2022 Annual Report | Re-Match |0
2023
Annual
Report
CVR nr.: 3 546 552 9
01.01.2023 – 31.12.2023
Conductor
_________________________________
Full name
2023 Annual Report | Re-Match | 1
Content
CEO LETTER 2
RE-MATCH AT A GLANCE 4
Revenue 5
Key Figures & KPIs 6
OUTLOOK 2024 8
ENVIRONMENT 9
SOCIAL 11
GOVERNANCE 13
BOARD OF DIRECTORS 15
EXECUTIVE MANAGEMENT 16
FINANCIAL REVIEW 17
Statement by Management 18
Independent auditor’s report 19
Financial statements 22
NOTES 28
2023 Annual Report | Re-Match | 2
CEO letter
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.
The business model is to collect worn-out artificial
sports pitches, retrieving a gate fee, followed by a
patented mechanical separation process, after
which it is possible to sell and distribute fibres,
sand, and rubber individually.
2023 turned out to be a year of substantial strategic
improvements for Re-Match; the new factory in Tiel,
Netherlands, started operations early in the year, the
ownership structure was strengthened significantly,
the building of the third factory in Erstein, France has
made impressive progress and started up
production as expected in Q1 2024. Furthermore,
we had a major breakthrough with the “yarn-to-yarn”
project. As the first turf recycler ever, we have
developed a proprietary process that successfully
converts plastic fibres into a resin that fully meets
the demands of high-quality turf yarns. It is an
industry-leading innovation that brings the upcycled
content in new turf yarns to an unprecedented level
of 50%.
Patents are pending to protect this new, important
innovation.
The investments needed to succeed with new
factories and product development throughout
2023 have naturally been quite substantial
considering the size of the Re-Match business. This
has only been possible to follow through with
dedication and hard work from all employees and
with a strong back-up from the owners.
The business has shown a steep increase in activities
since the beginning of Q2 2023 - with more to come
in 2024 with improved performances from both the
Danish and Dutch factories and adding to that the
upcoming business of Re-Match France.
The financial performance has been limited by the
high levels of front-end stock that Re-Match entered
the fiscal year with both in Denmark and the
Netherlands. The stock levels have limited the
capacity to operate at full, normal activity during the
season, and thus reduced the budgeted revenue
significantly. On the positive side Re-Match has, with
a strong focus on the back-end products, during the
year been able to qualify these products at many
new customers both within the artificial turf
business as well as major industrial consumers of
rubber, sand and polymer granules, and in this way
been able to substantiate the commercial basis for
the business going forward.
Going in to 2023 the expectations to selling large
quantities of plastic fibres for acoustic panels were
quite high. Unfortunately, through the year these
expectations were never met as the market changed
notable, opening up the European market for
imports of, apparently, substituting products from
Asia.
TIEL FACTORY
The year of 2023 has been a ramp-up year for the
new blue-print factory in Tiel. Following an initial,
successful ramp-up, we began to experience
setbacks due to difficulties of recruiting employees
and challenges in getting the downtime reduced as
planned.
2023 Annual Report | Re-Match | 3
However, during Autumn the factory passed the first
milestone of hitting a throughput, that under
normalized conditions, generated a cash-positive
result in 3 consecutive months. During the last part
of 2023, the factory has had planned downtime due
to intentional maintenance and implementation of
additional important machinery that was not part of
the main machinery deliveries. The quality of the
products produced has since the beginning showed
a very high and consistent quality.
HERNING FACTORY
As planned, the production in Herning was resumed
in April 2023, after a production shut-down during
the Winter months, and as planned with higher
production volumes as a result of the improvements
performed during the shut-down. However, due to
the shut-down Re-Match was not able to take in the
normal amount of worn-out artificial turf pitches in
2023, this resulting in a much lower revenue hence
the reduced market activity.
OTHER FACTORIES
In the French Joint Venture, the organisation is now
commissioning all the machinery following an
installation period going exactly as planned.
Throughout the year, Eric Levresse (CEO of Re-Match
France) and his team have onboarded key
employees and prepared 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 was recycled
in Q1 2024.
In US, a site for the first Re-Match factory outside
Europe was secured in 2022. By the end of 2023
Re-Match US Inc. received all relevant permits and
expects to start construction of the new factory in
2024/2025. This factory will be designed and
constructed based on the blue-print for Re-Match
factories with the learnings from the factories in Tiel
and Erstein incorporated.
2023 Annual Report | Re-Match | 4
Re-Match at a glance
IFRS Revenue
DKK’000
2023
2022
Change
Front-end
19,732
11,074
78.2%
Back-end
14,958
4,316
246.6%
Other
17,843
12,211
46.1%
Total
52,533
27,601
90.3%
Key figures and KPIs
DKK’000
2023
2022
2021
2020
Revenue (DKKm)
52.5
27.6
28.6
28.5
Deferred revenue
-6.0
9.7
2.5
14.0
Adjusted revenue
46.5
37.3
31.1
42.5
Adjusted revenue incl. Joint venture
60.4
51.1
43.1
44.4
Adjusted revenue incl. Re-Match
part of Joint venture
68.7
45.6
35.9
43.3
Balance sheet total
371.0
360.4
253.2
133.9
Tangible assets
96.7
86.7
64.6
68.9
Equity
-27,6
10.5
113.5
-10.2
Input inventory
(full-size soccer pitches at 220 tonnes)
252
317
145
175
Turf processed
(full-size soccer pitches at 220 tonnes)
182
88
118
96
CO2 saved compared to incineration (tonnes)
43,438
27,249
37,917
29,580
FTE’s
73
55
38
34
2023 Annual Report | Re-Match | 5
REVENUE
The revenue for 2023 increased significantly to DKK
52,533t from DKK 27,601t in 2022. This is in line with
the previously communicated revenue
expectations for 2023. Despite the temporary,
partial production shutdown and the full pitch
storages, Re-Match managed to grow the revenue
significantly compared to last year.
For front-end, the revenue grew from DKK 11,074t
in 2022 to DKK 19,732t in 2023 corresponding to
78% growth. The increase is caused by the addition
of the Dutch business activities.
Back-end revenue in 2023 grew to DKK 14,958t
from DKK 4,316t in 2022 corresponding to a growth
of 246%. The growth in back-end revenue is related
to revenue from the Tiel factory and as mentioned
the sales team’s overall focus on increasing the
back-end sales. Other revenue (transport, roll-up,
etc.) increased from DKK 12,211t in 2022 to DKK
17,843t in 2023 corresponding to an increase of
46%.
Other revenue is a service for the customers, not a
core revenue stream for Re-Match and has a very
low margin.
