AI assistant
Rovsing Interim / Quarterly Report 2021
3458_rns_2022-02-21_8052e6dc-b4cf-4ea9-bc7e-379019f33515.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
1
ROVSING
INTERIM REPORT
FIRST HALF YEAR 2021 / 22
Rovsing A/S
Ejby Industrivej 38
DK-2600 Glostrup
Phone: +45 44 200 800
www.rovsing.dk
[email protected]
CVR: 16 13 90 84
2
PROFILE
Rovsing A/S (Rovsing) develops, manufactures and delivers systems for functional and electrical testing of spacecrafts (primarily satellites) and their payloads.
The products and systems are used for testing of spacecraft sub-systems, including external communication connections and instruments.
The Company's products are modular and are sold either on a stand-alone basis or used as modules in system solutions, customized for the specific spacecraft application. In connection with the configuration of system solutions, third parties' products are also used, and software is configured for the individual spacecraft needs.
The products, inclusive software packages, are flexible and configurable, facilitating tailor-made customer solutions.
More specifically, Rovsing offers, the following equipment solutions:
- Power & Launch EGSE (Electrical Ground Support Equipment)
- Payload EGSE
- Platform EGSE
- Instrument EGSE
- Avionics Test Beds
- Central Check-out Equipment
- Thermal EGSE
- Real-time Simulators
In addition, Rovsing develops software solutions, including solutions based on specific customer specifications, and performs independent software verification/validation (ISVV) for critical space-related software developed by third parties.
Rovsing also provides engineering support for large corporations in the space industry at various locations in Europe and in South America. For more than 15 years, Rovsing has been responsible for configuration control of ground installations at the European space base CSG in Kourou in French Guiana.
The main customers of Rovsing are European and US-based space groups such as Airbus DS, Thales Alenia Space, OHB, Boeing, Lockheed Martin and their key sub-suppliers. The European Space Agency (ESA), NASA and various national space agencies are also among Rovsing's customers.
LIST OF CONTENTS
PROFILE...2
HIGHLIGHTS OF THE HALF YEAR...3
FINANCIAL HIGHLIGHTS AND RATIOS...4
CORPORATE INFORMATION...5
MANAGEMENT STATEMENT...9
INCOME AND COMPREHENSIVE INCOME STATEMENT...10
BALANCE SHEET...11
BALANCE SHEET...12
STATEMENT OF CHANGES IN EQUITY...13
CASH FLOW STATEMENT...14
DEFINITION OF RATIOS...20
GLOSSARY...21
3
HIGHLIGHTS OF THE HALF YEAR
-
In the first half year of 2021/22, the revenue amounted to DKK 13,0 million (2020/21: DKK 12,4 million) while the 2021/22 EBITDA amounted to DKK 0,6 million (2020/21: DKK 1,0 million).
-
During H1 of 2021/22, the Company has seen delays on vital inputs from customers due to changes at programme level. With delayed and evolving incoming requirements it has been difficult to ensure the expected progress in large projects such as Galileo 2G and Mars Sample Return. The effort of reshuffling resources and responding to the changes in baseline has had a negative impact on H1 revenue and EBITDA. These delays are expected to be recovered in H2.
-
The order backlog at 31 December 2021 was at a high level of DKK 37,7 million (H1 2020/21 DKK 21,1 million), with an order intake in H1 of 2021/22 of DKK 5,9 million (H1 2020/21 DKK 19,3 million). The current order backlog for Rovsing gives a positive operational outlook as well for the coming years. New programmes are coming up in the industry both commercially and as well in the institutional segment, with further tenders and prospects expected to be issued and settled during the financial year.
-
Rovsing has continued to support its Customers in H1 2020/21, as an important key provider on major ongoing missions such as Galileo 2nd Generation, Mars Sample Return, SMILE, PLATO, FLEX and ARTEMIS. With our team delivering test- and simulation systems, individual products, software solutions, ISVV and on-site engineering services. The market position of Rovsing within the segment has been further strengthened based on the delivered performance and value. Showcased with new customers SITAEL for the PLATiNO programme and NASA-JPL in support of Mars Sample Return mission.
-
The global supply chain pressure on the electronic component market continues to draw focus with price and lead-time increases, a situation which is expected to remain volatile in 2022. Until now the impact on ongoing projects has been kept to a minimum by the Rovsing team with utilization of existing stock, the Company secured earlier in 2021, as well as coupled with good cooperation with suppliers. Rovsing continues to seek ways to mitigate the situation with our supply chain and customers in the current volatile environment.
-
Based on the H1 2021/22 performance, with the delayed Customer inputs, it is expected that the Company can recover the lost performance during H2, given no further delays. The outlook for 2021/22 is maintained with a revenue in the range of DKK 34 to 36 million, and an EBITDA in the range of DKK 3,5 to 4,5 million.
4
FINANCIAL HIGHLIGHTS AND RATIOS
| INCOME STATEMENT | 1H
2021/22 | 1H
2020/21 | Full year
2020/21 |
| --- | --- | --- | --- |
| DKK'000 | | | |
| Revenue | 13,007 | 12,392 | 27,535 |
| Earnings before interest, taxes, depreciation and amortisation, EBITDA | 635 | 1,031 | 2,514 |
| Operating profit (EBIT) | -320 | -1,158 | -2,497 |
| Financial income and expenses, net | -493 | -402 | -918 |
| Profit/loss for the year | -813 | -1,617 | -3,398 |
| BALANCE SHEET | | | |
| Non-current assets | 16,563 | 16,395 | 14,053 |
| Current assets | 13,079 | 9,533 | 11,079 |
| Total assets | 29,642 | 25,928 | 25,132 |
| Equity | 8,842 | 9,806 | 9,576 |
| Non-current liabilities | 6,000 | 4,630 | 4,687 |
| Current liabilities | 14,800 | 11,492 | 10,869 |
| Total equity and liabilities | 29,642 | 25,928 | 25,132 |
| CASH FLOW STATEMENT | | | |
| Cash flow from operating activities | 1,141 | -628 | -587 |
| Cash flow from investing activities | -1,393 | -160 | -429 |
| Cash flow from financing activities | 254 | 796 | 1,002 |
| Total cash flow | 2 | 8 | -13 |
| KEY FIGURES | | | |
| EBITDA margin, % | 4.9 | 8.3 | 9.1 |
| EBIT margin, % | -2.5 | -9.3 | -9.1 |
| Return on equity, % | -4.5 | -9.5 | -14.7 |
| Earnings per share (EPS) | -1,7 | -3,5 | -7,3 |
| Earnings per share (EPS-D) | -1,5 | -3,1 | -6,5 |
| Cash flow per share (CFPS) | -0,89 | -11,1 | -22,1 |
| Dividends per share of DKK 50 | - | - | - |
| Pay-out ratio, % | - | - | - |
| Equity per share, DKK | 18,73 | 21,47 | 20,3 |
| Solvency, % | 29.8 | 37.8 | 38.1 |
| Average number of shares (1,000 shares | 470 | 457 | 463 |
| Number of shares at year-end (1,000 shares) | 472 | 457 | 471 |
The key figures are calculated in accordance with the recommendations issued by the Danish Society of Financial Analysts ("Finansforeningens").
Rovsing's financial year is from 1 July to 30 June.
5
CORPORATE INFORMATION
The Company
Rovsing A/S
Ejby Industrivej 34-38
2600 Glostrup, Denmark
Phone: +45 44 200 800
Fax: +45 44 200 801
Website: www.rovsing.dk
E-mail: [email protected]
Company reg. (CVR) no.: 16 13 90 84
Date of incorporation: 20 May 1992
Municipality of registered office: Glostrup, Denmark
Board of Directors
Michael Hove (Chairman)
Ulrich Beck
Jakob Have
Executive Management
Hjalti Pall Thorvardarson, CEO
Sigurd Hundrup, CFO
Auditors
KPMG Statsautoriseret Revisionspartnerskab
Dampfærgevej 28
2100 København Ø
6
MANAGEMENTS' REVIEW
REVENUE AND RESULTS
Revenue for the first half year 2021/22 amounted to DKK 13,0 million compared to DKK 12,4 million in the same period last year.
Gross profit for the period amounted to DKK 9,0 million compared to DKK 9,1 million in the first half of 2020/21.
The Company's earnings before interest, tax, depreciation and amortisation (EBITDA) for the period amounted to DKK 0,6 million compared to DKK 1,0 million in the same period of the financial year 2020/21.
The net profit for the first half year amounted to DKK -0,8 million compared to DKK -1,6 million in the same period last year.
Equity as per 31 December 2021 amounted to DKK 8,8 million (31 December 2020: DKK 9,8 million).
Cash flow from operating activities for the period amounted to DKK 1,1 million compared to DKK -0,6 million in the first half year 2020/21. Net cash flow from investing activities amounted to DKK -1,4 million (2020/21: DKK -0,2 million) due to investment in Rovsings new facility/headquarters. Cash flow from financing activities amounted to DKK 0,3 million (2020/21: DKK 0,8 million) while net cash flow for the period amounted to DKK 0 million (2020/21: DKK 0 million). Due to COVID-19, the government delayed payment of VAT and a-tax/am-contribution equals DKK 3,0 million. The deferred amount will be paid in later periods and will be funded by the Company's own funds.
The H1 2021/22 realised revenue and EBITDA are trailing slightly Management's expectations. This is primarily due to slower progress has been achieved on a couple of larger projects, due to overall programme delays in freezing the requirement specifications. Despite these challenges the team at Rovsing has been able to deliver on customer milestones and shift efforts to advancing other projects. The COVID-19 pandemic and the derived semiconductor supply-chain issues and raising prices have given further challenges and effort to keep all wheels turning efficiently. The flexibility of the Rovsing team and an active business continuation plan, remain a significant factor in driving mitigations to the pandemic situation and associated challenges.
The order intake in the first 6 months of the financial year 2021/22 has been lower compared to the order intake in H1 2020/21. This is a timing issue
as the Company reached a record high order intake in H2 of 2020/21. Secondly, the lower order intake in H1 2021/21 compared to the same period in the last business year is mainly driven by the fact that not many tenders have been in decision phase during H1 2021/22 while the Company has been busy submitting offers for new tenders:
Order backlog remains at a high level compared to earlier periods. This success reflects the efforts invested in sales and project proposals which have been intensified over the past years in connection with a steady increase in the general activity level of the industry. The figure below shows the order backlog exclusive of ongoing service contracts.
The evolution of the order backlog is in line with expectation as new key tenders have yet to be decided. The Company maintains a strong competitive position in key market segments.
OPERATIONAL REVIEW
The European market
Rovsing continues to be a key player within the European institutional space market, holding a position as one of the preferred collaborators of the major European Prime contractors in their efforts to capture upcoming mission within space exploration, earth observation, communication and other critical infrastructure. With our central roles within the Thales Alenia Space part of Galileo $2^{\text{nd}}$ Generation (G2G) programme (Announcement no. 324), delivering multiple & recurring EGSE(s) to a flagship mission in Europe, the Company has secured a vital cornerstone in our order backlog and
future reference of the expertise and scope that Rovsing can deliver to its customers.
The Rovsing team concluded successfully the first of the Critical Design Reviews (CDR) of the G2G EGSEs in December 2021 together with TAS-Italy. With the next large CDR scheduled for completion in first quarter of 2022. With the first CDR approved the Rovsing team have begun the manufacturing, assembly, integration and test (MAIT) work.
Rovsing finished in November 2021 the Test Readiness Review (TRR) for customer TAS-UK in connection with the Electrical Power Subsystem (EPS) SCOE for the FLEX programme. The delivery of the FLEX EPS SCOE is expected early 2022. The FLEX EPS SCOE is good continuation of Rovsing Power SCOE business line and shares good synergies with the ongoing PLATO EPS SCOE for TAS-UK for which the first set was delivered back in June 2021 and second set is on track for delivery early 2022.
In November 2021 new orders were awarded to Rovsing by SITAEL S.p.A in Italy for EGSE and products to support their development of PLATiNO spacecrafts. The Kick-Off was concluded in December and deliveries are planned in H2. With the addition of SITAEL to the Company's customer base, showcases a further strengthening of our efforts in the commercial small-sat segment.
Rovsing is responsible for performing the Independent Software Validation (ISVV) for Airbus DS Spain on the Solar wind Magnetosphere Ionosphere Link Explorer (SMILE) Payload Module PLM, a contract signed back in September 2020 and running until spring 2022. SMILE is a joint venture mission between the European Space Agency and the Chinese Academy of Sciences.
Airbus DS in Toulouse led the winning consortium for the Mars Sample Return (MSR) Earth Return Orbiter (ERO) programme. Rovsing is a core consortium member, responsible for providing the Electrical Satellite Interface Simulator (E-SIS). The Critical Design Review of the E-SIS was concluded successfully with Airbus DS, ESA and NASA in October 2021. Thus, starting MAIT phase of the project.
Together with Critical Software from Portugal, Rovsing submitted the updated ESA handbook for Independent Software Verification and Validation.
Rovsing has continued support for the Artemis missions with the Orion Multi-Purpose Crew Vehicle (MPCV) European Service Module (ESM). Four Solar Array Wing Front End Equipment (SAW
FEE) systems are deployed, two with Airbus DS in Bremen and Ariane Group in Les Mureaux, one with Lockheed Martin in Colorado for the Integrated Test Lab and the fourth with NASA at the Kennedy Space Center. As part of the NASA Artemis and Lunar Gateway programmes, ESA has committed to providing additional three ESMs. In this connection Rovsing is continuing to provide engineering support both remote & onsite as well as spare parts and possible upgrades. In September 2021 the third recurring MPCV-ESM PCDU EGSE in support of the upcoming ESMs was delivered to Leonardo in Milan.
Rovsing's onsite service business in Kourou remain in place with contracts running until ultimo 2022 with high likelihood of a minimum one year extension.
The North American market
Due to COVID-19, no customer or trade show visits to North America were possible during H1. Rovsing still proceeded to explore further opportunities with North American customers and responding to tenders. Recently, in November 2021 an order from NASA-JPL for our Power Front-End(s) and Latching Current Limiters was received with deliveries in H2.
As a supplier of various EGSE to the European Service Module (ESM) for the Orion Crew Capsule, Rovsing remains a vital partner for the Artemis missions planned in the coming years with the aim of bringing humans back to the Moon. With the ESA and NASA commitment for three additional ESMs, Rovsing has been awarded service agreements to support the Artemis mission for the coming years.
The overall North American market for commercial, military, and civil space remains a growth opportunity and strategic focus for the Company.
Emerging space markets
Rovsing continues to closely monitor emerging and ambitious space markets with their increasing space budgets. However, sales activities and inquiries from emerging markets have remained at a low level in H1 2021/22. This can be attributed to the overall world situation where emerging markets and one-off programmes are more sensitive to the COVID-19 pandemic than programmes of more established space nations.
Product development and production
Rovsing has continued focus on improving its product base and related logistics, production and
8
testing environments. Improvements in value chain, heightening of quality and efficiency are a constant focus to improve the Company's competitive advantage. With the new and improved Company headquarters the foundation for future improvements has been laid, allowing for further scaling of our operations and development.
Product development and feature improvements in the domains of both software and hardware remain key enablers for Rovsing abilities to deliver diverse market leading system solutions to customers.
Rovsing's strategic roadmap focuses on achieving increased scalability such that our already modular products can be better address the widening range of satellite architectures.
Organisation and management
By the end of December 2021, Rovsing employed a total of 27 employees, counted on a full-time-equivalent basis. Most employees were employed at the company's head office in Glostrup, Denmark, but the company also has employees in Kourou, French Guiana, where they provide support and consultancy services.
At the Company's annual general meeting in October 2021 Michael Hove, Jakob Have and Ulrich Beck were reelected to the Board of Directors.
COVID-19
The COVID-19 pandemic has continued to be a major disruption event in both personal and professional lives of all. At Rovsing an active business continuity plan to address the COVID-19 situation has been in place to ensure continuous evaluation of the business based on supply chain, internal resources, progress and governmental guidelines.
The COVID-19 derived semiconductor supply-chain issues and raising prices have given further challenges and effort to keep all wheels turning efficiently. The flexibility of the Rovsing team and an active business continuation plan, remain a significant factor in driving mitigations to the pandemic situation and associated challenges.
Management continues to monitor the situation and take appropriate actions to minimize any potential business impacts moving forward.
Outlook for 2021/22
Based on the H1 2021/22 performance, with the delayed Customer inputs, it is expected that the Company can recover the lost performance during H2, given no further delays. The outlook for 2021/22 is maintained with a revenue in the range of DKK 34 to 36 million, and an EBITDA in the range of DKK 3,5 to 4,5 million.
