Oravel Vacation Homes Denmark Aps

Management's reviewFinancial highlights for the GroupDKKm2022/232021/222019/21Key figures

Development in activities and financial mattersThe loss for the period after tax amount to DKK 34.3 million.Operating profit in 2022/23 has been negatively impacted by amortization of intangible assets (goodwill, customer relations and brands) identified and valued in the PPA as at 31 March 2023. The majority of the intangible assets (including goodwill) will be amortized over 10 years for account purposes resulting in an annual amortization of DKK 124 million. The amortizations result in a negative operating profit – however, without cash flow effect and therefore the operating cash flow in the value-in-use calculation to estimate the recoverable amount is positive.The total value-in-use (recoverable amount) exceeds reported equity (carrying amount) for both group and the parent company and no impairment loss has been identified as at 31 March 2023. Going forward the significant annual amortization of intangible assets is expected to reduce the reported equity, and all other things being equal, increase the headroom in the impairment test.The revenue for 2022/23 amounts to DKK 632 million as compared to DKK 576 million in 2021/22. The revenue expectations are over-achieved because of inclusion of revenue from newly acquired entity i.e. Bornholm. But the net results ended lower than expectations, mainly because of the one-time restructuring activity which negatively impacted the results by approx. DKK 14 million. However, given that this was a one-time activity and will result in cost saving in future years, management is positive for earnings in coming years.Based on the circumstances on how the year ended Management does believe that the year's result were satisfactory.