Recent Updates
Recently added Catalysts
ENOV Neutral Sentiment Score: 55/100

KPMG S.p.A. Revisione e organizzazione contabile Piazza Salvemini, 20 35131 PADOVA PD Telefono +39 049 8249101 Email it-fmauditaly@kpmg.it PEC kpmgspa@pec.kpmg.it Independent auditors report To the board of directors of

Key Takeaway: KPMG S.p.A. has issued an independent audit report on the consolidated financial statements of Limacorporate S.p.A. for the year ended December 31, 2022. The audit confirms that the financial statements present a true and fair view of the group's financial position and performance based on International Financial Reporting Standards. However, the report highlights a significant loss and acknowledges corrections to prior errors regarding compliance with accounting standards. The financial statements are also prepared for inclusion in Enovis Corporation's offering memorandum.

Market Sentiment Analysis

POSITIVE FACTORS

  • The audit report confirms the accuracy of Limacorporate Group's consolidated financial statements.
  • The financial statements are prepared in accordance with International Financial Reporting Standards.

CONCERNS & RISKS

  • The group reported a loss for the year amounting to €19,273.
  • There were corrections made to the financial statements due to an error related to payback mechanisms.

Full Press Release Details

organizzazione contabile
Piazza Salvemini, 20
Telefono +39 049 8249101
Independent auditors
To the board of directors of
Limacorporate S.p.A.
Report on the audit of the
consolidated financial statements
We have audited the accompanying consolidated financial statements of the Limacorporate Group (the group ), which comprise the statement of
financial position as at 31 December 2022, the income statement and statements of comprehensive income, cash flows and changes in equity for the year then ended and notes thereto, which include a summary of the significant accounting policies.
In our opinion, the accompanying consolidated financial statements give a true and fair view of the financial position of the Limacorporate Group as at 31
December 2022 and of its financial performance and cash flows for the year then ended in accordance with the International Financial Reporting Standards issued by International Accounting Standards Board ( IFRS issued by the IASB ).
We conducted our audit in
accordance with International Standards on Auditing (ISA). Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the consolidated financial statements section of
our report. We are independent of Limacorporate S.p.A. (the parent ) in accordance with the ethics and independence rules and standards applicable in Italy to audits of financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter IFRS issued by the IASB adoption and error
We draw attention to Note 4.1 Transition to IFRS issued by IASB to the consolidated financial statements, which indicates
the group has corrected an error related to the payback mechanism accounted in compliance with IFRS 15 that was reported prior to the group s adoption of the IFRS issued by IASB. Our opinion is not modified in respect of this matter.
The consolidated financial
statements of Limacorporate Group as at 31 December 2022 has been prepared for its inclusion in the offering memorandum drawn up by Enovis Corporation as part of its potential issue of notes.
Independent auditors report
Responsibilities of the parent s directors and board of statutory auditors ( Collegio
Sindacale ) for the consolidated financial statements
The directors are responsible for the preparation of consolidated financial statements
that give a true and fair view in accordance with the International Financial Reporting Standards issued by International Accounting Standards Board and, within the terms established by the Italian law, for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
responsible for assessing the group s ability to continue as a going concern and for the appropriate use of the going concern basis in the preparation of the consolidated financial statements and for the adequacy of the related disclosures. The
