Reach, Engage,
and Unite the Power
of Your Workforce
RELESYS ANNUAL REPORT 2022
2 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Copenhagen
Amsterdam
Stockholm
London
SALES OFFICES IN
countries
79
USERS IN
languages
26
WE SPEAK
licences
256k
CLIENTS HAVE
Relesys at a glance
Relesys successfully continued to execute on its growth strategy
countries
14
CLIENTS IN
+44%
YOY GROWTH IN ARR
+28%
YOY GROWTH IN TOTAL REVENUE
ARR COMPOSITION BY INDUSTRY
REVENUE COMPOSITION BY GEOGRAPHY
3 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
SaaS companies like Relesys typically offer their services on a
subscription basis, charging clients a periodic fee based on the
number of licences sold. Relesys typically invoices the subscription
fee quarterly or yearly in advance. This model allows clients to avoid
the upfront costs and maintenance required for traditional software
applications, while also providing the flexibility to scale up or down as
needed.
SasS companies often supplement traditional finance reporting
figures with metrics that help understand the underlying drivers and
performance of the company’s performance. The following are a
description of the most essential metrics:
• Annual Recurring Revenue (ARR), a measure of the annualised
value of subscriptions entered into with Relesys.
• Annual Recurring Revenue Net uplift (ARR net uplift), refers
to an increase in annual recurring revenue over a given period of
time. Historic ARR net uplift is a key metric as it can be used as an
indicator of growth and predictability of a future revenue stream.
• Annual Recurring Revenue churn (ARR churn), a measure of
terminated subscriptions measured as value.
• Net ARR Retention Rate is a metric used to measure the revenue
generated from existing clients over a period of time. Net ARR
Retention Rate takes into account upgrades, downgrades, and
cancellations, as well as any changes in pricing.
• FCF multiple, compares a company's free cash flow (FCF) to its
ARR growth, and provides insights into whether the company is
generating enough cash to sustain its growth.
Furthermore, in this report, Relesys counts clients by the number of
groups/companies with whom Relesys has subscription agreements.
In this report, Relesys also distinguishes between SaaS revenue
and Consultancy Revenue. SaaS revenue relates to subscription
agreements and ARR. Consultancy revenue covers client-specific
development and customisation, as well as training and workshops.
For a complete overview of these as well as other abbreviations and
definitions used in this report, please see Note 1 in the Financial
Statement on page 37.
SaaS companies and SaaS metrics
Relesys is a Software as a Service (SaaS) company who provides software applications over
the internet as a subscription service. Instead of purchasing software outright and installing
it on their own computers or servers, users access the software via an online interface.
4 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Contents
05
MANAGEMENT’S REVIEW
06 Letter from the Chairman
07 Letter from the CEO
08 Highlights 2022
09 Financial guidance
10 Four-year overview
11 Relesys clients
18 Financial review 2022
21 Quarterly highlights
MANAGEMENT’S REVIEW (CONTINUED)
24 Board of Directors
26 Management team
27 Shareholder information
28
CONSOLIDATED FINANCIAL STATEMENTS
29 Statement by the Board of Directors
and the Executive Management
30 Independent auditor’s report
32 Consolidated income statement
32 Consolidated comprehensive income
33 Consolidated balance sheet
34 Consolidated statement of changes in equity
34 Consolidated cash flow statement
35 Notes
58
PARENT FINANCIAL STATEMENTS
59 Parent income statement
60 Parent balance sheet
61 Statement of changes in equity
62 Notes
6 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Since Jesper Roesgaard and Jens Ole Lebeck founded
Relesys in 2014, the company has consistently
generated double-digit growth rates and positive
performance. The first year as a listed company is
no exemption. Despite 2022 being characterised by
economic uncertainty, Relesys successfully executed
on its international growth strategy resulting in a 44%
year-on-year growth in annual recurring revenue and a
28% year-on-year growth in total revenue.
Relesys’ success is based on our world-leading
employee engagement platform and our ability to attract
and retain international top-shelf clients. We are proud
that the majority of new clients continue to originate
from references of existing clients, who have realised
the benefits of using our platform and solutions to
engage, inform and unite with especially their non-desk
employees.
While 2022 was characterised by ramping up of our
sales and marketing activities and onboarding of
new colleagues to support our international growth
ambitions, product development remains a key objective
to ensure our platform and services remain best-in-class.
We are therefore exited to roll out AI analytics as part of
our solutions in 2023, which will add new innovative key
features to our platform, such as the ability to track job
satisfaction and engagement.
In 2023, we will also continue our international expansion
with extended sales and marketing activities directed
towards new clients on the North American market.
A sincere thank you to the management and our
employees for their efforts and hard work in 2022.
Their ability to constantly find new innovative solutions
to address the needs of our clients and deliver on our
promises is the backbone of Relesys’ continued growth
and success.
We look forward to supporting both current and
new clients around the world in 2023 in growing and
optimising their business by delivering market-leading
solutions to engage and unite their employees across
multiple work functions and locations.
Letter from the Chairman
MANAGEMENT’S REVIEW
Alexander Thomas Martensen-Larsen
Chairman
Growth and expansion continued in 2022
7 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
PRODUCTIVITY, RETENTION, COST
By 2025, the market for engaging and connecting global
workers will reach DKKbn 159. This is unsurprising
since non-desk workers comprise 80% of the workforce.
Yet they also suffer from high churn rates and low
engagement, harming productivity and client service. The
global labor shortage raises the urgency to find a solution.
In this market, the Relesys platform is not nice-to-have,
but essential. Our workplace app platform is proven to
grow productivity, retain employees and reduce costs.
In 2022, a host of market-leading companies replaced old
solutions with Relesys. Our platform superseded outdated
intranets, non-compliant social media, and ill-supported
legacy software. In 2022 alone, the platform helped raise
client employee engagement rates by up to 99.5%, while
reducing employee churn rates by up to 20%.
32 NEW MARKET-LEADING BRANDS
Relesys has not only added new clients to our client base.
Through 2022, our five largest clients (measured by ARR)
renewed agreements with Relesys for 24 to 36 months.
Furthermore, we churned an outstandingly minimal 5% of
our ARR. With a net ARR retention rate of 116%, we are
best in class.
Last year, ARR from clients in foreign markets grew DKKm
8.6 year-on-year (83%). In total, 32 new market-leading
brands joined our portfolio. New clients included Lucardi,
Ganni, Dunkin Donuts (Benelux), Sticks ‘n’ Sushi and
Royal Greenland. Furthermore, with the arrival of the 5th
US beauty brand in our portfolio, Drunk Elephant, we are
feathering our nest in North America’s beauty industry.
A HISTORY OF SUSTAINABLE GROWTH
Sustainable growth is essential for us and with a burn
multiple of 1.7 and falling, driven by a 44% Annual
Recurring Revenue, we exceeded growth expectations in
2022.
During 2022, we cemented our motto “Growing people/
Growing business”. Last year, Relesys was the second
most applied-for startup in Denmark, according to the
Hub. Our talent, both old and new, was instrumental to
Relesys exceeding guidance for 2022.
AI ENGAGEMENT - EMPLOYEE RETENTION
To maintain our market leading position, Relesys uses
data-driven insights to innovate the platform for client
needs.
In 2023, we will roll out the AI retention module. The
module is a revolution in employee development and
retention. The AI Module will arm clients with insight into
engagement, and behaviour at their own company. Our
solution is unique because it builds on the immense data
pool from the clients daily use of the Relesys platform.
This empowers the AI to deliver value to clients, out of the
box.
Clients will be able to predict, at least two months in
advance and with up to 85% accuracy, if employees will
churn. The AI enables companies to take proactive steps
to raise staff retention, improving engagement rates. This
is a seismic shift for efficiency and optimisation, and for
the satisfaction of global workforces.
SCALING THE TEAM FOR THE FUTURE
My sincere gratitude goes out to our exceptional
employees. They are the backbone of Relesys’ vibrant
culture, and the fuel of our success. They offer our clients
industry-leading support and are the secret behind our
low client churn rate.
Their creativity and dedication are inseparable from our
success. I am empowered by the prospect of what 2023
has to offer Relesys.
Letter from the CEO
Jesper Roesgaard
CEO
MANAGEMENT’S REVIEW
7 | ANNUAL REPORT 2022
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ANNUAL RECURRING REVENUE
ARR was up 44% year-on-year, which was in line with Relesys’ latest guidance for the year.
Furthermore, ARR of DKKm 45.2 was a significant improvement compared to the expectations
prepared in the IPO prospectus (DKKm 40-42).
REVENUE
Revenue grew by 28% in 2022 which was in
line with Relesys’ latest guidance for the year.
SaaS share of revenue was 87%.
MARKETS
ARR growth of 44% year-on-year was compiled by
ARR from foreign markets growing from DKKm 10.3
to DKKm 18.9 corresponding to 83% year-on-year
growth. At the same time, ARR from the domestic
market of Denmark grew by 25% year-on-year.
FREE CASH FLOW
Free cash flow was negatively impacted by the
operating loss. Relesys’ FCF multiple was -1.7 in
2022 compared to -0.4 in 2021. The negative free
cash flow and FCF multiple were in accordance with
the financial plan and growth strategy.
Highlights 2022
• Continued solid ARR growth of 44% year-on-year driven by strong
growth in ARR from foreign markets of 83% year-on-year.
• Strong Net ARR Retention Rate of 116% driven by high ARR net uplift
of 21% and low ARR churn of 5%.
• Free cash flow of DKKm -23.2 resulting in a FCF multiple of -1.7.
• End-of-year cash balance of DKKm 31.3, which is sufficient to take
Relesys to positive cash flow.
MANAGEMENT’S REVIEW
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Relesys continues to grow fast on the existing markets in
Scandinavia, Benelux and the United Kingdom, and the company
will also increase marketing and sales effort in North America
during 2023.
In 2023, Relesys expects to achieve significant growth in foreign
markets and expects a growing part of revenue to be generated
from large accounts. The effect of the latter is reflected in the
guidance range, as the precise timing of these agreements is
difficult to predict with certainty.
As Relesys continues to invest significantly in new growth
initiatives, Relesys is expecting a loss before tax for the fiscal year
2023 in line with 2022.
The cash position end 2022 was DKKm 31.3, and Relesys
expects that to be sufficient in order to bring the company to a
positive cash flow.
In 2024, Relesys continues to expect ARR in the range of DKKm
75-85, as previously communicated in the IPO prospectus.
GUIDANCE 2023 (DKKm)
2023
Guidance
2022
Actual
Expected
Growth
Annual Recurring Revenue 59-64 45.2 31% - 42%
Revenue 54-60 44.1 22% - 36%
Financial guidance 2023
Financial guidance
Annual recurring revenue and revenue assumptions:
• Continued high market growth for engagement and connectivity software solutions.
• Continued low ARR churn rate.
• Continued strong net uplift of existing clients.
• Currency exchange rates as per end of 2022.
Revenue specific assumption:
• Continued short period for onboarding of new clients.
Assumptions behind financial guidance 2023
Other financial expectations
MANAGEMENT’S REVIEW
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2022 2021 2020 2019
RESULTS (DKKm)
Revenue 44.1 34.5 25.7 20.6
SaaS revenue 38.4 27.0 20.6 15.6
Consultancy revenue 5.7 7.5 5.1 5.0
Gross profit 39.2 31.7 22.9 18.0
Operating profit/loss before amortisation and depreciation (EBITDA) (23.0) (1.2) 3.8 4.3
Operating profit/loss (EBIT) (26.3) (3.8) 2.0 2.7
Profit/loss for the year (26.2) (3.6) 1.6 1.9
CASH FLOW (DKKm)
Operating activities (21.2) (2.0) 7.0 4.4
Investing activities (2.0) (2.0) (3.7) (2.2)
Free cash flow (23.2) (4.0) 3.3 2.2
Financing activities (4.7) 59.9 (0.5) (1.7)
Cash flow for the year (27.9) 55.9 2.8 0.5
FINANCIAL POSITION (DKKm)
Balance sheet total 53.8 72.6 20.2 10.4
Intangible assets 5.9 5.0 4.5 3.1
Right-of-use-assets 4.8 1.7 1.8 1.6
Cash 31.3 59.3 3.3 0.6
Total equity 30.8 57.0 1.6 0.6
FINANCIALS
1
Four-year overview
2022 2021 2020 2019
FINANCIAL RATIOS (%)
Revenue year-on-year-growth 28% 34% 25% -
SaaS revenue year-on-year-growth 42% 31% 32% -
Consultancy revenue year-on-year-growth (24%) 47% 2% -
Gross profit margin 89% 92% 89% 87%
EBITDA margin (52%) (4%) 15% 21%
EBIT margin (60%) (11%) 8% 13%
RATIOS
1
2022 2021 2020 2019
Annual recurring revenue (DKKm) 45.2 31.3 22.4 16.9
Annual Recurring revenue year-on-year-growth 44% 40% 32% -
Net ARR retention rate 116% 107% - -
Average ARR per client (DKK’000) 248 194 185 184
ARR retention rate 95% 97% 94% -
ARR expected lifetime (years) 22 38 - -
Number of clients 182 161 121 92
Client year-on-year-growth 13% 33% 32% 35%
Client retention 93% 94% 95% 92%
Client expected lifetime (years) 15 17 20 13
SaaS share of revenue 87% 78% 80% 76%
SAAS KEY METRICS
1
1 This overview only contains four years as Relesys adopted IFRS from 2019 and going forward.
MANAGEMENT’S REVIEW
…Relesys takes clients into the future with one unified
platform – ensuring that all information, training and
communication is right there in their pocket.
