Pleo Holding ApS
Ravnsborg Tværgade 5 C, 2200 Copenhagen
Denmark
CVR NO: 39 11 41 27
Annual Report
for 1 January – 31 December 2024
The Annual Report was presented and adopted at the Annual
General Meeting of the Company on 10 April 2025
Chairman of the General Meeting
1 | Page
Table of contents
Management’s Statement ......................................................... 2
Independent Auditor’s Report .................................................. 3
Company Information .............................................................. 5
Financial Highlights ................................................................. 6
Management’s review ................................................................ 7
Consolidated Financial Statements of the Group ................... 13
Standalone Financial Statements of the Parent ..................... 42
2 | Page
Copenhagen, 10 April 2025
Executive Management
Board of directors
3 | Page
4 | Page
CVR No 33 77 12 31
mne30221 mne33260
5 | Page
Company Information
The Company
Municipality of reg. office: Copen hagen
CVR No: 39 11 4 1 27
Financial period: 1 January - 31 December
Auditors
Board of Directors
Andreas Bernström, Chairman
Adrienne Gormley
Jeppe Rindom
Johan Erik Larsson Brenner
Lise Kaae
Merritt Susanne Hummer
Niccolo Perra
Saagar Shashank Kulkarni
Vanessa Ann Bailey
Executive Management
Jeppe Rindom
Søren Westh Lonnin
6 | Page
Financial Highlights
Seen over a five year period, the development of the Group is described by the
following financial highlights:
Financial statement
In thousands EUR
2024
2023
2022
2021*
2020*
Gross Revenue***
119,585
83,589
50,510
25,747
9,774
Net Revenue
104,075
75,735
50,262
25,747
9,774
Gross Annual Recurring Revenue
(ARR)***
136,237
102,680
64,007
36,231
15,282
Gross profit/loss
88,953
63,898
42,923
406
403
EBITDA
(43,719)
(63,405)
(75,531)
(3,415)
(1,675)
Adjusted EBITDA ***
(45,328)
(61,460)
(68,667)
(3,415)
(1,675)
EBIT
(49,596)
(66,733)
(76,622)
(25,703)
(15,181)
Net financials
4,609
5,670
(2,766)
(497)
(673)
Profit for the year
(45,609)
(61,821)
(78,988)
(25,541)
(15,153)
Balance sheet
Total assets
368,197
375,791
371,846
401,015
74,624
Total equity
148,686
186,516
239,770
284,240
34,485
Cash and cash equivalents
145,578
183,940
239,964
346,358
68,364
Cash flow statement
Cash flow from operating activities
(27,864)
(47,856)
(71,541)
(27,993)
(16,404)
Cash flow from investing activities
(8,180)
(6,131)
(4,010)
(8)
(7)
Cash flow from financing activities
(2,318)
(2,037)
(3,058)
302,095
-
Changes in cash and cash equivalents
(38,362)
(56,024)
(78,609)
277,994
(2,396)
EBITDA - Operating result before depreciation and amortisation
EBIT - Operating profit before financial income and expenses and tax
Financial ratios
2024
2023
2022
2021*
2020*
Gross-Margin**
85%
84%
85%
2%
4%
Net revenue growth
37%
51%
95%
163%
15%
EBITDA-Margin
-42%
-84%
-150%
-13%
-17%
Profit Margin
-48%
-82%
-157%
-99%
-155%
Solvency ratio
40%
50%
64%
71%
46%
Return on equity (ROE)
-31%
-29%
-30%
-16%
-36%
Employees
2024
2023
2022
2021
2020
Average number of employees
848
842
711
286
179
* Note that the financial statements for 2020–2021 have been prepared in accordance with the
Danish Financial Statements Act
** For the years 2020-2021 Gross Margin is presented in accordance with the Danish Financial
Statements Act and includes other external expenses. For the years 2022-2024 Gross margin
is presented in accordance with IFRS, and other external expenses are excluded for the
calculation of Gross Margin.
*** Non-GAAP metrics:
Gross Revenue is calculated as the Revenue before cashback deduction (see note 02)
Gross ARR is calculated as the recurring revenue from December multiplied by 12 for SaaS
and Q4.2025 revenue multiplied by 4 for the Financial Revenue
Adjusted EBITDA is calculated as operating result adjusted for the cost of warrants,
capitalization of internally generated intangible assets, rent arrangements, restructuring costs
and any significant one off in year
7 | Page
Management’s review
Business Performance & Strategy
Overview
Pleo is Europe’s leading dedicated spend management software platform for Small
and Medium-sized Businesses (“SMBs”); transforming the way they pay, manage
and stay in control of their finances. Pleo provides SMBs with a suite of offerings
covering payment (company card, invoice payments, expense reimbursement),
automation of expense handling (including accounts payable automation), credit
and cash management. Our platform supports the end-to-end process of collecting,
processing, monitoring and reimbursing company expenses, including mileage and
per diem, while delivering AI-led automation and insights across all spend types
(except payroll). Combining Pleo’s automation with direct integration to leading
accounting tools and Human-Resource Information Systems (“HRIS”), the process
of reconciliation, generating expense reports and cash management is made easy.
Pleo enables a clear view of company spend, ranging from daily expenses to major
technology and marketing investments.
Our platform is designed to support the unique needs of every user:
● Empowered Employees: Our platform suggests what employees can
spend on in alignment with our customer’s policies and budget structure.
Once spend occurs, Pleo understands the business reason, applies the right
cost allocation, and only asks for extra details if necessary.
● Real time visibility and control: Administrators are only involved
when it’s time for a simple yes-or-no decision. The Pleo product drives
compliance to complete expenses and ensure details are captured.
Employees can be trusted to spend company money where it is needed,
given the real-time visibility and control that is core to the platform.
● Compliance across entities: Our platform enables bookkeepers to
avoid chasing receipts, review incomplete expense reports, or fix errors,
compliance checks, tax allocations, and approvals happen seamlessly in the
background, regardless of how many entities you’re managing.
Our Strategy
Pleo’s market leading experience, enhanced by generative AI, sets us apart as a key
enabler of "the future of work” with sign-up, onboarding and operation underpinned
by powerful automation and product-led self-serve journeys. New customers can
sign-up to Pleo and start spending on the same day thanks to the use of advanced
machine-learning driven risk models, productised due diligence and the instant
issuance of virtual cards.
SMBs rely heavily on online channels and word-of-mouth referrals to discover and
implement new tooling. Pleo is able to deploy online marketing spend to drive an
entirely product-led sales process. Leveraging the strength of accounting, consulting
and tech-ecosystem partnerships, Pleo also taps into viral and capital-efficient
growth, amplified by our end-to-end product experience.
To maintain our position as Europe’s leading business spend solution, we have
continued to innovate on top of our core product across all markets, extending
services across accounts payable, credit, value-added services and extensive partner
integrations. For businesses where every Euro, Pound and Krone counts, we’re
proud to offer the following:
● Smart Company Cards (Physical and Virtual): Pleo issues physical
and virtual smart cards on the Mastercard payment network. As a card
issuer, Pleo offers enhanced card functionality and live controls, such as
blocking specific categories of spend, or preventing spend at certain times
of day. Alongside spend limits, expense categorisation and instant
notifications, Pleo automates the collection of email receipts, intelligently
matching them to your expenses. For everything else, users receive an
intuitive prompt to add a photo of their receipt at the moment of purchase.
Pleo offers these powerful controls across both physical and virtual cards
(including Apple and Google Pay). All cards can be deployed or frozen
instantaneously so businesses can control their spend whenever and
wherever they need it.
● Expense Management: Through the use of email automation, Optical
Character Recognition (OCR) technology and AI, Pleo captures and
prepopulates information needed for bookkeeping including splitting VAT.
Pleo consolidates all out-of-pocket expenses and provides a simple way to
process expenses, mileage and per diem claims, allowing users to reimburse
instantly for pre-approved spend types.
8 | Page
● AP Automation: Our platform leverages OCR and market-compliant
scheduling and bill-pay tooling so invoices are quickly captured, scheduled
and paid. Advanced approval flows and in-product communication allow
easy centralisation of invoices and clearly forecasted spend to optimise cash
management.
● Spend Insights: Spend placed on Pleo is enriched with insights by
generative AI to provide a 360 degree view of every transaction and ensure
better spend decisions. Pleo will inform you how your spend with vendors
compares with companies of a similar size, industry or segment and
whether you're purchasing multiple tools for the same purpose. Learning
from your spend, Pleo can build policies for you.
● Recurring Vendor Management: Managing vendors can be done with
ease. No matter how you pay, all your vendors are assembled in one place,
with Pleo notifying you of duplicate subscriptions or where multiple
vendors supply the same services. Upcoming renewals are clearly visualised
and vendor cards ensure that dedicated spend to specific vendors (such as
Cloud or Ads) is never at risk.
● Credit & Cash Management: Eligible customers can better manage and
prioritise their placement of cash by taking advantage of overdraft facilities.
Late in 2024, we announced the launch of Cash Management, enabling
businesses to manage all their bank accounts in one place, with real-time
insight, forecasting and treasury management.
● Ecosystem Integrations - To ensure the books are always closed on
time, Pleo integrates with popular accounting software such as Xero,
QuickBooks, DATEV, and Sage 50 along with the top SMB accounting tools
in each of our core markets. Integrations with HRIS enable all employees
in an organisation to be easily added to Pleo’s platform with cards
automatically distributed to new starters, and frozen for offboarded
employees. With seamless integration to travel tooling like Travelperk, all
types of spend are integrated and contextualised, end-to-end.
Commercial Model
Pleo has a dual business model, generating SaaS revenue from our platform and per-
user pricing, and financial services fees from card transactions, invoices and
additional services. Approximately half of Pleo’s revenue is from SaaS, with financial
revenue a highly stable and growing source of income as businesses drive more
spend through our platform. Pleo is positioned to be the sole tool for spend
management, enabling customers to run all of their spend through our platform.
