1
ANNUAL REPORT 2022 / 23  
Rovsing A/S  
Ejby Industrivej 38  
DK-2600 Glostrup  
Phone:  
www.rovsing.dk  
info@rovsing.dk  
CVR:  
+45 44 200 800  
16 13 90 84  
 
PROFILE  
LIST OF CONTENTS  
Rovsing A/S (Rovsing) develops, manufactures and  
delivers systems for functional and electrical  
testing of spacecrafts (primarily satellites) and their  
payloads.  
PROFILE........................................................ 2  
HIGHLIGHTS OF THE YEAR........................ 3  
FINANCIAL HIGHLIGHTS AND RATIOS...... 4  
CORPORATE INFORMATION...................... 5  
MANAGEMENTS’ REVIEW........................... 6  
MANAGEMENT STATEMENT .................... 23  
INDEPENDENT AUDITOR'S REPORT....... 24  
2
Rovsing products and systems are used for testing  
of spacecraft sub-systems, including external  
communication connections and instruments.  
The Company’s products are modular and are sold  
either on a stand-alone basis or used as modules in  
system solutions, customized for the specific  
spacecraft application. In connection with the  
configuration of system solutions, third parties’  
products are also used, and software is configured  
for the individual spacecraft needs.  
INCOME AND COMPREHENSIVE INCOME  
STATEMENT ............................................... 28  
BALANCE SHEET ....................................... 29  
BALANCE SHEET ....................................... 30  
STATEMENT OF CHANGES IN EQUITY ... 31  
CASH FLOW STATEMENT......................... 33  
The products, inclusive software packages, are  
flexible and configurable, facilitating tailor-made  
customer solutions.  
OVERVIEW OF NOTES TO THE FINANCIAL  
STATEMENTS............................................. 34  
NOTES......................................................... 35  
More specifically, Rovsing offers, the following  
equipment solutions:  
DEFINITION OF RATIOS AND NON-  
FINANCIAL MEASURES............................. 40  
EXECUTIVE MANAGEMENT...................... 63  
BOARD OF DIRECTORS............................ 64  
GLOSSARY ................................................. 66  
Power & Launch EGSE (Electrical Ground  
Support Equipment)  
Payload EGSE  
Platform EGSE  
Instrument EGSE  
Avionics Test Beds  
Central Check-out Equipment  
Thermal EGSE  
Real-time Simulators  
In addition, Rovsing develops software solutions,  
including solutions based on specific customer  
specifications, and performs independent software  
verification/validation (ISVV) for critical space-  
related software developed by third parties.  
Rovsing also provides engineering support for large  
corporations in the space industry at various  
locations in Europe and in South America. For more  
than 15 years, Rovsing has been responsible for  
configuration control of ground installations at the  
European space base CSG in Kourou in French  
Guiana.  
The main customers of Rovsing are European and  
US-based space groups such as Airbus DS, Thales  
Alenia Space, OHB, Boeing, Lockheed Martin and  
their key sub-suppliers. The European Space  
Agency (ESA), NASA and various national space  
agencies are also among Rovsing’s customers.  
 
HIGHLIGHTS OF THE YEAR  
3
The financial year 2022/23 was in line with the adjusted guided expectations (Announcement no. 344),  
with a revenue amounting to DKK 28,3 million, compared to a revenue of DKK 27,0 million in 2021/22.  
The EBITDA amounts to DKK 1,0 million, compared to DKK 1,1 million in 2021/22.  
The H1 2022/23 revenues and EBITDA were negatively impacted by programme delays, impacting the  
realised performance in 2022/23. Furthermore, supply chain prices remained volatile throughout the  
financial year.  
The current order backlog is at a high level of DKK 65,7 million (2021/22 DKK 31,1 million), with an order  
intake in 2022/23 of DKK 59,5 million (2021/22 DKK 11,2 million). The current order backlog is diverse,  
ranging across several different missions and customers in both institutional, commercial and military  
space. A higher number of parallel projects, with many kicked-off late in 2022/23, provides a positive  
operational outlook and robustness against external factors moving forward.  
In order to realise the backlog, Rovsing has expanded the organization with additional resources  
towards the end of 2022/23 and will continue upscale as needed to meet expectations. Given the  
growth perspectives, the Company for the moment is exploring various options to strengthen its  
capital structure.  
Our team has supported a wide range of customers during 2022/23, delivering test- and simulation  
systems, individual products, software solutions, ISVV and on-site engineering services. The market  
position of Rovsing within the segment has been further strengthened by new contracts from a diverse  
range of customers such as Airbus DS, Thales Alenia Space, Astroscale, EUMETSAT and Jena-Optronik  
in support of missions such as CIMR, ROSE-L, CRISTAL, LSTM, Mars Sample Return, ELSA-M, FLEX,  
FORUM and ARIEL.  
Based on the strong order backlog and continued positive development in the Space Industry, the  
revenue outlook for 2022/23 is expected to be in the range of DKK 37,0 to 41,0 million, with a positive  
EBITDA in the range of DKK 3,5 to 4,5 million.  
 
FINANCIAL HIGHLIGHTS AND RATIOS  
2018/19  
2019/20  
2020/21  
2021/22  
2022/23  
INCOME STATEMENT  
DKK’000  
4
Revenue  
28,184  
21,836  
27,535  
27,009  
28,335  
Earnings before interest, taxes, depreciation and  
amortisation, EBITDA  
Operating profit (EBIT)  
Financial income and expenses, net  
Loss for the year  
341  
-2,929  
-863  
-5,322  
2,514  
-2,497  
1,147  
-714  
970  
-960  
-767  
-1,188  
-6,810  
-918  
-1,047  
-1,551  
-1,239  
-1,727  
-4,040  
-3,398  
BALANCE SHEET  
Non-current assets  
Current assets  
20,209  
14,265  
34,474  
18,560  
4,080  
17,997  
9,248  
27,245  
11,423  
386  
14,053  
11,079  
25,132  
9,576  
16,501  
16,016  
32,517  
8,085  
16,685  
16,505  
33,190  
6,622  
Total assets  
Equity  
4,687  
5,529  
2,973  
Non-current liabilities  
Current liabilities  
Total equity and liabilities  
11,834  
34,474  
15,437  
27,245  
10,869  
25,132  
18,903  
32,517  
23,595  
33,190  
CASH FLOW STATEMENT  
Cash flow from operating activities  
Cash flow from investing activities  
Cash flow from financing activities  
Total cash flow  
11  
-1,040  
1,109  
81  
5,372  
-259  
-587  
-429  
1,002  
-13  
-4,779  
-2,102  
6,627  
-254  
6,598  
-1,693  
-4,858  
47  
-5,069  
44  
KEY FIGURES  
1.2  
-10.4  
-18.0  
-0.01  
-0.01  
-0.01  
-
-4.0  
-24.4  
-28.8  
-14.9  
-13.2  
-5.7  
-
9.1  
-9.1  
-14.7  
-7.3  
-6.5  
-22.1  
-
4.2  
-2.6  
-17.6  
-3.3  
-3.3  
-16.3  
-
3.4  
-3.4  
-24.1  
-3.6  
-3.6  
-8.1  
-
EBITDA margin, %  
EBIT margin, %  
Return on equity, %  
Earnings per share (EPS)  
Earnings per share (EPS D)  
Cash flow per share (CFPS)  
Dividends per share of DKK  
Pay-out ratio, %  
-
-
-
-
-
0.04  
25.0  
41.9  
458  
458  
20.3  
38.1  
463  
471  
17.1  
24.9  
473  
473  
13.9  
20.0  
475  
476  
Equity per share, DKK  
Solvency, %  
53.8  
429,844  
457,881  
Average number of shares (1,000 shares)  
Number of shares at year-end (1,000 shares)  
Comparable figures for 2018-19 have not been restated following the implementation of IFRS 16 as Rovsing  
has chosen to use the modified retrospective transition method.  
Rovsing’s financial year is from 1 July to 30 June.  
 
CORPORATE INFORMATION  
5
The Company  
Rovsing A/S  
Ejby Industrivej 38  
2600 Glostrup, Denmark  
Phone:  
Fax:  
Website:  
+45 44 200 800  
+45 44 200 801  
www.rovsing.dk  
info@rovsing.dk  
E-mail:  
Company reg. (CVR) no.:  
Date of incorporation:  
16 13 90 84  
20 May 1992  
Municipality of registered office:  
Glostrup, Denmark  
Board of Directors  
Michael Hove (Chairman)  
Ulrich Beck  
Jakob Færch Bendtsen  
Executive Management  
Hjalti Pall Thorvardarson, CEO  
Sigurd Hundrup, CFO  
Auditors  
KPMG  
Statsautoriseret Revisionspartnerselskab  
Dampfærgevej 28  
2100 København Ø  
Annual General Meeting  
The annual general meeting will be held on 24 October 2023 at 16:00 at Ejby Industrivej 38, 2600 Glostrup,  
Denmark.  
 
MANAGEMENTS’ REVIEW  
Despite the realised revenue and EBITDA not  
meeting the expectations and prognosis leading  
into 2022/23, the development of Rovsing market  
situation, with a varied and record high order  
backlog at the end of 2022/23 is viewed as a  
testimony to a strengthened Company position  
and outlook to build further profitable growth in a  
growing space industry.  
REVENUE AND RESULTS  
6
Revenue for 2022/23 amounted to DKK 28,3  
million, which is an increase of DKK 1,3 million,  
compared to the previous financial year.  
Gross profit for the period amounted to DKK 20,7  
million compared to DKK 21,1 million in 2021/22.  
The Company’s earnings before interest, tax,  
depreciation and amortisation (EBITDA) amounted  
to DKK 1,0 million, a DKK 0,1 million reduction  
compared to the previous year.  
Revenue, last 5 years, MDKK  
45  
40  
35  
30  
25  
20  
15  
10  
5
Tax for the year was DKK -0,5 million compared to  
DKK -0,2 million previous year.  
The loss after tax was DKK -1,7 million, compared  
to DKK -1,5 million in 2022/23.  
-
2019/20  
2020/21  
2021/22  
2022-23  
2023-24 Outlook  
Equity as per 30 June 2023 amounted to DKK 6,6  
million (30 June 2022: DKK 8,1 million).  
EBITDA, last 5 years, MDKK  
6
5
4
3
2
1
Cash flow from operating activities for the period  
amounted to DKK 6,6 million compared to DKK  
-4,8 million in 2021/22. Net cash flow from  
investing activities amounted to DKK -1,7 million  
(2021/22: DKK -2,1 million). Cash flow from  
financing activities amounted to DKK -4,9 million  
(2021/22: DKK 6,6 million) while net cash flow for  
the period amounted to DKK 0 million (2021/22:  
DKK 0 million).  
-
-1  
-2  
2019/20  
2020/21  
2021/22  
2022/23  
2023/24 Outlook  
The order intake of DKK 59,5 million during 2022/23  
has been significantly higher compared to the order  
intake in 2021/22 (DKK 11,2 million). Rovsing has  
been successful in acquiring new contracts from a  
diverse range of customers such as OHB, Airbus  
DS, Thales Alenia Space, Astroscale, EUMETSAT  
and Jena-Optronik. In support of missions such as  
Mars Sample Return, ELSA-M, FLEX, CRISTAL,  
LSTM, ROSE-L, CIMR, FORUM and ARIEL.  
In November 2022 the Board of Directors made the  
decision to increase Rovsing’s share capital with a  
nominal value of DKK 149,350 corresponding to  
2,987 new shares and to issue 23,660 warrants. The  
new shares were subscribed by members of the  
Board of Directors, Management and employees of  
Rovsing, and subsequently warrants were issued to  
the Board of Directors, Management and  
employees of Rovsing as an incentive program in  
line with the mandate given at the annual General  
Assembly held in October 2022.  
DKKt  
ORDER INTAKE  
40.000  
35.000  
30.000  
25.000  
20.000  
15.000  
10.000  
5.000  
-
The realised revenue and EBITDA of DKK 28,3  
million and DKK 1,0 million, respectively were in  
line with the lower end of the adjusted guidance to  
the market announced by the Company in February  
2023 (Announcement no. 344). During H1 2022/23  
various projects faced program delays which have  
impacted the overall performance of Roving for this  
year. The Rovsing team has focused on shifting  
efforts to accelerating newer projects as they have  
been acquired during the financial year as well as  
advancing product development in order to  
accelerate introduction of new product offerings.  
H2  
H1  
H2  
H1  
H2  
H1  
H2  
2020-21 2020-21 2021-22 2021-22 2022-23 2022-23  
 
Order backlog remains at a high-level DKK 65,71  
million (2021/22 DKK 31,1 million), a success  
reflecting the efforts invested in sales and project  
proposals as well as a continuous increase of  
industry activity. The figure below shows the order  
backlog exclusive of ongoing service contracts.  
However,  
a
number of changes to the  
specifications were announced by the customer  
which required delta design and effort to be agreed  
by Contract Change Notices (CCNs). With the CDR  
approved and a number of CCNs in process the  
Rovsing team could accelerate the manufacturing,  
assembly, integration and test (MAIT) work on  
several systems. The Test Readiness Review (TRR)  
of the first Umbilical SCOE was completed in March  
2023 with delivery of the first Umbilical SCOE  
completed in June 2023. The remainder of set 1 is  
expected to be delivered before end of 2023 with  
the following 4 sets to follow in 2024-2025.  
7
ORDER BACKLOG  
DKKt  
70.000  
60.000  
50.000  
40.000  
30.000  
20.000  
10.000  
-
Rovsing received an additional contract from TAS-  
UK on the FLEX programme for a Launch Umbilical  
SCOE, a follow on to the already delivered FLEX  
EPS SCOE. The Kick-off was performed in October,  
followed by the Design Review in December 2022.  
Following the swift assembly and integration, the  
Launch Umbilical SCOE TRR was concluded  
successfully in April 2023 and following the  
acceptance test campaign the delivery to TAS-UK  
was completed in June 2023.  
H1  
H2  
H1  
H2  
H1  
H2  
H1  
H2  
12/31/19 6/30/20 12/31/20 6/30/21 12/31/21 6/30/22 12/31/22 6/30/23  
The evolution of the order backlog is in line with  
expectation as the Company maintains a strong  
competitive position in key market segments. In  
light of the high order backlog the Company has  
been strengthening the organisation in recent  
months to meet the increased activity level and  
number of active parallel customer projects.  
The Mars Sample Return (MSR) Earth Return  
Orbiter (ERO) Electrical Satellite Interface  
Simulator (E-SIS) for Airbus DS which had been on  
hold due to mission changes was resumed in  
October 2022 with design changes agreed in March  
2023. The TRR was completed in June 2023 with the  
first system delivery on track for autumn 2023.  
In line with the Company’s strategy, focus on  
growth and diversification will continue from  
increased activities in European commercial and  
military programmes as well as maintained focus  
on the USA and emerging markets, leveraging our  
core competencies.  
Jena-Optronik awarded Rovsing with a contract for  
performing Independent SW Validation  
&
OPERATIONAL REVIEW  
Verification (ISVV) for their MSR-ERO Startracker,  
an activity kicked-off in October 2022 and  
successfully finalized in May 2023. Jena-Optronik  
has awarded Rovsing with a follow up contract for  
the ISVV of the LIDAR, also for the MSR-ERO  
mission, an activity planned to start autumn 2023.  
In addition, the Company has an ISVV contract  
related to the MSR-ERO programme performing  
the OBC-GNC ISVV with our partner Critical  
Software, a contract that is expected to run until  
the end of 2024.  
The European market  
Rovsing continues to be a key player within the  
European institutional space market, holding a  
position as one of the key level 1 suppliers of the  
major European Prime contractors in their efforts  
to capture upcoming mission within space  
exploration, earth observation, communication  
and other critical infrastructure as showcased by  
our awarded contracts across the spectrum. The  
order backlog has been strengthened like the  
expanding expertise and industrial scope that  
Rovsing can deliver to its customers.  
Rovsing involvement as key contributor to the MSR  
programme for the E-SIS and multiple ISVV tasks  
showcases the capabilities and reliability of  
Rovsing on flagship ESA and NASA exploration  
programmes.  
The Rovsing team concluded  
a successful  
commissioning of the first Service Module  
Simulator at Thales Alenia Space (TAS) Italy in  
September 2022. The Critical Design Reviews  
(CDR) of the remaining Galileo Second Generation  
(G2G) EGSEs was completed in October 2022.  
In August 2022 the second Umbilical SCOE for the  
PLATiNO programme was delivered and  
1 Order back-log is defined as the remaining value  
of work in progress to be recognised as revenue in  
future periods.  
 