Many industries - such as retail, manufacturing,
transportation or hospitality - communicate and
engage with their employees like in the 90s…
GAMIFICATION INTEGRATIONS CAMPAIGNS TRAINING NEWS
KPI’S MY TASKS CHAT CALENDAR SOCIAL WALL
BULETTIN
BOARDS
NEWS
POSTERS
PRINTED
HANDBOOKS
UNAUTHORIZED
SOCIAL GROUPS
DISPERSED
TRAINING
OUTDATED
INTRANETS
LACK OF
COMMUNICATION
OVERLOOKED
CAMPAIGNS
UNREAD
BROCHURES
INFORMATION ONLY
IN STAFF ROOMS
11 | ANNUAL REPORT 2022
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We are proud
of our clients
The largest share of Relesys’ clients are based in Denmark, Sweden, Benelux,
and North America. In 2022 Relesys expanded and extended the client base,
with wins in both current and new markets such as Iceland and Greenland.
New agreements were also made with affiliates of existing clients, and all in all
the result was a 83% year-on-year growth in ARR from foreign country clients.
By the end of 2022, Relesys had clients in 14 different countries.
In 2022, Relesys has continued to develop partnerships with our existing
clients, and Relesys is happy to announce that we now have more market-
leading brands to the growing client base, including Lucardi, Sonova, Dunkin
Donuts (The Netherlands), Sticks ‘n’ Sushi, LeDap, and 27 others.
ARR GROWTH
MANAGEMENT’S REVIEW
33%
40%
44%
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Relesys’ Sales and Marketing strategy
for attracting new clients
Direct sales via signing of blue-chip clients
To attract new clients Relesys has successfully teamed up with
selected blue-chip clients that are market-leaders in their respective
industries. In recent years, this strategy has been key to growth and to
the overall success of Relesys.
Active client relationships
Owing to the active client relationships (what Relesys calls the “marriage
strategy”), historically many clients have been attracted through word of
mouth. More specifically, 7 out of 10 new clients have had references
from existing clients.
Three-pillar sales & marketing set-up
New leads and sales are generated from one of three marketing and
sales funnels: account-based marketing, inbound marketing, and
outbound activities.
Applying different approaches enables Relesys to attract both large
enterprise clients and mid-market clients.
Relesys’ value
proposition
Relesys’ sales
strategy
MANAGEMENT’S REVIEW
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Generating high net uplift
Relesys has realised a strong growth from existing clients. Strong net
ARR retention is ensured by the Relesys Client Success team and its
close collaboration with every single client of Relesys. The Relesys
platform is unique for its broad and deep functionality making it an
obvious choice for many clients. However, the Relesys team is also
unique for the specialised industry knowledge and strong subject matter
experts within each professional field that the pro-modules support.
This means that Relesys continuously collaborates with each client,
enabling the clients to develop their businesses from the use of the
Relesys platform. Furthermore, this ensures that Relesys continuously
develops its unique market offering to fit with the client’s needs.
Relesys calls this “the marriage strategy”. A strategy that feeds on long-
lasting client relationships resulting in high client retention and strong net
ARR retention rates from: 1) more user licences sold e.g. from rolling out
in new parts of client organisation, 2) expanded use of product through
pro-modules and recommended add-ons, or 3) by being able to charge
more for the existing scope of licences/products.
This chart shows SaaS revenue
development from clients grouped by the
year that the individual client subscribed
for the Relesys platform.
SAAS REVENUE COHORTS
All clients have Essentials which means that
Relesys has sold 256k essential licences.
The lowest number of licences for one client
is less than 200, and the largest number for
one client is 62,500.
Essentials and pro-modules are priced as
a monthly user licence typically invoiced 12
months in advance.
More than 44% clients has at least one
pro-module.
Add-ons are priced as a monthly licence fee
per add-on typically invoiced 12 months in
advance.
Most clients have at least one integration.
One client has 17 different languages, but
some clients also only have one.
MANAGEMENT’S REVIEW
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Executing according to the plan
One year into the growth strategy, Relesys has executed on the
financial plan including expansion in existing markets and opening
of a new sales office in the UK. The result was strong ARR and
revenue growth, outperforming the original guidance for ARR and
at the revenue guidance. Furthermore, the ARR growth was at a
FCF multiple of -1.7, which was in line with the plan for spending
the proceeds from the capital rise in 2021.
Financial review
RESULTS (DKK million) 2022 2021 Growth
Revenue 44.1 34.5 28%
SaaS revenue 38.4 27.0 42%
Consultancy revenue 5.7 7.5 (24%)
Costs of sales 4.9 2.8
Gross profit 39.2 31.7 24%
Gross margin 89% 92%
Other external expenses 18.6 9.8
Staff costs 43.7 22.3
Other operating income 0.2 0.2
Other operating expenses 0.0 1.1
Operating loss before amortisation and
depreciation (EBITDA)
(23.0) (1.2)
EBITDA margin (52%) (3%)
Depreciation, amortisation, and impairment losses 3.3 2.6
Operating loss (EBIT) before special items (26.3) (3.8)
Net financial expenses 1.2 0.4
Loss before tax (27.5) (4.2)
Tax on loss for the year 1.3 0.6
Loss for the year (26.2) (3.6)
Mads S. Larsen
CFO
The development in FCF multiple has been a result of accelerating
growth in foreign markets. Prior to 2020, Relesys had never had
negative FCF multiples or negative results. The recipe for “back to
black” is therefore well-known.
DEVELOPMENT IN FCF MULTIPLE
MANAGEMENT’S REVIEW
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REVENUE
Revenue was DKKm 44.1 in 2022 (2021: DKKm 35.5), which was towards the
upper end of the guided range of DKKm 42 – 45. The SaaS revenue grew by
42% year-on-year, while revenue from consultancy services had a decline
of 24% year-on-year. The decline in consultancy revenue was caused by
capacity challenges while reorganising the development team in Vilnius.
Development in number of clients and client retention rates
GROSS PROFIT
Gross profit was DKKm 39.2 in 2022 (2021: DKKm 31.7), which was a year-on-
year growth of 24%. Gross margin was 89% compared to 92% last year. The
drop in gross margin was driven by 1) change in revenue mix between SaaS
and consultancy revenue and 2) price increase related to server costs (like for
like cost of server capacity in DKK).
ANNUAL RECURRING REVENUE
ARR was DKKm 45.2 at the end of 2022 (2021: DKKm 31.3), which was slighty
above the guided range of DKKm 44 – 45. ARR growth of 44% was compiled
by 83% growth in ARR from clients in foreign markets and by 25% growth
from clients in the domestic market of Denmark. By the end of 2022 42% of
ARR was based on clients in foreign markets.
During 2022 Relesys grew ARR from existing clients by DKKm 5.0. Relesys
realised a strong net ARR uplift of 21% from existing clients partly offset by 14
clients churning representing 5% ARR churn. During 2022 Relesys renewed
agreements with the five largest clients measured by ARR for an additional 24
to 36 months. By the end of 2022 no client represents more than 10% of either
ARR or total revenue.
During 2022 Relesys signed with 32 new clients adding a total of DKKm 8.9
to ARR, which was an ARR average of DKKk 278. The average client ARR was
DKKk 248 by the end of 2022 compared to DKKk 194 by the end of 2021.
STAFF COSTS
Staff costs were DKKm 43.7 in 2022 (2021: DKKm 22.3). The year-on-year
growth in staff cost was mainly driven by cost related to the increased number
of FTEs in Sales and Marketing. An instrumental part of Relesys’ growth
strategy is to grow in foreign markets, and therefore the sales team in each of
the locations abroad has been extended to reflect the growth ambition. During
2022 Relesys has also been changing from a set-up with a mix of external
and internal development to only have internal development by the end of
2022. The change was a result of the geo-politic climate in Belarus where the
external development team was located. As a result, Relesys decided to open
an office with internal development in Vilnius, Lithuania.
Development in average full-time equivalent employeesDevelopment in annual recurring revenue
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CASH FLOW FROM OPERATING ACTIVITIES
Cash flow from operating activities was an outflow of DKKm 21.2 (2021:
outflow of DKKm 2.0). The outflow in 2022 was related to an increase in the
operations-related costs (e.g. staff costs and increased sales and marketing
activities) and was planned as part of the growth strategy.
CASH FLOW FROM INVESTING ACTIVITIES
Cash flow from investing activities was an outflow of DKKm 2.0 (2021: outflow
of DKKm 2.0). During the year, Relesys continued to invest in its product
platform (intangible assets). As in previous years, Relesys invested in both
the Relesys Core (Essentials) module as well as in each of the Relesys
pro-modules. Moreover, Relesys sold a tangible asset resulting in an inflow
of DKKm 0.9 and increased the balance of non-current assets resulting in an
outflow of DKKm 0.7, which was related to contract costs and deposits.
CASH FLOW FROM FINANCING ACTIVITIES
Cash flow from financing activities was an outflow of DKKm 4.8 (2021: inflow
of DKKm 59.9). The outflow was related to repayment of borrowings (partly
related to the sale of the tangible asset) and payment of principal portion of
lease liabilities.
2022 2021
Cash flow from operating activities (21.2) (1.9)
Cash flow from investing activities (2.0) (2.0)
Free cash flow (23.2) (4.0)
Cash flow from financing activites (4.7) 59.9
Cash flow for the period (27.9) 55.9
DKKm
2022 2021
Interest expenses 389 163
Foreign exchange losses 339 55
Interest on lease liabilities 200 89
Other financial expenses 311 47
Total 1,239 354
DKKk
NET FINANCIAL EXPENSES
Net financial expenses were DKKm 1.2 in 2022 (2021: DKKk 354). The
increase in the account balance can be attributed to 1) interest on lease
liabilities due to new leases and revaluations of existing leases, 2) foreign
exchange losses, 3) negative interest rates related to cash at banks and
4) expenses related to being a listed company.
OTHER EXTERNAL EXPENSES
Other external expenses were DKKm 18.6 in 2022 (2021: DKKm 9.8).
The increase in other external expenses can be attributed to 1) short
term investments in sales and marketing as part of the growth strategy,
2) purchase of low-value assets for new employees, 3) short-term leases
of new office spaces which are not recognised as IFRS 16 and 4) the
general growth of Relesys.
AMORTISATION AND DEPRECIATION
Amortisation and depreciation were DKKm 3.3 in 2022 (2021: DKKm 2.6).
The growth in amortisation and depreciation was mainly due to new and
adjusted/revaluated property leases in accordance with IFRS 16.
EBIT
EBIT was negative DKKm 26.3 in 2022 (2021: negative DKKm 3.8). The
negative EBIT was in alignment with the strategy presented in the IPO
prospectus and the plan for using the proceeds from the IPO offering by
accelerating sales and marketing efforts.
The Group has capitalised DKKm 2.0 during the year and has a net book
value of DKKm 5.9 relating to the Group’s research and development
activities within the Group’s within normal product range.
The value of the capitalised research and development activities is
evaluated continously. The Group expects these activities to contribute
to the Group's continued growth and earnings.
