Note 1\tCorporate information
The Parent Company Arribatec Group ASA (publ) (\u201cArribatec\u201d), with Norwegian corporate identity number 979 867 654 is a public limited liability companyincorporated in NorwayThe registered address is L\u00f8renfaret 1B, NO-0585 OsloThe company\u2019s shares are traded in Norway on the Oslo Stock Exchange, Oslo B\u00f8rs. ticker ARR.
The principal activities of the company and its subsidiaries (the Group) are to be a software and consulting company. With a customer centric engagement model, combined with a deep system-, integra-tion- and domain competence, Arribatec builds long-term strategic partnership with a broad customer base. Arribatec serves more than 1 000 entities spread over 20 countries and various industries, both in the private and public sector. The activities are further described in Note 3.
The Annual Report and Parent Company Report for Arribatec Group ASA (publ) were adopted by the Board of Directors on 24 April 2024 and will be submitted for approval to the Annual General Meeting 27.05.2024.
Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries, together called \u201cthe Group\u201d have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS), relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated finan-cial accounts are presented in NOK.
All presented figures in this interim report have been rounded and consequently, the sum of individual figures can deviate from the presented total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern.
Note 3\tSegment
The market for Arribatec\u2019s Software and services are global. The chief decision maker will follow up revenue and profitability on a global basis, segmented into the Business Areas. This is consistent with the internal reporting submitted to the chief operating decision maker, defined as the Management Group. The Management Group is responsible for allocating resources and assessing performance as well as making strategic decisions. Principles of revenue recognition are stated in this note.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customizing, maintaining and supporting the entire business landscape, with ERP as the core engine. We integrate it with other market leading systems
that provide better operational support and insight than a single ERP system does.
EA & BPMprovides Enterprise Architecture and Business Process Management. Arribatec EA&BPM delivers solutions and long-term services within the spaces of business process management, enter-prise architecture and corporate governance to major Norwegian and Nordic customers, both in the private and public sector.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk and GDPR. Arribatec Cloud provides consulting, outsourcing and cloud services to private and public enterprises. In addition to offering market leading cloud services from Microsoft and Google, Arribatec Cloud also operates its own public cloud offering based on Norwegian data centers to accommodate special use cases for our customers.
Hospitalitydelivers solutions for self-check-in/check-out and payments for the hospitality industry.
Marinefocus on the Maritime sector. BA Marine\u2019s competencies are the development, implementation, and consulting of the owned asset management system solutions: Infoship.
2023
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 294\u00a0258 | 111\u00a0010 | 127\u00a0016 | 10\u00a0903 | 47\u00a0645 | 662 | (18\u00a0514) | 572\u00a0981 |
Materials, software and services | (56\u00a0402) | (24\u00a0170) | (61\u00a0136) | (4\u00a0318) | (3\u00a0075) | (1\u00a0989) | 18\u00a0418 | (132\u00a0673) |
Gross margin | 237\u00a0856 | 86\u00a0840 | 65\u00a0880 | 6\u00a0585 | 44\u00a0570 | (1\u00a0327) | (96) | 440\u00a0308 |
Salary and personnel costs | (190\u00a0084) | (59\u00a0394) | (43\u00a0950) | (4\u00a0400) | (23\u00a0939) | (24\u00a0841) | 0 | (346\u00a0608) |
Other operating expenses | (18\u00a0170) | (5\u00a0832) | (12\u00a0732) | (5\u00a0518) | (6\u00a0942) | (20\u00a0139) | 96 | (69\u00a0236) |
Total operating expenses | (208\u00a0254) | (65\u00a0227) | (56\u00a0682) | (9\u00a0918) | (30\u00a0882) | (44\u00a0980) | 96 | (415\u00a0845) |
EBITDA | 29\u00a0602 | 21\u00a0614 | 9\u00a0198 | (3\u00a0333) | 13\u00a0689 | (46\u00a0307) | 0 | 24\u00a0463 |
Depreciation, amortisarion and impairment | (19\u00a0563) | (6\u00a0557) | (7\u00a0802) | (3\u00a0533) | (7\u00a0211) | (3\u00a0642) | 0 | (48\u00a0307) |
EBIT | 10\u00a0039 | 15\u00a0057 | 1\u00a0396 | (6\u00a0866) | 6\u00a0478 | (49\u00a0949) | 0 | (23\u00a0844) |
Gross margin % | 80.8% | 78.2% | 51.9% | 60.4% | 93.5% | na | na | 76.8% |
EBITDA % | 10.1% | 19.5% | 7.2% | (30.6%) | 28.7% | na | na | 4.3% |
EBIT % | 3.4% | 13.6% | 1.1% | (63.0%) | 13.6% | na | na | (4.2%) |
2022
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 291\u00a0362 | 89\u00a0789 | 113\u00a0726 | 3\u00a0642 | 47\u00a0066 | 1\u00a0166 | (41\u00a0781) | 504\u00a0968 |
Materials, software and services | (64\u00a0177) | (19\u00a0812) | (48\u00a0862) | 1\u00a0948 | (6\u00a0365) | (17\u00a0561) | 39\u00a0794 | (115\u00a0035) |
Gross margin | 227\u00a0185 | 69\u00a0977 | 64\u00a0864 | 5\u00a0590 | 40\u00a0701 | (16\u00a0395) | (1\u00a0988) | 389\u00a0934 |
Salary and personnel costs | (177\u00a0970) | (52\u00a0108) | (41\u00a0291) | (10\u00a0192) | (39\u00a0066) | (18\u00a0172) | 0 | (338\u00a0800) |
Other operating expenses | (21\u00a0768) | (5\u00a0437) | (22\u00a0031) | (3\u00a0678) | (11\u00a0702) | (22\u00a0613) | 1\u00a0988 | (85\u00a0241) |
Total operating expenses | (199\u00a0739) | (57\u00a0545) | (63\u00a0322) | (13\u00a0870) | (50\u00a0768) | (40\u00a0785) | 1\u00a0988 | (424\u00a0041) |
EBITDA | 27\u00a0446 | 12\u00a0432 | 1\u00a0542 | (8\u00a0280) | (10\u00a0067) | (57\u00a0180) | 0 | (34\u00a0107) |
Depreciation, amortisation and impairment | (15\u00a0110) | (5\u00a0707) | (7\u00a0116) | (2\u00a0762) | (14\u00a0696) | (10\u00a0842) | 0 | (56\u00a0232) |
EBIT | 12\u00a0336 | 6\u00a0725 | (5\u00a0573) | (11\u00a0042) | (24\u00a0764) | (68\u00a0022) | 0 | (90\u00a0339) |
Gross margin % | 78.0% | 77.9% | 57.0% | 153.5% | 86.5% | na | na | 77.2% |
EBITDA % | 9.4% | 13.8% | 1.4% | (227.4%) | (21.4%) | na | na | (6.8%) |
EBIT % | 4.2% | 7.5% | (4.9%) | (303.2%) | (52.6%) | na | na | (17.9%) |
Consulting services
Consulting services mainly come from time and material projects. The revenue is recognised as revenue as they are delivered to the customer every month. A receivable is recognised at the time of invoicing as this is the point in time when the right to consideration becomes unconditional.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the obligations of the company to provide those rights. IFRS 15 distinguishes between whether the license provides a\u201d right to use\u201d or a \u201cright to access\u201d IP. This impacts the timing of revenue recognition.
In most cases, the sale of licenses is part of SaaS contracts. Arribatec in some instances has contracts that include the sale of licenses only. Arribatec has analyzed its (partner) licensing contracts and concluded that it controls the license before it is transferred to the customer since Arribatec has legal ownership, physical possession, and the risk and reward of ownership before being transferred to the customer. Arribatec is therefore the principal in the customer contract.
When Arribatec licenses are distinct on-premises licenses (soft-ware installed on customers\u2019 server), these fall under the category \u201cright-to-use\u201d since the license grants the right to the IP \u201cas is\u201d when delivered. The distinct on-premises licenses pricing model is a one-time fixed fee. Revenue is recognised at the point in time when the customer is provided with the ability to use the software. The fee is recognised as a revenue at the point of time when the customer has received legal title and physical possession, and the customer has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec license cloud-based subscription licenses (\u201cright to access\u201d), the license is not considered distinct from the online/hosting service. Revenue is recognised over time, over the license/contract period, as the customer is receiving and consuming the benefits of access to the cloud-based license on an ongoing basis. The cloud-based subscription licenses are sold for a fixed annual or monthly fee. Revenue is recognised linearly over the subscription time.
Software as a service (SaaS)
Software is provided over time to an end customer from a Data Center managed or contracted by Arribatec. The obligations in the SaaS contract are to offer cloud-based access to the license (owned by Arribatec), maintenance of the utility of the software, including rights to updates and future releases, and in some contracts, provide support.
The customer will purchase and obtain control of the software on a subscription or consumption basis. Revenue is therefore recognised periodically over the life of the SaaS contract.
In some cases, Arribatec has a separate installation and implementation contract regarding the same customer projects. When these contracts are negotiated close in time to each other, Arribatec considers whether the two contracts have been negotiated as a package with a single commercial objective, or not. If this is the case the two contracts are combined. If not, they are accounted for separately.
The implementation and installation services are capable of being distinct and distinct within the context of these contracts. This is concluded based on an analysis of the different deliveries and the performance obligations in the contract. Arribatec has therefore concluded that there are generally two distinct performance obliga-tions in the two combined contracts. When there are two combined contracts, the transaction price is allocated between the two
performance obligations based on relative stand-alone prices that are estimated based on the pricing of each element in the contract like hours, contract length, and options to extend the contract.
Arribatec\u2019s performance obligation under the installation and integra-tion contract is satisfied over time because the consulting services does not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is accordingly recognised over time as the installation and integration is performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premises or from the cloud. Managed services contracts are delivered at a fixed price and a minimum commitment to the customers, on a long-term contract. Additional work above the agreed level is considered normal consulting services.
Arribatec delivers an integrated set of services as defined in the managed service agreement. The customer receives and consumes the benefits from the Managed services as Arribatec performs under the contract. Therefore, the performance obligation is satisfied over time and revenue is recognised over time.
One-time revenue from third party hardware
In some contracts, Arribatec delivers both physical hardware and installation of software on the hardware, e.g. for self-service /check-in kiosks. In such cases, the hardware product is considered as a separate contract obligation that is recognised as revenue when it is installed.
Disaggregation of revenue
In the following table, revenue is disaggregated by primary Business area, geography and recurrence. In presenting the geographic information, revenue has been based on the geographic location of the legal entity. The table shows external revenue.
Full year 2023
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 169\u00a0368 | 174\u00a0273 | 16\u00a0463 | 360\u00a0104 |
Business services | 70\u00a0912 | 51\u00a0921 | 1\u00a0577 | 124\u00a0411 |
EA & BPM | 77\u00a0521 | 29\u00a0439 | 3\u00a0119 | 110\u00a0080 |
Cloud | 16\u00a0716 | 89\u00a0714 | 8\u00a0208 | 114\u00a0638 |
Hospitality | 4\u00a0219 | 3\u00a0207 | 3\u00a0478 | 10\u00a0903 |
Corporate | 0 | (9) | 81 | 72 |
Continental Europe | 86\u00a0016 | 15\u00a0900 | 6\u00a0874 | 108\u00a0790 |
Business services | 67\u00a0762 | 7\u00a0446 | 411 | 75\u00a0619 |
Marine | 18\u00a0254 | 8\u00a0454 | 6\u00a0463 | 33\u00a0171 |
UK | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Business services | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Americas | 31\u00a0167 | 6\u00a0714 | 1\u00a0764 | 39\u00a0645 |
Business services | 24\u00a0496 | 0 | 692 | 25\u00a0188 |
Marine | 6\u00a0670 | 6\u00a0714 | 1\u00a0072 | 14\u00a0456 |
Total revenue | 333\u00a0131 | 214\u00a0177 | 25\u00a0672 | 572\u00a0981 |
Full year 2022
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 140\u00a0157 | 149\u00a0666 | 15\u00a0472 | 305\u00a0295 |
Business services | 65\u00a0425 | 46\u00a0299 | 876 | 112\u00a0601 |
EA & BPM | 59\u00a0512 | 23\u00a0995 | 5\u00a0402 | 88\u00a0909 |
Cloud | 13\u00a0966 | 78\u00a0095 | 8\u00a0170 | 100\u00a0230 |
Hospitality | 1\u00a0253 | 1\u00a0286 | 1\u00a0023 | 3\u00a0562 |
Corporate | 0 | (8) | 0 | (8) |
Continental Europe | 95\u00a0440 | 14\u00a0457 | 5\u00a0262 | 115\u00a0159 |
Business services | 72\u00a0401 | 6\u00a0952 | 247 | 79\u00a0601 |
Marine | 23\u00a0039 | 7\u00a0505 | 5\u00a0015 | 35\u00a0558 |
UK | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Business services | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Americas | 28\u00a0902 | 6\u00a0917 | 728 | 36\u00a0548 |
Business services | 25\u00a0075 | 21 | 236 | 25\u00a0333 |
Marine | 3\u00a0827 | 6\u00a0896 | 492 | 11\u00a0215 |
Total revenue | 298\u00a0454 | 184\u00a0495 | 22\u00a0019 | 504\u00a0968 |
Note 4\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the revenue and cost occurs.
The cost of finished goods and work in progress comprises design costs, raw materials, direct labour and other direct costs. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
It excludes borrowing costs and own operating cost.
NOK thousand | 2023 | 2022 |
Hired consultans | (40\u00a0302) | (48\u00a0851) |
Hardware for resale | (8\u00a0999) | (7\u00a0738) |
Software for resale | (66\u00a0896) | (58\u00a0212) |
Other | (16\u00a0475) | (234) |
Total materials, software and services | (132\u00a0673) | (115\u00a0035) |
Note 5\tPersonnel
NOK thousand | 2023 | 2022 |
Salaries | (271\u00a0802) | (256\u00a0568) |
Social security tax | (42\u00a0480) | (38\u00a0407) |
Bonuses | (6\u00a0752) | (6\u00a0878) |
Share option cost | (620) | 0 |
Pension costs defined contribution (Note27) | (20\u00a0105) | (19\u00a0337) |
Other personnel cost | (4\u00a0850) | (17\u00a0609) |
Total salaries and personnel expense | (346\u00a0608) | (338\u00a0800) |
Average number of FTEs
2023 | 2022 | |
Number os FTEs, start of year | 353 | 374 |
Number os FTEs, end of year | 329 | 353 |
Average number of FTEs | 341 | 363 |
Gender split, end of year | ||
Male | 215 | 233 |
Female | 114 | 120 |
Number of FTEs, end of year, per country
2023 | 2022 | |
Belgium | 0 | 1 |
Cyprus | 3 | 3 |
Denmark | 1 | 1 |
France | 4 | 2 |
Germany | 0 | 3 |
Italy | 28 | 35 |
Norway | 208 | 204 |
Netherlands | 0 | 1 |
Poland | 0 | 7 |
Singapore | 1 | 2 |
Spain | 25 | 26 |
Sweden | 16 | 22 |
United Kingdom | 33 | 31 |
USA | 11 | 15 |
Total number of FTEs | 329 | 353 |
Pension obligations
The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 2Note 2Note 2Note 27for further description. The group only has defined contribu-tion retirement plans.Note 27for further description. The group only has defined contribu-tion retirement plans.7for further description. The group only has defined contribu-tion retirement plans.
Note 6\tKey management
The Group Management consists of the Group Directors. Group Directors are the CEO, COO, CFO, CPOO and CCO that are all employed by the parent company. The IT Director is employed by one of the subsidiaries.
Compensation to the management during the year is detailed in this note. Amounts presented are the total part of salary, not only the part for the Group management role.
The Group CEO has a three-month notice period and is entitled to severance pay for twelve months in case of termination initiated by the company. None of the Board members or the CEO have executive loans or guarantees in the company.
See remuneration report for details on bonus and share option program in relation to management.
Management remuneration 2023
NOK thousand | Board remuneration | Audit committee remuneration | Salary | Bonus | Benefits in kind | Share option cost | Pension cost | Total remuneration |
Management | ||||||||
Geir Johansen - CEO | 0 | 0 | 4\u00a0000 | 0 | 17 | 38 | 100 | 4\u00a0154 |
Ole Jakob Kj\u00f8lvik - COO | 0 | 0 | 1\u00a0559 | 137 | 17 | 28 | 100 | 1\u00a0840 |
Bente Brocks - CFO (interim) | 0 | 0 | 1\u00a0762 | 0 | 14 | 34 | 100 | 1\u00a0909 |
Erik Sundet - Group IT director (50% mgmt) | 0 | 0 | 1\u00a0231 | 0 | 56 | 28 | 86 | 1\u00a0401 |
P\u00e5l Stueflotten - CCO | 0 | 0 | 1\u00a0458 | 513 | 84 | 28 | 100 | 2\u00a0182 |
Solfrid Bu\u00f8 - CPOO | 0 | 0 | 1\u00a0500 | 0 | 24 | 28 | 100 | 1\u00a0652 |
Management total | 0 | 0 | 11\u00a0509 | 649 | 212 | 184 | 584 | 13\u00a0138 |
Members of the Board | ||||||||
Martin Nes (Chairman) | 265 | 38 | 0 | 0 | 0 | 0 | 0 | 303 |
\u00d8ystein S. Spetalen (Member) | 215 | 0 | 0 | 0 | 0 | 0 | 0 | 215 |
Kristin Hellebust (Member) | 215 | 33 | 0 | 0 | 0 | 0 | 0 | 248 |
Linn Katrine H\u00f8ie (Member) | 215 | 0 | 0 | 0 | 0 | 0 | 0 | 215 |
Terje Mj\u00f8s (Member, from May-23) | 131 | 20 | 0 | 0 | 0 | 0 | 0 | 152 |
Henrik Lie-Nielsen (Member, to May-23) | 83 | 13 | 0 | 0 | 0 | 0 | 0 | 96 |
Members of the Board total | 1\u00a0123 | 104 | 0 | 0 | 0 | 0 | 0 | 1\u00a0227 |
Total salaries and personnel expense | 1\u00a0123 | 104 | 11\u00a0509 | 649 | 212 | 184 | 584 | 14\u00a0365 |
Management remuneration 2022
NOK thousand | Board remuneration | Audit committee remuneration | Salary | Bonus | Benefits in kind | Share option cost | Pension cost | Total remuneration |
Management | ||||||||
Geir Johansen - CEO | 0 | 0 | 2\u00a0700 | 0 | 11 | 0 | 90 | 2\u00a0800 |
Ole Jakob Kj\u00f8lvik - COO | 0 | 0 | 1\u00a0500 | 0 | 16 | 0 | 90 | 1\u00a0606 |
Bente Brocks - CFO (interim) | 0 | 0 | 1\u00a0680 | 0 | 11 | 0 | 90 | 1\u00a0781 |
Erik Sundet - Group IT director (50% mgmt) | 0 | 0 | 993 | 48 | 21 | 0 | 69 | 1\u00a0132 |
P\u00e5l Stueflotten - CCO (from May-22) | 0 | 0 | 800 | 0 | 74 | 0 | 56 | 930 |
Solfrid Bu\u00f8 - Chief People & Organisation Officer (from Nov-22) | 0 | 0 | 217 | 0 | 3 | 0 | 15 | 235 |
Grete Thomassen - HR director (to Apr-22) | 0 | 0 | 400 | 0 | 4 | 0 | 28 | 432 |
Espen Karsrud - Group EVP Business Development (to Apr-22) | 0 | 0 | 500 | 0 | 4 | 0 | 35 | 539 |
Management total | 0 | 0 | 8\u00a0790 | 48 | 144 | 0 | 473 | 9\u00a0455 |
Members of the Board | ||||||||
Martin Nes (Chairman) | 279 | 20 | 0 | 0 | 0 | 0 | 0 | 300 |
\u00d8ystein S. Spetalen (Member) | 217 | 0 | 0 | 0 | 0 | 0 | 0 | 217 |
Kristin Hellebust (Member) | 217 | 18 | 0 | 0 | 0 | 0 | 0 | 234 |
Henrik Lie-Nielsen (Member) | 217 | 18 | 0 | 0 | 0 | 0 | 0 | 234 |
Linn Katrine H\u00f8ie (Member) (from May-22) | 117 | 0 | 0 | 0 | 0 | 0 | 0 | 117 |
Yvonne Litsheim Sandvold (Member) (to May-22) | 100 | 0 | 0 | 0 | 0 | 0 | 0 | 100 |
Members of the Board total | 1\u00a0146 | 55 | 0 | 0 | 0 | 0 | 0 | 1\u00a0201 |
Total salaries and personnel expense | 1\u00a0146 | 55 | 8\u00a0790 | 48 | 144 | 0 | 473 | 10\u00a0656 |
The following remuneration has been made to the members of the nomination committee during the year:
NOK thousand | 2023 | 2022 |
Nomination committee | ||
Espen Lundaas (head) | 20 | 40 |
\u00d8ystein Tvenge (member) | 0 | 0 |
Total | 20 | 40 |
Note 7\tOther operating expense
NOK thousand | 2023 | 2022 |
Marketing cost | (4\u00a0966) | (4\u00a0385) |
Rental and leasing cost1 | (8\u00a0145) | (8\u00a0750) |
Travel cost | (11\u00a0348) | (7\u00a0929) |
Fees for external services | (18\u00a0784) | (29\u00a0261) |
IT and communication cost | (16\u00a0992) | (19\u00a0829) |
Loss on sale of intangible fixed assets | 0 | (4\u00a0241) |
Other operating cost2 | (9\u00a0001) | (10\u00a0846) |
Total operating expenses | (69\u00a0236) | (85\u00a0241) |
1Includes common cost related to premises, such as electricity, cleaning, moving cost and cost in relation to non-material leasing contracts.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
NOK thousand | 2023 | 2022 |
Specification of auditor\u2019s fee | ||
Statutory audit | (1\u00a0224) | (2\u00a0988) |
Other assurance services | (11) | (62) |
Other non-assurance services | (132) | (306) |
Total | (1\u00a0366) | (3\u00a0355) |
Note 8\tProperty, plant and equipment
Property, plant and equipment are measured at cost in the balance sheet, with a deduction for accumulated depreciation and impairment. Depreciation is made on a straight-line basis over the asset\u2019s estimated useful life, which is assessed on an individual basis, ranging from five to ten years.
2023
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2023 | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Additions | 2\u00a0442 | 147 | 104 | 2\u00a0693 |
Reclassifications | (57) | 0 | 0 | (57) |
Sale | (244) | 0 | (5) | (249) |
Disposals | (1\u00a0246) | (381) | (174) | (1\u00a0800) |
Translation difference | 693 | 162 | 60 | 914 |
Cost, end of period | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Accumulated depreciation at 1 Jan 2023 | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Depreciation during the year | (1\u00a0969) | (739) | (176) | (2\u00a0884) |
Reclassifications | 57 | 0 | 0 | 57 |
Sale | 222 | 0 | 5 | 227 |
Disposals | 1\u00a0202 | 381 | 165 | 1\u00a0747 |
Translation difference | (610) | (71) | (48) | (729) |
Accumulated depreciation, end of period | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Carrying amount at 31 Dec 2023 | 3\u00a0432 | 2\u00a0197 | 808 | 6\u00a0436 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
2022
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2022 | 18\u00a0819 | 3\u00a0572 | 1\u00a0239 | 23\u00a0631 |
Additions | 788 | 1\u00a0147 | 29 | 1\u00a0964 |
Reclassifications | (2\u00a0468) | 267 | 757 | (1\u00a0444) |
Sale | (370) | (14) | (160) | (545) |
Disposals | (426) | - | (117) | (543) |
Translation difference | 442 | 56 | 89 | 587 |
Cost, end of period | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Accumulated depreciation at 1 Jan 2022 | (13\u00a0943) | (1\u00a0463) | (779) | (16\u00a0185) |
Depreciation during the year | (1\u00a0634) | (701) | (170) | (2\u00a0505) |
Reclassifications | 1\u00a0511 | (143) | (145) | 1\u00a0224 |
Sale | 294 | 5 | 132 | 431 |
Disposals | 335 | (0) | 45 | 381 |
Translation difference | (405) | (30) | (43) | (478) |
Accumulated depreciation, end of period | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Carrying amount at 31 Dec 2022 | 2\u00a0942 | 2\u00a0697 | 877 | 6\u00a0517 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
Note 9\tRight-of-use assets and lease liabilities
Right of use assets and Lease liabilities
The Group recognises leasing contracts as Right of use assets and lease liabilities. The exemptions are short term leases (defined as twelve months or loss) and/or low value assets. Contracts not mate-rial to IFRS 16 are expensed in P&L as they occur.
Leases that fulfill the criteria are recognised in balances sheet and the Group recognises the lease payments as other operating expenses in the statement of profit or loss when they incur.
The lease term represents the non-cancellable period of the lease, together with estimated periods where the option to extend or termi-nate contracts when the Group is reasonably certain to exercise this option. This is mainly valid for facility agreements that are about to expire, but there is no plan to change location.
The Group presents its lease liabilities as separate line items in the statement of financial position.
Right-of-use assets
NOK thousand | Buildings | Vehicles | Hardware | Other | Total |
Right-of-use assets per 1 Jan 2022 | 18\u00a0149 | 430 | 3\u00a0139 | 8\u00a0548 | 30\u00a0266 |
Addition of right-of-use assets | 18\u00a0336 | 0 | 37 | 9\u00a0836 | 28\u00a0209 |
Depreciation in the period | (10\u00a0791) | (345) | (1\u00a0561) | (4\u00a0518) | (17\u00a0215) |
Reclassification | 6\u00a0631 | 1 | 191 | (6\u00a0822) | 0 |
Translation difference | 447 | 3 | 9 | 0 | 459 |
Right-of-use assets per 1 Jan 2023 | 32\u00a0773 | 89 | 1\u00a0814 | 7\u00a0043 | 41\u00a0719 |
Addition of right-of-use assets | 4\u00a0740 | 724 | 1\u00a0135 | 270 | 6\u00a0869 |
Correction of initial index regulation, addition part | (1\u00a0372) | 0 | 0 | 0 | (1\u00a0372) |
Depreciation in the period | (13\u00a0320) | (235) | (1\u00a0650) | (3\u00a0458) | (18\u00a0663) |
Correction of initial index regulation, reversal of depr. prev.years | 180 | 0 | 0 | 0 | 180 |
Reclassification between categories | (41) | 41 | 0 | 0 | 0 |
Disposals | (952) | 0 | 0 | 0 | (952) |
Translation difference | 657 | 1 | 1 | 0 | 659 |
Carrying amount of right-of-use assets, end of period | 22\u00a0665 | 620 | 1\u00a0299 | 3\u00a0856 | 28\u00a0442 |
Remaining lease term | 1-5 years | 1-4 years | 1-3 years | 1-3 years | |
Depreciation method | Linear | Linear | Linear | Linear |
Lease liabilities
NOK thousand | 31 Dec 2023 | 31 Dec 2022 |
Undiscounted lease liabilities and maturity of cash outflow | ||
< 1 year | 13\u00a0609 | 17\u00a0782 |
1-2 years | 9\u00a0421 | 12\u00a0435 |
2-3 years | 5\u00a0344 | 8\u00a0306 |
3-4 years | 2\u00a0064 | 4\u00a0811 |
4-5 years | 546 | 1\u00a0566 |
> 5 years | 0 | 621 |
Total undiscounted lease liabilities, end of period | 30\u00a0984 | 45\u00a0521 |
Discount element | (1\u00a0239) | (2\u00a0028) |
Total discounted lease liabilities, end of period | 29\u00a0745 | 43\u00a0492 |
NOK thousand | 2023 | 2022 |
Total lease liabilities, end of period | 29\u00a0745 | 43\u00a0492 |
Lower liabilities at end of 2023 from 2022 is mainly due to some office locations that have been cancelled. The payments made on lease liabilities are presented in the cash flow statement on a separate line.
The interest rate used for discounting the lease liability is based on the same as according to the terms of interest rate from the Group\u2019s internal financing. See Note 11for interest expenses related to leasing contracts.
Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Note 11\tFinancial items and risks
NOK thousand | 2023 | 2022 |
Finance income | ||
Interest income | 563 | 291 |
Realized foreign exchange gains | 2\u00a0149 | 2\u00a0153 |
Net unrealized foreign exchange gains | 381 | 1\u00a0522 |
Other financial income | 115 | 1\u00a0225 |
Total financial income | 3\u00a0208 | 5\u00a0191 |
Finance expenses | ||
Interest on debts and borrowings | (1\u00a0161) | (697) |
Interest expense on lease liabilities | (1\u00a0171) | (1\u00a0236) |
Realized foreign exchange losses | (4\u00a0131) | (1\u00a0998) |
Other financial expenses | (2\u00a0952) | (1\u00a0350) |
Total financial expenses | (9\u00a0414) | (5\u00a0280) |
Net financial items | (6\u00a0206) | (89) |
Financial risk
In Arribatec, risks as currency risk, interest rate risk and other price risk are all factors that could have a negative impact on the ability of the Group to achieve its business objectives. All economic activities are associated with risk. To manage risk in a balanced way, it must first be identified and assessed. Arribatec conducts risk management at both a Group and company level, where risks are evaluated systematically.
The following summary is by no means comprehensive but offers an overview of all material financial risk factors that are considered important for Arribatec\u2019s future development.
Risks associated with changes in economic conditions are managed through regular checks on developments in each country.
Currency risk
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
Note 12\tTax
Arribatec account for current income tax assets and liabilities based on the expected recovery from, or payment to, tax authorities.
The applicable tax rates and laws are those in effect at the end of the reporting period. Additionally, we calculate deferred income tax using the deferred tax method, considering temporary differences between tax bases and carrying amounts of assets and liabilities for financial reporting purposes.
Our policy recognizes deferred income tax liabilities for taxable temporary differences, except when arising from goodwill recognition or non-business combination transactions that do not impact accounting or taxable profit or loss. We also assess deferred tax assets, recognizing them to the extent of probable future taxable profit availability or utilization of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognized assets are reas-sessed at each reporting date. Finally, we offset deferred income tax assets and liabilities only when legally enforceable rights exist to set off tax assets against income tax liabilities within the same taxable entity or taxation authority.
Income tax calculation
The Group\u2019s tax expense is affected by several factors, where the most important are tax losses carried forward, currency effects and local GAAP/IFRS-differences for calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
NOK thousand | 2023 | 2022 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 2\u00a0597 | 889 |
Correction previous year - Norway | (7) | 0 |
Current Income Tax - Other countries | 2\u00a0762 | 1\u00a0539 |
Correction previous year - other countries | (59) | 968 |
Deferred tax | ||
Change in deferred taxes - Norway | (10\u00a0392) | (7\u00a0653) |
Change in deferred taxes - Other countries | (1\u00a0900) | (2\u00a0778) |
Tax income recorded in consolidated statement of Profit & Loss | (6\u00a0998) | (7\u00a0035) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (30\u00a0050) | (90\u00a0428) |
Adjustment of current income tax of previous years | 3 | (50) |
Temporary differences | (2 336) | 690 |
Non deductible expenses | 1\u00a0113 | 37\u00a0375 |
Non-taxable income | (367) | (916) |
Tax base | (31 637) | (53\u00a0331) |
NOK thousand | 2023 | 2022 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 6\u00a0960 | (11\u00a0733) |
Tax previous year | (65) | 968 |
Group contribution with tax effect (tax payable effect) | (2\u00a0576) | 0 |
Group contribution with tax effect (deferred tax effect) | 2\u00a0576 | 0 |
Changes in recognised deferred taxes | (12\u00a0292) | (10\u00a0431) |
Effect from previously unrecognised deferred taxes | (1\u00a0607) | 14\u00a0734 |
Different tax rates applied in foreign jurisdictions | 6 | (573) |
Tax income at effective tax rate | (6\u00a0998) | (7\u00a0035) |
Effective tax rate | 23.3% | 7.8% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 23\u00a0756 | 54\u00a0245 |
Property, plant and equipment | 79 | 4\u00a0544 |
Intangible assets | 1\u00a0492 | (11\u00a0413) |
Receivable | (123) | 91 |
Other provisions | 316 | 0 |
Leases | 105 | 110 |
Deferred tax on intangible assets from business combinations | 3\u00a0141 | (857) |
Tax losses carried forward, not recognised | (17\u00a0556) | (44\u00a0989) |
Deferred taxes, net | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, recognised | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, not recognised | 17\u00a0556 | 44\u00a0989 |
NOK thousand | 2023 | 2022 |
Reconciliation to balance sheet | ||
Deferred tax assets | 18\u00a0998 | 12\u00a0322 |
Deferred tax liabilities | (7\u00a0786) | (10\u00a0590) |
Net Deferred tax assets (liabilities) | 11\u00a0212 | 1\u00a0732 |
Note 13\tEarnings per share
Basic earnings per share (EPS) are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in Issue during the year according to the following number of outstanding shares.
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
31 December 2022 | 690\u00a0573\u00a0217 | 193\u00a0360\u00a0501 |
Capital issue, February | 3 | 1 |
Reverse share split (10:1), March | (621\u00a0515\u00a0898) | |
Capital issue, December | 514\u00a0884 | 1\u00a0441\u00a0675 |
31 December 2023 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
Diluted EPS amounts are calculated by dividing the profit attributable to ordinary equity holders of the Company by weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be Issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the Income and share data used in the basic and diluted EPS calculations:
NOK | 2023 | 2022 |
Net profit/(loss) to equity holders | (23\u00a0052\u00a0518) | (83\u00a0393\u00a0192) |
Total | (23\u00a0052\u00a0518) | (83\u00a0393\u00a0192) |
Number of shares (in thousands) | ||
Weighted average number of ordinary shares | 69\u00a0057\u00a0322 | 658\u00a0988\u00a0513 |
Effects of dilution, weighted average | 371\u00a0097 | 5\u00a0663\u00a0984 |
Weighted average number of shares, adjusted for effects of dilution | 69\u00a0428\u00a0419 | 664\u00a0652\u00a0497 |
Basic earnings per share | (0.33) | (0.13) |
Diluted earnings per share | (0.33) | (0.13) |
In 2023, part of the share consideration for Integra was still outstanding. This was settled during 2024.
Effects of dilution
NOK | 2023 | 2022 |
Share consideration outstanding Integra | 371\u00a0097 | 5\u00a0663\u00a0984 |
Note 14\tGoodwill and impairment
Goodwill recognised in the consolidated financial position are mainly derived from excess value following the acquisitions of Instidata AS in 2019, Facil AS, Microsky AS and Innit AS in 2020 and Maksit AS, Qualisoft AS, IB Group and Integra Ass. Ltd in 2021. Recognised goodwill amounts to NOK 206.5m as of 31 December 2023 (NOK 204.6m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 31.8 million as per 31 December 2023 (NOK 45.3m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortized, ref Note10.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually, and when there are indications of impairment. There were no impairment indications in the impairment test 2023 where recoverable amounts exceeded the balance sheet amounts, thus no impairment has been done in 2023.
The recoverable amount for each CGU has been determined by estimating their Value in Use (VIU) and comparing that to the carrying amount of the specific CGU. The calculation of VIU has been based on estimates, reflecting the Group\u2019s financial planning process. The discount rates are derived as the weighted average cost of capital (WACC) for a similar business in the same business environment.
Goodwill has been allocated for impairment testing purposes to the CGUs below.
2023
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 18\u00a0983 | 0 | 0 | 0 | 18\u00a0983 |
Italy | 0 | 0 | 4\u00a0489 | 0 | 0 | 4\u00a0489 |
Total | 56\u00a0622 | 54\u00a0568 | 4\u00a0489 | 24\u00a0416 | 66\u00a0361 | 206\u00a0457 |
2022
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 17\u00a0398 | 0 | 0 | 0 | 17\u00a0398 |
Italy | 0 | 0 | 4\u00a0199 | 0 | 0 | 4\u00a0199 |
Total | 56\u00a0622 | 52\u00a0983 | 4\u00a0199 | 24\u00a0416 | 66\u00a0361 | 204\u00a0581 |
Cash flow projections and assumptions
A five-year forecast of discounted cash flows plus a 2.0% terminal value growth rate was used to determine net present value of the CGU. Discounted cash flows were calculated after tax and applying a WACC after tax.
Key assumptions for the value in use calculations
The basis for the projection of the future cash flows estimated is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents management\u2019s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset. The remaining four years of the forecast period are estimated based on budget and projected performance. The calculation of VIU for the CGU is most of all sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2023 | 2022 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.0% | 4.25% | 3.7% | 3.1% | 3.3% | 4.2% |
Debt risk premium | 3.0% | 3.0% | 3.0% | 6.6% | 6.6% | 6.6% |
Equity risk premium | 4.0% | 4.0% | 4.0% | 5.9% | 5.9% | 5.9% |
Equity Beta | 1.61 | 1.61 | 1.61 | 1.37 | 1.37 | 1.37 |
Cost of equity | 9.4% | 9.4% | 9.4% | 11.2% | 11.2% | 11.2% |
Tax rate | 22% | 19% | 29% | 22% | 19% | 29% |
Credit spread | 3% | 3% | 3% | 3% | 3% | 3% |
After tax cost debt | 4.8% | 4.8% | 4.8% | 7.6% | 7.7% | 8.0% |
Equity weight | 90% | 90% | 90% | 90% | 90% | 90% |
WACC (pre tax) | 15.4% | 14.9% | 17.0% | 17.7% | 17.3% | 23.4% |
WACC (after tax) | 12.0% | 12.1% | 12.1% | 13.8% | 14.0% | 16.6% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2024 and estimates from 2025-2027 and a terminal growth rate of 2%. The average growth rates in the estimate period 2025-2027 for each Business Area is:
2023 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 7% | 8% | 11% | 73% | 15% |
Average Gross profit margin | 12.3% | 8.1% | 11.0% | 91.5% | 15.6% |
Average EBITDA margin | 12% | 11% | 22% | 32% | 22% |
Compared to the same assumptions in 2022 we see a rather significant decline in the growth assumptions. This is explained by the implementation of a new internal policy of using modest growth assumptions as the basis for impairment tests. This, however, must not be seen in conjunction with the company\u2019s expectations for future growth.
2022 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 16.0% | 9.0% | 0.0% | 196.0% | 16.0% |
Average EBITDA margin | 7.0% | 15.0% | 18.0% | 41.0% | 19.0% |
1The restructuring and sales of IP in the Marine CGU from 2022 to 2023 effect the average growth rates
2CGU Hospitality will until Q2 2023 go from a start up to become a mature profit making unit, thus impact on the growth rates seems unnatural
Sensitivity
At 31 December 2023, the Group\u2019s value in use for each CGU was higher than the carrying amount of tested goodwill with indefinite useful life and intangible assets.