commissioned for customer SITAEL S.p.A in Italy.  
Rovsing will also deliver a MiniCOTE system to  
SITAEL for the PLATiNO programme.  
In November 2022, Airbus DS awarded Rovsing  
with the contract to deliver the ARIEL mission  
Satellite Interface Simulators (SIS). Following the  
kick-off of the project end of November 2022, the  
CDR was conducted in February 2023 with the  
assembly and integration of the first two sets being  
completed with a TRR in August 2023 and deliveries  
scheduled for autumn 2023.  
8
Further in August, Rovsing received a contract from  
EUMETSAT and commenced work on the  
Evaluation of their IVV processes and methods for  
supporting their future ways of working. This  
contract was successfully concluded with a final  
report and recommendations in July 2023,  
following in-depth analysis, interviews and  
workshops conducted during 2022/23.  
Astroscale UK selected Rovsing to deliver the  
Power SCOE for their upcoming ELSA-M mission,  
which will be designed and optimised to remove  
multiple satellites from Low Earth Orbit in a single  
orbital mission. The Rovsing solution for the Power  
SCOE is realized in just one rack. A successful Kick-  
off meeting was held with Astroscale in September  
2022 followed by a conclusion on the CDR in  
January 2023. The Power SCOE was fully  
assembled and integrated leading up to the TRR in  
The European Commission Copernicus programme  
provides vital data from satellites which help  
address challenges such as urbanisation, food  
security, rising sea levels, diminishing polar ice,  
natural disasters and, of course, climate change.  
Rovsing has contributed to many of the current  
suite of Sentinel satellite missions. Looking to the  
future the capabilities of the Copernicus space  
component is being enhanced by six new satellites  
(CO2M, LSTM, CHIME, ROSE-L, CIMR and  
CRISTAL), currently being developed by ESA and  
built by European industry. Rovsing has already  
secured multiple contracts and is working on 4 out  
of 6 satellites with different primes (LSTM, ROSE-  
L, CIMR and CRISTAL).  
May 2023. Following  
a
successful Factory  
Acceptance Testing (FAT) campaign the ELSA-M  
Power SCOE was delivered to Astroscale at the end  
of June 2023. From Kick-off to delivery in less than  
10 months showcasing the efficiency of Rovsing’s  
building-block approach to realizing turn-key  
systems fulfilling customer specifications.  
OHB awarded Rovsing the FORUM Platform  
Emulator SCOE. FORUM is an ESA mission which  
will measure Earth’s outgoing radiation in the far-  
infrared part of the electromagnetic spectrum that  
has never been measured from space before. The  
Platform Emulator SCOE project was kicked-off in  
January 2023 and completed the CDR milestone in  
June 2023 ahead of a planned delivery before end  
of 2023. OHB has in July 2023 awarded Rovsing  
with a 2nd FORUM contract, this time for the  
Thermal EGSE which is scheduled to be delivered  
summer of 2024.  
Rovsing was awarded the CRISTAL Boot SW  
Validation contract by TAS-F with a KO held in  
January 2023, but due to programme shift the  
Rovsing activities are shifted to pick up pace in  
autumn 2023.  
Airbus DS selected Rovsing to deliver the Power  
SCOEs as well as the Power Front-Ends for the  
Copernicus CRISTAL and LSTM missions. Activities  
were kicked-off in September and November  
respectively. For the Power Front-Ends the CDR  
was completed successfully in February 2023 and  
the TRR in June 2023. The first Power Front-End  
delivery was shipped to Airbus DS in August 2023  
and the second set is expected to ship before end  
of 2023. The CDR for the Power SCOE project was  
successfully conducted in July 2023 following the  
delivery of the CDR data-pack in June 2023. The  
Power SCOE racks are currently being assembled in  
Rovsing facilities with deliveries planned for spring  
2024 and autumn 2025 of sets 1 and 2 respectively.  
In June 2023, TAS-I awarded Rovsing with a  
contract for supplying a Power SCOE for a  
domestic European Military satellite. The kick-off  
was conducted successfully in early July 2023 with  
deliveries scheduled for spring and autumn 2024 of  
the respective two sets.  
Rovsing has continued support for the Artemis  
missions with the Orion Multi-Purpose Crew  
Vehicle (MPCV) European Service Module (ESM).  
Four Solar Array Wing Front End Equipment (SAW  
FEE) systems are deployed, two with Airbus DS in  
Bremen and Ariane Group in Les Mureaux, one with  
Lockheed Martin in Colorado for the Integrated  
Test Lab and the fourth with NASA at the Kennedy  
Space Center. Three MPCV-ESM PCDU EGSE have  
also been delivered to Leonardo in Milan. As part of  
the NASA Artemis and Lunar Gateway  
In June 2023, Rovsing and TAS-I conducted the  
successful Kick-off of the CIMR UMB/COTE SCOE  
project with deliveries scheduled for mid-2024 and  
end 2024 of the respective two sets.  
The ROSE-L Power EGSEs were awarded to  
Rovsing by TAS-I in July 2023 with delivery  
scheduled for autumn 2024.  
 
programmes, ESA has committed to providing an  
additional three ESMs. In this connection Rovsing is  
continuing to provide engineering support both  
remote & onsite as well as spare parts and possible  
upgrades.  
the target of acquiring new customers in coming  
years.  
Product development, production and strategic  
initiatives  
9
Improvements in the value chain, continuous  
improvements of quality and efficiency are a  
constant success factor to improve the Company’s  
competitive advantage. During 2022/23, Rovsing  
has ramped up its efforts on improving its product  
base as well as related logistics, production and  
testing environments.  
Rovsing´s onsite service business in Kourou remain  
in place with contracts extended until the end of  
2023. A tendering phase has been ongoing in 2023  
with a possibility to enter into a new 5-year contract  
from 2024-2028. Rosving has provided bids as part  
of a larger consortium for continuation and  
development of the service business in Kourou.  
Further tenders are expected until end of 2023 and  
Rovsing evaluates both independent and  
collaborative bids with industry partners.  
Rovsing obtained an ISO9001 certification in the  
fall of 2022 which further strengthens the  
procedural environment of the Company, ensuring  
quality and knowledge sharing. Benefits in  
workflow can be seen related to the Company’s  
improved headquarters, also allowing for a further  
scaling of our operations and development.  
The North American market  
In end of January and beginning of February 2023  
Rovsing was represented by our CEO, Hjalti Pall  
Thorvardarson in the largest Space Delegation  
from Denmark, visiting the Houston, Texas area  
and engaging in dialog with academia, NASA as  
well as established US Space actors such as Boeing,  
Jacobs and Barrios as well as upcoming companies  
such as SpaceX, Intuitive Machines and Axi0m  
Space. Rovsing will continue to explore further  
opportunities and projects with North American  
customers.  
Rovsing’s strategic roadmap focuses on achieving  
increased scalability such that our already modular  
products can better address the expanding range of  
satellite architectures. In 2022/23, efforts related to  
product development and feature improvements in  
the domains of both software and hardware have  
increased as these are key enablers for Rovsing  
abilities to deliver diverse market leading system  
solutions to customers. In line with the strategic  
roadmap Rovsing has obtained co-financing  
studies and development projects in cooperation  
with ESA during 2022/23 under the GSTP  
programme.  
As a supplier of various EGSE to the European  
Service Module (ESM) for the Orion Crew Capsule,  
Rovsing remains a vital partner for the Artemis  
mission 1 which flew successfully to the moon and  
back during the fall 2022. Further Artemis missions  
are planned in the coming years with the aim of  
bringing humans back to the Moon. With a long-  
term commitment of NASA and ESA for additional  
ESM / Service Modules, Rovsing participates with  
related service agreements for the coming years.  
During 2022/23 Rovsing has intensified efforts  
related to further opportunities, matching the  
Company’s expertise, concerning mainly Defence  
and Critical Infrastructures on Danish and European  
level to broaden the scope of business in close  
cooperation with Prime Contractors and other  
potential partners.  
The overall North American market for  
commercial, military, and civil space remains a  
growth opportunity and strategic focus for the  
Company.  
Organisation and management  
By the end of the financial year 2022/23, Rovsing  
employed a total of 25 employees, counted on a  
full-time-equivalent basis. Most employees were  
employed at the Company’s head office in  
Denmark, but the Company also has employees in  
Kourou, French Guiana, where they provide  
support and consultancy services.  
During 2022/23, the Company has provided  
quotations to Boeing for the supply of further  
Rovsing products in support of their satellite test  
facilities.  
Emerging space markets  
At the Company’s annual general meeting in  
October 2022 Michael Hove and Ulrich Beck were  
reelected to the Board of Directors while Jakob  
Færch Bendtsen was elected to replace Jakob  
Have.  
Rovsing continues to closely monitor emerging and  
ambitious space markets with their increasing  
space budgets. Sales activities and inquiries from  
emerging markets have increased slightly in  
2022/23 compared with 2021/22, a positive  
development which we continue to monitor with  
 
World events  
The war in Ukraine has continued to be a major  
disruption event affecting the global prices and  
financial stability. Rovsing does not rely on  
suppliers or partners from either Ukraine or Russia  
and is therefore not directly impacted from the  
ongoing war in Ukraine. At Rovsing an active  
business continuity plan to address the volatile  
situation has been in place since the COVID-19  
pandemic in order to ensure continuous evaluation  
of the business based on supply chain, internal  
resources, progress and governmental guidelines.  
10  
The global supply chain pressure on the electronic  
component market continued to draw focus with  
increasing price and lead-time volatility, especially  
with a tense global situation on trade and logistics,  
including China. Rovsing continues to seek ways to  
mitigate the challenging situation with our supply  
chain and customers in the current volatile  
environment.  
Management continues to monitor the situation  
and take appropriate actions to minimize any  
potential business impacts moving forward.  
The Company has utilized the governmental  
COVID-19 help packages related to delayed A-skat  
and AM-contribution and granted VAT loan.  
Repayment has been fully completed, with the last  
payment performed in April 2023.  
Incentive schemes  
Rovsing has, to a certain degree, used share-based  
incentive schemes as part of compensation  
packages for members of the Board of Directors,  
members of the management team and other staff.  
At the end of the financial year 2022/23 there were  
23,660 warrants. For additional information about  
the Company’s share-based incentive schemes,  
please see note 6 to the financial statements on  
page 45-46.  
The Board of Directors consider share-based  
incentive schemes as relevant and effective  
incentives that allow the Company to reward good  
performance, retain key persons and at the same  
time secure alignment of interests between  
managers and shareholders. Therefore, it is  
expected that share-based incentives, such as  
warrants, will be used also in the future as part of  
the compensation packages for members of the  
staff, management and members of the Board of  
Directors.  
 
flexibility to our employee’s needs. We maintain a  
high level of trust that the same flexibility flows  
back to ensure we overcome the challenges at hand  
and that the commitment to improve and grow as  
both engineers and as a Company, is a shared vision  
between the entire staff.  
ROVSING’S STRATEGY  
Rovsing has a position as a key agile high-tech SME  
in the Space & Defense Industry. Our mission is to  
provide our customers with the innovative test and  
simulations products, systems and services they  
require, for supporting their critical path, which is  
constantly challenged by the need to innovate,  
optimise and overcome internal & external  
challenges.  
11  
Strengthening our Strategic position and  
Growth  
Rovsing has built a diverse and extensive order  
backlog across several customers and missions.  
This, together with the further growing track  
record and the ongoing stable and good reputation  
provides a baseline to ensure and carry on  
expanding the Company’s competitive position in  
an evolving competitive market environment,  
driven by time-to-market, cost structure and  
quality. Rovsing continuously works on improving  
its basis of quality and competitiveness in order to  
meet and exceed the market needs.  
An Agile and Customer focused High-Tech SME  
Rovsing has a constantly expanding successful  
track record, being involved as a reliable supplier in  
almost every major European Institutional Space  
programme, looking back as well as forward  
towards new opportunities. The Company is  
positioned as a first or second tier supplier to all  
European Large-Scale Integrators (LSIs/OEMs).  
Rovsing operates as a focused technology and  
customer driven SME. Our customers from Space  
Agencies and Institutions to LSIs act in a dynamic  
and challenging high-tech environment. Rovsing  
has the expertise to provide first class products and  
services to ensure seamless performance for our  
customers critical systems and infrastructure. Our  
customers are to a large extent requirements and  
process driven and have difficulties with swiftly  
adapting and anticipating challenges. Herein lies  
Rovsing’s asset, being an agile, dynamic expert, we  
can anticipate, react and create solutions in hours  
or days which would normally bind our customers  
for weeks or months.  
Our marketplace is a rapidly growing global  
market, where the strategic importance of both  
Space and Defence systems having proven their  
importance and both current & future potential in  
the current geo-political environment. Critical  
infrastructure stretches across many domains and  
where there are critical systems there is a need for  
Rovsing’s expertise. Establishing solid and growing  
footprints beyond the European institutional  
environment by further building our foothold in  
commercial missions, as well as the institutional US  
and emerging markets remains essential together  
with developing and investing in our product and  
service portfolio with focus on a harmonized,  
scalable offerings which can support both new and  
traditional aerospace customers.  
With best-in-class services, cost-effective and  
efficient products and systems, we evoke customer  
satisfaction and trust. By continuing our R&D focus  
and anticipating the technical developments and  
challenges, which our customers face now and, in  
the years, to come, we are able to center our  
product developments at the heart of their critical  
path in test and simulation capabilities.  
Rovsing understands and acts in a way that our  
Strategic Programme must develop and increase  
the Company’s value. This requires continuous  
interaction with customers, suppliers and the  
shareholders  
and  
financial  
community.  
Management and the Board of Directors are  
committed to facilitate the reputation of trust and  
growth into the future of Rovsing.  
Skills and Expertise  
Rovsing is driven by the expertise and engagement  
of our employees, this is the core of the Company.  
Meeting our goals requires intense involvement  
and engagement from the employees. This means  
not only going the extra mile to ensure our  
customers’ satisfaction but also invoke that same  
mindset in the onboarding of new employees while  
keeping our minds open to new ideas and  
improvements arising from new dynamics.  
Rovsing’s success is based on the talent of the  
employees, and we strive to make the working  
environment agile and inclusive, providing  
 
FINANCIAL REVIEW  
amounted to DKK 1,9 million, DKK 0,8 million  
related to completed development projects of the  
EGSE Platform.  
Income statement  
Revenue amounted to DKK 28,3 million in 2022/23,  
an increase of DKK 1,3 million, on 2021/22 revenue.  
Gross profit amounted to DKK 20,7 million  
compared to DKK 21,1 million in 2021/22 and  
EBITDA amounted to DKK 1,0 million compared to  
DKK 1,1 million in 2021/22.  
12  
Deferred tax assets amounted to DKK 2,1 million  
and are unchanged compared to previous year.  
Inventories amounted to DKK 4,6 million compared  
to DKK 4,3 million in 2021/22.  
The negative development in EBITDA in 2022/23 is  
primarily driven by delayed project inputs in Q1 of  
2022/23 causing delayed progress.  
At 30 June 2023, trade receivables and contract  
work in progress combined amounted to DKK 9,3  
million, which is DKK 1,1 million lower than  
previous year.  
Other external expenses of DKK 2,4 million  
(2021/22 DKK 2,4 million) are in line with  
expectation.  
Current assets amounted to DKK 16,5 million  
compared to DKK 16,0 million in the previous year.  
Depreciation, amortisation and impairment  
amounted to DKK 1,9 million in 2022/23, against  
DKK 1,9 million in 2021/22.  
Liabilities and equity  
Equity amounted to DKK 6,6 million at 30 June  
2023, against DKK 8,1 million at 30 June 2022. The  
year-over-year change of DKK 1,5 million is mainly  
due to loss on comprehensive income of DKK 1,7  
million.  
Financial items  
Overall, net financial expenses amounted to DKK  
1,2 million compared to DKK 1,0 million in 2021/22.  
Profit/loss before tax  
Cash flow statement  
The Company recorded a loss before tax of DKK 2,2  
million in 2022/23 compared to DKK -1,8 million in  
the year before.  
Cash flow from operations:  
Total cash flow from operations were net cash 0f  
DKK 7,8 million in 2022/23, against a net cash of  
DKK -3,7 million in the preceding year.  
Tax  
Tax for the year amounted to DKK 0,5 million in  
2022/23, compared to 0,2 million in the preceding  
financial year. The tax consists of current tax  
(income) of DKK 0,5 million, which relates to  
reimbursement under section 8x of the Danish Tax  
Assessment Act (TAA). The deferred net tax asset  
amounts to DKK 2,1 million at 30 June 2023.  
Rovsing expects to be able to utilize the tax asset  
within the next five years.  
Cash flow from operating activities:  
Net interest payables were DKK -1,2 million  
compared to DKK -1,0 million in 2021/22. Cash flow  
from operating activities of DKK 6,6 million in  
2022/23 compared to DKK -4,8 million in 2021/22.  
Cash flow from investing activities:  
In 2022/23 the Company has invested DKK -1,6  
million in further development of the EGSE  
Platform (2021/22 net DKK 0,9 million).  
Profit/loss for the year and comprehensive  
income  
The Company reported a loss for 2022/23 of DKK  
1,7 million, against a loss of DKK 1,6 million in the  
preceding financial year.  
Cash flow from financing activities:  
Cash flow from financing was DKK-4,9 million vs.  
DKK 6,6 million in 2021/22. The draw on the credit  
facility in Jyske Bank decreased with DKK 4,4  
million in 2022/23 reflecting primarily an increase in  
prepayments from customers.  
Balance sheet  
Assets  
At the end of 2022/23, total assets amounted to  
DKK 33,2 million, against DKK 32,5 million at 30  
June 2022.  
Funding of the Company’s operations  
In 2022/23 Rovsing, Jyske Bank and EIFO (earlier  
Vækstfonden) agreed on an additional credit  
facility of DKK 2,5 million to support the  
investment in the Company’s inventory of own  
products and to secure working capital  
requirements to fulfill the high order back-log.  
Intangible assets amounted to DKK 12,0 million at  
30 June 2023 compared to DKK 11,1 million on 30  
June 2022. Depreciations and amortisations  
 
During 2022/23 the company issued a new warrant  
programme to replace the previous warrant  
programme, which expired in 2022/23 without any  
of the issued warrants to be exercised. The new  
warrant programme comprises 23,660 warrants to  
be vested over a period of 24 months by the Board  
of Directors, Management and employees. As part  
of the programme 2,987 new shares were issued  
with a total proceed of DKK 0,2 million.  
13  
Under the current rules for listed companies,  
Rovsing may issue new shares for up to 20% of the  
Company's existing share capital within a financial  
year. Within this framework, the size of a potential  
capital increase will be assessed relative to the  
immediate liquidity requirement, the capital  
aspects of the Company’s strategy and investor  
appetite for buying Rovsing shares.  
Should Rovsing carry out a capital increase, the  
contributed capital would be expected to be used  
partly for investing in commercial initiatives aimed  
at consolidating the Company’s growth and  
competitiveness and as a general liquidity buffer.  
Reference is made to the section on the Company’s  
risk factors on page 20, which describes risk  
associated with the Company's liquidity.  
DIVIDENDS  
The Board of Directors recommends to the annual  
general meeting that no dividend be declared in  
respect of the 2022/23 financial year.  
OUTLOOK FOR 2023/24  
Considering the above developments, the  
Company’s strategy, the current order backlog and  
the expected order intake for 2023/24  
management expects for the financial year 2023/24  
a revenue of around DKK 37 - 41 million and an  
EBITDA of around DKK 3,5 - 4,5 million.  
EVENTS AFTER THE REPORTING PERIOD  
After the balance sheet date, no events have  
occurred that materially affect the Company's  
financial position.  
SIGNIFICANT ACCOUNTING JUDGEMENTS  
AND ESTIMATION UNCERTAINTIES  
For a description of items involving significant  
judgements in applying the Companys’ accounting  
policies and estimation uncertainties related to the  
Company’s liabilities, see note 2 to the financial  
statements.  
 
