Karen og Poul F. Hansens Familiefond

Management's review

Development in activities and financial mattersThe Group and the Foundation obtained a profit after tax of DKK 6.3 million in 2022/23 against DKK 8.8 million in 2021/22.Profit before tax for the year is positively impacted by dividends received in the Foundation totalling DKK 5.5 million (2021/22: DKK 6.3 million) and negatively by value adjustment on securities of DKK 1.0 million (2021/22: negative DKK 6.3 million).The consolidated cash flows from operating activities for the year total DKK 8.9 million against cash flows of DKK 12.0 million last year, impacted by reduced profitability.The Group’s activity level and profit after tax in 2022/23 was lower than expected at the start of the financial year, impacted by slowdown in the building sector, increased raw material and freight costs as well as increasing costs from a number of non-recurring expenses partly offset by improved net financial items.Throughout the war, the production facilities in Ukraine have been fully operational and we have been able to ship products to our customers with limited disturbances. The Group's production facilities in Ukraine are located in the western part of the country, which has mitigated the negative impacts of the Russian invasion into Ukraine and the ongoing war. Without a dedicated effort and loyalty by the management and employees in Ukraine, operations could, nevertheless, have been severely impacted. We remain thankful for their considerable efforts.Management continues to monitor the situation closely and does what is possible to support the Ukrainian employees and their families. Based on an overall assessment of the current situation, Management expects to be able to maintain a stable local production in 2023/24. Consequently, Management has made no impairment write-down of property, plant and equipment in Ukraine at 30 June 2023.Distributions in the form of grants for the year total DKK 513 thousand (2021/22: DKK 225 thousand), which includes a grant to support the widow and children after a deceased employee at the Ukraine facility, who was killed in military action. In line with the purpose of the Foundation, a loan was extended to the operating company in Germany during the year.Proposed future distributions of DKK 513 thousand have been transferred to the distribution reserve, which then total DKK 600 thousand at 30 June 2023.The Group’s 2022/23 profit after tax was not satisfactory.Towards the end of the year, the Group established a new subsidiary in Poland with a view to investigate the potential for setting up an additional production and R&D site going forward.