ANNUAL
REPORT
20232024
The Annual Report was presented and adopted
at the Annual General Meeting on 12 July 2024
Chairman of the meeting, P eter Appel
Financial year: 1 May 2023 – 30 April 2024
Company reg. no. 76 95 00 16
4
14
16
26
34
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84
96
GENERAL INFORMATION
USTC Around the World
Key Figures and Financial Ratios
CEO Letter
USTC History
SUSTAINABILITY
MANAGEMENT’S REVIEW
CORPORATE SOCIAL RESPONSIBILITY
BOARDS
Board of Directors
Executive Board
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the Parent Company Financial Statements
STATEMENTS
Management’s Statement
Independent Auditors Report
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
3
EUROPE
108 offices
AMERICAS
22 offices
OTHERS
2 offices
ASIA
25 offices
A staff of
4,324
representing more than
50 nationalities
Covering all
continents USTC is
represented in
38
countries
USTC AROUND
THE WORLD
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DKK mill 2023/24 2022/23 2021/22 2020/21 2019/20
INCOME STATEMENT
Revenue 114,26 3 138,5 4 4 118,518 65,598 76,326
Profit before financial income and expenses 2,220 3,040 1,171 593 1,35 4
Net financials (407) (16 0) (167) (119) (263)
Profit before special items 1,834 2,92 9 1,029 488 1,105
Profit before tax 1,50 0 2,929 1,029 488 1,105
Net profit for the year (46) 2,321 797 386 908
BALANCE SHEET
Total assets 21,960 22,6 6 4 24,1 3 9 14,5 40 11,262
Total equity 4,481 5,473 4,2 9 5 2,970 3,112
CASH FLOWS
Cash flows from:
- operating activities 4,154 697 703 726 936
- investing activities (893) (27 7) (801) (946) (220)
hereof investment in property, plant and equipment (672) (568) (316) (181) (186)
- financing activities (3,068) (1,111) 1,086 210 (1,221)
Change in cash and cash equivalents for the year 192 (692) 988 (10) (505)
RATIOS %
Gross margin 5.9% 5.6 % 4.0 % 4.5% 5.1 %
Profit margin 1.9 % 2.2% 1.0 % 0.9 % 1.8%
Return on equity (0.9 %) 4 7.5 % 21.9% 1 2.7 % 31.7 %
Liquidity ratio 1.23 1.38 1.24 1.23 1.40
Solvency ratio 20.4% 24.1 % 1 7. 8 % 20.4% 2 7.6 %
Number of employees 4,324 4,3 31 3,920 3,582 2,526
The Group has implemented IFRS on 1 May 2021 with restatement of comparative figures for 2020/21 and 2019/20.
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
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Nina Østergaard Borris, CEO
There is no doubt that this past year has been one of
the most trying and challenging in USTC’s history and
the reason why I have chosen to refer to it as our “Annus
Horribilis”.
But despite the trials of this past year, I am incredibly
proud to spearhead USTC’s group of companies of
which many have managed to deliver solid results.
These results reflect the continued dedication and
support from the more than 4,300 employees across
our companies, and whose combined efforts have been
instrumental in helping us overcome the challenges of
the past year.
LANDMARK EVENTS RESULT IN
SIGNIFICANT LOSSES
Although the majority of our companies have delivered
strong results, the past year has unfortunately also been
dominated by the Group’s first ever bankruptcy.
In late 2022, USTC’s subsidiary, SDK FREJA, invested
a majority stake in the Danish soil deposit and
remediation company, Nordic Waste. Due to unforeseen
circumstances a landslide took place on the premises
of Nordic Waste in late 2023 resulting in the total ruin
of the company, its assets, and its ability to continue
operations. As a result, Nordic Waste’s management
was forced to declare bankruptcy in January 2024, the
first bankruptcy in the nearly 150-year history of the
Group. This is not something I take lightly, and my family
and I are deeply affected by the course of events.
At the same time this year, due to very unfavourable
market conditions in the form of political instability,
Bunker Holding made the difficult though necessary
decision to terminate its cargo activities in Africa.
The termination came with high costs, which is also
reflected in this year’s annual result.
Although these isolated events have impacted
our results negatively, our continuing activities are
performing at strong levels. Without the losses taken
from these isolated events, the Group would have
produced its second-best result ever, which gives me an
optimistic outlook for the future. So, we are proceeding
with confidence and full focus on what we do best:
Serving our stakeholders to the best of our abilities
across every industry we are involved in.
A TRYING YEAR
FOR THE GROUP
CEO LETTER
We are proceeding
with confidence and
full focus on what
we do best: Serving
our stakeholders
to the best of our
abilities across every
industry we are
involved in.
Nina Østergaard Borris, CEO
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STRONG FOCUS ON PROVIDING
SUPPORT
In 2023/24, with the launch of a shared strategy for
the entire USTC Group, we took another step toward
providing USTC’s subsidiaries with the best possible
support on their individual growth journeys.
During recent years, USTC has not only grown in size
but also matured as an organisation. As we continue
to grow, and as the industries we operate in continue
to become more complex and demanding, USTC’s
role as a parent company is unavoidably impacted.
The strategy was developed with this in mind and with
the purpose of safeguarding USTC’s long-term value
creation as a global family-owned conglomerate.
The strategy aligns closely with our core values of
leadership, decency, and strong business acumen
and adds a new aspect of value from USTC to our
companies. Going forward, we will leverage the
combined financial strength of the entire Group, letting
each company make the most of our shared ownership.
For the past years, USTC has been a strong enabler of
cross-organisational synergies and provided USTC’s
companies with support on M&A and ESG, as well as
consultancy and support on HR and communication.
These efforts will be expanded further, as USTC
continues to grow into an even stronger partner and
supporter for all its companies, while ensuring that
cross-organisational synergies are utilised to their full
potential.
As our organisation continues to grow and mature, we
recognise the importance of future-proof leadership
and ensuring that our leaders stay adept at navigating
the complexities of the future. Hence, in 2023, we
launched the USTC Executive Leadership Programme
in collaboration with Harvard University and in
extension of USTC’s new strategy.
The Executive Management teams from all of USTC’s
companies took part in the Leadership Programme
that was tailormade to our global Group, our values, and
our strategy, and with the purpose of strengthening
and enhancing the cooperation, synergies, and
expertise of all our top management across the Group.
Together with the many initiatives to ensure wellbeing
and dedication of our people, this effort has not
gone unnoticed by the public either. This year, USTC
advanced more than 25 spots since last year into the
top 50 ranking of most sought-after companies to work
for among students in Denmark; A testament to the
dedicated work being put into creating an attractive
workplace.
CONTINUING OUR STEADFAST
COMMITMENT TO ESG
This year, USTC has taken yet another step forward in
aligning expectations for ESG across the Group. Our
companies are putting concerted effort into the ESG
agenda, and they have all recently completed their
first double materiality assessments in preparation for
compliance with the upcoming ESRS. I am confident
that we will be ready for the mandatory reporting in
accordance with CSRD.
I am very proud to be leading a group of companies
that, despite belonging to hard-to-abate sectors and
known for being conservative, continue to demonstrate
their commitment to creating positive change. Each
company is progressing across every aspect of E, S,
and G, such as implementing new and alternative fuel
propositions to clients, creating policies to support
gender and age diversity and equality, and securing
strong compliance and governance structures. We
wish to be perceived by our industry peers and partners
as endorsing these agendas and striving to improve
industries for the better.
Considering this year’s rough seas and strong
headwinds, I am very proud that we have managed
to stay the course and of our employee’s unwavering
commitment and drive. We will continue to move
forward, staying true to our core values while guiding
the USTC Group into the future.
Sincerely,
Nina Østergaard Borris
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10
SHIPPING
AND LOGISTICS
Since 1876
SALE AND
MEDIATION
OF BUNKERS
Since 1981
IT SERVICES
Since 2003
SHIP
OWNING
Since 1995
RISK
MANAGEMENT
Since 2004
ENERGY
SOLUTIONS
Since 2009
USTC can trace its history back to 1876, when a local
shipbroking company was founded in a town on the
shores of the Danish strait of Lillebælt. The ascent to a
global leader in the shipping industry began in earnest
in the early 1980s, when Torben Østergaard-Nielsen had
been appointed Managing Director of the still-small
shipbroker in Middelfart.
Recognising the potential in the market for an
independent bunker trading company, he started
personally sourcing the fuels and talking to the
ship-owners. In the process, he became one of the
pioneers who transformed the way the world’s shipping
companies buy bunkers.
Torben Østergaard-Nielsen soon expanded operations
internationally, and eventually took over full ownership,
transforming the bunkering activities into Bunker
Holding. Today, Bunker Holding is the world’s leading
bunkering company.
Over the past 43 years, Torben Østergaard-Nielsen
has also nurtured shipping and logistics activities, the
original lifeblood of the company. USTC today includes
the ship-owning company Uni-Tankers (founded in
1995), Unit IT (founded in 2003), SDK FREJA (so-named
after a rebranding and an acquisition of a large Danish
transport and logistics company in 2020, but with a
direct line of ascendance from the company founded
in 1876), the sustainable energy company CM Biomass
(founded in 2009), where USTC acquired a 60% majority
stake in September 2021, and the energy hedging
company Global Risk Management (active since 2004),
previously organised under Bunker Holding.
In June 2020, Torben Østergaard-Nielsen’s two
daughters became co-owners of the USTC Group, and
in May 2022 a change in leadership was announced.
Nina Østergaard Borris took over as CEO after her father,
and Mia Østergaard Rechnitzer assumed the role as
Chief Governance Officer. Torben Østergaard-Nielsen
remains actively involved as working Chairman of the
Board.
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Mia Østergaard Rechnitzer
When browsing through
this year’s Sustainability
Report, we are proud to
see progress across all
USTC entities.
Mia Østergaard Rechnitzer
Chief Governance Officer
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14
STAYING THE COURSE
ON OUR COMMITMENT
TO SUSTAINABILITY
The challenges facing the world have evolved and
grown even more complex since the founding of USTC.
However, the basic moral force driving our sustainability
agenda across our business remains the same and
is clearly linked to our founding values of business
acumen, decency, and leadership. With the publication
of USTC’s third Sustainability Report covering 2023/24,
we strive to demonstrate our commitment to
transparency by disclosing our environmental, social,
and governance impacts. We make these disclosures
because we recognise our stakeholders’ need to
understand how we management ESG issues and we
wish to provide insights on how we are continuously
driving this agenda forward across our global
organisation.
While recent year’s volatile business environment
naturally has affected our businesses and has brought
about challenges, it has also sparked renewed focus on
ESG. When browsing through this year’s Sustainability
Report, we are proud to see progress across all USTC
entities. The initiatives across the operating companies
span environmental, social, and governance topics,
e.g. engaging in strategic partnerships to reduce
CO2e emissions, elevating health and safety initiatives,
nurture and foster talent and diversity, as well as prepare
for upcoming EU legislation.
For USTC, our climate impact remains assigned the
highest precedence. USTC’s consolidated carbon
footprint covering 2023/24 is 87,490,910 metric tons
of CO2e across scope 1, 2, and 3. The most notable
development in our carbon account this year is the
inclusion of CM Biomass, which impact our scope 2
emissions significantly. As a result, our scope 2 electricity
emissions increase by 696% (market-based) and 1064%
(location-based) compared to previous year. Our scope
3 emissions make up 99.48% of our total emissions. This
year we have experienced an increase in downstream
transportation emissions, also derived from the
activities of CM Biomass. However, the total scope 3
emissions are not significantly impacted compared to
last year.
Guided by a diversity, equality, and inclusion (DEI)
strategy, our approach to DEI has matured over the past
year, an area where we have intensified our awareness
and efforts. During 2023/24 we have developed our
recruitment practices to ensure inclusion and equal
opportunities. Hiring managers across the Group
are being trained in cultural understanding and
increasing awareness on potential unconscious biases
in recruitment to limit potentially biased candidate
decisions. Another important milestone is that we
have established our first cross-Group mentorship
programme, which is designed to foster DEI and
empower our people to be change-makers within our
organisation.
Regulatory scrutiny is still increasing, and with
Corporate Sustainability Reporting Directive (CSRD)
and the underlying European Sustainability Reporting
Standards (ESRS) in force across the EU, USTC is
affected by the increased reporting obligations laid
forward as of 2025/26. Given the diverse and complex
nature of our organisation and the extensive scope of
the reporting requirements we have already embarked
on the necessary preparations on how to comply as
well as reviewing our sustainability reporting practices.
During 2023/24 almost every entity in the USTC
Group has conducted updated double materiality
assessments. Following these individual assessments,
an overall process for the entire USTC Group will be
conducted in the course of 2024/25 to consolidate the
material topics at Group level.
Going forward, we will maintain our focus on steadily
progressing our effort in the areas which are most
material to our business while familiarising ourselves
with the reporting standards of ESRS. On a more
strategic and operational level, we will focus on building
our internal capabilities, systems, and processes.
We expect to make further changes by adding new
disclosures in our sustainability reporting going forward.
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ACTIVITIES
The Group has activities within six segments:
Bunkers
Ship owning
Shipping & Logistics
IT services
Sustainable energy
Risk Management
The main object of USTC as the Parent Company is as a
holding company to hold shares in the subsidiaries and
to contribute to the continued development of these.
Bunkers
Bunker Holding Group is fuelling the shipping industry
as the world’s leading company in bunker trading. As
a global organisation, the company purchase, sell and
supply marine fuel and lube oil for ships, as well as
providing risk management and other related services
for the shipping industry. The three main business areas
are bunker trading, risk management, and physical
operations. Bunker Holding Group is present worldwide
with 60 offices in 30 countries.
Ship owning
The Group – Uni-Tankers – is a leading tanker shipping
company trading in the intermediate and small tanker
segment. The Company operates 41 owned and
chartered vessels comprising of modern and flexible
product and chemical tankers with focus on high
security and quality in sizes up to 20,000 DWT. At the
end of the financial year, the tonnage available under
Uni-Tankers’ activities totals 422,721 DWT with an
average age of 10.8 years, which places the fleet among
the youngest in Uni-Tankers’ core markets.
Shipping & Logistics
The Group – SDK FREJA – is a full-service shipping
and logistics company. The activities include freight
forwarding within road, air, sea and project cargo,
contract logistics as well as stevedoring, port agency,
customs clearing, chartering, liner, and cruise services.
The Group offers specialist logistics solutions within
healthcare, warehousing, and refrigeration. The Group
is present with locally based offices in Northern Europe
including strategic positions in China and Spain.
IT services
The Group’s IT activity – Unit IT – comprises a wide
range of high-end services within infrastructure and
the operations and support of private and public
cloud solutions, including specialist units within cyber
security, business intelligence and data platform for
operation and optimisation of database performance.
The company is headquartered in Denmark with six
offices. Early 2024, the company established its first
international office in Prague.
Sustainable energy
CM Biomass was founded in 2009 and is the world’s
largest independent wood pellet trading company.
CM Biomass holds a unique position in its industry, by
not being purely production or trading, but a hybrid,
having co-owned production facilities in joint ventures
since 2019, and most of the company’s wholly owned
production capacity acquired or built in 2022. USTC
Group acquired a majority stake of 60% of CM Biomass
and now owns 66.9%, while the remaining 33.1% is held
by the founding-family and key senior executives in CM
Biomass. The Company is present in 13 countries with
own offices and 11 production plants.
Risk Management
The Company – Global Risk Management – an energy
hedging company previously organised as part of
Bunker Holding – was in August 2022 elevated and
established on equal terms as Bunker Holding and
USTC Group’s other companies directly under the USTC
ownership. Global Risk Management was established
as a separate legal entity (A/S Global Risk Management
2023/24 has been a
challenging and trying
year with an unforeseen
event causing the first ever
bankruptcy in the Group’s
close to 150-year history and
a necessary close down of a
business area within bunkers.
Thanks to our diversified
portfolio of companies
and our competent and
committed employees we
have managed to steer
through the somewhat
“Annus Horribilis”. We can
now look forward and
focus on the strong results
presented by our continuing
activities as well as seizing
new opportunities.
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17
Ltd. Fondsmæglerselskab) with an investment firm
license on 3 January 2018 following the implementation
of the MiFID II. The Company’s commercial focus is to
enable international and domestic clients to manage
their energy price exposure and associated liquidity
risk by giving access to bilateral trading and margin
funding in relevant derivative instruments. The
Company’s commercial history, however, pre-dates the
establishment in 2018, as similar commercial activities
have been conducted in A/S Global Risk Management
Holding since 2004. The Company’s commercial
segments include aviation, industrial and transportation,
oil suppliers, shipping and utilities.
DEVELOPMENT IN THE YEAR
The USTC Group achieved revenue of DKK 114.3 (138.5)
billion and a profit before tax of continuing activities
of DKK 1,834 (2,929) million. The 2023/24 financial year
was a challenging period characterised by unforeseen
events, changing market economics, and consequences
of the geopolitical unrest. This resulted in the Group’s
first ever bankruptcy in its close to 150-year history
as well as discontinuation of a business segment
in the Group’s bunkers activities. An unfamiliar and
discomforting situation for the Group but the continuing
entities and activities have all contributed strongly and
solidly and stressed their ability to adapt their business
and strategies to the changing market conditions. Based
on the circumstances throughout the year, the USTC
Group considers the result of the continuing activities
satisfying, as they are up with 75% compared to our
expectations from last year.
At the end of the year, equity amounted to DKK 4,481
(5,473) million equalling a solvency ratio of 20.4%.
The USTC Group sees the 2023/24 results as a
demonstration of the Group entities’ tenacity, strength
and commitment to navigate through challenges as
well as a testament to the value of having a diversified
portfolio of companies operating in various industries
and all contributing to the conglomerate.
The challenging year is reflected in the results, where
only the Sustainable energy activity show significant
growth. The Ship owning activity as well as the bunkers
activity and Shipping & Logistics activity still present
solid results. As for the bunkers activity and Shipping &
logistics activity this goes for their continuing activities.
The Bunkers activity – Bunker Holding – landed a profit
before tax of DKK 875 million (before discontinued
operations), a significant drop from last year’s record
result of DKK 1,609 million. The Ship owning activity
– Uni-Tankers – delivered yet another strong result
with profit after tax of DKK 357 million and reached a
fantastic milestone of being debt-free. As for the Group’s
Shipping & Logistics activity the year was marked by the
unforeseen events leading to the bankruptcy of their
environment activity, whereas the continuing activities
in SDK FREJA achieved profit before tax of DKK 260
million. While the market for wood pellets was affected
by a late and mild winter 2023/24 with the demand and
price of wood pellets dropping to low levels, the Group’s
Sustainable energy activity – CM Biomass – still managed
to achieve a new all-time high result with profit before
tax of DKK 308 million, just as the Risk Management
activity experienced yet another strong year with profit
before tax of DKK 152 million. IT Services – Unit IT – had
a transformative year with its largest acquisition yet
and the opening of its first office abroad resulting in
substantial costs affecting the annual result.
Through the financial year, the USTC Group benefited
from its solid and strong financial position and
creditworthiness and obtained a solvency ratio of 20.4%.
The Group’s funding is based on solid agreements with
its banks by which the Group has had a close relation for
many years.
RESULT FROM
CONTINUING ACTIVITIES
0
500
1000
1500
2000
2500
3000
21/22
DKK MILL
22/23
2,929
1,029
1,834
ASSETS
23/24
1.7
Inventories
10.5
Trade receivables
2.2
Other
receivables
6.2
Non-current
assets
1.4
22.0
DKK
Billion
Cash
and cash
equivalents
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Bunkers
The Bunkers activity – Bunker Holding – achieved
revenue of DKK 99,499 (122,636) million and a profit
before tax of DKK 875 million (before discontinued
operations), a significant drop from last year’s result of
DKK 1,609 million but still the third best result in the
Bunkers activity. By cause of geopolitical tensions and
macroeconomic shifts, Bunker Holding has grappled
with encounters resulting from instability in the energy
markets and mixed demands across different shipping
segments.
As a consequence of the geopolitical unrest, earlier
this year Bunker Holding made the unfortunate albeit
necessary decision to close down the Group’s cargo
activities in Africa. The conclusion came in the wake
of a market in Africa flooded by Russian crude oil and
sanctions enforcement measures, which made it
increasingly difficult to compete on the market. Adding
to this, the growing political instability in Africa was a
decisive factor in the outcome, which has also come
with significant costs. Despite the very unfortunate turn
of events, Bunker Holding has managed to come out
on the other side with a very decent result that can be
attributed to the strength of its continuing operations,
its robust business model and its continuous
investment in the future.
The transition to new fuels holds an important part of
the Bunkers activity's future. The journey has already
begun, and in the coming decades, the shipping
industry will encounter additional products, regulations,
and rising complexity. As such, Bunker Holding’s role
as a trusted partner and advisor will also become
increasingly important and Bunker Holding is already
supporting its customers with increased education
and specialisation as well as improved digital value
adds. In 2023/24 Bunker Holding has remained focused
on the green transition centred around its Centre of
Excellence with a core team of eight global experts
within LNG, Ammonia, Biofuel and more as well as
experts on the regulatory changes. During the year,
the team of experts have been completed by a team of
more than 40 trained and selected mandated traders.
