Notes to the financial statements
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\u2014ticker ARR.
The company's and its subsidiaries (the Group) principal activities are software and consulting. With a customer-centric engagement model, combined with a deep system, integration, and domain competence, Arribatec builds long-term strategic partnerships with a broad customer base. Arribatec supports over 1 700 entities across diverse countries and industries, operating from 17 offices worldwide and serving both the private and public sectors. The activities are further described in Note 5.
The Annual Report and Parent Company Report for Arribatec Group ASA (publ) was adopted by the Board of Directors on 25 April 2025 and will be submitted for approval to the Annual General Meeting on 28.05.2025.
Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries as \u201cthe Group\u201d, have been prepared in accordance with IFRS Accounting Standards as adopted by the EU, relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated financial accounts are presented in NOK.
All figures presented in this annual report have been rounded and consequently, the sum of individual figures can deviate from the total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. In 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. In an extraordinary general meeting held 2 December 2024, a rights issue of up to 350 million new shares with preferential subscription rights for existing shareholders to raise gross proceeds of up to NOK 35 million and an additional Director offering of 60 million new shares at NOK 6 million were approved. The share issue took place in February 2025. Furthermore, in March 2025, Arribatec announced that they completed the divestment of both the Arribatec Hospitality and the Arribatec Marine segments at an equity valuation of NOK 12.5 million and NOK 24.6 million respectively. Together this supports the going concern assumption.
Note 3\tChanges in Accounting Policies and disclosures for the 2024 calendar year or thereafter
Arribatec has not implemented any new accounting standards or otherwise made any changes to accounting policies during 2024.
In 2024, the International Accounting Standards Board (IASB) introduced two significant standards \u2013 IFRS 18 Presentation and Disclosure in Financial Statements, and IFRS 19 Subsidiaries without Public Accountability: Disclosures \u2013 which are effective in 2027.
IFRS 18 will have an impact on the presentation of Arribatec Group accounts but as per today, the extent is currently not concluded.
Note 4\tRevenue
Consulting services
Consulting services mainly come from time and material projects. Revenue is recognised as revenue as they are delivered to the customer every month.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the company\u2019s obligations to provide those rights. IFRS 15 distinguishes whether the license provides a \u201dright-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 analysed 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 it is 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 servers), 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 license 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 revenue when the customer has received legal title and physical possession and has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec licenses cloud-based subscription licenses (\u201cright-to-access\u201d), the licenses are 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 perfor-mance 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 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 accordingly recognised over time as the installation and integration are performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premise 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 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 geographic information, revenue has been based on the geographic location of the legal entity. The table shows external revenue.
Full year 2024
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 166\u00a0578 | 199\u00a0758 | 35\u00a0190 | 401\u00a0526 |
Business services | 75\u00a0554 | 56\u00a0063 | 3\u00a0427 | 135\u00a0044 |
EA & BPM | 66\u00a0515 | 32\u00a0147 | 5\u00a0503 | 104\u00a0165 |
Cloud | 11\u00a0577 | 104\u00a0862 | 14\u00a0224 | 130\u00a0663 |
Hospitality | 12\u00a0932 | 6\u00a0686 | 12\u00a0035 | 31\u00a0653 |
Corporate | 0 | 0 | 0 | 0 |
Continental Europe | 61\u00a0365 | 21\u00a0814 | 3\u00a0224 | 86\u00a0403 |
Business services | 40\u00a0636 | 13\u00a0197 | 614 | 54\u00a0447 |
Marine | 20\u00a0729 | 8\u00a0617 | 2\u00a0610 | 31\u00a0956 |
UK | 43\u00a0371 | 23\u00a0105 | 1\u00a0780 | 68\u00a0255 |
Business services | 43\u00a0323 | 23\u00a0105 | 1\u00a0780 | 68\u00a0208 |
Cloud | 48 | 0 | 0 | 48 |
Americas | 11\u00a0971 | 6\u00a0578 | 0 | 18\u00a0549 |
Business services | 7\u00a0859 | 0 | 0 | 7\u00a0859 |
Marine | 4\u00a0112 | 6\u00a0578 | 0 | 10\u00a0690 |
Total revenue | 283\u00a0285 | 251\u00a0255 | 40\u00a0193 | 574\u00a0733 |
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 |
Note 5\tSegment
The market for Arribatec\u2019s Software and services is global. The chief decision maker will follow up on revenue and profitability on a global basis, segmented into the Business Areas (BAs). 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 Note 4.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to the tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations, and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customising, maintaining, and supporting the entire business landscape, with ERP as the core engine. We integrate it with other marked 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 sectors.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk, and GDPR. Arribatec Cloud also 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 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.
2024
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 273\u00a0492 | 106\u00a0346 | 142\u00a0308 | 31\u00a0653 | 42\u00a0646 | 453 | (22\u00a0165) | 574\u00a0733 |
Materials, software and services | (43\u00a0149) | (28\u00a0293) | (73\u00a0572) | (16\u00a0687) | (5\u00a0088) | (2\u00a0080) | 22\u00a0185 | (146\u00a0684) |
Gross margin | 230\u00a0343 | 78\u00a0052 | 68\u00a0736 | 14\u00a0967 | 37\u00a0558 | (1\u00a0628) | 20 | 428\u00a0048 |
Salary and personnel costs | (186\u00a0829) | (63\u00a0697) | (50\u00a0468) | (14\u00a0873) | (26\u00a0437) | (26\u00a0967) | (0) | (369\u00a0272) |
Other operating expenses | (20\u00a0938) | (7\u00a0158) | (8\u00a0972) | (6\u00a0810) | (3\u00a0968) | (26\u00a0136) | (20) | (74\u00a0002) |
Total operating expenses | (207\u00a0768) | (70\u00a0855) | (59\u00a0439) | (21\u00a0683) | (30\u00a0404) | (53\u00a0103) | (20) | (443\u00a0273) |
EBITDA | 22\u00a0575 | 7\u00a0197 | 9\u00a0297 | (6\u00a0716) | 7\u00a0154 | (54\u00a0730) | 0 | (15\u00a0225) |
Depreciation, amortisarion and impairment | (15\u00a0533) | (7\u00a0240) | (11\u00a0078) | (26\u00a0602) | (7\u00a0330) | (2\u00a0241) | 0 | (70\u00a0025) |
EBIT | 7\u00a0042 | (43) | (1\u00a0781) | (33\u00a0319) | (177) | (56\u00a0971) | 0 | (85\u00a0249) |
Gross margin % | 84.2% | 73.4% | 48.3% | 47.3% | 88.1% | na | na | 74.5% |
EBITDA % | 8.3% | 6.8% | 6.5% | (21.2%) | 16.8% | na | na | (2.6%) |
EBIT % | 2.6% | 0.0% | (1.3%) | (105.3%) | (0.4%) | na | na | (14.8%) |
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%) |
Note 6\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the cost occur.
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.
NOK thousand | 2024 | 2023 |
Hired consultans | (27\u00a0269) | (40\u00a0302) |
Hardware for resale | (19\u00a0945) | (8\u00a0999) |
Software for resale | (86\u00a0506) | (66\u00a0896) |
Other | (12\u00a0963) | (16\u00a0475) |
Total materials, software and services | (146\u00a0684) | (132\u00a0673) |
Note 7\tPersonnel
NOK thousand | 2024 | 2023 |
Salaries | (282\u00a0689) | (271\u00a0802) |
Social security tax | (48\u00a0347) | (42\u00a0480) |
Bonuses | (1\u00a0959) | (6\u00a0752) |
Share option cost (Note27) | (3\u00a0155) | (620) |
Pension costs defined contribution (Note29) | (22\u00a0037) | (20\u00a0105) |
Capitalised work preformed | 7\u00a0390 | 12\u00a0750 |
Other personnel cost | (18\u00a0475) | (17\u00a0600) |
Total salaries and personnel expense | (369\u00a0272) | (346\u00a0608) |
Average number of FTEs
2024 | 2023 | |
Number os FTEs, start of year | 329 | 374 |
Number os FTEs, end of year | 314 | 329 |
Average number of FTEs | 321 | 352 |
Gender split, end of year | ||
Male | 220 | 215 |
Female | 94 | 114 |
Number of FTEs, end of year, per country
2024 | 2023 | |
Cyprus | 3 | 3 |
Denmark | 1 | 1 |
France | 4 | 4 |
Italy | 28 | 28 |
Norway | 202 | 208 |
Singapore | 1 | 1 |
Spain | 24 | 25 |
Sweden | 15 | 16 |
United Kingdom | 33 | 33 |
USA | 3 | 11 |
Total number of FTEs | 314 | 329 |
Pension obligations
The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 27for further description. The group only has defined contribution retire-ment plans.
Note 8\tKey management
The Group Management consists of the Group Directors. Group Directors are the CEO, COO, CFO, CPOO and CCO, 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. The amounts presented are the total part of the salary in the period, 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 the remuneration report for details on the bonus and share option program concerning management.
Management remuneration 2024
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 | 6 | 207 | 104 | 4\u00a0317 |
Ole Jakob Kj\u00f8lvik - COO (until Aug-24) | 0 | 0 | 1\u00a0072 | 0 | 10 | 104 | 69 | 1\u00a0254 |
Bente Brocks - CFO (interim) | 0 | 0 | 1\u00a0784 | 0 | 6 | 186 | 104 | 2\u00a0081 |
Erik Sundet - Group IT director (50% mgmt) | 0 | 0 | 1\u00a0252 | 0 | 24 | 155 | 88 | 1\u00a0519 |
P\u00e5l Stueflotten - CCO | 0 | 0 | 1\u00a0200 | 433 | 49 | 155 | 104 | 1\u00a0942 |
Solfrid Bu\u00f8 - CPOO | 0 | 0 | 1\u00a0500 | 0 | 6 | 155 | 104 | 1\u00a0765 |
Management total | 0 | 0 | 10\u00a0807 | 433 | 102 | 963 | 574 | 12\u00a0879 |
Members of the Board | ||||||||
H\u00e5kon Reistad Fure - Chairman (from Dec-24) | 24 | 3 | 0 | 0 | 0 | 0 | 0 | 28 |
Martin Nes - Chairman (until Nov-24) | 252 | 37 | 0 | 0 | 0 | 0 | 0 | 289 |
Henrik Christensen - Member (from Dec-24) | 20 | 0 | 0 | 0 | 0 | 0 | 0 | 20 |
\u00d8ystein S. Spetalen - Member (until Nov-24) | 208 | 0 | 0 | 0 | 0 | 0 | 0 | 208 |
Kristin Hellebust - Member | 226 | 35 | 0 | 0 | 0 | 0 | 0 | 261 |
Linn Katrine H\u00f8ie - Member | 228 | 0 | 0 | 0 | 0 | 0 | 0 | 228 |
Terje Mj\u00f8s - Member1 | 169 | 35 | 0 | 0 | 0 | 0 | 0 | 204 |
Members of the Board total | 1\u00a0126 | 110 | 0 | 0 | 0 | 0 | 0 | 1\u00a0236 |
Total salaries and personnel expense | 1\u00a0126 | 110 | 10\u00a0807 | 433 | 102 | 963 | 574 | 14\u00a0115 |
1Received NOK 57.5k less than he should in 2024, this is compensated in 2025
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 (until 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 |
The following remuneration has been made to the members of the nomination committee during the year:
NOK thousand | 2024 | 2023 |
Nomination committee | ||
Espen Lundaas - Chairman | 20 | |
\u00d8ystein Tvenge - Member1 | 0 | |
Total | 20 |
1Compensation for 2021-2024 paid 2024
Note 9\tOther operating expenses
NOK thousand | 2024 | 2023 |
Marketing cost | (3\u00a0817) | (4\u00a0966) |
Rental and leasing cost1 | (6\u00a0904) | (8\u00a0145) |
Travel cost | (7\u00a0895) | (11\u00a0348) |
Fees for external services | (20\u00a0525) | (18\u00a0784) |
IT and communication cost | (16\u00a0973) | (16\u00a0992) |
Restructuring cost | (10\u00a0142) | 0 |
Other operating cost2 | (7\u00a0745) | (9\u00a0001) |
Total operating expenses | (74\u00a0002) | (69\u00a0236) |
1Includes common costs related to premises, such as electricity, cleaning, moving costs and contracts of lower value and/or shorter than 12 months. There are no leasing contracts with lower value and/or short than 12 months.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
On 27 September 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. Following this, the Company underwent a restructuring initiative with a one-time restructuring cost of NOK 10.1m in Q4-24, of which 7.8m relates to cost with cash effect in 2025. A total of 25 FTEs were made redundant, with the savings coming into effect from Q2-2025. Restructuring provisions are recognised only when the Group has a constructive obligation, which is when there is a detailed formal plan that identifies the business or part of the business concerned, the location and number of employees affected, the detailed estimate of the associated costs, and the timeline and the employees affected have been notified of the plan\u2019s main features.
NOK thousand | 2024 | 2023 |
Specification of auditor\u2019s fee | ||
Statutory audit | (3\u00a0337) | (1\u00a0224) |
Other assurance services | (55) | (11) |
Other non-assurance services | (207) | (132) |
Total | (3\u00a0598) | (1\u00a0366) |
Note 10\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.
2024
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2024 | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Additions | 1\u00a0526 | 0 | 55 | 1\u00a0581 |
Disposals | (2\u00a0132) | (615) | (255) | (3\u00a0002) |
Translation difference | 586 | 187 | 39 | 813 |
Cost, end of period | 18\u00a0353 | 4\u00a0529 | 1\u00a0661 | 24\u00a0543 |
Accumulated depreciation at 1 Jan 2024 | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Depreciation during the year | (2\u00a0191) | (854) | (159) | (3\u00a0204) |
Disposals | 2\u00a0132 | 615 | 255 | 3\u00a0002 |
Translation difference | (539) | (115) | (29) | (683) |
Accumulated depreciation, end of period | (15\u00a0539) | (3\u00a0114) | (947) | (19\u00a0599) |
Carrying amount at 31 Dec 2024 | 2\u00a0815 | 1\u00a0415 | 714 | 4\u00a0944 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
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 |
Note 11\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 contracts with less than twelve months durtion) and leases for low-value assets, these are expensed in P&L as they occur.
Leases that fulfil the criteria are recognised in the balance 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 terminate 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 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 |
Right-of-use assets per 1 Jan 2024 | 22\u00a0665 | 620 | 1\u00a0299 | 3\u00a0856 | 28\u00a0442 |
Addition of right-of-use assets | 5\u00a0108 | 1\u00a0142 | 7\u00a0348 | 5\u00a0048 | 18\u00a0646 |
Depreciation in the period | (11\u00a0543) | (553) | (3\u00a0471) | (2\u00a0402) | (17\u00a0969) |
Disposals | (109) | 0 | (107) | (2\u00a0586) | (2\u00a0802) |
Translation difference | 207 | 39 | 0 | 0 | 246 |
Carrying amount of right-of-use assets, end of period | 16\u00a0328 | 1\u00a0248 | 5\u00a0069 | 3\u00a0917 | 26\u00a0563 |
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 2024 | 31 Dec 2023 |
Undiscounted lease liabilities and maturity of cash outflow | ||
< 1 year | 15\u00a0180 | 13\u00a0609 |
1-2 years | 7\u00a0966 | 9\u00a0421 |
2-3 years | 3\u00a0639 | 5\u00a0344 |
3-4 years | 1\u00a0748 | 2\u00a0064 |
4-5 years | 620 | 546 |
Total undiscounted lease liabilities, end of period | 29\u00a0153 | 30\u00a0984 |
Discount element | (1\u00a0463) | (1\u00a0239) |
Total discounted lease liabilities, end of period | 27\u00a0690 | 29\u00a0745 |
NOK thousand | 31 Dec 2024 | 31 Dec 2023 |
Total lease liabilities, end of period | 27\u00a0690 | 29\u00a0745 |
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 13for interest expenses related to leasing contracts.
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 14\tTax
Arribatec accounts 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 recognises 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, recognising them to the extent of probable future taxable profit availability or utilisation of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognised 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 the calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
Deferred tax assets
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Tax losses carried forward, not recognised, mainly relates to companies abroad and Arribatec Hospitality, while recognised deferred tax assets relates to proven profit-making entities within the Norwegian tax jurisdiction. There is a clear expectation that the Norwegian entities will deliver positive taxable results and be able to utilise the deferred tax losses carried forward.
NOK thousand | 2024 | 2023 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 57 | 2\u00a0597 |
Correction previous year - Norway | 31 | (7) |
Current Income Tax - Other countries | 62 | 2\u00a0762 |
Correction previous year - other countries | (62) | (59) |
Deferred tax | ||
Change in deferred taxes - Norway | (8\u00a0685) | (10\u00a0392) |
Change in deferred taxes - Other countries | (18) | (1\u00a0900) |
Tax income recorded in consolidated statement of Profit & Loss | (8\u00a0616) | (6\u00a0998) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (91\u00a0329) | (30\u00a0050) |
Adjustment of current income tax of previous years | (27) | 3 |
Temporary differences | (14\u00a0930) | (2\u00a0336) |
Non deductible expenses | 8\u00a0504 | 1\u00a0113 |
Non-taxable income | (2\u00a0958) | (367) |
Tax base | (100\u00a0740) | (31\u00a0637) |
NOK thousand | 2024 | 2023 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 22\u00a0163 | 6\u00a0960 |
Tax previous year | (30) | (65) |
Group contribution with tax effect (tax payable effect) | (1\u00a0738) | (2\u00a0576) |
Group contribution with tax effect (deferred tax effect) | 1\u00a0738 | 2\u00a0576 |
Changes in recognised deferred taxes | (8\u00a0704) | (12\u00a0292) |
Effect from previously unrecognised deferred taxes | 0 | (1\u00a0607) |
Different tax rates applied in foreign jurisdictions | (22\u00a0045) | 6 |
Tax income at effective tax rate | (8\u00a0616) | (6\u00a0998) |
Effective tax rate | 9.4% | 23.3% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 47\u00a0007 | 23\u00a0756 |
Property, plant and equipment | 143 | 79 |
Intangible assets | 52 | 1\u00a0492 |
Receivable | (241) | (123) |
Other provisions | 1\u00a0322 | 316 |
Leases | 150 | 105 |
Deferred tax on intangible assets from business combinations | 2\u00a0654 | 3\u00a0141 |
Tax losses carried forward, not recognised | (31\u00a0322) | (17\u00a0556) |
Deferred taxes, net | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, recognised | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, not recognised | 31\u00a0322 | 17\u00a0556 |
NOK thousand | 2024 | 2023 |
Reconciliation to balance sheet | ||
Deferred tax assets | 25\u00a0388 | 18\u00a0998 |
Deferred tax liabilities | (5\u00a0623) | (7\u00a0786) |
Net Deferred tax assets (liabilities) | 19\u00a0764 | 11\u00a0212 |
Note 15\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 |
31 December 2024 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
There was no change in the number of shares or share capital during 2024.
Diluted EPS amounts are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be Issued on the 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 | 2024 | 2023 |
Net profit/(loss) to equity holders | (82\u00a0712\u00a0957) | (23\u00a0052\u00a0518) |
Total | (82\u00a0712\u00a0957) | (23\u00a0052\u00a0518) |
Number of shares (in thousands) | ||
Weighted average number of ordinary shares | 69\u00a0572\u00a0206 | 69\u00a0057\u00a0322 |
Effects of dilution, weighted average | 3\u00a0400\u00a0584 | 371\u00a0097 |
Weighted average number of shares, adjusted for effects of dilution | 72\u00a0972\u00a0790 | 69\u00a0428\u00a0419 |
Basic earnings per share | (1.19) | (0.33) |
Diluted earnings per share1 | (1.19) | (0.33) |
1If Net loss, EPS per Basic and Diliuted share will be equal
In 2023, only part of the original share consideration is included as dilution. Part of the share consideration for Integra was still outstanding. This was settled during 2024.
Effects of dilution
NOK | 2024 | 2023 |
Share consideration outstanding Integra | 0 | 371\u00a0097 |
Share option 2023 Sept program | 3\u00a0148\u00a0995 | 0 |
Share cons. BoD | 251\u00a0589 | 0 |
Note 16\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 184.3m as of 31 December 2024 (NOK 206.5m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 11.3 million as per 31 December 2024 (NOK 31.8m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortised, ref Note12.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually. An impairment related to goodwill on CGU Hospitality has been recognised with NOK 24.4 million.
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.
2024
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 0 | 66\u00a0361 | 158\u00a0568 |
UK | 0 | 20\u00a0959 | 0 | 0 | 0 | 20\u00a0959 |
Italy | 0 | 0 | 4\u00a0731 | 0 | 0 | 4\u00a0731 |
Total | 56\u00a0622 | 56\u00a0544 | 4\u00a0731 | 0 | 66\u00a0361 | 184\u00a0258 |
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 |
Cash flow projections and assumptions
A five-year forecast for discounted cash flows plus a 2.0% terminal value growth rate was used to determine the 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 future cash flows is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents manage-ment\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 sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2024 | 2023 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.82% | 4.48% | 3.47% | 3.0% | 4.25% | 3.70% |
Market risk premium | 5.0% | 5.0% | 5.0% | 7.0% | 7.0% | 7.0% |
Equity Beta | 1.01 | 1.01 | 1.01 | 1.61 | 1.61 | 1.61 |
Small cap | 5.0% | 5.0% | 5.0% | 3.0% | 3.0% | 3.0% |
Cost of equity | 13.9% | 14.5% | 13.5% | 9.4% | 9.4% | 9.4% |
Credit spread | 2.75% | 2.75% | 2.75% | 3.00% | 3.00% | 3.00% |
After tax cost debt | 6.57% | 7.23% | 6.22% | 4.80% | 4.80% | 4.80% |
Equity weight | 88.9% | 88.9% | 88.9% | 90.1% | 90.1% | 90.1% |
WACC (pre tax) | 13.1% | 13.7% | 12.7% | 15.4% | 14.9% | 17.0% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2025 and estimates from 2026-2028 and a terminal growth rate of 2%. The average growth rates in the estimated period 2025-2028 for each Business Area are:
2024 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 6% | 6% | 5% | (13%) | 5% |
Average Gross profit margin | 5.8% | 6.2% | 3.6% | (15.7%) | 3.9% |
Average EBITDA margin | 6% | 5% | 13% | 27% | 11% |
Compared to the same assumptions in 2023 we see a decline in the growth assumptions. This is explained by Arribatec's focus on profitability first and using modest growth assumptions as the basis for impairment tests. The management's evaluation of future growth is grounded in an analysis that combines historical data, strategic planning, market, strategic focus, initiatives and financial modeling.
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% |
Sensitivity
On 31 December 2024, 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 17\tBusiness Combinations
During 2023 or 2024, Arribatec did not acquire any shares in compa-nies. However, an earn-out related to the acquisition of the subsidiary Arribatec UK (formerly Integra) was setteled in Jnauary 2024. During 2021, Arribatec acquired shares in the companies mentioned below and consequently controls the subsidiaries from the date of acquisi-tion. 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 Note16.
Note 18\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 | Dormant |
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 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 19\tOther non-current assets
NOK thousand | 2024 | 2023 |
Investment in shares | 60 | 60 |
Deposits | 4\u00a0542 | 3\u00a0929 |
Total other non-current assets | 4\u00a0602 | 3\u00a0989 |
Deposits are mainly deposits in relation to office rental agreements.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 21\tAccount receivable
NOK thousand | Current | 0-30 days | 31-60 days | 61-90 days | 90+days | Total | whereof estimated credit losses |
Ageing, Accounts receivable | |||||||
2024 | 48\u00a0628 | 16\u00a0571 | 5\u00a0339 | 3\u00a0899 | 2\u00a0268 | 76\u00a0705 | (2\u00a0060) |
2023 | 45\u00a0192 | 33\u00a0769 | 5\u00a0533 | 2\u00a0795 | 3\u00a0608 | 90\u00a0898 | (4\u00a0230) |
Provision for Expected Credit Losses (ECL) is included with NOK 2.1m (NOK 4.2m). The provision is based on a valuation per subsidiary at year-end based on general assumptions and historical experience of low credit losses, as well as agreements with customers and payments made in the next year. Accounts receivables are non-in-terest bearing.
Expensed credit loss in 2024 was NOK 2.3m (0.1m), whereof NOK 2.1m is bad debt expensed in relation to large customer bank-ruptcy.
Credit risk
Credit risks are the risks that a counterpart will not meet its obliga-tions 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 receiv-ables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pay for software and services under a software-as-a-service (SaaS) arrange-ment, 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 predictable 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 recognised at fair value and are subsequently measured at amortised cost, less provision for expected credit losses.
Note 22\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 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.
