Bregnerød Investeringsselskab Aps

Management's review

Development in activities and financial mattersThe income statement shows a loss of DKK 60.6 million for the Group (2021: a loss of DKK 25.3 million) and a loss of DKK 27.8 million for the Parent Company (2021: DKK a loss of DKK 26.3). The result is considered unsatisfactory and below the expectations primarily due to lower sales than anticipated in the bicycle division partly caused by the global supply chain challenges. In addition hereto the result for 2022 is negatively impacted by impairment of investment in land and buildings of DKK 21.2 million.The Groups equity on 31 December 2022 is negative with DKK 10.4 and the balance sheet amounts to DKK 175.1 million.FinancingThe main source of financing for the Parent Company is shareholder loans, credit facilities and mortgage loans from credit institutions. Group entities are primarily financed by loans from Parent Company and through working capital.On 31 December 2022 the equity of the Parent company is positive with DKK 21.7 million. During 2022 a capital increase of DKK 57 million has been completed by debt conversion. The Parent company have obtained a letter of support from its shareholder committing to provide the required financial support to the Company in 2023. As part of the letter of support the shareholder have confirmed that their receivable of DKK 75 million, of which DKK 15 million is receivable from the Parent company, will not be collected during 2023.On basis hereof the consolidated financial statements and the parent company financial statements of 2022 is prepared on basis of the going concern assumption.