Pleo utilises three channels to drive new business: Product-led, Sales-led and
Partner-led growth. The success of in-product upsell journeys and land-and-expand
sales strategies resulted in significant volumes of 2024 new business SaaS revenues
originating from existing accounts. Pleo’s ability to continuously gain wallet share in
a product-led motion has proven effective across markets, segments and industries
with small business sales (<50 employees) driven by product-led commercial
motions. The systemic removal of barriers to entry and ease of management remains
a core tenant to our continued growth.
Sales-led land-and-expand strategies prove highly effective across all segments,
where we enable even the smallest, single-person finance teams to onboard the most
complex multi-entity structures. For our largest customers, professional services
support enables any business to onboard hundreds of their employees with ease
while providing additional revenue streams.
As a deeply integrated player within the ecosystem, we ensure a seamless experience
for SMBs by connecting to all their key tooling. This creates a powerful channel,
where accountants, bookkeepers and consultants can both benefit from the
productivity saving of the Pleo product and also drive partner led leads through
advocacy. Similarly, our strong network of technology partners (e.g. Accounting
platforms, HRIS tooling and travel tools) provide accelerated acquisition
opportunities where our combined offerings provide world-class spend management
and productivity enhancement, collectively saving finance teams and employees
thousands of hours a year.
9 | Page
Business Performance
Reporting non-GAAP measures
To our consolidated financial statements, we utilise specific non-GAAP financial
measures as outlined below, to assess and evaluate our core operating performance.
We believe these non-GAAP financial measures offer valuable insights into our
financial performance, enhance the understanding of our historical results and
future potential, and provide greater transparency regarding key metrics that our
management relies on for financial and operational decision-making.
Financial performance in 2024
2024 saw strong net revenue growth of 37% vs 2023, resulting in 104m in net
revenue. Growth was broadly anchored across core markets and was driven by both
SaaS (Software as a service) and financial revenue. SaaS revenue grew faster than
financial revenue with growth well above 50% as growth was supported by both
increase in customer base and upselling to more value-added solutions. Growth in
financial revenue was driven by strong growth in card spending, but this was partly
offset by reduced interest income due to the reducing interest rate across the UK and
European markets.
Gross profit increased to 89m, equal to a growth of 39% compared to 2023. In turn,
gross margin increased to 85% from 84% driven by efficiency gains.
Operating expenses ended at 135m equal to an increase of 8% compared to 2023.
The growth was primarily driven by investments within Sales & Marketing and R&D
to support business growth, expand our offering to customers and continue to
mature the company. However, significant scalability was achieved as growth in
revenue materially outgrew growth in operating expenses, supported by a dedicated
effort to drive efficiency and secure scale benefits as Pleo grows.
Throughout the year the Group has incurred considerable research and development
costs amounting to almost 8m relating to the core products. The purpose of these
investments is to ensure that the Group can maintain and grow the market position
in coming years.
As a result of strong revenue growth and increased operational efficiencies, earnings
measured as adjusted EBITDA improved materially and ended at EUR -45m
compared to -61m in 2023. This corresponded to an improvement of 26%. Similarly,
net before tax loss improved to -45m, up from -61m in 2023.
Cash flow also improved materially and reached -38m compared to -56m in 2023.
This was largely driven by improved earnings.
Due to negative free cash flow and the fact that no capital injections were pursued,
the cash balance decreased to 146m. However, Pleo’s cash position remains very
solid and corresponds to a cash runway of 3-4 years at the recent free cash flow
consumption rate, without factoring in any planned improvements.
As of 31 December 2024 the balance sheet of the Group shows equity of EUR 149m.
The net loss for the year is a result of significant investments made into further
development of both product, platform, and organization in accordance with growth
plans and budgets. The results are exceeding management’s expectations and are
considered satisfactory.
Performance versus 2024 outlook
Pleo converted from Danish GAAP to the IFRS accounting standard in 2024, which
impacted certain key metrics including Net loss. In the published Danish GAAP
annual report for 2023 the outlook for 2024 included an expectation of a net loss for
2024 of DKK 395-325m or EUR 43-53m. The principle shift from the change in
accounting standard relates to expensing of granted warrants to employees and
reporting of lease obligations and would increase the loss guidance to 48-58m, so
the result for 2024 significantly exceeded the expectation by reaching 46m. Hence,
Pleo’s results are considered satisfactory.
Outlook for 2025
Following material progress on improving earnings and cash flow in recent years,
Pleo intends to increase its growth investments in 2025 through strengthening of
both its product offering and commercial distribution. Consequently, adjusted
EBITDA is expected to remain fairly stable in 2025 compared to 2024 and end with
a loss in the range of EUR 40-48m. Despite the increased investments, Pleo cash
position is expected to remain strong throughout 2025 and the following years.
10 | Page
Intellectual capital resources
Knowledge resources are essential for the Group to achieve both short- and long-
term goals in accordance with the Group's strategy. As a result, the Group is investing
significant resources in maintaining and developing competencies for all employees
with the aim of growing knowledge and capabilities.
Uncertainty relating to recognition and measurement
There is uncertainty related to the recognition and measurement of deferred tax
assets. No deferred tax asset has been recognized in the financial statement due to
uncertainty regarding the timing for future usage. The Company will assess whether
to recognize the tax asset in the coming account periods.
There are no other financial matters where estimates have or will affect the
Company’s result or balance sheet significantly.
Unusual circumstances affecting recognition and measurement
No unusual circumstances have affected this year’s recognition or measurements.
Events subsequent to the financial year
No events occurred subsequent to the balance sheet date, which would have material
impact on the financial position of the company.
11 | Page
12 | Page
13 | Page
Consolidated Financial Statements of the Group
Table of contents
Consolidated statement of profit or loss ................................................ 14
Consolidated statement of other comprehensive income ..................... 14
Consolidated statement of financial position ........................................ 15
Consolidated statement of cash flow ..................................................... 16
Consolidated statement of changes in equity ........................................ 17
Notes to the consolidated financial statements ..................................... 18
Basis of preparation ............................................................................... 18
Note 01 Significant accounting estimates and judgements .................. 20
Note 02 Revenue from contracts with customers ................................. 21
Note 03 Staff cost .................................................................................. 24
Note 04 Share based payments ............................................................. 25
Note 05 Financial income and expenses ............................................... 28
Note 06 Income Tax .............................................................................. 29
Note 07 Deferred Tax ............................................................................ 29
Note 08 Receivables .............................................................................. 30
Note 09 Leases ....................................................................................... 31
Note 10 Non-current intangible assets ................................................. 32
Note 11 Property, plant and Equipment ............................................... 33
Note 12 Non-current financial assets .................................................... 34
Note 13 Financial instruments .............................................................. 35
Note 14 Financial Assets and liabilities ................................................ 36
Note 15 Financial risk management ...................................................... 37
Note 16 Cash flow specifications ........................................................... 38
Note 17 Cash at bank and in hand ......................................................... 39
Note 18 Customer funds ........................................................................ 39
Note 19 Other liabilities ......................................................................... 39
Note 20 Contingent liabilities, commitments and contingencies ........ 39
Note 21 Fees to auditors appointed at the Annual General Meeting .... 40
Note 22 Equity ....................................................................................... 40
Note 23 Capital Management ................................................................ 41
Note 24 Subsequent events ................................................................... 41
Note 25 Related party transactions ....................................................... 41
Note 26 Investment in subsidiaries ....................................................... 41
14 | Page
Consolidated statement of profit or loss
1 January – 31 December
In thousands EUR
Notes
2024
2023
Revenue from contract with customers
Interest revenue
Total Revenue
2
Cost of goods and service
(15,122 )
(11,837 )
Gross profit
Staff costs
3
(93,275 )
(90,150 )
Other external expenses
(39,397 )
(37,153 )
Operating result before depreciation
and amortisation (EBITDA)
(43,719 )
(63,405 )
Depreciation and amortisation
(5,877 )
(3,328 )
Operating profit before financial
income and expenses (EBIT)
(49,596 )
(66,733 )
Financial income
5
Financial expenses
5
(346 )
(154 )
Loss before tax
(44,987 )
(61,063 )
Tax on profit / loss for the year
6
(622 )
(758 )
Net loss for the year
(45,609 )
(61,821 )
Consolidated statement of other
comprehensive income
1 January – 31 December
In thousands EUR
Notes
2024
2023
Loss for the year
(45,609 )
(61,821 )
Items that may be reclassified to profit or loss:
Exchange differences on translation of
foreign operations
(892 )
Income tax impact
Other comprehensive income for the
period, net of tax
(892 )
Total comprehensive income
(45,596 )
(62,713 )
15 | Page
Consolidated statement of financial position
As at 31 December
In thousands EUR
Notes
2024
2023
Intangible assets
10
Property, plant and equipment
11
Right of use assets
9
Non-current financial assets
12
Total non-current assets
Inventories
Trade receivables and other
receivables
8
Current financial assets
13
Current income tax assets
Prepayments
Other current assets
Deposits from customers
13, 18
Cash and cash equivalents
13, 17
Total current assets
Total assets
In thousands EUR
Notes
2024
2023
Share capital
Share premium
Share-based payments
Retained earnings
(244,039 )
(198,430 )
Foreign Currency Translation
Reserve
(648 )
(661 )
Total equity
Lease liabilities
9, 14
Total non-current liabilities
Lease liabilities
9, 14
Current income tax liabilities
Trade payables and other
payables
13
Loan borrowings
Contract liabilities
2, 13
Other liabilities
13, 19
Total current liabilities
Total liabilities
Total equity and liabilities
16 | Page
Consolidated statement of cash flow
1 January – 31 December
In thousands EUR
Notes
2024
2023
Operating result before depreciation and amortisation
(EBITDA)
(43,719 )
(63,405 )
Share-based payment
Change in working capital
16
Interest received
5
Interest paid
5
(346 )
(76 )
Income taxes paid/received
(1,129 )
Other adjustments
16
(881 )
Cash flow from operating activities
(27,864 )
(47,856 )
Fixed asset investments made
(270 )
(152 )
Intangible assets
(7,910 )
(5,979 )
Cash flow from investing activities
(8,180 )
(6,131 )
Principal elements of lease payments
(2,318 )
(2,037 )
Cash flow from financing activities
(2,318 )
(2,037 )
Cash flow for the year
(38,362 )
(56,024 )
Cash and cash equivalents at the beginning of
the financial year
17
Effects of exchange rate changes on cash and
cash equivalents
Cash and cash equivalents at end of year
Accounting policies
Cash Flow Statement
The cash flow statement shows the Group´s cash flows for the year broken down
by operating, investing and financing activities, changes for the year in cash and
cash equivalents as well as the Group´s cash and cash equivalents at the
beginning and end of the year.
