GG St. Kongensgade 100 og 106 P/S - Annual Report 2019

 

GG St. Kongensgade 100 og 106 P/S

Østergade 1, 1.

1100 Copenhagen

CVR No. 38306847

Annual report 2019

The Annual General Meeting adopted the annual report on 28.05.2020

Jacob Kruse Rasmussen

Chairman of the General Meeting

 

Contents

Entity details                                                                                                                                                                                          2

Statement by Management                                                                                                                                                                3

Independent auditor's report                                                                                                                                                            4

Management commentary                                                                                                                                                                 7

Income statement for 2019                                                                                                                                                                8

Balance sheet at 31.12.2019                                                                                                                                                              9

Statement of changes in equity for 2019                                                                                                                                      11

Notes                                                                                                                                                                                                    12

Accounting policies                                                                                                                                                                           13

 

Entity details

Entity

GG St. Kongensgade 100 og 106 P/S Østergade 1, 1.
1100 Copenhagen

CVR No.: 38306847

Registered office:  Copenhagen Financial year: 01.01.2019 - 31.12.2019

Board of Directors Camilla Dalum, Chairman Thomas Færch
Jens Rytter

Executive Board

Thomas Færch, CEO

Auditors

Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6
P. O. Box 1600

0900 Copenhagen C

 

Statement by Management

The Board of Directors and the Executive Board have today considered and approved the annual report of GG St. Kongensgade 100 og 106 P/S for the financial year 01.01.2019 - 31.12.2019.

The annual report is presented in accordance with the Danish Financial Statements Act.

In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2019 and of the results of its operations for the financial year 01.01.2019 - 31.12.2019.

We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.

We recommend the annual report for adoption at the Annual General Meeting. Copenhagen, 28.05.2020

Executive Board

Thomas Færch

CEO

Board of Directors

 

Camilla Dalum

Chairman

 

Thomas Færch

 

Jens Rytter

 

Independent auditor's report

To the shareholders of GG St. Kongensgade 100 og 106 P/S Opinion

We have audited the financial statements of GG St. Kongensgade 100 og 106 P/S for the financial year 01.01.2019

- 31.12.2019, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act.

In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2019 and of the results of its operations for the financial year 01.01.2019 - 31.12.2019 in accordance with the Danish Financial Statements Act.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and 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 this auditor’s report. We are independent of the Entity in accordance with the International Ethics Standards Board of Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Management's responsibilities for the financial statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as 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 Entity’s ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going
concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Entity 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 about 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 can 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 Entity’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 Entity’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 Entity to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures in the notes, 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.

 

Statement on the management commentary

Management is responsible for the management commentary.

Our opinion on the financial statements does not cover the management commentary, 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 commentary and, in doing so, consider whether the management commentary is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Moreover, it is our responsibility to consider whether the management commentary provides the information required under the Danish Financial Statements Act.

Based on the work we have performed, we conclude that the management commentary is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the management commentary.

Copenhagen, 28.05.2020

Deloitte

Statsautoriseret Revisionspartnerselskab CVR No. 33963556

Lars Andersen

State Authorised Public Accountant Identification No (MNE) mne27762

 

Management commentary

Primary activities

The principal activities of the company are commerce with real estate or real estate companies and related activities.

Development in activities and finances

The result from ordinary activities is a loss of DKK 321,323 against a loss of DKK 4,698 last year. The management consider the result as expected.

Events after the balance sheet date

No events have occurred after the balance sheet date which would influence the evaluation of the annual

report. The outbreak and the spreading of the COVID-19 disease in early 2020 have not had and are not expected to have any material impact on the Entity’s financial position.

 

Income statement for 2019

	Notes	2019 DKK	2018 DKK
Gross profit/loss		(421,876)	(4,698)
Other financial income	1	109,820	0
Other financial expenses	2	(9,267)	0
Profit/loss for the year		(321,323)	(4,698)
Proposed distribution of profit and loss
Retained earnings		(321,323)	(4,698)
Proposed distribution of profit and loss		(321,323)	(4,698)

 

Balance sheet at 31.12.2019

Assets
	Notes	2019 DKK	2018 DKK
Work in progress		200,976,415	124,655,508
Inventories	3	200,976,415	124,655,508
Other receivables		0	6,233
Receivables		0	6,233
Cash	4	94,084,723	8,824
Current assets		295,061,138	124,670,565
Assets		295,061,138	124,670,565

 