2023 Annual Report | Re-Match | 6
Key figures & KPIs
Consolidated statement of profit and loss and other comprehensive income
DKK’000
2023
2022
Revenue
52,533
27,601
Cost of sales
-37,414
-29,950
Gross profit/loss
15,119
-2,349
Other external expenses
-24,466
-31,583
Special items
-12,762
0
Staff costs
-43,194
-38,207
Other operating income
9
868
Depreciation, amortisation and impairment losses
-18,558
-12,384
Operating profit/loss
-83,852
-83,655
Share of profit of a joint venture
-923
353
Financial income
7,579
8,308
Financial expenses
-24,850
-13,353
Profit/loss before tax
-102,046
-88,348
Tax for the year
0
0
Profit/loss for the year
-102,046
-88,348
2023 Annual Report | Re-Match | 7
Adjusted consolidated statement of profit and loss
DKK’000
2023
Non-recuring
costs
Net 2023
Revenue
52,533
0
52,533
Cost of sales
-37,414
0
-37,414
Gross profit/loss
15,119
0
15,119
Other external expenses
-24,466
0
-24,466
Special items
-12,762
12,762
0
Staff costs
-43,194
0
-43,194
Other operating income
9
0
9
Depreciation, amortisation and impairment
losses
-18,558
0
-18,558
Operating profit/loss
-83,852
12,762
-71,090
CONSOLIDATED AND ADJUSTED
FINANCIAL STATEMENT OF PROFIT AND
LOSS
Adding all the positives and negatives the result was
a loss of DKK 102,046t. This is heavily influenced by
costs associated with non-recurring items from the
transaction with Verdane and the delisting from the
Copenhagen NASDAQ stock exchange (Nasdaq
First North Growth Market). By eliminating these
special items, the Operating loss is DKK 71,090t. The
result is slightly lower, but in line with the operating
loss in 2022 of DKK 83,655t.
The delays in ramping-up the Tiel capacity, the
continued investments in the French factory and
the plans to build the first factory in the US, together
with the standstill cost of the Danish factory, were
the main drivers of the negative result.
In 2023, other external expenses increased from
DKK 22,515t to DKK 24,466t after non-recurring
expenses.
During 2023 costs have increased mainly due to
activities associated with ramp-up of the factory in
Tiel, along with preparations and building of the
new factory in Erstein. The new factory in Tiel has
since the beginning of 2023 been fully operational
which naturally have impacted the Group’s
expenses.
Staff costs increased considerably due to the
increasing number of employees in Tiel, and due to
organizational professionalisation in Herning.
In 2023, Re-Match had DKK 12.8m in non-recurring
costs which included advisory costs related to the
delisting from the NASDAQ stock exchange as well
as costs related to capital investments from new
and prior owners.
2023 Annual Report | Re-Match | 8
Outlook 2024
Re-Match expects that 2024 will bring significant
improvements to the financial and operational
performance as the ramp-up of production at the
Tiel factory progresses and the Herning factory will
continue its progress. Improved prices on both
front- and back-end materials will also contribute
positively, as will the newly market-introduced
granules from recycled plastic fibres for the
yarn-to-yarn applications as well as other
important applications in the market.
The Tiel factory will continue to produce
progressively 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 2024, while costs will
not increase proportionally. It is expected that the
Tiel factory will reach cashflow positive during 2024.
For the Herning factory, it is expected that the
financial performance will continue to improve in
2024 on a month-by-month basis as well. Combined
with the current trend of increasing prices and
commercial agreements, it is expected that the
Herning factory will operate on a level that will
ensure a positive gross profit as the revenue from
the front-end activities are expected to grow
substantially this year.
As these lines are being written the very first rolls of
artificial turf pitches are processed in the new factory
in Erstein, fully on-track with the planned timeline.
A lengthy ramp-up phase lies ahead where all of the
learnings made from the factory in Tiel has been
incorporated in order to secure an efficient
ramp-up.
Looking a bit further into the horizon, the next
factory after the French factory will be built in the US.
The first factory in the US is planned to be built in
Pennsylvania, where a site was secured during 2022.
During 2023 Re-Match has secured the permits
needed and after paying the needed deposit to The
Pennsylvania Department of Environmental
Protection (DEP) the first pitches from an external
storage have been transferred to our facility.
Preparations are made to initiate the construction
process late 2024 or early 2025. Before initiating the
construction of the factory and finalizing the design
of the machinery, we will ensure that the learnings
from the initial ramp-up in Erstein are incorporated
into the design and ramp-up plan of the first US
factory.
2023 Annual Report | Re-Match | 9
Environment
As a recycler, the maximisation of the commercial
value of materials and sales volume are the most
crucial factors for the environmental performance of
our business.
In 2023 we recycled the equivalent of 197 (2022: 88)
standard pitches, equivalent to avoiding carbon
emissions by approximately 43,438t (2022: 27,250t)
compared to incineration.
CARBON EMISSIONS AVOIDED
2022
2023
Change
Compared to landfilling
tonnes CO
2
e
4,644
11,143
140.2%
Compared to incineration
tonnes CO
2
e
27,249
43,438
59.4%
The table shows the carbon emissions avoided by the recycling of artificial turf at the Danish factory in 2022 and 2023 compared to
landfilling and incineration
1
.
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 blue-print for subsequent
factories, such as France and US, 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 tonne of turf processed while the
back-end material will be of a higher purity and
thereby improving the commercial value of our
products.
OPERATIONS
Not only do we support the sustainability agenda
through our business model, but we also strive to
apply solid ESG principles to minimize the footprint
of our operations.
1
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.
Below you can read the steps we have taken
already, 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 tonne of
production thanks to advanced production
technology.
SOLAR PANELS
In 2023 we installed solar panels on the roof of the
Dutch factory and solar panels has also been
installed on the French factory in the beginning of
2024. These are expected to deliver at least 15% of
the electricity consumption need of the factories.
There are currently no plans to add solar panels to
the Danish factory.
2023 Annual Report | Re-Match | 10
HEAT RECOVERY
In all of our factories, we recover heat from the
dryer and circulate it back into the dryer, thereby
improving the overall energy efficiency.
PRODUCT DOCUMENTATION
Since 2021, we have provided product traceability
back to the original pitch material and assessed 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.
On 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 that our customers are confident in
the quality of our operations, we have secured
third-party certifications within key aspects of our
process according to leading international
standards.
As of 2023, our Danish company has achieved the
following certifications:
• ISO 9001 Quality Management: the
operation of a management system to
deliver the right quality end-products that
meets our customers’ needs
• 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 the factory in the Netherlands achieved the
EuCertPlast certification. We plan to secure ISO
9001, ISO 14001, and the BRL certification of our
operations in the Netherlands during 2024. Our new
factory in France will follow suit in late 2024 or early
2025.
