1)

GENERAL INFORMATION

The consolidated audited financial statements (‘financial statements’) incorporate the results of DP Aircraft

I Limited (the “Company”) and that of wholly owned subsidiary entities, DP Aircraft Guernsey III Limited, DP

Aircraft Guernsey IV Limited (collectively and hereinafter, the ‘Borrowers’), each being a Guernsey

incorporated company limited by shares and one intermediate lessor company, DP Aircraft UK Limited (the

‘Lessor’), a UK incorporated private limited company respectively. The Company and its subsidiaries (the

Borrowers and the Lessor) comprise together the “Group”.

The Company was incorporated on 5 July 2013 with registered number 56941. The Company is admitted to

trading on the Specialist Fund Segment of the London Stock Exchange.

The Company’s investment objective is to obtain income and capital returns for its shareholders by

acquiring, leasing and then, when the Board considers it appropriate, selling aircraft.

The financial statements were approved by the Board of Directors and authorised for issue on 25 April 2024.

2)

MATERIAL ACCOUNTING POLICY INFORMATION

a)

Basis of preparation

These financial statements are prepared in accordance with International Financial Reporting Standards,

International Accounting Standards and Interpretations (‘IFRS’) issued by the International Accounting

Standards Board (‘IASB’) and the Disclosure Guidance and Transparency Rules (the ‘DTRs’) of the UK’s

Financial Conduct Authority (the ‘FCA’).

The preparation of financial statements in accordance with IFRS requires the use of certain critical

accounting estimates. It also requires the Directors to exercise judgement in applying the Company’s

accounting policies. The areas where significant judgements and estimates have been made in preparing

the financial statements and their effect are disclosed in note 3.

The financial statements are presented in United States Dollars (US$) which is also the functional currency

of the Company and its subsidiaries.

Material uncertainty relating to going concern

The Directors believe that it is appropriate to prepare these consolidated financial statements on a going concern

basis as the current cash flow forecasts demonstrate that the Group, with continued deferral of fees, as outlined

below, from some service providers, has sufficient cash to cover operating costs for a period of at least twelve

months from the signing of the consolidated financial statements (the “going concern period”).

Should a plausible downside scenario occur additional finance will be required to provide sufficient funding to

fund the Group’s activities to cover any negotiations with the lenders as further detailed below. In this respect

the Company believes it is therefore prudent to raise additional capital in Q3 2024. The Board will consult with

its broker regarding a proposed capital raise and its uptake. However, the outcome is currently uncertain.

The Board therefore concludes that to sufficiently cover off all going concern scenarios, there is a material

uncertainty, however it remains appropriate to prepare the financial statements on a going concern basis.

2)

MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED)

a)

Basis of preparation (continued)

Material uncertainty relating to going concern (continued)

In making this conclusion, the Board have taken into consideration:



that Thai Airways have made monthly fixed lease rental payments on time and in full from the start of the

revised fixed rental period commencing in January 2023. Further that Thai Airways have reported a

consistent return to profitability and have projected that they will exit their formal rehabilitation Period

in Q4 2024;



that given Thai Airways improved performance the Company will continue to receive US$ 35,000 per

aircraft per month as a contribution towards its operating costs with the rest going towards the pay down

of the Group’s outstanding loan arrangements;



the continued deferral of some fees by the Board, the Asset Manager and the Broker as noted in note 13;



successfully raising up to US$ 1m in Q3 2024 to allow the Group to trade beyond the going concern period

to facilitate negotiating (i) an extension to the current loan maturities beyond the expiring loan terms in

Q4 2026 with the Lenders, and (ii) an enhancement of the terms and conditions of the leases with Thai

Airways, noting that negotiations with the lenders will commence in late 2024; and



as a matter of prudence, the Company will need to consider costs associated with the winding up of the

Group should it be required.

New standards, interpretation and amendments from 1 January 2023

The Group adopted Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)

from 1 January 2023. The amendments require the disclosure of 'material' rather than 'significant'

accounting policies. Although the amendments did not result in any changes to the accounting policies

themselves, they impacted the accounting policy information disclosed (in this note) in certain instances.

New and amended accounting standards and interpretations.

At the date of authorisation of these financial statements, the following amendments to Standards and

Interpretations were assessed to be relevant and are all effective for annual periods beginning on or after 1

January 2024 and thereafter:

– IAS 1 Amendments (Classification of Liabilities as Current or Non-Current)

– IAS 1 Amendments (Disclosure of Accounting Policies and IFRS Practice Statement 2)

– IAS 1 Amendments (Non-current Liabilities with Covenants)

– IAS 8 Amendments (Definition of Accounting Estimates)

– IAS 12 Amendments (Deferred Tax and OECD Pillar 2 Taxes)

– IAS 12 Amendments (Deferred Tax related to Assets and Liabilities arising from a Single Transaction)

2)

MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED)

a)

Basis of preparation (continued)

New and amended accounting standards and interpretations (Continued)

The Group intends to adopt the Standards and Interpretations in the reporting period when they become

effective and the Board does not anticipate that the adoption of these Standards and Interpretations in

future periods will materially impact the Group’s financial results in the period of initial application although

there may be revised presentations to the Financial Statements and additional disclosures.

b)

Basis of consolidation

The financial statements incorporate the financial statements of the Company and the subsidiary

undertakings controlled by the Company made up to 31 December each year. Control is achieved where the

Company has power over the investee, exposure or rights to variable returns from its involvement with the

investee and the ability to use its power to affect the amount of the investor’s returns.

When control of a subsidiary undertaking is lost, the assets and liabilities of that subsidiary are

deconsolidated at the date of loss of control and a resulting loss or gain on loss of control is reported in

profit or loss.

The results of subsidiary undertakings acquired or disposed of during the year are included in the

consolidated statement of comprehensive income from the effective date of acquisition or up to the

effective date of disposal as appropriate. All intra-group transactions, balances, income and expenses are

eliminated on consolidation.

c)

Property, Plant and Equipment (PPE) – Aircraft and Related Components

Upon delivery, aircraft (the ‘Assets’) are initially recognised at cost plus initial direct costs which may be

capitalised under IAS 16. In accounting for property, plant and equipment, the Group makes estimates about

the expected useful lives, the fair value of attached leases and the estimated residual value of aircraft. In

estimating useful lives, fair value of leases and residual value of aircraft, the Group relies upon actual

industry experience, supported by estimates received from independent appraisers.

