2022 Annual Report | Re-Match |0
2022
Annual
Report
HI-Park 415, Hammerum
7400 Herning, Denmark
CVR nr.: 35465529
01.01.2022 – 31.12.2022
2022 Annual Report | Re-Match | 1
Content
CHAIRPERSON & CEO LETTER 2
RE-MATCH AT A GLANCE 4
Revenue 4
Key Figures & KPIs 6
OPERATIONAL HIGHLIGHTS 9
COMMERCIAL HIGHLIGHTS 10
OUTLOOK 2023 11
RISK MANAGEMENT 12
DELIVERING ON STRATEGY, CHANGING AN INDUSTRY 14
BUSINESS MODEL 15
ENVIRONMENT 17
SOCIAL 19
GOVERNANCE 21
GROUP MANAGEMENT & BOARD OF DIRECTORS 23
MANAGEMENT BOARD 24
MEETING ATTENDANCE 25
SHAREHOLDER INFORMATION 26
FINANCIAL REVIEW 28
Statement by Management 29
Independent auditor’s report 30
Financial statements 33
NOTES 39
2022 Annual Report | Re-Match | 2
Chairperson & CEO letter
Following the IPO of Re-Match in December 2021,
the strategy and targets were clear. We wanted to
build a new factory in the Netherlands in 2022 and
to improve the value of our back-end products. At
the same time, we expected, as communicated, to
increase costs more than previous years due to
the construction of the Dutch factory and while
only having one operational factory we expected
2022 financially to be the toughest year for
Re-Match.
With that in mind, 2022 was a defining year for
Re-Match. In January Re-Match ordered the factory
line for its first factory based on the new blueprint
– the Tiel factory – and less than twelve months
later the Tiel factory recycled its first artificial turf.
The adjusted revenue for 2022 reached record
high numbers with more than DKK 50m for the
group, reflecting the growth in the front-end
market and contrasting the IFRS revenue numbers
which went down due to the temporary, partial
shutdown in Herning.
The increasing energy prices, in response to the
war in Ukraine, and its effect on energy costs
necessitated a temporary, partial production
shutdown in the Herning factory in November and
December.
Throughout the year, Re-Match has exercised a
significant ramp-up of the organisation, as
planned, across the whole group as part of the
preparation for the global factory roll-out.
Another target for Re-Match was to increase the
value of the back-end products which has been
achieved through new sales agreements.
Finally, early in 2023, the Board of Directors
announced the intention to delist Re Match from
Nasdaq First North following a transaction
agreement with Verdane and NAP of up to DKK
235m in gross proceeds. As part of the delisting, it
was important for Re-Match that the minority
shareholders would be treated well and therefore
a unique structure was developed for the minority
shareholders for them to participate in the
delisted company as a shareholder.
The outlook for 2023 is very positive, as the factory
in Tiel, the Netherlands, has started up ensuring
that the IFRS revenue for Tiel will match or exceed
Herning. In addition, the refurbished factory in
Herning is also expected to increase throughput
per hour, though it has been partially idle for the
first three months of 2023.
TIEL FACTORY
As stated in the prospectus from the IPO, the most
significant milestone of 2022, was the construction
and commissioning of the Tiel factory, based on the
new blueprint. Despite significant global supply
chain issues causing shortages on materials and key
components that were used in the building and
factory line, Re-Match achieved several central
milestones. In the first half of the year the equipment
for the factory was ordered and the construction of
the factory building was completed. In the second
half, a grant of EUR 4.5m for the factory was granted
by the Dutch government, the assembly of the
factory line was initiated and the hiring and
onboarding of production workers and supporting
staff was intensified. Finally, in December the first
material was recycled, and as of the release of this
report, the factory has already in periods been
exceeding the hourly production volume expected
mid-2023 while the quality and purity of materials
are looking very promising and being sold as fast as
they are being produced.
2022 Annual Report | Re-Match | 3
COST AND PRICES
In response to the historically high energy prices that
occurred in 2022, Re-Match decided to adapt its
activities and down-ward adjust the level of
operation at the Herning factory to reduce costs. The
temporary, partial production shutdown of
processing artificial turf also meant that less recycled
material was available for sale. The period has,
however, enabled the company to move forward
planned maintenance, energy saving initiatives and
upgrades to the factory, which in turn is expected to
improve the performance of the factory once
production is resumed.
We expect the production in Herning to resume in
April 2023, and with higher production volumes,
however due to partial shutdown Re-Match will not
be able to accept the normal amount of used
artificial turf pitches in 2023.
In 2022 there was a significant increase in the
demand for recycled materials in industries outside
of the turf industry. Not only has this diversified the
company’s sales outlet, but it has also had a positive
effect on the prices of back-end materials.
Furthermore, with a potential upcoming rubber-ban,
it is important to have demonstrated the ability to
provide materials with a quality that lives up to the
high requirements in most industrial applications.
OTHER FACTORIES
In the French Joint Venture, the organisation has
prepared for the upcoming construction of the
factory in Erstein, where a location was secured early
in the year. Throughout the year, Eric Levresse (CEO
of Re-Match France) and his team have worked to
secure financing for the building and the factory line,
totalling EUR 19.5m including a grant of EUR 2.3m,
onboarding key employees and preparing the
market by engaging with relevant stakeholders
within and outside the turf industry. The ground-
breaking happened in March 2023 and the first
artificial turf will be recycled in 2024.
In the US, a site for the first Re-Match factory outside
Europe was secured in the middle of the year.
Re-Match applied for all relevant permits to
commence operations during 2022 and expect to
start construction in 2023 along with further market
activities. Taking it all together, Re-Match sees that
the total turnover of new factories will increase as
prices on front- and back-end products rises,
although the profitability margin is expectedly
unchanged compared to the IPO expectations due
to higher costs stemming from inflation.
SIGNIFICANT INVESTMENT
In the beginning of 2023 and based on the
achievements of 2022 Re-Match announced major
plans about a delisting from the stock market as part
of the recently disclosed funding plan of up to DKK
235m in gross proceeds, in multiple tranches. With
continued support from Nordic Alpha Partners and
a new significant commitment from Verdane, the
Board of Directors decided to recommend a
delisting of Re-Match to the benefit of the company
and its shareholders. The decision to delist was
approved at an Extraordinary General Meeting on
23
rd
of March 2023. With the new funding plan, Re-
Match is in a strong position to realise its global
strategy of 24 factories before 2031.
2022 Annual Report | Re-Match | 4
Re-Match at a glance
IFRS Revenue
DKK’000
2022
2021
Change
Front-end
11,074
14,974
-26.0%
Back-end
4,316
5,249
-17.8%
Other
12,211
8,339
46.4%
Total
27,601
28,562
Key figures and KPIs
DKK’000
2022
2021
2020
Revenue (DKKm)
27.6
28.6
28.5
Deferred revenue
9.7
2.5
14
Adjusted revenue
37.3
31.1
42.5
Adjusted revenue incl. Joint venture
51.1
43.1
44.4
Adjusted revenue incl. Re-Match
part of Joint venture
45.6
35.9
43.3
Balance sheet total
360.4
253.2
133.9
Tangible assets
86.7
64.6
68.9
Equity
10.5
113.5
-10.2
Input inventory
(full-size soccer pitches at 220 tons)
317
145
175
Turf processed
(full-size soccer pitches at 220 tons)
88
118
96
CO2 saved compared to incineration (tons)
27,249
37,917
29,580
FTE’s
55
38
34
2022 Annual Report | Re-Match | 5
REVENUE
The revenue for 2022 fell slightly to DKK 27,602t
from DKK 28,562t in 2021 which is in line with the
previously communicated revenue expectations for
2022. Despite the temporary, partial production
shutdown, Re-Match managed to keep revenue
close to last year. However, the revenue
composition changed between 2021 and 2022.
For front-end, the revenue fell from DKK 14,974t in
2021 to DKK 11,074t in 2022. The decrease is
caused by an overall reduction in total production
volume in H2, which can be attributed to the
temporary, partial production shutdown and
multiple test-runs with different artificial turf types
and lower throughput rate.
Back-end revenue in 2022 fell to DKK 4,316t from
DKK 5,249t in 2021. The fell in back-end revenue is
explained partly by the fall in total production
volume and partly by a shift in markets during 2022.
In 2021, Re-Match sold a significant amount of
back-end materials to UK, where the price of sand
and rubber is significantly higher, however the
transport cost for UK is high. Since the transport
costs increased during 2022 it was no longer
profitable to ship materials to the UK, causing lower
revenue and transport costs consequently.
Other revenue (transport, roll-up, etc.) increased
from DKK 8,339t in 2021 to DKK 12,211t in 2022
corresponding to an increase of 46%.
Other revenue is a service for the customers, not a
core revenue stream for Re-Match and have a very
low margin. In addition, more pitches were relatively
sourced from the Nordics, where the transport
distance is high. On front-end, customers are more
inclined to accept higher transport costs as
Re-Match provide a unique recycling service, that is
not available locally.
Furthermore, the Re-Match Group has experienced
a significant increase in adjusted revenue. Including
Re-Match France, adjusted revenue has increased
by DKK 8,0m from DKK 43.1m in 2021 to DKK 51.1m
in 2022, corresponding to an increase of 18.3%.
This is mainly caused by a shift towards higher gate
fees from countries, such as the Nordics, the
Netherlands and France where the public recycling
fee is higher.
2022 Annual Report | Re-Match | 6
Key figures & KPIs
Consolidated statement of profit and loss and other comprehensive income
DKK’000
2022
2021
Revenue
27,601
28,562
Cost of sales
-29,950
-29,437
Gross profit/loss
-2,349
-875
Other external expenses
-31,583
-15,477
Special items
0
-20,643
Staff costs
-38,207
-29,076
Other operating income
868
575
Depreciation, amortisation and impairment losses
-12,384
-7,523
Operating profit/loss
-83,655
-73,019
Share of profit of a joint venture
353
0
Financial income
8,308
548
Financial expenses
-13,353
-19,953
Profit/loss before tax
-88,348
-92,424
Tax for the year
0
0
Profit/loss for the year
-88,348
-92,424
2022 Annual Report | Re-Match | 7
Adjusted consolidated statement of profit and loss
DKK’000
2022
Non-recuring
costs
Net 2022
Revenue
27,601
0
27,601
Cost of sales
-29,950
0
-29,950
Gross profit/loss
-2,349
0
-2,349
Other external expenses
-31,583
9,068
-22,515
Special items
0
0
0
Staff costs
-38,207
1,075
-37,132
Other operating income
868
0
868
Depreciation, amortisation and impairment
losses
-12,384
0
-12,384
Operating profit/loss
-83,655
10,143
-73,512
CONSOLIDATED AND ADJUSTED
FINANCIAL STATEMENT OF PROFIT AND
LOSS
As previously communicated in the prospectus,
2022 was expected to be the least profitable year in
Re-Match’s global expansion. In 2022 Re-Match
realised a loss of DKK 83,655, which is heavily
influenced by costs associated with the factory
expansion in Tiel, since Re-Match generates
significant costs but not yet revenue from
customers. Insights into the change in loss of the
year between 2021 and 2022 is provided in the
Notes section. Note that in 2021, Re-Match incurred
significant costs associated with the IPO.
The dramatic increase in energy prices (gas and
electricity) has had a significant effect on the cost of
sales and a direct effect on Re-Match realising a
gross loss, despite the effort to reduce energy
consumption with the temporary, partial shutdown
to production. Compared to 2021, energy costs
have increased by DKK 3.8m, while energy
consumption in production went down by 12.0%
In 2022, other external expenses increased from
DKK 13,734t to DKK 22,515t after non-recurring
expenses. In Denmark, other external expenses
increased DKK 4.7m due to increased utility costs,
travel activities from returning to pre-COVID levels
and frequent travel of the SWAT team to Tiel in
addition to upgrades of the IT infrastructure.
necessitated by the factory start-up. Furthermore,
an additional DKK 2.1m were booked in temporary
storage costs associated with the ramp-up of the
Tiel factory, clearing of external sites in Herning and
hand-over of the lease in Pennsylvania,
In Tiel onboarding of new employees contributed to
DKK 7.9m in staff costs (salaries, benefits, etc.). Less
capitalization of staff costs to the EU Horizon
project, organisational professionalisation in
Herning and new employees located in the US also
caused increases in overall staff costs.
2022 Annual Report | Re-Match | 8
In 2022, Re-Match had DKK 10.1m in non-recurring
costs which included advisory costs related to
financing, temporary rent in NL and US, write-off on
debtors and one-time staff costs associated with
the temporary, partial production shutdown.
Management has chosen to restate the 2021
comparative figures for deferred tax assets and
equity due to the identification of incorrect
accounting treatment of IAS 12.
Even though the approved budget and business
plan both in prior periods and at 31
st
of December
2022 reflects that the Company and Group will be
generating taxable profits in the foreseeable future,
it is the Management’s assessment that the
recognition of the deferred tax assets did not meet
the strict criteria of IAS 12 'convincing evidence'.
Needless to say, Re-Match still expect to be able to
utilize the tax losses carried forward, as the Group's
profitability increases.
2022 Annual Report | Re-Match | 9
Operational highlights
DENMARK
The Re-Match factory in Herning was negatively
impacted by the high energy prices that hit Europe
in 2022. In November, normal production was
eventually stopped, and some employees were
unfortunately dismissed. Production was also
affected by multiple test-runs with different types
of artificial turf and lower throughput rates. The
separation process changed over to cleaning old
mixed material and turning 90% of it into clean
sand. At the same time a major renovation and
optimisation of the downsizing section, where the
gas is consumed, was initiated to increase capacity,
reliability, and efficiency. This is expected to
complete in March 2023, so the factory is back to
normal production in April 2023.