SHAREHOLDER INFORMATION  
Rovsing’s shares are listed on Nasdaq OMX  
Copenhagen and traded under the abbreviation  
ROV and ISIN code DK0061152170. The Company’s  
share capital has a total nominal value of tDKK  
23,811 and is divided into 476,228 shares of DKK 50  
each. No shares carry any special rights.  
Authorities granted to the Board of Directors  
Authorities granted to the Board of Directors are  
set out in articles 5 and 6 of the articles of  
association.  
14  
The articles of association are found on the  
Company’s website www.rovsing.dk under  
”Investor relations” and ”Corporate Governance”.  
Outstanding shares  
Beginning of year  
Capital increase  
End of year  
No. of shares  
473,241  
2,987  
Financial reporting to shareholders  
476,228  
The Company publishes an Annual Report, an  
interim half year Report and interim Management  
Statements in Q1 and Q3. These reports and  
statements are published through NASDAQ OMX  
Copenhagen.  
Share price  
The highest and lowest prices of Rovsing shares in  
2022/23 were DKK 72 and 49 respectively. At the  
end of the financial year, the share price was DKK  
50. At 30 June 2023, Rovsing had a market  
capitalisation of DKK 23,6 million.  
Annual General Meeting  
The annual general meeting of Rovsing will be held  
on 24 October 2023 at 16:00 at the Company's  
premises at Ejby Industrivej 38, DK-2600 Glostrup.  
The general meeting shall be convened by the  
Board of Directors not more than five weeks and  
not less than three weeks before the general  
meeting by publication of an announcement to  
NASDAQ OMX Copenhagen, on the Company’s  
website www.rovsing.dk and by e-mail to  
shareholders recorded in the register of  
shareholders who have so requested.  
Share liquidity  
The average daily turnover in 2021/22 was 545  
shares with an average of 5 transactions per day.  
Shareholders  
Rovsing has a total of 2,753 registered shareholders  
as per 30 June 2023. 94.5 % of the shares in Rovsing  
are registered in the name of the holder.  
The table below shows the composition of  
Rovsing’s shareholders.  
Amendments to articles of association  
Shareholders  
No. of  
shares  
%
Resolutions on any amendment to the articles of  
association shall be passed by a majority of two-  
thirds of the votes cast as well as of the voting share  
capital represented at the general meeting.  
Proposals to amend the articles of association must  
be submitted in writing to the Company not later  
than six weeks before the date of the general  
meeting.  
CATPEN A/S  
Other shareholders  
Total  
31,372  
6.59  
444,856  
476,228  
93.41  
100.0  
Employee shares  
No employee shares were granted in 2022/23.  
Current Warrant scheme  
The Board of Directors is authorized to issue  
warrants for board members and/or employees.  
The Board of Directors may issue warrants with a  
nominal value up to DKK 1,183,300 in the Company,  
corresponding to 23,660 warrants of DKK 50 each.  
At 30 June 2023 all 23,660 warrants are issued  
under the current warrant programme.  
Dividend policy  
Historically, the Company has paid dividends and  
made distributions, but the Board of Directors  
presently has no plans to pay dividends or make  
distributions in the foreseeable future.  
 
Financial calendar  
Announcement no 341  
11 November 2022  
19 September 2023, publication of Annual Report  
for 2022/23.  
Interim Management Statement covering Q1  
2022/23  
15  
24 October 2023, Annual General Meeting  
regarding financial year 2022/23.  
14 November 2023, publication of Interim  
Management Statement for Q1 2023/24.  
Announcement no 340  
24 October 2022  
20 February 2024, publication of Interim Report for  
H1 2023/24.  
Minutes of General Meeting  
14 May 2024, publication of Interim Management  
Statement for Q3 2023/24.  
Announcement no 339  
20 October 2022  
17 September 2024, publication of Annual Report  
for 2023/24.  
Change in capital of large shareholder  
22 October 2024, Annual General Meeting  
regarding financial year 2023/24.  
Announcement no 338  
03 October 2022  
Issued Company Announcements  
Notice and the complete proposals for the Annual  
General Meeting of Rovsing A/S  
Announcement no 347  
15 August 2023  
Financial Calendar 2023/24  
Announcement no 337  
30 September 2022  
Announcement no 346  
Changes to the Financial Calendar 2022/23  
17 July 2023  
Change in capital of large shareholder  
Announcement no 336  
9 September 2022  
Announcement no 345  
Re-distribution of the Annual Report 2021/22 for  
the sole purpose of attaching the XHTML annual  
report  
15 May 2023  
Interim Management Statement covering Q3  
2022/23  
Announcement no 335  
9 September 2022  
Announcement no 344  
21 February 2023  
Rovsing A/S releases its Annual Report 2021/22  
Interim Management Report first half year 2022/23  
Announcement no 334  
27 July 2022  
Announcement no 343  
29 November 2022  
Financial Calendar 2022/23  
Outcome of Rovsing A/S’ issue of new shares  
Registrar  
Computershare A/S  
Kongevejen 418  
DK-2840 Holte  
Announcement no 342  
25 November 2022  
Rovsing A/S to issue new shares and to issue  
warrants  
Investor relations contacts  
Hjalti Pall Thorvardarson, CEO  
Tel: +45 53 39 18 88  
E-mail: hpt@rovsing.dk  
 
female representation once new Board members  
are appointed, no later than within 2026.  
CORPORATE GOVERNANCE  
Rovsing’s Board of Directors regularly reviews the  
Company’s corporate governance and strives to  
follow the recommendations of the Committee on  
As Rovsing employs fewer than 50 employees, the  
Company is not required to have policies for gender  
parity at the other management levels, cf. the  
Danish Financial Statements Act § 99. At 30 June  
2023, woman accounted for 15% of the total  
workforce (June 2022 17%). It is the Company’s  
goal to continuously increase the diversity of the  
workforce.  
16  
Corporate  
https://corporategovernance.dk).  
Governance.  
The Company has resolved not to follow all the  
recommendations of the Committee of Corporate  
Governance, as the Board of Directors finds it  
appropriate to organize the Company’s  
governance differently in some respects due to  
Rovsing’s specific circumstances.  
Recommendation regarding board committees  
According  
recommendations, the Board of Directors is  
recommended to establish nomination  
to  
section  
3.4.4  
of  
the  
Certain of the recommendations with which the  
Board of Directors has resolved not to comply are  
described below. For a full report on the status of  
a
committee. Due to the size of the Company, the  
Board of Directors has decided that the functions of  
a nomination committee will be undertaken by the  
Company’s Chairman in collaboration with the  
other board members.  
the  
Company’s  
compliance  
with  
the  
recommendations, please refer to the corporate  
governance report published on Rovsing’s website  
under ”Investor Relations” and ”Corporate  
Governance”.  
content/uploads/2023/09/Corporate_governance_  
2022-23.pdf  
https://rovsing.dk/wp-  
According  
recommendations, the Board of Directors is  
recommended to establish remuneration  
to  
section  
3.4.5  
of  
the  
a
Recommendation regarding election of vice-  
chairman  
committee. Due to the size of the Company, the  
Board of Directors has decided that the functions of  
a remuneration committee will be undertaken by  
the full Board of Directors as the board members  
are deemed to possess the requisite knowledge  
and experience to do so.  
According  
to  
section  
2.2.1  
of  
the  
recommendations, the Board of Directors is  
recommended to appoint a vice-chairman. Due to  
the limited size of the Company, the Board of  
Directors has not considered it necessary so far to  
appoint a vice-chairman.  
Recommendation regarding evaluation of the  
work of the Board of Directors and the Executive  
Board  
Recommendation regarding the composition  
and organization of the Board of Directors  
According  
to  
section  
3.1.2  
of  
the  
According  
to  
section  
3.5.1  
of  
the  
recommendations, the Board of Directors annually  
should discuss the Company’s activities to ensure a  
diversity relevant to the Company in its  
management levels and develops and adopt a  
diversity policy. The Chairman of the Board of  
Directors assesses in consultation with the  
Executive Board what competencies the Board of  
Directors must have and recommend suitable  
candidates for election at the General Meeting. The  
Board of Directors currently consist of three  
members, all males. Their appointment was made  
before the beginning of the financial year and there  
are no immediate plans for replacement of current  
board members.  
recommendations, the Board of Directors is  
recommended to establish an evaluation  
procedure for an annual assessment of the overall  
board and individual members. The Board’s self-  
evaluation is organised based on the numbers and  
the needs of the Company.  
Recommendation regarding remuneration in the  
form of share options  
According  
to  
section  
4.1.3  
of  
the  
recommendations, the remuneration of the Board  
of Directors should not include share options. The  
Board of Directors at Rovsing does not follow this  
recommendation as the Board of Directors are all  
participants in the Company’s incentive warrant  
programme.  
It is the goal that the underrepresented gender,  
presently female, should have at least one seat in  
the Board, equivalent to 33 pct. of the Board of  
Directors. This is however only possible whenever a  
replacement in any of the positions becomes  
relevant, and the goal is therefore presently not  
fulfilled in 2022/23. The Board will work to achieve  
 
Management and organisation  
described in more detail in note 6 to the financial  
statements.  
Rovsing has two management bodies the Board  
of Directors and the Executive Management. The  
general meeting elects the Board of Directors,  
which acts as the supreme authority of the  
Company between general meetings. The Board of  
Directors is the supervisory management body of  
the Company, which undertakes the employment  
of the Executive Management. The role of the  
Board of Directors is to supervise the Company's  
activities, development and management. The  
Executive Management is in charge of the day-to-  
day management and operation of the Company  
and must comply with the guidelines given by the  
Board of Directors.  
Internal control and risk management  
17  
Rovsing’s internal control systems and procedures  
in relation to financial reporting are to contribute to  
ensuring that the financial statements give a true  
and fair view of the Company’s financial position  
and are free from material misstatement.  
Rovsing’s Board of Directors is responsible for the  
establishment and approval of an effective internal  
control and follow-up system for purposes of the  
Company’s risk management, including relevant  
guidelines, policies and significant accounting  
principles.  
Pursuant to the Company’s articles of association,  
the Board of Directors must be composed of three  
to seven members. The Board of Directors is  
currently composed of three members, elected for  
a term of one year. The aim is for the Board of  
Directors to be composed of persons who possess  
the necessary skills for performing their duties and  
have an in-depth understanding of the Company’s  
business affairs. In this respect, the Board of  
Directors considers the following skills to be  
important: Insight into the institutional and  
commercial aerospace market, experience in  
development, manufacturing and sale of advanced  
test equipment, experience in international project  
sales and the related legal aspects, and  
management experience from a listed company.  
The Executive Management is responsible for risk  
management and maintaining an efficient control  
system, considering applicable legislation and  
other internal guidelines and procedures. Risk  
management is focused on risk identification,  
probability and impact assessment, and risk  
mitigation measures. The purpose of control  
activities is to prevent, detect and correct any  
errors or irregularities. The activities have been  
integrated in Rovsing’s accounting and reporting  
procedures. These activities include procedures for  
verification,  
authorization,  
approval,  
reconciliation, result analysis, IT application  
controls, and general IT controls.  
Detailed monthly accounting data are prepared,  
analysed and monitored at entity and Company  
level. Rovsing’s integrated IT controls and general  
controls contribute to ensuring that the financial  
statements give a true and fair view. Reporting  
instructions, including estimation and close-of-  
month procedures, are updated and implemented  
on a regular basis. Combined with other policies,  
these are available to all relevant employees.  
Any control weaknesses identified by internal  
control or external auditors are presented to the  
Board of Directors, which oversees that  
Management implements the necessary measures  
to remedy the weaknesses in a timely manner.  
The Board members’ shareholdings through  
controlled companies and/or held personally are  
set out on page 63-65.  
The remuneration of the Board of Directors for  
2022/23 was unchanged at DKK 100,000. The  
Chairman receives 200% of the basic fee.  
At the Company’s annual general meeting in  
October 2022 Michael Hove and Ulrich Beck were  
reelected to the Board of Directors while Jakob  
Færch Bendtsen was elected to replace Jakob  
Have.  
The remuneration of the Executive Management  
consists of a fixed salary and incentive programmes  
in the form of a possible cash bonus and warrants.  
The weighting of the individual remuneration  
elements is intended to support the Company's  
positive performance in the short and long term.  
The cash bonus is performance-based relative to  
the annual budget to promote the Executive  
Management’s focus on both revenue and costs.  
The vesting of warrants is based on the CEO’s and  
CFO’s employment with the Company and is  
 