Cash flows from operating activities
Cash flows from operating activities are calculated as the net profit/loss for the
year adjusted for changes in working capital and non-cash operating items such
as depreciation, amortisation and impairment losses, and provisions. Working
capital comprises current assets less short-term debt excluding items included in
cash and cash equivalents.
Cash flows from investing activities
Cash flows from investing activities comprise cash flows from acquisitions and
disposals of intangible assets, property, plant and equipment as well as fixed asset
investments.
Cash flows from financing activities
Cash flows from financing activities comprise cash flows from the raising and
repayment of long-term debt as well as payments to and from shareholders.
Cash and cash equivalents
Cash and cash equivalents comprise” Cash at bank and in hand”.
17 | Page
Consolidated statement of changes in equity
In thousands EUR
Share capital
Share Premium
Share-Based
Payments
Accumulated loss
Foreign Currency
exchange
Total equity
At 1 January 2024
(198,430 )
(661 )
Loss for the period
(45,609 )
(45,609 )
Other comprehensive income
Total comprehensive income
(45,609 )
(45,596 )
Share-Based Payment awards
vesting
Total equity transactions
As at 31 December 2024
(244,039 )
(648 )
In thousands EUR
Share capital
Share Premium
Share-Based
Payments
Accumulated loss
Foreign Currency
exchange
Total equity
At 1 January 2023
(136,609 )
Loss for the period
(61,821 )
-
(61,821 )
Other comprehensive income
(892 )
(892 )
Total comprehensive income
(61,821 )
(892 )
(62,713 )
Share-Based Payment awards
vesting
Total equity transactions
As at 31 December 2023
(198,430 )
(661 )
18 | Page
Notes to the consolidated financial statements
Basis of preparation
Introduction
The Consolidated financial statements of Pleo Holding ApS comprises the
consolidated financial statements of Pleo Holding ApS and its subsidiaries (‘the
Group’).
The Board of Directors and Executive Board considered and approved these 31
December 2024 consolidated IFRS financial statements of Pleo Holding ApS on 10
April 2025.
Basis of preparation
The consolidated financial statements of the Group have been prepared in
accordance with IFRS accounting Standards as adopted by the EU as well as
additional Danish disclosure requirements applying to entities of reporting class C
for large enterprises.
The Group has adopted the IFRS accounting standards as adopted by the EU in 2023
through a separate document available at https://www.pleo.io/legal-
documents/signed-financial-statements.pdf. These consolidated financial
statements were authorised for issue by the Board of Directors on 20 March 2025
and comprise the explanation of the first-time adoption of IFRS as required by
IFRS 1.
The financial statements have been prepared on a historical cost basis.
The consolidated financial statements are presented in EUR and all values are
rounded to the nearest thousands, except when otherwise indicated.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and
interpretations have been published that are not mandatory for 31 December 2024
reporting periods and have not been early adopted by the Group. These standards,
amendments or interpretations are not expected to have a material impact on the
Group in the current or future reporting periods and on foreseeable future
transactions.
Principles of consolidation
Subsidiaries are all entities over which the group has control. The group controls an
entity where the group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the group. They are deconsolidated from
the date that control ceases.
Inter-company transactions, balances and unrealised gains on transactions between
group companies are eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the transferred asset. Accounting
policies of subsidiaries have been changed where necessary to ensure consistency
with the policies adopted by the group.
19 | Page
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the group’s entities are
measured using the currency of the primary economic environment in which the
entity operates (‘the functional currency’). The consolidated financial statements are
presented in Euro (EUR). The functional currency for Pleo Holding ApS which is the
parent company of the group is Danish Kroner (DKK).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the
exchange rates at the dates of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions, and from the translation of
monetary assets and liabilities denominated in foreign currencies at year end
exchange rates, are generally recognised in profit or loss. They are deferred in equity
if they are attributable to part of the net investment in a foreign operation.
The results and financial position of foreign operations that have a functional
currency different from Euro are translated into Euro as follows:
- assets and liabilities for each balance sheet presented are translated at the closing
rate at the date of that balance sheet
- income and expenses for each statement of profit or loss and statement of
comprehensive income are translated at average exchange rate over the accounting
period, and
- all resulting exchange differences are recognised in other comprehensive income
On consolidation, exchange differences arising from the translation of any net
investment in foreign entities are recognised in other comprehensive income. When
a foreign operation is sold the associated exchange differences are reclassified to
profit or loss, as part of the gain or loss on sale.
Accounting policies:
Accounting policies for items which are not covered by a separate note
Other operating income and expenses
Other operating income and other operating expenses comprise items of a secondary
nature to the main activities of the Group, including gains and losses on the sale of
intangible assets and property, plant and equipment.
Prepayments
Prepayments comprise prepaid expenses concerning rent, insurance premiums,
subscriptions and interest.
Inventories
Inventories consist of physical cards and IT equipment used for the product.
Inventories are measured at the lower of cost under the weighted average price
method adjusted for gains and losses from hedging instruments and net realizable
value. The net realizable value of inventories is calculated at the amount expected to
be generated by sale of the inventories in the process of normal operations with
deduction of selling expenses. The net realisable value is determined allowing for
marketability, obsolescence and development in expected selling price
Financial Highlights
Explanation on financial ratios
Gross margin
!"#$$%&"#'() % *%+,,
-./.01.
Net revenue growth
2-./.01.3-./.01.%(0%)4.%5#6&7"7)(/.%&."(#89%*%+,,
-./.01.
EBITDA margin
:;<=>?%*%+,,
-./.01.
Profit margin
@"#'()%A.'#".%'(0705(7B$%%*%+,,
-./.01.
Solvency ratio
:C1()D%7)%D.7"%.08 %*%+,,
=#)7B%7$$.)$%7)%D.7"%.08
Return on equity
@"#'()%#'%)4.%D.7"%*%+,,
?/."7E.%)#)7B%.C1()D%7)%D.7"%.08
20 | Page
Note 01 Significant accounting estimates and
judgements
The preparation of financial statements requires the use of accounting estimates
which, by definition, will seldom equal the actual results. Management also needs
to exercise judgement in applying the group’s accounting policies.
This note provides an overview of the areas that involve a higher degree of
judgement or complexity, and of items which are more likely to be materially
adjusted due to estimates and assumptions turning out to be wrong. Detailed
information about each of these estimates and judgements is included in other
notes together with information about the basis of calculation for each affected line
item in the financial statements.
For critical estimates and judgments, please refer to the following notes:
Significant estimates:
● Revenue from Contracts with Customers in note 2
● Share-based payments in note 4
Significant judgement:
● Deposits from customer funds in note 18
21 | Page
Note 02 Revenue from contracts with
customers
Pleo’s revenue is primarily based on providing financial management services to
businesses, with a strong focus on simplifying and automating expense reporting
and administrative processes.
Pleo derive revenue from two revenue streams being subscriptions to Pleo’s Platform
for expense management incl. fees on card transactions from customers and fees on
card transactions from merchants.
Subscription fee to Pleo’s platform and fees on card transactions
(Software as a service)
Subscriptions to Pleo's platform for expense management are structured in
membership tiers, with each tier offering an increasing number of features and
benefits. The customer is granted access to the Platform for a specific number of
users and receive a fixed number of Pleo cards. The customer can elect to end their
engagement with additional services, user accesses and cards at each tier against an
increase in the subscription fee. The customer pays the subscription fee upfront
either monthly or yearly. Customers choosing the yearly payments method receive
an early payment discount.
Pleo offers a cashback rewards program to eligible customers based on the volume
of card transactions. Cashback rewards are earned monthly and are transferred to
the customer’s balance (wallet) the following month.
Fees on card transactions paid by Pleo’s customers are incurred when customers use
the Pleo card. These fees are transactional and can be based on either a fixed price
or a variable price, depending on the transaction volume.
Fees on card transactions paid by merchants (Financial services)
Fees on card transactions paid by merchants are derived from the usage of the Pleo
Card as the merchants pays for the processing the payment. The fees are
transactional and are either based on a fixed price or a variable price depending on
the transaction volume. Fees on card transactions paid by merchants are assessed to
constitute a single performance obligation being the customer’s ability to make
transactions with the merchant by using the underlying payment
service/infrastructure provided by a third-party.
Revenue is disaggregated based on:
● Revenue stream
● Geographical regions
● Over-time/Point in time
In thousands EUR
2024
2023
Revenue streams
Financial services*
59,602
45,191
Software as a service*
54,914
35,084
Interest earned using the amortised cost method
5,069
3,314
Total gross revenue
119,585
83,589
Cash back*
(15,510)
(7,854)
Total net revenue
104,075
75,735
* Revenue streams accounted for applying IFRS 15 Revenue from Contracts with Customers
In thousands EUR
2024
2023
Geographical regions
Nordics
30,465
24,430
EU
28,585
17,651
Rest of Europe
39,956
30,340
Total revenue in scope of IFRS 15
99,006
72,421
Interest earned using the amortised cost method
5,069
3,314
Total net revenue
104,075
75,735
22 | Page
In thousands EUR
2024
2023
Over time/Point in time
Revenue recognised at a point in time
59,602
45,191
Revenue recognised over time
39,404
27,230
Interest earned using the amortised cost method
5,069
3,314
Total net revenue
104,075
75,735
Interest earned using the amortised cost method
In the process of managing the customer funds received, the funds are deposited on
selected secure interest-bearing bank accounts meeting relevant safeguarding
requirements.