THE NETHERLANDS
The machinery for the new factory in Tiel was
ordered in January 2022 with the challenging target
of being installed and able to recycle material by
the end of 2022. In March, Re-Match received the
keys for the factory building in which the machinery
would be placed and the offices located. This
building process had already started in 2021.
Immediately, artificial turf were brought to the site
ready to be processed. Installation of the machines
started in June and commissioning commenced in
November. The first rolls of turf were run through
the factory in December as planned.
The factory will ramp up production in 2023 and
plans to have 24/7 operation in July.
FRANCE
The next Re-Match factory to be constructed will be
located in Erstein, France. The financing and the
site were secured during 2022. The machinery was
ordered in December and the installation is
planned to commence in October 2023 with
commissioning in Q1 2024. This factory will have
the same capacity as the Dutch factory as it is
based on the same basic Re-Match technology
blueprint.
USA
In July 2022, Re-Match signed a 20-year lease for a
site in Tamaqua, Pennsylvania. The site includes a
building of over 12,000 m2 suitable for warehousing.
The plans are to build an extension in 2023 that can
house a recycling line that Re-Match also plans to
order in 2023. The intention is to have an
operational factory by the end of 2024.
A sub-tenant was found in November 2022 for a
12-month lease to cover expenses while permitting
and engineering is performed.
2022 Annual Report | Re-Match | 10
Commercial highlights
THE NORDIC REGION
The front-end sales for the Re-Match factory in
Herning were positive compared to budget although
it was negatively impacted by the lower output due
to the temporary, partial production shutdown in
November and December. Especially key customers
in Norway have delivered as expected and some
have exceeded the plan.
Focus on front-end was in 2022 on the Swedish
market that still is sending the artificial turf carpet to
incineration. The effect from these actions is now
showing a positive effect in the first two months of
2023.
The sales of sand and rubber back to the artificial
turf industry did not meet the expectations due to
the lower output from the factory in Herning.
A Letter-of-Intent has been signed an acoustic panel
company for 1,000 tons of plastic fibres. The
expectations during the first months of 2023 have
not been met, but Re-Match expect that it will pick
up in the second quarter of 2023.
A cooperation with another plastic company has
been started up for making granules through
extrusion of the plastic fibres. Our product can then
be used in different kinds of moulding, or it can be
compounded.
A large order from Sweden within the steel industry
has been placed for the sand/rubber mix and fine
sand.
THE NETHERLANDS, BELGIUM &
NORTH-EAST OF GERMANY
The front-end sales did live up to the expectations in
2022. The newly finished factory in Tiel has had a
very positive effect on the expectations for the
future sales of both front- and back-end sales.
Re-Match are now able to show in these markets
that they are not only collecting artificial turf , and
thereby creating a liability, but Re-Match are actually
able to deal with a very large environmental
problem.
The back-end sales have over the last two quarters
of 2022 shown a very positive trend, that has been
proven during the first three months of production
in Tiel, where the quality of the output has made it
possible to get rubber out to customers already now
– both for the Dutch market as well as for export.
There are also customers waiting to be supplied with
sand and fibres.
However, the front-end sales for the Dutch factory
will be under pressure in 2023 due to lack of
storage capacity.
FRANCE, SOUTH OF GERMANY, AUSTRIA
& SWITZERLAND
In this region the front-end sales were below the
expectations for 2022. Especially the German
market has been disappointing due to very low
pricing from alternative solutions. We expect that
Germany will follow the other European markets in
2023 or 2024 to demand true recycling . With the
new factory in the Netherlands the French sales
team will start focussing on back-end sales as well.
Some smaller orders have already been secured and
Re-Match are still negotiating with customers
especially in Germany for all three types of back-end
materials.
USA
The US market is being prepared for both front- and
back-end sales. Re-Match is not able to take in
artificial turf yet, but the company is visiting planners
and artificial turf producers for the front-end sales,
and for the back-end sales Re-Match is preparing the
market by visiting potential industrial customers in
order to make annual agreements. As the customers
would like to see the quality on an on-going basis,
Re-Match is following the transportation rates from
Europe to the US closely and expects to be able to
send some material across during 2023.
2022 Annual Report | Re-Match | 11
Outlook 2023
Re-Match expects that 2023 will bring significant
improvements to the financial and operational
performance as the ramp-up of production at the
Tiel factory progresses and Herning factory has been
improved while seeing lower energy costs. Improve
prices on both front- and back-end materials will
also contribute positively.
In 2023, the Tiel factory will continue to produce
more and more recycled material from artificial turf
that can be sold for use in new products or in new
artificial turf pitches. This will have a significant
positive effect on revenue in 2023, while costs will
not increase proportionally. It is expected that the
Tiel factory will reach cashflow positive during some
months of 2023, however, it will not be until 2024
that the factory will demonstrate full year
profitability.
For the Herning factory, it is expected that the
financial performance will improve in 2023 on a
month-by-month basis as well, since the upgrades
made during the temporary, partial production
shutdown will improve production performance
going forward. Combined with the current trend of
increasing prices and commercial agreements, it is
expected that the Herning factory will operate a level
that would have ensured a positive gross profit if full
production had taken place throughout 2023.
In December 2022 the factory line for the French
factory in Erstein was ordered. In March 2023, the
construction of the factory building commenced.
Once the building has been completed, the
installation of the factory line will begin. It is expected
that the overall length of construction, installation,
and ramp-up timeline of the Erstein factory will
closely resemble the Tiel factory, thereby ensuring
that the first artificial turf will be recycled in 2024.
In 2022 Re-Match was not able to increase its
front-end prices to existing customers to counter
the increasing energy prices due to the length of
commitments towards customers. However, a
proportional increase to front-end gate fees is
expected in 2023 and despite continued price
increases in 2023, the overall profitability margin of
new factories is expected to remain unchanged.
Looking a bit further into the horizon, the next two
factories after the French factory will be built in the
US. The first factory in the US will be in Pennsylvania,
where a site was secured during 2022. During 2023
Re-Match will onboard more personnel in order to
initiate the construction of the factory and carry out
more intense market preparations. A second factory
in the US will follow afterwards.
2022 Annual Report | Re-Match | 12
Risk management
COST DEVELOPMENTS
As already mentioned in the Annual report 2021,
the supply chain bottlenecks from the aftermath of
Covid-19 and the war in Ukraine, would affect the
costs structure of Re-Match. The company has, as a
consequence, seen much higher energy prices
especially in Europe and inflation remains high. This
has resulted in increased costs of operations but
also increased capital expenses at the new
factories. Similarly, Re-Match also expects that the
cost of new factory lines will increase permanently
in the future as a result of the global wide high
inflation.
As it is with most recycling businesses, Re-Match’s
technological process is relatively energy intensive,
which means that the profitability of the business is
dependent on changes in energy prices. Although
energy prices have decreased since the peak during
2022, permanent changes to the cost structure of
factories are expected going forward. To counteract
this, Re-Match will on a continued basis assess the
need to lock in energy prices one and two years in
advance and have already partially done so for 2023
and 2024.
However, it is the expectation that the higher cost
of operations can be offset by increases to both
front- and back-end fees as more and more back-
end products have been sold through different
sales outlets and to new industries, while there has
been a significant interest from other companies to
engage in commercial agreements. Consequently,
Re-Match expect the overall profitability of new
factories remains unchanged.
HIRING NEW EMPLOYEES
A significant risk to the roll-out of new factories is
being able to hire the right people in each market
Re-Match enter, onboarding and retaining new
employees. In 2022, in the Re-Match Group
(including the French Joint Venture) the number of
employees increased from 43 to 66 (55 not
including the French Joint Venture). An important
achievement that underlines Re-Match’s ability to
attract the right people. Re-Match’s environmental
purpose serves as a competitive advantage as
talent is increasingly seeking a purpose that they
can identify with, besides enticing opportunities and
remuneration. This is also something that is
highlighted in a regular employee survey.
With the impressive start to the operational
capabilities of the new Tiel factory an effort is
currently being made to onboard new employees to
reach full operationality as fast as possible. All
administration roles have been filled and the
recruitment of production employees have been
intensified.
In the French Joint Venture all key manager roles
including plant manager and regional sales
managers have been found. With the recent
commencement of the construction of the factory
building and ordering of the factory line, the
recruitment process of the remaining staff will be
intensified here as well.
2022 Annual Report | Re-Match | 13
POTENTIAL RUBBER BAN
The European Commission has drafted a proposal
to ban the use of rubber granules as infill in sports
pitches, and it was expected that the proposal
would be adopted by the end of 2022 with a 6-year
phasing out period. The decision was postponed
until the 1
st
of March 2023, where a vote in the
European Commission was planned. This was again
postponed due to the need of further investigation.
The aim of the proposal that the commission has
drafted is to avoid the spread of microplastics.
Across Europe, between 18,000 and 72,000 tons of
granules escape from artificial grass pitches
annually. In addition to run-off, granules escape
through rubbish disposal, surface water drains,
players’ clothing and the machines used for
maintenance. The expected change has little
impact on the business of Re-Match as we are
prepared and can easily change the processes to fit
other solutions than rubber infill.
Re-Match experienced increased demand for its
recycling solution from cities in Europe that will look
to have their turfs recycled in an environmentally
responsible and circular way, which the company
offer. Re-Match also expect to see less unregulated
solutions such as on-site separation of pitches.
Such solutions are a big environmental problem
since these processes generate a lot of dust and
microplastics. These problems are avoided when
complete turf is separated in dedicated recycling
facilities.
2022 Annual Report | Re-Match | 14
Delivering on strategy,
changing an industry
Re-Match has developed a patented and certified
process that uses state-of-the-art machinery to
recycle worn-out artificial turf pitches. It turns what
would otherwise be a waste problem with a
significant negative environmental impact into clean
and separated end products that can replace virgin
products in the installation of new pitches or for use
in other industries.
With the increasing wealth among populations
around the world, comes a demand for more
opportunities to play sports and thereby improving
the health and wellbeing of people. This also means
that more and better sports surfaces are needed -
and among those are artificial turf pitches. These
pitches allow for a higher-frequency usage for longer
periods of the year and do not require fertilizing or
irrigation.
This is good for both health and environment but
after 8-12 years the pitches are worn out and need
to be replaced. This is where Re-Match steps in to
ensure that the valuable material in the turf can be
recycled instead of ending up in landfills or being
incinerated. The result is a reduction of plastic and
CO
2
pollution by which Re-Match is tapping into the
global underlying mega trends such as the push for
a greener agenda, circularity, and the search for
sustainable solutions to mitigate an appertaining
waste problem.
What differentiates the turf recycling market from
most others, is the predictability of its size and
development. This is because the lifespan of pitches
installed is app. 10 years. As an example, the number
of pitches in need of recycling in 2025 – based on
global installation numbers from 2015 - is expected
to surpass 24.000 pitches and the figure for 2030 is
40.000.
In Herning, capacity is to recycle app. 110 pitches per
year and the capacity on the new factories will be
approx. 250 full-size artificial soccer pitches per year.
Before entering a new market, Re-Match initiates
solid market intelligence gathering on local costs and
market dynamics to build a business case. This is not
only done to ensure profitability of the individual
factory. Re-Match wants to be the global leader in
true artificial turf recycling and aspires to transform
it into becoming environmentally sustainable and to
achieve this, it is necessary to establish that all new
factories will be able support this goal. Therefore, a
factory blueprint has been developed and with only
minor tweaks, Re-Match will be able to replicate the
concept anywhere in the world - thereby providing
significant support towards the long-term goal of
having 24 factories globally. The international roll-
out has been set in motion and Re-Match is
executing on the plans to build the first five factories.
This is on track - and when this is achieved, Re-Match
will have proof that it is possible to reach the long-
term goal.
With the ideal production facilities in place, the next
task is to engage with customers and at Re-Match a
strong customer focus is central to how success
should be achieved. Wherever customers meet
Re-Match, they should see a company that instils
confidence in its capabilities, transparency in its
processes and that acts with integrity. This is how the
brand should be delivered and therefore, great care
is taken in both recruitment and training of new
employees in order to ensure that this will be
achieved.
At Re-Match there is true passion about the work
and the impact delivered through it - and employees
are proud to take part in realising the company
vision.
2022 Annual Report | Re-Match | 15
Business model
The Re-Match business model is built around a
sustainability agenda, the concept of circularity, and
the reuse of critical resources.
PRODUCTS & SERVICES
Our primary service is the recycling of artificial
sports pitches on behalf of local authorities, turf
manufacturers and turf installers. The result is four
materials: recycled sand, crumb rubber, backing
and plastic fibres. These materials are used in a
wide range of industrial and manufacturing
processes ranging from the production of acoustic
panels to the laying of new pitches.
Caption: Figure 1 shows the core elements of the Re-Match value chain, from supply to operations
to end-use
2022 Annual Report | Re-Match | 16
USED PITCHES
A typical full-size pitch weighs around 220 tons and
we grade the quality before accepting it. Local
contractors then cut the pitch into manageable
strips, which are rolled and placed in plastic sleeves
to help prevent loss of material and ensure
environmentally safe storage. The pitch is then
transported by road to our factory.
RECYCLING
Each incoming pitch is marked with a unique batch
number to provide customers with traceability.
From the storage site, the rolls of turf are placed in
the conveyor, which leads to a fully mechanized
recycling process with four key steps: drying,
shredding, separation and cleaning. All recycling
takes place at our factories in Denmark and
Netherlands. The construction of a third site, a joint
venture in France, is due to complete in 2024.