The Company translates human rights principles  
into action by communicating them to employees  
and monitoring that the principles are observed,  
but due to the limited scope of its operations, the  
Company has not otherwise found it necessary to  
conduct human rights related due diligence. In  
2022/23, the result of these efforts was that no  
human rights violations were found in Rovsing. The  
Company expects to continue and where  
appropriate, expand, these efforts in the future.  
CSR, HUMAN RIGHTS AND CLIMATE  
CHANGE MITIGATION  
The following section is compiled in accordance  
with the Danish financial statements act section  
99A.  
18  
Description of Rovsing’s business model  
Operationally, the structure is that there is only one  
company that operates with a high degree of  
operational independence.  
The majority of revenue is generated in Europe and  
derives from sales of products and systems for  
functional and electrical testing of spacecrafts  
(primarily satellites) and their payloads for  
professional clients. The Company has no sales to  
individuals. The Company's activities are generally  
conducted in accordance with internationally  
recognized quality standards.  
Social and employee relations  
In Rovsing, we believe that results are created  
through people. We strive to be a responsible  
employer that ensures proper employment,  
healthy and safe working conditions and a  
motivating work environment for our employees.  
The Company translates these principles into  
action, inter alia, through the development and  
maintenance of employees' knowledge and skills,  
to ensure that the company continues to have a  
high efficiency, that innovative products and  
solutions can be produced and that the products  
manufactured are competitive in the selected  
markets. The presence of the necessary  
qualifications is ensured, among other things  
through targeted training of employees as well as  
collaboration with external partners.  
The Company’s purchasing of components  
comprises a very large number of products  
purchased from suppliers primarily in Denmark and  
Europe. The hallmark of these products is that they  
are manufactured by reputable high-quality  
technical manufacturers.  
Due to the Company’s size and short chain of  
command, the Company has decided to align  
corporate responsibility efforts with the key risks  
identified, and has no formalized KPIs on human  
The Company has identified employees not feeling  
motivated by working at Rovsing as the most  
significant social- and employee-related risk. This  
is, however, not currently the case. No social and  
employee-related violations were found in  
Rovsing.  
rights,  
social  
and  
employee  
relations,  
anticorruption and business ethics and  
environment and climate change. However, the  
Company does address corporate responsibility  
based on internationally recognized principles, as  
described below.  
As Rovsing employed 25 FTEs on average in  
2022/23, the Company has not yet found it  
necessary to establish any processes for social and  
employee-related due diligence. See also section  
on Corporate Governance on page 16 for ratios in  
compliance with the Danish Financial Statements  
Act § 99. The Company expects to continue and  
where appropriate, expand, these efforts in the  
future.  
Human Rights  
Rovsing supports and respects the international  
human rights contained in the Convention on  
Human Rights. This means, among other things,  
that the Company works to ensure equal  
opportunities regardless of gender, religion, origin  
or sexual orientation. The Company does not  
accept forced labour or child labour.  
The Company endorses employees' free choice of  
trade unions and respect their right to participate in  
collective bargaining, in accordance with applicable  
laws and standards in respective countries  
regarding working hours and wages.  
Anti-corruption and business ethics  
Over the years, we have built a reputation as a  
company that maintains a high degree of integrity  
and ethical conduct. We combat all forms of  
corruption, including bribery and facilitation  
payments, by informing our employees of our zero-  
tolerance approach to bribery and corruption.  
The Company has identified the risk of  
discrimination against employees to be the most  
significant risk in relation to human rights. This can  
affect our ability to attract and retain employees as  
well as affect our reputation.  
We have identified the risk of employees using gifts  
or other means to unduly influence a stakeholder as  
the main risk related to bribery and corruption. This  
 
may also be the case if one of our employees is  
unduly influenced by a stakeholder. Both cases  
could have consequences for our reputation.  
not shared with third-parties. New employees are  
instructed in the policy and Management regularly  
assesses whether further measures are needed.  
19  
Due to the limited scope of its operations, the  
Company has not yet found it necessary to  
establish processes for anti-bribery and corruption  
due diligence. No corruption and bribery offenses  
have been found or reported in Rovsing in 2022/23,  
and the Company plans to continue and where  
appropriate, expand, these efforts in the future.  
Environment and climate  
It is the Company’s goal to strive for a production  
that limits the climate impact through the use of  
environmentally friendly processes. This includes  
choice of materials that are as reusable as possible,  
but also that the various processes are gentle on  
the environment.  
We believe that the most significant climate- and  
environment-related risk would be if we use  
materials in our production that unnecessarily  
harm the environment. Furthermore, it can be a  
risk if our production of products has processes or  
approaches that may unduly impact the  
environment. We are aware that this risk can have  
consequences for the local environment as well as  
have consequences for our reputation.  
The Company’s climate and environment-related  
processes  
entail,  
that  
environmental  
considerations are included as part of the  
company's innovation processes and business  
strategy. During the financial year, the Company  
explored different areas of opportunity regarding  
reducing the environmental impact. Specifically,  
the Company analyzed the materials used within  
the production, in order to try and identify more  
environmentally friendly solutions. Unfortunately,  
no dedicated measurable results have been  
identified as a result of the efforts, but the  
Company expects to continue and where  
appropriate, expand, these efforts in the future.  
Data ethics  
Rovsing, is in compliance with the regulations  
related to data ethics and the processing of  
personal data. As the Company is a purely a  
business-to-business company with no link to  
processing of personal data or transactions with  
private customers. Processing of personal data is  
therefore of very limited extent for the purposes of  
administration of customers and suppliers.  
Internally for HR administration the processing of  
employee personal data follows the given  
regulations pertaining to the area. Data is not  
obtained or harvested without prior consent and  
 
RISK FACTORS  
The risk factors below are not listed in any order of  
priority according to significance or probability. It is  
not possible to quantify the significance to Rovsing  
of each individual risk factor as each of the risk  
factors mentioned below may materialise  
individually or simultaneously to a greater or lesser  
degree and have a material adverse effect on  
Rovsing’s business, operating profit and financial  
position.  
assurance of this, and the opposite scenario could  
lead to a loss of future orders and materially affect  
the Company’s future earnings and results.  
20  
Technological developments may impair the  
Company's competitiveness  
Even though the Company is not dependent on  
individual technologies or processes, technological  
developments may occur in the future which may  
impair the Company’s competitiveness, including if  
the Company's fails to maintain a certain level of  
investment in the maintenance and development  
of its current intellectual property rights or faces  
difficulty to source parts.  
RISKS RELATED TO THE COMPANY  
The Company’s earnings expectations are  
subject to considerable uncertainty  
The Company’s expectations for the future are  
based on a number of assumptions. If these  
assumptions are not met, in whole or in part, the  
Company’s future results may deviate considerably  
from the expectations, which may have a material  
adverse effect on the Company’s operations,  
results and financial position.  
Tenders may be unsuccessful  
The Company’s large customers launch a limited  
number of calls for tenders a year. The outcome of  
these tenders can have a significant impact on the  
Company’s revenue, earnings and future  
competitiveness. The outcome of such tenders  
depends on various factors which are beyond the  
Company's control, including the quality and price  
offered by the other tenderers. As there are only a  
limited number of tenders, there is a risk of losing  
more than expected or them all, which will  
materially affect the Company's future results.  
Liquidity risk  
The Company’s liquidity position has historically in  
some months been supported by Jyske Bank if  
large milestones payments have shifted.  
Management assesses that there are several  
options to ensure a sufficient liquidity position.  
Lack of contract opportunities due to fully  
allocated return quota  
Liquidity problems due to late payment by  
customers  
For each ESA programme, a ratio applies to the  
aggregate contract amount permitted in each  
participating member state. There is a risk that  
other Danish businesses are awarded large  
contracts under a programme that it can reduce  
Rovsing’s contract opportunities under that  
programme.  
As payments are linked to milestone achievement  
and acceptance, late payments by customers can  
occur from time to time due to customer internal  
process delays. Such delays may adversely affect  
the Company’s liquidity and increase the risks  
related thereto, as discussed above. Delayed  
deliveries to or approvals from customers may have  
a similar effect.  
Risk of infringement of intellectual property  
rights  
The Company is dependent on a few large  
customers  
Rovsing’s products are developed from scratch,  
despite this, there is a risk that the products will  
infringe third party rights, including patent rights.  
Such infringement may involve substantial claims  
from the rightsholders and/or cause rightsholders  
to obtain injunctions against supply of the products  
containing the infringing material, which may  
materially affect Rovsing’s results.  
Rovsing is dependent on a few large and long-  
standing customers. The European Space Agency,  
ESA (end customer), typically delegates the overall  
responsibility for a space programme to the largest  
European space companies Airbus Defense &  
Space, Thales Alenia Space or OHB (”Prime  
Contractors”) – through contracts.  
Fixed-price contracts may involve losses  
Although, when awarding a contract to a Prime  
Contractor, ESA also requires an open competitive  
process in the selection of subcontractors, it is  
crucial for the Company’s future development in  
the space industry to maintain its good relations  
with these Prime Contractors. There can be no  
Although Rovsing has switched to basing its  
deliveries on standard products, Rovsing remains a  
development business which, in some tenders,  
must prepare estimates of the resources and  
production cost required to perform the individual  
contracts. There is  
a
risk that Rovsing  
 
underestimates the (development) costs and/or the  
production cost (price of components) associated  
with existing or future projects and therefore  
cannot achieve the budgeted contribution margins  
and/or incurs losses in connection with projects.  
engineer and sales level. When entering new  
market areas, the headcount will increase with a  
resulting risk that capacity adjustment problems  
may arise.  
21  
There is a risk that the Company will not succeed in  
balancing the capacity to ensure coherence  
between the contracts concluded and availability of  
sufficient capacity in terms of both quality and  
quantity, which may affect the Company’s future  
revenue and results.  
Insufficient insurance cover  
There is no guarantee that the insurance cover  
acquired is sufficient to compensate for a loss  
arising due to a claim, including especially a product  
liability claim. The Company applies rigorous  
quality standards and assurance of its products and  
systems and strives to minimise its exposure by  
way of its general terms of sale and delivery and its  
commercial liability and product liability insurance.  
But there is no certainty that all potential situations  
could have been anticipated or agreed in such a way  
as to prevent an error from having a negative  
impact on the Company’s earnings.  
The Company is dependent on key persons  
As a knowledge-based business, the future  
development of the Company relies on  
contributions from current and future employees.  
The Company’s employees are its greatest asset.  
The Company’s ability to attract, retain and  
develop talented employees is therefore  
considered essential to the Company’s future  
activities, results and financial position.  
In addition, a loss for which the Company is liable or  
jointly liable may potentially damage the  
Company’s opportunities to enter into future  
contracts, as the Company’s business concept  
involves protecting customers against such losses.  
The Company’s development to date in respect of  
management, development and marketing has  
been driven extensively by individuals. A loss of one  
or more of these employees may have a material  
adverse effect on the Company’s business.  
However, there can be no assurance that this will  
not happen.  
Wrong assessment of market penetration time  
and demand in new markets  
Penetration of new markets involves a number of  
uncertainties not least in terms of market  
penetration time. The Company has significant  
references from the space industry but does not yet  
possess detailed knowledge of all markets as  
regards applications. Both the penetration time  
and the fact that services provided by the Company  
are often competing with internal resources of  
other companies, are subject to uncertainty. These  
factors may materially affect the Company’s future  
revenue and earnings.  
Unsatisfactory contribution margins of products  
and services may impact results  
The Company’s earnings rely strongly on its ability  
to secure satisfactory contribution margins of its  
contracts.  
The contribution margin depends on the  
Company’s ability to maintain a high level of  
expertise within its product areas and its  
possibilities for reusing product developments and  
maintaining  
a
stable cost base for the  
Trade restrictions may impact future business  
A delivery to one market, e.g. the Chinese market,  
may affect the possibilities for supplying to other  
markets, e.g. the USA. Rovsing monitors the  
evolution of the trade and political conflicts  
between both countries which are key players in  
the global space markets as well as the evolution in  
trade restrictions. Restrictions on export bonds to  
certain countries can impact the Company’s ability  
to enter into new business markets.  
manufacturing of the Company’s products. A lack  
of the same will have negative consequences.  
Capitalised development costs, product rights  
and/or tax assets may be written off  
In its annual report for 2022/23, Rovsing capitalised  
development costs of DKK 1,6 million hereafter  
totaling DKK 12,0 million. The deferred tax asset is  
DKK 2,1 million and unchanged from previous year.  
There is a risk that the products developed cannot  
be sold to the extent expected and/or that the  
Company does not generate a profit in the coming  
financial years, and that the capitalised  
development costs, product rights and/or tax asset  
will be written off in connection with future  
financial statements. Such a scenario will affect  
Rovsing’s results and balance sheet.  
Accumulation of application know-how may be  
affected by lack of recruitment  
The Company’s strategy is initially to accumulate  
market knowledge, technical skills and marketing  
skills in the global aerospace market, primarily  
through recruitment at the board, management,  
 
Exchange rate risk  
Rovsing and Danish space industry partners  
continued to push for increased contributions from  
Denmark during 2022/23 as the growth and  
development potential of the industry is largely  
linked with the contributions, whereas these also  
have a return multiplier effect of 8 (eight) for the  
Danish economy according to OECD estimates.  
This effort has borne the fruit that the current  
government has included an increase for the  
Danish contributions to the ESA budget by DKK 78  
million in 2023 and DKK 125 million in both 2024  
and 2025. This is a significant increase which will  
give positive effects for the Danish space industry.  
However, still more investment is needed should  
Denmark keep up with the development in  
surrounding EU countries we compare ourselves  
with.  
In the space industry, the Company’s contracts are  
primarily concluded in EUR or USD. As the Danish  
krone is pegged to the Euro, the exchange rate risk  
in this connection is low. However, exchange rate  
risk occurs while the Company enters into contracts  
in USD.  
22  
INDUSTRY SPECIFIC RISK  
Competitors may drive the Company out of the  
market  
The Company is competing in an ever-changing  
market with a large number of development  
businesses in Europe, including a few in Denmark.  
As the Company's customers increasingly use  
standard products, there is a risk that one or more  
competitors develop competing standard products  
which become market leading. This and/or the  
general competition from other development  
businesses may entail a substantial reduction of the  
Company’s revenue and may in that case materially  
affect the Company’s results going forward.  
Hence, there are currently no signs that Denmark is  
about to withdraw from the ESA collaboration and  
rather renewed focus on the need for a strong  
space sector to support Danish interests.  
Nor are there any signs that the geographical  
return rules will be abolished or that ESA will apply  
the return rule more arbitrarily in the future, but  
there is no guarantee of that. There is a risk that  
changed political priorities may materially affect  
the member states’ funding of ESA programmes,  
which in that case will affect the Company’s  
prospective income and have a materially adverse  
impact on results.  
Aerospace market may be affected by ESA  
membership  
The Company’s market segment mainly consists of  
the institutional European aerospace market and  
exclusively exists owing to Denmark’s ESA  
membership.  
If Denmark terminates its membership or reduces  
its contribution considerably, a very substantial  
part of Rovsing’s market will cease to exist, and this  
will have a very significant impact on the  
Company’s activities, results and financial position.  
Changes to the geographical return rules may  
affect the Company’s earnings. Lastly, stricter  
enforcement of the rules, e.g. so that the four large  
countries (France, Germany, Italy and Great  
Britain) of ESA’s 22-member states gain a larger  
portion of the contracts, will make the market  
conditions much more difficult. This also involves a  
risk to the Company’s future development in the  
European space industry.  
ESA contracts involve a process in which the  
individual companies that have submitted bids for  
the individual project are assessed, and the  
individual project participants are subsequently  
selected. A kick-off meeting is held where the  
selected project participant receives an approval to  
commence the project, but the actual contract is  
signed at a later point in time. This process involves  
a risk that the contracts are never signed and that  
only the approved part is completed. Rovsing has  
never experienced a situation where a kicked off  
contract was not completed, but there is no  
guarantee that this will not happen. In that case,  
such a process may involve substantial losses for  
the Company.  
At a meeting of ministers in November 2022,  
Denmark confirmed its continued ESA  
membership and participation in optional  
programmes for the period 2023 - 2025 for an  
aggregate amount of DKK 734 million. This  
combined with the mandatory membership fee  
brings Denmark’s contribution to ESA programmes  
to approximately DKK 245 million a year, which is  
largely unchanged on the years before.  
Warranty costs  
In connection with the development and delivery of  
Rovsing’s high-tech solutions, extensive testing is  
often conducted in collaboration with customers.  
However, there is a risk that the products contain  
defects that are not detected during testing. This  
may subsequently result in warranty costs.  
Historically, Rovsing has not incurred any  
significant warranty cost related to product  
performance.  
 
MANAGEMENT STATEMENT  
23  
The Board of Directors and the Executive Management have today considered and adopted the annual report  
of Rovsing A/S for the financial year 1 July 2022 to 30 June 2023. The financial statements have been prepared  
in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and Danish  
disclosure requirements for listed companies. The Management's review is also presented in accordance with  
Danish disclosure requirements for listed companies.  
We consider the accounting policies applied to be appropriate. Accordingly, the financial statements give a true  
and fair view of the Company’s assets, liabilities and financial position at 30 June 2023 and of the Company's  
activities and cash flows for the financial year 1 July 2022 to 30 June 2023.  
We believe that the Management’s review includes a fair review of developments in the Company’s activities  
and finances, results for the year and the Company’s financial position in general as well as a fair description of  
the principal risks and uncertainties to which the Company is exposed.  
We recommend that the annual report be approved at the Annual General Meeting.  
Glostrup, 19 September 2023  
EXECUTIVE MANAGEMENT  
Hjalti Pall Thorvardarson (CEO)  
Sigurd Hundrup (CFO)  
BOARD OF DIRECTORS  
Michael Hove (Chairman)  
Jakob Færch Bendtsen  
Ulrich Beck  
 
INDEPENDENT AUDITOR'S REPORT  
TO THE SHAREHOLDERS OF ROVSING A/S  
24  
OPINION  
In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial  
position at 30 June 2023 and of the results of the Company's operations and cash flows for the financial year 1  
July 2022 30 June 2023 in accordance with the International Financial Reporting Standards as adopted by the  
EU and additional requirements in the Danish Financial Statements Act.  
Our opinion is consistent with our long-form audit report to the Board or Directors and the Audit Committee.  
Audited financial statements  
Rovsing A/S' financial statements for the financial year 1 July 2022 30 June 2023 comprise the income  
statement, statement of comprehensive income, balance sheet, statement of changes in equity, statement of  
cash flows and notes, including summary of significant accounting policies, for the Company (the financial  
statements). The financial statements are prepared in accordance with the International Financial Reporting  
Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act.  
BASIS FOR OPINION  
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional  
requirements applicable in Denmark.  
Our responsibilities under those standards and requirements are further described in the "Auditor's  
responsibilities for the audit of the financial statements" section of our report.  
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our  
opinion.  
Independence  
We are independent of the Company in accordance with the International Ethics Standards Board for  
Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical  
requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with  
these requirements and the IESBA Code.  
We declare, to the best of our knowledge and belief, that we have not provided any prohibited non-audit  
services, as referred to in Article 5(1) of the Regulation (EU) 537/2014 and that we remained independent in  
conducting the audit.  
We were appointed auditors of Rovsing A/S for the first time on 25 October 2021 for the financial year  
2021/2022. We have been re-appointed by resolutions passed by the annual general meeting for a total  
uninterrupted engagement period of 1 year up to and including the financial year ending 30 June 2022.  
KEY AUDIT MATTERS  
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit  
of the financial statements for the 2022/23 financial year. These matters were addressed in the context of our  
audit of the financial statements as a whole, and in the forming of our opinion thereon. We do not provide a  
separate opinion on these matters.  
Key audit matters  
How our audit addressed the key audit matter  
Valuation of intangible assets  
Completed development projects represent DKK 11.8 For the purpose of our audit, the procedures we carried  
million corresponding to 35% of the Company’s assets.  
out included the following:  
Management conducts annual impairment test to  
determine whether the carrying amounts of recognised  
completed development projects are considered to be  
impaired and, hence, should be written down to the  
recoverable amount.  
We have discussed with Management and  
evaluated the internal controls and procedures for  
preparing impairment tests and the budget and  
forecasts.  
 
