New Wave Group AB Annual_report_2018_EN_HQ | Page 98
NWG // FINANCIAL INFORMATION //
THE GROUP
Other risks
Purchasing market
New Wave Group’s purchases are mainly made in
China, Bangladesh, India and Vietnam. Political
and socioeconomic changes could have an impact
on New Wave Group. By maintaining a high level of
preparedness and by making purchases in several
different countries in Europe as well as Asia, New
Wave Group limits the economic risk which would
arise if purchases were made from a single country.
Strong growth
The continued expansion planned by New Wave
Group will put strong pressure on management and
employees. Wrong recruitments, organizational
problems, the departure of key individuals etc. could
delay and affect the progress of the expansion. The
crucial factor determining the pace of expansion
is that results expand at the same pace. New Wave
Group is allocating resources to mentorship schemes
and annual meetings of management to guarantee
strong future leadership and spread New Wave
Group’s values.
Fashion trends – changes in
economic conditions
New Wave Group devotes significant resources to
ensure good design and quality. Still, due to the
rapid pace of change in the fashion industry, the
Group cannot exclude the possibility of temporary
declines in sales for certain collections. However,
New Wave Group has a limited risk, as the fashion
content is low in the Corporate operating segment
and the promo sales channel. The Sports & Leisure
operating segment also focuses on areas that are
less sensitive to changes in fashions, even if fashion
trends have a somewhat higher impact. New Wave
Group’s goal is that the promo sales channel shall
account for 60–80 % of total sales.
Foreign expansion
The Group intends to establish a presence in addi-
tional foreign countries only when previous foreign
operations are generating satisfactory profits. The
Board deems that this strategy represents a good
compromise between optimal growth and reduced
risk. New Wave Group believes it is very hard to
determine the exact timetables and budgets for new
foreign ventures, which could entail a risk of initial
losses. However, the Board deems that the company
is well equipped for the new ventures that are being
planned.
Environment
The Group’s operations may involve environmental
commitments, but the Board’s and the manage-
ment’s assessment is that these, to the extent that
they may have an impact on the Group’s financial
position, have been considered in the present
financial statement.
Note 18 - Related parties
SEK million
Glasrikets skatter Ekonomisk förening
Dingle Industrilokaler AB
Kosta Köpmanshus AB
Vist Fastighets AB*
Total
The Group's
sales to
The Group's
purchases from
The Group's
receivables on
2018 2017 2018 2017 2018 2017 2018 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.0
0.1
2.7
0.1
2.9 0.1
2.9
0.1
3.1 3.5
18.4
1.3
23.3 1.8
16.7
3.5
22.1 23.5
0.5
0.0
24.0 22.7
1.0
0.0
23.7 0.4
2.2
0.0
2.6 0.2
1.0
1.4
2.6
* As from 1 December 2018, Vist Fastighets AB is a fully owned subsidiary to New Wave Group AB.
Associated companies are reported in Note 13.
Information is also submitted in the presentation of
the Board and Management and in Note 6. Reporting
of dividends from, and capital contributions to,
098 // ANNUAL REPORT
The Group's
liabilities to
associated companies is covered in Note 13. All tran-
sactions are carried out under market conditions.
2017