Significant accounting estimate
Stand-alone selling prices
Pleo has entered into a business arrangement with a third party where Pleo is both
paying for utilising the third party's payment infrastructure and at the same time is
entitled to arrangement fees for the transactions that are initiated by a Pleo issued third
party payment card. The business arrangement is negotiated as one contract and
therefore, Management has assessed whether the fees received and paid reflect stand
alone prices for such services. Pleo has entered into the business arrangement with the
third party on its standard terms and therefore, considers the respective fees as
reflecting stand alone prices for such services.
Accounting policies
Subscription fee to Pleo’s platform and fees on card
transactions
Revenue Recognition
Revenue from subscriptions is recognized over time, as customers simultaneously
receive and consume the benefits of the subscription. In contrast, revenue from fees
on card transactions is recognized at a point in time, when the transaction is
completed. Pleo consider the cashback rewards as consideration payable to a
customer, and it is recorded as contra revenue within Revenue on the Income
Statement.
Fees on Card Transactions
Management has determined that none of the deliverables within the subscription
package (e.g., Pleo card, Pleo wallet, expense management services, etc.) can be
considered distinct. This conclusion is based on the interdependence of these
deliverables, as Pleo does not sell any individual component on a standalone basis.
The goods and services are bundled into a combined output (e.g., a Pleo card cannot
be used without an associated Pleo wallet), making them highly interrelated.
As the contract represents a single performance obligation, management has
determined that variable consideration related to fees and charges is allocated to
the goods and services forming this single performance obligation. This allocation
follows the series provision in IFRS, as the fees and charges are substantially the
same and exhibit the same pattern of transfer to the customer.
Fees on card transactions paid by merchants
Revenue related is satisfied at a point in time when the transaction is completed.
Fees earned from merchants and Pleo's cut in the interchange fees reflect actual
stand-alone prices because Pleo’s settlement with third parties follow general rules
which is applied to all participants. As such, revenue from fees on card transactions
paid by merchants are recognized on a gross basis with an associated cost of sales.
Interest earned using the amortised cost method
Management considers the interest income as an integral part of the business model
and therefore Management’s assessment is that these interests are to be classified
as part of revenue.
23 | Page
Contract liabilities
The group has recognised the following assets and liabilities related to contracts with
customers:
In thousands EUR
2024
2023
Contract liabilities at beginning of the period
(7,568)
(2,534)
Revenue recognised that was included in the contract
liability balance at the beginning of the period
7,568
2,534
Payments received, excluding amounts recognised as
revenue during the period
(15,719)
(7,568)
Contract liabilities total at end of the period
(15,719)
(7,568)
Amounts allocated to performance obligations that are unsatisfied or partially unsatisfied as
of the end of the reporting period amounts to TEUR 15,719 for 2024 (2023: TEUR 7,568). The
transaction price allocated to unsatisfied performance obligations as per year end is expected
to be recognised as revenue within the following 12 months.
Accounting policies
The contract liabilities arise upon the receipt of yearly subscription payments to access
Pleo’s Platform for expenses management. Due to the length of the subscription,
maximum one year, the entire contract liability at the beginning of the period have been
recognised as revenue in the period.
24 | Page
Note 03 Staff cost
In thousands EUR
2024
2023
Wages and salaries
77,895
73,013
Defined contribution plans
1,722
2,089
Social security costs
10,787
8,685
Share-based payments, Note 4
7,766
9,459
Other staff costs
3,015
2,884
Work on own account recognised in assets
(7,910)
(5,980)
Total
93,275
90,150
Average number of employees
Key management personnel compensation
The Board of Directors and Executive Management team are not covered by any pension
schemes. The compensation paid or payables to key management personnel for employee
services is shown below. Key Management is defined as the Executive Board, the Board of
directors and the Management Group.
Refer to note 04 for more information on the share-based payment program.
In thousands EUR
Executive
board
Board of
directors
Other key
management
Total
2024
Wages and salaries
657
89
1,352
2,098
Share-based payments
564
50
1,201
1,815
Social security costs
30
14
194
238
Total
1,251
153
2,747
4,151
In thousands EUR
Executive
board
Board of
directors
Other key
management
Total
2023
Wages and salaries
346
24
827
1,197
Share-based payments
305
100
1,232
1,637
Social security costs
16
4
75
95
Total
667
128
2,134
2,929
Accounting policies
Wages, salaries, social security contributions, pension contributions, paid
annual leave and sick leave, bonuses, and non-monetary benefits are
accrued in the year in which the associated services are rendered by
employees of the Group. Where the Group provides long-term employee
benefits, the costs are accrued to match the rendering of the services by
the employees.
Employee benefits - Pensions
For defined contribution plans, the Group pays contributions to publicly
or privately administered pension insurance plans on a mandatory,
contractual or voluntary basis. The Group has no further payment
obligations once the contributions have been paid. The contributions are
recognized as employee benefit expense when they are due. Prepaid
contributions are recognized as an asset to the extent that a cash refund
or a reduction in the future payments is available.
25 | Page
Note 04 Share based payments
Pleo Holding has implemented incentive programmes to provide long-term incentives for
participants (Executive Management and full-time employees) to deliver long-term
shareholder return. The programmes are important to retain the participants in the group.
Pleo Holding has implemented two long-term incentive programs for Management and
employees. One being a warrants programme and the other being a Restricted Stock Unit
("RSU") program. These two programs are the only outstanding share-based remuneration
programs as of 31 December 2024.
Below is a summary of the share-based instruments granted under the incentive programmes.
Restricted Stock Unit ("RSU") programme
Management and employees in the Pleo Group have been offered the opportunity to receive
RSU's in the Group. The RSU's are granted with an exercise price of EUR 0.8 per RSU to the
employees. The grant of RSU’s to the participants is an one-off offer and not part of an ongoing
program.
The RSU’s vested immediately upon grant. The RSU’s granted are currently not exercisable.
The employee is delivered a number of common shares in the Group equal to the number of
RSU's having vested (one RSU to one ordinary share) at a futures exercise date. The RSU can
be exercised in 2030 or at an earlier exit event. Grant, vesting and/or exercise is not subject to
achievement of performance targets.
In total 60.026 RSU's were granted to Management and employees during 2024 (24,663
during 2023) and staff expenses of TEUR 1,043 was recognised in the income statement for
the year 2024 (1,880 in 2023).
Warrant programme
Mid-level and higher-level managers have been offered the opportunity to receive warrants in
the Group. The warrants are granted free of charge to the participants. Warrants have been
granted to employees of Pleo Holding Group since 2017.
The warrants vest over a period of three to four years. In an exit event, warrants are subject to
accelerated vesting. The vested warrants give the holder the right but not an obligation to
convert the warrants into common-shares. Grant, vesting and/or exercise is not subject to
achievement of performance targets, but conditional on continued employment during the
vesting period (service condition).
● In 2020 a total of 645,306 warrants were granted to Management and employees
with a vesting period from 12-48 months and an exercise price between EUR 1.48
and EUR 31.54. Expenses recognised in 2024 amounts to tEUR 686 (tEUR 1,901 in
2023).
● In 2021 a total of 270,090 warrants were granted to Management and employees
with a vesting period from 12-48 months and an exercise price between EUR 4.70
and EUR 80.54. Expenses recognised in 2024 amounts to tEUR 717 (tEUR2,170 in
2023).
● In 2022 a total of 262,720 warrants were granted to Management and employees
with a vesting period from 36-48 months and an exercise price between EUR 67.11
and EUR 80.54. Expenses recognised in 2024 amounts to tEUR 1,833 (tEUR 2,624
in 2023).
● In 2023 a total of 222,203 warrants were granted to Management and employees
with a vesting period of 48 months and an exercise price between EUR 53.69 and
EUR 80.54. Expenses recognised in 2024 amounts to tEUR 2,259 (tEUR 884 in
2023).
● In 2024 a total of 583,355 warrants were granted to Management and employees
with a vesting period of 48 months and an exercise price between EUR 53.63 and
EUR 80.45. Expenses recognised in 2024 amounts to tEUR 1,226.
Set out below are summaries of shares granted under the incentive programmes.
Pleo Holding has applied the Monte Carlo Simulation to determine the fair value on the grant
date for each of the RSU and warrant programmes, respectively. Service and non-market
performance conditions attached to the arrangements were not taken into account in
measuring the fair value. The expected volatility below is based on historical volatility. The
inputs used to measure the fair values at grant date of the equity-settled share-based payments
were as follows. Fair value on a Monte Carlo simulation using a sample of 10.000 random
draws. The future estimated value of equity on different exit dates is simulated based on a
geometric Brownian motion, taking into account the expected share price volatility, drift factor,
dilution from exercise of other warrants and the effect of the liquidation preference for
preference shares.
26 | Page
2024
2023
Types of awards:
Warrants
Restricted
Stock Units
(RSU)
Warrants
Restricted
Stock Units
(RSU)
Grant date
up to 31-Dec-
24
up to 31-Dec-
24
up to 31-Dec-23
31-dec-23
No. of instruments
outstanding
2,010,738
84.599
1,488,772
24,663
Contract life, Years
2.5
2.5
3.5
3.5
Total fair value at
grant (tEUR)
55,052
4,031
50,012
1,903
Costs recognised
(tEUR)
6,724
1,043
7,579
1,880
Specification of key valuation inputs
2024
2023
Share price at date of grant
DKK 331
DKK 583
Dividend Yield
-
-
Expected term, Year
2-3
3-4
Risk free rate
1.7%-1.9%
2.2%-2.4%
Share price volatility of the company
54.3%
46.8%
Accounting policies
Share-based payments
The fair value of warrants and RSUs granted under the Group's share-based
remuneration programme is recognised as an employee benefits expense, with
a corresponding increase in equity. The total amount to be expensed is
determined by reference to the fair value of the warrants and RSUs granted
including any market performance conditions, excluding the impact of any
service and non-market performance vesting conditions, and including the
impact of any non-vesting conditions.
The total expense is recognised over the vesting period, which is the period
over which all the specified vesting conditions are to be satisfied. At the end of
each period, the entity revises its estimates of the number of warrants and
RSU’s that are expected to vest based on the non-market vesting and service
conditions. It recognises the impact of the revision to original estimates, if any,
in profit or loss, with a corresponding adjustment to equity.
Significant estimate
Valuation of share-based payments awards
Estimating fair value for share-based payment transactions requires determination
of the most appropriate valuation model, which depends on the terms and conditions
of the grant.
This estimate also requires determination of the most appropriate inputs to the
valuation model.
In valuing the shares, Management has applied a valuation technique and the
subscription price in capital increase that focuses on the Group as a starting point
and includes market multiples. In addition, recent capital increase premiums
compared to the observable multiples have been considered when estimating the
value of the shares. Due to differences between the capital increase premiums paid
and market multiples, the valuation model amortises the excess premium from
capital increases over a period of time. The assumptions and models used for
estimating the fair value of the incentive programme are disclosed above.
27 | Page
Specification of
outstanding warrants
Weighted
average exercise
price (DKK)
Key
Management
Employees
Total
Outstanding 1 January
2023
211
343,957
975,778
1,319,735
Granted
463
43,843
178,360
222,203
Exercised
Cancelled
Forfeited
464
(53,166)
(53,166)
Expired
Outstanding 31
December 2023
231
387,800
1,100,972
1,488,772
Granted
505
275,000
308,355
583,355
Exercised
Cancelled
Forfeited
503
-
(61,389)
(61,389)
Expired
Outstanding 31
December 2024
302
662,800
1,347,938
2,010,738
As per 31 December 2024 none of the outstanding warrants were exercisable (2023: none)
Specification of
outstanding RSU
Weighted
average exercise
price (DKK)
Key
Management
Employees
Total
Outstanding 1 January
2023
Granted
6
150
24,513
24,663
Exercised
Cancelled
Forfeited
Expired
Outstanding 31
December 2023
6
150
24,513
24,663
Granted
6
35,180
24,846
60,026
Exercised
Cancelled
Forfeited
6
-
(90)
(90)
Expired
Outstanding 31
December 2024
6
35,330
49,269
84,599
As per 31 December 2024 none of the outstanding RSU’s where exercisable (2023: none)
28 | Page
Note 05 Financial income and expenses
In thousands EUR
2024
2023
Financial income
Interest income
4,534
5,177
Realized/Unrealized Exchange
421
647
Total
4,955
5,824
Interest income arising from assets not measured at fair value amounts to 4,534 TEUR for
2024 (2023: 5,177 TEUR).
In thousands EUR
2024
2023
Financial expenses
Other financial expenses
224
5
Leases expenses
122
149
Total
346
154
Interest expenses arising from liabilities not measured at fair value amounts to -224 TEUR
for 2024 (2023: -5 TEUR).
Accounting policies
Financial income and costs comprise interest income and costs; realised and
unrealised gains and losses on receivables, payables and transactions
denominated in foreign currencies; realised gains and losses on securities;
amortisation of financial assets and liabilities; interests on leasing agreements;
bank charges and fees etc. Also included are realised and unrealised gains and
losses on derivative financial instruments that are not designated as hedges.
29 | Page
Note 06 Income Tax
In thousands EUR
2024
2023
Current tax
Current tax on profits for the year
(622)
(758)
Total
(622)
(758)
Reconciliation of effective tax rate
Tax at the Danish tax rate of 22% (2023: 22%)
9,814
13,434
Less tax in foreign operations compared to 22%
22
(10)
Deferred tax assets on tax losses not recognised
(8,760)
(12,050)
Non tax deductible share-based payments expense
(1,709)
(2,081)
Adjustments for current tax of prior periods
(45)
-
Other Non-taxable/non-deductible items
56
(51)
Total
(622)
(758)
Note 07 Deferred Tax
In thousands EUR
2024
2023
Deferred tax relates to:
Right-of-use assets
820
1,030
Lease liabilities
(773)
(547)
Tax losses carried forward
(47)
(483)
Total
-
-
The group has unrecognised tax assets in a number of jurisdictions primarily within
Denmark, the unrecognised tax assets are in the range of approximately EUR 48 million as of
31 December 2024 (EUR 41 million as of 31 December 2023) and has not been recognised
due to uncertainties of the utilisation within the next three years. There is no expiration date
on tax loss carried forward. A change in ownership of the group may result in restrictions on
the group’s ability to use tax losses in certain jurisdictions.
Accounting policies
Tax
Tax for the year consists of current tax and deferred tax, including adjustments
to previous years and changes in provision for uncertain tax positions are
assessed per transaction and recognised as an adjustment to either current or
deferred tax based on the most likely scenario. The tax attributable to the profit
for the year is recognised in the income statement, whereas the tax attributable
to equity transactions is recognised directly in equity. The tax expense relating to
items recognised in other comprehensive income is recognised in other
comprehensive income.
Current tax liabilities and receivables are recognised in the balance sheet at the
amounts calculated on the taxable income for the year adjusted for tax on taxable
incomes for prior years and for taxes paid on account.
Accounting policies
Deferred tax
Deferred income tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. A
deferred income tax asset or liability is also not accounted for if it arises
from initial recognition of an asset or liability in a transaction other than a
business combination that, at the time of the transaction, affects neither
accounting nor taxable profit or loss. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantively enacted
by the end of the reporting period and are expected to apply when the
related deferred income tax asset is realized or the deferred income tax
liability is settled.
30 | Page
Note 08 Receivables
In thousands EUR
2024
2023
Trade receivables from contracts
2,973
1,303
Expected credit loss
(345)
(96)
Net trade receivables
2,628
1,207
Due to the short-term nature of the current receivables, their carrying amount is considered
to be the same as their fair value. Please refer to note 15 for a description of the expected
credit losses and risks regarding trade receivables.
2024
Receivables maturity in thousands EUR
Gross
amount
loss
allowance
Days past due:
Not overdue
1,840
-
0-3 days
176
-
4-30 days
428
60
31-90 days
520
276
More than 90 days
9
9
Total at 31 December
2,973
345
2023
Receivables maturity in thousands EUR
Gross
amount
Loss
allowance
Days past due:
Not overdue
842
-
0-3 days
230
2
4-30 days
132
32
31-90 days
99
62
More than 90 days
-
-
Total at 31 December
1,303
96
In thousands EUR
2024
2023
Expected credit loss allowance
1 January
96
498
Addition
345
96
Utilization
(96)
(498)
Reversal
-
-
Write downs at 31 December
345
96
The last five years realised credit losses on trade receivables have been insignificant and the
loss rate is below 0.1% (2023: 0.1%) of the revenue in any of the respective years.
Accounting policies
Trade receivables
Trade receivables are amounts due from contracts as part of the ordinary
course of business. Trade receivables are recognized initially at the amount
of consideration that is unconditional. The Group holds the trade receivable
with the objective of collecting the contractual cash flows and therefore
measures them subsequently at amortized cost using the effective interest
method, less allowance for lifetime expected losses. Pleo applies the IFRS 9
simplified approach to measuring expected credit losses which uses a
lifetime expected loss for all trade receivables.
Impairment losses on trade receivables are presented as net impairment
losses within operating profit. Subsequent recoveries of amounts previously
written down are recognized as a reduction of costs against the same line
item.
Payment terms are set at 30 to 60 days from the invoice date. Payments
must be made within this period unless otherwise agreed in writing.
31 | Page
Note 09 Leases
In thousands EUR
2024
2023
Right of use assets - Costs:
At 1 January
8,249
5,765
Exchange rate adjustment
60
(7)
Additions
1,492
2,491
Disposals
(214)
-
At 31 December
9,587
8,249
Accumulated depreciation and impairment:
At 1 January
3,569
1,651
Exchange rate adjustment
29
(4)
Depreciation charges
2,465
1,922
Disposals
(207)
-
At 31 December
5,856
3,569
Net carrying amount at 31 December
3,731
4,681
Lease liabilities
Current lease liabilities
2,311
2,294
Non-current lease liabilities
1,644
2,487
Total
3,955
4,781
Amounts recognized in the income statement
Depreciation charges (included in depreciation, amortisation
and impairments)
2,465
1,922
Interests related to lease liabilities (included in finance costs)
122
150
Total
2,587
2,072
In 2024, the Group paid TEUR 3,568 (2023: TEUR 2,037) related to leases. Right-of use
assets comprise rented offices. The right-of use assets are depreciated over 3-5 years.
Accounting policies
Leases
Office lease contracts are typically made for one to five years but may have
extension and termination options.
Assets and liabilities arising from a lease are initially measured on a
present value basis. Lease liabilities include the net present value of fixed
payments (including in-substance fixed payments); any variable lease
payment that is based on an index or a rate, initially measured using the
index or rate at the commencement date and the exercise price of a
purchase option if the Group is reasonably certain of exercising that
option. Lease payments to be made under reasonably certain extension
options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the
lease or lessee’s incremental borrowing rate if the implicit interest rate
cannot be readily determined
Lease payments are allocated between principal and finance cost. The
finance cost is charged to profit or loss over the lease period to produce a
constant periodic rate of interest on the remaining balance of the liability
for each period.
Right-of-use assets are measured at cost which comprises the amount of
the initial measurement of the lease liability; any initial direct costs; the
estimated restoration costs and any lease payments made at or before the
commencement date less any lease incentives received. Right-of-use assets
are depreciated over the lease term on a straight-line basis.
Short-term leases are leases with a lease term of 12 months or less without
a purchase option.
32 | Page
Note 10 Non-current intangible assets
In thousands EUR
Completed
development
projects
Development
projects in
progress
Total
Cost at 1 January 2024
6,689
1,670
8,359
Currency adj.
(1)
-
(1)
Additions
-
7,910
7,910
Transfers
6,403
(6,403)
-
At 31 December 2024
13,091
3,177
16,268
Accumulated depreciation and impairment:
At 1 January 2024
1,729
-
1,729
Currency adj.
-
-
-
Amortisation charge
3,366
-
3,366
Impairment
-
-
-
At 31 December 2024
5,095
-
5,095
Carrying amount 31 December 2024
7,996
3,177
11,173
In thousands EUR
Completed
development
projects
Development
projects in
progress
Total
Cost at 1 January 2023
2,387
-
2,387
Additions
-
5,979
5,979
Currency adj.
(7)
-
(7)
Transfers
4,309
(4,309)
-
At 31 December 2023
6,689
1,670
8,359
Accumulated depreciation and impairment:
At 1 January 2023
398
-
398
Amortisation charge
1,332
-
1,332
Impairment
-
-
-
At 31 December 2023
1,729
-
1,729
Carrying amount 31 December 2023
4,959
1,670
6,629
Accounting policies
Development projects in progress
Development projects in progress, primarily development of IT software, are
recognised as non-current intangible assets if the following criteria are met:
• The projects are clearly defined and identifiable.
• The Group intends to use the projects once completed.
• The future earnings from the projects are expected to cover the
development and administrative costs, and
• The costs can be reliably measured.
The carrying amount of completed software and development projects in progress
primarily relates to IT Software.
The amortisation of capitalised development projects starts after the completion
of the development project and is recognised on a straight-line basis over the
expected useful life, which normally is 3-5 years. In this case it is required to
perform an impairment test yearly or whenever there is an indicator for
impairment.
33 | Page
Note 11 Property, plant and Equipment
In thousands EUR
Leasehold
improvements
Total
Cost at 1 January 2024
730
730
Currency adj.
-
-
Additions
291
291
At 31 December 2024
1,021
1,021
Accumulated depreciation and impairment:
At 1 January 2024
404
404
Currency adj.
-
-
Depreciation for the year
93
93
At 31 December 2024
497
497
Carrying amount 31 December 2024
524
524
In thousands EUR
Leasehold
improvements
Total
Cost at 1 January 2023
728
728
Additions
5
5
Currency adj.
(3)
(3)
Transfers
-
-
At 31 December 2023
730
730
Accumulated depreciation and impairment:
At 1 January 2023
330
330
Currency adj.
3
3
Depreciation for the year
71
71
At 31 December 2023
404
404
Carrying amount 31 December 2023
326
326
Accounting policies
Leasehold improvements are measured at cost less accumulated
depreciation and impairment losses.
The cost comprises the acquisition price and other costs directly
attributable to preparing the asset for its intended use. The present value
of estimated costs for dismantling and disposing of assets as well as
restoration costs are added to the cost if such costs are recognised as
provisions. Material borrowing costs directly attributable to the
construction of the individual asset are also added to cost.
If the individual components of an asset have different useful lives, each
component will be depreciated separately.
The cost of self-constructed assets comprises direct and indirect costs for
materials, components, subcontractors, wages and salaries. Costs for self-
constructed assets are recognised as property, plant and equipment in
progress on an ongoing basis until the assets are ready for use.
Subsequent costs, such as partial replacement of property, plant and
equipment (PPE), are included in the carrying amount of the asset in
question when it is probable that such costs will result in future economic
benefits.
The carrying amount of the replaced parts is disposed from the statement
of financial position and recognised in the statement of profit or loss.
Depreciation is carried out on a straight-line basis over the expected
useful lives of the assets. The expected useful lives of the leasehold
improvements is 3 years.
34 | Page
Note 12 Non-current financial assets
In thousands EUR
2024
2023
Non-current financial assets
Office deposits
884
1,469
Other deposits
543
775
Total non-current financial assets
1,427
2,244
Accounting policies
Deposits
Cash deposits made under the term of contractual arrangements are classified as
financial assets. At initial recognition, these deposits are measured at fair value
and subsequently at amortized cost. Deposits expected to be refunded within 12
months after the balance sheet date are classified as current assets, while others
are classified as non-current assets.
If there are objective indications that a deposit may not be fully recoverable, an
impairment assessment is made based on the expected credit loss (ECL) model in
accordance with IFRS 9. Any impairments and subsequent adjustments are
recognized in the income statement.
For both 2024 and 2023, all financial assets are measured at amortized cost.
35 | Page
Note 13 Financial instruments
The Group holds the following financial instruments:
In thousands EUR
2024
2023
Financial assets measured at amortised cost
Deposits from customers
183,140
165,158
Credit receivables from customers
8,405
1,729
Cash and cash equivalents
145,578
183,940
Total assets measured at amortised cost
337,123
350,827
Financial assets measured at fair value through profit
and loss
-
-
Total assets measured at fair value through profit
and loss
-
-
Financial liabilities measured at amortised cost
Lease liabilities
3,955
4,781
Bank loan liabilities
6,379
-
Trade payables and other payables
5,312
4,506
Contract liabilities
15,719
7,568
Other liabilities
187,594
171,483
Total liabilities measured at amortised cost
218,959
188,338
Financial liabilities measured at fair value through
profit and loss
-
-
Total liabilities measured at fair value through
profit and loss
-
-
Financial assets:
Due to the short-term nature of financial assets measured at amortised cost, their carrying
amounts are considered to be the same as fair value.
Financial liabilities:
the Group's exposure to various risks associated with the financial instruments are disclosed in
note 15
Accounting policies
Financial Assets:
Financial assets are classified at amortized cost if they meet both of the
following conditions: the business model's objective is to hold the financial
instrument to collect contractual cash flows (a "hold-to-collect" business
model), and these cash flows are solely payments of principal and interest on
the principal amount. Disposals of portfolios near the maturity date and for
amounts close to the remaining contractual cash flows, or due to an increase in
customer credit risk (e.g., sales of non-performing debt), are consistent with a
"hold-to-collect" model. Sales driven by regulatory requirements or aimed at
managing credit risk concentration (without increasing credit risk) are also
compatible with this model, provided they are infrequent or of insignificant
value.
All financial assets not eligible for classification at amortised cost or at fair value
through other comprehensive income are presented at fair value through profit
or loss.
Financial Liabilities
Financial liabilities are recognised at the date of borrowing at the proceeds
received less transaction costs paid. On subsequent recognition, financial
liabilities are measured at amortised cost, corresponding to the capitalised
value, using the effective interest rate. Accordingly, the difference between the
proceeds and the nominal value is recognised in the income statement over the
term of the loan.
36 | Page
Note 14 Financial Assets and liabilities
2024
In thousands EUR
Within 1
year
1-5
years
Over
5
years
Total
contractual
cash flow
Carrying
amount
Non-derivative financial assets
Deposits from customers
183,140
-
-
183,140
183,140
Credit receivables from customers
8,405
-
-
8,405
8,405
Cash at bank and in hand
145,578
-
-
145,578
145,578
Total Financial assets
337,123
-
-
337,123
337,123
Non-derivative financial liabilities
Trade payables and other payables
5,148
-
-
5,148
5,148
Lease liabilities
2,394
1,678
-
4,072
3,955
Bank loan liabilities
6,379
-
-
6,379
6,379
Other liabilities
4,792
-
-
4,792
4,792
Customer funds
182,802
-
-
182,802
182,802
Total Financial liabilities
201,515
1,678
-
203,193
203,076
The amounts disclosed in the following table are the contractual undiscounted cash flows.
Balances due within 12 months equal their carrying balances as the impact of discounting is not
significant.
The group’s exposure to various risks associated with the financial instruments is discussed in
note 15.
2023
In thousands EUR
Within 1
year
1-5
years
Over
5
years
Total
contractual
cash flow
Carrying
amount
Non-derivative financial assets
Deposits from customers
165,158
-
-
165,158
165,158
Credit receivables from customers
1,729
-
-
1,729
1,729
Cash at bank and in hand
183,940
-
-
183,940
183,940
Total Financial assets
350,827
-
-
350,827
350,827
Non-derivative financial liabilities
Trade payables and other payables
4,506
-
-
4,506
4,506
Lease liabilities
2,407
2,583
-
4,990
4,781
Bank loan liabilities
-
-
-
-
-
Other liabilities
6,679
-
-
6,679
6,679
Customer funds
164,804
-
-
164,804
164,804
Total Financial liabilities
178,396
2,583
-
180,979
180,770
37 | Page
Note 15 Financial risk management
Pleo’s principal financial liabilities and assets include trade payables, trade and other
receivables, customer deposits, and cash and cash equivalents. Trade payables, trade and other
receivables, along with the portion of cash and cash equivalents not classified as customer cash,
are utilized to finance the Pleo’s operations.
Pleo is exposed to market risk, credit risk, and liquidity risk. The Board of Directors is
responsible for overseeing financial risks, while the executive management team manages
these risks. Currently, Pleo operates under an informal risk management framework, with a
more formal structure under development.
Pleo does not engage in speculative activities related to financial risks. Its financial
management approach focuses solely on mitigating and managing financial risks directly
associated with its operations and financing activities.
