Holmetjern Invest AS
	Annual Report
	31.12.2021
	Organization no. 912 810 089

 

 

	Holmetjern Invest AS
	Directors report
	The nature of the business and the base of operations
	Holmetjern Invest AS (hereafter “the company” or “the Parent company”) is a private sector limited liability investment company with the aim to invest in other companies, shares, securities and similar related ventures. The
	company is headquartered in		Trondheim, Norway	. The Holmetjern Invest Group (hereafter “the Group”) mainly
	consists of companies in the field of property development but has also investments within other industries. All the companies in the Group have a tax affiliation to Norway.
	Financial review
	During the fiscal year 2021 several of the Group’s major real estate projects have made good progress and have been well received by the market. For most of our projects Holmetjern Invest AS has collaborated with local housing associations with the aim to create affordable, yet good-quality housing for the general population in these residential zones. In Trondheim, the regional housing association TOBB, has had a leading role in our major project: Overvik. In the region of Østfold/Viken our collaboration partner has been the regional housing association HABO. We have through the year had various “Rent to Own” projects in different regions, making it possible for more people to enter the housing market.
	In Trondheim, the first phase of project Overvik was finalized during 2021 and the first residents have moved in the completed units. Phase 2 of the project consisting of 61 new units has begun, and completion is expected in 2023. The challenges related to the proposed changes to the zoning plans set by Trondheim Municipality caused major delays in the development of the Overvik area.
	The Group decided to sell off portions of the project to other interested parties while still retaining ownership over the remaining area. This sale was concluded 6th of January 2022. Due to the uncertainty related to the future zoning status of the remaining area, the Group has depreciated the values of this part of the project Overvik in its balance sheet.
	The Group continues to remain optimistic about further development of the Overvik area, as population of Trondheim Municipality is projected to only grow in the future, and the attractive location combined with easy access to the central areas in Trondheim makes Overvik extremely suitable for further residential development.
	Holmetjern Invest AS has profitably divested all its interests in the project Opsahlhaven in the Hokksund region to Partum Eiendom AS. The project Yventunet at Sarpsborg has also been concluded with generally profitable results.
	The Group’s associated company Signature Wines AS, with its core business of importing and marketing carefully selected vintages of quality wines from all over the world had a record year in 2021. Established in 2018, Signature Wines AS has in three short years shown itself to be an unqualified success.
	The Group has diversified its investment portfolio with acquisition of shares in two new companies, Storage Solutions AS and Norwegian Soda Company AS. Storage Solutions AS has as its core business short- and long-term rental of small- to medium-sized storage units in the b2c market. Norwegian Soda Company AS is a further expansion into the beverage industry by the Group, building on the previous successes of Signature Wines AS. Norwegian Soda Company is co-owned by the renowned master distiller Stig Bareksten, famous for his award-winning gins. Norwegian Soda Company aims to produce similarly high-quality mixers and tonics for the high-end beverage market.
	This year, the Group has a very special situation due to the events that has affected the valuations of parts of Overvik.  Therefore, the Board wishes to provide detailed information related to the annual accounts for 2021. Due to the City Council of Trondheim proposed changes in zoning for parts of the Overvik Area, the Group has, in line with the accounting principle of conservatism updated unaffiliated third-party valuations of its residential assets, leading to write-downs in the affected plots. Concurrently, the Group had signed a contract to sell off unaffected portions of the Overvik area, profits of which can already be seen in Q1 in 2022. The ledger value of these assets is still based on historical cost as of this reporting, and therefore the added value for these assets does not show until Q1 2022. As a consequence of this, negative effects are present in the 2021 reporting, while positive effects will not appear until 2022 reporting. The accompanying consolidated financial statement has been prepared with the assumption of going concern. As of 31.12.2021, the parent company and group have a negative working capital as the bond is maturing in June 2022. The Board is closely monitoring the situation and the responsibilities following § 3-4 and 3-5 in the Norwegian Limited Liability Companies Act. The Board are together with the Group management working towards a refinancing of the bond loans and are confident in reaching a sustainable debt structure going forward. Still, as no agreement has been made, the circumstances indicate that a material uncertainty exists that may cast doubt on the Company's ability to continue as a going concern. The transaction is profitable and will together with ongoing refinancing reduce the Groups debt significantly. This will strengthen the Group’s equity and provide a solid basis for continued operations in the Group. For further information, please look at note 14 and 17 in the financial statements of the Group. Taken this to consideration, The Board believes that the annual accounts provide a true and fair view of the Group’s and the company's assets and liabilities, financial position, and results. Management considers both the company's and the Group's liquidity to be good and will maintain to be good in the upcoming years, due to the sale of assets in 2022.
	It is the Group’s opinion that the Board has invested a lot of time and resources into rectifying the situation caused by Trondheim Municipality.  In the second half of 2021, the Board has responded with several decisions to steady and correct the development, to the positive effect, including working with an agreement of partial sale of the Overvik Area, which is settled and finalized in Q1 2022.  The Group is looking forward to the future, fiscal year 2022 is already shown good profits due to the large transaction regarding the partial sale of the Overvik area. The sales transaction improves the company’s LTV (loan-to-value) considerably. As a result of the above, the company has an improved the LTV at the end of 2021 to 53,4%. Calculated as stipulated by the bond agreement and is therefore in improved compliance with its financial covenants since last report.
	The Group’s operating loss for 2021 was MNOK -250,4. In 2020 the Group’s operating loss was MNOK -50,3. Holmetjern Invest AS has an equity of MNOK -29,9 and the Group's equity is at MNOK -248,6. As of 31.12.21, the equity ratio of Holmetjern Invest AS is -9,2%, compared to 18,1% in 2020. The equity ratio on the Group as of 31.12.21 is -37% compared to 7,0% in 2020.  Total assets in Holmetjern Invest AS have decreased by MNOK 103,0 from 2020 to 2021. For the Group, assets have decreased by MNOK 289 from 2020 to 2021. The net loss and decrease in assets and equity ratio are due to the write-downs related to investments with exposure to Overvik, a write-down of the inventory related to Tech Damper AS affects the Group’s accounts, and removal of the deferred tax assets from the Group’s  balance sheet. As a consequence of write-downs in assets related to parts of Overvik, there has been a write-down of receivables from associated companies and subsidiaries. If Trondheim Municipality decides to make parts of the regulated plots undevelopable for residential use, this will most likely incur a significant compensation claim towards the Trondheim Municipality from the companies affected by this decision.
	The Group focuses on maintaining a good liquidity reserve, creating a healthy buffer for unexpected events. On the short term, majority of the Group’s focus will be overseeing the maturation of its current investments and projects rather than exploring new ventures. A significant part of liquidity planning is also related to debt financing. The Group has a major obligation loan maturing in June 2022. The relatively low “Loan to Value” ratio across the Group and the long-established good relationship with the financial institutions involved provide a solid foundation for further developments.  Furthermore, it should also be added that the fair value of the company's and the Group's assets are considerably higher than recorded in the ledgers, based on external thirds party valuations. These values will not show before 2022, when the sale process of Overvik is finalized. The Group is showing a profitable result and a significantly higher equity and lower borrowing costs in the first half of fiscal year 2022.
	Overvik – Partial sale and proposed changes in zoning
	This report will focus on the project Overvik, situated in Trondheim, Norway. Overvik is a major investment for both the Group and the company. The Board has during Q3/Q4 been working on a major sale transaction regarding parts of Overvik, which was settled and finalized in Q1 2022.
	Background
	The City Council of Trondheim proposed in 2021 to revert several areas in Overvik back to “LNF”-zoning designation, thereby rendering them ineligible for further residential development. This is in breach of their previous resolution from May 2019, where the areas were zoned as suitable for residential development. The City Council has decided to stay their final decision until 2023 to coincide with the release of the new “KPA”, often referred as the Municipality’s master plan for urban development, forcing a temporary pause into the future planning and development of a part of the Overvik land area. The development projects already approved and initiated can be completed within the established timeframes. As an addendum to this report, please refer to previous reports issued by Holmetjern Invest AS and stock exchange notices during the last 12-16 months related to Overvik.
	The parts of Overvik open for continued development are a considerable part of the total Overvik area. In total, this area measures ~190 000 sqm (190 decare) of land. Pursuant to a minimum requirement of 1 100 residential units can be constructed on this land, however the potential is higher.
	Partial sale
	The areas not affected by the proposed changes have been separated and sold to other interested parties in March 2022. The sale encompasses subsidiaries Overvik Utvikling AS, Overvik Panorama 1 AS and Overvik T1 AS. This represents a major shift in the Group’s and the parent company’s asset portfolio. The sale will be fully finalized in Q2 2022. As a consequence of the sale both the Group and the company debts and other liabilities will be significantly reduced. The areas under the threat of zoning reversal will remain within the ownership of the Group.
	In connection with the publication of this financial report, the company has obtained updated unaffiliated third-party valuations of its residential assets, including for project Overvik. The reported valuation of Overvik represents a scenario where the remaining undeveloped areas are reverted to “LNF” designation as per Trondheim City Council’s proposal. In order to address the risks associated with the areas under the threat of zoning designation reversal, the appraiser has included in their model that the development starts at a much later date as well as significant increase in the risk premium. The value of this part of the Overvik area has been substantially reduced. To accurately reflect this fact, the Group has during this fiscal year depreciated the ledger values of the associated assets in accordance with the principle of prudence as described in the relevant accounting standards.
	The Group awaits for the final resolution from the Trondheim City Council before committing to a development strategy for the areas remaining under the Group’s ownership. Regardless of the outcome of the resolution the Group is focused on obtaining highest possible return for shareholder’s investments. It is the Group’s firm belief that the values stipulated by the third-party valuations is a fair representation of the market value of the Group’s residential assets and thus illustrate a robust value foundation for the Group’s shareholders, as the value of the Group’s assets well exceed its liabilities.
	The figure below summarizes the main projects in Holmetjern Invest AS and its subsidiaries and associated companies per 31.12.21.
	Risk assessment
	Operational risk
	The greatest risk associated with residential development is a substantial increase in interest rates over long term. This reduces the sales of new homes through the reduction in availability of affordable home mortgage loans and thus negatively impact the result for the Group. Also, larger macroeconomic forces such as a significant increase in long term unemployment will impact the private market’s willingness and ability to take up new loans.
	Financial risk
	The Group is exposed to general fluctuations in the pricing of residential real estate in Norway, but especially in major hubs such as in Trondheim. Further exposure to risk is incurred from factors related to construction costs and material prices, which have been under considerable stress as the global pandemic has affected supply chains and logistics. In general, the Group is focused on attracting experts in the whole value chain of real estate development, to ensure maintaining competence in-house. Due to this the Group can monitor the different risk categories within acceptable range in an effective and proactive manner. This allows for flexibility in the Group’s response to perceived risks ensuring a prompt and efficient change of strategy should there be a major change in market conditions.
	Liquidity risk
	Prudent liquidity management ensures that the Group has sufficient liquid assets and cash flow available to honour its present and future liabilities. A substantial part of the Group’s financing is provided by its shareholders and associated parties. Upon entering a project there is always a risk of the project having to raise more capital than in original projections. The process leading to material investment is therefore detailed and includes both the management and the board members before final decision is made. Liquidity prognosis is made on a frequent basis.
	Interest rate risk
	The Group's interest rate risk derives largely from long-term borrowings. Borrowings raised at variable rates expose the Group to interest rate fluctuations, which affect cash flow and liquidity. The Group has not entered any interest swap agreements since currently the short-term rates are low. However, the interest rates are monitored closely, and swap agreements could be entered into at a later stage.
	Research and development
	The Group has research and development activities through the subsidiary company Welmax Concrete AS. Welmax Concrete AS has through its expertise in robotization of welding processes developed a "3D printer". Using concrete extrusion techniques and unique hardware combined with 3D modelling and material research allows the printing of concrete structures and foundations without the use of casting molds. The “3D printer” is currently for internal use only and not for sale. Welmax Concrete AS maintains the ownership of the IP related to the “3D printer”, in a business model where customers lease both the hardware and software from Welmax Concrete AS. Further development is required for a minimum viable product, as well as the need to find efficiencies of scale both in production and sales.
	Going concern
	Pursuant to section 3-3a of the Norwegian Accounting Act, the board confirms that the going concern assumption is realistic and that the financial statements for 2021 have been prepared on that assumption. This view rests on the Group’s adequate capital and financial position. Please refer “Financial review” for further information.
	Work environment
	Holmetjern Invest AS has one permanent employee and has not registered absence due to illness in 2021. The Group is operated by its own employees as well as the employees in the owner company, Selmer Holding AS. The Group has 5 employees, registered absences due to non-Corona related illnesses in the group are below 1% for 2021. No serious work-related accidents have occurred, resulting in zero major material damages or personal injuries. The working environment can be considered to be good. The Group and all its subsidiaries have, wherever feasible, fully supported the “Work from Home” directives from the Norwegian state officials.
	Gender equality in employment
	Holmetjern Invest AS has only one employee, who is a man, and the company’s board consists of 2 men. Regardless, the company has a policy that work of equal value shall provide equal pay. The company works actively, purposefully and in a planned manner for gender equality within the company and the Group. When recruiting, both internally and externally, personal qualifications are given priority over gender. The underrepresented gender will to a greater extent be encouraged to apply. In this way, the company and the Group will try to increase the proportion of women in the job categories where this is low.
	Measures to prevent discrimination
	The company works consciously to promote equality, to ensure equal opportunities and rights and to prevent discrimination on the grounds of ethnicity, national origin, descent, skin colour, language, religion and belief.
	Environment
	The Group and its subsidiary companies engage in housing development as well as other industries. The companies do not pollute the environment to any great extent. Building waste management is according to the national guidelines.
	Shareholder agreements
	Holmetjern Invest AS has no statutory provision that limits or regulates the negotiability of the shares in the company. Nor are there any restrictions on the exercise of voting rights for shares. The company has no employee share schemes.
	Corporate governance
	Through its core business, Holmetjern Invest manages large financial assets. The size and scope of the company's operations are limited, so that the company uses a management model where responsibility for risk management and control is concentrated in the management. Roles and responsibilities in the management group are distributed and will continue to be in development in the next few years, in connection with the group building up for increased activity. Significant decisions by the Group are taken in close collaboration between the management and the Board.
	Overall goals have been established, and the company's strategy is updated on a frequent basis. Based on the overall policies, governing processes and routines have been established for the ongoing management. The board is overall responsible for ensuring that the business, financial reporting, and asset management are subject to satisfactory control. The Board regularly reviews the most important risk areas the company faces above and the internal control and ongoing follow-up that has been established to handle and minimize these. The administration prepares consolidated financial reports for the Group twice a year. Financial conditions are followed up by periodic accounting reporting. Liquidity in the Group is monitored closely and continuously. The company is managed by long-term financial targets. Half-yearly valuations of the company's investments are prepared, which are reviewed by the company and the board. External valuations are obtained on the company's properties.
	All other balance sheet items are reconciled and documented continuously throughout the year. The company does not have articles of association that regulate the appointment and replacement of board members, in addition to the minimum number that must sit on the board. The company does not have statutory provisions that allow the board to issue own shares or equity certificates. Authorizations related to such transactions follow the provisions of the Companies Act.
	Liability insurance for the Board members
	Holmetjern Invest has taken out a board and management liability insurance. The insurance applies to members of the board. The insurance covers the insured’s personal liability for economic loss caused to someone in their capacity as a director or an employee
	Corporate responsibility
	The Group has focus on environmental and social responsibility, where the goal is to be a responsible social actor. Long-term profitability is a fundamental prerequisite for exercising corporate social responsibility through, among other things: good, secure workplaces and contributions to a positive urban development where Holmetjern Invest has its business. Through our development project at Overvik, for example, we have the vision and ambition to create "Norway's best district" through a good living environment, proximity to nature and facilitation for environmentally friendly public transport. The Group is actively involved in the local community around the areas they are developing and is a contributor to the local voluntary organizations.
	Annual accounts and allocation of results
	In the opinion of the Board of Directors, the presented profit and loss account and balance sheet provide true reflections of the Group’s and the company’s profits/loss for 2021 and financial position at years end. It should be further repeated that large portions of the Overvik portfolio have been sold to other interested parties in March 2022, causing a major shift in owned assets, while also giving the company a solid economic platform for further development, when finalized in Q1 2022
	Trondheim, April 29th 2022
	___________________			_______________________
	Kolbjørn Selmer			Karl Albrecht Opsahl Selmer
	Chairman of the Board			CEO/Board member