Management determines the recoverable amount of  
We have focused our audit on the appropriateness  
of models and the key assumptions used by  
Management to calculate the values in use and  
assessed the consistency of the assumptions  
applied to internal and external information  
obtained.  
the completed development projects using  
discounted cash flow model (value in use).  
a
Key assumptions used in the impairment test are  
increase in revenue and margin and the applied discount  
rate.  
25  
We have assessed the documentation that  
supports the key assumptions applied and  
challenged management’s use of these  
assumptions.  
The audit of the recoverable amount has been  
considered a key audit matter as the determination of  
the recoverable value is associated with significant  
estimation uncertainty.  
In addition, we have assessed whether the disclosures;  
Note 13 Intangible Assets in the financial  
statements meet the requirements of IFRS.  
Reference is made to note 13 to the financial  
statements and the accounting policies.  
Revenue recognition  
The Company delivers long term contracts, which For the purpose of our audit, the procedures we carried  
typically extend over more than one financial year. Due out included the following:  
to the nature of these contracts and in accordance with  
We have considered the appropriateness of the  
Company’s revenue recognition policy and  
assessed its compliance with IFRS 15 Revenue from  
Contracts with Customers.  
the accounting policies, the Company recognises and  
measures revenue from such long-term contracts over  
time based on the percentage of completion method.  
The percentage of completion is calculated on the basis  
of the contract costs incurred at the balance sheet date  
in relation to the estimated total cost of the contract.  
We have discussed with Management and  
evaluated the internal controls and procedures for  
the revenue recognition.  
The audit of the recognition and measurement has been  
considered a key audit matter as there is a risk that the  
estimated total costs the contract are not accurately  
estimated.  
We have discussed with Management the key  
judgements and estimates made related to the  
recognised revenue.  
We have performed retrospective reviews of  
realised contract costs to determine the historical  
accuracy of estimated total costs of the contracts.  
Reference is made to note 3 to the financial statements  
and the accounting policies.  
We have reconciled the terms in the contracts with  
customers to project calculations supporting the  
revenue recognition including contract value and  
the projected stages of completion for the  
contracts.  
We have reconciled the actual realised costs to the  
calculations of percentage of completion  
supporting the revenue recognition and the  
estimated total costs of the project to the latest  
updated projections approved by Management.  
In addition, we have assessed whether the disclosures;  
Note 3 Revenue in the financial statements meet the  
requirements of IFRS.  
STATEMENT ON THE MANAGEMENT'S REVIEW  
Management is responsible for the Management's review.  
Our opinion on the financial statements does not cover the Management's review, and we do not express any  
form of assurance conclusion thereon.  
In connection with our audit of the financial statements, our responsibility is to read the Management's review  
and, in doing so, consider whether the Management's review is materially inconsistent with the financial  
statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.  
Moreover, it is our responsibility to consider whether the Management's review provides the information  
required under the Danish Financial Statements Act.  
 
Based on the work we have performed, we conclude that the Management's review is in accordance with the  
financial statements and has been prepared in accordance with the requirements of the Danish Financial  
Statement Act. We did not identify any material misstatement of the Management's review.  
26  
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS  
Management is responsible for the preparation of financial statements that give a true and fair view in  
accordance with the International Financial Reporting Standards as adopted by the EU and additional  
requirements in the Danish Financial Statements Act and for such internal control that Management determines  
is necessary to enable the preparation of financial statements that are free from material misstatement,  
whether due to fraud or error.  
In preparing the financial statements, Management is responsible for assessing the Company's ability to  
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going  
concern basis of accounting unless Management either intends to liquidate the Company or to cease operations,  
or has no realistic alternative but to do so.  
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS  
Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free  
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our  
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in  
accordance with ISAs and the additional requirements applicable in Denmark will always detect a material  
misstatement when it exists. Misstatements may arise from fraud or error and are considered material if,  
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users  
taken on the basis of these financial statements.  
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,  
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:  
identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,  
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and  
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from  
fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions,  
misrepresentations or the override of internal control.  
obtain an understanding of internal control relevant to the audit in order to design audit procedures that are  
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the  
Company's internal control.  
evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and  
related disclosures made by Management.  
conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing  
the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists  
related to events or conditions that may cast significant doubt on the Company's ability to continue as a going  
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's  
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our  
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.  
However, future events or conditions may cause the Company to cease to continue as a going concern.  
evaluate the overall presentation, structure and contents of the financial statements, including the disclosures,  
and whether the financial statements represent the underlying transactions and events in a manner that gives  
a true and fair view.  
We communicate with those charged with governance regarding, among other matters, the planned scope and  
timing of the audit and significant audit findings, including any significant deficiencies in internal control that  
we identify during our audit.  
We also provide those charged with governance with a statement that we have complied with relevant ethical  
requirements regarding independence, and to communicate with them all relationships and other matters that  
may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate  
threats or safeguards applied.  
 
From the matters communicated to those charged with governance, we determine those matters that were of  
most significance in the audit of the financial statements of the current period and therefore the key audit  
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure  
about the matter or when, in extremely rare circumstances, we determined that a matter should not be  
communicated in our report because the adverse consequences of doing so would reasonably be expected to  
outweigh the public interest benefits of such communication.  
27  
Copenhagen, 19 September 2023  
KPMG  
Statsautoriseret Revisionspartnerselskab  
CVR no. 25 57 81 98  
Morten Høgh-Petersen  
State Authorised  
Public Accountant  
mne34283  
Sara Carstensen  
State Authorised  
Public Accountant  
mne34191  
 
INCOME AND COMPREHENSIVE INCOME STATEMENT  
28  
2022/23  
2021/22  
Note  
3
INCOME AND COMPREHENSIVE INCOME STATEMENT  
DKK’000  
28,335  
-8,759  
1,092  
27,009  
-6,686  
731  
Revenue  
Changes in inventories and work materials used  
Work performed by the entity and capitalised  
20,668  
21,054  
Gross profit  
-2,428  
-17,270  
-2,396  
-17,511  
4
Other external expenses  
Staff costs  
5, 6  
Operating profit before depreciation and amortisation  
(EBITDA)  
970  
1,147  
-1,930  
-1,861  
7, 8  
Depreciation, amortisation and impairment  
-960  
-714  
Operating loss (EBIT)  
50  
44  
9
Financial income  
-1,289  
-1,091  
10  
Financial expenses  
-2,199  
472  
-1,761  
210  
Loss before tax  
11  
Tax on loss for the year  
Net profit  
-1,727  
-1,727  
-1,551  
-1,551  
Comprehensive income  
Allocation of loss and comprehensive income:  
-1,727  
-1,551  
Shareholders of Rovsing A/S  
12  
Earnings per share  
-3.6  
-3.6  
-3.3  
-3.3  
Earnings per share (EPS Basic)  
Earnings per share (EPS-D)  
 
BALANCE SHEET  
2022/23  
2021/22  
Note  
BALANCE SHEET, ASSETS  
DKK’000  
29  
Non-current assets  
Intangible assets  
11,763  
0
10,890  
0
13  
13  
13  
Completed development projects  
Patents and licenses  
Development projects in progress  
206  
206  
11,969  
11,096  
Property, plant and equipment  
Right-of-Use assets  
Property, plant and equipment  
1,257  
846  
2,026  
1,026  
15  
14  
2,103  
3,052  
Other non-current assets  
470  
210  
Tax  
2,143  
2,143  
16  
Deferred tax  
2,613  
2,353  
16,685  
16,501  
Total non-current assets  
Current assets  
Inventories  
Trade receivables  
Contract work in progress  
Tax  
4,647  
5,836  
3,439  
210  
4,274  
7,758  
2.638  
75  
4
17  
18  
473  
1,851  
49  
900  
369  
2
17  
Other receivables  
Prepayments  
Cash  
16,505  
33,190  
16,016  
32,517  
Total current assets  
TOTAL ASSETS  
 
BALANCE SHEET  
30  
2022/23  
2021/22  
Note  
BALANCE SHEET, EQUITY AND LIABILITIES  
DKK’000  
19  
Equity  
23,811  
4,129  
-21,318  
23,662  
3,139  
-18,716  
Share capital  
Reserves for development costs  
Retained earnings  
6,622  
8,085  
Total equity  
Non-current liabilities  
2,500  
0
473  
0
4,200  
1,329  
20  
20  
15  
Other credit institutions  
Bond loans  
Lease liabilities  
2,973  
5,529  
Total non-current liabilities  
Current liabilities  
3,841  
854  
8,261  
723  
24  
15  
Credit institutions  
Lease liabilities  
4,200  
0
20  
Bond loans  
0
8,885  
2,621  
3,194  
2,169  
3,337  
2,289  
2,124  
VAT loan  
Prepayments from customers  
Trade payables  
18  
21  
Other payables  
23,595  
26,568  
33,190  
18,903  
24,432  
32,517  
Total current liabilities  
Total liabilities  
TOTAL EQUITY AND LIABILITIES  
 
STATEMENT OF CHANGES IN EQUITY  
31  
RESERVES  
2021/22  
DKK’000  
SHARE  
CAPITAL  
FOR  
DEVELOP-  
MENT COSTS  
RETAINED  
EARNINGS  
TOTAL  
9,576  
2,892  
Equity at 1 July 2021  
23,568  
-16,884  
Comprehensive income for the  
period  
Comprehensive income  
0
0
0
-1,551  
-247  
-1,551  
0
Transferred between reserves  
247  
Total comprehensive income for  
the period  
0
247  
-1,798  
-1,551  
Other transactions  
Capital increase  
94  
0
0
0
0
0
-34  
-34  
94  
-34  
60  
Costs capital increase  
Total transactions with owners  
94  
Equity at 30 June 2022  
23,662  
3,139  
-18,716  
8,085  
The reserves have been allocated in accordance with the Danish Companies Act.  
 
RESERVES  
FOR  
DEVELOP-  
2022/23  
DKK’000  
SHARE  
CAPITAL  
RETAINED  
EARNINGS  
32  
TOTAL  
8,085  
MENT COSTS  
3,139  
Equity at 1 July 2022  
23,662  
-18,716  
Comprehensive income for the  
period  
Comprehensive income  
0
0
0
-1,727  
-990  
-1,727  
0
Transferred between reserves  
990  
Total comprehensive income for  
the period  
0
990  
-2,717  
-1,727  
Other transactions  
Capital increase  
149  
0
0
0
0
0
0
23  
-2  
172  
-2  
Other adjustments  
Costs capital increase  
Warrants  
0
-55  
149  
115  
-55  
149  
264  
0
Total transactions with owners  
149  
Equity at 30 June 2023  
23,811  
4,129  
-21,318  
6,622  
The reserves have been allocated in accordance with the Danish Companies Act.  
 
CASH FLOW STATEMENT  
2022/23  
-1,727  
2020/21  
-1,551  
Note  
CASH FLOW STATEMENT  
DKK’000  
33  
Loss for the year  
Adjustment for non-cash operating items etc.:  
Depreciation, amortisation and impairment  
Other non-cash operating items, net  
Financial income  
1,930  
149  
-50  
1,861  
-7  
-44  
8
25  
9
1,289  
-472  
1,091  
-210  
10  
11  
Financial expenses  
Tax on loss for the year  
Cash flows from operations before changes in working  
capital  
1,119  
1,140  
6,643  
-4,872  
26  
Change in working capital  
7,762  
-3,732  
Cash flow from operations  
Interest received  
Interest paid  
50  
-1,289  
44  
-1,091  
75  
0
Refund of corporate tax (LL§8x)  
6,598  
-4,779  
Cash flow from operating activities  
-1,644  
-49  
-851  
-1,251  
13  
14  
Acquisition of intangible assets  
Acquisition of tangible assets  
-1,693  
-2,102  
Cash flow from investing activities  
-1,920  
-2,169  
172  
-886  
-55  
5,080  
2,169  
95  
-683  
-34  
23  
New bond loans and debt with credit institutions  
Other debt  
Capital increase, net proceeds from issue  
Principal paid on lease  
Costs emission  
-4,858  
47  
6,627  
-254  
256  
2
Cash flow from financing activities  
Net cash flow for the period  
Cash, beginning of year  
2
49  
Cash, end of year  
 
OVERVIEW OF NOTES TO THE FINANCIAL STATEMENTS  
34  
Note  
1
Note  
15  
Accounting policies  
Leasing  
2
Accounting estimates and judgments  
Revenue  
16  
17  
Deferred tax  
3
Receivables  
4
Expenses  
18  
19  
20  
21  
Contract work in progress  
Equity  
5
Staff costs  
6
Share-based payment  
Research and development costs  
Depreciation, amortisation and impairment  
Financial income  
Loans  
7
Other payables  
8
22  
23  
24  
25  
26  
27  
Financial risks and financial instruments  
Contingent assets and liabilities  
Collateral  
9
10  
11  
12  
13  
14  
Financial expenses  
Tax on profit/loss for the year  
Earnings per share  
Non-cash transactions  
Working capital changes  
Related party transactions  
Events after the reporting period  
Intangible assets  
Property, plant and equipment  
28  
 
NOTES  
date when the receivable or payable arose or was  
recognised in the most recent financial statements  
is recognised in the income statement under  
financial income or expenses.  
35  
NOTE 1. ACCOUNTING POLICIES  
The annual report for 2022/23, which comprises the  
Company’s financial statements, has been  
prepared in accordance with International Financial  
Reporting Standards (IFRS) as adopted by the  
European Union and additional Danish disclosure  
requirements for class D companies for listed  
companies.  
The accounting policies are consistent with those  
applied in 2021/22. However, reclassifications in  
comparative figures for 2021/22 between ‘Staff  
costs’ and ‘other external expenses’ have been  
done.  
Segments  
The Company consist of one segment as per the  
definition within IFRS 8, which constitute the entire  
Company, and as such the segment disclosures are  
prepared based on this assumption. Consequently,  
the Company has not been organized around  
differences in products and services, geographical  
areas, regulatory environment or otherwise.  
Applying materiality  
The annual report is presented in DKK thousands  
(DKK ‘000).  
The provisions in IFRS contain extensive disclosure  
requirements. The specific disclosures required  
according to IFRS are stated in the consolidated  
financial statements included in this Annual Report  
unless the disclosures concerned are considered  
irrelevant or immaterial for financial decisions  
made by the financial statement users.  
Relevant new accounting standards  
Management has assessed the impact of new or  
amended accounting standards and interpretations  
(IFRSs) issued by the IASB and IFRSs endorsed by  
the European Union effective on or after 1 July  
2022. Management assessed that application of  
these has not had a material impact on the  
amounts reported in these financial statements.  
Going concern  
Management is required to decide whether the  
financial statements can be presented on a ‘going  
concern’ basis. Based on estimated future  
prospects, expectations of future cash flows,  
existence of credit facilities, etc., Management is of  
the opinion that the Company can continue  
operating for at least 12 months from the balance  
sheet date, for further see note 2 and 22.  
New standards and interpretations not yet  
adopted  
Management has assessed the impact of new or  
amended accounting standards and interpretations  
(IFRSs) issued by the IASB that has not yet become  
effective. Management does not anticipate any  
significant impact on future periods from the  
adoption of these amendments  
Foreign currency translation  
Rovsing uses DKK as it’s functional and  
presentation currency.  
On initial recognition, transactions denominated in  
foreign currency are translated at the exchange  
rate ruling on the transaction date. Foreign  
exchange differences arising between the  
exchange rate at the transaction date and at the  
date of payment are recognised in the income  
statement under financial income or expenses.  
Receivables, payables and other monetary items  
denominated in foreign currency are translated at  
the exchange rates ruling at the balance sheet date.  
The difference between the exchange rate ruling at  
the balance sheet date and the exchange rate at the  
 