QUALITY
Importantly for customers, the final materials are
graded for size and colour and quality tested.
Results often show equivalence to virgin materials.
Each batch of product is traceable back to the pitch
it originated from.
SALES
Each factory has its own sales function and serves
recycling customers in a radius of around 1,000 km.
Recycled materials are sold to companies in a
similar radius. The profitability of our business
model is not dependent on subsidies.
1
Environmental Impact Study of Artificial Football Turf by Eunomia
Research & Consulting Ltd for FIFA, March 2017
WHY RECYCLE INSTEAD OF REUSE?
For many products, re-use is preferred to recycling,
but industry reports show this is not the case for
artificial pitches.
For example, a FIFA investigation
1
concluded that
re-use would only be acceptable if recycling was
unavailable and there was a viable market for the
used product. The report found little evidence of a
market for old pitches and that turf cut into smaller
sections for domestic use would almost certainly
end up in landfill or incineration.
A second report
2
by AMI Consulting Group reached
the same conclusion, saying that re-use simply
“delays the problem”. Further it found that the lack
of recycling of artificial turf is a “key threat” to the
health of the industry. In 2021, 64Mm
2
of turf was
replaced globally, forecast to rise to 90Mm
2
by
2025. The current recycling capacity is a small
fraction of this volume. Re-Match provides a much-
needed solution.
2
The Global Market for Artificial Turf, AMI Consulting Group, May 2022
2022 Annual Report | Re-Match | 17
Environment
As a recycler, the maximisation of the commercial
value of materials and sales volume are the most
important factors for the environmental
performance of our business.
In 2022 we recycled the equivalent of 88 standard
pitches, equivalent to avoiding carbon emissions by
approximately 27,250 tons compared to
incineration.
CARBON EMISSIONS AVOIDED
2021
2022
Change
Compared to landfilling
tons CO
2
e
6,750
4,644
-29.4%
Compared to incineration
tons CO
2
e
37,917
27,249
-28.1%
The table shows the carbon emissions avoided by the recycling of artificial turf at the Danish factory in 2021 and 2022 compared to
landfilling and incineration
3
.
FACTORY BUILDINGS AND EQUIPMENT
Re-Match factories are located at leased properties
designed for our needs. Our first factory, located in
Denmark, has provided us with several years of
experience in running a turf recycling plant.
The learnings from this period have been
incorporated into the blueprint for subsequent
factories, such as those in Netherlands and France,
and are expected to raise the environmental
performance of our expanding operations. The
optimization to the factory design means that less
energy will be consumed per ton of turf processed
while the back-end material will be of a higher purity
thereby improving the commercial value of our
products. We will also invest in upgrades to make the
Danish factory more efficient.
OPERATIONS
Not only do we support the sustainability agenda
though our business model, but we also strive to
apply sound ESG principles to minimise the
3
Compares the resource intensity to the carbon emissions associated with the production of new material (Meil & Bushi, Athena Sustainable Materials Institute,
2006) and incineration of artificial turf (Universal Textile Industries, 2013). When artificial turf is diverted from landfilling, the carbon emissions associated with
production of new materials is avoided, and when diverted from incineration the emissions from both production of new material and incineration of old is
avoided. The calculation assumes all recycled material is sold for use in new products and none is sent for incineration. Waste is excluded. Independent ESG
consultant Klinkby Enge has approved the methodology.
footprint of our operations. Below you can read the
steps we have already taken, as well as our near-
term plans.
ENERGY EFFICIENCY
The Dutch factory has an EU Energy Performance
Certificate rating of A+++ and is expected to
require less electricity, gas and diesel per ton of
production thanks to advances in production
technology.
SOLAR PANELS
In 2023 we will install solar panels on the roofs of
the Dutch and French factories, and these are
expected to deliver at least 15% of the energy
needs of these factories. There are currently no
plans to add solar panels to the Danish factory.
2022 Annual Report | Re-Match | 18
HEAT RECOVERY
In Netherlands and France, we recover heat from
the dryer and circulate it back into the dryer,
thereby improving overall energy efficiency. In early
2023 we invested in a similar heat recovery system
for Denmark.
PRODUCT DOCUMENTATION
Since 2021 we have provided product traceability
back to the original pitch material and tested each
batch for polycyclic aromatic hydrocarbons to
ensure compliance with safety limits.
Since the documentation we provide on our
products is key to their market value, we aim to
strengthen our documentation even more in line
with customer and regulatory demands.
In the short term, we aim to add the amount of
consumables (gas, electricity, diesel) used in each
batch, as well as waste generated. Longer term, we
aim to develop a lifecycle assessment according to
ISO 14040 as the basis for an environmental product
declaration.
FACTORY CERTIFICATION
To help ensure our customers are confident in the
quality of our operations, we have secured third-
party certification of key aspects of our process
according to leading international standards.
As of 2022, our Danish company has achieved the
following certifications:
• ISO 9001 Quality Management: the
operation of a system to deliver the right
quality end-products
• ISO 14001 Environmental Management: the
operation of a system for improving our
environmental performance
• EuCertPlast: the production of truly recycled
material – in other words, nothing is added
or taken away
• EU Environmental Technology Verification
(ETV): the efficacy of the recycling process
In 2023 we plan to secure ISO 9001, ISO 14001, BRL
and EuCertPlast. certification of our operations in
the Netherlands. Our under-construction factory in
France will follow suit in 2024.
We are also working on certification under RAL, a
German-based quality mark that will describe a
precise process for handling artificial turf, including
recycling. This is a new standard, still under
development, so it will be years before certification
is possible.
EU TAXONOMY
The EU taxonomy is a classification system
establishing a list of environmentally sustainable
economic activities. Its purpose is to create security
for investors, protect from greenwashing and help
companies become more climate friendly.
According to our 2022 self-assessment, Re-Match is
eligible under the taxonomy. Re-Match fulfils the
taxonomy’s ‘substantial contribution’ criteria for
climate mitigation in addition to some of its ‘do no
significant harm’ requirements. We aim to
demonstrate full alignment with all requirements by
2024 at the latest.
QHSE MANAGEMENT
To help manage and document our work with
quality, environmental performance, health and
safety, and employee competences, we
implemented Sherlock, a web-based QHSE
management platform in 2022. Sherlock will be used
across all international operations, making it easier
to add new factories, spot whether staff have the
correct training, and ensure similar quality across
factories.
2022 Annual Report | Re-Match | 19
2022 Annual Report | Re-Match | 20
SOCIAL KPI’S
2022
2021
FTE #
(Calculated based on the ATP-method)
55
38
Diversity %
(Female FTEs / all FTEs)
19.7%
16.6%
Diversity in management %
(Female FTEs / all FTEs)
14%
14%
Gender pay gap %
(Female median salary / male median salary)
109%
104%
Sick Leave %
(Number of sick days for all FTEs/number of FTEs)
3.3%
2,5%
Nationals split %
(DK nationals vs. non-DK nationals)
42% / 58%
65% / 35%
Board diversity
(Female members / all members)
20%
14%
2022 Annual Report | Re-Match | 21
2022 Annual Report | Re-Match | 22
• Sustainability policy
• Diversity policy
• Board and executive management
remuneration policy
• Investor relations and stakeholder
communications policy
• Tax policy
• Whistleblower policy
2022 Annual Report | Re-Match | 23
Group management &
Board of Directors
NOTE
In 2022, Co-Founder Dennis Andersen and Ulrik Lundsfryd left the Board of Directors. Dennis is currently
spearheading the expansion on the US market and the Business Development.
Ulrik chose to focus on his other business projects but remained an investor in the Re-Match.
2022 Annual Report | Re-Match | 24
Management board
NOTE
As previously announced, Thomas Bech Albertsen
resigned from his position as CFO in Re-Match and
left the company by the end of 2022. Since then, Re-
Match have engaged external finance consultants
to strengthen the finance department and to
proceed with optimising the finance procedures
and digital systems within the Re-Match group.
2022 Annual Report | Re-Match | 25
Meeting attendance
2022 Annual Report | Re-Match | 26
Shareholder information
SHARE PRICE DEVELOPMENT
The Re-Match share price closed at DKK 6.83 per
share on the 24
th
of March 2023 corresponding to a
total market capitalization of DKK 245m. Since the
IPO of Re-Match on 23
rd
of December 2021, the
share price has decreased by ~57%.
The Nasdaq First North Denmark Index, of which
Re-Match is a component, decreased by ~46% in the
same period. The MSCI, which represent more
profitable large and mid-cap companies, have
decreased by ~34% in the same period.
SHARE CAPITAL AND
OWNERSHIP STRUCTURE
With the capital raise carried out on 1
st
of March
2023, the registered share capital of the company
amounts to nominally DKK 35,893,744 divided into
share of nominally DKK 1 each.
Re-Match only have one share class with no
restrictions on ownership or voting rights. In the
diagram “below” the composition of shareholders in
Re-Match Holding A/S are shown.
2022 Annual Report | Re-Match | 27
ANNOUNCEMENT OF INTENTION
TO DELIST
On the 1
st
of March 2023, the board of directors
announced the intention to delist the company
which the board of directors decided was in the
best interest of the company and the shareholders.
As part of the plan, a transaction agreement has
been entered into with Nordic Alpha Partners
(Nordic Alpha Partners Fund I K/S), Verdane (Euros
Co-Invest (D) AB) and the “Offeror” (Project BidCo
ApS, which is a company controlled by Verdane).
The agreement includes multiple capital raises in
connection with investments by Nordic Alpha
Partners and Verdane directly or indirectly through
the Offeror, totalling gross proceeds of up to DKK
235m, as well as the Offeror’s voluntary unregulated
public offer to all shareholders to acquire shares in
Re-Match. In the Public Tender Offer, shareholders
in Re-Match will be offered to (i) sell their shares in
Re-Match for DKK 7.00 per share, or (ii) exchange
their shares in Re-Match to shares in the Offeror at
a 1:1 ratio (the "Public Tender Offer").
Based on this transaction it is the intention to delist
the company in Q2 after which the company will no
longer follow the disclosure requirements of First
North.
SHARE INFORMATION
Stock Exchange: Nasdaq Fist North
Index: First North Premier Growth Market
Share capital (DKK): 35,893,744
Number of shares: 35,893,744
Nominal value (DKK): 1
ISIN code: DK0061553674
Trading symbol: RMATCH
Treasury shares: n/a
FINANCIAL CALENDER
Annual General Meeting: 22
nd
of May 2023
Q1 2023 Trading statement: 31
st
of May 2023
Q2 2023 Interim report: 31
st
of August 2023
Q3 2023 Trading statement: 30
th
of November 2023
2022 Annual Report | Re-Match | 28
Our new factory in Tiel, Netherlands
Financial
Review
2022 Annual Report | Re-Match | 29
Statement by management
of March 2023
EXECUTIVE BOARD
BOARD OF DIRECTORS
2022 Annual Report | Re-Match | 30
Independent auditor’s report
2022 Annual Report | Re-Match | 31
2022 Annual Report | Re-Match | 32
CVR No 33 77 12 31
2022 Annual Report | Re-Match | 33
Financial statements
Consolidated statement of profit or loss and other comprehensive income
DKK’000
Note
2022
2021
Revenue
5
Cost of sales
-29,950
-29,437
Gross profit/loss
-2,349
-875
Other external expenses
-31,583
-15,477
Special items
31
-20,643
Staff costs
6
-38,207
-29,076
Other operating income
Depreciation. amortisation and
impairment losses
9
-12,384
-7,523
Operating profit/loss
-83,655
-73,019
Share of profit of a joint venture
17
Financial income
10
Financial expenses
11
-13,353
-19,953
Profit/loss before tax
-88,348
-92,424
Tax for the year
12
Profit/loss for the year
-88,348
-92,424
Other comprehensive income
Other comprehensive income that may be reclassified
to profit or loss in subsequent periods (net of tax):
Exchange differences on translation of foreign operations
-467
-743
Other comprehensive income for the year, net of tax
-467
-743
Total comprehensive income for the year
-88,815
-93,167
Earnings per share (DKK)
23
-3.07
-4.83
Earnings per share. diluted (DKK)
23
-3.07
-4.83
2022 Annual Report | Re-Match | 34
Consolidated Financial Statements
Consolidated statement of financial position
DKK’000
Note
31-12-22
31-12-21
Intangible assets
13
Property. plant and equipment
14
Right-of-use assets
15
Deposits
16
Deferred tax
12
Investments in joint venture
17
Other financial assets
18
Total non-current assets
Inventory
19
Trade receivables
20
Other receivables
21
Receivables from joint ventures
Prepayments
Cash
Total current assets
Total assets
2022 Annual Report | Re-Match | 35
Consolidated Financial Statements
Consolidated statement of financial position
DKK’000
Note
31-12-22
31-12-21
Share capital
23
Retained earnings
-28,877
Translation reserve
-365
Other capital reserve
25
Total equity
Interest bearing liabilities
24
Lease liabilities
15
Provisions
Contract liabilities
5
Total non-current liabilities
Interest bearing liabilities
24
Lease liabilities
15
Government grants
7
Trade payables
Other payables
Contract liabilities
5
Total current liabilities
Total liabilities
Total equity and liabilities
2022 Annual Report | Re-Match | 36
Consolidated Financial Statements
Consolidated statement of changes in equity
DKK’000
Share capital
Retained
earnings
Translation
reserve
Other capital
reserve
Total
2022
Balance on 1
st
of January
Net profit/loss for the period
-88,348
-88,348
Other comprehensive income
-467
-467
Total comprehensive
income
-88,348
-467
-88,815
Capital increase
Gain on own shares
Share based payments
Balance on 31
st
of December
-28,877
-365
DKK’000
Share capital
Retained
earnings
Translation
reserve
Other capital
reserve
Total
2021
Balance on 1
st
of January
-51,429
-26,504
Net profit/loss for the period
-92,424
-92,424
Other comprehensive income
-743
-743
Total comprehensive
income
-92,424
-743
-93,167
Capital increase
Cost relating to capital increase
-5,750
-5,750
Share based payments
Compound financial instrument
-6,922
Balance on 31
st
of December
2022 Annual Report | Re-Match | 37
Consolidated Financial Statements
Consolidated statement of changes in equity (continued)
DKK’000
Share capital
Retained
earnings
Translation
reserve
Other capital
reserve
Total
2020
Balance on 1
st
of January
-4
Corrections of error
-16,288
-16,288
Restated total balance
on 1
st
of January
-8,762
-4
Net profit/loss for the period
-49,082
-49,082
Other comprehensive income
Total comprehensive
income
-49,082
-48,233
Capital increase
Share based payments
Balance on 31
st
of December
-51,429
-26,504
2022 Annual Report | Re-Match | 38
Consolidated Financial Statements
Cash flow statement
DKK’000
Note
2022
2021
Operating loss
-83,655
-73,019
Depreciation. amortisation and impairment
losses
9
Change in working capital
22
Share-based payment expense
8
Income taxes received/paid
Interest paid
-1,690
-9,457
Cash flow from operating activities
-62,462
-56,188
Investments in intangible assets
13
-5,693
-7,758
Investments in tangible assets
14
-65,042
-160
Change in deposits
16
Capital increase, joint venture
-7,450
Receipt of government grants
Cash flow from investing activities
-58,646
-6,024
Proceeds from borrowings
24
Repayment of borrowings
24
-4,310
-34,485
Paid amount, exercised warrants
Payment of principal portion of lease liabilities
15
-13,167
-4,856
Gain on own shares
Cash flow from financing activities
Change in cash and cash equivalents
Net cash flow
-104,476
Net foreign exchange difference
Cash on 1
st
of January
27
Cash on 31
st
of December
27
2022 Annual Report | Re-Match | 39
Notes
2022 Annual Report | Re-Match | 40
1. Accounting policies
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 B enterprises with
additions of certain provisions for 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").