We are also working on a 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, hence it will be years before a
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 manage and document our work with quality and
environmental management, 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. The system
has been fully implemented in Denmark and the
Netherlands. For the France operation the system is
under implementation.
2023 Annual Report | Re-Match | 11
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Board of Directors
NOTE
During Q2 2023, Erik Osmundsen and Eline Stokstad Fjell entered the Board of Directors. Both Erik and Eline
are representatives from one of our owners, Verdane. In September 2023 Henrik Grand Petersen
(Chairperson since 2022) chose to resign from his position and to leave the board. We are currently in process
of finding a new Chairperson.
In Q1 2024, Eline Stokstad Fjell decided to leave the Board. Instead two members were elected at the
Extraordinary General Meeting on the 12
th
of March 2024. The two new members are Ali Arda Ersöz,
representative from Verdane and Anders Wilhjelm, independent member.
2023 Annual Report | Re-Match | 16
Executive Management
NOTE
In June 2023, Nikolaj Magne Larsen, resigned from his position as CEO in Re-Match. At the same time,
Christian took over the position as CEO. Today, Nikolaj, is a part of the Leadership Team in Re-Match and
focusses his efforts on funding and expansion 2023.
2023 Annual Report | Re-Match | 17
Our factory in Tiel, Netherlands
Financial
Review
2023 Annual Report | Re-Match | 18
Statement by Management
of June 2024
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
2023 Annual Report | Re-Match | 19
Independent auditor’s report
2023 Annual Report | Re-Match | 20
2023 Annual Report | Re-Match | 21
CVR No 33 77 12 31
of June 2024
2023 Annual Report | Re-Match | 22
Financial statements
Consolidated statement of profit or loss and other comprehensive income
DKK’000
Note
2023
2022
Revenue
5
Cost of sales
-37,414
-29,950
Gross profit/loss
-2,349
Other external expenses
-24,466
-31,583
Special items
31
-12,762
Staff costs
6
-43,194
-38,207
Other operating income
Depreciation. amortisation and impairment losses
9
-18,558
-12,384
Operating profit/loss
-83,852
-83,655
Share of profit of a joint venture
17
-923
Financial income
10
Financial expenses
11
-24,850
-13,353
Profit/loss before tax
-102,046
-88,348
Tax for the year
12
Profit/loss for the year
-102,046
-88,348
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
Other comprehensive income for the year, net of tax
-467
Total comprehensive income for the year
-112,421
-88,815
Earnings per share (DKK)
23
-2.79
-3.07
Earnings per share. diluted (DKK)
23
-2.79
-3.07
2023 Annual Report | Re-Match | 23
Consolidated Financial Statements
Consolidated statement of financial position
DKK’000
Note
31-12-23
31-12-22
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
2023 Annual Report | Re-Match | 24
Consolidated Financial Statements
Consolidated statement of financial position
DKK’000
Note
31-12-23
31-12-22
Share capital
23
Retained earnings
-64,401
-28,877
Translation reserve
-365
Other capital reserve
25
Total equity
-27,599
Interest bearing liabilities
24
Lease liabilities
15
Provisions
Contract liabilities
5
Total non-current liabilities
Interest bearing liabilities
24
Lease liabilities
15
Intercompany liabilities
Government grants
7
Trade payables
Other payables
Contract liabilities
5
Total current liabilities
Total liabilities
Total equity and liabilities
2023 Annual Report | Re-Match | 25
Consolidated Financial Statements
Consolidated statement of changes in equity
DKK’000
Share capital
Retained
earnings
Translation
reserve
Other capital
reserve
Total
2023
Balance on 1
st
of January
-28,877
-365
Net profit/loss for the period
-102,046
-102,046
Other comprehensive income
Total comprehensive income
-102,046
-101,443
Capital increase
Gain on own shares
Share based payments
-10,978
-10,978
Balance on 31
st
of December
-64,401
-27,599
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
Cost relating to capital increase
Share based payments
Balance on 31
st
of December
-28,877
-365
2023 Annual Report | Re-Match | 26
Consolidated Financial Statements
Consolidated statement of changes in equity (continued)
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
2023 Annual Report | Re-Match | 27
Consolidated Financial Statements
Cash flow statement
DKK’000
Note
2023
2022
Operating loss
-94,830
-83,655
Depreciation. amortisation and impairment
losses
9
Change in working capital
22
-8,452
Share-based payment expense
8
Income taxes received/paid
Interest paid
-17,271
-1,690
Cash flow from operating activities
-101,995
-62,462
Investments in intangible assets
13
-9,615
-5,693
Investments in tangible assets
14
-15,114
-65,042
Change in deposits
16
-1,115
Capital increase, joint venture
-7,450
Receipt of government grants
Cash flow from investing activities
-17,272
-58,646
Proceeds from borrowings
24
Proceeds from intercompany borrowings
Repayment of borrowings
24
-12,299
-4,310
Capital increase
Paid amount, exercised warrants
Payment of principal portion of lease liabilities
15
-7,309
-13,167
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
2023 Annual Report | Re-Match | 28
Notes
2023 Annual Report | Re-Match | 29
0. Going concern assumptions
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, in to clean and separated end
products that can replace virgin products in the
installation of new pitches.
Re-Match steps in to ensure that the valuable turf
material is 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 in to 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.
In 2020 the equivalent to about 14,000 artificial soccer
pitches globally were worn out and needed replacement.
What differentiates the turf recycling market from most
others is the predictability of its size and development.
The reason is that pitches installed 10 years ago reach
the end of their lifespan and will soon be up for
replacement and recycling, hence there is a 10-year
outlook on the market.
A factory blue-print has been developed which, with only
minor tweaks, will be able to be replicated anywhere in
the world – thereby, providing significant support
towards the long-term goal of running factories globally.
This goal is expressed in a vision and a strategic
international roll-out plan, which has been the basis for
the Management to talk to investors, the basis of the
current shareholders investment, and support to the
company.
In 2023 Re-Match executed on the strategic plans and
continued to expand its presence where artificial turf
pitches need to be recycled. After having built the first
blue-print factory in the Netherlands (the 2
nd
plant of the
Group) on time and on budget, in the first part of 2023,
the production and the sales has been ramped-up.
In the first year (2023) the Dutch factory recycled 23,000
tonnes of artificial turf. The target for 2024 is 47,000
tonnes, off which we as per today are on-track for. In
2025 we will reach full capacity of 60,000 tonnes, which
is important in order to fulfil the positive cash-flow
expectations in the company.
