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 additional 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 management ’ 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 statements .
Note 17 - Related parties
SEK million
The Group ' s sales to
The Group ' s purchases from
The Group ' s receivables on
The Group ' s liabilities to
2020 2019 2020 2019 2020 2019 2020 2019 Jobman Workwear GmbH 5.9 4.5 0.0 0.0 8.5 6.4 0.0 0.0
Dingle Industrilokaler AB |
0.2 |
0.2 |
4.4 |
4.3 |
17.6 |
23.5 |
0.4 |
0.4 |
Kosta Köpmanshus AB |
0.7 |
3.7 |
11.6 |
21.2 |
0.0 |
1.9 |
1.3 |
0.9 |
Total |
6.9 |
8.4 |
16.0 |
25.5 |
26.1 |
31.8 |
1.8 |
1.3 |
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 , associated companies is covered in note 13 . All transactions are carried out under market conditions .
Transactions related to persons included in management
During the year , companies related to the CEO have purchased goods and services from New Wave Group companies amounting to SEK 0.4 ( 0.2 ) million , and sold goods and services to Group companies amounting to SEK 0.6 ( 0.6 ) million . All transactions have been carried out under market conditions .
100 // ANNUAL REPORT