Warrants  
NOTES  
For equity-settled stock options and warrants, the  
fair value is measured at the grant date and  
recognised in the income statement under staff  
costs over the vesting period. The balancing item is  
recognised directly in equity.  
Revenue  
36  
Income from the sale of goods and services is  
recognised in the income statement when each of  
the separate performance obligations are satisfied.  
Revenue is recognised excluding VAT and taxes and  
net of discounts related to sales. Each revenue type  
is subject to the 5-step model which includes:  
Identification of contract, separation of  
performance obligations in each contract,  
determining the transaction price, allocation of  
price to identified performance obligations and  
recognition of revenue.  
On initial recognition of the stock options and  
warrants, the number of options and warrants  
expected to vest is estimated. Subsequently,  
adjustment is made only for changes in the number  
of employees estimated to become entitled to  
options or warrants.  
The fair value is determined according to the Black-  
Scholes method.  
Revenue from contracts with customers is  
recognised when control of the goods or services  
are transferred to our customers at an amount that  
reflects the transaction price to which we expect to  
be entitled in exchange for these goods or services.  
Financial income and expenses  
Financial income and expenses include interest  
income and expenses, exchange gains and losses  
on securities, payables and transactions in foreign  
currencies, amortisation of financial assets and  
liabilities. Borrowing costs attributable to  
qualifying assets are included in the cost of these  
assets.  
Revenue from projects, products, and services  
(with the exception of sale of service hours) is  
recognised over time, using the cost-to-cost  
method, when we have no alternative use for the  
goods or services to be delivered and we have an  
enforceable right to payment for work completed.  
Tax  
Tax on the profit/loss for the year, consisting of the  
year’s current tax, movements in deferred tax and  
any prior-year adjustments, is recognised in the  
income statement as regards the amount that can  
be attributed to the profit/loss for the year and  
posted in other comprehensive income or directly  
in equity as regards the amount that can be  
attributed to movements in equity.  
If we do have an alternative use for the goods or  
services to be delivered, e.g. products with a low  
degree of customisation, such sales will be  
recognised at the point in time when control  
transfers to the customer, usually upon delivery.  
The percentage of completion for projects is  
determined on the basis of expenses incurred to  
date for engineering hours etc. associated with  
developing, manufacturing and installing the  
product relative to the expected overall expenses  
of the projects.  
Deferred tax is measured in accordance with the  
balance sheet liability method on all temporary  
differences between the carrying amount and the  
tax base of assets and liabilities.  
The tax value of tax losses carried forward is  
included in the statement of the deferred tax if the  
loss is likely to be utilised.  
Production costs, external  
Other operating costs include cost of goods sold  
and other external costs incurred to generate the  
revenue for the year.  
Deferred tax is measured on the basis of the tax  
regulations and rates that apply at the balance  
sheet date and are expected to apply at the time  
when the deferred tax is expected to crystallise as  
current tax.  
Other operating income  
Other operating income includes grants, which are  
recognised in step with completion of the activity  
eligible for grant.  
Changes in deferred tax due to changes in the tax  
rates are recognised in the income statement as  
regards the share that relates to the net profit or  
loss for the year, whereas the share that relates to  
entries directly in equity is taken to other  
comprehensive income or directly to equity.  
Other external costs  
Other external costs comprise expenses for  
distribution, sale, marketing, administration,  
premises, etc.  
 
excess of the amount provided for by normal  
depreciation. If there is an indication that an asset  
may be impaired, it is tested for impairment.  
NOTES  
Intangible assets  
37  
Intangible assets recognised in the balance sheet  
are measured at the lower of cost less accumulated  
amortisation and the recoverable amount.  
If the carrying amount of development projects  
exceeds their recoverable amount, the carrying  
amount is written down to the recoverable amount.  
Investments in development comprise costs and  
wages directly attributable to the Company’s  
development activities.  
Property, plant and equipment  
Items of property, plant and equipment are  
measured at cost less accumulated depreciation.  
Depreciation is charged on a straight-line basis over  
the expected useful lives of the assets.  
Development projects which are clearly defined  
and identifiable, where the level of technical  
utilisation, sufficient resources and a potential  
future market or business opportunity for the  
Company can be demonstrated, and where the  
intention is to manufacture, market or utilise the  
project, are recognised as intangible assets if the  
cost can be reliably measured, and there is  
sufficient certainty that the future earnings can  
cover production and sales costs, administrative  
expenses and investments in development.  
Tools and equipment and software are depreciated  
over three to five years.  
Rental and lease matters  
Assets and liabilities arising from a lease are initially  
measured on a present value basis. Lease liabilities  
include the net present value of the payments,  
which are fixed or variable dependent on an index  
or a rate.  
After completion of the development work,  
development costs are amortised on a straight-line  
basis over the estimated useful life.  
The lease payments are discounted using the  
implied interest rate of the lease. If that rate cannot  
be readily determined, which is generally the case  
for leases in Rovsing, the lessee’s incremental  
borrowing rate is used, being the rate that the  
individual lessee would have to pay to borrow the  
funds necessary to obtain an asset of similar value  
to the right-of-use asset in a similar economic  
environment with similar terms, security and  
conditions.  
Grants received to cover capitalised development  
costs are recognised as reduction in the cost of the  
development asset when the development asset is  
ready for use and is recognised in the profit & loss  
as the developed asset is amortised.  
Other development costs are recognised in the  
income statement as incurred.  
When adjustments to lease payments based on an  
index or rate take effect, the lease liability is  
reassessed and adjusted against the lease asset.  
Service components are excluded from the lease  
liability.  
The usual amortisation period is three to ten years.  
Acquired rights are amortised over ten years.  
Software is measured at cost less accumulated  
depreciation.  
Lease payments are allocated between principal  
and finance costs. The finance costs are charged to  
profit or loss over the lease period so as to produce  
a constant periodic rate of interest on the  
remaining balance of the liability for each period.  
Software is depreciated using the straight-line  
method over its expected useful life, estimated at  
three to five years. The assets’ residual values and  
useful lives are assessed annually and adjusted, if  
appropriate, at each balance sheet date. Gains or  
losses on the disposal or removal of assets are  
recognised in the income statement under the  
same items as the related assets.  
Right-of-use assets are measured at cost  
comprising the amount of the initial measurement  
of lease liability, any lease payments made at or  
before the commencement date less any lease  
incentives received, any initial direct costs, and any  
restoration costs.  
Impairment of intangible assets  
Development projects in progress are tested for  
impairment annually by comparing the carrying  
amounts of the assets with their recoverable  
amounts. Other development projects are  
reviewed on an ongoing basis to determine  
whether there are any indications of impairment in  
Right-of-use assets are generally depreciated over  
the shorter of the asset’s useful life and the lease  
term on a straight-line basis. If Rovsing is  
reasonably certain to exercise a purchase option,  
 
On-account payments received are deducted from  
the item contract work in progress. On account  
payments received over and beyond the completed  
part of the project are calculated separately for  
each contract and recognised in the item  
prepayments from customers.  
NOTES  
the right-of-use asset is depreciated over the  
underlying asset’s useful life.  
38  
Payments associated with short-term leases and all  
leases of low-value assets are recognised as an  
expense in profit or loss. Short-term leases are  
leases with a lease term of 12 months or less. Low-  
value assets comprise IT-equipment and  
Prepayments  
Prepayments comprise costs incurred relating to  
subsequent financial years.  
small items of office furniture.  
Equity  
Reserve for development costs. The reserve for  
internal development costs comprises capitalized  
development costs. This reserve cannot be used for  
dividends or distributions, or to cover losses. If the  
recognized development costs are sold or  
otherwise excluded from the company’s  
operations, the reserve will be dissolved and  
transferred directly to the distributable reserves  
under equity. If the recognized development costs  
are written down, the part of the reserve  
corresponding to the write-down of the  
development costs will be reserved. If a write-down  
of development costs is subsequently reserved, the  
reserve will be re-established. The reserve is  
calculated net of tax and reduced by amortization  
of capitalized development costs on an ongoing  
basis.  
Impairment of property, plant and equipment  
Depreciable assets are reviewed on an ongoing  
basis to determine any indications of impairment in  
excess of what is expressed in the normal  
depreciation of assets. If there is an indication that  
an asset may be impaired, it is tested for  
impairment. Where the recoverable amount is  
lower than the carrying amount, the value is written  
down to the lower recoverable amount.  
Inventories  
Inventories are measured at the lower of cost in  
accordance with the FIFO (first in, first out) method  
and the net realisable value. Goods for resale are  
measured at cost, comprising the purchase price  
plus delivery costs.  
The net realisable value of inventories is calculated  
as the sales amount less costs of completion and  
costs necessary to make the sale and is determined  
taking into account marketability, obsolescence  
and development in expected selling price.  
Pension obligations  
Contributions to defined contribution plans are  
expensed as incurred.  
Other provisions  
Other provisions are recognised when, as a  
consequence of an event occurring before or at the  
balance sheet date, the Company has a legal or  
constructive obligation, and it is probable that  
there may be an outflow of economic benefits to  
meet the obligation.  
Receivables  
Receivables are measured at amortised cost.  
Provision is made for bad debts. The company's  
revenue is generated on relatively few customers  
and in recent periods there have been no losses on  
receivables. The company applies the simplified  
approach to measure expected credit losses as  
trade receivables do not contain a significant  
financing component. ECL is determined based on  
days past due and credit risk in groupings of  
customer segments.  
Current and non-current liabilities  
Current liabilities, which comprise loans, trade  
payables, bond loans and other payables, are  
measured at amortised cost.  
Contract work in progress  
Deferred income  
Contract work in progress is measured at the selling  
price of the production performed. The selling price  
is calculated with due consideration to costs of  
completion as basis for estimation of delivered  
performance obligations, adjusted for any  
ascertained losses.  
Deferred income comprises payments received  
relating to income in subsequent financial years.  
Cash flow statement  
The Company’s cash flow statement shows the  
cash flows for the year, broken down by operating,  
investing and financing activities, and the year's  
changes in cash and cash equivalents as well as cash  
 
NOTES  
39  
and cash equivalents at the beginning and end of  
the year.  
Cash flows from operating activities are calculated  
indirectly as the profit or loss for the year, adjusted  
for non-cash operating items, financial items paid  
and tax paid.  
Working capital includes current assets less current  
liabilities, exclusive of the items included in cash.  
Cash flows from investing activities comprise the  
acquisition and disposal of intangible assets,  
property, plant and equipment and financial assets  
as well as the purchase of short-term securities.  
Cash flows from financing activities comprise the  
raising of loans and repayment of loans and  
contribution of capital through share issues.  
Cash and cash equivalents comprise deposits with  
banks.  
 
DEFINITION OF RATIOS AND NON-FINANCIAL MEASURES  
40  
Ratio  
Explanation  
No. of shares, end of period  
The total number of outstanding shares at any given time,  
exclusive of the Company’s treasury shares.  
Cash flow per share (DKK)  
Cash flows from operating activities divided by average number  
of shares.  
EBITDA margin (profit margin before  
depreciation and amortisation) (%)  
Earnings before interest, tax depreciation and amortisation as a  
percentage of revenue.  
EBIT margin (profit margin) (%)  
Equity ratio  
Earnings before interest and tax as a percentage of revenue.  
Equity, end of year, as a percentage of total assets.  
Return on equity (%)  
Profit/loss for the year after tax divided by average equity.  
Average no. of outstanding shares (1,000) Average number of outstanding shares at any given time.  
Net asset value per share (DKK)  
Payout ratio (%)  
Equity at year-end divided by number of shares at year-end.  
Total dividends distributed divided by profit/loss for the year.  
Earnings per share (DKK)  
The Company’s share of profit/loss for the year divided by  
average no. of shares.  
Solvency ratio (%)  
Traditional way of expressing the Company’s financial strength.  
Dividend per share of DKK 50  
Order back-log  
Dividend payment in Danish kroner per share.  
The remaining value of contracts to be recognised as revenue in  
future periods.  
 
NOTES  
with both assets. The assumptions used when  
preparing the impairment tests were:  
NOTE 2. ACCOUNTING JUDGEMENTS AND  
ESTIMATION UNCERTAINTIES  
41  
- Revenue is for 2023/24 based on current order  
back log, which is secured, and for 2024/25 revenue  
is based on a combination of order back log and  
estimated revenue. Revenue for 2025/26 and  
onwards is based on estimated growth rates of  
average 20 %.  
- Cost and expenses assumptions are based on  
empirical data from 2022/23 and then inflated as  
this is considered representative for the future.  
- WACC amounts to 11% (2022/23: 11%)  
When preparing the financial statements, the use  
of reasonable estimates and judgments is an  
essential part. Given the uncertainties inherent in  
our business activities, Management makes a  
number of accounting estimates and judgments.  
The estimates and judgments are based on  
assumptions which form the basis for recognition  
and measurement of our assets, liabilities, cash  
flows and related disclosures. Estimates are  
regularly reassessed.  
- Terminal growth 1% (2021/22: 1%). Management  
believes that the growth rate is reasonable based  
on demand within the space industry.  
Key accounting estimates are expectations of the  
future based on assumptions, that to the extent  
possible are supported by historical experience,  
customer demands, competitor actions and other  
reasonable expectations. Estimates, by their  
nature, are associated with uncertainty and  
unpredictability. The actual amounts may differ  
from the amounts estimated as more detailed  
information becomes available. Management  
believe that the estimates are reasonable,  
appropriate and the most likely outcome of future  
events under the given circumstances.  
The value in use amounts were calculated as future  
free cash flows based on budgets for 2023/24 and  
forecasts for the following years incorporating the  
assumptions used in the financial budgets. The  
forecast period amounted to 5 years.  
Any reasonable possible change in the key  
assumptions on which the recoverable amount is  
based would not cause the carrying amount to  
exceed the recoverable amount.  
Key accounting judgments are made when  
applying accounting policies. Key accounting  
judgments are judgments made, that can have a  
significant impact on recognition, classification and  
disclosures of amounts in the financial statements.  
Development projects in progress are subject to an  
annual impairment test. Development projects in  
progress amounts to DKK 206 thousand and no  
impairment has been recognized.  
Contract work in progress  
Intangible assets  
Contract work in progress include non-invoiced  
services with a value of DKK 58,6 million (2021/22:  
DKK 28,3 million), which is recognised on the basis  
of an assessment of the percentage of completion  
of the delivered service. The selling price is  
measured based on the stage of completion and  
the total estimated income from the individual  
contracts in progress. Usually, the stage of  
completion is determined as the ratio of actual to  
total budgeted consumption of resources. Contract  
work in progress for Fixed Priced contracts is  
measured at the selling price of work completed at  
the balance sheet date, and the selling price is  
calculated on the basis of contracted income and  
the determined stage of completion. Stage of  
completion is determined making estimates of  
future hours and other project costs.  
For each project, Management assesses whether  
the criteria for recognition as intangible assets are  
met. Completed development projects and product  
rights are tested annually for indication of  
impairment. If impairment is identified, an  
impairment test is performed for the individual  
development projects.  
The carrying amount of completed development  
projects is DKK 11,763 thousand (2021/22: DKK  
10,890 thousand). The completed development  
projects are related to the development of the  
EGSE Platform which consists of Power Systems  
and Power Products such as SAS (Solar Array  
Simulator) and SLP (Second Level Protection). The  
EGSE Platform constitutes the company’s only  
CGU. An impairment test was prepared for this  
CGU and the recoverable amounts were estimated  
to be higher than the carrying amounts for all  
assets. The most significant assumptions are the  
revenue back log, cost and expenses associated  
 
NOTES  
In recent years, the company has succeeded in  
raising temporary loans to supplement the credit  
line in Jyske Bank to cover the need for working  
capital when necessary.  
Funding in 2022/23  
The income statement shows a loss for the year of  
DKK 1,7 million and the Company has lost above  
50% of its registered share capital. Funding in  
2023/24 is based on a cash flow forecast with  
positive cash flow from operations together with a  
continuation of the existing short-term funding  
facility provided by Jyske Bank. In addition, the  
funding in 2023/24 is based on the convertible bond  
loan of DKK 4,2 million, which is due 31 December  
2023. The Company is in the process of negotiating  
a 1 year prolongation with the 6 lenders or a  
combination of a partial repayment and conversion  
of the remaining loan to shares.  
42  
Based on this, the financial statement has been  
prepared based on a going concern assumption.  
Deferred tax  
Rovsing recognises deferred tax assets, including  
the value of tax-loss carry forwards, if Management  
considers it likely that there will be sufficient  
taxable income in future.  
Management has as of 30 June 2023 prepared an  
assessment, which is based on budgets and  
business plans for a period of 5 years. The  
assessment is to a large extend backed up by the  
strong order back log for 2022/23, which has  
secured the full year 2023/24 budget already and  
provided a basis for future growth, as well as future  
prospects form a growing industry where demand  
within the space industry has increased  
significantly over the last few years.  
During 2022/23 Rovsing, Jyske Bank and EIFO  
(earlier Vækstfonden) agreed on a 6-year loan of  
DKK 2,5 million to secure the necessary working  
capital to handle several major projects at the same  
time.  
Under the current rules for listed companies,  
Rovsing may issue new shares for up to 20% of the  
Company's existing share capital within a financial  
year. Within this framework, the size of a potential  
capital increase will be assessed relative to the  
immediate liquidity requirements.  
For further see note 16.  
 