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, except as described below, have
been applied consistently during the financial year and
for the comparative figures.
BASIS OF CONSOLIDATION
The Consolidated Financial Statements comprise the
Financial Statements of Re-Match Holding A/S (the
Parent) and subsidiaries which are entities controlled by
Re-Match Holding A/S. The Group controls an entity
when it directly or indirectly owns more than 50% of the
voting rights or may otherwise exercise a controlling
influence.
NAME
COUNTRY
OWNER-
SHIP
Re-Match A/S
Herning, Denmark
100%
Re-Match Limited
London,
United Kingdom
100%
Re-Match AS
Oslo, Norway
100%
Re-Match USA, Inc.
Delaware, USA
100%
Re-Match
Netherlands B.V.
Rijen, Netherlands
100%
Re-Match Holding A/S has a 60% (2021: 40%) interest in
Re-Match France. The Group’s interest is accounted for
using the equity method in the Consolidated Financial
Statements.
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.
The line items of subsidiaries are recognised 100% in the
Consolidated Financial Statements. Investments in
subsidiaries are offset by the interest’s share of
subsidiaries’ net assets at the acquisition date at fair
value.
Accounting policies are described in full in this note
below.
2022 Annual Report | Re-Match | 41
NON-IFRS FINANCIAL MEASURES
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.
FOREIGN CURRENCY TRANSLATION
Transactions denominated in currencies other than the
functional currency are considered transactions in
foreign currency.
On initial recognition, transactions nominated 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 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.
CHANGES TO COMPARATIVE FIGURES
The 2021 comparative figures for deferred tax assets
and equity have been restated due to the identification
of incorrect accounting treatment of IAS 12. As the
Company and Group has a history of taxable losses, IAS
12 Income Taxes requires that convincing evidence is
available to support Management's assessment that
sufficient taxable profits will be available in the future.
Even though the approved budget and business plan
both in prior periods and at 31 December 2022 reflects
that the Company and Group will be generating taxable
profits in the foreseeable future, it is Management's
assessment that the recognition of the deferred tax
assets did not meet the strict criteria of IAS 12
'convincing evidence', as the budget and business plan
are sensitive to the timing and level of investments and
similar factors.
Consequently, deferred tax assets as of 1
st
of January
2021 and 31
st
of December 2021 have been restated to
DKK 0 for the Company and the Group. The effects of
the changes to the comparative figures for 2020 and
2021 are:
Deferred
tax asset
Retained
Earnings
1st of January 2020
16,288
7,526
Correction of error
-16,288
-16,288
1
st
of January, restated
0
-8,762
31
st
of December 2020
0
-51,429
31
st
of December 2021
0
58,897
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 bank and in hand.
STATEMENT OF PROFIT & LOSS
REVENUE
The Group recognises revenue from receiving waste for
recycling and subsequently selling the output raw
materials to customers. Revenue is mainly derived from
receiving gate fees for handling the disposal of artificial
turf, but in the long-term revenue will mainly be derived
from selling raw materials.
Revenue recognition requires an agreement with the
customer, which creates enforceable rights and
obligations between the parties, has commercial
2022 Annual Report | Re-Match | 42
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 customer and excludes amounts collected on behalf of
third parties.
The Group recognises revenue when it transfers control
of the goods to a customer. All revenue is derived from
contracts with customers. No significant element of
financing is deemed present as the sales are made with
a credit term of 10 days, which is consistent with market
practice.
Front-end
Front-end revenue is a fee for receiving old fields (gate
fee). The fee is received for a promise of recycling the
materials into new raw materials to reduce waste.
Revenue is recognised when the recycling process is
finished. Receivables are recognised when goods are
received (picked up by transport) and income is deferred
until the recycle process is finished.
Back-end
Back-end revenue is income from selling raw materials.
After recycling an old field, several types of raw materials
are made; sand in different versions, SBR rubber in
different versions and other types. This is primarily sold
to maintain soccer pitches but also other production
customers using the materials in e.g., furniture
production. Revenue is recognised when the customer
has control over the raw materials. Customers have
control when the materials are delivered at the
destination.
Other
Other revenue types are roll-up and transportation.
Rollup is a service where old fields are cut up to be
removed.
Transport can be both transport of old fields to Re-Match
and transport of raw materials to the customer. For both
services, a sub-contractor is involved. Re-Match is acting
as a principal in both scenarios. The Group has generally
concluded that it is the principal in those revenue
arrangements, because it typically controls the goods or
services before transferring them to the customer. Roll-
up is recognised when the work is done, as this is always
a separate performance obligation.
Transport is not distinct from front-end or back-end and
is recognised as bundled performance obligation at a
point of time.
COST TO OBTAIN A CONTRACT
The Group pays sales commission to its employees
based on the contracts that they obtain for sales of
goods. The commissions are expensed when incurred, as
the underlying customer contracts have a duration of
less than a year.
EXPENSES FOR RAW MATERIALS AND
CONSUMABLES
Expenses for raw materials and consumables include the
raw materials and consumables used in generating the
year's revenue.
GOVERNMENT GRANTS
Government grants relating to costs are deferred and
recognised in profit or loss as other operating income
over the period necessary to match them with the costs
that they are intended to compensate. When the grant
relates to an asset, it is recognised as income in equal
amounts over the expected useful life of the related
asset.
OTHER EXTERNAL EXPENSES
Other external expenses comprise sales and marketing
costs, external consultancy costs, other employee -
related costs, IT and software costs, investor relations
costs, loss allowances for doubtful trade receivables and
other administrative expenses.
SPECIAL ITEMS
Special items include significant income and expenses of
a special nature in terms of the Group’s revenue-
generating operating activities that cannot be attributed
directly to the Group’s ordinary operating activities, such
as expenses related to the IPO.
STAFF COSTS
Staff costs consist of salaries, sales commissions,
bonuses, pensions and social costs, share-based
payments, vacation pay, and other benefits. Salaries,
bonuses, pensions and social costs, share-based
payments, vacation pay, and other benefits are
recognised in the year in which the associated services
are rendered by the employees. The Group has entered
into retirement benefits schemes and similar
agreements with employees. Contributions to defined
contribution plans are recognised in the statement of
2022 Annual Report | Re-Match | 43
profit or loss in the period to which they relate, and any
contributions outstanding are recognised in the
statement of financial position as other liabilities.
SHARE-BASED PAYMENTS
The Board of Directors and the Board of Management
have been granted warrants. The warrants are measured
at fair value at the grant date and are recognised as an
expense in staff costs over the vesting period. Expenses
are set off against equity. The fair value of the warrants
is measured using the Black & Scholes valuation method
or other generally accepted valuation techniques. The
calculation takes into account the terms and conditions
under which the warrants are granted. Fair value is not
subsequently remeasured. Consideration received for
warrants sold is recognised directly in equity.
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.
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 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 growth and operating margin in the coming
years.
Re-Match A/S is included in a national joint taxation with
its Parent. The tax charge for the year is allocated
between the Danish jointly taxed companies in
proportion to their taxable income, taking taxes paid into
account.
BALANCE SHEET
INTANGIBLE ASSETS
Intangible assets with determinable useful lives comprise
completed and in -progress development projects,
patents and software and 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 shows that future
economic benefits exceed the cost.
Furthermore, development costs are recognised as
intangible assets where the following criteria are met:
- it is technically feasible to complete the asset so
that it will be available for use
- management intends to complete the asset and use
or sell it
- there is an ability to use or sell the asset
- it can be demonstrated how the asset will generate
probable future economic benefits
2022 Annual Report | Re-Match | 44
- adequate technical, financial and other resources to
complete the development and to use or sell the
asset are available, and
- the expenditure attributable to the asset during its
development can be reliably measured.
Cost is defined as development costs incurred to the
development of plastic upcycling processes and consists
primarily 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 annually.
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. Intangible assets are
amortised on a straight-line basis over the expected
useful lives of the finite-lived assets, which are as follows:
− Patents: 5-20 years
− Software: 5 years
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise plant and
machinery, leasehold improvements and other fixtures
and fittings, tool and equipment. Plant and machinery
and fixtures and fittings, tools and equipment are
measured at cost less accumulated depreciation and
accumulated impairment losses. Plant and machinery
and fixtures and fittings, tools and equipment, are
depreciated on a straight-line basis over the expected
useful lives of the finite-lived assets, which are as follows:
− Plant and machinery: 3-25 years
− Other fixtures and fittings,
tools and equipment: 3-5 years
Property, plant and equipment is 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 the entering into of 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 which include a service
element in the payments to the lessor. This service is
deducted from the lease payment when measuring the
lease obligation. Where the Group cannot reliably
separate lease and non-lease items, it is considered a
single lease payment.
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.
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
exercise of options to extend or shorten the lease
period due to a material event or material change
in circumstances which are within the control of the
lessee.
2022 Annual Report | Re-Match | 45
− 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.
DEPOSITS
On initial recognition, deposits are measured at fair value
and subsequently at amortised cost less impairment
losses, if any.
INVESTMENT IN A JOINT VENTURE
The Group’s investment in its joint venture is accounted
for using the equity method. Under the equity method,
the investment in a joint venture is initially recognised at
cost. The carrying amount of the investment is adjusted
to recognise changes in the Group’s share of net assets
of the joint venture since the acquisition date. Goodwill
relating to the joint venture is included in the carrying
amount of the investment and is not tested for
impairment separately. The statement of profit or loss
reflects the Group’s share of the results of operations of
the joint venture. Any change in other comprehensive
income (OCI) of those investees is presented as part of
the Group’s OCI. In addition, when there has been a
change recognised directly in the equity of the joint
venture, the Group recognises its share of any changes,
when applicable, in the statement of changes in equity.
Unrealised gains and losses resulting from transactions
between the Group and the joint venture are eliminated
to the extent of the interest in the joint venture. The
aggregate of the Group’s share of profit or loss of a joint
venture is shown on the face of the statement of profit
or loss outside operating profit and represents profit or
loss after tax and non-controlling interests in the
subsidiaries of the joint venture. The Financial
Statements of the joint venture are prepared for the
same reporting period as the Group. When necessary,
adjustments are made to bring the accounting policies in
line with those of the Group.
After application of the equity method, the Group
determines whether it is necessary to recognise an
impairment loss on its investment in its joint venture. At
each reporting date, the Group determines whether
there is objective evidence that the investment in the
joint venture is impaired. If there is such evidence, the
Group calculates the amount of impairment as the
difference between the recoverable amount of the joint
venture and its carrying value, and then recognises the
loss within ‘Share of profit of a joint venture’ in the
statement of profit or loss. Upon loss of significant
influence or joint control over the joint venture, the
Group measures and recognises any retained
investment at its fair value. Any difference between the
carrying amount of the joint venture upon loss of
significant influence or joint control and the fair value of
the retained investment and proceeds from disposal is
recognised in profit or loss.
INVENTORIES
Inventories are valued at the lower of cost and net
realisable value. Costs incurred in bringing each product
to its present location and condition are accounted for
as follows:
Finished goods cost of direct materials and labour
and a proportion of manufacturing overheads
based on the normal operating capacity but
excluding borrowing costs.
Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make
the sale.
