ASBISC ENTERPRISES PLC
REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ASBISC ENTERPRISES PLC
REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CONTENTS
PAGE
Officers and professional advisers
1
Declaration by the members of the Board of Directors and the Company officials responsible
for the drafting of the consolidated and separate financial statements
2
Management report
3 – 5
Independent Auditors’ report
6 – 13
Consolidated income statement
14
Consolidated statement of comprehensive income
14
Consolidated statement of financial position
15
Consolidated statement of changes in equity
16
Consolidated statement of cash flows
17
Parent Company statement of comprehensive income
18
Parent Company statement of financial position
19
Parent Company statement of changes in equity
20
Parent Company statement of cash flows
21
Notes to the financial statements
22 – 80
ASBISC ENTERPRISES PLC
1
OFFICERS AND PROFESSIONAL ADVISERS
Board of Directors
Siarhei Kostevitch (Cypriot)
Chairman and Chief Executive Officer
Marios Christou (Cypriot)
Chief Financial Officer
Constantinos Tziamalis (Cypriot)
Deputy Chief Executive Officer
Julia Prihodko (Ukrainian)
Chief Human Relations Officer
Hanna Kaplan (Cypriot)
Financial Manager (appointed on 23 June 2023)
Tasos A.Panteli (Cypriot)
Non-Executive Director
Maria Petridou (Cypriot)
Non-Executive Director
Constantinos Petrides (Cypriot)
Non-Executive Director (appointed on 23 June 2023)
Secretary
Alfo Secretarial Limited
Limassol, Cyprus
Registered office
Independent auditors
KPMG Limited
Limassol, Cyprus
Legal adviser
Costas Tsirides & Co. Law Office
Limassol, Cyprus
Bankers
Tatrabanka a.s.
Všeobecná Uverová Banka a.s.
Raiffeisen Bank International AG
Bank of Cyprus Public Company Ltd
Global Supply Chain Finance Ltd
Barclays Bank Plc
Alpha Bank Group
Tascombank JSC
JSC Halyk Bank
JSC Bank Centercredit
Ceskoslovenska Obchodni Banka, A.S
Société Générale Group
National Bank of Fujairah
Emirates Islamic Bank PJSC
First Ukrainian International bank
Joint-stock Company OTP Bank
OP Corporate Bank Plc
Unicredit Group
Abu Dhabi Commercial Bank (ADCB)
Bank Pekao S.A
Credit Agricole Group
Erste Group
TBC Bank
ASBISC ENTERPRISES PLC
3
MANAGEMENT
REPORT
FOR
THE YEAR ENDED 31 DECEMBER 20
2
3
The Directors present their annual report on the affairs of Asbisc Enterprises Plc (the “Company” or the “parent
Company”) and its subsidiaries (together with the Company, the “Group”) together with the Group’s and the
Company’s audited financial statements for the year ended 31 December 2023.
Principal activity
The principal activity of the Group and the Company continues to be the worldwide trading and distribution of
computer hardware and software.
Group financial statements
The consolidated financial statements include the financial statements of the Company and those of its subsidiary
companies. The names and more details about the subsidiaries are shown in note 11 to the financial statements.
Review of the development, financial performance and current position of the Group and the Company
and the description of its major risks and uncertainties
The Group’s and the Company’s development to date, financial results and position are presented in the financial
statements on pages 14 to 80.
The key performance and financial position figures are as follows:
(in thousands of US$)
The most important event that affected the Group’s results in the year, was the disposal of ASBIS subsidiary in
Russia and the complete closure of the Company's operations in this country.
The exit from Russia negatively impacted the Group’s net profit for 2023; however, the Group and the Company
strongly underline that there is no more risk relating to the exit from Russia and consider the Russian topic as closed.
The write-offs in relation to the exit from Russia do not impact in any respect the ongoing operations of the Group,
which continues to grow dynamically in other geographical directions and incorporates innovative solutions into its
portfolio, such as robotics and trade-in business.
The Group and the Company face the following major risks and uncertainties:
competitive pressures in the marketplace it operates that may significantly affect gross and net margins
technological changes and other market trends
financial and other risks as described in notes 35 and 36.
The Group has systems and procedures in place to maintain its expertise and keep it aware of changes in its
marketplace to help mitigate market risks. It also has rigorous controls to help mitigate financial and other risks.
These are described in notes 35 and 36 to the financial statements.
The Group
The Company
20
2
3
202
2
20
2
3
202
2
US$
US$
US$
US$
Revenue 3,061,228
2,690,039
1,963,668
1,787,965
Gross profit
252,269
227,831
71,782
70,956
Profit before tax
64,969
91,046
47,507
39,231
Taxation
(1
2,013
)
(15,176)
(
4,840
)
(
5,003
)
Profit for the year
52,956
75,870
42,667
34,228
Earnings per share (US$ cents)
95
.
87
137.10
N/A
N/A
Total equity
281,21
2
244,180
171,002
152,236
Average number of employees
during the year
2,
673
2,
222
301
220
Significant events after the end of the financial year
There are no significant events after the reporting date that require disclosure in or adjustment to the financial
statements.
Existence of branches
The Company also operates through a warehouse in the Czech Republic.
Expected future developments of the Group and the Company
The Directors do not expect any significant changes in the activities of the Group and the Company for the foreseeable
future.