NOTES  
43  
2022/23  
2021/22  
3
REVENUE  
DKK’000  
Developed products and systems  
Software Verifications (ISVV)  
On-site Engineering Services  
23,117  
2,247  
2,971  
22,718  
376  
3,915  
28,335  
27,009  
GEOGRAPHIC MARKETS  
DKK’000  
EU  
UK  
21,205  
6,854  
276  
23,088  
3,664  
257  
Outside EU  
28,335  
27,009  
Revenue from three customers were in the interval from 10%-26% of the total revenue in 2022/23. Revenue  
from three customers in 2021/22 were in the interval from 10%-38% of the total revenue in 2021/22. The order  
backlog as of 30 June 2023 was DKK 65,8 million, of which a high share is expected to be recognised in  
2023/24.  
Revenue from products, systems and services is recognised over time, using the cost-to-cost method.  
The majority of the projects are sold as fixed price contracts and revenue from projects is usually recognised  
over time; applying the percentage of completion cost-to-cost method. A project contract will often entitle us  
to receive a down payment from the customer, followed by several milestone payments linked to a milestone  
progress plan. Upon completion and customer acceptance we will usually be entitled to the final payment.  
2022/23  
2020/21  
4 EXPENSES  
Audit fee expenses  
DKK’000  
Audit of financial statements  
Audit fee for other services  
248  
0
232  
0
248  
232  
Inventory  
DKK’000  
Raw materials and consumables  
Work in progress  
744  
3,903  
826  
3,448  
4,647  
4,274  
 
NOTES  
44  
2022/23  
2021/22  
5 STAFF COSTS  
DKK’000  
Wages and salaries  
Pension contribution  
Other social security costs  
Share based payments  
15,167  
915  
1,039  
149  
15,589  
871  
1,051  
0
17,270  
17,511  
The item includes:  
Remuneration of the Executive Management  
Share-based payments, Executive Management  
Pension to the Executive Management  
Remuneration of the Board of Directors  
Share-based payments, Board of Directors  
2,200  
57  
208  
400  
67  
2,155  
0
193  
400  
0
Average number of full-time employees  
25  
26  
The Company’s Executive Management has a bonus scheme based on achieved revenue and EBITDA. In  
addition, the Executive Management has a share-based incentive programme, under which warrants  
vest on the basis of the Executive Management member’s employment with the Company, re note 6.  
The service contract with the CEO and CFO may be terminated by the CEO/CFO giving three months’  
notice and by the Company giving 6 months’ notice.  
No remuneration has been agreed in connection with the CEO/CFO’s potential resignation, and there are  
no special severance provisions for the CEO/CFO in connection with a takeover of the Company.  
6 SHARE-BASED PAYMENT  
The expense for share-based payments is calculated under the provision for share-based payments in  
accordance with IFRS 2. The warrant program has been recognized as an equity program and measured  
at the fair value of the warrants at the time of granting using the Black-Scholes formula. The fair value is  
expensed on a straight-line basis over the vesting period.  
Rovsing A/S has a warrant incentive programme for the Company’s Board of Directors, CEO, CFO and  
employees. The programme comprises a total of 23,660 warrants granted in November 2022. Each  
warrant entitles the holder to buy one share of DKK 50 each in Rovsing A/S. No amounts are paid or  
payable by the recipient on receipt of the warrant. The warrants carry neither rights to dividends nor  
voting rights.  
The outstanding warrants for the CEO and CFO equals 1.9% of the share capital if all warrants are  
exercised. The vesting of warrants for the CEO and CFO is based on employment with the Company. For  
the CEO and CFO all 8,991 warrants are vested equally over 24 months beginning October 2022. The  
warrants are issued with an exercise price of DKK 57.80 each. The vesting of the warrants are subject to  
continued employment in the Company.  
 
NOTES  
45  
The outstanding warrants for the Board of Directors equal 2.2% of the share capital if all warrants are  
exercised. For the Board of Directors all 10,647 warrants are vested after 24 month (Sep. 2024). For other  
employees all 4,022 are vested after 24 months (Sep. 2024). The warrants are issued with an exercise price  
of DKK 57.80 each. Exercise of warrants expires 1 January 2025. The subscription period is 4 weeks unless  
the Board of Directors decides otherwise. Options are forfeited if the employee leaves the Group before  
the options vest.  
At 30 June 2023 8,873 warrants are fully vested. In 2022/23 the costs recognised in the income statement  
relating to warrants is tDKK 149.  
Specification of outstanding warrants:  
Exercis  
e price  
per  
warrant  
Executive  
Management  
Other  
Not  
Board of  
Total  
employees allocate Directors  
d
Number of exercisable  
options:  
Outstanding at 1 July 2021  
10,299  
10,299  
8,991  
-10,299  
8,991  
0
5,796  
5,796  
4,022  
-5,796  
4,022  
0
0
0
0
0
0
0
0
42,205  
42,205  
10,647  
-42,205  
10,6473  
0
58,300  
75  
57  
57  
Outstanding as at 30 June  
2022  
58,300  
23,660  
-58,300  
23,660  
0
Granted during the year  
Expired during the year  
Outstanding at 30 June  
2023  
Excercisable as at 30 June  
2023  
Excersisable as at June 2022  
10,299  
5,796  
42,205  
58,300  
The fair value at grant date is independently determined using the Black-Scholes model that takes into account  
the exercise price, the term of the option, the share price at grant date and expected price volatility of the  
underlying share, the expected dividend yield, the risk-free interest rate for the term of the option, and the  
correlations and volatilities of the peer group companies.  
The model inputs for options granted included:  
options are granted when a minimum of shares are held during the vesting period. Vested  
options are exercisable for a period of three months after vesting.  
exercise price: DKK 57  
grant date: 25 November 2022  
expiry date: 24 October 2024  
share price at grant date: DKK 59  
expected price volatility of the company’s shares: 58%  
 
NOTES  
46  
expected dividend yield: 0%  
risk-free interest rate: 3%  
Fair value of warrants at the time of grant is DKK 0,5 million.  
2022/23  
2021/22  
7
RESEARCH AND DEVELOPMENT COSTS  
DKK’000  
Research and development costs incurred  
2,137  
735  
Development costs recognised as intangible assets  
Amortisation and impairment of recognised  
development costs  
-1,644  
-735  
771  
677  
Development costs for the year recognised in the  
income statement  
1,264  
677  
 
NOTES  
47  
DEPRECIATION, AMORTISATION AND  
IMPAIRMENT  
2022/23  
2021/22  
8
DKK’000  
Amortisation, completed development projects  
Amortisation, patents and licenses  
Depreciation, leasing  
771  
0
931  
228  
677  
0
959  
225  
Depreciation, other fixtures and fittings, tools and equipment  
1,930  
1,861  
2022/23  
2021/22  
9
FINANCIAL INCOME  
DKK’000  
Exchange rate adjustments  
50  
50  
44  
44  
2022/23  
2021/22  
10 FINANCIAL EXPENSES  
DKK’000  
Interest, banks, etc.  
Interest leasing  
Exchange rate adjustments  
1,128  
81  
925  
104  
62  
80  
1,289  
1,091  
 
NOTES  
48  
2022/23  
2021/22  
11 TAX ON PROFIT/LOSS FOR THE YEAR  
DKK’000  
Current tax  
Adjustment previous year  
Deferred tax  
470  
2
0
210  
0
0
Tax on profit/loss for the year  
Computed tax of loss before tax  
472  
210  
22%  
22 %  
2022/23  
2021/22  
Tax on profit/loss for the year is explained as follows:  
Computed tax 22% of profit/loss before tax for the year  
Tax effect of:  
484  
388  
Unrecognised deferred tax asset  
26  
-52  
2
12  
472  
-185  
0
0
7
210  
Other non-deductible costs  
Adjustment previous year and other adj.  
Tax on cost charged to equity  
Tax for the year  
2022/23  
2021/22  
12 EARNINGS PER SHARE  
DKK’000  
Profit/loss for the year  
-1,727  
-1,551  
Average number of issued shares (1,000)  
Average number of warrants (1,000)  
475  
9
473  
58  
Earnings per share, (EPS Basic), of DKK 50 each  
Earnings per share, (EPS diluted), of DKK 50 each  
-3.6  
-3.6  
-3.3  
-3.3  
 
NOTES  
49  
13  
INTANGIBLE ASSETS  
Develop-  
ment  
and projects in  
Completed Patents  
development  
projects licenses  
2022/23  
progress  
Total  
DKK’000  
Cost at 1 July 2022  
Additions  
Reclassification  
33,180 22,350  
206  
1,644  
-1,644  
206  
55,736  
1,644  
0
0
0
1,644  
0
34,824 22,350  
Cost at 30 June 2023  
57,380  
Amortisation and impairment at 1 July  
-22,290 -22,350  
0
-44,640  
2022  
Amortisation  
Impairment  
-771  
0
0
0
0
0
-771  
0
Amortisation and impairment at 30 June  
2023  
-23,061 -22,350  
0
-45,411  
11,969  
11,763  
0
206  
Carrying amount at 30 June 2023  
All intangible assets are considered to have a limited useful life.  
At 30 June 2023, Completed development projects comprise the internally generated project EGSE  
Platform with a carrying amount of DKK 11,763 thousand (30 June 2022: DKK 10,890 thousand).  
At 30 June 2023, Management performed an impairment test of the carrying amount of intangible assets.  
Assets are written down to the lower of the recoverable amount and the carrying amount. The  
recoverable amount in this year’s test is based on the value in use of the expected cash flow on the basis  
of budgets and forecasts for the future.  
Reference is furthermore made to Note 2 on significant judgement and estimates regarding the  
impairment test for 2022/23.  
 
NOTES  
50  
13 INTANGIBLE ASSETS  
Develop-  
ment  
Patents and projects in  
Completed  
development  
projects  
2021/22  
licenses  
progress  
Total  
DKK’000  
32,445  
22,350  
90  
Cost at 1 July 2021  
54,885  
0
735  
33,180  
0
0
851  
-735  
206  
Additions  
Reclassification  
Cost at 30 June 2022  
851  
0
55,736  
22,350  
-21,613  
-677  
0
-22,350  
0
0
0
Amortisation and impairment at 1 July 2021  
Amortisation  
Impairment  
-43,963  
-677  
0
0
0
-22,290  
10,890  
-22,350  
0
0
Amortisation and impairment at 30 June 2022  
Carrying amount at 30 June 2022  
-44,640  
11,096  
206  
 
NOTES  
51  
PROPERTY, PLANT AND  
EQUIPMENT  
14  
2022/23  
2021/22  
Other  
fixtures  
and  
Other  
fixtures  
and  
fittings,  
tools and  
fittings,  
tools and  
equipment equipment  
DKK’000  
Cost at 1 July  
Additions during the year  
Disposals at cost  
1,858  
49  
607  
1,251  
0
0
Cost at 30 June  
1,907  
1,858  
Depreciation and  
impairment at 1 July  
-832  
-607  
Depreciation for the year  
Disposals  
-229  
0
-225  
0
Depreciation and impairment at 30 June  
Carrying amount at 30 June  
-1,061  
846  
-832  
1,026  
 
NOTES  
52  
15 RIGHT OF USE ASSET  
2022/23  
Property  
lease  
Other  
leases  
Total  
DKK’000  
1,006  
60  
Cost at 1 July 2022  
Effect of modification to lease terms  
Additions  
4,115  
101  
5,121  
162  
0
0
0
1,066  
Cost at 30 June 2023  
4,216  
5,283  
-497  
0
-282  
-779  
Depreciations at 1 July 2022  
Effect of modification to lease terms  
Depreciations  
-2,598  
0
-648  
-3,246  
-3,095  
0
-931  
-4,026  
Depreciations at 30 June 2023  
287  
Right of Use asset at 30 June 2023  
970  
1,257  
2021/22  
1,006  
0
Cost at 1 July 2021  
Effect of modification to lease terms  
Additions  
2,043  
0
2,072  
4,115  
3,049  
0
2,072  
5,121  
0
1,006  
Cost at 30 June 2022  
-245  
0
-252  
-497  
Depreciations at 1 July 2021  
Effect of modification to lease terms  
Depreciations  
-1,891  
0
-707  
-2,598  
-2,136  
0
-959  
-3,095  
Depreciations at 30 June 2022  
509  
Right of Use asset at 30 June 2022  
1,517  
2,026  
 
NOTES  
53  
15 LEASE LIABILITIES  
Property  
lease  
Other  
leases  
2022/23  
Total  
DKK’000  
430  
0
Lease liabilities at 1 July 2022  
Additions  
1,622  
0
2,052  
0
26  
60  
-294  
Interest leases liabilities  
Adjustments to lease terms  
Lease payments  
55  
101  
-673  
81  
161  
-967  
222  
Lease liabilities at 30 June 2023  
1,105  
1,327  
2021/22  
677  
0
36  
0
-283  
Lease liabilities at 1 July 2021  
Additions  
Interest leases liabilities  
Adjustments to lease terms  
Lease payments  
203  
2,071  
68  
-216  
-504  
880  
2,071  
104  
-216  
-787  
430  
Lease liabilities at 30 June 2022  
1,622  
2,052  
The lease payments are discounted using an incremental borrowing rate which is calculated at 4.0% - 6.5%. The  
lease payments have been split into an interest cost and a repayment of the lease liability.  
At 30 June 2023, the Company is committed to DKK 854 thousand (30 June 2022: DKK 779 thousand) for short-  
term leases. Interest expenses on the lease liability in the income statement for 2022/23 amounts to DKK 81  
thousand (2021/22: DKK 104 thousand).  
MATURITY  
Between Between Between  
Up to  
12  
months  
1 and 2  
years  
2 and 3  
years  
3 and 4  
years  
Total  
DKK’000  
808  
487  
465  
0
0
0
2,052  
1,393  
Lease liabilities 1 July 2022  
Lease liabilities 30 June 2023  
779  
906  
The amounts recognized impact the operating cash outflow by DKK 81 thousand (2021/22: DKK 104 thousand)  
as well as the cash outflow from financing activities by DKK 886 thousand (2021/22: DKK 683 thousand).  
The property leases in which the Company is the lessee contain variable lease payment terms that are linked to  
the development in the net price index.  
 
NOTES  
54  
2022/23  
2021/22  
16 DEFERRED TAX  
DKK ‘000  
Deferred tax asset at 1 July  
Change in deferred tax for the year  
Prior period adjustment  
2,143  
-27  
0
2,143  
185  
0
Unrecognised deferred tax asset  
27  
-185  
Write-down of tax asset pursuant to expected realisation (3-5  
years)  
0
0
Deferred tax asset at 30 June  
2,143  
2,143  
Deferred tax in the Company is specified as follows:  
2022/23  
-1,932  
190  
2022/22  
-1,740  
139  
Intangible assets  
Tangible assets  
Equipment and lease  
15  
6
Current assets (work in progress)  
Tax loss carry-forwards  
Non-recognised share of tax asset  
-2,414  
17,849  
-11,565  
-1,631  
16,961  
-11,592  
Deferred tax asset at 30 June  
2,143  
2,143  
Utilisation of the tax losses is not time-limited. The tax losses are expected to be utilised in future  
positive earnings within a five-year period. The recognition of the deferred tax assets is based on a  
significant increase in the company’s order backlog, which as of 30 June 2023 was DKK 65.8 million  
(2021/22 DKK30.6 million).  
The tax losses carried forward amounts to DKK 81,130 thousand (2021/22: DKK 77,096 thousand).  
 
NOTES  
55  
2022/23  
2021/22  
17 RECEIVABLES  
DKK’000  
Trade receivables*  
Write-downs to cover losses  
5,836  
0
7,758  
0
5,836  
473  
7,758  
900  
Other receivables  
6,309  
8,658  
Receivables for which no write-downs have been made to  
cover losses:  
Due within 1-30 days*  
Due within 30-90 days*  
Due after 90 days  
4,459  
1,521  
329  
6,289  
1,399  
970  
6,309  
8,658  
*) At the end of August 2023 88% of trade receivables due  
within 1-90 days has been received.  
2022/23  
2021/22  
Carrying amount of receivables by currency:  
DKK  
EUR  
USD  
343  
5,938  
28  
78  
8,580  
0
6,309  
8,658  
2022/23  
2021/22  
CONTRACT WORK IN  
PROGRESS  
18  
DKK’000  
33,772  
-39,218  
-5,446  
Contract work in progress, selling price  
Invoiced contract work in progress  
20,674  
-21,373  
-699  
recognised as follows:  
3,439  
8,885  
Contract work in progress (assets)  
Prepayments, customers (liability)  
2,638  
3,337  
-5,446  
22,800  
-699  
Contract work in progress at cost  
13,259  
The remaining value of contracts to be recognised as revenue in future periods is DKK 65,740 thousand (30 June  
2022 DKK 29,028 thousand). No material adjustments have been made to the contract balances neither in this  
financial year nor in the previous financial year.  
 