use of this basis of accounting is appropriate unless the directors believe that the conditions for liquidating the parent or ceasing operations exist, or have no realistic alternative but to do so.
The Collegio Sindacale is responsible for overseeing, within the terms established by the Italian law, the group s financial reporting process.
Auditors responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with ISA, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
Independent auditors report
We communicate with those charged with governance, identified at the appropriate level required by ISA, regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Padua, 5 October 2023
Consolidated financial statements as at 31 December 2022
Consolidated financial statements as at 31 December 2022
Consolidated financial statements as at 31 December 2022 of the Limacorporate Group 6
Notes to the consolidated financial statements as at 31 December 2022 11
Other information 51
Consolidated financial statements as at 31 December 2022 of the Limacorporate Group
Statement of financial position
( 000)
ASSETS Note 31/12/2022 31/12/2021 01/01/2021
Non-current assets
Other intangible assets [3.1 ] 58,234 53,595 44,477
Goodwill [3.2 ] 384,216 398,305 396,900
Property, plant and equipment [3.3 ] 79,837 81,773 85,288
Equity investments [3.4 ] 2 2 402
Deferred tax assets [3.5 ] 31,709 33,462 31,895
Other non-current assets [3.6 ] 861 705 663
Total non-current assets 554,859 567,843 559,625
Current assets
Inventories [3.7 ] 86,728 87,421 84,166
Trade receivables [3.8 ] 70,161 66,891 63,070
Current tax assets [3.9 ] 2,087 2,554 4,361
Other current assets [3.10 ] 14,192 11,247 11,469
Cash and cash equivalents [3.11 ] 25,920 21,503 26,273
Total current assets 199,088 189,617 189,340
TOTAL ASSETS 753,947 757,461 748,965
EQUITY AND LIABILITIES
Equity
Share capital [3.12 ] 9,868 9,868 9,868
Share premium reserve [3.12 ] 14,425 14,425 14,425
Other reserves [3.12 ] 323,510 317,570 310,762
Retained earnings (accumulated deficit) [3.12 ] (21,966 ) (18,862 ) (6,380 )
Profit (loss) for the year [3.12 ] (19,273 ) (2,539 ) (12,482 )
Total equity attributable to the owners of the parent 306,564 320,463 316,194
Total equity 306,564 320,463 316,194
Non-current liabilities
Non-current financial liabilities [3.15 ] 10,165 283,573 287,407
Employee benefits [3.14 ] 1,296 1,442 1,421
Deferred tax liabilities [3.5 ] 19,275 17,296 12,986
Provisions for risks and charges [3.13 ] 17,156 15,314 12,847
Other non-current liabilities [3.16 ] 649 5,250 5,476
Total non-current liabilities 48,541 322,875 320,137
Current liabilities
Current financial liabilities [3.15 ] 336,659 61,536 61,156
Trade payables [3.17 ] 36,564 32,343 28,941
Current tax liabilities [3.18 ] 877 202 491
Other current liabilities [3.19 ] 24,742 20,041 22,047
Total current liabilities 398,842 114,123 112,635
TOTAL EQUITY AND LIABILITIES 753,947 757,461 748,965
( 000)
Note 2022 2021
Revenue [3.20 ] 245,669 210,543
Other revenues and income [3.20 ] 5,798 3,973
Total revenue and income 251,467 214,517
Raw materials, consumables, supplies and goods [3.21 ] (56,391 ) (53,530 )
Services [3.22 ] (81,645 ) (69,910 )
Change in w.i.p., semi-finished products and finished goods [3.23 ] (887 ) 2,058
Personnel expenses [3.24 ] (76,858 ) (60,773 )
Amortisation and Depreciation [3.25 ] (35,408 ) (32,517 )
Impairment losses on trade receivables [3.25 ] (502 ) (429 )
Impairment losses on fixed assets [3.25 ] (16,152 ) (209 )
Other operating costs [3.26 ] (1,857 ) (1,509 )
Internal work capitalised [3.27 ] 13,532 16,250
Operating costs (256,167 ) (200,570 )
Operating profit (4,700 ) 13,947
Financial income [3.28 ] 14,561 7,829
Financial expense [3.28 ] (22,609 ) (20,785 )
Net financial expense (8,048 ) (12,956 )
Pre-tax income (loss) (12,748 ) 991
Income tax benefit (expense) [3.29 ] (6,526 ) (3,529 )
Profit (loss) for the year (19,273 ) (2,539 )
of which attributable to the owners of the parent (19,273 ) (2,539 )
Statement of comprehensive income
( 000)
Note 2022 2021
Profit (loss) for the year (19,273 ) (2,539 )
Other comprehensive income (expense)
Items that will never be reclassified to profit or loss (A)
Remeasurements of the net defined benefit liability (asset) [3.14 ] 71 3
Related tax [3.14 ] (17 ) (1 )
54 2
Items that are or may be reclassified to profit or loss (B)
Exchange differences on translation of foreign operations [3.12 ] 871 1,842
871 1,842
Other comprehensive income (expense), net of tax (A+B) 925 1,844
Comprehensive income (expense) for the year (18,348 ) (695 )
Comprehensive income (expense) attributable to:
Owners of the parent (18,348 ) (695 )
Statement of changes in equity
( 000)
Note Share capital Share premium reserve Legal reserve Merger reserve Equity Injections Translation reserve Actuarial reserve Other reserves Retained earnings including Profit (loss) for the year Total equity attributable to the owners of the parent Total equity
At 1 January 2021 9,868 14,425 2,101 288,261 23,088 (334 ) (25 ) (2,328 ) (18,862 ) 316,194 316,194
Statement of comprehensive income
Profit for the year [3.12 ] (2,539 ) (2,539 ) (2,539 )
Other comprehensive income [3.12 ] 1,842 2 1,844 1,844
Comprehensive income 1,842 2 (2,539 ) (694 ) (694 )
Owner transactions
Allocation of the loss for the previous year [3.12 ]
Other owner transactions [3.12 ] 4,963 4,963 4,963
Total owner transactions 4,963 4,963 4,963
Other changes [3.12 ]
At 31 December 2021 9,868 14,425 2,101 288,261 28,051 1,508 (23 ) (2,328 ) (21,401 ) 320,463 320,463
Statement of comprehensive income
Profit for the year [3.12 ] (19,273 ) (19,273 ) (19,273 )
Other comprehensive income [3.12 ] 871 54 925 925
Comprehensive income 871 54 (19,273 ) (18,349 ) (18,349 )
Owner transactions
Allocation of the loss for the previous year [3.12 ] 565 (565 )
Other owner transactions [3.12 ]
Total owner transactions 565 (565 )
Other changes [3.12 ] 4,450 4,450 4,450
At 31 December 2022 9,868 14,425 2,101 288,261 28,051 2,379 31 2,687 (41,239 ) 306,564 306,564
Statement of cash flows
( 000)
Note 2022 2021
Operating activities
Profit (loss) for the year [3.12] (19,273 ) (2,539 )
Income tax (benefit)/expense [3.29] 6,526 3,529
Net financial (income)/expense [3.28] 10,809 13,979
Amortisation, depreciation and impairment losses [3.25] 50,649 32,726
Accruals/(Release) to provisions [3.26] 1,842 3,204
Net (gains)/loss on disposals [3.20] [3.26] (629 ) (550 )
FX on contingent consideration [3.28] 1,031 1,384
Cash flows from operating activities before changes in working capital 50,955 51,734
Change in inventories [3.7] 693 (3,255 )
Change in trade receivables [3.8] (3,270 ) (3,502 )
Change in trade payables [3.17] 4,220 3,402
Change in other assets/liabilities [3.10] [3.16] [3.19] 316 523
Change in non-current assets [3.6] (156 ) 358
Income taxes paid (2,019 ) (846 )
Cash flows from operating activities A) 50,739 48,414
Investing activities
Acquisitions of property, plant and equipment [3.3] (25,234 ) (21,983 )
Disposal of property, plant and equipment [3.3] 1,418 2,108
Acquisitions of intangible assets [3.1] (12,229 ) (14,229 )
Disposal of intangible assets [3.1] 955 47
Cash flows used in investing activities B) (35,090 ) (34,056 )
Financing activities
Third party funds
Net change in current financial liabilities [3.15] 8,916 805
Gross change in non-current financial liabilities [3.15] (0 ) (572 )
Decrease in lease liabilities [3.15] (4,401 ) (3,384 )
Net interest income [3.28] 163 154
Net interest paid [3.28] (15,911 ) (16,131 )
Cash flows from (used in) in financing activities C) (11,231 ) (19,127 )
Increase (decrease) in liquid funds (A B C) 4,417 (4,770 )
Opening cash and cash equivalent 21,503 26,273
Closing cash and cash equivalent 25,920 21,503
Increase (decrease) in cash and cash equivalents 4,417 (4,770 )
Notes to the consolidated financial statements as at 31 December 2022
[2.1] General information
The Limacorporate Group (the
group ) designs, creates and sells joint implants and repair solutions in the medical sector.
The parent, Limacorporate S.p.A.
( Limacorporate or the parent ), was set up and is domiciled in Italy. Its registered office is at Via Nazionale 52, San Daniele del Friuli (Udine) and its company registration number is 173824.
The group carries out most of its business at its registered office while some activities are also performed by the subsidiaries.
The consolidated financial statements as at and for the year ended 31 December 2022 include the financial statements of the parent and the subsidiaries
(together the group ).
These consolidated financial statements as at 31 December 2022 were approved by the parent s board of
directors at its meeting on 3 October 2023.
The parent is managed and coordinated by Emil Holding II S. .r.l., whose details are provided
[2.2] Basis of presentation
The consolidated financial
statements as at 31 December 2022 is prepared in accordance with the IFRS issued by International Accounting Standards Board (IASB) applying IFRS 1 First-time Adoption of International Financial Reporting Standards.
Following the adoption of the IFRS issued by IASB, the Group s equity and profit for the year previously determined under the IFRS endorsed by the
European Union, were corrected due to a correction of error related to the payback mechanism accounted in compliance with IFRS 15, retrospectively, as reduction of revenue (variable consideration). The note [4.1] Transition to IFRS issued by IASB
describes the corrected error and transition criteria and includes the reconciliation schedules of the Group s equity and profit for the year for the comparative periods.
These consolidated financial statements as at 31 December 2022 comprise the statement of financial position, income statement, statement of comprehensive
income, statement of changes in equity, statement of cash flows and these notes. They comply with the provisions of IAS 1 Presentation of financial statements and the general principle of historical cost, except for those items that, pursuant to the
IFRS, are measured at fair value, as explained in the accounting policies of the individual captions in note 2.4 Basis of preparation. The statement of financial position has been prepared by separating assets and liabilities into current and non-current, whereas costs are classified in the income statements on the basis of their nature. The statement of cash flows has been prepared using the indirect method.
The notes to the consolidated financial statements as at 31 December 2022 include the information generally required by ruling legislation and the IFRS,
suitably presented with reference to the financial statements schedules used.
The consolidated financial statements as at 31 December 2022 have been
prepared on a going concern basis, as the related assumptions are deemed to be met.
All figures are in thousands of Euros, unless indicated otherwise.
The Euro is the parent s functional and presentation currency. For each financial statements caption, the corresponding amount of the previous year is provided for comparative purposes.
The consolidated financial statements of Limacorporate Group as at 31 December 2022 has been prepared
for its inclusion in the offering memorandum drawn up by Enovis Corporation as part of its potential issue of notes.
[2.3] Consolidation scope
The consolidated financial statements of the Limacorporate Group as at 31 December 2022 include the financial statements of the parent and the
Italian and foreign subsidiaries at 31 December 2022.
Subsidiaries are those companies over which the group has control, as defined by IFRS 10
Consolidated financial statements as at 31 December 2022. Control exists when the group has the power to, directly or indirectly, govern the financial and operating policies of an entity so as to obtain benefits from its activities. The
financial statements of subsidiaries are included in the consolidated financial statements as at 31 December 2022 starting from when control is assumed and until such control ceases to exist.
The table below lists the companies included in the consolidation scope at 31 December 2022.
Subsidiaries are included in the consolidation scope from when the group acquires control, as defined above, and are excluded from when the group no longer
Amounts in thousands (of the stated currency)
Registered office Currency Share/quota capital Equity Profit (Loss) for the year %
LIMA AUSTRIA GmbH Seestadtstrasse 27 Top 6-7, 1220 Vienna (Austria) (EUR) 35 1,278 172 100 %
LIMA BELGIUM SRL Chauss e de Wavre 504, bo te 5A - 1390 Grez Doiceau (Belgium) (EUR) 30 -1,250 289 100 %
LIMA CZ s.r.o. Do Zahr dek I., 157/5 - 155 21 Praha 5 - T ebonice - (Czech Republic) (CZK) 200 116,390 16,178 100 %
LIMA DENMARK ApS Lyngebaekgards Alle 2, 2990 Niva (Denmark) (DKK) 500 427 142 100 %
LIMA DEUTSCHLAND GmbH Kapstadtring 10, - 22297 Hamburg - (Germany) (EUR) 25 5,291 1,674 100 %
LIMA DO BRASIL LTDA Al. Campinas, 728 2 andar salas 201, 202, 203 e 204.- Jardim Paulista - Sao Paulo - SP - CEP:01404- 001 (Brazil) (BRL) 1,500 -10,475 7,754 100 %
LIMA FRANCE Sas 1, All e des Alisiers - Immeuble Le Galil e - 69500 Bron - (France) (EUR) 40 440 161 100 %
LIMA IMPLANTES PORTUGAL S.U. LDA Rua P ro Vaz de Caminha 8 E 2660-441 St Ant nio Cavaleiros - (Portugal) (EUR) 5 2,357 125 100 %
LIMA IMPLANTES Slu C/ Manuel Tovar, 33-35 28034 Madrid - (Spain) (EUR) 200 1,089 29 100 %
LIMA JAPAN K.K. Tokyo Front Terrace 13F 2-3-14 Higashi Shinagawa, Shinagawa, Tokyo, 140-0002 , (Japan) (JPY) 10,000 -984,102 -34,681 100 %
LIMA KOREA Co., Ltd Zero Building 11th Floor, 14 Teheran Ro 84 Gil, Gangnam Gu, Seoul 06178 - (Korea) (KRW) 100,000 -1,932,158 299,988 100 %
LIMA NETHERLANDS B.V. Bergweg 153A, 3707AC Zeist - (Netherlands) (EUR) 18 1,007 232 100 %
LIMA O.I. d.o.o. - ORTOPEDIJA I IMPLANTATI Ante Kova i a, 3 - 10000 Zagreb - (Croatia) (HRK) 300 32,024 1,586 100 %
LIMA ORTHOPAEDICS AUSTRALIA Pty Ltd Unit 1, 40 Ricketts Road - Mt Waverley, 3149 Victoria - (Australia) (AUD) 0 21,875 405 100 %
LIMA ORTHOPAEDICS NEW ZEALAND Pty Ltd 20 Crummer Rd Grey Lynn 1021 Auckland 1021 - New Zealand (NZD) 0 10,014 195 100 %
LIMA ORTHOPAEDICS SOUTH AFRICA (PTY) LTD Northlands Deco Park, Stand 326, 10 Newmarket Street, Design Boulevard, Northriding, 2186 (South Africa) (ZAR) 0 -11,459 -92 100 %
LIMA ORTHOPAEDICS UK Ltd 4 Office Village Forder Way Cygnet Park Hampton Peterborough Peterborough PE7 8GX (United Kingdom) (GBP) 0 6,932 947 100 %
LIMA POLSKA SP. z.o.o. ul. Ul Lopuszanska 95 - 02-457 Warsaw (Poland) (PLN) 5 472 1,126 100 %
LIMA SK S.r.o. Cesta na Stadi n 7 - 97404 Banska Banska Bystrica - (Slovakia) (EUR) 7 6,371 313 100 %
LIMA SWEDEN AB Box 180 - SE-184 22 Akersberga - (Sweden) (SEK) 100 1,678 666 100 %
LIMA SWITZERLAND SA Birkenstrasse, 49 - 6343 Rotkreuz - Zug - (Switzerland) (CHF) 100 2,084 328 100 %
TASFIYE HALINDE LIMA TURKEY ORTOPEDI AS Serifali Mah. Hendem Cad.No: 54 Canan Residence OFIS A-2,34775 - UMRANIYE - Istanbul - (Turkiye) (TRY) 50 -13,713 -11,252 100 %
LIMA USA Inc. 2001 NE Green Oaks Blvd, Suite 100 - Arlington, TX 76006 - (United States) (USD) 20 79,420 -1,368 100 %
LIMA SM S.p.A. in liquidazione Strada Borrana, 38 - Serravalle 47899 - (Repubblica di San Marino) (EUR) 2,701 4,051 -1,174 100 %
TechMah Medical LLC 2099 Thunderhead Road, Suite 302 - Knoxville, TN 37922 - (United States) (USD) 29,084 961 -8,268 100 %
LIMA (BEIJING) MEDICAL DEVICES CO., LTD. Room 616, 6/F, Building 1, No.1, Lize Zhong 2 Road, Chaoyang District, Beijing, China (CNY) 3,014 -3,784 -2,761 100 %
LIMA ORTHOPAEDICS CANADA INC. 3715 Laird Road Suite Unit 9, Mississauga, ON, Canada (CAD) 200 221 28 100 %
Lima Orthopaedics Canada Inc. incorporated under Canadian law in October 2021 was included in the
consolidation scope in 2022. It began operations in the first half of 2022 and was not consolidated in 2021 as it was not yet up and running and was immaterial.
For consolidation purposes, the figures of the individual companies at the reporting date were restated to comply with the IFRS adopted by the group. The
reporting date of all of the consolidated companies is 31 December.
The basis of consolidation is set out below:
The following rates were applied in translating the financial statements of foreign operations:

Frequently Asked Questions

What is the audit opinion on Limacorporate's financial statements?

The auditors believe the financial statements present a true and fair view.

What significant error was noted in the audit report?

An error related to the payback mechanism was corrected under IFRS 15.

What are the responsibilities of Limacorporate's directors?

Directors must prepare financial statements that comply with IFRS standards.

What was Limacorporate's profit or loss for 2022?

Limacorporate reported a loss of €19,273 for the year 2022.

Where is Limacorporate located?

Limacorporate is located at Piazza Salvemini, 20.

Last updated: Oct 19, 2023