Notes to the financial statements

1. ACCOUNTING PRINCIPLES

1.1. VALUATION PRINCIPLES

Fixed assets are stated at historical cost less accumulated straight-line depreciation. Current assets are stated at historical cost or at lower fair value. Foreign currency items are translated using the exchange rate at the balance sheet date. The consolidated financial statements are presented in equal euros (EUR).

Forcit Defence International Ab’s operations include projects whose manufacturing time is long. The company applies the principles of partial revenue recognition in its project operations where the project’s manufacturing time spans several accounting periods and where the project’s amounts are significant with regards to turnover. The income is recognised in the profit and loss account according to the progress of the projects (percentage of completion). The long-term project’s recognition is determined on the basis of manufactured goods in relation to the total quantity of ordered goods for the project. The costs for the projects are based on the project accounting where each project has its own project cost calculation. The costs for the projects include variable expenses for procurement and manufacturing. The partial revenue recognition reflects the significant growth in the project business during the financial year and improves the comparability between financial years.

1.2. DEPRECIATION AND AMORTISATION

Depreciation is calculated from the historical cost, and is calculated on a straight-line basis over the estimated economic life on the asset. The basis of calculation are: 

Buildings and constructions20-50
Machinery and equipment5-10
Other tangible assets10-20
Immaterial rights5-10
Other long-term expense items10
Consolidated goodwill5-10

1.3. CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements include the parent company Oy Forcit Ab and the subsidiary companies Forcit Sweden AB, Forcit Norway AS, Forcit International Oy Ab, Forcit Defence International Oy Ab, Forcit Consulting Oy, Forcit Consulting  AB, Forcit Consulting AS, O-Piblast S.A. and Forcit Ireland Ltd. The consolidated financial statements also include the associated company Vipnordic AB. Vipnordic AB’s financial statements are prepared per 31.08.2024. Forcit Consulting Oy bought the company Bergwerk Oy in January 2024. Bergwerk Oy merged with Forcit Consulting Oy on 31.8.2024. Bergwerk Oy’s results for the period 1.1. -31.8.2024 is included in the consolidated result for the accounting period. The consolidated financial statement is prepared according to the acquisition method. All intercompany transactions, balances, gains and losses are eliminated as part of the consolidation process. 

2. PROFIT AND LOSS ACCOUNT
2.1. NET SALES PER BUSINESS SECTOR
Consolidated20242023
Explosives234 934194 037
Consulting16 22815 148
Revenue recognition24 4855 155
Total275 647214 340
Parent Company20242023
Explosives142 301107 395
Revenue recognition8 6492 447
Total150 950109 841
2.2. SALARIES FOR THE REPORTING PERIOD AND THE AVERAGE NUMBER OF PERSONNEL
Consolidated20242023
Boards of Directors and CEO´s1 6571 623
Other personnel38 18732 596
Total39 84334 219
Parent Company20242023
Board of Directors and CEO803817
Other personnel21 80317 751
Total22 60618 568
During the financial period the average number of personnel20242023
Consolidated620553
Parent Company338288
2.3. OTHER OPERATING INCOME
Consolidated20242023
Income from rents181160
Other items1 4772 422
Total1 6582 583
Parent Company20242023
Intercompany transactions4 5352 905
Income from rents181160
Other items3571 029
Total5 0734 095
2.4. AUDIT FEES
Consolidated20242023
Audit fees174174
Total174174
Parent Company20242023
Audit fees6777
Total6777
2.5. APPROPRIATIONS
Parent Company20242023
Group contribution25 9407 110
2.6. DIVIDEND INCOME FROM GROUP
UNDERTAKINGS
Parent Company20242023
Dividend income from group undertakings6 0166 917
2.7. INCOME TAX
Consolidated20242023
Income tax on ordinary items7 7625 667
Change in deferred tax liability1 88348
Total9 6455 715
Parent Company20242023
Income tax on group contributions5 1881 422
Income tax on ordinary items1 3082 632
Total6 4964 054
3. BALANCE SHEET
3.1. INTANGIBLE AND TANGIBLE ASSETS
The notes include the purchase cost for the non-current assets that have not entirely been depreciated by plan. The group goodwill in the consolidated Financial Statements is depreciated over a period of 5–10 years from acquisition.