 

 

	Financial Statements, Group
	Comments to the financial statements
	The financial report is prepared by 31.12.2021, in accordance with IFRS.
	Consolidated statement of profit or loss and other comprehensive income
	Holmetjern Invest Group
	NOK'000	Notes	2021		2020
	Revenue from contracts with customers	13	4 649		3 568
	Cost of goods sold, property development		0		-924
	Cost of goods sold, other activities (impairment charge)	2	-171 006		-5 520
	Gross profit		-166 358		-2 876
	Administrative expenses	16	-98 387		-39 837
	Impairment losses	3	14 346		-6 975
	Other gains/losses - net		0		-583
	Operating profit		-250 398		-50 272
	Finance income		10 764		9 021
	Borrowing costs		-48 140		-39 573
	Finance costs - net		-37 376		-30 552
	Share of net profit from associates accounted for using the equity method	9	-40 962		16 756
	Profit before income tax		-328 736		-64 068
	Income tax expense	11	12 289		16 777
	Profit for the period		-316 447		-47 291
	Profit is attributable to:
	Owners of Holmetjern Invest AS		-199 875		-40 695
	Non-controlling interests		-116 752		-6 595
			-316 447		-47 291
	Profit for the period		-316 447		-47 291
	Other comprehensive income for the period, net of tax		0		0
	Total comprehensive income for the period		-316 447		-47 291
	Total comprehensive income for the period is attributable to:
	Owners of Holmetjern Invest AS		-199 875		-40 695
	Non-controlling interests		-116 572		-6 595
			-316 447		-47 291

 

 

	Consolidated balance sheet
	Holmetjern Invest Group
	NOK'000		Notes	31.12.2021			31.12.2020
	ASSETS
	Non-current assets
	Property, plant and equipment		1	38 969			37 909
	Goodwill		10	2 246			0
	Deferred tax assets		4, 12	53 600			42 316
	Investments accounted for using the equity method		9	46 795			111 695
	Financial asset at fair value through profit or loss		3	15 697			25 726
	Financial assets at amortised costs		3	46 353			40 536
	Total non-current assets			203 661			258 182
	Current assets
	Inventories		2, 4	402 400			551 984
	Trade receivables		3	2 799			11 273
	Other financial assets at amortised cost		3	25 316			67 593
	Financial asset at fair value through profit or loss			0			2 113
	Cash and cash equivalents (excluding bank overdrafts)		3, 7	36 200			68 140
	Total current assets			466 716			701 104
	Total assets		17	670 377			959 285
	LIABILITIES
	Non-current liabilities
	Bank loans		3, 6	16 747			0
	Bond loan		3, 6	0			296 448
	Borrowings		3, 6	371 575			100 901
	Total non-current liabilities			388 322			397 349
	Current liabilities
	Trade and other payables			8 982			3 350
	Current tax liabilities			7			349
	Bank loans		6, 7	200 001			200 008
	Bond loan		6	298 229			0
	Borrowings		6	23 055			290 063
	Other short term liabilities			374			580
	Total current liabilities		6	530 648			494 349
	Total liabilities		17	918 970			891 698
	EQUITY
	Share capital and share premium		14	210			210
	Other paid-in equity			20 779			20 779
	Retained earnings			-166 724			33 219
	Non-controlling interests			-102 859			13 379
	Total equity		17	-248 593			67 588
	Total liabilities and equity			670 377			959 285
	Trondheim, April 29th 2022
	___________________			_______________________
	Kolbjørn Selmer			Karl Albrecht Opsahl Selmer
	Chairman of the Board			CEO/Board member

 

 

	Consolidated statement of changes in equity
	Holmetjern Invest Group
			Attributable to owners
	NOK'000	Note	Share capital	Share premium and other paid-in capital	Retained earnings	Total	Non-controlling interests	Total equity
	Balance on 1st January 2020		100	10	19 788	19 898	30 502	50 399
	Changes in accounting policy		0	0	0	0	0	0
	Correction of error (net of tax)		0	0	0	0	0	0
	Restated total equity at the beginning of the financial year		100	10	19 788	19 898	30 502	50 399
	Profit for the period		0	0	-40 695	-40 695	-6 595	-47 291
	Other comprehensive income		0	0	0	0	0	0
	Total comprehensive income for the period		0	0	-40 695	-40 695	-6 595	-47 291
	Transaction with owners in their capacity as owners:
	Contributions of equity net of transaction costs		100	20 779	0	20 879	0	20 879
	Transaction with non-controlling interests		0	0	54 128	54 128	579	54 706
	Dividends provided for or paid		0	0	0	0	-11 106	-11 106
			100	20 779	54 128	75 006	-10 527	64 480
								,
	Balance on 31st December 2020		200	20 789	33 220	54 209	13 379	67 588
	Profit for the period		0	0	-199 875	-199 875	-116 572	-316 447
	Other comprehensive income		0	0	0	0	0	0
	Total comprehensive income for the period		0	0	-199 875	-199 875	-116 572	-316 447
	Transaction with owners in their capacity as owners:
	Transaction with non-controlling interets	9	0	0	-69	-68	334	266
			0	0	-69	-68	334	266
	Balance on 31st December 2021		200	20 789	-166 724	-145 735	-102 859	-248 593

 

 

	Consolidated statement of cash flows
	Holmetjern Invest Group
	NOK'000		Notes	2021		2020
	Cash flow from operations
	Profit before income taxes			-328 736		-64 068
	Taxes paid in the period			-342		349
	Gain/loss from sale of non-current assets			2 749		1 267
	Depreciation			1 785		1 526
	Impairment charges			0		6 975
	Gains/(losses) recognised in other income - fair value			36 460		0
	Net profits from associates less dividends received			45 105		-13 506
	Change in inventory			149 584		-18 915
	Change in other current items			20 169		-17 776
	Net cash flow from operations			-73 226		-104 147
	Cash flow from investments
	Purchase of property, plant and equipment			0		-7 812
	Payment in other loans and receivables			0		-35 870
	Repayment in other loans and receivables			-2 246		0
	Proceeds from sale of shares and investments in other companies			0		65 000
	Purchase of shares and investments in other companies			0		-18 153
	Purchase of other investments			0		0
	Proceeds from sale of other investments			21 345		0
	Net cash flow from investments			19 099		3 165
	Cash flow from financing
	Proceeds from long-term loans			22 187		132 211
	Repayment of long-term loans			0		-1 000
	Transactions with non-controlling interests			0		-10 290
	Proceeds from issuance of equity			0		20 879
	Payment of dividends			0		-11 106
	Net cash flow from financing			22 187		130 694
	Net change in cash and cash equivalents			-31 940		29 712
	Cash and cash equivalents at the beginning of the period			68 140		38 428
	Cash and cash equivalents at the end of the period		7	36 200		68 140

 

 

Accounting principles for Holmetjern Invest - Group

The principal accounting policies are set out below and have been consistently applied to all accounting periods presented.

About the group

Holmetjern Invest AS is a

private limited liability company

organized and existing under the laws of

Norway

pursuant

to the Norwegian Companies Act. The Company was incorporated in

Norway

on November 22nd, 2013, and the

organisation number in the Norwegian Register of Business Enterprises is 912 810 089. The Company’s registered

name is

Holmetjern Invest AS

, the commercial name is Holmetjern.

Holmetjern Invest AS is an investment company primarily focusing on residential property development.

Holmetjern

is the holding company and the parent company of the Group. Holmetjern has no relevant business or

operational activities other than holding the investments and activities that are related to its subsidiaries. The Group develops, builds, and sells residential properties, predominantly in Trondheim, in collaboration with experienced blue-chip partners. The Group includes six subsidiaries focusing on the property segment and eight other smaller investments within the industry- and advisory segment.

Statement of compliance

The group’s consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and interpretations issued by the International Accounting Standards Board (IASB) and endorsed by the EU on 31 December 2021.

These consolidated financial statements were authorised for issue by the board of directors on 30th April 2022.

Basis of preparation

The consolidated financial statements have been prepared on a going concern and historical cost basis, except for some financial instruments which are recognised at fair value through profit or loss.

Investments in associates

An associate is an entity over which the Group has significant influence, and which is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is neither control nor joint control over those policies. Significant influence is generally presumed to exist when the Group holds between 20 and 50 per cent of the voting rights.

Associates are incorporated in these financial statements using the equity method of accounting. Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive income of the associate. If the Group’s share of losses of an associate exceeds the Group’s carrying amount of that associate, the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognised at the date of acquisition is recognised as goodwill, which is included in the carrying amount of the investment.