FINANCIAL ASSETS
INITIAL RECOGNITION AND MEASUREMENT
Financial assets are classified, at initial recognition, as
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair
value through profit or loss. The classification of financial
assets at initial recognition depends on the financial
asset’s contractual cash flow characteristics and the
Group’s business model for managing them.
SUBSEQUENT MEASUREMENT
For purposes of subsequent measurement, financial
assets are classified in these categories:
− Financial assets at amortised cost (debt
instruments)
− Financial assets at fair value through profit or loss.
2022 Annual Report | Re-Match | 46
FINANCIAL ASSETS AT AMORTISED COST
(DEBT INSTRUMENTS)
Financial assets at amortised cost are subsequently
measured using the effective interest rate (EIR) method
and are subject to impairment. Gains and losses are
recognised in profit or loss when the asset is
derecognised, modified or impaired. The Group’s
financial assets at amortised cost include trade
receivables (see policy below).
FINANCIAL ASSETS AT FAIR VALUE
THROUGH PROFIT OR LOSS
Financial assets at fair value through profit or loss are
carried in the statement of financial position at fair value
with net changes in fair value recognised in the
statement of profit or loss. This category includes
derivative instruments.
TRADE RECEIVABLES
Provision for expected credit losses is made when the
Group does not expect to collect all amounts due. The
provision is determined by individually assessing them
for likelihood of recovery. The provision reflects lifetime
expected credit losses, i.e., possible default events over
the expected life of the trade receivables, weighted by
the probability of that default occurring. Judgement has
been applied in determining the level of provision for
expected credit losses, taking into account the credit risk
characteristics of customers and the likelihood of
recovery assessed on a combination of collective and
individual basis as relevant. While the provision is
considered appropriate, changes in estimation basis or
in economic conditions could lead to a change in the level
of provision recorded and consequently on the charge or
credit to profit or loss.
For trade receivables relating to accounts which are long
overdue with significant amounts or known insolvencies
or non-response to collection activities, they are
assessed individually for impairment allowance. The
Group determines the provision for expected credit
losses by evaluating each customer individually and
assessing them for likelihood of recovery, taking into
account prevailing economic conditions and forward -
looking assumptions.
The Group measures the loss allowance for trade
receivables at an amount equal to the lifetime expected
credit losses. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at
the reporting date to its recognised amount is
recognised in profit or loss, as an impairment loss or a
reversal of an impairment loss. Trade and other
receivables are written off (either partially or in full) when
there is no reasonable expectation of recovery.
However, in certain cases, the Group may also consider
a financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive
the outstanding contractual amounts in full before taking
into account any credit enhancements held by the
Group.
The costs of allowances for expected credit losses and
write-offs for trade receivables are recognised in the
statement of profit or loss in other external expenses.
The maximum exposure to credit risk at the reporting
date is the carrying value of trade receivables in note 20.
The Group does not hold collateral as security.
PREPAYMENTS
Prepayments comprise incurred costs relating to
subsequent financial years. Prepayments are measured
at cost.
INTEREST -BEARING LIABILITIES
Interest -bearing liabilities are measured at amortised
cost.
TRADE PAYABLES AND OTHER PAYABLES
Other payables include bonus and commission accruals,
vacation pay obligations, payroll taxes and VAT. Payables
are measured at cost.
Management has assessed the impact of new or
amended and revised accounting standards and
interpretations (IFRSs) issued by the IASB and IFRSs
endorsed by the European Union effective on or after 1
st
of January 2022. It is assessed that application of
amendments effective from 1
st
of January 2022 has not
had a material impact on the consolidated financial
statements for 2022. Furthermore, Management does
not anticipate any significant impact on future periods
from the adoption of these amendments.
2022 Annual Report | Re-Match | 47
2. Assumptions for recognition
and measurement
The Group and the parent company have recognised
non-current assets at a total value of DKK 311,146t, non-
current contract liabilities DKK 9,700t and provisions DKK
2,150t.
The valuation is based on future plans for the
establishment of a number of profitable production
facilities in the current and new subsidiaries abroad.
These will ensure that future revenues are obtained on
development projects, that the production facility in
Denmark achieves increased future earnings by, among
other things, support and optimization of subsidiaries.
These new production facilities are expected to be able
to realise, among other things, a higher output and
better quality compared to the current Danish
production facilities.
The parent company has a stock of untreated pitches,
which will not generate positive earnings under the
current production setup. The value of Contract liabilities
is recognised on the condition that pitches stored
abroad are handled at the new facilities, where the
production costs per tons are expected to be lower than
the current ones in Denmark.
CONTINUOUS OF THE “ROLL-OUT PLAN
2022-2026”
Management expected by the end of 2021 to build at
least 5 new factories by the end of 2026. These are; one
factory in the Netherlands, one in France, one in the UK
and two in the US. During the year the factory in the
Netherlands have been finalised. It is assumed that the
production capacity will continue to increase significantly
within a short period of years, so that the Group will be
able to handle up to 300,000 tons in 2026. In line with
the increased capacity, it is expected that production will
also result in a higher output, whereby increased
volumes of back-end products can be sold. Future
expectations are that the back-end products will
represent an ever-increasing share of the total revenue.
This is, among other things, due to a better separation of
the products and at the same time a continued
development of new processes by which fibres
increasingly can be recycled and sold.
Management expects increased pressure on the
recirculation of products and thus, over time, also price
increases for raw materials such as sand, rubber and
plastic.
The plan incorporates a limited price increase for the
products over the period. Production costs such as
electricity and gas are updated in March 2022 and based
on forward prices, which are above historically realized
levels. In addition, several other costs such as
maintenance, big bags and sleeves are all factored in at
current prices, which are very high.
Management expects that the roll-out plan can be
realized and that the liquidity/financing for the
establishment of the increased production capacity can
be achieved through a combination of grants,
bank/region loans and equity, which is already underway
in the Netherlands, France and the United States.
If the roll-out plan is not realized, the recognized values
of the assets and provisions will be adversely affected.
The roll-out plan is based on management's current
expectations and schedules. The plan is based on a
number of future events and assumptions that are
inherently subject to uncertainty.
Q1 2023 has been realized according to management's
expectations in the Roll-out plan for 2023, with
production and revenue being on par with plans.
2022 Annual Report | Re-Match | 48
3. Critical accounting judgements
and key sources of estimation
uncertainty
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 judgements made in applying the
entity’s accounting policies. The estimates, judgements
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 judgements 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 judgements to be significant in the
preparation of the Financial Statements.
JUDGEMENTS
Determining the lease term of contracts with renewal
and termination options – Group as lessee.
The Group determines the lease term as the non-
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is
reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. The Group
applies judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to renew or
terminate the lease.
ESTIMATES AND ASSUMPTIONS
SHARE-BASED PAYMENTS
Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which depends on the
terms and conditions of the grant. This estimate also
requires determination of the most appropriate inputs to
the valuation model, including the expected life of the
share option or appreciation right, volatility and dividend
yield and making assumptions about them. The
assumptions and models used for estimating fair value
for share-based payment transactions are disclosed in
note 8.
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 judgements made.
CAPITALISATION OF COSTS FOR
DEVELOPMENT PROJECTS
Initial capitalisation of costs is based on management’s
judgement that technological and economic feasibility is
confirmed. Management makes assumptions regarding
the expected future cash generation of the project,
discount rates to be applied and the expected period of
benefits when determining the amount to be capitalised.
2022 Annual Report | Re-Match | 49
4. Segment information
For management purposes and based on internal
reporting information, the Group originates its
revenue from three reportable segments, namely:
− The Front-end segment, including revenues
originating from sales of recycling artificial
turf
− The Back-end segment, including revenue
originating from the sales of raw materials
(e.g., sand, fibre, etc.)
− A segment defined as Other, which includes
revenue deriving from additional services
provided by Re-Match A/S to their
customers, such as transport and roll-up
services.
Services included in the “Other” category have been
aggregated because of similar economic
characteristics, such as the nature of the products and
services provided.
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 revenue and is measured
consistently with revenue in the Consolidated
Financial Statements. The statement of profit or loss in
management information is not separated into
segments, and therefore no further information is
disclosed. For the split of revenue per segment, please
refer to note 5.
In 2022, one customer exceeded 10% of total revenue.
The customer belonging to the front-end segment
accumulated for 10,4% within the geographical market
of Norway. (2021: One customer with accumulated
front-end revenue of 12,1% within the geographical
market of Norway).
2022 Annual Report | Re-Match | 50
5. Revenue
From external customers
DKK’000
2022
2021
Front end
11,074
14,974
Back end
4,317
5,249
Other (Transport, roll-up revenue etc)
12,211
8,339
Total
27,601
28,562
Geographical markets
DKK’000
2022
2021
Denmark (Nordics)
2,947
2,726
Norway (Nordics)
12,781
7,326
Sweden (Nordics)
3,975
1,730
Nordics, rest
271
662
Netherland (Benelux)
4,107
7,872
Belgium (Benelux)
582
4,674
DACH
22
1,827
USA
431
0
Rest of Europe
2,485
1,745
Total
27,601
28,562
Contract liabilities
DKK’000
2022
2021
Cost at 1
st
of January
29,062
26,491
Recognised during the year
-9,996
-14,277
Additions
19,735
16,848
Cost at 31
st
of December
38,800
29,062
Management expects that approximately 0 % (2021: 28%) of the transaction price allocated to the unsatisfied
contracts as of year-end 2022 will be recognised as revenue during the next reporting period and amount to DKK
29.1m (2021: DKK 8m). Approximately 25% (2021: 72%), DKK 9.7m (2021: DKK 21m), will be recognised in the financial
year 2024.
2022 Annual Report | Re-Match | 51
6. Staff costs
DKK’000
2022
2021
Salaries
35,212
26,267
Share-based payments
1,484
7,018
Pensions
3,612
1,270
Other social security costs
1,214
461
Transferred to development costs
-3,587
-5,988
Other staff costs
272
48
Total
38,207
29,076
Average numbers of employees during the year
Board of Directors and Key Management Personnel
DKK’000
2022
Remune-
ration
Pension
Share-Based
Payments
Total
Board of Directors
751
0
0
751
Key Management Personnel
4,014
321
1,394
5,729
Total
4,765
321
1,394
6,480
Board of Directors and Key Management Personnel
DKK’000
2021
Remune-
ration
Pension
Share-Based
Payments
Total
Board of Directors
398
0
0
398
Key Management Personnel
3,655
163
5,556
9,374
Total
4,053
163
5,556
9,772
Members of the Board of Directors have received remuneration for work other than work in the Board. In 2022 this
amounts to remuneration of DKK 300t (2021: DKK 1,363t).
Employment contracts for members of the Key Management Personnel contain terms and conditions that are common
to those of their peers in similar companies, including terms of notice and non-competitive clauses.
2022 Annual Report | Re-Match | 52
7. Government grants
The Group has received government grants relating to the development of a production site in Tiel, the Netherlands, as
well as grants relating to further develop their recycling method, in 2022 to the amount of DKK 20,021t (previous years:
14,910t). There are no unfulfilled conditions or other contingencies attached to these grants. The group did not benefit
directly from any other form of government assistance.
During the year 868t have been recognised in other operating income (2021: DKK 575t)
8. Share-based payments
DKK’000
2022
2021
Cost of share-based payments
1,484
7,018
Total
1,484
7,018
Costs of share-based payments are recognised as staff costs with a corresponding effect in equity. Consideration received
for warrants sold is recognised directly in equity. In addition, during the year all employees have been granted 200
shares, hence an expense of 90 DKK'000 have been booked.
The Group offers warrants to members of the Executive management. Each share option converts into one ordinary
share of Re-Match Holding A/S on exercise. No amounts are paid or are payable by the recipient on receipt of the
option. The options carry neither right to dividends nor voting rights. Options may be exercised in case of exit events or
at the latest in 2024.
Options are exercisable at an agreed price on the date of grant. The vesting period is 1-3 years. If the options remain
unexercised after the exercise period, the options expire. Options are forfeited if the employee leaves the Group before
the options vest
Specification of outstanding warrants
Number of warrants
Weighted
average exercise
price DKK
Board of
Directors
Employees
Total
Outstanding at 1
st
of January
2021
9.11
74,071
287,871
361,942
Granted
-
982,672
348,802
1,331,474
Exercised
-
-
-
-
Cancelled
-
-74,071
-75,828
-149,899
Outstanding at 31
st
of
December 2021
9.11
982,672
560,846
1,543,518
Granted
-
-
-
-
Exercised
1
-
-40,441
-40,441
Cancelled
-
-75,827
-
-75,827
Outstanding at 31
st
of
December 2022
10.11
906,845
520,405
1,427,250
2022 Annual Report | Re-Match | 53
8. Share-based Payments (continued)
Outstanding warrants have the following characteristics:
Outstanding warrants
Weighted
average
exercise
price DKK
Vesting
period
Exercise
period
2022
2021
Warrants granted in 2019
1.00
19 Mar –
21 Mar
21 Mar –
24 Sep
287,871
287,871
Warrants granted in 2021,
prior IPO
1.00
19 Nov –
21 Dec
21 Dec –
24 Nov
382,123
422,564
Warrants granted in 2021,
post IPO
16.00
21 Dec –
23 Feb
22 Dec –
24 Dec
757,257
833,084
Outstanding at 31
st
of December
1,427,251
1,543,519
No warrants are exercised in 2022.