DEVELOPMENT COSTS
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Annual Recurring Revenue (DKKm)
Revenue (QtD DKKm) Net ARR Retention (QtD)
Quarterly highlights
MANAGEMENT’S REVIEW
7%
2%
15%
ARR expected lifetime (Years, YoY) Number of clients and retention rate
-13%
-2%
-12%
13%
5%
12%
8%
30% YoY
-25%
4%
116% YoY
-24% YoY 12% YoY
44% YoY
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2022
QUARTERLY FIGURES (DKKm) Q1 Q2 Q3 Q4 Full year
Revenue 10.0 10.7 10.9 12.5 44.1
SaaS revenue 8.3 9.1 9.6 11.4 38.4
Consultancy revenue 1.7 1.6 1.3 1.1 5.7
Saas share of revenue (%) 83% 85% 88% 91% 87%
Annual Recurring Revenue 33.8 38.2 40.2 45.2 45.2
ARR churn (0.4) (0.3) (0.5) (0.2) (1.4)
ARR uplift 1.3 2.9 1.0 1.3 6.5
ARR from new sales 1.6 1.8 1.5 4.0 8.9
Net ARR retention rate (quarter-on-quarter) 103% 108% 101% 103% 116%
ARR retention rate (year-on-year) 97% 96% 96% 95% 95%
ARR expected lifetime (years) 29 25 25 22 22
Number of clients 163 171 173 182 182
Clients retention rate 94% 93% 92% 93% 93%
Average clients ARR (DKKk) 207 223 232 248 248
2021
Q1 Q2 Q3 Q4 Full year
7.7 7.8 9.4 9.6 34.5
5.9 6.0 7.5 7.5 26.8
1.8 1.8 1.9 2.1 7.7
77% 77% 80% 78% 78%
25.5 27.4 29.6 31.3 31.3
(0.1) (0.1) (0.2) (0.2) (0.6)
0.5 0.5 0.7 0.6 2.3
2.8 1.5 1.7 1.3 7.2
102% 102% 102% 101% 107%
- - - 97% 97%
- - - 38 38
133 136 160 161 161
95% 95% 95% 94% 94%
192 188 185 194 194
2022
YEAR-YEAR-GROWTH (%) Q1 Q2 Q3 Q4 Full year
Revenue 30% 37% 16% 30% 28%
SaaS revenue 41% 52% 28% 52% 43%
Consultancy revenue (6%) (12%) (32%) (48%) (26%)
Saas share of revenue (pp) 8 11 11 17 12
Annual Recurring Revenue 33% 39% 36% 44% 44%
ARR churn 300% 200% 150% 20% 140%
ARR uplift 177% 471% 39% 100% 177%
ARR from new sales (43%) 21% (11%) 214% 23%
Net ARR retention rate (pp) 1 6 (1) 1 9
ARR retention rate (pp) - - - (2) (2)
ARR expected lifetime (years) - - - (43%) (43%)
Number of clients 23% 17% 8% 13% 13%
Clients retention rate (pp) (1) (2) (3) (1) (1)
Average clients ARR 8% 19% 26% 28% 28%
Key Metrics
24 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Alexander Thomas
Martensen-Larsen
CHAIRMAN
Gender: Male
Member since: 2021
Up for re-election: Yes
Born: 1975
Independency: Considered Independent
Number of shares: 80,000 shares
Skills and experience:
• Management experience from Managerial
Duties and Directorships
• Strategy, business development and financial
management
• Organisational transformation
Other Managerial duties and Board positions:
Chairman NS Give Elementer A/S
Chairman Lundsby Industri A/S
Chairman GIVE ELEMENTFABRIK A/S
Chairman The Jewellery Room ApS
Chairman Give Elementer A/S
Vice chairman Tiger of Sweden Denmark A/S
Vice chairman BY MALENE BIRGER A/S
Vice chairman Gubra ApS
CEO AML ApS
MANAGEMENT’S REVIEW
Board of directors
Lars Kristian
Runov
BOARD MEMBER
Gender: Male
Member since: 2021
Up for re-election: Yes
Born: 1970
Independency: Considered Independent
Number of shares: 160,000 shares
Skills and experience
• General international management experience
• Digital Business Development
• Go-to-market strategies, revenue growth,
inbound marketing
• Vice President at Unity Technologies Inc.
2012-2016
• Chief Marketing Officer at Siteimprove A/S
2016-2018
Other Managerial duties and Board positions:
Member T-Bone K/S
Member Innoflow ApS
CEO Presence ApS
CEO CAS Presence ApS
CEO CL Presence ApS
Claus Jul
Christiansen
BOARD MEMBER
Gender: Male
Member since: 2021
Up for re-election: No
Born: 1966
Independency: Considered Independent
Number of shares: 93,868 shares
Skills and experience
• General international management experience
• Product Management, direct client sales and
partnership management
• Various directorships within Microsoft Denmark
2010-2021
Other Managerial duties and Board positions:
Member Acies A/S
Member KONSOLIDATOR A/S
Member UNIT IT A/S
CEO WORKPOINT A/S
Camilla
Simonsen
1
BOARD MEMBER
Gender: Female
Member since: 2021
Up for re-election: No
Born: 1981
Independency: Considered Independent
Number of shares: 80,000 shares
Skills and experience:
• General international management experience.
• Extensive sales experience and international
expansion
• COO of Siteimprove A/S 2015 - 2021
Other Managerial duties and Board positions:
Member Pleaz ApS
Member Chief of Staff Siteimprove A/S
1 Resigned Jan 1, 2023
Thor Skov
Jørgensen
BOARD MEMBER
Gender: Male
Member since: 2021
Up for re-election: Yes
Born: 1982
Independency: Considered Independent
Number of shares: 32,000 shares
Skills and experience:
• General international management experience
• Strategy, commercial excellence and change
• management
• Extensive knowledge of digital transformation in
the retail industry
Other Managerial duties and Board positions:
Member SKAGENFOOD A/S
CFO OK a.m.b.a.
25 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Board of Directors
COMPOSITION OF BOARD OF DIRECTORS
In accordance with Relesys’ Articles of Association, the Board of Directors
must comprise at least five and not more than seven Directors. Directors are
elected for a term of one year, and new Directors are elected according to the
Danish Companies Act.
In the end of 2022, Relesys’ Board of Directors consisted of five members,
including the Chairman. The Board of Directors’ primary objective is to
supervise the work of the Executive Management and the overall strategic
direction.
COMPETENCIES OF THE BOARD
The composition of the Board of Directors is intended to ensure that the
Board’s competency profile is diverse so that it can perform its duties
effectively.
The current competencies required of Board members are: long-standing
experience and knowledge within the retail industry, together with extensive
skills within international tech and Software-as-a-Service growth and
expansion, strategy, change management, business development and
finance.
See page 24 for a description of the individual Directors’ competencies and
experience.
BOARD MEETINGS
In 2022, the Board of Directors held four ordinary board meetings. The agenda
for each is defined in accordance with the annual cycle of the Board to make
sure the strategic and operational policy framework of the Group is always up
to date and in accordance with the emphasis defined by the Board.
Alexander Thomas Martensen-Larsen 4/4
Camilla Abildgaard Simonsen (resigned January 2023) 4/4
Thor Skov Jørgensen 4/4
Claus Jul Christiansen 4/4
Lars Kristian Runov 4/4
REMUNERATION POLICY
Remuneration of the Board of Directors and the Executive Board is carried
out in accordance with the Relesys Remuneration Policy as adopted by the
Extraordinary General Meeting the 1st of November 2021.
The purpose of the Remuneration Policy is to ensure that Relesys is able to
attract and retain a qualified management team, to align management and
shareholder interest, and to create sufficient incentive for the long-term value
creation of the Company. Relesys Remuneration Policy is available at https://
investors.relesys.net/.
Report on Corporate Governance cf. section 107b of the Danish Financial
Statements Act
In managing Relesys, the Board of Directors applies the latest
Recommendations on Corporate Governance issued by the Danish Committee
on Corporate Governance. The Board uses the Recommendations for
guidance when setting up management structures, tasks and procedures and
checks against them to make sure that the Company is acting in accordance
with the principal intentions of the Recommendations. The Board regularly
assesses its procedures based on the Recommendations.
Adherence to the Recommendations is reported in the Statutory Report on
Corporate Governance available at https://investors.relesys.net /.
BOARD MEETINGS ATTENDED:
Remuneration
Corporate Social Responsibility
Relesys recognises its social responsibility as a corporation and employer.
As part of this responsibility, Relesys has adopted a Corporate Social
Responsibility Policy that outlines Relesys’ stance on human rights, labor and
employment rights, environmental aspects, and anti-corruption.
The Corporate Social Responsibility Policy is available at https://investors.
26 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Management team
MANAGEMENT’S REVIEW
Jesper Roesgaard
Position: CEO and Co-Founder
Member since: 2014
Born: 1974
Martin Sørensen
Position: CTO
Seniority: 2016
Born: 1980
Tine Pyndt Jørgensen
Position: Director of Client Success
Seniority: 2022
Born: 1993
Mie Wrønnum Wiinberg
Position: VP Enterprise Consultant
Seniority: 2017
Born: 1991
Jens Ole Lebeck
Position: COO and Co-Founder
Member since: 2014
Born: 1969
Mads Stoffer Larsen
Position: CFO
Member since: 2021
Born: 1985
Executive management
Extended management team
27 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
27 Jan. No. 1 Relesys announces changes in Executive Management
28 Mar. No. 2 Relesys A/S realises growth in Annual Recurring Revenue of 40% in 2021
1 Apr. No. 3 Relesys A/S: Notification of transactions by persons discharging managerial
responsibilities and person closely associated with them
12 Apr. No. 4 Notice of Annual General Meeting of Relesys A/S
27 Apr. No. 5 Relesys A/S announces results of the Annual General Meeting 2022
25 May. No. 6 Relesys realises 33% year-over-year growth in Annual Recurring Revenue in Q1
2022
29 Aug. No. 7 Relesys reports 40% year-over-year growth in Annual Recurring Revenue in H1
22 Sep. No. 8 Changes to the Board of Directors of Relesys A/S
29 Nov. No. 9 Relesys reports 36% year-on-year growth in Annual Recurring Revenue in Q3
2022. ARR and Revenue Guidance Range narrowed
5 Dec. No. 10 Upward adjustment of ARR guidance for 2022
23 Dec. No. 11 Upward adjustment of ARR guidance for 2022
COMPANY ANNOUNCEMENTS
In 2022, Relesys published 11 company announcements. These are listed in the chart below:
Number of share of DKK 1 on 31 Dec. 2022 51,040,000
Restrictions on transferability and voting rights None
Listed Nasdaq First North Premier Growth Market Denmark
Trading symbol RELE
ISIN code DK0061680436
RELESYS SHARE DATA
Financial calendar for
2023:
Annual General Meeting
27 April
Quarterly Update (Q1)
11 May
Interim Report (Q2)
29 August
Interim Report (Q3)
29 November
COMMUNICATION WITH SHAREHOLDERS
Through professional, transparent, and proactive communication, we wish to
provide the basis for a fair pricing of our share, resulting in long-term economic
value for our shareholders. To keep our investors and other stakeholders up to date
with the latest developments throughout the year, our Executive Management and
Investor Relations stay in close contact with existing and potential investors through
financial releases, company announcements, and press releases, to maintain an
open and constructive dialogue with the capital market.
When asked to review analyst models and reports, the Company limits its
comments to correcting factual historical information and drawing attention to
the publicly available information. Furthermore, the Company has a slient period
prior to the release of a financial report. For more information about our Investor
Relations Policy, please visit: https://investors.relesys.net/
DIVIDENDS
The Company’s ability to pay dividends depends, among other things, on its
financial condition, working capital requirements, the availability of distributable
profits and reserve and cash available, and other factors that the Board of Directors
may deem relevant. During the period of the current growth strategy, the Board of
Directors proposed not to pay dividends as the Company is in a growth phase and
intends to reinvest any profit in activities to continue the growth.
Shareholder information
MANAGEMENT’S REVIEW
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Consolidated financial
statements
02
29 Statement by the Board of Directors and the Executive Management
30 Independent auditor’s report
32 Consolidated income statement
32 Consolidated comprehensive income
33 Consolidated balance sheet
34 Consolidated statement of changes in equity
34 Consolidated cash flow statement
35 Notes
29 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Executive Management
Board of Directors
30 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Independent auditor’s report
31 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
CVR No 33 77 12 31
32 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Note
2022 2021
Revenue
4,5
Cost of sales (4,946 ) (2,763 )
Gross profit 39,198 21,914
Other external expenses (18,615 ) (9,823 )
Staff costs
6,7
(43,716 ) (22,289 )
Other operating income 163 182
Other operating expenses - (1,053 )
Depreciation, amortisation, and impairment
8
(3,320 ) (2,584 )
Operating loss (26,290 ) (3,830 )
Financial income
9
Financial expenses
10
(1,239 ) (372 )
Loss before tax (27,529 ) (4,184 )
Tax for the year
11
Loss for the year (26,228 ) (3,626 )
DKK’000
2022 2021
Exchange differences on translation of foreign operations (11 ) (58 )
Other comprehensive income for the year, net of tax (11 ) (58 )
Total comprehensive income for the year (26,239 ) (3,684 )
PROFIT OR LOSS FOR THE PERIOD ATTRIBUTABLE TO:
Non-controlling interests - 78
Owners of the parent (26,228 ) (3,548 )
(26,228 ) (3,470 )
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO
Non-controlling interests - 78
Owners of the parent (26,239 ) (3,762 )
(26,239 ) (3,684 )
Earnings per share (DKK) (0.51 ) (0.14 )
Earnings per share, diluted (DKK) (0.51 ) (0.14 )
Consolidated
income statement
Consolidated
comprehensive income
33 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Note
2022 2021
Intangible assets
12
Property, plant and equipment
13
Contract costs
5
Right-of-use assets
14
Deposits
15
Total non-current assets 11,912 8,228
Trade receivables
16
Contract costs
5
Income tax receivables 402 556
Other receivables 144 392
Prepayments 1,039 13
Cash 31,333 59,260
Total current assets 38,294 64,357
Total assets 50,206 72,585
DKK’000
Note
2022 2021
Share capital
17
Share premium 68,890 68,890
Retained earnings (38,132 ) (12,345 )
Translation reserve (69 ) (58 )
Total equity 31,199 56,997
Interest bearing liabilities - 639
Deferred tax
11
Lease liabilities
14
Other payables
18
Total non-current liabilities 5,006 2,843
Interest bearing liabilities - 2,314
Lease liabilities
14
Trade payables 1,545 1,955
Income tax payable 21 14
Deferred income
5
Other payables
18
Total current liabilities 14,001 12,745
Total liabilities 19,007 15,588
Total equity and liabilities 50,206 72,585
ASSETS EQUITY AND LIABILITIES
Consolidated balance sheet
34 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Consolidated cash flow statement
DKK’000
2022 2021
Operating loss (26,290 ) (3,830 )
Gain on disposal of tangible assets 60 -
Depreciation, amortisation and impairment losses 3,320 2,584
Share-based payments expense 440 100
Change in working capital 2,366 (805 )
Income taxes received (paid) (22 ) 225
Interest received - 18
Interest paid (1,039 ) (239 )
Cash flow from operating activities (21,165 ) (1,947 )
Investments in intangible assets (1,957 ) (1,714 )
Investments in tangible assets (233 ) (72 )
Proceeds from sales of tangible assets 850 -
Investments in other non-current assets (709 ) (227 )
Cash flow from investing activities (2,049 ) (2,013 )
Other loans raised - 2,196
Repayment of borrowings (2,953 ) (118 )
Payment of principal portion of lease liabilities (1,756 ) (1,124 )
Investment in non-controlling interest - (4,910 )
Transaction coss from capital increase - (5,142 )
Cash from capital increase - 69,000
Cash flow from financing activities (4,709 ) 59,902
Change in cash and cash equivalents
Cash at 1 January 59,260 3,327
Net cash flow (27,923 ) 55,942
Currency translation (4 ) (9 )
Cash at 31 December 31,333 59,260
Consolidated statement of changes in equity
2022
DKK’000
Share
capital
Share
premium
Retained
earnings
Translation
reserve Total
Non-
controlling
interests Total
Balance at 1 January 50 - 1,444 2 1,496 59 1,555
Net loss for the period - - (3,626 ) - (3,626 ) 78 (3,548 )
Other comprehensive income - - - (58 ) (58 ) - (58 )
Total comprehensive income - - (3,626 ) (58 ) (3,684 ) 78 (3,606 )
Acquisition of non-controlling interests - - (4,771 ) (2 ) (4,773 ) (137 ) (4,910 )
Capital increase as part of company
transformation
Capital increase as part of IPO 110 68,890 - - 69,000 - 69,000
Transaction cost for equity issuance - - (5,142 ) - (5,142 ) - (5,142 )
Share-based payments - - 100 - 100 - 100
Total transactions with the owners 460 68,890 (10,163 ) (2 ) 59,185 (137 ) 59,048
Balance at 31 December 510 68,890 (12,345 ) (58 ) 56,997 - 56,997
2021
DKK’000
Share
capital
Share
premium
Retained
earnings
Translation
reserve Total
Balance at 1 January 510 68,890 (12,345 ) (58 ) 56,997
Net loss for the period - - (26,228 ) - (26,228 )
Other comprehensive income - - - (11 ) (11 )
Total comprehensive income - - (26,228 ) (11 ) (26,239 )
Share-based payments - - 440 - 440
Total transactions with the owners - - 440 - 440
Balance at 31 December 510 68,890 (38,132 ) (69 ) 31,199
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Notes to the consolidated
financial statements
36 1. Accounting policies
42 2. Impact from adoption of new and amended standards
42 3. Critical accounting judgements and key sources of estimation uncertainty
43 4. Segment information
43 5. Revenue
44 6. Staff costs
45 7. Share-based payments
46 8. Amortisation, depreciation and impairment
46 9. Financial income
46 10. Financial expenses
47 11. Tax for the year
48 12. Intangible assets
49 13. Property, plant & equipment
50 14. Leases
51 15. Deposits
51 16. Trade receivables
52 17. Share capital and earnings per share
52 18. Other payables
53 19. Financial risks
56 20. Working capital changes
56 21. Other disclosures relating to consolidated statement of cash flow
57 22. Related parties
57 23. Events after the reporting period
36 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Basis of preparation
The Financial Statements are presented in Danish kroner
(DKK). All amounts have been rounded to nearest DKK
thousand, unless otherwise indicated.