Equity and liabilities
	Notes	2019 DKK	2018 DKK
Contributed capital		1,000,000	1,000,000
Retained earnings		(346,734)	(25,411)
Equity		653,266	974,589
Loans raised by the issuance of bonds		232,692,140	0
Trade payables		2,916,056	79,489
Payables to group enterprises		56,186,349	123,560,862
Other payables		2,613,327	55,625
Current liabilities other than provisions		294,407,872	123,695,976
Liabilities other than provisions		294,407,872	123,695,976
Equity and liabilities		295,061,138	124,670,565
Working conditions	5
Contingent liabilities	6
Assets charged and collateral	7
Group relations	8

 

Statement of changes in equity for 2019

	Contributed capital	Retained earnings	Total
	DKK	DKK	DKK
Equity beginning of year	1,000,000	(25,411)	974,589
Profit/loss for the year	0	(321,323)	(321,323)
Equity end of year	1,000,000	(346,734)	653,266

 

Notes

1 Other financial income
	2019 DKK	2018 DKK
Exchange rate adjustments	109,820	0
	109,820	0
2 Other financial expenses
	2019 DKK	2018 DKK
Other financial expenses	9,267	0
	9,267	0

3 Inventories

Inventories includes capitalized interest expenses and financing costs of DKK 63,284,620 (2018: DKK 15.202.149).

4 Cash

Cash includes DKK 94,084,723 where the use is restricted to specific purposes, such as interest payments, project development or construction or pledged as security.

5 Working conditions

Average number of employees                                                                                                                                                              0

6 Contingent liabilities

Entity participates in a Danish joint taxation arrangement where Gefion Group A/S serves as the administration company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc for the jointly taxed entities, and for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for the jointly taxed entities. The jointly taxed entities' total known net liability under the joint taxation arrangement is disclosed in the administration company's financial statements.

7 Assets charged and collateral

As security for the loans of DKK 232,692,140, an owner’s mortgages in the amount DKK 240,000,000 has been granted on work in progress representing a book value of DKK 200,976,415 at 31 December 2019.

8 Group relations

Name and registered office of the Parent preparing consolidated financial statements for the smallest group: Gefion Group A/S, Copenhagen

 

Accounting policies

Reporting class

This annual report has been presented in accordance with the provisions of the Danish Financial Statements Act governing reporting class B enterprises with addition of certain provisions for reporting class C.

The accounting policies applied to these financial statements are consistent with those applied last year.

Recognition and measurement

Assets are recognised in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably.

Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the value of the liability can be measured reliably.

On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item.

Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and measurement.

Income is recognised in the income statement when earned, whereas costs are recognised by the amounts attributable to this financial year.

Foreign currency translation

On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect at the payment date, or the rate at the balance sheet date, are recognised in the income statement as financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and other nonmonetary assets that have been purchased in foreign currencies are translated using historical rates.

Income statement Gross profit or loss

Gross profit or loss comprises revenue, project costs and external expenses.

Revenue

The sale method is used to recognize income on projects sold. Thus, profit are recognized once the project has been sold, construction completed and all essential elements of the sales agreement fulfilled, including delivery and transfer of risk to the buyer.

Where a sold project consist of several instalment deliveries that can be segregated and the financial effect can be assessed separately and measured reliably for each delivery, the profit on the individual instalment delivery is

 

recognized when all essential elements of the agreement have been fulfilled.

Rental income on completed projects and investment properties is accrued and recognized in accordance with the lease agreements concluded.

Other external expenses

Other external expenses include expenses relating to the Entity’s ordinary activities, including expenses for premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of receivables recognised in current assets and project costs.

Other financial income

Other financial income comprises interest income, including exchange gains on payables and transactions in foreign currencies.

Other financial expenses

Other financial expenses comprise interest expenses,payables and transactions in foreign currencies, amortisation of financial liabilities.

Balance sheet Inventories

Work in progress consist of real property projects.

The project portfolio is recognized on the basis of the direct cost attributable to the projects, including interest during the project period. Where considered necessary, the projects have been written down to a lower value, and the capitalized amounts are subjected to impairment tests on a continuous basis to ensure that the assets are written down to the extent that the carrying amount exceeds the estimated net realizable value.

Receivables

Receivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and doubtful debts.

Cash

Cash comprises cash in hand and bank deposits.

Other financial liabilities

Other financial liabilities are measured at amortised cost, which usually corresponds to nominal value.