EVENTS AFTER THE REPORTING PERIOD
After the balance sheet date, no events have occurred that materially affect the Company's financial position.
9
MANAGEMENT STATEMENT
The Board of Directors and the Executive Management have today discussed and approved the interim report for Rovsing A/S for the period 1 July – 31 December 2021.
The interim report, which has neither been audited nor reviewed by the company’s auditor, has been prepared in accordance with IAS 34, “Interim Financial Reporting”, as adopted by the EU and in line with additional Danish interim reporting requirements for listed companies.
In our opinion, the financial statements give a true and fair view of Rovsing A/S’ assets, liabilities and financial position as at 31 December 2021 and of the results of the company’s operations and cash flow for the period 1 July – 31 December 2021.
Further, in our opinion, the management review gives a true and fair review of the development in the company’s operations and financial matters, the result of the company’s operations for the period and the financial position as a whole as well as a description of the principal risks and uncertainties that the company faces.
Glostrup, 21 February 2022
Executive Management
Hjalti Pall Thorvardarson (CEO)
Sigurd Hundrup (CFO)
Board of Directors
Michael Hove (Chairman)
Ulrich Beck
Jakob Have
10
INCOME AND COMPREHENSIVE INCOME STATEMENT
| Note | INCOME AND COMPREHENSIVE INCOME STATEMENT | 1H 2021/22 | 1H 2020/21 | Full year 2020/21 |
|---|---|---|---|---|
| DKK’ooo | ||||
| 2 | Revenue | 13,007 | 12,392 | 21,836 |
| Production costs, external | -4,002 | -3,279 | -4,966 | |
| Gross profit | 9,005 | 9,113 | 16,869 | |
| Other external expenses | -980 | -1,009 | -2,112 | |
| Staff costs | -7,390 | -7,073 | -15,620 | |
| Operating profit before depreciation and amortisation (EBITDA) | 635 | 1,031 | -863 | |
| Depreciation, amortisation and impairment | -955 | -2,189 | -4,459 | |
| Operating profit/loss (EBIT) | -320 | -1,158 | -5,322 | |
| Financial income | 21 | 6 | 7 | |
| Financial expenses | -514 | -408 | -1,195 | |
| Profit/loss before tax | -813 | -1,560 | -6,510 | |
| Tax on profit/loss for the year | 0 | -57 | -300 | |
| Net profit | -813 | -1,617 | -6,810 | |
| Comprehensive income | -813 | -1,617 | -6,810 | |
| Allocation of profit/loss: | ||||
| Shareholders of Rovsing A/S | -813 | -1,617 | -6,810 | |
| Retained earnings | -813 | -1,617 | -6,810 | |
| Earnings per share | ||||
| 3 | Earnings per share (EPS Basic) | -1,7 | -3,5 | -7,3 |
| Earnings per share (EPS-D) | -1,5 | -3,1 | -6,5 |
BALANCE SHEET
Note BALANCE SHEET, ASSETS
| 31/12/2021 | 31/12/2020 | 30/6 2021 | ||
|---|---|---|---|---|
| DKK'ooo | ||||
| Non-current assets | ||||
| Intangible assets | ||||
| 5 | Completed development projects | 10,494 | 12,003 | 10,832 |
| Patents and licenses | 0 | 656 | 0 | |
| 5 | Development projects in progress | 266 | 161 | 90 |
| 10,760 | 12,820 | 10,922 | ||
| Property, plant and equipment | ||||
| 6 | Other fixtures and fittings, tools and equipment | 1,130 | 0 | 0 |
| Right-of-Use assets | 2,455 | 1,432 | 913 | |
| 3,585 | 1,432 | 913 | ||
| Other non-current assets | ||||
| Tax | 75 | 0 | 75 | |
| Deferred tax | 2,143 | 2,143 | 2,143 | |
| 2,218 | 2,143 | 2,218 | ||
| Total non-current assets | 16,563 | 16,395 | 14,053 | |
| Current assets | ||||
| Inventories | 3,106 | 2,531 | 2,396 | |
| Trade receivables | 6,800 | 3,303 | 4,630 | |
| Contract work in progress | 2,819 | 3,274 | 2,737 | |
| Tax | 0 | 0 | 0 | |
| Other receivables | 14 | 36 | 906 | |
| Prepaid expenses | 85 | 113 | 154 | |
| Cash | 255 | 276 | 256 | |
| Total current assets | 13,079 | 9,533 | 11,079 | |
| TOTAL ASSETS | 29,642 | 25,928 | 25,132 |
BALANCE SHEET
Note BALANCE SHEET, EQUITY AND LIABILITIES