The Financial Statements have been prepared on a going
concern basis and in accordance with the historical cost
convention, except where IFRS explicitly requires use of
other values.
For the purpose of clarity, the Financial Statements
and the notes to the Financial Statements are prepared
using the concepts of materiality and relevance. This
means that line items not considered material in terms
of quantitative and qualitative measures or relevant to
financial statement users are aggregated and presented
together with other items in the Financial Statements.
Similarly, information not considered material is not
presented in the notes.
The accounting policies have been applied consistently
during the financial year and for the comparative figures.
Basis of consolidation
The Group controls an entity where the group is exposed
to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns
through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are
deconsolidated from the date that control ceases.
This year, the Group has moved to prepare the financial statements in a larger class. The
Group’s Consolidated Financial Statements have been prepared in accordance with International
Financial Reporting Standards (“IFRS”) as adopted by the EU and additional Danish disclosure
requirements for the financial statements of reporting class C enterprises, cf. the Danish
Executive Order on Adoption of IFRSs (“IFRS-bekendtgørelsen”) issued in accordance with the
Danish Financial Statements Act (“DFSA”).
Principles of consolidation
The Consolidated Financial Statements are prepared on
the basis of the Financial Statements of the Parent and its
subsidiaries.
The Consolidated Financial Statements are prepared
by combining items of a uniform nature and
subsequently eliminating intercompany transactions,
internal shareholdings and balances and unrealised
intercompany gains or losses. The Financial Statements
used for consolidation are prepared in accordance with
the Group’s accounting policies.
Accounting policies are described in full on the
subsequent pages.
Name Country Ownership
Relesys B.V The Netherlands 100%
Relesys AB Sweden 100%
Relesys Ltd. The United Kingdom 100%
Relesys UAB Lithuania 100%
Relesys Inc. The United States 100%
Accounting policies
NOTE 1
37 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
The Group uses certain financial measures that are not defined in IFRS to describe the Group’s financial performance. These financial measures may
therefore be defined and calculated differently from similar measures in other companies, and thus not be comparable.
NOTE 1
Accounting policies (Continued)
Annual recurring revenue:
ARR is the annualised value of subscriptions at a given date, entered into
with Relesys.
New subscriptions are included in ARR at the time of entering into a
binding agreement, which would typically occur at the time of signing an
agreement.
For changes to existing subscriptions, ARR impact is included at the time
that the change enters into force.
Subscriptions that are terminated (ARR churn) are reduced on ARR at
the time that the agreement ceases to exist. Subscriptions are typically
entered into with an irrevocable period of 12–36 months. Inclusion of ARR is
conducted in the following manner:
• For 12-month subscriptions, ARR is included as 1 time the value of the
agreement.
• For 24-month subscriptions, ARR is included as 1/2 times the value of the
agreement.
• For 36-month subscriptions, ARR is included as 1/3 times the value of the
agreement.
• Monthly subscriptions and existing subscriptions that are beyond the
irrevocable period are included in ARR as 12 times the actual monthly
value of the subscription (MRR).
The value of client customisation and integrations is included in ARR
calculated as a prorated value over the subscription period.
ARR is calculated in Danish kroner. When entering into an agreement in a
foreign currency, a currency translation is conducted at the time of entering
into the agreement.
SaaS share of revenue: SaaS revenue / Revenue
Annual recurring revenue (year-on-year growth): (ARR current year - ARR
prior year) / ARR prior year
Net ARR retention rate: (Starting ARR + ARR net uplift of existing clients -
ARR churn of existing clients) / Starting ARR
Average ARR per client: (ARR / Number of clients)
ARR churn rate: (ARR amount at beginning of period - ARR amount at end
of period) / ARR amount at beginning of period
ARR retention: 100% - Churn %
ARR expected lifetime: 1 / ARR churn rate
Number of clients: Relesys counts clients by the number of groups/
companies with whom Relesys has subscription agreements.
Client (year-on-year growth): (Clients current year - Clients prior year) /
Clients prior year
Client churn rate: (Clients at beginning of period - Clients at end of period)
/ Clients at beginning of period
Client retention: 100% - Churn %
Client expected lifetime: 1 / Client churn rate
Non-IFRS financial measures
Notes link
38 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
NOTE 1
Accounting policies (Continued)
Cash flow statement
The cash flow statement is presented using the indirect
method and shows cash flows from operating, investing,
and financing activities for the year as well as the Group’s
cash and cash equivalents at the beginning and end of
the financial year.
Cash flows from operating activities are calculated based
on operating profit/loss, adjusted for the cash flow effect
of non-cash operating items, working capital changes,
financial expenses paid and income tax paid.
Cash flows from investing activities comprise payments
in connection with the acquisition and sale of non-current
intangible assets, property, plant and equipment, and
financial assets.
Cash flows from financing activities comprise payments
arising from changes in the size or composition of the
Group’s share capital and dividend paid. Cash and cash
equivalents comprise cash at the bank and in hand.
Foreign currency
translation
A functional currency is determined for each Group
entity. The functional currency is the currency used in
the primary financial environment in which the individual
Group entity operates. The Group’s presentation currency
is Danish Kroner.
On initial recognition, foreign currency transactions are
translated into thefunctional currency at theexchange
rate at the transaction dates. Foreigncurrency translation
differences between theexchange rates at the transaction
date and the date of payment are recognised in the
incomestatement under financials.
Monetary items denominated in a foreign currency are
translated at theexchange rate at thereporting date. The
difference between the exchangerates at the reporting
date and the transactiondate or the exchange rateused
in the latest annual report is recognised in the income
statementunder financials.
Foreign currency translation differences arising
on the translation ofnon-monetary items
arerecogniseddirectly in other comprehensive income.
When preparing the consolidated financial statements, the
income statements of entities with a functional currency
other than DKK are translatedat the average exchange
rate for the period, and balance sheet items are translated
at the closing rate at the end of the reporting period.
Foreign exchange differences arising on translation of the
equity of foreign entities are recognised directly in other
comprehensive income.
Foreign exchange differences arising on the translation of
income statements from the average exchange rate for the
period to the exchange rate at the reporting date are also
recognised in other comprehensive income. Adjustments
are presented under a separate translation reserve in
equity.
Statement of profit or loss
Revenue
The Group has two revenue streams, being SaaS
revenue and consultancy. Revenue mainly derives from
subscription fees charged for the Group’s software
subscription. For software contracts, which are comprised
of several components, the total contract sum is allocated
to the separate performance obligations for the purpose of
revenue recognition.
Revenue recognition requires an agreement with the
client, which creates enforceable rights and obligations
between the parties, has commercial substance, and
identifies payment terms. In addition, it must be probable
that the consideration determined in the contract will be
collected.
Revenue is measured based on the consideration to
which the Group expects to be entitled in a contract with
a client and excludes amounts collected on behalf of third
parties. The Group recognises revenue when it transfers
control of the licence or service to a client. All revenue is
derived from contracts with clients.
SAAS REVENUE
SaaS revenue consists of two revenue streams;
subscription fees and configuration & integrations.
Subscription fees cover subscription, hosting, and
maintenance. The subscription is not distinct from the
hosting service, revenue is therefore recognised over time,
as the clients are receiving and consuming the benefits of
the Group‘s performance while performing. The hosting
service and maintenance are therefore bundled to one
performance obligation together with the subscription.
Fees related to configuration and integration include
services related to installation, implementation, and
configuration. The services are not distinct from the
subscription fee as the client cannot benefit from the
service on its own and are not separately identifiable from
other promises in the contract. Revenue is recognised
over time, as the clients are receiving and consuming the
benefits of the Group’s performance while performing.
CONSULTANCY
Consultancy includes client-specific development and
customisation, as well as training and workshops. The
consultancy is distinct from the subscription fee as the
client can benefit from the service on its own and the
promise to transfer the service to the client is separately
identifiable from other promises in the contract. Revenue
is recognised over time as Relesys’ performance does not
create an asset with alternative use and the entity has a
right to payment for performance completed to date.
Cost of sales
Cost of sales comprises costs directly linked to revenue
in the financial year measured at cost, which is primarily
server costs to Microsoft Azure.
39 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Other operating income
and expenses
Other operating income and other operating expenses
comprise income and expenses of a secondary nature
relative to the primiary activities of the Group.
Cost to obtain a contract
The Group pays sales commission to its employees for
each contract that they obtain for sales of subscription.
The commissions are recognised as contract costs in the
statement of financial position and amortised between 24
and 36 months.
Capitalised contract costs are subject to an impairment
assessment at the end of each reporting period.
Impairment losses are recognised in profit or loss as staff
costs.
Other external expenses
Other external costs comprise costs incurred for
distribution, sales, advertising, administration, premises,
loss on receivables etc.
Staff costs
Staff costs include salaries and wages, including holiday
allowances, pensions, share-based payments, and other
social security costs, etc., for staff members.
Share-based payments
Share-based compensation benefits in respect of a
warrant program are provided to executive management,
other key management personnel and other employees.
The warrant program is classified as an equity
arrangement. As such, the fair value of the warrants
granted under the program is recognised as an expense
with a corresponding increase in equity. The total amount
to be expensed is determined by reference to the grant
date fair value of the warrants. The total expense is
recognised over the vesting period, which is the period
over which all of the specified vesting conditions are to
be satisfied. At the end of each period, the Company
revises its estimates of the number of warrants that
are expected to vest based on the non-market vesting
and service conditions. It recognises the impact of the
revision to original estimates, if any, in profit or loss,
with a corresponding adjustment to equity. Further
information about the share-based payment program is
disclosed in note 7.
Financial income and
financial expenses
Financial income and expenses include interest income,
interest expense, amortisation of borrowing costs, and
realised and unrealised exchange gains and losses.
disclosed in note 9 and 10.
Tax
Tax on the profit or loss for the year comprises the year’s
current tax and changes in deferred tax. The tax expense
relating to the profit or loss for the year is recognised
in the statement of profit or loss, and the tax expense
relating to items recognised in other comprehensive
income and directly in equity, respectively, is recognised
in other comprehensive income or directly in equity.
Exchange rate adjustments of deferred tax are
recognised as part of the adjustment of deferred tax for
the year.
Current tax payable and receivable is recognised in the
statement of financial position as the expected tax on
the taxable income for the year, adjusted for tax paid on
account. The current tax charge for the year is calculated
based on the tax rates and rules enacted at the statement
of financial position date.
Deferred tax is calculated using the liability method on
all temporary differences between the accounting and
taxable values of assets and liabilities.
Deferred tax assets are assessed yearly and only
recognised to the extent that it is more likely than not that
they can be utilised. Deferred tax assets, including the
tax value of tax losses carried forward, are recognised as
other non-current assets and measured at the amount at
which they are expected to be realised, either by setting
off deferred tax liabilities or by setting off tax on future
NOTE 1
Accounting policies (Continued)
earnings within the same legal entity or a jointly taxed
entity.
Deferred tax is measured based on the tax legislation
and statutory tax rates in the respective countries that
will apply under the legislation in force on the statement
of financial position date when the deferred tax asset
is expected to crystallise as current tax. Changes in
deferred tax resulting from changes in tax rates are
recognised in the statement of profit or loss.
The Group recognises deferred tax assets relating
to losses carried forward when Management finds
that these can be offset against taxable income in the
foreseeable future. An assessment is made taking into
consideration the effect of restrictions in utilisation in
local tax legislation. Future taxable income is assessed
based on budgets as well as Management’s expectations
regarding the growth and operating margin in the coming
years.
40 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Intangible assets
Intangible assets with determinable useful lives comprising
completed and in-progress development projects are
measured at cost less accumulated amortisation and
impairment losses. Completed development projects
by the Group are recognised as an asset if the cost of
development is reliably measurable and an analysis future
shows that the economic benefits from using the software
exceed the cost.
Development projects on clearly defined and identifiable
products and processes, for which the technical feasibility,
adequate resources and a potential future market
or development opportunity in the enterprise can be
established, and where the intention is to manufacture,
market or apply the product or process in question, are
recognised as intangible assets.
Development projects in progress are transferred to
completed development projects when finished and
amortisation starts.
Development costs that does not meet the criteria for
capitalization are recognised as costs in the income
statement as incurred.
Cost is defined as development costs incurred to the
development of projects and consists of direct salaries and
other directly attributable costs.
Amortisation of the asset begins when development is
complete, and the asset is available for use. It is amortised
over the expected useful life on a straight-line basis.
During the period of development, the asset is tested for
impairment quarterly.
Amortisation and impairment charges are recognised in the
statement of profit or loss.
Expected useful lives are reassessed regularly. The
Group regularly reviews the carrying amounts of its finite-
lived intangible assets to determine whether there is an
indication of an impairment loss. Development projects are
amortised on a straight-line basis over the remaining patent
period and subscription are amortised over the contract
period for a period of 5-7 years.
Property, plant and equipment
Property, plant, and equipment comprise other fixtures
and fittings, tools, and equipment. Property, plant, and
equipment are measured at cost less accumulated
depreciation and accumulated impairment losses.
The cost comprises the acquisition price and other
expenses directly attributable to preparing the asset for its
intended use.
Property, plant, and equipment are depreciated on a
straight-line basis over the expected useful lives of the
finite-lived assets, which are as follows:
Balance sheet
The lease term is defined as the non-cancellable period
of a lease together with periods covered by options to
extend the lease if it is reasonably certain that the options
will be exercised, and periods covered by options to
terminate the lease if it is reasonably certain that the
options will not be exercised. A number of leases contain
extension and termination options in order to guarantee
operational flexibility in managing the leases.
The lease obligation, which is recognised in “Lease
liabilities”, is measured at the present value of the
remaining lease payments, discounted by the Group’s
incremental loan interest rate if the implicit interest rate is
not stated in the lease agreement or cannot reasonably
be determined. The lease obligation is subsequently
adjusted if:
• The value of the index or interest rate on which the
lease payments are based changes.
• There is a change in the expectations related to the
exercise of options to extend or shorten the lease
period due to a material event or material change in
circumstances that are within the control of the lessee.
• The lease term is changed as a result of exercising an
option to extend or shorten the lease term.
Subsequent adjustments of the lease obligation are
recognised as a correction to the right-of-use asset.
However, if the right-of-use asset has a value of DKK
0, a negative reassessment of the right-of-use asset is
recognised in the statement of profit or loss.
NOTE 1
Accounting policies (Continued)
Other fixtures and fittings, tools, and equipment: 3-5 years.
Property, plant, and equipment are tested for impairment
if indications of impairment exist. Property, plant, and
equipment are written down to their recoverable amount if
the carrying amount exceeds the higher of the fair value,
less costs to sell and the value in use. Depreciation and
impairment charges are recognised in the statement of
profit or loss.
Leases
When entering into an agreement, the Group assesses
whether an agreement is a lease agreement or contains a
lease element.
The right-of-use asset is measured at cost, which is
calculated as the present value of the lease obligation plus
any direct costs related to entering the lease and prepaid
lease payments.
The right-of-use asset is depreciated on a straight-line
basis over the shorter of the lease term and the useful life
of the asset.
The Group leases properties that include a service element
in the payments to the lessor. This service is deducted from
the lease payment when measuring the lease obligation.
Short-term leases with a maximum lease term of 12 months
and leases where the underlying asset has a low value are
not recognised in the statement of financial position.
41 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Trade receivables
Trade receivables are amounts due from clients for services
performed in the ordinary course of business. They are
recognised initially at the amount of consideration that
is unconditional unless they contain significant financing
components when they are recognised at fair value. The
group holds the trade receivables with the objective of
collecting the contractual cash flows and therefore measures
them subsequently at amortised cost using the effective
interest method less loss allowance.
The group applies the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables. The
measurement of the expected credit losses is based on an
individual assessment of trade receivables. The expected
loss rates are based on the payment profiles and the
corresponding historical credit losses experienced adjusted
to reflect current and forward-looking information affecting the
ability of the clients to settle the receivables.
Trade receivables are written off (either partially or in full)
when there is no reasonable expectation of recovery. The
costs of allowances for expected credit losses and writeoffs
for trade receivables are recognised in the statement of profit
or loss in other external expenses.
Deposits
Deposits are measured at amortised cost and represent lease
deposits etc.
Prepayments
Prepayments comprise incurred costs relating to subsequent
financial years. Prepayments are measured at cost.
Share premium
Share premium consists of positive differences between
the nominal value of share capital and amount paid by
shareholders for newly issued shares. Share premium is a
distributable reserve.
Translation reserve
Exchange rate differences arising from the translation of
foreign-controlled entities into the presentation currency,
DKK, are recognised in other comprehensive income and
accumulated on a separate reserve within equity. The
accumulated amount will be reclassified to profit or loss
when the net investment the translation reserve relates to is
disposed of.
Transaction costs related to
equity issuance
Qualifying transaction costs incurred in connection with the
issuance of equity instruments are deducted from equity.
Where the qualifying transaction costs related to the listing of
existing and new shares, the part of the total transaction costs
deducted from equity are based on the ratio between existing
and new shares.
Interest-bearing liabilities
Interest-bearing liabilities include bank loan and a credit
facility. Interest-bearing liabilities are initially recognised at
fair value and are subsequently measured at amortised cost
using the effective interest method.
Trade payables and other payables
Trade payables represent liabilities for goods and services
provided to the group and are initially recognised at fair value
and subsequently measured at amortised cost using the
effective interest method.
Other payables include bonus and commission accruals,
holiday pay obligations, payroll taxes, and VAT. Other
payables are measured at cost.
Deferred income
Payments received concerning future income are recognised
under deferred income.
NOTE 1
Accounting policies (Continued)
42 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Management has assessed the impact of new or amended accounting standards and interpretations
(IFRSs) issued by the IASB and IFRSs endorsed by the European Union effective on or after 1 January 2022.
Management assessed that application of these has not had a material impact on the consolidated financial
statements for 2022.
Furthermore, Management has assessed the impact of new or amended accounting standards and
interpretations (IFRSs) issued by the IASB that has not yet become effective. Management does not
anticipate any significant impact on future periods from the adoption of these amendments.
As part of the preparation of the Financial
Statements, Management makes a number of
accounting estimates and assumptions as a
basis for recognising and measuring the Group’s
assets, liabilities, income, and expenses as
well as judgments made in applying the entity’s
accounting policies. The estimates, judgments,
and assumptions made are based on experience
gained and other factors that are considered
prudent by Management in the circumstances,
but which are inherently subject to uncertainty
and volatility.
The assumptions may be incomplete or
inaccurate, and unforeseen events or
circumstances may occur, for which reason
the actual results may differ from the estimates
and judgments made. The accounting policies
are described in detail in note 1 to the Financial
Statements to which we refer.
Management considers the following accounting
estimates and judgments to be significant in the
preparation of the Financial Statements.
Estimates and assumptions
DEVELOPMENT COSTS
The Group capitalises costs for software
development projects. Initial capitalisation of
costs is based on management’s judgement
that technological and economic feasibility is
confirmed, usually when a product development
project has reached a defined milestone
according to an established project management
model. In determining the amounts to be
capitalised, Management makes assumptions
regarding the expected future cash generation of
the project and the expected period of benefits.
On 31 December 2022, the carrying amount of
capitalised development costs was DKK’000
5,858 (2021: DKK’000 5,032).
NOTE 2
Impact from adoption of new or
amended accounting standards
NOTE 3
Critical accounting judgements
and key sources of estimation
uncertainty
43 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
For management purposes and based on internal reporting information, the Group is organised
in only one operating segment, as the information reported includes operating results at a
consolidated level only. The costs related to the main nature of the business are not attributable
to any specific revenue stream or client type and are therefore borne centrally. The results of the
single reporting segment are shown in the statement of comprehensive income.
The Executive Management is the Chief Operating Decision Maker (CODM), which is made
up of the senior leadership across the respective functional areas and is responsible for
the strategic decision-making and for the monitoring of the operating results of the single
operating segment for the purpose of performance assessment. Segment performance is
evaluated based on profit or loss and is measured consistently with profit or loss in the Financial
Statements.
In 2022, no individual client exceeded 10% of the total revenue. (2021: One client with
accumulated revenue of 13%).
DKK’000
2022 2021
SaaS Business 38,421 27,013
Consultancy 5,724 7,487
Total 44,144 34,500
REVENUE FROM EXTERNAL CLIENTS
DKK’000
2022 2021
Current 454 166
Non-current 525 276
Cost to obtain contracts 979 442
CONTRACT COSTS
Deferred income primarily relates to advance consideration received from clients from the SaaS
Business for which revenue will be recognized over time. The outstanding balance of deferred
income increased from 2021 to 2022 was due to the continuous increase in the Group’s client
base.
DKK’000
2022 2021
Denmark 31,047 23,954
The Netherlands 3,228 3,586
Sweden 5,549 3,392
North America 1,174 1,452
Rest of the world 3,146 2,116
Total 44,144 34,500
EXTERNAL REVENUE BY GEOGRAPHY
DKK’000
2022 2021
Denmark 10,859 7,756
Rest of the world 454 223
Total 11,313 7,979
NON CURRENT ASSETS BY GROGRAPHY
DKK’000
2022 2021
Deferred income 8,247 4,909
During 2022, DKK’000 538 was recognised in the proft and loss statement relating to contract
costs from previous years and contract costs from sales during 2022.
NOTE 4
Segment information
NOTE 5
Revenue
44 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
The following table shows how much of the revenue recognised in the current reporting period relates to carried-
forward deferred income:
DKK’000
2022 2021
Amounts included in the deferred income balance at the beginning of the year 2,979 3,387
The following table shows the transaction price allocated to the remaining performance obligations (unsatisfied
or partially unsatisfied) resulting from consulting contracts and the SaaS Business:
DKK’000
2022 2021
Amounts of the transaction price allocated to remaining performance obligations 28,428 22,313
In the amount for remaining performance obligations are included the unsatisfied long-term contracts, which
include considerations for the users in the remaining contract period. The amount disclosed above does not
include variable considerations.
Management expects that 44% of the transaction price allocated to remaining performance obligations as of
31 December 2022 will be recognised as revenue during the next reporting period. The remaining 56% will be
recognised in the financial years of 2024 through 2026.
2022 Remuneration Pension Share-based Total
Board of directors 590 - - 590
Executive management 5,178 308 202 5,688
Subtotal 5,768 308 202 6,278
Other key management personnel 2,916 184 238 3,338
Total 8,684 492 440 9,616
BOARD OF DIRECTORS AND KEY MANAGEMENT PERSONNEL
DKK’000
2022 2021
Salaries and wages 39,027 19,794
Pension costs 1,336 1,139
Share-based payments 440 100
Other social security costs 645 365
Other staff costs 2,268 891
Total 43,716 22,289
STAFF COSTS
Pension costs relates to defined contribution plans.
Average number of full-time equivalent employees was 79 in 2022 and 56 in 2021.
NOTE 6
Staff costs
2021 Remuneration Pension Share-based Total
Board of directors 320 - - 320
Executive management 2,567 160 - 2,727
Subtotal 2,887 160 - 3,047
Other key management personnel 2,586 150 72 2,808
Total 5,473 310 72 5,855
NOTE 5
Revenue (Continued)
45 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
The Company has introduced a share-based payment program to selected “Other Key Employees”. The Company’s
current warrant program was approved by the shareholders in 2021 and introduced in November 2021.