Consolidated20242023
Acquisition cost 1.1.179 894153 987
Increases148 34628 095
Decreases-260-2 187
Acquisition cost 31.12.327 980179 894
Accumulated depreciation 1.1.-104 403-95 979
Depreciation for the reporting period-31 400-8 863
Accumulated depreciation on reductions175439
Accumulated depreciation 31.12.-135 628-104 403
Increases437437
Book value on 31.12.192 78975 929
Balance value of intangible and tangible assets in production37 44018 240
Parent Company20242023
Acquisition cost 1.1.101 89482 623
Increases140 03119 347
Decreases-85-76
Acquisition cost 31.12.241 839101 894
Accumulated depreciation 1.1.-55 068-51 668
Depreciation for the reporting period-25 720-3 400
Accumulated depreciation 31.12.-80 788-55 068
Increases437437
Book value on 31.12.161 48847 263
Balance value of intangible and tangible assets in production21 0706 391
3.2. INVESTMENTS, PARENT COMPANY
SharesGroup companiesOthers
Acquisition cost 1.1.24 780287
Increases4 2130
Decreases00
Acquisition cost 31.12.28 993287
3.3. STOCKS
Consolidated20242023
Raw materials and consumables23 73818 278
Finished products4 4812 054
Purchased products13 4359 957
Advances paid12 55912 542
Total54 21342 831
Parent Company20242023
Raw materials and consumables22 43316 973
Finished products2 860421
Purchased products6 5963 795
Advances paid12 55812 541
Total44 44633 731
3.4. CONSOLIDATED COMPANIES
Participation-%ConsolidatedParent Company
Forcit International Oy Ab100100
Forcit Defence International Oy Ab *)100100
Forcit Sweden AB100100
Forcit Norway AS100100
Forcit Consulting Oy100100
Forcit Consulting AB100100
Forcit Consulting AS100100
Forcit Ireland Ltd100100
O-Pitblast S.A.5555
Vipnordic AB5050
*) The company is part of the group as of 11.5.2023.
Forcit Consulting Oy bought the company Bergwerk Oy in January 2024. Bergwerk Oy merged with Forcit Consulting Oy on 31.8.2024
3.5. CONSOLIDATED RECEIVABLES AND PAYABLES
Parent Company20242023
Long-term loan receivables243243
Trade receivables12 7057 878
Loan receivables7575
Other receivables*32 77614 502
Total receivables45 79822 698
Trade payables52195
Other debts*49 43231 752
Total payables49 48431 947
*Refers mainly to group cash pool arrangements
3.6. CHANGES IN EQUITY
Consolidated20242023
Share Capital 1.13 1493 149
Share Capital 31.12.3 1493 149
Reserve for invested unrestricted equity 1.11 0511 501
Increase of the reserve for invested unrestricted equity910
Decrease of the reserve for invested unrestricted equity-5410
Reserve for invested unrestricted equity 31.12 *)1 0501 501
Disposition fund 1.150 23634 060
Profit last year20 53421 529
Dividend for last year-7 041-5 034
Redemption of own shares-1 4330
Change in disposition fund-372-319
Disposition fund 31.12.61 92350 236
Net profit for the period35 61920 534
Total equity101 74275 419
Parent Company20242023
Share Capital 1.13 1493 149
Share Capital 31.12.3 1493 149
Reserve for invested unrestricted equity 1.11 0501 501
Increase of the reserve for invested unrestricted equity910
Decrease of the reserve for invested unrestricted equity-5410
Reserve for invested unrestricted equity 31.12 *)1 0501 501
Disposition fund 1.137 58828 576
Profit last year23 06914 046
Dividend for last year-7 041-5 034
Redemption of own shares-1 4330
Disposition fund 31.12.52 18437 588
Net profit for the period32 20723 069
Total equity88 59065 307
Distributable free funds in total 31.12.85 44162 158
*) During the financial year, the company issued 100 shares and redeemed 1,955 own shares.
3.7. APPROPRIATIONS AND DEFERRED TAX LIABILITIES
Accumulated depreciation in excess on plan
Parent Company20242023
Intangible assets
Intangible rights1 046751
Tangible assets
Buildings and constructions5 2754 363
Machinery and equipment10 6303 316
Other tangible assets-291
Total16 9228 432
Deferred tax liabilityConsolidated
2024		Consolidated
2023
The deferred tax liability from the depreciation in excess on plan and accrual reserve have been separated in the consolidated financial statements5 2213 338
20242023
The remaining depreciation difference and accrual reserve have been booked as unrestricted shareholders’ equity.10 21012 093
3.8. CURRENT LIABILITIES
The balance sheet item “Loans from financial institutions” also includes use of current account with overdraft facility.
20242023
Consolidated1 8852 106
Parent Company1 8852 106
3.9. ACCRUED EXPENCES AND ADVANCES RECEIVED
Consolidated20242023
Accrued invoices1 185838
Tax refund4616
Accrued income according to revenue recognition principles18 0425 155
Total19 2736 009
Parent Company20242023
Accrued invoices586285
Total586285
Equity and liabilities
Consolidated20242023
Accrued personnel costs8 0126 175
Other accruals7 6063 293
Reservation for long-term projects808143
Interests2333
Taxes4 4473 072
Total20 89612 716
Parent Company20242023
Accrued personnel costs3 6183 016
Other accruals6 5682 048
Interests2333
Taxes4 2541 243
Total14 4636 339
3.10. CONTINGENCIES AND COMMITMENTS
3.10.1. Leasing liabilities
Consolidated20242023
Due during the next reporting period3 2203 605
Due later6 3946 717
Total9 61410 323
Parent Company20242023
Due during the next reporting period1 5761 713
Due later2 9782 691
Total4 5544 404
3.10.2. Rental responsibility (for business premises)Consolidated
Parent Company
Due for payment during the following accounting period1 576348
Due for payment later2 978523
Total3 021871
3.10.3 Contingent liability on behalf of group companies20242023
Consolidated255267
Parent Company255267
3.10.4. Other contingent liabilities
Consolidated20242023
Contingencies on own behalf3 4573 736
Guarantees given by the bank for the company21 43315 921
Refund responsibility for value added tax on real estate investments3 123732
Parent Company20242023
Contingencies on own behalf3 3203 584
Guarantees given by the bank for the company21 43315 921
Refund responsibility for value added tax on real estate investments3 123732
3.10.5 Covenants
The company’s secured loans include covenant terms. The agreed terms are solvency and net debt/EBITDA.
In fiscal year 2024, the terms of one covenant have been exceeded. The bank has granted the company an exception to the covenant that has been exceeded.