Contract assets
Contract assets are recognised for performance obligations satisfied 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 receivable, 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 | 2024 | 2023 |
As of 1 January | 24\u00a0244 | 16\u00a0276 |
Performance obligations met | 45\u00a0437 | 42\u00a0789 |
Reclassified to receivables | (44\u00a0724) | (35\u00a0305) |
Translation difference | (417) | 484 |
Total contract assets | 25\u00a0434 | 24\u00a0244 |
It is expected that 97% of the above contract assets will be reclassi-fied to receivables in 2025 and 3% in 2026.
The expected credit losses on contract 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 below:
NOK thousand | 2024 | 2023 |
As of 1 January | 24\u00a0319 | 16\u00a0476 |
Deferred revenue | 130\u00a0200 | 101\u00a0264 |
Recognised as revenue in P&L | (129\u00a0705) | (94\u00a0227) |
Translation difference | 1\u00a0009 | 806 |
Total contract liabilities | 25\u00a0824 | 24\u00a0319 |
Contract liabilities are mainly invoiced to customers in advance and relating to 2025. All liabilities per 1 January were recognised as revenue in P&L during the year.
Note 23\tInventory
Inventories are recognised at the lower amount 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 | 2024 | 2023 |
Hardware for resale | 1\u00a0667 | 1\u00a0548 |
Licenses for resale | 6\u00a0150 | 0 |
Total inventory | 7\u00a0817 | 1\u00a0548 |
Note 24\tOther current assets
NOK thousand | 2024 | 2023 |
Government receivables | 879 | 1\u00a0978 |
Prepaid cost | 8\u00a0352 | 10\u00a0539 |
Other current assets | 1\u00a0195 | 750 |
Total other current assets | 10\u00a0426 | 13\u00a0267 |
Prepaid cost mainly consist of advances paid for software, rent and insurance.
Note 25\tCash and cash equivalents
NOK thousand | 2024 | 2023 |
Cash, free | 11\u00a0446 | 27\u00a0260 |
Cash, restricted | 11\u00a0673 | 12\u00a0111 |
Total cash and cash equivalents | 23\u00a0119 | 39\u00a0371 |
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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
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 minimise 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 maximise 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 2024.
Note 26\tShares
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
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 |
31 December 2024 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
There was no change in Share capital during 2024. Each share has the same rights and has a par value of NOK 0.28.
20 largest shareholders at 31 Dec 2024
Holding | Stake | |
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% |
TITAN VENTURE AS | 3\u00a0050\u00a0000 | 4.4% |
DALLAS ASSET MANAGEMENT AS | 2\u00a0467\u00a0200 | 3.5% |
JOAR AARENES | 1\u00a0768\u00a0473 | 2.5% |
SRK CONSULTING AS | 1\u00a0757\u00a0476 | 2.5% |
ERIK SKAAR OPDAL | 1\u00a0695\u00a0200 | 2.4% |
Nordnet Bank AB | 1\u00a0530\u00a0066 | 2.2% |
EXCESSION AS | 1\u00a0100\u00a0000 | 1.6% |
TRUDE HALVORSEN | 1\u00a0079\u00a0789 | 1.6% |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% |
COMPANY ONE AS | 934\u00a0023 | 1.3% |
KRISTIAN FALNES AS | 850\u00a0000 | 1.2% |
MIDDELBOE AS | 739\u00a0662 | 1.1% |
NILS GABRIEL ANDRESEN | 622\u00a0086 | 0.9% |
LARS HUGO BRAADLAND OLSEN | 574\u00a0850 | 0.8% |
Danske Bank A/S | 553\u00a0700 | 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 | 38\u00a0409\u00a0752 | 55.2% |
Other shareholders | 31\u00a0162\u00a0454 | 44.8% |
Total | 69\u00a0572\u00a0206 | 100.0% |
Shares held by related parties
Holding | Stake | ||
COMPANY ONE AS | 934\u00a0023 | 1.3% | Related to H\u00e5kon Reistad Fure, 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 per 31.12.2024 |
TERJE MJ\u00d8S HOLDING AS | 180\u00a0000 | 0.3% | Related to Terje Mj\u00f8s, Member of the Board in Arribatec Group ASA |
KJ\u00d8LVIK INVEST AS | 37\u00a0935 | 0.1% | Related to Ole-Jakob Kj\u00f8lvik, Interim CEO of Arribatec Group ASA |
SICUBI AS | 24\u00a0072 | 0.0% | Related to Bente Brocks, CFO (interim) of Arribatec Group ASA |
HELLEBUST | 22\u00a0728 | 0.0% | Related to Kristin Hellebust, Member of the Board in Arribatec Group ASA |
Note 27\tLong term incentive plan
During 2023, a long-term incentive plan in the form of a share-based remuneration program was launched within Arribatec, with the intention to incentivise 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 on 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 in 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 annualised 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 | 2024 | 2023 |
Cost of employee share option program | 3\u00a0153\u00a0718 | 619\u00a0924 |
Total Social security provisions | 0 | 0 |
Granted instruments
Option | ||
Instrument | 2024 | 2023 |
Quantity, End of period (instruments) | 3\u00a0084\u00a0700 | 3\u00a0303\u00a0240 |
Quantity, End of period (shares) | 3\u00a0084\u00a0700 | 3\u00a0303\u00a0240 |
Contractual life\u200c1 | 5.00 | 5.00 |
Strike price\u200c1 | 5.25 | 5.25 |
Share price\u200c1 | 4.63 | 4.63 |
Expected lifetime\u200c1 | 3.00 | 3.00 |
Volatility\u200c1 | 65.66% | 65.66% |
Interest rate\u200c1 | 3\u00a0965% | 3\u00a0965% |
Dividend\u200c1 | 0.00 | 0.00 |
FV per instrument\u200c1 | 1.97 | 1.97 |
1Weighted average parameters at grant of instrument
Outstanding instruments Year End - Option
Quantity and weighted average prices | Number of instruments | Weighted Average Strike Price | Number of instruments | Weighted Average Strike Price |
Activity | 01.01.2024 - 31.12.2024 | 01.01.2023 - 31.12.2023 | ||
Outstanding OB | 3\u00a0303\u00a0240 | 5.25 | 0 | 0.00 |
Granted | 0 | 0.00 | 3\u00a0303\u00a0240 | 5.25 |
Exercised | 0 | 0.00 | 0 | 0.00 |
Released | 0 | 0.00 | 0 | 0.00 |
Adjusted | 0 | 0.00 | 0 | 0.00 |
Performance Adjusted | 0 | 0.00 | 0 | 0.00 |
Cancelled | 0 | 0.00 | 0 | 0.00 |
Terminated | (218\u00a0540) | 5.25 | 0 | 0.00 |
Expired | 0 | 0.00 | 0 | 0.00 |
Outstanding CB | 3\u00a0084\u00a0700 | 5.25 | 3\u00a0303\u00a0240 | 5.25 |
Vested CB | 1\u00a0028\u00a0231 | 5.00 | 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\u00a0028\u00a0231 | 3.84 | 5.00 | 1\u00a0028\u00a0231 | 5.00 |
5.25 | 1\u00a0028\u00a0234 | 3.84 | 5.25 | 0 | 0.00 |
5.50 | 1\u00a0028\u00a0235 | 3.84 | 5.50 | 0 | 0.00 |
3\u00a0084\u00a0700 |
Note 28\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2024 | 31 Dec 2023 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2025, Dec | 20\u00a0000 | 19\u00a0458 |
Danske Bank | Revolving credit facility | NOK | 15\u00a0000 | NIBOR+2.75% | 2025, Jan | 11\u00a0625 | 0 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 0 | 19 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 5\u00a0984 | 7\u00a0896 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 1\u00a0322 | 3\u00a0671 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 4\u00a0218 | 5\u00a0681 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0105 | 2\u00a0663 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 45\u00a0254 | 39\u00a0388 |
Credit facilities | Other borrowings | Total | |
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 |
Balance at 1 Jan 2024 | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Proceeds from loans and borrowings | 12\u00a0167 | 0 | 12\u00a0167 |
Repayment of loans and borrowings | 0 | (7\u00a0372) | (7\u00a0372) |
Total changes in financial cashflow | 12\u00a0167 | (7\u00a0372) | 4\u00a0795 |
Translation difference | 0 | 1\u00a0072 | 1\u00a0072 |
Total Borrowings at end of period | 31\u00a0625 | 13\u00a0629 | 45\u00a0254 |
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 amortised cost.
Note 29\tPensions
Arribatec group meets the different local mandatory occupational pension requirements.
Arribatec operates defined contribution retirement benefit plans for all qualifying employees of its subsid-iaries in Norway, Sweden and Denmark. The only obligation of the group with respect to the retirement benefit plan is to make 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 30\tProvisions
NOK thousand | 2024 | 2023 |
Severance indemnity funds in Italy | 9\u00a0227 | 8\u00a0145 |
Other provisions | 2\u00a0484 | 2\u00a0540 |
Total provision | 11\u00a0710 | 10\u00a0685 |
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 31.12.2024, all funds estimated as long term (2-4+ years).
Provisions
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 31\tOther current liabilities
NOK thousand | 2024 | 2023 |
Employer tax and employee withholding tax | 21\u00a0064 | 24\u00a0302 |
Accrued holiday payments and bonuses | 25\u00a0266 | 30\u00a0640 |
VAT liabilities | 11\u00a0674 | 9\u00a0632 |
Remaining part of acq.price, Integra | 0 | 7\u00a0441 |
Accrued restructuring cost | 7\u00a0841 | 0 |
Other short term liabilities | 16\u00a0061 | 11\u00a0855 |
Total other current liabilities | 81\u00a0906 | 83\u00a0869 |
Note 32\tTransactions with related parties
During 2024, the Company has paid consultancy fees to Company One AS, a company related to the Chairman of the Board, H\u00e5kon Reistad Fure and legal fees to Ro Sommernes Advokatfirma DA, a company in relation to BoD member Herik A. Christensen.
During 2023 and 2024, rent for office in UK was paid to MDB & Sons Ltd, a company related to an employee of Arribatec UK Ltd (former Integra Associated Ltd).
NOK thousand | 2024 | 2023 |
Transactions with related parties | ||
Company One AS - consultancy | 625 | 0 |
Ro Sommernes Advokatfirma DA - legal services | 206 | 0 |
MDB & Sons Ltd - office rental, Leicester | 453 | 481 |
Total Related parties transactions | 1\u00a0284 | 481 |
Note 33\tPledged assets
All the Nordic subsidiaries of the Group (Norway, Sweden and Denmark are part of the security package for the revolving credit facility, see Note 28. The subsidiaries that are part of the security package are guaran-tors and have granted a share pledge and a bank account pledge.
Note 34\tShare issue and warrants
On 2 December 2024, an extraordinary general meeting decided on a rights issue of 350 million shares at a subscription price of NOK 0.10 per share. The shares were traded exclusively on the subscription right from 3 December, and the new share capital was registered on 7 February 2025. The rights share issue was fully underwritten, and the same extraordinary general meeting decided to offer 150 million warrants to the underwriters as compensation for the underwriting services (1 warrant gives right to subscribe 1 share). The same extraordinary general meeting decided to offer the Board of Directors to subscribe for 60 million shares in connection with the rights issue at a subscription price of NOK 0.10 per share and receive 60 million warrants. Each warrant gives the right to subscribe to one share for NOK 0.10 per share. A total of 210 million warrants are freely tradable and may be exercised at any time until 27 January 2026, and any unexercised warrant will be forfeited after this.
The Company judges that the subscription rights and warrants offered to the Board of Directors had a grant date and were fully vested on 2 December 2024 according to IFRS 2. The fair value of the total 120 million subscription rights and warrants has been estimated to be NOK 3.1 million based on a Theoretical Ex-Rights Price (TERP). TERP is used due to the significant theoretical dilution effect of the rights issue, which a market price (stock price) does not reflect. Hence, the use of TERP is the consensus view to use. The estimated fair value has been recognised as an employee expense with offset to equity. It has also been calculated a social security tax on this with NOK 0.6 million on 31 December 2024.
The share issues will be recognised in 2025. The estimated value of the underwriting services will be a net zero effect directly to equity in 2025.
Note 35\tSubsequent events
After 31 December 2024, the following highlights have occurred:
On 2 December 2024, an extraordinary general meeting of Arribatec decided on a capital reduction by reducing the par value from NOK 2.80 to NOK 0.10 per share. The reduction took place after the end of the creditor notice period on 27 January 2025. Furthermore, a rights issue, directed to all existing shareholders and to BoD members, in addition to warrants to a group of underwriters and the Board of Directors, that subscribed under the Board of Directors share issue was completed on 6 February 2025. The share issue resulted in NOK 41m cash.
On 4 March 2025, the Company announced that they had signed an agreement to divest Arribatec Marine to Star Information System. The closing of the sale took place on 18 March 2025 at a valuation of NOK 24.6 million. On 14 March the company announced that they successfully completed the divestment of Arribatec Hospitality for an equity valuation of NOK 12.5 million. An estimated gain from these sales are NOK 14.5 million.
Notes to the financial statements
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\u2014ticker ARR.
The company's and its subsidiaries (the Group) principal activities are software and consulting. With a customer-centric engagement model, combined with a deep system, integration, and domain competence, Arribatec builds long-term strategic partnerships with a broad customer base. Arribatec supports over 1 700 entities across diverse countries and industries, operating from 17 offices worldwide and serving both the private and public sectors. The activities are further described in Note 5.
The Annual Report and Parent Company Report for Arribatec Group ASA (publ) was adopted by the Board of Directors on 25 April 2025 and will be submitted for approval to the Annual General Meeting on 28.05.2025.
Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries as \u201cthe Group\u201d, have been prepared in accordance with IFRS Accounting Standards as adopted by the EU, relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated financial accounts are presented in NOK.
All figures presented in this annual report have been rounded and consequently, the sum of individual figures can deviate from the total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. In 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. In an extraordinary general meeting held 2 December 2024, a rights issue of up to 350 million new shares with preferential subscription rights for existing shareholders to raise gross proceeds of up to NOK 35 million and an additional Director offering of 60 million new shares at NOK 6 million were approved. The share issue took place in February 2025. Furthermore, in March 2025, Arribatec announced that they completed the divestment of both the Arribatec Hospitality and the Arribatec Marine segments at an equity valuation of NOK 12.5 million and NOK 24.6 million respectively. Together this supports the going concern assumption.
Note 3\tChanges in Accounting Policies and disclosures for the 2024 calendar year or thereafter
Arribatec has not implemented any new accounting standards or otherwise made any changes to accounting policies during 2024.
In 2024, the International Accounting Standards Board (IASB) introduced two significant standards \u2013 IFRS 18 Presentation and Disclosure in Financial Statements, and IFRS 19 Subsidiaries without Public Accountability: Disclosures \u2013 which are effective in 2027.
IFRS 18 will have an impact on the presentation of Arribatec Group accounts but as per today, the extent is currently not concluded.
Note 4\tRevenue
Consulting services
Consulting services mainly come from time and material projects. Revenue is recognised as revenue as they are delivered to the customer every month.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the company\u2019s obligations to provide those rights. IFRS 15 distinguishes whether the license provides a \u201dright-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 analysed 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 it is 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 servers), 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 license 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 revenue when the customer has received legal title and physical possession and has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec licenses cloud-based subscription licenses (\u201cright-to-access\u201d), the licenses are 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 perfor-mance 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 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 accordingly recognised over time as the installation and integration are performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premise 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 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 geographic information, revenue has been based on the geographic location of the legal entity. The table shows external revenue.
Full year 2024
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 166\u00a0578 | 199\u00a0758 | 35\u00a0190 | 401\u00a0526 |
Business services | 75\u00a0554 | 56\u00a0063 | 3\u00a0427 | 135\u00a0044 |
EA & BPM | 66\u00a0515 | 32\u00a0147 | 5\u00a0503 | 104\u00a0165 |
Cloud | 11\u00a0577 | 104\u00a0862 | 14\u00a0224 | 130\u00a0663 |
Hospitality | 12\u00a0932 | 6\u00a0686 | 12\u00a0035 | 31\u00a0653 |
Corporate | 0 | 0 | 0 | 0 |
Continental Europe | 61\u00a0365 | 21\u00a0814 | 3\u00a0224 | 86\u00a0403 |
Business services | 40\u00a0636 | 13\u00a0197 | 614 | 54\u00a0447 |
Marine | 20\u00a0729 | 8\u00a0617 | 2\u00a0610 | 31\u00a0956 |
UK | 43\u00a0371 | 23\u00a0105 | 1\u00a0780 | 68\u00a0255 |
Business services | 43\u00a0323 | 23\u00a0105 | 1\u00a0780 | 68\u00a0208 |
Cloud | 48 | 0 | 0 | 48 |
Americas | 11\u00a0971 | 6\u00a0578 | 0 | 18\u00a0549 |
Business services | 7\u00a0859 | 0 | 0 | 7\u00a0859 |
Marine | 4\u00a0112 | 6\u00a0578 | 0 | 10\u00a0690 |
Total revenue | 283\u00a0285 | 251\u00a0255 | 40\u00a0193 | 574\u00a0733 |
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 |
Note 5\tSegment
The market for Arribatec\u2019s Software and services is global. The chief decision maker will follow up on revenue and profitability on a global basis, segmented into the Business Areas (BAs). 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 Note 4.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to the tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations, and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customising, maintaining, and supporting the entire business landscape, with ERP as the core engine. We integrate it with other marked 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 sectors.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk, and GDPR. Arribatec Cloud also 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 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.
2024
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 273\u00a0492 | 106\u00a0346 | 142\u00a0308 | 31\u00a0653 | 42\u00a0646 | 453 | (22\u00a0165) | 574\u00a0733 |
Materials, software and services | (43\u00a0149) | (28\u00a0293) | (73\u00a0572) | (16\u00a0687) | (5\u00a0088) | (2\u00a0080) | 22\u00a0185 | (146\u00a0684) |
Gross margin | 230\u00a0343 | 78\u00a0052 | 68\u00a0736 | 14\u00a0967 | 37\u00a0558 | (1\u00a0628) | 20 | 428\u00a0048 |
Salary and personnel costs | (186\u00a0829) | (63\u00a0697) | (50\u00a0468) | (14\u00a0873) | (26\u00a0437) | (26\u00a0967) | (0) | (369\u00a0272) |
Other operating expenses | (20\u00a0938) | (7\u00a0158) | (8\u00a0972) | (6\u00a0810) | (3\u00a0968) | (26\u00a0136) | (20) | (74\u00a0002) |
Total operating expenses | (207\u00a0768) | (70\u00a0855) | (59\u00a0439) | (21\u00a0683) | (30\u00a0404) | (53\u00a0103) | (20) | (443\u00a0273) |
EBITDA | 22\u00a0575 | 7\u00a0197 | 9\u00a0297 | (6\u00a0716) | 7\u00a0154 | (54\u00a0730) | 0 | (15\u00a0225) |
Depreciation, amortisarion and impairment | (15\u00a0533) | (7\u00a0240) | (11\u00a0078) | (26\u00a0602) | (7\u00a0330) | (2\u00a0241) | 0 | (70\u00a0025) |
EBIT | 7\u00a0042 | (43) | (1\u00a0781) | (33\u00a0319) | (177) | (56\u00a0971) | 0 | (85\u00a0249) |
Gross margin % | 84.2% | 73.4% | 48.3% | 47.3% | 88.1% | na | na | 74.5% |
EBITDA % | 8.3% | 6.8% | 6.5% | (21.2%) | 16.8% | na | na | (2.6%) |
EBIT % | 2.6% | 0.0% | (1.3%) | (105.3%) | (0.4%) | na | na | (14.8%) |
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%) |
Note 6\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the cost occur.
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.
NOK thousand | 2024 | 2023 |
Hired consultans | (27\u00a0269) | (40\u00a0302) |
Hardware for resale | (19\u00a0945) | (8\u00a0999) |
Software for resale | (86\u00a0506) | (66\u00a0896) |
Other | (12\u00a0963) | (16\u00a0475) |
Total materials, software and services | (146\u00a0684) | (132\u00a0673) |
Note 7\tPersonnel
NOK thousand | 2024 | 2023 |
Salaries | (282\u00a0689) | (271\u00a0802) |
Social security tax | (48\u00a0347) | (42\u00a0480) |
Bonuses | (1\u00a0959) | (6\u00a0752) |
Share option cost (Note27) | (3\u00a0155) | (620) |
Pension costs defined contribution (Note29) | (22\u00a0037) | (20\u00a0105) |
Capitalised work preformed | 7\u00a0390 | 12\u00a0750 |
Other personnel cost | (18\u00a0475) | (17\u00a0600) |
Total salaries and personnel expense | (369\u00a0272) | (346\u00a0608) |
Average number of FTEs
2024 | 2023 | |
Number os FTEs, start of year | 329 | 374 |
Number os FTEs, end of year | 314 | 329 |
Average number of FTEs | 321 | 352 |
Gender split, end of year | ||
Male | 220 | 215 |
Female | 94 | 114 |
Number of FTEs, end of year, per country
2024 | 2023 | |
Cyprus | 3 | 3 |
Denmark | 1 | 1 |
France | 4 | 4 |
Italy | 28 | 28 |
Norway | 202 | 208 |
Singapore | 1 | 1 |
Spain | 24 | 25 |
Sweden | 15 | 16 |
United Kingdom | 33 | 33 |
USA | 3 | 11 |
Total number of FTEs | 314 | 329 |
Pension obligations
The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 27for further description. The group only has defined contribution retire-ment plans.
Note 8\tKey management
The Group Management consists of the Group Directors. Group Directors are the CEO, COO, CFO, CPOO and CCO, 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. The amounts presented are the total part of the salary in the period, 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 the remuneration report for details on the bonus and share option program concerning management.
Management remuneration 2024
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 | 6 | 207 | 104 | 4\u00a0317 |
Ole Jakob Kj\u00f8lvik - COO (until Aug-24) | 0 | 0 | 1\u00a0072 | 0 | 10 | 104 | 69 | 1\u00a0254 |
Bente Brocks - CFO (interim) | 0 | 0 | 1\u00a0784 | 0 | 6 | 186 | 104 | 2\u00a0081 |
Erik Sundet - Group IT director (50% mgmt) | 0 | 0 | 1\u00a0252 | 0 | 24 | 155 | 88 | 1\u00a0519 |
P\u00e5l Stueflotten - CCO | 0 | 0 | 1\u00a0200 | 433 | 49 | 155 | 104 | 1\u00a0942 |
Solfrid Bu\u00f8 - CPOO | 0 | 0 | 1\u00a0500 | 0 | 6 | 155 | 104 | 1\u00a0765 |
Management total | 0 | 0 | 10\u00a0807 | 433 | 102 | 963 | 574 | 12\u00a0879 |
Members of the Board | ||||||||
H\u00e5kon Reistad Fure - Chairman (from Dec-24) | 24 | 3 | 0 | 0 | 0 | 0 | 0 | 28 |
Martin Nes - Chairman (until Nov-24) | 252 | 37 | 0 | 0 | 0 | 0 | 0 | 289 |
Henrik Christensen - Member (from Dec-24) | 20 | 0 | 0 | 0 | 0 | 0 | 0 | 20 |
\u00d8ystein S. Spetalen - Member (until Nov-24) | 208 | 0 | 0 | 0 | 0 | 0 | 0 | 208 |
Kristin Hellebust - Member | 226 | 35 | 0 | 0 | 0 | 0 | 0 | 261 |
Linn Katrine H\u00f8ie - Member | 228 | 0 | 0 | 0 | 0 | 0 | 0 | 228 |
Terje Mj\u00f8s - Member1 | 169 | 35 | 0 | 0 | 0 | 0 | 0 | 204 |
Members of the Board total | 1\u00a0126 | 110 | 0 | 0 | 0 | 0 | 0 | 1\u00a0236 |
Total salaries and personnel expense | 1\u00a0126 | 110 | 10\u00a0807 | 433 | 102 | 963 | 574 | 14\u00a0115 |
1Received NOK 57.5k less than he should in 2024, this is compensated in 2025
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 (until 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 |
The following remuneration has been made to the members of the nomination committee during the year:
NOK thousand | 2024 | 2023 |
Nomination committee | ||
Espen Lundaas - Chairman | 20 | |
\u00d8ystein Tvenge - Member1 | 0 | |
Total | 20 |
1Compensation for 2021-2024 paid 2024
Note 9\tOther operating expenses
NOK thousand | 2024 | 2023 |
Marketing cost | (3\u00a0817) | (4\u00a0966) |
Rental and leasing cost1 | (6\u00a0904) | (8\u00a0145) |
Travel cost | (7\u00a0895) | (11\u00a0348) |
Fees for external services | (20\u00a0525) | (18\u00a0784) |
IT and communication cost | (16\u00a0973) | (16\u00a0992) |
Restructuring cost | (10\u00a0142) | 0 |
Other operating cost2 | (7\u00a0745) | (9\u00a0001) |
Total operating expenses | (74\u00a0002) | (69\u00a0236) |
1Includes common costs related to premises, such as electricity, cleaning, moving costs and contracts of lower value and/or shorter than 12 months. There are no leasing contracts with lower value and/or short than 12 months.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
On 27 September 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. Following this, the Company underwent a restructuring initiative with a one-time restructuring cost of NOK 10.1m in Q4-24, of which 7.8m relates to cost with cash effect in 2025. A total of 25 FTEs were made redundant, with the savings coming into effect from Q2-2025. Restructuring provisions are recognised only when the Group has a constructive obligation, which is when there is a detailed formal plan that identifies the business or part of the business concerned, the location and number of employees affected, the detailed estimate of the associated costs, and the timeline and the employees affected have been notified of the plan\u2019s main features.