2021 warrant program
The program was established with the purpose to create further incentive to the participants to work for and
contribute to future value added to the Company, thus creating positive development in the market value of the
Company’s share. Further, the program is instrumental to retaining the participants in the Company.
The participants are under the program granted warrants in the Company for no consideration, which entitle the
warrant holder to subscribe for A shares in the Company of a nominal value of DKK 0.01 without preemption right for
the shareholders of the Company. Participation in the warrant program is at the board’s discretion, and no individual
has a contractual right to participate in the plan or to receive any guaranteed benefits. The warrants are vesting over
a period of four years, with one forth after one year and thereafter one 48th per month. The exercise prices of the
warrants are listed below for the respective years.
Vested warrants are exercisable only upon an exit event and conditional on the warrant holder’s employment
or engagement with the Company have not terminated. However, vested warrants are exercisable only until the
expiration date as specified in the table further below. Upon the occurrence of an exit-event, all warrants will become
fully vested conditional on the holder’s continuing employment. The cost of the warrant program is recognized over
the expected vesting period considering the impact from accelerated vesting and expected time to exit.
Weighted
average
exercise price
per warrant
Number of
warrants
(thousands)
Weighted
average
fair value
per warrant
(determined on
grant date
2022
As of 1st day of January 6.25 1,276 1.02
Granted during the year - - -
Forfeited during the year - (255) -
As at 31st of December 6.25 1,021 1.02
Set out below are summaries or warrants granted under the warrant agreement:
NOTE 7
Share-based payment plans
Weighted
average
exercise price
per warrant
Number of
warrants
(thousands)
Weighted
average
fair value
per warrant
(determined on
grant date
2021
As of 1st day of January - - -
Granted during the year 6.25 1,276 1.02
As at 31st of December 6.25 1,276 1.02
46 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
2022 2021
Amortisation of intangible assets 1,167 1,168
Depreciation of property, plant and equipment 305 284
Depreciation of right-of-use assets 1,848 1,132
Total 3,320 2,584
NOTE 8
Amortisation, depreciation,
and impairment
DKK’000
2022 2021
Foreign exchange income - 18
Total - 18
NOTE 9
Financial income
NOTE 10
Financial expenses
DKK’000
2022 2021
Interest expenses 389 163
Foreign exchange losses 339 73
Interest on lease liabilities 200 89
Other financial expenses 311 47
Total 1,239 372
DKK’000
Expiry date Excercise
price
Warrants 31
December 2022
(thousand)
Granted date
07.11.2021 07.11.2025 6.25 1,276
- - - (255)
Total - - 1,021
Warrants outstanding at the end of the year have the following expiry date and exercise prices:
Weighted average remaining contractual life of warrants outstanding at the end of period (years) is 4.83. The fair value at grant
date is determined using a Black-Scholes Model calculation that takes into account the share price at grant date, the exercise
price, the risk free interest rate for the term of the warrents, the expected volatilit and the term of the warrant (the expected
maturity).
The average model inputs for the warrants granted during the year ended 31 December 2021 included:
The expected volatility rate is based on the annualised volatility of relevant peer groups derived from the standard deviation
of daily observations over 12 months ending 2021. The share price is equal to the listing price of Relesys A/S on the 1st of
December 2021, which is also the share price that cornerstone investors signed up for in the begining of November.
The expected maturity corresponds to the expected number of years until the occurance of an exit event.
a. Share price at grant date DKK 6.25
b. Exercise price DKK 6.25
c. Expected volatility rate (% p.a.) 19.52
d. Risk-free interest rate (% p.a.) 0.23
e. Expected maturity 4 years
NOTE 7
Share-based payment plans (Continued)
47 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
2022 2021
Current tax for the year (362) (457)
Adjustments recognised for tax from prior periods (13) -
Changes in deferred tax (926) (101)
Income tax reported in the income statement (1,301) (558)
Loss before tax (27,529) (4,184)
Tax calculated as 22% of loss before tax 6,056 938
Non-deductible expenses (140) (446)
Non-taxable income 19 -
Corrections related to subsidaries 49 (82)
Increased tax deduction regarding development projects (130%) 121 172
Other 12 (24)
Tax rate difference relation to subsidiaries 22 -
Non-capitalised tax assets (4,838) -
Effective tax 1,301 558
Effective tax rate for the year (%) 5% 13%
THE MAJOR COMPONENTS OF INCOME TAX EXPENSE FOR THE YEARS ENDED 31 DECEMBER 2022 AND 2021 ARE:
DKK’000 2022 2021
Deferred tax (liability) - (926)
Total - (926)
DEFERRED TAX IS RECOGNISED IN THE STATEMENT OF FINANCIAL POSITION AS FOLLOWS:
DKK’000
2021 2021
Intangible assets (1,173) (1,107)
Property, plant and equipment 50 (5)
Leases 49 22
Tax loss carried forward 6,329 164
Write-down of tax asset, net (5,255) -
Total - (926)
DEFERRED TAX CONCERNS
NOTE 11
Tax for the year
There is no expiration date on tax loss carried forward.
48 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Completed
development
projects
Development
projects in
progress Total
Cost at 1 January 8,839 104 8,943
Additions - 2,059 2,059
Transfers 1,517 (1,517) -
Disposals - (51) (51)
Cost at 31 December 10,356 595 10,951
Amortisation and impairment losses at 1 January (3,860) (51) (3,911)
Amortisation during the year (1,168) - (1,168)
Disposals (65) - (65)
Reversal of impairment losses - 51 51
Amortisation and impairment losses at 31 December (5,093) - (5,093)
Carrying amount at 31 December 5,263 595 5,858
2022 2021
Remaining years of amortisation: 1 - 7 years
Management has performed an impairment test on the development projects in progress which did not give any
indications of impairment.
Completed development projects relate to the further development of the Relesys platform, Relesys core
modules, and Relesys pro modules. Management has an expectation of positive earnings from each
development project.
It is Management’s assessment that the expected useful lives of the finite-lived assets, as well as the expected
future revenue streams from the assets, are sufficient to cover the value of recognised developed projects at the
reporting date.
NOTE 12
Intangible assets
DKK’000
Completed
development
projects
Development
projects in
progress Total
Cost at 1 January 6,855 373 7,228
Additions - 1,715 1,715
Transfers 1,984 (1,984) -
Cost at 31 December 8,839 104 8,943
Amortisation and impairment losses at 1 January (2,692) (51) (2,743)
Amortisation during the year (1,168) - (1,168)
Amortisation and impairment losses at 31 December (3,860) (51) (3,911)
Carrying amount at 31 December 4,979 53 5,032
49 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Other fixtures and
fittings, tools and
equipment Total
Cost at 1 January 1,514 1,514
Additions 233 233
Disposals (1,514) (1,514)
Cost at 31 December 233 233
Depreciation at 1 January (415) (415)
Depreciation during the year (306) (306)
Disposals 665 665
Depreciation at 31 December (56) (56)
Carrying amount at 31 December 177 177
2022 2021
NOTE 13
Property, plant and equipment
DKK’000
Other fixtures and
fittings, tools and
equipment Total
Cost at 1 January 1,442 1,442
Additions 72 72
Cost at 31 December 1,514 1,514
Depreciation at 1 January (131) (131)
Depreciation during the year (284) (284)
Depreciation at 31 December (415) (415)
Carrying amount at 31 December 1,099 1,099
50 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Property Cars Equipment Total
Cost at 1 January 2,870 394 789 4,053
Adjustments to opening balance 859 - - 859
Additions - 242 - 242
Adjustments and revaluations 4,165
1
- 69 4,234
Disposals (1,265) (170) (428) (1,864)
Cost at 31 December 6,629 466 430 7,525
Depreciation at 1 January (1,662) (301) (408) (2,371)
Adjustments to opening balance (83) - - (83)
Depreciation during the year (1,517) (93) (239) (1,849)
Disposals 933 170 428 1,531
Depreciation at 31 December (2,329) (224) (219) (2,772)
Carrying amount at 31 December 4,300 242 211 4,753
2022
DKK’000
2022 2021
At 1 January 1,781 1,930
Adjustments to opening balance 839 -
Additions 242 648
Accrual of interest 200 89
Payments (1,956) (1,214)
Adjustments and revaluations 4,239 328
Disposals (369) -
At 31 December 4,976 1,781
Non-current 4,365 680
Current 611 1,101
CARRYING AMOUNTS OF LEASE LIABILITIES AND MOVEMENTS DURING THE PERIOD:
The maturity of lease liabilities is disclosed in note 19.
DKK’000
2022 2021
Depreciation of right-of-use assets 1,849 1,132
Interest on lease liabilities 200 89
Expenses relating to short-term leases 801 -
Expenses relating to leases of low-value assets 1,130 634
Total amount recognised in the statement of profit or loss 3,980 1,855
THE FOLLOWING AMOUNTS HAVE BEEN RECOGNISED IN THE STATEMENT OF PROFIT OR LOSS:
The Group had a total lease cash outflow of DKK’000 1,956 (2021: DKK’000 1,214).
The Group leases offices, and the lease terms are negotiated on an individual basis and contain
different terms and conditions.
2021
NOTE 14
Leases
DKK’000
Property Cars Equipment Total
Cost at 1 January 2,254 394 428 3,076
Additions 288 - 361 648
Adjustments and revaluations 328 - - 328
Cost at 31 December 2,870 394 789 4,052
Depreciation at 1 January (800) (200) (238) (1,238)
Depreciation during the year (862) (101) (170) (1,132)
Depreciation at 31 December (1,662) (301) (408) (2,370)
Carrying amount at 31 December 1,208 93 381 1,682
1 Adjustments and revaluations are primarily due to renewal of the premises in Copenhagen.
51 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
2022 2021
Cost at 1 January 249 22
Additions 350 227
Cost at 31 December 599 249
DKK’000
2022 2021
Trade receiveables 5,164 4,029
Expected credit losses (242) (169)
Trade receivables, net 4,922 3,860
Expected credit losses at 1 January (169) -
Expected credit losses recognized (72) (169)
Expected credit losses at 31 December (241) (169)
Trade receivables are amounts due from clients for subscriptions as well as from integration, customization, and
consultancy services carried out in the ordinary course of business. They are generally due for settlement within
14 - 60 days and therefore are all classified as current.
Expected credit loss
Most of the Group’s clients are large companies that do normally have a high credit quality. The Group has
historically not incurred any material losses from trade receivables.
On that basis, Management has concluded that the Group’s credit risk from trade receivables is not material
and has therefore deemed the expected credit losses immaterial.
The below table details the maturity of trade receivables.
DKK’000
Not past
due
Overdue by
0-30 days
Overdue by
31-60 days
Overdue by
> 60 days
Carrying amount
of receivables
2022
Expected loss rate 1% 1% 1% 29%
Gross carrying amount 2,993 1,383 109 679 5,164
Expected credit losses 30 14 1 196 241
2021
Expected loss rate 0% 0% 0% 24%
Gross carrying amount 2,050 1,135 146 698 4,029
Expected credit losses - - - 169 169
NOTE 15
Deposits
NOTE 16
Trade receivables
52 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
2022 2021
The calculation of earnings per share is based on the following:
Loss for the year (26,228) (3,626)
Average number shares (thousands) 51,040 25,545
Average number of shares for calculation of diluted earnings per share:
Earnings per share, (EPS) (0.51) (0.14)
Earnings per share, diluted (DEPS) (0.51) (0.14)
EARNINGS PER SHARE
DKK’000
2022 2021
Accrued salaries 1,134 868
Holiday pay etc. 2,115 482
VAT payable 694 145
Other liabilities 275 1,556
Total 4,218 3,050
NOTE 17
Share capital and earnings per share
NOTE 18
Other payables
(‘000) Issues and fully paid-up shares
Number DKK
At January 1 2021 50 50
Sharesplit 350 -
Capital conversion - 350
Sharesplit 50,640 -
Capital increase - 110
At 31 December 2021 51,040 510
Share capital at 31 December 2022 51,040 510
The shares are not divided into classes and carry no right to fixed income.
The capital increase and sharesplit are due to the IPO in December 2021.
SHARE CAPITAL
53 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Capital management
The Group manages its capital to ensure that it will be
able to continue as a going concern while maximising the
return to shareholders through the optimisation of the debt
and equity balances. The capital structure of the Group
consists of net debt and equity. Management reviews
the capital structure continually to consider if the current
capital structure is in accordance with the Group’s and
shareholders’ interests.
Financial risk management
Due to the nature of its operations, investments, and
financing, the Group is exposed to a number of financial
risks. It is Group policy to operate with a low-risk profile
in order for currency risk, interest rate risk, and credit risk
only to occur in commercial relationships. The scope and
nature of the Group’s financial instruments appear from
the statement of profit or loss and statement of financial
position in accordance with the accounting policies
applied.
The Group’s financial assets primarily relate to trade
receivables and cash, whereas the financial liabilities
primarily relate to trade payables, lease liabilities, and
other interest-bearing liabilities.
Provided below is information about factors that may
influence amounts, time of payment, or reliability of
future payments, where such information is not provided
directly in the financial statements. This note addresses
only financial risks directly related to the Group’s financial
instruments.