Any excess of the Group’s share of the net fair value of the identifiable assets, liabilities, and contingent liabilities over the cost of acquisition, after reassessment, is recognised immediately in profit or loss. The requirements of IFRS 9 are applied to determine whether it is necessary to recognise any impairment loss with respect to the group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of assets as a single asset by comparing its recoverable amount (the higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised to the extent that the recoverable amount of the investment subsequently increases.

When a Group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognised in the consolidated financial statements only to the extent of interests in the associate which are not related to the Group. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

Consolidation

The consolidated financial statements include the financial statements of the company and entities controlled by the company (its subsidiaries). Control is achieved where the company is exposed, or has rights, to variable returns from its involvement with an entity, and can affect those returns through its power over the entity. This is generally presumed to exist when the company holds more than 50 per cent of the voting rights. The existence and effect of potential voting rights which are currently exercisable, or convertible are also considered when assessing whether the company controls another entity. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. A negative comprehensive income in the subsidiaries is attributed to the owners of the parent company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

In general, all group companies use Norwegian General Accepted Accounting Principles when preparing their financial statements. Restatements are made to the financial statements to bring their accounting policies in line with those used by the group. All material intra-group transactions, balances, income, and expenses are eliminated in full on consolidation. Changes in the group’s ownership interests in subsidiaries which do not result in the group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the group’s controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Such transactions do not affect the profit or loss statement. When the group loses control of a subsidiary, the profit or loss is calculated as the difference between (a) the aggregate of the fair value of the consideration received and the fair value of any retained interest, and (b) the previous carrying amount of the assets (including goodwill) and liabilities of the subsidiary and any non-controlling interests. The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IFRS 9 Financial instruments or, when applicable, at the cost on initial recognition of an investment in an associate or a jointly controlled entity using the equity method.

Business combinations

Where a business or a property is acquired through the acquisition of entities, management considers the substance of the assets and activities acquired. When acquiring a group of assets or net assets which do not constitute a business, the cost price is allocated between the individual identifiable assets and liabilities acquired on the basis of their relative fair value at the acquisition date.

Business combinations are accounted for using the acquisition method. The acquisition is recognised as the aggregate of the consideration transferred, measured at acquisition-date fair value, and the amount of any non-controlling interest in the acquiree. For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition date amounts of the identifiable assets acquired and the liabilities assumed. Part of goodwill reflects the recognition of the deferred tax obligation at nominal value. Nominal value is higher than fair value, and the difference is included in goodwill.

When a business combination is achieved in stages, the group’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date (i.e., the date when the group obtains control) and the resulting gain or loss, if any, is recognised in profit or loss.

Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Subsequent changes to the fair value of any contingent consideration classified as a liability is recognised in profit or loss.

Inventory property

IAS 2 Inventories defines inventories as assets held for sale in the ordinary course of business or in the process of production for such sale, or as materials or supplies to be consumed in the production process or in the rendering of services. The group has property which is land and buildings intended for sale in the ordinary course of business or which is in the process of construction or development for such sale. Inventories can thus comprise of land, property held for resale, property under development and construction, and completed units which are not sold.

Inventories are measured at the lower of cost and net realisable value.

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition, and accumulated interest expenses. Capitalisation of attributable costs commences when it is more likely than not that the project will be realised. Other costs are included in the cost of inventories only to the extent that they are directly attributable to bringing the inventories to their present location and condition, including planning and design costs.

Carrying amount of undeveloped land is tested against net realisable value semi-annually. If carrying amount exceeds net realisable value, an impairment loss is recognized. If there are any indications of impairment, Management derives an internal assessment of the net realisable value of land in the form of a prognosis for the project. This prognosis builds on an external valuation, which can include factors such as expected housing prices and rate of return, government approvals and estimated construction costs. When properties are sold, the carrying amount is recognised as a cost of sale of goods in the income statement for the period in which the related revenue is recognised.

Intangible assets

Goodwill

Goodwill arising on the acquisition of a business is recognised in the balance sheet at the date of acquisition of the business. Goodwill is not amortised but is tested for impairment semi-annually. For the purposes of impairment testing, goodwill is allocated to each of the group’s cash-generating units (or collections of cash-generating units) expected to benefit from synergies of the business combination.

Goodwill is tested for impairment semi-annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reducing the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in profit or loss in the consolidated income statement. An impairment loss recognised for goodwill will not be reversed in subsequent periods. On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the calculation of the profit or loss on disposal.

Property, plant and equipment

Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

The depreciation methods and periods used by the group are disclosed in note 1. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss.

Revenue recognition

Revenue is measured at fair value of the consideration received or receivable for the sale of property and related transactions in the ordinary course of the group’s activities, in accordance with IFRS 15 Revenue from contracts with customers.

i) Sale of property

Revenue from the sale of residential property (including any sale of projects under development and undeveloped land) is recognised when the control is transferred to the customer. Control is considered transferred at the time of delivery of the property to the customer. Property may be sold with a degree of continuing involvement by the seller, which may be commitments to complete construction of the property, or a seller guarantee of occupancy of a housing cooperative for a certain period of time.

When a property is sold, the buyer normally has to make an advance payment to an escrow account held by the estate agent. The group does not have a right to the advance payment before providing security in accordance with Norwegian regulations. When security is provided, the advance payment is released from the escrow account and recognised as received cash and other short-term debt (advance payment). When the property is completed, but before delivery, the customer pays the remaining consideration to the escrow account. When the property is delivered to the customer, the group recognises the consideration as revenue and as a trade receivable. When the legal title to the property has been transferred, or other security provided, the remaining consideration is released from the escrow account.

ii) Lease revenues

Rental income from leasing of property (operating leases in which the group is a lessor) is recognised on a straight-line basis over the term of the relevant lease and included in other revenues.

ii) Sale of services

Control over services is considered to be transferred to the customer as the service is delivered. Revenue from sale of services is recognised when the service is performed.

Financial assets

Financial assets are initially recognised at fair value. Subsequent measurement depends on the classification of the assets, and currently the group only has financial assets which are held in the group’s business model where the objective is to collect the contractual cash flows, and where the cash flows are solely payments of principal and interest, are measured at amortised cost.

All equity investments are subsequently measured at fair value. Changes in the fair value of these financial assets are recognised in Other gains/losses - net. Impairment losses (and reversal of impairment losses) on these equity investments are not reported separately from other changes in fair value.

Financial instruments

A financial instrument is defined as being any contract that gives rise to a financial asset at one entity and a financial liability or equity instrument at another entity. From 1 January 2019, the group classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through OCI or through profit or loss), and

• those to be measured at amortised cost.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).  The group reclassifies debt investments when and only when its business model for managing those assets changes.

Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the group has transferred substantially all the risks and rewards of ownership.

Trade receivables

Trade receivables are amounts due from customers in the group’s ordinary property development business and related services. Trade receivables are recognised initially at the amount of the consideration and measured at amortised cost where the financing components are insignificant. The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets are grouped based on shared credit risk characteristics and the days past due.

Loans and other receivables

Loans and other receivables are held in the group’s normal business model where the objective is to collect payment and interest when due and measured at amortised cost using the effective interest method less any impairment. The receivables are classified as current unless they are due more than 12 months from the balance sheet date.

Financial liabilities

Financial liabilities are recognised initially at fair value and subsequently measured at amortised cost.

Borrowings

Borrowings are recognised initially at the received amount, net of transaction costs incurred, and subsequently measured at amortised cost. Any difference between the proceeds (net of transaction expenditures) and the nominal value is recognised in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the group has an unconditional right at the balance sheet date to defer settlement of the liability for at least 12 months.

Trade and other payables

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. If the interest element is insignificant, trade payables are carried at the original invoice amount.

Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the joint management group and board of directors. This group is responsible for allocating resources and assessing performance of the operating segments.

Cash and cash equivalents

Cash and cash equivalents as presented in the statement of cash flows include cash in hand, bank deposits and other highly liquid investments with original maturities of three months or less. The cash flow statement is prepared using the indirect method. Interest payments are classified as operational cash flows.

Income tax

Income tax expense represents current tax expense and changes in deferred tax expense.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the consolidated statement of comprehensive income because of items of income or expense which are taxable or deductible in other years and items which are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates which have been enacted or substantively enacted by the end of the reporting period.

Changes in deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction which affects neither the taxable profit nor the accounting profit. Deferred tax is also recognised for temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered in the foreseeable future. Deferred tax assets and liabilities are measured at the tax rates which are expected to apply in the period in which the liability is settled, or the asset realised, based on tax rates (and tax laws) which have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences which would follow from the manner in which the group expects to recover or settle the carrying amount of its assets and liabilities. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items which are recognised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

Equity

An equity instrument is any contract which evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the group are recognised at the proceeds received, net of direct issue costs (net of income tax).

Functional and presentation currency

(i) Functional and presentation currency

Items included in the individual financial statements of each of the group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in NOK, which also is the functional currency of the parent company and all subsidiaries that are consolidated.

(ii) Transactions and balances

In preparing the financial statements of each individual entity, transactions in currencies other than the entity’s functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items which are measured in terms of historical cost in a foreign currency are not retranslated in subsequent periods.

Leasing

The group has adopted IFRS 16 Leasing. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

fixed payments (including in-substance fixed payments), less any lease incentives receivable

variable lease payment that are based on an index or a rate

amounts expected to be payable by the lessee under residual value guarantees

the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the group’s incremental borrowing rate.

Right-of-use assets are measured at cost comprising the following:

·      the amount of the initial measurement of lease liability

·      any lease payments made at or before the commencement date less any lease incentives received

·      any initial direct costs and restoration costs.

Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

 

 