2022
2021
Average remaining life of outstanding warrants at 31
st
of December (years)
2.0
3.0
Exercise price for outstanding warrants at 31
st
of December (DKK)
1-16
1-16
The fair value of the warrants issued is measured at calculated market price at the grant date based on the Black &
Scholes option pricing model. The calculation is based on the following assumptions at the grant date:
Warrants granted
in 2021
Warrants granted
in 2019
Average share price (DKK)
16.00
8.15
Expected volatility rate (% p.a.)
35%
35%
Risk-free interest rate (% p.a.)
0
0
Expected warrant life (no. years)
0-3
2
Exercise price (DKK)
1.00-16.00
1.00
Fair value all warrants. after dilution (DKK’000)
9,513
2,343
Expected volatility rate is applied based on the annualised volatility on relevant peer groups derived from the standard
deviation of daily observations over 12 months ending in 2021.
The implementation of the finalized warrant contracts has resulted in minor changes in the comparative numbers from
2021.
In March 2023, the Board of Directors set forth a recommendation to EGM a delisting of the company and attract new
capital required to potentially accelerate the roll out of further factories. Included in this recommendation are to waive
granted warrants not vested yet, hence the remaining fair value of the program is expected to be recognised in 2023.
2022 Annual Report | Re-Match | 54
9. Depreciation, amortisation and impairment losses
DKK’000
2022
2021
Amortisation of intangible assets
1,905
2,011
Depreciation of property plant and equipment
2,200
2,147
Depreciation of right-of-use assets
8,279
3,365
Total
12,384
7,523
10. Financial income
DKK’000
2022
2021
Foreign exchange income
6,818
548
Other financial income
1,490
0
Total
8,308
548
11. Financial expenses
DKK’000
2022
2021
Interest expenses
3,271
9,416
Foreign exchange losses
779
789
Interest on convertible loans
0
6,663
Interest on lease liabilities
9,303
3,085
Total
13,353
19,953
2022 Annual Report | Re-Match | 55
12. Tax for the year
The major components of income tax expense for the years ended 31
st
of December 2022 and 2021 are:
DKK’000
2022
2021
2020
Current tax for the year
0
0
0
Current tax for previous years
0
0
-1,528
Changes in deferred tax
0
0
0
Income tax expense reported in
the statement of profit or loss
0
0
-1,528
Profit/loss before tax
-88,348
-92,424
-46,285
Tax calculated as 22% of profit/loss before tax
19,447
20,333
10,183
Tax loss not recognised for the year
-19,447
8,321
-9,472
Non-deductible expenses
0
-34,179
30
Tax credit
0
0
0
Correction of development costs from previous years 0
0
-531
Correction of tax credit from previous years
0
0
-1,528
Other
0
5,525
-210
Effective tax
0
0
-1,528
Effective tax rate for the year (%)
0.0%
0.0%
3.3%
Deferred tax is recognised in the statement of financial position as follows:
DKK’000
2022
2021
2020
Deferred tax (asset)
0
0
16,288
Correction of error
0
0
-16,288
Deferred tax (asset), restated
0
0
0
Deferred tax (liability)
0
0
0
Total
0
0
0
Deferred tax assets have not been recognised for tax losses that arose in Denmark in the amount of DKK 40,855t
(2021: DKK 29,717t) that are available for offsetting against future taxable profits of the Parent.
2022 Annual Report | Re-Match | 56
13. Intangible assets
2022
DKK’000
Completed
development
projects
Development
projects in
progress
Patents
Software
Total
Cost at 1
st
of January
7,012
6,139
3,510
2,724
19,385
Additions
0
4,586
1,024
83
5,693
Foreign exchange adjustments
0
0
0
0
0
Cost at 31
st
of December
7,012
10,725
4,534
2,807
25,078
Amortisation and impairment
losses at 1
st
of January
-5,667
0
-625
-506
-6,798
Amortisation during the year
-925
0
-423
-557
-1,905
Amortisation and impairment
losses at 31
st
of December
-6,592
0
-1,048
-1,063
-8,703
Carrying amount at
31
st
of December
420
10,725
3,486
1,744
16,375
Completed development projects relate to the development of plastic recycling. Management has an expectation of
positive earnings from the 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
During the year, DKK 1,046t has been expensed as research and development (2021: DKK 1,743t)
2022 Annual Report | Re-Match | 57
13. Intangible assets (continued)
2021
DKK’000
Completed
development
projects
Development
projects in
progress
Patents
Software
Total
Cost at 1
st
of January
7,012
151
2,463
2,001
11,627
Additions
0
5,988
1,047
723
7,758
Cost at 31
st
of December
7,012
6,139
3,510
2,724
19,385
Amortisation and impairment
losses at 1
st
of January
-4,441
0
-345
0
-4,786
Amortisation during the year
-1,226
0
-280
-506
-2,012
Amortisation and impairment
losses at 31
st
of December
-5,667
0
-625
-506
-6,798
Carrying amount at
31
st
of December
1,345
6,139
2,885
2,218
12,587
2022 Annual Report | Re-Match | 58
14. Property, plant & equipment
DKK’000
Other fixtures
and fittings,
tools and
equipment
Plant and
machinery
Leasehold
improvement
Total
2022
Cost at 1
st
of January
1,966
30,404
1,358
33,728
Additions
453
62,368
2,221
65,042
Disposals
-700
0
0
-700
Cost at 31
st
of December
1,719
92,772
3,579
98,070
Depreciation at 1
st
of January
-927
-7,721
-986
-9,634
Depreciation during the year
-390
-1,613
-197
-2,200
Reversed depreciation
467
0
0
467
Depreciation at 31
st
of December
-850
-9,334
-1,183
-11,367
Carrying amount at 31
st
of December
869
83,438
2,396
86,703
2021
Cost at 1
st
of January
1,962
30,248
1,358
33,568
Additions
4
156
0
160
Disposals
0
0
0
0
Cost at 31
st
of December
1,966
30,404
1,358
33,728
Depreciation at 1
st
of January
-553
-6,045
-865
-7,463
Depreciation during the year
-374
-1,676
-121
-2,171
Depreciation at 31
st
of December
-927
-7,721
-986
-9,634
Carrying amount at 31
st
of December
1,039
22,683
372
24,094
2022 Annual Report | Re-Match | 59
15. Leases
DKK’000
Property
Machinery
Total
2022
Cost at 1
st
of January
49,414
654
50,068
Additions
156,356
2,292
158,648
Adjustments and revaluations
368
1
369
Cost at 31
st
of December
206,138
2,947
209,085
Depreciation at 1
st
of January
-9,077
-512
-9,589
Depreciation during the year
-8,107
-172
-8,279
Adjustments and revaluations
0
0
0
Depreciation at 31
st
of December
-17,184
-684
-17,868
Carrying amount at 31
st
of December
188,954
2,263
191,217
2021
Cost at 1
st
of January
48,511
532
49,043
Additions
0
122
122
Adjustments and revaluations
903
0
903
Cost at 31
st
of December
49,414
654
50,068
Depreciation at 1
st
of January
-5,824
-401
-6,225
Depreciation during the year
-3,253
-111
-3,364
Depreciation at 31
st
of December
-9,077
-512
-9,589
Carrying amount at 31
st
of December
40,337
142
40,479
2022 Annual Report | Re-Match | 60
Carrying amounts of lease liabilities and movements during the period:
15. Leases (continued)
DKK’000
2022
2021
At 1
st
of January
45,186
45,932
Additions
158,648
122
Accrual of interest
9,303
3,085
Payments
-13,167
-4,856
Adjustments
-3,213
903
At 31
st
of December
196,758
45,186
Non-current
191,338
40,264
Current
5,420
4,923
The maturity of lease liabilities is disclosed in note 26.
The following amounts have been recognised in the statement of profit or loss:
DKK’000
2022
2021
Depreciation of right-of-use assets
8,279
3,364
Interest on lease liabilities
9,303
3,085
Expense relating to short-term leases (included in other external
expenses)
6
121
Total amount recognised in the statement of profit or loss
17,588
6,570
The Group had total lease outflow of DKK 12,799t (2021: DKK 6.192t).
The Group leases offices and lease terms are negotiated on an individual basis and contain
different terms and conditions.
16. Deposits
DKK’000
2022
2021
Cost at 1
st
of January
2,053
2,411
Additions
424
0
Repayment
-742
-358
Cost at 31
st
of December
1,735
2,053
2022 Annual Report | Re-Match | 61
17. Investment in a joint venture
The Group has a 60% (2021: 40%) interest in a joint venture in France, Re-Match France. The Group has during the year
acquired additionally 20% from the other investor in the joint venture. The Group’s interest in Re-Match France is accounted
for using the equity method in the Consolidated Financial Statements. Summarised financial information of the joint
venture, based on its IFRS Financial Statements, and reconciliation with the carrying amount of the investment in the
Consolidated Financial Statements are set out below:
Summarised statement of financial position of Re-Match France:
DKK’000
2022
2021
Current assets
33,037
10,487
Non-current assets
21,870
318
Current liabilities
39,419
11,880
Non-current liabilities
0
0
Equity
15,488
-1,075
Group’s share in equity 60%
9,293
-430
Goodwill
0
0
Group’s carrying amount of the investment
9,293
0
DKK’000
2022
2021
Revenue
10,488
9,214
Cost of sales
-9,650
-6,101
Staff costs
-2,477
-3,625
Other external expenses
-16
-810
Depreciations
-302
-126
Financial expenses
-79
0
Profit/loss before tax
-2,036
-1,448
Income tax
0
0
Profit/loss for the year
-2,036
-1,448
Other
0
0
Total comprehensive income for the year
-2,036
-1,448
Group’s share of profit for the year
-1,222
0
2022 Annual Report | Re-Match | 62
18. Other financial assets
DKK’000
2022
2021
Convertible Loan at 1
st
of January
5,832
6,554
Additions
0
0
Fair value adjustment
0
-722
Convertible loans at 31
st
of December
5,832
5,832
The Group has made a convertible loan available to Re-Match France in an amount of EUR 880,000, which is not bearing
interest. It has been included in other financial assets and classified as financial assets at fair value through profit or loss.
The EUR 880t convertible bonds investment in the joint venture is measured at fair value through profit or loss at an
amount of DKK 0t as of 31
st
of December 2022 (31
st
of December 2021: DKK -722t). The bond bears no interest and can
currently be converted into shares resulting in an increase in the ownership percentage from 60 to 96. Following such
conversion, the partner has the right to subscribe for such a number of shares at the same issue price as the conversion
price in the convertible bond to retain that the pre-conversion ownership percentage, 40, is retained.
Consequently, Re-Match will either obtain control upon conversion or additional capital will be contributed to the entity
resulting in increased earnings in the entity. On this basis, Management has considered the convertible bond to have the
nature of a demand deposit and consequently measured it at its nominal amount.
Fair value is determined based on level 3 input.
2022 Annual Report | Re-Match | 63
19. Inventories
DKK’000
2022
2021
Finished goods
4,187
5,011
Total inventory
4,187
5,011
During 2022 DKK 1,001t (2021: 648t) was recognised as an expense for inventories carried at net realisable value. This
is recognised in cost of sales.
20. Trade receivables
DKK’000
31/12/22
31/12/21
01/01/21
Trade receivables
5,069
4,266
3,231
Write-downs
-1,944
-796
-197
Total
3,125
3,470
3,034
Expected credit loss
The below table details the maturity of trade receivables. The Group has assessed its expected credit losses on an
individual level, and has deemed its expected losses immaterial, for which reason there no matrix for expected credit
loss on groups of receivables has been made available, and furthermore the historical losses on trade receivables are
limited as shown in the maturity analysis.
DKK’000
Not past
due
Overdue by
0-30 days
Overdue by
31-60 days
Overdue by
>60 days
Write
downs
Carrying
amount of
receivables
31
st
of December 2022
Trade receivables
538
1,334
260
2,937
-1,944
3,125
31
st
of December 2021
Trade receivables
418
117
810
2,921
-796
3,470
1
st
of January 2021
Trade receivables
331
294
196
2,410
-197
3,034
2022 Annual Report | Re-Match | 64
21. Other receivables
DKK’000
2022
2021
Warranties
18,215
18,294
VAT
5,309
5,605
Other
2,586
281
Total
26,110
24,180
Warranties relate to leases for storage space which are classified as short-term leases and not capitalised.
22. Working capital changes
DKK’000
2022
2021
Change in inventory and prepayments
133
993
Change in receivables
-1,585
-7,520
Change in trade payables and other debt
10,467
22,139
Total
9,015
15,612
2022 Annual Report | Re-Match | 65
23. Share capital and earnings per share
At 31
st
of December 2022, the share capital consisted of shares with a nominal value of DKK 1 each (31
st
of December 2021:
DKK 1 each). The shares are not divided into classes and carry no right to fixed income.
Issued and fully paid-up shares:
DKK’000
At 1
st
of January 2021
14,682
Capital increase
14,022
At 31
st
of December 2021
28,704
Capital increase
47
Share capital at 31
st
of December 2022
28,751
Earnings per share
The calculation of earnings per share is based on the following:
DKK’000
2022
2021
Profit/loss for the year
-88,348
-92,424
Interest on convertible loan
0
11,920
Earnings for the purposes of diluted earnings per share
-88,348
-80,504
Average number of ordinary shares for calculation of basic
earnings per share:
28,750,841
16,654,036
Average diluted effect of outstanding share options
0
428,764
Convertible loans
0
3,175,133
Average number of shares for calculation of diluted earnings
per share:
28,750,841
20,257,933
Earnings per share. (EPS)
-3.07
-4.83
Earnings per share. diluted (DEPS)
-3.07
-3.97
2022 Annual Report | Re-Match | 66
24. Interest-bearing liabilities
DKK’000
31/12/22
31/12/21
At 1
st
of January
19,247
46,520
Additions
33,509
23,268
Paid interest
-1,543
0
Accrual of interest
2,618
7,630
Payments
-4,310
-34,485
Adjustments
0
-23,686
At 31
st
of December
49,521
19,247
Management has assessed the carrying amount to be equivalent to the fair value of the liabilities.