Items of PPE are measured at cost less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of PPE have different useful lives, then they are accounted for as separate

items of PPE.

d)

Depreciation

Depreciation is calculated to write off the cost of items of PPE less their residual values under the straight-

line method over their estimated useful lives and is generally recognised in profit or loss.

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if

appropriate.

2)

MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED)

e)

Lease

When an aircraft is acquired with a lease attached, an evaluation of whether the lease is at fair value is

undertaken.

A lease premium is recognised when it is determined that the acquired lease terms are above

fair value.

Lease premiums are recognised as a component of aircraft and are amortised to profit or loss on

a straight-line basis over the term of the lease.

The two aircraft leased to Thai Airways International were acquired in 2015 and had a useful economic lease

life of 12 years at acquisition. The useful economic lease life since acquisition of 12 years is unchanged as at

year end.

The Group’s policy is to depreciate the Assets over their remaining lease life (given the intention to sell the

Assets at the end of each respective lease) to an appraised residual value at the end of the lease. Residual

values are reviewed annually at the beginning of each year, and such estimates are supported by future

values determined by two external valuations and discounted by the inflation rate incorporated into those

valuations, see note 3 for further details.

f)

Operating lease – Group as lessor

At inception of a contract, the Group assesses whether a contract is, or contains, a lease.

A contract is, or

contains, a lease if the contract conveys the right to control the use of an identified asset for a period of

time in exchange for consideration.

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or

an operating lease.

The Group makes an overall assessment of whether the lease transfers substantially all of the risks and

rewards incidental to ownership of the underlying asset.

If this is the case, then the lease is a finance lease;

if not, it is an operating lease.

g)

Lease rental income

Leases relating to the Aircraft are classified as operating leases where the terms of the lease do not transfer

substantially all the risks and rewards of ownership to the lessee. Fixed rental income from operating leases

is recognised on a straight-line basis over the term of the lease. Variable rental income is accounted for on

an accrual basis. Any modifications to operating leases are accounted for as a new lease from the effective

date of the modification, considering any prepaid or accrued lease payments relating to the original lease

as part of the lease payments for the new lease.

Initial direct costs incurred in setting up a lease are capitalised to Property, Plant and Equipment and

amortised over the lease term.

h)

Bank Borrowings and interest expense

Bank borrowings are recognised initially at fair value, net of transaction costs incurred. Bank borrowings are

subsequently measured at amortised cost; any difference between the proceeds (net of transaction costs)

and the redemption value is recognised through profit or loss in the consolidated statement of

comprehensive income over the period of borrowing using the effective interest rate method. Bank

borrowings are classified as current liabilities unless the Group has an unconditional right to defer

settlement of the liability for at least one year after the reporting date.

2)

MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED)

h)

Bank Borrowings and interest expense (Continued)

Initial direct costs related to bank borrowings are capitalised, presented net against the bank borrowings in

the consolidated statement of financial position and amortised to the consolidated statement of

comprehensive income over the period of the related loan as part of the effective interest rate.

Where loans are modified, the modification is assessed in line with IFRS 9 to determine whether the

modification is substantial. Where the modification is substantial, the existing loan is derecognised and the

new loan is recognised at fair value. Where the modification is not substantial, the existing loan is not

derecognised. Any difference arising on modification is recognised as a gain or loss within the consolidated

statement of comprehensive income regardless of whether the modification is substantial or not.

Interest expense is calculated using the effective interest rate method. The effective interest method is a

method of calculating the amortised cost of a financial liability and of allocating interest expense over the

relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments

(including all fees or amounts paid or received that form an integral part of the effective interest rate,

including transaction costs and other premiums or discounts) through the expected life of the financial asset

or liability.

i)

Restricted Cash

Restricted cash comprises cash held by the Group, but which is ring-fenced or used as security for specific

financing arrangements, and to which the Group does not have unfettered access. Restricted cash includes

monies received in relation to maintenance provisions and security deposits.

j)

Maintenance Reserves Provision

Maintenance reserves are lessee contributions to a retention account held by the lessor which are

calculated by reference to the budgeted cost of maintenance and overhaul events (the ‘supplemental

rentals’). They are intended to ensure that at all times the lessor holds sufficient funds to cover the

proportionate cost of maintenance and overhaul of the Asset relating to the life used on the airframe,

engines and parts since new or since the last overhaul. During the term of the lease, all maintenance is

required to be carried out at the cost of the lessee, and maintenance provisions are required to be released

only upon receipt of satisfactory evidence that the relevant qualifying maintenance or overhaul has been

completed.

Maintenance reserves are recorded in the consolidated statement of financial position during the term of

the lease as a liability. Reimbursements will be charged against this liability as qualifying maintenance work

is performed. Maintenance reserves are restricted and not distributable until, at the end of the lease, the

Group is released from the obligation to make any further reimbursements in relation to the aircraft, and

the remaining balance of maintenance provisions, if any, is released through profit or loss as lease related

income. On termination of the lease maintenance reserves balance is also released to profit or loss as lease

related income.

2)

MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED)

k)

Segmental reporting

The Directors are of the opinion that the Group is engaged in a single segment of business, being acquiring,

leasing and subsequent selling of aircraft. All significant operating decisions are based upon analysis of the

Group as one segment. The financial results from this segment are equivalent to the financial statements of

the Group as a whole.

3)

USE OF JUDGEMENTS AND ESTIMATES

The preparation of financial statements in conformity with IFRS requires that the Directors make

judgements and estimates about the future, that affect the application of the Group’s accounting policies

and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these

estimates.

Information about assumptions and estimation uncertainty at 31 December 2023 that have a significant

effect of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next

financial year are:

Assumptions and estimation uncertainties in the impairment testing of PPE and key assumptions

underlying recoverable amounts cost of disposal.

Impairment of property, plant and equipment

An impairment is recognised if the carrying amount of an asset exceeds its recoverable amount.

Impairment

losses are recognised in profit or loss.

At each reporting, the Group reviews the carrying amounts of its PPE to determine whether there is any

indication of impairment. If any such indication exists, then the assets’ recoverable amount is estimated.

The recoverable amount of an asset is the higher of the value in use and fair value less cost to disposal. In

considering the impairment of the Thai aircraft, the Board concluded that the fair value less costs of disposal

was the recoverable amount. The fair value less costs of disposal used in the assessment is based on the

full-life market value of each aircraft as determined by 2 independent appraisers given the aircraft have a

lease with a full-life return condition attached to them.

The Board considered all possible valuation ranges and concluded that the Thai aircraft were not impaired

as at 31 December 2023 given the fair value less costs of disposal was greater than the book value of the

aircraft. 2 independent appraisers determined that the full life market value of the aircraft as at 31

December 2023 ranges from US$ 59.8m to US$ 74.5m. Note, every appraiser has its own opinion of the

market and how the market will develop. On a specific aircraft type one appraiser might be more favourable

compared to another firm and vice versa. In addition, appraisers obtain their market information from

different sources and use different calculation models. This has an influence on future and current market

values hence the wide range.

In order to eliminate peaks in one or the other direction the Board take the

average of the 2 appraisers in determining market values for the aircraft. This approach is consistent with

the approach adopted by other market participants (lessors, lenders, etc) and is consistent with prior

periods. Given the nature and life of the aircraft this approach is considered to be reasonable. The average

market value less selling costs for each aircraft is more than each

aircraft’s carrying value. Therefore, no

impairment loss has been recognised during the financial year ended 31 December 2023 ( 2022: US$ nil).

3)

USE OF JUDGEMENTS AND ESTIMATES (CONTINUED)

Impairment of property, plant and equipment (Continued)

The Board also considered if there was any indication that the accumulated impairment recognised in

previous years on Thai aircraft of US$ 58,839,697 had reversed partially or in full. The Board has concluded

that based on the possible ranges of the aircraft valuations, there was no reversal during the year ended 31

December 2023.

The aircraft are currently in a half-life state which means the airframe, engines, landing gear and other major

time/cycle limited components are halfway through their various overhaul and /or life cycles. Note that the

aircraft will be returned in a full-life condition on termination of the leases hence full-life market value was

used in the impairment assessment.

Depreciation of aircraft

As described in note 2, the Group depreciates the Assets on a straight-line basis over the remaining lease

life and taking into consideration the estimated residual value at the end of the lease term. The Group

engages independent expert valuers (appraisers) each year to provide a valuation of the Assets and take

into account the average of the valuations provided.

Residual value estimates of the Aircraft were determined by the full life inflated base values at the end of

the leases from external valuations and discounted by the inflation rate incorporated into those valuations.

The full life inflated base value is the appraiser’s opinion of the underlying economic value of the aircraft in

an open, unrestricted, stable market environment with a reasonable balance of supply and demand and

assumes full consideration of its ‘highest and best use’. The full life inflated values used within the financial

statements match up the two lease termination dates (October 2026 and December 2026) and have been

discounted by the inflation rate incorporated into the valuations. The residual value of the aircraft does not

represent the current fair value of the aircraft.

The residual value estimates at the end of each year are used to determine the aircraft depreciation of

future periods. The residual value estimates for aircraft as at 31 December 2023 was US$ 122,852,389 (2022:

US$ 120,247,838), carrying value as at 31 December 2023 was US$ 124,122,582 (2022: US$ 125,466,080).

4)

LEASE RENTAL INCOME

2023

2022

US$

US$

Variable rental (PBH rent) income

-

7,709,166

Straight lining rental income

8,714,249

8,753,206

Total lease rental income

8,714,249

16,462,372

All lease rental income was derived from Thai Airways and the related two Boeing 787-8 aircraft leased to

them.

Until 31 December 2022 the lease terms provided for a power by the hour (‘PBH’) arrangement (i.e., rent

was payable by reference to actual monthly utilisation of the Thai aircraft). After 31 December 2022, lease

payments are fixed at US$ 510,000 per month until October and December 2026 respectively for each lease.

The lease term may be extended by three years to October 2029 for aircraft MSN 36110 and December

2029 for aircraft MSN 35320 (the "Extension Period") with further scaled back monthly lease payments

starting from November 2026 and January 2027 respectively. The Extension Period is however subject to

agreement with the Group after consulting the Lenders. The lease term has been determined to be the

period to October 2026 and December 2026 which is the non-cancellable term of each aircraft lease.

The contracted cash lease rental payments to be received under non-cancellable operating leases at the

reporting date are:

Boeing 787-8

Boeing 787-8

Serial No: 35320

Serial No: 36110

Total

31 Dec 2023

US$

US$

US$

2024

6,120,000

6,120,000

12,240,000

2025

6,120,000

6,120,000

12,240,000

2026

5,758,065

5,067,097

10,825,162

17,998,065

17,307,097

35,305,162

31 Dec 2022

US$

US$

US$

2023

6,120,000

6,120,000

12,240,000

2024

6,120,000

6,120,000

12,240,000

2025

6,120,000

6,120,000

12,240,000

2026

5,758,065

5,067,097

10,825,162

24,118,065

23,427,097

47,545,162

US$ 10,038,709 (2022: US$ 13,525,502) of the future contracted lease rental payments are recognised as a

straight lining lease asset as at year end.

5)

GENERAL AND ADMINISTRATIVE EXPENSES

2023

2022

US$

US$

Administration fees

227,569

259,437

External accounting services

21,726

36,810

Aircraft agency fees

5,523

12,033

Aircraft valuation fees

13,266

9,092

Aircraft security trustee fees

25,079

12,000

Audit fees

123,398

69,895

Interim audit fees

-

12,810

Company broker fees

167,899

167,902

Directors' fees and expenses

196,520

212,593

Insurance costs, including directors' insurance

89,249

100,873

Foreign exchange

26,095

4,974

IT and printing costs

19,036

22,378

Legal fees

8,194

3,157

Miscellaneous costs

12,911

8,399

Registrar fees

26,016

28,738

Other expenses

14,213

20,725

Total ongoing costs

976,694

981,816

Restructuring fees

152,946

112,771

Total general and administrative expenses

1,129,640

1,094,587

6)

FINANCE COSTS

2023

2022

US$

US$

Loan interest

4,494,653

4,860,305

Loan Modification adjustment

Loan arrangement fee

5,042,029

14,993

-

-

Total finance costs

9,551,675

4,860,305

During the period there was a restructure of the loans advanced by DekaBank. Management, in line with IFRS 9,

assessed whether the modification was substantial or not. The assessment was done on a quantitative basis and

compared the net present value of the modified cash flows per the amended loan terms including any fees

payable or receivable, discounted at the original effective interest rate, against the carrying value of the loans

prior to the modification. A difference of 10% or more would have been considered substantial as is advised in

IFRS 9. Management concluded that the modification was not substantial, and a modification adjustment, being

the difference between the net present value of the cash flows under the revised terms discounted at the original

agreement’s effective interest rate and the carrying value of the loans immediately prior to the modification, was

made to the existing loan in line with IFRS 9. This totalled US$ 5,042,029 and increased both finance costs and

the loans payable at the point of modification. This adjustment essentially recognises a loss now due to the less

favourable terms (primarily interest rate increases) under the modified terms compared to the original terms. As

a result of this adjustment, interest will be recognised at the lower original effective interest rate as opposed to

the higher modified interest rate going forward.

7)

TAXATION

With the exception of DP Aircraft UK Limited, all companies within the Group are exempt from taxation in

Guernsey and are charged an annual exemption fee of £1,600 each (2022: £1,200).

DP Aircraft UK Limited are subject to taxation at the applicable rate in the United Kingdom. They recorded

a tax benefit of US$3,603 during the year compared to a tax expense of US$21,249 in 2022. The Directors

do not expect the taxation payable to be material to the Group.

A tax reconciliation has not been presented in these Financial Statements as the effective tax rate is not material

and the reconciliation is not relevant to the understanding of the Company’s results for the year end.

8)

EARNINGS PER SHARE

2023

2022

US$

US$

(Loss)/Profit for the year

(2,505,687)

7,660,823

Weighted average number of shares

239,333,333

223,388,128

(Loss)/Earnings per Share

(0.01047)

0.03429

9)

PROPERTY, PLANT & EQUIPMENT – AIRCRAFT & RELATED COMPONENTS

Aircraft

Lease Premium

Total

US$

US$

US$

COST

As at 1 January 2023 and 31 December 2023

238,731,161

17,398,493

256,129,654

ACCUMULATED DEPRECIATION / AMORTISATION

As at 1 January 2023

54,425,384

8,200,047

62,625,431

Charge for the year

1,343,498

-

1,343,498

As at 31 December 2023

55,768,882

8,200,047

63,968,929

IMPAIRMENT

As at 1 January 2023

58,839,697

9,198,446

68,038,143

Charge for the year

-

-

-

As at 31 December 2023

58,839,697

9,198,446

68,038,143

CARRYING AMOUNT

As at 31 December 2023

124,122,582

-

124,122,582

Aircraft

Lease Premium

Total

US$

US$

US$

COST

As at 1 January 2022 and 31 December 2022

238,731,161

17,398,493

256,129,654

ACCUMULATED DEPRECIATION /

AMORTISATION

As at 1 January 2022

53,466,624

8,200,047

61,666,671

Charge for the year

958,760

-

958,760

As at 31 December 2022

54,425,384

8,200,047

62,625,431

IMPAIRMENT

As at 1 January 2022

58,839,697

9,198,446

68,038,143

Charge for the year

-

-

-

As at 31 December 2022

58,839,697

9,198,446

68,038,143

CARRYING AMOUNT

As at 31 December 2022

125,466,080

-

125,466,080

9)

PROPERTY, PLANT & EQUIPMENT – AIRCRAFT & RELATED COMPONENTS (CONTINUED)

As at year end PPE is comprised of two aircraft leased to Thai Airways under an operating lease. Under the

terms of the leases that existed during the year, the cost of repair and maintenance of the Assets is to be

borne by Thai Airways and Thai Airways has an obligation to return the Assets in a full life condition.

However, after expiry or termination of the leases with Thai, the cost of repair and maintenance will fall

upon the Group. Therefore, after expiry or termination of the Thai leases, the Group may bear higher costs

and the terms of any subsequent leasing arrangements (including terms for repair, maintenance and

insurance costs relative to those agreed under the leases) may be less favourable, which could reduce the

overall distributions paid to the shareholders.

Refer to note 3 for details regarding residual value estimates. The Group depreciates the aircraft on a

straight-line basis over the remaining lease term. The lease term has been determined to end in 2026.

As detailed in note 3, as at 31 December 2023 there is no impairment to the aircraft and there are no

indications of reversal of prior year impairment either. Refer to note 3 for further details.

The loans entered into by the Group to complete the purchase of the two Thai aircraft are cross

collateralised. Each of the loans are secured by way of security taken over each of the two aircraft.

10)

RESTRICTED CASH

2023

2022

Current assets

US$

US$

Security deposit accounts

97

91

Lease rental accounts

1,093,662

4,175,189

1,093,759

4,175,280

Non-current assets

Maintenance reserves accounts

15,735,805

14,979,197

Total restricted cash

16,829,564

19,154,477

Maintenance reserves held at reporting date, are to be used solely to cover costs related to the maintenance of

the two aircraft. Effective 15 June 2021, the Group no longer receives maintenance reserves contributions from

the lessee in line with the updated lease terms.

The majority of security deposits were transferred to Lease Rental Accounts during the prior period and are being

used to service loan payments due to DekaBank in accordance with the DekaBank financing arrangements.

Monies received into the Lease Rental Accounts during the fixed rent period are to be transferred into Borrower

Rental Accounts and applied in a specific manner as agreed between DekaBank and the Group. Access to the

Lease Rental Accounts, Security deposit accounts and Maintenance reserves accounts is physically restricted by

DekaBank therefore these monies are classified as restricted cash.

11)

TRADE AND OTHER RECEIVABLES

2023

2022

US$

US$

Prepayments

61,914

82,333

Rent receivable

-

671,585

Straight-lining lease asset

10,038,709

13,525,503

Total trade and other receivables

10,100,623

14,279,421

Less

: Expected credit loss on straight lining lease asset

(1,103,254)

(1,486,453)

Net trade and other receivables

8,997,369

12,792,968

Current and non-current split as at year end is as follows:

2023

2022

Current assets

US$

US$

Prepayments

61,914

82,333

Rent receivable

-

671,586

Straight-lining lease asset

3,082,249

3,103,595

3,144,163

3,857,514

Non-current assets

Straight-lining lease asset

5,853,206

8,935,454

Trade and other receivables

8,997,369

12,792,968

The Group has assessed the straight-lining lease asset for impairment. This balance represents the result of

straight lining of future fixed Thai lease payments over the lease term. The Group has performed an

assessment on the straight-lining lease asset taking into account current and future information relating to

the airline industry as well as the lessee specifically and concluded that the expected credit loss provision

as at 31 December 2023 is US$ 1,103,254 (2022: US$ 1,486,453). For the remaining receivables, the Group

has concluded that these are not material thus any provision, if any, would also be immaterial and so no

further assessment is necessary.

Movements in the impairment provision for trade receivables is as follows:

2023

2022

US$

US$

Opening provision

1,486,453

-

Expected credit loss on straight lining lease asset

(383,199)

1,486,453

Expected credit loss on lease receivable

-

105,063

Lease receivable written off

-

(105,063)

Closing provision

1,103,254

1,486,453

12)

MAINTENANCE PROVISION

The maintenance reserves

liability relates to funds received from Thai Airways reserved for covering the

cost of maintenance. Effective 15 June 2021, the Group no longer receives maintenance reserves

contributions from the lessee in line with the updated lease terms.

13)

TRADE AND OTHER PAYABLES

2023

2022

Current

US$

US$

Accruals and other payables

255,581

221,749

Asset Manager fees payable (note 22)

283,011

218,033

Broker fees payable

321,809

167,902

Director fees payable (note 21)

225,105

212,360

Taxation payable

6,560

21,249

Total trade and other payables

1,092,066

841,293

All directors, brokers fees and most of the asset manager fees have been classified as current liabilities under

IFRS but these creditors have agreed the amounts are not payable within twelve months unless there is an

asset sale.

14)

BANK BORROWINGS

2023

US$

2022

US$

Current liabilities: Bank interest payable and Bank

borrowings

(7,684,502)

17,707,184

Non-current liabilities: Bank borrowings

(85,027,721)

80,779,172

Total liabilities

(92,712,223)

98,486,356

The borrowings are repayable as follows:

Interest payable

183,992

181,493

Within one year

7,500,510

17,525,691

In two to five years

85,027,721

80,779,172

Total Bank borrowings

92,712,223

98,486,356

14)

BANK BORROWINGS (CONTINUED)

The table below analyses the movements in the Group’s bank borrowings:

2023

2022

US$

US$

Opening balance

98,304,863

98,304,863

Loan modification adjustment (note 6)

5,042,029

-

Repayment of loan

(9,556,363)

-

Amortisation payable

(1,262,298)

-

Principal Bank borrowings

92,528,231

98,304,863

Interest payable

183,992

181,493

Total Bank borrowings

92,712,223

98,486,356

The table below sets out an analysis of net debt and the movements in net debt for the year ended

31 December 2023

Cash and

cash

equivalents

Principal

Interest

Net Debt

US$

US$

US$

US$

At 1 January 2023

1,479,541

(98,304,863)

(181,493)

(97,006,815)

Cash flows

(565,036)

9,556,363

5,769,445

14,760,772

Non cash: -

Modification

adjustment

-

(5,042,029)

-

(5,042,029)

Amortisation

adjustment

-

1,262,298

(1,262,298)

-

Interest charge

Loan arrangement fee

-

-

-

-

(4,494,653)

(14,993)

(4,494,653)

(14,993)

At 31 December 2023

914,505

(92,528,231)

(183,992)

(91,797,718)

Cash and

cash

equivalents

Principal

Interest

Net Debt

US$

US$

US$

US$

At 1 January 2022

1,179,211

(98,304,863)

(136,010)

(97,261,662)

Cash flows

300,330

-

4,814,822

5,115,152

Non cash: -

Interest charge

-

-

(4,860,305)

(4,860,305)

At 31 December 2022

1,479,541

(98,304,863)

(181,493)

(97,006,815)

14)

BANK BORROWINGS (CONTINUED)

DekaBank

On 6 May 2021, subsequent to the LOI being entered into by the Group and Thai as described in the

summary in page 4, the Group and DekaBank amended and restated the existing loan facility agreements in

respect of the Thai aircraft to accommodate the new lease terms, First Amendment and Restatement to the

Loan Agreements. Repayments of principal were deferred until after the end of the PBH arrangement (31

December 2022), and a new repayment schedule was to be renegotiated close to the end of the PBH

arrangement.

On 7 February 2023, the Group and DekaBank entered into a Second Amendment and Restatement to the

Loan Agreement in which the parties agreed on the following main terms:

•

The total loan amount outstanding was split into two tranches:

o

Facility A loan of US$ 61,144,842, made up of MSN 35320 loan of US$

31,099,453 and MSN

36110 loan of US$ 30,045,389. The Facility A loan amortizes to a combined balloon of US$

33,947,878 and represents the scheduled debt.

o

Facility B loan of US$ 35,504,024 (non-amortizing), made up of MSN 35320 loan of US$

17,366,650 and MSN 36110 loan of US$ 18,137,374. The Facility B loan will be settled as a

balloon payment at the end of the loan term in 2026.

•

USD 2.36m of surplus cash generated under the PBH period was used to immediately repay debt on

the amortizing Facility A loan in February 2023, while an agreed cash reserve of US$ 500,000 per

aircraft will be retained to cover unforeseen costs going forward.

•

the interest rate swap in place for the scheduled debt was dissolved at no net gain or loss.

•

the MSN 35320 and MSN 36110 Facility A loans bear fixed interest rates of 6.61% and 6.89%

respectively.

•

the MSN 35320 and MSN 36110 Facility B loans bear fixed interest rates of 5.26% and 5.42%

respectively.

•

From the monthly fixed lease rental of US$ 510,000 per aircraft (which denotes the maximum

amount the Company can earn in operations per month), US$ 475,000 is legally restricted so that

those funds are only payable to the lenders, while the remaining US$ 35,000 per aircraft can be

retained by the company to contribute towards ongoing fixed costs of the Company.

The MSN 35320 loan and the MSN 36110 loan have a final maturity date of 9 December 2026 and 29 October

2026 respectively.

Due to the limited liquidity position of the Group, restructuring fees associated with the second amendment

and restatement will be paid after the eventual remarketing of the aircraft, subject to surplus sales proceeds

being realised.While there are covenants attached to the loans, there has been no issues of non-compliance

within the period.

15)

SHARE CAPITAL

Company’s authorised share capital is unlimited.

Year ended 31 December 2023

Subordinated

Administrative

Ordinary

Share

Shares

Total

Issued and fully paid (no par value shares):

Number

Number

Number

Shares as at 1 January 2023

1

239,333,333

239,333,334

Shares as at 31 December 2023

1

239,333,333

239,333,334

US$

US$

US$

Share capital as at 1 January 2023

-

211,279,828

211,279,828

Share capital as at 31 December 2023

-

211,279,828

211,279,828

Year ended 31 December 2022

Subordinated

Administrative

Ordinary

Share

Shares

Total

Issued and fully paid (no par value shares):

Number

Number

Number

Shares as at 1 January 2022

1

209,333,333

209,333,334

Share issued during the year

-

30,000,000

30,000,000

Shares as at 31 December 2022

1

239,333,333

239,333,334

US$

US$

US$

Share capital as at 1 January 2022

-

210,556,652

210,556,652

Proceeds from issue of shares

750,000

750,000

Issue cost paid

-

(26,824)

(26,824)

Share capital as at 31 December 2022

-

211,279,828

211,279,828

Subject to the applicable company law and the Company’s Articles of Incorporation, the Company may

issue an unlimited number of shares of par value and/or no par value or a combination of both.

The Subordinated Administrative Share is held by DS Aviation GmbH & Co. KG, (the Asset Manager).

Holders of Subordinated Administrative Shares are not entitled to participate in any dividends and other

distributions of the Company. On a winding up of the Company the holders of the Subordinated

Administrative Shares are entitled to an amount out of the surplus assets available for distribution equal to

the amount paid up, or credited as paid up, on such shares after payment of an amount equal to the amount

paid up, or credited as paid up, on the Ordinary Shares to the Shareholders. Holders of Subordinated

Administrative Shares shall not have the right to receive notice of and have no right to attend, speak and

vote at general meetings of the Company except if there are no Ordinary Shares in existence.

15)

SHARE CAPITAL (CONTINUED)

The Directors are entitled to issue and allot C Shares. No C Shares have been issued since the Company was

incorporated.

On 13 July 2022 the Company raised gross proceeds of $750,000 through the issue of 30,000,000 new

ordinary shares in the capital of the Company at a price of US$0.025 per new ordinary share.

16)

ACCUMULATED LOSSES

The movements in the Group’s accumulated losses are shown on page 52.

Accumulated losses comprise accumulated profits and losses over time.

17) DIVIDENDS

The dividends declared and paid during the year ended 31 December 2023 are US$ nil (2022: US$ nil).

On 3 April 2020, the Company announced a suspension of dividends until further notice due to the impact

of Covid-19 in global aviation and especially with long haul operations. The suspension is continuing and as

noted in Summary report on pages 4 to 6, there is no realistic prospect of the Company's shareholders

receiving a dividend or other distribution.

18)

INVESTMENT IN SUBSIDIARY UNDERTAKINGS

The Company’s investments in subsidiaries, all of which have been included in these consolidated financial

statements, are as follows:

Proportion of

Date of

Country of

ownership interest

Name

Incorporation

Incorporation

at 31 December 2023

DP Aircraft Guernsey III Limited

21 May 2015

Guernsey

100%

DP Aircraft Guernsey IV Limited

21 May 2015

Guernsey

100%

DP Aircraft UK Limited

14 April 2015

United Kingdom

100%

19)

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The following table details the categories of financial instruments held by the Group at the reporting date:

2023

2022

US$

US$

Cash and cash equivalents

914,505

1,479,541

Restricted cash

16,829,564

19,154,477

Trade and other receivables (excluding prepayments and

straight-lining lease asset)

-

671,586

Financial assets measured at amortised cost

17,744,069

21,305,604

Financial liabilities

Bank borrowings

92,712,223

98,486,356

Maintenance provision

14,829,296

14,829,296

Trade and other payables (excluding tax)

1,092,066

841,293

Financial liabilities measured at amortised cost

108,633,585

114,156,945

The primary risks arising from the Group’s financial instruments are capital management, credit risk, market

risk and liquidity risk. The principal nature of such risks is summarised below. The Group’s main financial

instruments as at year end comprised of cash and cash equivalents, restricted cash, maintenance reserves

payable and bank loans.

Capital Management

The capital managed by the Group comprises the ordinary shares and the subordinated administrative

shares. The Company is not subject to externally imposed capital requirements.

Until COVID-19 and the impact on the aircraft industry and the lessees, income distributions were generally

made quarterly, subject to compliance with Applicable Law and regulations, in February, May, August and

November of each year. The Company aimed to make a distribution to investors of US$ 0.0225 per share

per quarter. As a result of the COVID-19 pandemic impact on global aviation and especially its lessees, the

Group has suspended dividends until further notice to help preserve liquidity.

Credit risk

Credit risk is the risk that a significant counterparty will default on its contractual obligations. The Group’s

main counterparty during the year was Thai Airways as lessee and provider of income. The Group, through

the Asset Manager, mitigates credit risk related to Thai Airways through regular monitoring of Thai’s use of

the aircraft, review of Thai’s financial position, performance, and prospects and through a general review

of the performance of the airline market.

The Group assesses the probability of Thai defaulting under different scenarios and the losses that would

be incurred under those different scenarios. The probability of each default scenario occurring and the

related loss that would be incurred under that scenario is determined taking into account Thai’s historic

financial position, performance and future prospects. The general performance of the Thai economy and

the overall airline industry is also considered in the assessment.

19)

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED)

Credit risk (continued)

There are gross lease rentals receivable from Thai at 31 December 2023, US$ nil (2022: US$ 671,586). A full

lifetime ECL was recognised for the lease rentals receivable from Thai in the prior year however no ECL has

been recognised for the balance due as at year end (see note 11). Furthermore, the Group has also

recognised a gross straight lining lease asset as at 31 December 2023 of US$ 10,038,709 (2022: US$

13,525,502). A provision is recognised against this straight lining lease asset as at 31 December 2023 of US$

1,103,254 (2022: US$ 1,486,453). Refer to note 11 for further details.

Whilst the Board expect that the approved Thai rehabilitation plan will succeed, the final outcome of these

proceedings is unknown, refer to the Asset Manager Report on pages 11 to 23 for more details regarding

the rehabilitation process. Failure of any material part of the rehabilitation plan may have an adverse impact

on its ability to comply with its obligations under the lease (see note 4 for details re obligations of lessee).

Cash and restricted cash are all held at DekaBank. The credit rating of DekaBank by Moody’ is Aa2 (2022:

Aa2).

The lessees do not maintain a credit rating.

The carrying amount of financial assets measured at amortised cost recorded in the financial statements

represents the Group’s maximum exposure to credit risk. The Group holds no collateral as security or any

other credit enhancements.

Market risk – interest rate risk

Interest rate risk arises on the Group’s various interest-bearing assets and liabilities from changes in the

general economic conditions of the market from time to time. The bank borrowings have the most

significant interest impact on the Group. As detailed in note 14, the Group’s bank borrowings were amended

and restated. As part of the amendment and restatement, interest rates were set at fixed rates. Therefore,

the Group’s interest rate exposure is currently limited only to the restricted cash and bank balances which

earn an immaterial amount of interest. As a result, the Group has no material exposure to interest rate risk

subsequent to year end.

A 0.25% increase or decrease in interest rates on all interest-bearing financial instruments would result in

an increase or decrease in net finance costs for the year of US$ 186,960 (2022: US$ 194,177).

19)

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED)

The following table details the Group’s exposure to interest rate risk as at year end:

Non-interest

Fixed rate

Variable rate

bearing

31 December 2023

instruments

instruments

instruments

Total

US$

US$

US$

US$

Restricted cash

-

16,829,564

-

16,829,564

Trade and other receivables

(excluding prepayments and

straight-lining lease asset)

-

-

-

-

Cash and cash equivalents

-

914,505

-

914,505

Total financial assets

-

17,744,069

-

17,744,069

Trade and other payables

-

-

(1,092,066)

(1,092,066)

Maintenance reserves

-

-

(14,829,296)

(14,829,296)

Bank borrowings*

(92,528,231)

-

(183,992)

(92,712,222)

Total financial liabilities

(92,528,231)

-

(16,105,354)

(108,633,585)

Total interest rate sensitivity gap

(92,528,231)

17,744,069

*Interest is charged on the deferred portion of the loan based on a variable rate and a fixed rate for the loan

portion not deferred.

Non-interest

Fixed rate

Variable rate

bearing

31 December 2022

instruments

instruments

instruments

Total

US$

US$

US$

US$

Restricted cash

-

19,154,477

-

19,154,477

Trade and other receivables

(excluding prepayments and

straight-lining lease asset)

-

-

671,586

671,586

Cash and cash equivalents

-

1,479,541

-

1,479,541

Total financial assets

-

20,634,018

671,586

21,305,604

Trade and other payables

-

-

(820,044)

(820,044)

Maintenance reserves

-

-

(14,829,296)

(14,829,296)

Bank borrowings

(62,800,839)

(35,504,024)

(181,493)

(98,486,356)

Total financial liabilities

(62,800,839)

(35,504,024)

(15,830,833)

(114,135,696)

Total interest rate sensitivity gap

(62,800,839)

(14,870,006)

Market risk – foreign currency risk

The Group’s exposure to foreign currency risk is not significant as its cash flows are predominantly in US$

which is the functional currency of the company and subsidiaries, and presentation currency of the Group.

19)

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED)

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting its obligations in respect of its

financial liabilities. The Group’s main financial commitments are the loans due to DekaBank as well as

meeting its ongoing operating expenses.

Liquidity risk management

In the event that the Leases are terminated as a result of a default by Thai Airways, there is a risk that the

Group will not be able to remarket the Thai Assets successfully within the remarketing period specified in

the loan agreements and that the Group will not have sufficient liquidity to comply with its obligations under

the Loan Agreements. This may lead to a continued suspension in distributions paid on the shares and/or a

reduction in the value of the shares and have an adverse effect on the Group and could ultimately result in

the Dekabank enforcing their security and selling the relevant Asset or Assets on the market. There can be

no guarantee that the Group will be able to re-lease the Assets on terms equivalent to the existing leases,

which may have an adverse effect on the Group and its ability to meet its investment objective and its

dividend target. Accordingly, were any or all of the Assets to be re-leased on less favourable terms, this may

have an adverse effect on the Group and its share price. The Group monitors the impact of its obligations,

including the Dekabank loan, on liquidity through cash flow forecasts which are prepared on a monthly

basis.

As detailed in note 14, the Group has successfully renegotiated an amendment to the Dekabank loans and

new terms were agreed. The new terms agreed change the liquidity profile of the Group compared the

analysis shown below. Under the new terms, total loan repayments will be US$ 950,000 per month (US$

475,000 for each of the two loans), see note 14 for further details.

The following table details the contractual maturity analysis of the Group’s financial liabilities as at 31

December 2023. The amounts are contractual undiscounted cash flows and therefore will not agree directly

to the balances in the consolidated statement of financial position as at 31 December 2023.

31 December 2023

Next 12

months

2-5 years

After 5 years

Total

US$

US$

US$

US$

Bank borrowings and interest

(11,400,000)

(91,301,902)

-

(102,701,902)

Maintenance provision

-

(14,829,296)

-

(14,829,296)

Trade and other payables

(1,092,066)

-

-

(1,092,066)

Total

(12,492,066)

(106,131,198)

-

(118,623,264)

31 December 2022

Next 12

months

2-5 years

After 5 years

Total

US$

US$

US$

US$

Bank borrowings and interest

(20,172,088)

(92,309,392)

-

(112,481,480)

Maintenance provision

-

(14,829,296)

-

(14,829,296)

Trade and other payables

(841,293)

-

-

(841,293)

Total

(21,013,381)

(107,138,688)

-

(128,152,069)

In addition to the bank loans, the Group may from time-to-time use borrowings. To this end the Group may

arrange an overdraft facility for efficient cash management. The Directors intend to restrict borrowings

other than the bank loans to an amount not exceeding 15 percent of the net asset value of the Group at the

time of drawdown.

19)

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED)

Liquidity risk (continued)

Liquidity risk management

Borrowing facilities will only be drawn down with the approval of the Directors on a case-by- case basis. The

Directors may also draw down on an overdraft facility for extraordinary expenses determined by them, on

the advice of DS Aviation, to be necessary to safeguard the overall investment objective. With the exception

of the loans, the Directors have no intention, as at the date of this report, to use such borrowings or

overdraft facility for structural investment purposes.

No right of redemption or repurchase

Shareholders have no right to have their shares redeemed or repurchased by the Company at any time.

Shareholders wishing to realise their investment in the Company would be required to dispose of their

shares on the stock market. Accordingly, the ability of shareholders to realise the Net Asset Value of, or any

value in respect of, their shares is mainly dependent on the existence of a liquid market in the shares and

the market price of such shares.

Liquidity Proposal

Although the Company does not have a fixed life, the Articles require that the Directors convene a Liquidity

Proposal Meeting to be held no later than 30 June 2026 at which a Liquidity Proposal in the form of an

ordinary resolution will be put forward proposing that the Company should proceed to an orderly wind-up

at the end of the term of the leases. In the event the Liquidity Proposal is not passed, the Directors will

consider alternatives for the Company and shall propose such alternatives at a general meeting of the

shareholders, including re-leasing the Assets, or selling the Assets and reinvesting the capital received from

the sale of the Assets in other aircraft.

20)

FAIR VALUE MEASUREMENT

The accounting policies and basis of measurement in respect of financial instruments are detailed in note 2.

Financial assets and financial liabilities at amortised cost

The fair value of cash and cash equivalents, trade and other receivables (excluding prepayment and straight

lining lease asset), restricted cash and interest payable approximate their carrying amounts due to the short-

term maturities of these instruments.

21)

RELATED PARTY TRANSACTIONS

The Directors who served during the year received the following remuneration:

2023

US$

2022

US$

Jonathan Bridel (Chairman)

78,608

80,701

Jeremy Thompson (Chairman of the Audit Committee and

Senior Independent Director)

62,950

60,064

Harald Brauns (Chairman of the Management Engagement

Committee)

62,950

65,503

Total

204,508

206,268

21)

RELATED PARTY TRANSACTIONS (CONTINUED)

Up to 30 September 2022, 10% of base fees and all extra fees were not paid by way of cash payments but

were deferred to be settled in the future or to be paid by way of equity. There has been no settlement of

director remuneration via the issue of equity in the current year (2022:

US$

nil) and the deferred fees

remain outstanding as at 31 December 2023 (see note 13).

During the year, the total fees and expenses for Directors amounted to £196,520 (2022: 212,593). Due

to the deferral of fees, the outstanding Directors’ fees payable at year end was 225,105 (2022:212,360).

Base annual fees are as follows:

Annual Fees

Jan 23 to Dec

23

Oct 22

to Dec 22

Jan 22 to

Sept 22

Jonathan Bridel

£61,750

£61,750

£66,000

Jeremy Thompson

£49,450

£49,450

£53,700

Harald Brauns

£49,450

£49,450

£53,800

*Note: Directors fees were agreed in GBP, the financial statements are presented in USD

Director fees have been reduced by 10% which was the portion being deferred and possibly payable in

shares. The reduction in fees are effective 1 October 2022.

The Directors interests in the shares of the Company as at 31 December 2023 are set out below:

Number of

ordinary shares

31 December 2023

Number of

ordinary shares

31 December 2022

Connected parties of Jon Bridel

90,000

90,000

Jeremy Thompson

15,000

15,000

Harald Brauns

-

-

There has been no distribution of dividends to the directors during the year ended 31 December 2023

(2022:US$ nil)

Disposal fee

The initial amendment provides a calculation methodology for the disposal fee which will only become

payable when all four of the Assets (first two currently under receivership and second two currently held by

the Group) have been sold after the expiry of the second Thai Airways lease in December 2026. The fee will

be calculated as a percentage of the aggregate net sale proceeds of the four assets, such percentage rate

depending upon the Initial Investor Total Asset Return per share being the total amount distributed to an

initial investor by way of dividend, capital return or otherwise over the life of the Company. If each of the

Assets is sold subsequent to the expiry of their respective leases, the percentage rate shall be:

•

Nil if the Initial Investor Total Asset Return per Share is less than 205%;

•

1.5% if the Initial Total Asset Return per Share equals or exceeds 205% but is less than 255%;

•

2% if the Initial Total Asset Return per Share equals or exceeds 255% but is less than 305%; or

•

3% if the Initial Total Asset Return per Share equals or exceeds 305%.

Management fees

In the event that any of the Assets are sold prior to the expiry of its lease the percentage hurdles set out

above will be adjusted on the following basis:

•

An amount will be deducted in respect of each Asset sold prior to the expiry of its lease, equal to the net

present value of the aggregate amount of dividends per Share that were targeted to be paid but were

not paid as a result of the early divestment of the relevant Asset; and

•

A further amount will be deducted, in respect of each Asset sold prior to the expiry of its lease, equal to

the amount by which the proportion of the non-dividend component of the relevant percentage hurdle

attributable to the relevant Asset would need to be reduced in order to meet its net present value.

Per the second amendment, payment of any Disposal Fee per above (if any) in connection with the sale of

any of the Assets that were under receivership is subordinated to the DekaBank loans and will only become

payable after the loans (including the deferred element) have been repaid or prepaid in full.

The disposal fee is a cash-settled payment to the Asset Manager. There is no disposal fee expected to be

payable as at 31 December 2023 (2022: US$ nil).

The Asset Manager is paid a monthly base fee of US$ 15,085 (US$ 16,666 up to 31 December 2020) per asset

in respect of the two Assets that are currently held by the Group, increasing by 2.5 per cent per annum from

May 2021.

Management fees (Continued)

As consideration for the Asset Manager agreeing to a reduction of the monthly base fee in respect of the

two Assets that are currently held by the Group, the Company agreed that, when permissible as advised by

the corporate broker, the Asset Manager shall receive an allocation of shares in the Company determined

to be of a value equivalent to the reduction in the monthly base fee with respect to the two Assets. The

share allocation will be carried out using a share price for the conversion which is fair and reasonable as

advised by corporate broker.

In the year ended 31 December 2023 Asset Management fees totalled US$ 450,890 (2022: US$ 471,590) of

which US$ 283,011 was due as at 31 December 2023 (2022: US$ 218,033). As discussed in note 13, the

amount due are not payable within twelve months unless there is an asset sale.

Administration Agreement

The Administrator of the Company is Aztec Financial Services (Guernsey) Limited. Aztec Financial Services

(Guernsey) Limited and Aztec Financial Services (UK) Limited provide administration services to the

Company’s underlying subsidiaries. These administrator companies are collectively known as the

“Administrators”.

Total fees charged by the Administrators during the year were US$ 249,295 (2022:US$ 305,896) of which

US$ 29,998 remained payable at 31 December 2023 (2022: US$ 57,711).

The Administrators have the right to be reimbursed from the Company for any reasonable out of pocket

expenses incurred in carrying out their responsibilities.

Directors’ fees

Details of the fees paid to the Directors are included in note 21.

23)

SUBSEQUENT EVENTS

There are no relevant subsequent events to disclose in these annual financial statements.

East Wing

Trafalgar Court

Les Banques

St Peter Port

Guernsey

GY1 3PP, Channel Islands