	Notes to the financial statement Group
	Note 1 - Property plant and Equipment
	Amounts in NOK 000's			Leased properties *)	Fixtures and fittings	Machinery	Total
	Net book amount on 31st December 2020			10 732	48	27 129	37 909
	Additions			0	0	2 823	2 823
	Disposals			0	-12	0	-12
	Depreciation charge			-1 459	-31	-260	-1 750
	Net journal amount on 31st December 2021			9 273	4	29 692	38 969
	Useful life			18 years	3-7 years	**)
	Depreciation method			Linear	Linear	Linear
	*) Leased assets are office and production facility rent
	**) Machinery is currently under development and not yet subject to depreciation
	Note 2 – Inventories
						2021	2020
						000'NOK	000'NOK
	Property portfolio
	Holmetjern Invest AS					0	0
	Overvik Utvikling AS					301 924	457 067
	Overvik Lokalsenter AS					64 112	54 087
	Opsahlhaven AS					0	2 650
	Overvik Panorama 1 AS					36 364	35 180
	Total property inventory					402 400	548 984
	Other inventory					0	3 000
	Total					402 400	551 984
	Assigning cost to inventories
	Borrowing costs on external land loans in group entity that owns the inventory property, are capitalised from the day the group initiates activities to develop the property.  Borrowing costs are recognised in profit and loss as part of the cost of sales when the units are delivered. Capitalized project cost is cost related to development of the land. Examples of such cost is cost related to zoning processes, architects, and other administrative expenses.
	Inventory is measured at net realisable value, and all property inventory is measured at historic cost. We also refer to Note 17 for further information.
	The Group has during fiscal year 2021 written down parts of its asset portfolio due to the proposed changes from Trondheim Municipality zoning plan, please refer to Directors’ report for further information. If Trondheim Municipality decides to make parts of the regulated plots undevelopable for residential use, this will most likely incur a significant compensation claim towards the Trondheim Municipality from the companies affected by this decision. Compensation, when received, will offset this year’s inventory impairment in parts or in full in some cases.
						2021	2020
						000'NOK	000'NOK
	Land cost					383 515	386 165
	Borrowing cost prior years					71 310	51 021
	Capitalized borrowing costs this year					15 888	20 290
	Capitalized project costs					122 251	91 509
	Impairment charges					-183 592	0
	Debt cancellation					-6 971	0
	Total					402 401	548 984
	Inventory is measured at net realisable value, and all property inventory is measured at historic cost. We also refer to Note 17 for further information.
	Note 3 – Financial assets and financial liabilities
	The group holds the following financial instruments:
	Financial assets
						2021	2020
						NOK'000	NOK'000
	Financial assets at amortised cost
	Trade receivables					2 799	11 273
	Other loans and receivables					25 316	67 593
	Restricted cash					26 435	27 545
	Cash and cash equivalents					9 765	40 595
	Financial assets at fair value through profit or loss
	Shares in other entities					15 697	27 839
						80 013	174 845
	Financial liabilities
						2021	2020
						NOK'000	NOK'000
	Liabilities at amortised cost
	Trade and other payables					8 982	3 350
	Loan					909 607	887 420
						918 589	890 770
	Other financial assets at amortised cost
	Holmetjern Invest AS is a holding company which mainly invests in real estates. When selling assets to external investors the payment structure is sometimes linked to the cash flow in the sold asset, which creates a receivable in the Group. The security for the receivable is the sold asset.
	Based on materiality, an expected credit loss is not booked for financial assets that do not have objective evidence of a credit loss. The materiality assessment is based on an evaluation of exposure, probability of default and loss given default.
	The loss is calculated by measuring the difference between the book value of the asset and the present value calculated using the original effective interest rate of the asset. The book value of the financial asset will then be reduced by the calculated impairment loss, and the loss is accounted for in the profit and loss.
	In 2021 there has been an impairment of receivables due to new appraisals of the zoned areas. The total write-down of receivables to associated companies is 22 669 954.
	Financial assets at fair value through profit or loss
	The group classifies the following financial assets at fair value through profit or loss (FVPL):
	- equity investments for which the entity has not elected to recognise fair value gains and losses through OCI
	Amounts recognised in profit or loss
	During the year, the following gains/losses were recognised in profit or loss:
						2021	2020
						NOK'000	NOK'000
	Fair value gains/losses on equity investments at FVPL recognised in other gains/losses					0	-583
	Fair value gains/losses on equity investments at FVPL recognised in finance income					0	1 983
	Gain on resale of purchase contracts for residential properties					4 272	1 119
	Gain/loss on sale of associated company					0	0
						4 272	2 518
	Risk exposure and fair value measurements
	Information about the group's exposure to price risk is provided in note 6. For information about the methods and assumptions used in determining fair value please refer to note below.
	Restricted cash
						2021	2020
						NOK'000	NOK'000
	Cash at bank in hand					36 200	68 140
	Restricted cash					26 435	27 545
						9 765	40 595
	Current liabilities
	Trade payables are unsecured and are usually paid within 30 days of recognition.
	The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature.
	Loans
	2021				Current	Non-current	Total
					NOK'000	NOK'000	NOK'000
	Secured
	Bank loans				200 001	16 747	216 748
	Bond loan				298 229	0	298 229
	Borrowings				0	9 529	9 529
	Total secured borrowings				498 229	26 277	524 506
	Unsecured
	Bank loans				0	0	0
	Bond loan				0	0	0
	Borrowings				23 055	362 046	385 101
	Total usecured borrowings				23 055	362 046	385 101
	Total borrowings				521 284	388 322	909 607
	2020				Current	Non-current	Total
					NOK'000	NOK'000	NOK'000
	Secured
	Bank loans				200 008	0	200 008
	Bond loan				0	296 448	296 448
	Lease liabilities				0	10 869	10 869
	Total secured borrowings				200 008	307 318	507 326
	Unsecured
	Bank loans				0	0	0
	Bond loan				0	0	0
	Borrowings				290 063	90 032	380 094
	Total usecured borrowings				290 063	90 032	380 094
	Total borrowings				490 071	397 349	887 420
	Net debt analysis
				Bank loans	Bond loan	Borrowings	Total
				NOK'000	NOK'000	NOK'000	NOK'000
	Balance on 1st Jan 2020			201 348	194 263	361 177	756 788
	New debt			0	100 000	25 647	125 647
	New leasing liabilities			0	0	5 196	5 196
	Repayment			-1 340	0	-1056	-2 396
	Amortisation and other			0	2 185	0	2 185
	Balance on 31st Dec 2020			200 008	296 448	390 964	887 420
	New debt			15 407	0	5 006	20 413
	New leasing liabilities			0	0	0	0
	Repayment			1 333	0	-1 340	-7
	Amortisation and other			0	1 781	0	1 781
	Balance on 31st Dec 2021			216 748	298 228	394 630	909 607
	Recognised fair value measurements
	Fair value hierarchy
	This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.
	Recurring fair value measurements on 31st December 2021
				Level 1	Level 2	Level 3	Total
				NOK'000	NOK'000	NOK'000	NOK'000
	Financial assets
	Financial assets at fair value through profit or loss			0	0	15 667	15 667
	Total financial assets			0	0	15 667	15 667
	Recurring fair value measurements on 31st December 2020
				Level 1	Level 2	Level 3	Total
				NOK'000	NOK'000	NOK'000	NOK'000
	Financial assets
	Financial assets at fair value through profit or loss			2 113	0	25 726	27 839
	Total financial assets			2 113	0	25 726	27 839
	There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. For transfers in and out of level 3 measurements see (iii) below.
	The group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.
	Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.
	Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
	Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.
	Valuation techniques used to determine fair values
	The main parts of the investments are related to real estate, where net realizable value is estimated. The net realizable value is the estimated as selling price adjusted for the total cost of completion. In determining the net realizable value, the management carries out an assessment of relevant factors. This would be factors like location, timeframe, and macroeconomic factors like interest rate development. This in addition to estimated price levels and estimated of building cost. This is performed in close cooperation with external advisors like real estate brokers and input from various entrepreneurs. The managements estimate on net realizable value will then be discussed with external valuation experts to compare the management assessment of net present value with the external experts’ assessment of value.
	For other investments an estimation of the selling price is used as criteria, where market-based factors for similar companies are used in the valuation.
	The following table presents the changes in level 3 items for the periods ended 31st December 2021, 31st December 2020 and 31st December 2019:
						Financial asset at fair value through profit or loss
						NOK'000
	Opening Balance 31st December 2019					25 726
	Acquisitions					0
	Disposals					0
	Gains/(losses) recognised in other income					0
	Closing balance 31st December 2020					25 726
	Acquisitions					0
	Disposals and reclassifications					0
	Gains/(losses) recognised in other income					-10 059
	Closing balance 31st December 2021					15 667
	Note 4 - Critical estimates, judgements, and errors
	The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Group’s accounting policies.
	This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed information about each of these estimates and judgements is included in other notes together with information about the basis of calculation for each affected line item in the financial statements. In addition, this note also explains where there have been actual adjustments this year because of an error and of changes to previous estimates.
	Significant estimates and judgements
	Inventory property
	The net realizable value is the estimated as selling price adjusted for the total cost of completion. In determining the value of inventory property, management carries out an assessment of relevant factors. This would be factors like location, timeframe, and macroeconomic factors like interest rate development. In addition to this, estimations are made regarding price levels and building cost. This is performed in close cooperation with external advisors like real estate brokers, and with input from various entrepreneurs. Managements estimate on net realizable value will then be discussed with external valuation experts to compare the management assessment of net present value with the external expert’s assessment of value.
	Fair value - financial assets
	The main parts of the investments are related to real estate companies, where net realizable value is estimated as described above, and then used as basis for the valuation of the investments.
	The Corona virus
	The Corona virus affects the property segment, which is included in the Company's core business. To date, the pandemic has not had a direct impact on our investments, but the general effect of overall increase in inflation has been felt. The Group is in close dialogue with their collaborators and continues to closely monitor the situation and the development of the economy. The entry prices on the Group’s properties are such as to make them attractive even if the market should be weaker for a period. In addition, implementing other types of concepts that are more suited to capital challenged market situation is a possibility, including "rent-before-own" schemes. The Group is well prepared to react to any market changes due to the Corona virus.
	Change in accounting policy
	In 2021 the Group has decided not to enter its deferred tax assets into its balance sheet in several companies. Consequently the deferred tax assets from previous years for some the companies in the Group have been removed from their respective balance sheets.
	Note 5 – Related party transactions
	Parent entities
	The group is controlled by the following entities:
	Name		Type		Place of incorporation	Ownership interest
						2021	2020
	Selmer Holding AS	1)	Ultimate parent entity and controlling party		Trondheim	71,25 %	71,25 %
	Snowy Invest AS	2)			Trondheim	23,75 %	23,75 %
	Singsaker Eiendom AS	3)			Trondheim	5,00 %	5,00 %
	1) This company is solely owned by chairman of the board Kolbjørn Selmer.
	2) This company is solely owned by CEO and board member Karl Albrecht Selmer
	Transactions with related parties
	The following transactions occured with related parties:
						2021	2020
						NOK'000	NOK'000
	Sales and purchases of goods and services
	Purchase of management services from parent company					27 879	30 862
	Purchases of various goods and services from entities controlled by key management personnel					198	1 012
	Outstanding balances arising from sales/purchases of goods and services
	The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:
						2021	2020
						NOK'000	NOK'000
	Current payables (purchases of goods and services)
	Selmer Holding AS (share holder)					4 912	572
	Entities controlled by key management personnel					0	11
	Other related parties					0	0
	Loans to/from related parties
						2021	2020
						NOK'000	NOK'000
	Loans from key management personnel
	Beginning of the year					237 923	228 328
	New loans					0	2 145
	Loan repayments made					-6 157	0
	Interest charged					5 677	7 450
	End of year					237 443	237 923
	Loans from parent company and other ownership companies
	Beginning of the year					49 088	73 671
	New loans					557	0
	Loan repayments made					0	-28 110
	Interest charged					3 917	3 526
	End of year					53 562	49 088
	Loans to associates
	Beginning of the year					73 662	59 053
	New loans					24 760	17 827
	Loan repayments received					-28 494	-5 209
	Interest received					4 098	1 991
	Impairment of receivables					-24 663
	End of year					49 363	73 662
	*Loan from key managing personnel is related do purchase of land/property in 2016. The loan is charged with an interest rate of NIBOR+2% and has a down payment plan over maximum 15 years (minimum down payment rates of MNOK 15 per year). The lender has a 2nd priority security in the sold property until the loan is fully repaid.
	Loans from parent companies are charged with an interest rate from 4-8%. Unpaid dividends are not charged with interest until the year after the dividend is given.
	Loans to associates are normally charged with an interest rate from 3-8%. Loans to associates are unsecured and are repayable in cash. Loans to associates mature in a period of 1-3 years from the reporting date.
	Note 6 – Financial risk management and capital management
	The overall object for the group is to make sure the groups obligations are met, and that shareholders and stakeholders have a sufficient return on their exposure to the group.
	The group is mainly exposed to the real estate segment and the risk factors therefore arises from that perspective. This includes price development on residentials and land, but also building cost and the development of such. The group has no material exposure to foreign exchange risk.
	Market risk - price risk
	The Group, and the investments in the Group, is mainly exposed to residential development, and the risk related to this segment. This includes the exposure related to the share price in those companies, but also the risk related to receivables and debt in those companies. Hence it will also affect the receivables the Group has towards such companies. The exposure is therefore related to development in residential price development in Norway in general, and mainly in Trondheim. The group and its investments are also exposed to risks related to construction costs and material prices. One way to address this is to keep the purchase price on land at a low-cost level, since this will be a buffer for a reduced-price level and/or reduced cost. In some cases, this will mean that we are buying land that needs to be developed, but the group is working closely with experts who can assess this risk in a good way. In general, the group is focusing on attracting experts in the whole value chain of real estate development, to make sure we have the competence in-house. Those are employed in the parent company Selmer Holding AS and are working solely with managing and developing the investments in the group. One of the leading real estate brokers in Norway was employed in Selmer Holding AS autumn 2018, and a highly skilled employee within entrepreneur to started in August 2019. Due to this the group can monitor the different risk categories within the price risk in a good way.
	Market risk – interest rate
	The group’s interest rate risk arises largely from long-term borrowings. Borrowings raised at variable rates expose the group to interest rate fluctuations, which affect cash flows. The group has not entered into any interest swap agreements, since the short-term rate is low. However, the interest rate is monitored closely, and swap agreements could be entered into at a later stage.
	We have made a simulation to assess the effect of an average increase in the interest rate of 0,25%, 0,5% and 0,75%.
	Increase, average interest rate per year				0,25 %	0,50 %	0,75 %
	Effect on consolidated profit (increased interest expense)				2 260	4 521	6 781
	Total effect on profit before income tax				2 260	4 521	6 781
	Credit risk
	Credit risk related to the sale of real estate is considered to be limited since sales mainly is done to solid customers, such as building societies. Credit risk also arises from outstanding receivables, such as loans to associated companies. Credit risk related to loans to estate companies is assessed to be low. Loans to companies in other segments will have a higher risk profile, and a deeper analysis must be done before entering such loans.
	The overall credit risk in the group is assessed to be low.
	Liquidity risk
	Conservative liquidity management ensures the Group has sufficient liquid assets and funding available to meet its obligations. The level of external borrowing is relatively low when it comes to value adjusted debt ratio. A considerable part of the group's financing is from shareholders and related parties. When entering projects there is a risk that the capital need is higher than expected. The process leading to an investment is therefore detailed and includes both management and board before final decision is made.
	Liquidity prognosis is made on a frequent basis
	Maturities of financial liabilities
	The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities, including interests.
	Contractual maturities of financial liabilities			Less then 1 year	Between 1 and 4 years	More then 4 years	Total contractual cash flows
	On 31st December 2021			NOK'000	NOK'000	NOK'000	NOK'000
	Bond loan			298 229	0	0	298 229
	Bank loans			200 001	16 747	0	216 748
	Lease liabilities			0	0	9 529	9 529
	Other long-term borrowings			0	362 046	0	362 046
	Short-term loans borrowings			23 055	0	0	23 055
	Total			538 032	362 046	9 529	909 607
	Contractual maturities of financial liabilities			Less then 1 year	Between 1 and 4 years	More then 4 years	Total contractual cash flows
	On 31st December 2020			NOK'000	NOK'000	NOK'000	NOK'000
	Bond loan			24 000	300 448	0	324 448
	Bank loans			210 508	0	0	210 508
	Lease liabilities			1 948	3 909	7 512	13 369
	Other long-term borrowings			0	99 035	0	99 035
	Short-term loans borrowings			301 665	0	0	301 665
	Total			538 122	403 391	7 512	949 025
	Capital management
	The group’s objective when managing its capital is to ensure all entities in the group to continue as going concerns, combined with the ability to provide return for its shareholders and stakeholders. In achieving this object, the focus is profitability on each investment, and the main rule is an annual return on equity in the range of 10%-20% per year, depending on the assessed risk in the project. The capital structure in the group is a combination of externa loans, shareholder loans and equity.  The amount of external loans is relatively small compared to the underlying values, which gives flexibility to optimize the capital structure both on project level and on company and group level.
	Covenants on external loan agreements are monitored on a frequent basis. As a general rule, the banks shall approve all distributions to shareholders and related parties. Holmetjern Invest AS has issued a bond, where the loan to value ratio must be below 65%, including loans from shareholders. Loan to value means the net interest-bearing debt divided by the market value of the Portfolio as defined in the loan agreement, based on valuations that are no older than 270 days. Subordinated loans from shareholders will not be a part of this calculation. Holmetjern Invest AS has reported a loan to value ratio of 55% on December 2021.
	Equity not considered necessary for further growth will be returned to shareholders through dividends, within the limitations set out in the bond terms for Holmetjern Invest AS. Allowed distribution is 50% of the net profit for the previous year, provided that the net loan to value ratio is below 50%.
					2021	2020	2019
	Dividends not recognised at the end of the reporting period				NOK'000	NOK'000	NOK'000
	The aggregate amount of the proposed dividend that is expected to be paid following year, and then out of retained earnings at year end. The amount is not recognised as liability at year end				0	0	0
	Note 7 – Assets pledges as security
	The carrying amounts of assets pledged as security for current and non-current borrowings are:
						2021	2020
						NOK'000	NOK'000
	Non-current assets
	Financial assets at amortised costs					8 112	7 916
	Total non-current assets					8 112	7 916
	Current assets
	Inventories					402 400	513 805
	Cash and cash equivalents (excluding bank overdrafts)					6 313	4 688
	Total current assets					408 713	518 492
	Total assets pledged as security					416 825	526 408
	The terms and conditions related to these pledges are as follows:
	Covenants related to bond loan:
	Net Loan to Value ˂ 65%, unrestricted cash ˃ NOK 20 millions
	Restricted cash in Overvik Lokalsenter AS is 1,625MNOK and restricted cash in Overvik Utvikling AS is MNOK 4,69
	Note 8 - Segment information
	Description of segments and principal activities
	The group's management team and board of directors jointly, examines the group's performance from business perspective and has the view that they only have one reportable segment, real estate. The different real estate activities of the group are done through different legal entities, with similar business activity. Management monitors and follows up on a company-by-company basis.