NOTES  
56  
19 EQUITY  
Capital management  
The Company regularly assesses the need for adjusting the capital structure so that it complies with the  
applicable rules and matches the business foundation and scope of activity. Rovsing holds 1,259 of the  
Company’s own shares with a nominal value of DKK 62,950. The Company’s solvency ratio stood at  
20.0 at 30 June 2023 (30 June 2022: 24.9).  
Share capital  
2022/23  
2021/22  
Development in no. of shares  
No. of shares, beginning of year  
Issue of new shares  
473  
3
471  
2
No. of shares (1,000), end of year  
476  
473  
Share capital, DKK’000  
23,811  
23,662  
The share capital is divided into 476,228 shares with a nominal value of DKK 50 each (2021/2022:  
473,241 shares with a nominal value of DKK 50 each). The shares are fully paid up, and no shares carry  
any special rights. No shares are subject to restrictions on transferability or voting rights. Presently  
there are 8,873 vested warrants.  
20 LOANS  
In December 2020 the Company raised a convertible bond loans of DKK 4,2 million. The bond loans mature  
31 December 2023 with an interest of 12% pro anno. Fair value of financial liabilities is equal to the carrying  
amount. If the loans are repaid before maturity the Company must repay the loan at a rate of 108. The  
Lenders can choose to settle in cash or shares if the loans are repaid before maturity. At ordinary expiration  
at 31 December 2023, the loan is repaid at rate of 100.  
In October 2022 the Company entered into a 6-year loan agreement with EIFO (formerly Vækstfonden) of  
DKK 2,5 million with an interest of CIBOR 3 month + 9%. The loan will secure and strengthening the  
Company’s investment in inventory and working capital.  
Furthermore, see note 27 for transactions with related parties.  
 
NOTES  
57  
21 OTHER PAYABLES  
DKK’000  
2022/23  
2021/22  
Staff costs  
1,877  
1,317  
2,010  
114  
Other payables  
3,194  
2,124  
FINANCIAL RISKS AND FINANCIAL  
INSTRUMENTS  
22  
The Company is exposed to a number of financial risks, the most important of which are foreign currency  
and interest rate risk, liquidity risk and credit risk.  
The Company does not actively speculate in financial risk, and accordingly, the financial strategy aims  
exclusively to manage and mitigate financial risks that arise as a consequence of the Company’s  
operations, investments and financing.  
Foreign currency risk  
Most of the Company’s contracts are invoiced in EUR or USD. As the Danish krone is pegged to EUR, the  
Company’s EUR risk is considered minimal. Risk attaching to USD is assessed in an ongoing process, as  
a result of which in 2022/23 the Company did not use financial instruments to hedge its foreign currency  
risk. The Company monitors developments in EUR/USD/DKK and regularly assesses whether to hedge  
its exposure to EUR and USD.  
Foreign currency exposure in thousands:  
Nominal position  
Cash and  
receivables  
Financial  
liabilities  
EUR/USD  
receivables/payables)  
5,836  
1,142  
49  
0
EUR (cash)  
5,885  
1,142  
Interest rate risk  
The Company had net payables to credit institutions of DKK 6,341 thousand at 30 June 2023. The debt  
carries a floating interest rate based on the money market rate. Interest rates paid on payables to credit  
institutions in 2022/23 was 10.8% and 12.1%. In the period 1 July until 30 June the Company had net  
payables to bond holders of DKK 4,200 thousand with a fixed interest rate of 12%.  
Based on recognised financial assets and liabilities at 30 June 2023, without considering repayments,  
loans raised and the like in 2022/23, a 1% increase in interest rates would raise the Company's expenses  
by DKK 0,1 million. A 1% decline in interest rates would result in a correspondingly lower interest  
expense.  
The Company has not used financial instruments to hedge expected developments in interest rates.  
 
NOTES  
58  
Liquidity risk  
Significant, unforeseen liquidity fluctuations are primarily associated with the commercial risks referred  
to in the section “Risk factors” and breaching of milestones in contracts and for refinancing/  
prolongation of the existing bond loans due in December 2023 either full prolongation or partial  
prolongation. The Company aims to have sufficient cash resources to allow it to operate adequately in  
case of unforeseen fluctuations in liquidity and if necessary, the Company will ensure additional loan  
facilities. The Company regularly assesses its cash resources relative to budgets and forecasts for cash  
flows in future periods.  
Credit risk  
As a result of the Company's operations and funding activities, the Company is exposed to  
credit risk. The Company’s credit risks are related to trade receivables – see note 17, and cash.  
No credit risk is considered to exist in relation to cash as the counterparty is Jyske Bank.  
Payables to the counterparty exceed cash deposits with the counterparty.  
Most of the Company's revenue derives from ESA space industry projects. ESA (European  
Space Agency) is the joint-European development organisation for various space  
programmes. ESA's 22-member states (including Denmark) together funds the activities of  
ESA. The credit risk associated with ESA is considered minimal. The remaining part of the  
Company’s revenue derives from large, well-consolidated international companies, for which  
the credit risk is considered minimal.  
The Company's financial assets liabilities fall due as follows:  
Due  
Due  
2022/23  
within 1 between 1 Due after  
Carrying  
amount  
year and 5 years  
5 years  
Total  
DKK’000  
0
0
0
0
0
0
0
0
Cash  
Trade receivables  
Other receivables (current)  
Other receivables (non-current)  
Total loans and receivables  
49  
5,836  
683  
49  
5,836  
683  
470  
7,038  
49  
5,836  
683  
470  
7,038  
0
470  
470  
6,568  
0
0
0
0
Credit institutions, floating rate  
Other credit institutions  
Bond loan  
Leasing  
Trade payables  
-3,841  
0
-4,200  
-3,841  
-2,500  
-4,200  
-3,841  
-2,500  
-4,452  
-2,500  
0
0
0
0
-473  
0
-854  
-2,621  
-3,194  
-1,327  
-2,621  
-3,194  
-1,327  
-2,621  
-3,194  
0
Other payables  
Financial liabilities measured  
at amortised cost  
-17,683  
-14,710  
-473  
-2,500  
-17,935  
 
59  
Due  
NOTES  
2021/22  
Due within  
between 1 Due after 5  
1 year and 5 years  
Carrying  
amount  
years  
Total  
DKK’000  
0
0
0
0
0
0
0
0
Cash  
Trade receivables  
Other receivables (current)  
Other receivables (non-current)  
Total loans and receivables  
2
7,758  
975  
2
7,758  
975  
2
7,758  
975  
0
210  
210  
210  
210  
8,735  
8,945  
8,945  
0
0
0
0
0
0
0
0
Credit institutions, floating rate  
VAT loan  
Bond loan  
Leasing  
Trade payables  
Other payables  
-8,261  
-2,169  
-0  
-723  
-2,289  
-2,124  
-8,261  
-2,169  
-4,200  
-2,052  
-2,289  
-2,124  
-8,261  
-2,169  
-4,200  
-2,052  
-2,289  
-2,124  
0
-4,200  
-1,329  
0
0
Financial liabilities measured at  
amortised cost  
-5,5290  
-15,566  
-21,095  
-21,095  
Cash resources and financing facilities  
On 16 December 2020, the Company obtained financing of DKK 4,200 thousand through bond loans with 6  
lenders.  
The Company has access to bank financing facilities of DKK 5,000 thousand (30 June 2022: DKK 7,182  
thousand).  
Proceeds Repayments  
Loans 1 July  
2022  
from  
borrowings  
of  
Other non-  
cash items  
Loans 30  
June 2023  
2022/23  
borrowings  
DKK’000  
2,500  
-4,075  
-2,169  
-725  
0
-345  
Credit institutions, floating rate  
VAT loan  
Lease liabilities  
Bond loan  
Credit institutions, EKF floating rate  
Total loans  
7,916  
2,169  
2,052  
4,200  
345  
0
0
0
0
0
0
6,341  
0
1,327  
4,200  
0
-
0
0
0
2,500  
-7,314  
16,682  
11,868  
 
60  
NOTES  
Proceeds Repayments  
Other  
Loans 1 July  
2021  
from  
borrowings  
of non-cash  
Loans 30  
June 2022  
2021/22  
borrowings  
items  
DKK’000  
6,357  
2,970  
1,172  
0
0
-801  
0
Credit institutions, floating rate  
VAT loan  
Lease liabilities  
Bond loan  
Credit institutions, EKF floating rate  
Total loans  
1,559  
0
880  
4,200  
1,662  
8,301  
0
0
0
0
0
0
7,916  
2,169  
2,052  
4,200  
345  
0
0
-1,317  
-2,118  
10,499  
16,682  
23 CONTINGENT ASSETS AND LIABILITIES  
The Company, as part of its activities enters into various contracts that can include obligations normal  
for the industry.  
24 COLLATERAL  
A floating charge in the amount of DKK 11,75 million has been issued as collateral for credit facilities  
with a credit institution. The floating charge comprises a charge on rights pursuant to the Danish  
Patents Act, the Danish Trademarks Act, the Danish Design Act, the Danish Utility Models Act, the  
Danish Registered Designs Act, the Danish Copyright Act and the Danish Act on Protection of the  
Topographies of Semiconductor Products. Furthermore, the floating charge comprises tools,  
inventories and unsecured claims arising from the sale of goods and services. The total carrying amount  
of the floating charge was DKK 25,9 million at 30 June 2023.  
 
NOTES  
61  
25 NON-CASH TRANSACTIONS  
2022/23  
2021/22  
DKK’000  
Warrant cost expensed  
Financial items  
149  
0
0
-7  
149  
-7  
26 WORKING CAPITAL CHANGES  
2022/23  
2021/22  
DKK’000  
Inventories  
-373  
1,922  
-807  
0
-1,878  
-3,128  
99  
-211  
6
-215  
2,323  
1,666  
-3,534  
Trade receivables  
Contract work in progress  
Tax receivables  
Other receivables  
Prepaid expenses  
Prepayments from customers  
Trade payables  
427  
-1,482  
5,548  
332  
Other payables  
1,070  
6,643  
-4,872  
 
NOTES  
62  
27 RELATED PARTY TRANSACTIONS  
The Company has during the financial year 2020/21 entered into a loan agreement with the Chairman  
of the Board of Directors Michael Hove and current (since October 2022) Board Member Jakob Færch  
Bendtsen. Michael Hove and Jakob Færch Bendtsen are both part of the bond loan consortium  
consisting of 6 companies offering a convertible bond loan of DKK 4.2 million with maturity 31  
December 2023. The loan agreement with Michael Hove constitutes an amount of DKK 1 million and  
carries an interest of 12% p.a. The loan agreement with Cewijo ApS (Jakob Færch Bendtsen is owner)  
constitutes an amount of DKK 0.5 million and carries an interest of 12% p.a.  
The Company’s related parties comprise the members of the Board of Directors and Executive  
Management as well as these persons’ close family members. Further, related parties comprise  
companies in which the above-mentioned persons have significant interests.  
As noted above, no transactions have been made with related parties except previously mentioned  
bond loans.  
28 EVENTS AFTER THE REPORTING PERIOD  
After the balance sheet date, no events have occurred that materially affect the Company's financial  
position.  
 
EXECUTIVE MANAGEMENT  
63  
HJALTI P. THORVARDARSON (BORN 1987)  
SIGURD HUNDRUP (BORN 1965)  
CEO of Rovsing A/S since March 2018.  
CFO of Rovsing A/S since September 2017.  
Educational background: Computer & Electronics  
Engineer (B.Eng) from Copenhagen University  
College of Engineering.  
Educational background: MSc. EBA. Finance,  
Accounting.  
Sigurd has extensive experience and a proven track  
record from many years as CFO. His strong finance  
professional skills provide essential contribution to  
the Company’s day to day Management, reporting,  
organizational development, financial analysis and  
finance administration.  
Hjalti has an extensive and proven track record  
within the Space industry from the past 13 years.  
His knowledge of Rovsing operations and product  
& service offerings as well as customer contact is  
deeply rooted in his engagement with the  
Company since 2010, working in various roles,  
starting as Hardware Engineer, Senior Project  
Manager and Head of Systems & Services.  
Shareholding at 30 June 2023: 750 shares.  
Number of warrants at 30 June 2023: 4,046.  
Shareholding at 30 June 2023: 750 shares.  
Number of warrants at 30 June 2023: 4,945.  
 
BOARD OF DIRECTORS  
64  
MICHAEL HOVE (BORN 1971)  
JAKOB FÆRCH BENDTSEN (BORN 1978)  
Elected to the Board of Directors in October 2017.  
Took over the chairmanship in January 2018.  
Elected to the Board of Directors in 2022.  
Position: Owner and senior director at Cewijo ApS  
Position: Founder and owner of MH Investment  
ApS.  
Educational background: MSc in Business  
Administration and Auditing  
Educational background from Copenhagen  
Business School as economist.  
Jakob Færch Bendtsen has extensive experience  
from a number of international companies and  
industries as well as consulting companies. He has  
in-depth knowledge of M&A, accounting, tax and  
other finance matters.  
Main directorships:  
CEO Scandinavian Investment Group A/S  
Chairman of the board of directors of  
Antique 89 A/S  
Main directorships:  
Managing partner  
Investment ApS  
&
owner MH  
Owner and senior director at Cewijo ApS  
Board Member: ORPHAZYME A/S  
Board Member: Nordic Compound Invest  
A/S  
Managing partner SalesPartners A/S  
Independent of Rovsing and the executive  
management: Yes  
Independent of Rovsing and the executive  
management: Yes  
Independent of major shareholders as of today:  
Yes  
Independent of major shareholders as of today:  
Yes  
Shareholding at 30 June 2023: 11,566 shares.  
Number of warrants at 30 June 2023: 5,324.  
Shareholding at 30 June 2023: 930 shares.  
Number of warrants at 30 June 2023: 2,662.  
 
ULRICH BECK (BORN 1964)  
65  
Elected to the Board of Directors in October 2017.  
Until mid-2023: Airbus Vice President Finance.  
Member of the industrial Expert Group for Space  
Defence and Aerospace for the European  
Commission (DG DEFIS).  
As a financial and industrial expert, Ulrich has more  
than 30 years of experience and expertise in  
Aerospace, Defense and Space Industry, in Senior  
Management positions as for Strategy,  
international Sales and Business Development,  
International Compliance Officer, transnational  
Merger Integration or as Chief Financial and  
Information  
Officer.  
Various  
Financial  
Management positions at operations, engineering  
program and corporate level. M&A, Transaction  
Management and Industrial Strategy projects.  
Main directorships:  
Member of the board of directors of Access  
e.V. and Access Technology GmbH  
Vice-President of the Board of DGLR  
German Society for Aerospace and Space  
Senior Member of AIAA American Institute of  
Aerospace and Aeronautics  
Member of the Board of the Financial  
Experts Association (ecoDA Member),  
Germany  
Certified Board Member and Financial  
Expert (by Deutsche Börse AG), Member of  
related associations  
Independent of Rovsing and the executive  
management: Yes  
Independent of major shareholders as of today:  
Yes  
Shareholding at 30 June 2023: 2,482 shares.  
Number of warrants at 30 June 2023: 2,662.  
 
GLOSSARY  
66  
Term  
Explanation  
Application  
CDR  
Specific use of a product  
Critical Design Review  
Check-out system  
Critical software  
System for testing and controlling a satellite or instrument  
Software, the failure or breakdown of which may cause loss of  
life, loss of spacecraft or loss of performance of the planned  
task, or software for which error rectification may prove very  
costly.  
Counter-purchase obligation  
Obligation on a non-Danish supplier of defense material to the  
Danish Armed Forces to buy defense-related equipment from  
Danish companies.  
DSTE  
EGSE  
ESA  
Digital Simulation & Test Equipment  
Electrical Ground Support Equipment  
The European Space Agency  
ESTEC  
EU  
EUMETSAT  
European Space Research and Technology Centre  
The European Union  
European Organisation for the Exploitation of Meteorological  
Satellites  
Galileo  
European satellite navigation system similar to the GPS system  
in the USA  
Industrial collaboration agreement  
Agreement signed by non-Danish suppliers of defense material  
to Denmark with the Danish Enterprise and Construction  
Agency to ensure that the supplier undertakes in return to  
acquire defense material manufactured by Danish companies.  
Independent verification and validation of software  
Kick-Off meeting to start up a project  
Measurement, Acquisition, Simulation and Commanding  
The outsourcing of part of or a whole assignment with a  
subcontractor  
ISVV  
Kick-Off  
MASC  
Outsourcing  
Prime Contractor  
The company with the main responsibility for carrying out a  
major ESA/NASA/Commercial project  
Person in charge of carrying out a project  
Radio Frequently test equipment for testing satellite  
communication links  
Project manager  
RF Suitcase  
Power SCOE  
Special Checkout Equipment for testing satellite power  
systems  
SAS  
SCOE  
SIS  
Solar Array Simulator  
Special Check-Out Equipment  
Satellite Interface Simulator  
SLP  
TRR  
Second Level Protection  
Test Readiness Review  
 
67  
Rovsing A/S  
Ejby Industrivej 38  
2600 Glostrup, Denmark  
Company reg. (CVR) no. 16 13 90 84  
Tel: +45 +45 44 200 800  
Fax: (+45) 45 44 200 801  
Website: www.rovsing.dk