They are now advancing and expanding their efforts
in the all-important green transition and educating all
frontline traders and customers on ways to comply with
new regulatory requirements and how to go further to
decarbonise the maritime operations.
Since scaling up its capabilities within the new fuels’
spectrum, Bunker Holding has been indeed keeping
eyes fixed firmly on both the short and the long term,
building strong and reliable supplier relations and
increasing market share and presence in New Fuels
and Carbon markets. And with the Group’s insight and
expertise, Bunker Holding will deliver more value to its
clients than ever before.
For 2024/25 the Bunkers activity anticipate continued
investments in the low and zero carbon fuel projects
that may not provide immediate returns. This implies
that Bunker Holding is projecting earnings before tax
from continuing operations within a range of DKK 500-
600 million.
Ship owning
The Ship owning activity – Uni-Tankers – entered
into 2023/24 on the back of a record result due to an
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effective turnaround strategy combined with favourable
market conditions and a streamlined organisation.
During the 2023/24 fiscal year, the chemical tanker
shipping market continued to demonstrate robustness,
despite the ongoing challenges in the geopolitical
environment, and with Uni-Tankers' strategic framework
designed for rapid adaptation to market fluctuations,
the Ship owning activity not only met these challenges
but also excelled, delivering strong financial results once
again.
In 2023/24, Uni-Tankers experienced a slight decrease
in revenue by 14%, but notably achieved a profit after
tax of DKK 357 million. The result was accomplished in
the face of limited tonnage availability, increased time-
charter costs, and higher interest rates, making the
results particularly commendable.
A landmark achievement this year was Uni-Tankers
reaching a debt-free status by September 30, 2023.
The Ship owning activities impressively cleared a debt
of DKK 700 million within the year, settling its bank
obligations two years ahead of schedule.
During 2023/24, the Ship owning activity strategically
expanded and upgraded its fleet, aligning with its
commitment to environmental responsibility and
operational efficiency in the maritime sector. Two
notable additions were welcomed to its owned fleet:
the M/T Jutlandia Swan and the M/T Fionia Swan. These
acquisitions have increased its owned fleet to 16 vessels.
In Uni-Tankers' ongoing efforts to optimize fleet
efficiency and focus on strategic assets, the Ship
owning activity completed the sale of the previous M/T
Fionia Swan in 2023. This is part of Uni-Tankers’ broader
strategy to adapt its fleet to better meet current and
future environmental and operational demands.
Acquiring new time-chartered vessels has been
challenging due to high market demand. Nevertheless,
the Ship owning activity increased its time-chartered
(TC) fleet from 14 vessels and a total DWT of 247,000
in August 2023 to 25 and 422,721 DWT by the end of
2023/24. This expansion of its TC fleet includes more
vessels with stainless-steel tanks, which are increasingly
preferred by Uni-Tankers’ customers, and larger vessels
up to 20,000 DWT.
All vessels in the Uni-Tankers fleet comply with the
Energy Efficiency Existing Ship Index (EEXI) and the
Carbon Intensity Indicator (CII) requirements. By
continuous commitment throughout the financial year,
the Ship owning activity achieved compliance with
the Emissions Trading System (ETS) well ahead of the
January 2024 deadline.
The Ship owning activity anticipates that a continued
strong demand for tonnage in its segments will outpace
supply, largely due to sustained underinvestment in
new vessel constructions, thus the Ship owning activity
foresees another profitable year ahead, with expected
earnings before tax ranging from DKK 240-275 million.
Shipping & Logistics
In the Shipping & Logistics activity – SDK FREJA –
the financial year 2023/24 has, like in most other
industries, been characterised by rising interest rates
and inflation. This has led to an anticipated drop in
consumer spending resulting in less demand for
transportation, and thus lower freight rates on a global
scale. SDK FREJA has, however, managed to act in
the markets with proactive diligence. By maintaining
well-established customers and partnerships as well
as expanding into new niche markets, a slight overall
market share growth has been achieved.
SDK FREJA achieved a revenue of DKK 6,035 (6,585)
million, a decrease by 8%. Profit before tax amounted to
DKK 260 million (before special items) corresponding to
an 9% decrease compared to last year (DKK 287 million).
On the Logistics side of the business, SDK FREJA's
continued asset light approach is allowing for agile
solutions to changing markets, and alongside staying
agile, staying close to its customers is a strong priority,
where initiatives such as know your customer (KYC)
has been a focal point of the past year. Being a trusted
and global logistics partner requires diligence, and
SDK FREJA strives to maintain that reputation by
its customers. On the Shipping side of the business,
especially bulk and project cargo have seen a strong
year as part of SDK FREJA's continued growth. At the
same time energy projects related to wood pellets and
windmills have kept a strong momentum, creating a
steady flow of contracts.
The third set of activities in the SDK FREJA Group was
Environmental.
In 2021, SDK FREJA acquired a minority stake in the
Danish company Nordic Waste. A company pledged to
develop techniques relevant for circular development
in the contaminated soil clean-up industry. The core
business of the company involved soil remediation
and extraction of raw materials for the construction
and building industry, where raw materials were – and
still are – in short supply. The secondary goal of Nordic
Waste, as part of their permits and obligations with
the local municipality, was to deposit either clean soil
or soil with a contamination level equivalent to that of
urban soil into the clay pit. Filling up the clay pit was part
of the obligation to restore the scenery to its original
state before the past 70 years of quarrying activities.
As such, Nordic Waste always served a dual purpose of
soil cleanup and landscape restoration via soil deposits.
That is also why it was never an ambition or possibility
that all received materials should be recycled.
In late 2022, a majority stake in the company was
purchased. Due to unforeseen circumstances, Nordic
Waste was subject to a massive landslide in the winter
of 2023 creating unworkable conditions leading to
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the company’s bankruptcy in January of 2024. This
bankruptcy has left a significant negative mark on
this fiscal year. In total a cost of DKK 334 million is
recognised as Special items in the USTC Group's
Income Statement. The total cost of DKK 334 million
comprises substantial costs paid to loyal suppliers who
assisted Nordic Waste during the period when Nordic
Waste endeavoured, albeit unsuccessfully, to stop the
landslide, and establishing both a climate fund and an
association for the local community surrounding Nordic
Waste.
Despite the close down of Nordic Waste, SDK FREJA
is determined to not let this deter it from further
supporting the sustainable agenda via companies
investing in developing new and necessary
technologies for a greener future.
When looking ahead the expectations for 2024/25 –
comprising the Shipping & Logistics activity – indicate
lower activity and results in both divisions compared to
2023/24. This is due to anticipated financial stagnation
and reduced activity in markets key to SDK FREJA.
Expected revenue for 2024/25 is in a range of 93-98%
compared to 2023/24 and an EBIT before Special items
in a range of DKK 190-205 million compared to 2023/24.
IT services
The IT services activity – Unit IT – achieved revenue
of DKK 273 million – an increase of 19% compared to
2022/23 combined from both organic and inorganic
growth. Profit before tax decreased to DKK 0.8 million
compared to DKK 22 million in 2022/23, mainly
from costs related to the IT services activity's largest
acquisition yet and investments in establishing the IT
services activity's first office abroad.
To ensure operational flexibility and headroom for
working capital fluctuations, a new credit facility that
correspond to the increased activity level following the
acquisition has been obtained.
In December 2023, the IT services activity announced
the carveout acquisition of GlobalConnect’s outsourcing
division – GlobalConnect Outsourcing Services (GCOS).
It is the IT services activity's largest acquisition yet
where nearly 100 highly competent colleagues were bid
welcome and Unit IT took over large cloud platforms,
best-in-class ITSM systems, a well-structured catalogue
of services, and the IT operations responsibility for a
robust set of customers. The acquisition nearly doubled
the size of Unit IT and naturally introduced a complex
integration process, which will run throughout the next
financial year.
The USTC Group’s IT services activity has always grown
through acquisitions – this process is not new to Unit IT.
Nonetheless, the IT services activity is conscious of the
magnitude of this acquisition, as foundations are built
for further growth while people, cultures, technologies
and customers are being integrated.
To front the growth ambitions and further professio-
nalise the organisation, the IT services activity has
welcomed new executive management members in
2023/24. All new hires have extensive experience in the
IT and managed services industry and complement
the existing c-suite, which is now geared to facilitate the
growth we expect in the coming years.
Another milestone for the IT services activity in 2023/24
was the announcement in early 2024 of the opening
of a nearshore operations center, located in the Czech
Republic’s capital Prague. It is the first Unit IT office
operating outside Denmark. With this new European
foothold, the IT services activity is better equipped to
support customers operating globally, just as it opens
the door to attracting new talent in Europe’s budding
equivalent to Silicon Valley.
Transformation and investment have been key areas
for the IT services activity in 2023/24. Unit IT expects the
benefits of those investments to help grow its revenue
significantly in the coming financial year. This leading
to expected profit before tax in the range of DKK 15-25
million.
Sustainable Energy
CM Biomass was added to the USTC Group in March
2021, when USTC acquired a majority stake of CM
Biomass – a Group founded in 2009 and today the
world’s largest independent wood pellet trading
company. CM Biomass continues to provide value to
USTC’s portfolio of companies, as a natural extension of
USTC Group’s ongoing activities within the trading and
shipping industry. 2023/24 is the second full financial
year as part of the USTC Group and CM Biomass follows
up on last year’s all-time high result with a new record
result in 2023/24. The Company reached a revenue of
DKK 6,225 (6,143) million and a profit before tax of DKK
308 million – an impressive growth of 25% compared to
last year’s all-time high of DKK 246 million.
The excellent results are based on the Company’s
strong business acumen skills and its ability to combine
its solid commercial and logistic setup best possible.
The winter of Europe in 2023/2024 was a late and mild
season characterised by power prices lowering from
the previous season, with the demand and price of
wood pellets dropping to low levels, even at times
below production cost. This stood in stark contrast
to last fiscal year of 2022/23 that was dominated by
fluctuating prices, challenged supply chains, and strong
imbalances between supply and demand on the back
of the EU sanctions on Russian and Belarusian wood
and the energy crisis in the EU.
Balancing this shift from boom to bust and yet
delivering the Company’s strongest financial
performance to date has required optimum efforts from
the Company’s traders and analysts who have been
able to counteract stronger markets against weaker
ones on a global scale using intelligent market analysis
and strong data. Combined with the production
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insights from the Company’s plants in Denmark and the
US, they have been able to act agile on markets trends,
resulting in this year’s excellent result.
The activity does not foresee a result in 2024/25 in line
with this year due to the current negative price trend,
but more in line with previous year (2022/23).
Risk Management
The Company – Global Risk Management – achieved
profit before tax of DKK 152 million in 2023/24. The
second-best result in the Company’s history following
last year’s record result of DKK 192 million.
The energy hedging company was established with
an investment firm license in January 2018, and being
previously organised as part of Bunker Holding, 2023/24
is only the second year under the direct ownership of
the USTC Group.
This year’s result is exceeding the Company’s
expectations as going into the fiscal year of 2023/24,
Global Risk Management did not expect the financial
year to be as volatile as 2022/23. However, global events
have inevitably affected the Company’s market position
and financial results. From Russia’s invasion of Ukraine
to challenges in the Middle East, the Company has
experienced a high degree of volatility across financial
markets, which has led to an increased need for the
Company’s customers and partners to mitigate risks
through hedging solutions. The high volatility has
also provided the Company with opportunities when
effectively adapting to macroeconomic challenges
by expanding the Company’s product portfolio and
geographical presence. The wider product range, which
encompasses bio-based products, emission certificates
(EUA), gas and electricity, has not only allowed the
Company to adapt to the changing markets but also
contributed to its innovation and opened new markets
in Europe.
As a regulated investment firm, Global Risk
Management is subject to thorough financial regulation
and thus Global Risk Management is enduringly
committed to innovation, risk management, and
regulatory compliance. Furthermore, due to the
European Digital Operational Resilience Act (DORA),
which mandates enhanced IT security and cyber
threat preparedness, the Company is proactively
strengthening its compliance and risk management
infrastructure. This forward-looking stance is critical for
navigating future challenges and sustaining a robust
compliance setup.
Looking forward to 2024/25, Global Risk Management
expects profit before tax in line with the 2023/24 result.
Strategy and objective
The objective of the USTC Group is, on a continuous
basis, to develop its business in line with the customers’
wishes and requirements. The USTC Group wants to
be known for its high-quality services and deliveries,
and trading must comply with the highest Danish and
international standards.
As part of its new five-year strategy, the USTC Group
focuses on sustainable growth, always maintaining a
healthy balance between risk and reward, be it a strong
organic growth or strategic alliances and acquisitions
when the opportunities arise.
SUBSEQUENT EVENTS
There have been no events that materially affect the
assessment of this annual report 2023/24 after the
balance sheet date and up to today's date.
EXPECTATIONS FOR
THE YEAR AHEAD
The Group’s level of activity, revenues and earnings are
in general affected by a number of external factors,
such as the development on the global freight market,
the oil price development and the general structure of
the oil and shipping market.
This year, the high interests, inflation, and the Russian
war in Ukraine and sanctions enforcement measures
continued to create challenging conditions for the
Group and its markets. Furthermore, the year has
been affected by the unforeseen events resulting in
discontinued business activities in the Shipping &
Logistics activity and the Bunkers activity. Based on the
uncertainty at the end of this year, the expectations for
the 2024/25 financial year are strong results equal to this
year’s result before tax (2023/24) totalling DKK 1,400-
1,600 million.
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According to §99a and §99b of the Danish
Financial Statements Act, USTC is required to
supplement the financial report with an account
of corporate social responsibility. The following
section on corporate social responsibility
encompasses USTC’s consideration for, among
other things, the environment and climate, health
and safety, human rights, and corruption.
The USTC Group perceives corporate social
responsibility as the duty to work progressively to
reduce negative and increase positive impacts on the
individual, the society and the environment.
Our business areas:
The Group has activities within six segments:
Bunkers
Ship owning
Shipping & Logistics
IT services
Sustainable energy
Risk Management
Please see page 17 for further details.
Our main risk areas
Derived from our business model we have identified the
following non-financial risk focus areas:
Compliance and quality management
Diversity, human rights and gender composition
Health and safety
Environment, climate and community engagement
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Gender composition – Board of Directors
The section below includes USTC Group’s statement of
compliance with the Danish Financial Statements Act,
section 99 b.
Targets for the under-represented gender
on the Board of Directors
USTC Group’s Board of Directors is the supreme
management board in the company, and in 2022 /23, we
set a target to achieve a gender composition of 60/40 of
our Board of Directors. USTC Group’s Board of Directors
consists of six board members. Four males and two
see below for further details.
Board of Directors Number %
Female 2 33.33
Male 4 66.67
Total members 6 100
Targets for the under-represented gender
at other management levels
USTC Group believes in creating an open and inclusive
business culture where every employee thrives the best
way possible. Talent is more diverse than ever before,
and an inclusive work environment is key to innovation,
continuous improvement and retention of talent. Every
single day we work to provide an atmosphere where all
staff members feel included, appreciated and valued.
Tier 1 and 2
(Other Management) Number %
Female 3 50
Male 3 50
Total members 6 100
For more information about the gender composition
across our operating companies, we refer to the
respective Group subsidiaries’ annual reports.
Policy for the under-represented gender
at other management levels
In 2023 /24 we have strived to ensure the under-
represented gender is represented on the list of
candidates at other management levels across the
Group.
USTC Group has seen good results of our strong
recruitment process in the financial year and work to
see even stronger results in 2024/25.
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HEALTH AND SAFETY
USTC Group is a people’s business, and the dedication
and expertise of our staff is one of our greatest assets.
USTC Group strives to create an engaging workplace
and optimal working conditions for our staff, and it is
very important that we listen, engage, develop, inspire
and can offer exciting new opportunities across the
Group to ensure that we have motivated and highly
skilled experts in every function and every business unit.
To support this, USTC Group HR and USTC Group
Communications are covering the entire portfolio of
USTC companies and allowing the full USTC Group to
benefit from their services and assistance and ensure
the continued development of the USTC Group across
its many growing value streams. This has been a
continued success in 2023/24 with USTC Group HR
and USTC Group Communications assisting the many
subsidiaries on the important agendas within our
identified main risk areas as listed on page 27.
Physical safety
USTC Group is aware of the risk related to unsafe
working conditions and the risk of accidents that may
occur due to lack of knowledge and competencies
amongst employees.
The Group’s employee policies on this matter are
elaborated in the individual Group companies, such as
the Ship owning activity's’ employee handbook.
USTC Group’s Ship owning activity has ensured that
the health, safety, and security (HSS) of all employees
remains the Group’s Ship owning activity's top
priority. This task can be challenging, particularly due
to the nature of work conducted on vessels, which
encompasses cargo handling, maintenance and
operating in an offshore environment – sometimes
in remote areas. In 2023/24, ensuring safety at sea
proved especially difficult due to dangers arising from
geopolitical tensions in the Red Sea.
Fortunately, HSS is a highly regulated area of shipping,
and many industry and customer standards for
ensuring HSS are considered basic requirements.
By receiving monthly reports on “unsafe conditions”,
“unsafe acts” and “near-misses” from all owned vessels,
the Ship owning activity can evaluate and address
conditions that have the potential to cause future
accidents, thereby proactively enhancing safety.
The Group’s Ship owning activity suffered no fatalities
during the 2023/24 financial year and can also report
a reduction in their lost time incident frequency (LTIF)
to 0.51, down from 0.94 in 2022/23. The Group’s Ship
owning activity did see an increase in reported near-
misses, which can be partly attributed to the continued
greater emphasis on encouraging crew members to
report near-misses in compliance with their procedures
and stated KPIs.
In addition to these measures, the Group’s Ship owning
activity continued to update their safety management
system for the crews and onshore staff. As part of this,
a company-wide safety campaign ran from November
2023 to February 2024 targeting both offshore and
onshore employees and centered on a set of tangible
behaviour patterns that formed a starting point for
discussion, insight-sharing and ideas that will help
shape the future behaviour. The safety campaign also
served as an introduction to the Group’s Ship owning
activity's Safety Delta program, launched in March 2024.
USTC Group’s Shipping & Logistics activity
acknowledges the risks related to the handling and
freighting of cargo and continues to focus on the
employees' health and safety. All employees are
required to adhere to the health and safety guidelines,
which encompass the use of personal protective
equipment and preventive measures. They conduct a
comprehensive risk assessment of all work procedures
at every location, and they diligently record any
incidents that occur and have established follow-up
procedures and reporting mechanisms to ensure timely
reporting to the relevant authorities. They have tailored
health & safety policies in place for both divisions –
shipping & logistics – ensuring local anchoring and a
strong presence. By customising their policies to the
specific needs of each of their divisions, they can better
address the unique occupational health and safety
challenges they encounter. This approach allows the
USTC Group’s Shipping & Logistics activity to prioritise
the safety of their employees and create a positive and
secure work environment and a culture of prioritising
safety above all else.
USTC Group focuses on continuously enhancing the
health and safety of our employees as well as our
premises on a global scale to be up to date on safety
requirements and best practices.
QHSE Management
USTC Group is concerned about the safety of our
employees, building and maintaining a safe working
environment. For our specialised physical shipping
activity that is part of the bunkers activity, we have
developed procedures and guidelines meeting best
practises of the bunker industry and we strive to be a
forerunner in safety and environmental protection in
good cooperation with amongst others local authorities
and tonnage providers.
The right procedures and training of high awareness
by internal and external personnel is a key element
ensuring a safe working environment and zero
tolerance towards accidents and pollutions.
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In the Physical bunker business across our terminals
and where we have ownership or operational
control, we implement and uphold a robust QHSE
Management System in accordance with ISO 9001, ISO
14001 and ISO 45001 standards. For instances involving
chartered tonnage, rented terminals and other non-
owned assets the Physical bunker business introduces
a vetting regime consistent with our Charter Policy in
the Group’s bunkers activity and their physical shipping
activity. During the 2023/24 reporting period, over
97% of our tonnage underwent vetting by oil majors.
For vessels not subjected to vetting, we leverage the
OCIMF’s Ship Inspection Report Programme (SIRE), a
comprehensive risk assessment tool extensively utilised
by charterers, terminal operators and government
bodies to ascertain adherence to ship safety standards.
Additionally, we are qualified in the Achilles Joint
Qualification System (Achilles JQS) for suppliers to the
Oil Industry in Norway and Denmark.
POLICIES AND ACTIVITIES
Engagement process
USTC Group has always been committed to interact
with our employees to create a world-class workplace.
Our subsidiaries are conducting engagement processes
to make sure that working in our Group is a motivating
and satisfying experience. All managers are responsible
for acting upon the feedback from their employees and
committed to do so. This to harness the many learnings
about what motivates our people to come to work every
day.
We will continue to invest heavily in developing,
attracting and attaining the best talents. This is key
to deliver on our strategic business ambitions going
forward.
Core Leadership Programme
With this ambitious Leadership programme – set up
and run by USTC Group HR - we aim at creating – and
constantly maintaining – a solid pipeline of leaders
that has strong competencies in order to strengthen
leadership capabilities and improve cohesion across the
Group.
Training
Staff development is a key element in future growth
and retention. Throughout the year, employees from
our global workforce have attended 100’s of hours of
internal training via meetings and live sessions, both
mandatory and to expand on qualifications. The access
to e-learnings and self-studies was also available.
ENVIRONMENT, CLIMATE AND
COMMUNITY ENGAGEMENT
Failing to adapt to green or alternative product
offerings poses a significant risk to USTC Group, as
market dynamics are evolving, and USTC Group must
stay aligned with emerging trends. Additionally, USTC
Group plays a crucial role in climate change mitigation
through its upstream activities in energy, particularly
within hard-to-abate sectors, power generation, and
logistics. These areas represent USTC Group’s largest
contributions to environmental sustainability.
USTC Group's operations consumption of energy and
resulting greenhouse gas emissions pose a risk for
the environment and compliance with increasingly
stringent regulatory standards
USTC Group is committed to being a socially and
environmentally responsible company, and in 2021/22
we embarked on a sustainability journey by carefully
defining four areas where USTC Group can act as a
guiding star by setting direction and ambitions and
supporting the subsidiaries on their individual journeys.
The four areas are:
Corporate Governance
Climate impact
Diversity, Equality, and Inclusion
Compliance
USTC’s subsidiaries must calculate publicly available
carbon accounts for their full value chain and act in
accordance with their carbon reduction strategies. For
scope 1 and 2 emissions, every subsidiary has absolute
carbon reduction targets. For scope 3 emissions, targets
may be results-based or activity-based, such as the
number of new partnerships.
It is still just initial phase of what everyone in the
industry expects to be a long and winding path. At
USTC Group, this has involved developing the Group’s
first climate framework with common standards,
principles and requirements.
USTC Group’s first Sustainability Report was launched
in Q3 2022 covering 2021/22 and soon the Group’s
third Sustainability Report will be published covering
2023/24. USTC Group’s Sustainability Reports are
available here: www.ustc.dk/sustainability.
Going forward, USTC Group will continue to have a very
active role in supporting the subsidiaries achieving
their goals. USTC Group is actively engaged in all ESG
Councils across the Group, offering expertise, resources
and strategic sparring, and pursuing synergies and
opportunities to cooperate across the Group. In 2023/24,
USTC Group’s ESG Lead has fronted a new USTC
Decarbonisation Forum that aims to foster dialogue
between stakeholders.
For more information on our Group’s sustainability
journey please see page 14.
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POLICIES AND ACTIVITIES
Community engagement
USTC Group’s work with corporate social responsibility
is also part of our sustainability journey and both global
and local. As a global company, we recognise our
moral obligation and our fortunate ability to give back
to local communities on all continents and support
those in need. At the same time, we have devolved
the decisions on which worthy causes and individuals
to support to our local offices. Using their knowledge
of the challenges and opportunities affecting their
community, they support and donate to local charities
that are close to their heart. (Having said that, national
and global charities like UNICEF and the Red Cross also
receive support from local offices).
The work of charities is still as urgent as ever. Charity,
environment, community building and healthcare are
amongst the areas most often chosen to be supported
by our global offices. In all cases, employees have shown
engagement and passion in helping their communities.
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BOARD OF DIRECTORS
NINA ØSTERGAARD BORRIS
Board member and owner
Born in 1983.
Board member since 2014.
CEO and owner of the USTC Group (A/S United
Shipping & Trading Company).
Special competences
Company evaluations, mergers and acquisitions,
financial due diligence, business restructuring,
reorganisation, turnarounds and compliance.
Other directorships
Member of the boards in Uni-Tankers A/S, Bunker
Holding A/S, CM Biomass Partners A/S, A/S Global
Risk Management Ltd. Holding, A/S Global Risk
Management Ltd. Fondsmæglerselskab and
Middelfart Erhvervsråd. Vice Chairman of the
board in SDK FREJA A/S and Chairman of the
board in Unit IT A/S. Member of Beiratssitzung
Nord, Deutsche Bank.
Education
MSc in Applied Economics and Finance
supplemented by courses at Harvard University
and London School of Economics and Political
Science.
TORBEN ØSTERGAARDNIELSEN
Chairman of the board and owner
Born in 1954.
Board member since 1994.
Chairman since 2022.
Chairman of the board, founder and owner of
the USTC Group (A/S United Shipping & Trading
Company).
Special competences
Extensive background and global experience
within the shipping and bunker industry.
Other directorships
Chairman and Vice Chairman of the boards in
several USTC Group companies. Vice Chairman of
the board in Larsen & Ibsen Holding A/S. Member
of the boards in Fayard Holding ApS & Group
companies, H.J. Hansen Holding A/S & Group
companies, FLCO Holding ApS, Gottfred Petersen
A/S and Selected Car Group A/S.
Other
German Honorary Consul from 1988-2020.
Member of Corps Consulaire since 1988. Member
of Danske Bank Erhvervsråd from 2006-2022.
KLAUS NYBORG
Vice Chairman
Born in 1963.
Board member since 2012. Chairman from 2014-2022.
Vice Chairman since 2022.
Board management and investment.
Special competences
Global experience with management of listed
shipping companies incl. CEO of Pacific Basin
Shipping, Hong Kong. Strategic and financial expertise
as well as in-depth knowledge of risk management.
Other directorships
Chairman of the boards in Bunker Holding A/S, Uni-
Tankers A/S, Norden A/S, Bawat A/S, Moscord Pte. Ltd.,
and the investment committee Maritime Investment
Fund 1 K/S and Maritime Investment Fund 2 K/S. Vice
Chairman of the board in DFDS A/S. Member of the
boards in Maritime Investment Fund III K/S, X- Press
Feeders Ltd., and Norchem A/S. Director of Return
ApS.
Education
Msc in Business & Law, Copenhagen Business School
supplemented with management courses at London
Business School and IMD.
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JEPPE CHRISTIANSEN
Board member
Born in 1959.
Board member since 2022
CEO of Maj Invest Group.
Special competences
CEO of Maj Invest Group which he founded in
2005. Assets under management total approx.
DKK 82 billion within global equities, bonds, and
private equity.
Other directorships
Chairman of the boards in Haldor Topsøe A/S
and EMLIKA ApS. Member of the boards in Kirkbi
A/S, Novo Holdings A/S, Pluto Naturfonden, Lone
Dybkjær Fonden, Bellabeat Inc. and Randers
Regnskov.
Education
MSc (Economics, 1985) from the University of
Copenhagen, and in 2016 appointed adjunct
professor of the Department of Finance at CBS.
MIA ØSTERGAARD RECHNITZER
Board member and owner
Born in 1989.
Board member since 2020.
Chief Governance Officer and owner of the USTC
Group (A/S United Shipping & Trading Company).
Special competences
C-suite succession planning, C-level and board
composition, board and leadership assessments,
governance structure, development and
implementation of ESG strategy.
Other directorships
Member of the boards in Bunker Holding A/S, SDK
FREJA A/S and Uni-Tankers A/S.
Education
MSc in Human Resource Management
supplemented by courses at Harvard University
and London School of Economics.
PETER APPEL
Board member
Born in 1961.
Board member since 2019.
Partner, Gorrissen Federspiel law firm.
Special competences
In-depth knowledge and extensive experience within legal
matters related to the shipping industry, as an adviser to
and member of directors in a number of Danish shipping
companies and investment foundations with connections to
the area. Specialised in the transport sector and infrastructure
projects, including extensive knowledge about ferry service,
train and harbour projects.
Other directorships
Chairman of the boards in Deloitte Fonden, Fayard Holding
Aps, and Fayard A/S. Member of the boards in Bunker Holding
A/S, Uni-Tankers A/S, SDK FREJA A/S, Clipper Group Ltd.,
BIMCO Informatique A/S, Norchem A/S, Sølovsudvalget, and
Northern Offshore Services.
Education
LL.M. (Master of Laws), Copenhagen. Maritime Law, University
of Oslo. LL.M with Merit in Commercial and Corporate Law,
London School of Economics.
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
35
EXECUTIVE BOARD
NINA ØSTERGAARD BORRIS
CEO
Born in 1983.
Board member since 2014.
CEO and owner of the USTC Group (A/S United
Shipping & Trading Company).
Special competences
Company evaluations, mergers and acquisitions,
financial due diligence, business restructuring,
reorganisation, turnarounds and compliance.
Other directorships
Member of the boards in Uni-Tankers A/S, Bunker
Holding A/S, CM Biomass Partners A/S, A/S Global
Risk Management Ltd. Holding, A/S Global Risk
Management Ltd. Fondsmæglerselskab and
Middelfart Erhvervsråd. Vice Chairman of the board
in SDK FREJA A/S and Chairman of the board in Unit
IT A/S. Member of Beiratssitzung Nord, Deutsche
Bank.
Education
MSc in Applied Economics and Finance
supplemented by courses at Harvard University and
London School of Economics and Political Science.
JAKOB SCHULTZ NIELSEN
CFO
Born in 1980.
Joined the USTC Group in 2009.
Member of the Excecutive Board and CFO in
the USTC Group (A/S United Shipping & Trading
Company) since 2019.
Special competences
Extensive experience within investments and
financing, and knowledge of the real estate market.
An in-depth knowledge of the various business
activities in the USTC Group.
Other directorships
Member of the boards in Middelfart Bycenter
A/S, Selfpremises A/S, Selected Car Investment
1 A/S, Selected Car Investment 3 A/S, and
Havnepladsen, Odense ApS. Chairman of the board
in Ejendomsselskabet DP 1 A/S.
Education
MSc in Business Administration and Auditing,
supplemented by courses at Harvard Business
School.
MIA ØSTERGAARD RECHNITZER
Chief Governance Officer
Born in 1989.
Board member since 2020.
Chief Governance Officer and owner of the USTC
Group (A/S United Shipping & Trading Company).
Special competences
C-suite succession planning, C-level and board
composition, board and leadership assessments,
governance structure, development and
implementation of ESG strategy.
Other directorships
Member of the boards in Bunker Holding A/S, SDK
FREJA A/S and Uni-Tankers A/S.
Education
MSc in Human Resource Management
supplemented by courses at Harvard University
and London School of Economics.
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
36
INCOME STATEMENT
1 MAY 30 APRIL
DKK ‘000 Note 2023/24 2022/23
Revenue 1 114,262,799 138,543,683
Direct expenses (107,523,285 ) (130,731,358 )
Gross profit 6,739,514 7,812,325
Other operating income 19,292 52,157
Other external expenses (1,009,148 ) (1,132,971 )
Staff expenses 2 (2,491,466 ) (2,841,752 )
Depreciation, amortisation and impairment 6,7, 8 (1,038,587 ) (849,635 )
Profit before financial income and expenses 2,219,605 3,040,124
Share of profit/loss in associated companies 9 20,970 48,136
Financial income 3 143,899 245,432
Financial expenses 3 (550,566 ) (404,944 )
Profit before special items 1,833,908 2,928,748
Special items 4 (334,051 ) 0
Profit before tax 1,499,857 2,928,748
Corporation tax 5 (297,948 ) (533,237 )
Profit from continuing operations 1,201,909 2,395,511
Discontinued Operations 10 (1,248,244 ) (74,563 )
Profit for the year (46,335 ) 2,320,948
Attributable to:
Non-controlling interests 99,166 130,155
Shareholder in USTC (145,501 ) 2,190,793
Total (46,335 ) 2,320,948
STATEMENT OF COMPREHENSIVE INCOME
1 MAY 30 APRIL
DKK ‘000 Note 2023/24 2022/23
Profit for the year (46,335 ) 2,320,948
Items that may be reclassified to income statement
Fair value adjustment of derivative financial
instruments 15 4,504 (74,514 )
Exchange differences on translation of foreign
operations 104,706 (194,582 )
Other items (2,161 ) (576 )
Income tax relating to these items 3,568 15,635
Items that are not reclassified to income statement 0 0
Other comprehensive income 110,617 (254,037 )
Total comprehensive income 64,282 2,066,911
Attributable to:
Non-controlling interests 106,289 136,067
Shareholder in USTC (42,007 ) 1,930,844
Total 64,282 2,066,911
39
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
DKK ‘000 Note 30 April 2024 30 April 2023
Non-current assets
Intangible assets 6 2,025,478 1,936,337
Property, plant and equipment 7 2,055,406 1,815,293
Right-of-use assets 8 1,739,076 1,384,221
Investments in associates 9 264,787 179,451
Securities 6,748 7,446
Other receivables 12,419 11,804
Deferred tax assets 5 126,847 88,530
Total non-current assets
Current assets
Inventories
11
Trade receivables
14
Receivables from group enterprises 3,870 3,716
Receivables from associates 6,072 14,524
Other receivables 838,186 890,918
Prepayments 294,858 73,418
Corporation tax 161,332 78,647
Derivatives
12
Cash and cash equivalents 1,393,118 1,191,616
Total current assets 15,729,307 17,240,795
Assets 21,960,068 22,663,877
STATEMENT
OF FINANCIAL
POSITION
40
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
DKK ‘000 Note 30 April 2024 30 April 2023
Equity
Share capital 16 4,900 4,900
Reserves 115,547 13,975
Retained earnings 3,676,090 4,794,839
Equity, shareholders 3,796,537 4,813,714
Non-controlling interests 684,470 658,798
Equity 4,481,007 5,472,512
Non-current liabilities
Borrowings 14 2,416,287 2,751,614
Lease liabilities 8 1,119,230 891,363
Debt to non-controlling interests 222,537 212,692
Provisions 2,924 20,039
Put-option liability 747,200 699,000
Other payables 9,988 15,774
Deferred tax 5 123,384 146,529
Total non-current liabilities 4,641,550 4,737,011
Current liabilities
Borrowings 14 1,674,033 2,862,187
Lease liabilities 8 687,086 548,809
Trade payables 7,597,281 7,042,981
Payables to group enterprises 229,904 69,800
Payables to associates 1,495 2,632
Corporation tax 408,689 394,567
Prepayments received 317,817 56,586
Derivatives 12 747,392 483,592
Put-option liability 264,000 0
Other payables 909,814 993,200
Total current liabilities 12,837,511 12,454,354
Total liabilities 17,479,061 17,191,365
Total equity and liabilities 21,960,068 22,663,877
STATEMENT
OF FINANCIAL
POSITION
CONTINUED
41
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
DKK ‘000
Share
capital
Hedging
reserve
Foreign
currency
translation
reserve
Reserve
under the
equity
method
Retained
earnings
Equity
attributable
to owners
Non-
controlling
interests Total equity
2023/24
Equity at 1 May 4,900 (12,900 ) (49,876 ) 76,751 4,794,839 4,813,714 658,798 5,472,512
Earnings after tax (EAT) 0 0 0 0 (145,501 ) (145,501 ) 99,166 (46,335 )
Other comprehensive income net of tax 0 1,166 100,086 320 1,922 103,494 7,123 110,617
Total comprehensive
income for the year 0 1,166 100,086 320 (143,579 ) (42,007 ) 106,289 64,282
Dividends to shareholders 0 0 0 0 (600,000 ) (600,000 ) (4,891 ) (604,891 )
Put-option liability related to non-controlling interests 0 0 0 0 (312,200 ) (312,200 ) 0 (312,200 )
Acquisition of non-controlling interests 0 0 0 0 (61,856 ) (61,856 ) (77,551 ) (139,407 )
Sharebased payment 0 0 0 0 1,071 1,071 0 1,071
Other equity movements 0 0 0 0 (2,185 ) (2,185 ) 1,825 (360 )
Total transactions with shareholders 0 0 0 0 (975,170 ) (975,170 ) (80,617 ) (1,055,787 )
Equity at 30 April 4,900 (11,734 ) 50,210 77,071 3,676,090 3,796,537 684,470 4,481,007
STATEMENT OF CHANGES IN EQUITY
1 MAY 30 APRIL
42
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
DKK ‘000
Share
capital
Hedging
reserve
Foreign
currency
translation
reserve
Reserve
under the
equity
method
Retained
earnings
Equity
attributable
to owners
Non-
controlling
interests Total equity
2022/23
Equity at 1 May 4,900 57,182 139,415 59,780 3,542,152 3,803,429 491,271 4,294,700
Correction of error 0 0 0 0 (8,813 ) (8,813 ) (5,875 ) (14,688 )
Adjusted equity 4,900 57,182 139,415 59,780 3,533,339 3,794,616 485,396 4,280,012
Earnings after tax (EAT) 0 0 0 17,235 2,173,558 2,190,793 130,155 2,320,948
Other comprehensive income net of tax 0 (70,082 ) (189,291 ) (264 ) (312 ) (259,949 ) 5,912 (254,037 )
Total comprehensive
income for the year 0 (70,082 ) (189,291 ) 16,971 2,173,246 1,930,844 136,067 2,066,911
Dividends to shareholders 0 0 0 0 (560,000 ) (560,000 ) (4,200 ) (564,200 )
Put-option liability related to non-controlling interests 0 0 0 0 (265,700 ) (265,700 ) 0 (265,700 )
Acquisition of non-controlling interests 0 0 0 0 (23,897 ) (23,897 ) (20,969 ) (44,866 )
Transactions with non-controlling interests 0 0 0 0 (62,504 ) (62,504 ) 62,504 0
Sharebased payment 0 0 0 0 355 355 0 355
Total transactions with shareholders 0 0 0 0 (911,746 ) (911,746 ) 37,335 (874,411 )
Equity at 30 April 4,900 (12,900 ) (49,876 ) 76,751 4,794,839 4,813,714 658,798 5,472,512
STATEMENT OF CHANGES IN EQUITY CONTINUED
1 MAY 30 APRIL
43
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
DKK ‘000 Note 2023/24 2022/23
Earnings before interest and tax (EBIT) 2,219,605 3,040,124
Amortisation and depreciation for the year 1,038,587 849,635
Changes in receivables 233,410 (352,584 )
Changes in inventories 1,613,855 558,538
Changes in derivatives 203,912 (1,086,535 )
Changes in trade payables, other payables, etc 313,892 (1,560,256 )
Other adjustments 25,616 134,382
Cash flows from operating activities
before financial items and tax 5,648,877 1,583,304
Financial income received 143,899 138,856
Financial expenses paid (550,566 ) (514,376 )
Corporation tax paid (447,156 ) (361,791 )
Discontinued operations (639,785 ) (74,345 )
Other adjustments (1,558 ) (74,930 )
Cash flows from operating activities 4,153,711 696,718
DKK ‘000 Note 2023/24 2022/23
Business acquisition 23 (288,815 ) (15,454 )
Investment in associates 9 (49,977 ) (44,866 )
Dividends received 0 39,034
Purchase of intangible assets 6 (19,162 ) (46,785 )
Sale of financial assets 2,469 189,276
Purchase of property, plant and equipment 7 (672,161 ) (567,683 )
Sale of property, plant and equipment 134,794 169,141
Cash flows from investing activities (892,852 ) (277,337 )
Proceeds from borrowings and mortgage debt 20 417,159 642,332
Repayment of borrowings and mortgage debt 20 (2,051,814 ) (627,351 )
Principal elements of lease payments 20 (689,524 ) (492,002 )
Earn outs and payables to associates (144,238 ) (155,941 )
Dividend paid (600,000 ) (560,000 )
Other adjustments 0 81,516
Cash flows from financing activities (3,068,417 ) (1,111,446 )
Change in cash and cash equivalents 192,442 (692,065 )
Cash and cash equivalents at 1 May 1,191,616 1,892,699
FX translation of cash and cash equivalents at 1 May
Change in cash and cash equivalents 192,442 (692,065 )
Cash and cash equivalents at 30 April 1,393,118 1,191,616
Cash and cash equivalents consist of:
Cash held and bank deposits 1, 2 4 7, 3 1 6 990,8 41
Money market funds 14 5,802 20 0,7 7 5
1,393,118 1,191,616
CASH FLOW STATEMENT
1 MAY 30 APRIL
44
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
NOTE 1 –––––––––––– 48 –––––––––––––––––––––––––– Revenue
NOTE 2 ––––––––––––
48 –––––––––––––––––––––––––– Staff expenses
NOTE 3 –––––––––––
48 –––––––––––––––––––––––––– Financial income and expenses
NOTE 4 –––––––––––
49 –––––––––––––––––––––––––– Special items
NOTE 5 –––––––––––
50 –––––––––––––––––––––––––– Taxes
NOTE 6 –––––––––––
52 –––––––––––––––––––––––––– Intangible assets
NOTE 7 –––––––––––
56 –––––––––––––––––––––––––– Property, plant and equipment
NOTE 8 –––––––––––
58 –––––––––––––––––––––––––– Right of use assets
NOTE 9 –––––––––––
60 –––––––––––––––––––––––––– Investments in associates
NOTE 10 ––––––––––
60 –––––––––––––––––––––––––– Discontinued operations
NOTE 11 –––––––––––
61 –––––––––––––––––––––––––– Inventories
NOTE 12 ––––––––––
62 –––––––––––––––––––––––––– Derivatives
NOTE 13 ––––––––––
63 –––––––––––––––––––––––––– Fair value
NOTE 14 ––––––––––
64 –––––––––––––––––––––––––– Financial instruments by category
NOTE 15 ––––––––––
66 –––––––––––––––––––––––––– Financial risks
NOTE 16 ––––––––––
71 –––––––––––––––––––––––––– Share capital
NOTE 17 ––––––––––
71 –––––––––––––––––––––––––– Put-option liability related to non-controlling interests
NOTE 18 ––––––––––
73 –––––––––––––––––––––––––– Contingent assets, liabilities and assets pledged as security
NOTE 19 ––––––––––
74 –––––––––––––––––––––––––– Other information
NOTE 20 ––––––––––
75 –––––––––––––––––––––––––– Change in liabilities arising from financing activities
NOTE 21 ––––––––––
76 –––––––––––––––––––––––––– Significant accounting estimates and judgements
NOTE 22 ––––––––––
77 –––––––––––––––––––––––––– Significant accounting policies
NOTE 23 ––––––––––
83 –––––––––––––––––––––––––– Business combinations
NOTES
CONTENTS
47
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
3
FINANCIAL INCOME AND EXPENSES 1 MAY 30 APRIL
DKK ‘000 2023/24 2022/23
Interest income on loans and receivables 6 8,75 6 66,839
Foreign exchange rate gains 6,7 3 0 2,98 9
Other financial income 6 7, 8 8 9 175,015
Securities, gains 524 589
Financial income 14 3,899 24 5,4 32
Interest on debts and borrowings 413,525 2 3 5,682
Interest expenses from leases 73,861 35,5 6 3
Foreign exchange rate losses 9,029 44,570
Securities, losses 1 7,8 0 2 16,0 2 9
Other financial expenses 36,349 73,100
Financial expenses 55 0,566 404,944
1 REVENUE 1 MAY 30 APRIL
DKK mill 2023/24 2022/23
Sale and mediation of bunkers 99,499 1 2 2,6 3 7
Shipping, Logistics, Environment & Recycling 6,035 6,585
Ship owning 2,226 2,5 9 5
Sustainable energy 6,225 6,14 3
IT Services 273 230
Other activities 5 354
Total 114,263 138,544
Revenue specified on geographical areas
Europe 5 7,1 8 4 73,48 4
Asia 38,030 41,6 0 5
Americas 16,597 1 7, 6 8 8
Other 2,452 5,7 67
Total 114,263 138,544
Timing of revenue recognition
Goods and services transferred at a point in time 113,990 1 3 5,7 2 9
Goods and services transferred over time 273 2,815
Total 114,263 138,544
2 STAFF EXPENSES 1 MAY 30 APRIL
DKK ‘000 2023/24 2022/23
Staff expenses
Hiring of crew 242,857 168,592
Wages and salaries 1,928,0 88 2,388,36 5
Pensions 139,186 105,5 0 2
Other social security expenses 181,335 179,2 93
Total 2,491,466 2,8 41,75 2
Number of employees* 4,324 4,331
*) Calculated as annual full-time employees.
Key Management consists of Executive Board and Board of Directors. The compensation paid
or payables to Key Management is shown in note 19.
48
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
4 SPECIAL ITEMS 1 MAY 30 APRIL
DKK '000 2023/24 2022/23
Impairment of land and property, plant and equipment 69,9 4 4 0
Impairment of intangible assets 59,249 0
Impairment of right of use asset 3 4,742 0
Derecognation of provisions due to bankruptcy (12,320) 0
Impairment of goodwill 16,590 0
Landslide mitigation costs 51,002 0
Legal and other advisory costs 14,8 4 4 0
Climate Fund / Association 100,000 0
Total 334,051 0
Special items comprise losses arising from the landslide and subsequent bankruptcy of
Nordic Waste A/S. The costs include impairment losses, costs associated with mitigating the
effects of the landslide and related legal costs and the contribution to the climate fund/asso-
ciation decided as a consequence of the effect of the landslide.
Had the items not been classified as special items, they would have been included in the
following line items:
Depreciation of property, plant and equipment 104,68 6 0
Amortisation of intangible assets 75,839 0
Other external expenses 15 3,526 0
Total 334,051 0
49
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
5 TAXES 1 MAY 30 APRIL
DKK ‘000
Income
Statement
Other com-
prehensive
income Total
2023/24
Current tax for the year 336,6 5 0 3,56 8 340,218
Current tax concerning previous years (19,2 3 0) 0 (19,2 3 0)
Deferred tax for the year (1 7,7 3 6 ) 0 (1 7,7 3 6 )
Deferred tax concerning previous years (1,7 3 6) 0 (1,7 3 6)
Total tax for the year 2 9 7,9 4 8 3,568 301,516
2022/23
Current tax for the year 526,866 1 5,6 35 5 42,5 01
Current tax concerning previous years 2 7,7 9 4 0 2 7,7 9 4
Deferred tax for the year (1,523) 0 (1,523)
Deferred tax concerning previous years (19,900) 0 (19,90 0)
Total tax for the year 533,237 15,6 35 548,872
Pillar II (minimum taxation) legislation has not yet come into effect. If the minimums taxation
had been effective, our tax rate would have been 20.2% instead of the current 19.9%.
The effective tax rate is based on the continuing operations.
RECONCILIATION OF TAX EXPENSES
DKK ‘000 2023/24 2022/23
Profit before tax 1,4 9 9,857 2,9 2 8,74 8
Share of profit/loss in associated companies (20,970) (48,136)
Tonnage tax regime (36 4,82 9) (418,966)
Non-deductible expenses, net 259,9 2 9 2 9,228
Other adjustments (10 9,61 2) 2,18 2
Profit before tax adjusted 1,264,375 2,493,056
Tax using the Danish corporation tax rate (22%) (278,16 3) (5 48,472)
Tax rate deviations in foreign jurisdictions (25,223) 33,212
Adjustment to previous years taxes 2 0,588 ( 7, 8 9 4)
Deferred tax assets previously not recognised, utilised (82) 0
Other adjustments, net (15,068) (10,0 8 3)
Total income tax (2 9 7,9 4 8) (533,237)
50
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
DEFERRED TAXES
DKK ‘000 2023/24 2022/23
Deferred tax at 1 May (57,999) (70,64 3)
Foreign exchange adjustments (3,953) (8,7 7 9)
Acquired in business combinations 43,058 0
Adjustment to previous years 5,7 3 3 19,9 0 0
Recognised in the income statement 16,624 1,523
Deferred tax at 30 April 3,463 (57,999)
Deferred tax is recognised in the balance
sheet as follows:
Deferred tax assets 126,847 8 8,530
Deferred tax liability (123,384) (146,52 9)
Deferred tax at 30 April 3,463 (57,999)
Deferred tax assets including the tax base of tax loss carry forwards are recognised
at the amount by which they are estimated to reduce future tax payments.
Unused tax losses for which no deferred tax asset has been recognised amount to
DKK 2 million in 2023/24 (2022/23: DKK 20 million). Unrecognised tax asset may be
carried forward for an unlimited period of time, and it is uncertain whether the tax
loss can be utilised.
The balance comprises temporary differences attributable to:
Deferred tax assets Deferred tax liabilities
DKK ‘000 2023/24 2022/23 2023/24 2022/23
Intangible assets 48,986 1,137 (7 7,8 6 3) (9 4,74 5)
Property, plant and equipment 3,574 1,958 (21,509) (42,622)
Other assets 24,6 31 1 7, 9 7 1 2,517 1 7,0 0 6
Provisions 34,201 8,65 4 (26,529) (26,168)
Tax losses etc. 15,4 55 58,810 0 0
Deferred tax at 30 April 126,847 88,530 (12 3,3 84) (146,529)
Expected to be used as follows:
Within 12 months 16,283 1 7,7 0 6 (5,0 14) (29,3 06)
More than 12 months 1 10,56 4 70,824 (118,370) ( 1 1 7, 2 2 3 )
Total 126,847 88,530 (12 3,3 84) (146,529)
5 TAXES CONTINUED 1 MAY 30 APRIL
51
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
6 INTANGIBLE ASSETS 30 APRIL
DKK ‘000 Goodwill
Customer
relationship Brand
Technologies
and
knowhow
Acquired
rights Software
Completed
development
projects Total
2023/24
Cost at 1 May 1,484,333 3 3 7, 5 1 9 1 6 4,75 3 68,6 97 9 5,0 21 27 1,148 0 2,421,47 1
Exchange rate adjustment 2,197 5,907 (5) 0 2,268 7,0 9 5 0 17,4 6 2
Additions 5,000 0 0 0 0 14,523 0 19,523
Acquired in business combinations 1 6 7,3 8 3 3 4,2 8 2 0 0 0 0 11,480 213,145
Disposals (16,590) 0 0 0 0 0 0 (16,590)
Cost at 30 April 1,642,323 3 7 7,7 0 8 16 4,74 8 68,6 97 9 7, 2 8 9 2 92,7 6 6 11,480 2,655,011
Amortisation at 1 May 0 268,4 67 1,058 6,299 85,100 124,210 0 485,13 4
Exchange rate adjustment 0 5,7 17 0 0 2,016 2,8 39 0 10,572
Amortisation 0 24,087 0 3,14 9 1,287 3 8,7 3 5 1,057 68,315
Impairment for the year 22,853 0 0 5 9,249 0 0 0 82,102
Reversed amortisation of disposals (16,590) 0 0 0 0 0 0 (16,590)
Depreciation at 30 April 6,263 298,271 1,058 68,6 97 88,403 1 6 5,78 4 1,057 629,5 3 3
Carrying amount at 30 April 1,6 36,060 79,4 37 163,6 9 0 0 8,886 126,982 10,423 2,025,478
52
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
INTANGIBLE ASSETS CONTINUED
DKK ‘000 Goodwill
Customer
relationship Brand
Technologies
and
knowhow
Acquired
rights Software
Completed
development
projects Total
2022/23
Cost at 1 May 1,470,373 3 3 7,3 2 2 16 4,4 6 0 6 8,697 101,946 241,827 8,3 4 0 2,392,965
Exchange rate adjustment (21,283) (9,306) (765) 0 (3,6 83) (12,231) 0 (4 7,2 6 8)
Transfer 0 0 0 0 0 8,340 (8,340) 0
Additions 1 7,0 6 8 0 0 0 0 33,212 0 50,280
Acquired in business combinations 4,073 9,5 03 0 0 0 0 0 1 3,5 76
Disposals 0 0 0 0 (3,242) 0 0 (3,242)
Other adjustments 14,10 2 0 1,058 0 0 0 0 15,160
Cost at 30 April 1,484,33 3 3 3 7,5 1 9 1 6 4,7 5 3 68,697 95,021 271,148 0 2,421,471
Amortisation at 1 May 0 249,8 66 0 1,576 8 7, 8 9 9 8 8,7 6 5 8,3 4 0 4 36,4 46
Exchange rate adjustment 0 (9,1 8 0) 0 0 (3,383) (4,6 40) 0 (1 7, 2 0 3)
Transfer 0 0 0 0 0 8,340 (8,340) 0
Amortisation 0 2 7,7 8 1 0 4,72 3 1,389 34,033 0 6 7,9 2 6
Reversed amortisation of disposals 0 0 0 0 (805) (2,288) 0 (3,09 3)
Other adjustments 0 0 1,058 0 0 0 0 1,058
Depreciation at 30 April 0 268,467 1,058 6,299 85,100 124,210 0 485,134
Carrying amount at 30 April 1,484,33 3 69,052 163,6 9 5 62,398 9,921 146,938 0 1,936,3 37
53
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
INTANGIBLE ASSETS CONTINUED
GOODWILL ON CASH GENERATING UNITS
DKK ‘000 2023/24 2022/23
Goodwill and brands with indefinite life
have been tested on the following CGUs:
SDK FREJA, goodwill 78 5,972 798,815
SDK FREJA, brands with indefinite life 16 3,6 9 0 163,6 95
CM Biomass 472,464 472,176
Unit IT 251,258 0
CGU's with insignificant goodwill 12 6,3 66 213,342
Carrying amount at 30 April 1,79 9,7 5 0 1,648,028
Impairment test
Goodwill is monitored by management at subgroup level.
The Group tests whether goodwill has suffered any impairment on an
annual basis. The recoverable amount of a cash generating unit (CGU) is
determined based on value-in-use calculations.
For the value-in-use calculation the cash flow projections are based on
financial budgets and forecasts approved by management covering a
five-year period. Cash flows beyond the five-year period are extrapolated
using the estimated growth rates stated below. These growth rates are
consistent with forecasts included in industry reports specific to the
industry in which each CGU operates.
ASSUMPTIONS APPLIED IN THE IMPAIRMENT TESTS
DKK ‘000 2023/24 2022/23
SDK FREJA
Terminal period EBIT margin % Avg. 4.0 % 4.0%
Terminal period growth rate Avg. 2.0 % 2.0%
Discount rate Avg. 10.1 % 8.3 %
CM Biomass
Terminal period EBIT margin % Avg. 4.2 % 3.5%
Terminal period growth rate Avg. 4.0 % 3.0 %
Discount rate Avg. 13.8% 13.8%
Unit IT
Terminal period EBIT margin % Avg. 8.0 %
Terminal period growth rate Avg. 2.0 %
Discount rate Avg. 13.0 %
Management has determined the values assigned to each of the above key assumptions as follows:
Annual growth
This is the weighted average growth rate used to
extrapolate cash flows beyond the budget period.
The rates are consistent with forecasts included in
industry reports.
EBIT margin
This is weighted average EBIT margin defined as
EBIT divided by gross profit. Based on past perfor-
mance and management’s expectations.
Discount rate
The discount rate is a WACC that reflects the risk
free interest rate with the addition of a risk premi-
um associated with the particular cash generation
unit.
During the impairment tests we have concluded
that there were no impairment losses for 2023/24
(2022/23: DKK 0 million).
A reasonable change in the applied key assump-
tions on which the management has based its
estimation of the recoverable amounts would not
cause the carrying amounts to exceed the recover-
able amount of the goodwill.
54
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
7 PROPERTY, PLANT AND EQUIPMENT 30 APRIL
DKK ‘000
Land and
buildings
Ships and
equipment
Fixtures and
fittings, tools
and equipment
Leasehold
improvements
Prepayment for
fixed assets
Plant and
Machinery Total
2023/24
Cost at 1 May 474,080 1,914,806 2 5 3,679 71,761 509 440,870 3,155,705
Exchange rate adjustment 6,066 43,922 1,6 96 (4 0 4) 13 893 52,186
Transfers 8,113 0 (2,0 2 6) 0 0 (4,24 9) 1,8 3 8
Additions 34,8 46 333,774 9 7, 8 4 7 28,320 438 165,169 660,394
Acquired in business combinations 0 0 4 0,1 22 0 0 0 4 0,1 22
Disposals (9 2,7 0 0) ( 4 1 7,7 1 8 ) (19,972) (23,928) 0 (34,106) (58 8,424)
Other adjustments 0 0 0 0 0 0 0
Cost at 30 April 430,405 1,8 74,78 4 371,346 75,74 9 960 568,577 3,321,821
Depreciation and impairment at 1 May 9 0,426 9 6 9,45 4 188,289 34,563 502 5 7, 1 7 8 1,3 40,41 2
Exchange rate adjustment 702 36,979 5,5 85 415 13 256 43,950
Transfers 0 0 0 0 0 0 0
Depreciation 1 3,699 1 25,4 6 2 39,222 9,2 6 4 0 60,3 8 4 248,031
Reversed depreciation and impairments of disposals (79,4 0 5) (3 41,058) (2,592) (4,145) 0 (1 7,5 6 8) (444,768)
Impairment losses 70,638 0 380 0 0 7,7 7 2 78,7 9 0
Depreciation and impairments at 30 April 96,060 790,837 230,884 40,097 515 108,022 1,266,415
Carrying amount at 30 April 334,345 1,0 8 3,947 140,462 3 5,6 51 445 460,556 2,055,406
56
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
PROPERTY, PLANT AND EQUIPMENT CONTINUED
DKK ‘000
Land and
buildings
Ships and
equipment
Fixtures and
fittings, tools
and equipment
Leasehold
improvements
Prepayment for
fixed assets
Plant and
Machinery Total
2022/23
Cost at 1 May 3 8 7,8 6 9 2,389,293 3 2 7, 4 7 3 9,542 455 121,110 3,235,742
Exchange rate adjustment (527) (55,507) (2,655) (85 4) 47 343 (5 9,15 3)
Transfers (38,922) 0 (112,882) 49,25 8 0 102,5 4 6 0
Additions 125,817 10 5,7 9 9 59,970 15,186 7 252,079 558,858
Acquired in business combinations 0 0 4,808 0 0 0 4,808
Disposals (157) (5 24,7 7 9) (8,36 5) (1,371) 0 (35,20 8) (569,8 80)
Other adjustments 0 0 (14,670) 0 0 0 (14,670)
Cost at 30 April 474,080 1,914,806 2 5 3,679 7 1,761 509 440,870 3,155,705
Depreciation and impairment at 1 May 101,86 5 1,175,176 214,6 61 3,485 455 4,3 31 1,49 9,973
Exchange rate adjustment (1 2,146) (3 1,741) (3,976) 11,270 47 (2,569) (39,1 15)
Transfers (1 3,70 0) 0 (61,380) 1 3,7 0 0 0 61,380 0
Depreciation 14,5 5 6 191,534 4 6,7 3 2 7,458 0 23,450 28 3,7 3 0
Reversed depreciation and impairments of disposals (149) (365,515) ( 7,7 4 8 ) (1,350) 0 (28,5 51) (4 0 3,313)
Impairment losses 0 0 0 0 0 (8 6 3) (863)
Depreciation and impairments at 30 April 90,426 9 6 9,454 188,289 34,563 502 5 7,1 7 8 1,340,412
Carrying amount at 30 April 383,654 94 5,352 65,390 3 7,1 9 8 7 38 3,692 1,815,293
57
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
8 RIGHT OF USE ASSETS 30 APRIL
The balance sheets show the following amounts relating to leases:
DKK ‘000 2023/24 2022/23
Land and buildings 541,941 5 3 4,0 6 4
Fixtures and fittings, tools and equipment 1,197,135 8 5 0,157
Right-of-use assets at 30 April 1,73 9,0 7 6 1,384,221
Depreciation charge of right-of-use assets
Land and buildings 1 5 7, 6 7 1 174,70 7
Fixtures and fittings, tools and equipment 564,569 323,4 9 0
Total 722,240 498,197
Interest expense (included in finance costs) 73,7 2 1 42,420
Expenses relating to short-term leases 634,405 5 2 6,7 9 9
Expenses relating to low-value assets 0 155
Additions to right-of-use assets 1,063,675 870,520
Total cash outflow for leases 1,081,880 1,061,376
Future cashflow from committed leases with
commencement dates in the following year 15,0 9 6 1 3 9,267
USTC operates as lessor, primarily related to time charter contracts.
The following table sets out a maturity analysis of lease receivables, showing the
undiscounted lease payments to be received after the reporting date:
DKK ‘000 2023/24 2022/23
Operating leases
Less than one year 9 7,6 6 7 155,675
One to two years 24,112 60,078
Two to three years 16,3 35 0
Total undiscounted lease receivables 138,114 21 5,75 3
The following table sets out lease liabilities split into current and non-current liabilities:
DKK ‘000 2023/24 2022/23
Non-current lease liabilities 1,119,230 891,36 3
Current liabilities 6 8 7,0 8 6 5 48,809
Lease liabilities at 30 April 1,806,316 1,440,172
For the maturity analysis of lease payments please refer to note 14.
58
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
9 INVESTMENTS IN ASSOCIATES 30 APRIL
The Group owns interest in a number of associates which are not individually considered
material from the Group.
DKK ‘000 2023/24 2022/23
Cost at 1 May 10 2,7 0 0 101,894
Exchange adjustments 1,4 47 0
Additions for the year 59,17 1 22,558
Disposals for the year 0 (2 1,7 52)
Cost at 30 April 163,318 1 0 2,70 0
Value adjustments at 1 May 7 6,7 51 6 7, 3 6 4
Exchange rate adjustment 3,74 8 (263)
Share of profit for the year 20,970 48,136
Dividends 0 (38,486)
Value adjustments at 30 April 101,469 76,7 5 1
Carrying amount at 30 April 2 6 4,7 8 7 179,451
10 DISCONTINUED OPERATIONS 30 APRIL
Bunker Holding Group had discontinued operations in 2023/24 comprising of Cargo busi-
ness in East and West Africa performed by the subsidiary PSTV DMCC in Dubai. The Cargo
business in that region is not considered to be within the scope of the strategic direction of
Bunker Holding Group and hence was closed.
The Cargo operation in PSTV DMCC ceased operation during the financial year 2023/24
and is reported as a discontinued operation. The subsidary PSTV DMCC continues its other
activities.
Financial information relating to the discontinued operation for the period is set out below.
DKK ‘000 2023/24 2022/23
Income statement
Revenue 3,848,269 8,8 5 3,614
Expenses (5,0 9 6,51 3) (8,928,177)
Earnings before tax (1,248,24 4) (74,5 63)
Income tax 0 0
Earnings from discontinued operation (1,248,244) (74,563)
Statement of comprehensive income
Fair value adjustment of derivative financial instruments 9,651 (9,6 51)
Total comprehensive income 9,651 (9,651)
Cash flow statement
Cash flows from operation activities 1,580,183 (346,306)
Cash flows from financing activities (1,375,4 45) 8 4,95 5
Net cash flow from discontinued operations 20 4,7 38 (261,351)
Expenses comprise of impairment losses of DKK 601 million.
60
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
11 INVENTORIES 30 APRIL
DKK ‘000 2023/24 2022/23
Bunkers 1,045,905 2,642,546
Wood pellets and biofuel 6 7 7, 8 9 8 6 9 4,8 45
Other 115 382
Total inventory 1,7 2 3,91 8 3,3 3 7,7 7 3
Write-downs of inventory to net realisable value have been recognised as an expense
during the year and included in direct expenses in the statement profit or loss.
61
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
12 DERIVATIVES 30 APRIL
Derivatives are used only for economic hedging purposes and not as speculative investments. However, where derivatives do
not meet the hedging criteria, they are classified as ‘held for trading’ for accounting purposes below. The Group has the following
derivative financial instruments:
2023/24 2022/23
DKK ‘000 Assets Liabilities Assets Liabilities
Commodity swaps 2,108,271 (2,135,576) 2,34 3,625 (1,862,13 4)
Commodity futures 7 0 7, 0 1 0 (5 41,4 9 8) 1 , 3 3 7,4 5 6 (1,514,168)
Fixed price physical 0 0 1,0 87 0
Commodity options 21,238 (2 2,18 4) 18,516 (18,5 57)
Interest rate hedge 0 (982) 0 0
Forward foreign exchange contracts 1,7 3 9 (10,682) 0 (13,7 79)
Settled financial instruments 60,8 0 5 (53,025) 81,6 82 (7 0,474)
Portfolio adjustment ( 1 7,7 7 9) 0 0 0
Gross balance 2,881,284 (2,76 3,9 47) 3,7 8 2,3 66 (3,479,112)
Balances qualifying for offsetting
Commodity swaps, -futures
and -options (1,8 4 8,576) 1,84 8,5 79 (2,5 0 4,79 5) 2,5 0 4,79 4
Net balance 1,0 3 2,70 8 (915,3 6 8) 1,277,571 (974,318)
Margin deposits 0 0 (5 7, 2 4 4) 0
Margin deposits (226,659) 1 6 7,9 7 6 (474,16 6) 4 9 0,72 6
Amounts presented in the balance sheet 806,049 ( 7 4 7,3 9 2 ) 746,161 (4 8 3,592)
Amounts with right of set-off (8 7, 2 2 0) 1 0 7, 1 7 8 (156,602) 156,6 0 2
Balance amounts covered by guarantees (1 2,6 51) 0 0 0
Net exposure 706,178 (64 0,214) 589,559 (326,990)
The Group has a master netting agreement with some
customers and obtains and provides collateral in excess
of agreed credit limits. In the balance sheet, derivative
assets and liabilities and related collateral with the same
counterparty are presented net to the extent that the
amounts will be settled net.
Offsetting is typically limited within specific products.
According to IFRS, financial assets and liabilities are
presented net, if there is both a legal right and intention
to settle amounts with a counter party net or simultane-
ously.
Derivatives are classified as held for trading and
accounted for at fair value through profit or loss unless
they are designated as hedges. They are presented as
current assets or liabilities if they are expected to be
settled within 12 months after the end of the reporting
period.
62
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
13 FAIR VALUE 30 APRIL
DKK ‘000 Level 1 Level 2 Level 3 Total
2023/24
Financial assets
Derivatives 775,6 8 6 2,112,437 0 2,888,123
Securities 0 0 6,74 8 6,74 8
Total 775,686 2,112,437 6,74 8 2,894,871
Financial liabilities
Derivatives (619,658) (2,14 3,7 1 1) 0 (2,763,369)
Contingent consideration
from acquisitions 0 0 (7,000) (7,000)
Total (61 9,6 58) (2,1 4 3,7 11) (7,000) (2,770,369)
2022/23
Financial assets
Derivatives 1,419,153 2,36 4,91 0 1,086 3,7 8 5,14 9
Securities 0 0 7, 4 4 6 7, 4 4 6
Total 1,419,153 2,364,910 8,5 32 3,79 2,5 9 5
Financial liabilities
Derivatives (1,5 84,6 42) (1,895,582) 0 (3,4 8 0,224)
Contingent consideration
from acquisitions 0 0 (16,319) (16,319)
Total (1,584,6 42) (1,895,582) (16,319) (3,496,543)
Fair value hierarchy – Financial instruments measured at fair value
Financial instruments measured at fair value comprise only derivatives and can be divided
into three levels:
There were no transfers between levels 1 and 2 for recurring fair value measurements during
the year. Neither were there any transfers into or out of level 3.
The Group's policy is to recognise transfers into and out of fair value hierarchy levels as at the
end of the reporting period.
Level 1
Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2
Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). To a large extent
level 2 is based on observable quoted prices, however in some instances forward prices are
not observable. In these situations we use the most liquid forward curves and derive a spread
to the specific location. For options theoretical pricing models with implied volatilities are
used to calculate market prices.
These valuation techniques maximise the use of observable market data where it is available
and rely as little as possible on entity specific estimates. If all significant inputs required to
calculate the fair value of an instrument are observable, the instrument is included in Level 2;
Level 3
Inputs for the asset or liability that are not based on observable market data. Fair value of
listed securities falls within level 1 of the fair value hierarchy. Non-listed shares and other secu-
rities fall within level 3 of the fair value hierarchy.
Fair value of derivatives falls mainly within level 2 of the fair value hierarchy and is calculated
on the basis of observable market data as of the end of the reporting period. A minor amount
of crude oil price derivatives fall within level 1 of the fair value hierarchy.
Fair value of level 3 assets and liabilities is primarily based on the present value of expected
future cash flows. A reasonably possible change in the discount rate is not estimated to affect
the Group’s profit or equity significantly.
63
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
14 FINANCIAL INSTRUMENTS BY CATEGORY 1 MAY 30 APRIL
Categories of financial assets and liabilities as defined in IFRS 9. The classification depends on
the purpose for which the investments were made.
Management determines the classification of its investments on initial recognition and revalu-
ates this at the end of every reporting period to the extent that such a classification is permitted
and required.
Financial instruments carried at fair value
The Group has entered into financial bunker sale agreements with customers with the bunker
price in places where the price is not observable as the underlying. Fair value is determined as
the present value of the difference between the price fixed in the agreement and the forward
price for the same quality of bunker in a liquid place (Rotterdam, Singapore) with the addition
of an estimated spread between the liquid place and the place of delivery under the contract
for the same quality of bunker and an estimated margin. The spread is determined on the
basis of an analysis of the historical difference between the actual price in the liquid place and
available price observations for the place of delivery. The margin is estimated to be equal to the
margin on inception of the contract over the term of the agreement. Refer to note 12 for further
information.
Financial instruments carried at amortised cost
Fair value of the short term financial assets and other financial liabilities carried at amortised
cost is not materially different from the carrying amount.
In general, fair value is determined primarily based on the present value of expected future
cash flows, discounted with an interest rate reflecting their credit rating of the company. Where
a market price was available, however, this was deemed to be the fair value.
Fair value of borrowing items fall within level 2 of the fair value hierarchy and is calculated on
the basis of discounted future cash flows. The carrying amount of financial liabilities measured
at amortised cost is not considered to differ significantly from fair value.
Valuation techniques used to determine fair values
Specific valuation techniques used to value financial instruments include:
• for commodity futures - the use of quoted market prices or dealer quotes for similar instru-
ments
• for interest rate swaps - the present value of the estimated future cash flows based on
observable yield curves
• for foreign commodity swaps and forward exchange contracts - the present value of future
cash flows based on the forward exchange rates at the balance sheet date
• for commodity options – option pricing models (e.g. Black-Scholes model), and
• for other financial instruments – discounted cash flow analysis.
All of the resulting fair value estimates are included in level 2, except for certain derivative
contracts, where the fair values have been determined based on present values and the dis-
count rate used were adjusted for counterparty or own credit risk.
The group obtains independent valuations for its investments properties at least annually. At
each reporting period, the directors update their assessment of the fair value of each proper-
ty, taking into account the most recent independent valuations, and determines the fair value
within a range of reasonable estimates.
The best evidence of fair value is current prices in an active market for similar properties.
Where such information is not available the directors consider information from a variety of
sources including:
• current prices in an active market for properties of a different nature or recent prices of
similar properties in less active markets, adjusted to reflect those differences.
• discounted cash flow projections based on reliable estimates of future cash flows
• capitalised income projections based on a property's estimated net market income, and a
capitalisation rate derived from an analysis of market evidence.
All resulting fair value estimates for properties are included in level 3.
13 FAIR VALUE CONTINUED
64
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
DKK ‘000
Fair value
through
profit or loss
Amortised
cost Total
2023/24
Financial assets
Trade and other receivables 0 11,352,50 9 11,352,509
Derivative financial instruments 806,049 0 806,049
Securities 6,74 8 0 6,74 8
Cash and cash equivalents 0 1,393,118 1,3 9 3,118
Total financial assets 81 2,7 97 1 2,74 5,6 27 13,558,424
Financial liabilities
Trade and other payables 0 8 , 5 1 7,0 8 3 8,5 1 7, 0 8 3
Borrowings 0 4,0 90,3 2 0 4,090,320
Lease liabilities 0 1,806,316 1,806,316
Derivative financial instruments 74 7, 3 9 2 0 74 7,3 9 2
Total financial liabilities 747, 3 9 2 14,413,719 15,161,111
Total (1,6 02,687)
DKK ‘000
Fair value
through
profit or loss
Amortised
cost Total
2022/23
Financial assets
Trade and other receivables 828 1 1,800,929 11,801,757
Derivative financial instruments 746,161 0 746,161
Securities 7,4 4 6 0 7,4 4 6
Cash and cash equivalents 0 1,191,616 1,191,616
Total financial assets 754,435 12,992,545 13,746,980
Financial liabilities
Trade and other payables 16,319 7,7 1 2,76 7 7,7 2 9, 0 8 6
Borrowings 0 5,613,801 5,613,801
Lease liabilities 0 1,440,172 1,4 4 0,172
Derivative financial instruments 522,508 0 5 2 2,508
Total financial liabilities 538,827 14,76 6,74 0 15,3 05,567
Total (1,558,587)
14 FINANCIAL INSTRUMENTS BY CATEGORY CONTINUED
65
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
15 FINANCIAL RISKS 30 APRIL
The Group is exposed to a variety of financial risks including market risks such as currency
risks, interest rate risks and commodity price risks. The Group is also exposed to credit risks
and liquidity risks.
Market risk is the risk of losses on financial positions arising from movements in market
prices to which the group is exposed through financial instruments. Market risks are regularly
assessed and prioritised based on how likely they are to occur and their potential impact. The
Group’s risk management programme seeks to minimise the potential adverse effects on
the Group’s financial performance. The Group uses derivative financial instruments to hedge
certain risk exposures.
Risk management is carried out by a central department under policies approved by the
Board of Directors.
The below sensitivity analyses relate to the position of financial instruments at 30 April.
Currency risk
The functional currency of two of the largest entities in the Group, Bunker Holding and
Uni-Tankers is USD and thus most amounts are recorded in USD but reported in DKK as DKK
is the reporting currency.
However, payments of local costs such as office expenses, local taxes, local employee
compensation and GST/VAT payments may be denominated in local currency. In some
limited locations, suppliers are paid in local currency. The largest gross exposures are to the
Singapore Dollar, The United Arab Emirates dirham and Mauritian Rupee. However the risk
management policy requires the use of hedging strategies to mitigate the impact of foreign
currency exchange risk. Therefore, the net exposure to foreign currency exchange risk is
insignificant.
CM Biomass, whose functional currency is EUR, enters into sales as well as purchase
transactions in foreign currencies. The main currency to which CM Biomass is exposed is USD.
As of 30 April 2024 a 10% increase in the USD rate would have decreased profit for the year
before by DKK 4.5 million (2022/23: increased by DKK 5.0 million) and to affect the Group’s
equity, excluding tax, negatively by DKK 37.2 million (2022/23: negatively by DKK 27.0 million).
The sensitivities are based only on the impact of financial instruments that are outstanding at
the balance sheet date and are thus not an expression of the Group’s total currency risk.
Other Group entities primarily have transactions in DKK or EUR which is also their functional
currency. Therefore, the net exposure to foreign currency exchange risk is insignificant for
these entities.
As of 30 April 2024, the Group has no foreign currency hedges. 30 April 2023, the Group had
designated USD 40 million forward contracts at an average rate of 642 as highly probable
forecasted sales which all matured during 2023/24. The deferred loss of DKK 14.1 million as of
30 April 2023 has been transferred to the income statement upon realisation of the hedges.
Interest rate risk
The Group has most of its debt denominated in USD. Borrowings issued at variable interest rates
expose the Group to interest rate risk. The Group’s policy is to have its borrowings mainly in float-
ing rate instruments, as the borrowings are mainly financing short term assets.
A general increase in interest rates by one percentage point is estimated, all other things being
equal, to have a negative impact on profit before tax and equity, excluding tax by DKK 52.8 mil-
lion (2022/23: negatively by DKK 70.0 million), as a result of higher interest cost on borrowings.
The pricing model of the Group allows to a large extent the pass-through of interest costs to
customers. Hence, from an operational point of view the Group is not as exposed as the analysis
indicates. As such the analysis is therefore not representative for the Group.
NET INTERESTBEARING DEBT
DKK ‘000 2023/24 2022/23
Non-current liabilities
Borrowing 2,416,287 2,751,614
Leasing liabilities 1,1 19,230 891,363
Current liabilities
Borrowings 1,674,0 3 3 2,862,187
Leasing liabilities 6 8 7, 0 8 6 548,809
Interest-bearing debt 5,896,636 7,0 5 3,9 7 3
Cash and cash equivalents 1,3 9 3,1 18 1,191,616
Interest-bearing assets 1,393,118 1,191,616
Net interest-bearing debt 4,503,518 5,862,357
66
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
Oil price risk
The majority of the Group’s trading activities is back-to-back trading of bunker products
with delivery on short notice (so called spot trading), where sale and purchases are made
simultaneously. This eliminates the oil price risk as there are no open positions in such
transaction.
The same is the case when the Group enters into fixed price agreements with customers for
delivery of bunker products on future dates. Here the oil price exposure of such contracts
is hedged to mitigate any oil price risk arising. In cases where bunkers are sold on term
contracts at fixed prices and a counter party fails to fulfil its contractual obligations of lifting
product this may lead to uncertainty with regards the net realisable value of the inventory.
To mitigate for this; term commitments are assessed by Group Credit in a M2M credit
framework.
When it comes to physical activities the Group possesses stocks of oil as the bunker products
are bought in larger quantities and stored for blending and resale. The oil price risk arising
from these oil price stocks is mitigated by entering into hedge agreements and only a
small risk is allowed for each company involved in physical activities – this risk is allowed for
operational reasons.
The overall risk limit set in the policy is defined by a maximum net open (unhedged) position
for the Group and for the individual companies involved in physical exposure having a limit
for open oil price risk. The sensitivity of the consolidated net open position is calculated
every day on a 1 day Value at-Risk basis, based on a confidence level of 95% and 500 days of
historical observations. Measured on these terms Value-at-Risk was respectively DKK 6.3
million and DKK 10.4 million for 2023/24 and 2022/23.
The Group is exposed to oil price risk arising from future purchases and sales of bunkers and
from bunker inventories. The Group regularly enters into financial derivatives to hedge this
risk. The risk is measured as the net open position until January 2025.
The Group designates the spot component of oil futures and swaps as the hedging
instrument. The changes in the forward element that relate to the hedged item (‘aligned
forward element’) are deferred in the costs of hedging reserve and recognised against the
related hedged transaction when it occurs. The forward element relates to the respective
hedged item if the critical terms of the forward or swap are aligned with the hedged item.
Any residual time value and forward points (the non-aligned portion) are recognised in the
statement of profit or loss. During the years ending 30 April 2024 and 2023, the company
did not have any hedging instruments with terms which were not aligned with those of the
hedged items.
The spot component of forward contracts is determined with reference to relevant spot
market prices. The differential between the contracted forward rate and the spot market
exchange rate is defined as the forward point.
The effects of applying hedge accounting on the Group's financial position and performance
are as follows:
15 FINANCIAL RISKS CONTINUED
OIL FUTURES AND SWAPS HEDGING FUTURE SALES OF OIL
2023/24 2022/23
Notional amount (MTS) 5,424 64,911
Carrying amount, assets (DKK'000) 6,005 2,946
Carrying amount, liabilities (DKK'000) 3,18 0 15,185
Maturity dates May'24-J u l'25 May'2 3-Ja n'24
Hedge ratio 1:1 1:1
Change in discounted spot value of outstanding
hedging instruments since 1 May (DKK'000) 4,175 (12,2 3 9)
Change in value of hedged item used to determine
hedge effectiveness (DKK'000) 5,442 (12,2 3 9)
Weighted average hedge price per metric tonne
included forward points (USD) 623 577
The carrying amount of DKK 4.2 million (2022/23: DKK (12.2)) has been netted with carrying
amount of the oil futures and swap hedging futures purchased of oil. Net carrying amount is
DKK 7.3 million (2022/23: DKK (12.6) million).
67
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15 FINANCIAL RISKS CONTINUED
OIL FUTURES AND SWAPS HEDGING FUTURE SALES OF OIL CONTINUED
DKK ‘000 2023/24 2022/23
Incurred losses (72,221) (9 4,871)
Movement in expected credit losses 8,14 6 (95,46 5)
Reversal of previous incurred losses 9,2 28 50,093
Loss recognised in the income statement (54,847) (140,243)
During the year, the following movement in provision were recognised in balance in relation
to impaired receivables:
DKK ‘000 2023/24 2022/23
Opening loss allowance 1 May (1 3 5,7 6 0) (125,112)
Movement in provision for impairment 8,14 6 (95,46 5)
Exchange rate adjustment (2,878) 5,508
Carrying amount at 30 April (130,492) (215,069)
Individual receivables which are known to be uncollectible are written off by reducing
the carrying amount directly. The other receivables are assessed collectively to determine
whether there has been a significant increase in the credit risk since their initial recognition.
For these receivables the estimated impairment losses are recognised in a separate provi-
sion for impairment.
Receivables for which an impairment provision was recognised are written off against the
provision when there is no expectation of recovering additional cash.
Impairment losses are recognised in profit or loss within other expenses. Subsequent
recoveries of amounts previously written off are likewise credited within other expenses.
COST OF HEDING RESERVE
DKK ‘000 2023/24 2022/23
Cash flow hedging reserve
Fair value 1 May 6,937 66,124
Fair value changes deferred for the year 22,582 (18,451)
Reclassified to sales (35,8 32) (2 9,76 8)
Reclassified to costs of goods sold 2,052 11,0 03
Exchange rate adjustment 58 (21,971)
Fair Value 30 april (4,20 3) 6,937
Cost of hedging reserve
Fair value 1 May 333 6 7, 4 7 4
Fair value changes deferred for the year 8,7 74 (2 7,9 3 7 )
Reclassified to sales 0 0
Reclassified to costs of goods sold (1 5,7 91) (3 0,677)
Exchange rate adjustment (66) (8,527)
Fair value 30 April (6,75 0) 333
Total of hedging reserve
Fair value 1 May 7, 2 7 1 123,850
Fair value changes deferred for the year 31,355 (4 6,3 87)
Reclassified to sales (35,8 32) (2 9,76 8)
Reclassified to costs of goods sold (13,73 9) (19,674)
Exchange rate adjustment (8) (2 0,7 5 0)
Fair value 30 April (10,9 53) 7,271
68
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
15 FINANCIAL RISKS CONTINUED
Liquidity risk
Funding and adequate liquidity are fundamental factors in
driving an expanding business, and management of both
is an integrated part of the Group's continuous budget and
forecasting process.
To ensure focus on managing the risks related to funding
and liquidity, the Group's Finance department manages and
monitors funding and liquidity for the entire Group and ensures
sufficient cash and bank credit facility reserves to enable the
Group to meet the operating liquidity needs, having an adequate
amount of committed credit facilities and monitoring forecast
and actual cash flow by matching the maturity profiles.
The borrowings are based on loan facilities committed by the
banks for a 4-year period ending April 2028. The financing is
granted as overdraft facilities without an agreed repayment
profile.
The Group’s borrowings are subject to standard clauses, according
to which the Group’s debt must be repaid in case of a change of
control. The credit facilities with banks are furthermore subject
to a few covenants focusing on the Group’s ability to generate
sufficient cash flow and meet its obligations. The covenants have
not been breached in 2023/24, and neither were they breached
in 2022/23.
It is crucial for the Group to maintain a financial reserve to
cover the Group’s obligations and investment opportunities
and to provide the capital necessary to offset changes in the
Group’s liquidity due to changes in the cash flow from operating
activities. At 30 April 2024 the Group had total unutilised credit
facilities of DKK 3,807 million (2022/23: DKK 3,532 million).
Besides the unutilised credit facilities the Group has factoring
lines and inventory financing facilities of DKK 5,233 million.
(2022/23: DKK 1,432 million).
Maturities of liabilities and commitments
The tables to the right detail the Group’s remaining contractual
maturity for its financial liabilities with agreed repayment
periods. The tables have been drawn up based on the
undiscounted cash flows of financial liabilities based on the
earliest date on which the Group can be required to pay.