 

 

	Note 9 – Interest in other entities
	Material subsidiaries
	The group’s principal subsidiaries on 31st December 2021 are set out below. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the group.
	Name of entity		Place of business	Ownership interest held by the group		Ownership interest held by non-controlling interests		Principal activites
				2021	2020	2021	2020
				%	%	%	%
	Overvik Eiendom AS		Norway	56	56	44	44	Investment management
	Overvik Utvikling AS		Norway	56	56	44	44	Real Estate
	Overvik Lokalsenter AS		Norway	28	28	72	72	Real Estate
	Tech Damper AS		Norway	57	57	43	43	Engineering consulting
	Non-controlling interests (NCI)
	Set out below is summarised financial information for each subsidiary that has non-controlling interests that are material to the group. The amounts disclosed for each subsidiary are before inter-company eliminations.
			Overvik Eiendom AS		Overvik Lokalsenter AS		Tech Damper AS
	Summarised balance sheet		31st Dec 21	31st Dec 20	31st Dec 21	31st Dec 20	31st Dec 21	31st Dec 20
			NOK'000	NOK'000	NOK'000	NOK'000	NOK'000	NOK'000
	Current assets		30 203	64 263	70 456	140 713	318	3 611
	Current liabilities		14 394	103 830	51 627	54 838	395	456
	Current net assets		15 809	-39 567	18 830	85 875	-76	3 155
	Non-current assets		188 618	124 504	0	811	141	3 873
	Non-current liabilities		182 290	54 696	9 029	68 928	20 718	17 063
	Non-current net assets		6 328	69 808	-9 029	-68 117	-20 578	-13 190
	Net assets		22 137	30 241	9 800	17 758	-20 654	-10 036
	Accumulated NCI		4 899	8 493	2 930	8 629	-8 711	-3 587
			Overvik Eiendom AS		Overvik Lokalsenter AS		Tech Damper AS
	Summarised statement of comprehensive income		2021	2020	2021	2020	2021	2020
			NOK'000	NOK'000	NOK'000	NOK'000	NOK'000	NOK'000
	Revenue		0	0	0	0	1 076	1 076 184
	Profit for the period		-8 104	593	-7 958	-318	-11 833	-8 869
	Other Comprehensive income		0	0	0	0	0	0
	Total Comprehensive income		-8 104	593	-7 958	-318	-11 833	-8 869
	Profit allocated to NCI		-3 594	-3 061	-5 699	-228	-5 101	-3 283
	Dividends paid to NCI		0	11 106	0	0	0	0
	Summarised balance sheet	Overvik Utvikling AS			Summarised statement of comprehensive income		Overvik Utvikling AS
		2021	2020				2021	2020
		NOK'000	NOK'000				NOK'000	NOK'000
	Current assets	321 482	485 629		Revenue		0	0
	Current liabilities	161 671	58 833		Profit for the period		-230 301	-8 989
	Current net assets	159 811	426 796		Other comprehensive income		0	0
					Total comprehensive income		-230 301	-8 989
	Non-current assets	57 230	83 482
	Non-current liabilities	346 229	409 164		Profit allocated to NCI		-102 139	0
	Non-current net assets	-288 999	-325 682		Dividends paid to NCI		0	0
	Net assets	-129 187	101 114
	Accumulated NCI	-102 272	0
	Interests in associates and joint ventures
	Set out below are the associates and joint ventures of the group as of 31st December 2021 which, in the opinion of the directors, are material to the group. The entities listed below have share capital consisting solely of ordinary shares, which are held directly by the group. The proportion of ownership interest is the same as the proportion of voting rights held.
							Carrying amount
	Name of entity		Place of business	% of ownership interest	Nature of relationship	Measure-     ment method	2021	2020
						NOK'000	NOK'000	NOK'000
	K-TO AS *		Norway	50	Associate	Equity method	0	43 552
	Overvik T1 AS **		Norway	27	Associate	Equity method	20 704	20 704
	Oreid Eiendom AS ***		Norway	40	Associate	Equity method	11 761	12 592
	Overvik Bygginvest 1 AS ****		Norway	34	Associate	Equity method	8 321	5 351
	HH Prosjekt AS *****		Norway	0	Associate	Equity method	0	10 596
	Opsahlhaven Utvikling AS *****		Norway	0	Associate	Equity method	0	6 988
	Other/Immaterial associates						6 009	11 913
	Total equity accounted investments						46 795	111 695
	*K-TO AS invests in companies involved in real estate and financial investments.
	**Overvik T1 AS develops land areas. The group invites experienced partners to join the final development of its projects. Because of this strategy Overvik T1 AS is an associate and not a subsidiary to the group.
	***Oreid Eiendom AS makes investments in companies developing land.
	****Overvik Bygginvest AS is a single purpose real estate company, with investment in the first plot at Overvik (74 units)
	***** Opsahlhaven Utvikling AS and HH Prosjekt AS was sold during 2021.
	Summarised financial information for associates and joint ventures
	The tables below provide summarised financial information for those joint ventures and associates that are material to the group. The information disclosed reflects the amounts presented in the financial statements of the relevant associates and joint ventures and not Holmetjern Invest AS`s share of those amounts. They have been amended to reflect adjustments made by the entity when using the equity method, including fair value adjustments. The amounts are presented in NGAAP. As a result, the carrying amount of interests in associates will not match the groups share of net assets.
	Summarised balance sheet (company accounts)		K-TO AS		Overvik T1 AS		Oreid Eiendom AS
			2021	2020	2021	2020	2021	2020
			NOK'000	NOK'000	NOK'000	NOK'000	NOK'000	NOK'000
	Current assets
	Cash and cash equivalents		3 754	339	9 034	9 771	3 964	4
	Other current assets		20 747	28 631	0	742	0	0
	Total current assets		24 501	28 970	9 034	10 514	3 964	4
	Non-current assets		142 408	231 757	209 714	183 360	51 238	54 583
	Current liabilities
	Financial liabilities (excluding trade payables)		79 920	80 000	0	0	0	0
	Other current liabilities		9 248	18 766	199	240	0	0
	Total current liabilities		89 168	98 766	199	240	0	0
	Non-current liabilities
	Financial liabilities (excluding trade payables)		159 304	140 771	178 919	154 004	38 701	35 925
	Other non-current liabilities		0	0	0	0	0	0
	Total non-current liabilities		159 304	140 771	178 919	154 004	38 701	35 925
	Net assets		-81 562	21 191	39 629	39 629	16 500	18 662
	Reconciliation to carrying amounts (consolidated accounts)
	Opening net assets 1st January		87 103	80 461	42 363	42 343	31 479	30 501
	Profit for the period		-87 103	11 642	0	4	-2 075	978
	Other comprehensive income		0	0	0	0	0	0
	Dividends paid		0	-5 000	0	-112	0	0
	Closing net assets		0	87 103	42 363	42 256	29 404	31 479
	Group`s share in %		50 %	50 %	49 %	49 %	40 %	40 %
	Group`s share in NOK		0	43 552	20 704	20 705	11 761	12 592
	Goodwill		0	0	0	0	0	0
	Carrying amount		0	43 552	20 704	20 705	11 761	12 592
	Summarised statement of comprehensive income        (company accounts)		K-TO AS		Overvik T1 AS		Oreid Eiendom AS
			2021	2020	2021	2020	2021	2020
			NOK'000	NOK'000	NOK'000	NOK'000	NOK'000	NOK'000
	Revenue		0	0	0	0	0	0
	Interest income		1 870	1 378	4	4	132	246
	Other financial income		2 375	4 866	0	0	470	0
	Depreciation and amortisation		65 812	0	0	0	0	0
	Interest expense		13 910	12 788	0	0	2 701	1 933
	Income tax expense		0	0	0	0	0	0
	Profit from continuing operations		-102 753	-7 396	0	4	-2 162	-1 746
	Profit from discontinued operations		0	0	0	0	0	0
	Profit for the period		-102 753	-7 396	0	4	-2 162	-1 746
	Other comprehensive income		0	0	0	0	0	0
	Total comprehensive income		-102 753	-7 396	0	4	-2 162	-1 746
	Dividends received from associates		0	2 500	0	0	0	0
	Summarised balance sheet		Overvik Bygginvest 1 AS		HH Prosjekt AS		Opsahlhaven Utvikling AS
			2021	2020	2021	2020	2021	2020
			NOK'000	NOK'000	NOK'000	NOK'000	NOK'000	NOK'000
	Current assets
	Cash and cash equivalents		556	6 615	0	1 098	0	249
	Other current assets		22 061	22 061	0	20 046	0	21 513
	Total current assets		22 617	28 676	0	21 144	0	21 762
	Non-current assets		2 463	10 560	0	50	0	8
	Current liabilities
	Financial liabilities (excluding trade payables)		0	0	0	0	0	0
	Other current liabilities				0	2	0	89
	Total current liabilities		0	0	0	2	0	89
	Non-current liabilities
	Financial liabilities (excluding trade payables)		11 379	24 972	0	0	0	7 711
	Other non-current liabilities		0	0	0	0	0	0
	Total non-current liabilities		11 379	24 972	0	0	0	7 711
	Net assets		13 701	14 265	0	21 192	0	13 971
	Reconciliation to carrying amounts:
	Opening net assets 1 January		15 645	0	0	55	0	25
	Profit for the period		8 686	15 645		16 137		-19
	Other comprehensive income			0	0	0	0	0
	Share capital increase/reduction		0	0	0	5 000	0	13 970
	Dividends paid		0	0	0	0	0
	Closing net assets		24 331	15 645	0	21 192	0	13 976
	Group`s share in %		34 %	34 %	0 %	50 %	0 %	50 %
	Group`s share in NOK		8 321	5 351	0	10 596	0	6 988
	Goodwill		0	0	0	0	0	0
	Carrying amount		8 321	5 351	0	10 596	0	6 988
	Summarised statement of comprehensive income
			2021	2020	2021	2020	2021	2020
			NOK'000	NOK'000	NOK'000	NOK'000	NOK'000	NOK'000
	Revenue		0	0	0	0	0	0
	Interest income		410	807	0	0	0	0
	Depreciation and amortisation		0	0	0	0	0	0
	Interest expense		908	744	0	0	0	18
	Income tax expense		0	0	0	0	0	-5
	Profit from continuing operations		-564	16 658		16 137	0	-19
	Profit from discontinued operations		0	0	0	0	0	0
	Profit for the period		-564	16 658	0	16 137	0	-19
	Other comprehensive income		0	0	0	0	0	0
	Total comprehensive income		-564	16 658	0	16 137	0	-19
	Dividends received from associates		0	0	0	0	0	0
	Individually immaterial associates
	In addition to the interests in associates disclosed above, the group also has interests in a number of individually immaterial associates that are accounted for using the equity method.
							2021	2020
							NOK'000	NOK'000
	Aggregate carrying amount of individually immaterial associates						6 009	11 913
	Aggregate of the group`s share of:
	Profit from continuing operations						4 171	-3 633
	Post-tax profit  or loss from discontinued operations
	Other comprehensive income
	Total comprehensive income						4 171	-3 633