ASBISC ENTERPRISES PLC
4
MANAGEMENT REPORT (continued)
Employees
During 2023 we have employed an average number of 2,673 employees, of whom 301 were employed by the Company
and the remainder in the rest of the Group’ s offices worldwide. The split of employees by area of activity is as follows:
As at 31 December
2023
2022
Sales and Marketing
1,484
1,213
Administration and IT
419
338
Finance
213
200
Logistics
557
471
Total
2,673
2,222
Research and Development
In 2023, the Group spent US$ 853,321 (2022: US$ 1,556,801) on Research and Development, focusing on development
of tablets, small home appliances and other product lines that are sold under the Prestigio, Canyon and Perenio own
brands in all regions of the Company’s operations. The Group will continue to have research and development
expenditures to support the design and development of own brand products to maintain and enhance its competitive
position.
Dividends
Our dividend policy is to pay dividends at levels consistent with our growth and development plans, while maintaining
a reasonable level of liquidity. During the year, the following dividends were declared and paid by the Company:
• A final dividend of US$ 0.25 per share for the year 2022, amounting to US$ 13,875,000
• An interim dividend of US$ 0.20 per share for the year 2023, amounting to US$ 11,100,000
The Board of Directors also proposes the payment of a final dividend of US$ 0.30 per share for the year 2023,
amounting to US$ 16,665,000.
Share Capital
On 31 December 2023 the issued and fully paid-up share capital of the Company consisted of 55,500,000 ordinary
shares of US$ 0.20 each. There were no changes in the share capital of the Company during the year and up to the
date of these financial statements.
Board of Directors
The members of the Board of Directors at 31 December 2023 and at the date of this report are set out on page 1.
They were all members of the Board of Directors throughout the year except Hanna Kaplan and Constantinos Petrides
who were appointed on 23
rd
of June 2023 as an Executive Director and as a Non-Executive Director of the Company
respectively. There were no significant changes in the assignment of the responsibilities of the members of the Board
of Directors. The remuneration of the members of the Board of Directors is disclosed in notes 5 and 31 to the financial
statements.
In accordance with the Company's Articles of Association, Mrs. Hanna Kaplan, Mrs. Maria Petridou, Mr. Constantinos
Petrides and Mr. Tasos Panteli who are subject to retirement by rotation, will retire at the next annual general meeting
of the Company and being eligible, will offer themselves for re-election.
Corporate Governance
The Directors of the Company recognize the importance of corporate governance policies, practices and procedures.
Being listed on the Warsaw Stock Exchange in Poland, the Company follows the provisions of Corporate Governance
of the Warsaw Stock Exchange Code of Best Practices, to the extent practicable and appropriate for a public company
of the size of the Company. Those rules, information on their application and any deviation can be found on the
Company’s internet site for investors at http://investor.asbis.com and http://inwestor.asbis.pl.
The Board of the Company has two committees:
• the Audit Committee and
• the Remuneration Committee
The Remuneration Committee consists of the three non-executive Directors together with the Chairman. The Audit
Committee consists of the three non-executive Directors. More information on the composition and functions of the
committees is given in the corporate governance statement.
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF
ASBISC ENTERPRISES PLC
Report on the audit of the consolidated and separate financial statements
Opinion
We have audited the accompanying consolidated and separate financial
statements of Asbisc Enterprises PLC (the ''Company'') and its subsidiaries (the
''Group''), which are presented on pages x to x and comprise the consolidated and
the separate statement of financial position as at 31 December 2023, and the
consolidated and the separate statements of profit or loss and other
comprehensive income, changes in equity and cash flows for the year then ended,
and notes to the consolidated and the separate financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements and the
separate financial statements give a true and fair view of the financial position of
the Group and the Company as at 31 December 2023, and of their financial
performance and their consolidated cash flows for the year then ended in
accordance with International Financial Reporting Standards as adopted by the
European Union (''IFRS-EU'') and the requirements of the Cyprus Companies Law,
Cap. 113, as amended from time to time (the ''Companies Law, Cap.113'').
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(''ISAs''). 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 remained independent of the Group and the Company
throughout the period of our appointment in accordance with the International Code
of Ethics (Including International Independence Standards) for Professional
Accountants of the International Ethics Standards Board for Accountants (''IESBA
Code'') together with the ethical requirements in Cyprus that are relevant to our
audit of the financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA Code. We
believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
…..
Key audit matters incorporating the most significant risks of material misstatements,
including assessed risk of material misstatements due to fraud
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the consolidated and the separate financial statements of the
current period. These matters were addressed in the context of our audit of the consolidated
and the separate financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Key audit matter 1 – Investments in subsidiaries: impairment assessment
Refer to notes 2 and 11 of the separate financial statements
Key audit matter
How the matter was addressed in our audit
Significant judgement is required by
the management of the Company in
determining whether there are any
indications for impairment and, where
such indications exist, in assessing the
recoverable amount of the
investments.
We focused on this area because of
the significance of the carrying amount
of the investments in the separate
financial statements and because
inherent uncertainty and subjectivity is
involved the assessment of the
recoverable amount.
Our audit procedures included among other:
- understanding and evaluating the process
applied by the Company in the determination of
the impairment indicators;
- assessing the compliance and the consistency
of the accounting methods applied with the IFRS-
EU;
- testing of the principles and integrity of the
Company’s valuation model, including evaluating
the assumptions used by the Company and
comparing the Company’s assumptions to our
own assessments in relation to key inputs;
- Recalculation of weighted average cost of
capital, used in the valuation model;
- reviewing disclosures to the financial
statements to ensure compliance with
requirements of relevant IFRS-EU.