OIL FUTURES AND SWAPS HEDGING FUTURE PURCHASES OF OIL
2023/24 2022/23
Notional amount (MTS) 183 (8,000)
Carrying amount, assets (DKK'000) 1,107 0
Carrying amount, liabilities (DKK'000) (699) (3 94)
Maturity dates - -
Hedge ratio 1:1 1:1
Change in discounted spot value of outstanding hedging instruments since 1
May (DKK'000) 3,097 (3 9 4)
Change in value of hedged item used to determine hedge effectiveness
(DKK'000) 3,097 (3 9 4)
Weighted average hedge price per metric tonne included forward points (USD) 643 688
The carrying amount of DKK 3.1 million (2022/23: DKK 0.4 million) has been netted with carrying amount of the oil fu-
tures and swap hedging futures sales of oil. Net carrying amount is DKK 7.3 million (2022/23: DKK (12.6) million).
OIL FUTURES AND SWAPS HEDGING INVENTORY
2023/24 2022/23
Notional amount (MTS) (149) (285)
Carrying amount, assets (DKK'000) 508 16,27 7
Carrying amount, liabilities (DKK'000) (2 9,950) (2 5,624)
Maturity dates May'24-No v'24 May'2 3-D e c'23
Hedge ratio 1:1 1:1
Change in discounted spot value of outstanding hedging instruments since 1
May (DKK'000) (2 9,4 42) 22,46 8
Change in value of hedged item used to determine hedge effectiveness
(DKK'000) (2 9,4 42) 22,468
Weighted average hedge price per metric tonne included forward points (USD) 624 511
69
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
15 FINANCIAL RISKS 30 APRIL CONTINUED
Credit risk
The Group is exposed to credit risk relating to its
customers, and all customers and other business
partners are credit rated regularly in accordance
with the Group’s policy for assuming credit risks.
Thorough internal procedures are in place to
minimise the credit risks and the international
conventions for obtaining maritime lien for bunker
deliveries mitigate the negative impact from
defaulting payers. In addition, the Group insures the
credit risk on certain receivables where considered
adequate due to the credit worthiness of the counter
party or the size of the credit exposure.
The Group’s cash at bank and in hand is deposited
with banks that meet the appropriate credit
criteria. In terms of credit rank banks must be at
an acceptable level. Risk Management services are
offered to our customers. These services include
derivatives on fixed price contracts to customers
which have been approved in line with the Group's
credit policy.
The Group has established receivable sale programs
that enable us to sell certain qualifying receivables
to third parties. We have assessed the criteria for risk
transfer and the control of receivables subsequent
to their sale. Based on this assessment, sold
receivables are excluded from trade receivables,
except for any amounts representing our continuing
involvement. One of the programs involves the sale
of receivables to a third-party special purpose vehicle
(SPV) established to acquire receivables from the
Group. An assessment was conducted to determine
whether Bunker Holding controls the SPV, with the
conclusion being that it does not. This conclusion is
based on several factors, including that the Group
only manages the debt collection process until any
potential event of default, after which other parties in
the structure will take over.
The ageing of receivables is as follows:
DKK ‘000
Carrying
amount 0-1 year 1-5 year after 5 years Total
2023/24
Borrowings 4,090,3 2 0 1,7 7 9,4 0 6 2,120,620 3 4 3,612 4,24 3,6 3 8
Lease liabilities 1,806,316 710,573 1,061,982 18 6,395 1,958,950
Payables to related parties 222,537 6,74 3 253,6 32 0 26 0,375
Trade payables 7,5 9 7, 2 8 1 7,5 9 7, 2 8 1 0 0 7,5 9 7, 2 8 1
Other payables 90 9,814 9 0 7,0 5 6 9,988 0 9 1 7, 0 4 4
Derivatives 74 7, 3 9 2 74 7,3 9 2 0 0 7 4 7, 3 9 2
Financial instruments 15,373,660 11,74 8,4 51 3,4 46,222 530,007 15,72 4,6 8 0
2022/23
Borrowings 5,613,801 2,919,205 2,662,274 9 7, 8 5 1 5,679,33 0
Lease liabilities 1,4 4 0,172 58 4,5 40 712,648 188,833 1,486,021
Payables to related parties 72,432 72,432 0 0 72,432
Trade payables 7,0 4 2 , 9 8 1 7, 0 4 2,9 8 1 0 0 7,0 4 2,9 8 1
Other payables 1,008,974 1,005,426 3,548 0 1,0 08,974
Derivatives 483,5 92 4 8 3,592 0 0 4 83,5 92
Financial instruments 15,661,952 12,108,176 3,378,470 286,684 1 5,7 7 3,3 3 0
70
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
15 FINANCIAL RISKS 30 APRIL CONTINUED
During the year, the following gains/(losses) were recognised in profit or loss in relation to
impaired receivables.
DKK ‘000
Trade
receivables
Provision for
impairment
Net trade
receivables
2023/24
Receivables not due 8,921,252 0.5% (46,903) 8,874,34 9
Less than 90 days overdue 1,4 42,928 0.9% (13,474) 1,429,45 4
More than 90 days overdue 268,216 26.1 % (70,115) 198,101
Carrying amount 10,632,396 1.2% (130,492) 10,501,9 0 4
2022/23
Receivables not due 9,573,2 69 0.5 % (45,2 9 9) 9,5 2 7,9 7 0
Less than 90 days overdue 1,169,15 6 0.9 % (11,021) 1,158,135
More than 90 days overdue 3 49,819 3 7.7 % (131,902) 217,917
Carrying amount 11,092,244 1.7 % (188,222) 10,904,022
16 SHARE CAPITAL
At year end the share capital consists of 1 share with a par value of DKK 4.9 million. The
share capital is unchanged relatively to 30 April 2024.
The Board of Directors proposes a dividend to the shareholders of DKK 0 per share – a total
of DKK 0. In 2023/24 an extraordinary dividend of DKK 600 million was paid (2022/23 DKK
560 million).
17 PUTOPTION LIABILITY RELATED TO
NONCONTROLLING INTERESTS
Non-controlling interests
The Group has as part of the acquisition of subsidiaries entered into agreements in
which the sellers continue to hold a non-controlling interest and hold a right to sell these
non-controlling shares to the Group at a future point in time. If the non-controlling interest
continues to be exposed to risks and rewards, a non-controlling interest is recognised and a
put option liability measured at the present value of the expected purchase price under the
option agreement.
As part of the acquisition of FREJA in December 2020, the seller of FREJA and key
Management of FREJA became 25.3% shareholder in the entity holding the combined
logistics services activities. They hold an option to sell their shares to the Group as of 2024,
and the Group holds an option to acquire the shares on similar terms. The transaction price
will be based on a pre-agreed earnings multiple. The carrying amount of the liability is DKK
502 million as of 30 April 2024 (30 April 2023: DKK 346.1 million).
As part of the acquisition of CM Biomass in August 2021, the former majority shareholder
and Key Management of CM Biomass became 40% owners of the holding company
investing in CM Biomass. They hold an option to sell their shares to the Group as of 2025,
and the Group holds an option to acquire the shares on similar terms. The transaction price
will be based on a pre-agreed earnings multiple. The carrying amount of the liability is
DKK 509.2 million as of 30 April 2024 (30 April 2023: DKK 352.9 million).
Changes in the carrying amount of the put option liability are recognised in equity unless
risks and rewards have transferred to the parent.
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GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
18 CONTINGENT ASSETS, LIABILITIES AND ASSETS PLEDGED AS SECURITY 30 APRIL
ASSETS PLEDGED AS SECURITY
DKK ‘000 2023/24 2022/23
Security
As security for long-term debt, letters of indemnity have been provided in ships and equipment 141,317 2 0 5,150
At the balance sheet date, the carrying amount of the assets provided as security was 98 9,16 5 854,888
As security for bank facility, a suretyship has been granted on the Group's ships 58,000 58,000
At the balance sheet date, the carrying amount of the assets provided as security was 94,7 8 6 9 0,4 6 4
Carrying amount of land and buildings provided as security for debt to mortgage credit institutes 103,301 107,875
Contingent liabilities
Deferred tax concerning ship owning company registered under the Tonnage Tax Scheme 2 1,60 0 21,070
Events occurring after the
reporting period
No events have occurred since the
balance sheet date which could materially
affect the Group’s financial position.
Contingent liabilities and
contingent assets
The Group's Danish companies are jointly
and severally liable for the tax on the
Group's jointly taxed income etc. Total
accrued corporation tax appears from
the Annual Report of Selfinvest ApS
which acts as management company
in the jointly taxed group. Moreover, the
Group's Danish enterprises are jointly and
severally liable for Danish withholding
tax. Any subsequent adjustments to the
corporation tax or withholding tax may
result in an increase of the Company's
liability.
Change of control
The bank borrowings are committed and
unsecured (no pledge on assets) and is
subject to change-of-control clause.
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GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
19 OTHER INFORMATION 1 MAY 30 APRIL
Related parties
Related parties are defined as parties with control or significant influence, including Group Companies.
The Company is included in the Consolidated Financial Statements of the immediate Parent Company, Selfinvest ApS.
Controlling interest is exercised through the Company's immediate Parent Company, Selfinvest ApS. The Company's ultimate Parent Company which prepares Consolidated Financial Statements
is SelfGenerations T ApS, in which Torben Østergaard-Nielsen, CEO, exercises control. Other related parties comprise the Board of Directors and the Executive Board.
Transactions with related parties
The following transactions occurred with related parties.
DKK ‘000 Key Management Parent company
Associated
companies
2023/24
Income statement
Revenue 0 2,425 4 7,2 8 8
Operation costs (9,815) 0 (14,386)
Other external expenses 0 (26,013) (5,955)
Financial, net 0 376 223
Assets
Trade receivables 0 452 7,2 2 3
Derivatives 0 0 46,804
Liabilities
Trade payables 0 0 0
Deposits 0 2 26,034 0
Dividend paid 0 (600,000) 0
DKK ‘000 Key Management Parent company
Associated
companies
2022/23
Income statement
Revenue 0 2,0 8 9 0
Operation costs (41,1 2 9) 0 0
Other external expenses 0 (4 4,09 0) (13,163)
Financial, net 0 56 0
Assets
Trade receivables 0 280 14,524
Deposits 0 0 0
Liabilities
Trade payables 0 0 2,6 32
Deposits 0 46,0 43 0
Dividend paid 0 (560,000) 0
There have been no transactions with key management personnel in 2023/24 and 2022/23
other than ordinary remunerations, as described in this note and the financial statements for
the Parent Company.
74
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20 CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES 30 APRIL
DKK ‘000 Borrowings Lease liabilities Total
2023/24
Net debt as at 1 May 2023 5,613,801 1,44 0,173 7, 0 5 3, 9 7 4
Proceeds 4 1 7,1 5 9 0 4 1 7,1 5 9
Repayment (37 1,39 4) (68 9,524) (1,060,918)
Changes in borrowings (1,6 80,420) 0 (1,6 80,420)
Cash flows (1,6 3 4,655) (6 8 9,524) (2,324,179)
New leases 0 1,075,95 8 1,075,958
Foreign exchange adjustment 8 4,7 0 1 15,9 82 100,683
Other 26,474 (36,273) (9,7 9 9)
Non-cash flows 111,175 1,055,667 1,166,842
Net debt as at 30 April 2024 4,090,321 1,806,316 5,896,6 37
2022/23
Net debt as at 1 May 2022 5,7 0 4,1 1 3 1,0 8 9,2 94 6,79 3,4 07
Proceeds 632,632 0 632,632
Repayment (6 31,1 24) (492,0 0 2) (1,1 23,126)
Changes in borrowings 74,1 3 8 0 74,138
Cash flows 75,6 4 6 (492,0 0 2) (416,356)
New leases 0 86 8,360 8 6 8,360
Foreign exchange adjustment (172,078) 6,261 (165,817)
Other 6,120 (3 1,74 0) (25,620)
Non-cash flows (165,958) 842,881 676,923
Net debt as at 30 April 2023 5,613,801 1,440,173 7,0 5 3 ,9 7 4
75
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
In preparing the consolidated financial statements, Manage-
ment makes various significant accounting estimates and
judgements that affect the reported amounts and disclosures
in the statements and in the notes to the financial state-
ments.
These estimates are based on professional judgement,
historical data and other factors that management considers
appropriate under the given circumstances, but which are
inherently uncertain or unpredictable. Such assumptions
may be incomplete or inaccurate, and unexpected events or
circumstances may occur. In addition, the Group is subject to
risks and uncertainties that may cause actual outcomes to de-
viate from these estimates. Risk factors specific to the Group
are described in the management commentary. Though by
their nature, estimates include a degree of uncertainty, and
actual results may therefore deviate from the estimates at the
reporting date. Estimates are continuously evaluated, and the
effects of any changes are recognised in the relevant period.
Management regards the following as the key accounting
estimates and judgements used in the preparation of the
consolidated financial statements:
Purchasing Price Allocation for acquisition of businesses
For acquisitions of entities, the assets, liabilities and contin-
gent liabilities of the acquiree are recognised using the acqui-
sition method. The most significant assets acquired generally
comprise goodwill, customer contracts, trademarks, other
non-current assets and receivables.
No active market exists for the majority of the acquired assets
and liabilities, in particular in respect of acquired intangible
assets. Accordingly, management makes estimates of the fair
value of acquired assets, liabilities and contingent liabilities.
Depending on the nature of the item, the determined fair
value of an item may be associated with uncertainty and
possibly adjusted subsequently.
Goodwill
The unallocated purchase price (positive amount) is recog-
nised in the statement of financial position as goodwill, which
is allocated to the Group’s cash-generating units. Manage-
ment determines the acquired cash-generating units, the
cash-generating units that already existed in the Group and
the allocation of goodwill. The allocation of goodwill is based
on the expected future cash flows for the business.
Management’s assessment of indication of impairment is
based on the cash-generating units (CGUs). If there are indi-
cations that the carrying amount of assets exceeds the value
of future cash flows from the assets (recoverable amount), an
impairment test must be carried out.
The impairment test is carried out within the Group's CGUs.
The impairment test is done by estimating the recoverable
amount at value in use calculated as the present value of the
total expected cash flows within the CGU. If the value in use
is lower than the carrying amounts of the assets in the CGU,
the assets are written down by first reducing the value of any
goodwill allocated to the CGU and then pro rata reducing the
value of the other assets of the CGU on the basis of the carry-
ing amount of each asset. The assets are not written down to
a lower amount than the individual assets net selling price.
The present value of expected future cash flows (value in use)
is based on budgets and business plans. Key parameters are
annual growth rate in the first five years, EBIT-margin and
growth expectations beyond the next five years.
As the risk associated with cash flows is not included in the
expected cash flows for newly acquired entities, the expected
future cash flows are discounted using a WACC rate, cf the
description below. Management believes that the purchase
price accounted for in the consolidated financial statements
reflects the best estimate of the total fair value of the busi-
ness .
Determining whether goodwill is impaired requires a com-
parison of the recoverable amount with the carrying amount.
The recoverable amount is determined as the net present
value of the future cash flows expected to arise from the
cash-generating unit to which goodwill is allocated. The
carrying amount of goodwill as of 30 April 2024 amounts to
DKK 1,636 million, and the assumptions applied for deter-
mining the recoverable amount is disclosed in note 6.
Customer agreements and portfolios
In business combinations, the value of acquired customer
agreements and customer portfolios is assessed based on
the value of repeat customers who buy our products. The
current repeat customers have substantial value due to future
revenue via additional purchases of products with a minimum
sales effort as a result of established relationships. These rela-
tionships are defined as customer relationships. The valuation
method applied is based on a capitalised value of future cash
flows attributable to the customers based upon expected
future mortality dispersion function and deducted with cost
of goods sold, related expenses, and corporate income taxes.
Brands
Acquired brands are initially recognised at their fair value
being the estimated value of the acquired brands based on all
future cash flows associated with the brands using the relief
from royalty method as there for most acquired entities is a
close relationship between brands and sales. Brands with an
indefinite useful lives are subject to a yearly impairment test.
The classification of the useful life is based on an assessment
of the brand's name, overall position, presence and reputa-
tion in the market, its degree of exposure to changes in the
economic environment and stability of the industry. Based on
these criteria's management have assessed that the current
brands all have an indefinite useful life. The useful life of as-
sets with an indefinite life is assessed yearly.
Trade receivables
Trade receivables are measured at amortised cost less write-
down for estimated bad debt losses. Impairment losses are
based on an individual review of the need for impairment
based on customers’ creditworthiness and expected ability to
pay, customer insolvency or anticipated insolvency, and past
due amounts. Write downs are also considered on a portfolio
level. In assessing the adequacy of write-downs for bad
debt losses, Management specifically analyses receivables,
including doubtful debts, concentrations of credit risk,
credit ratings, current economic conditions, and changes in
customers’ payment behaviour.
The specific amount provided for as bad debt is estimated
based on a specific assessment of the customers. In this as-
sessment professional judgment such a possibility for taking
collateral is taken into consideration.
Fair value
The Group measures a number of financial instruments at fair
value, including all derivatives as well as shares and bonds.
Estimates are made in connection with the determination of
the fair value of financial instruments in the following areas:
Assessment of which market parameters
must be observed
Estimating of future cash flows and required rates of return
as regards unlisted shares. Furthermore, the Group holds a
portfolio of investments properties which are also measured
at fair value. As there are normally no active market for
investment properties, the fair values are estimated based
on discounted cash flow models. These models are based
21 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS 1 MAY 30 APRIL
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GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
on assumption on future rents, vacancy levels,
operating and maintenance costs, yield requirements
and interest rates, and thus contain a number of
accounting estimates.
Leases
In accounting for lease contracts, various judgements
are applied in determining right-of-use assets and
lease liabilities.
The Group determines the lease term as the non-
cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonable certain not to be exercised.
The Group has several lease contracts that include
extension and termination options. The Group applies
judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to
renew or terminate the lease. That is, it considers all
relevant factors that create an economic incentive for
it to exercise either the renewal or termination. After
the commencement date, the Group reassesses the
lease term if there is a significant event or change in
circumstances that is within its control and affects
its ability to exercise or not to exercise the option to
renew or terminate.
22 SIGNIFICANT ACCOUNTING POLICIES 1 MAY 30 APRIL
Basis of preparation
The Consolidated financial statements for 2023/24 for A/S
United Shipping & Trading Company (USTC) have been
prepared in accordance with the International Financial
Reporting Standards (IFRS) as adopted by the EU and further
requirements in the Danish Financial Statements Act. The
Consolidated financial statements are also in accordance with
IFRS as issued by the International Accounting Standards Board
(IASB).
The Board of Directors and the Executive Board have on
24 June 2024 considered and adopted the annual report
for 2023/24, which will be presented for adoption by the
shareholders at the Company’s Annual General Meeting on
12 July 2024.
Basis of measurement
Amounts in the Annual Report are presented in thousands
Danish Kroner (DKK), unless otherwise stated. The Annual
Report has been prepared under the historical cost convention
with the exception of derivative financial instruments, securi-
ties, investment properties and acquisition opening balances,
which are measured at fair value.
The accounting policies described in the notes have been
applied consistently to the financial year and the comparative
figures.
Consolidation
The consolidated financial statements include the parent
company USTC and subsidiaries controlled by USTC.
Subsidiaries are all entities over which the Group has control.
The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its
control over the entity.
Subsidiaries are fully consolidated from the date of which con-
trol is transferred to the Group. They are deconsolidated from
the date that control ceases.
The consolidated financial statements are prepared by
consolidating items of a uniform nature. In the consolidation,
intercompany income and costs, balances, dividends and
intercompany gains and losses are eliminated. The financial
statements used for the consolidation are prepared in
accordance with the Group's accounting policies.
Foreign currency translation
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the prima-
ry economic environment in which the entity operates (‘the
functional currency’). The consolidated financial statements are
presented in DKK, which is the Group’s presentation currency
and the functional currency of the parent company.
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of
the transactions or valuation where items are re-measured.
Foreign exchange gains and losses resulting from the settle-
ment of such transactions and from the translation at year-end
exchange rates of monetary assets and liabilities denominated
in foreign currencies are recognised in financial items.
The results and financial position of all of the Group entities that
have a functional currency different from the presentation cur-
rency are translated into the presentation currency. Assets and
liabilities for each balance sheet presented are translated at the
closing rate at the date of that balance sheet; income and costs
for each income statement are translated at average exchange
rates. All resulting exchange differences are recognised in other
comprehensive income.
Materiality in Financial Reporting
In preparing the Annual Report, Management seeks to
improve the information value of the consolidated financial
statements, notes to the statements and other measures
disclosed by presenting the information in a way that supports
the understanding of the Group’s performance in the reporting
period.
This objective is achieved by presenting fair transactional ag-
gregation levels on line items and other financial information,
emphasising information that is considered of material im-
portance to the user and making relevant rather than generic
descriptions throughout the Annual Report. All disclosures are
made in compliance with the International Financial Reporting
Standards, Danish Financial Statements Act and other relevant
regulations, ensuring a true and fair view throughout the finan-
cial statements.
77
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
INCOME STATEMENT
Revenue – General principles
Revenue from contracts with customers is recognised
when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to
which the Group expects to be entitled in exchange for those
goods or services. Revenue includes fair value gains and losses
net related to commodity derivatives.
Trade receivables are recognised as sale of goods and service
delivered are invoiced to the customer and are not adjusted for
any financing components, due to short credit terms and thus
insignificant. Where services delivered have yet to be invoiced,
contract assets and accrued cost of services are recognised at
the reporting date.
Revenue from sale and meditation of bunker
Revenue from sale and meditation of bunker comprise sales
of fuel products across the globe. Sale of bunker is recognised
upon passing of title to the customer which generally coin-
cides with delivery and acceptance of the goods sold.
Revenue from sale of logistics services
Logistics services comprise freight logistics facilitating trans-
portation of goods by road and other forms of transportation.
Logistics services are characterised by short delivery times as
most transports are completed within days. Revenue is recog-
nised are recognised over time.
Revenue from Ship owning
Revenue from ship owning comprises chartering of tank ships.
Revenue is recognised when or as performance obligations are
satisfied by transferring services to the customer, i.e. over time,
provided the state of completion can be measured reliable.
Revenue from IT services
Revenue from IT services comprises sale of hosting and
operations solutions and consulting services. Revenue of
hosting and operations services are recognised in the period
the services are provided which will either be based on an
output measure or using the straight-line method. Consulting
services are recognised as hours delivered or in accordance
with the stage of completion method.
Revenue from Sustainable energy
Revenue from sustainable energy comprises of trading of
various types of sustainable energy products. Revenue from
sustainable energy is recognised when the risk and rewards
relating to the goods sold have been transferred to the pur-
chaser, the revenue can be measured reliably and it is probable
that the economic benefits relating to the sale will flow to the
Group.
Risk management
Revenue from risk management comprises hedging of clients’
energy price exposure and associated liquidity risk by giving
access to bilateral trading and margin funding in relevant
derivative instruments.
Direct expenses
Direct expenses include expenses for the purchase of goods
for resale, are expensed as incurred.
Other external expenses
Other external expenses include expenses for sales,
administration as well as the running of office facilities, etc.,
and are expensed as incurred.
Staff expenses
Staff expenses comprise wages and salaries as well as payroll
expenses. Staff expenses are recognised in the financial year in
which the employee renders the related service.
Share of profit/loss in associated companies
Share of profit or loss in associated companies is recognised
net of tax and corrected for the share of unrealised intra-group
gains and losses.
Other operating income
Grants from government are recognised at their fair value
where there is a reasonable assurance that the grant will be
received and the Group will comply with all attached condi-
tions. Government grants relating to costs are deferred and
recognised in profit or loss over the period necessary to match
them with the costs that they are intended to compensate.
Financial income and expenses
Financial income and expenses comprise interest, financial
expenses in respect of finance leases, realised and unrealised
exchange adjustments, fair value adjustment of securities,
amortisation of mortgage loans as well as extra payments and
repayment under the on-account taxation scheme.
Tax on profit/loss for the year
Tax comprises an estimate of current and deferred income tax
as well as adjustments to previous years of those. The tax at-
tributable to the profit for the year is recognised in the income
statement, whereas the tax attributable to equity transactions
is recognised directly in equity. Any changes in deferred tax
due to changes to tax rates are recognised in the income
statement.
The Group is subject to a jointly taxation with Danish group
enterprises. The tax effect of the joint taxation is allocated to
enterprises showing profits or losses in proportion to their
taxable incomes (full allocation with credit for tax losses).
Statement of comprehensive income
Other comprehensive income consists of income and costs
not recognised in the income statement, including exchange
rate adjustments arising from the translation from functional
currency to presentation currency, fair value adjustments of
other equity investments and cash flow hedges. The Group's
share of other comprehensive income in associated compa-
nies is also included.
Other comprehensive income includes current and deferred
income tax to the extent the items recognised in other com-
prehensive income are taxable or deductible.
SIGNIFICANT ACCOUNTING POLICIES CONTINUED
78
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
BALANCE SHEET
Intangible assets
Intangible assets are measured at cost less accumulated am-
ortisation and impairment losses. Amortisation is calculated
on a straight-line basis over the estimated useful lives of the
assets:
Acquired rights ................... up to 20 years
Customer relations .................. up to 8 years
Software ........................ up to 5 years
Completed development projects ........ up to 3 years
Technologies and knowhow ............up to 10 years
Brands . . . . . . . . . . . . . . . . . . . . . . . . . . . . indefinite
Property, plant and equipment
Property, plant and equipment are measured at cost less
accumulated depreciation and impairment losses. Cost com-
prises the cost of acquisition and expenses directly related to
the acquisition up until the time when the asset is ready for use.
Land is measured at cost. No depreciation is made on land.
Interest paid on loans raised for indirect or direct financing or
production of property, plant and equipment is recognised in
the income statement.
Depreciation based on cost reduced by any residual value is
calculated on a straight-line basis over the expected useful
lives of the assets:
Buildings ......................... 20-50 years
Ships and equipment (newbuilding) . . . . . . . . . . 25 years
Ships and equipment (not newbuilding) . . . . . . . . 25 years
Fixtures and fittings, tools and equipment ..... 3-10 years
Leasehold improvements ................ 5-15 years
Plant and Machinery ................... 5-10 years
Estimated useful lives and residual values are reassessed on a
regular basis. Scrap values are assessed yearly.
Gains and losses on sale of property, plant and equipment are
recognised in the income statement under Other operating
income and Other external expenses, respectively.
Leases
Leases
The Group assesses at contract inception whether a contract
is, or contain, a lease. This is, if the contract conveys the right
to control the use of an identified assets for a period of time in
exchange for consideration.
The Group applies a single recognition and measurement ap-
proach for all leases, except for short-term leases and leases
of low-value assets. The Group recognises lease liabilities to
make lease payments and right-of-use assets representing
the right to use the underlying asset.
Right-of-use assets
The Group recognises right-of-use assets at the commence-
ment date for the leases. Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less
lease incentives received. Right-of-use assets are depreciated
over the shorter of the asset's useful life and lease term on a
straight-line basis.
Lease liabilities
At the commencement date of the lease, the Group
recognises lease liabilities measured at the present value for
lease payments to be made over the lease term. The lease
payments include fixed payments less any lease incentives
receivable, variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual
value guaranties. The lease payment also include the exercise
price of a purchase option reasonably certain to be exercised
by the Group and payments of penalties for terminating
the lease, if the lease term reflects the Group exercising the
option to terminate. Variable lease payments that to not
depend on an index or a rate are recognised as expenses in
the period in which the event or condition that triggers the
payment occurs.
In calculating the present value of lease payments, the Group
uses its incremental borrowing rate at the lease commence-
ment date because the implied interest of the lease is not
readily determinable. After the commencement date, the
amount of lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments made. Addi-
tionally, the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term, a change
in the lease payments, or a change in the assessment of an
option to purchase the underlying asset.
Short term leases and low-value assets
The Group applies the short-term recognition exemption to
its short-term leases insofar the leases have a lease term of
12 months or less from the commencement date and do not
contain a purchase option. Furthermore, the Group applies
the lease of low-value assets recognition exemption to lessees
that are considered to be of low value. Lease payments on
short-term and low assets are recognised as expenses on a
straight-line basis over the lease term.
Lessor
When the Group acts as lessor, it determines at lease incep-
tion whether each lease is a finance lease or an operating
lease.
In order to classify each lease, the Group makes an overall
assessment of whether the lease transferees transfer sub-
stantially all the risks and rewards incidental to ownership of
an assets. If this is the case, the lease is classified as finance
lease; if not the lease is classified as operating leases.
Operating leases
Rental income arising is accounted for on a straight-line
basis over the lease terms and is included in revenue in the
statement of profit and loss due to its operating nature. Initial
direct costs incurred is negotiating and arranging an oper-
ating lease are added to the carrying amount of the leased
asset and recognised over the lease term on the same basis
as rental income.
Contingent rents are recognised as revenue in the period in
which they are earned.
Financial leases
Amounts due from lessees under finance leases are
recognised as receivables at the amount of the Group's net
investment in the lease. Financial lease income is allocated to
accounting periods so as to reflect a constant periodic rate of
return on the Group's net investment outstanding in respect
of the lease, and under due consideration of the amount
recognised in income as an outright sale as described above
in the section "Revenue from sport cars activities".
SIGNIFICANT ACCOUNTING POLICIES CONTINUED
79
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
The Group applies the derecognition and impairment
requirements in IFRS 9 to the net investment in the leases.
The Group further regularly reviews estimated unguaranteed
residual values used in calculating the gross investment in
the lease.
Impairment of intangible and tangible assets
The carrying amounts of intangible assets and property, plant
and equipment are reviewed on an annual basis to determine
whether there is any indication of impairment other than that
expressed by amortisation and depreciation.
Impairment losses are recognised when the carrying amount
of an asset or a cash-generating unit exceeds the higher of
the estimated value in use and fair value less costs of disposal.
Goodwill is attributed to cash-generating units on acquisition
and impaired before other assets.
Intangible assets and property, plant and equipment are
tested for impairment, if there is an indication of impairment.
However, annual impairment tests are carried out for goodwill
and other intangible assets with indefinite useful lives.
Investments in associates
Investments in associated companies and joint ventures are
recognised at USTC's share of the equity value inclusive of
goodwill less any impairment losses. Goodwill is an integral
part of the value of associated companies and is therefore
subject to an impairment test together with the investment
as a whole. Impairment losses are reversed to the extent the
original value is considered recoverable.
Inventories
Inventories are measured at the lower of cost under the FIFO
method and net realisable value. The net realisable value
of inventories is calculated at the amount expected to be
generated by sale in the process of normal operations with
deduction of selling expenses and costs of completion.
The net realisable value is determined allowing for marketa-
bility, obsolescence and development in expected sales sum.
The cost price of inventories whose fair value is effectively
hedged from derivative financial instruments is adjusted for
the change in fair value attributable to the hedged risk.
Financial instruments
A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.
Financial assets are classified at initial recognition, as subse-
quently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit
or loss. The classification depends on the Group's business
model for managing the financial assets and the contractual
terms of the cash flows.
Regular way purchases and sales of financial assets are
recognised on trade date, being the date on which the Group
commits to purchase or sell the asset. Financial assets are
derecognised when the rights to receive cash flows from the
financial assets have expired or have been transferred and the
Group has transferred substantially all the risks and rewards
of ownership.
At initial recognition, the Group measures financial assets
at their fair value plus transaction costs that are directly
attributable to the acquisition of the financial asset.
Transactions costs of financial assets carried at fair value
through profit or loss are expensed in profit or loss.
Debt instruments
Subsequent measurement of debt instruments depends on
the Group's business model for managing the asset and the
cash flow characteristics of the asset.
Assets that are held for collection of contractual cash flows,
where those cash flows represent solely payments of princi-
ple and interest, are measured at amortised costs. Interest
income from these financial assets is included in financial
income using the effective interest rate method. Any gain or
loss arising on derecognition is recognised directly in profit
or loss.
Assets that are held for collection of contractual cash flows
and for selling the financial assets, where those cash flows
represent solely payments of principle and interest, are
measured at fair value through other comprehensive income.
Movements in the carrying amount are taken through OCI,
except for the recognition of impairment gains or losses,
interest income and foreign exchange gains and losses which
are recognised in profit or loss.
Assets that do not meet the criteria for amortised cost or fair
value through other comprehensive income are measured at
fair value through profit or loss.
Equity instruments
The Group subsequently measures all equity instruments at
fair value through profit or loss.
Receivables
Receivables are recognised initially at the amount of con-
sideration that is unconditional less expected credit losses.
They are subesquently measured at amortised cost using the
effective interest method, which generally corresponds to
nominal values less expected credit loss provision.
The Group utilises a simplified approach to measuring
expected credit losses and uses a lifetime expected loss
allowance for all receivables. To measure the expected credit
losses, receivables have been grouped based on credit risk
characteristics and the days past due.
The carrying amounts of trade receivables include receivables
subject to sale of receivable arrangements. Under these
arrangements, the Group has transferred the relevant
receivables to buyers in exchange for cash and is prevented
from selling or pledging the receivables. Through these
transactions, the Group has transferred the majority of the
late payment and credit risk associated with the receivables.
The Group derecognises the majority of the transferred
receivables from its statement of financial position. However,
the Group continues to recognise a portion of the transferred
receivables where it retains a minority share of the late
payment and credit risk.
Derivatives
Derivative financial instruments are initially recognised in
the balance sheet at fair value. Any difference between the
transaction price and fair value determined when applying
a valuation model, which is not solely based on observable
market data is deferred and recognised over the term of the
contract.
Derivative financial instruments are subsequently
remeasured at their fair values. Derivative financial assets
and liabilities and related collateral payable and receivable
are presented net if the company has both a current legally
enforceable right to set off the recognised amounts and
intends to settle net. Net amounts of positive and negative
fair values of derivative financial instruments are presented in
separate line items in the balance sheet.
SIGNIFICANT ACCOUNTING POLICIES CONTINUED
80
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
Fair value of OTC (oil derivative contracts) are determined
on the basis of generally applied forward and option pricing
models. Inputs to the models are to the extent possible de-
termined on the basis of observable prices for the underlying
products. For contracts, where the most significant input is
unobservable, Management estimates the input.
Changes in the fair values of derivative financial instruments
are recognised in the income statement unless the deriva-
tive financial instrument is designated and qualify as hedge
acccounting.
Borrowings
Borrowings are initially recognised at fair value, net of trans-
actions costs incurred. Borrowings are subsequently meas-
ured at amortised cost. Any difference between the proceeds
(net of transaction costs) and the redemption amount is
recognised in profit or loss over the period of the borrowings
using the effective interest method.
Fees paid on the establishment of loan facilities are recog-
nised as transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn down.
In this case, the fee is deferred until the draw-down occurs. To
the extent there is no evidence that it is probable that some
or all of the facility will be drawn down, the fee is capitalised
as a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
Other debts are measured at amortised cost, substantially
corresponding to nominal value.
Hedge accounting
Changes in the fair values of financial instruments that are
designated and qualify as fair value hedges of a recognised
asset or a recognised liability are recognised in the income
statement, as are any changes in the fair value of the hedged
asset or the hedged liability related to the hedged risk.
Changes in the fair values of financial instruments that are
designated and qualify as hedges of highly probable future
transactions are recognised in other comprehensive income
and presented in a separate reserve within equity as regards
the effective portion of the hedge.
The ineffective portion is recognised in the income state-
ment. If the hedged transaction results in an asset or a
liability, the amount deferred in equity is transferred from
equity and recognised in the cost of the asset or the liability,
respectively. If the hedged transaction results in an income or
an expense, the amount deferred in equity is transferred from
equity to the income statement in the period in which the
hedged transaction is recognised. The amount is recognised
in the same item as the hedged transaction.
Changes in the fair values of financial instruments that are
designated and qualify as hedges of net investments in
independent foreign subsidiaries or associates are recog-
nised directly in equity as regards the effective portion of the
hedge, whereas the ineffective.
Deferred tax assets and liabilities
Deferred tax is recognised in respect of all temporary dif-
ferences between the carrying amount and the tax base of
assets and liabilities. However, deferred tax is not recognised
in respect of temporary differences concerning goodwill not
deductible for tax purposes.
Deferred tax is measured on the basis of the tax rules and tax
rates that will be effective under the legislation at the balance
sheet date when the deferred tax is expected to crystallise as
current tax. In cases where the computation of the tax base
may be made according to alternative tax rules, deferred tax
is measured on the basis of the intended use of the asset and
settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss carry-
forwards, are measured at the value at which the asset is
expected to be realised, either by elimination in tax on future
earnings or by set-off against deferred tax liabilities.
Deferred tax assets and liabilities are offset within the same
legal tax entity.
Current tax receivables and liabilities
Current tax receivables and liabilities are recognised in the
balance sheet at the amount calculated on the basis of the
expected taxable income for the year and adjusted for tax on
taxable incomes for prior years.
Tax receivables and liabilities are offset if there is a legally
enforceable right of set-off and an intention to settle on a net
basis or simultaneously.
Own shares
Purchase and sales prices of own shares are recognised
directly in equity. Capital reduction upon cancellation of own
shares will reduce the share capital by an amount corre-
sponding to the nominal amount of the shares and will
increase retained earnings. Dividend on own shares is recog-
nised directly in equity under “Retained earnings”.
Dividend
Dividend distribution proposed by Management for the year
is disclosed as a separate item in equity.
Provisions
Provisions for legal claims, service warranties and make good
obligations are recognised when the Group has a present
legal or constructive obligation as a result of past event, it is
probable that an outflow of resources will be required to set-
tle the obligation, and the amount can be realiably estimated.
Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likeli-
hood that an outflow will be required in settlement is deter-
mined by considering the class of obligations as a whole. A
provision is recognised when if the likelihood of an outflow
with respect to any one item included in the same class of
obligations may be small.
Provisions are measured at the present value of manage-
ment's best estimate of the expenditure required to settle
the present obligation at the end of the reporting period.
The discount rate used to determine the present value is a
pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability.
The increase in the provision due to the passage of time is
recognised as interest expense.
Business combinations
Upon acquisition of new entities, the acquired assets,
liabilities and contingent liabilities are measured at fair
value at the date control was achieved using the acquisition
method. Identifiable intangible assets are recognised if they
arise from a contractual right or can otherwise be separately
identified. The difference between the fair value of the
acquisition cost and the fair value of acquired identifiable
net assets is recognised as goodwill.
Any subsequent changes to contingent acquisition costs
are recognised as other income or other costs in the income
statement.
Minority interests
Non-controlling interests’ share of profit/loss for the year and
of equity in subsidiaries is included as part of the Group's
profit and equity respectively, but shown as separate items.
SIGNIFICANT ACCOUNTING POLICIES CONTINUED
81
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
The Group recognises non-controlling interests in an
acquired entity either at fair value or at the noncontrolling
interest’s proportionate share of the acquired entity’s net
identifiable assets. This decision is made on an acquisi-
tion-by-acquisition basis.
The Group treats transactions with non-controlling interests
that do not result in a loss of control as transactions with
equity owners of the group. A change in ownership interest
results in an adjustment between the carrying amounts of
the controlling and non-controlling interests to reflect their
relative interests in the subsidiary. Any difference between
the amount of the adjustment to non-controlling interests
and any consideration paid or received is recognised in a
separate reserve within equity attributable to owners.
Put options held by non-controlling interests are recognised
as financial liabilities at the present value of the expected
exercise price. The non-controlling interest continues to be
recognised unless risks and rewards have been transferred to
the parent company. Changes in the carrying amount of the
put option liability are recognised in equity unless risks and
rewards have transferred to the parent.
Cash flow statement
Cash flow from operating activities is presented according to
the indirect method based on EBIT, adjusted for depreciation,
non-cash operating movements, net interests, changes in
working capital and income taxes paid.
Cash flows from investing activities comprise cash flows from
acquisitions and disposals of intangible assets, property, plant
and equipment as well as fixed asset investments.
Cash flows from financing activities comprise cash flows
from the raising and repayment of long-term debt as well as
payments to and from shareholders.
Cash and cash equivalents
Cash and cash equivalents comprise the cash at bank and in
hand and short term money market funds with insignificant
risk of value changes.
The cash flow statement cannot be immediately derived
from the published financial records.
New legislation
New and amended IFRS standards
The following amendments to IFRS which are relevant for the
Group became effective as of 1 May 2023:
• Amendment to IAS 1 "Presentation of Financial Statements
and IFRS Practice Statement 2: Disclosure of Accounting
Policies”
• Amendment to IAS 8 "Accounting Policies, Changes in
Accounting Estimates and Errors: Definition of Accounting
Estimates”
• Amendments to IAS 12 "Income Taxes: Deferred Tax related
to Assets and Liabilities arising from a Single Transaction”.
Amendments to IAS 12 Income taxes: International Tax
Reform – Pillar Two Model Rules
The implemented amendments have not had any impact on
the Group’s accounting policies as they cover areas that are
not material for the Group or do not change the accounting
policies applied in previous years. The amendments have
affected the disclosures provided in the financial statements.
The following new standards and amendments to existing
IFRS will become effective in future years.
Adopted by EU and effective for 2024/25
• Amendments to IAS 1 "Presentation Financial Statements:
Classification of Liabilities as Current or Non-current TE -
Deferral of Effective Date and Non-current Liabilities with
Covenants”
• Amendment to IFRS 16 "Leases: Lease Liability in a Sale and
Leaseback"
Amendments to IAS 7 Statement of Cash Flows and IFRS 7
Financial Instruments: Disclosures: Supplier Finance Arrange-
ments
Not yet adopted by EU
• Amendments to IAS 21 The Effects of Changes in Foreign
Exchange Rates: Lack of Exchangeability (effective 1 May
2025)
• IFRS 18 Presentation and Disclosure in Financial Statements
(Effective 1 May 2027)
The Group expects to adopt the amendments when they
become mandatory. Management has not yet assessed the
potential effect of IFRS 18. The other amendments are not
expected to have any significant impact on the financial
statements.
Gross margin
Gross profit x 100
Revenue
Profit margin
Profit before financials x 100
Revenue
Return on equity
Net profit for the year x 100
Average equity
Liquidity ratio
Current assets
Short-term debt
Solvency ratio
Equity at year end x 100
Total assets
Number of
employees
Employees and rented crew
on vessels reported as annual-
ised numbers
DEFINITION OF FINANCIAL RATIOS
SIGNIFICANT ACCOUNTING POLICIES CONTINUED
82
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
23 BUSINESS COMBINATIONS 1 MAY 30 APRIL
DKK mill Country
Acquired
ownership Acquisition date Main activity Consideration
2023/24
ApS KBUS 18
nr. 623 Denmark 100% February 2024 IT Services 288,816
By 28 February 2024, the Group (through Unit IT) gained control of ApS KBUS 18 nr. 623 (Global Connect Outsourcing Servic-
es) by acquiring all the shares in the company.
The Group incurred transaction costs associated with the acquisition of approximately DKK 7,000k related to legal
advisors, which were recognized in other external expenses in the income statement for the group for the fiscal year
2023/24.
Assets acquired and liabilities recognised at the date of acquisition:
DKK mill Other
Non-current assets
Intangible assets (customer relationships) 34,282
Property, plant and equipment 51,050
Deferred tax assets 43,058
Current assets 31,979
Liabilities (38,936)
Total allocation to net assets 121,433
Goodwill arising on acquisition 1 6 7, 3 8 3
Total purchase price 288,816
Of which acquired cash and cash equivalents 0
Total purchase price 288,816
The acquired business contributed to the group with:
DKK mill February 2024
Since date of acquisition
Revenue 29,306
Net Profit 3,659
If acquired 1 of May
Revenue 175,8 3 6
Net Profit 21,95 4
83
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
DKK ‘000 Note 2023/24 2022/23
Revenue 24 32,388 32,351
Other external expenses (2 9,237) (20,571)
Gross profit 3,151 1 1,7 80
Staff expenses 25 (3 8,5 6 2) (74,916)
Depreciation, amortisation and impairment losses (895) (595)
Other operating expenses 26 (100,000) 0
Profit before financial income and expenses (136,306) (6 3,731)
Profit from investments in group enterprises and associates 515,761 2,152,3 95
Financial income 27 2 3,689 8,802
Financial expenses 28 (6 25,14 9) ( 7, 0 2 0)
Profit before tax (222,0 05) 2,090,446
Tax on profit for the year 29 6,925 13,425
Net profit for the year (215,080) 2,10 3,871
Proposed distribution of profits
Extraordinary dividend 600,000 560,000
Reserve for net revaluation under the equity method (4 8 0,556) 1,55 4,310
Retained earnings (3 3 4,524) (10,4 39)
(215,080) 2,103,871
INCOME STATEMENT
1 MAY 30 APRIL
85
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DKK ‘000 Note 2024 2023
Software 41 122
Intangible assets 30 41 122
Fixtures and fittings, tools and
equipment 6,198 401
Leasehold improvements 1,609 1,4 0 6
Property, plant and equipment 31 7,8 0 7 1,807
Investments in subsidiaries 5,835,146 5,838,332
Fixed asset investments 32 5,835,146 5,838,3 32
Fixed assets 5,842,994 5,840,261
Receivables from group enterprises 3,000 5,315
Other receivables 1 3 9,874 1,097
Corporation tax 7, 2 6 5 13,51 2
Prepayments 2,978 2,0 01
Receivables 153,117 21,925
Securities 33 48 41
Cash at bank and in hand 2,313 773
Current assets 155,478 22,7 39
Assets 5,998,472 5,863,000
DKK ‘000 Note 2024 2023
Share capital 16 4,900 4,90 0
Reserve for net revaluation under the equity
method 3,252,959 3,672,56 0
Retained earnings 1,278,6 4 6 1,613,170
Total equity 4,5 36,505 5,290,630
Provision for deferred tax 34 576 301
Provisions 576 301
Credit institutions 91,942 1 2 2,79 1
Payable to group enterprises 502,000 346,100
Long-term debt 593,942 468,891
Short-term part of long-term debt 31,4 0 0 46,399
Trade payables 1,891 1,914
Payables to group enterprises 72 0,79 8 46,194
Other payables 113,360 8,26 8
Prepayments 35 0 403
Short-term debt 8 6 7,4 4 9 103,178
Debt 1,461,391 572,069
Liabilities and equity 5,998,472 5,863,000
Contingent Liabilities and obligations 36
Related parties 37
Fee to auditors 38
Subsequent events 39
Significant accounting policies 40
STATEMENT OF FINANCIAL POSITION
30 APRIL
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STATEMENT OF CHANGES IN EQUITY
1 MAY 30 APRIL
DKK ‘000 Share capital
Reserve under the
equity method Retained earnings Total
2023/24
Equity at 1 May 4,90 0 3,672,56 0 1,613,170 5,29 0,6 30
Dividend paid 0 0 (600,000) (600,000)
Net profit for the year 0 (4 80,5 5 6) 2 6 5,476 (215,080)
Capital adjustments 0 60,955 0 60,955
Equity at 30 April 4,900 3,252,959 1,278,646 4,536,505
2022/23
Equity at 1 May 4,90 0 2,4 93,39 4 1,623,6 09 4,121,903
Dividend paid 0 0 (560,000) (560,000)
Net profit for the year 0 1,55 4,310 549,561 2,103,871
Capital adjustments 0 (375,14 4) 0 (375,14 4)
Equity at 30 April 4,900 3,672,560 1,61 3,170 5,290,6 3 0
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NOTES
CONTENTS
NOTE 24 –––––––––– 90 –––––––––––––––––––––––––– Revenue
NOTE 25 ––––––––––
90 –––––––––––––––––––––––––– Staff expenses
NOTE 26 ––––––––––
90 –––––––––––––––––––––––––– Other operating expenses
NOTE 27 ––––––––––
90 –––––––––––––––––––––––––– Financial income
NOTE 28 ––––––––––
90 –––––––––––––––––––––––––– Financial expenses
NOTE 29 ––––––––––
90 –––––––––––––––––––––––––– Corporation tax
NOTE 30 ––––––––––
91 –––––––––––––––––––––––––– Intangible assets
NOTE 31 ––––––––––
91 –––––––––––––––––––––––––– Property, plant and equipment
NOTE 32 ––––––––––
91 –––––––––––––––––––––––––– Fixed asset investments
NOTE 33 ––––––––––
92 –––––––––––––––––––––––––– Securities at fair value
NOTE 34 ––––––––––
92 –––––––––––––––––––––––––– Deferred tax
NOTE 35 ––––––––––
92 –––––––––––––––––––––––––– Prepayments
NOTE 36 ––––––––––
92 –––––––––––––––––––––––––– Contingent liabilities and lease and contractual obligations
NOTE 37 ––––––––––
93 –––––––––––––––––––––––––– Related parties
NOTE 38 ––––––––––
93 –––––––––––––––––––––––––– Fees to auditors
NOTE 39 ––––––––––
93 –––––––––––––––––––––––––– Subsequent events
NOTE 40 ––––––––––
94 –––––––––––––––––––––––––– Significant accounting policies
89
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28
FINANCIAL EXPENSES 1 MAY 30 APRIL
DKK ‘000 2023/24 2022/23
Financial expenses from group enterprises 14,1 17 4,947
Other financial expenses 611,019 2,073
Exchange rate adjustments 13 0
62 5,149 7,020
29 CORPORATION TAX 1 MAY 30 APRIL
DKK ‘000 2023/24 2022/23
Current tax for the year ( 7, 2 6 5 ) (13,456)
Adjustment of provision for deferred tax 275 27
Tax concerning previous years 65 4
Total tax for the year (6,925) (13,425)
25
STAFF EXPENSES 1 MAY 30 APRIL
DKK ‘000 2023/24 2022/23
Wages and salaries 36,388 70,73 6
Pensions 1,920 1,6 52
Other social security expenses 254 280
Other staff expenses 0 2,248
38,562 74,916
Executive Board 8,215 39,52 9
Board of Directors 1,6 0 0 1,60 0
Number of employees, including hired crew 37 31
26 OTHER OPERATING EXPENSES 1 MAY 30 APRIL
DKK ‘000 2023/24 2022/23
Climate Fond/Association 100,000 0
100,000 0
The company has committed itself to donate DKK 100 million to a Climate Fund / Association
of the local community surrounding the facilities of Nordic Waste.
24 REVENUE 1 MAY 30 APRIL
In compliance with section 96 of the Danish Financial Statements Act, information
regarding turnover on geographical markets and activities has been left out due to the
fact that geographical markets and activities do not differ material on risks and rewards.
27 FINANCIAL INCOME 1 MAY 30 APRIL
DKK ‘000 2023/24 2022/23
Financial income from group enterprises 23,4 4 6 8,695
Other financial income 243 50
Exchange rate adjustments 0 57
23,689 8,802
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30 INTANGIBLE ASSETS 1 MAY 30 APRIL
DKK ‘000 Software
Cost at 1 May 244
Cost at 30 April 244
Depreciation at 1 May 122
Depreciation for the year 81
Depreciation at 30 April 203
Carrying amount at 30 April 41
31 PROPERTY, PLANT AND EQUIPMENT 1 MAY 30 APRIL
DKK ‘000
Fixtures and
fittings, tools
and equipment
Leasehold
Improvements
Cost at 1 May 894 1,862
Additions for the year 6,15 3 662
Cost at 30 April 7,0 4 7 2,524
Depreciation at 1 May 493 456
Depreciation for the year 356 459
Depreciation at 30 April 849 915
Carrying amount at 30 April 6,198 1,609
32 FIXED ASSET INVESTMENTS 30 APRIL
DKK ‘000 Investments in subsidiaries
Cost at 1 May 2,1 6 5,7 7 2
Additions 43 4,137
Disposals ( 1 7,7 2 2)
Cost at 30 April 2,582,187
Value adjustments at 1 May 3,672,560
Exchange rate adjustment 10 9,416
Shares of profit for the year 511,392
Dividend (9 8 7,1 2 0)
Other equity movements (4 8,462)
Other adjustments (4,827)
Value adjustments at 30 April 3,252,959
Carrying amount at 30 April 5,835,146
The parent company’s investments
in subsidiaries comprise:
Place of
reg. office
DKK'000
Share capital
Votes and
ownership
Bunker Holding A/S Middelfart 10,000 100 %
Unit IT Holding A/S Middelfart 1,000 100 %
SDK FREJA A/S Fredericia 6,500 100 %
Rederiaktieselskabet Nyborg Nyborg 610 100 %
Uni-Tankers A/S Middelfart 6 7, 2 2 1 100 %
CM Biomass Holding A/S København 2,133 66.8 8 %
Adarts af 1/9-2019 A/S Middelfart 502 100 %
A/S Global Risk Management Ltd. FS Holding Middelfart 400 100 %
For the complete list of subsidiaries please refer to the Financial Statements of the listed entities.
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36 CONTINGENT LIABILITIES AND
LEASE AND CONTRACTUAL OBLIGATIONS
30 APRIL
DKK ‘000 2023/24 2022/23
Lease and rent obligations
Lease and rent obligations 942 568
Obligation to designate buyer in respect of operating lease. Expected residual values at con-
tract expiry are calculated at DKK 1,633k at the balance sheet date. All the company’s lease
and rent obligations are within the group.
Other liabilities
The Group’s Danish companies are jointly and severally liable for the tax on the Group’s
jointly taxed income etc. Total accrued corporation tax appears from the Annual Report
of Selfgenerations T ApS which acts as management company in the jointly taxed Group.
Moreover, the Group’s Danish enterprises are jointly and severally liable for Danish
withholding tax. Any subsequent adjustments to the corporation tax or withholding tax may
result in an increase of the Company’s liability.
As security for bank facility, a suretyship has been granted for the subsidiary
Rederiaktieselskabet Nyborg on DKK 58,000k.
There is a warranty obligation for the subsidiary Uni-Tankers A/S on DKK 451,783k.
35
PREPAYMENTS 30 APRIL
Prepayments are made up of received prepayments relating to income in subsequent years.
33 SECURITIES AT FAIR VALUE 30 APRIL
DKK ‘000
Revaluations,
income statement Fair value
Securities 7 48
34 DEFERRED TAX 1 MAY 30 APRIL
DKK ‘000 2023/24 2022/23
Deferred tax at 1 May (301) (274)
Change for the year, income statement (275) (27)
Deferred tax at 30 April (576) (301)
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39
SUBSEQUENT EVENTS 1 MAY 30 APRIL
No significant events affecting the assessment of the Annual Report have occurred after
the balance sheet date.
37
RELATED PARTIES 1 MAY 30 APRIL
Related parties comprise the Board of Directors, the Executive Board and senior executives
in group enterprises as well as companies in which these persons have significant interests.
Except for intercompany transactions, no transactions have been carried out with the
Executive Board, managerial staff, significant shareholders or other related parties during
the year.
The Company is included in the Consolidated Financial Statements of the immediate
Parent Company, Selfinvest ApS.
Controlling interest is exercised through the Company’s immediate Parent Company,
Selfinvest ApS and the ultimate Parent Company SelfGenerations T ApS, in which Torben
Østergaard-Nielsen, CEO, exercises control.
38
FEES TO AUDITORS
1 MAY 30 APRIL
In compliance with section 96 no. 3 of the Danish Financial Statements Act, information
regarding fees to auditors has been left out.
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40
SIGNIFICANT
ACCOUNTING POLICIES 1 MAY 30 APRIL
Basis of preparation
The Annual Report of A/S United Shipping & Trading Com-
pany for 2023/24 has been prepared in accordance with the
provisions of the Danish Financial Statements Act applying
to large enterprises of reporting class C.
The accounting policies applied remain unchanged from
previous years. The Annual Report for 2023/24 is presented
in DKK thousands.
With reference to Section 86 (4) of the Danish Financial
Statements Act and the cash flow statement in the consol-
idated financial statements, the company has omitted to
prepare a cash flow statement.
A few reclassifications have been made in the comparative
figures this year. These reclassifications have had no effect
on net profit, equity, or the total balance sheet.
Recognition and measurement
The Financial Statements have been prepared based on the
historic cost principle.
Revenues are recognised in the income statement as
earned, and all expenses incurred to achieve the earnings
for the year are deducted. Expenses include operating
expenses, depreciation, amortisation, impairment
losses and provisions as well as changes due to changed
accounting estimates. Furthermore, value adjustments of
financial assets and liabilities measured at fair value are
recognised in the income statement.
Assets are recognised in the balance sheet when it is
probable that future economic benefits attributable to the
asset will flow to the Company, and the value of the asset
can be measured reliably.
Liabilities are recognised in the balance sheet when it is
probable that future economic benefits will flow out of the
Company, and the value of the liability can be measured
reliably.
Assets and liabilities are initially measured at cost. Subse-
quently, assets and liabilities are measured as described for
each item below.
Recognition and measurement take into account profits,
losses and risks occurring before the presentation of
the Annual Report which relate to affairs and conditions
existing at the balance sheet date.
Certain financial assets and liabilities are measured at
amortised cost, which involves the recognition of a constant
effective interest rate over the maturity period. Amortised
cost is calculated as original cost less any repayments and
with addition/deduction of the cumulative amortisation
of any difference between cost and the nominal amount.
In this way, capital losses and gains are allocated over the
maturity period.
Danish Kroner is used as the measurement currency. All
other currencies are regarded as foreign currencies.
Translation Policies
Transactions in foreign currencies are translated during the
year at the exchange rates at the dates of transaction. Gains
and losses arising due to differences between the transac-
tion date rates and the rates at the dates of payment are
recognised in financial income and expenses in the income
statement.
Receivables, payables and other monetary items in foreign
currencies are translated at the exchange rates at the
balance sheet date. Any differences between the exchange
rates at the balance sheet date and the transaction date
rates are recognised in financial income and expenses in
the income statement.
Upon recognition of financial statements of foreign group
enterprises, income statement items are translated into
Danish kroner at the average exchange rate and balance
sheet items at the exchange rate at the balance sheet date.
Exchange differences arising on this translation are recog-
nised directly in equity.
INCOME STATEMENT
Revenue
Revenue from the sale of goods is recognised when the
risks and rewards relating to the goods sold have been
transferred to the purchaser, the revenue can be measured
reliably and it is probable that the economic benefits
relating to the sale will flow to the Company.
Revenue is measured at the consideration received and is
recognised exclusive of VAT and net of discounts relating to
sales.
In compliance with section 96 of the Danish Financial State-
ments Act, information regarding turnover on geographical
markets and activities has been left out due to the fact that
geographical markets and activities do not differ material
on risks and rewards.
Other external expenses
Other external expenses include expenses for sales,
administration as well as the running of office facilities etc.
Fee to auditors is disclosed in Selfinvest ApS.
Staff expenses
Staff expenses comprise wages and salaries as well as pay-
roll expenses.
Share of profit/loss in subsidiaries
Share of profit or loss in subsidiaries is recog nised net of tax
and corrected for the share of unrealised intra-group gains
and losses.
Financial income and expenses
Financial income and expenses comprise interest, financial
expenses in respect of finance leases, realised and un-
realised exchange gains and losses and gains and losses
on securities, amortisation of mortgage loans, as well as
changes in the fair value of financial instrument.
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SIGNIFICANT
ACCOUNTING POLICIES CONTINUED
Tax on profit/loss for the year
Tax for the year consists of current tax for the year and
adjustment of deferred tax for the year. The tax attributable
to the profit for the year is recognised in the income state-
ment, whereas the tax attributable to equity transactions is
recognised directly in equity.
The Company is jointly taxed with Danish group enterprises.
The tax effect of the joint taxation is allocated to enterprises
showing profits or losses in proportion to their taxable
incomes (full allocation with credit for tax losses). The jointly
taxed enterprises have adopted the tonnage account
taxation scheme.
BALANCE SHEET
Intangible assets
Intangible assets are measured at cost less accumulated
amortisation and impairment losses. Amortisation is calcu-
lated on a straight-line basis over the estimated useful lives
of the assets:
Software ...................................................... up to 5 years
Property, plant and equipment
Property, plant and equipment are measured at cost less
accumulated depreciation and impairment losses. Cost
comprises the cost of acquisition and expenses directly
related to the acquisition up until the time when the asset is
ready for use.
Depreciation based on cost reduced by any residual value is
calculated on a straightline basis over the expected useful
lives of the assets:
Fixtures and fittings, tools and equipment ........... 3-10 years
Leasehold improvements .................................... 3-5 years
Residual values and expected useful lives are reassessed on
an annual basis.
Equipment are measured at cost less accumulated depre-
ciation calculated on a straightline basis over the period
until either the end of the expected useful life or the time of
expected phasing out.
Gains and losses on sale of property, plant and equipment
are recognised in the income statement under other
operating income and other external expenses, respectively
Investments in subsidiaries
lnvestments in subsidiaries are recognised as A/S United
Shipping & Trading Company share of the equity value
inclusive of goodwill less any impairment losses. Goodwill is
an integral part of the value of subsidiaries and is therefore
subject to an impairment test together with the investment
as a whole. lmpairment losses are reversed to the extent the
original value is considered recoverable.
Receivables
Receivables are measured in the balance sheet at the
lower of amortised cost and net realisable value, which
corresponds to nominal value less provisions for bad debts.
Provisions for bad debts are determined on the basis of an
individual assessment of each receivable.
Securities
Securities recognised in current assets are measured at the
fair value at the balance sheet date. Fair value is determined
on the basis of the latest quoted market price.
Dividend
Dividend distribution proposed by Manage ment for the
year is disclosed as a separate equity item.
Deferred tax and liabilities
Deferred tax is recognised in respect of all temporary dif-
ferences between the carrying amount and the tax base of
assets and liabilities.
Deferred tax is measured on the basis of the tax rules and
tax rates that will be effective under the legislation at the
balance sheet date when the deferred tax is expected to
crystallise as current tax. In cases where the computation of
the tax base may be made according to alternative tax rules,
deferred tax is measured on the basis of the intended use of
the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss carry-
forwards, are measured at the value at which the asset is ex-
pected to be realised, either by elimination in tax on future
earnings or by set-off against deferred tax liabilities.
Deferred tax assets and liabilities are offset within the same
legal tax entity.
Current tax receivables and liabilities
Current tax receivables and liabilities are recognised in the
balance sheet at the amount calculated on the basis of
the expected taxable income for the year and adjusted for
tax on taxable incomes for prior years. Tax receivables and
liabilities are offset and presented as a net item if there is a
legally enforceable right of set-off and an intention to settle
on a net basis or simultaneously.
Financial debts
Fixed-interest loans, such as loans from credit institutions,
are recognised initially at the proceeds received net of
transaction expenses incurred. Subsequently, the loans are
measured at amortised cost; the difference between the
proceeds and the nominal value is recognised as an interest
expense in the income statement over the loan period.
Other debts are measured at amortised cost, substantially
corresponding to nominal value.
95
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EXECUTIVE BOARD
BOARD OF DIRECTORS
GENERAL INFORMATION MANAGEMENT'S REVIEW CORPORATE SOCIAL RESPONSIBILITY BOARDS CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS STATEMENTS
97
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99
CVR No 33 77 12 31
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100
AS UNITED SHIPPING & TRADING COMPANY
Turbinevej 10 · 5500 Middelfart · Denmark
P +45 88 13 88 13
Company reg. no. 76 95 00 16