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Annual Report 2017


Annual Report 2017

Supervisory Board P.H.L.M. van de Meerakker, Chairman J.A. van Nieuwenhuijzen W. Visser Management Board G. Spek


Table of contents Report by the Supervisory Board

6

Report by the the Management Board

10

Balance sheet as at 31 December 2017

14

Profit and loss account for the year 2017

16

Cash flow statement for the year 2017

17

Notes to the financial statements

18

Cash flow statement for the year 2017

24

PEFA annual report 2017 | 5


Report by the Supervisory Board To the Annual General Meeting of Shareholders We are pleased to present the financial statements for 2017 of Pefa B.V. We have welcomed the Report of the Management Board. The financial statements have been compiled by Baker Tilly Berk N.V. of Goes, the Netherlands. We recommend that you approve the financial statements for 2017 as presented. We also request that you discharge the Management Board in respect of its management and policy pursued, and the Supervisory Board in respect of its supervision, during the financial year 2017. [Operating result] saw a slight increase of 4.8% compared to 2016. Investments in software development by Pefa have followed an upward trend. The business is a market leader in the field of innovation in the trade in fresh fish and has received broad support from the market for its developments for the market. Pefa has equity-financed these new developments. One of the key projects of the business has been the overhaul of the Pefa Auction Clock. This service allows buyers to use a variety of devices (tablets, smartphones or PCs) running various operating systems (Windows, iOS and Android) to buy fish online from the European fish auctions affiliated with Pefa. The Pefa Auction Clock is highly user-friendly and is a great way for the business to help meet the latest needs of customers. Another ground-breaking project is Pefa eLog, a service offering an online logbook for ships landing fish. Developments in rules and regulations mean that fishing vessels now have to provide information on their catches to the Netherlands Food and Consumer Product Safety Authority (NVWA) in electronic format by means of a digital logbook. Pefa eLog offers a service to meet this requirement. Given that this service is linked to other Pefa systems, the data is very accurate and reliable, meaning that the Pefa

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eLog may in the future form the foundation of an audit system for the industry. Pefa already offered a comprehensive service to buyers at fish auctions, but the Pefa eLog also allows the business to get fishing vessels on board so that all parties within the fish trade are well serviced. This new line of business means that Pefa now plays a key role in the information chain, from fishing vessels to consumer, the key word being traceability. Bringing this service to market was a strategic decision by the business. The Supervisory Board met with the Management Board on four occasions in 2017. Outside of these meetings, the Management Board consulted regularly with the individual members of the Supervisory Board on the status of ongoing fisheries projects; it also consulted with affiliated auctions in the Netherlands and abroad that are important to the business. The Supervisory Board placed a particular focus on the strategic position of Pefa B.V. and the investments that are required to maintain its position as the largest online platform for fresh fish and to build on this position in the future. All in all, 2017 was a successful year. The Supervisory Board applauds the employees and the Management Board, and would like to take this opportunity to thank them for their efforts and the excellent results achieved in the reporting period. IJmuiden, the Netherlands, 23 October 2018 Supervisory Board P.H.L.M. van de Meerakker, Chairman J.A. van Nieuwenhuijzen W. Visser

8 | PEFA annual report 2017

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Report by the Management Board Pefa has seen some good growth recently; we are developing fast. In 2016, we embarked on a round of innovation known internally as Pefa 2.0. A year later, in 2017, we accelerated work on our professionalisation drive. You might be wondering, what might such a process look like at Pefa? By way of further clarification, allow me to briefly present the developments of 2017.

Figures To start with, it makes me proud to say that we have achieved so much. What is more, we have achieved it together. But also with extra hands. To move so fast, it was necessary to bolster the internal organisation, and we have now grown from 4.2 to 5.5 FTE. The same applies to our highly valued external resources, as the freelance pool has also seen considerable growth. The number of transactions processed by the Pefa Auction Network remained fairly constant in 2017: 573,000 compared to 576,000 in 2016. The fall in the number of fish catches was offset by higher prices at the auction, resulting throughout the entire Pefa Auction Network in revenues exceeding EUR 320 million, which includes the Dutch Mussel Auction. In 2017, there were 15 affiliated auctions, i.e. the Pefa Auctions, in four countries. The number of buyers, sellers, auctions and all points in between is on the rise. This is not just a nice detail, but it also contributes to more innovation opportunities.

Buying fresh fish on the go Pefa’s core business has always been online buying and selling of fresh fish. To continue to meet the needs of customers and potential new customers, development of the online auction clock 2.0 got underway, and was launched in 2017 as the Pefa Auction Clock. This new service offers a number of significant benefits compared to its predecessor. The best way to describe this online auction application is: simplicity and flexibility. It is up to customers to choose how they want to use the tool. For instance, a buyer can use a single set of login credentials for the Pefa Auction Clock to check on an expected purchase while following up to three auctions on their tablet or notebook PC. All at the same time. Furthermore, the application is brimming with helpful features that aim to provide the buyer with as much information as possible about current developments in the market. We have also developed a new subscription structure, which will be of interest to a larger group of customers and potential new customers, as it can be adapted according to need. As a result, we expect to see the number of subscriptions taken out by smaller customers to increase, in particular. While the first auction application was available for only one operating system, the latest Pefa Auction Clock offers a lot more. This is perfectly in line with current demands: being able to switch seamlessly between notebook PC, tablet and smartphone regardless of whether you are using Windows, Android or iOS. The application looks the same and the same features are available on every device. This makes the application more user-friendly and saves buyers time. Pefa was at one time the first company to offer an online auction clock. With our mobile apps, Pefa is once again the first company to allows customers to buy fresh fish at affiliated fish auctions – in and outside the Netherlands – using their smartphone or other mobile devices. Once again, we are leading the way.

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PEFA annual report 2017 | 11


Pefa eLog captures a new target group

Branding

Another innovative service and application developed in 2017 is the Pefa eLog, an online application that owners of fishing vessels can use to report their fish catches to the Netherlands Food and Consumer Product Safety Authority (NVWA). This application is once again characterised by simplicity and flexibility. While fishing vessels previously completed their logbooks by hand, including details of weight, fishing grounds and catch dates, this can now easily be done online using the Pefa eLog. The Pefa eLog can be used on any device with an internet connection and a web browser. In the development phase, we already made allowance for the fact the Pefa eLog tool needs to perform even when offshore internet connections are poor. That is why the tool has been designed to be very lightweight. This new development means that Pefa is now also able to offer services to fishing vessels, and the data entered while offshore can also automatically be entered in the Pefa Auction Clock for the fish auction.

2017 was not just a year marked by service development. As part of our ongoing professionalisation drive, a new team member was recruited for communication activities. While the focus was previously on the Pefa Auction Clock, we now communicate about all the various services that we develop and offer. This change is particularly notable on the website, the calling card of every business. Our visual identity was also given a makeover and we have worked on creating the stable foundation that every professional business needs.

Expansion of office automation

Outlook for 2018

Office automation services have been available to auctions for some time, but in 2017 the service was adapted to meet the needs of all fish-related businesses, and the service is now known as Pefa Office. The same high quality of service is still paramount but now everyone can work in the cloud.

The year will get off to a special start, as it marks our ten-year anniversary. Furthermore, the acceleration phase is by no means in the past. Product development and product optimisation will continue apace. The Pefa Auction Clock will be rolled out further and will grow organically among existing and new customers alike. The Pefa eLog service is expected to be ready for launch early in the year. We are also working hard on the automation of processes and subscriptions, development work on the new back-office auction software is in full swing, and a new auction system is on the way for mussels that are still in the water (i.e. have not yet been delivered to the auction). In brief, we will continue to chart a steady course.

Pefa’s offices in the port of Scheveningen already provided us with a fantastic location, but some renovation work and some restyling transformed the office to a unique, contemporary workplace. The flexible, light rooms provide workplaces for our core staff and freelance workers, meeting rooms and rental options, as well as lunch and relaxation areas.

Scheveningen, the Netherlands, 14 January 2019 Managing Director G. Spek

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Balance sheet as at 31 december 2017 after profit appropriation ASSETS

31-12-2017

31-12-2016

EQUITY AND LIABILITIES

31-12-2017

31-12-2016

€ € € €

€ € € €

FIXED ASSETS

SHAREHOLDERS’ EQUITY

Intangible fixed assets

Issued share capital

1

Costs of development

643.043

183.250

Prepayments on intangible fixed assets

-

70.414

643.043

253.664

3

150.000

150.000

Share premium reserve

269.766

269.766

Legal and statutory reserves

643.043

253.664

General reserve

- 380.044

- 125.259

Tangible fixed assets

2

Buildings and land

27.189

-

Other fixed assets

160.524

106.844

187.713

682.765

CURRENT LIABILITIES AND AC-CRUALS AND DEFERRED INCOME

106.844

Trade creditors

71.546

46.057

Taxes and social security premiums

40.744

41.629

Projects in progress

-

20.666

Financial fixed assets

Other liabilities and accrued expenses

117.363

41.585

Participations in affiliated companies

5.252

548.171

5.252

229.653

149.937

CURRENT ASSETS

Total liabilities 912.418 698.108

Receivables Trade debtors Other receivables and accrued assets

4.639

66.416

29.590

36.678

34.229

103.094

Cash at bank and in hand

42.181

229.254

Total assets 912.418 698.108

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PEFA annual report 2017 | 15


Profit and loss account for the year 2017

Cash flow statement for the year 2017

2017

2016

2017

2016

€ € € €

€ € € €

Net Turnover

Cash flow from operating activities

1.170.490

992.059

Movements in projects in progress

4

- 22.459

17.604

Project revenues

1.148.031

1.009.663

Own production capitalised

2.288

-

Operating result

161.696

153.289

Adjustments for

Depreciation of intangible and tangible fixed assets

137.982

131.152

Production value 1.150.319 1.009.663 Expenses work contracted out and other external expenses

312.137

307.666

Changes in working capital

Wages and salaries

288.743

236.727

Movements accounts receivable

68.865

1.282

70.956

52.221

Movements current liabilities (excluding banks)

52.513

- 35.227

5

139.816

138.526

121.378

- 33.945

176.971

121.234

Cash flow from business activities

421.056

250.496

Social security premiums and pensions cost Depreciation of intangible and tangible fixed assets Other operating expenses

Total operating expenses

Operating result Financial income and expense

988.623

856.374

Interest received

729

1.938

Interest paid

- 628

- 877

161.696

153.289

101

1.061

101

1.061

Cash flow from operating activities

421.157

251.557

Result from operational activities before taxation

161.797

154.350

Taxation

- 27.203

- 25.945

Cash flow from investment activities

Net result after taxation

134.594

128.405

Investments in intangible assets

- 487.734

- 118.562

Investments in tangible assets

- 134.692

- 22.718

Investments in financial fixed assets

-

- 5.252

Disposal of tangible fixed assets

14.196

8.496

Cash flow from investment activities

- 608.230

- 138.036

Cash flow from financing activities Share premium in financial year

-

28.791

Movements cash

- 187.073

142.312

Turnover movement cash and cash equivalents

16 | PEFA annual report 2017

Balance as at beginning of financial year

229.254

86.942

Movements during financial year

- 187.073

142.312

Balance at financial year end

42.181

229.254

PEFA annual report 2017 | 17


Notes to the financial statements ENTITY INFORMATION

ACCOUNTING PRINCIPLES

Registered address and registration number trade register The registered and actual address of Pefa B.V. is Visafslagweg 1, 2583 DM in The Hague. Pefa B.V. is registered at the trade register under number 27310765.

Intangible assets Intangible fixed assets are stated at historical cost less amortisation.

GENERAL NOTES Description of the most important activities of the entity The activities of Pefa B.V., having its legal seat at The Hague, primarily consist of the development and operation of an electronic auction system for the fisheries sector.

GENERAL ACCOUNTING PRINCIPLES Description of the accounting standards used to prepare the financial statements The financial statements have been drawn up in accordance with the provisions of Title 9, Book 2 of the Dutch Civil Code and the Dutch Accounting Standards, as published by the Dutch Accounting Standards Board (‘Raad voor de Jaarverslaggeving’). Assets and liabilities are generally valued at historical cost, production cost or at fair value at the time of acquisition. If no specific valuation principle has been stated, valuation is at historical cost. In the balance sheet and the income statement, references are made to the notes. Comparison with previous year The comparative figures have been adjusted for a reclassification in the own production capitalized costs of work contracted out for the amount € 118,562. These costs have been reclassified to the expenses work contracted out and other external expenses.

18 | PEFA annual report 2017

Property, plant and equipment Tangible fixed assets are valued at historical cost or production cost including directly attributable costs, less straight line depreciation based on the expected future life and impairments. Financial assets Participations over which no significant influence can be exercised are valued at historical cost. The result represents the dividend declared in the reporting year, in which process dividend not distributed in cash is valued at fair value. Receivables Receivables are initially valued at the fair value of the consideration to be received, including transaction costs. Trade receivables are subsequently valued at amortised cost. Provisions for bad debts are deducted from the carrying amount of the receivable. Cash and cash equivalents Cash at banks and in hand represent cash in hand, bank balances and deposits with terms of less than twelve months. Overdrafts at banks are recognised within debts to lending institutions under current liabilities. Cash at banks and in hand is valued at nominal value. Current liabilities On initial recognition, current liabilities are recognised at fair value. After initial recognition, current liabilities are recognised at amortised cost, i.e. the amount received taking into account premiums or discounts and net of transaction costs. This is usually the nominal value.

PEFA annual report 2017 | 19


Accounting principles for determining the result The result is the difference between the realisable value of the goods/services provided and the costs and other charges during the year. The results on transactions are recognised in the year in which they are realised. Revenue recognition Net turnover comprises the income from the supply of goods and services and realised income from construction contracts after deduction of discounts and suchlike and of taxes levied on turnover. Gross margin The gross margin includes the net turnover, change in finished products and work in progress, capitalised production costs of own assets, other operating income, costs of raw materials and consumables and costs of work contracted out, and other external costs. Revenues from the services rendered are recognised in proportion to the services delivered, based on the services rendered up to the balance sheet date in proportion to the total of services to be rendered. If the outcome of a project can be estimated reliably, contract revenue and contract costs are recognised as net revenue and expenses in the profit and loss account by reference to the stage of completion of the contract as at the balance sheet date. The progress made on the contract is determined based on the contract costs incurred as at the balance sheet date in proportion to the total estimated contract costs. If the result of the contract cannot (yet) be estimated reliably, the revenue is recognised in the profit and loss account for the amount of the contract costs incurred from which it is likely that

20 | PEFA annual report 2017

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they can be recovered; the contract costs are then recognised in the profit and loss account for the period in which they were incurred. As soon as the result can be estimated reliably, revenue recognition takes place in accordance with the PoC method in proportion to the stage of completion of the contract as at the balance sheet date. The result is the difference between the contract revenue and costs. Contract revenue is the contractually agreed revenues and revenues from extra work and less work, claims and compensations if and insofar as it is likely that they are realised and can be estimated reliably. Contract costs are the expenditures directly related to the project, which in general can be attributed to project activities and allocated to the project, and other costs which can be attributed under the contract to the commissioner of the project. If it is probable that the total contract costs exceed the total revenue, the expected losses will be directly recognised in the profit and loss ac-count. This loss is taken into account in the cost price of the operating result. The provision for the loss is included in the balance sheet under Current projects. Wages and salaries The benefits payable to personnel are recorded in the profit and loss account on the basis of the employment conditions.