Key audit matter 2 – valuation of inventory
Refer to notes 2 and 15 of the financial statements
Key audit matter
How the matter was addressed in our audit
There is an increased need to hold
inventory to serve as a buffer in
anticipation of customer needs. Given
that the IT industry is characterized by
rapid changes in technology and short
product shelf lives, inventory may
rapidly become obsolete. Significant
judgment is required in determining the
appropriate carrying amount of
inventories.
Our audit procedures included among other:
- understanding and evaluating the process
applied by the Company and the Group in the
determination of the impairment provision;
- assessing the compliance and the consistency
of the accounting methods applied with the IFRS-
EU;
- testing the accuracy of the inventory ageing
report and assessing the ageing of inventory,
inventory levels; comparing year on year key
indicators, including stock turnover and gross
profit margins;
- verifying on a sampling basis that the inventory
held as at year end was recorded on the lower of
cost and net realizable value;
- Participating the year end count and performing
independent count test;
- reviewing disclosures to the financial
statements to ensure compliance with
requirements of relevant IFRS-EU.
…….
Key audit matters incorporating the most significant risks of material misstatements,
including assessed risk of material misstatements due to fraud (continued)
Key audit matter 3 – valuation of trade receivables
Refer to notes 2 and 16 of the financial statements
Key audit matter
How the matter was addressed in our audit
The Company and the Group have
significant trade receivables as at the
year end. Despite the fact that a large
portion of these is credit insured, credit
insurance companies are becoming
more risk averse in granting credit limits
to customers. Given the size of trade
receivables and the risk that some of
them may not be recoverable,
significant judgment is required to
estimate the level of the allowance
required to reflect the risk.
In addition, application of requirements
of IFRS 9 “Financial Instruments” could
increase the risk of misstatement as it
is a complex accounting standard
which requires considerable judgments
to be made. Specifically, a model has
been developed by management to
calculate expected credit losses by
applying judgement in a number of
significant areas.
Our audit procedures included among other:
- understanding and evaluating the process
applied by the Company and the Group in the
determination of the impairment provision;
- assessing the compliance and the consistency
of the accounting methods applied with the IFRS-
EU;
- discussing with the responsible credit officers
and the responsible Company’s director the
recoverability and the procedures followed for
the collection of significant overdue balances;
- assessing on sample basis the recoverability of
overdue amounts by reference to subsequent
receipts from customers or, where there were no
subsequent receipts, to sales and payment track
records, we inspected relevant correspondence
with customers and legal advisors, as applicable,
and inspected insurance documents for the
insured customers;
- evaluating the reasonableness of
management’s key judgements made in applying
IFRS 9 on the calculation of expected credit
losses, including the selection of method, model,
assumptions and data sources;
- independent recalculation of expected credit
loss provision with the involvement of finance-
risk-management specialists and comparison
the managements calculation of expected credit
loss provision;
- reviewing disclosures to the financial
statements to ensure compliance with
requirements of relevant IFRS-EU.
…….
Key audit matters incorporating the most significant risks of material misstatements,
including assessed risk of material misstatements due to fraud (continued)
Key audit matter 4 – Revenue recognition
Refer to notes 2 and 3 of the financial statements
Key audit matter
How the matter was addressed in our audit
The vast majority of the Group’s and
the Company’s revenue is generated
from the sales of IT equipment and
services.
The Group and the Company generally
recognize revenue in accordance with
the terms and conditions of sale, which
vary and may affect the timing of
revenue recognition.
We have identified revenue recognition
as a key audit matter because of
revenue is one of the Group’s and the
Company’s performance indicators
giving rise to an inherent risk that
revenue could be subject to
overstatement to meet targets or
expectations.
Our audit procedures included among other:
- understanding and evaluating the process
applied by the Company and the Group which
govern the revenue recognition process;
- assessing the compliance and the consistency
of the accounting methods applied with the IFRS-
EU;
- evaluating key contractual arrangements with
customers;
- testing sample of sales transactions closer to
the year end to assess that the revenue is
recorded in the correct period;
- performing substantive analytical procedures
based on the historical data, comparing year on
year key indicators;
- reviewing disclosures to the financial
statements to ensure compliance with
requirements of relevant IFRS-EU.
Other information
The Board of Directors is responsible for the other information. The other information
comprises the Director’s report on the Group operations part I and part II (but does not include
the management representations); The remuneration and the consolidated management
report.
Our opinion on the consolidated and the separate financial statements does not cover the
other information and we do not express any form of assurance conclusion thereon, except
as required by the Companies Law, Cap.113.
In connection with our audit of the consolidated and the separate financial statements, our
responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the consolidated and the separate financial
statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
With regards to the Consolidated Management report, our report in this regard is presented
in the ''Report on other legal and regulatory requirements'' section.
Responsibilities of the Board of Directors and those charged with governance for the
consolidated and separate financial statements
The Board of Directors is responsible for the preparation of consolidated and separate
financial statements that give a true and fair view in accordance with IFRS-EU and the
requirements of the Companies Law, Cap. 113, and for such internal control as the Board of
Directors determines is necessary to enable the preparation of consolidated and separate
financial statements that are free from material misstatement, whether due to fraud or error.
…….
Responsibilities of the Board of Directors and those charged with governance for the
consolidated and separate financial statements (continued)
In preparing the consolidated and separate financial statements, the Board of Directors is
responsible for assessing the Group's and the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting, unless there is an intention to either liquidate the Company or
to cease the Group’s operations, or there is no realistic alternative but to do so.