NOK thousand | 2024 | 2023 |
Specification of auditor\u2019s fee | ||
Statutory audit | (3\u00a0337) | (1\u00a0224) |
Other assurance services | (55) | (11) |
Other non-assurance services | (207) | (132) |
Total | (3\u00a0598) | (1\u00a0366) |
Note 10\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.
2024
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2024 | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Additions | 1\u00a0526 | 0 | 55 | 1\u00a0581 |
Disposals | (2\u00a0132) | (615) | (255) | (3\u00a0002) |
Translation difference | 586 | 187 | 39 | 813 |
Cost, end of period | 18\u00a0353 | 4\u00a0529 | 1\u00a0661 | 24\u00a0543 |
Accumulated depreciation at 1 Jan 2024 | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Depreciation during the year | (2\u00a0191) | (854) | (159) | (3\u00a0204) |
Disposals | 2\u00a0132 | 615 | 255 | 3\u00a0002 |
Translation difference | (539) | (115) | (29) | (683) |
Accumulated depreciation, end of period | (15\u00a0539) | (3\u00a0114) | (947) | (19\u00a0599) |
Carrying amount at 31 Dec 2024 | 2\u00a0815 | 1\u00a0415 | 714 | 4\u00a0944 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
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 |
Note 11\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 contracts with less than twelve months durtion) and leases for low-value assets, these are expensed in P&L as they occur.
Leases that fulfil the criteria are recognised in the balance 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 terminate 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 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 |
Right-of-use assets per 1 Jan 2024 | 22\u00a0665 | 620 | 1\u00a0299 | 3\u00a0856 | 28\u00a0442 |
Addition of right-of-use assets | 5\u00a0108 | 1\u00a0142 | 7\u00a0348 | 5\u00a0048 | 18\u00a0646 |
Depreciation in the period | (11\u00a0543) | (553) | (3\u00a0471) | (2\u00a0402) | (17\u00a0969) |
Disposals | (109) | 0 | (107) | (2\u00a0586) | (2\u00a0802) |
Translation difference | 207 | 39 | 0 | 0 | 246 |
Carrying amount of right-of-use assets, end of period | 16\u00a0328 | 1\u00a0248 | 5\u00a0069 | 3\u00a0917 | 26\u00a0563 |
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 2024 | 31 Dec 2023 |
Undiscounted lease liabilities and maturity of cash outflow | ||
< 1 year | 15\u00a0180 | 13\u00a0609 |
1-2 years | 7\u00a0966 | 9\u00a0421 |
2-3 years | 3\u00a0639 | 5\u00a0344 |
3-4 years | 1\u00a0748 | 2\u00a0064 |
4-5 years | 620 | 546 |
Total undiscounted lease liabilities, end of period | 29\u00a0153 | 30\u00a0984 |
Discount element | (1\u00a0463) | (1\u00a0239) |
Total discounted lease liabilities, end of period | 27\u00a0690 | 29\u00a0745 |
NOK thousand | 31 Dec 2024 | 31 Dec 2023 |
Total lease liabilities, end of period | 27\u00a0690 | 29\u00a0745 |
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 13for interest expenses related to leasing contracts.
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 14\tTax
Arribatec accounts 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 recognises 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, recognising them to the extent of probable future taxable profit availability or utilisation of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognised 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 the calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
Deferred tax assets
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Tax losses carried forward, not recognised, mainly relates to companies abroad and Arribatec Hospitality, while recognised deferred tax assets relates to proven profit-making entities within the Norwegian tax jurisdiction. There is a clear expectation that the Norwegian entities will deliver positive taxable results and be able to utilise the deferred tax losses carried forward.
NOK thousand | 2024 | 2023 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 57 | 2\u00a0597 |
Correction previous year - Norway | 31 | (7) |
Current Income Tax - Other countries | 62 | 2\u00a0762 |
Correction previous year - other countries | (62) | (59) |
Deferred tax | ||
Change in deferred taxes - Norway | (8\u00a0685) | (10\u00a0392) |
Change in deferred taxes - Other countries | (18) | (1\u00a0900) |
Tax income recorded in consolidated statement of Profit & Loss | (8\u00a0616) | (6\u00a0998) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (91\u00a0329) | (30\u00a0050) |
Adjustment of current income tax of previous years | (27) | 3 |
Temporary differences | (14\u00a0930) | (2\u00a0336) |
Non deductible expenses | 8\u00a0504 | 1\u00a0113 |
Non-taxable income | (2\u00a0958) | (367) |
Tax base | (100\u00a0740) | (31\u00a0637) |
NOK thousand | 2024 | 2023 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 22\u00a0163 | 6\u00a0960 |
Tax previous year | (30) | (65) |
Group contribution with tax effect (tax payable effect) | (1\u00a0738) | (2\u00a0576) |
Group contribution with tax effect (deferred tax effect) | 1\u00a0738 | 2\u00a0576 |
Changes in recognised deferred taxes | (8\u00a0704) | (12\u00a0292) |
Effect from previously unrecognised deferred taxes | 0 | (1\u00a0607) |
Different tax rates applied in foreign jurisdictions | (22\u00a0045) | 6 |
Tax income at effective tax rate | (8\u00a0616) | (6\u00a0998) |
Effective tax rate | 9.4% | 23.3% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 47\u00a0007 | 23\u00a0756 |
Property, plant and equipment | 143 | 79 |
Intangible assets | 52 | 1\u00a0492 |
Receivable | (241) | (123) |
Other provisions | 1\u00a0322 | 316 |
Leases | 150 | 105 |
Deferred tax on intangible assets from business combinations | 2\u00a0654 | 3\u00a0141 |
Tax losses carried forward, not recognised | (31\u00a0322) | (17\u00a0556) |
Deferred taxes, net | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, recognised | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, not recognised | 31\u00a0322 | 17\u00a0556 |
NOK thousand | 2024 | 2023 |
Reconciliation to balance sheet | ||
Deferred tax assets | 25\u00a0388 | 18\u00a0998 |
Deferred tax liabilities | (5\u00a0623) | (7\u00a0786) |
Net Deferred tax assets (liabilities) | 19\u00a0764 | 11\u00a0212 |
Note 15\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 |
31 December 2024 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
There was no change in the number of shares or share capital during 2024.
Diluted EPS amounts are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be Issued on the 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 | 2024 | 2023 |
Net profit/(loss) to equity holders | (82\u00a0712\u00a0957) | (23\u00a0052\u00a0518) |
Total | (82\u00a0712\u00a0957) | (23\u00a0052\u00a0518) |
Number of shares (in thousands) | ||
Weighted average number of ordinary shares | 69\u00a0572\u00a0206 | 69\u00a0057\u00a0322 |
Effects of dilution, weighted average | 3\u00a0400\u00a0584 | 371\u00a0097 |
Weighted average number of shares, adjusted for effects of dilution | 72\u00a0972\u00a0790 | 69\u00a0428\u00a0419 |
Basic earnings per share | (1.19) | (0.33) |
Diluted earnings per share1 | (1.19) | (0.33) |
1If Net loss, EPS per Basic and Diliuted share will be equal
In 2023, only part of the original share consideration is included as dilution. Part of the share consideration for Integra was still outstanding. This was settled during 2024.
Effects of dilution
NOK | 2024 | 2023 |
Share consideration outstanding Integra | 0 | 371\u00a0097 |
Share option 2023 Sept program | 3\u00a0148\u00a0995 | 0 |
Share cons. BoD | 251\u00a0589 | 0 |
Note 16\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 184.3m as of 31 December 2024 (NOK 206.5m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 11.3 million as per 31 December 2024 (NOK 31.8m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortised, ref Note12.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually. An impairment related to goodwill on CGU Hospitality has been recognised with NOK 24.4 million.
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.
2024
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 0 | 66\u00a0361 | 158\u00a0568 |
UK | 0 | 20\u00a0959 | 0 | 0 | 0 | 20\u00a0959 |
Italy | 0 | 0 | 4\u00a0731 | 0 | 0 | 4\u00a0731 |
Total | 56\u00a0622 | 56\u00a0544 | 4\u00a0731 | 0 | 66\u00a0361 | 184\u00a0258 |
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 |
Cash flow projections and assumptions
A five-year forecast for discounted cash flows plus a 2.0% terminal value growth rate was used to determine the 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 future cash flows is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents manage-ment\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 sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2024 | 2023 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.82% | 4.48% | 3.47% | 3.0% | 4.25% | 3.70% |
Market risk premium | 5.0% | 5.0% | 5.0% | 7.0% | 7.0% | 7.0% |
Equity Beta | 1.01 | 1.01 | 1.01 | 1.61 | 1.61 | 1.61 |
Small cap | 5.0% | 5.0% | 5.0% | 3.0% | 3.0% | 3.0% |
Cost of equity | 13.9% | 14.5% | 13.5% | 9.4% | 9.4% | 9.4% |
Credit spread | 2.75% | 2.75% | 2.75% | 3.00% | 3.00% | 3.00% |
After tax cost debt | 6.57% | 7.23% | 6.22% | 4.80% | 4.80% | 4.80% |
Equity weight | 88.9% | 88.9% | 88.9% | 90.1% | 90.1% | 90.1% |
WACC (pre tax) | 13.1% | 13.7% | 12.7% | 15.4% | 14.9% | 17.0% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2025 and estimates from 2026-2028 and a terminal growth rate of 2%. The average growth rates in the estimated period 2025-2028 for each Business Area are:
2024 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 6% | 6% | 5% | (13%) | 5% |
Average Gross profit margin | 5.8% | 6.2% | 3.6% | (15.7%) | 3.9% |
Average EBITDA margin | 6% | 5% | 13% | 27% | 11% |
Compared to the same assumptions in 2023 we see a decline in the growth assumptions. This is explained by Arribatec's focus on profitability first and using modest growth assumptions as the basis for impairment tests. The management's evaluation of future growth is grounded in an analysis that combines historical data, strategic planning, market, strategic focus, initiatives and financial modeling.
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% |
Sensitivity
On 31 December 2024, 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 17\tBusiness Combinations
During 2023 or 2024, Arribatec did not acquire any shares in compa-nies. However, an earn-out related to the acquisition of the subsidiary Arribatec UK (formerly Integra) was setteled in Jnauary 2024. During 2021, Arribatec acquired shares in the companies mentioned below and consequently controls the subsidiaries from the date of acquisi-tion. 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 Note16.
Note 18\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 | Dormant |
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 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 19\tOther non-current assets
NOK thousand | 2024 | 2023 |
Investment in shares | 60 | 60 |
Deposits | 4\u00a0542 | 3\u00a0929 |
Total other non-current assets | 4\u00a0602 | 3\u00a0989 |
Deposits are mainly deposits in relation to office rental agreements.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 21\tAccount receivable
NOK thousand | Current | 0-30 days | 31-60 days | 61-90 days | 90+days | Total | whereof estimated credit losses |
Ageing, Accounts receivable | |||||||
2024 | 48\u00a0628 | 16\u00a0571 | 5\u00a0339 | 3\u00a0899 | 2\u00a0268 | 76\u00a0705 | (2\u00a0060) |
2023 | 45\u00a0192 | 33\u00a0769 | 5\u00a0533 | 2\u00a0795 | 3\u00a0608 | 90\u00a0898 | (4\u00a0230) |
Provision for Expected Credit Losses (ECL) is included with NOK 2.1m (NOK 4.2m). The provision is based on a valuation per subsidiary at year-end based on general assumptions and historical experience of low credit losses, as well as agreements with customers and payments made in the next year. Accounts receivables are non-in-terest bearing.
Expensed credit loss in 2024 was NOK 2.3m (0.1m), whereof NOK 2.1m is bad debt expensed in relation to large customer bank-ruptcy.
Credit risk
Credit risks are the risks that a counterpart will not meet its obliga-tions 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 receiv-ables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pay for software and services under a software-as-a-service (SaaS) arrange-ment, 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 predictable 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 recognised at fair value and are subsequently measured at amortised cost, less provision for expected credit losses.
Note 22\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 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.
Contract assets
Contract assets are recognised for performance obligations satisfied 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 receivable, 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 | 2024 | 2023 |
As of 1 January | 24\u00a0244 | 16\u00a0276 |
Performance obligations met | 45\u00a0437 | 42\u00a0789 |
Reclassified to receivables | (44\u00a0724) | (35\u00a0305) |
Translation difference | (417) | 484 |
Total contract assets | 25\u00a0434 | 24\u00a0244 |
It is expected that 97% of the above contract assets will be reclassi-fied to receivables in 2025 and 3% in 2026.
The expected credit losses on contract 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 below:
NOK thousand | 2024 | 2023 |
As of 1 January | 24\u00a0319 | 16\u00a0476 |
Deferred revenue | 130\u00a0200 | 101\u00a0264 |
Recognised as revenue in P&L | (129\u00a0705) | (94\u00a0227) |
Translation difference | 1\u00a0009 | 806 |
Total contract liabilities | 25\u00a0824 | 24\u00a0319 |
Contract liabilities are mainly invoiced to customers in advance and relating to 2025. All liabilities per 1 January were recognised as revenue in P&L during the year.
Note 23\tInventory
Inventories are recognised at the lower amount 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 | 2024 | 2023 |
Hardware for resale | 1\u00a0667 | 1\u00a0548 |
Licenses for resale | 6\u00a0150 | 0 |
Total inventory | 7\u00a0817 | 1\u00a0548 |
Note 24\tOther current assets
NOK thousand | 2024 | 2023 |
Government receivables | 879 | 1\u00a0978 |
Prepaid cost | 8\u00a0352 | 10\u00a0539 |
Other current assets | 1\u00a0195 | 750 |
Total other current assets | 10\u00a0426 | 13\u00a0267 |
Prepaid cost mainly consist of advances paid for software, rent and insurance.
Note 25\tCash and cash equivalents
NOK thousand | 2024 | 2023 |
Cash, free | 11\u00a0446 | 27\u00a0260 |
Cash, restricted | 11\u00a0673 | 12\u00a0111 |
Total cash and cash equivalents | 23\u00a0119 | 39\u00a0371 |
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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
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 minimise 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 maximise 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 2024.
Note 26\tShares
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
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 |
31 December 2024 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
There was no change in Share capital during 2024. Each share has the same rights and has a par value of NOK 0.28.
20 largest shareholders at 31 Dec 2024
Holding | Stake | |
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% |
TITAN VENTURE AS | 3\u00a0050\u00a0000 | 4.4% |
DALLAS ASSET MANAGEMENT AS | 2\u00a0467\u00a0200 | 3.5% |
JOAR AARENES | 1\u00a0768\u00a0473 | 2.5% |
SRK CONSULTING AS | 1\u00a0757\u00a0476 | 2.5% |
ERIK SKAAR OPDAL | 1\u00a0695\u00a0200 | 2.4% |
Nordnet Bank AB | 1\u00a0530\u00a0066 | 2.2% |
EXCESSION AS | 1\u00a0100\u00a0000 | 1.6% |
TRUDE HALVORSEN | 1\u00a0079\u00a0789 | 1.6% |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% |
COMPANY ONE AS | 934\u00a0023 | 1.3% |
KRISTIAN FALNES AS | 850\u00a0000 | 1.2% |
MIDDELBOE AS | 739\u00a0662 | 1.1% |
NILS GABRIEL ANDRESEN | 622\u00a0086 | 0.9% |
LARS HUGO BRAADLAND OLSEN | 574\u00a0850 | 0.8% |
Danske Bank A/S | 553\u00a0700 | 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 | 38\u00a0409\u00a0752 | 55.2% |
Other shareholders | 31\u00a0162\u00a0454 | 44.8% |
Total | 69\u00a0572\u00a0206 | 100.0% |
Shares held by related parties
Holding | Stake | ||
COMPANY ONE AS | 934\u00a0023 | 1.3% | Related to H\u00e5kon Reistad Fure, 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 per 31.12.2024 |
TERJE MJ\u00d8S HOLDING AS | 180\u00a0000 | 0.3% | Related to Terje Mj\u00f8s, Member of the Board in Arribatec Group ASA |
KJ\u00d8LVIK INVEST AS | 37\u00a0935 | 0.1% | Related to Ole-Jakob Kj\u00f8lvik, Interim CEO of Arribatec Group ASA |
SICUBI AS | 24\u00a0072 | 0.0% | Related to Bente Brocks, CFO (interim) of Arribatec Group ASA |
HELLEBUST | 22\u00a0728 | 0.0% | Related to Kristin Hellebust, Member of the Board in Arribatec Group ASA |
Note 27\tLong term incentive plan
During 2023, a long-term incentive plan in the form of a share-based remuneration program was launched within Arribatec, with the intention to incentivise 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 on 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 in 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 annualised 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 | 2024 | 2023 |
Cost of employee share option program | 3\u00a0153\u00a0718 | 619\u00a0924 |
Total Social security provisions | 0 | 0 |
Granted instruments
Option | ||
Instrument | 2024 | 2023 |
Quantity, End of period (instruments) | 3\u00a0084\u00a0700 | 3\u00a0303\u00a0240 |
Quantity, End of period (shares) | 3\u00a0084\u00a0700 | 3\u00a0303\u00a0240 |
Contractual life\u200c1 | 5.00 | 5.00 |
Strike price\u200c1 | 5.25 | 5.25 |
Share price\u200c1 | 4.63 | 4.63 |
Expected lifetime\u200c1 | 3.00 | 3.00 |
Volatility\u200c1 | 65.66% | 65.66% |
Interest rate\u200c1 | 3\u00a0965% | 3\u00a0965% |
Dividend\u200c1 | 0.00 | 0.00 |
FV per instrument\u200c1 | 1.97 | 1.97 |
1Weighted average parameters at grant of instrument
Outstanding instruments Year End - Option
Quantity and weighted average prices | Number of instruments | Weighted Average Strike Price | Number of instruments | Weighted Average Strike Price |
Activity | 01.01.2024 - 31.12.2024 | 01.01.2023 - 31.12.2023 | ||
Outstanding OB | 3\u00a0303\u00a0240 | 5.25 | 0 | 0.00 |
Granted | 0 | 0.00 | 3\u00a0303\u00a0240 | 5.25 |
Exercised | 0 | 0.00 | 0 | 0.00 |
Released | 0 | 0.00 | 0 | 0.00 |
Adjusted | 0 | 0.00 | 0 | 0.00 |
Performance Adjusted | 0 | 0.00 | 0 | 0.00 |
Cancelled | 0 | 0.00 | 0 | 0.00 |
Terminated | (218\u00a0540) | 5.25 | 0 | 0.00 |
Expired | 0 | 0.00 | 0 | 0.00 |
Outstanding CB | 3\u00a0084\u00a0700 | 5.25 | 3\u00a0303\u00a0240 | 5.25 |
Vested CB | 1\u00a0028\u00a0231 | 5.00 | 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\u00a0028\u00a0231 | 3.84 | 5.00 | 1\u00a0028\u00a0231 | 5.00 |
5.25 | 1\u00a0028\u00a0234 | 3.84 | 5.25 | 0 | 0.00 |
5.50 | 1\u00a0028\u00a0235 | 3.84 | 5.50 | 0 | 0.00 |
3\u00a0084\u00a0700 |
Note 28\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2024 | 31 Dec 2023 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2025, Dec | 20\u00a0000 | 19\u00a0458 |
Danske Bank | Revolving credit facility | NOK | 15\u00a0000 | NIBOR+2.75% | 2025, Jan | 11\u00a0625 | 0 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 0 | 19 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 5\u00a0984 | 7\u00a0896 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 1\u00a0322 | 3\u00a0671 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 4\u00a0218 | 5\u00a0681 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0105 | 2\u00a0663 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 45\u00a0254 | 39\u00a0388 |
Credit facilities | Other borrowings | Total | |
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 |
Balance at 1 Jan 2024 | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Proceeds from loans and borrowings | 12\u00a0167 | 0 | 12\u00a0167 |
Repayment of loans and borrowings | 0 | (7\u00a0372) | (7\u00a0372) |
Total changes in financial cashflow | 12\u00a0167 | (7\u00a0372) | 4\u00a0795 |
Translation difference | 0 | 1\u00a0072 | 1\u00a0072 |
Total Borrowings at end of period | 31\u00a0625 | 13\u00a0629 | 45\u00a0254 |
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 amortised cost.
Note 29\tPensions
Arribatec group meets the different local mandatory occupational pension requirements.
Arribatec operates defined contribution retirement benefit plans for all qualifying employees of its subsid-iaries in Norway, Sweden and Denmark. The only obligation of the group with respect to the retirement benefit plan is to make 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 30\tProvisions
NOK thousand | 2024 | 2023 |
Severance indemnity funds in Italy | 9\u00a0227 | 8\u00a0145 |
Other provisions | 2\u00a0484 | 2\u00a0540 |
Total provision | 11\u00a0710 | 10\u00a0685 |
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 31.12.2024, all funds estimated as long term (2-4+ years).
Provisions
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 31\tOther current liabilities
NOK thousand | 2024 | 2023 |
Employer tax and employee withholding tax | 21\u00a0064 | 24\u00a0302 |
Accrued holiday payments and bonuses | 25\u00a0266 | 30\u00a0640 |
VAT liabilities | 11\u00a0674 | 9\u00a0632 |
Remaining part of acq.price, Integra | 0 | 7\u00a0441 |
Accrued restructuring cost | 7\u00a0841 | 0 |
Other short term liabilities | 16\u00a0061 | 11\u00a0855 |
Total other current liabilities | 81\u00a0906 | 83\u00a0869 |
Note 32\tTransactions with related parties
During 2024, the Company has paid consultancy fees to Company One AS, a company related to the Chairman of the Board, H\u00e5kon Reistad Fure and legal fees to Ro Sommernes Advokatfirma DA, a company in relation to BoD member Herik A. Christensen.
During 2023 and 2024, rent for office in UK was paid to MDB & Sons Ltd, a company related to an employee of Arribatec UK Ltd (former Integra Associated Ltd).
NOK thousand | 2024 | 2023 |
Transactions with related parties | ||
Company One AS - consultancy | 625 | 0 |
Ro Sommernes Advokatfirma DA - legal services | 206 | 0 |
MDB & Sons Ltd - office rental, Leicester | 453 | 481 |
Total Related parties transactions | 1\u00a0284 | 481 |
Note 33\tPledged assets
All the Nordic subsidiaries of the Group (Norway, Sweden and Denmark are part of the security package for the revolving credit facility, see Note 28. The subsidiaries that are part of the security package are guaran-tors and have granted a share pledge and a bank account pledge.
Note 34\tShare issue and warrants
On 2 December 2024, an extraordinary general meeting decided on a rights issue of 350 million shares at a subscription price of NOK 0.10 per share. The shares were traded exclusively on the subscription right from 3 December, and the new share capital was registered on 7 February 2025. The rights share issue was fully underwritten, and the same extraordinary general meeting decided to offer 150 million warrants to the underwriters as compensation for the underwriting services (1 warrant gives right to subscribe 1 share). The same extraordinary general meeting decided to offer the Board of Directors to subscribe for 60 million shares in connection with the rights issue at a subscription price of NOK 0.10 per share and receive 60 million warrants. Each warrant gives the right to subscribe to one share for NOK 0.10 per share. A total of 210 million warrants are freely tradable and may be exercised at any time until 27 January 2026, and any unexercised warrant will be forfeited after this.
The Company judges that the subscription rights and warrants offered to the Board of Directors had a grant date and were fully vested on 2 December 2024 according to IFRS 2. The fair value of the total 120 million subscription rights and warrants has been estimated to be NOK 3.1 million based on a Theoretical Ex-Rights Price (TERP). TERP is used due to the significant theoretical dilution effect of the rights issue, which a market price (stock price) does not reflect. Hence, the use of TERP is the consensus view to use. The estimated fair value has been recognised as an employee expense with offset to equity. It has also been calculated a social security tax on this with NOK 0.6 million on 31 December 2024.
The share issues will be recognised in 2025. The estimated value of the underwriting services will be a net zero effect directly to equity in 2025.
Note 35\tSubsequent events
After 31 December 2024, the following highlights have occurred:
On 2 December 2024, an extraordinary general meeting of Arribatec decided on a capital reduction by reducing the par value from NOK 2.80 to NOK 0.10 per share. The reduction took place after the end of the creditor notice period on 27 January 2025. Furthermore, a rights issue, directed to all existing shareholders and to BoD members, in addition to warrants to a group of underwriters and the Board of Directors, that subscribed under the Board of Directors share issue was completed on 6 February 2025. The share issue resulted in NOK 41m cash.