In Winter 2023 Re-Match qualified for a 2
nd
conditional
investment tranche of EUR 6,4m from the main
shareholders. This was conditioned by reaching a
normalized EBITDA level in the new factory, which was
met in October 2023.
Despite meeting the conditioned tranche investment, we
saw that the ramp-up period in 2023 turned out to be
longer and more expensive than budgeted. On this basis,
an additional equity capital of EUR 5,2m was injected by
the main shareholders in Autumn 2023. This was done
even before the qualification for the 2nd tranche, which
showed commitment from the shareholders towards
Management, market and potential.
One of the major market related milestones was met in
Q1 2024. We finally succeeded in producing yarn for new
pitches based on the processed pitches we had picked
up. The so-called yarn-to-yarn concept. This was a major
milestone to meet, as it created potential in the market,
by making it possible to reduce the volume of virgin
plastics used for production of new yarns.
In March 2024 Re-Match opened its 3
rd
plant in
cooperation with local JV-partners in the JV-company Re-
Match France.
The project of building this factory south of Strasbourg
was again executed on time and on budget, despite the
European-wide drastic inflationary increases on building
materials and machinery components in 2022 and 2023.
Production is on target to reach the budgeted
production of 23,000 tonnes the first year before going
beyond 50,000 tonnes in 2025. Sales is currently under
ramp-up and meets the budget as well for 2024.
The Re-Match Holding main shareholders have in Spring
2024 backed the Re-Match France JV with funding of a
EUR 900,000 shareholder loan issued from Re-Match
Holding. These funds are taken from above mentioned
injections into Re-Match Holding.
2023 Annual Report | Re-Match | 30
As the season of de-installing worn-out pitches was
seriously delayed due to the winter/early spring weather
conditions in Spring 2024, Management had to look for
financial support. This was supported by the main
investors in H1 2024 with EUR 2m to make sure Re-Match
could keep focus on the continued development of the
business.
For the fiscal year of 2024 the budget is targeting an
EBITDA of EUR -4,6m being a significant improvement
compared to the 2023 EBITDA of EUR -13m. The 2024
budget incorporates an unlevered cash-flow of EUR -9m
which has been analysed thoroughly with the main
shareholders as part of the budget planning for 2024 and
the years to come. In 2025 the EBITDA will already
become positive with EUR 0,9m, meaning that the
company will be on track with positive earnings and an
unlevered close to cash neutral cash flow of EUR -0,3m.
The 2024 negative cash flow is part of the overall ramp-
up plan and therefore expected.
2025 is the first year where the factory in the
Netherlands will run at full capacity throughout the year
and therefore generate a positive EBITDA. The high
capacity of the factory, the quality of incoming pitches,
and the increasing revenue growth from selling the
produced materials are the main drivers of the earnings
on each site. After a ramp-up year in 2024, we have all 3
factors in much more control, which takes away the
biggest sensitivity in the budget.
Markets are more predictable for new pitches coming in
and produced material i) sold back to new pitches, as it
is statistically known how many pitches need to be
renewed every year, and ii) sold in increasing volumes to
the industrial customers that we are already dealing with
and who already consumes similar materials.
Part of this cooperation includes searching for syndicate
investors for a coming expansion in US, where the plan
is to establish a number of plants in the coming years.
These will be based on the blue-print, which was proven
by the conditional tranche payment in 2023.
As the above reflects, Management continuously
monitors the development of the company, the future
expansion plans as well as the necessary funding. This is
carefully evaluated with the Board of Directors and the
main investor in the parent company. Based on the
on-going dialogue with this investor, it is Management’s
assessment that there is a clear intention from their side
to support the execution of the strategic plans and
funding hereof.
On 31 December 2023, the Company had a negative
equity of DKK 27,599 and the Company’s short-term debt
of DKK 167,293t significantly exceeds the Company’s
current assets of DKK 53,518, indicating significant doubt
related to the Company’s ability to continue operations.
Based on i) the close dialogues with the Board and
investors about strategy and budgets, and ii) the
historical proof of financial support from the investors, it
is the Management’s continued belief, that the current
investors show the required financial support for the
coming year, and it is the assessment of the Management
that a commitment will be received to support the need
of liquidity, and therefore the annual report has been
prepared assuming the company's continued operations
and as going concern.
Despite this, a material uncertainty exists that may cast
significant doubt on the company’s ability to continue as
a going concern as commitments for refinancing of
operating activities have not yet been obtained as of the
date of the annual report.
2023 Annual Report | Re-Match | 31
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% (2022: 60%) 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.
2023 Annual Report | Re-Match | 32
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.
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
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 pitches (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.
2023 Annual Report | Re-Match | 33
Other
Other revenue types are roll-up and transportation.
Rollup is a service where old pitches are cut up to be
removed.
Transport can be both transport of old pitches 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.
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, and delisting costs.
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
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.
2023 Annual Report | Re-Match | 34
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
- 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
2023 Annual Report | Re-Match | 35
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.
− 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.
2023 Annual Report | Re-Match | 36
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 it’s carrying value, and then recognises the
loss within ‘Share of profit of a joint venture’ in the
statement of profit or loss. Upon 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
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.
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.
2023 Annual Report | Re-Match | 37
TRADE RECEIVABLES (continued)
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.
2023 Annual Report | Re-Match | 38
2. Assumptions for recognition
and measurement
The Group and the parent company have recognised
non-current assets at a total value of DKK 317,508t and
non-current contract liabilities DKK 21,127t.
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 tonnes 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 2023 to build 4 new
factories in the coming years in the US. The factory in the
Netherlands started at the beginning of 2023 and has
run with increasing efficiency throughout the year. The
factory in France was at the end of the year in
construction phase and has in the beginning of 2024
started production. 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.
An increased focus on ESG measures is expected to
positively influence the demand for our back-end
products compared to virgin material – even with
possibilities of higher prices compared to virgin.
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.
Management also 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
for future factories.
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.
2023 Annual Report | Re-Match | 39
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.
2023 Annual Report | Re-Match | 40
4. Business areas
For management purposes and based on internal
reporting information, the Group originates its
revenue from three reportable business areas,
namely:
− The Front-end, including revenues originating
from sales of recycling artificial turf.
− The Back-end, including revenue originating
from the sales of raw materials (e.g., sand,
fibre, etc.).
− A business area 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 business area for the purpose
of performance assessment. Business area
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 business areas, and therefore no
further information is disclosed. For the split of
revenue per business area, please refer to note 5.