The Board of Directors and those charged with governance are responsible for overseeing
the Group's financial reporting process.
Auditors' responsibilities for the audit of the consolidated and the parent financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated and the
separate 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 ISAs 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 and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated and
the separate financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Group's and Company’s
internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by the Board
of Directors.
• Conclude on the appropriateness of the Board of Directors' use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant
doubt on the Group's and Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our
auditors' report to the related disclosures in the consolidated and the separate
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors'
report. However, future events or conditions may cause the Group and the Parent to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated
and the separate financial statements, including the disclosures, and whether the
consolidated and separate financial statements represent the underlying transactions
and events in a manner that achieves a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information
of the entities or business activities of the Group to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision
and performance of the Group audit. We remain solely responsible for our audit
opinion.
…….
Auditors' responsibilities for the audit of the consolidated and separate financial statements
(continued)
We communicate with those charged with governance 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.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the consolidated and the separate
financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditors' report.
Report on other regulatory and legal requirements
Other regulatory requirements
Pursuant to the requirements of Article 10(2) of European Union (EU) Regulation 537/2014
we provide the following information in our Independent Auditors' Report, which is required
in addition to the requirements of ISAs.
Date of appointment and period of engagement
We were appointed auditors on [date] by the General Meeting of the Company's members to
audit the consolidated financial statements of the Group for the year ended 31 December
2022. Our total uninterrupted period of engagement, having been renewed annually is X
years covering the periods ending [end of first reporting period] to 31 December 2022.
Consistency of auditors' report to the additional report to the Audit Committee
We confirm that our audit opinion on the consolidated and separate financial statements
expressed in this report is consistent with the additional report presented to the Audit
Committee of the Company, which is dated 28 March 2024.
Provision of Non-audit Services ('NAS')
We have not provided any prohibited NAS referred to in Article 5 of EU Regulation 537/2014
as applied by Section 72 of the Auditors Law of 2017, L.53(I)2017, as amended from time to
time (''Law L53(I)/2017''). :In addition, there are no non-audit services which were provided
by us to the Group and the Company which have not been disclosed in the consolidated and
the separate financial statements.
Other legal requirements
Pursuant to the additional requirements of law L.53(Ι)/2017, and based on the work
undertaken in the course of our audit, we report the following:
• In our opinion, the consolidated management report, the preparation of which
is the responsibility of the Board of Directors, has been prepared in accordance with
the requirements of the Companies Law, Cap 113, and the information given is
consistent with the consolidated and the separate financial statements.
• In the light of the knowledge and understanding of the business and the
Group's and Company’s environment obtained in the course of the audit, we have not
identified material misstatements in the consolidated management report.
…….
Other legal requirements (continued)
• In our opinion, based on the work undertaken in the course of our audit, the
information included in the corporate governance statement in accordance with the
requirements of subparagraphs (iv) and (v) of paragraph 2(a) of Article 151 of the
Companies Law, Cap. 113, and which is also published in full on the Company’s
website, have been prepared in accordance with the requirements of the Companies
Law, Cap, 113, and is consistent with the consolidated and separate financial
statements.
• In light of the knowledge and understanding of the Group and Company and
its environment obtained in the course of the audit, we are required to report if we
have identified material misstatements in the corporate governance statement in
relation to the information disclosed for items (iv) and (v) of the subparagraph 2(a) of
Article 151 of the Companies Law, Cap. 113. We have not identified any material
misstatements in this respect.
• In our opinion, based on the work undertaken in the course of our audit, the
corporate governance statement includes all information referred to in
subparagraphs (i), (ii), (iii), (vi) and (vii) of paragraph 2(a) of Article 151 of the
Companies Law, Cap.113.
European Single Electronic Format
We have examined the digital files of the European Single Electronic Format (ESEF) of the
Group and the Company for the year ended 31 December 2022 comprising an XHTML file
which includes the consolidated and the separate financial statements for the year then
ended and XBRL files with the marking up carried out by the entity of the consolidated and
the separate statement of financial position as at 31 December 2022, and the consolidated
and the separate statements of profit or loss and other comprehensive income, changes in
equity and cash flows for the year then ended, and all disclosures made in the consolidated
and the separate financial statements or made by cross-reference therein to other parts of
the annual financial report for the year ended 31 December 2022 that correspond to the
elements of Annex II of the EU Delegated Regulation 2019/815 of 17 December 2018 of the
European Commission, as amended from time to time (the “ESEF Regulation”) (the “digital
files”).
The Board of Directors of the Company is responsible for preparing and submitting the
consolidated and the separate financial statements for the year ended 31 December 2022 in
accordance with the requirements set out in the ESEF Regulation.
Our responsibility is to examine the digital files prepared by the Board of Directors of the
Company. According to the Audit Guidelines issued by the Institute of Certified Public
Accountants of Cyprus (the “Audit Guidelines”), we are required to plan and perform our audit
procedures in order to examine whether the content of the consolidated and the separate
financial statements included in the digital files correspond to the consolidated and the
separate financial statements we have audited, and whether the format and marking up
included in the digital files have been prepared in all material respects, in accordance with
the requirements of the ESEF Regulation.
In our opinion, the digital files examined correspond to the consolidated and the separate
financial statements, and the consolidated and the separate financial statements included in
the digital files, are presented and marked-up, in all material respects, in accordance with the
requirements of the ESEF Regulation.
…….