It is the Group’s policy not to hedge any of its exposures
to financial risks.
Credit risk
Credit risk is the risk that a counterparty will not meet its
obligations towards the Group, resulting in a financial loss.
The Group’s credit risk exposure is primarily related to
its trade receivables and cash positions. The Group’s
exposure and policy for managing credit risk from trade
receivables has been described in note 16.
The most significant counterparty risk is related to deposit
with banks, as the Group’s cash balance at 31 December
2022 amounts to DKK’000 31,333 (2021: DKK’000
59,260). To mitigate this risk, the group only enters into
market deposits with financial counterparties processing
a satisfactory long-term credit from an internationally
recognised agency (credit rating of minimum A-).
The maximum exposure to credit risk at the reporting date
is the carrying amount of each class of financial assets.
Foreign currency risk
Foreign currency risk is the risk that the fair value or
future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates.
The general objective of the Group’s currency risk
management is to limit and delay any adverse impact of
exchange rate fluctuations on earnings and cash flows
and thus increase the predictability of the financial results.
The Group also aims at balancing incoming and outgoing
payments in local currency as much as possible as well
as monitoring the development in exchange rates and
adjusting price lists when required. The Group’s sales are
primarily denominated in local currencies corresponding
to the functional currency of the relevant group entity.
Historically, DKK has been the predominant invoicing
currency of the parent company. However, sales are
also made in foreign currencies such as USD and EUR.
Purchases are primarily made in local currencies. As the
DKK is pegged against the EUR, the Group’s exposure to
changes in the DKK/EUR exchange rate is insignificant.
Going forward, Management expects higher frequency
of foreign currencies in the incoming and out-going cash
flow. Consequently, Management has established bank
accounts for these currencies, to reduce costs and lower
the risk.
A similar decrease in the foreign exchange rates will have
a corresponding effect on the profit before tax and pre-tax
equity.
The sensitivity analysis assumes all other variables remain
constant. The impact on profit before tax and pre-tax equity
is based on those financial instruments denominated in
foreign currencies that were recognised at the respective
balance sheet dates.
Liquidity risk
The Group ensures sufficient liquidity resources by liquidity
management. The Group’s policy is to secure adequate
liquidity to always meet the planned future financial
and operational payment obligations for a minimum of
the next 12 months period. For those purposes, group
management monitors liquidity budgets, which are
updated on an ongoing basis.
On 31 December 2022, the Group’s cash and cash
equivalents amounted to DKK’000 31,333 (2021: DKK’000
59,260). The cash reserve and expected operating
cash flows are considered to be adequate to meet the
obligations of the Group as they fall due.
NOTE 19
Financial risks
54 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Sensitivity to a 10% increase in USD exchange rate 2022 2021
Effect on profit before tax 116 6
Effect on pre-tax equity 116 6
The carrying amounts of the Group’s monetary assets and monetary liabilities denominated in foreign
currency at the reporting date are as follows:
Sensitivity to a 10% increase in SEK exchange rate 2022 2021
Effect on profit before tax 40 45
Effect on pre-tax equity 40 45
SENSITIVITY TO A 10% INCREASE IN FOREIGN EXCHANGE RATES
2022 <1 year
1 to 5
years > 5 years Total
Interest-bearing liabilities - - - -
Lease liabilities 1,797 3,514 - 5,311
Trade and other payables 1,545 - 781 2,326
Total 3,342 3,514 781 7,637
The table below summaries the maturity profile of the Group’s financial liabilities based on contractual
undiscounted payments which include estimated interest payments:
A similar decrease in the foreign exchange rates will have a corresponding effect on the profit before tax and
pre-tax equity.
The sensitivity analysis assumes all other variables remain constant. The impact on profit before tax and pre-
tax equity is based on those financial instruments denominated in foreign currencies that were recognised at
the respective balance sheet dates.
LIQUIDITY RISK
The Group ensures sufficient liquidity resources by liquidity management. The Group’s policy is to secure
adequate liquidity to always meet the planned future financial and operational payment obligations for
a minimum of the next 12 months period. For those purposes, group management monitors liquidity
budgets, which are updated on an ongoing basis.
On 31 December 2022, the Group’s cash and cash equivalents amounted to DKK’000 31,333 (2021:
DKK’000 59,260). The cash reserve and expected operating cash flows are considered to be adequate to
meet the obligations of the Group as they fall due.
2022 2021 2022 2021
Currency SEK 600 467 - 257
Currency USD 179 55 13 -
ASSETS LIABILITIES
NOTE 19
Financial risks (Continued)
2021 <1 year
1 to 5
years > 5 years Total
Interest-bearing liabilities 2,314 472 167 2,953
Lease liabilities 1,152 696 - 1,847
Trade and other payables 1,955 - 729 2,684
Total 5,420 1,168 896 7,484
55 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Group’s interest rate risk is limited to cash deposits
and to a minor degree the amount payable to the Holiday allowance fund which is subject to an annual
variable indexation. The Group’s loans and debt to credit institutions are subject to a fixed interest rate
between 2% and 5.25%.
If market rates of interest increased / (decrease) by 100 basis points, profit before tax and pre-tax equity
would increase / (decrease) it would not affect the interest rate sensitivity.
Financial assets measured at amortised cost 2022 2021
Deposits 599 249
Trade receivables 4,922 3,860
Cash 31,333 59,260
Total 36,854 63,369
Financial liabilities measured at amortised cost 2022 2021
Interest-bearing liabilities - 2,953
Trade payables 1,545 1,955
Other payables 641 598
Lease liabilities 4,976 1,781
Total 7,162 7,287
FINANCIAL INSTRUMENTS
Classification of financial assets measured at amortised cost
Since the Group’s financial instruments measured at amortised cost are either short-term and/or exposed to
floating interest rates, Management has assessed that the carrying amount is a reasonable approximation of
fair value.
The maturity analysis is based on the following assumptions:
• The amounts disclosed in the table are the contractual undiscounted cash flows (including interest
payments).
• Balances due within 12 months equal their carrying balances as the impact of discounting is not
significant.
• Payments for lease liabilities include only lease agreements that have commenced before the end of the
reporting period.
• Other payables include payables to the Holiday allowance fund and are included in the relevant time-
bands based on the expected time to retirement. Future estimated interest payments are based on the
most recent indexation rate and average time to retirement.
NOTE 19
Financial risks (Continued)
56 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following at 31 December:
DKK’000 2022 2021
Cash at banks and in hand 31,333 59,260
Cash and cash equivalents 31,333 59,260
Additional information about the changes to liabilities arising from financing activities can be found in the below
tables:
DKK’000 Other borrowings Lease liabilities Total
2022
Liabilities at 1 January 2,953 1,781 4,735
New leases - 4,481 4,481
Repayments (2,953) (1,756) (4,709)
Other - 470 470
Liabilities at 31 December - 4,976 4,976
2021
Liabilities at 1 January 876 1,930 2,806
Loans raised 2,196 - 2,196
New leases - 976 976
Repayments (119) (1,125) (1,244)
Liabilities at 31 December 2,953 1,781 4,735
DKK’000
2022 2021
Change in inventory and prepayments (1,026) 289
Change in receivables (992) 3,719
Change in trade payables and other liabilities 4,384 (4,813)
Total 2,366 (805)
NOTE 20
Working capital changes
NOTE 21
Other disclosures relating to
consolidated statement of cash flow
57 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Relesys has no related parties with control of the Group and no related parties with significant influence other
than key management personnel - mainly in the form of the Board of Directors, Executive Management and
their private companies. Subsidiaries of Relesys are also related parties where the ownership interets in these
companies appear in note 1.
No transactions with the Board of Directors and Executive Board were made in 2022 other than ordinary
remuneration, as described in note 6. All transactions with related parties are conducted on market terms.
From the balance sheet date and until today, no matters, which would influence the evaluation of the annual
report has occurred.
NOTE 22
Related parties
NOTE 23
Events after the reporting period
59 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Note
2022 2021
Gross profit 5,548 17,691
Staff costs
2
(32,233) (19,203)
Other operating income 164 189
Other operating expenses - (1,053)
Amortisation, depreciation and impairment
3
(1,493) (1,483)
Operating loss (28,014) (3,859)
Financial income
4
74 29
Financial expenses
5
(759) (215)
Loss before tax (28,699) (4,045)
Tax for the year 1,288 698
Result for the year (27,411) (3,347)
PROPOSED APPROPRIATION OF NET RESULT:
Transferred to retained earnings (27,411) (3,347)
Total allocations and transfers (27,411) (3,347)
Parent income statement
60 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Note
2022 2021
Development projects 595 51
Completed development projects 5,386 5,163
Intangible assets
6
5,981 5,214
Other fixtures and fittings, tools and equipment 177 1,044
Property, plant and equipment
7
177 1,044
Investments in subsidiaries
8
5,334 5,315
Deposits
9
221 199
Receivables from group enterprises 1,050 -
Financial assets 6,605 5,514
Total non-current assets 12,763 11,772
Trade receivables 4,922 2,889
Receivables from group enterprises 61 1,203
Income tax receivables 416 604
Other receivables 127 -
Prepayments 806 497
Receivables 6,332 5,193
Cash 29,624 57,839
Total current assets 35,956 63,032
Total assets 48,719 74,804
DKK’000
Note
2022 2021
Contributed capital 510 510
Share premium 68,890 68,890
Other statutory reserves 4,665 4,067
Retained earnings (39,041) (11,472)
Total equity 35,024 61,995
Provisions for deferred tax
10
- 886
Provisions - 886
Debt to credit intitutions - 639
Other payables 641 598
Non-current liabilities other than provisions 641 1,237
Interest bearing liabilities - 2,314
Trade payables 1,281 1,936
Payables to group enterprises 1,255 -
Deferred income 8,182 4,751
Other payables 2,336 1,685
Current liabilities other than provisions 13,054 10,686
Total liabilities other than provisions 13,695 11,923
Total equity and liabilities 48,719 74,804
ASSETS EQUITY AND LIABILITIES
Parent balance sheet
61 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Contributed
capital
Share
premium
Reserve for
development costs
Retained
earnings Total
Equity beginning of the year 510 68,890 4,067 (11,472) 61,995
Transfer to reserves - - 598 (598) -
Share-based payments - - - 440 440
Loss for the year - - - (27,411) (27,411)
Equity end of year 510 68,890 4,665 (39,041) 35,024
2022
2021
Statement of changes in equity
DKK’000
Contributed
capital
Share
premium
Reserve for
development cost
Retained
earnings Total
Equity beginning of the year 50 - 3,624 (2,290) 1,384
Transfer to reserves - - 443 (443) -
Capital increase as a part of company transformation 350 - - (350) -
Capital increase as a part of IPO 110 68,890 - - 69,000
Transaction of cost for equity issuance - - - (5,142) (5,142)
Share-based payments - - - 100 100
Loss for the year - - - (3,347) (3,347)
Equity end of year 510 68,890 4,067 (11,472) 61,995
62 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Notes to the parent
financial statements
63 1. Accounting policies
66 2. Staff costs
66 3. Amortisation, depreciation and impairment
66 4. Financial income
66 5. Financial expenses
67 6. Intangible assets
68 7. Property, plant and equipment
69 8. Investments in subsidiaries
69 9. Deposits
69 10. Deferred tax
69 11. Contingencies
63 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Basis of recognition and
measurement
Income is recognised in the income statement concurrently
with its realisation, including the recognition of value
adjustments of financial assets and liabilities. Likewise, all
costs are recognised in the income statement, including
depreciation, amortisation, write-downs for impairment,
provisions, and reversals due to changes in estimated
amounts previously recognised in the income statement.
Assets are recognised in the statement of financial position
when it seems probable that future economic benefits will
flow to the company and the value of the asset can be
measured reliably.
Liabilities are recognised in the statement of financial
position when it seems probable that future economic
benefits will flow out of the company and the value of the
liability can be measured reliably.
Assets and liabilities are measured at cost at the initial
recognition. Hereafter, assets and liabilities are measured as
described below for each individual accounting item.
Certain financial assets and liabilities are measured at
amortised cost, allowing a constant effective interest rate to
be recognised during the useful life of the asset or liability.
Amortised cost is recognised as the original cost less any
payments, plus/less accrued amortisation of the difference
between cost and nominal amount. In this way, capital
losses and gains are allocated over the useful life of the
liability.
Upon recognition and measurement, allowances are made
for such predictable losses and risks which may arise
prior to the presentation of the Annual Report and concern
matters that exist on the reporting date.
Foreign currency
translation
Transactions denominated in currencies other than the
functional currency are considered transactions in foreign
currency.
On initial recognition, transactions denominated in foreign
currencies are translated to the functional currency at the
exchange rates at the transaction date. Foreign exchange
rate adjustments arising between the transaction date and
the date of payment are recognised in the statement of profit
or loss in financial income or financial expenses.
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rates at the
reporting date. The difference between the exchange rates
at the reporting date and at the date of the transaction
or the exchange rate in the latest Financial Statements is
recognised in the statement of profit or loss in financial
income or financial expenses.
Cash flow statement
In compliance with section 86(4) of the Danish Financial
Statements Act, a cash flow statement is not drawn up
for the Parent, such statement being included in the
consolidated cash flow statement.
Income Statement
Gross profit
Gross profit comprises the revenue, cost of sales and other
external costs.
