Datoselskabet af Den 20. August 2024 A/S

Beskrivelse af virksomhedens væsentligste aktiviteter

The Company's activities comprise complex sub-supplies in the form of steel components and constructions, primarily for various industries within wind, material handling, construction equipment, railways and recycling etc. Production in connection with these deliveries is supplied by the related party SIA East Metal in Latvia to East Metal Trade A/S, which is a party to the contract with the Group's customers.
In the past years, East Metal Group has expanded its market strategy by developing and expanding the Group's competencies and thus having a broader value chain, and is thus today strongly prepared for the competition.

Beskrivelse af usikkerhed ved indregning eller måling

The recognition and measurement of items in the annual report is not subject to any uncertainty.

Beskrivelse af usædvanlige forhold, der kan have påvirket indregningen eller målingen

Operations and thus the annual accounts have been affected by the continued war in Ukraine, which has led to rising costs, including energy prices, as well as challenges with the availability of raw materials and several other factors, as well as a relatively high interest rate level that affects customers' willingness to invest and thus the Group's activity. In addition, there are massive problems with the implementation of a new ERP system and a serious hacker attack, which conditions have negatively affected sales and led to large expenses for re-establishing IT systems and functionality.

Beskrivelse af udviklingen i virksomhedens aktiviteter og økonomiske forhold

The income statement for 2023 shows a loss of DKK 64,905 thousand against a loss of DKK 22,131 thousand last year, and the balance sheet at 31 December 2023 shows equity of DKK -57,182 thousand.
The Company has lost more than 50% of its registrered capital and is therefore subject to capital loss regulations. Management expects that the capital will be re-established through future earnings.
The activities are affected by lower activity levels among several customers, especially in the wind industry, in recent years due to the relatively high level of interest rates, supply uncertainty and volatile market conditions, partly due to the war between Russia and Ukraine.
The Group has focused on restructuring and streamlining the entire supply chain in 2023. Towards the end of 2023, this has led to improved customer service, better productivity and strengthened competitiveness.In 2023, the company has been severely affected by a hacker attack and massive problems with the implementation of a new ERP system. This has reduced our result quite seriously, resulting in large one-off costs and reduced sales revenues.
Management considers the results for 2023 to be unsatisfactory.
Total investments for 2023 amounts to DKK 16,986 thousand.

Omtale af betydningsfulde hændelser, som er indtruffet efter regnskabsårets afslutning

After the end of the financial year, no events have occurred that could materially affect the assessment of the company's financial position.

Beskrivelse af virksomhedens forventede udvikling

Based on the budget for 2024 a loss after tax between DKK 15-20 million is expected.
Capital resources
Based on expectations of 2024, East Metal Trade has ensured adequate cash resources to realise its objectives for the year. Refer to the description in note 2.