13
Other Matter
This report, including the opinion, has been prepared for and only for the Company's members as a body
in accordance with Article 10(1) of the EU Regulation 537/2014 and Section 69 of Law L.53(Ι)/2017 and
for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other
purpose or to any other person to whose knowledge this report may come to.
The engagement partner on the audit resulting in this independent auditors' report is John C. Nicolaou.
John C. Nicolaou, CPA
Certified Public Accountant and Registered Auditor
for and on behalf of
KPMG Limited
Certified Public Accountants and Registered Auditors
11, June 16
th
1943 Street
3022 Limassol
Cyprus
Limassol, 28 March 2024
ASBISC ENTERPRISES PLC
The notes on pages 22 to 80 form an integral part of these consolidated financial statements.
14
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
2023
2022
Note
US$
US$
Revenue
3
Cost of sales
(2,808,959 )
(2,462,208 )
Gross profit
Selling expenses
(82,745 )
(69,217 )
Administrative expenses
(57,031 )
(47,620 )
Profit from operations
Financial income
6
Financial expenses
6
(34,930 )
(25,694 )
Realized foreign exchange loss relating to foreign operations
liquidated and disposed
(11,286 )
(282 )
Net finance costs
(43,497 )
(20,734 )
Other gains and losses
4
(3,790 )
Share of loss of equity-accounted investees
12
(237 )
(162 )
Profit before tax
5
Taxation
7
(12,013 )
(15,176 )
Profit for the year
Attributable to:
Equity holders of the parent
Non-controlling interests
(92 )
US$ cents
US$ cents
Earnings per share
Basic and diluted from continuing operations (expressed in US$) 33
Other comprehensive loss:
Exchange difference on the translation of foreign operations
(3,124 )
(4,039 )
Reclassification adjustments relating to foreign operations liquidated and
disposed of in the year
Other comprehensive profit/(loss) for the year
(3,757 )
Total comprehensive income for the year
Total comprehensive income attributable to:
Equity holders of the parent
Non-controlling interests
(105 )
(15 )
ASBISC ENTERPRISES PLC
The notes on pages 22 to 80 form an integral part of these consolidated financial statements.
15
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
(in thousands of US$)
2023
2022
Notes
US$
US$
ASSETS
Non-current assets
Property, plant and equipment
8
Intangible assets
9
Investment property
10
Equity-accounted investees
12
Goodwill
34
Financial assets at fair value through other comprehensive income
13
Financial assets at fair value through profit and loss
14
Deferred tax assets
24
Total non-current assets
Current assets
Inventories
16
Trade receivables
17
Other current assets
18
Derivative financial assets
29
Current taxation
7
Cash at bank and in hand
30
Total current assets
Total assets
EQUITY AND LIABILITIES
Equity
Share capital
19
Share premium
Retained earnings and other components of equity
Equity attributable to owners of the parent
Non-controlling interests
Total equity
Non-current liabilities
Long-term borrowings
21
Other long-term liabilities
22
Deferred tax liabilities
24
Total non-current liabilities
Current liabilities
Trade payables and prepayments
26
Trade payables factoring facilities
15
Other current liabilities
25
Short-term borrowings
20
Derivative financial liabilities
28
Current taxation
7
Total current liabilities
Total liabilities
Total equity and liabilities
Signed on behalf of the Board of Directors on the 27
th
of March, 2024
Marios Christou
Director
ASBISC ENTERPRISES PLC
The notes on pages 22 to 80 form an integral part of these consolidated financial statements.
16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
Attributable to the owners of the parent
Share
capital
Share
premium
Treasury
stock
Translation
of foreign
operations
Retained
earnings
Total
Non-
controlling
interests
Total
US$
US$
US$
US$
US$
US$
US$
US$
Balance at 1 January 2022
-
(12,431 )
Total comprehensive income
Profit for the year
-
-
-
-
Other comprehensive loss for the year
-
-
-
(3,739 )
-
(3,739 )
(18 )
(3,757 )
Transactions with owners of the Company
Changes in ownership interests
Increase of share capital of subsidiary with non-controlling interest
-
-
-
-
-
-
Contributions and distributions
Acquisition of treasury shares
-
-
(996 )
-
-
(996 )
-
(996 )
Final dividend declared (Note 37)
-
-
-
-
(16,571 )
(16,571 )
-
(16,571 )
Balance at 31 December 2022
(996 )
(16,170 )
Total comprehensive income
Profit/(loss) for the year
-
-
-
-
(92 )
Other comprehensive profit/(loss) for the year
-
-
-
-
(14 )
Transactions with owners of the Company
Changes in ownership interests
Acquisition of non-controlling interest without a change in control
-
-
-
-
(99 )
(99 )
(130 )
(229 )
Contributions and distributions
Treasury shares sold
-
-
-
-
Final dividend declared (Note 37)
-
-
-
-
(24,975 )
(24,975 )
(29 )
(25,004 )
Balance at 31 December 2023
-
(7,994 )
The retained earnings shown above at 31 December 2023 were readily distributable up to the amount of US$ 136,030 which represents the retained earnings of the Company. The
remaining amount in retained earnings of US$ 117,760 represents the earnings retained in the subsidiary companies of the Group. Share premium represents the difference between
the issue price of the shares of the Company and their nominal value. The share premium can only be resorted to for limited purposes, which do not include the distribution of
dividends, and is otherwise subject to the provisions of the Cyprus Companies Law, Cap. 113 on reduction of share capital. The translation reserve comprises all foreign currency
differences from the translation of the financial statements of foreign operations.