On 4 March 2025, the Company announced that they had signed an agreement to divest Arribatec Marine to Star Information System. The closing of the sale took place on 18 March 2025 at a valuation of NOK 24.6 million. On 14 March the company announced that they successfully completed the divestment of Arribatec Hospitality for an equity valuation of NOK 12.5 million. An estimated gain from these sales are NOK 14.5 million.
Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries as \u201cthe Group\u201d, have been prepared in accordance with IFRS Accounting Standards as adopted by the EU, relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated financial accounts are presented in NOK.
All figures presented in this annual report have been rounded and consequently, the sum of individual figures can deviate from the total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. In 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. In an extraordinary general meeting held 2 December 2024, a rights issue of up to 350 million new shares with preferential subscription rights for existing shareholders to raise gross proceeds of up to NOK 35 million and an additional Director offering of 60 million new shares at NOK 6 million were approved. The share issue took place in February 2025. Furthermore, in March 2025, Arribatec announced that they completed the divestment of both the Arribatec Hospitality and the Arribatec Marine segments at an equity valuation of NOK 12.5 million and NOK 24.6 million respectively. Together this supports the going concern assumption.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__18": { "value": "Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries as \u201cthe Group\u201d, have been prepared in accordance with IFRS Accounting Standards as adopted by the EU, relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated financial accounts are presented in NOK.
All figures presented in this annual report have been rounded and consequently, the sum of individual figures can deviate from the total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. In 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. In an extraordinary general meeting held 2 December 2024, a rights issue of up to 350 million new shares with preferential subscription rights for existing shareholders to raise gross proceeds of up to NOK 35 million and an additional Director offering of 60 million new shares at NOK 6 million were approved. The share issue took place in February 2025. Furthermore, in March 2025, Arribatec announced that they completed the divestment of both the Arribatec Hospitality and the Arribatec Marine segments at an equity valuation of NOK 12.5 million and NOK 24.6 million respectively. Together this supports the going concern assumption.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__19": { "value": "Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries as \u201cthe Group\u201d, have been prepared in accordance with IFRS Accounting Standards as adopted by the EU, relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated financial accounts are presented in NOK.
All figures presented in this annual report have been rounded and consequently, the sum of individual figures can deviate from the total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. In 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. In an extraordinary general meeting held 2 December 2024, a rights issue of up to 350 million new shares with preferential subscription rights for existing shareholders to raise gross proceeds of up to NOK 35 million and an additional Director offering of 60 million new shares at NOK 6 million were approved. The share issue took place in February 2025. Furthermore, in March 2025, Arribatec announced that they completed the divestment of both the Arribatec Hospitality and the Arribatec Marine segments at an equity valuation of NOK 12.5 million and NOK 24.6 million respectively. Together this supports the going concern assumption.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__20-1": { "value": "Note 2\tBasis for preparation
The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries as \u201cthe Group\u201d, have been prepared in accordance with IFRS Accounting Standards as adopted by the EU, relevant interpretations, and the Norwegian Accounting Act. The Parent company has NOK as its functional currency. The consolidated financial accounts are presented in NOK.
All figures presented in this annual report have been rounded and consequently, the sum of individual figures can deviate from the total figure.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. In 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. In an extraordinary general meeting held 2 December 2024, a rights issue of up to 350 million new shares with preferential subscription rights for existing shareholders to raise gross proceeds of up to NOK 35 million and an additional Director offering of 60 million new shares at NOK 6 million were approved. The share issue took place in February 2025. Furthermore, in March 2025, Arribatec announced that they completed the divestment of both the Arribatec Hospitality and the Arribatec Marine segments at an equity valuation of NOK 12.5 million and NOK 24.6 million respectively. Together this supports the going concern assumption.
Note 4\tRevenue
Consulting services
Consulting services mainly come from time and material projects. Revenue is recognised as revenue as they are delivered to the customer every month.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the company\u2019s obligations to provide those rights. IFRS 15 distinguishes whether the license provides a \u201dright-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 analysed 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 it is 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 servers), 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 license 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 revenue when the customer has received legal title and physical possession and has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec licenses cloud-based subscription licenses (\u201cright-to-access\u201d), the licenses are 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 perfor-mance 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 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 accordingly recognised over time as the installation and integration are performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premise 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 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 geographic information, revenue has been based on the geographic location of the legal entity. The table shows external revenue.
Full year 2024
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 166\u00a0578 | 199\u00a0758 | 35\u00a0190 | 401\u00a0526 |
Business services | 75\u00a0554 | 56\u00a0063 | 3\u00a0427 | 135\u00a0044 |
EA & BPM | 66\u00a0515 | 32\u00a0147 | 5\u00a0503 | 104\u00a0165 |
Cloud | 11\u00a0577 | 104\u00a0862 | 14\u00a0224 | 130\u00a0663 |
Hospitality | 12\u00a0932 | 6\u00a0686 | 12\u00a0035 | 31\u00a0653 |
Corporate | 0 | 0 | 0 | 0 |
Continental Europe | 61\u00a0365 | 21\u00a0814 | 3\u00a0224 | 86\u00a0403 |
Business services | 40\u00a0636 | 13\u00a0197 | 614 | 54\u00a0447 |
Marine | 20\u00a0729 | 8\u00a0617 | 2\u00a0610 | 31\u00a0956 |
UK | 43\u00a0371 | 23\u00a0105 | 1\u00a0780 | 68\u00a0255 |
Business services | 43\u00a0323 | 23\u00a0105 | 1\u00a0780 | 68\u00a0208 |
Cloud | 48 | 0 | 0 | 48 |
Americas | 11\u00a0971 | 6\u00a0578 | 0 | 18\u00a0549 |
Business services | 7\u00a0859 | 0 | 0 | 7\u00a0859 |
Marine | 4\u00a0112 | 6\u00a0578 | 0 | 10\u00a0690 |
Total revenue | 283\u00a0285 | 251\u00a0255 | 40\u00a0193 | 574\u00a0733 |
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 |
Note 5\tSegment
The market for Arribatec\u2019s Software and services is global. The chief decision maker will follow up on revenue and profitability on a global basis, segmented into the Business Areas (BAs). 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 Note 4.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to the tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations, and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customising, maintaining, and supporting the entire business landscape, with ERP as the core engine. We integrate it with other marked 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 sectors.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk, and GDPR. Arribatec Cloud also 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 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.
2024
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 273\u00a0492 | 106\u00a0346 | 142\u00a0308 | 31\u00a0653 | 42\u00a0646 | 453 | (22\u00a0165) | 574\u00a0733 |
Materials, software and services | (43\u00a0149) | (28\u00a0293) | (73\u00a0572) | (16\u00a0687) | (5\u00a0088) | (2\u00a0080) | 22\u00a0185 | (146\u00a0684) |
Gross margin | 230\u00a0343 | 78\u00a0052 | 68\u00a0736 | 14\u00a0967 | 37\u00a0558 | (1\u00a0628) | 20 | 428\u00a0048 |
Salary and personnel costs | (186\u00a0829) | (63\u00a0697) | (50\u00a0468) | (14\u00a0873) | (26\u00a0437) | (26\u00a0967) | (0) | (369\u00a0272) |
Other operating expenses | (20\u00a0938) | (7\u00a0158) | (8\u00a0972) | (6\u00a0810) | (3\u00a0968) | (26\u00a0136) | (20) | (74\u00a0002) |
Total operating expenses | (207\u00a0768) | (70\u00a0855) | (59\u00a0439) | (21\u00a0683) | (30\u00a0404) | (53\u00a0103) | (20) | (443\u00a0273) |
EBITDA | 22\u00a0575 | 7\u00a0197 | 9\u00a0297 | (6\u00a0716) | 7\u00a0154 | (54\u00a0730) | 0 | (15\u00a0225) |
Depreciation, amortisarion and impairment | (15\u00a0533) | (7\u00a0240) | (11\u00a0078) | (26\u00a0602) | (7\u00a0330) | (2\u00a0241) | 0 | (70\u00a0025) |
EBIT | 7\u00a0042 | (43) | (1\u00a0781) | (33\u00a0319) | (177) | (56\u00a0971) | 0 | (85\u00a0249) |
Gross margin % | 84.2% | 73.4% | 48.3% | 47.3% | 88.1% | na | na | 74.5% |
EBITDA % | 8.3% | 6.8% | 6.5% | (21.2%) | 16.8% | na | na | (2.6%) |
EBIT % | 2.6% | 0.0% | (1.3%) | (105.3%) | (0.4%) | na | na | (14.8%) |
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%) |
Note 7\tPersonnel
NOK thousand | 2024 | 2023 |
Salaries | (282\u00a0689) | (271\u00a0802) |
Social security tax | (48\u00a0347) | (42\u00a0480) |
Bonuses | (1\u00a0959) | (6\u00a0752) |
Share option cost (Note27) | (3\u00a0155) | (620) |
Pension costs defined contribution (Note29) | (22\u00a0037) | (20\u00a0105) |
Capitalised work preformed | 7\u00a0390 | 12\u00a0750 |
Other personnel cost | (18\u00a0475) | (17\u00a0600) |
Total salaries and personnel expense | (369\u00a0272) | (346\u00a0608) |
Average number of FTEs
2024 | 2023 | |
Number os FTEs, start of year | 329 | 374 |
Number os FTEs, end of year | 314 | 329 |
Average number of FTEs | 321 | 352 |
Gender split, end of year | ||
Male | 220 | 215 |
Female | 94 | 114 |
Number of FTEs, end of year, per country
2024 | 2023 | |
Cyprus | 3 | 3 |
Denmark | 1 | 1 |
France | 4 | 4 |
Italy | 28 | 28 |
Norway | 202 | 208 |
Singapore | 1 | 1 |
Spain | 24 | 25 |
Sweden | 15 | 16 |
United Kingdom | 33 | 33 |
USA | 3 | 11 |
Total number of FTEs | 314 | 329 |
Pension obligations
The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 27for further description. The group only has defined contribution retire-ment plans.
Note 10\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.
2024
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2024 | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Additions | 1\u00a0526 | 0 | 55 | 1\u00a0581 |
Disposals | (2\u00a0132) | (615) | (255) | (3\u00a0002) |
Translation difference | 586 | 187 | 39 | 813 |
Cost, end of period | 18\u00a0353 | 4\u00a0529 | 1\u00a0661 | 24\u00a0543 |
Accumulated depreciation at 1 Jan 2024 | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Depreciation during the year | (2\u00a0191) | (854) | (159) | (3\u00a0204) |
Disposals | 2\u00a0132 | 615 | 255 | 3\u00a0002 |
Translation difference | (539) | (115) | (29) | (683) |
Accumulated depreciation, end of period | (15\u00a0539) | (3\u00a0114) | (947) | (19\u00a0599) |
Carrying amount at 31 Dec 2024 | 2\u00a0815 | 1\u00a0415 | 714 | 4\u00a0944 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
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 |
Note 11\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 contracts with less than twelve months durtion) and leases for low-value assets, these are expensed in P&L as they occur.
Leases that fulfil the criteria are recognised in the balance 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 terminate 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 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 |
Right-of-use assets per 1 Jan 2024 | 22\u00a0665 | 620 | 1\u00a0299 | 3\u00a0856 | 28\u00a0442 |
Addition of right-of-use assets | 5\u00a0108 | 1\u00a0142 | 7\u00a0348 | 5\u00a0048 | 18\u00a0646 |
Depreciation in the period | (11\u00a0543) | (553) | (3\u00a0471) | (2\u00a0402) | (17\u00a0969) |
Disposals | (109) | 0 | (107) | (2\u00a0586) | (2\u00a0802) |
Translation difference | 207 | 39 | 0 | 0 | 246 |
Carrying amount of right-of-use assets, end of period | 16\u00a0328 | 1\u00a0248 | 5\u00a0069 | 3\u00a0917 | 26\u00a0563 |
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 2024 | 31 Dec 2023 |
Undiscounted lease liabilities and maturity of cash outflow | ||
< 1 year | 15\u00a0180 | 13\u00a0609 |
1-2 years | 7\u00a0966 | 9\u00a0421 |
2-3 years | 3\u00a0639 | 5\u00a0344 |
3-4 years | 1\u00a0748 | 2\u00a0064 |
4-5 years | 620 | 546 |
Total undiscounted lease liabilities, end of period | 29\u00a0153 | 30\u00a0984 |
Discount element | (1\u00a0463) | (1\u00a0239) |
Total discounted lease liabilities, end of period | 27\u00a0690 | 29\u00a0745 |
NOK thousand | 31 Dec 2024 | 31 Dec 2023 |
Total lease liabilities, end of period | 27\u00a0690 | 29\u00a0745 |
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 13for interest expenses related to leasing contracts.
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 14\tTax
Arribatec accounts 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 recognises 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, recognising them to the extent of probable future taxable profit availability or utilisation of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognised 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 the calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
Deferred tax assets
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Tax losses carried forward, not recognised, mainly relates to companies abroad and Arribatec Hospitality, while recognised deferred tax assets relates to proven profit-making entities within the Norwegian tax jurisdiction. There is a clear expectation that the Norwegian entities will deliver positive taxable results and be able to utilise the deferred tax losses carried forward.
NOK thousand | 2024 | 2023 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 57 | 2\u00a0597 |
Correction previous year - Norway | 31 | (7) |
Current Income Tax - Other countries | 62 | 2\u00a0762 |
Correction previous year - other countries | (62) | (59) |
Deferred tax | ||
Change in deferred taxes - Norway | (8\u00a0685) | (10\u00a0392) |
Change in deferred taxes - Other countries | (18) | (1\u00a0900) |
Tax income recorded in consolidated statement of Profit & Loss | (8\u00a0616) | (6\u00a0998) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (91\u00a0329) | (30\u00a0050) |
Adjustment of current income tax of previous years | (27) | 3 |
Temporary differences | (14\u00a0930) | (2\u00a0336) |
Non deductible expenses | 8\u00a0504 | 1\u00a0113 |
Non-taxable income | (2\u00a0958) | (367) |
Tax base | (100\u00a0740) | (31\u00a0637) |
NOK thousand | 2024 | 2023 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 22\u00a0163 | 6\u00a0960 |
Tax previous year | (30) | (65) |
Group contribution with tax effect (tax payable effect) | (1\u00a0738) | (2\u00a0576) |
Group contribution with tax effect (deferred tax effect) | 1\u00a0738 | 2\u00a0576 |
Changes in recognised deferred taxes | (8\u00a0704) | (12\u00a0292) |
Effect from previously unrecognised deferred taxes | 0 | (1\u00a0607) |
Different tax rates applied in foreign jurisdictions | (22\u00a0045) | 6 |
Tax income at effective tax rate | (8\u00a0616) | (6\u00a0998) |
Effective tax rate | 9.4% | 23.3% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 47\u00a0007 | 23\u00a0756 |
Property, plant and equipment | 143 | 79 |
Intangible assets | 52 | 1\u00a0492 |
Receivable | (241) | (123) |
Other provisions | 1\u00a0322 | 316 |
Leases | 150 | 105 |
Deferred tax on intangible assets from business combinations | 2\u00a0654 | 3\u00a0141 |
Tax losses carried forward, not recognised | (31\u00a0322) | (17\u00a0556) |
Deferred taxes, net | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, recognised | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, not recognised | 31\u00a0322 | 17\u00a0556 |
NOK thousand | 2024 | 2023 |
Reconciliation to balance sheet | ||
Deferred tax assets | 25\u00a0388 | 18\u00a0998 |
Deferred tax liabilities | (5\u00a0623) | (7\u00a0786) |
Net Deferred tax assets (liabilities) | 19\u00a0764 | 11\u00a0212 |
Note 16\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 184.3m as of 31 December 2024 (NOK 206.5m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 11.3 million as per 31 December 2024 (NOK 31.8m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortised, ref Note12.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually. An impairment related to goodwill on CGU Hospitality has been recognised with NOK 24.4 million.
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.
2024
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 0 | 66\u00a0361 | 158\u00a0568 |
UK | 0 | 20\u00a0959 | 0 | 0 | 0 | 20\u00a0959 |
Italy | 0 | 0 | 4\u00a0731 | 0 | 0 | 4\u00a0731 |
Total | 56\u00a0622 | 56\u00a0544 | 4\u00a0731 | 0 | 66\u00a0361 | 184\u00a0258 |
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 |
Cash flow projections and assumptions
A five-year forecast for discounted cash flows plus a 2.0% terminal value growth rate was used to determine the 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 future cash flows is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents manage-ment\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 sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2024 | 2023 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.82% | 4.48% | 3.47% | 3.0% | 4.25% | 3.70% |
Market risk premium | 5.0% | 5.0% | 5.0% | 7.0% | 7.0% | 7.0% |
Equity Beta | 1.01 | 1.01 | 1.01 | 1.61 | 1.61 | 1.61 |
Small cap | 5.0% | 5.0% | 5.0% | 3.0% | 3.0% | 3.0% |
Cost of equity | 13.9% | 14.5% | 13.5% | 9.4% | 9.4% | 9.4% |
Credit spread | 2.75% | 2.75% | 2.75% | 3.00% | 3.00% | 3.00% |
After tax cost debt | 6.57% | 7.23% | 6.22% | 4.80% | 4.80% | 4.80% |
Equity weight | 88.9% | 88.9% | 88.9% | 90.1% | 90.1% | 90.1% |
WACC (pre tax) | 13.1% | 13.7% | 12.7% | 15.4% | 14.9% | 17.0% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2025 and estimates from 2026-2028 and a terminal growth rate of 2%. The average growth rates in the estimated period 2025-2028 for each Business Area are:
2024 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 6% | 6% | 5% | (13%) | 5% |
Average Gross profit margin | 5.8% | 6.2% | 3.6% | (15.7%) | 3.9% |
Average EBITDA margin | 6% | 5% | 13% | 27% | 11% |
Compared to the same assumptions in 2023 we see a decline in the growth assumptions. This is explained by Arribatec's focus on profitability first and using modest growth assumptions as the basis for impairment tests. The management's evaluation of future growth is grounded in an analysis that combines historical data, strategic planning, market, strategic focus, initiatives and financial modeling.
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% |
Sensitivity
On 31 December 2024, 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 17\tBusiness Combinations
During 2023 or 2024, Arribatec did not acquire any shares in compa-nies. However, an earn-out related to the acquisition of the subsidiary Arribatec UK (formerly Integra) was setteled in Jnauary 2024. During 2021, Arribatec acquired shares in the companies mentioned below and consequently controls the subsidiaries from the date of acquisi-tion. 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 Note16.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 22\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 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.
Contract assets
Contract assets are recognised for performance obligations satisfied 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 receivable, 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 | 2024 | 2023 |
As of 1 January | 24\u00a0244 | 16\u00a0276 |
Performance obligations met | 45\u00a0437 | 42\u00a0789 |
Reclassified to receivables | (44\u00a0724) | (35\u00a0305) |
Translation difference | (417) | 484 |
Total contract assets | 25\u00a0434 | 24\u00a0244 |
It is expected that 97% of the above contract assets will be reclassi-fied to receivables in 2025 and 3% in 2026.
The expected credit losses on contract 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 below:
NOK thousand | 2024 | 2023 |
As of 1 January | 24\u00a0319 | 16\u00a0476 |
Deferred revenue | 130\u00a0200 | 101\u00a0264 |
Recognised as revenue in P&L | (129\u00a0705) | (94\u00a0227) |
Translation difference | 1\u00a0009 | 806 |
Total contract liabilities | 25\u00a0824 | 24\u00a0319 |
Contract liabilities are mainly invoiced to customers in advance and relating to 2025. All liabilities per 1 January were recognised as revenue in P&L during the year.
Note 30\tProvisions
NOK thousand | 2024 | 2023 |
Severance indemnity funds in Italy | 9\u00a0227 | 8\u00a0145 |
Other provisions | 2\u00a0484 | 2\u00a0540 |
Total provision | 11\u00a0710 | 10\u00a0685 |
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 31.12.2024, all funds estimated as long term (2-4+ years).
Provisions
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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__21": { "value": "The financial accounts for Arribatec Group ASA as \u201cthe Parent company\u201d together with its controlled subsidiaries as \u201cthe Group\u201d, have been prepared in accordance with IFRS Accounting Standards as adopted by the EU, relevant interpretations, and the Norwegian Accounting Act. ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__22-1": { "value": "The Parent company has NOK as its functional currency. The consolidated financial accounts are presented in NOK.All figures presented in this annual report have been rounded and consequently, the sum of individual figures can deviate from the total figure.
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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__23": { "value": "The Parent company has NOK as its functional currency. The consolidated financial accounts are presented in NOK.All figures presented in this annual report have been rounded and consequently, the sum of individual figures can deviate from the total figure.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__24": { "value": "Note 3\tChanges in Accounting Policies and disclosures for the 2024 calendar year or thereafter
Arribatec has not implemented any new accounting standards or otherwise made any changes to accounting policies during 2024.
In 2024, the International Accounting Standards Board (IASB) introduced two significant standards \u2013 IFRS 18 Presentation and Disclosure in Financial Statements, and IFRS 19 Subsidiaries without Public Accountability: Disclosures \u2013 which are effective in 2027.
IFRS 18 will have an impact on the presentation of Arribatec Group accounts but as per today, the extent is currently not concluded.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__25": { "value": "Note 3\tChanges in Accounting Policies and disclosures for the 2024 calendar year or thereafter
Arribatec has not implemented any new accounting standards or otherwise made any changes to accounting policies during 2024.
In 2024, the International Accounting Standards Board (IASB) introduced two significant standards \u2013 IFRS 18 Presentation and Disclosure in Financial Statements, and IFRS 19 Subsidiaries without Public Accountability: Disclosures \u2013 which are effective in 2027.
IFRS 18 will have an impact on the presentation of Arribatec Group accounts but as per today, the extent is currently not concluded.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__30": { "value": "Note 4\tRevenue
Consulting services
Consulting services mainly come from time and material projects. Revenue is recognised as revenue as they are delivered to the customer every month.
Recurring revenue
Sale of licenses
A license establishes the customer\u2019s rights related to a company\u2019s intellectual property (IP) and the company\u2019s obligations to provide those rights. IFRS 15 distinguishes whether the license provides a \u201dright-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 analysed 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 it is 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 servers), 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 license 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 revenue when the customer has received legal title and physical possession and has accepted the license. Generally, this is at the beginning of the license period.
When Arribatec licenses cloud-based subscription licenses (\u201cright-to-access\u201d), the licenses are 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 perfor-mance 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 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 accordingly recognised over time as the installation and integration are performed based on the hours worked.
Managed services
Under the managed services contracts Arribatec helps customers operate their IT environments, either on-premise 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 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 geographic information, revenue has been based on the geographic location of the legal entity. The table shows external revenue.
Full year 2024
NOK thousand | Consulting services | Recurring Revenue | One-time revenue | Total |
Norway | 166\u00a0578 | 199\u00a0758 | 35\u00a0190 | 401\u00a0526 |
Business services | 75\u00a0554 | 56\u00a0063 | 3\u00a0427 | 135\u00a0044 |
EA & BPM | 66\u00a0515 | 32\u00a0147 | 5\u00a0503 | 104\u00a0165 |
Cloud | 11\u00a0577 | 104\u00a0862 | 14\u00a0224 | 130\u00a0663 |
Hospitality | 12\u00a0932 | 6\u00a0686 | 12\u00a0035 | 31\u00a0653 |
Corporate | 0 | 0 | 0 | 0 |
Continental Europe | 61\u00a0365 | 21\u00a0814 | 3\u00a0224 | 86\u00a0403 |
Business services | 40\u00a0636 | 13\u00a0197 | 614 | 54\u00a0447 |
Marine | 20\u00a0729 | 8\u00a0617 | 2\u00a0610 | 31\u00a0956 |
UK | 43\u00a0371 | 23\u00a0105 | 1\u00a0780 | 68\u00a0255 |
Business services | 43\u00a0323 | 23\u00a0105 | 1\u00a0780 | 68\u00a0208 |
Cloud | 48 | 0 | 0 | 48 |
Americas | 11\u00a0971 | 6\u00a0578 | 0 | 18\u00a0549 |
Business services | 7\u00a0859 | 0 | 0 | 7\u00a0859 |
Marine | 4\u00a0112 | 6\u00a0578 | 0 | 10\u00a0690 |
Total revenue | 283\u00a0285 | 251\u00a0255 | 40\u00a0193 | 574\u00a0733 |
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 |
Consulting services
Consulting services mainly come from time and material projects. Revenue is recognised as revenue as they are delivered to the customer every month.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__28-1": { "value": "Consulting services
Consulting services mainly come from time and material projects. Revenue is recognised as revenue as they are delivered to the customer every month.
Note 22\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 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.