The calculation is most sensitive to changes in EBITDA and gross profit (GP) margins. No reasonably likely change in the key assumptions listed above would cause the carrying value to materially exceed the recov-erable amount for any of the CGUs. The headroom on the most significant CGUs varied from 25% - 170%.
Note 15\tBusiness Combinations
During 2022 or 2023, Arribatec did not acquire any shares in companies. During 2021, Arribatec acquired shares in the companies mentioned below and consequently controls the subsidiaries from the date of acquisition. In the purchase price allocations (PPA), the assets and liabilities of the companies have been measured at the estimated fair value on the acquisition date.
The purchase price allocation identified fair value adjustments on Intangible assets like customer relations and software and deferred tax liabilities/assets. The residual value of the purchase price alloca-tion is allocated to goodwill.
Arribatec acquired five companies during 2021 within IT and operation technology. The acquisitions are carried out in line with Arribatec \u0301s strategy.
The labor force and \u201cgoing concern\u2019\u2019 elements are the main part of the acquired excess value and has been allocated to goodwill in accord-ance with IFRS 3. Goodwill in relation to the acquisition is related to different CGU\u2019s as according to Note14.
Note 16\tInvestment in subsidiaries
Subsidiary | Owning entity | Ownership | Year of acquisition/foundation | Head office |
Arribatec Group ASA | 100% | 2015 | Oslo | |
Arribatec Norge AS | Arribatec Group ASA | 100% | 2017 | Oslo |
Arribatec Hospitality AS | Arribatec Group ASA | 100% | 2019 | Oslo |
Arribatec Cloud AS | Arribatec Group ASA | 100% | 2020 | Oslo |
Arribatec EA & BPM AS | Arribatec Group ASA | 100% | 2021 | Oslo |
Arribatec Sverige AB | Arribatec Group ASA | 100% | 2016 | Stockholm |
Arribatec Denmark ApS | Arribatec Group ASA | 100% | 2015 | Copenhagen |
Arribatec Innovation Sp. z o.o. | Arribatec Group ASA | 100% | 2018 | Wroclaw |
Arribatec Belgium NV | Arribatec Group ASA | 100% | 2018 | Vosselaar |
Arribatec Italy S.r.l. | Arribatec Group ASA | 100% | 2018 | Pontinia |
Arribatec Iberia SL | Arribatec Group ASA | 100% | 2017 | Granada |
Arribatec Americas Inc | Arribatec Denmark ApS | 100% | 2018 | Colorado |
Arribatec Hospitality LLC | Arribatec Americas Inc | 100% | 2018 | Colorado |
IB S.r.l. | Arribatec Italy S.r.l. | 100% | 2021 | Rapallo |
IB Cyprus LTD | IB S.r.l. | 100% | 2021 | Limassol |
IB USA Inc | IB S.r.l. | 100% | 2021 | Florida |
Arribatec Solutions UK LTD | Arribatec Group ASA | 100% | 2018 | Closed |
Arribatec UK Ltd (former Integra Ass. Ltd) | Arribatec Group ASA | 100% | 2021 | Leicester |
Infoship GmbH | IB Cyprus LTD | 100% | 2021 | Dormant |
Arribatec France Sarl | Arribatec Group ASA | 100% | 2021 | Levallois-Perret |
Arribatec Solutions Pte. LTD | Arribatec Group ASA | 100% | 2021 | Singapore |
All entities listed are included in the consolidated financial statements of Arribatec Group ASA.
Arribatec Group ASA hold direct ownership of most entities. Arribatec Americas INC and Arribatec Americas LLC are both subsidiaries of Arribatec Denmark Aps. The IB Group is owned by Arribatec Italy S.r.l.
Note 17\tOther non-current assets
NOK thousand | 2023 | 2022 |
Investment in shares | 60 | 60 |
Deposits | 3\u00a0929 | 5\u00a0263 |
Total other non-current assets | 3\u00a0989 | 5\u00a0323 |
Deposits are mainly deposits in relation to office rental agreements.
Note 18\tAccount receivable
NOK thousand | Current | 0-30 days | 31-60 days | 61-90 days | 90+days | Total | whereof estimated credit losses |
Ageing, Accounts receivable | |||||||
2023 | 45\u00a0192 | 33\u00a0769 | 5\u00a0533 | 2\u00a0795 | 3\u00a0608 | 90\u00a0898 | (4\u00a0230) |
2022 | 60\u00a0600 | 17\u00a0022 | 5\u00a0200 | 2\u00a0984 | 2\u00a0409 | 88\u00a0214 | (2\u00a0994) |
Provision for Expected Credit Losses (ECL) is included with NOK 4.2m (NOK 3.0m). The provision is based on a valuation per subsidiary at year end based on general assumptions as well as agreements with customers and payments made in the next year. Account receivables are non-interest bearing.
Expensed credit loss in 2023 was NOK 0.1m (0.1m)
Credit risk
Credit risks are the risks that counterpart will not meet its obligations under a financial contract or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities, primarily related to cash and cash equivalents, trade receivables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pays for software and services under a software-as-a-service (SaaS) arrangements, where the customer in general pays a lump sum for the initial software integration and implementation, and subsequently only pays for services related to maintenance and consulting services. Although the Group has opted for this model to ensure some predict-able long-term income the Group is dependent on its customers having the ability and/or willingness to pay for the software and services already provided or to be provided.
Customer credit risk is managed subject to established policies, procedures and controls relating to customer credit risk management. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
The Company manage the credit risk by working closely with the customers.
Accounts and other receivable
Accounts receivable and other receivables are initially recognized at fair value and are subsequently measured at amortized cost, less provision for expected credit losses.
Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
Note 20\tOther current assets
NOK thousand | 2023 | 2022 |
Government receivables | 1\u00a0978 | 4\u00a0317 |
Prepaid cost\u200c1 | 10\u00a0539 | 13\u00a0648 |
Other current assets | 750 | 1\u00a0647 |
Total other current assets | 13\u00a0267 | 19\u00a0612 |
1Prepaid cost mainly consist of advances paid for software, rent and insurance
Note 21\tContract assets and liabilities
Consulting services
Arribatec provides implementation and integration services under consulting contracts with customers. Most contracts have a pricing structure where Arribatec agrees to implement and integrate software for a fixed hourly rate agreed upon in the contract, but where the number of hours to be delivered is not specified in the contract.
Arribatec\u2019s performance obligation is satisfied over time because the consulting services do not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is recognised over time, normally according to the invoiced hours for the period. A contract asset is recognised when the company has an unconditional right to payment. A contract liability is recognised when invoicing is done in advance compared to revenue recognition.
From time-to-time Arribatec has a fixed price consulting contract. In the same manner as for the contract with variable hours, the asset created does not have an alternative use for Arribatec and Arribatec has an enforceable right to payment in line with progress in the project. Arribatec recognises revenue over time, in line with progress in the project. Progress is estimated as hours spent at the balance sheet date divided with estimated total hours in the project. This requires estimating the remaining hours to complete.
Contract assets
Contract assets are recognised for performance obligations satis-fied over time, mainly from installation services and projects where progress is measured over time. When the consideration becomes unconditional the contract assets are reclassified to accounts receiv-able, which attributes the main changes to the contract assets in the periods.
Contract assets will typically occur in Saas projects where the customer pays a fixed annual or monthly fee over 3-5 years. In such cases revenue is recognised at the time where performance obliga-tions are met and registered as contract assets on the balance sheet. A reclassification to accounts receivable is done when the customer is invoiced.
NOK thousand | 2023 | 2022 |
As of 1 January | 16\u00a0276 | 19\u00a0549 |
Performance obligations met | 42\u00a0789 | 36\u00a0572 |
Reclassified to receivables | (35\u00a0305) | (40\u00a0272) |
Translation difference | 484 | 427 |
Total contract assets | 24\u00a0244 | 16\u00a0276 |
It is expected that 93% of the above contract assets will be reclassi-fied to receivables in 2024, 5% in 2025 followed by 2% in 2026.
The expected credit losses on Contracts assets are considered immaterial as the contracts are mainly with governmental parties and therefore secured Contracts are subject to valuation of credit losses in the same way as Account receivables.
Contract liabilities
Contract liabilities relate to consideration received in advance of performance under revenue contracts with customers. Revenue is recognised as (or when) the Group fulfils its performance obligation(s) under the contracts. Contract liabilities are presented in the table below:
NOK thousand | 2023 | 2022 |
As of 1 January | 16\u00a0476 | 21\u00a0483 |
Deferred revenue | 101\u00a0264 | 68\u00a0627 |
Recognised as revenue in P&L | (94\u00a0227) | (73\u00a0811) |
Translation difference | 806 | 177 |
Total contract liabilities | 24\u00a0319 | 16\u00a0476 |
Contract liabilities are mainly invoiced to customers in advance and relating to 2024. All liabilities per 1 January was recognised as revenue in P&L during the year.
Note 22\tInventory
Inventories are recognised at the lower of cost and net realisable value. The cost is arrived at using the FIFO method and includes the costs incurred in acquiring the goods and bringing them to their current state and location.
NOK thousand | 2023 | 2022 |
Hardware for resale | 1\u00a0548 | 900 |
Licenses for resale | 0 | 2\u00a0877 |
Total inventory | 1\u00a0548 | 3\u00a0777 |
Note 23\tCash and cash equivalents
NOK thousand | 2023 | 2022 |
Cash, free | 27\u00a0260 | 26\u00a0956 |
Cash, restricted | 12\u00a0111 | 13\u00a0492 |
Total cash and cash equivalents | 39\u00a0371 | 40\u00a0449 |
Restricted cash consists of rental deposits and tax accounts.
Liquidity risk
Liquidity risk is the potential loss of the Group\u2019s inability to meet its contractual obligations when due. The Group monitors its risk of a shortage of funds using cash flow forecasts. The Group had cash and cash equivalents of NOK 39.4m on 31 December 2023 (2022: NOK 40.4m).
The following table details the Group\u2019s remaining contractual matu-rity for its non-derivative financial liabilities with agreed repayment periods. The tables have been set up based on the undiscounted cash flows of financial liabilities based on the most likely first date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are a floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual matu-rity is based on the earliest date on which the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
NOK thousand | -6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans (including interest) | 33\u00a0709 | 4\u00a0880 | 1\u00a0875 | 3\u00a0723 | 600 | 44\u00a0788 |
Provisions | 0 | 0 | 2\u00a0254 | 1\u00a0270 | 7\u00a0160 | 10\u00a0685 |
Accounts payable | 39\u00a0816 | 0 | 0 | 0 | 0 | 39\u00a0816 |
Lease liabilities | 6\u00a0805 | 6\u00a0805 | 9\u00a0421 | 5\u00a0344 | 2\u00a0610 | 30\u00a0984 |
Other current liabilities | 42\u00a0432 | 41\u00a0437 | 0 | 0 | 0 | 83\u00a0869 |
Total | 122\u00a0762 | 53\u00a0122 | 13\u00a0550 | 10\u00a0337 | 10\u00a0370 | 210\u00a0141 |
The Group closely monitors and follow up the cash situation. During 2022 Arribatec carried out a private placement and a subsequent repair offer that brought in 51.8million. The Group\u2019s cash situation, including proceeds from this capital increase, were minus 3.3 million. Furthermore, 2022 was a year bringing the different acquired units into One Group on common policies, structure and systems, with the intention to realize the synergizes and secure being cash positive.
Financing risk
To support the Group\u2019s growth ambitions, the Group continuously work on securing necessary committed financing and alternative funding sources. Securing non-current financing at competitive terms is a major part of the Group\u2019s long-term liquidity planning. Management continuously monitors financing risk, different funding related to revolving facilities, to minimize financing risk.
Capital management
The primary objective of the Group\u2019s capital management is to ensure the Group maintains a solid capital structure enabling it to develop and build its business to maximize shareholder value. The Group\u2019s objective is to maintain a balance of financial assets that reflects the cash requirement of its operations and investments for the next twelve months. The group defines a solid capital structure as balanced ration between debt and equity. No change was made in the objectives, policies, or process for managing capital during the year ended 31 December 2023.
Note 24\tShares
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
1 January 2020 | 16\u00a0077\u00a0403 | 16\u00a0077\u00a0403 |
Capital issue, Jan | 7\u00a0164\u00a0688 | 7\u00a0164\u00a0688 |
Capital issue, Mar | 41\u00a0666\u00a0666 | 41\u00a0666\u00a0666 |
Capital issue, Mar | 25\u00a0000\u00a0000 | 25\u00a0000\u00a0000 |
Capital decrease, Nov | (64\u00a0734\u00a0305) | |
New shares, Oct | 235\u00a0819\u00a0574 | 66\u00a0029\u00a0481 |
Share issue, repair offer, Nov | 32\u00a0855\u00a0000 | 9\u00a0199\u00a0400 |
Share issue, employee offer, Nov | 10\u00a0000\u00a0000 | 2\u00a0800\u00a0000 |
Share issue, private placement, Dec | 50\u00a0000\u00a0000 | 14\u00a0000\u00a0000 |
1 January 2021 | 418\u00a0583\u00a0331 | 117\u00a0203\u00a0333 |
Capital issue in relation to acq. of Facil, Jan | 12\u00a0423\u00a0200 | 3\u00a0478\u00a0496 |
Capital issue in relation to acq. of Microsky, Feb | 3\u00a0499\u00a0998 | 979\u00a0999 |
Capital issue in relation to acq. of Innit, Mar | 5\u00a0606\u00a0400 | 1\u00a0569\u00a0792 |
Capital issue in relation to acq. of Qualisoft, May | 15\u00a0000\u00a0000 | 4\u00a0200\u00a0000 |
Capital issue in relation to acq. of Maksit, Aug | 5\u00a0000\u00a0000 | 1\u00a0400\u00a0000 |
Capital issue in relation to merger with Arribatec AS, Sep | 124\u00a0790\u00a0135 | 34\u00a0941\u00a0238 |
31 December 2021 | 584\u00a0903\u00a0064 | 163\u00a0772\u00a0858 |
Capital issue, April | 100\u00a0000\u00a0000 | 28\u00a0000\u00a0000 |
Share issue, repair offer, July | 3\u00a0625\u00a0153 | 1\u00a0015\u00a0043 |
Capital issue in relation to acq. of Integra, Nov | 2\u00a0045\u00a0000 | 572\u00a0600 |
31 December 2022 | 690\u00a0573\u00a0217 | 193\u00a0360\u00a0501 |
Capital issue, February | 3 | 1 |
Reverse share split (10:1), March | (621\u00a0515\u00a0898) | |
Capital issue, December | 514\u00a0884 | 1\u00a0441\u00a0675 |
31 December 2023 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
Each share has the same rights and has a par value of NOK 2.80 (0.28 prior to the reverse share split in March).
20 largest shareholders at 31 Dec 2023
Holding | Stake | |
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% |
TITAN VENTURE AS | 2\u00a0988\u00a0661 | 4.3% |
DALLAS ASSET MANAGEMENT AS | 2\u00a0467\u00a0200 | 3.5% |
JOAR AARENES | 2\u00a0411\u00a0185 | 3.5% |
ARRIBA INVEST AS | 2\u00a0290\u00a0500 | 3.3% |
SRK CONSULTING AS | 1\u00a0780\u00a0947 | 2.6% |
ERIK SKAAR OPDAL | 1\u00a0695\u00a0200 | 2.4% |
Nordnet Bank AB | 1\u00a0653\u00a0270 | 2.4% |
TRUDE HALVORSEN | 1\u00a0079\u00a0789 | 1.6% |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% |
EXCESSION AS | 900\u00a0000 | 1.3% |
DATUM AS | 854\u00a0291 | 1.2% |
MIDDELBOE AS | 739\u00a0662 | 1.1% |
KRISTIAN FALNES AS | 654\u00a0592 | 0.9% |
Danske Bank A/S | 602\u00a0331 | 0.9% |
LARS HUGO BRAADLAND OLSEN | 574\u00a0850 | 0.8% |
LCS AS | 551\u00a0801 | 0.8% |
JAN ARNE CHRISTENSEN | 524\u00a0675 | 0.8% |
NORDLYS TRADING AS | 450\u00a0000 | 0.6% |
VALSET INVEST AS | 450\u00a0000 | 0.6% |
Total 20 largest shareholders | 40\u00a0379\u00a0705 | 58.0% |
Other shareholders | 29\u00a0192\u00a0501 | 42.0% |
Total | 69\u00a0572\u00a0206 | 100.0% |
Shares held by related parties
Holding | Stake | ||
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% | Related to \u00d8ystein S. Spetalen, Member of the Board in Arribatec Group ASA |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% | Related to Martin Nes, Chairman of the Board in Arribatec Group ASA |
FINANCE RESOURCES GJ AS | 360\u00a0609 | 0.5% | Related to Geir Johansen, CEO of Arribatec Group ASA |
TERJE MJ\u00d8S HOLDING AS | 150\u00a0000 | 0.2% | Related to Terje Mj\u00f8s, Member of the Board in Arribatec Group ASA |
KJ\u00d8LVIK INVEST AS | 58\u00a0334 | 0.1% | Related to Ole-Jakob Kj\u00f8lvik, COO of Arribatec Group ASA |
SICUBI AS | 24\u00a0072 | 0.0% | Related to Bente Brocks, CFO (interim) of Arribatec Group ASA |
HELLEBUST, KRISTIN | 22\u00a0728 | 0.0% | Related to Kristin Hellebust, Member of the Board in Arribatec Group ASA |
Note 25\tLong term incentive plan
During 2023, a long-term incentive plan in the form of a share-based remuneration program has been launched within Arribatec, with the intention to incentivize and retain key employees.
The program is an equity-settled option plan where one option gives the right to acquire one share in Arribatec Group ASA on the exercise date. There is no cash settlement for the employee at the grant date.
No shares have yet been vested through the program. The shares currently held by certain members of management or other employees were acquired at market conditions.
Measurement of fair values
The Black-Scholes-Merton Option Pricing Model is used for valuing the share options. The measure of the expected volatility in the option pricing model has been calculated as the annualized standard deviation of the continuously compounded rates of return on the share over a period of time.
The options are vested over a period of three years and the employee continues to be employed by the group.
Total costs and Social Security Provisions
NOK thousand | |
Total IFRS cost 2023 | 619\u00a0924 |
Total Social security provisions 2023 | 0 |
Total costs and Social Security Provisions
Instrument | Option |
Quantity 31.12.2023 (instruments) | 3\u00a0303\u00a0240 |
Quantity 31.12.2023 (shares) | 3\u00a0303\u00a0240 |
Contractual life\u200c1 | 5.00 |
Strike price\u200c1 | 5.25 |
Share price\u200c1 | 4.63 |
Expected lifetime\u200c1 | 3.00 |
Volatility\u200c1 | 65.66% |
Interest rate\u200c1 | 3\u00a0965% |
Dividend\u200c1 | 0.00 |
FV per instrument\u200c1 | 1.97 |
1Weighted average parameters at grant of instrument
Outstanding instruments Year End - Option
Quantity and weighted average prices | 01.01.2023 - 31.12.2023 | |
Activity | Number of instruments | Weighted Average Strike Price |
Outstanding OB (01.01.2023) | 0 | 0.00 |
Granted | 3\u00a0303\u00a0240 | 5.25 |
Exercised | 0 | 0.00 |
Released | 0 | 0.00 |
Adjusted | 0 | 0.00 |
Performance Adjusted | 0 | 0.00 |
Cancelled | 0 | 0.00 |
Terminated | 0 | 0.00 |
Expired | 0 | 0.00 |
Outstanding CB (31.12.2023) | 3\u00a0303\u00a0240 | 5.25 |
Vested CB | 0 | 0.00 |
Outstanding Instruments Overview
Outstanding Instruments | Vested Instruments | ||||
Strike price | Number of instruments | ||||
Weighted Average remaining contractual life | Weighted Average Strike Price | Vested instruments 31.12.2023 | Weighted Average Strike Price | ||
5.00 | 1\u00a0101\u00a0077 | 4.84 | 5.00 | 0.00 | 0.00 |
5.25 | 1\u00a0101\u00a0081 | 4.84 | 5.25 | 0.00 | 0.00 |
5.50 | 1\u00a0101\u00a0082 | 4.84 | 5.50 | 0.00 | 0.00 |
3\u00a0303\u00a0240 |
Note 26\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2023 | 31 Dec 2022 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2024 | 19\u00a0458 | 6\u00a0750 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 19 | 244 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 7\u00a0896 | 8\u00a0411 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 3\u00a0671 | 5\u00a0759 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 5\u00a0681 | 6\u00a0863 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0663 | 3\u00a0154 | |
Italian banks, ref above | Revolving credit facility | EUR | 1.0-4.75% | 2023 | 0 | 29 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 39\u00a0388 | 31\u00a0211 |
Credit facilities | Other borrowings | Total | |
Balance at 1 Jan 2022 | 9\u00a0030 | 28\u00a0394 | 37\u00a0425 |
Proceeds from loans and borrowings | 4\u00a0067 | 0 | 4\u00a0067 |
Repayment of loans and borrowings | (6\u00a0499) | (5\u00a0464) | (11\u00a0963) |
Total changes in financial cashflow | (2\u00a0432) | (5\u00a0464) | (7\u00a0896) |
Translation difference | 181 | 1\u00a0501 | 1\u00a0682 |
Balance at 1 Jan 2023 | 6\u00a0779 | 24\u00a0431 | 31\u00a0211 |
Proceeds from loans and borrowings | 19\u00a0686 | 0 | 19\u00a0686 |
Repayment of loans and borrowings | (7\u00a0009) | (6\u00a0173) | (13\u00a0183) |
Total changes in financial cashflow | 12\u00a0677 | (6\u00a0173) | 6\u00a0504 |
Translation difference | 2 | 1\u00a0672 | 1\u00a0674 |
Total Borrowings at end of period | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Interest bearing loans and other financial liabilities
The Group\u2019s debt and other financial liabilities are initially recognised at fair value, including transaction costs directly attributable to the transaction, and are subsequently measured at amortized cost.
Note 27\tPensions
Arribatec group meets the different local mandatory occupational pension requirement.
Arribatec operates defined contribution retirement benefit plans for all qualifying employees of its subsidi-aries in Norway, Sweden and Denmark. The only obligation of the group with respect to retirement benefit plan is to make the specified contributions.
The employees of other subsidiaries are members of a state managed retirement benefit plan operated by the government. The subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits.
Note 28\tProvisions
NOK thousand | 2023 | 2022 |
Severance indemnity funds in Italy | 8\u00a0145 | 10\u00a0364 |
Other provisions | 2\u00a0540 | 3\u00a0838 |
Total provision | 10\u00a0685 | 14\u00a0202 |
Severance funds in Italy relates to a monthly accrual for severance pay for all employees. The funds are paid to the employee when they leave the company. Per 31.12.2023, all funds estimated as long term (2-4+ years).
Provisions and contingent liabilities
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Restructuring provisions are recognised only when the recognition criteria for provisions are fulfilled. The Group has a constructive obligation when a detailed formal plan identifies the activities concerned, the location and number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline. Furthermore, the employees affected have been notified of the plan\u2019s main features.
Note 29\tOther current liabilities
NOK thousand | 2023 | 2022 |
Employer tax and employee withholding tax | 24\u00a0302 | 22\u00a0700 |
Accrued holiday payments and bonuses | 30\u00a0640 | 31\u00a0987 |
VAT liabilities | 9\u00a0632 | 10\u00a0121 |
Remaining part of acq.price, Integra | 7\u00a0441 | 8\u00a0569 |
Other short term liabilities | 11\u00a0855 | 10\u00a0591 |
Total other current liabilities | 83\u00a0869 | 83\u00a0969 |
Trade and other payables
Accounts receivable and other receivables are initially recognized at the transaction price and are subse-quently carried at recognized cost, less provision for expected credit losses. For Arribatec, the main part of accounts payable consists of annual fees for the following year from software providers.
Note 30\tTransactions with related parties
During 2022 and 2023, rent for office in UK is paid to MDB & Sons Ltd, a company related to the CEO of Arribatec UK Ltd (former Integra Associated Ltd).
NOK thousand | 2023 | 2022 |
Transactions with related parties | ||
MDB & Sons Ltd - office rental, Leicester | 481 | 402 |
Total Related parties transactions | 481 | 402 |
Note 31\tPledged assets
The Group have no pledged assets.
Note 32\tSubsequent events
There have been no subsequent events since 31.12.2023.
Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries, together called \u201cthe Group\u201d have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS), relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated finan-cial accounts are presented in NOK.
All presented figures in this interim report have been rounded and consequently, the sum of individual figures can deviate from the presented total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f16844": { "value": "Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries, together called \u201cthe Group\u201d have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS), relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated finan-cial accounts are presented in NOK.
All presented figures in this interim report have been rounded and consequently, the sum of individual figures can deviate from the presented total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f16845": { "value": "Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries, together called \u201cthe Group\u201d have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS), relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated finan-cial accounts are presented in NOK.
All presented figures in this interim report have been rounded and consequently, the sum of individual figures can deviate from the presented total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s8_notes__7__19-1": { "value": "Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries, together called \u201cthe Group\u201d have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS), relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated finan-cial accounts are presented in NOK.
All presented figures in this interim report have been rounded and consequently, the sum of individual figures can deviate from the presented total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern.
Note 3\tSegment
The market for Arribatec\u2019s Software and services are global. The chief decision maker will follow up revenue and profitability on a global basis, segmented into the Business Areas. This is consistent with the internal reporting submitted to the chief operating decision maker, defined as the Management Group. The Management Group is responsible for allocating resources and assessing performance as well as making strategic decisions. Principles of revenue recognition are stated in this note.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customizing, maintaining and supporting the entire business landscape, with ERP as the core engine. We integrate it with other market leading systems
that provide better operational support and insight than a single ERP system does.
EA & BPMprovides Enterprise Architecture and Business Process Management. Arribatec EA&BPM delivers solutions and long-term services within the spaces of business process management, enter-prise architecture and corporate governance to major Norwegian and Nordic customers, both in the private and public sector.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk and GDPR. Arribatec Cloud provides consulting, outsourcing and cloud services to private and public enterprises. In addition to offering market leading cloud services from Microsoft and Google, Arribatec Cloud also operates its own public cloud offering based on Norwegian data centers to accommodate special use cases for our customers.
Hospitalitydelivers solutions for self-check-in/check-out and payments for the hospitality industry.
Marinefocus on the Maritime sector. BA Marine\u2019s competencies are the development, implementation, and consulting of the owned asset management system solutions: Infoship.
2023
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 294\u00a0258 | 111\u00a0010 | 127\u00a0016 | 10\u00a0903 | 47\u00a0645 | 662 | (18\u00a0514) | 572\u00a0981 |
Materials, software and services | (56\u00a0402) | (24\u00a0170) | (61\u00a0136) | (4\u00a0318) | (3\u00a0075) | (1\u00a0989) | 18\u00a0418 | (132\u00a0673) |
Gross margin | 237\u00a0856 | 86\u00a0840 | 65\u00a0880 | 6\u00a0585 | 44\u00a0570 | (1\u00a0327) | (96) | 440\u00a0308 |
Salary and personnel costs | (190\u00a0084) | (59\u00a0394) | (43\u00a0950) | (4\u00a0400) | (23\u00a0939) | (24\u00a0841) | 0 | (346\u00a0608) |
Other operating expenses | (18\u00a0170) | (5\u00a0832) | (12\u00a0732) | (5\u00a0518) | (6\u00a0942) | (20\u00a0139) | 96 | (69\u00a0236) |
Total operating expenses | (208\u00a0254) | (65\u00a0227) | (56\u00a0682) | (9\u00a0918) | (30\u00a0882) | (44\u00a0980) | 96 | (415\u00a0845) |
EBITDA | 29\u00a0602 | 21\u00a0614 | 9\u00a0198 | (3\u00a0333) | 13\u00a0689 | (46\u00a0307) | 0 | 24\u00a0463 |
Depreciation, amortisarion and impairment | (19\u00a0563) | (6\u00a0557) | (7\u00a0802) | (3\u00a0533) | (7\u00a0211) | (3\u00a0642) | 0 | (48\u00a0307) |
EBIT | 10\u00a0039 | 15\u00a0057 | 1\u00a0396 | (6\u00a0866) | 6\u00a0478 | (49\u00a0949) | 0 | (23\u00a0844) |
Gross margin % | 80.8% | 78.2% | 51.9% | 60.4% | 93.5% | na | na | 76.8% |
EBITDA % | 10.1% | 19.5% | 7.2% | (30.6%) | 28.7% | na | na | 4.3% |
EBIT % | 3.4% | 13.6% | 1.1% | (63.0%) | 13.6% | na | na | (4.2%) |
2022
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 291\u00a0362 | 89\u00a0789 | 113\u00a0726 | 3\u00a0642 | 47\u00a0066 | 1\u00a0166 | (41\u00a0781) | 504\u00a0968 |
Materials, software and services | (64\u00a0177) | (19\u00a0812) | (48\u00a0862) | 1\u00a0948 | (6\u00a0365) | (17\u00a0561) | 39\u00a0794 | (115\u00a0035) |
Gross margin | 227\u00a0185 | 69\u00a0977 | 64\u00a0864 | 5\u00a0590 | 40\u00a0701 | (16\u00a0395) | (1\u00a0988) | 389\u00a0934 |
Salary and personnel costs | (177\u00a0970) | (52\u00a0108) | (41\u00a0291) | (10\u00a0192) | (39\u00a0066) | (18\u00a0172) | 0 | (338\u00a0800) |
Other operating expenses | (21\u00a0768) | (5\u00a0437) | (22\u00a0031) | (3\u00a0678) | (11\u00a0702) | (22\u00a0613) | 1\u00a0988 | (85\u00a0241) |
Total operating expenses | (199\u00a0739) | (57\u00a0545) | (63\u00a0322) | (13\u00a0870) | (50\u00a0768) | (40\u00a0785) | 1\u00a0988 | (424\u00a0041) |
EBITDA | 27\u00a0446 | 12\u00a0432 | 1\u00a0542 | (8\u00a0280) | (10\u00a0067) | (57\u00a0180) | 0 | (34\u00a0107) |
Depreciation, amortisation and impairment | (15\u00a0110) | (5\u00a0707) | (7\u00a0116) | (2\u00a0762) | (14\u00a0696) | (10\u00a0842) | 0 | (56\u00a0232) |
EBIT | 12\u00a0336 | 6\u00a0725 | (5\u00a0573) | (11\u00a0042) | (24\u00a0764) | (68\u00a0022) | 0 | (90\u00a0339) |
Gross margin % | 78.0% | 77.9% | 57.0% | 153.5% | 86.5% | na | na | 77.2% |
EBITDA % | 9.4% | 13.8% | 1.4% | (227.4%) | (21.4%) | na | na | (6.8%) |
EBIT % | 4.2% | 7.5% | (4.9%) | (303.2%) | (52.6%) | na | na | (17.9%) |
Consulting services
Consulting services mainly come from time and material projects. The revenue is recognised as revenue as they are delivered to the customer every month. A receivable is recognised at the time of invoicing as this is the point in time when the right to consideration becomes unconditional.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the obligations of the company to provide those rights. IFRS 15 distinguishes between whether the license provides a\u201d right to use\u201d or a \u201cright to access\u201d IP. This impacts the timing of revenue recognition.
In most cases, the sale of licenses is part of SaaS contracts. Arribatec in some instances has contracts that include the sale of licenses only. Arribatec has analyzed its (partner) licensing contracts and concluded that it controls the license before it is transferred to the customer since Arribatec has legal ownership, physical possession, and the risk and reward of ownership before being transferred to the customer. Arribatec is therefore the principal in the customer contract.
When Arribatec licenses are distinct on-premises licenses (soft-ware installed on customers\u2019 server), these fall under the category \u201cright-to-use\u201d since the license grants the right to the IP \u201cas is\u201d when delivered. The distinct on-premises licenses pricing model is a one-time fixed fee. Revenue is recognised at the point in time when the customer is provided with the ability to use the software. The fee is recognised as a revenue at the point of time when the customer has received legal title and physical possession, and the customer has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec license cloud-based subscription licenses (\u201cright to access\u201d), the license is not considered distinct from the online/hosting service. Revenue is recognised over time, over the license/contract period, as the customer is receiving and consuming the benefits of access to the cloud-based license on an ongoing basis. The cloud-based subscription licenses are sold for a fixed annual or monthly fee. Revenue is recognised linearly over the subscription time.
Software as a service (SaaS)
Software is provided over time to an end customer from a Data Center managed or contracted by Arribatec. The obligations in the SaaS contract are to offer cloud-based access to the license (owned by Arribatec), maintenance of the utility of the software, including rights to updates and future releases, and in some contracts, provide support.
The customer will purchase and obtain control of the software on a subscription or consumption basis. Revenue is therefore recognised periodically over the life of the SaaS contract.
In some cases, Arribatec has a separate installation and implementation contract regarding the same customer projects. When these contracts are negotiated close in time to each other, Arribatec considers whether the two contracts have been negotiated as a package with a single commercial objective, or not. If this is the case the two contracts are combined. If not, they are accounted for separately.
The implementation and installation services are capable of being distinct and distinct within the context of these contracts. This is concluded based on an analysis of the different deliveries and the performance obligations in the contract. Arribatec has therefore concluded that there are generally two distinct performance obliga-tions in the two combined contracts. When there are two combined contracts, the transaction price is allocated between the two
performance obligations based on relative stand-alone prices that are estimated based on the pricing of each element in the contract like hours, contract length, and options to extend the contract.
Arribatec\u2019s performance obligation under the installation and integra-tion contract is satisfied over time because the consulting services does not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is accordingly recognised over time as the installation and integration is performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premises or from the cloud. Managed services contracts are delivered at a fixed price and a minimum commitment to the customers, on a long-term contract. Additional work above the agreed level is considered normal consulting services.
Arribatec delivers an integrated set of services as defined in the managed service agreement. The customer receives and consumes the benefits from the Managed services as Arribatec performs under the contract. Therefore, the performance obligation is satisfied over time and revenue is recognised over time.
One-time revenue from third party hardware
In some contracts, Arribatec delivers both physical hardware and installation of software on the hardware, e.g. for self-service /check-in kiosks. In such cases, the hardware product is considered as a separate contract obligation that is recognised as revenue when it is installed.
Disaggregation of revenue
In the following table, revenue is disaggregated by primary Business area, geography and recurrence. In presenting the geographic information, revenue has been based on the geographic location of the legal entity. The table shows external revenue.
Full year 2023
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 169\u00a0368 | 174\u00a0273 | 16\u00a0463 | 360\u00a0104 |
Business services | 70\u00a0912 | 51\u00a0921 | 1\u00a0577 | 124\u00a0411 |
EA & BPM | 77\u00a0521 | 29\u00a0439 | 3\u00a0119 | 110\u00a0080 |
Cloud | 16\u00a0716 | 89\u00a0714 | 8\u00a0208 | 114\u00a0638 |
Hospitality | 4\u00a0219 | 3\u00a0207 | 3\u00a0478 | 10\u00a0903 |
Corporate | 0 | (9) | 81 | 72 |
Continental Europe | 86\u00a0016 | 15\u00a0900 | 6\u00a0874 | 108\u00a0790 |
Business services | 67\u00a0762 | 7\u00a0446 | 411 | 75\u00a0619 |
Marine | 18\u00a0254 | 8\u00a0454 | 6\u00a0463 | 33\u00a0171 |
UK | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Business services | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Americas | 31\u00a0167 | 6\u00a0714 | 1\u00a0764 | 39\u00a0645 |
Business services | 24\u00a0496 | 0 | 692 | 25\u00a0188 |
Marine | 6\u00a0670 | 6\u00a0714 | 1\u00a0072 | 14\u00a0456 |
Total revenue | 333\u00a0131 | 214\u00a0177 | 25\u00a0672 | 572\u00a0981 |
Full year 2022
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 140\u00a0157 | 149\u00a0666 | 15\u00a0472 | 305\u00a0295 |
Business services | 65\u00a0425 | 46\u00a0299 | 876 | 112\u00a0601 |
EA & BPM | 59\u00a0512 | 23\u00a0995 | 5\u00a0402 | 88\u00a0909 |
Cloud | 13\u00a0966 | 78\u00a0095 | 8\u00a0170 | 100\u00a0230 |
Hospitality | 1\u00a0253 | 1\u00a0286 | 1\u00a0023 | 3\u00a0562 |
Corporate | 0 | (8) | 0 | (8) |
Continental Europe | 95\u00a0440 | 14\u00a0457 | 5\u00a0262 | 115\u00a0159 |
Business services | 72\u00a0401 | 6\u00a0952 | 247 | 79\u00a0601 |
Marine | 23\u00a0039 | 7\u00a0505 | 5\u00a0015 | 35\u00a0558 |
UK | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Business services | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Americas | 28\u00a0902 | 6\u00a0917 | 728 | 36\u00a0548 |
Business services | 25\u00a0075 | 21 | 236 | 25\u00a0333 |
Marine | 3\u00a0827 | 6\u00a0896 | 492 | 11\u00a0215 |
Total revenue | 298\u00a0454 | 184\u00a0495 | 22\u00a0019 | 504\u00a0968 |
Note 5\tPersonnel
NOK thousand | 2023 | 2022 |
Salaries | (271\u00a0802) | (256\u00a0568) |
Social security tax | (42\u00a0480) | (38\u00a0407) |
Bonuses | (6\u00a0752) | (6\u00a0878) |
Share option cost | (620) | 0 |
Pension costs defined contribution (Note27) | (20\u00a0105) | (19\u00a0337) |
Other personnel cost | (4\u00a0850) | (17\u00a0609) |
Total salaries and personnel expense | (346\u00a0608) | (338\u00a0800) |
Average number of FTEs
2023 | 2022 | |
Number os FTEs, start of year | 353 | 374 |
Number os FTEs, end of year | 329 | 353 |
Average number of FTEs | 341 | 363 |
Gender split, end of year | ||
Male | 215 | 233 |
Female | 114 | 120 |
Number of FTEs, end of year, per country
2023 | 2022 | |
Belgium | 0 | 1 |
Cyprus | 3 | 3 |
Denmark | 1 | 1 |
France | 4 | 2 |
Germany | 0 | 3 |
Italy | 28 | 35 |
Norway | 208 | 204 |
Netherlands | 0 | 1 |
Poland | 0 | 7 |
Singapore | 1 | 2 |
Spain | 25 | 26 |
Sweden | 16 | 22 |
United Kingdom | 33 | 31 |
USA | 11 | 15 |
Total number of FTEs | 329 | 353 |
Pension obligations
The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 2Note 2Note 2Note 27for further description. The group only has defined contribu-tion retirement plans.Note 27for further description. The group only has defined contribu-tion retirement plans.7for further description. The group only has defined contribu-tion retirement plans.
Note 8\tProperty, plant and equipment
Property, plant and equipment are measured at cost in the balance sheet, with a deduction for accumulated depreciation and impairment. Depreciation is made on a straight-line basis over the asset\u2019s estimated useful life, which is assessed on an individual basis, ranging from five to ten years.
2023
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2023 | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Additions | 2\u00a0442 | 147 | 104 | 2\u00a0693 |
Reclassifications | (57) | 0 | 0 | (57) |
Sale | (244) | 0 | (5) | (249) |
Disposals | (1\u00a0246) | (381) | (174) | (1\u00a0800) |
Translation difference | 693 | 162 | 60 | 914 |
Cost, end of period | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Accumulated depreciation at 1 Jan 2023 | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Depreciation during the year | (1\u00a0969) | (739) | (176) | (2\u00a0884) |
Reclassifications | 57 | 0 | 0 | 57 |
Sale | 222 | 0 | 5 | 227 |
Disposals | 1\u00a0202 | 381 | 165 | 1\u00a0747 |
Translation difference | (610) | (71) | (48) | (729) |
Accumulated depreciation, end of period | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Carrying amount at 31 Dec 2023 | 3\u00a0432 | 2\u00a0197 | 808 | 6\u00a0436 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
2022
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2022 | 18\u00a0819 | 3\u00a0572 | 1\u00a0239 | 23\u00a0631 |
Additions | 788 | 1\u00a0147 | 29 | 1\u00a0964 |
Reclassifications | (2\u00a0468) | 267 | 757 | (1\u00a0444) |
Sale | (370) | (14) | (160) | (545) |
Disposals | (426) | - | (117) | (543) |
Translation difference | 442 | 56 | 89 | 587 |
Cost, end of period | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Accumulated depreciation at 1 Jan 2022 | (13\u00a0943) | (1\u00a0463) | (779) | (16\u00a0185) |
Depreciation during the year | (1\u00a0634) | (701) | (170) | (2\u00a0505) |
Reclassifications | 1\u00a0511 | (143) | (145) | 1\u00a0224 |
Sale | 294 | 5 | 132 | 431 |
Disposals | 335 | (0) | 45 | 381 |
Translation difference | (405) | (30) | (43) | (478) |
Accumulated depreciation, end of period | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Carrying amount at 31 Dec 2022 | 2\u00a0942 | 2\u00a0697 | 877 | 6\u00a0517 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
Note 9\tRight-of-use assets and lease liabilities
Right of use assets and Lease liabilities
The Group recognises leasing contracts as Right of use assets and lease liabilities. The exemptions are short term leases (defined as twelve months or loss) and/or low value assets. Contracts not mate-rial to IFRS 16 are expensed in P&L as they occur.
Leases that fulfill the criteria are recognised in balances sheet and the Group recognises the lease payments as other operating expenses in the statement of profit or loss when they incur.
The lease term represents the non-cancellable period of the lease, together with estimated periods where the option to extend or termi-nate contracts when the Group is reasonably certain to exercise this option. This is mainly valid for facility agreements that are about to expire, but there is no plan to change location.
The Group presents its lease liabilities as separate line items in the statement of financial position.
Right-of-use assets
NOK thousand | Buildings | Vehicles | Hardware | Other | Total |
Right-of-use assets per 1 Jan 2022 | 18\u00a0149 | 430 | 3\u00a0139 | 8\u00a0548 | 30\u00a0266 |
Addition of right-of-use assets | 18\u00a0336 | 0 | 37 | 9\u00a0836 | 28\u00a0209 |
Depreciation in the period | (10\u00a0791) | (345) | (1\u00a0561) | (4\u00a0518) | (17\u00a0215) |
Reclassification | 6\u00a0631 | 1 | 191 | (6\u00a0822) | 0 |
Translation difference | 447 | 3 | 9 | 0 | 459 |
Right-of-use assets per 1 Jan 2023 | 32\u00a0773 | 89 | 1\u00a0814 | 7\u00a0043 | 41\u00a0719 |
Addition of right-of-use assets | 4\u00a0740 | 724 | 1\u00a0135 | 270 | 6\u00a0869 |
Correction of initial index regulation, addition part | (1\u00a0372) | 0 | 0 | 0 | (1\u00a0372) |
Depreciation in the period | (13\u00a0320) | (235) | (1\u00a0650) | (3\u00a0458) | (18\u00a0663) |
Correction of initial index regulation, reversal of depr. prev.years | 180 | 0 | 0 | 0 | 180 |
Reclassification between categories | (41) | 41 | 0 | 0 | 0 |
Disposals | (952) | 0 | 0 | 0 | (952) |
Translation difference | 657 | 1 | 1 | 0 | 659 |
Carrying amount of right-of-use assets, end of period | 22\u00a0665 | 620 | 1\u00a0299 | 3\u00a0856 | 28\u00a0442 |
Remaining lease term | 1-5 years | 1-4 years | 1-3 years | 1-3 years | |
Depreciation method | Linear | Linear | Linear | Linear |
Lease liabilities
NOK thousand | 31 Dec 2023 | 31 Dec 2022 |
Undiscounted lease liabilities and maturity of cash outflow | ||
< 1 year | 13\u00a0609 | 17\u00a0782 |
1-2 years | 9\u00a0421 | 12\u00a0435 |
2-3 years | 5\u00a0344 | 8\u00a0306 |
3-4 years | 2\u00a0064 | 4\u00a0811 |
4-5 years | 546 | 1\u00a0566 |
> 5 years | 0 | 621 |
Total undiscounted lease liabilities, end of period | 30\u00a0984 | 45\u00a0521 |
Discount element | (1\u00a0239) | (2\u00a0028) |
Total discounted lease liabilities, end of period | 29\u00a0745 | 43\u00a0492 |
NOK thousand | 2023 | 2022 |
Total lease liabilities, end of period | 29\u00a0745 | 43\u00a0492 |
Lower liabilities at end of 2023 from 2022 is mainly due to some office locations that have been cancelled. The payments made on lease liabilities are presented in the cash flow statement on a separate line.
The interest rate used for discounting the lease liability is based on the same as according to the terms of interest rate from the Group\u2019s internal financing. See Note 11for interest expenses related to leasing contracts.
Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Note 11\tFinancial items and risks
NOK thousand | 2023 | 2022 |
Finance income | ||
Interest income | 563 | 291 |
Realized foreign exchange gains | 2\u00a0149 | 2\u00a0153 |
Net unrealized foreign exchange gains | 381 | 1\u00a0522 |
Other financial income | 115 | 1\u00a0225 |
Total financial income | 3\u00a0208 | 5\u00a0191 |
Finance expenses | ||
Interest on debts and borrowings | (1\u00a0161) | (697) |
Interest expense on lease liabilities | (1\u00a0171) | (1\u00a0236) |
Realized foreign exchange losses | (4\u00a0131) | (1\u00a0998) |
Other financial expenses | (2\u00a0952) | (1\u00a0350) |
Total financial expenses | (9\u00a0414) | (5\u00a0280) |
Net financial items | (6\u00a0206) | (89) |
Financial risk
In Arribatec, risks as currency risk, interest rate risk and other price risk are all factors that could have a negative impact on the ability of the Group to achieve its business objectives. All economic activities are associated with risk. To manage risk in a balanced way, it must first be identified and assessed. Arribatec conducts risk management at both a Group and company level, where risks are evaluated systematically.
The following summary is by no means comprehensive but offers an overview of all material financial risk factors that are considered important for Arribatec\u2019s future development.
Risks associated with changes in economic conditions are managed through regular checks on developments in each country.
Currency risk
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
Note 12\tTax
Arribatec account for current income tax assets and liabilities based on the expected recovery from, or payment to, tax authorities.
The applicable tax rates and laws are those in effect at the end of the reporting period. Additionally, we calculate deferred income tax using the deferred tax method, considering temporary differences between tax bases and carrying amounts of assets and liabilities for financial reporting purposes.
Our policy recognizes deferred income tax liabilities for taxable temporary differences, except when arising from goodwill recognition or non-business combination transactions that do not impact accounting or taxable profit or loss. We also assess deferred tax assets, recognizing them to the extent of probable future taxable profit availability or utilization of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognized assets are reas-sessed at each reporting date. Finally, we offset deferred income tax assets and liabilities only when legally enforceable rights exist to set off tax assets against income tax liabilities within the same taxable entity or taxation authority.
Income tax calculation
The Group\u2019s tax expense is affected by several factors, where the most important are tax losses carried forward, currency effects and local GAAP/IFRS-differences for calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
NOK thousand | 2023 | 2022 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 2\u00a0597 | 889 |
Correction previous year - Norway | (7) | 0 |
Current Income Tax - Other countries | 2\u00a0762 | 1\u00a0539 |
Correction previous year - other countries | (59) | 968 |
Deferred tax | ||
Change in deferred taxes - Norway | (10\u00a0392) | (7\u00a0653) |
Change in deferred taxes - Other countries | (1\u00a0900) | (2\u00a0778) |
Tax income recorded in consolidated statement of Profit & Loss | (6\u00a0998) | (7\u00a0035) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (30\u00a0050) | (90\u00a0428) |
Adjustment of current income tax of previous years | 3 | (50) |
Temporary differences | (2 336) | 690 |
Non deductible expenses | 1\u00a0113 | 37\u00a0375 |
Non-taxable income | (367) | (916) |
Tax base | (31 637) | (53\u00a0331) |
NOK thousand | 2023 | 2022 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 6\u00a0960 | (11\u00a0733) |
Tax previous year | (65) | 968 |
Group contribution with tax effect (tax payable effect) | (2\u00a0576) | 0 |
Group contribution with tax effect (deferred tax effect) | 2\u00a0576 | 0 |
Changes in recognised deferred taxes | (12\u00a0292) | (10\u00a0431) |
Effect from previously unrecognised deferred taxes | (1\u00a0607) | 14\u00a0734 |
Different tax rates applied in foreign jurisdictions | 6 | (573) |
Tax income at effective tax rate | (6\u00a0998) | (7\u00a0035) |
Effective tax rate | 23.3% | 7.8% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 23\u00a0756 | 54\u00a0245 |
Property, plant and equipment | 79 | 4\u00a0544 |
Intangible assets | 1\u00a0492 | (11\u00a0413) |
Receivable | (123) | 91 |
Other provisions | 316 | 0 |
Leases | 105 | 110 |
Deferred tax on intangible assets from business combinations | 3\u00a0141 | (857) |
Tax losses carried forward, not recognised | (17\u00a0556) | (44\u00a0989) |
Deferred taxes, net | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, recognised | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, not recognised | 17\u00a0556 | 44\u00a0989 |
NOK thousand | 2023 | 2022 |
Reconciliation to balance sheet | ||
Deferred tax assets | 18\u00a0998 | 12\u00a0322 |
Deferred tax liabilities | (7\u00a0786) | (10\u00a0590) |
Net Deferred tax assets (liabilities) | 11\u00a0212 | 1\u00a0732 |
Note 14\tGoodwill and impairment
Goodwill recognised in the consolidated financial position are mainly derived from excess value following the acquisitions of Instidata AS in 2019, Facil AS, Microsky AS and Innit AS in 2020 and Maksit AS, Qualisoft AS, IB Group and Integra Ass. Ltd in 2021. Recognised goodwill amounts to NOK 206.5m as of 31 December 2023 (NOK 204.6m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 31.8 million as per 31 December 2023 (NOK 45.3m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortized, ref Note10.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually, and when there are indications of impairment. There were no impairment indications in the impairment test 2023 where recoverable amounts exceeded the balance sheet amounts, thus no impairment has been done in 2023.
The recoverable amount for each CGU has been determined by estimating their Value in Use (VIU) and comparing that to the carrying amount of the specific CGU. The calculation of VIU has been based on estimates, reflecting the Group\u2019s financial planning process. The discount rates are derived as the weighted average cost of capital (WACC) for a similar business in the same business environment.
Goodwill has been allocated for impairment testing purposes to the CGUs below.
2023
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 18\u00a0983 | 0 | 0 | 0 | 18\u00a0983 |
Italy | 0 | 0 | 4\u00a0489 | 0 | 0 | 4\u00a0489 |
Total | 56\u00a0622 | 54\u00a0568 | 4\u00a0489 | 24\u00a0416 | 66\u00a0361 | 206\u00a0457 |
2022
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 17\u00a0398 | 0 | 0 | 0 | 17\u00a0398 |
Italy | 0 | 0 | 4\u00a0199 | 0 | 0 | 4\u00a0199 |
Total | 56\u00a0622 | 52\u00a0983 | 4\u00a0199 | 24\u00a0416 | 66\u00a0361 | 204\u00a0581 |
Cash flow projections and assumptions
A five-year forecast of discounted cash flows plus a 2.0% terminal value growth rate was used to determine net present value of the CGU. Discounted cash flows were calculated after tax and applying a WACC after tax.
Key assumptions for the value in use calculations
The basis for the projection of the future cash flows estimated is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents management\u2019s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset. The remaining four years of the forecast period are estimated based on budget and projected performance. The calculation of VIU for the CGU is most of all sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2023 | 2022 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.0% | 4.25% | 3.7% | 3.1% | 3.3% | 4.2% |
Debt risk premium | 3.0% | 3.0% | 3.0% | 6.6% | 6.6% | 6.6% |
Equity risk premium | 4.0% | 4.0% | 4.0% | 5.9% | 5.9% | 5.9% |
Equity Beta | 1.61 | 1.61 | 1.61 | 1.37 | 1.37 | 1.37 |
Cost of equity | 9.4% | 9.4% | 9.4% | 11.2% | 11.2% | 11.2% |
Tax rate | 22% | 19% | 29% | 22% | 19% | 29% |
Credit spread | 3% | 3% | 3% | 3% | 3% | 3% |
After tax cost debt | 4.8% | 4.8% | 4.8% | 7.6% | 7.7% | 8.0% |
Equity weight | 90% | 90% | 90% | 90% | 90% | 90% |
WACC (pre tax) | 15.4% | 14.9% | 17.0% | 17.7% | 17.3% | 23.4% |
WACC (after tax) | 12.0% | 12.1% | 12.1% | 13.8% | 14.0% | 16.6% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2024 and estimates from 2025-2027 and a terminal growth rate of 2%. The average growth rates in the estimate period 2025-2027 for each Business Area is:
2023 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 7% | 8% | 11% | 73% | 15% |
Average Gross profit margin | 12.3% | 8.1% | 11.0% | 91.5% | 15.6% |
Average EBITDA margin | 12% | 11% | 22% | 32% | 22% |
Compared to the same assumptions in 2022 we see a rather significant decline in the growth assumptions. This is explained by the implementation of a new internal policy of using modest growth assumptions as the basis for impairment tests. This, however, must not be seen in conjunction with the company\u2019s expectations for future growth.
2022 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 16.0% | 9.0% | 0.0% | 196.0% | 16.0% |
Average EBITDA margin | 7.0% | 15.0% | 18.0% | 41.0% | 19.0% |
1The restructuring and sales of IP in the Marine CGU from 2022 to 2023 effect the average growth rates
2CGU Hospitality will until Q2 2023 go from a start up to become a mature profit making unit, thus impact on the growth rates seems unnatural
Sensitivity
At 31 December 2023, the Group\u2019s value in use for each CGU was higher than the carrying amount of tested goodwill with indefinite useful life and intangible assets.
The calculation is most sensitive to changes in EBITDA and gross profit (GP) margins. No reasonably likely change in the key assumptions listed above would cause the carrying value to materially exceed the recov-erable amount for any of the CGUs. The headroom on the most significant CGUs varied from 25% - 170%.
Note 15\tBusiness Combinations
During 2022 or 2023, Arribatec did not acquire any shares in companies. During 2021, Arribatec acquired shares in the companies mentioned below and consequently controls the subsidiaries from the date of acquisition. In the purchase price allocations (PPA), the assets and liabilities of the companies have been measured at the estimated fair value on the acquisition date.
The purchase price allocation identified fair value adjustments on Intangible assets like customer relations and software and deferred tax liabilities/assets. The residual value of the purchase price alloca-tion is allocated to goodwill.
Arribatec acquired five companies during 2021 within IT and operation technology. The acquisitions are carried out in line with Arribatec \u0301s strategy.
The labor force and \u201cgoing concern\u2019\u2019 elements are the main part of the acquired excess value and has been allocated to goodwill in accord-ance with IFRS 3. Goodwill in relation to the acquisition is related to different CGU\u2019s as according to Note14.
Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
Note 21\tContract assets and liabilities
Consulting services
Arribatec provides implementation and integration services under consulting contracts with customers. Most contracts have a pricing structure where Arribatec agrees to implement and integrate software for a fixed hourly rate agreed upon in the contract, but where the number of hours to be delivered is not specified in the contract.
Arribatec\u2019s performance obligation is satisfied over time because the consulting services do not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is recognised over time, normally according to the invoiced hours for the period. A contract asset is recognised when the company has an unconditional right to payment. A contract liability is recognised when invoicing is done in advance compared to revenue recognition.
From time-to-time Arribatec has a fixed price consulting contract. In the same manner as for the contract with variable hours, the asset created does not have an alternative use for Arribatec and Arribatec has an enforceable right to payment in line with progress in the project. Arribatec recognises revenue over time, in line with progress in the project. Progress is estimated as hours spent at the balance sheet date divided with estimated total hours in the project. This requires estimating the remaining hours to complete.
Contract assets
Contract assets are recognised for performance obligations satis-fied over time, mainly from installation services and projects where progress is measured over time. When the consideration becomes unconditional the contract assets are reclassified to accounts receiv-able, which attributes the main changes to the contract assets in the periods.
Contract assets will typically occur in Saas projects where the customer pays a fixed annual or monthly fee over 3-5 years. In such cases revenue is recognised at the time where performance obliga-tions are met and registered as contract assets on the balance sheet. A reclassification to accounts receivable is done when the customer is invoiced.
NOK thousand | 2023 | 2022 |
As of 1 January | 16\u00a0276 | 19\u00a0549 |
Performance obligations met | 42\u00a0789 | 36\u00a0572 |
Reclassified to receivables | (35\u00a0305) | (40\u00a0272) |
Translation difference | 484 | 427 |
Total contract assets | 24\u00a0244 | 16\u00a0276 |
It is expected that 93% of the above contract assets will be reclassi-fied to receivables in 2024, 5% in 2025 followed by 2% in 2026.
The expected credit losses on Contracts assets are considered immaterial as the contracts are mainly with governmental parties and therefore secured Contracts are subject to valuation of credit losses in the same way as Account receivables.
Contract liabilities
Contract liabilities relate to consideration received in advance of performance under revenue contracts with customers. Revenue is recognised as (or when) the Group fulfils its performance obligation(s) under the contracts. Contract liabilities are presented in the table below:
NOK thousand | 2023 | 2022 |
As of 1 January | 16\u00a0476 | 21\u00a0483 |
Deferred revenue | 101\u00a0264 | 68\u00a0627 |
Recognised as revenue in P&L | (94\u00a0227) | (73\u00a0811) |
Translation difference | 806 | 177 |
Total contract liabilities | 24\u00a0319 | 16\u00a0476 |
Contract liabilities are mainly invoiced to customers in advance and relating to 2024. All liabilities per 1 January was recognised as revenue in P&L during the year.
Note 28\tProvisions
NOK thousand | 2023 | 2022 |
Severance indemnity funds in Italy | 8\u00a0145 | 10\u00a0364 |
Other provisions | 2\u00a0540 | 3\u00a0838 |
Total provision | 10\u00a0685 | 14\u00a0202 |
Severance funds in Italy relates to a monthly accrual for severance pay for all employees. The funds are paid to the employee when they leave the company. Per 31.12.2023, all funds estimated as long term (2-4+ years).
Provisions and contingent liabilities
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Restructuring provisions are recognised only when the recognition criteria for provisions are fulfilled. The Group has a constructive obligation when a detailed formal plan identifies the activities concerned, the location and number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline. Furthermore, the employees affected have been notified of the plan\u2019s main features.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f16859": { "value": "The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries, together called \u201cthe Group\u201d have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS), relevant interpretations, and the Norwegian Accounting Act. ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s8_notes__7__21-1": { "value": "The Parent company has NOK as its functional currency. The consolidated finan-cial accounts are presented in NOK.Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f16904": { "value": "The Parent company has NOK as its functional currency. The consolidated finan-cial accounts are presented in NOK.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f17040": { "value": "Note 3\tSegment
The market for Arribatec\u2019s Software and services are global. The chief decision maker will follow up revenue and profitability on a global basis, segmented into the Business Areas. This is consistent with the internal reporting submitted to the chief operating decision maker, defined as the Management Group. The Management Group is responsible for allocating resources and assessing performance as well as making strategic decisions. Principles of revenue recognition are stated in this note.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customizing, maintaining and supporting the entire business landscape, with ERP as the core engine. We integrate it with other market leading systems
that provide better operational support and insight than a single ERP system does.
EA & BPMprovides Enterprise Architecture and Business Process Management. Arribatec EA&BPM delivers solutions and long-term services within the spaces of business process management, enter-prise architecture and corporate governance to major Norwegian and Nordic customers, both in the private and public sector.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk and GDPR. Arribatec Cloud provides consulting, outsourcing and cloud services to private and public enterprises. In addition to offering market leading cloud services from Microsoft and Google, Arribatec Cloud also operates its own public cloud offering based on Norwegian data centers to accommodate special use cases for our customers.
Hospitalitydelivers solutions for self-check-in/check-out and payments for the hospitality industry.
Marinefocus on the Maritime sector. BA Marine\u2019s competencies are the development, implementation, and consulting of the owned asset management system solutions: Infoship.
2023
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 294\u00a0258 | 111\u00a0010 | 127\u00a0016 | 10\u00a0903 | 47\u00a0645 | 662 | (18\u00a0514) | 572\u00a0981 |
Materials, software and services | (56\u00a0402) | (24\u00a0170) | (61\u00a0136) | (4\u00a0318) | (3\u00a0075) | (1\u00a0989) | 18\u00a0418 | (132\u00a0673) |
Gross margin | 237\u00a0856 | 86\u00a0840 | 65\u00a0880 | 6\u00a0585 | 44\u00a0570 | (1\u00a0327) | (96) | 440\u00a0308 |
Salary and personnel costs | (190\u00a0084) | (59\u00a0394) | (43\u00a0950) | (4\u00a0400) | (23\u00a0939) | (24\u00a0841) | 0 | (346\u00a0608) |
Other operating expenses | (18\u00a0170) | (5\u00a0832) | (12\u00a0732) | (5\u00a0518) | (6\u00a0942) | (20\u00a0139) | 96 | (69\u00a0236) |
Total operating expenses | (208\u00a0254) | (65\u00a0227) | (56\u00a0682) | (9\u00a0918) | (30\u00a0882) | (44\u00a0980) | 96 | (415\u00a0845) |
EBITDA | 29\u00a0602 | 21\u00a0614 | 9\u00a0198 | (3\u00a0333) | 13\u00a0689 | (46\u00a0307) | 0 | 24\u00a0463 |
Depreciation, amortisarion and impairment | (19\u00a0563) | (6\u00a0557) | (7\u00a0802) | (3\u00a0533) | (7\u00a0211) | (3\u00a0642) | 0 | (48\u00a0307) |
EBIT | 10\u00a0039 | 15\u00a0057 | 1\u00a0396 | (6\u00a0866) | 6\u00a0478 | (49\u00a0949) | 0 | (23\u00a0844) |
Gross margin % | 80.8% | 78.2% | 51.9% | 60.4% | 93.5% | na | na | 76.8% |
EBITDA % | 10.1% | 19.5% | 7.2% | (30.6%) | 28.7% | na | na | 4.3% |
EBIT % | 3.4% | 13.6% | 1.1% | (63.0%) | 13.6% | na | na | (4.2%) |
2022
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 291\u00a0362 | 89\u00a0789 | 113\u00a0726 | 3\u00a0642 | 47\u00a0066 | 1\u00a0166 | (41\u00a0781) | 504\u00a0968 |
Materials, software and services | (64\u00a0177) | (19\u00a0812) | (48\u00a0862) | 1\u00a0948 | (6\u00a0365) | (17\u00a0561) | 39\u00a0794 | (115\u00a0035) |
Gross margin | 227\u00a0185 | 69\u00a0977 | 64\u00a0864 | 5\u00a0590 | 40\u00a0701 | (16\u00a0395) | (1\u00a0988) | 389\u00a0934 |
Salary and personnel costs | (177\u00a0970) | (52\u00a0108) | (41\u00a0291) | (10\u00a0192) | (39\u00a0066) | (18\u00a0172) | 0 | (338\u00a0800) |
Other operating expenses | (21\u00a0768) | (5\u00a0437) | (22\u00a0031) | (3\u00a0678) | (11\u00a0702) | (22\u00a0613) | 1\u00a0988 | (85\u00a0241) |
Total operating expenses | (199\u00a0739) | (57\u00a0545) | (63\u00a0322) | (13\u00a0870) | (50\u00a0768) | (40\u00a0785) | 1\u00a0988 | (424\u00a0041) |
EBITDA | 27\u00a0446 | 12\u00a0432 | 1\u00a0542 | (8\u00a0280) | (10\u00a0067) | (57\u00a0180) | 0 | (34\u00a0107) |
Depreciation, amortisation and impairment | (15\u00a0110) | (5\u00a0707) | (7\u00a0116) | (2\u00a0762) | (14\u00a0696) | (10\u00a0842) | 0 | (56\u00a0232) |
EBIT | 12\u00a0336 | 6\u00a0725 | (5\u00a0573) | (11\u00a0042) | (24\u00a0764) | (68\u00a0022) | 0 | (90\u00a0339) |
Gross margin % | 78.0% | 77.9% | 57.0% | 153.5% | 86.5% | na | na | 77.2% |
EBITDA % | 9.4% | 13.8% | 1.4% | (227.4%) | (21.4%) | na | na | (6.8%) |
EBIT % | 4.2% | 7.5% | (4.9%) | (303.2%) | (52.6%) | na | na | (17.9%) |
Consulting services
Consulting services mainly come from time and material projects. The revenue is recognised as revenue as they are delivered to the customer every month. A receivable is recognised at the time of invoicing as this is the point in time when the right to consideration becomes unconditional.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the obligations of the company to provide those rights. IFRS 15 distinguishes between whether the license provides a\u201d right to use\u201d or a \u201cright to access\u201d IP. This impacts the timing of revenue recognition.
In most cases, the sale of licenses is part of SaaS contracts. Arribatec in some instances has contracts that include the sale of licenses only. Arribatec has analyzed its (partner) licensing contracts and concluded that it controls the license before it is transferred to the customer since Arribatec has legal ownership, physical possession, and the risk and reward of ownership before being transferred to the customer. Arribatec is therefore the principal in the customer contract.
When Arribatec licenses are distinct on-premises licenses (soft-ware installed on customers\u2019 server), these fall under the category \u201cright-to-use\u201d since the license grants the right to the IP \u201cas is\u201d when delivered. The distinct on-premises licenses pricing model is a one-time fixed fee. Revenue is recognised at the point in time when the customer is provided with the ability to use the software. The fee is recognised as a revenue at the point of time when the customer has received legal title and physical possession, and the customer has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec license cloud-based subscription licenses (\u201cright to access\u201d), the license is not considered distinct from the online/hosting service. Revenue is recognised over time, over the license/contract period, as the customer is receiving and consuming the benefits of access to the cloud-based license on an ongoing basis. The cloud-based subscription licenses are sold for a fixed annual or monthly fee. Revenue is recognised linearly over the subscription time.
Software as a service (SaaS)
Software is provided over time to an end customer from a Data Center managed or contracted by Arribatec. The obligations in the SaaS contract are to offer cloud-based access to the license (owned by Arribatec), maintenance of the utility of the software, including rights to updates and future releases, and in some contracts, provide support.
The customer will purchase and obtain control of the software on a subscription or consumption basis. Revenue is therefore recognised periodically over the life of the SaaS contract.
In some cases, Arribatec has a separate installation and implementation contract regarding the same customer projects. When these contracts are negotiated close in time to each other, Arribatec considers whether the two contracts have been negotiated as a package with a single commercial objective, or not. If this is the case the two contracts are combined. If not, they are accounted for separately.
The implementation and installation services are capable of being distinct and distinct within the context of these contracts. This is concluded based on an analysis of the different deliveries and the performance obligations in the contract. Arribatec has therefore concluded that there are generally two distinct performance obliga-tions in the two combined contracts. When there are two combined contracts, the transaction price is allocated between the two
performance obligations based on relative stand-alone prices that are estimated based on the pricing of each element in the contract like hours, contract length, and options to extend the contract.
Arribatec\u2019s performance obligation under the installation and integra-tion contract is satisfied over time because the consulting services does not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is accordingly recognised over time as the installation and integration is performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premises or from the cloud. Managed services contracts are delivered at a fixed price and a minimum commitment to the customers, on a long-term contract. Additional work above the agreed level is considered normal consulting services.
Arribatec delivers an integrated set of services as defined in the managed service agreement. The customer receives and consumes the benefits from the Managed services as Arribatec performs under the contract. Therefore, the performance obligation is satisfied over time and revenue is recognised over time.
One-time revenue from third party hardware
In some contracts, Arribatec delivers both physical hardware and installation of software on the hardware, e.g. for self-service /check-in kiosks. In such cases, the hardware product is considered as a separate contract obligation that is recognised as revenue when it is installed.
Disaggregation of revenue
In the following table, revenue is disaggregated by primary Business area, geography and recurrence. In presenting the geographic information, revenue has been based on the geographic location of the legal entity. The table shows external revenue.
Full year 2023
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 169\u00a0368 | 174\u00a0273 | 16\u00a0463 | 360\u00a0104 |
Business services | 70\u00a0912 | 51\u00a0921 | 1\u00a0577 | 124\u00a0411 |
EA & BPM | 77\u00a0521 | 29\u00a0439 | 3\u00a0119 | 110\u00a0080 |
Cloud | 16\u00a0716 | 89\u00a0714 | 8\u00a0208 | 114\u00a0638 |
Hospitality | 4\u00a0219 | 3\u00a0207 | 3\u00a0478 | 10\u00a0903 |
Corporate | 0 | (9) | 81 | 72 |
Continental Europe | 86\u00a0016 | 15\u00a0900 | 6\u00a0874 | 108\u00a0790 |
Business services | 67\u00a0762 | 7\u00a0446 | 411 | 75\u00a0619 |
Marine | 18\u00a0254 | 8\u00a0454 | 6\u00a0463 | 33\u00a0171 |
UK | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Business services | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Americas | 31\u00a0167 | 6\u00a0714 | 1\u00a0764 | 39\u00a0645 |
Business services | 24\u00a0496 | 0 | 692 | 25\u00a0188 |
Marine | 6\u00a0670 | 6\u00a0714 | 1\u00a0072 | 14\u00a0456 |
Total revenue | 333\u00a0131 | 214\u00a0177 | 25\u00a0672 | 572\u00a0981 |
Full year 2022
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 140\u00a0157 | 149\u00a0666 | 15\u00a0472 | 305\u00a0295 |
Business services | 65\u00a0425 | 46\u00a0299 | 876 | 112\u00a0601 |
EA & BPM | 59\u00a0512 | 23\u00a0995 | 5\u00a0402 | 88\u00a0909 |
Cloud | 13\u00a0966 | 78\u00a0095 | 8\u00a0170 | 100\u00a0230 |
Hospitality | 1\u00a0253 | 1\u00a0286 | 1\u00a0023 | 3\u00a0562 |
Corporate | 0 | (8) | 0 | (8) |
Continental Europe | 95\u00a0440 | 14\u00a0457 | 5\u00a0262 | 115\u00a0159 |
Business services | 72\u00a0401 | 6\u00a0952 | 247 | 79\u00a0601 |
Marine | 23\u00a0039 | 7\u00a0505 | 5\u00a0015 | 35\u00a0558 |
UK | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Business services | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Americas | 28\u00a0902 | 6\u00a0917 | 728 | 36\u00a0548 |
Business services | 25\u00a0075 | 21 | 236 | 25\u00a0333 |
Marine | 3\u00a0827 | 6\u00a0896 | 492 | 11\u00a0215 |
Total revenue | 298\u00a0454 | 184\u00a0495 | 22\u00a0019 | 504\u00a0968 |
Note 3\tSegment
The market for Arribatec\u2019s Software and services are global. The chief decision maker will follow up revenue and profitability on a global basis, segmented into the Business Areas. This is consistent with the internal reporting submitted to the chief operating decision maker, defined as the Management Group. The Management Group is responsible for allocating resources and assessing performance as well as making strategic decisions. Principles of revenue recognition are stated in this note.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customizing, maintaining and supporting the entire business landscape, with ERP as the core engine. We integrate it with other market leading systems
that provide better operational support and insight than a single ERP system does.
EA & BPMprovides Enterprise Architecture and Business Process Management. Arribatec EA&BPM delivers solutions and long-term services within the spaces of business process management, enter-prise architecture and corporate governance to major Norwegian and Nordic customers, both in the private and public sector.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk and GDPR. Arribatec Cloud provides consulting, outsourcing and cloud services to private and public enterprises. In addition to offering market leading cloud services from Microsoft and Google, Arribatec Cloud also operates its own public cloud offering based on Norwegian data centers to accommodate special use cases for our customers.
Hospitalitydelivers solutions for self-check-in/check-out and payments for the hospitality industry.
Marinefocus on the Maritime sector. BA Marine\u2019s competencies are the development, implementation, and consulting of the owned asset management system solutions: Infoship.
2023
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 294\u00a0258 | 111\u00a0010 | 127\u00a0016 | 10\u00a0903 | 47\u00a0645 | 662 | (18\u00a0514) | 572\u00a0981 |
Materials, software and services | (56\u00a0402) | (24\u00a0170) | (61\u00a0136) | (4\u00a0318) | (3\u00a0075) | (1\u00a0989) | 18\u00a0418 | (132\u00a0673) |
Gross margin | 237\u00a0856 | 86\u00a0840 | 65\u00a0880 | 6\u00a0585 | 44\u00a0570 | (1\u00a0327) | (96) | 440\u00a0308 |
Salary and personnel costs | (190\u00a0084) | (59\u00a0394) | (43\u00a0950) | (4\u00a0400) | (23\u00a0939) | (24\u00a0841) | 0 | (346\u00a0608) |
Other operating expenses | (18\u00a0170) | (5\u00a0832) | (12\u00a0732) | (5\u00a0518) | (6\u00a0942) | (20\u00a0139) | 96 | (69\u00a0236) |
Total operating expenses | (208\u00a0254) | (65\u00a0227) | (56\u00a0682) | (9\u00a0918) | (30\u00a0882) | (44\u00a0980) | 96 | (415\u00a0845) |
EBITDA | 29\u00a0602 | 21\u00a0614 | 9\u00a0198 | (3\u00a0333) | 13\u00a0689 | (46\u00a0307) | 0 | 24\u00a0463 |
Depreciation, amortisarion and impairment | (19\u00a0563) | (6\u00a0557) | (7\u00a0802) | (3\u00a0533) | (7\u00a0211) | (3\u00a0642) | 0 | (48\u00a0307) |
EBIT | 10\u00a0039 | 15\u00a0057 | 1\u00a0396 | (6\u00a0866) | 6\u00a0478 | (49\u00a0949) | 0 | (23\u00a0844) |
Gross margin % | 80.8% | 78.2% | 51.9% | 60.4% | 93.5% | na | na | 76.8% |
EBITDA % | 10.1% | 19.5% | 7.2% | (30.6%) | 28.7% | na | na | 4.3% |
EBIT % | 3.4% | 13.6% | 1.1% | (63.0%) | 13.6% | na | na | (4.2%) |
2022
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 291\u00a0362 | 89\u00a0789 | 113\u00a0726 | 3\u00a0642 | 47\u00a0066 | 1\u00a0166 | (41\u00a0781) | 504\u00a0968 |
Materials, software and services | (64\u00a0177) | (19\u00a0812) | (48\u00a0862) | 1\u00a0948 | (6\u00a0365) | (17\u00a0561) | 39\u00a0794 | (115\u00a0035) |
Gross margin | 227\u00a0185 | 69\u00a0977 | 64\u00a0864 | 5\u00a0590 | 40\u00a0701 | (16\u00a0395) | (1\u00a0988) | 389\u00a0934 |
Salary and personnel costs | (177\u00a0970) | (52\u00a0108) | (41\u00a0291) | (10\u00a0192) | (39\u00a0066) | (18\u00a0172) | 0 | (338\u00a0800) |
Other operating expenses | (21\u00a0768) | (5\u00a0437) | (22\u00a0031) | (3\u00a0678) | (11\u00a0702) | (22\u00a0613) | 1\u00a0988 | (85\u00a0241) |
Total operating expenses | (199\u00a0739) | (57\u00a0545) | (63\u00a0322) | (13\u00a0870) | (50\u00a0768) | (40\u00a0785) | 1\u00a0988 | (424\u00a0041) |
EBITDA | 27\u00a0446 | 12\u00a0432 | 1\u00a0542 | (8\u00a0280) | (10\u00a0067) | (57\u00a0180) | 0 | (34\u00a0107) |
Depreciation, amortisation and impairment | (15\u00a0110) | (5\u00a0707) | (7\u00a0116) | (2\u00a0762) | (14\u00a0696) | (10\u00a0842) | 0 | (56\u00a0232) |
EBIT | 12\u00a0336 | 6\u00a0725 | (5\u00a0573) | (11\u00a0042) | (24\u00a0764) | (68\u00a0022) | 0 | (90\u00a0339) |
Gross margin % | 78.0% | 77.9% | 57.0% | 153.5% | 86.5% | na | na | 77.2% |
EBITDA % | 9.4% | 13.8% | 1.4% | (227.4%) | (21.4%) | na | na | (6.8%) |
EBIT % | 4.2% | 7.5% | (4.9%) | (303.2%) | (52.6%) | na | na | (17.9%) |
Consulting services
Consulting services mainly come from time and material projects. The revenue is recognised as revenue as they are delivered to the customer every month. A receivable is recognised at the time of invoicing as this is the point in time when the right to consideration becomes unconditional.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the obligations of the company to provide those rights. IFRS 15 distinguishes between whether the license provides a\u201d right to use\u201d or a \u201cright to access\u201d IP. This impacts the timing of revenue recognition.
In most cases, the sale of licenses is part of SaaS contracts. Arribatec in some instances has contracts that include the sale of licenses only. Arribatec has analyzed its (partner) licensing contracts and concluded that it controls the license before it is transferred to the customer since Arribatec has legal ownership, physical possession, and the risk and reward of ownership before being transferred to the customer. Arribatec is therefore the principal in the customer contract.
When Arribatec licenses are distinct on-premises licenses (soft-ware installed on customers\u2019 server), these fall under the category \u201cright-to-use\u201d since the license grants the right to the IP \u201cas is\u201d when delivered. The distinct on-premises licenses pricing model is a one-time fixed fee. Revenue is recognised at the point in time when the customer is provided with the ability to use the software. The fee is recognised as a revenue at the point of time when the customer has received legal title and physical possession, and the customer has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec license cloud-based subscription licenses (\u201cright to access\u201d), the license is not considered distinct from the online/hosting service. Revenue is recognised over time, over the license/contract period, as the customer is receiving and consuming the benefits of access to the cloud-based license on an ongoing basis. The cloud-based subscription licenses are sold for a fixed annual or monthly fee. Revenue is recognised linearly over the subscription time.
Software as a service (SaaS)
Software is provided over time to an end customer from a Data Center managed or contracted by Arribatec. The obligations in the SaaS contract are to offer cloud-based access to the license (owned by Arribatec), maintenance of the utility of the software, including rights to updates and future releases, and in some contracts, provide support.
The customer will purchase and obtain control of the software on a subscription or consumption basis. Revenue is therefore recognised periodically over the life of the SaaS contract.
In some cases, Arribatec has a separate installation and implementation contract regarding the same customer projects. When these contracts are negotiated close in time to each other, Arribatec considers whether the two contracts have been negotiated as a package with a single commercial objective, or not. If this is the case the two contracts are combined. If not, they are accounted for separately.
The implementation and installation services are capable of being distinct and distinct within the context of these contracts. This is concluded based on an analysis of the different deliveries and the performance obligations in the contract. Arribatec has therefore concluded that there are generally two distinct performance obliga-tions in the two combined contracts. When there are two combined contracts, the transaction price is allocated between the two
performance obligations based on relative stand-alone prices that are estimated based on the pricing of each element in the contract like hours, contract length, and options to extend the contract.
Arribatec\u2019s performance obligation under the installation and integra-tion contract is satisfied over time because the consulting services does not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is accordingly recognised over time as the installation and integration is performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premises or from the cloud. Managed services contracts are delivered at a fixed price and a minimum commitment to the customers, on a long-term contract. Additional work above the agreed level is considered normal consulting services.
Arribatec delivers an integrated set of services as defined in the managed service agreement. The customer receives and consumes the benefits from the Managed services as Arribatec performs under the contract. Therefore, the performance obligation is satisfied over time and revenue is recognised over time.
One-time revenue from third party hardware
In some contracts, Arribatec delivers both physical hardware and installation of software on the hardware, e.g. for self-service /check-in kiosks. In such cases, the hardware product is considered as a separate contract obligation that is recognised as revenue when it is installed.
Disaggregation of revenue
In the following table, revenue is disaggregated by primary Business area, geography and recurrence. In presenting the geographic information, revenue has been based on the geographic location of the legal entity. The table shows external revenue.
Full year 2023
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 169\u00a0368 | 174\u00a0273 | 16\u00a0463 | 360\u00a0104 |
Business services | 70\u00a0912 | 51\u00a0921 | 1\u00a0577 | 124\u00a0411 |
EA & BPM | 77\u00a0521 | 29\u00a0439 | 3\u00a0119 | 110\u00a0080 |
Cloud | 16\u00a0716 | 89\u00a0714 | 8\u00a0208 | 114\u00a0638 |
Hospitality | 4\u00a0219 | 3\u00a0207 | 3\u00a0478 | 10\u00a0903 |
Corporate | 0 | (9) | 81 | 72 |
Continental Europe | 86\u00a0016 | 15\u00a0900 | 6\u00a0874 | 108\u00a0790 |
Business services | 67\u00a0762 | 7\u00a0446 | 411 | 75\u00a0619 |
Marine | 18\u00a0254 | 8\u00a0454 | 6\u00a0463 | 33\u00a0171 |
UK | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Business services | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Americas | 31\u00a0167 | 6\u00a0714 | 1\u00a0764 | 39\u00a0645 |
Business services | 24\u00a0496 | 0 | 692 | 25\u00a0188 |
Marine | 6\u00a0670 | 6\u00a0714 | 1\u00a0072 | 14\u00a0456 |
Total revenue | 333\u00a0131 | 214\u00a0177 | 25\u00a0672 | 572\u00a0981 |
Full year 2022
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 140\u00a0157 | 149\u00a0666 | 15\u00a0472 | 305\u00a0295 |
Business services | 65\u00a0425 | 46\u00a0299 | 876 | 112\u00a0601 |
EA & BPM | 59\u00a0512 | 23\u00a0995 | 5\u00a0402 | 88\u00a0909 |
Cloud | 13\u00a0966 | 78\u00a0095 | 8\u00a0170 | 100\u00a0230 |
Hospitality | 1\u00a0253 | 1\u00a0286 | 1\u00a0023 | 3\u00a0562 |
Corporate | 0 | (8) | 0 | (8) |
Continental Europe | 95\u00a0440 | 14\u00a0457 | 5\u00a0262 | 115\u00a0159 |
Business services | 72\u00a0401 | 6\u00a0952 | 247 | 79\u00a0601 |
Marine | 23\u00a0039 | 7\u00a0505 | 5\u00a0015 | 35\u00a0558 |
UK | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Business services | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Americas | 28\u00a0902 | 6\u00a0917 | 728 | 36\u00a0548 |
Business services | 25\u00a0075 | 21 | 236 | 25\u00a0333 |
Marine | 3\u00a0827 | 6\u00a0896 | 492 | 11\u00a0215 |
Total revenue | 298\u00a0454 | 184\u00a0495 | 22\u00a0019 | 504\u00a0968 |
Note 3\tSegment
The market for Arribatec\u2019s Software and services are global. The chief decision maker will follow up revenue and profitability on a global basis, segmented into the Business Areas. This is consistent with the internal reporting submitted to the chief operating decision maker, defined as the Management Group. The Management Group is responsible for allocating resources and assessing performance as well as making strategic decisions. Principles of revenue recognition are stated in this note.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customizing, maintaining and supporting the entire business landscape, with ERP as the core engine. We integrate it with other market leading systems
that provide better operational support and insight than a single ERP system does.
EA & BPMprovides Enterprise Architecture and Business Process Management. Arribatec EA&BPM delivers solutions and long-term services within the spaces of business process management, enter-prise architecture and corporate governance to major Norwegian and Nordic customers, both in the private and public sector.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk and GDPR. Arribatec Cloud provides consulting, outsourcing and cloud services to private and public enterprises. In addition to offering market leading cloud services from Microsoft and Google, Arribatec Cloud also operates its own public cloud offering based on Norwegian data centers to accommodate special use cases for our customers.
Hospitalitydelivers solutions for self-check-in/check-out and payments for the hospitality industry.
Marinefocus on the Maritime sector. BA Marine\u2019s competencies are the development, implementation, and consulting of the owned asset management system solutions: Infoship.
2023
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 294\u00a0258 | 111\u00a0010 | 127\u00a0016 | 10\u00a0903 | 47\u00a0645 | 662 | (18\u00a0514) | 572\u00a0981 |
Materials, software and services | (56\u00a0402) | (24\u00a0170) | (61\u00a0136) | (4\u00a0318) | (3\u00a0075) | (1\u00a0989) | 18\u00a0418 | (132\u00a0673) |
Gross margin | 237\u00a0856 | 86\u00a0840 | 65\u00a0880 | 6\u00a0585 | 44\u00a0570 | (1\u00a0327) | (96) | 440\u00a0308 |
Salary and personnel costs | (190\u00a0084) | (59\u00a0394) | (43\u00a0950) | (4\u00a0400) | (23\u00a0939) | (24\u00a0841) | 0 | (346\u00a0608) |
Other operating expenses | (18\u00a0170) | (5\u00a0832) | (12\u00a0732) | (5\u00a0518) | (6\u00a0942) | (20\u00a0139) | 96 | (69\u00a0236) |
Total operating expenses | (208\u00a0254) | (65\u00a0227) | (56\u00a0682) | (9\u00a0918) | (30\u00a0882) | (44\u00a0980) | 96 | (415\u00a0845) |
EBITDA | 29\u00a0602 | 21\u00a0614 | 9\u00a0198 | (3\u00a0333) | 13\u00a0689 | (46\u00a0307) | 0 | 24\u00a0463 |
Depreciation, amortisarion and impairment | (19\u00a0563) | (6\u00a0557) | (7\u00a0802) | (3\u00a0533) | (7\u00a0211) | (3\u00a0642) | 0 | (48\u00a0307) |
EBIT | 10\u00a0039 | 15\u00a0057 | 1\u00a0396 | (6\u00a0866) | 6\u00a0478 | (49\u00a0949) | 0 | (23\u00a0844) |
Gross margin % | 80.8% | 78.2% | 51.9% | 60.4% | 93.5% | na | na | 76.8% |
EBITDA % | 10.1% | 19.5% | 7.2% | (30.6%) | 28.7% | na | na | 4.3% |
EBIT % | 3.4% | 13.6% | 1.1% | (63.0%) | 13.6% | na | na | (4.2%) |
2022
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 291\u00a0362 | 89\u00a0789 | 113\u00a0726 | 3\u00a0642 | 47\u00a0066 | 1\u00a0166 | (41\u00a0781) | 504\u00a0968 |
Materials, software and services | (64\u00a0177) | (19\u00a0812) | (48\u00a0862) | 1\u00a0948 | (6\u00a0365) | (17\u00a0561) | 39\u00a0794 | (115\u00a0035) |
Gross margin | 227\u00a0185 | 69\u00a0977 | 64\u00a0864 | 5\u00a0590 | 40\u00a0701 | (16\u00a0395) | (1\u00a0988) | 389\u00a0934 |
Salary and personnel costs | (177\u00a0970) | (52\u00a0108) | (41\u00a0291) | (10\u00a0192) | (39\u00a0066) | (18\u00a0172) | 0 | (338\u00a0800) |
Other operating expenses | (21\u00a0768) | (5\u00a0437) | (22\u00a0031) | (3\u00a0678) | (11\u00a0702) | (22\u00a0613) | 1\u00a0988 | (85\u00a0241) |
Total operating expenses | (199\u00a0739) | (57\u00a0545) | (63\u00a0322) | (13\u00a0870) | (50\u00a0768) | (40\u00a0785) | 1\u00a0988 | (424\u00a0041) |
EBITDA | 27\u00a0446 | 12\u00a0432 | 1\u00a0542 | (8\u00a0280) | (10\u00a0067) | (57\u00a0180) | 0 | (34\u00a0107) |
Depreciation, amortisation and impairment | (15\u00a0110) | (5\u00a0707) | (7\u00a0116) | (2\u00a0762) | (14\u00a0696) | (10\u00a0842) | 0 | (56\u00a0232) |
EBIT | 12\u00a0336 | 6\u00a0725 | (5\u00a0573) | (11\u00a0042) | (24\u00a0764) | (68\u00a0022) | 0 | (90\u00a0339) |
Gross margin % | 78.0% | 77.9% | 57.0% | 153.5% | 86.5% | na | na | 77.2% |
EBITDA % | 9.4% | 13.8% | 1.4% | (227.4%) | (21.4%) | na | na | (6.8%) |
EBIT % | 4.2% | 7.5% | (4.9%) | (303.2%) | (52.6%) | na | na | (17.9%) |
Consulting services
Consulting services mainly come from time and material projects. The revenue is recognised as revenue as they are delivered to the customer every month. A receivable is recognised at the time of invoicing as this is the point in time when the right to consideration becomes unconditional.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the obligations of the company to provide those rights. IFRS 15 distinguishes between whether the license provides a\u201d right to use\u201d or a \u201cright to access\u201d IP. This impacts the timing of revenue recognition.
In most cases, the sale of licenses is part of SaaS contracts. Arribatec in some instances has contracts that include the sale of licenses only. Arribatec has analyzed its (partner) licensing contracts and concluded that it controls the license before it is transferred to the customer since Arribatec has legal ownership, physical possession, and the risk and reward of ownership before being transferred to the customer. Arribatec is therefore the principal in the customer contract.
When Arribatec licenses are distinct on-premises licenses (soft-ware installed on customers\u2019 server), these fall under the category \u201cright-to-use\u201d since the license grants the right to the IP \u201cas is\u201d when delivered. The distinct on-premises licenses pricing model is a one-time fixed fee. Revenue is recognised at the point in time when the customer is provided with the ability to use the software. The fee is recognised as a revenue at the point of time when the customer has received legal title and physical possession, and the customer has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec license cloud-based subscription licenses (\u201cright to access\u201d), the license is not considered distinct from the online/hosting service. Revenue is recognised over time, over the license/contract period, as the customer is receiving and consuming the benefits of access to the cloud-based license on an ongoing basis. The cloud-based subscription licenses are sold for a fixed annual or monthly fee. Revenue is recognised linearly over the subscription time.
Software as a service (SaaS)
Software is provided over time to an end customer from a Data Center managed or contracted by Arribatec. The obligations in the SaaS contract are to offer cloud-based access to the license (owned by Arribatec), maintenance of the utility of the software, including rights to updates and future releases, and in some contracts, provide support.
The customer will purchase and obtain control of the software on a subscription or consumption basis. Revenue is therefore recognised periodically over the life of the SaaS contract.
In some cases, Arribatec has a separate installation and implementation contract regarding the same customer projects. When these contracts are negotiated close in time to each other, Arribatec considers whether the two contracts have been negotiated as a package with a single commercial objective, or not. If this is the case the two contracts are combined. If not, they are accounted for separately.
The implementation and installation services are capable of being distinct and distinct within the context of these contracts. This is concluded based on an analysis of the different deliveries and the performance obligations in the contract. Arribatec has therefore concluded that there are generally two distinct performance obliga-tions in the two combined contracts. When there are two combined contracts, the transaction price is allocated between the two
performance obligations based on relative stand-alone prices that are estimated based on the pricing of each element in the contract like hours, contract length, and options to extend the contract.
Arribatec\u2019s performance obligation under the installation and integra-tion contract is satisfied over time because the consulting services does not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is accordingly recognised over time as the installation and integration is performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premises or from the cloud. Managed services contracts are delivered at a fixed price and a minimum commitment to the customers, on a long-term contract. Additional work above the agreed level is considered normal consulting services.
Arribatec delivers an integrated set of services as defined in the managed service agreement. The customer receives and consumes the benefits from the Managed services as Arribatec performs under the contract. Therefore, the performance obligation is satisfied over time and revenue is recognised over time.
One-time revenue from third party hardware
In some contracts, Arribatec delivers both physical hardware and installation of software on the hardware, e.g. for self-service /check-in kiosks. In such cases, the hardware product is considered as a separate contract obligation that is recognised as revenue when it is installed.
Disaggregation of revenue
In the following table, revenue is disaggregated by primary Business area, geography and recurrence. In presenting the geographic information, revenue has been based on the geographic location of the legal entity. The table shows external revenue.
Full year 2023
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 169\u00a0368 | 174\u00a0273 | 16\u00a0463 | 360\u00a0104 |
Business services | 70\u00a0912 | 51\u00a0921 | 1\u00a0577 | 124\u00a0411 |
EA & BPM | 77\u00a0521 | 29\u00a0439 | 3\u00a0119 | 110\u00a0080 |
Cloud | 16\u00a0716 | 89\u00a0714 | 8\u00a0208 | 114\u00a0638 |
Hospitality | 4\u00a0219 | 3\u00a0207 | 3\u00a0478 | 10\u00a0903 |
Corporate | 0 | (9) | 81 | 72 |
Continental Europe | 86\u00a0016 | 15\u00a0900 | 6\u00a0874 | 108\u00a0790 |
Business services | 67\u00a0762 | 7\u00a0446 | 411 | 75\u00a0619 |
Marine | 18\u00a0254 | 8\u00a0454 | 6\u00a0463 | 33\u00a0171 |
UK | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Business services | 46\u00a0581 | 17\u00a0291 | 571 | 64\u00a0442 |
Americas | 31\u00a0167 | 6\u00a0714 | 1\u00a0764 | 39\u00a0645 |
Business services | 24\u00a0496 | 0 | 692 | 25\u00a0188 |
Marine | 6\u00a0670 | 6\u00a0714 | 1\u00a0072 | 14\u00a0456 |
Total revenue | 333\u00a0131 | 214\u00a0177 | 25\u00a0672 | 572\u00a0981 |
Full year 2022
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 140\u00a0157 | 149\u00a0666 | 15\u00a0472 | 305\u00a0295 |
Business services | 65\u00a0425 | 46\u00a0299 | 876 | 112\u00a0601 |
EA & BPM | 59\u00a0512 | 23\u00a0995 | 5\u00a0402 | 88\u00a0909 |
Cloud | 13\u00a0966 | 78\u00a0095 | 8\u00a0170 | 100\u00a0230 |
Hospitality | 1\u00a0253 | 1\u00a0286 | 1\u00a0023 | 3\u00a0562 |
Corporate | 0 | (8) | 0 | (8) |
Continental Europe | 95\u00a0440 | 14\u00a0457 | 5\u00a0262 | 115\u00a0159 |
Business services | 72\u00a0401 | 6\u00a0952 | 247 | 79\u00a0601 |
Marine | 23\u00a0039 | 7\u00a0505 | 5\u00a0015 | 35\u00a0558 |
UK | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Business services | 33\u00a0955 | 13\u00a0454 | 557 | 47\u00a0966 |
Americas | 28\u00a0902 | 6\u00a0917 | 728 | 36\u00a0548 |
Business services | 25\u00a0075 | 21 | 236 | 25\u00a0333 |
Marine | 3\u00a0827 | 6\u00a0896 | 492 | 11\u00a0215 |
Total revenue | 298\u00a0454 | 184\u00a0495 | 22\u00a0019 | 504\u00a0968 |
The market for Arribatec\u2019s Software and services are global. The chief decision maker will follow up revenue and profitability on a global basis, segmented into the Business Areas. This is consistent with the internal reporting submitted to the chief operating decision maker, defined as the Management Group. The Management Group is responsible for allocating resources and assessing performance as well as making strategic decisions. Principles of revenue recognition are stated in this note.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customizing, maintaining and supporting the entire business landscape, with ERP as the core engine. We integrate it with other market leading systems
that provide better operational support and insight than a single ERP system does.
EA & BPMprovides Enterprise Architecture and Business Process Management. Arribatec EA&BPM delivers solutions and long-term services within the spaces of business process management, enter-prise architecture and corporate governance to major Norwegian and Nordic customers, both in the private and public sector.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk and GDPR. Arribatec Cloud provides consulting, outsourcing and cloud services to private and public enterprises. In addition to offering market leading cloud services from Microsoft and Google, Arribatec Cloud also operates its own public cloud offering based on Norwegian data centers to accommodate special use cases for our customers.
Hospitalitydelivers solutions for self-check-in/check-out and payments for the hospitality industry.
Marinefocus on the Maritime sector. BA Marine\u2019s competencies are the development, implementation, and consulting of the owned asset management system solutions: Infoship.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f18328": { "value": "Consulting services
Consulting services mainly come from time and material projects. The revenue is recognised as revenue as they are delivered to the customer every month. A receivable is recognised at the time of invoicing as this is the point in time when the right to consideration becomes unconditional.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the obligations of the company to provide those rights. IFRS 15 distinguishes between whether the license provides a\u201d right to use\u201d or a \u201cright to access\u201d IP. This impacts the timing of revenue recognition.
In most cases, the sale of licenses is part of SaaS contracts. Arribatec in some instances has contracts that include the sale of licenses only. Arribatec has analyzed its (partner) licensing contracts and concluded that it controls the license before it is transferred to the customer since Arribatec has legal ownership, physical possession, and the risk and reward of ownership before being transferred to the customer. Arribatec is therefore the principal in the customer contract.
When Arribatec licenses are distinct on-premises licenses (soft-ware installed on customers\u2019 server), these fall under the category \u201cright-to-use\u201d since the license grants the right to the IP \u201cas is\u201d when delivered. The distinct on-premises licenses pricing model is a one-time fixed fee. Revenue is recognised at the point in time when the customer is provided with the ability to use the software. The fee is recognised as a revenue at the point of time when the customer has received legal title and physical possession, and the customer has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec license cloud-based subscription licenses (\u201cright to access\u201d), the license is not considered distinct from the online/hosting service. Revenue is recognised over time, over the license/contract period, as the customer is receiving and consuming the benefits of access to the cloud-based license on an ongoing basis. The cloud-based subscription licenses are sold for a fixed annual or monthly fee. Revenue is recognised linearly over the subscription time.
Software as a service (SaaS)
Software is provided over time to an end customer from a Data Center managed or contracted by Arribatec. The obligations in the SaaS contract are to offer cloud-based access to the license (owned by Arribatec), maintenance of the utility of the software, including rights to updates and future releases, and in some contracts, provide support.
The customer will purchase and obtain control of the software on a subscription or consumption basis. Revenue is therefore recognised periodically over the life of the SaaS contract.
In some cases, Arribatec has a separate installation and implementation contract regarding the same customer projects. When these contracts are negotiated close in time to each other, Arribatec considers whether the two contracts have been negotiated as a package with a single commercial objective, or not. If this is the case the two contracts are combined. If not, they are accounted for separately.
The implementation and installation services are capable of being distinct and distinct within the context of these contracts. This is concluded based on an analysis of the different deliveries and the performance obligations in the contract. Arribatec has therefore concluded that there are generally two distinct performance obliga-tions in the two combined contracts. When there are two combined contracts, the transaction price is allocated between the two
performance obligations based on relative stand-alone prices that are estimated based on the pricing of each element in the contract like hours, contract length, and options to extend the contract.
Arribatec\u2019s performance obligation under the installation and integra-tion contract is satisfied over time because the consulting services does not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is accordingly recognised over time as the installation and integration is performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premises or from the cloud. Managed services contracts are delivered at a fixed price and a minimum commitment to the customers, on a long-term contract. Additional work above the agreed level is considered normal consulting services.
Arribatec delivers an integrated set of services as defined in the managed service agreement. The customer receives and consumes the benefits from the Managed services as Arribatec performs under the contract. Therefore, the performance obligation is satisfied over time and revenue is recognised over time.
One-time revenue from third party hardware
In some contracts, Arribatec delivers both physical hardware and installation of software on the hardware, e.g. for self-service /check-in kiosks. In such cases, the hardware product is considered as a separate contract obligation that is recognised as revenue when it is installed.
Disaggregation of revenue
In the following table, revenue is disaggregated by primary Business area, geography and recurrence. In presenting the geographic information, revenue has been based on the geographic location of the legal entity. ", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s8_notes__7__26-1": { "value": "Consulting services
Consulting services mainly come from time and material projects. The revenue is recognised as revenue as they are delivered to the customer every month. A receivable is recognised at the time of invoicing as this is the point in time when the right to consideration becomes unconditional.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the obligations of the company to provide those rights. IFRS 15 distinguishes between whether the license provides a\u201d right to use\u201d or a \u201cright to access\u201d IP. This impacts the timing of revenue recognition.
In most cases, the sale of licenses is part of SaaS contracts. Arribatec in some instances has contracts that include the sale of licenses only. Arribatec has analyzed its (partner) licensing contracts and concluded that it controls the license before it is transferred to the customer since Arribatec has legal ownership, physical possession, and the risk and reward of ownership before being transferred to the customer. Arribatec is therefore the principal in the customer contract.
When Arribatec licenses are distinct on-premises licenses (soft-ware installed on customers\u2019 server), these fall under the category \u201cright-to-use\u201d since the license grants the right to the IP \u201cas is\u201d when delivered. The distinct on-premises licenses pricing model is a one-time fixed fee. Revenue is recognised at the point in time when the customer is provided with the ability to use the software. The fee is recognised as a revenue at the point of time when the customer has received legal title and physical possession, and the customer has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec license cloud-based subscription licenses (\u201cright to access\u201d), the license is not considered distinct from the online/hosting service. Revenue is recognised over time, over the license/contract period, as the customer is receiving and consuming the benefits of access to the cloud-based license on an ongoing basis. The cloud-based subscription licenses are sold for a fixed annual or monthly fee. Revenue is recognised linearly over the subscription time.
Software as a service (SaaS)
Software is provided over time to an end customer from a Data Center managed or contracted by Arribatec. The obligations in the SaaS contract are to offer cloud-based access to the license (owned by Arribatec), maintenance of the utility of the software, including rights to updates and future releases, and in some contracts, provide support.
The customer will purchase and obtain control of the software on a subscription or consumption basis. Revenue is therefore recognised periodically over the life of the SaaS contract.
In some cases, Arribatec has a separate installation and implementation contract regarding the same customer projects. When these contracts are negotiated close in time to each other, Arribatec considers whether the two contracts have been negotiated as a package with a single commercial objective, or not. If this is the case the two contracts are combined. If not, they are accounted for separately.
The implementation and installation services are capable of being distinct and distinct within the context of these contracts. This is concluded based on an analysis of the different deliveries and the performance obligations in the contract. Arribatec has therefore concluded that there are generally two distinct performance obliga-tions in the two combined contracts. When there are two combined contracts, the transaction price is allocated between the two
performance obligations based on relative stand-alone prices that are estimated based on the pricing of each element in the contract like hours, contract length, and options to extend the contract.
Arribatec\u2019s performance obligation under the installation and integra-tion contract is satisfied over time because the consulting services does not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is accordingly recognised over time as the installation and integration is performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premises or from the cloud. Managed services contracts are delivered at a fixed price and a minimum commitment to the customers, on a long-term contract. Additional work above the agreed level is considered normal consulting services.
Arribatec delivers an integrated set of services as defined in the managed service agreement. The customer receives and consumes the benefits from the Managed services as Arribatec performs under the contract. Therefore, the performance obligation is satisfied over time and revenue is recognised over time.
One-time revenue from third party hardware
In some contracts, Arribatec delivers both physical hardware and installation of software on the hardware, e.g. for self-service /check-in kiosks. In such cases, the hardware product is considered as a separate contract obligation that is recognised as revenue when it is installed.
Disaggregation of revenue
In the following table, revenue is disaggregated by primary Business area, geography and recurrence. In presenting the geographic information, revenue has been based on the geographic location of the legal entity.Note 21\tContract assets and liabilities
Consulting services
Arribatec provides implementation and integration services under consulting contracts with customers. Most contracts have a pricing structure where Arribatec agrees to implement and integrate software for a fixed hourly rate agreed upon in the contract, but where the number of hours to be delivered is not specified in the contract.
Arribatec\u2019s performance obligation is satisfied over time because the consulting services do not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is recognised over time, normally according to the invoiced hours for the period. A contract asset is recognised when the company has an unconditional right to payment. A contract liability is recognised when invoicing is done in advance compared to revenue recognition.
From time-to-time Arribatec has a fixed price consulting contract. In the same manner as for the contract with variable hours, the asset created does not have an alternative use for Arribatec and Arribatec has an enforceable right to payment in line with progress in the project. Arribatec recognises revenue over time, in line with progress in the project. Progress is estimated as hours spent at the balance sheet date divided with estimated total hours in the project. This requires estimating the remaining hours to complete.
Contract assets
Contract assets are recognised for performance obligations satis-fied over time, mainly from installation services and projects where progress is measured over time. When the consideration becomes unconditional the contract assets are reclassified to accounts receiv-able, which attributes the main changes to the contract assets in the periods.
Contract assets will typically occur in Saas projects where the customer pays a fixed annual or monthly fee over 3-5 years. In such cases revenue is recognised at the time where performance obliga-tions are met and registered as contract assets on the balance sheet. A reclassification to accounts receivable is done when the customer is invoiced.
NOK thousand | 2023 | 2022 |
As of 1 January | 16\u00a0276 | 19\u00a0549 |
Performance obligations met | 42\u00a0789 | 36\u00a0572 |
Reclassified to receivables | (35\u00a0305) | (40\u00a0272) |
Translation difference | 484 | 427 |
Total contract assets | 24\u00a0244 | 16\u00a0276 |
It is expected that 93% of the above contract assets will be reclassi-fied to receivables in 2024, 5% in 2025 followed by 2% in 2026.
The expected credit losses on Contracts assets are considered immaterial as the contracts are mainly with governmental parties and therefore secured Contracts are subject to valuation of credit losses in the same way as Account receivables.
Contract liabilities
Contract liabilities relate to consideration received in advance of performance under revenue contracts with customers. Revenue is recognised as (or when) the Group fulfils its performance obligation(s) under the contracts. Contract liabilities are presented in the table below:
NOK thousand | 2023 | 2022 |
As of 1 January | 16\u00a0476 | 21\u00a0483 |
Deferred revenue | 101\u00a0264 | 68\u00a0627 |
Recognised as revenue in P&L | (94\u00a0227) | (73\u00a0811) |
Translation difference | 806 | 177 |
Total contract liabilities | 24\u00a0319 | 16\u00a0476 |
Contract liabilities are mainly invoiced to customers in advance and relating to 2024. All liabilities per 1 January was recognised as revenue in P&L during the year.
Consulting services
Consulting services mainly come from time and material projects. The revenue is recognised as revenue as they are delivered to the customer every month. A receivable is recognised at the time of invoicing as this is the point in time when the right to consideration becomes unconditional.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the obligations of the company to provide those rights. IFRS 15 distinguishes between whether the license provides a\u201d right to use\u201d or a \u201cright to access\u201d IP. This impacts the timing of revenue recognition.
In most cases, the sale of licenses is part of SaaS contracts. Arribatec in some instances has contracts that include the sale of licenses only. Arribatec has analyzed its (partner) licensing contracts and concluded that it controls the license before it is transferred to the customer since Arribatec has legal ownership, physical possession, and the risk and reward of ownership before being transferred to the customer. Arribatec is therefore the principal in the customer contract.
When Arribatec licenses are distinct on-premises licenses (soft-ware installed on customers\u2019 server), these fall under the category \u201cright-to-use\u201d since the license grants the right to the IP \u201cas is\u201d when delivered. The distinct on-premises licenses pricing model is a one-time fixed fee. Revenue is recognised at the point in time when the customer is provided with the ability to use the software. The fee is recognised as a revenue at the point of time when the customer has received legal title and physical possession, and the customer has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec license cloud-based subscription licenses (\u201cright to access\u201d), the license is not considered distinct from the online/hosting service. Revenue is recognised over time, over the license/contract period, as the customer is receiving and consuming the benefits of access to the cloud-based license on an ongoing basis. The cloud-based subscription licenses are sold for a fixed annual or monthly fee. Revenue is recognised linearly over the subscription time.
Software as a service (SaaS)
Software is provided over time to an end customer from a Data Center managed or contracted by Arribatec. The obligations in the SaaS contract are to offer cloud-based access to the license (owned by Arribatec), maintenance of the utility of the software, including rights to updates and future releases, and in some contracts, provide support.
The customer will purchase and obtain control of the software on a subscription or consumption basis. Revenue is therefore recognised periodically over the life of the SaaS contract.
In some cases, Arribatec has a separate installation and implementation contract regarding the same customer projects. When these contracts are negotiated close in time to each other, Arribatec considers whether the two contracts have been negotiated as a package with a single commercial objective, or not. If this is the case the two contracts are combined. If not, they are accounted for separately.
The implementation and installation services are capable of being distinct and distinct within the context of these contracts. This is concluded based on an analysis of the different deliveries and the performance obligations in the contract. Arribatec has therefore concluded that there are generally two distinct performance obliga-tions in the two combined contracts. When there are two combined contracts, the transaction price is allocated between the two
performance obligations based on relative stand-alone prices that are estimated based on the pricing of each element in the contract like hours, contract length, and options to extend the contract.
Arribatec\u2019s performance obligation under the installation and integra-tion contract is satisfied over time because the consulting services does not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is accordingly recognised over time as the installation and integration is performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premises or from the cloud. Managed services contracts are delivered at a fixed price and a minimum commitment to the customers, on a long-term contract. Additional work above the agreed level is considered normal consulting services.
Arribatec delivers an integrated set of services as defined in the managed service agreement. The customer receives and consumes the benefits from the Managed services as Arribatec performs under the contract. Therefore, the performance obligation is satisfied over time and revenue is recognised over time.
One-time revenue from third party hardware
In some contracts, Arribatec delivers both physical hardware and installation of software on the hardware, e.g. for self-service /check-in kiosks. In such cases, the hardware product is considered as a separate contract obligation that is recognised as revenue when it is installed.
Disaggregation of revenue
In the following table, revenue is disaggregated by primary Business area, geography and recurrence. In presenting the geographic information, revenue has been based on the geographic location of the legal entity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f19878": { "value": "Note 4\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the revenue and cost occurs.
The cost of finished goods and work in progress comprises design costs, raw materials, direct labour and other direct costs. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
It excludes borrowing costs and own operating cost.
NOK thousand | 2023 | 2022 |
Hired consultans | (40\u00a0302) | (48\u00a0851) |
Hardware for resale | (8\u00a0999) | (7\u00a0738) |
Software for resale | (66\u00a0896) | (58\u00a0212) |
Other | (16\u00a0475) | (234) |
Total materials, software and services | (132\u00a0673) | (115\u00a0035) |
Note 4\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the revenue and cost occurs.
The cost of finished goods and work in progress comprises design costs, raw materials, direct labour and other direct costs. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
It excludes borrowing costs and own operating cost.
NOK thousand | 2023 | 2022 |
Hired consultans | (40\u00a0302) | (48\u00a0851) |
Hardware for resale | (8\u00a0999) | (7\u00a0738) |
Software for resale | (66\u00a0896) | (58\u00a0212) |
Other | (16\u00a0475) | (234) |
Total materials, software and services | (132\u00a0673) | (115\u00a0035) |
Note 5\tPersonnel
NOK thousand | 2023 | 2022 |
Salaries | (271\u00a0802) | (256\u00a0568) |
Social security tax | (42\u00a0480) | (38\u00a0407) |
Bonuses | (6\u00a0752) | (6\u00a0878) |
Share option cost | (620) | 0 |
Pension costs defined contribution (Note27) | (20\u00a0105) | (19\u00a0337) |
Other personnel cost | (4\u00a0850) | (17\u00a0609) |
Total salaries and personnel expense | (346\u00a0608) | (338\u00a0800) |
Average number of FTEs
2023 | 2022 | |
Number os FTEs, start of year | 353 | 374 |
Number os FTEs, end of year | 329 | 353 |
Average number of FTEs | 341 | 363 |
Gender split, end of year | ||
Male | 215 | 233 |
Female | 114 | 120 |
Number of FTEs, end of year, per country
2023 | 2022 | |
Belgium | 0 | 1 |
Cyprus | 3 | 3 |
Denmark | 1 | 1 |
France | 4 | 2 |
Germany | 0 | 3 |
Italy | 28 | 35 |
Norway | 208 | 204 |
Netherlands | 0 | 1 |
Poland | 0 | 7 |
Singapore | 1 | 2 |
Spain | 25 | 26 |
Sweden | 16 | 22 |
United Kingdom | 33 | 31 |
USA | 11 | 15 |
Total number of FTEs | 329 | 353 |
Pension obligations
The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 2Note 2Note 2Note 27for further description. The group only has defined contribu-tion retirement plans.Note 27for further description. The group only has defined contribu-tion retirement plans.7for further description. The group only has defined contribu-tion retirement plans.
Note 7\tOther operating expense
NOK thousand | 2023 | 2022 |
Marketing cost | (4\u00a0966) | (4\u00a0385) |
Rental and leasing cost1 | (8\u00a0145) | (8\u00a0750) |
Travel cost | (11\u00a0348) | (7\u00a0929) |
Fees for external services | (18\u00a0784) | (29\u00a0261) |
IT and communication cost | (16\u00a0992) | (19\u00a0829) |
Loss on sale of intangible fixed assets | 0 | (4\u00a0241) |
Other operating cost2 | (9\u00a0001) | (10\u00a0846) |
Total operating expenses | (69\u00a0236) | (85\u00a0241) |
1Includes common cost related to premises, such as electricity, cleaning, moving cost and cost in relation to non-material leasing contracts.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
NOK thousand | 2023 | 2022 |
Specification of auditor\u2019s fee | ||
Statutory audit | (1\u00a0224) | (2\u00a0988) |
Other assurance services | (11) | (62) |
Other non-assurance services | (132) | (306) |
Total | (1\u00a0366) | (3\u00a0355) |
Note 4\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the revenue and cost occurs.
The cost of finished goods and work in progress comprises design costs, raw materials, direct labour and other direct costs. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
It excludes borrowing costs and own operating cost.
NOK thousand | 2023 | 2022 |
Hired consultans | (40\u00a0302) | (48\u00a0851) |
Hardware for resale | (8\u00a0999) | (7\u00a0738) |
Software for resale | (66\u00a0896) | (58\u00a0212) |
Other | (16\u00a0475) | (234) |
Total materials, software and services | (132\u00a0673) | (115\u00a0035) |
Note 7\tOther operating expense
NOK thousand | 2023 | 2022 |
Marketing cost | (4\u00a0966) | (4\u00a0385) |
Rental and leasing cost1 | (8\u00a0145) | (8\u00a0750) |
Travel cost | (11\u00a0348) | (7\u00a0929) |
Fees for external services | (18\u00a0784) | (29\u00a0261) |
IT and communication cost | (16\u00a0992) | (19\u00a0829) |
Loss on sale of intangible fixed assets | 0 | (4\u00a0241) |
Other operating cost2 | (9\u00a0001) | (10\u00a0846) |
Total operating expenses | (69\u00a0236) | (85\u00a0241) |
1Includes common cost related to premises, such as electricity, cleaning, moving cost and cost in relation to non-material leasing contracts.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
NOK thousand | 2023 | 2022 |
Specification of auditor\u2019s fee | ||
Statutory audit | (1\u00a0224) | (2\u00a0988) |
Other assurance services | (11) | (62) |
Other non-assurance services | (132) | (306) |
Total | (1\u00a0366) | (3\u00a0355) |
Note 4\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the revenue and cost occurs.
The cost of finished goods and work in progress comprises design costs, raw materials, direct labour and other direct costs. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
It excludes borrowing costs and own operating cost.
NOK thousand | 2023 | 2022 |
Hired consultans | (40\u00a0302) | (48\u00a0851) |
Hardware for resale | (8\u00a0999) | (7\u00a0738) |
Software for resale | (66\u00a0896) | (58\u00a0212) |
Other | (16\u00a0475) | (234) |
Total materials, software and services | (132\u00a0673) | (115\u00a0035) |
Note 5\tPersonnel
NOK thousand | 2023 | 2022 |
Salaries | (271\u00a0802) | (256\u00a0568) |
Social security tax | (42\u00a0480) | (38\u00a0407) |
Bonuses | (6\u00a0752) | (6\u00a0878) |
Share option cost | (620) | 0 |
Pension costs defined contribution (Note27) | (20\u00a0105) | (19\u00a0337) |
Other personnel cost | (4\u00a0850) | (17\u00a0609) |
Total salaries and personnel expense | (346\u00a0608) | (338\u00a0800) |
Average number of FTEs
2023 | 2022 | |
Number os FTEs, start of year | 353 | 374 |
Number os FTEs, end of year | 329 | 353 |
Average number of FTEs | 341 | 363 |
Gender split, end of year | ||
Male | 215 | 233 |
Female | 114 | 120 |
Number of FTEs, end of year, per country
2023 | 2022 | |
Belgium | 0 | 1 |
Cyprus | 3 | 3 |
Denmark | 1 | 1 |
France | 4 | 2 |
Germany | 0 | 3 |
Italy | 28 | 35 |
Norway | 208 | 204 |
Netherlands | 0 | 1 |
Poland | 0 | 7 |
Singapore | 1 | 2 |
Spain | 25 | 26 |
Sweden | 16 | 22 |
United Kingdom | 33 | 31 |
USA | 11 | 15 |
Total number of FTEs | 329 | 353 |
Pension obligations
The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 2Note 2Note 2Note 27for further description. The group only has defined contribu-tion retirement plans.Note 27for further description. The group only has defined contribu-tion retirement plans.7for further description. The group only has defined contribu-tion retirement plans.
Note 27\tPensions
Arribatec group meets the different local mandatory occupational pension requirement.
Arribatec operates defined contribution retirement benefit plans for all qualifying employees of its subsidi-aries in Norway, Sweden and Denmark. The only obligation of the group with respect to retirement benefit plan is to make the specified contributions.
The employees of other subsidiaries are members of a state managed retirement benefit plan operated by the government. The subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f20475": { "value": "The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 2Note 2Note 2Note 27for further description. The group only has defined contribu-tion retirement plans.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f20611": { "value": "Note 6\tKey management
The Group Management consists of the Group Directors. Group Directors are the CEO, COO, CFO, CPOO and CCO that are all employed by the parent company. The IT Director is employed by one of the subsidiaries.
Compensation to the management during the year is detailed in this note. Amounts presented are the total part of salary, not only the part for the Group management role.
The Group CEO has a three-month notice period and is entitled to severance pay for twelve months in case of termination initiated by the company. None of the Board members or the CEO have executive loans or guarantees in the company.
See remuneration report for details on bonus and share option program in relation to management.
Management remuneration 2023
NOK thousand | Board remuneration | Audit committee remuneration | Salary | Bonus | Benefits in kind | Share option cost | Pension cost | Total remuneration |
Management | ||||||||
Geir Johansen - CEO | 0 | 0 | 4\u00a0000 | 0 | 17 | 38 | 100 | 4\u00a0154 |
Ole Jakob Kj\u00f8lvik - COO | 0 | 0 | 1\u00a0559 | 137 | 17 | 28 | 100 | 1\u00a0840 |
Bente Brocks - CFO (interim) | 0 | 0 | 1\u00a0762 | 0 | 14 | 34 | 100 | 1\u00a0909 |
Erik Sundet - Group IT director (50% mgmt) | 0 | 0 | 1\u00a0231 | 0 | 56 | 28 | 86 | 1\u00a0401 |
P\u00e5l Stueflotten - CCO | 0 | 0 | 1\u00a0458 | 513 | 84 | 28 | 100 | 2\u00a0182 |
Solfrid Bu\u00f8 - CPOO | 0 | 0 | 1\u00a0500 | 0 | 24 | 28 | 100 | 1\u00a0652 |
Management total | 0 | 0 | 11\u00a0509 | 649 | 212 | 184 | 584 | 13\u00a0138 |
Members of the Board | ||||||||
Martin Nes (Chairman) | 265 | 38 | 0 | 0 | 0 | 0 | 0 | 303 |
\u00d8ystein S. Spetalen (Member) | 215 | 0 | 0 | 0 | 0 | 0 | 0 | 215 |
Kristin Hellebust (Member) | 215 | 33 | 0 | 0 | 0 | 0 | 0 | 248 |
Linn Katrine H\u00f8ie (Member) | 215 | 0 | 0 | 0 | 0 | 0 | 0 | 215 |
Terje Mj\u00f8s (Member, from May-23) | 131 | 20 | 0 | 0 | 0 | 0 | 0 | 152 |
Henrik Lie-Nielsen (Member, to May-23) | 83 | 13 | 0 | 0 | 0 | 0 | 0 | 96 |
Members of the Board total | 1\u00a0123 | 104 | 0 | 0 | 0 | 0 | 0 | 1\u00a0227 |
Total salaries and personnel expense | 1\u00a0123 | 104 | 11\u00a0509 | 649 | 212 | 184 | 584 | 14\u00a0365 |
Management remuneration 2022
NOK thousand | Board remuneration | Audit committee remuneration | Salary | Bonus | Benefits in kind | Share option cost | Pension cost | Total remuneration |
Management | ||||||||
Geir Johansen - CEO | 0 | 0 | 2\u00a0700 | 0 | 11 | 0 | 90 | 2\u00a0800 |
Ole Jakob Kj\u00f8lvik - COO | 0 | 0 | 1\u00a0500 | 0 | 16 | 0 | 90 | 1\u00a0606 |
Bente Brocks - CFO (interim) | 0 | 0 | 1\u00a0680 | 0 | 11 | 0 | 90 | 1\u00a0781 |
Erik Sundet - Group IT director (50% mgmt) | 0 | 0 | 993 | 48 | 21 | 0 | 69 | 1\u00a0132 |
P\u00e5l Stueflotten - CCO (from May-22) | 0 | 0 | 800 | 0 | 74 | 0 | 56 | 930 |
Solfrid Bu\u00f8 - Chief People & Organisation Officer (from Nov-22) | 0 | 0 | 217 | 0 | 3 | 0 | 15 | 235 |
Grete Thomassen - HR director (to Apr-22) | 0 | 0 | 400 | 0 | 4 | 0 | 28 | 432 |
Espen Karsrud - Group EVP Business Development (to Apr-22) | 0 | 0 | 500 | 0 | 4 | 0 | 35 | 539 |
Management total | 0 | 0 | 8\u00a0790 | 48 | 144 | 0 | 473 | 9\u00a0455 |
Members of the Board | ||||||||
Martin Nes (Chairman) | 279 | 20 | 0 | 0 | 0 | 0 | 0 | 300 |
\u00d8ystein S. Spetalen (Member) | 217 | 0 | 0 | 0 | 0 | 0 | 0 | 217 |
Kristin Hellebust (Member) | 217 | 18 | 0 | 0 | 0 | 0 | 0 | 234 |
Henrik Lie-Nielsen (Member) | 217 | 18 | 0 | 0 | 0 | 0 | 0 | 234 |
Linn Katrine H\u00f8ie (Member) (from May-22) | 117 | 0 | 0 | 0 | 0 | 0 | 0 | 117 |
Yvonne Litsheim Sandvold (Member) (to May-22) | 100 | 0 | 0 | 0 | 0 | 0 | 0 | 100 |
Members of the Board total | 1\u00a0146 | 55 | 0 | 0 | 0 | 0 | 0 | 1\u00a0201 |
Total salaries and personnel expense | 1\u00a0146 | 55 | 8\u00a0790 | 48 | 144 | 0 | 473 | 10\u00a0656 |
The following remuneration has been made to the members of the nomination committee during the year:
NOK thousand | 2023 | 2022 |
Nomination committee | ||
Espen Lundaas (head) | 20 | 40 |
\u00d8ystein Tvenge (member) | 0 | 0 |
Total | 20 | 40 |
Note 7\tOther operating expense
NOK thousand | 2023 | 2022 |
Marketing cost | (4\u00a0966) | (4\u00a0385) |
Rental and leasing cost1 | (8\u00a0145) | (8\u00a0750) |
Travel cost | (11\u00a0348) | (7\u00a0929) |
Fees for external services | (18\u00a0784) | (29\u00a0261) |
IT and communication cost | (16\u00a0992) | (19\u00a0829) |
Loss on sale of intangible fixed assets | 0 | (4\u00a0241) |
Other operating cost2 | (9\u00a0001) | (10\u00a0846) |
Total operating expenses | (69\u00a0236) | (85\u00a0241) |
1Includes common cost related to premises, such as electricity, cleaning, moving cost and cost in relation to non-material leasing contracts.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
NOK thousand | 2023 | 2022 |
Specification of auditor\u2019s fee | ||
Statutory audit | (1\u00a0224) | (2\u00a0988) |
Other assurance services | (11) | (62) |
Other non-assurance services | (132) | (306) |
Total | (1\u00a0366) | (3\u00a0355) |
Note 7\tOther operating expense
NOK thousand | 2023 | 2022 |
Marketing cost | (4\u00a0966) | (4\u00a0385) |
Rental and leasing cost1 | (8\u00a0145) | (8\u00a0750) |
Travel cost | (11\u00a0348) | (7\u00a0929) |
Fees for external services | (18\u00a0784) | (29\u00a0261) |
IT and communication cost | (16\u00a0992) | (19\u00a0829) |
Loss on sale of intangible fixed assets | 0 | (4\u00a0241) |
Other operating cost2 | (9\u00a0001) | (10\u00a0846) |
Total operating expenses | (69\u00a0236) | (85\u00a0241) |
1Includes common cost related to premises, such as electricity, cleaning, moving cost and cost in relation to non-material leasing contracts.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
NOK thousand | 2023 | 2022 |
Specification of auditor\u2019s fee | ||
Statutory audit | (1\u00a0224) | (2\u00a0988) |
Other assurance services | (11) | (62) |
Other non-assurance services | (132) | (306) |
Total | (1\u00a0366) | (3\u00a0355) |
Note 8\tProperty, plant and equipment
Property, plant and equipment are measured at cost in the balance sheet, with a deduction for accumulated depreciation and impairment. Depreciation is made on a straight-line basis over the asset\u2019s estimated useful life, which is assessed on an individual basis, ranging from five to ten years.
2023
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2023 | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Additions | 2\u00a0442 | 147 | 104 | 2\u00a0693 |
Reclassifications | (57) | 0 | 0 | (57) |
Sale | (244) | 0 | (5) | (249) |
Disposals | (1\u00a0246) | (381) | (174) | (1\u00a0800) |
Translation difference | 693 | 162 | 60 | 914 |
Cost, end of period | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Accumulated depreciation at 1 Jan 2023 | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Depreciation during the year | (1\u00a0969) | (739) | (176) | (2\u00a0884) |
Reclassifications | 57 | 0 | 0 | 57 |
Sale | 222 | 0 | 5 | 227 |
Disposals | 1\u00a0202 | 381 | 165 | 1\u00a0747 |
Translation difference | (610) | (71) | (48) | (729) |
Accumulated depreciation, end of period | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Carrying amount at 31 Dec 2023 | 3\u00a0432 | 2\u00a0197 | 808 | 6\u00a0436 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
2022
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2022 | 18\u00a0819 | 3\u00a0572 | 1\u00a0239 | 23\u00a0631 |
Additions | 788 | 1\u00a0147 | 29 | 1\u00a0964 |
Reclassifications | (2\u00a0468) | 267 | 757 | (1\u00a0444) |
Sale | (370) | (14) | (160) | (545) |
Disposals | (426) | - | (117) | (543) |
Translation difference | 442 | 56 | 89 | 587 |
Cost, end of period | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Accumulated depreciation at 1 Jan 2022 | (13\u00a0943) | (1\u00a0463) | (779) | (16\u00a0185) |
Depreciation during the year | (1\u00a0634) | (701) | (170) | (2\u00a0505) |
Reclassifications | 1\u00a0511 | (143) | (145) | 1\u00a0224 |
Sale | 294 | 5 | 132 | 431 |
Disposals | 335 | (0) | 45 | 381 |
Translation difference | (405) | (30) | (43) | (478) |
Accumulated depreciation, end of period | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Carrying amount at 31 Dec 2022 | 2\u00a0942 | 2\u00a0697 | 877 | 6\u00a0517 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
Note 8\tProperty, plant and equipment
Property, plant and equipment are measured at cost in the balance sheet, with a deduction for accumulated depreciation and impairment. Depreciation is made on a straight-line basis over the asset\u2019s estimated useful life, which is assessed on an individual basis, ranging from five to ten years.
2023
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2023 | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Additions | 2\u00a0442 | 147 | 104 | 2\u00a0693 |
Reclassifications | (57) | 0 | 0 | (57) |
Sale | (244) | 0 | (5) | (249) |
Disposals | (1\u00a0246) | (381) | (174) | (1\u00a0800) |
Translation difference | 693 | 162 | 60 | 914 |
Cost, end of period | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Accumulated depreciation at 1 Jan 2023 | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Depreciation during the year | (1\u00a0969) | (739) | (176) | (2\u00a0884) |
Reclassifications | 57 | 0 | 0 | 57 |
Sale | 222 | 0 | 5 | 227 |
Disposals | 1\u00a0202 | 381 | 165 | 1\u00a0747 |
Translation difference | (610) | (71) | (48) | (729) |
Accumulated depreciation, end of period | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Carrying amount at 31 Dec 2023 | 3\u00a0432 | 2\u00a0197 | 808 | 6\u00a0436 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
2022
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2022 | 18\u00a0819 | 3\u00a0572 | 1\u00a0239 | 23\u00a0631 |
Additions | 788 | 1\u00a0147 | 29 | 1\u00a0964 |
Reclassifications | (2\u00a0468) | 267 | 757 | (1\u00a0444) |
Sale | (370) | (14) | (160) | (545) |
Disposals | (426) | - | (117) | (543) |
Translation difference | 442 | 56 | 89 | 587 |
Cost, end of period | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Accumulated depreciation at 1 Jan 2022 | (13\u00a0943) | (1\u00a0463) | (779) | (16\u00a0185) |
Depreciation during the year | (1\u00a0634) | (701) | (170) | (2\u00a0505) |
Reclassifications | 1\u00a0511 | (143) | (145) | 1\u00a0224 |
Sale | 294 | 5 | 132 | 431 |
Disposals | 335 | (0) | 45 | 381 |
Translation difference | (405) | (30) | (43) | (478) |
Accumulated depreciation, end of period | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Carrying amount at 31 Dec 2022 | 2\u00a0942 | 2\u00a0697 | 877 | 6\u00a0517 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
Note 8\tProperty, plant and equipment
Property, plant and equipment are measured at cost in the balance sheet, with a deduction for accumulated depreciation and impairment. Depreciation is made on a straight-line basis over the asset\u2019s estimated useful life, which is assessed on an individual basis, ranging from five to ten years.
2023
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2023 | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Additions | 2\u00a0442 | 147 | 104 | 2\u00a0693 |
Reclassifications | (57) | 0 | 0 | (57) |
Sale | (244) | 0 | (5) | (249) |
Disposals | (1\u00a0246) | (381) | (174) | (1\u00a0800) |
Translation difference | 693 | 162 | 60 | 914 |
Cost, end of period | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Accumulated depreciation at 1 Jan 2023 | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Depreciation during the year | (1\u00a0969) | (739) | (176) | (2\u00a0884) |
Reclassifications | 57 | 0 | 0 | 57 |
Sale | 222 | 0 | 5 | 227 |
Disposals | 1\u00a0202 | 381 | 165 | 1\u00a0747 |
Translation difference | (610) | (71) | (48) | (729) |
Accumulated depreciation, end of period | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Carrying amount at 31 Dec 2023 | 3\u00a0432 | 2\u00a0197 | 808 | 6\u00a0436 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
2022
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2022 | 18\u00a0819 | 3\u00a0572 | 1\u00a0239 | 23\u00a0631 |
Additions | 788 | 1\u00a0147 | 29 | 1\u00a0964 |
Reclassifications | (2\u00a0468) | 267 | 757 | (1\u00a0444) |
Sale | (370) | (14) | (160) | (545) |
Disposals | (426) | - | (117) | (543) |
Translation difference | 442 | 56 | 89 | 587 |
Cost, end of period | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Accumulated depreciation at 1 Jan 2022 | (13\u00a0943) | (1\u00a0463) | (779) | (16\u00a0185) |
Depreciation during the year | (1\u00a0634) | (701) | (170) | (2\u00a0505) |
Reclassifications | 1\u00a0511 | (143) | (145) | 1\u00a0224 |
Sale | 294 | 5 | 132 | 431 |
Disposals | 335 | (0) | 45 | 381 |
Translation difference | (405) | (30) | (43) | (478) |
Accumulated depreciation, end of period | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Carrying amount at 31 Dec 2022 | 2\u00a0942 | 2\u00a0697 | 877 | 6\u00a0517 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
Note 8\tProperty, plant and equipment
Property, plant and equipment are measured at cost in the balance sheet, with a deduction for accumulated depreciation and impairment. Depreciation is made on a straight-line basis over the asset\u2019s estimated useful life, which is assessed on an individual basis, ranging from five to ten years.
2023
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2023 | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Additions | 2\u00a0442 | 147 | 104 | 2\u00a0693 |
Reclassifications | (57) | 0 | 0 | (57) |
Sale | (244) | 0 | (5) | (249) |
Disposals | (1\u00a0246) | (381) | (174) | (1\u00a0800) |
Translation difference | 693 | 162 | 60 | 914 |
Cost, end of period | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Accumulated depreciation at 1 Jan 2023 | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Depreciation during the year | (1\u00a0969) | (739) | (176) | (2\u00a0884) |
Reclassifications | 57 | 0 | 0 | 57 |
Sale | 222 | 0 | 5 | 227 |
Disposals | 1\u00a0202 | 381 | 165 | 1\u00a0747 |
Translation difference | (610) | (71) | (48) | (729) |
Accumulated depreciation, end of period | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Carrying amount at 31 Dec 2023 | 3\u00a0432 | 2\u00a0197 | 808 | 6\u00a0436 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
2022
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2022 | 18\u00a0819 | 3\u00a0572 | 1\u00a0239 | 23\u00a0631 |
Additions | 788 | 1\u00a0147 | 29 | 1\u00a0964 |
Reclassifications | (2\u00a0468) | 267 | 757 | (1\u00a0444) |
Sale | (370) | (14) | (160) | (545) |
Disposals | (426) | - | (117) | (543) |
Translation difference | 442 | 56 | 89 | 587 |
Cost, end of period | 16\u00a0785 | 5\u00a0028 | 1\u00a0837 | 23\u00a0650 |
Accumulated depreciation at 1 Jan 2022 | (13\u00a0943) | (1\u00a0463) | (779) | (16\u00a0185) |
Depreciation during the year | (1\u00a0634) | (701) | (170) | (2\u00a0505) |
Reclassifications | 1\u00a0511 | (143) | (145) | 1\u00a0224 |
Sale | 294 | 5 | 132 | 431 |
Disposals | 335 | (0) | 45 | 381 |
Translation difference | (405) | (30) | (43) | (478) |
Accumulated depreciation, end of period | (13\u00a0842) | (2\u00a0331) | (959) | (17\u00a0133) |
Carrying amount at 31 Dec 2022 | 2\u00a0942 | 2\u00a0697 | 877 | 6\u00a0517 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Note 9\tRight-of-use assets and lease liabilities
Right of use assets and Lease liabilities
The Group recognises leasing contracts as Right of use assets and lease liabilities. The exemptions are short term leases (defined as twelve months or loss) and/or low value assets. Contracts not mate-rial to IFRS 16 are expensed in P&L as they occur.
Leases that fulfill the criteria are recognised in balances sheet and the Group recognises the lease payments as other operating expenses in the statement of profit or loss when they incur.
The lease term represents the non-cancellable period of the lease, together with estimated periods where the option to extend or termi-nate contracts when the Group is reasonably certain to exercise this option. This is mainly valid for facility agreements that are about to expire, but there is no plan to change location.
The Group presents its lease liabilities as separate line items in the statement of financial position.
Right-of-use assets
NOK thousand | Buildings | Vehicles | Hardware | Other | Total |
Right-of-use assets per 1 Jan 2022 | 18\u00a0149 | 430 | 3\u00a0139 | 8\u00a0548 | 30\u00a0266 |
Addition of right-of-use assets | 18\u00a0336 | 0 | 37 | 9\u00a0836 | 28\u00a0209 |
Depreciation in the period | (10\u00a0791) | (345) | (1\u00a0561) | (4\u00a0518) | (17\u00a0215) |
Reclassification | 6\u00a0631 | 1 | 191 | (6\u00a0822) | 0 |
Translation difference | 447 | 3 | 9 | 0 | 459 |
Right-of-use assets per 1 Jan 2023 | 32\u00a0773 | 89 | 1\u00a0814 | 7\u00a0043 | 41\u00a0719 |
Addition of right-of-use assets | 4\u00a0740 | 724 | 1\u00a0135 | 270 | 6\u00a0869 |
Correction of initial index regulation, addition part | (1\u00a0372) | 0 | 0 | 0 | (1\u00a0372) |
Depreciation in the period | (13\u00a0320) | (235) | (1\u00a0650) | (3\u00a0458) | (18\u00a0663) |
Correction of initial index regulation, reversal of depr. prev.years | 180 | 0 | 0 | 0 | 180 |
Reclassification between categories | (41) | 41 | 0 | 0 | 0 |
Disposals | (952) | 0 | 0 | 0 | (952) |
Translation difference | 657 | 1 | 1 | 0 | 659 |
Carrying amount of right-of-use assets, end of period | 22\u00a0665 | 620 | 1\u00a0299 | 3\u00a0856 | 28\u00a0442 |
Remaining lease term | 1-5 years | 1-4 years | 1-3 years | 1-3 years | |
Depreciation method | Linear | Linear | Linear | Linear |
Lease liabilities
NOK thousand | 31 Dec 2023 | 31 Dec 2022 |
Undiscounted lease liabilities and maturity of cash outflow | ||
< 1 year | 13\u00a0609 | 17\u00a0782 |
1-2 years | 9\u00a0421 | 12\u00a0435 |
2-3 years | 5\u00a0344 | 8\u00a0306 |
3-4 years | 2\u00a0064 | 4\u00a0811 |
4-5 years | 546 | 1\u00a0566 |
> 5 years | 0 | 621 |
Total undiscounted lease liabilities, end of period | 30\u00a0984 | 45\u00a0521 |
Discount element | (1\u00a0239) | (2\u00a0028) |
Total discounted lease liabilities, end of period | 29\u00a0745 | 43\u00a0492 |
NOK thousand | 2023 | 2022 |
Total lease liabilities, end of period | 29\u00a0745 | 43\u00a0492 |
Lower liabilities at end of 2023 from 2022 is mainly due to some office locations that have been cancelled. The payments made on lease liabilities are presented in the cash flow statement on a separate line.
The interest rate used for discounting the lease liability is based on the same as according to the terms of interest rate from the Group\u2019s internal financing. See Note 11for interest expenses related to leasing contracts.
The Group recognises leasing contracts as Right of use assets and lease liabilities. The exemptions are short term leases (defined as twelve months or loss) and/or low value assets. Contracts not mate-rial to IFRS 16 are expensed in P&L as they occur.
Leases that fulfill the criteria are recognised in balances sheet and the Group recognises the lease payments as other operating expenses in the statement of profit or loss when they incur.
The lease term represents the non-cancellable period of the lease, together with estimated periods where the option to extend or termi-nate contracts when the Group is reasonably certain to exercise this option. This is mainly valid for facility agreements that are about to expire, but there is no plan to change location.
The Group presents its lease liabilities as separate line items in the statement of financial position.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f24112": { "value": "Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Note 10\tIntangible assets
Acquisition costs
Acquisition costs incurred are expensed and included in operating expenses. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in the income statement as financial income or expense.
Government grants
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. During 2023, Arribatec received government grants in the form of SkatteFUNN in relation to a development project of 0.6m NOK in 2023 (1.0m NOK).
2023
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2023 | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Additions | 0 | 0 | 0 | 0 | 3\u00a0634 | 3\u00a0634 |
Additions - internally developed | 0 | 0 | 12\u00a0868 | 0 | 0 | 12\u00a0868 |
Less government grants | 0 | 0 | (604) | 0 | 0 | (604) |
Reclassifications\u200c1 | 0 | 0 | (2\u00a0249) | 2\u00a0249 | 7 | 7 |
Disposals | 0 | 0 | (5\u00a0559) | (0) | (161) | (5\u00a0720) |
Translation difference | 1\u00a0875 | 1\u00a0541 | 1\u00a0099 | 937 | 71 | 5\u00a0523 |
Cost, end of period | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Accumulated amortisations at 1 Jan 2023 | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Amortisation | 0 | (11\u00a0721) | (9\u00a0969) | (3\u00a0086) | (2\u00a0165) | (26\u00a0941) |
Reclassifications\u200c1 | 0 | 0 | 1\u00a0253 | (1\u00a0253) | (7) | (7) |
Disposals | 0 | 0 | 5\u00a0559 | (0) | 84 | 5\u00a0644 |
Translation difference | 0 | (332) | (399) | (423) | (50) | (1\u00a0204) |
Accumulated amortisation and impairment, end of period | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Carrying amount at 31 Dec 2023 | 206\u00a0457 | 24\u00a0125 | 32\u00a0593 | 5\u00a0393 | 5\u00a0785 | 274\u00a0352 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Goodwill and customer relations are pure excess values and are explained in Note 14.The main part of technical software is also related intangible excess values IB, Italy.
Custom software consists of internally developed software. Technical software is other intangible assets and trademarks.
For Impairment testing on Goodwill, see Note 14. Conducted impair-ment test applies for all intangible assets.
Research and Development cost
Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
The assets acquired in a business combination are recognised at fair value on the acquisition date. Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their useful lives of 3 to 5 years.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Goodwill
In accordance with requirements in IAS 36, the group annually tests whether goodwill has suffered any impairment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been determined based on value-in-use calculations. These calculations require the use of estimates. The value-in-use calculation is based on a discounted cash flow model. The cash flows are derived from the budgets and forecasts for the next five years, as approved by the Company\u2019s Board of Directors, and do not include significant investments that will enhance the performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash-inflows (sensitive to estimates of sales and cost levels) and the growth rate used for extrapolation purposes. Further details regarding goodwill and impair-ment reviews are included in Note 14Impairment.
2022
NOK thousand | Goodwill | Customer relations | Other intangible assets;Custom software | Other intangible assets;Technical software | Other intangible assets;Licenses | Total |
Cost at 1 Jan 2022 | 205\u00a0279 | 57\u00a0526 | 29\u00a0975 | 54\u00a0353 | 4\u00a0979 | 352\u00a0112 |
Additions | 0 | 0 | 887 | 0 | 1\u00a0240 | 2\u00a0127 |
Additions - internally developed | 0 | 0 | 11\u00a0755 | 0 | 0 | 11\u00a0755 |
Less government grants | 0 | 0 | (1\u00a0006) | 0 | 0 | (1\u00a0006) |
Reclassifications1 | 0 | (691) | 44\u00a0003 | (32\u00a0619) | 1\u00a0551 | 12\u00a0244 |
Sale of asset | (910) | 0 | 0 | (9\u00a0202) | 0 | (10\u00a0113) |
Disposals | 0 | 0 | (35\u00a0302) | 0 | 0 | (35\u00a0302) |
Translation difference | 213 | (36) | 1\u00a0570 | 1\u00a0122 | (17) | 2\u00a0852 |
Cost, end of period | 204\u00a0581 | 56\u00a0799 | 51\u00a0883 | 13\u00a0654 | 7\u00a0752 | 334\u00a0669 |
Accumulated amortisations at 1 Jan 2022 | 0 | (11\u00a0495) | (10\u00a0093) | (13\u00a0523) | (643) | (35\u00a0755) |
Amortisation | 0 | (11\u00a0360) | (13\u00a0962) | (3\u00a0887) | (1\u00a0689) | (30\u00a0898) |
Impairment | 0 | 0 | (5\u00a0606) | 0 | 0 | (5\u00a0606) |
Reclassifications1 | 0 | 691 | (19\u00a0283) | 7\u00a0614 | (1\u00a0054) | (12\u00a0032) |
Sale of asset | 0 | 0 | 0 | 3\u00a0527 | 0 | 3\u00a0527 |
Disposals | 0 | 0 | 28\u00a0408 | 0 | 0 | 28\u00a0408 |
Translation difference | 0 | 2 | (754) | (416) | 6 | (1\u00a0163) |
Accumulated amortisation and impairment, end of period | 0 | (22\u00a0162) | (21\u00a0290) | (6\u00a0684) | (3\u00a0381) | (53\u00a0517) |
Carrying amount at 31 Dec 2022 | 204\u00a0581 | 34\u00a0637 | 30\u00a0593 | 6\u00a0969 | 4\u00a0372 | 281\u00a0152 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Reclassifications made between categories
Government grants are recognised when there is reasonable assur-ance that the grant will be received, and all associated conditions will be complied with. When the grant relates to an asset, it reduces the carrying amount of the asset. The grant is then recognised in profit or
loss over the useful life of the depreciable asset by way of a reduced depreciation charge. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f24840": { "value": "Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f24841": { "value": "Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s8_notes__7__58-1": { "value": "Development expenditures are capitalized only when the criterion for recognition is met, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, management has committed itself to complete the asset, the technical feasibility of completing the asset has been demonstrated and the cost can be measured reliably. Research costs are expensed in full.
The assets are amortized over their expected useful life once the assets are available for use. During the period of development, the asset is tested for impairment annually. Development costs that do not meet the criteria for capitalization are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talization are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditures after the internal generated software is ready to be used in customer deliveries are recognized as an operating mainte-nance cost in the profit and loss statement.
Note 14\tGoodwill and impairment
Goodwill recognised in the consolidated financial position are mainly derived from excess value following the acquisitions of Instidata AS in 2019, Facil AS, Microsky AS and Innit AS in 2020 and Maksit AS, Qualisoft AS, IB Group and Integra Ass. Ltd in 2021. Recognised goodwill amounts to NOK 206.5m as of 31 December 2023 (NOK 204.6m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 31.8 million as per 31 December 2023 (NOK 45.3m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortized, ref Note10.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually, and when there are indications of impairment. There were no impairment indications in the impairment test 2023 where recoverable amounts exceeded the balance sheet amounts, thus no impairment has been done in 2023.
The recoverable amount for each CGU has been determined by estimating their Value in Use (VIU) and comparing that to the carrying amount of the specific CGU. The calculation of VIU has been based on estimates, reflecting the Group\u2019s financial planning process. The discount rates are derived as the weighted average cost of capital (WACC) for a similar business in the same business environment.
Goodwill has been allocated for impairment testing purposes to the CGUs below.
2023
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 18\u00a0983 | 0 | 0 | 0 | 18\u00a0983 |
Italy | 0 | 0 | 4\u00a0489 | 0 | 0 | 4\u00a0489 |
Total | 56\u00a0622 | 54\u00a0568 | 4\u00a0489 | 24\u00a0416 | 66\u00a0361 | 206\u00a0457 |
2022
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 17\u00a0398 | 0 | 0 | 0 | 17\u00a0398 |
Italy | 0 | 0 | 4\u00a0199 | 0 | 0 | 4\u00a0199 |
Total | 56\u00a0622 | 52\u00a0983 | 4\u00a0199 | 24\u00a0416 | 66\u00a0361 | 204\u00a0581 |
Cash flow projections and assumptions
A five-year forecast of discounted cash flows plus a 2.0% terminal value growth rate was used to determine net present value of the CGU. Discounted cash flows were calculated after tax and applying a WACC after tax.
Key assumptions for the value in use calculations
The basis for the projection of the future cash flows estimated is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents management\u2019s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset. The remaining four years of the forecast period are estimated based on budget and projected performance. The calculation of VIU for the CGU is most of all sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2023 | 2022 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.0% | 4.25% | 3.7% | 3.1% | 3.3% | 4.2% |
Debt risk premium | 3.0% | 3.0% | 3.0% | 6.6% | 6.6% | 6.6% |
Equity risk premium | 4.0% | 4.0% | 4.0% | 5.9% | 5.9% | 5.9% |
Equity Beta | 1.61 | 1.61 | 1.61 | 1.37 | 1.37 | 1.37 |
Cost of equity | 9.4% | 9.4% | 9.4% | 11.2% | 11.2% | 11.2% |
Tax rate | 22% | 19% | 29% | 22% | 19% | 29% |
Credit spread | 3% | 3% | 3% | 3% | 3% | 3% |
After tax cost debt | 4.8% | 4.8% | 4.8% | 7.6% | 7.7% | 8.0% |
Equity weight | 90% | 90% | 90% | 90% | 90% | 90% |
WACC (pre tax) | 15.4% | 14.9% | 17.0% | 17.7% | 17.3% | 23.4% |
WACC (after tax) | 12.0% | 12.1% | 12.1% | 13.8% | 14.0% | 16.6% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2024 and estimates from 2025-2027 and a terminal growth rate of 2%. The average growth rates in the estimate period 2025-2027 for each Business Area is:
2023 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 7% | 8% | 11% | 73% | 15% |
Average Gross profit margin | 12.3% | 8.1% | 11.0% | 91.5% | 15.6% |
Average EBITDA margin | 12% | 11% | 22% | 32% | 22% |
Compared to the same assumptions in 2022 we see a rather significant decline in the growth assumptions. This is explained by the implementation of a new internal policy of using modest growth assumptions as the basis for impairment tests. This, however, must not be seen in conjunction with the company\u2019s expectations for future growth.
2022 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 16.0% | 9.0% | 0.0% | 196.0% | 16.0% |
Average EBITDA margin | 7.0% | 15.0% | 18.0% | 41.0% | 19.0% |
1The restructuring and sales of IP in the Marine CGU from 2022 to 2023 effect the average growth rates
2CGU Hospitality will until Q2 2023 go from a start up to become a mature profit making unit, thus impact on the growth rates seems unnatural
Sensitivity
At 31 December 2023, the Group\u2019s value in use for each CGU was higher than the carrying amount of tested goodwill with indefinite useful life and intangible assets.
The calculation is most sensitive to changes in EBITDA and gross profit (GP) margins. No reasonably likely change in the key assumptions listed above would cause the carrying value to materially exceed the recov-erable amount for any of the CGUs. The headroom on the most significant CGUs varied from 25% - 170%.
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions that have a significant risk of causing a material adjust-ment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f25977": { "value": "Note 11\tFinancial items and risks
NOK thousand | 2023 | 2022 |
Finance income | ||
Interest income | 563 | 291 |
Realized foreign exchange gains | 2\u00a0149 | 2\u00a0153 |
Net unrealized foreign exchange gains | 381 | 1\u00a0522 |
Other financial income | 115 | 1\u00a0225 |
Total financial income | 3\u00a0208 | 5\u00a0191 |
Finance expenses | ||
Interest on debts and borrowings | (1\u00a0161) | (697) |
Interest expense on lease liabilities | (1\u00a0171) | (1\u00a0236) |
Realized foreign exchange losses | (4\u00a0131) | (1\u00a0998) |
Other financial expenses | (2\u00a0952) | (1\u00a0350) |
Total financial expenses | (9\u00a0414) | (5\u00a0280) |
Net financial items | (6\u00a0206) | (89) |
Financial risk
In Arribatec, risks as currency risk, interest rate risk and other price risk are all factors that could have a negative impact on the ability of the Group to achieve its business objectives. All economic activities are associated with risk. To manage risk in a balanced way, it must first be identified and assessed. Arribatec conducts risk management at both a Group and company level, where risks are evaluated systematically.
The following summary is by no means comprehensive but offers an overview of all material financial risk factors that are considered important for Arribatec\u2019s future development.
Risks associated with changes in economic conditions are managed through regular checks on developments in each country.
Currency risk
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
Note 11\tFinancial items and risks
NOK thousand | 2023 | 2022 |
Finance income | ||
Interest income | 563 | 291 |
Realized foreign exchange gains | 2\u00a0149 | 2\u00a0153 |
Net unrealized foreign exchange gains | 381 | 1\u00a0522 |
Other financial income | 115 | 1\u00a0225 |
Total financial income | 3\u00a0208 | 5\u00a0191 |
Finance expenses | ||
Interest on debts and borrowings | (1\u00a0161) | (697) |
Interest expense on lease liabilities | (1\u00a0171) | (1\u00a0236) |
Realized foreign exchange losses | (4\u00a0131) | (1\u00a0998) |
Other financial expenses | (2\u00a0952) | (1\u00a0350) |
Total financial expenses | (9\u00a0414) | (5\u00a0280) |
Net financial items | (6\u00a0206) | (89) |
Financial risk
In Arribatec, risks as currency risk, interest rate risk and other price risk are all factors that could have a negative impact on the ability of the Group to achieve its business objectives. All economic activities are associated with risk. To manage risk in a balanced way, it must first be identified and assessed. Arribatec conducts risk management at both a Group and company level, where risks are evaluated systematically.
The following summary is by no means comprehensive but offers an overview of all material financial risk factors that are considered important for Arribatec\u2019s future development.
Risks associated with changes in economic conditions are managed through regular checks on developments in each country.
Currency risk
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
Note 11\tFinancial items and risks
NOK thousand | 2023 | 2022 |
Finance income | ||
Interest income | 563 | 291 |
Realized foreign exchange gains | 2\u00a0149 | 2\u00a0153 |
Net unrealized foreign exchange gains | 381 | 1\u00a0522 |
Other financial income | 115 | 1\u00a0225 |
Total financial income | 3\u00a0208 | 5\u00a0191 |
Finance expenses | ||
Interest on debts and borrowings | (1\u00a0161) | (697) |
Interest expense on lease liabilities | (1\u00a0171) | (1\u00a0236) |
Realized foreign exchange losses | (4\u00a0131) | (1\u00a0998) |
Other financial expenses | (2\u00a0952) | (1\u00a0350) |
Total financial expenses | (9\u00a0414) | (5\u00a0280) |
Net financial items | (6\u00a0206) | (89) |
Financial risk
In Arribatec, risks as currency risk, interest rate risk and other price risk are all factors that could have a negative impact on the ability of the Group to achieve its business objectives. All economic activities are associated with risk. To manage risk in a balanced way, it must first be identified and assessed. Arribatec conducts risk management at both a Group and company level, where risks are evaluated systematically.
The following summary is by no means comprehensive but offers an overview of all material financial risk factors that are considered important for Arribatec\u2019s future development.
Risks associated with changes in economic conditions are managed through regular checks on developments in each country.
Currency risk
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
Note 11\tFinancial items and risks
NOK thousand | 2023 | 2022 |
Finance income | ||
Interest income | 563 | 291 |
Realized foreign exchange gains | 2\u00a0149 | 2\u00a0153 |
Net unrealized foreign exchange gains | 381 | 1\u00a0522 |
Other financial income | 115 | 1\u00a0225 |
Total financial income | 3\u00a0208 | 5\u00a0191 |
Finance expenses | ||
Interest on debts and borrowings | (1\u00a0161) | (697) |
Interest expense on lease liabilities | (1\u00a0171) | (1\u00a0236) |
Realized foreign exchange losses | (4\u00a0131) | (1\u00a0998) |
Other financial expenses | (2\u00a0952) | (1\u00a0350) |
Total financial expenses | (9\u00a0414) | (5\u00a0280) |
Net financial items | (6\u00a0206) | (89) |
Financial risk
In Arribatec, risks as currency risk, interest rate risk and other price risk are all factors that could have a negative impact on the ability of the Group to achieve its business objectives. All economic activities are associated with risk. To manage risk in a balanced way, it must first be identified and assessed. Arribatec conducts risk management at both a Group and company level, where risks are evaluated systematically.
The following summary is by no means comprehensive but offers an overview of all material financial risk factors that are considered important for Arribatec\u2019s future development.
Risks associated with changes in economic conditions are managed through regular checks on developments in each country.
Currency risk
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
Note 11\tFinancial items and risks
NOK thousand | 2023 | 2022 |
Finance income | ||
Interest income | 563 | 291 |
Realized foreign exchange gains | 2\u00a0149 | 2\u00a0153 |
Net unrealized foreign exchange gains | 381 | 1\u00a0522 |
Other financial income | 115 | 1\u00a0225 |
Total financial income | 3\u00a0208 | 5\u00a0191 |
Finance expenses | ||
Interest on debts and borrowings | (1\u00a0161) | (697) |
Interest expense on lease liabilities | (1\u00a0171) | (1\u00a0236) |
Realized foreign exchange losses | (4\u00a0131) | (1\u00a0998) |
Other financial expenses | (2\u00a0952) | (1\u00a0350) |
Total financial expenses | (9\u00a0414) | (5\u00a0280) |
Net financial items | (6\u00a0206) | (89) |
Financial risk
In Arribatec, risks as currency risk, interest rate risk and other price risk are all factors that could have a negative impact on the ability of the Group to achieve its business objectives. All economic activities are associated with risk. To manage risk in a balanced way, it must first be identified and assessed. Arribatec conducts risk management at both a Group and company level, where risks are evaluated systematically.
The following summary is by no means comprehensive but offers an overview of all material financial risk factors that are considered important for Arribatec\u2019s future development.
Risks associated with changes in economic conditions are managed through regular checks on developments in each country.
Currency risk
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
Note 11\tFinancial items and risks
NOK thousand | 2023 | 2022 |
Finance income | ||
Interest income | 563 | 291 |
Realized foreign exchange gains | 2\u00a0149 | 2\u00a0153 |
Net unrealized foreign exchange gains | 381 | 1\u00a0522 |
Other financial income | 115 | 1\u00a0225 |
Total financial income | 3\u00a0208 | 5\u00a0191 |
Finance expenses | ||
Interest on debts and borrowings | (1\u00a0161) | (697) |
Interest expense on lease liabilities | (1\u00a0171) | (1\u00a0236) |
Realized foreign exchange losses | (4\u00a0131) | (1\u00a0998) |
Other financial expenses | (2\u00a0952) | (1\u00a0350) |
Total financial expenses | (9\u00a0414) | (5\u00a0280) |
Net financial items | (6\u00a0206) | (89) |
Financial risk
In Arribatec, risks as currency risk, interest rate risk and other price risk are all factors that could have a negative impact on the ability of the Group to achieve its business objectives. All economic activities are associated with risk. To manage risk in a balanced way, it must first be identified and assessed. Arribatec conducts risk management at both a Group and company level, where risks are evaluated systematically.
The following summary is by no means comprehensive but offers an overview of all material financial risk factors that are considered important for Arribatec\u2019s future development.
Risks associated with changes in economic conditions are managed through regular checks on developments in each country.
Currency risk
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
Note 11\tFinancial items and risks
NOK thousand | 2023 | 2022 |
Finance income | ||
Interest income | 563 | 291 |
Realized foreign exchange gains | 2\u00a0149 | 2\u00a0153 |
Net unrealized foreign exchange gains | 381 | 1\u00a0522 |
Other financial income | 115 | 1\u00a0225 |
Total financial income | 3\u00a0208 | 5\u00a0191 |
Finance expenses | ||
Interest on debts and borrowings | (1\u00a0161) | (697) |
Interest expense on lease liabilities | (1\u00a0171) | (1\u00a0236) |
Realized foreign exchange losses | (4\u00a0131) | (1\u00a0998) |
Other financial expenses | (2\u00a0952) | (1\u00a0350) |
Total financial expenses | (9\u00a0414) | (5\u00a0280) |
Net financial items | (6\u00a0206) | (89) |
Financial risk
In Arribatec, risks as currency risk, interest rate risk and other price risk are all factors that could have a negative impact on the ability of the Group to achieve its business objectives. All economic activities are associated with risk. To manage risk in a balanced way, it must first be identified and assessed. Arribatec conducts risk management at both a Group and company level, where risks are evaluated systematically.
The following summary is by no means comprehensive but offers an overview of all material financial risk factors that are considered important for Arribatec\u2019s future development.
Risks associated with changes in economic conditions are managed through regular checks on developments in each country.
Currency risk
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
Currency risk refers to the risk that the fair value of future cash flows, cash and financial instruments may shift as a result of changes in exchange rates. Transactions in foreign currency in each entity are converted at the exchange rate on the transaction date. Monetary items in foreign currency are converted to NOK using the exchange rate at the balance sheet date. Non-monetary items measured at the historical rate expressed in a foreign currency are converted into NOK using the exchange rate on the transaction date.
The currency risk is limited in Arribatec as few balance items are posted in foreign currency per 31.12.2023 in each subsidiary. The risk is in the conversion of foreign operation into NOK in consolidation.
Interest rate risks
Interest risk is related to the risk the Group is exposed to from changes in the market\u2019s interest rate which can affect the net profit. The Group\u2019s main interest rate risk arises from long-term borrowings with variable rates, which amounted to NOK 39.4m on 31 December 2023 (2022: NOK 31.2m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annualized increase or decrease by 100 basis point would increase/decrease the Groups loss before tax by appr. NOK 0.3m (NOK 0.3m).
The Group continuously assesses and monitors interest rate risk and exposure. Based on these assessments, the group also assesses alternative financing and hedging.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f26586": { "value": "Note 12\tTax
Arribatec account for current income tax assets and liabilities based on the expected recovery from, or payment to, tax authorities.
The applicable tax rates and laws are those in effect at the end of the reporting period. Additionally, we calculate deferred income tax using the deferred tax method, considering temporary differences between tax bases and carrying amounts of assets and liabilities for financial reporting purposes.
Our policy recognizes deferred income tax liabilities for taxable temporary differences, except when arising from goodwill recognition or non-business combination transactions that do not impact accounting or taxable profit or loss. We also assess deferred tax assets, recognizing them to the extent of probable future taxable profit availability or utilization of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognized assets are reas-sessed at each reporting date. Finally, we offset deferred income tax assets and liabilities only when legally enforceable rights exist to set off tax assets against income tax liabilities within the same taxable entity or taxation authority.
Income tax calculation
The Group\u2019s tax expense is affected by several factors, where the most important are tax losses carried forward, currency effects and local GAAP/IFRS-differences for calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
NOK thousand | 2023 | 2022 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 2\u00a0597 | 889 |
Correction previous year - Norway | (7) | 0 |
Current Income Tax - Other countries | 2\u00a0762 | 1\u00a0539 |
Correction previous year - other countries | (59) | 968 |
Deferred tax | ||
Change in deferred taxes - Norway | (10\u00a0392) | (7\u00a0653) |
Change in deferred taxes - Other countries | (1\u00a0900) | (2\u00a0778) |
Tax income recorded in consolidated statement of Profit & Loss | (6\u00a0998) | (7\u00a0035) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (30\u00a0050) | (90\u00a0428) |
Adjustment of current income tax of previous years | 3 | (50) |
Temporary differences | (2 336) | 690 |
Non deductible expenses | 1\u00a0113 | 37\u00a0375 |
Non-taxable income | (367) | (916) |
Tax base | (31 637) | (53\u00a0331) |
NOK thousand | 2023 | 2022 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 6\u00a0960 | (11\u00a0733) |
Tax previous year | (65) | 968 |
Group contribution with tax effect (tax payable effect) | (2\u00a0576) | 0 |
Group contribution with tax effect (deferred tax effect) | 2\u00a0576 | 0 |
Changes in recognised deferred taxes | (12\u00a0292) | (10\u00a0431) |
Effect from previously unrecognised deferred taxes | (1\u00a0607) | 14\u00a0734 |
Different tax rates applied in foreign jurisdictions | 6 | (573) |
Tax income at effective tax rate | (6\u00a0998) | (7\u00a0035) |
Effective tax rate | 23.3% | 7.8% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 23\u00a0756 | 54\u00a0245 |
Property, plant and equipment | 79 | 4\u00a0544 |
Intangible assets | 1\u00a0492 | (11\u00a0413) |
Receivable | (123) | 91 |
Other provisions | 316 | 0 |
Leases | 105 | 110 |
Deferred tax on intangible assets from business combinations | 3\u00a0141 | (857) |
Tax losses carried forward, not recognised | (17\u00a0556) | (44\u00a0989) |
Deferred taxes, net | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, recognised | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, not recognised | 17\u00a0556 | 44\u00a0989 |
NOK thousand | 2023 | 2022 |
Reconciliation to balance sheet | ||
Deferred tax assets | 18\u00a0998 | 12\u00a0322 |
Deferred tax liabilities | (7\u00a0786) | (10\u00a0590) |
Net Deferred tax assets (liabilities) | 11\u00a0212 | 1\u00a0732 |
Note 12\tTax
Arribatec account for current income tax assets and liabilities based on the expected recovery from, or payment to, tax authorities.
The applicable tax rates and laws are those in effect at the end of the reporting period. Additionally, we calculate deferred income tax using the deferred tax method, considering temporary differences between tax bases and carrying amounts of assets and liabilities for financial reporting purposes.
Our policy recognizes deferred income tax liabilities for taxable temporary differences, except when arising from goodwill recognition or non-business combination transactions that do not impact accounting or taxable profit or loss. We also assess deferred tax assets, recognizing them to the extent of probable future taxable profit availability or utilization of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognized assets are reas-sessed at each reporting date. Finally, we offset deferred income tax assets and liabilities only when legally enforceable rights exist to set off tax assets against income tax liabilities within the same taxable entity or taxation authority.
Income tax calculation
The Group\u2019s tax expense is affected by several factors, where the most important are tax losses carried forward, currency effects and local GAAP/IFRS-differences for calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
NOK thousand | 2023 | 2022 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 2\u00a0597 | 889 |
Correction previous year - Norway | (7) | 0 |
Current Income Tax - Other countries | 2\u00a0762 | 1\u00a0539 |
Correction previous year - other countries | (59) | 968 |
Deferred tax | ||
Change in deferred taxes - Norway | (10\u00a0392) | (7\u00a0653) |
Change in deferred taxes - Other countries | (1\u00a0900) | (2\u00a0778) |
Tax income recorded in consolidated statement of Profit & Loss | (6\u00a0998) | (7\u00a0035) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (30\u00a0050) | (90\u00a0428) |
Adjustment of current income tax of previous years | 3 | (50) |
Temporary differences | (2 336) | 690 |
Non deductible expenses | 1\u00a0113 | 37\u00a0375 |
Non-taxable income | (367) | (916) |
Tax base | (31 637) | (53\u00a0331) |
NOK thousand | 2023 | 2022 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 6\u00a0960 | (11\u00a0733) |
Tax previous year | (65) | 968 |
Group contribution with tax effect (tax payable effect) | (2\u00a0576) | 0 |
Group contribution with tax effect (deferred tax effect) | 2\u00a0576 | 0 |
Changes in recognised deferred taxes | (12\u00a0292) | (10\u00a0431) |
Effect from previously unrecognised deferred taxes | (1\u00a0607) | 14\u00a0734 |
Different tax rates applied in foreign jurisdictions | 6 | (573) |
Tax income at effective tax rate | (6\u00a0998) | (7\u00a0035) |
Effective tax rate | 23.3% | 7.8% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 23\u00a0756 | 54\u00a0245 |
Property, plant and equipment | 79 | 4\u00a0544 |
Intangible assets | 1\u00a0492 | (11\u00a0413) |
Receivable | (123) | 91 |
Other provisions | 316 | 0 |
Leases | 105 | 110 |
Deferred tax on intangible assets from business combinations | 3\u00a0141 | (857) |
Tax losses carried forward, not recognised | (17\u00a0556) | (44\u00a0989) |
Deferred taxes, net | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, recognised | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, not recognised | 17\u00a0556 | 44\u00a0989 |
NOK thousand | 2023 | 2022 |
Reconciliation to balance sheet | ||
Deferred tax assets | 18\u00a0998 | 12\u00a0322 |
Deferred tax liabilities | (7\u00a0786) | (10\u00a0590) |
Net Deferred tax assets (liabilities) | 11\u00a0212 | 1\u00a0732 |
Note 12\tTax
Arribatec account for current income tax assets and liabilities based on the expected recovery from, or payment to, tax authorities.
The applicable tax rates and laws are those in effect at the end of the reporting period. Additionally, we calculate deferred income tax using the deferred tax method, considering temporary differences between tax bases and carrying amounts of assets and liabilities for financial reporting purposes.
Our policy recognizes deferred income tax liabilities for taxable temporary differences, except when arising from goodwill recognition or non-business combination transactions that do not impact accounting or taxable profit or loss. We also assess deferred tax assets, recognizing them to the extent of probable future taxable profit availability or utilization of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognized assets are reas-sessed at each reporting date. Finally, we offset deferred income tax assets and liabilities only when legally enforceable rights exist to set off tax assets against income tax liabilities within the same taxable entity or taxation authority.
Income tax calculation
The Group\u2019s tax expense is affected by several factors, where the most important are tax losses carried forward, currency effects and local GAAP/IFRS-differences for calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
NOK thousand | 2023 | 2022 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 2\u00a0597 | 889 |
Correction previous year - Norway | (7) | 0 |
Current Income Tax - Other countries | 2\u00a0762 | 1\u00a0539 |
Correction previous year - other countries | (59) | 968 |
Deferred tax | ||
Change in deferred taxes - Norway | (10\u00a0392) | (7\u00a0653) |
Change in deferred taxes - Other countries | (1\u00a0900) | (2\u00a0778) |
Tax income recorded in consolidated statement of Profit & Loss | (6\u00a0998) | (7\u00a0035) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (30\u00a0050) | (90\u00a0428) |
Adjustment of current income tax of previous years | 3 | (50) |
Temporary differences | (2 336) | 690 |
Non deductible expenses | 1\u00a0113 | 37\u00a0375 |
Non-taxable income | (367) | (916) |
Tax base | (31 637) | (53\u00a0331) |
NOK thousand | 2023 | 2022 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 6\u00a0960 | (11\u00a0733) |
Tax previous year | (65) | 968 |
Group contribution with tax effect (tax payable effect) | (2\u00a0576) | 0 |
Group contribution with tax effect (deferred tax effect) | 2\u00a0576 | 0 |
Changes in recognised deferred taxes | (12\u00a0292) | (10\u00a0431) |
Effect from previously unrecognised deferred taxes | (1\u00a0607) | 14\u00a0734 |
Different tax rates applied in foreign jurisdictions | 6 | (573) |
Tax income at effective tax rate | (6\u00a0998) | (7\u00a0035) |
Effective tax rate | 23.3% | 7.8% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 23\u00a0756 | 54\u00a0245 |
Property, plant and equipment | 79 | 4\u00a0544 |
Intangible assets | 1\u00a0492 | (11\u00a0413) |
Receivable | (123) | 91 |
Other provisions | 316 | 0 |
Leases | 105 | 110 |
Deferred tax on intangible assets from business combinations | 3\u00a0141 | (857) |
Tax losses carried forward, not recognised | (17\u00a0556) | (44\u00a0989) |
Deferred taxes, net | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, recognised | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, not recognised | 17\u00a0556 | 44\u00a0989 |
NOK thousand | 2023 | 2022 |
Reconciliation to balance sheet | ||
Deferred tax assets | 18\u00a0998 | 12\u00a0322 |
Deferred tax liabilities | (7\u00a0786) | (10\u00a0590) |
Net Deferred tax assets (liabilities) | 11\u00a0212 | 1\u00a0732 |
Note 12\tTax
Arribatec account for current income tax assets and liabilities based on the expected recovery from, or payment to, tax authorities.
The applicable tax rates and laws are those in effect at the end of the reporting period. Additionally, we calculate deferred income tax using the deferred tax method, considering temporary differences between tax bases and carrying amounts of assets and liabilities for financial reporting purposes.
Our policy recognizes deferred income tax liabilities for taxable temporary differences, except when arising from goodwill recognition or non-business combination transactions that do not impact accounting or taxable profit or loss. We also assess deferred tax assets, recognizing them to the extent of probable future taxable profit availability or utilization of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognized assets are reas-sessed at each reporting date. Finally, we offset deferred income tax assets and liabilities only when legally enforceable rights exist to set off tax assets against income tax liabilities within the same taxable entity or taxation authority.
Income tax calculation
The Group\u2019s tax expense is affected by several factors, where the most important are tax losses carried forward, currency effects and local GAAP/IFRS-differences for calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
NOK thousand | 2023 | 2022 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 2\u00a0597 | 889 |
Correction previous year - Norway | (7) | 0 |
Current Income Tax - Other countries | 2\u00a0762 | 1\u00a0539 |
Correction previous year - other countries | (59) | 968 |
Deferred tax | ||
Change in deferred taxes - Norway | (10\u00a0392) | (7\u00a0653) |
Change in deferred taxes - Other countries | (1\u00a0900) | (2\u00a0778) |
Tax income recorded in consolidated statement of Profit & Loss | (6\u00a0998) | (7\u00a0035) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (30\u00a0050) | (90\u00a0428) |
Adjustment of current income tax of previous years | 3 | (50) |
Temporary differences | (2 336) | 690 |
Non deductible expenses | 1\u00a0113 | 37\u00a0375 |
Non-taxable income | (367) | (916) |
Tax base | (31 637) | (53\u00a0331) |
NOK thousand | 2023 | 2022 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 6\u00a0960 | (11\u00a0733) |
Tax previous year | (65) | 968 |
Group contribution with tax effect (tax payable effect) | (2\u00a0576) | 0 |
Group contribution with tax effect (deferred tax effect) | 2\u00a0576 | 0 |
Changes in recognised deferred taxes | (12\u00a0292) | (10\u00a0431) |
Effect from previously unrecognised deferred taxes | (1\u00a0607) | 14\u00a0734 |
Different tax rates applied in foreign jurisdictions | 6 | (573) |
Tax income at effective tax rate | (6\u00a0998) | (7\u00a0035) |
Effective tax rate | 23.3% | 7.8% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 23\u00a0756 | 54\u00a0245 |
Property, plant and equipment | 79 | 4\u00a0544 |
Intangible assets | 1\u00a0492 | (11\u00a0413) |
Receivable | (123) | 91 |
Other provisions | 316 | 0 |
Leases | 105 | 110 |
Deferred tax on intangible assets from business combinations | 3\u00a0141 | (857) |
Tax losses carried forward, not recognised | (17\u00a0556) | (44\u00a0989) |
Deferred taxes, net | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, recognised | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, not recognised | 17\u00a0556 | 44\u00a0989 |
NOK thousand | 2023 | 2022 |
Reconciliation to balance sheet | ||
Deferred tax assets | 18\u00a0998 | 12\u00a0322 |
Deferred tax liabilities | (7\u00a0786) | (10\u00a0590) |
Net Deferred tax assets (liabilities) | 11\u00a0212 | 1\u00a0732 |
Note 12\tTax
Arribatec account for current income tax assets and liabilities based on the expected recovery from, or payment to, tax authorities.
The applicable tax rates and laws are those in effect at the end of the reporting period. Additionally, we calculate deferred income tax using the deferred tax method, considering temporary differences between tax bases and carrying amounts of assets and liabilities for financial reporting purposes.
Our policy recognizes deferred income tax liabilities for taxable temporary differences, except when arising from goodwill recognition or non-business combination transactions that do not impact accounting or taxable profit or loss. We also assess deferred tax assets, recognizing them to the extent of probable future taxable profit availability or utilization of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognized assets are reas-sessed at each reporting date. Finally, we offset deferred income tax assets and liabilities only when legally enforceable rights exist to set off tax assets against income tax liabilities within the same taxable entity or taxation authority.
Income tax calculation
The Group\u2019s tax expense is affected by several factors, where the most important are tax losses carried forward, currency effects and local GAAP/IFRS-differences for calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
NOK thousand | 2023 | 2022 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 2\u00a0597 | 889 |
Correction previous year - Norway | (7) | 0 |
Current Income Tax - Other countries | 2\u00a0762 | 1\u00a0539 |
Correction previous year - other countries | (59) | 968 |
Deferred tax | ||
Change in deferred taxes - Norway | (10\u00a0392) | (7\u00a0653) |
Change in deferred taxes - Other countries | (1\u00a0900) | (2\u00a0778) |
Tax income recorded in consolidated statement of Profit & Loss | (6\u00a0998) | (7\u00a0035) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (30\u00a0050) | (90\u00a0428) |
Adjustment of current income tax of previous years | 3 | (50) |
Temporary differences | (2 336) | 690 |
Non deductible expenses | 1\u00a0113 | 37\u00a0375 |
Non-taxable income | (367) | (916) |
Tax base | (31 637) | (53\u00a0331) |
NOK thousand | 2023 | 2022 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 6\u00a0960 | (11\u00a0733) |
Tax previous year | (65) | 968 |
Group contribution with tax effect (tax payable effect) | (2\u00a0576) | 0 |
Group contribution with tax effect (deferred tax effect) | 2\u00a0576 | 0 |
Changes in recognised deferred taxes | (12\u00a0292) | (10\u00a0431) |
Effect from previously unrecognised deferred taxes | (1\u00a0607) | 14\u00a0734 |
Different tax rates applied in foreign jurisdictions | 6 | (573) |
Tax income at effective tax rate | (6\u00a0998) | (7\u00a0035) |
Effective tax rate | 23.3% | 7.8% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 23\u00a0756 | 54\u00a0245 |
Property, plant and equipment | 79 | 4\u00a0544 |
Intangible assets | 1\u00a0492 | (11\u00a0413) |
Receivable | (123) | 91 |
Other provisions | 316 | 0 |
Leases | 105 | 110 |
Deferred tax on intangible assets from business combinations | 3\u00a0141 | (857) |
Tax losses carried forward, not recognised | (17\u00a0556) | (44\u00a0989) |
Deferred taxes, net | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, recognised | 11\u00a0212 | 1\u00a0732 |
Deferred taxes, not recognised | 17\u00a0556 | 44\u00a0989 |
NOK thousand | 2023 | 2022 |
Reconciliation to balance sheet | ||
Deferred tax assets | 18\u00a0998 | 12\u00a0322 |
Deferred tax liabilities | (7\u00a0786) | (10\u00a0590) |
Net Deferred tax assets (liabilities) | 11\u00a0212 | 1\u00a0732 |
Note 13\tEarnings per share
Basic earnings per share (EPS) are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in Issue during the year according to the following number of outstanding shares.
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
31 December 2022 | 690\u00a0573\u00a0217 | 193\u00a0360\u00a0501 |
Capital issue, February | 3 | 1 |
Reverse share split (10:1), March | (621\u00a0515\u00a0898) | |
Capital issue, December | 514\u00a0884 | 1\u00a0441\u00a0675 |
31 December 2023 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
Diluted EPS amounts are calculated by dividing the profit attributable to ordinary equity holders of the Company by weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be Issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the Income and share data used in the basic and diluted EPS calculations:
NOK | 2023 | 2022 |
Net profit/(loss) to equity holders | (23\u00a0052\u00a0518) | (83\u00a0393\u00a0192) |
Total | (23\u00a0052\u00a0518) | (83\u00a0393\u00a0192) |
Number of shares (in thousands) | ||
Weighted average number of ordinary shares | 69\u00a0057\u00a0322 | 658\u00a0988\u00a0513 |
Effects of dilution, weighted average | 371\u00a0097 | 5\u00a0663\u00a0984 |
Weighted average number of shares, adjusted for effects of dilution | 69\u00a0428\u00a0419 | 664\u00a0652\u00a0497 |
Basic earnings per share | (0.33) | (0.13) |
Diluted earnings per share | (0.33) | (0.13) |
In 2023, part of the share consideration for Integra was still outstanding. This was settled during 2024.
Effects of dilution
NOK | 2023 | 2022 |
Share consideration outstanding Integra | 371\u00a0097 | 5\u00a0663\u00a0984 |
Note 13\tEarnings per share
Basic earnings per share (EPS) are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in Issue during the year according to the following number of outstanding shares.
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
31 December 2022 | 690\u00a0573\u00a0217 | 193\u00a0360\u00a0501 |
Capital issue, February | 3 | 1 |
Reverse share split (10:1), March | (621\u00a0515\u00a0898) | |
Capital issue, December | 514\u00a0884 | 1\u00a0441\u00a0675 |
31 December 2023 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
Diluted EPS amounts are calculated by dividing the profit attributable to ordinary equity holders of the Company by weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be Issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the Income and share data used in the basic and diluted EPS calculations:
NOK | 2023 | 2022 |
Net profit/(loss) to equity holders | (23\u00a0052\u00a0518) | (83\u00a0393\u00a0192) |
Total | (23\u00a0052\u00a0518) | (83\u00a0393\u00a0192) |
Number of shares (in thousands) | ||
Weighted average number of ordinary shares | 69\u00a0057\u00a0322 | 658\u00a0988\u00a0513 |
Effects of dilution, weighted average | 371\u00a0097 | 5\u00a0663\u00a0984 |
Weighted average number of shares, adjusted for effects of dilution | 69\u00a0428\u00a0419 | 664\u00a0652\u00a0497 |
Basic earnings per share | (0.33) | (0.13) |
Diluted earnings per share | (0.33) | (0.13) |
In 2023, part of the share consideration for Integra was still outstanding. This was settled during 2024.
Effects of dilution
NOK | 2023 | 2022 |
Share consideration outstanding Integra | 371\u00a0097 | 5\u00a0663\u00a0984 |
Note 25\tLong term incentive plan
During 2023, a long-term incentive plan in the form of a share-based remuneration program has been launched within Arribatec, with the intention to incentivize and retain key employees.
The program is an equity-settled option plan where one option gives the right to acquire one share in Arribatec Group ASA on the exercise date. There is no cash settlement for the employee at the grant date.
No shares have yet been vested through the program. The shares currently held by certain members of management or other employees were acquired at market conditions.
Measurement of fair values
The Black-Scholes-Merton Option Pricing Model is used for valuing the share options. The measure of the expected volatility in the option pricing model has been calculated as the annualized standard deviation of the continuously compounded rates of return on the share over a period of time.
The options are vested over a period of three years and the employee continues to be employed by the group.
Total costs and Social Security Provisions
NOK thousand | |
Total IFRS cost 2023 | 619\u00a0924 |
Total Social security provisions 2023 | 0 |
Total costs and Social Security Provisions
Instrument | Option |
Quantity 31.12.2023 (instruments) | 3\u00a0303\u00a0240 |
Quantity 31.12.2023 (shares) | 3\u00a0303\u00a0240 |
Contractual life\u200c1 | 5.00 |
Strike price\u200c1 | 5.25 |
Share price\u200c1 | 4.63 |
Expected lifetime\u200c1 | 3.00 |
Volatility\u200c1 | 65.66% |
Interest rate\u200c1 | 3\u00a0965% |
Dividend\u200c1 | 0.00 |
FV per instrument\u200c1 | 1.97 |
1Weighted average parameters at grant of instrument
Outstanding instruments Year End - Option
Quantity and weighted average prices | 01.01.2023 - 31.12.2023 | |
Activity | Number of instruments | Weighted Average Strike Price |
Outstanding OB (01.01.2023) | 0 | 0.00 |
Granted | 3\u00a0303\u00a0240 | 5.25 |
Exercised | 0 | 0.00 |
Released | 0 | 0.00 |
Adjusted | 0 | 0.00 |
Performance Adjusted | 0 | 0.00 |
Cancelled | 0 | 0.00 |
Terminated | 0 | 0.00 |
Expired | 0 | 0.00 |
Outstanding CB (31.12.2023) | 3\u00a0303\u00a0240 | 5.25 |
Vested CB | 0 | 0.00 |
Outstanding Instruments Overview
Outstanding Instruments | Vested Instruments | ||||
Strike price | Number of instruments | ||||
Weighted Average remaining contractual life | Weighted Average Strike Price | Vested instruments 31.12.2023 | Weighted Average Strike Price | ||
5.00 | 1\u00a0101\u00a0077 | 4.84 | 5.00 | 0.00 | 0.00 |
5.25 | 1\u00a0101\u00a0081 | 4.84 | 5.25 | 0.00 | 0.00 |
5.50 | 1\u00a0101\u00a0082 | 4.84 | 5.50 | 0.00 | 0.00 |
3\u00a0303\u00a0240 |
Note 14\tGoodwill and impairment
Goodwill recognised in the consolidated financial position are mainly derived from excess value following the acquisitions of Instidata AS in 2019, Facil AS, Microsky AS and Innit AS in 2020 and Maksit AS, Qualisoft AS, IB Group and Integra Ass. Ltd in 2021. Recognised goodwill amounts to NOK 206.5m as of 31 December 2023 (NOK 204.6m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 31.8 million as per 31 December 2023 (NOK 45.3m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortized, ref Note10.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually, and when there are indications of impairment. There were no impairment indications in the impairment test 2023 where recoverable amounts exceeded the balance sheet amounts, thus no impairment has been done in 2023.
The recoverable amount for each CGU has been determined by estimating their Value in Use (VIU) and comparing that to the carrying amount of the specific CGU. The calculation of VIU has been based on estimates, reflecting the Group\u2019s financial planning process. The discount rates are derived as the weighted average cost of capital (WACC) for a similar business in the same business environment.
Goodwill has been allocated for impairment testing purposes to the CGUs below.
2023
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 18\u00a0983 | 0 | 0 | 0 | 18\u00a0983 |
Italy | 0 | 0 | 4\u00a0489 | 0 | 0 | 4\u00a0489 |
Total | 56\u00a0622 | 54\u00a0568 | 4\u00a0489 | 24\u00a0416 | 66\u00a0361 | 206\u00a0457 |
2022
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 17\u00a0398 | 0 | 0 | 0 | 17\u00a0398 |
Italy | 0 | 0 | 4\u00a0199 | 0 | 0 | 4\u00a0199 |
Total | 56\u00a0622 | 52\u00a0983 | 4\u00a0199 | 24\u00a0416 | 66\u00a0361 | 204\u00a0581 |
Cash flow projections and assumptions
A five-year forecast of discounted cash flows plus a 2.0% terminal value growth rate was used to determine net present value of the CGU. Discounted cash flows were calculated after tax and applying a WACC after tax.
Key assumptions for the value in use calculations
The basis for the projection of the future cash flows estimated is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents management\u2019s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset. The remaining four years of the forecast period are estimated based on budget and projected performance. The calculation of VIU for the CGU is most of all sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2023 | 2022 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.0% | 4.25% | 3.7% | 3.1% | 3.3% | 4.2% |
Debt risk premium | 3.0% | 3.0% | 3.0% | 6.6% | 6.6% | 6.6% |
Equity risk premium | 4.0% | 4.0% | 4.0% | 5.9% | 5.9% | 5.9% |
Equity Beta | 1.61 | 1.61 | 1.61 | 1.37 | 1.37 | 1.37 |
Cost of equity | 9.4% | 9.4% | 9.4% | 11.2% | 11.2% | 11.2% |
Tax rate | 22% | 19% | 29% | 22% | 19% | 29% |
Credit spread | 3% | 3% | 3% | 3% | 3% | 3% |
After tax cost debt | 4.8% | 4.8% | 4.8% | 7.6% | 7.7% | 8.0% |
Equity weight | 90% | 90% | 90% | 90% | 90% | 90% |
WACC (pre tax) | 15.4% | 14.9% | 17.0% | 17.7% | 17.3% | 23.4% |
WACC (after tax) | 12.0% | 12.1% | 12.1% | 13.8% | 14.0% | 16.6% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2024 and estimates from 2025-2027 and a terminal growth rate of 2%. The average growth rates in the estimate period 2025-2027 for each Business Area is:
2023 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 7% | 8% | 11% | 73% | 15% |
Average Gross profit margin | 12.3% | 8.1% | 11.0% | 91.5% | 15.6% |
Average EBITDA margin | 12% | 11% | 22% | 32% | 22% |
Compared to the same assumptions in 2022 we see a rather significant decline in the growth assumptions. This is explained by the implementation of a new internal policy of using modest growth assumptions as the basis for impairment tests. This, however, must not be seen in conjunction with the company\u2019s expectations for future growth.
2022 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 16.0% | 9.0% | 0.0% | 196.0% | 16.0% |
Average EBITDA margin | 7.0% | 15.0% | 18.0% | 41.0% | 19.0% |
1The restructuring and sales of IP in the Marine CGU from 2022 to 2023 effect the average growth rates
2CGU Hospitality will until Q2 2023 go from a start up to become a mature profit making unit, thus impact on the growth rates seems unnatural
Sensitivity
At 31 December 2023, the Group\u2019s value in use for each CGU was higher than the carrying amount of tested goodwill with indefinite useful life and intangible assets.
The calculation is most sensitive to changes in EBITDA and gross profit (GP) margins. No reasonably likely change in the key assumptions listed above would cause the carrying value to materially exceed the recov-erable amount for any of the CGUs. The headroom on the most significant CGUs varied from 25% - 170%.
Note 14\tGoodwill and impairment
Goodwill recognised in the consolidated financial position are mainly derived from excess value following the acquisitions of Instidata AS in 2019, Facil AS, Microsky AS and Innit AS in 2020 and Maksit AS, Qualisoft AS, IB Group and Integra Ass. Ltd in 2021. Recognised goodwill amounts to NOK 206.5m as of 31 December 2023 (NOK 204.6m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 31.8 million as per 31 December 2023 (NOK 45.3m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortized, ref Note10.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually, and when there are indications of impairment. There were no impairment indications in the impairment test 2023 where recoverable amounts exceeded the balance sheet amounts, thus no impairment has been done in 2023.
The recoverable amount for each CGU has been determined by estimating their Value in Use (VIU) and comparing that to the carrying amount of the specific CGU. The calculation of VIU has been based on estimates, reflecting the Group\u2019s financial planning process. The discount rates are derived as the weighted average cost of capital (WACC) for a similar business in the same business environment.
Goodwill has been allocated for impairment testing purposes to the CGUs below.
2023
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 18\u00a0983 | 0 | 0 | 0 | 18\u00a0983 |
Italy | 0 | 0 | 4\u00a0489 | 0 | 0 | 4\u00a0489 |
Total | 56\u00a0622 | 54\u00a0568 | 4\u00a0489 | 24\u00a0416 | 66\u00a0361 | 206\u00a0457 |
2022
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 17\u00a0398 | 0 | 0 | 0 | 17\u00a0398 |
Italy | 0 | 0 | 4\u00a0199 | 0 | 0 | 4\u00a0199 |
Total | 56\u00a0622 | 52\u00a0983 | 4\u00a0199 | 24\u00a0416 | 66\u00a0361 | 204\u00a0581 |
Cash flow projections and assumptions
A five-year forecast of discounted cash flows plus a 2.0% terminal value growth rate was used to determine net present value of the CGU. Discounted cash flows were calculated after tax and applying a WACC after tax.
Key assumptions for the value in use calculations
The basis for the projection of the future cash flows estimated is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents management\u2019s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset. The remaining four years of the forecast period are estimated based on budget and projected performance. The calculation of VIU for the CGU is most of all sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2023 | 2022 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.0% | 4.25% | 3.7% | 3.1% | 3.3% | 4.2% |
Debt risk premium | 3.0% | 3.0% | 3.0% | 6.6% | 6.6% | 6.6% |
Equity risk premium | 4.0% | 4.0% | 4.0% | 5.9% | 5.9% | 5.9% |
Equity Beta | 1.61 | 1.61 | 1.61 | 1.37 | 1.37 | 1.37 |
Cost of equity | 9.4% | 9.4% | 9.4% | 11.2% | 11.2% | 11.2% |
Tax rate | 22% | 19% | 29% | 22% | 19% | 29% |
Credit spread | 3% | 3% | 3% | 3% | 3% | 3% |
After tax cost debt | 4.8% | 4.8% | 4.8% | 7.6% | 7.7% | 8.0% |
Equity weight | 90% | 90% | 90% | 90% | 90% | 90% |
WACC (pre tax) | 15.4% | 14.9% | 17.0% | 17.7% | 17.3% | 23.4% |
WACC (after tax) | 12.0% | 12.1% | 12.1% | 13.8% | 14.0% | 16.6% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2024 and estimates from 2025-2027 and a terminal growth rate of 2%. The average growth rates in the estimate period 2025-2027 for each Business Area is:
2023 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 7% | 8% | 11% | 73% | 15% |
Average Gross profit margin | 12.3% | 8.1% | 11.0% | 91.5% | 15.6% |
Average EBITDA margin | 12% | 11% | 22% | 32% | 22% |
Compared to the same assumptions in 2022 we see a rather significant decline in the growth assumptions. This is explained by the implementation of a new internal policy of using modest growth assumptions as the basis for impairment tests. This, however, must not be seen in conjunction with the company\u2019s expectations for future growth.
2022 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 16.0% | 9.0% | 0.0% | 196.0% | 16.0% |
Average EBITDA margin | 7.0% | 15.0% | 18.0% | 41.0% | 19.0% |
1The restructuring and sales of IP in the Marine CGU from 2022 to 2023 effect the average growth rates
2CGU Hospitality will until Q2 2023 go from a start up to become a mature profit making unit, thus impact on the growth rates seems unnatural
Sensitivity
At 31 December 2023, the Group\u2019s value in use for each CGU was higher than the carrying amount of tested goodwill with indefinite useful life and intangible assets.
The calculation is most sensitive to changes in EBITDA and gross profit (GP) margins. No reasonably likely change in the key assumptions listed above would cause the carrying value to materially exceed the recov-erable amount for any of the CGUs. The headroom on the most significant CGUs varied from 25% - 170%.
Note 14\tGoodwill and impairment
Goodwill recognised in the consolidated financial position are mainly derived from excess value following the acquisitions of Instidata AS in 2019, Facil AS, Microsky AS and Innit AS in 2020 and Maksit AS, Qualisoft AS, IB Group and Integra Ass. Ltd in 2021. Recognised goodwill amounts to NOK 206.5m as of 31 December 2023 (NOK 204.6m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 31.8 million as per 31 December 2023 (NOK 45.3m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortized, ref Note10.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually, and when there are indications of impairment. There were no impairment indications in the impairment test 2023 where recoverable amounts exceeded the balance sheet amounts, thus no impairment has been done in 2023.
The recoverable amount for each CGU has been determined by estimating their Value in Use (VIU) and comparing that to the carrying amount of the specific CGU. The calculation of VIU has been based on estimates, reflecting the Group\u2019s financial planning process. The discount rates are derived as the weighted average cost of capital (WACC) for a similar business in the same business environment.
Goodwill has been allocated for impairment testing purposes to the CGUs below.
2023
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 18\u00a0983 | 0 | 0 | 0 | 18\u00a0983 |
Italy | 0 | 0 | 4\u00a0489 | 0 | 0 | 4\u00a0489 |
Total | 56\u00a0622 | 54\u00a0568 | 4\u00a0489 | 24\u00a0416 | 66\u00a0361 | 206\u00a0457 |
2022
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 24\u00a0416 | 66\u00a0361 | 182\u00a0984 |
UK | 0 | 17\u00a0398 | 0 | 0 | 0 | 17\u00a0398 |
Italy | 0 | 0 | 4\u00a0199 | 0 | 0 | 4\u00a0199 |
Total | 56\u00a0622 | 52\u00a0983 | 4\u00a0199 | 24\u00a0416 | 66\u00a0361 | 204\u00a0581 |
Cash flow projections and assumptions
A five-year forecast of discounted cash flows plus a 2.0% terminal value growth rate was used to determine net present value of the CGU. Discounted cash flows were calculated after tax and applying a WACC after tax.
Key assumptions for the value in use calculations
The basis for the projection of the future cash flows estimated is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents management\u2019s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset. The remaining four years of the forecast period are estimated based on budget and projected performance. The calculation of VIU for the CGU is most of all sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2023 | 2022 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.0% | 4.25% | 3.7% | 3.1% | 3.3% | 4.2% |
Debt risk premium | 3.0% | 3.0% | 3.0% | 6.6% | 6.6% | 6.6% |
Equity risk premium | 4.0% | 4.0% | 4.0% | 5.9% | 5.9% | 5.9% |
Equity Beta | 1.61 | 1.61 | 1.61 | 1.37 | 1.37 | 1.37 |
Cost of equity | 9.4% | 9.4% | 9.4% | 11.2% | 11.2% | 11.2% |
Tax rate | 22% | 19% | 29% | 22% | 19% | 29% |
Credit spread | 3% | 3% | 3% | 3% | 3% | 3% |
After tax cost debt | 4.8% | 4.8% | 4.8% | 7.6% | 7.7% | 8.0% |
Equity weight | 90% | 90% | 90% | 90% | 90% | 90% |
WACC (pre tax) | 15.4% | 14.9% | 17.0% | 17.7% | 17.3% | 23.4% |
WACC (after tax) | 12.0% | 12.1% | 12.1% | 13.8% | 14.0% | 16.6% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2024 and estimates from 2025-2027 and a terminal growth rate of 2%. The average growth rates in the estimate period 2025-2027 for each Business Area is:
2023 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 7% | 8% | 11% | 73% | 15% |
Average Gross profit margin | 12.3% | 8.1% | 11.0% | 91.5% | 15.6% |
Average EBITDA margin | 12% | 11% | 22% | 32% | 22% |
Compared to the same assumptions in 2022 we see a rather significant decline in the growth assumptions. This is explained by the implementation of a new internal policy of using modest growth assumptions as the basis for impairment tests. This, however, must not be seen in conjunction with the company\u2019s expectations for future growth.
2022 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 16.0% | 9.0% | 0.0% | 196.0% | 16.0% |
Average EBITDA margin | 7.0% | 15.0% | 18.0% | 41.0% | 19.0% |
1The restructuring and sales of IP in the Marine CGU from 2022 to 2023 effect the average growth rates
2CGU Hospitality will until Q2 2023 go from a start up to become a mature profit making unit, thus impact on the growth rates seems unnatural
Sensitivity
At 31 December 2023, the Group\u2019s value in use for each CGU was higher than the carrying amount of tested goodwill with indefinite useful life and intangible assets.
The calculation is most sensitive to changes in EBITDA and gross profit (GP) margins. No reasonably likely change in the key assumptions listed above would cause the carrying value to materially exceed the recov-erable amount for any of the CGUs. The headroom on the most significant CGUs varied from 25% - 170%.
Note 15\tBusiness Combinations
During 2022 or 2023, Arribatec did not acquire any shares in companies. During 2021, Arribatec acquired shares in the companies mentioned below and consequently controls the subsidiaries from the date of acquisition. In the purchase price allocations (PPA), the assets and liabilities of the companies have been measured at the estimated fair value on the acquisition date.
The purchase price allocation identified fair value adjustments on Intangible assets like customer relations and software and deferred tax liabilities/assets. The residual value of the purchase price alloca-tion is allocated to goodwill.
Arribatec acquired five companies during 2021 within IT and operation technology. The acquisitions are carried out in line with Arribatec \u0301s strategy.
The labor force and \u201cgoing concern\u2019\u2019 elements are the main part of the acquired excess value and has been allocated to goodwill in accord-ance with IFRS 3. Goodwill in relation to the acquisition is related to different CGU\u2019s as according to Note14.
Note 15\tBusiness Combinations
During 2022 or 2023, Arribatec did not acquire any shares in companies. During 2021, Arribatec acquired shares in the companies mentioned below and consequently controls the subsidiaries from the date of acquisition. In the purchase price allocations (PPA), the assets and liabilities of the companies have been measured at the estimated fair value on the acquisition date.
The purchase price allocation identified fair value adjustments on Intangible assets like customer relations and software and deferred tax liabilities/assets. The residual value of the purchase price alloca-tion is allocated to goodwill.
Arribatec acquired five companies during 2021 within IT and operation technology. The acquisitions are carried out in line with Arribatec \u0301s strategy.
The labor force and \u201cgoing concern\u2019\u2019 elements are the main part of the acquired excess value and has been allocated to goodwill in accord-ance with IFRS 3. Goodwill in relation to the acquisition is related to different CGU\u2019s as according to Note14.
Note 16\tInvestment in subsidiaries
Subsidiary | Owning entity | Ownership | Year of acquisition/foundation | Head office |
Arribatec Group ASA | 100% | 2015 | Oslo | |
Arribatec Norge AS | Arribatec Group ASA | 100% | 2017 | Oslo |
Arribatec Hospitality AS | Arribatec Group ASA | 100% | 2019 | Oslo |
Arribatec Cloud AS | Arribatec Group ASA | 100% | 2020 | Oslo |
Arribatec EA & BPM AS | Arribatec Group ASA | 100% | 2021 | Oslo |
Arribatec Sverige AB | Arribatec Group ASA | 100% | 2016 | Stockholm |
Arribatec Denmark ApS | Arribatec Group ASA | 100% | 2015 | Copenhagen |
Arribatec Innovation Sp. z o.o. | Arribatec Group ASA | 100% | 2018 | Wroclaw |
Arribatec Belgium NV | Arribatec Group ASA | 100% | 2018 | Vosselaar |
Arribatec Italy S.r.l. | Arribatec Group ASA | 100% | 2018 | Pontinia |
Arribatec Iberia SL | Arribatec Group ASA | 100% | 2017 | Granada |
Arribatec Americas Inc | Arribatec Denmark ApS | 100% | 2018 | Colorado |
Arribatec Hospitality LLC | Arribatec Americas Inc | 100% | 2018 | Colorado |
IB S.r.l. | Arribatec Italy S.r.l. | 100% | 2021 | Rapallo |
IB Cyprus LTD | IB S.r.l. | 100% | 2021 | Limassol |
IB USA Inc | IB S.r.l. | 100% | 2021 | Florida |
Arribatec Solutions UK LTD | Arribatec Group ASA | 100% | 2018 | Closed |
Arribatec UK Ltd (former Integra Ass. Ltd) | Arribatec Group ASA | 100% | 2021 | Leicester |
Infoship GmbH | IB Cyprus LTD | 100% | 2021 | Dormant |
Arribatec France Sarl | Arribatec Group ASA | 100% | 2021 | Levallois-Perret |
Arribatec Solutions Pte. LTD | Arribatec Group ASA | 100% | 2021 | Singapore |
All entities listed are included in the consolidated financial statements of Arribatec Group ASA.
Arribatec Group ASA hold direct ownership of most entities. Arribatec Americas INC and Arribatec Americas LLC are both subsidiaries of Arribatec Denmark Aps. The IB Group is owned by Arribatec Italy S.r.l.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f29668": { "value": "Note 16\tInvestment in subsidiaries
Subsidiary | Owning entity | Ownership | Year of acquisition/foundation | Head office |
Arribatec Group ASA | 100% | 2015 | Oslo | |
Arribatec Norge AS | Arribatec Group ASA | 100% | 2017 | Oslo |
Arribatec Hospitality AS | Arribatec Group ASA | 100% | 2019 | Oslo |
Arribatec Cloud AS | Arribatec Group ASA | 100% | 2020 | Oslo |
Arribatec EA & BPM AS | Arribatec Group ASA | 100% | 2021 | Oslo |
Arribatec Sverige AB | Arribatec Group ASA | 100% | 2016 | Stockholm |
Arribatec Denmark ApS | Arribatec Group ASA | 100% | 2015 | Copenhagen |
Arribatec Innovation Sp. z o.o. | Arribatec Group ASA | 100% | 2018 | Wroclaw |
Arribatec Belgium NV | Arribatec Group ASA | 100% | 2018 | Vosselaar |
Arribatec Italy S.r.l. | Arribatec Group ASA | 100% | 2018 | Pontinia |
Arribatec Iberia SL | Arribatec Group ASA | 100% | 2017 | Granada |
Arribatec Americas Inc | Arribatec Denmark ApS | 100% | 2018 | Colorado |
Arribatec Hospitality LLC | Arribatec Americas Inc | 100% | 2018 | Colorado |
IB S.r.l. | Arribatec Italy S.r.l. | 100% | 2021 | Rapallo |
IB Cyprus LTD | IB S.r.l. | 100% | 2021 | Limassol |
IB USA Inc | IB S.r.l. | 100% | 2021 | Florida |
Arribatec Solutions UK LTD | Arribatec Group ASA | 100% | 2018 | Closed |
Arribatec UK Ltd (former Integra Ass. Ltd) | Arribatec Group ASA | 100% | 2021 | Leicester |
Infoship GmbH | IB Cyprus LTD | 100% | 2021 | Dormant |
Arribatec France Sarl | Arribatec Group ASA | 100% | 2021 | Levallois-Perret |
Arribatec Solutions Pte. LTD | Arribatec Group ASA | 100% | 2021 | Singapore |
All entities listed are included in the consolidated financial statements of Arribatec Group ASA.
Arribatec Group ASA hold direct ownership of most entities. Arribatec Americas INC and Arribatec Americas LLC are both subsidiaries of Arribatec Denmark Aps. The IB Group is owned by Arribatec Italy S.r.l.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30167": { "value": "Note 17\tOther non-current assets
NOK thousand | 2023 | 2022 |
Investment in shares | 60 | 60 |
Deposits | 3\u00a0929 | 5\u00a0263 |
Total other non-current assets | 3\u00a0989 | 5\u00a0323 |
Deposits are mainly deposits in relation to office rental agreements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s8_notes__7__97-1": { "value": "Note 17\tOther non-current assets
NOK thousand | 2023 | 2022 |
Investment in shares | 60 | 60 |
Deposits | 3\u00a0929 | 5\u00a0263 |
Total other non-current assets | 3\u00a0989 | 5\u00a0323 |
Deposits are mainly deposits in relation to office rental agreements.
Note 20\tOther current assets
NOK thousand | 2023 | 2022 |
Government receivables | 1\u00a0978 | 4\u00a0317 |
Prepaid cost\u200c1 | 10\u00a0539 | 13\u00a0648 |
Other current assets | 750 | 1\u00a0647 |
Total other current assets | 13\u00a0267 | 19\u00a0612 |
1Prepaid cost mainly consist of advances paid for software, rent and insurance
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30293": { "value": "Note 18\tAccount receivable
NOK thousand | Current | 0-30 days | 31-60 days | 61-90 days | 90+days | Total | whereof estimated credit losses |
Ageing, Accounts receivable | |||||||
2023 | 45\u00a0192 | 33\u00a0769 | 5\u00a0533 | 2\u00a0795 | 3\u00a0608 | 90\u00a0898 | (4\u00a0230) |
2022 | 60\u00a0600 | 17\u00a0022 | 5\u00a0200 | 2\u00a0984 | 2\u00a0409 | 88\u00a0214 | (2\u00a0994) |
Provision for Expected Credit Losses (ECL) is included with NOK 4.2m (NOK 3.0m). The provision is based on a valuation per subsidiary at year end based on general assumptions as well as agreements with customers and payments made in the next year. Account receivables are non-interest bearing.
Expensed credit loss in 2023 was NOK 0.1m (0.1m)
Credit risk
Credit risks are the risks that counterpart will not meet its obligations under a financial contract or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities, primarily related to cash and cash equivalents, trade receivables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pays for software and services under a software-as-a-service (SaaS) arrangements, where the customer in general pays a lump sum for the initial software integration and implementation, and subsequently only pays for services related to maintenance and consulting services. Although the Group has opted for this model to ensure some predict-able long-term income the Group is dependent on its customers having the ability and/or willingness to pay for the software and services already provided or to be provided.
Customer credit risk is managed subject to established policies, procedures and controls relating to customer credit risk management. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
The Company manage the credit risk by working closely with the customers.
Accounts and other receivable
Accounts receivable and other receivables are initially recognized at fair value and are subsequently measured at amortized cost, less provision for expected credit losses.
Note 18\tAccount receivable
NOK thousand | Current | 0-30 days | 31-60 days | 61-90 days | 90+days | Total | whereof estimated credit losses |
Ageing, Accounts receivable | |||||||
2023 | 45\u00a0192 | 33\u00a0769 | 5\u00a0533 | 2\u00a0795 | 3\u00a0608 | 90\u00a0898 | (4\u00a0230) |
2022 | 60\u00a0600 | 17\u00a0022 | 5\u00a0200 | 2\u00a0984 | 2\u00a0409 | 88\u00a0214 | (2\u00a0994) |
Provision for Expected Credit Losses (ECL) is included with NOK 4.2m (NOK 3.0m). The provision is based on a valuation per subsidiary at year end based on general assumptions as well as agreements with customers and payments made in the next year. Account receivables are non-interest bearing.
Expensed credit loss in 2023 was NOK 0.1m (0.1m)
Credit risk
Credit risks are the risks that counterpart will not meet its obligations under a financial contract or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities, primarily related to cash and cash equivalents, trade receivables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pays for software and services under a software-as-a-service (SaaS) arrangements, where the customer in general pays a lump sum for the initial software integration and implementation, and subsequently only pays for services related to maintenance and consulting services. Although the Group has opted for this model to ensure some predict-able long-term income the Group is dependent on its customers having the ability and/or willingness to pay for the software and services already provided or to be provided.
Customer credit risk is managed subject to established policies, procedures and controls relating to customer credit risk management. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
The Company manage the credit risk by working closely with the customers.
Accounts and other receivable
Accounts receivable and other receivables are initially recognized at fair value and are subsequently measured at amortized cost, less provision for expected credit losses.
Note 18\tAccount receivable
NOK thousand | Current | 0-30 days | 31-60 days | 61-90 days | 90+days | Total | whereof estimated credit losses |
Ageing, Accounts receivable | |||||||
2023 | 45\u00a0192 | 33\u00a0769 | 5\u00a0533 | 2\u00a0795 | 3\u00a0608 | 90\u00a0898 | (4\u00a0230) |
2022 | 60\u00a0600 | 17\u00a0022 | 5\u00a0200 | 2\u00a0984 | 2\u00a0409 | 88\u00a0214 | (2\u00a0994) |
Provision for Expected Credit Losses (ECL) is included with NOK 4.2m (NOK 3.0m). The provision is based on a valuation per subsidiary at year end based on general assumptions as well as agreements with customers and payments made in the next year. Account receivables are non-interest bearing.
Expensed credit loss in 2023 was NOK 0.1m (0.1m)
Credit risk
Credit risks are the risks that counterpart will not meet its obligations under a financial contract or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities, primarily related to cash and cash equivalents, trade receivables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pays for software and services under a software-as-a-service (SaaS) arrangements, where the customer in general pays a lump sum for the initial software integration and implementation, and subsequently only pays for services related to maintenance and consulting services. Although the Group has opted for this model to ensure some predict-able long-term income the Group is dependent on its customers having the ability and/or willingness to pay for the software and services already provided or to be provided.
Customer credit risk is managed subject to established policies, procedures and controls relating to customer credit risk management. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
The Company manage the credit risk by working closely with the customers.
Accounts and other receivable
Accounts receivable and other receivables are initially recognized at fair value and are subsequently measured at amortized cost, less provision for expected credit losses.
Credit risks are the risks that counterpart will not meet its obligations under a financial contract or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities, primarily related to cash and cash equivalents, trade receivables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pays for software and services under a software-as-a-service (SaaS) arrangements, where the customer in general pays a lump sum for the initial software integration and implementation, and subsequently only pays for services related to maintenance and consulting services. Although the Group has opted for this model to ensure some predict-able long-term income the Group is dependent on its customers having the ability and/or willingness to pay for the software and services already provided or to be provided.
Customer credit risk is managed subject to established policies, procedures and controls relating to customer credit risk management. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
The Company manage the credit risk by working closely with the customers.
Accounts and other receivable
Accounts receivable and other receivables are initially recognized at fair value and are subsequently measured at amortized cost, less provision for expected credit losses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30665": { "value": "Accounts receivable and other receivables are initially recognized at fair value and are subsequently measured at amortized cost, less provision for expected credit losses.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30666": { "value": "Accounts receivable and other receivables are initially recognized at fair value and are subsequently measured at amortized cost, less provision for expected credit losses.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30752": { "value": "Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30753": { "value": "Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30754": { "value": "Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30755": { "value": "Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30756": { "value": "Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30757": { "value": "Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30758": { "value": "Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30759": { "value": "Note 19\tFinancial instruments
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
The carrying amount is reasonable approximate of fair value for Arribatec\u2019s financial instruments such as short-term trade receivables and payables and lease liabilities.
The financial assets principally consist of investments in shares, accounts receivables, deposits related to premises, cash and cash equivalents and other receivables. The financial liabilities principally consist of non-current lease liabilities, other non-current financial liabilities, current lease liabilities, accounts payable, contract liabili-ties, current tax payable, other current liabilities and interest bearing loan. Any draw-downs on the Credit facility in Danske Bank are classified as short term interest bearing loan. The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2023 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 90\u00a0898 | 0 | 90\u00a0898 | 0 | 0 | 90\u00a0898 | 90\u00a0898 |
Deposits related to premises | 3\u00a0929 | 0 | 3\u00a0929 | 0 | 0 | 3\u00a0929 | 3\u00a0929 |
Cash and cash equivalents | 39\u00a0371 | 0 | 39\u00a0371 | 0 | 0 | 39\u00a0371 | 39\u00a0371 |
Other receivables | 1\u00a0398 | 0 | 1\u00a0398 | 0 | 0 | 1\u00a0398 | 1\u00a0398 |
Total financial assets | 135\u00a0595 | 60 | 135\u00a0655 | 0 | 0 | 135\u00a0655 | 135\u00a0655 |
Financial liabilities | |||||||
Non-current lease liabilities | 16\u00a0836 | 0 | 16\u00a0836 | 0 | 0 | 16\u00a0836 | 16\u00a0836 |
Other non-current financial liabilities | 1\u00a0804 | 0 | 1\u00a0804 | 0 | 0 | 1\u00a0804 | 1\u00a0804 |
Current lease liabilities | 12\u00a0909 | 0 | 12\u00a0909 | 0 | 0 | 12\u00a0909 | 12\u00a0909 |
Accounts payable | 39\u00a0816 | 0 | 39\u00a0816 | 0 | 0 | 39\u00a0816 | 39\u00a0816 |
Contract liabilities | 24\u00a0319 | 0 | 24\u00a0319 | 0 | 0 | 24\u00a0319 | 24\u00a0319 |
Current tax payable | 1\u00a0669 | 0 | 1\u00a0669 | 0 | 0 | 1\u00a0669 | 1\u00a0669 |
Other current liabilities | 83\u00a0869 | 0 | 83\u00a0869 | 0 | 0 | 83\u00a0869 | 83\u00a0869 |
Interest bearing loan | 39\u00a0388 | 0 | 39\u00a0388 | 0 | 0 | 39\u00a0388 | 39\u00a0388 |
Total financial liabilities | 220\u00a0611 | 0 | 220\u00a0611 | 0 | 0 | 220\u00a0611 | 220\u00a0611 |
Carrying amount | Fair value | ||||||
NOK thousand | Amortized cost | ||||||
Fair value through profit and loss | Total | Level 1 | Level 2 | Level 3 | Total | ||
31 Dec 2022 | |||||||
Financial assets | |||||||
Investment in shares1 | 0 | 60 | 60 | 0 | 0 | 60 | 60 |
Accounts receivable | 88\u00a0214 | 0 | 88\u00a0214 | 0 | 0 | 88\u00a0214 | 88\u00a0214 |
Deposits related to premises | 5\u00a0263 | 0 | 5\u00a0263 | 0 | 0 | 5\u00a0263 | 5\u00a0263 |
Cash and cash equivalents | 40\u00a0449 | 0 | 40\u00a0449 | 0 | 0 | 40\u00a0449 | 40\u00a0449 |
Other receivables | 1\u00a0128 | 0 | 1\u00a0128 | 0 | 0 | 1\u00a0128 | 1\u00a0128 |
Total financial assets | 135\u00a0054 | 60 | 135\u00a0114 | 0 | 0 | 135\u00a0114 | 135\u00a0114 |
Financial liabilities | |||||||
Non-current lease liabilities | 26\u00a0727 | 0 | 26\u00a0727 | 0 | 0 | 26\u00a0727 | 26\u00a0727 |
Other non-current financial liabilities | 967 | 0 | 967 | 0 | 0 | 967 | 967 |
Current lease liabilities | 16\u00a0765 | 0 | 16\u00a0765 | 0 | 0 | 16\u00a0765 | 16\u00a0765 |
Accounts payable | 31\u00a0879 | 0 | 31\u00a0879 | 0 | 0 | 31\u00a0879 | 31\u00a0879 |
Contract liabilities | 16\u00a0476 | 0 | 16\u00a0476 | 0 | 0 | 16\u00a0476 | 16\u00a0476 |
Current tax payable | 650 | 0 | 650 | 0 | 0 | 650 | 650 |
Other current liabilities | 83\u00a0969 | 0 | 83\u00a0969 | 0 | 0 | 83\u00a0969 | 83\u00a0969 |
Interest bearing loan | 31\u00a0211 | 0 | 31\u00a0211 | 0 | 0 | 31\u00a0211 | 31\u00a0211 |
Total financial liabilities | 208\u00a0643 | 0 | 208\u00a0643 | 0 | 0 | 208\u00a0643 | 208\u00a0643 |
1Investment in shares is classified as Other non-current assets
2Consists of lease liabilites, other non-current financial liabilities, accounts payable, contract liabilities, current tax payable and other current liabilities
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30768": { "value": "All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30769": { "value": "All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f30770": { "value": "All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32041": { "value": "Note 20\tOther current assets
NOK thousand | 2023 | 2022 |
Government receivables | 1\u00a0978 | 4\u00a0317 |
Prepaid cost\u200c1 | 10\u00a0539 | 13\u00a0648 |
Other current assets | 750 | 1\u00a0647 |
Total other current assets | 13\u00a0267 | 19\u00a0612 |
1Prepaid cost mainly consist of advances paid for software, rent and insurance
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasePrepaymentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32042": { "value": "Note 20\tOther current assets
NOK thousand | 2023 | 2022 |
Government receivables | 1\u00a0978 | 4\u00a0317 |
Prepaid cost\u200c1 | 10\u00a0539 | 13\u00a0648 |
Other current assets | 750 | 1\u00a0647 |
Total other current assets | 13\u00a0267 | 19\u00a0612 |
1Prepaid cost mainly consist of advances paid for software, rent and insurance
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32043": { "value": "Note 20\tOther current assets
NOK thousand | 2023 | 2022 |
Government receivables | 1\u00a0978 | 4\u00a0317 |
Prepaid cost\u200c1 | 10\u00a0539 | 13\u00a0648 |
Other current assets | 750 | 1\u00a0647 |
Total other current assets | 13\u00a0267 | 19\u00a0612 |
1Prepaid cost mainly consist of advances paid for software, rent and insurance
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32187": { "value": "Note 21\tContract assets and liabilities
Consulting services
Arribatec provides implementation and integration services under consulting contracts with customers. Most contracts have a pricing structure where Arribatec agrees to implement and integrate software for a fixed hourly rate agreed upon in the contract, but where the number of hours to be delivered is not specified in the contract.
Arribatec\u2019s performance obligation is satisfied over time because the consulting services do not create an asset that Arribatec could use for an alternative purpose and Arribatec has an enforceable right to payment for the hours worked. Revenue is recognised over time, normally according to the invoiced hours for the period. A contract asset is recognised when the company has an unconditional right to payment. A contract liability is recognised when invoicing is done in advance compared to revenue recognition.
From time-to-time Arribatec has a fixed price consulting contract. In the same manner as for the contract with variable hours, the asset created does not have an alternative use for Arribatec and Arribatec has an enforceable right to payment in line with progress in the project. Arribatec recognises revenue over time, in line with progress in the project. Progress is estimated as hours spent at the balance sheet date divided with estimated total hours in the project. This requires estimating the remaining hours to complete.
Contract assets
Contract assets are recognised for performance obligations satis-fied over time, mainly from installation services and projects where progress is measured over time. When the consideration becomes unconditional the contract assets are reclassified to accounts receiv-able, which attributes the main changes to the contract assets in the periods.
Contract assets will typically occur in Saas projects where the customer pays a fixed annual or monthly fee over 3-5 years. In such cases revenue is recognised at the time where performance obliga-tions are met and registered as contract assets on the balance sheet. A reclassification to accounts receivable is done when the customer is invoiced.
NOK thousand | 2023 | 2022 |
As of 1 January | 16\u00a0276 | 19\u00a0549 |
Performance obligations met | 42\u00a0789 | 36\u00a0572 |
Reclassified to receivables | (35\u00a0305) | (40\u00a0272) |
Translation difference | 484 | 427 |
Total contract assets | 24\u00a0244 | 16\u00a0276 |
It is expected that 93% of the above contract assets will be reclassi-fied to receivables in 2024, 5% in 2025 followed by 2% in 2026.
The expected credit losses on Contracts assets are considered immaterial as the contracts are mainly with governmental parties and therefore secured Contracts are subject to valuation of credit losses in the same way as Account receivables.
Contract liabilities
Contract liabilities relate to consideration received in advance of performance under revenue contracts with customers. Revenue is recognised as (or when) the Group fulfils its performance obligation(s) under the contracts. Contract liabilities are presented in the table below:
NOK thousand | 2023 | 2022 |
As of 1 January | 16\u00a0476 | 21\u00a0483 |
Deferred revenue | 101\u00a0264 | 68\u00a0627 |
Recognised as revenue in P&L | (94\u00a0227) | (73\u00a0811) |
Translation difference | 806 | 177 |
Total contract liabilities | 24\u00a0319 | 16\u00a0476 |
Contract liabilities are mainly invoiced to customers in advance and relating to 2024. All liabilities per 1 January was recognised as revenue in P&L during the year.
Note 22\tInventory
Inventories are recognised at the lower of cost and net realisable value. The cost is arrived at using the FIFO method and includes the costs incurred in acquiring the goods and bringing them to their current state and location.
NOK thousand | 2023 | 2022 |
Hardware for resale | 1\u00a0548 | 900 |
Licenses for resale | 0 | 2\u00a0877 |
Total inventory | 1\u00a0548 | 3\u00a0777 |
Note 22\tInventory
Inventories are recognised at the lower of cost and net realisable value. The cost is arrived at using the FIFO method and includes the costs incurred in acquiring the goods and bringing them to their current state and location.
NOK thousand | 2023 | 2022 |
Hardware for resale | 1\u00a0548 | 900 |
Licenses for resale | 0 | 2\u00a0877 |
Total inventory | 1\u00a0548 | 3\u00a0777 |
Note 23\tCash and cash equivalents
NOK thousand | 2023 | 2022 |
Cash, free | 27\u00a0260 | 26\u00a0956 |
Cash, restricted | 12\u00a0111 | 13\u00a0492 |
Total cash and cash equivalents | 39\u00a0371 | 40\u00a0449 |
Restricted cash consists of rental deposits and tax accounts.
Liquidity risk
Liquidity risk is the potential loss of the Group\u2019s inability to meet its contractual obligations when due. The Group monitors its risk of a shortage of funds using cash flow forecasts. The Group had cash and cash equivalents of NOK 39.4m on 31 December 2023 (2022: NOK 40.4m).
The following table details the Group\u2019s remaining contractual matu-rity for its non-derivative financial liabilities with agreed repayment periods. The tables have been set up based on the undiscounted cash flows of financial liabilities based on the most likely first date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are a floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual matu-rity is based on the earliest date on which the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
NOK thousand | -6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans (including interest) | 33\u00a0709 | 4\u00a0880 | 1\u00a0875 | 3\u00a0723 | 600 | 44\u00a0788 |
Provisions | 0 | 0 | 2\u00a0254 | 1\u00a0270 | 7\u00a0160 | 10\u00a0685 |
Accounts payable | 39\u00a0816 | 0 | 0 | 0 | 0 | 39\u00a0816 |
Lease liabilities | 6\u00a0805 | 6\u00a0805 | 9\u00a0421 | 5\u00a0344 | 2\u00a0610 | 30\u00a0984 |
Other current liabilities | 42\u00a0432 | 41\u00a0437 | 0 | 0 | 0 | 83\u00a0869 |
Total | 122\u00a0762 | 53\u00a0122 | 13\u00a0550 | 10\u00a0337 | 10\u00a0370 | 210\u00a0141 |
The Group closely monitors and follow up the cash situation. During 2022 Arribatec carried out a private placement and a subsequent repair offer that brought in 51.8million. The Group\u2019s cash situation, including proceeds from this capital increase, were minus 3.3 million. Furthermore, 2022 was a year bringing the different acquired units into One Group on common policies, structure and systems, with the intention to realize the synergizes and secure being cash positive.
Financing risk
To support the Group\u2019s growth ambitions, the Group continuously work on securing necessary committed financing and alternative funding sources. Securing non-current financing at competitive terms is a major part of the Group\u2019s long-term liquidity planning. Management continuously monitors financing risk, different funding related to revolving facilities, to minimize financing risk.
Capital management
The primary objective of the Group\u2019s capital management is to ensure the Group maintains a solid capital structure enabling it to develop and build its business to maximize shareholder value. The Group\u2019s objective is to maintain a balance of financial assets that reflects the cash requirement of its operations and investments for the next twelve months. The group defines a solid capital structure as balanced ration between debt and equity. No change was made in the objectives, policies, or process for managing capital during the year ended 31 December 2023.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32964": { "value": "Note 23\tCash and cash equivalents
NOK thousand | 2023 | 2022 |
Cash, free | 27\u00a0260 | 26\u00a0956 |
Cash, restricted | 12\u00a0111 | 13\u00a0492 |
Total cash and cash equivalents | 39\u00a0371 | 40\u00a0449 |
Restricted cash consists of rental deposits and tax accounts.
Liquidity risk
Liquidity risk is the potential loss of the Group\u2019s inability to meet its contractual obligations when due. The Group monitors its risk of a shortage of funds using cash flow forecasts. The Group had cash and cash equivalents of NOK 39.4m on 31 December 2023 (2022: NOK 40.4m).
The following table details the Group\u2019s remaining contractual matu-rity for its non-derivative financial liabilities with agreed repayment periods. The tables have been set up based on the undiscounted cash flows of financial liabilities based on the most likely first date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are a floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual matu-rity is based on the earliest date on which the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
NOK thousand | -6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans (including interest) | 33\u00a0709 | 4\u00a0880 | 1\u00a0875 | 3\u00a0723 | 600 | 44\u00a0788 |
Provisions | 0 | 0 | 2\u00a0254 | 1\u00a0270 | 7\u00a0160 | 10\u00a0685 |
Accounts payable | 39\u00a0816 | 0 | 0 | 0 | 0 | 39\u00a0816 |
Lease liabilities | 6\u00a0805 | 6\u00a0805 | 9\u00a0421 | 5\u00a0344 | 2\u00a0610 | 30\u00a0984 |
Other current liabilities | 42\u00a0432 | 41\u00a0437 | 0 | 0 | 0 | 83\u00a0869 |
Total | 122\u00a0762 | 53\u00a0122 | 13\u00a0550 | 10\u00a0337 | 10\u00a0370 | 210\u00a0141 |
The Group closely monitors and follow up the cash situation. During 2022 Arribatec carried out a private placement and a subsequent repair offer that brought in 51.8million. The Group\u2019s cash situation, including proceeds from this capital increase, were minus 3.3 million. Furthermore, 2022 was a year bringing the different acquired units into One Group on common policies, structure and systems, with the intention to realize the synergizes and secure being cash positive.
Financing risk
To support the Group\u2019s growth ambitions, the Group continuously work on securing necessary committed financing and alternative funding sources. Securing non-current financing at competitive terms is a major part of the Group\u2019s long-term liquidity planning. Management continuously monitors financing risk, different funding related to revolving facilities, to minimize financing risk.
Capital management
The primary objective of the Group\u2019s capital management is to ensure the Group maintains a solid capital structure enabling it to develop and build its business to maximize shareholder value. The Group\u2019s objective is to maintain a balance of financial assets that reflects the cash requirement of its operations and investments for the next twelve months. The group defines a solid capital structure as balanced ration between debt and equity. No change was made in the objectives, policies, or process for managing capital during the year ended 31 December 2023.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32965": { "value": "Note 23\tCash and cash equivalents
NOK thousand | 2023 | 2022 |
Cash, free | 27\u00a0260 | 26\u00a0956 |
Cash, restricted | 12\u00a0111 | 13\u00a0492 |
Total cash and cash equivalents | 39\u00a0371 | 40\u00a0449 |
Restricted cash consists of rental deposits and tax accounts.
Liquidity risk
Liquidity risk is the potential loss of the Group\u2019s inability to meet its contractual obligations when due. The Group monitors its risk of a shortage of funds using cash flow forecasts. The Group had cash and cash equivalents of NOK 39.4m on 31 December 2023 (2022: NOK 40.4m).
The following table details the Group\u2019s remaining contractual matu-rity for its non-derivative financial liabilities with agreed repayment periods. The tables have been set up based on the undiscounted cash flows of financial liabilities based on the most likely first date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are a floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual matu-rity is based on the earliest date on which the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
NOK thousand | -6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans (including interest) | 33\u00a0709 | 4\u00a0880 | 1\u00a0875 | 3\u00a0723 | 600 | 44\u00a0788 |
Provisions | 0 | 0 | 2\u00a0254 | 1\u00a0270 | 7\u00a0160 | 10\u00a0685 |
Accounts payable | 39\u00a0816 | 0 | 0 | 0 | 0 | 39\u00a0816 |
Lease liabilities | 6\u00a0805 | 6\u00a0805 | 9\u00a0421 | 5\u00a0344 | 2\u00a0610 | 30\u00a0984 |
Other current liabilities | 42\u00a0432 | 41\u00a0437 | 0 | 0 | 0 | 83\u00a0869 |
Total | 122\u00a0762 | 53\u00a0122 | 13\u00a0550 | 10\u00a0337 | 10\u00a0370 | 210\u00a0141 |
The Group closely monitors and follow up the cash situation. During 2022 Arribatec carried out a private placement and a subsequent repair offer that brought in 51.8million. The Group\u2019s cash situation, including proceeds from this capital increase, were minus 3.3 million. Furthermore, 2022 was a year bringing the different acquired units into One Group on common policies, structure and systems, with the intention to realize the synergizes and secure being cash positive.
Financing risk
To support the Group\u2019s growth ambitions, the Group continuously work on securing necessary committed financing and alternative funding sources. Securing non-current financing at competitive terms is a major part of the Group\u2019s long-term liquidity planning. Management continuously monitors financing risk, different funding related to revolving facilities, to minimize financing risk.
Capital management
The primary objective of the Group\u2019s capital management is to ensure the Group maintains a solid capital structure enabling it to develop and build its business to maximize shareholder value. The Group\u2019s objective is to maintain a balance of financial assets that reflects the cash requirement of its operations and investments for the next twelve months. The group defines a solid capital structure as balanced ration between debt and equity. No change was made in the objectives, policies, or process for managing capital during the year ended 31 December 2023.
", "dimensions": { "concept": "ifrs-full:MaturityAnalysisForNonderivativeFinancialLiabilities", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32966": { "value": "Note 23\tCash and cash equivalents
NOK thousand | 2023 | 2022 |
Cash, free | 27\u00a0260 | 26\u00a0956 |
Cash, restricted | 12\u00a0111 | 13\u00a0492 |
Total cash and cash equivalents | 39\u00a0371 | 40\u00a0449 |
Restricted cash consists of rental deposits and tax accounts.
Liquidity risk
Liquidity risk is the potential loss of the Group\u2019s inability to meet its contractual obligations when due. The Group monitors its risk of a shortage of funds using cash flow forecasts. The Group had cash and cash equivalents of NOK 39.4m on 31 December 2023 (2022: NOK 40.4m).
The following table details the Group\u2019s remaining contractual matu-rity for its non-derivative financial liabilities with agreed repayment periods. The tables have been set up based on the undiscounted cash flows of financial liabilities based on the most likely first date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are a floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual matu-rity is based on the earliest date on which the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
NOK thousand | -6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans (including interest) | 33\u00a0709 | 4\u00a0880 | 1\u00a0875 | 3\u00a0723 | 600 | 44\u00a0788 |
Provisions | 0 | 0 | 2\u00a0254 | 1\u00a0270 | 7\u00a0160 | 10\u00a0685 |
Accounts payable | 39\u00a0816 | 0 | 0 | 0 | 0 | 39\u00a0816 |
Lease liabilities | 6\u00a0805 | 6\u00a0805 | 9\u00a0421 | 5\u00a0344 | 2\u00a0610 | 30\u00a0984 |
Other current liabilities | 42\u00a0432 | 41\u00a0437 | 0 | 0 | 0 | 83\u00a0869 |
Total | 122\u00a0762 | 53\u00a0122 | 13\u00a0550 | 10\u00a0337 | 10\u00a0370 | 210\u00a0141 |
The Group closely monitors and follow up the cash situation. During 2022 Arribatec carried out a private placement and a subsequent repair offer that brought in 51.8million. The Group\u2019s cash situation, including proceeds from this capital increase, were minus 3.3 million. Furthermore, 2022 was a year bringing the different acquired units into One Group on common policies, structure and systems, with the intention to realize the synergizes and secure being cash positive.
