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Rovsing Interim / Quarterly Report 2022
3458_rns_2023-02-21_b6af8e0d-5f8b-4679-ac01-643a24bbeea9.pdf
Interim / Quarterly Report
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1
ROVSING
INTERIM REPORT
FIRST HALF YEAR 2022 / 23
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.
Cover photo: ESA. Copenhagen by Sentinel-2.
LIST OF CONTENTS
PROFILE...2
LIST OF CONTENTS...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
-
The order backlog at 31 December 2022 was at a record high level of DKK 43,9 million (H1 2021/22 DKK 37,7 million), with an order intake in H1 of 2022/23 of DKK 24,9 million (H1 2021/22 DKK 5,9 million). The current order backlog is diverse, ranging across several different missions and customers in both institutional and commercial space. A higher number of parallel projects, with many kicked-off late in H1, provides a positive operational outlook and robustness against external factors moving forward. In order to realise the backlog, Rovsing is in the process of expanding the organization.
-
Despite strong order intake and backlog, the H1 2022/23 revenues and EBITDA have been negatively impacted by program delays, impacting the realised performance. Furthermore, supply chain prices remain volatile. The Rovsing team focuses on moving progress forward to mitigate the existing challenges. Focusing on the new programs acquired during H1, with accelerated performance to mitigate the delays on existing programmes.
-
In the first half year of 2022/23, the revenue amounted to DKK 13,4 million (2021/22: DKK 13,0 million) while the 2022/23 EBITDA amounted to DKK 0,5 million (2021/22: DKK 0,6 million).
-
Our team has supported a wide range of customers during H1 2022/23, 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 by new contracts from a diverse range of customers such as Airbus DS, Thales Alenia Space, Astroscale, EUMETSAT and Jena-Optronik in support of missions such as Mars Sample Return, ELSA-M, FLEX, CRISTAL, LSTM and ARIEL.
-
Lead times have been improved on supply chain. However, procurement prices remain dynamic. The global supply chain situation is expected to remain volatile in 2023 with the ongoing war in Ukraine. In this context, Rovsing has launched various mitigation measures to mitigate supply chain and related customer risks.
-
The H1 2022/23 performance has been impacted by customer delays. Several new projects have been kicked-off late in H1. In this context, the outlook for 2022/23 is adjusted from DKK 31 to 33 million and a positive EBITDA in the range of DKK 2,5 to 3,5 million to a revenue in the range of DKK 28 to 30 million, and an EBITDA in the range of DKK 1,0 to 2,0 million.
4
FINANCIAL HIGHLIGHTS AND RATIOS
| INCOME STATEMENT | 1H
2022/23 | 1H
2021/22 | Full year
2021/22 |
| --- | --- | --- | --- |
| DKK'000 | | | |
| Revenue | 13,444 | 13,007 | 27,009 |
| Earnings before interest, taxes, depreciation and amortisation, EBITDA | 535 | 635 | 1,147 |
| Operating profit (EBIT) | -398 | -320 | -714 |
| Financial income and expenses, net | -741 | -493 | -1,047 |
| Profit/loss for the year | -1,139 | -813 | -1,551 |
| BALANCE SHEET | | | |
| Non-current assets | 16,235 | 16,563 | 16,501 |
| Current assets | 13,189 | 13,079 | 16,016 |
| Total assets | 29,424 | 29,642 | 32,517 |
| Equity | 7,095 | 8,842 | 8,085 |
| Non-current liabilities | 3,265 | 6,000 | 5,529 |
| Current liabilities | 19,064 | 14,800 | 18,903 |
| Total equity and liabilities | 29,424 | 29,642 | 32,517 |
| CASH FLOW STATEMENT | | | |
| Cash flow from operating activities | 9,185 | 1,141 | -4,779 |
| Cash flow from investing activities | -665 | -1,393 | -2,102 |
| Cash flow from financing activities | -7,232 | 254 | 6,627 |
| Total cash flow | 1,288 | 2 | -254 |
| KEY FIGURES | | | |
| EBITDA margin, % | 4.0 | 4.9 | 4.2 |
| EBIT margin, % | -3.0 | -2.5 | -2.6 |
| Return on equity, % | -14.3 | -8.4 | -17.6 |
| Earnings per share (EPS) | -2.4 | -1.7 | -3.3 |
| Earnings per share (EPS-D) | -2.3 | -1.5 | -2.9 |
| Cash flow per share (CFPS) | 16.8 | -0.9 | -16.3 |
| Equity per share, DKK | 14.9 | 18.7 | 17.0 |
| Solvency, % | 24.1 | 29.8 | 24.9 |
| Average number of shares (1,000 shares | 472 | 470 | 472 |
| Number of shares at year-end (1,000 shares) | 475 | 472 | 472 |
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 Færch Bendtsen
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 2022/23 amounted to DKK 13,4 million compared to DKK 13,0 million in the same period last year.
Gross profit for the period amounted to DKK 9,7 million compared to DKK 10,0 million in the first half of 2021/22.
The Company's earnings before interest, tax, depreciation and amortisation (EBITDA) for the period amounted to DKK 0,5 million compared to DKK 0,6 million in the same period of the financial year 2021/22.
The net profit for the first half year amounted to DKK -1,1 million compared to DKK -0,8 million in the same period last year.
Equity as per 31 December 2022 amounted to DKK 7,1 million (31 December 2021: DKK 8,8 million).
Cash flow from operating activities for the period amounted to DKK 9,2 million compared to DKK 1,1 million in the first half year 2021/22. Net cash flow from investing activities amounted to DKK -0,7 million (2021/22: DKK -1,4 million). Cash flow from financing activities amounted to DKK -7,2 million (2021/22: DKK 0,3 million) while net cash flow for the period amounted to DKK 1,3 million (2021/22: DKK 0 million).
In November 2022 the board of directors made the decision to increase Rovsing's share capital with a nominal value of DKK 149,350 corresponding to 2,987 new shares and to issue 23,660 warrants. The new shares were subscribed by members of the board of directors, management and employees of Rovsing, and the warrants were issued to the board of directors, management and employees of Rovsing as an incentive program.
The H1 2022/23 realised revenue and EBITDA are below Management's expectations at the beginning of the running financial year. Various projects have been facing program delays which have impacted the overall performance of Roving for this year. Given these challenges the Rovsing team has focused on advancing at all possible fronts and shifting efforts to accelerating newer projects as they have been acquired during H1.
The order intake in the first 6 months of the financial year 2022/23 has been significantly higher compared to the order intake in H1 2021/22. Rovsing has been successful in acquiring new contracts from a diverse range of customers such as
Airbus DS, Thales Alenia Space, Astroscale, EUMETSAT and Jena-Optronik. In support of Mars Sample Return, ELSA-M, FLEX, CRISTAL, LSTM and ARIEL missions.
Order backlog remains at a high-level DKK 43,9 million, a success reflecting the efforts invested in sales and project proposals as well to a continuous increase of industry activity. The figure below shows the order backlog exclusive of ongoing service contracts.
The evolution of the order backlog is in line with expectation as 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 key level 1 suppliers of the major European Prime contractors in their efforts to capture upcoming mission within space exploration, earth observation, communication and other critical infrastructure as showcased by our H1 awarded contracts across the spectrum. The order backlog has been strengthened like the expanding expertise and industrial scope that Rovsing can deliver to its customers.
The Rovsing team concluded a successful commissioning of the first Service Module Simulator at TAS-Italy in September. The Critical Design Reviews (CDR) of the remaining G2G EGSEs was completed in October 2022. With the CDR approved and a number of CCNs in process the Rovsing team could accelerate the manufacturing,
assembly, integration and test (MAIT) work with further deliveries planned for H2.
Rovsing received an additional contract from TAS-UK on the FLEX programme for a Launch Umbilical SCOE, a follow on to the already delivered FLEX EPS SCOE. The Kick-off was performed in October, followed by the Design Review in December.
The Mars Sample Return (MSR) Earth Return Orbiter (ERO) Electrical Satellite Interface Simulator (E-SIS) for Airbus DS which had been on hold due to mission changes was resumed in October 2022 with deliveries planned in 2023.
Jena-Optronik awarded Rovsing with a contract for performing Independent SW Validation & Verification (ISVV) for their MSR-ERO Startracker, an activity kicked-off in October and expected to be finalized in 2023. This is the Company's 2nd ISVV contract related to the MSR-ERO programme as Rovsing is also performing the OBC-GNC ISVV with our partner.
In August 2022 the second Umbilical SCOE for the PLATiNO programme was delivered and commissioned for customer SITAEL S.p.A in Italy.
Further in August, Rovsing received a contract from EUMETSAT and commenced work on the Evaluation of their IVV processes and methods for supporting their future ways of working.
Airbus DS selected Rovsing to deliver the Power SCOEs as well as the Power Front-Ends for the Copernicus CRISTAL and LSTM missions. Activities were kicked-off in September and November respectively.
In November Airbus DS awarded Rovsing with the contract to deliver the ARIEL mission Satellite Interface Simulators (SIS). Following the successful kick-off the project is currently in the design phase.
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. Three MPCV-ESM PCDU EGSE have also been delivered to Leonardo in Milan. 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.
Rovsing's onsite service business in Kourou remain in place with contracts extended until the end of 2023. A tendering phase will begin in 2023 with a possibility to enter into a new 5 year contract from 2024-2028, which Rosving will actively pursue.
The North American market
No customer or trade show visits to North America were conducted during H1. However, in January/February Rovsing was represented by our CEO, Hjalti Pall Thorvardarson in the largest Space Delegation from Denmark, visiting the Houston, Texas area and engaging in dialog with academia, NASA as well as established US Space actors such as Boeing, Jacobs and Barrios as well as upcoming companies such as SpaceX, Intuitive Machines and Axium. Rovsing will continue to explore further opportunities with North American customers.
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 mission 1 which flew successfully to the moon and back during the fall 2022. Further Artemis missions are planned in the coming years with the aim of bringing humans back to the Moon. With a long-term commitment of NASA and ESA for additional ESM / Service Modules, Rovsing participates with related service agreements 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 2022/23. This can be attributed to the overall world situation where emerging markets and one-off programmes are more sensitive than programmes of more established space nations.
Product development and production
Improvements in the value chain, continuous improvements of quality and efficiency are a constant success factor to improve the Company's competitive advantage. During H1, Rovsing has ramped up its efforts on improving its product base as well as related logistics, production and testing environments. As attested by the newly obtained
8
ISO9001 certification. Benefits in workflow can be seen related to the Company's improved headquarters, also allowing for further scaling of our operations and development.
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. In H1, efforts related to product development and feature improvements in the domains of both software and hardware have increased as these are key enablers for Rovsing abilities to deliver diverse market leading system solutions to customers.
Organisation and management
By the end of December 2022, Rovsing employed a total of 25 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 2022 Michael Hove and Ulrich Beck were reelected to the Board of Directors while Jakob Færch Bendtsen was elected to replace Jakob Have.
World events
The war in Ukraine has continued to be a major disruption event affecting the global prices and financial stability. At Rovsing an active business continuity plan to address the volatile situation has been in place since the COVID-19 pandemic in order to ensure continuous evaluation of the business based on supply chain, internal resources, progress and governmental guidelines.
Management continues to monitor the situation and take appropriate actions to minimize any potential business impacts moving forward.
Outlook for 2022/23
The H1 2022/23 performance has been negatively impacted by customer delays and global volatility related to the war in Ukraine. Several new projects have been kicked-off late in H1. In this context, the outlook for 2022/23 is adjusted to a revenue in the range of DKK 28 to 30 million, and an EBITDA in the range of DKK 1,0 to 2,0 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 2022.
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 2022 and of the results of the company’s operations and cash flow for the period 1 July – 31 December 2022.
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 2023
Executive Management
Hjalti Pall Thorvardarson (CEO)
Sigurd Hundrup (CFO)
Board of Directors
Michael Hove (Chairman)
Ulrich Beck
Jakob Færch Bendtsen
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INCOME AND COMPREHENSIVE INCOME STATEMENT
| Note | INCOME AND COMPREHENSIVE INCOME STATEMENT | 1H 2022/23 | 1H 2021/22 | Full year 2021/22 |
|---|---|---|---|---|
| DKK’ooo | ||||
| 2 | Revenue | 13,444 | 13,007 | 27,009 |
| Changes in inventories and work materials used | -4,226 | -3,138 | -6,686 | |
| Work performed by the entity and capitalised | 501 | 172 | 731 | |
| Gross profit | 9,719 | 10,041 | 21,054 | |
| Other external expenses | -1,084 | -980 | -2,159 | |
| Staff costs | -8,100 | -8,426 | -17,748 | |
| Operating profit before depreciation and amortisation (EBITDA) | 535 | 635 | 1,147 | |
| Depreciation, amortisation and impairment | -933 | -955 | -1,861 | |
| Operating profit/loss (EBIT) | -398 | -320 | -714 | |
| Financial income | 29 | 21 | 44 | |
| Financial expenses | -770 | -514 | -1,091 | |
| Profit/loss before tax | -1,139 | -813 | -1,761 | |
| Tax on profit/loss for the year | 0 | 0 | 210 | |
| Net profit | -1,139 | -813 | -1,551 | |
| Comprehensive income | -1,139 | -813 | -1,551 | |
| Allocation of profit/loss and comprehensive income: | ||||
| Shareholders of Rovsing A/S | -1,139 | -813 | -1,551 | |
| Earnings per share | ||||
| 3 | Earnings per share (EPS Basic) | -2.4 | -1.7 | -3.3 |
| Earnings per share (EPS-D) | -2.3 | -1.5 | -2.9 |
BALANCE SHEET
Note BALANCE SHEET, ASSETS
| 31/12/2022 | 31/12/2021 | 30/6/2022 | ||
|---|---|---|---|---|
| DKK'ooo | ||||
| Non-current assets | ||||
| Intangible assets | ||||
| 5 | Completed development projects | 10,507 | 10,494 | 10,890 |
| 5 | Development projects in progress | 861 | 266 | 206 |
| 11,368 | 10,760 | 11,096 | ||
| Property, plant and equipment | ||||
| Property, plant and equipment | 917 | 1,130 | 1,026 | |
| 6 | Right-of-Use assets | 1,597 | 2,455 | 2,026 |
| 2,514 | 3,585 | 3,052 | ||
| Other non-current assets | ||||
| Tax | 210 | 75 | 210 | |
| Deferred tax | 2,143 | 2,143 | 2,143 | |
| 2,353 | 2,218 | 2,353 | ||
| Total non-current assets | 16,235 | 16,563 | 16,501 | |
| Current assets | ||||
| Inventories | 2,808 | 3,106 | 4,274 | |
| Trade receivables | 3,493 | 6,800 | 7,758 | |
| Contract work in progress | 4,346 | 2,819 | 2,638 | |
| Tax | 75 | 0 | 75 | |
| Other receivables | 14 | 14 | 900 | |
| Prepayments | 1,163 | 82 | 369 | |
| Cash | 1,290 | 258 | 2 | |
| Total current assets | 13,189 | 13,079 | 16,016 | |
| TOTAL ASSETS | 29,424 | 29,642 | 32,517 |
BALANCE SHEET
Note BALANCE SHEET, EQUITY AND LIABILITIES
| 31/12/2022 | 31/12/2021 | 30/6/2022 | |
|---|---|---|---|
| DKK'000 | |||
| Equity | |||
| Share capital | 23,811 | 23,662 | 23,662 |
| Reserves for development costs | 3,446 | 2,730 | 3,139 |
| Retained earnings | -20,162 | -17,550 | -18,716 |
| Total equity | 7,095 | 8,842 | 8,085 |
| Non current liabilities | |||
| Bond loans | 0 | 4,200 | 4,200 |
| VF loan | 2,500 | 0 | 0 |
| Lease liabilities | 765 | 1,800 | 1,329 |
| Total non current liabilities | 3,265 | 6,000 | 5,529 |
| Current liabilities | |||
