Gabriel_Annual_Report_2024-25 - Flipbook - Page 97
CONTENTS // CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS // NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS
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Management assessed the Group’s recognised tax assets based on expected future earnings in the countries to which the tax assets
relate. For recent losses, it also assessed whether there was a convincing basis for recognising the deferred tax assets. It concluded on
the basis of budgets and projections of budgets that the recognised deferred tax assets can be used within four to five years. We refer
to note 19.
Transactions with Group companies, major shareholders, Board of Directors and Executive Board
The parent company’s related parties comprise subsidiaries and joint ventures, their Boards of Directors and Executive Boards. Related
parties also comprise companies over which the above persons have significant influence. Gabriel Holding A/S has no related parties
exercising control.
The uncertainty of estimates of inventories is connected to write-downs to net realisable value. The need for write-downs is deemed
to be unchanged and assessment is still based on the development within colour and product combinations and associated raw
materials and consumables. Write-downs on inventories follow the Group's practice for write-downs, which includes an assessment
of the inventory turnover ratio and possible losses as a result of obsolescence, quality problems and economic conditions. Inventory
write-down in continuing operations was tDKK 2.035 at 30 September 2025, compared to tDKK 2.551 last year.
The parent company is jointly taxed with other Danish companies in the Gabriel Holding Group, which means that the parent company is liable for Danish corporation and withholding taxes etc. within the joint taxation unit.
PARENT COMPANY
tDKK
Administration fee from subsidiaries
Interest expenses to subsidiaries
Rent to subsidiaries
Dividends from subsidiaries
2024/25
11,340
-1,347
-374
15,097
2023/24
11,340
-3,242
-371
17,196
Development projects in progress are impairment-tested at least once a year. Development projects are projects based on future
expectations for fashion, colours and design, and the test is thus based on future expectations for customer and market demands.
Innovation projects are established for the purpose of identifying new products within associated business areas. These circumstances
form the basis for management's estimates of the recoverable amount of the ongoing development and innovation projects in the
form of expected future net cash flows including costs of completion.
Transactions with subsidiaries were eliminated in the consolidated financial statements in accordance with the accounting policy.
The related parties include a joint venture over which Gabriel exercises joint control. Trading with the joint venture business UAB Scandye comprised the following:
Judgments in applying accounting policies
In the application of accounting policies, management made no special judgments of major significance to the financial reporting.
CONSOLIDATED
tDKK
Purchases from joint venture
2024/25
35,320
2023/24
42,122
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Subsequent events
No events of significance to the 2024/25 financial statements have occurred since the date of statement of financial position.
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Accounting policies
Gabriel Holding A/S is a limited liability company domiciled in Denmark. The financial section of the annual report for the period 1
October 2024 - 30 September 2025 comprises the consolidated financial statements for Gabriel Holding A/S and its subsidiaries (the
Group) and separate parent company financial statements.
Apart from the executives’ and directors’ remuneration disclosed in note 5, the Group and parent company carried out no transactions
with the Board of Directors, Executive Board, executive employees, major shareholders or other related parties during the year.
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Accounting estimates and judgments
The carrying amount of certain assets and liabilities is stated on the basis of management’s estimated impact of future events on the
value of these assets and liabilities at the statement of financial position date. Estimates of importance to the financial reporting mainly
concern discontinued operations. Estimates are also made when valuing goodwill and deferred tax assets, calculating write-downs for
inventory obsolescence and impairment tests on development projects.
As stated in note 9, 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 it is considered possible to realise at least the
recognised values of net assets held for sale, but this is naturally uncertain.
In the annual impairment test of goodwill for continuing operations, or when there is an indication of impairment, an estimate is made
of how the enterprise’s individual cash-generating units, to which the goodwill relates, will be able to generate sufficient positive net
cash flows to support the value of goodwill and other net assets of the unit. Estimates of future cash flows many years in the future will
be subject to some degree of uncertainty. This uncertainty is reflected in the selected discount rate. Impairment testing is described in
note 11.
The consolidated financial statements and the parent company financial statements of Gabriel Holding A/S for 2024/25 were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, and with the Danish disclosure
requirements for listed companies.
The Board of Directors and the Executive Board discussed and approved the annual report for 2024/25 of Gabriel Holding A/S on 20
November 2025. The annual report will be presented to the shareholders of Gabriel Holding A/S for approval at the annual general
meeting on 11 December 2025.
Basis for preparation
The consolidated financial statements and the parent company financial statements are presented in DKK rounded to the nearest DKK
1.000.
The accounting policies described below were applied consistently during the financial year and for the comparative figures.
Implementation of new standards and IFRICs
Gabriel Holding A/S has implemented the standards and IFRICs which entered into force for 2024/25. None of the new standards or
IFRICs is deemed to influence financial reporting for the Group or the parent company.
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