ASBISC ENTERPRISES PLC
The notes on pages 22 to 80 form an integral part of these consolidated financial statements.
17
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
2023
2022
Note
US$
US$
Profit for the year before tax
Adjustments for:
Exchange difference arising on consolidation
(2,765 )
Depreciation of property, plant and equipment
8
Amortization of intangible assets
9
Depreciation of investment property
10
Provision for slow moving and obsolete stock
16
Share of loss of equity-accounted investees
12
(Profit)/loss from disposal of property, plant and equipment and intangible assets
4
(2,934 )
Profit from disposal of investment property
4
(3,515 )
Loss/(profit) from disposal of subsidiaries
4
(1 )
Provision for bad debts and receivables written off
17
Impairment loss of non-trade receivable
4
Bad debts recovered
4
(2 )
(7 )
Interest received
6
(625 )
(999 )
Interest paid
Operating profit before working capital changes
Decrease/(increase) in inventories
(192,983 )
(Increase)/decrease in trade receivables
(36,263 )
Increase in other current assets
(6,788 )
(11,848 )
(Decrease)/increase in trade payables and prepayments
(47,821 )
Increase/(decrease) in trade payables factoring facilities
(10,274 )
(Decrease)/increase in other current liabilities
(39,807 )
Increase in other non-current liabilities
Decrease in factoring creditors
(9,493 )
(10,857 )
Cash inflows/(outflows) from operations
(28,761 )
Interest paid
6
(15,724 )
(10,886 )
Taxation paid, net
7
(10,795 )
(16,401 )
Net cash inflows/(outflows) from operating activities
(56,048 )
Cash flows from investing activities
Purchase of intangible assets
9
(1,299 )
(400 )
Purchase of property, plant and equipment
(16,384 )
(11,109 )
Acquisition of investment property
(7 )
Proceeds from disposal of property, plant and equipment and intangible assets
Net proceeds from disposal of subsidiaries
Net cash disposed of from disposal of subsidiaries
Net cash acquired from acquisition of subsidiaries
Increase of share capital of subsidiary with non-controlling interest
Payments for purchase of investments in subsidiaries
(377 )
Payments for purchase of investments in associates
(3,472 )
(1,568 )
Net payment from acquisition of financial assets at fair value through other
comprehensive income
(862 )
Net payment from acquisition of financial assets at fair value through profit and loss
(528 )
Acquisition of non-controlling interest without a change in control
(230 )
Proceeds from disposal of investment property
Interest received
6
Net cash outflows from investing activities
(11,710 )
(11,075 )
Cash flows from financing activities
Disposal/(acquisition) from treasury shares
(996 )
Payment of final dividend
(24,975 )
(16,571 )
Repayments of long-term loans and long-term obligations under finance lease
(2,271 )
(1,190 )
Acquisition of non-controlling interest
(130 )
Proceeds of short-term borrowings and short-term obligations under finance lease
Net cash (outflows)/inflows from financing activities
(17,747 )
Net increase/(decrease) in cash and cash equivalents
(58,568 )
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
30
ASBISC ENTERPRISES PLC
The notes on pages 22 to 80 form an integral part of these consolidated financial statements.
18
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
2023
2022
Note
US$
US$
Revenue
3
1,963,668
1,787,965
Cost of sales
(1,891,886)
(1,717,009)
Gross profit
71,782
70,956
Selling expenses
(19,935)
(11,956)
Administrative expenses
(31,359)
(22,579)
Profit from operations
20,488
36,421
Financial income
6
405
3,807
Financial expenses
6
(7,640)
(3,849)
Net finance costs
(7,235)
(42)
Other gains and losses
4
34,491
3,014
Share of loss of equity-accounted investees
12
(237)
(162)
Profit before tax
5
47,507
39,231
Taxation
7
(4,840)
(5,003)
Profit for the year
42,667
34,228
Other comprehensive income for the year
-
-
Total comprehensive income for the year
42,667
34,228
ASBISC ENTERPRISES PLC
The notes on pages 22 to 80 form an integral part of these consolidated financial statements.
20
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
Share capital
Share
premium
Treasury
stock
Retained
earnings
Total
US$
US$
US$
US$
US$
Balance at 1 January 2022
11,100
23,721
-
100,755
135,576
Total comprehensive income
Profit for the year
-
-
-
34,228
34,228
Transactions with owners of the
Company
Contributions and distributions
Final dividend declared (Note 37)
-
-
-
(16,571)
(16,571)
Acquisition of treasury shares
-
-
(996)
-
(996)
Balance at 31 December 2022
11,100
23,721
(996)
118,412
152,237
Total comprehensive income
Profit for the year
-
-
-
42,667
42,667
Transactions with owners of the
Company
Contributions and distributions
Final dividend declared (Note 37)
-
-
-
(25,049)
(25,049)
Acquisition of treasury shares
-
151
996
-
1,147
Balance at 31 December 2023
11,100
23,872
-
136,030
171,002
The retained earnings shown above at 31 December 2023 were readily distributable up to the amount of US$ 136,030
which represents the retained earnings of the Company. Share premium represents the difference between the issue
price of the shares and their nominal value. The share premium can only be resorted to for limited purposes, which do
not include the distribution of dividends, and is otherwise subject to the provisions of the Cyprus Companies Law, Cap.
113 on reduction of share capital.
Companies which do not distribute 70% of their profits after tax, as defined by the relevant Cyprus tax law, within two
years after the end of the relevant tax year, will be deemed to have distributed as dividends 70% of these profits.
Special contribution for defence at 17% is payable on such deemed dividends to the extent that the ultimate
shareholders (physical persons) are Cyprus domiciled tax residents. The amount of deemed distribution is reduced by
any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is
payable by the Company for the account of the shareholders.
Dividends paid to non-Cyprus tax resident shareholders are not subject to withholding tax in Cyprus. Dividends paid to
Cyprus tax resident domiciled physical persons are subject to withholding tax at the above rates.
ASBISC ENTERPRISES PLC
The notes on pages 22 to 80 form an integral part of these consolidated financial statements.
21
PARENT COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
2023
2022
Note
US$
US$
Profit for the year before tax
47,507
39,231
Adjustments for:
Depreciation of property, plant and equipment
8
2,060
991
Amortization of intangible assets
9
457
1,032
Depreciation of investment property
10
54
30
Impairment loss on investments in subsidiaries
4
931
-
(Profit)/loss from the sale of property, plant and equipment and intangible
assets
4
(19)
25
Provision for bad debts and receivables written off
3,101
1,003
Provision for slow moving and obsolete stock
16
1,911
2,273
Share of loss of equity-accounted investees
237
162
Profit from disposal of subsidiaries
4
(14,667)
-
Profit from disposal of investment property
4
(3,515)
-
Impairment loss of non-trade receivable
4
9,908
-
Dividend income
4
(7,575)
(591)
Interest received
6
(110)
(93)
Interest paid
1,340
243
Operating profit before working capital changes
41,620
44,306
Decrease/(increase) in inventories
15,717
(121,466)
Increase trade receivables
(6,335)
(5,732)
(Increase)/decrease in other current assets
(2,466)
16,689
(Decrease)/increase in trade payables and prepayments
(29,789)
34,855
Increase/(decrease) in trade payables factoring facilities
26,379
(10,468)
(Decrease)/increase in other current liabilities
(25,595)
39,885
Increase/(decrease) in factoring creditors
2,018
(2,100)
Cash inflows/(outflows) from operations
21,549
(4,031)
Interest paid
6
(1,002)
(177)
Taxation paid, net
7
(4,826)
(5,794)
Net cash inflows/(outflows) from operating activities
15,721
(10,002)
Cash flows from investing activities
Purchase of intangible assets
9
(692)
(410)
Purchase of property, plant and equipment
(3,139)
(5,985)
Proceeds/(write-offs) from sale of property, plant and equipment and
intangible assets
19
(28)
Acquisition of investment property
(7)
-
Interest received
110
93
Dividends received
4
7,575
591
Proceeds from disposal of investment property
4,295
-
Net payment from acquisition of financial assets at fair value through other
comprehensive income
(862)
-
Net payment from acquisition of financial assets at fair value through profit
and loss
(528)
-
Payments for purchase of investments in associates
(3,472)
(1,568)
Net increase in investment in subsidiary companies
(1,004)
(3,302)
Net cash inflows/(outflows) from investing activities
2,295
(10,609)
Cash flows from financing activities
Payment of final dividend
37
(25,049)
(16,571)
(Repayments)/proceeds of long-term loans and long-term obligations under
finance lease
(752)
275
Disposal/(acquisition) of treasury shares
1,148
(996)
Repayments of short-term borrowings and short-term obligations under
finance lease
(182)
(712)
Net cash outflows from financing activities
(24,835)
(18,004)
Net decrease in cash and cash equivalents
(6,819)
(38,615)
Cash and cash equivalents at the beginning of the year
59,211
97,826
Cash and cash equivalents at the end of the year
30
52,392
59,211
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
22
1. Incorporation and principal activities
limited liability. The Group’s and the Company’s principal activity is the trading and distribution of computer hardware
K.S. Holdings Limited, a Company incorporated in Cyprus . The details of the Company’s registered office are disclosed
on page 1.
The Company is listed on the Warsaw Stock Exchange since 30 October 2007.
2. Significant accounting policies
Changes in significant accounting policies
The accounting policies adopted for the preparation of these consolidated and separate financial statements for the
twelve months ended 31 December 2023 are consistent with those followed for the preparation of the annual financial
statements for the year 2022.
Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards as
adopted by the European Union (“IFRS-EU”) and the requirements of the Cyprus Companies Law, Cap.113.
The financial statements were approved by the Board of Directors and authorized for issue on the 27
th
of March 2024.
Basis of preparation
The financial statements which are expressed in United States Dollars, the Group’s presentation and the Company’s
presentation and functional currency, have been prepared under the historical cost convention except for certain
financial instruments that are measured at fair value, as explained in the accounting policies below.
The financial statements are presented in US dollars (US$), and all values are presented in US$ thousand unless
otherwise stated.
Use of estimates and judgements
The preparation of financial statements in conformity with IFRS-EU requires the use of certain critical accounting
estimates and requires management to exercise its judgment in the process of applying the Group’s and the Company's
accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Although these estimates are based on management's best
knowledge of current events and actions, actual results may ultimately differ from those estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis; revisions to estimates are recognized prospectively.
Information about judgments made in applying accounting policies and the estimates and assumptions, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are discussed in note 2 on pages 36, 37 and 38.
Adoption of new and revised IFRSs and interpretations by the European Union (EU)
As from 1 January 2023, the Group and the Company adopted all changes to International Financial Reporting
Standards (IFRSS) as adopted by the EU, which are relevant to its operations. This adoption did not have a material
effect on the financial statements of the Group and the Company.