The Parent has two revenue streams, being SaaS revenue
and consultancy. For a complete description of these, please
see Note 1 in the consolidated financial statements.
Cost of sales comprises costs directly linked to revenue in
the financial year measured at cost, which is primarily server
costs to Microsoft Azure.
Other external costs comprise costs incurred for distribution,
sales, advertising, administration, premises, loss on
receivables, and operational leasing costs.
Staff costs
Staff costs include salaries and wages, including holiday
allowances, pensions, other social security costs, etc.
for staff members. Staff costs are fewer government
reimbursements.
Amortisation, depreciation, and
write-down for impairment
Amortisation, depreciation, and write-down for impairment
comprise depreciation on, amortisation of, and write-
down for impairment of intangible and tangible assets,
respectively.
Interest and other costs concerning loans to finance the
production of intangible assets and property, plant, and
equipment, and relating to production periods, are not
recognised in the cost of non-current assets.
This year, the Parent Company has moved to prepare the financial statements in a larger class. The
Parent’s Financial Statements have been prepared in accordance with the Danish Financial Statements
Act regulations concerning reporting class C enterprises (“DFSA”).
NOTE 1
Accounting policies
64 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
NOTE 1
Accounting policies (Continued)
Financial income and expenses
Financial income and expenses comprise interest, realised
and unrealised capital gains and losses concerning financial
assets and liabilities, amortisation of financial assets
and liabilities, additions, and reimbursements under the
Danish tax prepayment scheme, etc. Financial income and
expenses are recognised in the income statement with the
amounts concerning the financial year.
Tax on profit/loss for the year
Tax for the year comprises the current income tax for the
year and changes in deferred tax and is recognised in the
income statement with the share attributable to the net profit
or loss for the year and directly in equity with the share
attributable to entries directly in equity.
The company is subject to Danish rules on compulsory joint
taxation of Danish group enterprises.
The current Danish income tax is allocated among the jointly
taxed companies proportional to their respective taxable
income (full allocation with reimbursement of tax losses).
Balance Sheet
Development projects
Developments projects comprise development projects
completed and in progress.
Development projects on clearly defined and identifiable
products and processes, for which the technical rate of
utilisation, adequate resources and a potential future
market or development opportunity in the enterprise can
be established, and where the intention is to manufacture,
market or apply the product or process in question, are
recognised as intangible assets. Other development costs
are recognised as costs in the income statement as incurred.
When recognising development projects as intangible
assets, an amount equaling the costs less deferred tax
incurred is taken to equity under reserve for development
costs that are reduced as the development projects are
amortised and written down.
The cost of development projects comprises costs such
as salaries and amortisation that are directly and indirectly
attributable to the development projects. Indirect production
costs in the form of indirectly attributable staff costs and
amortisation of intangible assets and depreciation of
property, plant, and equipment used in the development
process are recognised in cost based on time spent on each
project.
Completed development projects are amortised on a
straight-line basis using their estimated useful lives which
are determined based on a specific assessment of each
development project. The amortisation period used is 5-7
years.
Property, plant and equipment
Other fixtures and fittings, tools, and equipment are
measured at cost less accrued depreciation and write-down
for impairment.
The basis of depreciation is cost less estimated residual
after the end of useful life. The amortisation period and
the residual value are determined at the acquisition date
and reassessed annually. If the residual value exceeds the
carrying amount, the depreciation is discontinued.
If the amortisation period or the residual value is changed,
the effect on amortisation will, in the future, be recognised as
a change in the accounting estimates.
The cost comprises acquisition cost and costs directly
associated with the acquisition until the time when the asset
is ready for use.
The cost of a total asset is divided into separate
components. These components are depreciated separately
when the useful lives of each individual component differ.
The amortisation period used is 3-5 years.
Minor assets with an expected useful life of less than 1 year
are recognised as costs in the income statement in the year
of acquisition.
Leases
At their initial recognition in the statement of financial
position, leases concerning property, plant, and equipment
where the company holds all essential risks and advantages
associated with the proprietary right (finance lease) are
measured either at fair value or at the present value of the
future lease payments, whichever value is lower. When
calculating the present value, the discount rate used is
the internal rate of return of the lease or, alternatively, the
borrowing rate of the enterprise. Hereafter, assets held under
a finance lease are treated in the same way as other similar
property, plant, and equipment.
The capitalised residual lease commitment is recognised
in the statement of financial position as a liability other than
provisions, and the interest part of the lease is recognised in
the income statement for the term of the contract.
Leases are regarded as operating leases. Payments
in connection with operating leases and other lease
agreements are recognised in the income statement for
the term of the contract. The company’s total liabilities
concerning operating leases and lease agreements are
recognised under contingencies etc.
Impairment loss relating to
non-current assets
The carrying amounts of both intangible and tangible assets,
as well as equity investments in subsidiaries and associates,
are subject to annual impairment tests in order to disclose
any indications of impairment beyond those expressed by
amortisation and depreciation, respectively.
If indications of impairment are disclosed, impairment tests
are carried out for each individual asset or group of assets,
respectively. Write-down for impairment is done to the
recoverable amount if this value is lower than the carrying
amount.
65 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
NOTE 1
Accounting policies (Continued)
The recoverable amount is equal to the value of the net
selling price or the value in use, whichever is higher. The
value in use is determined as the present value of the
expected net cash flow derived from the use of the asset or
group of assets.
Previously recognised impairment losses are reversed
when conditions for impairment no longer exist. Impairment
relating to goodwill is not reversed.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. Write-
down for impairment is done to the recoverable amount if
this value is lower than the carrying amount.
Deposits
Deposits are measured at amortised cost and represent
lease deposits etc.
Receivables
Receivables are measured at amortised cost which usually
corresponds to face value. In order to meet expected losses,
they are written down for impairment to the net realisable
value.
Prepayments
Prepayments recognised under assets comprise incurred
costs concerning the following financial year.
Cash in hand and demand deposits
Cash in hand and demand deposits comprise cash at
bank and in hand.
Equity
SHARE PREMIUM
Share premium consists of positive differences between
the nominal value of share capital and amount paid by
shareholders for newly issued shares. Share premium is a
distributed reserve.
TRANSACTION COSTS RELATED TO EQUITY ISSUANCE
Qualifying transaction costs incurred in connection with the
issuance of equity instruments are deducted from equity.
Where the qualifying transaction costs related to the listing
of existing and new shares, the part of the total transaction
costs deducted from equity are based on the ratio between
existing and new shares.
RESERVE FOR DEVELOPMENT COSTS
The reserve for development costs comprises recognised
development costs less related deferred tax liabilities. The
reserve cannot be used as dividend or for covering losses.
The reserve is reduced or dissolved if the recognised
development costs are amortised or abandoned. This is
done by direct transfer to the distributable reserves of the
equity.
Income tax and deferred tax
Current tax receivables and tax liabilities are recognised in
the statement of financial position with the amount calculated
on the basis of the expected taxable income for the year
adjusted for tax on previous years’ taxable income and
prepaid taxes. Tax receivables and tax liabilities are offset to
the extent that a legal set-off right exists and the items are
expected to be settled net or simultaneously.
According to the rules of joint taxation, Relesys A/S is
proportionally liable to pay the Danish tax authorities the
total income tax, including withholding tax on interest,
royalties, and dividends arising from the jointly taxed group
of companies.
Deferred tax is the tax on all temporary differences in the
carrying amount and tax base of assets and liabilities
measured on the basis of the planned application of the
asset and disposal of the liability, respectively.
Deferred tax assets, including the tax value of tax losses
eligible for carryforward, are recognised at their expected
realisable value, either by settlement against tax of future
earnings or by set-off in deferred tax liabilities within
the same legal tax unit. Any deferred net tax assets are
measured at net realisation value.
Deferred tax is measured on the basis of the tax rules and
tax rates of the applicable legislation at the reporting date
and prevailing when the deferred tax is expected to be
released as current tax.
Liabilities other than provisions
Other liabilities other than provisions are measured at
amortised cost which usually corresponds to the nominal
value.
Deferred income
Payments received concerning future income are recognised
under deferred income.
66 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
Please refer to the disclosure in note 6 in the Consolidated Financial Statements for management remuneration.
DKK’000
2022 2021
Salaries and wages 28,683 16,703
Pensions costs 1,331 1,055
Share-based payments 440 100
Other social security costs 314 364
Other staff costs 1,465 982
Total 32,233 19,203
Average numbers of employees 57 45
DKK’000
2022 2021
Amortisation of intangible assets 1,227 1,221
Depreciation of property, plant and equipment 266 262
Total 1,493 1,483
DKK’000
2022 2021
Financial income from group enterprises 74 12
Foreign exchange income - 16
Other financial income - 1
Total 74 29
DKK’000 2022 2021
Interest expenses 367 215
Foreign exchange losses 109 -
Other financial expenses 283 -
Total 759 215
NOTE 2
Staff costs
NOTE 4
Financial income
NOTE 5
Financial expenses
NOTE 3
Amortisation, depreciation & impairment
67 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Completed
development
projects
Development
projects in
progress Total
Cost at 1 January 9,136 104 9,240
Additions - 2,008 2,008
Transfers 1,517 (1,517) -
Disposals (14) - (14)
Cost at 31 December 10,639 595 11,234
Amortisation and impairment losses at 1 January (3,975) (51) (4,026)
Amortisation during the year (1,278) - (1,278)
Reversal of impairment losses - 51 51
Amortisation and impairment losses at 31
December
(5,253) - (5,253)
Carrying amount at 31 December 5,386 595 5,981
2022
Completed development projects relate to the further development of the Relesys platform, Relesys
core modules, and Relesys pro modules. Management has an expectation of positive earnings from
each development project.
It is Management’s assessment that the expected useful lives of the finite-lived assets, as well as
the expected future revenue streams from the assets, are sufficient to cover the value of recognised
developed projects at the reporting date.
2021
NOTE 6
Intangible assets
DKK’000
Completed
development
projects
Development
projects in
progress Total
Cost at 1 January 7,078 373 7,451
Additions - 1,789 1,789
Transfer 2,058 (2,058) -
Cost at 31 December 9,136 104 9,240
Amortisation and impairment losses at 1 January (2,754) (51) (2,805)
Amortisation during the year (1,221) - (1,221)
Amortisation and impairment losses at 31
December
(3,975) (51) (4,026)
Carrying amount at 31 December 5,163 53 5,214
68 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
Other fixtures and
fittings, tools and
equipment Total
Cost at 1 January 1,390 1,390
Additions 233 233
Disposals (1,390) (1,390)
Cost at 31 December 233 233
Depreciation and write-down at 1 January (345) (345)
Depreciation during the year (267) (267)
Disposals 556 556
Depreciation at 31 December (56) (56)
Carrying amount at 31 December 177 177
2022 2021
NOTE 7
Property, plant and equipment
DKK’000
Other fixtures and
fittings, tools and
equipment Total
Cost at 1 January 1,347 1,347
Additions 43 43
Cost at 31 December 1,390 1,390
Depreciation and write-down at 1 January (84) (84)
Depreciation during the year (262) (262)
Depreciation at 31 December (346) (346)
Carrying amount at 31 December 1,044 1,044
69 | ANNUAL REPORT 2022 REACH. ENGAGE. UNITE.
DKK’000
2022 2021
Cost at 1 January 5,315 74
Additions 19 5,241
Cost at 31 December 5,334 5,315
DKK’000
2022 2021
Cost at 1 January 199 20
Additions 22 195
Disposals - (16)
Cost at 31 December 221 199
LEASE LIABILITIES
The company has entered into lease agreements and rental contracts. The obligation amounts to
DKK’000 1,584.
MORTGAGE AND SECURITIES
The Company has pledged its assets as security for bank debts. Furthermore, the company has
issued a payment guarantee on DKK’000 518 to cover obligations on the lease in Nordhavn.
LETTER OF SUPPORT
Relesys A/S has undertaken to indemnify the creditors of the subsidiary, Relesys Ltd, in respect of all
losses and liabilities for the financial year ending on 31 December 2022. No material loss is expected
to arise from this guarantee.
Contingent liabilities
NOTE 8
Investments in subsidiaries
NOTE 9
Deposits
NOTE 11
Contingencies
DKK’000
2022 2021
Deferred tax at the beginning of period 886 1,010
Change in deferred tax for the year (886) (124)
Deferred tax at 31 December - 886
NOTE 10
Deferred tax
Relesys has tax losses carried forward in total of DKK’000 5,020, of which none is recognised
as deferred tax assets. There is uncertainty related to future forecast and when the tax asset
will be fully utilised.
Annual report 2022
1ST OF JANUARY 2022 - 31ST OF DECEMBER 2022
Business Registration No.
Executive Management
Jesper Roesgaard
Jens Ole Lebeck
Mads Stoffer Larsen
Auditors
PricewaterhouseCoopers,
Statsautoriseret Revisionspartnerselskab
Certified Adviser
Grant Thornton
Stockholmsgade 45
2100 Copenhagen
www.grantthornton.dk
Date of incorporation
30.10.2014
Financial year
01.01–31.12
Financial calendar
Annual General Meeting - April 27, 2023
Quarterly Update (Q1 2023) - May 11, 2023
Interim Financial Report (Q2 2023) - August 29, 2023
Quarterly Update (Q3 2023) - November 29, 2023