Contract assets
Contract assets are recognised for performance obligations satisfied 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 receivable, 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 | 2024 | 2023 |
As of 1 January | 24\u00a0244 | 16\u00a0276 |
Performance obligations met | 45\u00a0437 | 42\u00a0789 |
Reclassified to receivables | (44\u00a0724) | (35\u00a0305) |
Translation difference | (417) | 484 |
Total contract assets | 25\u00a0434 | 24\u00a0244 |
It is expected that 97% of the above contract assets will be reclassi-fied to receivables in 2025 and 3% in 2026.
The expected credit losses on contract 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 below:
NOK thousand | 2024 | 2023 |
As of 1 January | 24\u00a0319 | 16\u00a0476 |
Deferred revenue | 130\u00a0200 | 101\u00a0264 |
Recognised as revenue in P&L | (129\u00a0705) | (94\u00a0227) |
Translation difference | 1\u00a0009 | 806 |
Total contract liabilities | 25\u00a0824 | 24\u00a0319 |
Contract liabilities are mainly invoiced to customers in advance and relating to 2025. All liabilities per 1 January were recognised as revenue in P&L during the year.
Consulting services
Consulting services mainly come from time and material projects. Revenue is recognised as revenue as they are delivered to the customer every month.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__33": { "value": "Note 5\tSegment
The market for Arribatec\u2019s Software and services is global. The chief decision maker will follow up on revenue and profitability on a global basis, segmented into the Business Areas (BAs). 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 Note 4.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to the tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations, and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customising, maintaining, and supporting the entire business landscape, with ERP as the core engine. We integrate it with other marked 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 sectors.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk, and GDPR. Arribatec Cloud also 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 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.
2024
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 273\u00a0492 | 106\u00a0346 | 142\u00a0308 | 31\u00a0653 | 42\u00a0646 | 453 | (22\u00a0165) | 574\u00a0733 |
Materials, software and services | (43\u00a0149) | (28\u00a0293) | (73\u00a0572) | (16\u00a0687) | (5\u00a0088) | (2\u00a0080) | 22\u00a0185 | (146\u00a0684) |
Gross margin | 230\u00a0343 | 78\u00a0052 | 68\u00a0736 | 14\u00a0967 | 37\u00a0558 | (1\u00a0628) | 20 | 428\u00a0048 |
Salary and personnel costs | (186\u00a0829) | (63\u00a0697) | (50\u00a0468) | (14\u00a0873) | (26\u00a0437) | (26\u00a0967) | (0) | (369\u00a0272) |
Other operating expenses | (20\u00a0938) | (7\u00a0158) | (8\u00a0972) | (6\u00a0810) | (3\u00a0968) | (26\u00a0136) | (20) | (74\u00a0002) |
Total operating expenses | (207\u00a0768) | (70\u00a0855) | (59\u00a0439) | (21\u00a0683) | (30\u00a0404) | (53\u00a0103) | (20) | (443\u00a0273) |
EBITDA | 22\u00a0575 | 7\u00a0197 | 9\u00a0297 | (6\u00a0716) | 7\u00a0154 | (54\u00a0730) | 0 | (15\u00a0225) |
Depreciation, amortisarion and impairment | (15\u00a0533) | (7\u00a0240) | (11\u00a0078) | (26\u00a0602) | (7\u00a0330) | (2\u00a0241) | 0 | (70\u00a0025) |
EBIT | 7\u00a0042 | (43) | (1\u00a0781) | (33\u00a0319) | (177) | (56\u00a0971) | 0 | (85\u00a0249) |
Gross margin % | 84.2% | 73.4% | 48.3% | 47.3% | 88.1% | na | na | 74.5% |
EBITDA % | 8.3% | 6.8% | 6.5% | (21.2%) | 16.8% | na | na | (2.6%) |
EBIT % | 2.6% | 0.0% | (1.3%) | (105.3%) | (0.4%) | na | na | (14.8%) |
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%) |
Note 5\tSegment
The market for Arribatec\u2019s Software and services is global. The chief decision maker will follow up on revenue and profitability on a global basis, segmented into the Business Areas (BAs). 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 Note 4.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to the tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations, and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customising, maintaining, and supporting the entire business landscape, with ERP as the core engine. We integrate it with other marked 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 sectors.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk, and GDPR. Arribatec Cloud also 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 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.
2024
NOK thousand | Business services | EA & BPM | Cloud | Hospitality | Marine | Corporate | Eliminations | Total |
Revenue | 273\u00a0492 | 106\u00a0346 | 142\u00a0308 | 31\u00a0653 | 42\u00a0646 | 453 | (22\u00a0165) | 574\u00a0733 |
Materials, software and services | (43\u00a0149) | (28\u00a0293) | (73\u00a0572) | (16\u00a0687) | (5\u00a0088) | (2\u00a0080) | 22\u00a0185 | (146\u00a0684) |
Gross margin | 230\u00a0343 | 78\u00a0052 | 68\u00a0736 | 14\u00a0967 | 37\u00a0558 | (1\u00a0628) | 20 | 428\u00a0048 |
Salary and personnel costs | (186\u00a0829) | (63\u00a0697) | (50\u00a0468) | (14\u00a0873) | (26\u00a0437) | (26\u00a0967) | (0) | (369\u00a0272) |
Other operating expenses | (20\u00a0938) | (7\u00a0158) | (8\u00a0972) | (6\u00a0810) | (3\u00a0968) | (26\u00a0136) | (20) | (74\u00a0002) |
Total operating expenses | (207\u00a0768) | (70\u00a0855) | (59\u00a0439) | (21\u00a0683) | (30\u00a0404) | (53\u00a0103) | (20) | (443\u00a0273) |
EBITDA | 22\u00a0575 | 7\u00a0197 | 9\u00a0297 | (6\u00a0716) | 7\u00a0154 | (54\u00a0730) | 0 | (15\u00a0225) |
Depreciation, amortisarion and impairment | (15\u00a0533) | (7\u00a0240) | (11\u00a0078) | (26\u00a0602) | (7\u00a0330) | (2\u00a0241) | 0 | (70\u00a0025) |
EBIT | 7\u00a0042 | (43) | (1\u00a0781) | (33\u00a0319) | (177) | (56\u00a0971) | 0 | (85\u00a0249) |
Gross margin % | 84.2% | 73.4% | 48.3% | 47.3% | 88.1% | na | na | 74.5% |
EBITDA % | 8.3% | 6.8% | 6.5% | (21.2%) | 16.8% | na | na | (2.6%) |
EBIT % | 2.6% | 0.0% | (1.3%) | (105.3%) | (0.4%) | na | na | (14.8%) |
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%) |
The market for Arribatec\u2019s Software and services is global. The chief decision maker will follow up on revenue and profitability on a global basis, segmented into the Business Areas (BAs). 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 Note 4.
The management of the Group follows up the revenue, EBITDA and EBIT by Business Area and geography according to the tables below.
Business servicesare focusing on ERP, BI & Analytics, DevOps, integrations, and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customising, maintaining, and supporting the entire business landscape, with ERP as the core engine. We integrate it with other marked 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 sectors.
Cloudprovides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk, and GDPR. Arribatec Cloud also 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 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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__35": { "value": "Note 6\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the cost occur.
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.
NOK thousand | 2024 | 2023 |
Hired consultans | (27\u00a0269) | (40\u00a0302) |
Hardware for resale | (19\u00a0945) | (8\u00a0999) |
Software for resale | (86\u00a0506) | (66\u00a0896) |
Other | (12\u00a0963) | (16\u00a0475) |
Total materials, software and services | (146\u00a0684) | (132\u00a0673) |
Note 6\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the cost occur.
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.
NOK thousand | 2024 | 2023 |
Hired consultans | (27\u00a0269) | (40\u00a0302) |
Hardware for resale | (19\u00a0945) | (8\u00a0999) |
Software for resale | (86\u00a0506) | (66\u00a0896) |
Other | (12\u00a0963) | (16\u00a0475) |
Total materials, software and services | (146\u00a0684) | (132\u00a0673) |
Note 7\tPersonnel
NOK thousand | 2024 | 2023 |
Salaries | (282\u00a0689) | (271\u00a0802) |
Social security tax | (48\u00a0347) | (42\u00a0480) |
Bonuses | (1\u00a0959) | (6\u00a0752) |
Share option cost (Note27) | (3\u00a0155) | (620) |
Pension costs defined contribution (Note29) | (22\u00a0037) | (20\u00a0105) |
Capitalised work preformed | 7\u00a0390 | 12\u00a0750 |
Other personnel cost | (18\u00a0475) | (17\u00a0600) |
Total salaries and personnel expense | (369\u00a0272) | (346\u00a0608) |
Average number of FTEs
2024 | 2023 | |
Number os FTEs, start of year | 329 | 374 |
Number os FTEs, end of year | 314 | 329 |
Average number of FTEs | 321 | 352 |
Gender split, end of year | ||
Male | 220 | 215 |
Female | 94 | 114 |
Number of FTEs, end of year, per country
2024 | 2023 | |
Cyprus | 3 | 3 |
Denmark | 1 | 1 |
France | 4 | 4 |
Italy | 28 | 28 |
Norway | 202 | 208 |
Singapore | 1 | 1 |
Spain | 24 | 25 |
Sweden | 15 | 16 |
United Kingdom | 33 | 33 |
USA | 3 | 11 |
Total number of FTEs | 314 | 329 |
Pension obligations
The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 27for further description. The group only has defined contribution retire-ment plans.
Note 9\tOther operating expenses
NOK thousand | 2024 | 2023 |
Marketing cost | (3\u00a0817) | (4\u00a0966) |
Rental and leasing cost1 | (6\u00a0904) | (8\u00a0145) |
Travel cost | (7\u00a0895) | (11\u00a0348) |
Fees for external services | (20\u00a0525) | (18\u00a0784) |
IT and communication cost | (16\u00a0973) | (16\u00a0992) |
Restructuring cost | (10\u00a0142) | 0 |
Other operating cost2 | (7\u00a0745) | (9\u00a0001) |
Total operating expenses | (74\u00a0002) | (69\u00a0236) |
1Includes common costs related to premises, such as electricity, cleaning, moving costs and contracts of lower value and/or shorter than 12 months. There are no leasing contracts with lower value and/or short than 12 months.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
On 27 September 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. Following this, the Company underwent a restructuring initiative with a one-time restructuring cost of NOK 10.1m in Q4-24, of which 7.8m relates to cost with cash effect in 2025. A total of 25 FTEs were made redundant, with the savings coming into effect from Q2-2025. Restructuring provisions are recognised only when the Group has a constructive obligation, which is when there is a detailed formal plan that identifies the business or part of the business concerned, the location and number of employees affected, the detailed estimate of the associated costs, and the timeline and the employees affected have been notified of the plan\u2019s main features.
NOK thousand | 2024 | 2023 |
Specification of auditor\u2019s fee | ||
Statutory audit | (3\u00a0337) | (1\u00a0224) |
Other assurance services | (55) | (11) |
Other non-assurance services | (207) | (132) |
Total | (3\u00a0598) | (1\u00a0366) |
Note 6\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the cost occur.
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.
NOK thousand | 2024 | 2023 |
Hired consultans | (27\u00a0269) | (40\u00a0302) |
Hardware for resale | (19\u00a0945) | (8\u00a0999) |
Software for resale | (86\u00a0506) | (66\u00a0896) |
Other | (12\u00a0963) | (16\u00a0475) |
Total materials, software and services | (146\u00a0684) | (132\u00a0673) |
Note 9\tOther operating expenses
NOK thousand | 2024 | 2023 |
Marketing cost | (3\u00a0817) | (4\u00a0966) |
Rental and leasing cost1 | (6\u00a0904) | (8\u00a0145) |
Travel cost | (7\u00a0895) | (11\u00a0348) |
Fees for external services | (20\u00a0525) | (18\u00a0784) |
IT and communication cost | (16\u00a0973) | (16\u00a0992) |
Restructuring cost | (10\u00a0142) | 0 |
Other operating cost2 | (7\u00a0745) | (9\u00a0001) |
Total operating expenses | (74\u00a0002) | (69\u00a0236) |
1Includes common costs related to premises, such as electricity, cleaning, moving costs and contracts of lower value and/or shorter than 12 months. There are no leasing contracts with lower value and/or short than 12 months.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
On 27 September 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. Following this, the Company underwent a restructuring initiative with a one-time restructuring cost of NOK 10.1m in Q4-24, of which 7.8m relates to cost with cash effect in 2025. A total of 25 FTEs were made redundant, with the savings coming into effect from Q2-2025. Restructuring provisions are recognised only when the Group has a constructive obligation, which is when there is a detailed formal plan that identifies the business or part of the business concerned, the location and number of employees affected, the detailed estimate of the associated costs, and the timeline and the employees affected have been notified of the plan\u2019s main features.
NOK thousand | 2024 | 2023 |
Specification of auditor\u2019s fee | ||
Statutory audit | (3\u00a0337) | (1\u00a0224) |
Other assurance services | (55) | (11) |
Other non-assurance services | (207) | (132) |
Total | (3\u00a0598) | (1\u00a0366) |
Note 6\tMaterials, software and services
Materials, software and services represent the external cost of operations and are expensed when the cost occur.
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.
NOK thousand | 2024 | 2023 |
Hired consultans | (27\u00a0269) | (40\u00a0302) |
Hardware for resale | (19\u00a0945) | (8\u00a0999) |
Software for resale | (86\u00a0506) | (66\u00a0896) |
Other | (12\u00a0963) | (16\u00a0475) |
Total materials, software and services | (146\u00a0684) | (132\u00a0673) |
Note 7\tPersonnel
NOK thousand | 2024 | 2023 |
Salaries | (282\u00a0689) | (271\u00a0802) |
Social security tax | (48\u00a0347) | (42\u00a0480) |
Bonuses | (1\u00a0959) | (6\u00a0752) |
Share option cost (Note27) | (3\u00a0155) | (620) |
Pension costs defined contribution (Note29) | (22\u00a0037) | (20\u00a0105) |
Capitalised work preformed | 7\u00a0390 | 12\u00a0750 |
Other personnel cost | (18\u00a0475) | (17\u00a0600) |
Total salaries and personnel expense | (369\u00a0272) | (346\u00a0608) |
Average number of FTEs
2024 | 2023 | |
Number os FTEs, start of year | 329 | 374 |
Number os FTEs, end of year | 314 | 329 |
Average number of FTEs | 321 | 352 |
Gender split, end of year | ||
Male | 220 | 215 |
Female | 94 | 114 |
Number of FTEs, end of year, per country
2024 | 2023 | |
Cyprus | 3 | 3 |
Denmark | 1 | 1 |
France | 4 | 4 |
Italy | 28 | 28 |
Norway | 202 | 208 |
Singapore | 1 | 1 |
Spain | 24 | 25 |
Sweden | 15 | 16 |
United Kingdom | 33 | 33 |
USA | 3 | 11 |
Total number of FTEs | 314 | 329 |
Pension obligations
The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 27for further description. The group only has defined contribution retire-ment plans.
Note 29\tPensions
Arribatec group meets the different local mandatory occupational pension requirements.
Arribatec operates defined contribution retirement benefit plans for all qualifying employees of its subsid-iaries in Norway, Sweden and Denmark. The only obligation of the group with respect to the retirement benefit plan is to make 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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__41": { "value": "The Group\u2019s pension obligations vary between countries depending on the local legislation and different pension systems, please see Note 27for further description. The group only has defined contribution retire-ment plans.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__44": { "value": "Note 8\tKey management
The Group Management consists of the Group Directors. Group Directors are the CEO, COO, CFO, CPOO and CCO, 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. The amounts presented are the total part of the salary in the period, 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 the remuneration report for details on the bonus and share option program concerning management.
Management remuneration 2024
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 | 6 | 207 | 104 | 4\u00a0317 |
Ole Jakob Kj\u00f8lvik - COO (until Aug-24) | 0 | 0 | 1\u00a0072 | 0 | 10 | 104 | 69 | 1\u00a0254 |
Bente Brocks - CFO (interim) | 0 | 0 | 1\u00a0784 | 0 | 6 | 186 | 104 | 2\u00a0081 |
Erik Sundet - Group IT director (50% mgmt) | 0 | 0 | 1\u00a0252 | 0 | 24 | 155 | 88 | 1\u00a0519 |
P\u00e5l Stueflotten - CCO | 0 | 0 | 1\u00a0200 | 433 | 49 | 155 | 104 | 1\u00a0942 |
Solfrid Bu\u00f8 - CPOO | 0 | 0 | 1\u00a0500 | 0 | 6 | 155 | 104 | 1\u00a0765 |
Management total | 0 | 0 | 10\u00a0807 | 433 | 102 | 963 | 574 | 12\u00a0879 |
Members of the Board | ||||||||
H\u00e5kon Reistad Fure - Chairman (from Dec-24) | 24 | 3 | 0 | 0 | 0 | 0 | 0 | 28 |
Martin Nes - Chairman (until Nov-24) | 252 | 37 | 0 | 0 | 0 | 0 | 0 | 289 |
Henrik Christensen - Member (from Dec-24) | 20 | 0 | 0 | 0 | 0 | 0 | 0 | 20 |
\u00d8ystein S. Spetalen - Member (until Nov-24) | 208 | 0 | 0 | 0 | 0 | 0 | 0 | 208 |
Kristin Hellebust - Member | 226 | 35 | 0 | 0 | 0 | 0 | 0 | 261 |
Linn Katrine H\u00f8ie - Member | 228 | 0 | 0 | 0 | 0 | 0 | 0 | 228 |
Terje Mj\u00f8s - Member1 | 169 | 35 | 0 | 0 | 0 | 0 | 0 | 204 |
Members of the Board total | 1\u00a0126 | 110 | 0 | 0 | 0 | 0 | 0 | 1\u00a0236 |
Total salaries and personnel expense | 1\u00a0126 | 110 | 10\u00a0807 | 433 | 102 | 963 | 574 | 14\u00a0115 |
1Received NOK 57.5k less than he should in 2024, this is compensated in 2025
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 (until 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 |
The following remuneration has been made to the members of the nomination committee during the year:
NOK thousand | 2024 | 2023 |
Nomination committee | ||
Espen Lundaas - Chairman | 20 | |
\u00d8ystein Tvenge - Member1 | 0 | |
Total | 20 |
1Compensation for 2021-2024 paid 2024
Note 9\tOther operating expenses
NOK thousand | 2024 | 2023 |
Marketing cost | (3\u00a0817) | (4\u00a0966) |
Rental and leasing cost1 | (6\u00a0904) | (8\u00a0145) |
Travel cost | (7\u00a0895) | (11\u00a0348) |
Fees for external services | (20\u00a0525) | (18\u00a0784) |
IT and communication cost | (16\u00a0973) | (16\u00a0992) |
Restructuring cost | (10\u00a0142) | 0 |
Other operating cost2 | (7\u00a0745) | (9\u00a0001) |
Total operating expenses | (74\u00a0002) | (69\u00a0236) |
1Includes common costs related to premises, such as electricity, cleaning, moving costs and contracts of lower value and/or shorter than 12 months. There are no leasing contracts with lower value and/or short than 12 months.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
On 27 September 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. Following this, the Company underwent a restructuring initiative with a one-time restructuring cost of NOK 10.1m in Q4-24, of which 7.8m relates to cost with cash effect in 2025. A total of 25 FTEs were made redundant, with the savings coming into effect from Q2-2025. Restructuring provisions are recognised only when the Group has a constructive obligation, which is when there is a detailed formal plan that identifies the business or part of the business concerned, the location and number of employees affected, the detailed estimate of the associated costs, and the timeline and the employees affected have been notified of the plan\u2019s main features.
NOK thousand | 2024 | 2023 |
Specification of auditor\u2019s fee | ||
Statutory audit | (3\u00a0337) | (1\u00a0224) |
Other assurance services | (55) | (11) |
Other non-assurance services | (207) | (132) |
Total | (3\u00a0598) | (1\u00a0366) |
Note 9\tOther operating expenses
NOK thousand | 2024 | 2023 |
Marketing cost | (3\u00a0817) | (4\u00a0966) |
Rental and leasing cost1 | (6\u00a0904) | (8\u00a0145) |
Travel cost | (7\u00a0895) | (11\u00a0348) |
Fees for external services | (20\u00a0525) | (18\u00a0784) |
IT and communication cost | (16\u00a0973) | (16\u00a0992) |
Restructuring cost | (10\u00a0142) | 0 |
Other operating cost2 | (7\u00a0745) | (9\u00a0001) |
Total operating expenses | (74\u00a0002) | (69\u00a0236) |
1Includes common costs related to premises, such as electricity, cleaning, moving costs and contracts of lower value and/or shorter than 12 months. There are no leasing contracts with lower value and/or short than 12 months.
2Includes coursing, representation cost, mobile usage for employees, insurance premiums and other office expense
On 27 September 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. Following this, the Company underwent a restructuring initiative with a one-time restructuring cost of NOK 10.1m in Q4-24, of which 7.8m relates to cost with cash effect in 2025. A total of 25 FTEs were made redundant, with the savings coming into effect from Q2-2025. Restructuring provisions are recognised only when the Group has a constructive obligation, which is when there is a detailed formal plan that identifies the business or part of the business concerned, the location and number of employees affected, the detailed estimate of the associated costs, and the timeline and the employees affected have been notified of the plan\u2019s main features.
NOK thousand | 2024 | 2023 |
Specification of auditor\u2019s fee | ||
Statutory audit | (3\u00a0337) | (1\u00a0224) |
Other assurance services | (55) | (11) |
Other non-assurance services | (207) | (132) |
Total | (3\u00a0598) | (1\u00a0366) |
Note 10\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.
2024
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2024 | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Additions | 1\u00a0526 | 0 | 55 | 1\u00a0581 |
Disposals | (2\u00a0132) | (615) | (255) | (3\u00a0002) |
Translation difference | 586 | 187 | 39 | 813 |
Cost, end of period | 18\u00a0353 | 4\u00a0529 | 1\u00a0661 | 24\u00a0543 |
Accumulated depreciation at 1 Jan 2024 | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Depreciation during the year | (2\u00a0191) | (854) | (159) | (3\u00a0204) |
Disposals | 2\u00a0132 | 615 | 255 | 3\u00a0002 |
Translation difference | (539) | (115) | (29) | (683) |
Accumulated depreciation, end of period | (15\u00a0539) | (3\u00a0114) | (947) | (19\u00a0599) |
Carrying amount at 31 Dec 2024 | 2\u00a0815 | 1\u00a0415 | 714 | 4\u00a0944 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
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 |
Note 10\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.
2024
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2024 | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Additions | 1\u00a0526 | 0 | 55 | 1\u00a0581 |
Disposals | (2\u00a0132) | (615) | (255) | (3\u00a0002) |
Translation difference | 586 | 187 | 39 | 813 |
Cost, end of period | 18\u00a0353 | 4\u00a0529 | 1\u00a0661 | 24\u00a0543 |
Accumulated depreciation at 1 Jan 2024 | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Depreciation during the year | (2\u00a0191) | (854) | (159) | (3\u00a0204) |
Disposals | 2\u00a0132 | 615 | 255 | 3\u00a0002 |
Translation difference | (539) | (115) | (29) | (683) |
Accumulated depreciation, end of period | (15\u00a0539) | (3\u00a0114) | (947) | (19\u00a0599) |
Carrying amount at 31 Dec 2024 | 2\u00a0815 | 1\u00a0415 | 714 | 4\u00a0944 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
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 |
Note 10\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.
2024
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2024 | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Additions | 1\u00a0526 | 0 | 55 | 1\u00a0581 |
Disposals | (2\u00a0132) | (615) | (255) | (3\u00a0002) |
Translation difference | 586 | 187 | 39 | 813 |
Cost, end of period | 18\u00a0353 | 4\u00a0529 | 1\u00a0661 | 24\u00a0543 |
Accumulated depreciation at 1 Jan 2024 | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Depreciation during the year | (2\u00a0191) | (854) | (159) | (3\u00a0204) |
Disposals | 2\u00a0132 | 615 | 255 | 3\u00a0002 |
Translation difference | (539) | (115) | (29) | (683) |
Accumulated depreciation, end of period | (15\u00a0539) | (3\u00a0114) | (947) | (19\u00a0599) |
Carrying amount at 31 Dec 2024 | 2\u00a0815 | 1\u00a0415 | 714 | 4\u00a0944 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
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 |
Note 10\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.