Market risk
Market risk refers to the risk that the fair value or future cash flows of a financial instrument
will fluctuate due to changes in market prices. For Pleo, Market risk primarily consists of two
types: Currency risk and Interest rate risk. Financial instruments impacted by market risk
include cash and cash equivalents, future commercial transactions and recognised financial
assets.
Currency risk
Pleo is exposed to currency risk due to its international operations, involving transactions and
financial positions denominated in multiple currencies. Pleo is exposed to fluctuations in
Danske Kroner (“DKK”), Euro (“EUR”), Pound sterling (“GBP”), Swedish Krona (“SEK”) and
US dollar (“USD”). Foreign exchange risk arises from future commercial transactions and
recognised assets and liabilities denominated in a currency that is not the functional currency
of Pleo’s entities.
Pleo consider the overall currency risk exposure limited. The majority of Pleo’s activities take
place in the Danish entities, where the total volume of transactions in GBP, SEK and USD is
limited. The risk associated with EUR transactions is immaterial as the DKK is pegged to EUR.
The remaining entities primarily have transactions in the same currency as their functional
currency, the currency exposure are therefore considered immaterial.
As most transactions occur in the functional currency of each Pleo entity and only a limited
number of transactions occur in foreign currencies, the monitoring of the currency risk is
informal. As follows Pleo has not implemented any policy for currency exposure.
A 5% increase in the SEK/DKK exchange rate would have a positive impact on post-tax profit
and equity of TEUR 204 in 2024 (TEUR 282 in 2023), whereas a corresponding decrease would
result in a negative impact of TEUR 204 (TEUR 282 in 2023.For EUR/DKK, a 2% increase
would have a positive effect of TEUR 2,245 in 2024 (TEUR 839 in 2023), while a 2% decrease
would have a negative impact of the same magnitude. For GBP/DKK, a 5% increase would have
a positive effect of TEUR 504 in 2024 (TEUR 726 in 2023), whereas a 5% decrease would result
in an equivalent negative effect.
Interest rate risk
Pleo is exposed to interest rate risk on cash deposits with banks, as the interest is based on a
floating rate. The floating rate is based upon the insert rate. Pleo monitors the development of
the floating rate on a continuous basis as the interests are an integral part of the operations.
An increase in the floating rate by 1% would have a positive impact on post-tax profit and equity
of TEUR 1,266 (TEUR 339 in 2023), whereas a decrease of 1% would result in a corresponding
negative impact.
In thousands EUR
Impact on post tax profit
Impact on equity
Currency Risk
2024
2023
2024
2023
SEK/DKK increase 5 %
204
282
204
282
SEK/DKK decrease 5 %
(204)
(282)
(204)
(282)
EUR/DKK increase 2 %
2,245
839
2,245
839
EUR/DKK decrease 2%
(2,245)
(839)
(2,245)
(839)
GBP/DKK increase 5 %
504
726
504
726
GBP/DKK decrease 5 %
(504)
(726)
(504)
(726)
Interest rate risk
Floating rate on Cash Increase – 1 %
1,266
339
1,266
339
Floating rate on Cash decrease – 1 %
(1,266)
(339)
(1,266)
(339)
Credit risk
Credit risk is the risk that a counterparty fails to fulfil its obligations under a financial
instrument or customer contract, resulting in a financial loss. Pleo's credit risk exposure is
divided into three categories, credit risk on financial institutions, credit risk on Pleo customers,
and credit risk on other counterparts.
The credit risk on financial institutions occurs from long-term deposits and cash balances. Pleo
monitors the exposure toward the financial institutions through their credit rating on an
ongoing basis. The credit rating of the financial institutions is at least "A". Due to the high credit
rating and a history of no loss with these entities, the expected credit loss has not been
recognised, as it is considered immaterial.
The credit risk on customers occurs from customers not fulfilling their financial obligations
under a customer contract. Pleo consider the credit risk on Pleo customers limited due to the
38 | Page
nature of operations. A majority of receivables are initially secured by deposits made to the Pleo
wallet. The remaining exposures are related to Customers signing up for the usage of the
Platform where payments are due at time of signing. Pleo consider receivables that are overdue
with more than 90 days as defaulted. Please refer to note 8 for the recognised expected credit
loss on trade receivables.
The credit risk on other counterparts arising on long-term deposits and prepayments, which
are considered immaterial.
Liquidity risk
Liquidity risk is the risk that Pleo is not able to meet the contractual obligations related to
financial liabilities due to insufficient liquidity. Pleo’s financial liabilities primarily consist of
payables arising from lease contracts, operational expenses, and customer funds, which are
settled as they become due.
Pleo manages liquidity risk by ensuring it maintains sufficient cash reserves. This is conducted
through an ongoing monitoring of cash flow forecasts to ensure that both short-term and long-
term financial commitments can be met.
As Pleo’s business model involves handling customer funds and providing payment solutions,
specific safeguards are in place to ensure that customer funds are protected and maintained
separately from operational cash, mitigating the risk of a shortfall in customer payments.
The amounts disclosed in the following table are the contractual undiscounted cash flows.
Balances due within 12 months equal their carrying balances as the impact of discounting is
not significant.
Note 16 Cash flow specifications
In thousands EUR
2024
2023
Change in current liabilities, such as trade
payables, deferred income, etc
6,908
8,762
Change in receivables
(2,238)
(7,927)
Change in inventories
207
(4)
Change in working capital
4,877
831
In thousands EUR
2024
2023
Interest at customer funds
16
(354)
Interest on credit receivables
(297)
-
Other adjustments
434
(527)
Adjustment
153
(881)
39 | Page
Note 17 Cash at bank and in hand
In thousands EUR
2024
2023
Cash at bank and in hand
Cash at bank and in hand
128,998
173,796
Partner deposits
16,580
10,144
Total
145,578
183,940
Note 18 Customer funds
In thousands EUR
2024
2023
Deposit from customer funds
Customer funds
183,140
165,158
Total
183,140
165,158
Note 19 Other liabilities
In thousands EUR
2024
2023
Other liabilities
Customer funds
182,802
164,804
Other liabilities
4,792
6,679
Total
187,594
171,483
Note 20 Contingent liabilities, commitments
and contingencies
The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of
the Group. Moreover, the group companies are jointly and severally liable for Danish
withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income.
Any subsequent adjustments of corporation taxes and withholding taxes may increase the
Group’s liability.
Significant judgement
Classification of customer funds/deposits from customers
As part of the Pleo debet card offering, customers deposit amounts into bank
accounts legally owned by Pleo but segregated from Pleo's own funds and subject to
certain regulatory safeguards. The customers do not take on credit risk vs Pleo. Pleo
is entitled to interest income and incurs negative interest, if any from these bank
accounts. Additionally, Pleo bears the credit risk in case of default by the
bank. Management has applied judgment in determining whether these bank
accounts and the related liability vs. the customers are assets and liabilities of Pleo.
Management has put greater weight on the fact that Pleo is exposed to risks and
rewards of the bank accounts than on the fact that draw down is under the control
of the customers and concluded that the bank deposits are assets of Pleo and
consequently, a corresponding customer liability is also recognised.
Accounting policies
Customer funds consist of restricted cash held on behalf of customers. A
corresponding liability for these customer funds is recognized under other
payables.
Accounting policies
Debts are measured at amortised cost, substantially corresponding to nominal
value.
Customer funds recognised under other payables consists of the corresponding
liability to customer funds received and recognised as deposits from customers.
40 | Page
Note 21 Fees to auditors appointed at the
Annual General Meeting
In thousands EUR
2024
2023
PwC
Audit fees
271
164
Other assurance engagements
-
-
Tax and VAT advice
119
93
Non-audit services
85
-
Total
475
257
Fees for services other than the statutory audit of the financial statements provided by
PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab, Denmark amounted to
TEUR 132 (2023: TEUR 93) including other assurance opinions and agreed-upon
procedures, as well as tax and accounting advice.
Note 22 Equity
Share capital
2024
2023
Number of
shares
Nominal
value
(in DKK)
Number of
shares
Nominal
value
(in DKK)
Common shares
7,869,912
78,699
7,869,912
78,699
B-Preference shares
8,433,088
84,331
8,433,088
84,331
C Preference shares
1,722,653
17,227
1,722,653
17,227
C2 Preference shares
867,706
8,677
867,706
8,677
Total
18,893,359
188,934
18,893,359
188,934
Pleo’s share capital is structured into four classes: B-Preference Shares, C-Preference Shares,
and C2-Preference Shares (collectively referred to as "Preference Shares"), and Common
Shares. Each share class carries specific rights and obligations, as defined in the Group’s
Articles of Association.
Preference Shares
Holders of B-Preference Shares, C-Preference Shares, and C2-Preference Shares are entitled to
a preferential allocation of Proceeds before Common Shareholders. Proceeds, which include
distributions such as dividends, share buybacks, or payments upon liquidation, which are
allocated to Preference Shareholders equally among the classes of Preference Shares, up to an
amount per Preference Share to the greater of the following:
● The Initial Investment Amount, including any premium, that was paid for the
subscription of the Preference Shares; or
● The amount that would have been received per Preference Share if it had been
converted to a Common Share immediately prior to the distribution of Proceeds.
The Group conducts an annual review to ensure the distribution terms remain compliant with
relevant agreements and appropriately reflect the rights of all shareholders.
Common Shares
Common Shares represent the residual ownership interest in the Group and are entitled to
distributions only after all preferential claims from B-, C-, and C2-Preference Shares have been
satisfied.
Dividends
No dividends were paid out for the year. No dividends were proposed for the year.
Accounting policies
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the
issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.
Dividends
Provision is made for the amount of any dividend declared, being appropriately
authorized and no longer at the discretion of the entity, on or before the end of the
reporting period but not distributed at the end of the reporting period. Payments of
dividends are subject to debt covenants.
41 | Page
Note 23 Capital Management
The Group’s objectives when managing capital are to:
• safeguard their ability to continue as a going concern, so that they can continue to provide
returns for shareholders and benefits for other stakeholders, and
• maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets
to reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the following
gearing ratio:
In thousands EUR
2024
2023
Lease liabilities
3,955
4,781
Bank loan liabilities
6,379
-
Trade payables
5,148
4,506
Current income tax liabilities
716
937
Other payables
4,792
6,679
Cash
(145,578)
(183,940)
Net debt
(124,588)
(167,037)
Equity
148,686
186,516
Total capital and net debt
24,098
19,479
The gearing ratio is calculated as equity divided by net debt and equity.
The subsidiary company Pleo Financial Services, is registered with the Danish Financial
Supervisory Authority (DFSA). Management has determined that the regulatory capital
requirement amounts to MEUR 2. The company’s eligible regulatory capital totals MEUR 55,
representing the capital base available before the recognition of the financial results for the
reporting period.
Pleo monitor on a monthly basis whether the minimum capital for is met, if needed Pleo
Holding may provide a group contribution
Note 24 Subsequent events
After the end of the financial year, no events have occurred which could significantly affect the
Group's financial position
Note 25 Related party transactions
The Group is not controlled by any single shareholder or entity with a sufficient ownership
interest to qualify as either an immediate parent company or an ultimate parent company
under applicable accounting standards. Outstanding balances with other related parties and
key management personnel hold no special terms or conditions. For Key management please
refer to note 03.
Note 26 Investment in subsidiaries
Ownership interest
Name of entity
Type
2024
2023
Pleo Financial Services A/S
Denmark
100%
100%
Pleo Technologies A/S
Denmark
100%
100%
Pleo Capital UK Ltd
United Kingdom
100%
100%
Pleo Capital DK ApS
Denmark
100%
100%
Pleo Technologies GmbH
Germany
100%
100%
Pleo Technologies SL
Spain
100%
100%
Pleo Technologies Inc.
Canada
100%
100%
Pleo Technologies Portugal
Portugal
100%
100%
Pleo Technologies SAS
France
100%
100%
Pleo Technologies Ltd
England
100%
100%
Pleo Technologies BV
Netherlands
100%
100%
Pleo North America Inc
USA
100%
100%
Pleo Technologies AB
Sweden
100%
100%
Pleo Financial Services UK Ltd
United Kingdom
100%
-
42 | Page
Standalone Financial Statements of the Parent
Income Statement for 1 January - 31 December
In thousands DKK
Note
2024
2023
Other external expenses
-1,870
-658
Gross profit/loss
-1,870
-658
Profit/loss before financial
income and expenses
-1,870
-658
Financial income
1
202,996
33,884
Financial expenses
2
-2,318
-4,914
Profit/loss before tax
198,808
28,312
Tax on profit/loss for the year
3
-9,445
-6,229
Net profit/loss for the year
189,363
22,083
Balance Sheet as at 31 December
Assets
In thousands DKK
Note
2024
2023
Investments in subsidiaries
4
2,110,247
2,094,959
Fixed asset investments
2,110,247
2,094,959
Receivables from group enterprises
185,996
32,344
Prepayments
5
0
46
Receivables
185,996
32,390
Cash at bank and in hand
6
706,400
1,063,598
Currents assets
892,396
1,095,988
Assets
3,002,643
3,190,947
Liabilities and equity
In thousands DKK
Note
2024
2023
Share capital
189
189
Retained earnings
2,949,425
2,760,063
Equity
2,949,614
2,760,252
Trade payables
291
265
Payables to group enterprises
43,293
424,201
Corporation tax
9,445
6,229
Short-term debt
53,029
430,695
Debt
53,029
430,695
Liabilities and equity
3,002,643
3,190,947
43 | Page
Statement of Changes in Equity
In thousands DKK
Share capital
Retained earnings
Total
Equity at 1 January
189
2,760,063
2,760,252
Net profit/loss for the year
-
189,363
189,363
Equity at 31 December
189
2,949,425
2,949,614
Other key disclosures:
Fee to auditors appointed at the general meeting 7
Contingent assets, liabilities and other financial obligations 8
Distribution of profit 9
Accounting Policies 10
Notes to the Financial Statements
1. Financial income
In thousands DKK
2024
2023
Bank interest and other financial
income
46,996
32,215
Dividends received
156,000
0
Exchange gains
0
1,669
Total
202,996
33,884
2. Financial expenses
In thousands DKK
2024
2023
Interest paid to group enterprises
-
4,815
Exchange loss
2,318
99
Total
2,318
4,914
3. Tax on profit/loss for the year
In thousands DKK
2024
2023
Current tax for the year
9,445
6,229
Total
9,445
6,229
44 | Page
4. Investments in subsidiaries
In thousands DKK
2024
2023
Cost at 1 January
2,094,959
636,429
Additions for the year
15,288
1,458,530
Total
2,110,247
2,094,959
Investments in subsidiaries are specified as follows:
Name
Place of
registered office
Votes and
ownership
Equity
Net profit/loss
for the year
Pleo Financial Services A/S
Denmark
100%
442,353
190,737
Pleo Technologies A/S
Denmark
100%
(171,791)
(465,825)
Pleo Capital UK Ltd.
United Kingdom
100%
8,888
(8,736)
Pleo Capital DK ApS
Denmark
100%
1
1
Pleo Financial Services UK Ltd.
United Kingdom
100%
15,288
-
5. Prepayments
Prepayments consist of prepaid expenses concerning rent, insurance premiums
and subscriptions.
6. Cash at bank and in hand
In thousands DKK
2024
2023
Total
706,400
1,063,598
7. Fee to auditors appointed at the general meeting
In thousands DKK
2024
2023
PricewaterhouseCoopers
Audit fee
800
291
Tax advisory services
624
-
Total
1,424
291
8. Contingent assets, liabilities and other financial obligations
The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of
the Group. Moreover, the group companies are jointly and severally liable for Danish
withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income.
Any subsequent adjustments of corporation taxes and withholding taxes may increase the
Group’s liability.
9. Distribution of profits
No dividends were paid out for the year. No dividends were proposed for the year.
45 | Page
10. Accounting Policies
The Annual Report of Pleo Holding ApS for 2024 has been prepared in accordance
with the provisions of the Danish Financial Statements Act applying to large
enterprises of reporting class C.
The accounting policies applied remain unchanged from last year.
The Parent Company Financial Statements are presented in TDKK.
Recognition and measurement
Revenues are recognised in the income statement as earned. Furthermore, value
adjustments of financial assets and liabilities measured at fair value or amortised
cost are recognised. Moreover, all expenses incurred to achieve the earnings for the
year are recognised in the income statement, including depreciation, amortisation,
impairment losses and provisions as well as reversals due to changed accounting
estimates of amounts that have previously been recognised in the income statement.
Assets are recognised in the balance sheet when it is probable that future economic
benefits attributable to the asset will flow to the Company, and the value of the asset
can be measured reliably.
Liabilities are recognised in the balance sheet when it is probable that future
economic benefits will flow out of the Company, and the value of the liability can be
measured reliably.
Assets and liabilities are initially measured at cost. Subsequently, assets and
liabilities are measured as described for each item below.
Recognition and measurement take into account predictable losses and risks
occurring before the presentation of the Annual Report which confirm or invalidate
affairs and conditions existing at the balance sheet date.
Income Statement
Other external expenses
Other external expenses comprise external workforce, administration costs and
expenses for premises, sales and distribution as well as office expenses, etc.
Financial income and expenses
Financial income and expenses are recognised in the income statement at the
amounts relating to the financial year.
Tax on profit/loss for the year
Tax for the year consists of current tax for the year and changes in deferred tax for
the year. The tax attributable to the profit for the year is recognised in the income
statement, whereas the tax attributable to equity transactions is recognised directly
in equity.
The Company is jointly taxed with wholly owned Danish subsidiaries. The tax effect
of the joint taxation is allocated to enterprises in proportion to their taxable incomes.
Balance Sheet
Investments in subsidiaries
Investments in subsidiaries are measured at cost. Where cost exceeds the
recoverable amount, write down is made to this lower value.
Other fixed asset investments
Other fixed asset investments consist of deposits.
Receivables
Receivables are measured in the balance sheet at the lower of amortised cost and net
realisable value, which corresponds to nominal value less provisions for bad debts.
Prepayments
Prepayments comprise prepaid expenses concerning rent, insurance premiums and
subscriptions.
Deferred tax assets and liabilities
Deferred income tax is measured using the balance sheet liability method in respect
of temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes on the basis of the intended
use of the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss carry forwards, are measured
at the value at which the asset is expected to be realised, either by elimination in tax
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on future earnings or by set off against deferred tax liabilities within the same legal
tax entity.
Deferred tax is measured on the basis of the tax rules and tax rates that will be
effective under the legislation at the balance sheet date when the deferred tax is
expected to crystallise as current tax. Any changes in deferred tax due to changes to
tax rates are recognised in the income statement or in equity if the deferred tax
relates to items recognised in equity.
Current tax receivables and liabilities
Current tax liabilities and receivables are recognised in the balance sheet as the
expected taxable income for the year adjusted for tax on taxable incomes for prior
years and tax paid on account. Extra payments and repayment under the on account
taxation scheme are recognised in the income statement in financial income and
expenses.
Financial debts
Loans are recognised initially at the proceeds received net of transaction expenses
incurred. Subsequently, the loans are measured at amortised cost; the difference
between the proceeds and the nominal value is recognised as an interest expense in
the income statement over the loan period.
Other debts are measured at amortised cost, substantially corresponding to nominal
value.
Cash and cash equivalents
Cash and cash equivalents comprise “Cash at bank and in hand” excluding “customer
funds”. The cash flow statement cannot be immediately derived from the published
financial records.
Financial debts
Debts are measured at amortised cost, substantially corresponding to nominal value.