25. Other capital reserve
Other capital reserve is used to recognise the value of equity-settled share-based payments provided to employees,
including Key Management Personnel, as part of their remuneration.
Refer to note 8 for further details of these plans.
26. Financial risks
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.
2022 Annual Report | Re-Match | 67
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, so that currency risk, interest rate risk and credit risk only 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. 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.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations towards the Group, resulting in a financial loss. T he
Group is exposed to credit risk primarily related to its trade and other receivables, receivables from group enterprises,
contract assets and cash held at financial institutions.
The Group assesses default when the accounts receivable are due more than 90 days and the outstanding amount is
written off, when there is a court order of bankruptcy from the counterparty. 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 i n
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 issues invoices in local currency, which is why the incoming cash flow reflects different currencies. Historically,
EUR has been the predominant invoiced currency. The Group has in all material aspects only transactions in DKK, EUR
and USD. The foreign currency risk for EUR is limited due to a low volatility.
Going forward, Management expects higher frequency of foreign currencies in the incoming and outgoing cash flow.
Consequently, Management has established bank accounts for these currencies, to reduce costs and lower the risk.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the
reporting date are as follows:
DKK’000
2022
2021
Sensitivity to a 10% increase or decrease in USD exchange rate
Effect on profit before tax
779
121
Effect on pre-tax equity
1,526
834
DKK’000
Assets
Liabilities
31/12/22
31/12/21
31/12/22
31/12/21
Currency: USD
3,627
3,037
18,884
36
2022 Annual Report | Re-Match | 68
Liquidity risk
The Group ensures sufficient liquidity resources by liquidity management. In order to limit the Group’s counterparty risk,
deposits are only made in well-reputed banks.
At 31
st
of December 2022, the Group's cash and cash equivalents amounted to DKK 13,626t (2021: DKK 118,244t).
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted
payments which include estimated interest payments:
DKK’000
On demand
<1 year
1 to 5 years
> 5 years
Total
Year ended 31
st
of December 2022
Interest-bearing liabilities
0
16,790
27,047
5,684
49,521
Lease liabilities
0
5,420
27,472
163,866
196,758
Trade and other payables
0
29,484
0
0
29,484
Total
0
51,694
54,519
169,550
275,763
DKK’000
On demand
<1 year
1 to 5 years
> 5 years
Total
Year ended 31
st
of December 2021
Interest-bearing liabilities
0
4,785
14,462
0
19,247
Lease liabilities
0
1,944
10,230
33,013
45,187
Trade and other payables
0
27,105
1,649
0
28,754
Total
0
33,834
26,341
33,013
93,188
Interest rate risk
The Group’s interest-bearing debt are all fixed rates at 31
st
of December 2022
2022 Annual Report | Re-Match | 69
26. Financial risks, financial instruments
DKK’000
2022
2021
Financial assets measured at fair value through profit and loss
Other financial assets, convertible receivable from France JV
5,823
5,823
Total
5,823
5,823
Financial assets measured at amortised cost
Deposits
1,735
2,053
Trade receivables
3,125
3,470
Other receivables
26,110
24,180
Cash
13,766
118,244
Total
44,736
147,947
Financial liabilities measured at amortised cost
Interest-bearing liabilities
49,521
19,247
Trade payables
18,195
12,564
Other payables
11,289
16,191
Total
79,005
48,002
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.
2022 Annual Report | Re-Match | 70
27. Other disclosures relating to consolidated statement of cash flow
For the purpose of the statement of cash flows. cash and cash equivalents comprise the following at 31
st
of December:
DKK’000
31/12/22
31/12/21
01/01/21
Cash at banks and on hand
5,618
107,674
6,029
Cash set aside as security
8,148
10,603
0
Bank overdrafts
0
-33
-13
Cash and cash equivalents
13,766
118,244
6,016
Additional information on the changes to liabilities arising from financing activities can be found in the below tables:
2022 | DKK’000
Other
borrowings
Lease
liabilities
Total
Liabilities at 1
st
of January
19,248
45,187
64,435
Loans raised
33,508
0
33,508
New leases
0
167,951
167,951
Repayments
-4,310
-13,167
-17,477
Other
1,076
-3,213
-2,137
Liabilities at 31
st
of December
49,521
196,758
246,280
2021 | DKK’000
Other
Borrowings
Lease
liabilities
Total
Liabilities at 1
st
of January
46,520
45,932
92,452
Loans raised
23,668
0
23,668
New leases
0
122
122
Repayments
-34,485
-4,856
-39,341
Other
-16,455
3,989
-12,466
Liabilities at 31
st
of December
19,248
45,187
64,435
2022 Annual Report | Re-Match | 71
28. Guarantees, contingent liabilities and collateral
The Parent participates in a Danish joint taxation arrangement where Re-Match Holding A/S serves as the
administration company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Parent is
therefore liable to income taxes etc. for the jointly taxed entities, and for obligations, if any, relating to the withholdin g
of tax on interest, royalties and dividend for the jointly taxed entities, if any, relating to the withholding of tax on
interest, royalties and dividend for the jointly taxed entities. The jointly taxed entities’ total known net liability under the
joint taxation arrangement is disclosed in the administration company’s Financial Statements.
29. Related parties
Shareholders
Registered office
Basis of influence
Nordic Alpha Partners Fund I K/S
Hellerup
32.18%
MLI Portfolio Holding ApS
Hellerup
8.45%
KAPITALFORENINGEN MP INVEST, DANSKE AKTIER
Copenhagen
4.98%
Danica Pension, Livsforsikring
Copenhagen
4.87%
LAC Invest Ikast ApS
Ikast
4.67%
DACH Invest ApS
Risskov
3.80%
Ulrik Lundsfryd
Klampenborg
3.01%
UI Investment ApS
Ikast
2.71%
Transactions with Nordic Alpha Partners Fund I K/S who has significant influence
DKK’000
2022
2021
Interest paid to Nordic Alpha Partners Fund I K/S
0
2,302
Amount owed to Nordic Alpha Partners Fund I K/S
0
0
Proceeds from conversion of loan
0
15,896
Proceeds from capital increase
0
35,000
Transactions with key management personnel of the entity
Key management personnel comprise the Board of Directors and the Executive Board and their related parties. Refer to
note 8 in terms of share-based payment to Board of Directors and the Executive Board.
2022 Annual Report | Re-Match | 72
29. Related parties (continued)
Transactions with joint ventures in which the entity is a joint venturer
DKK’000
2022
2021
Sales to Re-Match France
0
0
Purchase from Re-Match France
0
95
Interest received from Re-Match France
0
0
Amount owed by Re-Match France, convertible loan
6,554
6,554
Amount owed by Re-Match France, intercompany
322
0
Amount owed to Re-Match France
0
0
Capital increase during the year
7,450
0
30. Events after the reporting period
In the beginning of 2023, Re-Match continued the ramp up of the Dutch factory and have achieved some important
milestones. First of all, they have reached in excess of the target of 8 tons/hour during February 2023 which is
significantly ahead of plan. Also very positive is the quality of the materials coming out as it so far looks better than the
quality than the Herning factory.
Next step is to reduce the downtime and increase the shifts in order to achieve the monthly volume budgeted.
More importantly the company has conducted a thorough review of the company’s capital situation and investigated
the opportunities for raising further capital for both short-term and long-term needs.
After a competitive process run by AGB Sundal the Board of Directors decided that the best option was to recommend
a delisting of the company and attract the capital required to potentially accelerate the roll out of further factories.
The company therefore agreed a large transaction, raising up to DKK 235m of new equity from existing owners Nordic
Alpha Partners and new owner Verdane. This will enable Re-Match to become profitable and to build further factories
starting in 2023. Other than the events recognised or disclosed in the consolidated financial statement, no events have
occurred subsequent to 31
st
of December 2022 which could have significant impact on the consolidated financial
statements.
31. Special items
Special items consist of costs to external advisors and investment banks in relation to the initial public offering (IPO) on
23
rd
of December 2021, that in accordance with IAS 32, should be expenses.
Special items are recognised as “Other external expenses” in the income statement, if not presented on a separate line.
No special items have occurred in the financial year 2022.
2022 Annual Report | Re-Match | 73
Parent income statement
DKK
Note
2022
2021
Gross profit/loss
-14,170,519
-36,075,069
Staff costs
3
-29,451,542
-28,549,675
Depreciation. amortisation and impairment losses 4
-4,356,173
-4,157,682
Operating profit/loss
-47,978,234
-68,782,426
Share of profit in joint venture
352,888
0
Financial income
5
6,777,940
2,544,044
Financial expenses
6
-2,121,096
-11,042,359
Profit/loss before tax
-42,968,501
-77,280,741
Tax for the year
7
0
0
Profit/loss for the year
-42,968,501
-77,280,741
Proposed distribution of profit and loss:
Transferred to other statutory reserves
2,855,709
3,714,702
Retained earnings
-45,824,210
-80,995,443
Profit/loss for the year
-42,968,501
-77,280,741
2022 Annual Report | Re-Match | 74
Parent balance sheet
DKK
Note
2022
2021
Completed development projects
419,966
1,344,877
Development projects in progress
10,725,015
6,138,939
Patents
3,486,118
2,885,352
Software
1,744,050
2,218,269
Total intangible assets
8
16,375,149
12,587,437
Plant and machinery
21,187,839
22,683,077
Other fixtures and fittings, tools and equipment
448,476
1,035,401
Leasehold improvements
480,110
371,746
Total tangible assets
9
22,116,425
24,090,224
Investments in subsidiaries
10
429,959
429,959
Investments in joint ventures
9,292,888
0
Receivables from subsidiaries
67,865,118
18,074,590
Deferred tax assets
0
0
Deposits
1,351,840
2,053,454
Other financial assets
5,823,358
5,823,358
Total fixed asset investments
84,763,163
26,381,361
Total fixed assets
123,254,737
63,059,022
Finished goods and goods for resale
3,447,964
2,592,200
Inventory
3,447,964
2,592,200
Trade receivables
88,944
3,470,083
Other receivables
24,022,532
23,794,979
Prepayments
582,927
1,008,574
Total receivables
24,694,403
28,273,636
Cash
13,336,205
117,891,493
Total current assets
41,478,572
148,757,329
Total assets
164,733,309
211,816,351
2022 Annual Report | Re-Match | 75
Parent balance sheet
DKK
Note
31/12/22
31/12/21
Share capital
28,750,841
28,703,900
Reserve for development expenditure
8,693,085
5,837,376
Retained earnings
38,843,900
82,610,616
Total equity
76,287,826
117,151,892
Interest bearing debt
11
303,110
14,127,406
Deferred income
22,836,962
21,125,140
Provisions
2,150,000
3,565,721
Other payables
0
1,236,898
Total non-current liabilities
25,290,072
40,055,165
Interest bearing debt
11
16,087,955
5,120,892
Trade payables
11
3,160,052
12,674,302
Payables to subsidiaries
7,463,936
0
Other payables
11
7,335,735
14,939,824
Deferred income
29,107,733
21,874,276
Total current liabilities
63,155,411
54,609,294
Total liabilities
88,445,483
94,664,459
Total equity and liabilities
164,733,309
211,816,351
Unrecognised rental agreements and lease commitments 12
Mortgages and collateral
13
Subsequent events
14
Special Items
15
2022 Annual Report | Re-Match | 76
Statement of changes in equity
DKK
Share capital
Reserve for
development
costs
Retained
earnings
Total
Equity beginning of year, 2022
28,703,900
5,837,376
82,610,616
117,151,892
Capital increase
46,941
0
46,941
Gain on own shares
0
0
573,561
573,561
Share based payments
0
0
1,483,933
1,483,933
Net profit/loss for the year
0
2,855,709
-46,564,287
-43,708,578
Equity end of year
28,750,841
8,693,085
38,103,823
75,547,749
DKK
Share capital
Reserve for
development
costs
Retained
earnings
Total
Equity beginning of year, 2021
14,681,315
2,122,674
-38,184,833
-21,380,844
Capital increase
14,022,585
0
200,522,802
214,545,387
Costs relating to capital increase
0
0
-5,750,344
-5,750,344
Share based payments
0
0
7,018,434
7,018,434
Net profit/loss for the year
0
3,714,702
-80,995,443
-77,280,741
Equity end of year
28,703,900
5,837,376
82,610,616
117,151,892
DKK
Share capital
Reserve for
development
costs
Retained
earnings
Total
Equity beginning of year, 2020
14,393,561
931,203
16,789,137
32,113,901
Correction of errors
0
0
-16,287,913
-16,287,913
Restated total balance at beginning of
year, 2020
14,393,561
931,203
501,225
15,825,989
Capital increase
287,754
287,754
Share based payments
0
0
6,415,446
6,415,446
Net profit/loss for the year
0
1,191,471
-45,101,504
-43,910,033
Equity end of year
14,681,315
2,122,674
-38,184,833
-21,380,844
2022 Annual Report | Re-Match | 77
Notes
1. ACCOUNTING POLICIES
The Annual Report of Re-Match Holding A/S for 2022 has
been prepared in accordance with the provisions of the
Danish Financial Statements Act applying to reporting
class B enterprises as well as selected provisions as
regards larger entities.