Financing risk
To support the Group\u2019s growth ambitions, the Group continuously work on securing necessary committed financing and alternative funding sources. Securing non-current financing at competitive terms is a major part of the Group\u2019s long-term liquidity planning. Management continuously monitors financing risk, different funding related to revolving facilities, to minimize financing risk.
Capital management
The primary objective of the Group\u2019s capital management is to ensure the Group maintains a solid capital structure enabling it to develop and build its business to maximize shareholder value. The Group\u2019s objective is to maintain a balance of financial assets that reflects the cash requirement of its operations and investments for the next twelve months. The group defines a solid capital structure as balanced ration between debt and equity. No change was made in the objectives, policies, or process for managing capital during the year ended 31 December 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepositsFromBanksExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32967": { "value": "Note 23\tCash and cash equivalents
NOK thousand | 2023 | 2022 |
Cash, free | 27\u00a0260 | 26\u00a0956 |
Cash, restricted | 12\u00a0111 | 13\u00a0492 |
Total cash and cash equivalents | 39\u00a0371 | 40\u00a0449 |
Restricted cash consists of rental deposits and tax accounts.
Liquidity risk
Liquidity risk is the potential loss of the Group\u2019s inability to meet its contractual obligations when due. The Group monitors its risk of a shortage of funds using cash flow forecasts. The Group had cash and cash equivalents of NOK 39.4m on 31 December 2023 (2022: NOK 40.4m).
The following table details the Group\u2019s remaining contractual matu-rity for its non-derivative financial liabilities with agreed repayment periods. The tables have been set up based on the undiscounted cash flows of financial liabilities based on the most likely first date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are a floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual matu-rity is based on the earliest date on which the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
NOK thousand | -6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans (including interest) | 33\u00a0709 | 4\u00a0880 | 1\u00a0875 | 3\u00a0723 | 600 | 44\u00a0788 |
Provisions | 0 | 0 | 2\u00a0254 | 1\u00a0270 | 7\u00a0160 | 10\u00a0685 |
Accounts payable | 39\u00a0816 | 0 | 0 | 0 | 0 | 39\u00a0816 |
Lease liabilities | 6\u00a0805 | 6\u00a0805 | 9\u00a0421 | 5\u00a0344 | 2\u00a0610 | 30\u00a0984 |
Other current liabilities | 42\u00a0432 | 41\u00a0437 | 0 | 0 | 0 | 83\u00a0869 |
Total | 122\u00a0762 | 53\u00a0122 | 13\u00a0550 | 10\u00a0337 | 10\u00a0370 | 210\u00a0141 |
The Group closely monitors and follow up the cash situation. During 2022 Arribatec carried out a private placement and a subsequent repair offer that brought in 51.8million. The Group\u2019s cash situation, including proceeds from this capital increase, were minus 3.3 million. Furthermore, 2022 was a year bringing the different acquired units into One Group on common policies, structure and systems, with the intention to realize the synergizes and secure being cash positive.
Financing risk
To support the Group\u2019s growth ambitions, the Group continuously work on securing necessary committed financing and alternative funding sources. Securing non-current financing at competitive terms is a major part of the Group\u2019s long-term liquidity planning. Management continuously monitors financing risk, different funding related to revolving facilities, to minimize financing risk.
Capital management
The primary objective of the Group\u2019s capital management is to ensure the Group maintains a solid capital structure enabling it to develop and build its business to maximize shareholder value. The Group\u2019s objective is to maintain a balance of financial assets that reflects the cash requirement of its operations and investments for the next twelve months. The group defines a solid capital structure as balanced ration between debt and equity. No change was made in the objectives, policies, or process for managing capital during the year ended 31 December 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32968": { "value": "Note 23\tCash and cash equivalents
NOK thousand | 2023 | 2022 |
Cash, free | 27\u00a0260 | 26\u00a0956 |
Cash, restricted | 12\u00a0111 | 13\u00a0492 |
Total cash and cash equivalents | 39\u00a0371 | 40\u00a0449 |
Restricted cash consists of rental deposits and tax accounts.
Liquidity risk
Liquidity risk is the potential loss of the Group\u2019s inability to meet its contractual obligations when due. The Group monitors its risk of a shortage of funds using cash flow forecasts. The Group had cash and cash equivalents of NOK 39.4m on 31 December 2023 (2022: NOK 40.4m).
The following table details the Group\u2019s remaining contractual matu-rity for its non-derivative financial liabilities with agreed repayment periods. The tables have been set up based on the undiscounted cash flows of financial liabilities based on the most likely first date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are a floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual matu-rity is based on the earliest date on which the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
NOK thousand | -6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans (including interest) | 33\u00a0709 | 4\u00a0880 | 1\u00a0875 | 3\u00a0723 | 600 | 44\u00a0788 |
Provisions | 0 | 0 | 2\u00a0254 | 1\u00a0270 | 7\u00a0160 | 10\u00a0685 |
Accounts payable | 39\u00a0816 | 0 | 0 | 0 | 0 | 39\u00a0816 |
Lease liabilities | 6\u00a0805 | 6\u00a0805 | 9\u00a0421 | 5\u00a0344 | 2\u00a0610 | 30\u00a0984 |
Other current liabilities | 42\u00a0432 | 41\u00a0437 | 0 | 0 | 0 | 83\u00a0869 |
Total | 122\u00a0762 | 53\u00a0122 | 13\u00a0550 | 10\u00a0337 | 10\u00a0370 | 210\u00a0141 |
The Group closely monitors and follow up the cash situation. During 2022 Arribatec carried out a private placement and a subsequent repair offer that brought in 51.8million. The Group\u2019s cash situation, including proceeds from this capital increase, were minus 3.3 million. Furthermore, 2022 was a year bringing the different acquired units into One Group on common policies, structure and systems, with the intention to realize the synergizes and secure being cash positive.
Financing risk
To support the Group\u2019s growth ambitions, the Group continuously work on securing necessary committed financing and alternative funding sources. Securing non-current financing at competitive terms is a major part of the Group\u2019s long-term liquidity planning. Management continuously monitors financing risk, different funding related to revolving facilities, to minimize financing risk.
Capital management
The primary objective of the Group\u2019s capital management is to ensure the Group maintains a solid capital structure enabling it to develop and build its business to maximize shareholder value. The Group\u2019s objective is to maintain a balance of financial assets that reflects the cash requirement of its operations and investments for the next twelve months. The group defines a solid capital structure as balanced ration between debt and equity. No change was made in the objectives, policies, or process for managing capital during the year ended 31 December 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33037": { "value": "Liquidity risk is the potential loss of the Group\u2019s inability to meet its contractual obligations when due. The Group monitors its risk of a shortage of funds using cash flow forecasts. The Group had cash and cash equivalents of NOK 39.4m on 31 December 2023 (2022: NOK 40.4m).
The following table details the Group\u2019s remaining contractual matu-rity for its non-derivative financial liabilities with agreed repayment periods. The tables have been set up based on the undiscounted cash flows of financial liabilities based on the most likely first date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are a floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual matu-rity is based on the earliest date on which the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
NOK thousand | -6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans (including interest) | 33\u00a0709 | 4\u00a0880 | 1\u00a0875 | 3\u00a0723 | 600 | 44\u00a0788 |
Provisions | 0 | 0 | 2\u00a0254 | 1\u00a0270 | 7\u00a0160 | 10\u00a0685 |
Accounts payable | 39\u00a0816 | 0 | 0 | 0 | 0 | 39\u00a0816 |
Lease liabilities | 6\u00a0805 | 6\u00a0805 | 9\u00a0421 | 5\u00a0344 | 2\u00a0610 | 30\u00a0984 |
Other current liabilities | 42\u00a0432 | 41\u00a0437 | 0 | 0 | 0 | 83\u00a0869 |
Total | 122\u00a0762 | 53\u00a0122 | 13\u00a0550 | 10\u00a0337 | 10\u00a0370 | 210\u00a0141 |
The Group closely monitors and follow up the cash situation. During 2022 Arribatec carried out a private placement and a subsequent repair offer that brought in 51.8million. The Group\u2019s cash situation, including proceeds from this capital increase, were minus 3.3 million. Furthermore, 2022 was a year bringing the different acquired units into One Group on common policies, structure and systems, with the intention to realize the synergizes and secure being cash positive.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33038": { "value": "Liquidity risk is the potential loss of the Group\u2019s inability to meet its contractual obligations when due. The Group monitors its risk of a shortage of funds using cash flow forecasts. The Group had cash and cash equivalents of NOK 39.4m on 31 December 2023 (2022: NOK 40.4m).
The following table details the Group\u2019s remaining contractual matu-rity for its non-derivative financial liabilities with agreed repayment periods. The tables have been set up based on the undiscounted cash flows of financial liabilities based on the most likely first date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are a floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual matu-rity is based on the earliest date on which the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
NOK thousand | -6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans (including interest) | 33\u00a0709 | 4\u00a0880 | 1\u00a0875 | 3\u00a0723 | 600 | 44\u00a0788 |
Provisions | 0 | 0 | 2\u00a0254 | 1\u00a0270 | 7\u00a0160 | 10\u00a0685 |
Accounts payable | 39\u00a0816 | 0 | 0 | 0 | 0 | 39\u00a0816 |
Lease liabilities | 6\u00a0805 | 6\u00a0805 | 9\u00a0421 | 5\u00a0344 | 2\u00a0610 | 30\u00a0984 |
Other current liabilities | 42\u00a0432 | 41\u00a0437 | 0 | 0 | 0 | 83\u00a0869 |
Total | 122\u00a0762 | 53\u00a0122 | 13\u00a0550 | 10\u00a0337 | 10\u00a0370 | 210\u00a0141 |
The Group closely monitors and follow up the cash situation. During 2022 Arribatec carried out a private placement and a subsequent repair offer that brought in 51.8million. The Group\u2019s cash situation, including proceeds from this capital increase, were minus 3.3 million. Furthermore, 2022 was a year bringing the different acquired units into One Group on common policies, structure and systems, with the intention to realize the synergizes and secure being cash positive.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33604": { "value": "The primary objective of the Group\u2019s capital management is to ensure the Group maintains a solid capital structure enabling it to develop and build its business to maximize shareholder value. The Group\u2019s objective is to maintain a balance of financial assets that reflects the cash requirement of its operations and investments for the next twelve months. The group defines a solid capital structure as balanced ration between debt and equity. No change was made in the objectives, policies, or process for managing capital during the year ended 31 December 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33695": { "value": "Note 24\tShares
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
1 January 2020 | 16\u00a0077\u00a0403 | 16\u00a0077\u00a0403 |
Capital issue, Jan | 7\u00a0164\u00a0688 | 7\u00a0164\u00a0688 |
Capital issue, Mar | 41\u00a0666\u00a0666 | 41\u00a0666\u00a0666 |
Capital issue, Mar | 25\u00a0000\u00a0000 | 25\u00a0000\u00a0000 |
Capital decrease, Nov | (64\u00a0734\u00a0305) | |
New shares, Oct | 235\u00a0819\u00a0574 | 66\u00a0029\u00a0481 |
Share issue, repair offer, Nov | 32\u00a0855\u00a0000 | 9\u00a0199\u00a0400 |
Share issue, employee offer, Nov | 10\u00a0000\u00a0000 | 2\u00a0800\u00a0000 |
Share issue, private placement, Dec | 50\u00a0000\u00a0000 | 14\u00a0000\u00a0000 |
1 January 2021 | 418\u00a0583\u00a0331 | 117\u00a0203\u00a0333 |
Capital issue in relation to acq. of Facil, Jan | 12\u00a0423\u00a0200 | 3\u00a0478\u00a0496 |
Capital issue in relation to acq. of Microsky, Feb | 3\u00a0499\u00a0998 | 979\u00a0999 |
Capital issue in relation to acq. of Innit, Mar | 5\u00a0606\u00a0400 | 1\u00a0569\u00a0792 |
Capital issue in relation to acq. of Qualisoft, May | 15\u00a0000\u00a0000 | 4\u00a0200\u00a0000 |
Capital issue in relation to acq. of Maksit, Aug | 5\u00a0000\u00a0000 | 1\u00a0400\u00a0000 |
Capital issue in relation to merger with Arribatec AS, Sep | 124\u00a0790\u00a0135 | 34\u00a0941\u00a0238 |
31 December 2021 | 584\u00a0903\u00a0064 | 163\u00a0772\u00a0858 |
Capital issue, April | 100\u00a0000\u00a0000 | 28\u00a0000\u00a0000 |
Share issue, repair offer, July | 3\u00a0625\u00a0153 | 1\u00a0015\u00a0043 |
Capital issue in relation to acq. of Integra, Nov | 2\u00a0045\u00a0000 | 572\u00a0600 |
31 December 2022 | 690\u00a0573\u00a0217 | 193\u00a0360\u00a0501 |
Capital issue, February | 3 | 1 |
Reverse share split (10:1), March | (621\u00a0515\u00a0898) | |
Capital issue, December | 514\u00a0884 | 1\u00a0441\u00a0675 |
31 December 2023 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
Each share has the same rights and has a par value of NOK 2.80 (0.28 prior to the reverse share split in March).
20 largest shareholders at 31 Dec 2023
Holding | Stake | |
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% |
TITAN VENTURE AS | 2\u00a0988\u00a0661 | 4.3% |
DALLAS ASSET MANAGEMENT AS | 2\u00a0467\u00a0200 | 3.5% |
JOAR AARENES | 2\u00a0411\u00a0185 | 3.5% |
ARRIBA INVEST AS | 2\u00a0290\u00a0500 | 3.3% |
SRK CONSULTING AS | 1\u00a0780\u00a0947 | 2.6% |
ERIK SKAAR OPDAL | 1\u00a0695\u00a0200 | 2.4% |
Nordnet Bank AB | 1\u00a0653\u00a0270 | 2.4% |
TRUDE HALVORSEN | 1\u00a0079\u00a0789 | 1.6% |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% |
EXCESSION AS | 900\u00a0000 | 1.3% |
DATUM AS | 854\u00a0291 | 1.2% |
MIDDELBOE AS | 739\u00a0662 | 1.1% |
KRISTIAN FALNES AS | 654\u00a0592 | 0.9% |
Danske Bank A/S | 602\u00a0331 | 0.9% |
LARS HUGO BRAADLAND OLSEN | 574\u00a0850 | 0.8% |
LCS AS | 551\u00a0801 | 0.8% |
JAN ARNE CHRISTENSEN | 524\u00a0675 | 0.8% |
NORDLYS TRADING AS | 450\u00a0000 | 0.6% |
VALSET INVEST AS | 450\u00a0000 | 0.6% |
Total 20 largest shareholders | 40\u00a0379\u00a0705 | 58.0% |
Other shareholders | 29\u00a0192\u00a0501 | 42.0% |
Total | 69\u00a0572\u00a0206 | 100.0% |
Shares held by related parties
Holding | Stake | ||
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% | Related to \u00d8ystein S. Spetalen, Member of the Board in Arribatec Group ASA |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% | Related to Martin Nes, Chairman of the Board in Arribatec Group ASA |
FINANCE RESOURCES GJ AS | 360\u00a0609 | 0.5% | Related to Geir Johansen, CEO of Arribatec Group ASA |
TERJE MJ\u00d8S HOLDING AS | 150\u00a0000 | 0.2% | Related to Terje Mj\u00f8s, Member of the Board in Arribatec Group ASA |
KJ\u00d8LVIK INVEST AS | 58\u00a0334 | 0.1% | Related to Ole-Jakob Kj\u00f8lvik, COO of Arribatec Group ASA |
SICUBI AS | 24\u00a0072 | 0.0% | Related to Bente Brocks, CFO (interim) of Arribatec Group ASA |
HELLEBUST, KRISTIN | 22\u00a0728 | 0.0% | Related to Kristin Hellebust, Member of the Board in Arribatec Group ASA |
Note 24\tShares
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
1 January 2020 | 16\u00a0077\u00a0403 | 16\u00a0077\u00a0403 |
Capital issue, Jan | 7\u00a0164\u00a0688 | 7\u00a0164\u00a0688 |
Capital issue, Mar | 41\u00a0666\u00a0666 | 41\u00a0666\u00a0666 |
Capital issue, Mar | 25\u00a0000\u00a0000 | 25\u00a0000\u00a0000 |
Capital decrease, Nov | (64\u00a0734\u00a0305) | |
New shares, Oct | 235\u00a0819\u00a0574 | 66\u00a0029\u00a0481 |
Share issue, repair offer, Nov | 32\u00a0855\u00a0000 | 9\u00a0199\u00a0400 |
Share issue, employee offer, Nov | 10\u00a0000\u00a0000 | 2\u00a0800\u00a0000 |
Share issue, private placement, Dec | 50\u00a0000\u00a0000 | 14\u00a0000\u00a0000 |
1 January 2021 | 418\u00a0583\u00a0331 | 117\u00a0203\u00a0333 |
Capital issue in relation to acq. of Facil, Jan | 12\u00a0423\u00a0200 | 3\u00a0478\u00a0496 |
Capital issue in relation to acq. of Microsky, Feb | 3\u00a0499\u00a0998 | 979\u00a0999 |
Capital issue in relation to acq. of Innit, Mar | 5\u00a0606\u00a0400 | 1\u00a0569\u00a0792 |
Capital issue in relation to acq. of Qualisoft, May | 15\u00a0000\u00a0000 | 4\u00a0200\u00a0000 |
Capital issue in relation to acq. of Maksit, Aug | 5\u00a0000\u00a0000 | 1\u00a0400\u00a0000 |
Capital issue in relation to merger with Arribatec AS, Sep | 124\u00a0790\u00a0135 | 34\u00a0941\u00a0238 |
31 December 2021 | 584\u00a0903\u00a0064 | 163\u00a0772\u00a0858 |
Capital issue, April | 100\u00a0000\u00a0000 | 28\u00a0000\u00a0000 |
Share issue, repair offer, July | 3\u00a0625\u00a0153 | 1\u00a0015\u00a0043 |
Capital issue in relation to acq. of Integra, Nov | 2\u00a0045\u00a0000 | 572\u00a0600 |
31 December 2022 | 690\u00a0573\u00a0217 | 193\u00a0360\u00a0501 |
Capital issue, February | 3 | 1 |
Reverse share split (10:1), March | (621\u00a0515\u00a0898) | |
Capital issue, December | 514\u00a0884 | 1\u00a0441\u00a0675 |
31 December 2023 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
Each share has the same rights and has a par value of NOK 2.80 (0.28 prior to the reverse share split in March).
20 largest shareholders at 31 Dec 2023
Holding | Stake | |
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% |
TITAN VENTURE AS | 2\u00a0988\u00a0661 | 4.3% |
DALLAS ASSET MANAGEMENT AS | 2\u00a0467\u00a0200 | 3.5% |
JOAR AARENES | 2\u00a0411\u00a0185 | 3.5% |
ARRIBA INVEST AS | 2\u00a0290\u00a0500 | 3.3% |
SRK CONSULTING AS | 1\u00a0780\u00a0947 | 2.6% |
ERIK SKAAR OPDAL | 1\u00a0695\u00a0200 | 2.4% |
Nordnet Bank AB | 1\u00a0653\u00a0270 | 2.4% |
TRUDE HALVORSEN | 1\u00a0079\u00a0789 | 1.6% |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% |
EXCESSION AS | 900\u00a0000 | 1.3% |
DATUM AS | 854\u00a0291 | 1.2% |
MIDDELBOE AS | 739\u00a0662 | 1.1% |
KRISTIAN FALNES AS | 654\u00a0592 | 0.9% |
Danske Bank A/S | 602\u00a0331 | 0.9% |
LARS HUGO BRAADLAND OLSEN | 574\u00a0850 | 0.8% |
LCS AS | 551\u00a0801 | 0.8% |
JAN ARNE CHRISTENSEN | 524\u00a0675 | 0.8% |
NORDLYS TRADING AS | 450\u00a0000 | 0.6% |
VALSET INVEST AS | 450\u00a0000 | 0.6% |
Total 20 largest shareholders | 40\u00a0379\u00a0705 | 58.0% |
Other shareholders | 29\u00a0192\u00a0501 | 42.0% |
Total | 69\u00a0572\u00a0206 | 100.0% |
Shares held by related parties
Holding | Stake | ||
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% | Related to \u00d8ystein S. Spetalen, Member of the Board in Arribatec Group ASA |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% | Related to Martin Nes, Chairman of the Board in Arribatec Group ASA |
FINANCE RESOURCES GJ AS | 360\u00a0609 | 0.5% | Related to Geir Johansen, CEO of Arribatec Group ASA |
TERJE MJ\u00d8S HOLDING AS | 150\u00a0000 | 0.2% | Related to Terje Mj\u00f8s, Member of the Board in Arribatec Group ASA |
KJ\u00d8LVIK INVEST AS | 58\u00a0334 | 0.1% | Related to Ole-Jakob Kj\u00f8lvik, COO of Arribatec Group ASA |
SICUBI AS | 24\u00a0072 | 0.0% | Related to Bente Brocks, CFO (interim) of Arribatec Group ASA |
HELLEBUST, KRISTIN | 22\u00a0728 | 0.0% | Related to Kristin Hellebust, Member of the Board in Arribatec Group ASA |
Note 25\tLong term incentive plan
During 2023, a long-term incentive plan in the form of a share-based remuneration program has been launched within Arribatec, with the intention to incentivize and retain key employees.
The program is an equity-settled option plan where one option gives the right to acquire one share in Arribatec Group ASA on the exercise date. There is no cash settlement for the employee at the grant date.
No shares have yet been vested through the program. The shares currently held by certain members of management or other employees were acquired at market conditions.
Measurement of fair values
The Black-Scholes-Merton Option Pricing Model is used for valuing the share options. The measure of the expected volatility in the option pricing model has been calculated as the annualized standard deviation of the continuously compounded rates of return on the share over a period of time.
The options are vested over a period of three years and the employee continues to be employed by the group.
Total costs and Social Security Provisions
NOK thousand | |
Total IFRS cost 2023 | 619\u00a0924 |
Total Social security provisions 2023 | 0 |
Total costs and Social Security Provisions
Instrument | Option |
Quantity 31.12.2023 (instruments) | 3\u00a0303\u00a0240 |
Quantity 31.12.2023 (shares) | 3\u00a0303\u00a0240 |
Contractual life\u200c1 | 5.00 |
Strike price\u200c1 | 5.25 |
Share price\u200c1 | 4.63 |
Expected lifetime\u200c1 | 3.00 |
Volatility\u200c1 | 65.66% |
Interest rate\u200c1 | 3\u00a0965% |
Dividend\u200c1 | 0.00 |
FV per instrument\u200c1 | 1.97 |
1Weighted average parameters at grant of instrument
Outstanding instruments Year End - Option
Quantity and weighted average prices | 01.01.2023 - 31.12.2023 | |
Activity | Number of instruments | Weighted Average Strike Price |
Outstanding OB (01.01.2023) | 0 | 0.00 |
Granted | 3\u00a0303\u00a0240 | 5.25 |
Exercised | 0 | 0.00 |
Released | 0 | 0.00 |
Adjusted | 0 | 0.00 |
Performance Adjusted | 0 | 0.00 |
Cancelled | 0 | 0.00 |
Terminated | 0 | 0.00 |
Expired | 0 | 0.00 |
Outstanding CB (31.12.2023) | 3\u00a0303\u00a0240 | 5.25 |
Vested CB | 0 | 0.00 |
Outstanding Instruments Overview
Outstanding Instruments | Vested Instruments | ||||
Strike price | Number of instruments | ||||
Weighted Average remaining contractual life | Weighted Average Strike Price | Vested instruments 31.12.2023 | Weighted Average Strike Price | ||
5.00 | 1\u00a0101\u00a0077 | 4.84 | 5.00 | 0.00 | 0.00 |
5.25 | 1\u00a0101\u00a0081 | 4.84 | 5.25 | 0.00 | 0.00 |
5.50 | 1\u00a0101\u00a0082 | 4.84 | 5.50 | 0.00 | 0.00 |
3\u00a0303\u00a0240 |
Note 26\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2023 | 31 Dec 2022 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2024 | 19\u00a0458 | 6\u00a0750 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 19 | 244 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 7\u00a0896 | 8\u00a0411 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 3\u00a0671 | 5\u00a0759 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 5\u00a0681 | 6\u00a0863 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0663 | 3\u00a0154 | |
Italian banks, ref above | Revolving credit facility | EUR | 1.0-4.75% | 2023 | 0 | 29 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 39\u00a0388 | 31\u00a0211 |
Credit facilities | Other borrowings | Total | |
Balance at 1 Jan 2022 | 9\u00a0030 | 28\u00a0394 | 37\u00a0425 |
Proceeds from loans and borrowings | 4\u00a0067 | 0 | 4\u00a0067 |
Repayment of loans and borrowings | (6\u00a0499) | (5\u00a0464) | (11\u00a0963) |
Total changes in financial cashflow | (2\u00a0432) | (5\u00a0464) | (7\u00a0896) |
Translation difference | 181 | 1\u00a0501 | 1\u00a0682 |
Balance at 1 Jan 2023 | 6\u00a0779 | 24\u00a0431 | 31\u00a0211 |
Proceeds from loans and borrowings | 19\u00a0686 | 0 | 19\u00a0686 |
Repayment of loans and borrowings | (7\u00a0009) | (6\u00a0173) | (13\u00a0183) |
Total changes in financial cashflow | 12\u00a0677 | (6\u00a0173) | 6\u00a0504 |
Translation difference | 2 | 1\u00a0672 | 1\u00a0674 |
Total Borrowings at end of period | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Interest bearing loans and other financial liabilities
The Group\u2019s debt and other financial liabilities are initially recognised at fair value, including transaction costs directly attributable to the transaction, and are subsequently measured at amortized cost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f35445": { "value": "Note 26\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2023 | 31 Dec 2022 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2024 | 19\u00a0458 | 6\u00a0750 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 19 | 244 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 7\u00a0896 | 8\u00a0411 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 3\u00a0671 | 5\u00a0759 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 5\u00a0681 | 6\u00a0863 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0663 | 3\u00a0154 | |
Italian banks, ref above | Revolving credit facility | EUR | 1.0-4.75% | 2023 | 0 | 29 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 39\u00a0388 | 31\u00a0211 |
Credit facilities | Other borrowings | Total | |
Balance at 1 Jan 2022 | 9\u00a0030 | 28\u00a0394 | 37\u00a0425 |
Proceeds from loans and borrowings | 4\u00a0067 | 0 | 4\u00a0067 |
Repayment of loans and borrowings | (6\u00a0499) | (5\u00a0464) | (11\u00a0963) |
Total changes in financial cashflow | (2\u00a0432) | (5\u00a0464) | (7\u00a0896) |
Translation difference | 181 | 1\u00a0501 | 1\u00a0682 |
Balance at 1 Jan 2023 | 6\u00a0779 | 24\u00a0431 | 31\u00a0211 |
Proceeds from loans and borrowings | 19\u00a0686 | 0 | 19\u00a0686 |
Repayment of loans and borrowings | (7\u00a0009) | (6\u00a0173) | (13\u00a0183) |
Total changes in financial cashflow | 12\u00a0677 | (6\u00a0173) | 6\u00a0504 |
Translation difference | 2 | 1\u00a0672 | 1\u00a0674 |
Total Borrowings at end of period | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Interest bearing loans and other financial liabilities
The Group\u2019s debt and other financial liabilities are initially recognised at fair value, including transaction costs directly attributable to the transaction, and are subsequently measured at amortized cost.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f35446": { "value": "Note 26\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2023 | 31 Dec 2022 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2024 | 19\u00a0458 | 6\u00a0750 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 19 | 244 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 7\u00a0896 | 8\u00a0411 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 3\u00a0671 | 5\u00a0759 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 5\u00a0681 | 6\u00a0863 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0663 | 3\u00a0154 | |
Italian banks, ref above | Revolving credit facility | EUR | 1.0-4.75% | 2023 | 0 | 29 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 39\u00a0388 | 31\u00a0211 |
Credit facilities | Other borrowings | Total | |
Balance at 1 Jan 2022 | 9\u00a0030 | 28\u00a0394 | 37\u00a0425 |
Proceeds from loans and borrowings | 4\u00a0067 | 0 | 4\u00a0067 |
Repayment of loans and borrowings | (6\u00a0499) | (5\u00a0464) | (11\u00a0963) |
Total changes in financial cashflow | (2\u00a0432) | (5\u00a0464) | (7\u00a0896) |
Translation difference | 181 | 1\u00a0501 | 1\u00a0682 |
Balance at 1 Jan 2023 | 6\u00a0779 | 24\u00a0431 | 31\u00a0211 |
Proceeds from loans and borrowings | 19\u00a0686 | 0 | 19\u00a0686 |
Repayment of loans and borrowings | (7\u00a0009) | (6\u00a0173) | (13\u00a0183) |
Total changes in financial cashflow | 12\u00a0677 | (6\u00a0173) | 6\u00a0504 |
Translation difference | 2 | 1\u00a0672 | 1\u00a0674 |
Total Borrowings at end of period | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Interest bearing loans and other financial liabilities
The Group\u2019s debt and other financial liabilities are initially recognised at fair value, including transaction costs directly attributable to the transaction, and are subsequently measured at amortized cost.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f35447": { "value": "Note 26\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2023 | 31 Dec 2022 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2024 | 19\u00a0458 | 6\u00a0750 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 19 | 244 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 7\u00a0896 | 8\u00a0411 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 3\u00a0671 | 5\u00a0759 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 5\u00a0681 | 6\u00a0863 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0663 | 3\u00a0154 | |
Italian banks, ref above | Revolving credit facility | EUR | 1.0-4.75% | 2023 | 0 | 29 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 39\u00a0388 | 31\u00a0211 |
Credit facilities | Other borrowings | Total | |
Balance at 1 Jan 2022 | 9\u00a0030 | 28\u00a0394 | 37\u00a0425 |
Proceeds from loans and borrowings | 4\u00a0067 | 0 | 4\u00a0067 |
Repayment of loans and borrowings | (6\u00a0499) | (5\u00a0464) | (11\u00a0963) |
Total changes in financial cashflow | (2\u00a0432) | (5\u00a0464) | (7\u00a0896) |
Translation difference | 181 | 1\u00a0501 | 1\u00a0682 |
Balance at 1 Jan 2023 | 6\u00a0779 | 24\u00a0431 | 31\u00a0211 |
Proceeds from loans and borrowings | 19\u00a0686 | 0 | 19\u00a0686 |
Repayment of loans and borrowings | (7\u00a0009) | (6\u00a0173) | (13\u00a0183) |
Total changes in financial cashflow | 12\u00a0677 | (6\u00a0173) | 6\u00a0504 |
Translation difference | 2 | 1\u00a0672 | 1\u00a0674 |
Total Borrowings at end of period | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Interest bearing loans and other financial liabilities
The Group\u2019s debt and other financial liabilities are initially recognised at fair value, including transaction costs directly attributable to the transaction, and are subsequently measured at amortized cost.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReconciliationOfLiabilitiesArisingFromFinancingActivitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f35448": { "value": "Note 26\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2023 | 31 Dec 2022 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2024 | 19\u00a0458 | 6\u00a0750 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 19 | 244 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 7\u00a0896 | 8\u00a0411 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 3\u00a0671 | 5\u00a0759 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 5\u00a0681 | 6\u00a0863 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0663 | 3\u00a0154 | |
Italian banks, ref above | Revolving credit facility | EUR | 1.0-4.75% | 2023 | 0 | 29 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 39\u00a0388 | 31\u00a0211 |
Credit facilities | Other borrowings | Total | |
Balance at 1 Jan 2022 | 9\u00a0030 | 28\u00a0394 | 37\u00a0425 |
Proceeds from loans and borrowings | 4\u00a0067 | 0 | 4\u00a0067 |
Repayment of loans and borrowings | (6\u00a0499) | (5\u00a0464) | (11\u00a0963) |
Total changes in financial cashflow | (2\u00a0432) | (5\u00a0464) | (7\u00a0896) |
Translation difference | 181 | 1\u00a0501 | 1\u00a0682 |
Balance at 1 Jan 2023 | 6\u00a0779 | 24\u00a0431 | 31\u00a0211 |
Proceeds from loans and borrowings | 19\u00a0686 | 0 | 19\u00a0686 |
Repayment of loans and borrowings | (7\u00a0009) | (6\u00a0173) | (13\u00a0183) |
Total changes in financial cashflow | 12\u00a0677 | (6\u00a0173) | 6\u00a0504 |
Translation difference | 2 | 1\u00a0672 | 1\u00a0674 |
Total Borrowings at end of period | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Interest bearing loans and other financial liabilities
The Group\u2019s debt and other financial liabilities are initially recognised at fair value, including transaction costs directly attributable to the transaction, and are subsequently measured at amortized cost.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f36192": { "value": "Note 28\tProvisions
NOK thousand | 2023 | 2022 |
Severance indemnity funds in Italy | 8\u00a0145 | 10\u00a0364 |
Other provisions | 2\u00a0540 | 3\u00a0838 |
Total provision | 10\u00a0685 | 14\u00a0202 |
Severance funds in Italy relates to a monthly accrual for severance pay for all employees. The funds are paid to the employee when they leave the company. Per 31.12.2023, all funds estimated as long term (2-4+ years).
Provisions and contingent liabilities
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Restructuring provisions are recognised only when the recognition criteria for provisions are fulfilled. The Group has a constructive obligation when a detailed formal plan identifies the activities concerned, the location and number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline. Furthermore, the employees affected have been notified of the plan\u2019s main features.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f36193": { "value": "Note 28\tProvisions
NOK thousand | 2023 | 2022 |
Severance indemnity funds in Italy | 8\u00a0145 | 10\u00a0364 |
Other provisions | 2\u00a0540 | 3\u00a0838 |
Total provision | 10\u00a0685 | 14\u00a0202 |
Severance funds in Italy relates to a monthly accrual for severance pay for all employees. The funds are paid to the employee when they leave the company. Per 31.12.2023, all funds estimated as long term (2-4+ years).
Provisions and contingent liabilities
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Restructuring provisions are recognised only when the recognition criteria for provisions are fulfilled. The Group has a constructive obligation when a detailed formal plan identifies the activities concerned, the location and number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline. Furthermore, the employees affected have been notified of the plan\u2019s main features.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f36289": { "value": "Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Restructuring provisions are recognised only when the recognition criteria for provisions are fulfilled. The Group has a constructive obligation when a detailed formal plan identifies the activities concerned, the location and number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline. Furthermore, the employees affected have been notified of the plan\u2019s main features.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f36290": { "value": "Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Restructuring provisions are recognised only when the recognition criteria for provisions are fulfilled. The Group has a constructive obligation when a detailed formal plan identifies the activities concerned, the location and number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline. Furthermore, the employees affected have been notified of the plan\u2019s main features.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f36397": { "value": "Note 29\tOther current liabilities
NOK thousand | 2023 | 2022 |
Employer tax and employee withholding tax | 24\u00a0302 | 22\u00a0700 |
Accrued holiday payments and bonuses | 30\u00a0640 | 31\u00a0987 |
VAT liabilities | 9\u00a0632 | 10\u00a0121 |
Remaining part of acq.price, Integra | 7\u00a0441 | 8\u00a0569 |
Other short term liabilities | 11\u00a0855 | 10\u00a0591 |
Total other current liabilities | 83\u00a0869 | 83\u00a0969 |
Trade and other payables
Accounts receivable and other receivables are initially recognized at the transaction price and are subse-quently carried at recognized cost, less provision for expected credit losses. For Arribatec, the main part of accounts payable consists of annual fees for the following year from software providers.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f36398": { "value": "Note 29\tOther current liabilities
NOK thousand | 2023 | 2022 |
Employer tax and employee withholding tax | 24\u00a0302 | 22\u00a0700 |
Accrued holiday payments and bonuses | 30\u00a0640 | 31\u00a0987 |
VAT liabilities | 9\u00a0632 | 10\u00a0121 |
Remaining part of acq.price, Integra | 7\u00a0441 | 8\u00a0569 |
Other short term liabilities | 11\u00a0855 | 10\u00a0591 |
Total other current liabilities | 83\u00a0869 | 83\u00a0969 |
Trade and other payables
Accounts receivable and other receivables are initially recognized at the transaction price and are subse-quently carried at recognized cost, less provision for expected credit losses. For Arribatec, the main part of accounts payable consists of annual fees for the following year from software providers.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f36399": { "value": "Note 29\tOther current liabilities
NOK thousand | 2023 | 2022 |
Employer tax and employee withholding tax | 24\u00a0302 | 22\u00a0700 |
Accrued holiday payments and bonuses | 30\u00a0640 | 31\u00a0987 |
VAT liabilities | 9\u00a0632 | 10\u00a0121 |
Remaining part of acq.price, Integra | 7\u00a0441 | 8\u00a0569 |
Other short term liabilities | 11\u00a0855 | 10\u00a0591 |
Total other current liabilities | 83\u00a0869 | 83\u00a0969 |
Trade and other payables
Accounts receivable and other receivables are initially recognized at the transaction price and are subse-quently carried at recognized cost, less provision for expected credit losses. For Arribatec, the main part of accounts payable consists of annual fees for the following year from software providers.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f36611": { "value": "Note 30\tTransactions with related parties
During 2022 and 2023, rent for office in UK is paid to MDB & Sons Ltd, a company related to the CEO of Arribatec UK Ltd (former Integra Associated Ltd).
NOK thousand | 2023 | 2022 |
Transactions with related parties | ||
MDB & Sons Ltd - office rental, Leicester | 481 | 402 |
Total Related parties transactions | 481 | 402 |
Note 30\tTransactions with related parties
During 2022 and 2023, rent for office in UK is paid to MDB & Sons Ltd, a company related to the CEO of Arribatec UK Ltd (former Integra Associated Ltd).
NOK thousand | 2023 | 2022 |
Transactions with related parties | ||
MDB & Sons Ltd - office rental, Leicester | 481 | 402 |
Total Related parties transactions | 481 | 402 |
Note 31\tPledged assets
The Group have no pledged assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f36715": { "value": "Note 32\tSubsequent events
There have been no subsequent events since 31.12.2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } } } }