Gabriel_Annual_Report_2024-25 - Flipbook - Page 87
CONTENTS // CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS // NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS
9
Profit/loss for the year from discontinued operations
Assets held for sale
In August 2024, Gabriel announced that it intended to sell the FurnMaster business units. They were consequently accounted for as
discontinued operations in the 2023/24 annual report. The divestment was not completed in the 2024/25 financial year, mainly as a
consequence of temporary external impacts on the global M&A activity level. The identified irregularities in the Mexican unit and their
consequences naturally also influenced the outcome of the attempt to sell this unit. The FurnMaster units remain accounted for as
discontinued operations and assets held for sale in the consolidated financial statements, because management expects that a sale
can be achieved in the 2025/26 financial year.
A sale in 2025/26 through the ongoing sales process is considered probable, and estimated fair value less expected sales costs is expected to exceed carrying amount. As a result, the FurnMaster units are still presented as discontinued operations in the consolidated
financial statements and the related net assets are accounted for as assets held for sale and liabilities related to assets held for sale.
FURNMASTER
tDKK
Net revenue
Other external costs
Depreciation/amortisation and impairment losses on intangible assets and property, plant and
equipment*
Operating loss (EBIT)
Finance costs
Loss from discontinued operations before tax
Deferred tax on profit/loss for the year
Current tax on profit/loss for the year
Loss from discontinued operations after tax
2024/25
386,850
-385,848
2023/24
429,101
-422,034
-16,945
-15,849
-15,943
2,289
-13,654
-344
-3,349
-17,347
-8,782
-3,111
-11,893
508
-2,850
-14,235
-9.2
-9.2
-7.5
-7.5
Goodwill
Other intangible assets
Property, plant and equipment
Deferred tax asset
Inventories
Receivables
Cash and cash equivalents
Assets held for sale
22,981
5,502
69,997
6,683
63,667
45,819
27,715
242,364
25,053
10,005
63,609
6,540
86,960
58,874
11,739
262,780
Deferred tax
Lease commitments
Trade payables
Other payables
Liabilities related to assets held for sale
1,989
27,868
28,162
12,686
70,705
1,303
21,435
33,854
7,097
63,689
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Total cash flows from discontinued operations
18,372
-2,219
-177
15,976
-8,729
-5,573
17,568
3,266
Loss per share from discontinued operations
Loss per share from discontinued operations, diluted
Management assesses that estimated fair value less expected sales costs is not lower than carrying amount. This assessment is based
on EBITDA multiples which are supported by the results realised in 2024/25, expectations for 2025/26 and an assessment made by
external advisers.
The above assessment was supplemented by an impairment test based on a “value in use” approach, on 2025/26 budgets approved
by the Board of Directors and on projections for subsequent periods (a total of five years). Terminal value must be added to this.
Impairment testing of the cash-generating units compares recoverable amount, equivalent to the net present value of the expected
future free cash flows, with the carrying amounts of the individual cash-generating units.
The key assumptions are revenue growth, EBIT margin and discount rate. Expected revenue growth for all CGUs is generally in line
with the Group’s realised growth. Expected EBIT rates are also supported by the EBIT rates realised for comparable Group activities.
The discount rates (WACC) used to calculate net present value are after tax and reflect risk-free interest rate plus specific risks in the
individual geographical cash-flow generating units. Due to the capital structure that was assumed when computing WACC, computed
discount rate before tax is not significantly higher.
Growth equivalent to the expected inflation rate (2.5%) was recognised in the terminal period.
Management prepared sensitivity analyses for the key assumptions.
Key assumptions and sensitivities are summarised as follows for cash-generating units:
FURNMASTER
2024/25
FurnMaster (Poland/Lithuania)
Grupo RYL (Mexico)
Discount rate
(after tax)
10.8%
11.5%
Discount rate
(before tax)
11.5%
12.1%
Av. annual
revenue
growth
until terminal
period
7%
21%
Av. EBIT rate
until terminal
period
9%
2%
Sensitivity
revenue/EBIT
(minimum
index)*
87
96
Av. EBIT rate
until terminal
period
9%
6%
Sensitivity
revenue/EBIT
(minimum
index)*
88
96
FURNMASTER
2023/24
FurnMaster (Poland/Lithuania)
Grupo RYL (Mexico)
Discount rate
(after tax)
10.8%
11.6%
Discount rate
(before tax)
11.5%
12.2%
Av. annual
revenue
growth
until terminal
period
4%
30%
* The sensitivity computed for revenue/EBIT shows the minimum share of projected revenue/EBIT that must be realised to avoid
impairment charges.
* Depreciation/amortisation and impairment losses are essentially depreciation of lease assets (DKK 7.7 million), amortisation of
capitalised project costs of DKK 3.0 million and impairment write-down of the individual assets goodwill and customer contracts (DKK
2.5 million).
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