2023 Annual Report | Re-Match | 41
5. Revenue
From external customers
DKK’000
2023
2022
Front end
19,732
11,074
Back end
14,958
4,317
Other (Transport, roll-up revenue etc)
17,843
12,211
Total
52,533
27,601
Geographical markets
DKK’000
2023
2022
Denmark (Nordics)
9,512
2,947
Norway (Nordics)
6,781
12,781
Sweden (Nordics)
7,266
3,975
Nordics, rest
580
271
Netherland (Benelux)
13,417
4,107
Belgium (Benelux)
1,517
582
DACH
811
22
USA
6,114
431
Rest of Europe & UK
6,535
2,485
Total
52,533
27,601
Contract liabilities
DKK’000
2023
2022
Cost at 1
st
of January
38,800
29,062
Recognised during the year
-19,657
-9,996
Additions
13,677
19,735
Cost at 31
st
of December
32,820
38,800
Management expects that approximately DKK 11,7m (2022: DKK 9,7m) will be recognised as revenue during the next
reporting period and. approximately 21,1m (2022: DKK 29,1m) will be recognised in the following years.
2023 Annual Report | Re-Match | 42
6. Staff costs
DKK’000
2023
2022
Salaries
48,902
35,212
Share-based payments
-10,978
1,484
Pensions
7,068
3,612
Other social security costs
425
1,214
Transferred to development costs
-3,114
-3,587
Other staff costs
891
272
Total
43,194
38,207
Average numbers of employees during the year
73
55
Board of Directors and Key Management Personnel
DKK’000
2023
Remune-
ration
Pension
Share-Based
Payments
Total
Board of Directors
412
0
0
412
Key Management Personnel
1,674
203
0
1,877
Total
2,086
203
0
2,289
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
Members of the Board of Directors have received remuneration for work other than work in the Board. In 2023 this
amounts to remuneration of DKK 0t (2022: DKK 300t).
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.
2023 Annual Report | Re-Match | 43
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 2023 to the amount of DKK 30,097t (previous years:
20,021t). 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 2,078t have been recognised in other operating income (2022: DKK 868).
8. Share-based payments
DKK’000
2023
2022
Cost of share-based payments
-10,978
1,484
Total
0
1,484
Costs of share-based payments are recognised as staff costs with a corresponding effect in equity. During 2023 there has
been no share-based payments.
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. All warrants have been waived during 2023 as part of the Company’s de-listing from the stock exchange.
Specification of outstanding warrants
Number of warrants
Weighted
average exercise
price DKK
Board of
Directors
Employees
Total
Outstanding at 1
st
of January 2022
9.11
982,672
560,846
1,543,518
Granted
0
0
0
0
Exercised
1
0
-40,441
-40,441
Cancelled
0
-75,827
0
-75,827
Outstanding at 31
st
of
December 2022
10.11
906,845
520,405
1,427,250
Granted
0
0
0
0
Exercised
1
-331,572
-338,422
-669,994
Cancelled
16,00
-575,273
-181,983
-757,256
Outstanding at 31
st
of
December 2023
0
0
0
0
2023 Annual Report | Re-Match | 44
8. Share-based Payments (continued)
Outstanding warrants have the following characteristics:
Outstanding warrants
Weighted
average
exercise
price DKK
Vesting
period
Exercise
period
2023
2022
Warrants granted in 2019
1.00
19 Mar –
21 Mar
21 Mar –
24 Sep
0
287,871
Warrants granted in 2021,
prior IPO
1.00
19 Nov –
21 Dec
21 Dec –
24 Nov
0
382,123
Warrants granted in 2021,
post IPO
16.00
21 Dec –
23 Feb
22 Dec –
24 Dec
0
757,257
Outstanding at 31
st
of December
0
1,427,251
All warrants are cancelled during 2023.
2023
2022
Average remaining life of outstanding warrants at 31
st
of December (years)
0
2.0
Exercise price for outstanding warrants at 31
st
of December (DKK)
0
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.
During 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. This was
recognized and all granted warrants were waived.
2023 Annual Report | Re-Match | 45
9. Depreciation, amortisation and impairment losses
DKK’000
2023
2022
Amortisation of intangible assets
1,421
1,905
Depreciation of property plant and equipment
5,067
2,200
Depreciation of right-of-use assets
12,071
8,279
Total
18,559
12,384
10. Financial income
DKK’000
2023
2022
Foreign exchange income
7,453
6,818
Other financial income
126
1,490
Total
7,579
8,308
11. Financial expenses
DKK’000
2023
2022
Interest expenses
5,146
3,271
Foreign exchange losses
7,025
779
Interest on convertible loans
0
0
Interest on lease liabilities
12,679
9,303
Total
24,850
13,353
2023 Annual Report | Re-Match | 46
12. Tax for the year
The major components of income tax expense for the years ended 31
st
of December 2023, 2022, and 2021 are:
DKK’000
2023
2022
2021
Current tax for the year
0
0
0
Current tax for previous years
0
0
0
Changes in deferred tax
0
0
0
Income tax expense reported in the
statement of profit or loss
0
0
0
Profit/loss before tax
-102,046
-88,348
-92,424
Tax calculated as 22% of profit/loss before tax
24,865
19,447
20,333
Tax loss not recognised for the year
-24,865
-19,447
8,321
Non-deductible expenses
0
0
-34,179
Tax credit
0
0
0
Correction of development costs from
previous years
0
0
0
Correction of tax credit from previous years
0
0
0
Other
0
0
5,525
Effective tax
0
0
0
Effective tax rate for the year (%)
0.0%
0.0%
0.0%
Deferred tax is recognised in the statement of financial position as follows:
DKK’000
2023
2022
2021
Deferred tax (asset)
0
0
0
Correction of error
0
0
0
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 56,020t (2022:
DKK 40,855t) that are available for offsetting against future taxable profits of the Parent.
2023 Annual Report | Re-Match | 47
13. Intangible assets
2023
DKK’000
Completed
development
projects
Development
projects in
progress
Patents
Software
Total
Cost at 1
st
of January
7,012
10,725
4,534
2,807
25,078
Additions
0
8,010
468
1,137
9,615
Foreign exchange adjustments
0
0
0
0
0
Cost at 31
st
of December
7,012
18,735
5,002
3,944
34,693
Amortisation and impairment
losses at 1
st
of January
-6,592
0
-1,048
-1,063
-8,703
Amortisation during the year
-331
0
-468
-622
-1,421
Amortisation and impairment
losses at 31
st
of December
-6,923
0
-1,516
-1,685
-10,124
Carrying amount at
31
st
of December
89
18,735
3,486
2259
24,569
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.