| 31/12/2021 | 31/12/2020 | 30/6 2021 | |
|---|---|---|---|
| DKK’ooo | |||
| Equity | |||
| Share capital | 23,662 | 22,894 | 23,568 |
| Reserves for development costs | 2,730 | 3,283 | 2,892 |
| Retained earnings | -17,550 | -16,371 | -16,884 |
| Total equity | 8,842 | 9,806 | 9,576 |
| Non current liabilities | |||
| Bond loans | 4,200 | 4,200 | 4,200 |
| Lease liabilities | 1,800 | 430 | 487 |
| Total non current liabilities | 6,000 | 4,630 | 4,687 |
| Current liabilities | |||
| Credit institutions | 3,864 | 4,082 | 3,181 |
| Lease liabilities | 657 | 792 | 393 |
| Prepayments, customers | 4,585 | 2,051 | 1,014 |
| Trade payables | 22 | 278 | 623 |
| Other payables | 5,672 | 4,289 | 5,658 |
| Total current liabilities | 14,800 | 11,492 | 10,869 |
| Total liabilities | 20,800 | 16,122 | 15,556 |
| TOTAL EQUITY AND LIABILITIES | 29,642 | 25,928 | 25,132 |
13
STATEMENT OF CHANGES IN EQUITY
| Note | STATEMENT OF CHANGES IN EQUITY | |||
|---|---|---|---|---|
| DKK'000 | ||||
| 2020/21 | SHARE CAPITAL | RESERVES FOR DEVELOPMENT COSTS | RETAINED EARNINGS | TOTAL |
| Equity at 1 July 2020 | 22,894 | 3,040 | -14,511 | 11,423 |
| Comprehensive income for the period | ||||
| Comprehensive income | 0 | 0 | -1,617 | -1,617 |
| Transferred between reserves | 0 | 243 | -243 | 0 |
| Total comprehensive income for the period | 0 | 243 | -1,860 | -1,617 |
| Equity at 31 December 2020 | 22,894 | 3,283 | -16,371 | 9,806 |
| 2021/22 | SHARE CAPITAL | RESERVES FOR DEVELOPMENT COSTS | RETAINED EARNINGS | TOTAL |
| Equity at 1 July 2021 | 23,568 | 2,892 | -16,884 | 9,576 |
| Comprehensive income for the period | ||||
| Comprehensive income | -813 | -813 | ||
| Transferred between reserves | -162 | 162 | 0 | |
| Total comprehensive income for the period | 0 | -162 | -651 | -813 |
| Other transactions | ||||
| Capital increase | 94 | 94 | ||
| Costs capital increase | -15 | -15 | ||
| Total transactions with owners | 94 | 0 | -15 | 79 |
| Equity at 31 December 2021 | 23,662 | 2,730 | -17,550 | 8,842 |
14
CASH FLOW STATEMENT
| Note | CASH FLOW STATEMENT | 1H
2021/22 | 1H
2020/21 | Full year
2020/21 |
| --- | --- | --- | --- | --- |
| DKK'ooo | | | | |
| Profit/loss for the year | | -813 | -1,617 | -3,398 |
| Adjustment for non-cash operating items etc.: | | | | |
| Depreciation, amortisation and impairment | | 955 | 2,189 | 5,011 |
| Financial income | | -21 | -6 | -8 |
| Financial expenses | | 514 | 409 | 926 |
| Tax on profit/loss for the year | | 0 | 57 | -17 |
| Cash flows from operations before changes in working capital | | 635 | 1,032 | 2,514 |
| Change in working capital | | 999 | -1,493 | -2,182 |
| Cash flow from operations | | 1,634 | -461 | 332 |
| Interest receivable | | 21 | 6 | 8 |
| Interest payable | | -514 | -409 | -926 |
| Tax reimbursement | | 0 | 236 | 0 |
| Cash flow from operating activities | | 1,141 | -628 | -586 |
| Acquisition of intangible assets | | -176 | -160 | -429 |
| Acquisition of tangible assets | | -1,217 | 0 | 0 |
| Cash flow from investing activities | | -1,393 | -160 | -429 |
| New bond loans and debt with credit institutions | | 682 | 1,657 | 4,956 |
| Repayment of bond loan | | 0 | 0 | -4,200 |
| Principal paid on lease | | -508 | -861 | -1,340 |
| Other debt | | 0 | 0 | 35 |
| Capital increase | | 95 | -0 | 1,575 |
| Costs emission | | -15 | -0 | -24 |
| Cash flow from financing activities | | 254 | 796 | 1,002 |
| Net cash flow for the period | | 2 | 8 | -13 |
| Cash, beginning of year | | 256 | 268 | 268 |
| Cash, end of period | | 258 | 276 | 256 |
15
NOTES
1 ACCOUNTING POLICIES
The interim report has been prepared in accordance with IAS 34, Interim financial reporting, as adopted by the EU and further Danish disclosure requirements in respect of interim reports for listed companies.
