Gabriel_Annual_Report_2024-25 - Flipbook - Page 96
CONTENTS // CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS // NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS
A probable change in the exchange rates at 30 September 2025 may have an impact on results and equity, because of currency
exposure at 30 September 2025. The Group also experienced major exchange rate fluctuations in the 2024/25 financial year, in
particular attributable to the USD, GBP and RMB and, if this development continues in the next financial year, the effect will be as
follows for selected, major currencies (a change in the opposite direction will have the opposite effect on profit for the year before
tax and equity). Foreign currency exposure of discontinued operations is not considered significant, and the overview below therefore
covers only continuing operations.
Risks relating to raw materials
The Group typically enters into cooperation agreements with its key suppliers to ensure reliability of delivery and to lock prices. As
indicated in note 15, Gabriel has concluded purchase agreements for raw material supplies for 2025/26. The Group is not exposed to
any major price risks arising from its use of raw materials.
Credit risks
In line with Group credit risk policy, all major customers and other business partners are regularly credit rated. Credit risk management
is based on internal credit lines for customers. The Group continues its strong focus on the approval of customer credit lines as well as
on the strengthened management and monitoring of customers. Group trade receivables are distributed across numerous customers,
countries and markets, ensuring a very broad risk diversification. On the basis of the Group’s internal credit procedures, it is judged
that the quality of the Group’s trade receivables depends primarily on the debtor’s home country. The creditworthiness of debtors from
Scandinavia and the EU is usually higher than that of debtors from other countries.
Currency exposure at 30 September 2025
Currency
USD/DKK
EUR/DKK
RMB/DKK
GBP/DKK
Net position
-4,037
-13,273
6,521
-15,626
Probable change
in exchange rate
-4%
0%
0%
-2%
Effect on profit for
the year before tax
161
0
0
313
Effect on equity
126
0
0
250
Net position
-6,518
-22,729
4,579
5,735
Probable change
in exchange rate
8%
0%
0%
2%
Effect on profit for
the year before tax
-521
0
0
109
Effect on equity
-407
0
0
87
The Group aims to reduce risk through efficient monitoring, follow-up and credit insurance of major foreign and domestic receivables
or alternative collateral. The Group’s trade receivables are usually paid no later than one to two months after delivery. The Group has
a past record of minor bad debts and is usually exposed to only a limited risk of major losses. We refer to note 16.
Currency exposure at 30 September 2024
Currency
USD/DKK
EUR/DKK
RMB/DKK
GBP/DKK
Group companies regularly assess the carrying amounts of intragroup receivables and write them down to projected net realisable
value if deemed relevant. No write-downs were made in 2024/25.
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Contingent liabilities and collateral
In 2025/26, the Group’s foreign currency exposure is expected to be essentially unchanged relative to 2024/25.
The probable change in exchange rate is based on major credit institutions’ assessment of medium-term currency trends. All other
parameters are unchanged and expected to be at the same level as in 2023/24.
PARENT COMPANY
The parent company has issued a guarantee assuming primary liability to the bankers of the subsidiary Gabriel A/S covering the
subsidiary’s current bank loans, which amounted to DKK 120 million at 30 September 2025. The parent company has issued a letter of
intent to the bankers of the subsidiary Gabriel A/S regarding solvency and leverage.
Liquidity and interest rate risks
At 30 September 2025, the Group had net cash at bank of negative DKK 199.5 million (2023/24: negative DKK 275.6 million). The Group’s
total line of credit amounted to DKK 465 million at 30 September 2025 (2023/24: DKK 465 million). Given the past record of undrawn
lines of credit, the reduction of current liabilities in the financial year and the expectations for continued strong cash flows, Gabriel
subsequently chose to reduce its lines of credit to DKK 390 million at 2 October 2025. It is assessed that there will still be undrawn
credit facilities in the coming year. In management’s opinion, the Group will be able to manage even major departures from the cash
forecast.
The parent company is jointly taxed with other Danish companies in the Gabriel Holding Group. In its capacity as the administrative
company, the parent company has unlimited joint and several liability with the other companies in the joint taxation unit for Danish
corporation taxes and withholding taxes on dividends and interest within the joint taxation unit. Any subsequent corrections to corporation and withholding taxes could result in a change in the amount of the company’s liability.
The Group’s primary banking agreement is non-committed and renegotiated annually. Based on the Group’s development and
expectations for the future (with and without continuing operations), management expects that the agreement will be renewed during
the coming year. This assumption is supported by the Group’s past record and dialogue with credit institutions.
CONSOLIDATED
Land and buildings have been provided as collateral for mortgage debt to the mortgage lender. The carrying amount of land and
buildings was tDKK 78.423 at 30 September 2025 (30 September 2024: tDKK 79.164), while mortgage debt to mortgage lender was
tDKK 33.732 (30 September 2024: tDKK 36.383). Land and buildings have been provided as collateral for the mortgage debt relating to
Gabriel Ejendomme A/S. The carrying amount was tDKK 78.423 (30 September 2024: tDKK 79.413).
The Group also has a few pending or potential claims or legal actions which cannot significantly affect its financial position.
Covenants regarding solvency and financial leverage apply to a portion of the Group’s credit facility (which is for DKK 120 million).
These covenants were not breached in the financial year and, based on the 2025/26 budget, management expects that the Group will
also comply with them in future financial years.
Based on the Group’s present credit facilities, management deems that there will be adequate liquidity to ensure the ongoing financing of future operations and investments.
Mortgage loans are also taken out with mortgage lenders. The loans are in DKK and at fixed and floating rates of interest. Finance
leasing agreements for vehicles and machinery were drawn up: in DKK with a floating interest rate; in EUR with a fixed interest rate;
and in USD with a fixed interest rate. The agreements have terms of one to four years.
Amounts owed by the Group to credit institutions have floating interest rates in line with market indices plus a margin in the respective
agreements. The Group is thus especially exposed to changes in the market rates and, with the current debt, a one percentage-point
change in the market rate would result in a change of DKK 2.0 million in finance costs.
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