2023 Annual Report | Re-Match | 48
13. Intangible assets (continued)
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
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
2023 Annual Report | Re-Match | 49
14. Property, plant & equipment
DKK’000
Other fixtures
and fittings,
tools and
equipment
Plant and
machinery
Leasehold
improvement
Total
2023
Cost at 1
st
of January
1,719
92,772
3,579
98,070
Additions
381
12,186
2,467
15,034
Disposals
0
0
0
0
Cost at 31
st
of December
2,100
104,958
6,046
113,104
Depreciation at 1
st
of January
-850
-9,334
-1,183
-11,367
Depreciation during the year
-388
-4,140
-539
-5,067
Reversed depreciation
0
0
0
0
Depreciation at 31
st
of December
-1,238
-13,474
-1,722
-16,434
Carrying amount at 31
st
of December
862
91,484
4,324
96,670
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
2023 Annual Report | Re-Match | 50
15. Leases
DKK’000
Property
Machinery
Cars
Total
2023
Cost at 1
st
of January
206,138
2,947
0
209,085
Additions
0
3,490
145
3,635
Adjustments and revaluations
-3,593
38
0
-3,555
Cost at 31
st
of December
202,545
6,475
145
209,165
Depreciation at 1
st
of January
-17,184
-684
0
-17,868
Depreciation during the year
-11,027
-961
-83
-12,071
Adjustments and revaluations
0
0
0
0
Depreciation at 31
st
of December
-28,211
-1,645
-83
-29,939
Carrying amount at 31
st
of December
174,334
4,830
62
179,226
2022
Cost at 1
st
of January
49,414
654
0
50,068
Additions
156,356
2,292
0
158,648
Adjustments and revaluations
368
1
0
369
Cost at 31
st
of December
206,138
2,947
0
209,085
Depreciation at 1
st
of January
-9,077
-512
0
-9,589
Depreciation during the year
-8,107
-172
0
-8,279
Adjustments and revaluations
0
0
0
0
Depreciation at 31
st
of December
-17,184
-684
0
-17,868
Carrying amount at 31
st
of December
188,954
2,263
0
191,217
2023 Annual Report | Re-Match | 51
Carrying amounts of lease liabilities and movements during the period:
15. Leases (continued)
DKK’000
2023
2022
At 1
st
of January
196,758
45,186
Additions
3,635
158,648
Accrual of interest
12,679
9,303
Payments
-18,524
-13,167
Adjustments
-5,099
-3,213
At 31
st
of December
189,449
196,758
Non-current
182,413
191,338
Current
7,036
5,420
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
2023
2022
Depreciation of right-of-use assets
12,071
8,279
Interest on lease liabilities
12,679
9,303
Expense relating to short-term leases (included in other external
expenses)
5
6
Total amount recognised in the statement of profit or loss
24,755
17,588
The Group had total lease outflow of DKK 18,524t (2022: DKK 12,799t).
The Group leases factory buildings, offices, machinery and cars. Lease terms are negotiated on
an individual basis and contain different terms and conditions.
16. Deposits
DKK’000
2023
2022
Cost at 1
st
of January
1,735
2,053
Additions
1,170
424
Repayment
-55
-742
Cost at 31
st
of December
2,850
1,735
2023 Annual Report | Re-Match | 52
17. Investment in a joint venture
The Group has a 60% (2022: 60%) interest in a joint venture in France, Re-Match France. The Group’s interest in Re-Match
France is accounted for using the equity method in the Consolidated Financial Statements. Summarized financial information
of the joint venture, based on its IFRS Financial Statements, and reconciliation with the carrying amount of the investment i n
the Consolidated Financial Statements are set out below:
Summarised statement of financial position of Re-Match France:
DKK’000
2023
2022
Current assets
12,470
33,037
Non-current assets
68,882
21,870
Current liabilities
17,848
39,419
Non-current liabilities
49,554
0
Equity
13,950
15,488
Group’s share in equity 60%
8,370
9,293
Goodwill
0
0
Group’s carrying amount of the investment
8,370
9,293
DKK’000
2023
2022
Revenue
13,875
10,488
Staff costs
-4,527
-2,477
Other external expenses
-12,348
-9,666
Depreciations
-222
-302
Financial expenses
1,649
-79
Profit/loss before tax
-1,572
-2,036
Income tax
0
0
Profit/loss for the year
-1,572
-2,036
Other
0
0
Total comprehensive income for the year
-1,572
-2,036
Group’s share of profit for the year
-943
-1,222
2023 Annual Report | Re-Match | 53
18. Other financial assets
DKK’000
2023
2022
Convertible Loan at 1
st
of January
5,832
5,832
Additions
0
0
Fair value adjustment
0
0
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 l oss.
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 2023 (31
st
of December 2022: DKK 0t). 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.
2023 Annual Report | Re-Match | 54
19. Inventories
DKK’000
2023
2022
Finished goods
8,325
4,187
Total inventory
8,325
4,187
20. Trade receivables
DKK’000
31/12/23
31/12/22
01/01/22
Trade receivables
5,931
5,069
4,266
Write-downs
-1,521
-1,944
-796
Total
4,410
3,125
3,470
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 2023
Trade receivables
2,124
1,532
281
1,994
-1,521
4,410
31
st
of December 2022
Trade receivables
538
1,334
260
2,937
-1,944
3,125
1
st
of January 2022
Trade receivables
418
117
810
2,921
-796
3,470
2023 Annual Report | Re-Match | 55
21. Other receivables
DKK’000
2023
2022
Warranties
12,107
18,215
VAT
7,893
5,309
Other
149
2,586
Total
20,149
26,110
Warranties relate to leases for storage space which are classified as short-term leases and not capitalised.
22. Working capital changes
DKK’000
2023
2022
Change in inventory and prepayments
-6,129
133
Change in receivables
4,407
-1,585
Change in trade payables and other debt
-4,580
10,467
Total
-6,302
9,015
2023 Annual Report | Re-Match | 56
23. Share capital and earnings per share
At 31
st
of December 2023, the share capital consisted of shares with a nominal value of DKK 1 each (31
st
of December 2022:
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 2022
28,704
Capital increase
47
At 31
st
of December 2022
28,751
Capital increase
7,813
Share capital at 31
st
of December 2023
36,564
Earnings per share
The calculation of earnings per share is based on the following:
DKK’000
2023
2022
Profit/loss for the year
-102,046
-88,348
Interest on convertible loan
0
0
Earnings for the purposes of diluted earnings per share
-102,046
-88,348
Average number of ordinary shares for calculation of basic
earnings per share:
36,563,739
28,750,841
Average diluted effect of outstanding share options
0
0
Convertible loans
0
0
Average number of shares for calculation of diluted earnings
per share:
36,563,739
28,750,841
Earnings per share. (EPS)
-2,79
-3,07
Earnings per share. diluted (DEPS)
-2,79
-3.07
2023 Annual Report | Re-Match | 57
24. Interest-bearing liabilities
DKK’000
31/12/23
31/12/22
At 1
st
of January
49,521
19,247
Additions
70
33,509
Paid interest
-4,591
-1,543
Accrual of interest
5,559
2,618
Payments
-13,260
-4,310
Adjustments
-6
0
At 31
st
of December
37,292
49,521
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.