The accounting policies used for the interim report is the same as used for the Annual Report 2020/21, except for a change in the amortisation period of the Company's completed development projects. As a result of a reassessment of the expected economic life of the Company's completed development projects, the amortisation period has been extended, which results in a reduced amortization of approx. DKK 1,1 million in H1 2021/22 compared to the H1 of 2020/21.
Due to rounding, numbers presented throughout this report may not add up precisely to the totals.
The interim report is presented in DKK thousands (DKK '000).
For further details regarding accounting policies, we refer to the Annual Report 2020/21.
New standards, interpretations and amendments adopted
Rovsing has implemented all new and amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which are effective for the financial year beginning on 1 July 2021. The implementation of these new or amended standards and interpretations had no material impact on the financial statements.
The half-year report is prepared in DKK.
16
2 REVENUE
| 1H 2021/22 | 1H 2020/21 | |
|---|---|---|
| DKK’ooo | ||
| Developed products and systems | 10,879 | 5,906 |
| Software Verifications (ISVV) | 357 | 380 |
| On-site Engineering Services | 1,771 | 3,140 |
| 13,007 | 9,426 |
GEOGRAPHIC MARKETS
| DKK’ooo | ||
| EU | 10,361 | 10,591 |
| UK | 2,400 | 0 |
| Outside Europe | 246 | 1,801 |
| 13,007 | 12,392 |
Revenue from three customers were in the interval from 11%-33% of the total revenue in 2021/22. In 2020/21 revenue from three customers were in the interval of 10%-33% of the total revenue in 2020/21.
Revenue from products, systems and services is recognised over time, using the cost-to-cost method.
The majority of the projects are sold as fixed price contracts and revenue from projects is usually recognised over time; applying the percentage of completion cost-to-cost method. A project contract will often entitle us to receive a down payment from the customer, followed by several milestone payments linked to a milestone progress plan. Upon completion and customer acceptance we will usually be entitled to the final payment.
17
3 SEASON
The company’s activities have not been affected by any season in the period.
| 4 EARNINGS PER SHARE | H1
2021/22 | H1
2020/21 |
| --- | --- | --- |
| DKK’ooo | | |
| Profit/loss for the year | -813 | -1,617 |
| Average number of issued shares (1,000) | 470 | 457 |
| Earnings per share, (EPS Basic), of DKK 50 each (H1 2019/20 DKK 0,05 each) | -1,73 | -3,54 |
Rovsing holds 1,259 shares of the Company's own shares.
5 INTANGIBLE ASSETS
The company has during the period 1 July - 31. December 2021 incurred costs for intangible assets for DKK 0,2 million. As described in the management's report in the 2020/21 annual report, future earnings are related to product development projects. Earnings size and timely realization is subject to uncertainty. Impairment test for intangible assets will be carried out per 30 June 2022, after completion of budgets, etc. for the next 3 years period. See also the section "Risk factors" in the annual report 2020/21.