 

 

	Note 10 – Goodwill
				Goodwill	Total
	Cost at 1st Jan 2020			6 975	6 975
	Accumulated impairment			0	0
	Net ledger amount 1st Jan 2020			6 975	6 975
	Additions			0	0
	Disposals			0	0
	Impairment charge			-6 975	-6 975
	Net ledger amount 31st Dec 2020			0	0
	Cost at 1st Jan 2021			0	0
	Accumulated impairment			0	0
	Net ledger amount 1st Jan 2021			0	0
	Additions			2 246	0
	Disposals			0	0
	Impairment charge			0	0
	Net ledger amount 31st Dec 2021			2 246	2 246
	Goodwill was originally arisen from the purchase of Tech Damper AS. There was an impairment down to 0 NOK in 2020.
	During 2021, the Group has increased their number of shares in Mercur Capital ASA, and the company is now a subsidiary of Holmetjern Invest AS. As a consequence of this, there has arisen goodwill of NOK 2 245 953.
	Note 11 – Income tax expense
	Income tax expense
				2021	2020
				NOK'000	NOK'000
	Current tax
	Current tax on profits for the year			7	-349
	Adjustments for current tax of prior periods			0	0
	Total current tax expense			7	-349
	Deferred income tax
	Decrease/(increase) in deferred tax asset			-11 284	-16 658
	(Decrease)/increase in deferred tax liabilities			0	0
	Misstatements previous years			-1 012	230
	Total deferred tax expense/(benefit)			-12 296	-16 428
	Income tax expense			-12 289	-16 777
	Significant estimates - uncertain tax position
	There are no uncertain tax positions identified.
	Numerical reconciliation of income tax expense to tax payable
				2021	2020
				NOK'000	NOK'000
	Tax at the Norwegian tax rate of 22%			-72 322	-14 095
	Tax effect of amounts which are not deductible (taxable)
	in calculating taxable income:
	Share of net profit from associates accounted for using the equity method			9 012	-3 686
	Gain on realization of shares and other financial instruments			-4 627	0
	Loss on realization of shares and other financial instruments			0	74
	Tax effect of deferred tax assets which are not included in the financial statement			62 399	0
	Fair value adjustments without tax effect			-12 198	-436
	Dividends under the tax exemption rules			0	0
	Amortisation and impairment charges on goodwill			0	1 592
	Other tax-free income/non-deductible costs			5 447	-225
				-12 289	-16 777
	Note 12 – Deferred tax balance
	Deferred tax assets
			2021	2020	2019
			NOK'000	NOK'000	NOK'000
	The balance comprises temporary differences attributable to:
	Tax losses		62 202	49 950	35 181
	Fixed assets		-111	-85	-2 053
	Inventory		27 696	-14 417	-11 767
	Receivables		9 251	0	0
	Disallowed interest deduction carried forward		6 272	4 660	4 723
	Deferred revenue		0	2 308	0
	Other		-142	-11	-125
	Total deferred tax assets		105 168	42 406	25 959
	Unrecognized deferred tax asset		-51 568	-89	-300
	Net deferred tax assets		53 600	42 316	25 658
	Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise temporary differences and losses.
	Note 13 – Revenue from contracts with customers
	Disaggregation of revenue from contracts with customers
	The group derives revenue from the transfer of goods and services at a point in time in the following segments:
	2021		Real estate	Other	Total
			NOK'000	NOK'000	NOK'000
	Segment revenue		2 349	2 299	4 649
	Inter-segment revenue		0	0	0
	Revenue from external customers		2 349	2 299	4 649
	Timing of revenue
	- At point in time		2 349	2 299	4 649
	- Over time		0	0	0
			2 349	2 299	4 649
	2020		Real estate	Other	Total
			NOK'000	NOK'000	NOK'000
	Segment revenue		2 448	1 120	3 568
	Inter-segment revenue		0	0	0
	Revenue from external customers		2 448	1 120	3 568
	Timing of revenue
	- At point in time		2 448	1 120	3 568
	- Over time		0	0	0
			2 448	1 120	3 568
	Revenues from external customers come from the sale of property projects (apartments, land etc), and sales of goods and services in relation to the industry companies.
	Real estate - Land development and resale:
	The group is involved in different real estate projects, where the main activity is development and sale of residential properties. Sales are recognised when control of the property has been transferred, that is when the customer has received the right to use the property in question. The properties have generally no alternative use for the group due to contractual restrictions. However, an enforceable right to payment does not arise until legal title has passed to the customer. Therefore, revenue is recognised at a point in time when the legal title has passed to the customer.
	Other:
	Sales are recognised when control of the products has been transferred, specifically when the products have been delivered to the customer. Delivery occurs when the products have been shipped to the specific location, the risk of obsolescence and loss have been transfers to the customer, and either the customer has accepted the products in accordance with the sales contract or the group has objective evidence that all criteria for acceptance have been satisfied. The industry division also provides services to the clients. Revenue from providing services is recognised in the accounting period in which the services are rendered.
	The group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. Consequently, the group does not adjust any of the transaction prices for the time value of money.
	Note 14 – Equity
	Share capital and share premium
		2021	2020	2021	2020
		Number of Shares	Number of Shares	NOK'000	NOK'000
	Ordinary shares
	Fully paid	100 000	100 000	200	200
	Total share capital and share premium	100 000	100 000	200	200
	Movements in ordinary shares:
		Number of shares	Per value	Share premium	Total
			NOK'000	NOK'000	NOK'000
	Details
	Balance 31st December 2020	100 000	200	10	210
	Balance 31st December 2021	100 000	200	10	210
	Ordinary shares
	Ordinary shares have a par value of NOK 2.00. They entitle the holder to participate in dividends, and to share the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.
	Every shareholder that is present at a shareholder meeting, or represented by proxy, is entitled to vote by one vote per share the shareholder owns or represents.
	Going Concern
	The equity for the Group was at the end of fiscal year 2021 negative MNOK 248,6. For 2020 the equity was positive MNOK 67,6. Due to The City Council of Trondheim proposed changes in zoning for parts of the Overvik Area, the Group has, in line with the accounting principle of conservatism, updated unaffiliated third-party valuations of its residential assets, leading to write-downs in the affected plots. Concurrently, the Group had signed a contract to sell off unaffected portions of the Overvik area, profits of which can already be seen in Q1 in 2022. The ledger value of these assets is still based on historical cost as of this reporting, and therefore the added value for these assets does not show until Q1 2022. The Group is currently facing a negative working capital and increased refinancing risk as the bond is maturing 16 June 2022 and is therefore classified from non-current liability to current liability as of 31 December 2021. The Board is closely monitoring the situation and the responsibilities following § 3-4 and 3-5 in the Norwegian Limited Liability Companies Act. The Board are working towards a refinancing of the bond loans and are confident in reaching a sustainable debt structure going forward. Still, as no agreement has been made, the circumstances indicate that a material uncertainty exists that may cast doubt on the Company's ability to continue as a going concern. Following the completion of the sale, the board has worked closely with banks to achieve an optimal refinancing plan, which together with the settlement received will repay the bond in its entirety. Refinancing is in a final phase, and the annual accounts are therefore prepared on the assumption of continued operations. Together with ongoing refinancing and the sales transaction, there will be good solvency for continued operations in the Group.
	Note 15 – Remuneration
				2021	2020
				NOK'000	NOK'000
	Salaries			3 938	4 023
	Pension costs			135	142
	Payroll tax			512	576
	Finance tax			56	39
	Other compensations and social costs			-1 420	-1 345
	Capitalized personnel expenses			3 221	3 435
	Total payroll costs
				6	6
	Average number of employees
	For defined contribution plans, the group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual, or voluntary basis. The group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
	Compensation to the board of directors (BoD), the corporate executive committee (CEC) and other key management personnel
	Name	Position	Salaries	Pension	Other benefits
	Endre Kolbjørnsen	Chairman of the Board	426	7	0
	Karl Albrecht Selmer	Member of the Board/CEO	552	9	0
	Kolbjørn Selmer	Member of the Board	0	0	0
	Total		978	16	0
	Other key management personnel are compensated in Selmer Holding AS and this compensation is part of the basis for the management fee that is invoiced to the group.
	On 31st December 2021 there were no loans to the members of the BoD or the CEO.
	Auditor`s remuneration
				2021	2020
				NOK'000	NOK'000
	Audit fee			1 264	926
	Audit related fee			0	0
	Tax fee			0	0
	Other service fee			38	399
	Total			1 301	1 325
	Note 16 – Administrative expenses
				2021	2020
	Administrative expenses			NOK'000	NOK'000
	Total payroll costs			3 221	3 435
	Depreciations and amortizations			1 785	426
	Management fee			27 879	30 392
	Other operating expenses			65 501	4 484
	Administrative expenses			98 387	39 837
				2021	2020
	Finance income			NOK'000	NOK'000
	Interest income			6 492	5 920
	Revaluation of financial assets at fair value			0	1983
	Dividend			0	0
	Profit from sale of shares			0	4
	Other financial income			4 272	1 114
	Finance income			10 764	9 021
	Note 17 – Events after the reporting period
	Partial sale of the Overvik Area
	An agreement for selling large portions of Overvik area is signed and the transaction will be finalized during Q2 in 2022. Thus 2022 is already projected to deliver good profits. The sale encompasses subsidiaries Overvik Utvikling AS, Overvik Panorama 1 AS and Overvik T1 AS. This represents a major shift in the Group’s and the parent company’s asset portfolio. As a consequence, the Group’s debts and other liabilities will be significantly reduced.
	Change in valuation of assets
	There has been a positive change in the valuation of some assets owned by Overvik Lokalsenter AS and Blekkan Utvikling AS since the last reported Q4 Management Report dated 28.02.22. The new appraisals value assets in Overvik Lokalsenter AS having been increased from MNOK 52,7 to MNOK 68,7. The assets in Blekkan Utvikling AS have increased from MNOK 53,9 to MNOK 85,2 by the new appraisals.
	Since the last report, there have been changes in the valuations of the assets of Overvik Utvikling AS. As a consequence of the decision made in April 2021 by the city council in Trondheim, there has been a write-down in the areas affected by this. Total write-down was estimated MNOK 183,0.
	Mercur Capital ASA was sold during Q1 2022. The ledger values of this asset reflect the sales value. Based on the agreed price, there has been a write down in the Group's subsidiary investments. The ledger value of Mercur Capital ASA is now MNOK 3,8.
	The most significant changes are presented in the table below, and summarises the change in valuation of Overvik Lokalsenter, Overvik Utvikling and Mercur Capital ASA, in addition to the most significant changes in receivables related to K-TO and Overvik Eiendom.
	Under is a summary of the most significant changes from last Q4 report to the annual accounts presented in this report:
		Q4 rapport 2021	Changes in inventories	Changes in receivables	Other changes	Annual Report 2021
	Changes in profit before income tax	-143 855	-150 064	11 023	-45 840	-328 736
	Debt cancellation
	An agreement of debt cancellation between Overvik Utvikling AS (lender) and Overvik Lokalsenter AS has been entered, total debt cancelled is MNOK 73,9. Similar agreement is agreed between Blekkan Eiendom AS (lender) and Blekkan Utvikling AS where total debt cancelled is MNOK 40,2. The debt cancellation is rendered as a price reduction regulated in an agreement between the affected parties.
	Deferred tax assets
	There has been changes in valuations of entered deferred tax assets. Entered deferred tax assets in some of the companies has been removed from the balance. Please look at tax notes in each subsidiary for further information
	Note 18 – Business combinations
	There has been no business combinations during 2021. There has been no business combinations during 2020.

 

 

	Annual report 2021
	Holmetjern Invest AS
	(Parent company)
	Enterprise registration no. 912810089

 

 

	Income statement
		Note	2021		2020
	OPERATING REVENUE AND EXPENCES
	Operating revenue
	Total operating revenue		0		0
	Operating expenses
	Employee benefits expense	1	1 064 239		1 682 578
	Depreciation and amortization expenses	2	31 317		32 522
	Other operating expenses	1,3,4	60 591 754		21 908 169
	Total operating expenses		61 687 311		23 623 269
	OPERATING PROFIT OR LOSS		-61 687 311		-23 623 269
	FINANCIAL INCOME AND EXPENSES
	Financial income
	Changes in market value of fin. cur. assets		0		1 982 688
	Income from subsidiaries		2 359 260		764 233
	Income from associated companies		0		3 250 405
	Interest received from group companies	4	14 747 711		8 455 493
	Other interests	4	5 254 355		5 925 981
	Other financial income		6 055 572		66 092 354
	Total financial income		28 416 899		86 471 155
	Financial expenses
	Write-down on financial fixed assets	5	10 980 926		7 071 667
	Interest paid to group companies		3 610 950		3 535 553
	Other interests	6	22 689 453		31 490 584
	Other financial expense		12 826 859		335 241
	Total financial expenses		50 108 189		42 433 045
	NET FINANCIAL INCOME AND EXPENCES		-21 691 290		44 038 110
	ORDINARY RESULT BEFORE TAXES		-83 378 601		20 414 841
	Tax on ordinary result	7,8,9	23 821 926		-9 307 260
	ORDINARY RESULT		-107 200 527		29 722 101
	TO MAJORITY INTERESTS		-107 200 527		29 722 101
	APPLICATION AND ALLOC.
	To/from other equity	10	-56 346 103		29 722 101
	Uncovered loss		-50 854 424		0
	TOTAL APPLICATION AND ALLOCATION		-107 200 527		29 722 101

 

 

	Balance sheet on 31.12.2021
			Note	2021	2020
	ASSETS
	FIXED ASSETS
	Intangible assets
	Deferred tax asset		8	0	23 821 926
	Total intangible assets			0	23 821 926
	Tangible assets
	Fixtures and fittings, office machinery etc.		2	4 216	35 533
	Total tangible assets			4 216	35 533
	Financial fixed assets
	Investments in subsidiaries		5	30 704 770	27 327 510
	Loans to group companies		4	193 905 340	123 604 930
	Investments in associates		5	14 375 410	35 522 910
	Loans to associates and joint ventures		4	36 617 062	16 715 160
	Investments in shares or units		11,12	15 667 120	25 893 546
	Other long-term receivables		4	1 624 434	5 032 500
	Total financial fixed assets			292 894 138	234 096 558
	TOTAL FIXED ASSETS			292 898 354	257 954 016
	CURRENT ASSETS
	Receivables
	Trade receivables			0	456 348
	Receivables on group companies		4	0	59 847 073
	Other short-term receivables		4	3 947 433	55 520 242
	Total receivables			3 947 433	115 823 663
	Investments
	Quoted investment shares			0	2 112 720
	Total investments			0	2 112 720
	Bank deposits, cash in hand, etc.		13	27 794 816	51 761 762
	TOTAL CURRENT ASSETS			31 742 249	169 698 144
	TOTAL ASSETS			324 640 603	427 652 161
			Note	31.12.2021	31.12.2020
	EQUITY AND LIABILITIES
	EQUITY
	Paid-in equity
	Share capital		10,14	200 000	200 000
	Share premium reserve		10	10 459	10 459
	Other paid-in equity		10	20 779 368	20 779 368
	Total paid-in equity			20 989 827	20 989 827
	Retained earnings
	Other equity		10	0	56 346 103
	Uncovered loss			-50 854 424	0
	Total retained earnings			-50 854 424	56 346 103
	TOTAL EQUITY			-29 864 597	77 335 930
	LIABILITIES
	NON-CURRENT LIABILITIES
	Other non-currents liabilities
	Bonds		6	0	293 599 888
	Liabilities to group companies		15	51 950 314	48 339 364
	Other non-currents liabilities		15	1 054 748	748 812
	Total other non-currents liabilities			53 005 062	342 688 063
	TOTAL NON-CURRENT LIABILITIES			53 005 062	342 688 063
	CURRENT LIABILITIES
	Accounts payable			194 609	302 060
	Public duties payable			35 477	105 528
	Bond		6	298 228 555	0
	Other currents liabilities		6	3 041 496	7 220 579
	TOTAL CURRENT LIABILITIES			301 500 138	7 628 168
	TOTAL LIABILITIES			354 505 200	350 316 231
	TOTAL EQUITY AND LIABILITIES			324 640 603	427 652 161
	Trondheim, 29.04.2022
	Kolbjørn Selmer		Karl Albrecht Opsahl Selmer
	Chairman of the board		Member of the board/CEO

 

 

	Cash flow statement
	Holmetjern Invest AS - parent company
	NOK'000
			Note	2021	2020
	Cash flow from operations
	Earnings before taxes			-83 379	20 415
	-Tax payable			0	0
	+Loss/-gain on sale of assets			-6 040	-64 667
	+Depreciation and amortization			31	7 104
	+Impairment charge on investments in shares in other companies			18 713	-1 983
	+/- Changes inventory			0	32 780
	+/- Changes in accounts receivables			456	-370
	+/- Changes in accounts payable			-107	-1 965
	+/- Changes in other accruals			-3 938	185
	=Net cash flow from operations			-74 263	-8 499
	Cash flow from investments
	+Repayment in other loans			48 599	0
	-Payment in other loans and receivables			-16 494	-107 386
	+Proceeds from sale of shares			22 355	64 670
	-Investments in shares			-4 920	-29 033
	= Net cash flow from investments			45 929	-71 748
	Cash flow from financing activities
	+New loans			755	134 579
	-Repayment of long-term liabilities			0	-23 212
	=Net cash flow from financing activities			755	111 367
	=Net change in cash and cash equivalents			-23 967	31 120
	+Cash balance as of the beginning of the period			51 762	20 642
	=Cash balance as at the end of the period			27 795	51 762
	Balance of cash and cash equivalents is distributed as follows:
	Cash and bank deposits as at the end of the period			27 781	51 698
	+Tax withholdings etc as at the end of the period			14	64
	=Balance of cash and cash equivalents as at the end of the period			27 795	51 762

 

 

	Accounting principles for Holmetjern Invest AS – Parent Company
	The financial statements have been prepared in accordance with the provisions of the Norwegian Accounting Act and accounting principles generally accepted in Norway, including Norwegian accounting standards.
	Principles for income recognition
	Income from the sale of services is recognized at the time the service is performed. Costs are recognized in accordance with the matching principle, i.e., costs are recognized in the same period as the associated income.
	Assessment and classification of assets and liabilities
	Fixed assets comprise assets intended for permanent ownership and use. Fixed assets are valued at acquisition cost. Tangible fixed assets are capitalized and depreciate over the economic life of the asset. Fixed assets are written down to net recoverable value when a decrease in value is deemed to be permanent. The recoverable value shall be the higher of net market value and value of use. Value of use is equal to the current value of future cash flows generated by the asset. Write-downs are reversed when the basis for the write-down no longer applies.
	Current assets and short-term liabilities normally include items that fall due for payment within one year of the balance sheet date, as well as items that are associated with the normal operating cycle. Current assets are valued at the lower of original cost or presumed recoverable value.
	Tangible fixed assets
	Tangible fixed assets are capitalized and depreciated linearly across the service lifetime of the asset, provided that their service lifetime exceeds 3 years, and their cost of acquisition exceeds NOK 15,000.
	Short-term receivables
	Short-term receivables are recognized at face value. Provisions for loss have been made whenever it has been deemed necessary.
	Inventory
	Inventory is valued at the lower of cost or net recoverable value. The company’s inventory comprises a plot of land under development. Inventory is recognized at cost, including consulting fees, wages and other direct and indirect development costs. The net recoverable value is the estimated sales price less costs incurred in connection with completion and sale of the property.
	Shares and units in other companies and bonds
	Shares and units acquired as long-term investments are classified as fixed assets.
	Market-based share and bond investments are classified as current assets and valued at the lower of original cost and market value on the balance sheet date, cf. Section 5-2 of the Accounting Act.
	Taxes
	Taxes included in the profit and loss statement include both the period’s payable taxes and changes in deferred taxes. Deferred tax is calculated at 22 percent on the basis of temporary differences that exist between accounting and tax values, as well as tax-related losses to be brought forward at the end of the accounting year. Tax-increasing and tax-reducing temporary differences that are or may be reversed during the same period have been assessed and the net value brought forward.

 

 

	Note 1 – Wages and salaries
	The company has employed one and a half full-time equivalent this accounting year
	The company has set up a mandatory occupational pension arrangement.
	Specification of wages and salaries			This year	Last year
	Salaries			914 868	1 458 557
	Employer`s contributions			131 300	201 581
	Pension costs			16 337	19 632
	Other salary-release benefits			1 734	2 807
	Total			1 064 239	1 682 578
	Salaries to the general manager:
		Salaries	Pension cost		Total
	General manager	552 185	7 544		559 729
	No pension benefits or other benefits beyond salaries have been paid to the managing or other directors.
	Kolbjørn Opsahl Selmer (Chairman of the board), indirectly owns 71.25% of the company’s shares.
	Karl Albrecht Opsahl Selmer (general manager), indirectly owns 23,75% of the company’s shares.
	Auditors’ fees (numbers are included VAT)
				2021	2020
	Auditing			512 200	513 034
	Other consulting services			124 275	299 588
	Total			636 475	812 622
	Note 2 – Fixtures and fittings, tools, office machinery
		Fixtures and fittings, office machinery etc.
	Original cost as at 1/1	162 610
	+ Additions	0
	- Disposals	0
	Original cost as at 31/12	162 610
	Acc. /depr as at 1/1	127 077
	+ Depreciation and amortization	31 317
	+ Depr. revaluation	0
	- Reversed depreciation	0
	+ Extraordinary write - downs	0
	Acc./depr at as 31/12	158 394
	Book value as at 31/12	4 216
	Percentage for depreciation and amortization	20-20
	Note 3 - Transactions with related parties
	The company has charged to expense management fees. The amount of 16 918 750 NOK has been paid to the controlling company Selmer Holding AS during 2021. There are also interests accrued and charged to expense due to loans to and from the related parties.
	Note 4 - Receivables
			Affiliation	2021	2020
	Long-term receivables from subsidiaries
	Tech Damper AS*		Subsidiary	0	13 939 868
	Norwegian Petroleum Services AS		Subsidiary	0	80 310
	Det Selmerske Rederi AS		Subsidiary	134 631	121 295
	Opsahlhaven AS		Subsidiary	0	3 522 617
	Overvik Eiendom AS**		Subsidiary	142 462 097	54 695 828
	Holmetjern Boliginvest AS		Subsidiary	0	2 701 367
	Welmax Concrete AS		Subsidiary	15 322 551	10 210 752
	Holmetjernskogen AS		Subsidiary	159 524	25 000
	Overvik Panorama 1 AS		Subsidiary	35 257 496	33 847 108
	Selmer Energi AS		Subsidiary	533 408	-
	HTI 3 AS		Subsidiary	35 634	-
	Total long-term receivables from subsidiaries			193 905 341	119 144 145
	K-To AS***		Associated	17 085 695	4 485 677
	Opsahlhaven Utvikling AS		Associated	0	855 428
	Norse Development AS		Associated	5 668 052	4 460 784
	Oreid Eiendom AS		Associated	11 178 729	9 534 492
	Norwegian Soda Company AS		Associated	220 000	0
	Vågar Eiendom AS		Associated	2 464 587	1 839 564
	Total long-term receivables from associated companies			36 617 062	21 175 945
	Other long-term receivables
	F.Brun Eiendom AS			0	952 500
	Selmer Bolig AS			21 494	20 000
	Epko AS			1 000 000	1 000 000
	Pilar Management AS			0	1 655 000
	Singsaker Eiendom AS			0	1 405 000
	SON Service AS			301 470	0
	Jago Holding AS			301 470	0
	Total other long-term receivables			1 624 434	5 032 500
	Short-term receivables from subsidiaries			2021	2020
	Overvik Eiendom AS**		Subsidiary	0	58 979 314
	Overvik Panorama 1 AS		Subsidiary	0	103 526
	Holmetjern Boliginvest AS group contribution		Subsidiary		764 233
	Total Short-term receivables from subsidiaries			0	59 847 073
	Other short-term receivables
	K-To AS***		Associated	0	30 757 990
	Overvik Bygginvest AS		Associated	3 897 433	6 530 010
	Amortizations			50 000	79 170
	Tandberg Invest AS			0	18 153 071
	Total other short-term receivables			3 947 433	55 520 241
	*Written-down to 0 during 2021
	** Entirety of the loan is defined as long-term in 2021
	*** Entirety of the loan is defined as long-term in 2021. The loan is in 2021 written down with MNOK 22,7.
	Interest on receivables
	Interest on loans to subsidiaries			14 747 711
	Interest on loans to associated companies			4 187 837
	Interest on other receivables			991 766
	Interest bond 1MNOK			74 753
	Total interest on receivables			19 927 314

 

 

	Note 5 - Investments
	The company has shares in the following subsidiaries:
		Ownership	Voting rights	Net Profit	Equity
	Subsidiary, office location:			last year	last year
	Det Selmerske Rederi AS , Trondheim	100,00 %	100,00 %	-10 014	-130 508
	Overvik Eiendom AS , Trondheim	55,65 %	55,65 %	-8 104 220	22 136 885
	Tech Damper AS, Trondheim	56,89 %	56,89 %	-11 832 884	-20 654 051
	Mercur Capital ASA, Trondheim	100 %	100,00 %	-2 123 415	889 948
	Overvik Panorama 1 AS, Trondheim	100,00 %	100,00 %	14 078	-849 305
	Holmetjern Boliginvest AS, Trondheim	100,00 %	100,00 %	25 286	125 286
	Welmax Concrete AS, Trondheim	100,00 %	100,00 %	-710 232	13 194 453
	Holmetjernskogen AS, Trondheim	100,00 %	100,00 %	-74 529	-154 182
	Selmer Energi AS, Trondheim	100,00 %	100,00 %	-363 336	-1 081 240
	HTI 3 AS, Trondheim	100,00 %	100,00 %	-54 907	-33 099
	Storage Solutions AS, Trondheim	3,33 %	100,00 %	0	24 430
	The company has shares in the following associates:
		Ownership	Voting rights	Net Profit	Equity
	Associates, office location:			last year	last year
	K-to AS, Trondheim	50,00 %	50,00 %	-102 752 997	-81 562 395
	Holmstar AS, Trondheim	34,00 %	34,00 %	410 640	81 740
	Mercur Corporate Advisors AS , Trondheim	50,00 %	25,00 %	-60 803	-23 962
	Oreid Eiendom AS, Trondheim	40,00 %	40,00 %	-2 161 709	16 500 431
	Baccus Holding AS, Oslo	25,00 %	25,00 %	15 829 436	5 354 387
	Norse Development AS, Trondheim	50,00 %	50,00 %	-133 295	-1 013 313
	Overvik Bygginvest 1 AS , Trondheim	34,25 %	34,25 %	-564 231	13 700 919
	Norwegian Soda Company, Vinterbro	40,00 %	40,00 %
	Mercur Capital ASA was sold during Q1 2022. The ledger values of this asset reflect the sales value. Based on the agreed price, there has been a write down in the company's subsidiary investments. The ledger value of Mercur Capital ASA is now written down to MNOK 3,8. The total write-down was MNOK 7,7. The investment in in K-TO has also been written down in 2021, total amount of MNOK 0,75.
	Note 6 - Bond
	Bond loans	Amount 2021	Interest 2021	Amount 2020	Interest 2020
		NOK'000	NOK'000	NOK'000	NOK'000
	NO0010815632Holme 18/22	298 229	22 560	.296 448	25 055
	SUM	298 229	22 560	296 448	25 055
	The bond is interest-only through the loan period, which matures in June 2022. The bond therefore reclassified as current liability this year. Last year it was classified as a long-term liability
	Of the MNOK 300 000 bond, Holmetjern Invest AS holds MNOK 1 000.
	Covenants related to the bond:
	▪     Bondholders holds a charge against the shares of Holmetjern Invest AS
	▪     The company shall at all times maintain a minimum liquidity of NOK 20 million
	▪     Net Loan-To-Value shall be below 65%
	Costs incurred in connection with the bond have been matched with the bond in the balance sheet and charged as an expense under amortized costs.
	Cost of the year	Capitalized as at 31.12
	NOK'000	NOK'000
	4 629	771
	Note 7 - Tax on profit on ordinary activities
				2021	2020
	Changes in deferred tax/tax assets			23 821 926	-9 307 260
	Total ordinary tax			23 821 926	-9 307 260
	Note 8 - Tax on profit on ordinary activities
	Deferred tax/deferred tax assets
				2021	2020
	+ Fixed assets, incl. goodwill			-45 515	-26 631
	+/-Receivables/liabilities according to «Fordringsmodellen»			-11 898 758	-11 898 758
	+ Accounts receivable			-42 048 412	1 783 574
	-Taxable losses carried forward			133 851 110	94 572 519
	= Basis for deferred tax			-187 843 796	-108 281 482
	Deferred tax			0	0
	Negative basis for deferred tax			187 843 796	108 281 482
	= Basis for deferred tax			187 843 796	108 281 482
	Deferred tax assets, recognized			41 325 635	23 821 926
	Basis for not-entered deferred tax			187 843 796	0
	Not-entered deferred tax			41 325 635	0
	Entered deferred tax			0	23 821 926
	The company has from 2021 chosen not to enter deferred tax assets into its balance.
	Note 9 - Tax on profit on ordinary activities
	Reconciliation of tax against pre-tax profit/loss
				Basis	Tax
	Tax in income statement				23 821 926
	Pre-tax profit/loss			-83 378 601	-18 343 292
	Difference				42 165 218
	Which comprise
	Permanent differences			3 816 287	839 583
	Not entered DT / DTA this year			187 843 796	41 325 635
	Sum				42 165 218

 

 

	Note 10 - Equity
		Share Capital	Share Premium	Other Paid Inn	Other Equity	Uncovered Loss	Total
	On 1.1.	200 000	10 459	20 779 368	56 346 104	0	77 335 930
	Loss for the period				-56 346 104	-50 854 424	-107 200 528
	Total Equity	200 000	10 459	20 779 368	0	-50 854 424	-29 864 597

 

 

	Note 11 - Investments in shares
	Long-term shareholding
	Company			Ownership interest	Ledger value
	Vågar Eiendom AS			11 %	14 929 980
	Total				14 929 980
	The companies are valued based on observed market values of the relevant assets.
	There has been a write-down in the share value, due to threat of rezoning parts of the Overvik Area. Total write-down is 10 226 426.
	For further information, please refer to the annual report for Overvik Eiendom AS.
	Note 12 - Event after the balance sheet date
	The subsidiary company Overvik Panorama 1 AS has been sold in Q1 2022.
	Note 13 - Bank deposits, cash, etc.
	Withheld taxes amount to NOK 14 483 on 31.12.21, in comparison to 31.12.2020 NOK 63 632.
	Note 14 – Nominal share capital
	The company has 100 000 shares, each with a nominal value of NOK 2.00. The company’s total share capital is NOK 200 000.
	Navn		Organisation nr.	Amount	Ownership
	Selmer Holding AS		989 278 037	71 250	71,25 %
	Snowy Invest AS		912 799 891	23 750	23,75 %
	Singsaker Eiendom AS		958 086 628	5 000	5,00 %
	Holmetjern Invest AS is included in Selmer Holding AS consolidated accounts. The consolidating accounts can be obtained by contacting Selmer Holding AS.
	Note 15 – Long-term liabilities
	Long-term liabilities owners	Amount 2021	Interest 2021	Amount 2020	Interest 2020
	Singsaker Eiendom AS	840 179	41 022	549 157	47 576
	Selmer Holding AS (Group)	51 950 314	3 610 950	48 339 364	3 535 553
	Snowy Invest AS	214 570	14 914	199 655	326 654
	Total	53 005 063	3 666 887	49 088 176	3 909 783
	Note 16 – Corrections
	A correction has been made in the balance sheet section of this report. The annual report 2020 classified and reported erroneous values on loans to group companies and loans to associates/joint ventures. The total value of the financial assets remains the same. This is related to loan to the associated company Norse Development with the amount of 4 460 783.
	Note 17 – Continued operations
	The Company is currently facing a negative working capital and increased refinancing risk as the bond is maturing 16 June 2022 and is therefore classified from non-current liability to current liability as of 31 December 2021. The Board is closely monitoring the situation and the responsibilities following § 3-4 and 3-5 in the Norwegian Limited Liability Companies Act. The Board are working towards a refinancing of the bond loans and are confident in reaching a sustainable debt structure going forward. Still, as no agreement has been made, the circumstances indicate that a material uncertainty exists that may cast doubt on the Company's ability to continue as a going concern. The transaction is profitable and will together with ongoing refinancing reduce the Company’s debt significantly. This will strengthen the Company’s equity and provide a solid basis for continued operations in the Company. Pursuant to section 3-3a of the Norwegian Accounting Act, the board confirms that the going concern assumption is realistic and that the financial statements for 2021 have been prepared on that assumption

 

 

	Responsibility statement from the Board of Directors and Chief Executive Officer
	We confirm that, to the best of our knowledge, the interim financial statements for six months ended at 31.12.2021 has been prepared in accordance with IAS 34-Interim Financial Reporting, and that the accounts give a true and fair view of the group and the company’s consolidated assets, liabilities, financial position, and results of the operations per December 31st, 2021.
	We also confirm to the best of our knowledge, that the Director’s report provides a true and fair view of the development and performance of the business and the position of the group and the company including description of key risks and uncertainty factors pertaining to the group going forward.
	Trondheim, April 29th 2022
	___________________			_______________________
	Kolbjørn Selmer			Karl Albrecht Opsahl Selmer
	Chairman of the Board			Director and Board member

 

 

	Compliance certificate
			29.4.2022
	HTI - FRN Senior Secured NOK 300,000,000 Bonds 2018/2022, ISIN NO0010815632
	We refer to the Bond Terms for the above captioned Bonds made between Nordic Trustee AS as Bond Trustee on behalf of the Bondholders and the undersigned as Issuer. Pursuant to Clause 12.2 of the Bond Terms a Compliance Certificate shall be issued in connection with each delivery of Financial Statements to the Bond Trustee.
	This letter constitutes the Compliance Certificate for the period 1 January 2021 - 31 December 2021.
	Capitalized terms used herein will have the same meaning as in the Bond Terms.
	With reference to Clause 12.2 (Requirements as to Financial Reports) we hereby certify that all information delivered under cover of this Compliance Certificate is true and accurate and there has been no material adverse change to the financial condition of the Issuer since the date of the last accounts or the last Compliance Certificate submitted to you. Copies of our latest consolidated Interim Accounts are enclosed.
	The Financial Covenants set out in Clause 13.15 (Financial Covenants) are met, please see the calculations and figures in respect of the ratios attached. Further to the, Net LTV was 53,4% and the Issuer had Liquidity of NOK 27 795 000, in each case on 31.12.2021.
	We confirm that, to the best of our knowledge, no Event of Default has occurred or is likely to occur.
	Yours faithfully,
	Holmetjern Invest AS
	________________________________________________
	Kolbjørn Selmer
	Enclosure:
	• LTV calculation
	• Financial Statements on 31.12.2021
	Values in whole 1000

 

 

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