2023 Annual Report | Re-Match | 58
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 instrume nts.
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.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the
reporting date are as follows:
DKK’000
2023
2022
Sensitivity to a 10% increase or decrease in USD exchange rate
Effect on profit before tax
766
779
Effect on pre-tax equity
2,377
1,526
DKK’000
Assets
Liabilities
31/12/23
31/12/22
31/12/23
31/12/22
Currency: USD
9,041
3,627
32,812
18,884
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 2023, the Group's cash and cash equivalents amounted to DKK 16,350t (2022: DKK 13,766t).
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted
payments which include estimated interest payments:
2023 Annual Report | Re-Match | 59
DKK’000
On demand
<1 year
1 to 5 years
> 5 years
Total
Year ended 31
st
of December 2023
Interest-bearing liabilities
0
9,500
24,052
45,940
79,492
Lease liabilities
0
7,036
31,911
150,502
189,449
Trade and other payables
0
30,884
0
0
30,884
Total
0
47,420
55,963
196,442
299,825
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
Interest rate risk
The Group’s interest-bearing debt are all fixed rates at 31
st
as of December 2023
.
2023 Annual Report | Re-Match | 60
26. Financial risks, financial instruments
DKK’000
2023
2022
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
2,850
1,735
Trade receivables
5,002
3,125
Other receivables
20,149
26,110
Cash
16,350
13,766
Total
44,351
44,736
Financial liabilities measured at amortised cost
Interest-bearing liabilities
79,406
49,521
Trade payables
14,525
18,195
Other payables
16,445
11,289
Total
110,376
79,005
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.
2023 Annual Report | Re-Match | 61
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
31/12/23
31/12/22
01/01/22
Cash at banks and on hand
7,292
5,618
107,674
Cash set aside as security
9,058
8,148
10,603
Bank overdrafts
0
0
-33
Cash and cash equivalents
16,350
13,766
118,244
Additional information on the changes to liabilities arising from financing activities can be found in the below tables:
2023 | DKK’000
Other
borrowings
Lease
liabilities
Total
Liabilities at 1
st
of January
49,521
196,758
246,280
Loans raised
70
0
70
New leases
0
3,623
3,623
Repayments
-12,299
-18,524
-30,823
Other
0
7,592
7,592
Liabilities at 31
st
of December
37,292
189,449
226,741
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
2023 Annual Report | Re-Match | 62
28. Guarantees, contingent liabilities and collateral
The Parent participates in a Danish joint taxation arrangement where Project Astro Bidco 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, 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
Project Astro Bidco A/S
Herning, Denmark
100%
Re-Match Holding A/S is included in the consolidated Financial Statements of Project Astro Bidco A/S.
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.
Transactions with joint ventures in which the entity is a joint venturer
DKK’000
2023
2022
Sales to Re-Match France
312
0
Purchase from Re-Match France
0
0
Interest received from Re-Match France
0
0
Amount owed by Re-Match France, convertible loan
5,832
6,554
Amount owed by Re-Match France, intercompany
592
322
Amount owed to Re-Match France
0
0
Capital increase during the year
0
7,450
2023 Annual Report | Re-Match | 63
30. Events after the reporting period
In the beginning of 2024 the installation of machinery in the joint venture company, Re-Match France, are undergoing
final testing. Final testing takes place in the beginning of March and is expected to ramp up during 2024.
The company have completed a new capital increase during January 2024.
During the first 3 months of 2024 the company successfully finalized the Horizon 2020 project. The overall scope of
creating yarn from re-used pitch material has been fulfilled, and the final project report will be sent to the Horizon office
during the month of June 2024. One third of the grant remains to be paid out, and under subject to acceptance of the
details of the project report, it is expected to be paid out in Q3 2024.
31. Special items
Special items consist of costs to external advisors and investment banks in relation to the de-listing from the Danish stock
exchange.
Special items are recognised as “Other external expenses” in the income statement, if not presented on a separate line.
32. Fees for auditors appointed by the general meeting
DKK
2023
2022
Statutory audit
356
417
Tax advisory
319
75
Other services
176
0
Total
851
492
2023 Annual Report | Re-Match | 64
Parent income statement
DKK
Note
2023
2022
Gross profit/loss
-23,450,759
-14,170,519
Staff costs
2
-1,290,687
-29,451,542
Depreciation. amortisation and impairment losses 3
-1,880,500
-4,356,173
Operating profit/loss
-26,621,946
-47,978,234
Share of profit in joint venture
-922,981
352,888
Financial income
4
31,637,987
6,777,940
Financial expenses
5
-195,145,606
-2,121,096
Profit/loss before tax
-191,052,548
-42,968,501
Tax for the year
6
0
0
Profit/loss for the year
-191,052,548
-42,968,501
Proposed distribution of profit and loss:
Transferred to other statutory reserves
5,989,111
2,855,709
Retained earnings
-197,041,659
-45,824,210
Profit/loss for the year
-191,052,548
-42,968,501
2023 Annual Report | Re-Match | 65
Parent balance sheet
DKK
Note
2023
2022
Completed development projects
88,572
419,966
Development projects in progress
18,734,757
10,725,015
Patents
3,486,279
3,486,118
Software
2,258,444
1,744,050
Total intangible assets
7
24,568,052
16,375,149
Plant and machinery
0
21,187,839
Other fixtures and fittings, tools and equipment
29,329
448,476
Leasehold improvements
0
480,110
Total tangible assets
8
29,329
22,116,425
Investments in subsidiaries
9
0
429,959
Investments in joint ventures
8,369,907
9,292,888
Receivables from subsidiaries
0
67,865,118
Deferred tax assets
0
0
Deposits
0
1,351,840
Other financial assets
5,823,358
5,823,358
Total fixed asset investments
14,193,265
84,763,163
Total fixed assets
38,790,646
123,254,737
Finished goods and goods for resale
0
3,447,964
Inventory
0
3,447,964
Trade receivables
0
88,944
Other receivables
14,463,545
24,022,532
Prepayments
752,988
582,927
Total receivables
15,216,533
24,694,403
Cash
9,461,624
13,336,205
Total current assets
24,678,157
41,478,572
Total assets
63,468,803
164,733,309
2023 Annual Report | Re-Match | 66
Parent balance sheet
DKK
Note
31/12/23
31/12/22
Share capital
36,563,739
28,750,841
Reserve for development expenditure
14,682,197
8,693,085
Retained earnings
-102,654,844
38,843,900
Total equity
-51,408,908
76,287,826
Interest bearing debt
10
0
303,110
Deferred income
11,046,499
22,836,962
Provisions
0
2,150,000
Other payables
0
0
Total non-current liabilities
11,046,499
25,290,072
Interest bearing debt
10
4,993,111
16,087,955
Trade payables
10
4,783,234
3,160,052
Payables to subsidiaries
66,450,000
7,463,936
Other payables
10
3,721,753
7,335,735
Deferred income
23,883,114
29,107,733
Total current liabilities
103,831,212
63,155,411
Total liabilities
114,877,711
88,445,483
Total equity and liabilities
63,468,803
164,733,309
Unrecognised rental agreements and lease commitments 11
Mortgages and collateral
12
Subsequent events
13
Special Items
14
2023 Annual Report | Re-Match | 67
Statement of changes in equity
DKK
Share capital
Reserve for
development
costs
Retained
earnings
Total
Equity beginning of year, 2023
28,750,841
8,693,085
38,843,900
76,287,826
Capital increase
7,812,898
0
66,521,674
74,334,572
Gain on own shares
0
0
0
0
Share based payments
0
0
-10,978,758
-10,978,758
Net profit/loss for the year
0
5,989,111
-197,041,659
-191,052,548
Equity end of year
36,563,739
14,682,197
-102,654,844
-51,408,908
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
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
-45,824,210
-42,968,501
Equity end of year
28,750,841
8,693,085
38,843,900
76,287,826
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
2023 Annual Report | Re-Match | 68
Notes
1. ACCOUNTING POLICIES
The Annual Report of Re-Match Holding A/S for 2023 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.
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.
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.
2023 Annual Report | Re-Match | 69
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.'
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.
2023 Annual Report | Re-Match | 70
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.
2023 Annual Report | Re-Match | 71
2. Staff costs
DKK
2023
2022
Wages and salaries
13,699,037
27,917,586
Share based payments
-10,978,758
1,483,933
Pensions
1,592,145
3,023,451
Other social security costs
92,263
465,189
Other staff costs
0
148,372
Total
4,404,687
33,038,531
Transfer to development costs
-3,114,000
-3,586,989
Total
1,290,687
29,451,542
Average numbers of employees at balance sheet date
12
41
Please refer to the disclosure in note 6 in the Consolidated Financial Statement for Management remuneration.
3. Depreciation, amortisation, and impairment losses
DKK
2023
2022
Amortisation of intangible assets
1,421,489
2,250,323
Amortisation of financial assets
429,959
0
Depreciation of property, plant and equipment
29,052
2,105,850
Total
1,880,500
4,356,173
2023 Annual Report | Re-Match | 72
4. Other financial income
DKK
2023
2022
Interest income intercompany
5,089,269
3,173,298
Other financial income
21,989,203
1,490,000
Foreign exchange gains
4,559,515
2,114,642
Total
31,637,987
6,777,940
5. Other financial expenses
DKK
2023
2022
Foreign exchange losses and other adjustments
-5,598,303
-1,587,595
Other interest expenses
-2,042,011
-533,501
Amortisation of receivables from subsidiaries
-187,505,292
0
Total
-195,145,606
-2,121,096
Management assessed the receivables from subsidiaries, and based on the uncertainty with future funding described
above, a significant risk that these may not be recoverable in the near future is considered. As a result of this, the
receivables have been amortized fully, with an amount of DKK 187,505,292.
6. Tax on profit/loss for the year
DKK
2023
2022
Current tax for the year
0
0
Deferred tax for the year
0
0
Total
0
0
2023 Annual Report | Re-Match | 73
7. Intangible assets
DKK
Completed
development
projects
Development
projects in
progress
Patents
Software
Total
2023
Cost at 1
st
of January
7,011,969
10,725,015
4,879,365
2,806,891
25,423,240
Additions
8,009,742
468,075
1,136,575
9,614,392
Cost at 31
st
of December
7,011,969
18,734,757
5,347,440
3,943,466
35,037,632
Amortisation and impairment
at 1
st
of January
6,592,003
0
1,393,247
1,062,841
9,048,091
Amortisation during the year
331,394
0
467,914
622,181
1,421,489
Amortisation and impairment
at 31
st
of December
6,923,397
0
1,861,161
1,685,022
10,469,580
Carrying amount at
31
st
of December
88,572
18,734,757
3,486,279
2,258,444
24,568,052
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.
8. Property, plant & equipment
DKK
Plant and
machinery
Other
fixtures and
fittings,
tools and
equipment
Leasehold
improve-
ments
Total
2023
Cost at 1
st
of January
30,522,728
1,262,144
1,605,019
33,389,891
Additions
0
0
0
0
Disposals
-30,522,728
-1,262,144
-1,459,789
-33,244,661
Cost at 31
st
of December
0
0
145,230
145,230
Depreciation at 1
st
of January
9,334,889
813,668
1,124,909
11,273,466
Reversed depreciation
-9,334,889
-813,668
-1,038,060
-11,186,617
Depreciation during the year
0
0
29,052
29,052
Depreciation at 31
st
of December
0
0
115,901
115,901
Carrying amount at 31
st
of December
0
0
29,329
29,329
2023 Annual Report | Re-Match | 74
9. Financial assets
DKK
2023
2022
Investments in subsidiaries
Cost at 1
st
of January
429,959
429,959
Additions
0
0
Amortisation during the year
-429,959
0
Cost at 31
st
of December
0
429,959
10. Interest bearing-debt
DKK
Debt at 1
st
January
Debt at 31
st
December
Due within 12
months
Due after more
than 5 years
2023
Interest bearing-debt
16,391,065
4,993,111
4,993,111
0
Trade and other payables
10,495,787
8,504,987
8,504,987
0
Total
26,886,852
13,498,098
13,498,098
0
11. Unrecognised rental and lease commitments
DKK
2023
2022
Operating lease liabilities. Total future lease payments:
Within 1 year
527,880
216,477
Between 1 and 5 years
32,283
231,630
Total
560,163
448,107
2023 Annual Report | Re-Match | 75
12. 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 2,253t of December 2023.
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 liability under the joint
taxation arrangement is disclosed in the administration company’s Financial Statements.
13. Subsequent events
Refer to the consolidated annual report - note 30.
14. Special Items
Refer to the consolidated annual report - note 31.