22 | PEFA annual report 2017

Applied policy of pension costs Pefa B.V. applies the liability approach to account for all pension schemes. The premium payable during the reporting year is recorded as an expense. The contributions are recorded as personnel costs from the date that they become payable. Prepaid contributions are reported as accrual if this results in a repayment or a reduction in future payments. Contributions that are not yet paid are included as a liability in the balance sheet. Income tax expense Tax on the result is calculated based on the result before tax in the profit and loss account, taking account of the losses available for set off from previous financial years and exempt profit components and after the addition of non deductible costs. Cash flow statement The cash flow statement has been prepared using the indirect method. The cash items disclosed in the cash flow statement comprise cash at banks and in hand except for deposits with a maturity longer than three months. Cash flows denominated in foreign currencies have been translated at average estimated exchange rates. Exchange differences affecting cash items are shown separately in the cash flow statement. Interest paid and received, dividends received and income taxes are included in cash from operating activities. Dividends paid are recognised as cash used in financing activities. Transactions not resulting in inflow or outflow of cash, including finance leases, are not recognised in the cash flow statement. Payments of finance lease instalments qualify as repayments of borrowings under cash used in financing activities and as interest paid under cash generated from operating activities.

PEFA annual report 2017 | 23


Notes to the balance sheet 1. Intangible fixed assets

Prepayments on intangible fixed assets

Costs of development

2. Tangible fixed assets

Total

€ € €

Balance as at 1 January 2017 Purchase price Accumulated amortisation Book value as at 1 January 2017

Finished Amortisations

€ € €

396.734

70.414

467.148

- 213.484

-

- 213.484

183.250

70.414

253.664

487.734

-

487.734

Purchase price

-

357.840

357.840

Accumulated depreciation

-

- 250.996

- 250.996

Book value as at 1 January 2017

-

106.844

106.844

Investments

30.107

104.585

134.692

70.414

- 70.414

-

Depreciation

- 2.918

- 36.709

- 39.627

Disposals purchase price

-

- 56.511

- 56.511

Disposals accumulated depreciation

-

42.315

42.315

27.189

53.680

80.869

Movements

- 98.355

-

- 98.355

- 101.107

-

- 101.107

Disposals accumulated amortisation

101.107

-

101.107

Balance movements

459.793

- 70.414

389.379

Disposals purchase price

Total

Balance as at 1 January 2017

Movements Investments

Other fixed assets

Buildings and land

Balance movements

Balance as at 31 December 2017 Balance as at 31 December 2017 Purchase price Accumulated amortisation Book value as at 31 December 2017 Depreciation percentages

24 | PEFA annual report 2017

853.773

-

853.773

- 210.730

-

- 210.730

643.043

-

643.043

20

0

Purchase price

30.107

405.922

436.029

Accumulated depreciation

- 2.918

- 245.398

- 248.316

Book value as at 31 December 2017

27.189

160.524

187.713

20

20

Depreciation percentages

PEFA annual report 2017 | 25


3. Issued share capital The authorised share capital of Pefa B.V. amounts to EUR 500,000, divided into 249,992 ordinary shares, 16 priority shares and 249,992 4% cumulative preference shares, with a nominal value of EUR 1 each. Issued share capital amounts to EUR 150,000 and comprises 1 priority share, 49,990 cumulative preference shares and 9 ordinary shares for each shareholder.

Off balance sheet rights, obligations and arrangements Disclosure of off balance sheet commitments This is a lease obligation for the lease of the office of United Fish Auctions N.V. The lease agreement is for a periode of five years, from July 1, 2017 to June 30, 2020. After June 30, 2020 the lease agreement continues for a subsequent period of one year every year. The rent is Euro 3,050 per month.

4. Net Turnover

2017

2016

â‚Ź â‚Ź

Subscription buyers

615.522

482.868

Performed activities

234.947

219.712

Maintenance contract auctions

172.175

165.112

SBC auctions

101.875

81.510

17.354

15.197

28.617

27.660

Subscription suppliers Other

1.170.490 992.059

5. Average headcount In 2017, Pefa employed 5.50 FTEs on average; in 2016, this number was 4.20 (in FTEs). Pefa did not have any employees outside the Netherlands.

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PEFA annual report 2017 | 27


Imagery Pefa Graphic Design vanStijl, Rotterdam Maart 2019 Contact Visafslagweg 1 2583 DM Scheveningen The Netherlands

www.pefa.com

Profile for Gijsbert Spek

Pefa Annual Report 2017  

Pefa Annual Report 2017  

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