| Credit institutions | 0 | 3,864 | 8,261 |
| Bond loans | 4,200 | 0 | 0 |
| Lease liabilities | 850 | 657 | 723 |
| VAT loan | 985 | 0 | 2,169 |
| Prepayments, customers | 9,470 | 4,585 | 3,337 |
| Trade payables | 888 | 22 | 2,289 |
| Other payables | 2,671 | 5,672 | 2,124 |
| Total current liabilities | 19,064 | 14,800 | 18,903 |
| Total liabilities | 22,329 | 20,800 | 24,432 |
| TOTAL EQUITY AND LIABILITIES | 29,424 | 29,642 | 32,517 |
STATEMENT OF CHANGES IN EQUITY
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| DKK'000
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 | 0 | 0 | -813 | -813 |
| Transferred between reserves | 0 | -162 | 162 | 0 |
| Total comprehensive income for the period | 0 | -162 | -651 | -813 |
| Other transactions | | | | |
| Capital increase | 94 | 0 | 0 | 94 |
| Costs capital increase | 0 | 0 | -15 | -15 |
| Total transactions with owners | 94 | 0 | -15 | 79 |
| Equity at 31 December 2021 | 23,662 | 2,730 | -17,550 | 8,842 |
| 2022/23 | SHARE CAPITAL | RESERVES FOR DEVELOPMENT COSTS | RETAINED EARNINGS | TOTAL |
| Equity at 1 July 2022 | 23,662 | 3,139 | -18,716 | 8,085 |
| Comprehensive income for the period | | | | |
| Comprehensive income | 0 | 0 | -1,139 | -1,139 |
| Transferred between reserves | 0 | 307 | -307 | 0 |
| Total comprehensive income for the period | 0 | 307 | -1,446 | -1,139 |
| Other transactions | | | | |
| Capital increase | 149 | 0 | 23 | 172 |
| Costs capital increase | 0 | 0 | -23 | -23 |
| Total transactions with owners | 149 | 0 | 0 | 149 |
| Equity at 31 December 2022 | 23,811 | 3,446 | -20,162 | 7,095 |
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CASH FLOW STATEMENT
| CASH FLOW STATEMENT | 1H
2022/23 | 1H
2021/22 | Full year
2021/22 |
| --- | --- | --- | --- |
| DKK'ooo | | | |
| Profit/loss for the year | -1,139 | -813 | -1,551 |
| Adjustment for non-cash operating items etc.: | | | |
| Depreciation, amortisation and impairment | 933 | 955 | 1,861 |
| Other non-cash operating items, net | 0 | 0 | -7 |
| Financial income | -29 | -21 | -44 |
| Financial expenses | 770 | 514 | 1,091 |
| Tax on profit/loss for the year | 0 | 0 | -210 |
| Cash flows from operations before changes in working capital | 535 | 635 | 1,140 |
| Change in working capital | 9,391 | 999 | -4,872 |
| Cash flow from operations | 9,926 | 1,634 | -3,732 |
| Interest receivable | 29 | 21 | 44 |
| Interest payable | -770 | -514 | -1,091 |
| Cash flow from operating activities | 9,185 | 1,141 | -4,779 |
| Acquisition of intangible assets | -655 | -176 | -851 |
| Acquisition of tangible assets | -10 | -1,217 | -1,251 |
| Cash flow from investing activities | -665 | -1,393 | -2,102 |
| Debt with credit institutions | -8,260 | 682 | 5,080 |
| VF loan | 2,500 | 0 | 0 |
| Principal paid on lease | -438 | -508 | -683 |
| Other debt | -1,184 | 0 | 2,169 |
| Capital increase, net proceeds from issue | 173 | 95 | 95 |
| Costs emission | -23 | -15 | -34 |
| Cash flow from financing activities | -7,232 | 254 | 6,627 |
| Net cash flow for the period | 1,288 | 2 | -254 |
| Cash, beginning of year | 2 | 256 | 256 |
| Cash, end of period | 1,290 | 258 | 2 |
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 2021/22.