18
6 RIGHT OF USE ASSETS
| Rent facility | Equipment | Car leasing | Total | |
|---|---|---|---|---|
| DKK’000 | ||||
| Right-of-use as of 1 July 2020 | 151 | 360 | 402 | 913 |
| Additions | 2,071 | 2,071 | ||
| Depreciations | -404 | -65 | -60 | -529 |
| Right-of-use as of 31 December 2021 | 1,818 | 295 | 342 | 2,455 |
| Lease liabilities | ||||
| --- | --- | |||
| DKK’000 | 31-12-2021 | |||
| Non current | 1,800 | |||
| Current | 657 | |||
| Lease liabilities | 2,457 | |||
| Amounts included in the income statement | ||||
| --- | --- | |||
| DKK’000 | 31-12-2021 | |||
| Interest expense leases | 53 | |||
| Depreciation recognised on Right-of-use assets | 529 |
7 CONTINGENT ASSETS AND LIABILITIES
The Company has co-funded development projects with ESA. A co-financing obligation in the agreements entered into with ESA, the Company itself holds about 25% - 50% of the estimated costs.
19
8 TRANSACTIONS BETWEEN PARTNERS AND RELATED PARTIES
The company has no related parties or partners with a controlling influence.
The company has registered the following shareholders as holding 5% or more of the share capital:
- 6,63 %, Catpen A/S
- 5,45 %, Jean Marcel Dühring
The company’s related parties include also the board of directors and management.
9 EVENTS AFTER THE 31 DECEMBER 2021
The company knows of no events or issues after 31 December 2021 that has a substantial influence on the financial position of the company.
20
DEFINITION OF RATIOS
Ratio
No. of shares, end of period
Cash flow per share (DKK)
EBITDA margin (profit margin before depreciation and amortisation) (%)
EBIT margin (profit margin) (%)
Equity ratio
Return on equity (%)
Average no. of outstanding shares (1,000)
Net asset value per share (DKK)
Payout ratio (%)
Earnings per share (DKK)
Solvency ratio (%)
Dividend per share of DKK 50
Explanation
The total number of outstanding shares at any given time, exclusive of the Company's treasury shares.
Cash flows from operating activities divided by average number of shares.
Earnings before interest, tax depreciation and amortisation as a percentage of revenue.
Earnings before interest and tax as a percentage of revenue.
Equity, end of year, as a percentage of total assets.
Profit/loss for the year after tax divided by average equity.
Average number of outstanding shares at any given time.
Equity at year-end divided by number of shares at year-end.
Total dividends distributed divided by profit/loss for the year.
The Company's share of profit/loss for the year divided by average no. of shares.
Traditional way of expressing the Company's financial strength.
Dividend payment in Danish kroner per share.
GLOSSARY
| Term | Explanation |
|---|---|
| Application | Specific use of a product |
| Airbus Defense & Space | French, German, British and Spanish company operating in the defense, space and telecommunications industry |
| Check-out system | System for testing and controlling a satellite or instrument |
| DSTE | Digital Simulation & Test Equipment |
| ESA | The European Space Agency |
| ESTEC | European Space Research and Technology Centre |
| Copernicus | Earth Observation Satellite programme under EU |
| Galileo | European satellite navigation system |
| Industrial collaboration agreement | Agreement signed by non-Danish suppliers of defense material to Denmark with the Danish Enterprise and Construction Agency to ensure that the supplier undertakes in return to acquire defense material manufactured by Danish companies. |
| ISVV (Independent Software Verification & Validation) | Independent verification and validation of software |
| Kick-Off | Kick-Off meeting to start up a project |
| Command control system | Guidance system |
| Critical software | Software, the failure or breakdown of which may cause loss of life, loss of spacecraft or loss of performance of the planned task, or software for which error rectification may prove very costly. |
| MPCV | Multi-Purpose Crew Vehicle |
| Outsourcing | The outsourcing of part of or a whole assignment with a subcontractor |
| Prime Contractor | The company with the main responsibility for carrying out a major ESA project |
| Project manager | Person in charge of carrying out a project |
| Thales Alenia Space | European space and defense industry company |
| EGSE | Electrical Ground Support Equipment |
| Power SCOE | Special Checkout Equipment for testing satellite power systems |
| SAS | Solar Array Simulator |
| SLP | Second Level Protection |
| MASC | Measurement, Acquisition, Simulation & Commanding |
| MetOp-SG | Meteorological Operational Satellite - Second Generation |
22
Rovsing A/S
Ejby Industrivej 34-38
2600 Glostrup, Denmark
Company reg. (CVR) no. 16 13 90 84
Tel: +45 +45 44 200 800
Fax: (+45) 45 44 200 801
Website: www.rovsing.dk