BASIS OF RECOGNITION AND
MEASUREMENT
Income is recognised in the income statement as
earned, including value adjustments of financial assets
and liabilities. All expenses, including amortisation,
depreciation and impairment losses, are also
recognised in the income statement.
Assets are recognised in the balance sheet when it is
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 balance sheet when it is
probable that future economic benefits will flow from
the company and the value of the liability can be
measured reliably.
On initial recognition, assets and liabilities are measured
at cost. On subsequent recognition, assets and liabilities
are measured as described below for each individual
accounting item.
Certain financial assets and liabilities are measured at
amortised cost using the effective interest method.
Amortised cost is calculated as the historic cost less any
instalments and plus/less the accumulated amortisation
of the difference between the cost and the nominal
amount.
On recognition and measurement, allowance is made
for predictable losses and risks which occur before the
Annual Report is presented and which confirm or
invalidate matters existing at the balance sheet date.
CHANGES TO COMPARATIVE FIGURES
The 2021 comparative figures for deferred tax assets
and equity have been restated due to the identification
of incorrect accounting treatment of IAS 12. As the
Company and Group has a history of taxable losses,
IAS 12 Income Taxes requires that convincing evidence
is available to support Management's assessment that
sufficient taxable profits will be available in the future.
Even though the approved budget and business plan
both in prior periods and at 31 December 2022
reflects that the Company and Group will be generating
taxable profits in the foreseeable future, it is
Management's assessment that the recognition of the
deferred tax assets did not meet the strict criteria of
IAS 12 'convincing evidence', as the budget and
business plan are sensitive to the timing and level of
investments and similar factors.
Consequently, deferred tax assets as of 1
st
of January
2021 and 31
st
of December 2021 have been restated to
"nil" for the Company and the Group. The effects of the
changes to the comparative figures for 2020 and 2021
are:
Deferred
tax asset
Retained
Earnings
1
st
of January 2020
16,288
7,526
Correction of error
-16,288
-16,288
1
st
of January, restated
0
-8,762
31
st
of December 2020
0
-51,429
31
st
of December 2021
0
58,897
INCOME STATEMENT
Gross profit or loss
In pursuance of section 32 of the Danish Financial
Statements Act, the company does not disclose its
revenue.
Gross profit reflects an aggregation of revenue, changes
in inventories of finished goods, work in progress and
other operating income less costs of raw materials,
consumables, and other external expenses.
2022 Annual Report | Re-Match | 78
REVENUE
Revenue from the sale of goods for resale and finished
goods is recognised in the income statement, provided
that the transfer of risk, usually on delivery to the buyer,
has taken place and that the income can be measured
reliably and is expected to be received.
EXPENSES FOR RAW MATERIALS AND
CONSUMABLES
Expenses for raw materials and consumables include
the raw materials and consumables used in generating
the year's revenue.
OTHER OPERATING INCOME
Other operating income comprises items of a secondary
nature relative to the company's activities, including
gains on the sale of intangible assets and property, plant
and equipment.
GOVERNMENT GRANTS
Government grants relating to costs are deferred and
recognised in profit or loss over the period necessary to
match them with the costs that they are intended to
compensate. They are included in other operating
income.
OTHER OPERATING EXPENSES
Other operating expenses comprise items of a
secondary nature relative to the company's activities,
including losses on the sale of intangible assets and
property, plant and equipment.
OTHER EXTERNAL COSTS
Other external costs include expenses related to
distribution, sale, advertising, administration, premises,
bad debts, payments under operating leases, etc.
STAFF COSTS
Staff costs include wages and salaries, including
compensated absence and pensions, as well as other
social security contributions, etc. made to the entity's
employees. The item is net of refunds made by public
authorities. Management has chosen to recognize
share-based payments in accordance with IFRS 2.
AMORTISATION, DEPRECIATION AND
IMPAIRMENT LOSSES
Amortisation, depreciation and impairment losses
comprise the year's amortisation, depreciation and
impairment of intangible assets and property, plant and
equipment.
FINANCIAL INCOME AND EXPENSES
Financial income and expenses are recognised in the
income statement at the amounts relating to the
financial year. Net financials include interest income and
expenses, financial expenses relating to finance leases,
realised and unrealised capital/exchange gains and
losses on securities and foreign currency transactions,
amortisation of mortgage loans and surcharges and
allowances under the advance-payment-of- tax scheme,
etc.
TAX ON PROFIT/LOSS FOR THE YEAR
Tax for the year, which comprises the current tax charge
for the year and changes in the deferred tax charge, is
recognised in the income statement as regards the
portion that relates to the profit/loss for the year and
directly in equity as regards the portion that relates to
entries directly in equity.
BALANCE SHEET
INTANGIBLE ASSETS
Developments projects recognised in the balance sheet
are measured at cost less accumulated amortisation
and impairment losses.
Following the completion of the development work,
development costs are amortised on a straight-line
basis over the estimated useful life. The amortisation
period is usually five years.
TANGIBLE ASSETS
Plant and machinery and fixtures and fittings, tools and
equipment are measured at cost less accumulated
depreciation and impairment losses.
The depreciable amount is cost less the expected
residual value at the end of the useful life.
Cost comprises the purchase price and any costs
directly attributable to the acquisition until the date
when the asset is available for use. The cost of self-
constructed assets com- prises direct and indirect costs
of materials, components, sub-suppliers and wages.
Straight-line depreciation is provided on the basis of the
following estimated useful lives of the assets:
- Plant and machinery: 3-25 years
- Other fixtures and fittings,
tools and equipment: 3-5 years
- Leasehold improvements: 3-10 years
LEASES
All leases are operating leases. Payments relating to
operating leases are recognised in the income
statement over the term of the lease. The company's
total liabilities relating to operating leases and other
rent agreements are disclosed under 'Contingencies,
etc.'
2022 Annual Report | Re-Match | 79
INVESTMENTS IN SUBSIDIARIES
Investment in subsidiaries is measured at cost. If cost
exceeds the recoverable amount, a write-down is made
to this lower value.
STOCKS
Stocks are measured at cost using the FIFO method.
Where the net realisable value is lower than the cost,
inventories are recognised at this lower value.
The cost of goods for resale, raw materials and
consumables comprises the purchase price plus
delivery costs.
The cost of finished goods and work in progress
includes the cost of raw materials, consumables, direct
cost of labour and production/production overheads.
The net realisable value of stocks is calculated as the
selling price less costs of completion and expenses
incurred to effect the sale. The net realisable value is
determined taking into account marketability,
obsolescence and expected selling price movements.
RECEIVABLES
Receivables are measured at amortised cost.
PREPAYMENTS
Prepayments recognised under ‘Current assets’
comprise expenses incurred concerning
subsequent financial years.
INCOME TAX AND DEFERRED TAX
Current tax liabilities and current tax receivables are
recognised in the balance sheet as the estimated tax on
the taxable income for the year, adjusted for tax on the
taxable income for previous years and tax paid on
account.
Deferred tax is measured according to the liability
method in respect of temporary differences between
the carrying amount of assets and liabilities and their tax
base, calculated on the basis of the planned use of the
asset and settlement of the liability, respectively.
LIABILITIES
Financial liabilities are recognised on the raising of the
loan at the proceeds received net of transaction costs
incurred. On subsequent recognition, the financial
liabilities are measured at amortised cost,
corresponding to the capitalised value, using the
effective interest method.
Accordingly, the difference between the proceeds and
the nominal value is recognised in the income statement
over the term of the loan.
Other liabilities, which include trade payables, payables
to group entities and other payables, are measured at
amortised cost, which is usually equivalent to nominal
value.
DEFERRED INCOME
Deferred income recognised under ‘Current liabilities’
comprises payments received concerning income in
subsequent financial years.
FOREIGN CURRENCY TRANSLATION
On initial recognition, foreign currency transactions are
translated applying the exchange rate at the transaction
date.
Foreign exchange differences arising between the
exchange rates at the transaction date and at the date
of payment are recognised in the income statement as
financial income or financial expenses. If foreign
currency transactions are considered cash flow hedges,
the value adjustments are taken directly to equity.
Receivables and payables and other monetary items
denominated in foreign currencies are translated at the
exchange rates at the balance sheet date. The
difference between the exchange rates at the balance
sheet date and the date at which the receivable or
payable arose or was recognised in the latest Financial
Statements is recognised in the income statement as
financial income or financial expenses.
2. GOVERNMENT GRANTS
The Group has also received government grants relating
to the development of a production site in Tiel, the
Netherlands, in 2022 to the amount of DKK 20,021t
(previous years: 14,580t). There are no unfulfilled
conditions or other contingencies attaching to these
grants. The group did not benefit directly from any other
form of government assistance.
During the year 868t have been recognised in other
operating income (2021: DKK 575t).
.
2022 Annual Report | Re-Match | 80
3. Staff costs
DKK
2022
2021
Wages and salaries
27,917,586
25,877,280
Share based payments
1,483,933
7,018,434
Pensions
3,023,451
1,270,267
Other social security costs
465,189
323,520
Other staff costs
148,372
48,177
Total
33,038,531
34,537,678
Transfer to development costs
-3,586,989
-5,988,003
Total
29,451,542
28,549,675
Average numbers of employees at balance sheet date
41
34
Please refer to the disclosure in note 6 in the Consolidated Financial Statement for management remuneration.
4. Depreciation, amortisation and impairment losses
DKK
2022
2021
Amortisation of intangible assets
2,250,323
2,011,192
Depreciation of property, plant and equipment
2,105,850
2,146,490
Total
4,356,173
4,157,682
2022 Annual Report | Re-Match | 81
5. Other financial income
DKK
2022
2021
Interest income intercompany
3,173,298
1,178,945
Other financial income
1,490,000
0
Foreign exchange gains
2,114,642
1,365,099
Total
6,777,940
2,544,044
6. Other financial expenses
DKK
2022
2021
Foreign exchange losses and other adjustments
-1,587,595
-1,626,857
Other interest expenses
-533,501
-9,415,502
Total
-2,121,096
-11,042,359
7. Tax on profit/loss for the year
DKK
2022
2021
Current tax for the year
0
0
Deferred tax for the year
0
0
Total
0
0
2022 Annual Report | Re-Match | 82
8. Intangible assets
DKK
Completed
development
projects
Development
projects in
progress
Patents
Software
Total
2022
Cost at 1
st
of January
7,011,969
6,138,939
3,510,406
2,723,891
19,385,205
Additions
0
4,586,076
1,368,959
83,000
6,038,035
Cost at 31
st
of December
7,011,969
10,725,015
4,879,365
2,806,891
25,423,240
Amortisation and impairment
at 1
st
of January
5,667,092
0
625,054
505,622
6,797,768
Amortisation during the year
924,911
0
768,193
557,219
2,250,323
Amortisation and impairment
at 31
st
of December
6,592,003
0
1,393,247
1,062,841
9,048,091
Carrying amount at
31
st
of December
419,966
10,725,015
3,486,118
1,744,050
16,375,149
Please refer to the description in note 13 to the Consolidated Financial Statement. Completed development projects
relate to the development of plastic-upcycling. Management has an expectation of positive earnings from the project.
9. Property, plant and equipment
DKK
Plant and
machinery
Other
fixtures and
fittings,
tools and
equipment
Leasehold
improve-
ments
Total
2022
Cost at 1
st
of January
30,404,288
1,962,038
1,358,332
33,724,658
Additions
118,440
0
246,687
365,127
Disposals
0
-699,894
0
-699,894
Cost at 31
st
of December
30,522,728
1,262,144
1,605,019
33,389,891
Depreciation at 1
st
of January
7,721,211
926,637
986,586
9,634,434
Reversed depreciation
0
-466,818
0
-466,818
Depreciation during the year
1,613,678
353,849
138,323
2,105,850
Depreciation at 31
st
of December
9,334,889
813,668
1,124,909
11,273,466
Carrying amount at 31
st
of December
21,187,839
448,476
480,110
22,116,425
2022 Annual Report | Re-Match | 83
10. Financial assets
DKK
2022
2021
Investments in subsidiaries
Cost at 1
st
of January
429,959
429,959
Additions
0
0
Cost at 31
st
of December
429,959
429,959
11. Interest bearing-debt
DKK
Debt at 1
st
January
Debt at 31
st
December
Due within 12
months
Due after more
than 5 years
2022
Interest bearing-debt
19,248,298
16,391,065
16,087,955
303,110
Trade and other payables
28,851,024
10,495,787
10,495,787
0
Total
48,099,322
26,886,852
26,583,742
303,110
12. Unrecognised rental and lease commitments
DKK
2022
2021
Operating lease liabilities. Total future lease payments:
Within 1 year
216,477
126,076
Between 1 and 5 years
231,630
114,881
Total
448,107
240,957
2022 Annual Report | Re-Match | 84
13. Mortgages and collateral
As security for debt to other credit institutions and other debt, totalling DKK 19,500t the Company has been granted a
company charge of which the carrying amount accounts for DKK 6,260t of December 2022.
Re-Match Holding A/S have provided a limited guarantee of EUR 1m related to Re-Match NL.
The Parent participates in a Danish joint taxation arrangement where Re-Match Holding A/S serves as the
administration company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Parent is
therefore liable to income taxes etc. for the jointly taxed entities, and for obligations, if any, relating to the withholding
of tax on interest, royalties and dividend for the jointly taxed entities. The jointly taxed entities’ total known net liabil ity
under the joint taxation arrangement is disclosed in the administration company’s Financial Statements.
14. Subsequent events
Refer to the consolidated annual report - note 30.
15. Special Items
Refer to the consolidated annual report - note 31.