Comparative figures for the interim report 2021/22 have been adjusted in relation to the way Gross profit now is presented.
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 2021/22.
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 2022. 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.
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2 REVENUE
| 1H 2022/23 | 1H 2021/22 | |
|---|---|---|
| DKK’ooo | ||
| Developed products and systems | 11,271 | 10,879 |
| Software Verifications (ISVV) | 914 | 357 |
| On-site Engineering Services | 1,259 | 1,771 |
| 13,444 | 13,007 |
GEOGRAPHIC MARKETS
| DKK’ooo | ||
| EU | 10,036 | 10,361 |
| UK | 3,163 | 2,400 |
| Outside Europe | 245 | 246 |
| 13,444 | 13,007 |
Revenue from products, systems and services is recognised over time, using the input 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.
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3 SEASON
The company’s activities have not been affected by any season in the period.
| 4 EARNINGS PER SHARE | H1 2022/23 | H1 2021/22 |
|---|---|---|
| DKK’ooo | ||
| Profit/loss for the year | -1,139 | -813 |
| Average number of issued shares (1,000) | 472 | 470 |
| Earnings per share, (EPS Basic), of DKK 50 each | -2.4 | -1.7 |
Rovsing holds 1,259 shares of the Company's own shares.
5 INTANGIBLE ASSETS
The company has during the period 1 July - 31 December 2022 incurred costs for intangible assets for DKK 0,66 million. As described in the management's report in the 2021/22 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 2023, after completion of budgets, etc. for the next 3 years period. See also the section "Risk factors" in the annual report 2021/22.
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6 RIGHT OF USE ASSETS
| Rent facility | Other leases | Total | |
|---|---|---|---|
| DKK’000 | |||
| Right-of-use as of 1 July 2022 | 1,517 | 509 | 2,026 |
| Additions | 0 | 0 | 0 |
| Depreciations | -303 | -126 | -429 |
| Right-of-use as of 31 December 2022 | 1,214 | 383 | 1,597 |
| Lease liabilities | |||
| --- | --- | ||
| DKK’000 | 31-12-2022 | ||
| Non current | 765 | ||
| Current | 850 | ||
| Lease liabilities | 1,615 | ||
| Amounts included in the income statement | |||
| --- | --- | ||
| DKK’000 | 31-12-2022 | ||
| Interest expense leases | 42 | ||
| Depreciation recognised on Right-of-use assets | 429 |
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.
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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:
- 6,59 %, Catpen A/S
The company’s related parties include also the board of directors and management.
9 EVENTS AFTER THE 31 DECEMBER 2022
The company knows of no events or issues after 31 December 2022 that has a substantial influence on the financial position of the company.
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DEFINITION OF RATIOS
| Ratio | Explanation |
|---|---|
| No. of shares, end of period | The total number of outstanding shares at any given time, exclusive of the Company's treasury shares. |
| Cash flow per share (DKK) | Cash flows from operating activities divided by average number of shares. |
| EBITDA margin (profit margin before depreciation and amortisation) (%) | Earnings before interest, tax depreciation and amortisation as a percentage of revenue. |
| EBIT margin (profit margin) (%) | Earnings before interest and tax as a percentage of revenue. |
| Equity ratio | Equity, end of year, as a percentage of total assets. |
| Return on equity (%) | Profit/loss for the year after tax divided by average equity. |
| Average no. of outstanding shares (1,000) | Average number of outstanding shares at any given time. |
| Net asset value per share (DKK) | Equity at year-end divided by number of shares at year-end. |
| Earnings per share (DKK) | The Company's share of profit/loss for the year divided by average no. of shares. |
| Solvency ratio (%) | Traditional way of expressing the Company's financial strength. |
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 |
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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