2024
NOK thousand | Office equipment | Fixtures and fittings | Other | Total |
Cost at 1 Jan 2024 | 18\u00a0373 | 4\u00a0956 | 1\u00a0821 | 25\u00a0151 |
Additions | 1\u00a0526 | 0 | 55 | 1\u00a0581 |
Disposals | (2\u00a0132) | (615) | (255) | (3\u00a0002) |
Translation difference | 586 | 187 | 39 | 813 |
Cost, end of period | 18\u00a0353 | 4\u00a0529 | 1\u00a0661 | 24\u00a0543 |
Accumulated depreciation at 1 Jan 2024 | (14\u00a0941) | (2\u00a0760) | (1\u00a0014) | (18\u00a0715) |
Depreciation during the year | (2\u00a0191) | (854) | (159) | (3\u00a0204) |
Disposals | 2\u00a0132 | 615 | 255 | 3\u00a0002 |
Translation difference | (539) | (115) | (29) | (683) |
Accumulated depreciation, end of period | (15\u00a0539) | (3\u00a0114) | (947) | (19\u00a0599) |
Carrying amount at 31 Dec 2024 | 2\u00a0815 | 1\u00a0415 | 714 | 4\u00a0944 |
Useful life | 5-10 yrs | 5 yrs | 5 yrs |
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 |
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 11\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 contracts with less than twelve months durtion) and leases for low-value assets, these are expensed in P&L as they occur.
Leases that fulfil the criteria are recognised in the balance 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 terminate 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 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 |
Right-of-use assets per 1 Jan 2024 | 22\u00a0665 | 620 | 1\u00a0299 | 3\u00a0856 | 28\u00a0442 |
Addition of right-of-use assets | 5\u00a0108 | 1\u00a0142 | 7\u00a0348 | 5\u00a0048 | 18\u00a0646 |
Depreciation in the period | (11\u00a0543) | (553) | (3\u00a0471) | (2\u00a0402) | (17\u00a0969) |
Disposals | (109) | 0 | (107) | (2\u00a0586) | (2\u00a0802) |
Translation difference | 207 | 39 | 0 | 0 | 246 |
Carrying amount of right-of-use assets, end of period | 16\u00a0328 | 1\u00a0248 | 5\u00a0069 | 3\u00a0917 | 26\u00a0563 |
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 2024 | 31 Dec 2023 |
Undiscounted lease liabilities and maturity of cash outflow | ||
< 1 year | 15\u00a0180 | 13\u00a0609 |
1-2 years | 7\u00a0966 | 9\u00a0421 |
2-3 years | 3\u00a0639 | 5\u00a0344 |
3-4 years | 1\u00a0748 | 2\u00a0064 |
4-5 years | 620 | 546 |
Total undiscounted lease liabilities, end of period | 29\u00a0153 | 30\u00a0984 |
Discount element | (1\u00a0463) | (1\u00a0239) |
Total discounted lease liabilities, end of period | 27\u00a0690 | 29\u00a0745 |
NOK thousand | 31 Dec 2024 | 31 Dec 2023 |
Total lease liabilities, end of period | 27\u00a0690 | 29\u00a0745 |
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 13for 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 contracts with less than twelve months durtion) and leases for low-value assets, these are expensed in P&L as they occur.
Leases that fulfil the criteria are recognised in the balance 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 terminate 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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__58": { "value": "Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Note 12\tIntangible assets
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. In 2023, Arribatec received government grants of NOK 0.6m in the form of SkatteFUNN in relation to a development project. This project was not active 2024 and no grants were received.
Excess values
Goodwill and customer relations are pure excess values and are explained in Note 16. The main part of technical software is also related to intangible excess values IB, Italy.
For Impairment testing on Goodwill, see Note 16. The conducted impairment test applies to all intangible assets.
Custom software
Custom software consists of internally developed software. Technical software are other intangible assets and trademarks.
Research and Development cost
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Customer relationships and technical assets
Customer relationships and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calcu-lated 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.
Note | Key accounting estimates and judgements | Nature of accounting impact | |
16 | Goodwill | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
12 | Other intangible assets | Assumptions used in value-in-use calculations for for impairment testing | Estimate |
11 | Other tangible assets | Estimate of useful lives of right-to-use assets | Estimate |
22 | Contract work in progress | Estimates used in determining performance obligations | Estimate |
30 | Provisions | Assumptions regarding provi-sions | Estimate |
Goodwill
The group annually tests whether goodwill has suffered any impair-ment or more frequently if impairment indicators are identified. The recoverable amount of the cash-generating units has been deter-mined 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 16Impairment.
2024
NOK thousand | Goodwill | Customer relations | Other intangible assets; Custom software | Other intangible assets; Technical software | Other intangible assets; Licenses | Total |
Cost at 1 Jan 2024 | 206\u00a0457 | 58\u00a0340 | 57\u00a0438 | 16\u00a0839 | 11\u00a0303 | 350\u00a0377 |
Additions | 0 | 0 | 716 | 0 | 0 | 716 |
Additions - internally developed | 0 | 0 | 7\u00a0392 | 0 | 0 | 7\u00a0392 |
Impairment1 | (24\u00a0416) | 0 | 0 | 0 | 0 | (24\u00a0416) |
Disposals | 0 | (7\u00a0000) | (2\u00a0727) | (2\u00a0541) | 0 | (12\u00a0268) |
Translation difference | 2\u00a0217 | 1\u00a0920 | 909 | 669 | 20 | 5\u00a0736 |
Cost, end of period | 184\u00a0258 | 53\u00a0260 | 63\u00a0729 | 14\u00a0968 | 11\u00a0324 | 327\u00a0537 |
Accumulated amortisations at 1 Jan 2024 | 0 | (34\u00a0215) | (24\u00a0845) | (11\u00a0446) | (5\u00a0518) | (76\u00a0024) |
Amortisation | 0 | (11\u00a0197) | (8\u00a0656) | (2\u00a0842) | (1\u00a0741) | (24\u00a0436) |
Disposals | 0 | 7\u00a0000 | 2\u00a0727 | 2\u00a0541 | 0 | 12\u00a0268 |
Translation difference | 0 | (1\u00a0019) | (607) | (447) | (18) | (2\u00a0091) |
Accumulated amortisation and impairment, end of period | 0 | (39\u00a0431) | (31\u00a0381) | (12\u00a0194) | (7\u00a0278) | (90\u00a0283) |
Carrying amount at 31 Dec 2024 | 184\u00a0258 | 13\u00a0829 | 32\u00a0348 | 2\u00a0773 | 4\u00a0046 | 237\u00a0254 |
Useful life | Infinite | 5 yrs | 5\u201310 yrs | 5 yrs | 3\u201310 yrs |
1Impairment in relation to CGU Hospitality
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
Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__61": { "value": "Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__62-1": { "value": "Development expenditures are capitalised 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 amortised 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 capitalisation are expensed as incurred.
The development expenditures that do not meet the criteria for capi-talisation are recognised as salary and personnel expenses and other operating expenses in profit and loss.
The Group distinct between development and maintenance. Expenditure after the internally generated software is ready to be used in customer deliveries is recognised as an operating mainte-nance cost in the profit and loss statement.
Note 16\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 184.3m as of 31 December 2024 (NOK 206.5m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 11.3 million as per 31 December 2024 (NOK 31.8m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortised, ref Note12.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually. An impairment related to goodwill on CGU Hospitality has been recognised with NOK 24.4 million.
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.
2024
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 0 | 66\u00a0361 | 158\u00a0568 |
UK | 0 | 20\u00a0959 | 0 | 0 | 0 | 20\u00a0959 |
Italy | 0 | 0 | 4\u00a0731 | 0 | 0 | 4\u00a0731 |
Total | 56\u00a0622 | 56\u00a0544 | 4\u00a0731 | 0 | 66\u00a0361 | 184\u00a0258 |
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 |
Cash flow projections and assumptions
A five-year forecast for discounted cash flows plus a 2.0% terminal value growth rate was used to determine the 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 future cash flows is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents manage-ment\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 sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2024 | 2023 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.82% | 4.48% | 3.47% | 3.0% | 4.25% | 3.70% |
Market risk premium | 5.0% | 5.0% | 5.0% | 7.0% | 7.0% | 7.0% |
Equity Beta | 1.01 | 1.01 | 1.01 | 1.61 | 1.61 | 1.61 |
Small cap | 5.0% | 5.0% | 5.0% | 3.0% | 3.0% | 3.0% |
Cost of equity | 13.9% | 14.5% | 13.5% | 9.4% | 9.4% | 9.4% |
Credit spread | 2.75% | 2.75% | 2.75% | 3.00% | 3.00% | 3.00% |
After tax cost debt | 6.57% | 7.23% | 6.22% | 4.80% | 4.80% | 4.80% |
Equity weight | 88.9% | 88.9% | 88.9% | 90.1% | 90.1% | 90.1% |
WACC (pre tax) | 13.1% | 13.7% | 12.7% | 15.4% | 14.9% | 17.0% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2025 and estimates from 2026-2028 and a terminal growth rate of 2%. The average growth rates in the estimated period 2025-2028 for each Business Area are:
2024 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 6% | 6% | 5% | (13%) | 5% |
Average Gross profit margin | 5.8% | 6.2% | 3.6% | (15.7%) | 3.9% |
Average EBITDA margin | 6% | 5% | 13% | 27% | 11% |
Compared to the same assumptions in 2023 we see a decline in the growth assumptions. This is explained by Arribatec's focus on profitability first and using modest growth assumptions as the basis for impairment tests. The management's evaluation of future growth is grounded in an analysis that combines historical data, strategic planning, market, strategic focus, initiatives and financial modeling.
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% |
Sensitivity
On 31 December 2024, 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 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 13\tFinancial items and risks
NOK thousand | 2024 | 2023 |
Finance income | ||
Interest income | 458 | 563 |
Realised foreign exchange gains | 1\u00a0803 | 2\u00a0149 |
Net unrealised foreign exchange gains | 0 | 381 |
Other financial income | 238 | 115 |
Total financial income | 2\u00a0499 | 3\u00a0208 |
Finance expenses | ||
Interest on debts and borrowings | (915) | (1\u00a0161) |
Interest expense on lease liabilities | (1\u00a0179) | (1\u00a0171) |
Realised foreign exchange losses | (1\u00a0581) | (4\u00a0131) |
Net unrealised foreign exchange losses | (1\u00a0511) | 0 |
Other financial expenses | (3\u00a0392) | (2\u00a0952) |
Total financial expenses | (8\u00a0578) | (9\u00a0414) |
Net financial items | (6\u00a0079) | (6\u00a0206) |
Financial risk
In Arribatec, risks like 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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 31.12.2024
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 45.5m on 31 December 2024 (2023: NOK 39.4m). The loan carries a variable interest rate based on the interbank rate in each currency with a margin. Any annual increase or decrease by 100 basis points would increase/decrease the Group\u2019s 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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__82": { "value": "Note 14\tTax
Arribatec accounts 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 recognises 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, recognising them to the extent of probable future taxable profit availability or utilisation of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognised 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 the calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
Deferred tax assets
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Tax losses carried forward, not recognised, mainly relates to companies abroad and Arribatec Hospitality, while recognised deferred tax assets relates to proven profit-making entities within the Norwegian tax jurisdiction. There is a clear expectation that the Norwegian entities will deliver positive taxable results and be able to utilise the deferred tax losses carried forward.
NOK thousand | 2024 | 2023 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 57 | 2\u00a0597 |
Correction previous year - Norway | 31 | (7) |
Current Income Tax - Other countries | 62 | 2\u00a0762 |
Correction previous year - other countries | (62) | (59) |
Deferred tax | ||
Change in deferred taxes - Norway | (8\u00a0685) | (10\u00a0392) |
Change in deferred taxes - Other countries | (18) | (1\u00a0900) |
Tax income recorded in consolidated statement of Profit & Loss | (8\u00a0616) | (6\u00a0998) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (91\u00a0329) | (30\u00a0050) |
Adjustment of current income tax of previous years | (27) | 3 |
Temporary differences | (14\u00a0930) | (2\u00a0336) |
Non deductible expenses | 8\u00a0504 | 1\u00a0113 |
Non-taxable income | (2\u00a0958) | (367) |
Tax base | (100\u00a0740) | (31\u00a0637) |
NOK thousand | 2024 | 2023 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 22\u00a0163 | 6\u00a0960 |
Tax previous year | (30) | (65) |
Group contribution with tax effect (tax payable effect) | (1\u00a0738) | (2\u00a0576) |
Group contribution with tax effect (deferred tax effect) | 1\u00a0738 | 2\u00a0576 |
Changes in recognised deferred taxes | (8\u00a0704) | (12\u00a0292) |
Effect from previously unrecognised deferred taxes | 0 | (1\u00a0607) |
Different tax rates applied in foreign jurisdictions | (22\u00a0045) | 6 |
Tax income at effective tax rate | (8\u00a0616) | (6\u00a0998) |
Effective tax rate | 9.4% | 23.3% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 47\u00a0007 | 23\u00a0756 |
Property, plant and equipment | 143 | 79 |
Intangible assets | 52 | 1\u00a0492 |
Receivable | (241) | (123) |
Other provisions | 1\u00a0322 | 316 |
Leases | 150 | 105 |
Deferred tax on intangible assets from business combinations | 2\u00a0654 | 3\u00a0141 |
Tax losses carried forward, not recognised | (31\u00a0322) | (17\u00a0556) |
Deferred taxes, net | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, recognised | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, not recognised | 31\u00a0322 | 17\u00a0556 |
NOK thousand | 2024 | 2023 |
Reconciliation to balance sheet | ||
Deferred tax assets | 25\u00a0388 | 18\u00a0998 |
Deferred tax liabilities | (5\u00a0623) | (7\u00a0786) |
Net Deferred tax assets (liabilities) | 19\u00a0764 | 11\u00a0212 |
Note 14\tTax
Arribatec accounts 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 recognises 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, recognising them to the extent of probable future taxable profit availability or utilisation of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognised 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 the calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
Deferred tax assets
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Tax losses carried forward, not recognised, mainly relates to companies abroad and Arribatec Hospitality, while recognised deferred tax assets relates to proven profit-making entities within the Norwegian tax jurisdiction. There is a clear expectation that the Norwegian entities will deliver positive taxable results and be able to utilise the deferred tax losses carried forward.
NOK thousand | 2024 | 2023 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 57 | 2\u00a0597 |
Correction previous year - Norway | 31 | (7) |
Current Income Tax - Other countries | 62 | 2\u00a0762 |
Correction previous year - other countries | (62) | (59) |
Deferred tax | ||
Change in deferred taxes - Norway | (8\u00a0685) | (10\u00a0392) |
Change in deferred taxes - Other countries | (18) | (1\u00a0900) |
Tax income recorded in consolidated statement of Profit & Loss | (8\u00a0616) | (6\u00a0998) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (91\u00a0329) | (30\u00a0050) |
Adjustment of current income tax of previous years | (27) | 3 |
Temporary differences | (14\u00a0930) | (2\u00a0336) |
Non deductible expenses | 8\u00a0504 | 1\u00a0113 |
Non-taxable income | (2\u00a0958) | (367) |
Tax base | (100\u00a0740) | (31\u00a0637) |
NOK thousand | 2024 | 2023 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 22\u00a0163 | 6\u00a0960 |
Tax previous year | (30) | (65) |
Group contribution with tax effect (tax payable effect) | (1\u00a0738) | (2\u00a0576) |
Group contribution with tax effect (deferred tax effect) | 1\u00a0738 | 2\u00a0576 |
Changes in recognised deferred taxes | (8\u00a0704) | (12\u00a0292) |
Effect from previously unrecognised deferred taxes | 0 | (1\u00a0607) |
Different tax rates applied in foreign jurisdictions | (22\u00a0045) | 6 |
Tax income at effective tax rate | (8\u00a0616) | (6\u00a0998) |
Effective tax rate | 9.4% | 23.3% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 47\u00a0007 | 23\u00a0756 |
Property, plant and equipment | 143 | 79 |
Intangible assets | 52 | 1\u00a0492 |
Receivable | (241) | (123) |
Other provisions | 1\u00a0322 | 316 |
Leases | 150 | 105 |
Deferred tax on intangible assets from business combinations | 2\u00a0654 | 3\u00a0141 |
Tax losses carried forward, not recognised | (31\u00a0322) | (17\u00a0556) |
Deferred taxes, net | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, recognised | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, not recognised | 31\u00a0322 | 17\u00a0556 |
NOK thousand | 2024 | 2023 |
Reconciliation to balance sheet | ||
Deferred tax assets | 25\u00a0388 | 18\u00a0998 |
Deferred tax liabilities | (5\u00a0623) | (7\u00a0786) |
Net Deferred tax assets (liabilities) | 19\u00a0764 | 11\u00a0212 |
Note 14\tTax
Arribatec accounts 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 recognises 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, recognising them to the extent of probable future taxable profit availability or utilisation of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognised 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 the calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
Deferred tax assets
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Tax losses carried forward, not recognised, mainly relates to companies abroad and Arribatec Hospitality, while recognised deferred tax assets relates to proven profit-making entities within the Norwegian tax jurisdiction. There is a clear expectation that the Norwegian entities will deliver positive taxable results and be able to utilise the deferred tax losses carried forward.
NOK thousand | 2024 | 2023 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 57 | 2\u00a0597 |
Correction previous year - Norway | 31 | (7) |
Current Income Tax - Other countries | 62 | 2\u00a0762 |
Correction previous year - other countries | (62) | (59) |
Deferred tax | ||
Change in deferred taxes - Norway | (8\u00a0685) | (10\u00a0392) |
Change in deferred taxes - Other countries | (18) | (1\u00a0900) |
Tax income recorded in consolidated statement of Profit & Loss | (8\u00a0616) | (6\u00a0998) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (91\u00a0329) | (30\u00a0050) |
Adjustment of current income tax of previous years | (27) | 3 |
Temporary differences | (14\u00a0930) | (2\u00a0336) |
Non deductible expenses | 8\u00a0504 | 1\u00a0113 |
Non-taxable income | (2\u00a0958) | (367) |
Tax base | (100\u00a0740) | (31\u00a0637) |
NOK thousand | 2024 | 2023 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 22\u00a0163 | 6\u00a0960 |
Tax previous year | (30) | (65) |
Group contribution with tax effect (tax payable effect) | (1\u00a0738) | (2\u00a0576) |
Group contribution with tax effect (deferred tax effect) | 1\u00a0738 | 2\u00a0576 |
Changes in recognised deferred taxes | (8\u00a0704) | (12\u00a0292) |
Effect from previously unrecognised deferred taxes | 0 | (1\u00a0607) |
Different tax rates applied in foreign jurisdictions | (22\u00a0045) | 6 |
Tax income at effective tax rate | (8\u00a0616) | (6\u00a0998) |
Effective tax rate | 9.4% | 23.3% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 47\u00a0007 | 23\u00a0756 |
Property, plant and equipment | 143 | 79 |
Intangible assets | 52 | 1\u00a0492 |
Receivable | (241) | (123) |
Other provisions | 1\u00a0322 | 316 |
Leases | 150 | 105 |
Deferred tax on intangible assets from business combinations | 2\u00a0654 | 3\u00a0141 |
Tax losses carried forward, not recognised | (31\u00a0322) | (17\u00a0556) |
Deferred taxes, net | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, recognised | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, not recognised | 31\u00a0322 | 17\u00a0556 |
NOK thousand | 2024 | 2023 |
Reconciliation to balance sheet | ||
Deferred tax assets | 25\u00a0388 | 18\u00a0998 |
Deferred tax liabilities | (5\u00a0623) | (7\u00a0786) |
Net Deferred tax assets (liabilities) | 19\u00a0764 | 11\u00a0212 |
Note 14\tTax
Arribatec accounts 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 recognises 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, recognising them to the extent of probable future taxable profit availability or utilisation of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognised 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 the calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
Deferred tax assets
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Tax losses carried forward, not recognised, mainly relates to companies abroad and Arribatec Hospitality, while recognised deferred tax assets relates to proven profit-making entities within the Norwegian tax jurisdiction. There is a clear expectation that the Norwegian entities will deliver positive taxable results and be able to utilise the deferred tax losses carried forward.
NOK thousand | 2024 | 2023 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 57 | 2\u00a0597 |
Correction previous year - Norway | 31 | (7) |
Current Income Tax - Other countries | 62 | 2\u00a0762 |
Correction previous year - other countries | (62) | (59) |
Deferred tax | ||
Change in deferred taxes - Norway | (8\u00a0685) | (10\u00a0392) |
Change in deferred taxes - Other countries | (18) | (1\u00a0900) |
Tax income recorded in consolidated statement of Profit & Loss | (8\u00a0616) | (6\u00a0998) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (91\u00a0329) | (30\u00a0050) |
Adjustment of current income tax of previous years | (27) | 3 |
Temporary differences | (14\u00a0930) | (2\u00a0336) |
Non deductible expenses | 8\u00a0504 | 1\u00a0113 |
Non-taxable income | (2\u00a0958) | (367) |
Tax base | (100\u00a0740) | (31\u00a0637) |
NOK thousand | 2024 | 2023 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 22\u00a0163 | 6\u00a0960 |
Tax previous year | (30) | (65) |
Group contribution with tax effect (tax payable effect) | (1\u00a0738) | (2\u00a0576) |
Group contribution with tax effect (deferred tax effect) | 1\u00a0738 | 2\u00a0576 |
Changes in recognised deferred taxes | (8\u00a0704) | (12\u00a0292) |
Effect from previously unrecognised deferred taxes | 0 | (1\u00a0607) |
Different tax rates applied in foreign jurisdictions | (22\u00a0045) | 6 |
Tax income at effective tax rate | (8\u00a0616) | (6\u00a0998) |
Effective tax rate | 9.4% | 23.3% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 47\u00a0007 | 23\u00a0756 |
Property, plant and equipment | 143 | 79 |
Intangible assets | 52 | 1\u00a0492 |
Receivable | (241) | (123) |
Other provisions | 1\u00a0322 | 316 |
Leases | 150 | 105 |
Deferred tax on intangible assets from business combinations | 2\u00a0654 | 3\u00a0141 |
Tax losses carried forward, not recognised | (31\u00a0322) | (17\u00a0556) |
Deferred taxes, net | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, recognised | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, not recognised | 31\u00a0322 | 17\u00a0556 |
NOK thousand | 2024 | 2023 |
Reconciliation to balance sheet | ||
Deferred tax assets | 25\u00a0388 | 18\u00a0998 |
Deferred tax liabilities | (5\u00a0623) | (7\u00a0786) |
Net Deferred tax assets (liabilities) | 19\u00a0764 | 11\u00a0212 |
Note 14\tTax
Arribatec accounts 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 recognises 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, recognising them to the extent of probable future taxable profit availability or utilisation of unused tax losses and credits.
The carrying amount of deferred tax assets is reviewed periodically, and unrecognised 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 the calculation of taxable profit.
The Group\u2019s tax is related to continuing operations only, as there are no discontinued operations.
Deferred tax assets
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Tax losses carried forward, not recognised, mainly relates to companies abroad and Arribatec Hospitality, while recognised deferred tax assets relates to proven profit-making entities within the Norwegian tax jurisdiction. There is a clear expectation that the Norwegian entities will deliver positive taxable results and be able to utilise the deferred tax losses carried forward.
NOK thousand | 2024 | 2023 |
Income tax expense | ||
Current tax | ||
Current Income Tax - Norway | 57 | 2\u00a0597 |
Correction previous year - Norway | 31 | (7) |
Current Income Tax - Other countries | 62 | 2\u00a0762 |
Correction previous year - other countries | (62) | (59) |
Deferred tax | ||
Change in deferred taxes - Norway | (8\u00a0685) | (10\u00a0392) |
Change in deferred taxes - Other countries | (18) | (1\u00a0900) |
Tax income recorded in consolidated statement of Profit & Loss | (8\u00a0616) | (6\u00a0998) |
A reconciliation of the tax base | ||
Profit/(loss) before tax | (91\u00a0329) | (30\u00a0050) |
Adjustment of current income tax of previous years | (27) | 3 |
Temporary differences | (14\u00a0930) | (2\u00a0336) |
Non deductible expenses | 8\u00a0504 | 1\u00a0113 |
Non-taxable income | (2\u00a0958) | (367) |
Tax base | (100\u00a0740) | (31\u00a0637) |
NOK thousand | 2024 | 2023 |
A reconciliation of the effective tax rate | ||
Income taxes calculated at the Company's domestic tax rate (22%) | 22\u00a0163 | 6\u00a0960 |
Tax previous year | (30) | (65) |
Group contribution with tax effect (tax payable effect) | (1\u00a0738) | (2\u00a0576) |
Group contribution with tax effect (deferred tax effect) | 1\u00a0738 | 2\u00a0576 |
Changes in recognised deferred taxes | (8\u00a0704) | (12\u00a0292) |
Effect from previously unrecognised deferred taxes | 0 | (1\u00a0607) |
Different tax rates applied in foreign jurisdictions | (22\u00a0045) | 6 |
Tax income at effective tax rate | (8\u00a0616) | (6\u00a0998) |
Effective tax rate | 9.4% | 23.3% |
Tax rate Norway | 22.0% | 22.0% |
Deferred taxes | ||
Tax losses carried forward, accumulated | 47\u00a0007 | 23\u00a0756 |
Property, plant and equipment | 143 | 79 |
Intangible assets | 52 | 1\u00a0492 |
Receivable | (241) | (123) |
Other provisions | 1\u00a0322 | 316 |
Leases | 150 | 105 |
Deferred tax on intangible assets from business combinations | 2\u00a0654 | 3\u00a0141 |
Tax losses carried forward, not recognised | (31\u00a0322) | (17\u00a0556) |
Deferred taxes, net | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, recognised | 19\u00a0764 | 11\u00a0212 |
Deferred taxes, not recognised | 31\u00a0322 | 17\u00a0556 |
NOK thousand | 2024 | 2023 |
Reconciliation to balance sheet | ||
Deferred tax assets | 25\u00a0388 | 18\u00a0998 |
Deferred tax liabilities | (5\u00a0623) | (7\u00a0786) |
Net Deferred tax assets (liabilities) | 19\u00a0764 | 11\u00a0212 |
Note 15\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 |
31 December 2024 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
There was no change in the number of shares or share capital during 2024.
Diluted EPS amounts are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be Issued on the 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 | 2024 | 2023 |
Net profit/(loss) to equity holders | (82\u00a0712\u00a0957) | (23\u00a0052\u00a0518) |
Total | (82\u00a0712\u00a0957) | (23\u00a0052\u00a0518) |
Number of shares (in thousands) | ||
Weighted average number of ordinary shares | 69\u00a0572\u00a0206 | 69\u00a0057\u00a0322 |
Effects of dilution, weighted average | 3\u00a0400\u00a0584 | 371\u00a0097 |
Weighted average number of shares, adjusted for effects of dilution | 72\u00a0972\u00a0790 | 69\u00a0428\u00a0419 |
Basic earnings per share | (1.19) | (0.33) |
Diluted earnings per share1 | (1.19) | (0.33) |
1If Net loss, EPS per Basic and Diliuted share will be equal
In 2023, only part of the original share consideration is included as dilution. Part of the share consideration for Integra was still outstanding. This was settled during 2024.
Effects of dilution
NOK | 2024 | 2023 |
Share consideration outstanding Integra | 0 | 371\u00a0097 |
Share option 2023 Sept program | 3\u00a0148\u00a0995 | 0 |
Share cons. BoD | 251\u00a0589 | 0 |
Note 15\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 |
31 December 2024 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
There was no change in the number of shares or share capital during 2024.
Diluted EPS amounts are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be Issued on the 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 | 2024 | 2023 |
Net profit/(loss) to equity holders | (82\u00a0712\u00a0957) | (23\u00a0052\u00a0518) |
Total | (82\u00a0712\u00a0957) | (23\u00a0052\u00a0518) |
Number of shares (in thousands) | ||
Weighted average number of ordinary shares | 69\u00a0572\u00a0206 | 69\u00a0057\u00a0322 |
Effects of dilution, weighted average | 3\u00a0400\u00a0584 | 371\u00a0097 |
Weighted average number of shares, adjusted for effects of dilution | 72\u00a0972\u00a0790 | 69\u00a0428\u00a0419 |
Basic earnings per share | (1.19) | (0.33) |
Diluted earnings per share1 | (1.19) | (0.33) |
1If Net loss, EPS per Basic and Diliuted share will be equal
In 2023, only part of the original share consideration is included as dilution. Part of the share consideration for Integra was still outstanding. This was settled during 2024.
Effects of dilution
NOK | 2024 | 2023 |
Share consideration outstanding Integra | 0 | 371\u00a0097 |
Share option 2023 Sept program | 3\u00a0148\u00a0995 | 0 |
Share cons. BoD | 251\u00a0589 | 0 |
Note 27\tLong term incentive plan
During 2023, a long-term incentive plan in the form of a share-based remuneration program was launched within Arribatec, with the intention to incentivise 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 on 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 in 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 annualised 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 | 2024 | 2023 |
Cost of employee share option program | 3\u00a0153\u00a0718 | 619\u00a0924 |
Total Social security provisions | 0 | 0 |
Granted instruments
Option | ||
Instrument | 2024 | 2023 |
Quantity, End of period (instruments) | 3\u00a0084\u00a0700 | 3\u00a0303\u00a0240 |
Quantity, End of period (shares) | 3\u00a0084\u00a0700 | 3\u00a0303\u00a0240 |
Contractual life\u200c1 | 5.00 | 5.00 |
Strike price\u200c1 | 5.25 | 5.25 |
Share price\u200c1 | 4.63 | 4.63 |
Expected lifetime\u200c1 | 3.00 | 3.00 |
Volatility\u200c1 | 65.66% | 65.66% |
Interest rate\u200c1 | 3\u00a0965% | 3\u00a0965% |
Dividend\u200c1 | 0.00 | 0.00 |
FV per instrument\u200c1 | 1.97 | 1.97 |
1Weighted average parameters at grant of instrument
Outstanding instruments Year End - Option
Quantity and weighted average prices | Number of instruments | Weighted Average Strike Price | Number of instruments | Weighted Average Strike Price |
Activity | 01.01.2024 - 31.12.2024 | 01.01.2023 - 31.12.2023 | ||
Outstanding OB | 3\u00a0303\u00a0240 | 5.25 | 0 | 0.00 |
Granted | 0 | 0.00 | 3\u00a0303\u00a0240 | 5.25 |
Exercised | 0 | 0.00 | 0 | 0.00 |
Released | 0 | 0.00 | 0 | 0.00 |
Adjusted | 0 | 0.00 | 0 | 0.00 |
Performance Adjusted | 0 | 0.00 | 0 | 0.00 |
Cancelled | 0 | 0.00 | 0 | 0.00 |
Terminated | (218\u00a0540) | 5.25 | 0 | 0.00 |
Expired | 0 | 0.00 | 0 | 0.00 |
Outstanding CB | 3\u00a0084\u00a0700 | 5.25 | 3\u00a0303\u00a0240 | 5.25 |
Vested CB | 1\u00a0028\u00a0231 | 5.00 | 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\u00a0028\u00a0231 | 3.84 | 5.00 | 1\u00a0028\u00a0231 | 5.00 |
5.25 | 1\u00a0028\u00a0234 | 3.84 | 5.25 | 0 | 0.00 |
5.50 | 1\u00a0028\u00a0235 | 3.84 | 5.50 | 0 | 0.00 |
3\u00a0084\u00a0700 |
Note 16\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 184.3m as of 31 December 2024 (NOK 206.5m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 11.3 million as per 31 December 2024 (NOK 31.8m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortised, ref Note12.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually. An impairment related to goodwill on CGU Hospitality has been recognised with NOK 24.4 million.
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.
2024
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 0 | 66\u00a0361 | 158\u00a0568 |
UK | 0 | 20\u00a0959 | 0 | 0 | 0 | 20\u00a0959 |
Italy | 0 | 0 | 4\u00a0731 | 0 | 0 | 4\u00a0731 |
Total | 56\u00a0622 | 56\u00a0544 | 4\u00a0731 | 0 | 66\u00a0361 | 184\u00a0258 |
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 |
Cash flow projections and assumptions
A five-year forecast for discounted cash flows plus a 2.0% terminal value growth rate was used to determine the 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 future cash flows is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents manage-ment\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 sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2024 | 2023 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.82% | 4.48% | 3.47% | 3.0% | 4.25% | 3.70% |
Market risk premium | 5.0% | 5.0% | 5.0% | 7.0% | 7.0% | 7.0% |
Equity Beta | 1.01 | 1.01 | 1.01 | 1.61 | 1.61 | 1.61 |
Small cap | 5.0% | 5.0% | 5.0% | 3.0% | 3.0% | 3.0% |
Cost of equity | 13.9% | 14.5% | 13.5% | 9.4% | 9.4% | 9.4% |
Credit spread | 2.75% | 2.75% | 2.75% | 3.00% | 3.00% | 3.00% |
After tax cost debt | 6.57% | 7.23% | 6.22% | 4.80% | 4.80% | 4.80% |
Equity weight | 88.9% | 88.9% | 88.9% | 90.1% | 90.1% | 90.1% |
WACC (pre tax) | 13.1% | 13.7% | 12.7% | 15.4% | 14.9% | 17.0% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2025 and estimates from 2026-2028 and a terminal growth rate of 2%. The average growth rates in the estimated period 2025-2028 for each Business Area are:
2024 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 6% | 6% | 5% | (13%) | 5% |
Average Gross profit margin | 5.8% | 6.2% | 3.6% | (15.7%) | 3.9% |
Average EBITDA margin | 6% | 5% | 13% | 27% | 11% |
Compared to the same assumptions in 2023 we see a decline in the growth assumptions. This is explained by Arribatec's focus on profitability first and using modest growth assumptions as the basis for impairment tests. The management's evaluation of future growth is grounded in an analysis that combines historical data, strategic planning, market, strategic focus, initiatives and financial modeling.
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% |
Sensitivity
On 31 December 2024, 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 16\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 184.3m as of 31 December 2024 (NOK 206.5m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 11.3 million as per 31 December 2024 (NOK 31.8m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortised, ref Note12.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually. An impairment related to goodwill on CGU Hospitality has been recognised with NOK 24.4 million.
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.
2024
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 0 | 66\u00a0361 | 158\u00a0568 |
UK | 0 | 20\u00a0959 | 0 | 0 | 0 | 20\u00a0959 |
Italy | 0 | 0 | 4\u00a0731 | 0 | 0 | 4\u00a0731 |
Total | 56\u00a0622 | 56\u00a0544 | 4\u00a0731 | 0 | 66\u00a0361 | 184\u00a0258 |
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 |
Cash flow projections and assumptions
A five-year forecast for discounted cash flows plus a 2.0% terminal value growth rate was used to determine the 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 future cash flows is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents manage-ment\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 sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2024 | 2023 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.82% | 4.48% | 3.47% | 3.0% | 4.25% | 3.70% |
Market risk premium | 5.0% | 5.0% | 5.0% | 7.0% | 7.0% | 7.0% |
Equity Beta | 1.01 | 1.01 | 1.01 | 1.61 | 1.61 | 1.61 |
Small cap | 5.0% | 5.0% | 5.0% | 3.0% | 3.0% | 3.0% |
Cost of equity | 13.9% | 14.5% | 13.5% | 9.4% | 9.4% | 9.4% |
Credit spread | 2.75% | 2.75% | 2.75% | 3.00% | 3.00% | 3.00% |
After tax cost debt | 6.57% | 7.23% | 6.22% | 4.80% | 4.80% | 4.80% |
Equity weight | 88.9% | 88.9% | 88.9% | 90.1% | 90.1% | 90.1% |
WACC (pre tax) | 13.1% | 13.7% | 12.7% | 15.4% | 14.9% | 17.0% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2025 and estimates from 2026-2028 and a terminal growth rate of 2%. The average growth rates in the estimated period 2025-2028 for each Business Area are:
2024 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 6% | 6% | 5% | (13%) | 5% |
Average Gross profit margin | 5.8% | 6.2% | 3.6% | (15.7%) | 3.9% |
Average EBITDA margin | 6% | 5% | 13% | 27% | 11% |
Compared to the same assumptions in 2023 we see a decline in the growth assumptions. This is explained by Arribatec's focus on profitability first and using modest growth assumptions as the basis for impairment tests. The management's evaluation of future growth is grounded in an analysis that combines historical data, strategic planning, market, strategic focus, initiatives and financial modeling.
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% |
Sensitivity
On 31 December 2024, 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 16\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 184.3m as of 31 December 2024 (NOK 206.5m). Other intangible assets related to excess values in the Group accounts are customer relations and software, with a carrying amount of NOK 11.3 million as per 31 December 2024 (NOK 31.8m).
Only goodwill has an indefinite lifetime, all other intangible assets are amortised, ref Note12.
Goodwill is tested for impairment for each cash generating unit (CGU) prior to preparation of the annual accounts. The test is performed annually. An impairment related to goodwill on CGU Hospitality has been recognised with NOK 24.4 million.
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.
2024
NOK thousand | Cloud | BizS | Marine | Hospitality | EA&BPM | Total |
Norway | 56\u00a0622 | 35\u00a0585 | 0 | 0 | 66\u00a0361 | 158\u00a0568 |
UK | 0 | 20\u00a0959 | 0 | 0 | 0 | 20\u00a0959 |
Italy | 0 | 0 | 4\u00a0731 | 0 | 0 | 4\u00a0731 |
Total | 56\u00a0622 | 56\u00a0544 | 4\u00a0731 | 0 | 66\u00a0361 | 184\u00a0258 |
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 |
Cash flow projections and assumptions
A five-year forecast for discounted cash flows plus a 2.0% terminal value growth rate was used to determine the 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 future cash flows is based on the financial budget for one year, approved by the Board of Directors. The budget in combination with the forecasts represents manage-ment\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 sensitive when it comes to the following assumptions:
Discount rate
The input data for the WACC is gathered from external sources.
2024 | 2023 | |||||
Norway | UK | Italy | Norway | UK | Italy | |
Risk free interest rate | 3.82% | 4.48% | 3.47% | 3.0% | 4.25% | 3.70% |
Market risk premium | 5.0% | 5.0% | 5.0% | 7.0% | 7.0% | 7.0% |
Equity Beta | 1.01 | 1.01 | 1.01 | 1.61 | 1.61 | 1.61 |
Small cap | 5.0% | 5.0% | 5.0% | 3.0% | 3.0% | 3.0% |
Cost of equity | 13.9% | 14.5% | 13.5% | 9.4% | 9.4% | 9.4% |
Credit spread | 2.75% | 2.75% | 2.75% | 3.00% | 3.00% | 3.00% |
After tax cost debt | 6.57% | 7.23% | 6.22% | 4.80% | 4.80% | 4.80% |
Equity weight | 88.9% | 88.9% | 88.9% | 90.1% | 90.1% | 90.1% |
WACC (pre tax) | 13.1% | 13.7% | 12.7% | 15.4% | 14.9% | 17.0% |
The average growth rate and EBITDA margin assumptions are based on historical experience and perfor-mance as well as market analysis used for budget 2025 and estimates from 2026-2028 and a terminal growth rate of 2%. The average growth rates in the estimated period 2025-2028 for each Business Area are:
2024 | Cloud | BizS | Marine | Hospitality | EA&BPM |
Average revenue growth | 6% | 6% | 5% | (13%) | 5% |
Average Gross profit margin | 5.8% | 6.2% | 3.6% | (15.7%) | 3.9% |
Average EBITDA margin | 6% | 5% | 13% | 27% | 11% |
Compared to the same assumptions in 2023 we see a decline in the growth assumptions. This is explained by Arribatec's focus on profitability first and using modest growth assumptions as the basis for impairment tests. The management's evaluation of future growth is grounded in an analysis that combines historical data, strategic planning, market, strategic focus, initiatives and financial modeling.
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% |
Sensitivity
On 31 December 2024, 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 17\tBusiness Combinations
During 2023 or 2024, Arribatec did not acquire any shares in compa-nies. However, an earn-out related to the acquisition of the subsidiary Arribatec UK (formerly Integra) was setteled in Jnauary 2024. During 2021, Arribatec acquired shares in the companies mentioned below and consequently controls the subsidiaries from the date of acquisi-tion. 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 Note16.
Note 17\tBusiness Combinations
During 2023 or 2024, Arribatec did not acquire any shares in compa-nies. However, an earn-out related to the acquisition of the subsidiary Arribatec UK (formerly Integra) was setteled in Jnauary 2024. During 2021, Arribatec acquired shares in the companies mentioned below and consequently controls the subsidiaries from the date of acquisi-tion. 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 Note16.
Note 18\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 | Dormant |
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 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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__99": { "value": "Note 18\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 | Dormant |
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 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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__100": { "value": "Note 19\tOther non-current assets
NOK thousand | 2024 | 2023 |
Investment in shares | 60 | 60 |
Deposits | 4\u00a0542 | 3\u00a0929 |
Total other non-current assets | 4\u00a0602 | 3\u00a0989 |
Deposits are mainly deposits in relation to office rental agreements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__101-1": { "value": "Note 19\tOther non-current assets
NOK thousand | 2024 | 2023 |
Investment in shares | 60 | 60 |
Deposits | 4\u00a0542 | 3\u00a0929 |
Total other non-current assets | 4\u00a0602 | 3\u00a0989 |
Deposits are mainly deposits in relation to office rental agreements.
Note 24\tOther current assets
NOK thousand | 2024 | 2023 |
Government receivables | 879 | 1\u00a0978 |
Prepaid cost | 8\u00a0352 | 10\u00a0539 |
Other current assets | 1\u00a0195 | 750 |
Total other current assets | 10\u00a0426 | 13\u00a0267 |
Prepaid cost mainly consist of advances paid for software, rent and insurance.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__106": { "value": "Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 20\tFinancial instruments
All financial assets and liabilities are initially recognised at fair value and subsequently classified either as financial assets at amortised cost or financial assets through profit or loss.
The carrying amount is a reasonable approximate 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 other non-current financial liabilities, accounts payable, contract liabilities, other current liabilities and interest-bearing loans.
Any draw-downs on the Credit Facility in Danske Bank are classified as short-term interest-bearing loans. The fair value of the financial assets and liabilities are included in the amount at which the instru-ment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
In Arribatec, the measured carrying amount of financial assets and liabilities at amortised cost are equal to fair value.
Note 21\tAccount receivable
NOK thousand | Current | 0-30 days | 31-60 days | 61-90 days | 90+days | Total | whereof estimated credit losses |
Ageing, Accounts receivable | |||||||
2024 | 48\u00a0628 | 16\u00a0571 | 5\u00a0339 | 3\u00a0899 | 2\u00a0268 | 76\u00a0705 | (2\u00a0060) |
2023 | 45\u00a0192 | 33\u00a0769 | 5\u00a0533 | 2\u00a0795 | 3\u00a0608 | 90\u00a0898 | (4\u00a0230) |
Provision for Expected Credit Losses (ECL) is included with NOK 2.1m (NOK 4.2m). The provision is based on a valuation per subsidiary at year-end based on general assumptions and historical experience of low credit losses, as well as agreements with customers and payments made in the next year. Accounts receivables are non-in-terest bearing.
Expensed credit loss in 2024 was NOK 2.3m (0.1m), whereof NOK 2.1m is bad debt expensed in relation to large customer bank-ruptcy.
Credit risk
Credit risks are the risks that a counterpart will not meet its obliga-tions 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 receiv-ables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pay for software and services under a software-as-a-service (SaaS) arrange-ment, 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 predictable 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 recognised at fair value and are subsequently measured at amortised cost, less provision for expected credit losses.
Note 21\tAccount receivable
NOK thousand | Current | 0-30 days | 31-60 days | 61-90 days | 90+days | Total | whereof estimated credit losses |
Ageing, Accounts receivable | |||||||
2024 | 48\u00a0628 | 16\u00a0571 | 5\u00a0339 | 3\u00a0899 | 2\u00a0268 | 76\u00a0705 | (2\u00a0060) |
2023 | 45\u00a0192 | 33\u00a0769 | 5\u00a0533 | 2\u00a0795 | 3\u00a0608 | 90\u00a0898 | (4\u00a0230) |
Provision for Expected Credit Losses (ECL) is included with NOK 2.1m (NOK 4.2m). The provision is based on a valuation per subsidiary at year-end based on general assumptions and historical experience of low credit losses, as well as agreements with customers and payments made in the next year. Accounts receivables are non-in-terest bearing.
Expensed credit loss in 2024 was NOK 2.3m (0.1m), whereof NOK 2.1m is bad debt expensed in relation to large customer bank-ruptcy.
Credit risk
Credit risks are the risks that a counterpart will not meet its obliga-tions 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 receiv-ables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pay for software and services under a software-as-a-service (SaaS) arrange-ment, 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 predictable 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 recognised at fair value and are subsequently measured at amortised cost, less provision for expected credit losses.
Note 21\tAccount receivable
NOK thousand | Current | 0-30 days | 31-60 days | 61-90 days | 90+days | Total | whereof estimated credit losses |
Ageing, Accounts receivable | |||||||
2024 | 48\u00a0628 | 16\u00a0571 | 5\u00a0339 | 3\u00a0899 | 2\u00a0268 | 76\u00a0705 | (2\u00a0060) |
2023 | 45\u00a0192 | 33\u00a0769 | 5\u00a0533 | 2\u00a0795 | 3\u00a0608 | 90\u00a0898 | (4\u00a0230) |
Provision for Expected Credit Losses (ECL) is included with NOK 2.1m (NOK 4.2m). The provision is based on a valuation per subsidiary at year-end based on general assumptions and historical experience of low credit losses, as well as agreements with customers and payments made in the next year. Accounts receivables are non-in-terest bearing.
Expensed credit loss in 2024 was NOK 2.3m (0.1m), whereof NOK 2.1m is bad debt expensed in relation to large customer bank-ruptcy.
Credit risk
Credit risks are the risks that a counterpart will not meet its obliga-tions 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 receiv-ables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pay for software and services under a software-as-a-service (SaaS) arrange-ment, 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 predictable 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 recognised at fair value and are subsequently measured at amortised cost, less provision for expected credit losses.
Credit risks are the risks that a counterpart will not meet its obliga-tions 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 receiv-ables and contract assets from contracts with the customers and other receivables.
As part of the Group\u2019s earnings model, certain of its customers pay for software and services under a software-as-a-service (SaaS) arrange-ment, 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 predictable 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 recognised at fair value and are subsequently measured at amortised cost, less provision for expected credit losses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__118": { "value": "Accounts receivable and other receivables are initially recognised at fair value and are subsequently measured at amortised cost, less provision for expected credit losses.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__119": { "value": "Accounts receivable and other receivables are initially recognised at fair value and are subsequently measured at amortised cost, less provision for expected credit losses.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__121": { "value": "Note 22\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 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.
Contract assets
Contract assets are recognised for performance obligations satisfied 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 receivable, 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 | 2024 | 2023 |
As of 1 January | 24\u00a0244 | 16\u00a0276 |
Performance obligations met | 45\u00a0437 | 42\u00a0789 |
Reclassified to receivables | (44\u00a0724) | (35\u00a0305) |
Translation difference | (417) | 484 |
Total contract assets | 25\u00a0434 | 24\u00a0244 |
It is expected that 97% of the above contract assets will be reclassi-fied to receivables in 2025 and 3% in 2026.
The expected credit losses on contract 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 below:
NOK thousand | 2024 | 2023 |
As of 1 January | 24\u00a0319 | 16\u00a0476 |
Deferred revenue | 130\u00a0200 | 101\u00a0264 |
Recognised as revenue in P&L | (129\u00a0705) | (94\u00a0227) |
Translation difference | 1\u00a0009 | 806 |
Total contract liabilities | 25\u00a0824 | 24\u00a0319 |
Contract liabilities are mainly invoiced to customers in advance and relating to 2025. All liabilities per 1 January were recognised as revenue in P&L during the year.
Note 23\tInventory
Inventories are recognised at the lower amount 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 | 2024 | 2023 |
Hardware for resale | 1\u00a0667 | 1\u00a0548 |
Licenses for resale | 6\u00a0150 | 0 |
Total inventory | 7\u00a0817 | 1\u00a0548 |
Note 23\tInventory
Inventories are recognised at the lower amount 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 | 2024 | 2023 |
Hardware for resale | 1\u00a0667 | 1\u00a0548 |
Licenses for resale | 6\u00a0150 | 0 |
Total inventory | 7\u00a0817 | 1\u00a0548 |
Note 24\tOther current assets
NOK thousand | 2024 | 2023 |
Government receivables | 879 | 1\u00a0978 |
Prepaid cost | 8\u00a0352 | 10\u00a0539 |
Other current assets | 1\u00a0195 | 750 |
Total other current assets | 10\u00a0426 | 13\u00a0267 |
Prepaid cost mainly consist of advances paid for software, rent and insurance.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasePrepaymentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__126": { "value": "Note 24\tOther current assets
NOK thousand | 2024 | 2023 |
Government receivables | 879 | 1\u00a0978 |
Prepaid cost | 8\u00a0352 | 10\u00a0539 |
Other current assets | 1\u00a0195 | 750 |
Total other current assets | 10\u00a0426 | 13\u00a0267 |
Prepaid cost mainly consist of advances paid for software, rent and insurance.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__127": { "value": "Note 24\tOther current assets
NOK thousand | 2024 | 2023 |
Government receivables | 879 | 1\u00a0978 |
Prepaid cost | 8\u00a0352 | 10\u00a0539 |
Other current assets | 1\u00a0195 | 750 |
Total other current assets | 10\u00a0426 | 13\u00a0267 |
Prepaid cost mainly consist of advances paid for software, rent and insurance.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__129": { "value": "Note 25\tCash and cash equivalents
NOK thousand | 2024 | 2023 |
Cash, free | 11\u00a0446 | 27\u00a0260 |
Cash, restricted | 11\u00a0673 | 12\u00a0111 |
Total cash and cash equivalents | 23\u00a0119 | 39\u00a0371 |
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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
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 minimise 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 maximise 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 2024.
Note 25\tCash and cash equivalents
NOK thousand | 2024 | 2023 |
Cash, free | 11\u00a0446 | 27\u00a0260 |
Cash, restricted | 11\u00a0673 | 12\u00a0111 |
Total cash and cash equivalents | 23\u00a0119 | 39\u00a0371 |
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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
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 minimise 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 maximise 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 2024.
Note 25\tCash and cash equivalents
NOK thousand | 2024 | 2023 |
Cash, free | 11\u00a0446 | 27\u00a0260 |
Cash, restricted | 11\u00a0673 | 12\u00a0111 |
Total cash and cash equivalents | 23\u00a0119 | 39\u00a0371 |
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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
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 minimise 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 maximise 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 2024.
Note 25\tCash and cash equivalents
NOK thousand | 2024 | 2023 |
Cash, free | 11\u00a0446 | 27\u00a0260 |
Cash, restricted | 11\u00a0673 | 12\u00a0111 |
Total cash and cash equivalents | 23\u00a0119 | 39\u00a0371 |
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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
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 minimise 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 maximise 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 2024.
Note 25\tCash and cash equivalents
NOK thousand | 2024 | 2023 |
Cash, free | 11\u00a0446 | 27\u00a0260 |
Cash, restricted | 11\u00a0673 | 12\u00a0111 |
Total cash and cash equivalents | 23\u00a0119 | 39\u00a0371 |
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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
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 minimise 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 maximise 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 2024.
Note 25\tCash and cash equivalents
NOK thousand | 2024 | 2023 |
Cash, free | 11\u00a0446 | 27\u00a0260 |
Cash, restricted | 11\u00a0673 | 12\u00a0111 |
Total cash and cash equivalents | 23\u00a0119 | 39\u00a0371 |
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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
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 minimise 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 maximise 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 2024.
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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__132": { "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 23.1m on 31 December 2024 (2023: NOK 39.4m).
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 expected 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 the Group may be required to pay.
The amounts presented are subject to change If changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.
NOK thousand | 0-6 months | 6 months - 1 year | 1-2 years | 2-4 years | 4+ years | Total |
Interest bearing loans | 15\u00a0975 | 23\u00a0044 | 6\u00a0140 | 3\u00a0696 | 0 | 48\u00a0854 |
Provisions | 0 | 0 | 2\u00a0328 | 1\u00a0242 | 8 141 | 11 710 |
Accounts payable | 52\u00a0432 | 0 | 0 | 0 | 0 | 52\u00a0432 |
Lease liabilities | 7\u00a0590 | 7\u00a0590 | 7\u00a0966 | 3\u00a0639 | 2\u00a0368 | 29\u00a0153 |
Other current liabilities | 45\u00a0852 | 36\u00a0054 | 0 | 0 | 0 | 81\u00a0906 |
Total | 121\u00a0848 | 66\u00a0688 | 16\u00a0433 | 8\u00a0576 | 10 509 | 224 055 |
The Group closely monitors and follows up on the cash situation. On 2 December 2024, an extraordinary general meeting of Arribatec was held, where a rights issue was guaranteed by a group of shareholders to bring in NOK 35m in cash early 2025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__133": { "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 maximise 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 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__138": { "value": "Note 26\tShares
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
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 |
31 December 2024 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
There was no change in Share capital during 2024. Each share has the same rights and has a par value of NOK 0.28.
20 largest shareholders at 31 Dec 2024
Holding | Stake | |
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% |
TITAN VENTURE AS | 3\u00a0050\u00a0000 | 4.4% |
DALLAS ASSET MANAGEMENT AS | 2\u00a0467\u00a0200 | 3.5% |
JOAR AARENES | 1\u00a0768\u00a0473 | 2.5% |
SRK CONSULTING AS | 1\u00a0757\u00a0476 | 2.5% |
ERIK SKAAR OPDAL | 1\u00a0695\u00a0200 | 2.4% |
Nordnet Bank AB | 1\u00a0530\u00a0066 | 2.2% |
EXCESSION AS | 1\u00a0100\u00a0000 | 1.6% |
TRUDE HALVORSEN | 1\u00a0079\u00a0789 | 1.6% |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% |
COMPANY ONE AS | 934\u00a0023 | 1.3% |
KRISTIAN FALNES AS | 850\u00a0000 | 1.2% |
MIDDELBOE AS | 739\u00a0662 | 1.1% |
NILS GABRIEL ANDRESEN | 622\u00a0086 | 0.9% |
LARS HUGO BRAADLAND OLSEN | 574\u00a0850 | 0.8% |
Danske Bank A/S | 553\u00a0700 | 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 | 38\u00a0409\u00a0752 | 55.2% |
Other shareholders | 31\u00a0162\u00a0454 | 44.8% |
Total | 69\u00a0572\u00a0206 | 100.0% |
Shares held by related parties
Holding | Stake | ||
COMPANY ONE AS | 934\u00a0023 | 1.3% | Related to H\u00e5kon Reistad Fure, 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 per 31.12.2024 |
TERJE MJ\u00d8S HOLDING AS | 180\u00a0000 | 0.3% | Related to Terje Mj\u00f8s, Member of the Board in Arribatec Group ASA |
KJ\u00d8LVIK INVEST AS | 37\u00a0935 | 0.1% | Related to Ole-Jakob Kj\u00f8lvik, Interim CEO of Arribatec Group ASA |
SICUBI AS | 24\u00a0072 | 0.0% | Related to Bente Brocks, CFO (interim) of Arribatec Group ASA |
HELLEBUST | 22\u00a0728 | 0.0% | Related to Kristin Hellebust, Member of the Board in Arribatec Group ASA |
Note 26\tShares
Issued shares and share capital
Number of shares | Share Capital (NOK) | |
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 |
31 December 2024 | 69\u00a0572\u00a0206 | 194\u00a0802\u00a0177 |
There was no change in Share capital during 2024. Each share has the same rights and has a par value of NOK 0.28.
20 largest shareholders at 31 Dec 2024
Holding | Stake | |
FERNCLIFF LISTED DAI AS | 16\u00a0655\u00a0404 | 23.9% |
TITAN VENTURE AS | 3\u00a0050\u00a0000 | 4.4% |
DALLAS ASSET MANAGEMENT AS | 2\u00a0467\u00a0200 | 3.5% |
JOAR AARENES | 1\u00a0768\u00a0473 | 2.5% |
SRK CONSULTING AS | 1\u00a0757\u00a0476 | 2.5% |
ERIK SKAAR OPDAL | 1\u00a0695\u00a0200 | 2.4% |
Nordnet Bank AB | 1\u00a0530\u00a0066 | 2.2% |
EXCESSION AS | 1\u00a0100\u00a0000 | 1.6% |
TRUDE HALVORSEN | 1\u00a0079\u00a0789 | 1.6% |
HANEKAMB INVEST AS | 1\u00a0055\u00a0347 | 1.5% |
COMPANY ONE AS | 934\u00a0023 | 1.3% |
KRISTIAN FALNES AS | 850\u00a0000 | 1.2% |
MIDDELBOE AS | 739\u00a0662 | 1.1% |
NILS GABRIEL ANDRESEN | 622\u00a0086 | 0.9% |
LARS HUGO BRAADLAND OLSEN | 574\u00a0850 | 0.8% |
Danske Bank A/S | 553\u00a0700 | 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 | 38\u00a0409\u00a0752 | 55.2% |
Other shareholders | 31\u00a0162\u00a0454 | 44.8% |
Total | 69\u00a0572\u00a0206 | 100.0% |
Shares held by related parties
Holding | Stake | ||
COMPANY ONE AS | 934\u00a0023 | 1.3% | Related to H\u00e5kon Reistad Fure, 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 per 31.12.2024 |
TERJE MJ\u00d8S HOLDING AS | 180\u00a0000 | 0.3% | Related to Terje Mj\u00f8s, Member of the Board in Arribatec Group ASA |
KJ\u00d8LVIK INVEST AS | 37\u00a0935 | 0.1% | Related to Ole-Jakob Kj\u00f8lvik, Interim CEO of Arribatec Group ASA |
SICUBI AS | 24\u00a0072 | 0.0% | Related to Bente Brocks, CFO (interim) of Arribatec Group ASA |
HELLEBUST | 22\u00a0728 | 0.0% | Related to Kristin Hellebust, Member of the Board in Arribatec Group ASA |
Note 27\tLong term incentive plan
During 2023, a long-term incentive plan in the form of a share-based remuneration program was launched within Arribatec, with the intention to incentivise 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 on 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 in 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 annualised 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 | 2024 | 2023 |
Cost of employee share option program | 3\u00a0153\u00a0718 | 619\u00a0924 |
Total Social security provisions | 0 | 0 |
Granted instruments
Option | ||
Instrument | 2024 | 2023 |
Quantity, End of period (instruments) | 3\u00a0084\u00a0700 | 3\u00a0303\u00a0240 |
Quantity, End of period (shares) | 3\u00a0084\u00a0700 | 3\u00a0303\u00a0240 |
Contractual life\u200c1 | 5.00 | 5.00 |
Strike price\u200c1 | 5.25 | 5.25 |
Share price\u200c1 | 4.63 | 4.63 |
Expected lifetime\u200c1 | 3.00 | 3.00 |
Volatility\u200c1 | 65.66% | 65.66% |
Interest rate\u200c1 | 3\u00a0965% | 3\u00a0965% |
Dividend\u200c1 | 0.00 | 0.00 |
FV per instrument\u200c1 | 1.97 | 1.97 |
1Weighted average parameters at grant of instrument
Outstanding instruments Year End - Option
Quantity and weighted average prices | Number of instruments | Weighted Average Strike Price | Number of instruments | Weighted Average Strike Price |
Activity | 01.01.2024 - 31.12.2024 | 01.01.2023 - 31.12.2023 | ||
Outstanding OB | 3\u00a0303\u00a0240 | 5.25 | 0 | 0.00 |
Granted | 0 | 0.00 | 3\u00a0303\u00a0240 | 5.25 |
Exercised | 0 | 0.00 | 0 | 0.00 |
Released | 0 | 0.00 | 0 | 0.00 |
Adjusted | 0 | 0.00 | 0 | 0.00 |
Performance Adjusted | 0 | 0.00 | 0 | 0.00 |
Cancelled | 0 | 0.00 | 0 | 0.00 |
Terminated | (218\u00a0540) | 5.25 | 0 | 0.00 |
Expired | 0 | 0.00 | 0 | 0.00 |
Outstanding CB | 3\u00a0084\u00a0700 | 5.25 | 3\u00a0303\u00a0240 | 5.25 |
Vested CB | 1\u00a0028\u00a0231 | 5.00 | 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\u00a0028\u00a0231 | 3.84 | 5.00 | 1\u00a0028\u00a0231 | 5.00 |
5.25 | 1\u00a0028\u00a0234 | 3.84 | 5.25 | 0 | 0.00 |
5.50 | 1\u00a0028\u00a0235 | 3.84 | 5.50 | 0 | 0.00 |
3\u00a0084\u00a0700 |
Note 28\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2024 | 31 Dec 2023 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2025, Dec | 20\u00a0000 | 19\u00a0458 |
Danske Bank | Revolving credit facility | NOK | 15\u00a0000 | NIBOR+2.75% | 2025, Jan | 11\u00a0625 | 0 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 0 | 19 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 5\u00a0984 | 7\u00a0896 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 1\u00a0322 | 3\u00a0671 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 4\u00a0218 | 5\u00a0681 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0105 | 2\u00a0663 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 45\u00a0254 | 39\u00a0388 |
Credit facilities | Other borrowings | Total | |
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 |
Balance at 1 Jan 2024 | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Proceeds from loans and borrowings | 12\u00a0167 | 0 | 12\u00a0167 |
Repayment of loans and borrowings | 0 | (7\u00a0372) | (7\u00a0372) |
Total changes in financial cashflow | 12\u00a0167 | (7\u00a0372) | 4\u00a0795 |
Translation difference | 0 | 1\u00a0072 | 1\u00a0072 |
Total Borrowings at end of period | 31\u00a0625 | 13\u00a0629 | 45\u00a0254 |
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 amortised cost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__143": { "value": "Note 28\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2024 | 31 Dec 2023 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2025, Dec | 20\u00a0000 | 19\u00a0458 |
Danske Bank | Revolving credit facility | NOK | 15\u00a0000 | NIBOR+2.75% | 2025, Jan | 11\u00a0625 | 0 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 0 | 19 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 5\u00a0984 | 7\u00a0896 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 1\u00a0322 | 3\u00a0671 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 4\u00a0218 | 5\u00a0681 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0105 | 2\u00a0663 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 45\u00a0254 | 39\u00a0388 |
Credit facilities | Other borrowings | Total | |
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 |
Balance at 1 Jan 2024 | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Proceeds from loans and borrowings | 12\u00a0167 | 0 | 12\u00a0167 |
Repayment of loans and borrowings | 0 | (7\u00a0372) | (7\u00a0372) |
Total changes in financial cashflow | 12\u00a0167 | (7\u00a0372) | 4\u00a0795 |
Translation difference | 0 | 1\u00a0072 | 1\u00a0072 |
Total Borrowings at end of period | 31\u00a0625 | 13\u00a0629 | 45\u00a0254 |
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 amortised cost.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__144": { "value": "Note 28\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2024 | 31 Dec 2023 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2025, Dec | 20\u00a0000 | 19\u00a0458 |
Danske Bank | Revolving credit facility | NOK | 15\u00a0000 | NIBOR+2.75% | 2025, Jan | 11\u00a0625 | 0 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 0 | 19 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 5\u00a0984 | 7\u00a0896 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 1\u00a0322 | 3\u00a0671 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 4\u00a0218 | 5\u00a0681 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0105 | 2\u00a0663 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 45\u00a0254 | 39\u00a0388 |
Credit facilities | Other borrowings | Total | |
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 |
Balance at 1 Jan 2024 | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Proceeds from loans and borrowings | 12\u00a0167 | 0 | 12\u00a0167 |
Repayment of loans and borrowings | 0 | (7\u00a0372) | (7\u00a0372) |
Total changes in financial cashflow | 12\u00a0167 | (7\u00a0372) | 4\u00a0795 |
Translation difference | 0 | 1\u00a0072 | 1\u00a0072 |
Total Borrowings at end of period | 31\u00a0625 | 13\u00a0629 | 45\u00a0254 |
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 amortised cost.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__145": { "value": "Note 28\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2024 | 31 Dec 2023 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2025, Dec | 20\u00a0000 | 19\u00a0458 |
Danske Bank | Revolving credit facility | NOK | 15\u00a0000 | NIBOR+2.75% | 2025, Jan | 11\u00a0625 | 0 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 0 | 19 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 5\u00a0984 | 7\u00a0896 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 1\u00a0322 | 3\u00a0671 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 4\u00a0218 | 5\u00a0681 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0105 | 2\u00a0663 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 45\u00a0254 | 39\u00a0388 |
Credit facilities | Other borrowings | Total | |
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 |
Balance at 1 Jan 2024 | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Proceeds from loans and borrowings | 12\u00a0167 | 0 | 12\u00a0167 |
Repayment of loans and borrowings | 0 | (7\u00a0372) | (7\u00a0372) |
Total changes in financial cashflow | 12\u00a0167 | (7\u00a0372) | 4\u00a0795 |
Translation difference | 0 | 1\u00a0072 | 1\u00a0072 |
Total Borrowings at end of period | 31\u00a0625 | 13\u00a0629 | 45\u00a0254 |
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 amortised cost.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReconciliationOfLiabilitiesArisingFromFinancingActivitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__146": { "value": "Note 28\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2024 | 31 Dec 2023 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2025, Dec | 20\u00a0000 | 19\u00a0458 |
Danske Bank | Revolving credit facility | NOK | 15\u00a0000 | NIBOR+2.75% | 2025, Jan | 11\u00a0625 | 0 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 0 | 19 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 5\u00a0984 | 7\u00a0896 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 1\u00a0322 | 3\u00a0671 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 4\u00a0218 | 5\u00a0681 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0105 | 2\u00a0663 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 45\u00a0254 | 39\u00a0388 |
Credit facilities | Other borrowings | Total | |
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 |
Balance at 1 Jan 2024 | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Proceeds from loans and borrowings | 12\u00a0167 | 0 | 12\u00a0167 |
Repayment of loans and borrowings | 0 | (7\u00a0372) | (7\u00a0372) |
Total changes in financial cashflow | 12\u00a0167 | (7\u00a0372) | 4\u00a0795 |
Translation difference | 0 | 1\u00a0072 | 1\u00a0072 |
Total Borrowings at end of period | 31\u00a0625 | 13\u00a0629 | 45\u00a0254 |
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 amortised cost.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__147": { "value": "Note 28\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2024 | 31 Dec 2023 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2025, Dec | 20\u00a0000 | 19\u00a0458 |
Danske Bank | Revolving credit facility | NOK | 15\u00a0000 | NIBOR+2.75% | 2025, Jan | 11\u00a0625 | 0 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 0 | 19 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 5\u00a0984 | 7\u00a0896 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 1\u00a0322 | 3\u00a0671 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 4\u00a0218 | 5\u00a0681 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0105 | 2\u00a0663 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 45\u00a0254 | 39\u00a0388 |
Credit facilities | Other borrowings | Total | |
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 |
Balance at 1 Jan 2024 | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Proceeds from loans and borrowings | 12\u00a0167 | 0 | 12\u00a0167 |
Repayment of loans and borrowings | 0 | (7\u00a0372) | (7\u00a0372) |
Total changes in financial cashflow | 12\u00a0167 | (7\u00a0372) | 4\u00a0795 |
Translation difference | 0 | 1\u00a0072 | 1\u00a0072 |
Total Borrowings at end of period | 31\u00a0625 | 13\u00a0629 | 45\u00a0254 |
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 amortised cost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__148": { "value": "Note 28\tInterest bearing debt
NOK thousand | |||||||
Debt financial institutions | Type | Currency | Facility limit | Interest rate | Year of maturity | 31 Dec 2024 | 31 Dec 2023 |
Danske Bank | Revolving credit facility | NOK | 20\u00a0000 | NIBOR+2.75% | 2025, Dec | 20\u00a0000 | 19\u00a0458 |
Danske Bank | Revolving credit facility | NOK | 15\u00a0000 | NIBOR+2.75% | 2025, Jan | 11\u00a0625 | 0 |
DLL | Leasing & finance company | NOK | 4.5% | 2024 | 0 | 19 | |
Bank Intesa, Italy | Unsecured bank facilities | EUR | EURIBOR+1.95%-2.40% | 2027 | 5\u00a0984 | 7\u00a0896 | |
Bank Progetto, Italy | Unsecured bank loan | EUR | EURIBOR+5% | 2025 | 1\u00a0322 | 3\u00a0671 | |
Bank Carige, Italy | Unsecured bank loan | EUR | 1.3% | 2027 | 4\u00a0218 | 5\u00a0681 | |
Bank Passadore, Italy | Unsecured bank loan | EUR | EURIBOR+1.5% | 2028 | 2\u00a0105 | 2\u00a0663 | |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 45\u00a0254 | 39\u00a0388 |
Credit facilities | Other borrowings | Total | |
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 |
Balance at 1 Jan 2024 | 19\u00a0458 | 19\u00a0930 | 39\u00a0388 |
Proceeds from loans and borrowings | 12\u00a0167 | 0 | 12\u00a0167 |
Repayment of loans and borrowings | 0 | (7\u00a0372) | (7\u00a0372) |
Total changes in financial cashflow | 12\u00a0167 | (7\u00a0372) | 4\u00a0795 |
Translation difference | 0 | 1\u00a0072 | 1\u00a0072 |
Total Borrowings at end of period | 31\u00a0625 | 13\u00a0629 | 45\u00a0254 |
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 amortised cost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__153": { "value": "Note 30\tProvisions
NOK thousand | 2024 | 2023 |
Severance indemnity funds in Italy | 9\u00a0227 | 8\u00a0145 |
Other provisions | 2\u00a0484 | 2\u00a0540 |
Total provision | 11\u00a0710 | 10\u00a0685 |
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 31.12.2024, all funds estimated as long term (2-4+ years).
Provisions
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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__154": { "value": "Note 30\tProvisions
NOK thousand | 2024 | 2023 |
Severance indemnity funds in Italy | 9\u00a0227 | 8\u00a0145 |
Other provisions | 2\u00a0484 | 2\u00a0540 |
Total provision | 11\u00a0710 | 10\u00a0685 |
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 31.12.2024, all funds estimated as long term (2-4+ years).
Provisions
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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__151": { "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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__152": { "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": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__155": { "value": "Note 31\tOther current liabilities
NOK thousand | 2024 | 2023 |
Employer tax and employee withholding tax | 21\u00a0064 | 24\u00a0302 |
Accrued holiday payments and bonuses | 25\u00a0266 | 30\u00a0640 |
VAT liabilities | 11\u00a0674 | 9\u00a0632 |
Remaining part of acq.price, Integra | 0 | 7\u00a0441 |
Accrued restructuring cost | 7\u00a0841 | 0 |
Other short term liabilities | 16\u00a0061 | 11\u00a0855 |
Total other current liabilities | 81\u00a0906 | 83\u00a0869 |
Note 31\tOther current liabilities
NOK thousand | 2024 | 2023 |
Employer tax and employee withholding tax | 21\u00a0064 | 24\u00a0302 |
Accrued holiday payments and bonuses | 25\u00a0266 | 30\u00a0640 |
VAT liabilities | 11\u00a0674 | 9\u00a0632 |
Remaining part of acq.price, Integra | 0 | 7\u00a0441 |
Accrued restructuring cost | 7\u00a0841 | 0 |
Other short term liabilities | 16\u00a0061 | 11\u00a0855 |
Total other current liabilities | 81\u00a0906 | 83\u00a0869 |
Note 31\tOther current liabilities
NOK thousand | 2024 | 2023 |
Employer tax and employee withholding tax | 21\u00a0064 | 24\u00a0302 |
Accrued holiday payments and bonuses | 25\u00a0266 | 30\u00a0640 |
VAT liabilities | 11\u00a0674 | 9\u00a0632 |
Remaining part of acq.price, Integra | 0 | 7\u00a0441 |
Accrued restructuring cost | 7\u00a0841 | 0 |
Other short term liabilities | 16\u00a0061 | 11\u00a0855 |
Total other current liabilities | 81\u00a0906 | 83\u00a0869 |
Note 32\tTransactions with related parties
During 2024, the Company has paid consultancy fees to Company One AS, a company related to the Chairman of the Board, H\u00e5kon Reistad Fure and legal fees to Ro Sommernes Advokatfirma DA, a company in relation to BoD member Herik A. Christensen.
During 2023 and 2024, rent for office in UK was paid to MDB & Sons Ltd, a company related to an employee of Arribatec UK Ltd (former Integra Associated Ltd).
NOK thousand | 2024 | 2023 |
Transactions with related parties | ||
Company One AS - consultancy | 625 | 0 |
Ro Sommernes Advokatfirma DA - legal services | 206 | 0 |
MDB & Sons Ltd - office rental, Leicester | 453 | 481 |
Total Related parties transactions | 1\u00a0284 | 481 |
Note 32\tTransactions with related parties
During 2024, the Company has paid consultancy fees to Company One AS, a company related to the Chairman of the Board, H\u00e5kon Reistad Fure and legal fees to Ro Sommernes Advokatfirma DA, a company in relation to BoD member Herik A. Christensen.
During 2023 and 2024, rent for office in UK was paid to MDB & Sons Ltd, a company related to an employee of Arribatec UK Ltd (former Integra Associated Ltd).
NOK thousand | 2024 | 2023 |
Transactions with related parties | ||
Company One AS - consultancy | 625 | 0 |
Ro Sommernes Advokatfirma DA - legal services | 206 | 0 |
MDB & Sons Ltd - office rental, Leicester | 453 | 481 |
Total Related parties transactions | 1\u00a0284 | 481 |
Note 33\tPledged assets
All the Nordic subsidiaries of the Group (Norway, Sweden and Denmark are part of the security package for the revolving credit facility, see Note 28. The subsidiaries that are part of the security package are guaran-tors and have granted a share pledge and a bank account pledge.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__7__162": { "value": "Note 35\tSubsequent events
After 31 December 2024, the following highlights have occurred:
On 2 December 2024, an extraordinary general meeting of Arribatec decided on a capital reduction by reducing the par value from NOK 2.80 to NOK 0.10 per share. The reduction took place after the end of the creditor notice period on 27 January 2025. Furthermore, a rights issue, directed to all existing shareholders and to BoD members, in addition to warrants to a group of underwriters and the Board of Directors, that subscribed under the Board of Directors share issue was completed on 6 February 2025. The share issue resulted in NOK 41m cash.
On 4 March 2025, the Company announced that they had signed an agreement to divest Arribatec Marine to Star Information System. The closing of the sale took place on 18 March 2025 at a valuation of NOK 24.6 million. On 14 March the company announced that they successfully completed the divestment of Arribatec Hospitality for an equity valuation of NOK 12.5 million. An estimated gain from these sales are NOK 14.5 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFK0040", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } } } }