100 / (Equity this year + equity prior
year) / 2
• Financial leverage = Net interest-bearing debt x 100 / Equity
• Net debt to EBITDA = Net debt / EBITDA (EBIT less depreciations)
• NWC/Revenue = Net working capital x 100 / Revenue
• Earnings per share = Profit for the period / Shares in free flow
• Equity value per share = Equity / Total shares
• Share price = Share price at end of period
• Price-book ratio = Share price / Equity per share
• Market capitalization = Total number of share x Share price
• ROIC = NOPAT / (Invested capital this year + invested capital prior year) / 2
• NOPAT = Profit for the period +/- net financial income
• Invested capital = Total assets - net cash and credits - deferred tax assets – non-
interest-bearing current liabilities
Estimates and judgements
On the preparation of the consolidated financial statements, Management makes a
number of accounting estimates and judgements. These relate to the recognition,
measurement and classification of assets and liabilities. Many items can only be
estimated rather than accurately measured. Such estimates are based on the most
recent information available on preparation of the financial statements. Estimates
and assumptions are therefore reassessed on an ongoing basis. Actual figures may,
however, deviate from these estimates. Any changes in accounting estimates will be
recognized in the reporting period in which such changes are made. See list of
significant estimates and assessments in chapter 3.4
Administrative expenses
Administrative expenses include administrative staff costs, office expenses as
well as depreciation, amortisation and impairment losses on assets used for
administrative purposes.
| Annual
report
2024
Page
98
4.5 Parent
company
financial
statements
3.5 PARENT COMPANY FINANCIAL
STATEMENTS
Notes
Revenue
Other
income 16,134 75,000
1,2
Administrative expenses
(5,808) (3,078)
Operating
profit before special items (EBIT) 10,326 71,922
3
Special items
- (1,934)
Operating profit (EBIT)
10,326 69,988
4,
8
Financial
income 1,303 1,915
4
Financial
expenses (2,532) (4,888)
Profit
before tax 9,097 67,015
5
Tax
on profit for the year 1,293 2,714
Profit for the
year 10,390 69,730
Parent company income statement
2024 2023
DKK
Thousands 2024 2023
Notes
Profit for the year
10,390 69,730
Other comprehensive income - -
Comprehensive income 10,390 69,730
Parent company statement of comprehensive income
DKK Thousands
| Annual
report
2024
Page
99
4.5 Parent
company
financial
statements
Notes
Leased
assets 397 -
8
Tangible assets
397 -
9
Investments
in subsidiaries 180,293 164,159
Other
receivables - -
10
Deferred
tax assets 1,782 1,928
Other
non-current assets 182,075 166,087
Total
non-current assets 182,472 166,087
Receivables
from subsidiaries - 164
Trade
receivables 1,429 -
Income
tax 10,441 1,806
Other
receivables 61 60
Prepaid
expenses 189 230
Other
investments - -
Cash
963 126,246
Current assets 13,083 128,506
Assets 195,555 294,593
Parent company balance sheet - 31 December
DKK Thousands 20232024
| Annual
report
2024
Page
100
4.5 Parent
company
financial
statements
Notes
Share
capital 31,525 31,064
Retained
earnings 9,696 128,014
Proposed
dividends 7,881 15,532
Total equi
ty 49,102 174,610
Leasing
274 -
Non
-current liabilities 274 -
Leasing
129 -
Debt
to subsidiaries 36,965 117,073
Bank
loans and credit facilities 103,944 -
Trade
payables 416 627
Income
tax - -
Other
liabilities 4,725 2,283
Current
liabilities 146,179 119,983
Liabilities
146,453 119,983
EQUITY AND LIABILITIES 195,555 294,593
Parent company balance sheet - 31 December
DKK Thousands 20232024
| Annual
report
2024
Page
101
4.5 Parent
company
financial
statements
Notes
Profit
before tax 9,097 67,015
11
Adjustments
(15,037) (74)
Changes
in receivables, etc. (1,389) -
Change
in trade payables and other liabilities, etc. (1,643) (1,225)
Cash
flow from operating activities before financial items and tax (8,972) 65,716
Interest
received (1,303) (1,915)
Interest paid
2,532 4,888
Taxes
paid and received (4,892) -
Cash
flow from operating activities (12,635) 68,689
Investment in
tangible assets (529) -
Cash flow from
investing activities (529) -
Change
in intra-Group balances (79,944) 79,339
Proceeds
from leasecontracts 529 -
Repayments
(126) -
Change
in short-term bank facilities 103,944 (6,738)
Distributed
dividends (136,522) (15,532)
Cash
flow from financing activities (112,119) 57,069
Change
in cash and cash equivalents (125,283) 125,758
Cash
and cash equivalents 1 January 126,246 488
Cash
and cash equivalents 31 December 963 126,246
Breakdown
of cash and cash equivalents at the end of the year:
Cash
963 126,246
Other
investments
Cash and cash equivalents at the end of the year 963 126,246
Parent company cash flow statement
DKK Thousands
2024 2023
| Annual
report
2024
Page
102
4.5 Parent
company
financial
statements
DKK
Thousands Share capital
Retained
Earnings
Proposed
Dividends
Equity
Equity
1 January 2024 31,064 128,014 15,532 174,610
Extraordinary
dividends (121,989) 121,989 -
Paid
dividends 999 (137.521) (136,522)
Increase
of share capital
461
461
Comprehensive income in 202
4:
Profit
for the year 2,509 7,881 10,390
Other comprehensive income
Comprehensive
income, year 2,509 7,881 10,390
Share
-based payment, share warrants 163 163
Equity
31 December 2024 31,525 9,696 7,881 49,102
Parent company statement of changes in equity
DKK
Thousands Share capital
Retained
earnings
Proposed
dividends
Equity
Equity
1 January 2023 31,064 73,222 15,532 119,818
Distributed
interim dividends (15,532) (15,532)
Comprehensive
income in 2023:
Loss
for the year 54,198 15,532 69,730
Other
comprehensive income 112 112
Comprehensive
income, year 54,310 15,532 69,842
Share
-based payment, share warrants 482 482
Equity
31 December 2023 31,064 128,014 15,532 174,610
| Annual
report
2024
Page
103
4.6 Parent
company
notes
3.6 PARENT COMPANY NOTES
1. Staff costs
Number of employees in 2024: 0 (2023: 0)
For information regarding Executive Management and Board of Directors remuneration, including share-based warrant plans,
please refer to note 4 and note 5 in the consolidated financial statements.
2.Fee to parent company auditors appointed
at the Annual General Meeting
The fee for non-audit services delivered by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab to
the parent company amounts to DKK 0.3m (2023: DKK 0.5m) and consists of accounting and tax advisory.
DKK
Thousands 2024 2023
PwC
Statutory
audit 824 376
Other
assurance engagements 125 -
Tax
and indirect taxes consultancy 190 119
Other
services 146 333
Other
audit firms
1,285 828
Statutory
audit - -
Other
assurance engagements - -
Tax
and indirect taxes consultancy 235 -
Other
services 106 -
341 -
| Annual
report
2024
Page
104
4.6 Parent
company
notes
DKK
Thousands 2024 2023
Interest
from subsidiaries - -
Dividends
received from subsidiaries - -
Reversal
of write-down of shares in subsidiaries - -
Financial
income from financial assets not measured at fair value in the income statement - -
Other
financial income 1,303 1,915
Financial
income 1,303 1,915
Interest
to subsidiaries (131) (2,602)
Interest
on bank debt (1,761) (1,711)
Interest
on lease debt (26) -
Financial
expenses on financial liabilities not measured at fair value in the income statement (1,918) (4,313)
Other
financial expenses (614) (574)
Financial
expenses (2,532) (4,888)
Net
financial items (1,229) (2,973)
4. Net financial income
3. Special items
There has been no special items in 2024.
Special items in 2023 consists of transaction costs for the terminated transaction process with Zefyr Invest and amounting to DKK 1.9m
| Annual
report
2024
Page
105
4.6 Parent
company
notes
DKK
Thousands 2024 2023
Current
tax on the profit for the year 1,439 1,806
Adjustment
of current tax, prior years - -
Change
in deferred tax (146) 908
Adjustment
of deferred tax, prior years - -
Impact
on changes in corporate tax rates - -
Tax
for the period 1,293 2,714
Danish
corporate tax rates 1,439 1,806
Effect
of tax rates in foreign jurisdictions - -
Impact
in changes in corporate tax rates - -
Tax
assets not capitalized (146) 908
Permanent differences
and other items - -
1,293 2,714
5. Tax on profit for the year
| Annual
report
2024
Page
106
4.6 Parent
company
notes
DKK
Thousands 2024 2023
Software Software
Cost
1 January 907 907
Investments
- -
Disposals
- -
Transferred
between categories - -
Cost
31 December 907 907
Amortization
and impairment 1 January 907 907
Disposals
- -
Amortisation
- -
Amortization
and impairment 31 December 907 907
Carrying
amount 31 December - -
6. Intangible assets
| Annual
report
2024
Page
107
4.6 Parent
company
notes
7. Tangible assets
DKK
Thousands
Leasehold improvements Operating equipment, fixtures and fittings Total
Cost
1 January 2023 341 2,168 2,509
Investments
- - -
Disposals
- - -
Transferred
between categories - - -
Cost
31 December 2023 341 2,168 2,509
Depreciation
and impairment 1 January 2023 341 2,168 2,509
Transferred
between categories - - -
Disposals
- - -
Depreciation
- - -
Depreciation
and impairment 31 December 2023 341 2,168 2,509
Carrying
amount 31 December 2023 - - -
DKK
Thousands
Leasehold improvements Operating equipment, fixtures and fittings Total
Cost
1 January 2024 341 2,168 2,509
Investments
- - -
Disposals
- - -
Transferred
between categories - - -
Cost
31 December 2024 341 2,168 2,509
Depreciation
and impairment 1 January 2024 341 2,168 2,509
Transferred
between categories - - -
Disposals
- - -
Depreciation
- - -
Depreciation
and impairment 31 December 2024 341 2,168 2,509
Carrying
amount 31 December 2024 - - -
| Annual
report
2024
Page
108
4.4 Consolidated
notes
Lease
assets Company cars Total
Costs
1 January 2024 - -
Additions
529 529
Disposals
- -
Reclassification
- -
Exchange
rate adjustment - -
Costs
31 December 2024 529 529
Depreciation
and impairment loss 1 January 2024 - -
Depreciation
132 132
Depreciation
reversed on disposals - -
Exchange
rate adjustment - -
Depreciation
and impairment loss 31 December 2024 132 132
Carrying
amount 31 December 2024 397 397
DKK Thousands
Lease
assets Company cars Total
Costs
1 January 2023 - -
Additions
- -
Transferred
between categories - -
Disposals
- -
Exchange
rate adjustment - -
Costs
31 December 2023 - -
Depreciation
and impairment loss 1 January 2023
- -
Depreciation
- -
Depreciation
reversed on disposals - -
Exchange
rate adjustment - -
Depreciation
and impairment loss 31 December 2023 - -
Carrying
amount 31 December 2023 - -
DKK Thousands
8. Leases – right-of-use assets
| Annual
report
2024
Page
109
4.6 Parent
company
notes
DKK
Thousands 2024 2023
Cost
1 January 260,534 260,534
Investments
- -
Disposals
- -
Cost
31 December 260,534 260,534
Write
-down 1 January (96,375) (96,375)
Reversal
of write-down 16,134 -
Write
-down 31 December (80,241) (96,375)
Carrying
amount 31 December 180,293 164,159
9. Investments in subsidiaries
Group companies are listed on page 113.
| Annual
report
2024
Page
110
4.6 Parent
company
notes
DKK
Thousands 2024 2023
Deferred
tax recognized in the balance sheet:
Deferred
tax assets 1,782 1,928
Deferred
tax liabilities - -
Deferred
tax, net 31 December 1,782 1,928
Deferred
tax, net 1 January 1,928 1,020
Changes
in deferred tax (146) 908
Deferred
tax, net 31 December 1,782 1,928
Deferred
tax assets:
Tax losses
1,782 1,928
1,782 1,928
Deferred
tax assets not recognized:
Property,
plants and equipment 205 205
Inventories
- -
Other
items 121 121
Tax losses
2,993 2,847
3,319 3,173
10. Deferred tax
Tax losses carried forward are not subject to time limitation.
| Annual
report
2024
Page
111
4.6 Parent
company
notes
DKK
Thousands 2024 2023
Depreciations
(132) -
Financial
items received and paid 1,229 2,973
Release of reserves due to
merger in subsidiaries (16,143) -
Other
- (3,047)
(15,037) (74)
11. Adjustments, cash flow statement
Adjustments
DKK
Thousands 2024 2023
Borrowings
1. January - 6,738
Repayments
(126) (6,738)
New
borrowings 104,473 -
Currency
adjustments - -
Borrowings
31. December 104,347 -
Change in borrowings and short-term credit facilities
12. Contracts liabilities, contingent
liabilities and securities
Please refer to note 21 in the consolidated financial statements.
As security for SKAKO Vibration Holding A/S’ and SKAKO Vibration A/S’ outstanding account in relation to its primary financial institution, the company has provided an
unlimited, joint and several suretyships.
Towards the company’s primary financial institution, a company deposit of DKK 50m (2023: DKK 50m) has been provided with deposit in unsecured claims, stocks, tangible
assets and intangible rights.
The company is jointly taxed with all Danish subsidiaries. The company is jointly and severally liable with the other companies in the joint taxation for Danish corporate taxes
and withholding taxes on dividend, interests and royalties within the joint taxation.
| Annual
report
2024
Page
112
4.6 Parent
company
notes
14. Events after the balance sheet date
Please refer to note 24 in the consolidated financial statements.
15. Accounting policies
The financial statements for 2024 of the parent company, SKAKO A/S has been prepared in accordance with IFRS Accounting Standards (IFRS) as adopted by the EU and
Danish disclosure requirements for annual reports of listed companies under reporting class D. The financial statements have been prepared in accordance with the
historical cost convention, as modified by the revaluation of derivative financial instruments at fair value.
The accounting policies for the financial statements of the parent company are unchanged from the last financial year and are the same as for the consolidated financial
statements with the following additions.
Supplementary accoun ting policies for the paren t company
Investments in Subsidiaries
Investments in subsidiaries are recognized at cost less impairment losses. Where the recoverable amount is lower than cost, investments are written down to this lower
value. Dividends received from investments in subsidiaries and associates are recognized in the income statement in the financial year in which the dividends are declared.
Intra-group transactions in the Parent Company Financial Statements
Intra-group transactions are recognized in the parent company financial statements at the carrying amount. Accordingly, additions to or disposals of investments are
recognized at the carrying amount, and any difference between the carrying amount of net assets and the consideration paid is recognized directly in equity.
Comparative figures are not restated.
Intercompany balances
Intercompany balances which are expected to be settled as part of the normal operating cycle, or where an unconditional right to defer settlement.
13. Related parties
Please refer to note 23 in the consolidated financial statements.
In 2024, the Parent Company has sold services to primarily to SKAKO Vibration A/S for DKK 2,7m (2023: DKK 11.7m) and paid net interest expenses, cf. note 3.
| Annual
report
2024
Page
113
Subsidiaries
Company
name Country Interest
SKAKO
A/S Denmark Parent
SKAKO
Vibration Holding A/S Denmark 100%
SKAKO
GmbH Germany 100 %
SKAKO
Vibration A/S Denmark 100 %
SKAKO
Vibration Ltd. UK 100 %
SKAKO
Dartek S.L. Spain 100 %
SKAKO
Vibration S.A. France 100 %
SKAKO
Vibration Succursale Maroc Morocco Branch
SKAKO
Mineral Maroc Morocco Branch
Bygmestervej 2
DK-5600 Faaborg
Denmark
Tel.: +45 63 11 38 60
skako.dk@skako.com
www.skako.com
CVR No. 36440414
5.6 Parent
company
notes
Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2024-01-012024-12-312023-01-012023-12-31529900WNR3U8C847AW24Reporting class DOpinionBasis for Opinion529900WNR3U8C847AW242024-01-012024-12-31cmn:ConsolidatedMember529900WNR3U8C847AW242024-01-012024-12-31529900WNR3U8C847AW242023-01-012023-12-31529900WNR3U8C847AW242024-12-31529900WNR3U8C847AW242023-12-31529900WNR3U8C847AW242022-12-31529900WNR3U8C847AW242023-12-31ifrs-full:IssuedCapitalMember529900WNR3U8C847AW242024-01-012024-12-31ifrs-full:IssuedCapitalMember529900WNR3U8C847AW242024-12-31ifrs-full:IssuedCapitalMember529900WNR3U8C847AW242023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900WNR3U8C847AW242024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900WNR3U8C847AW242024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900WNR3U8C847AW242023-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900WNR3U8C847AW242024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900WNR3U8C847AW242024-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900WNR3U8C847AW242023-12-31ifrs-full:RetainedEarningsMember529900WNR3U8C847AW242024-01-012024-12-31ifrs-full:RetainedEarningsMember529900WNR3U8C847AW242024-12-31ifrs-full:RetainedEarningsMember529900WNR3U8C847AW242023-12-31SKA:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember529900WNR3U8C847AW242024-01-012024-12-31SKA:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember529900WNR3U8C847AW242024-12-31SKA:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember529900WNR3U8C847AW242022-12-31ifrs-full:IssuedCapitalMember529900WNR3U8C847AW242022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900WNR3U8C847AW242023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900WNR3U8C847AW242022-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900WNR3U8C847AW242023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900WNR3U8C847AW242022-12-31ifrs-full:RetainedEarningsMember529900WNR3U8C847AW242023-01-012023-12-31ifrs-full:RetainedEarningsMember529900WNR3U8C847AW242022-12-31SKA:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember529900WNR3U8C847AW242023-01-012023-12-31SKA:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember529900WNR3U8C847AW242024-01-012024-12-31cmn:ConsolidatedMember1529900WNR3U8C847AW242024-01-012024-12-31cmn:ConsolidatedMember2529900WNR3U8C847AW242024-01-012024-12-31cmn:ConsolidatedMember1529900WNR3U8C847AW242024-01-012024-12-31cmn:ConsolidatedMember2529900WNR3U8C847AW242024-01-012024-12-31cmn:ConsolidatedMember3529900WNR3U8C847AW242024-01-012024-12-31cmn:ConsolidatedMember4529900WNR3U8C847AW242024-01-012024-12-31cmn:ConsolidatedMember1529900WNR3U8C847AW242024-01-012024-12-31cmn:ConsolidatedMember2529900WNR3U8C847AW242023-01-012023-12-31cmn:ConsolidatedMemberiso4217:DKKiso4217:DKKxbrli:sharesxbrli:pure