The following Standards, Amendments to Standards and Interpretations have been issued by the International
Accounting Standards Board (IASB) but are not yet effective for annual periods beginning on 1 January 2023. Those
which may be relevant to the Group and the Company are set out below. The Group and the Company do not plan to
adopt these Standards early.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
23
2. Significant accounting policies (continued)
Standards and Interpretations not adopted by the EU
• IAS 1 Presentation of Financial Statements (Amendments) Classification of Liabilities as Current or Non-current
and Non-current Liabilities with covenants (effective for annual periods beginning on or after 1 January 2024).
• IFRS 16 Leases (Amendments): Lease Liability in Sale and Leaseback (effective for annual periods beginning
on or after 1 January 2024).
• IAS 7 Statement of Cash Flows (Amendments) and IFRS 7 Financial Instruments: Disclosures (Amendments)-
Supplier Finance Arrangements (effective for annual periods beginning on or after 1 January 2024).
• IFRS 10 Consolidated Financial Statements (Amendments) and IAS 28 Investments in Associates and Joint
Ventures (Amendments): Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
(effective date postponed indefinitely, early adoption continues to be permitted).
The Board of Directors expects that the adoption of these standards or interpretations in future periods will not have
a material effect on the financial statements of the Group and the Company.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by
the Company (its subsidiaries). The Group “controls” an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. The
financial statements of subsidiaries are included in the consolidated financial statements from the date on which control
commences until the date on which control ceases.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated statement
of comprehensive income from the effective date of acquisition and up to the effective date of disposal as appropriate.
Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling
interest even if this results in the non-controlling interest having a deficit balance.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies
in line with those used by the Group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Unrealized gains
arising from transactions from equity-accounted investees are eliminated against the investment to the extent of the
Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the
extent that there is no evidence of impairment.
Business combinations
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration of each
acquisition is measured as the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred
or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition related
costs are recognized in profit or loss as incurred.
Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent
consideration arrangement, measured at its acquisition date fair value. Subsequent changes in such fair values are
adjusted against the cost of acquisition where they qualify as measurement period adjustments. All other subsequent
changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance
with relevant IFRSs. Changes in the fair value of contingent consideration classified as equity are not recognized.
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under
IFRS 3 are recognized at their fair value at the acquisition date, except that:
• deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are
recognized and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
• liabilities or equity instruments related to the replacement by the Group of an acquiree’s share based payment
awards are measured in accordance with IFRS 2 Share based payment; and
• assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Noncurrent Assets
Held for Sale and Discontinued Operations are measured in accordance with that Standard.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
24
2. Significant accounting policies (continued)
Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. The interests of non-
controlling shareholders may be initially measured either at fair value or at the non-controlling interests’ proportionate
share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis is made on an
acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the
amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity.
Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests
having a deficit balance.
Changes in the Group’s ownership interests in existing subsidiaries
Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the
subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the
non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference
between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid
or received is recognized directly in equity and attributed to the owners of the Company.
When the Group loses control of a subsidiary, it derecognizes the assets and liabilities of the subsidiary and any related
NCI and other components of equity. The profit or loss on disposal is calculated as the difference between:
(i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the
previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling
interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are accounted
for in the same manner as would be required if the relevant assets or liabilities were disposed of (i.e. reclassified to
profit or loss or transferred directly to retained earnings). The fair value of any investment retained in the former
subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting
under IFRS 9 Financial Instruments or, when applicable, the cost on initial recognition of an investment in an associate
or jointly controlled entity.
Investments in subsidiary and associates
In the individual accounts of the Company, investments in subsidiary, associate and jointly controlled companies are
presented at cost less provision for impairment. The Group’s interests in equity-accounted investees comprise interests
in associates. Associates are those entities in which the Group has significant influence, but not control or joint control,
over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20%
and 50% of the voting power of another entity. Interest in associates is accounted for using the equity method and is
recognized initially at cost. The cost of the investment includes transaction costs.
The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income
of equity accounted investees from the date that significant influence commences until the date that significant
influence ceases. When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying
amount of that interest including any long-term investments, is reduced to zero, and the recognition of further losses
is discontinued, except to the extent that the Group has an obligation or has made payments on behalf of the investee.
Financial assets at fair value through other comprehensive income (FVOCI)
The Group accounts for financial assets at FVOCI if the assets meet the following conditions:
- They are held under a business model whose objective it is “hold to collect” the associated cash flows and
sell, and
- The contractual terms of the financial assets give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Any gains or losses recognized in other comprehensive income will be transfer to profit and loss upon derecognition of
the asset.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
25
2. Significant accounting policies (continued)
Financial assets at fair value through profit and loss (FVPL)
The Group accounts for financial assets at FVPL if the assets meet the following conditions:
- Debt investments that do not qualify for measurement at either amortized cost or FVOCI
- Equity investments that are held for trading, and
- Equity investments for which the Group has not elected to recognize fair value gains and losses through OCI.
Goodwill
Goodwill arising in a business combination is recognized as an asset at the date that control is acquired (the acquisition
date). Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the
acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities
assumed.
If, after reassessment, the Group’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum
of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the
acquirer’s previously held equity interest in the acquiree (if any), the excess is recognized immediately in profit or loss
as a bargain purchase gain.
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to
benefit from the synergies of the combination.
Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently
when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is
less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset
in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on
disposal.
Segmental reporting
The Group is organized by geographical segments and this is the primary format for segmental reporting. Each
geographical segment is subject to risks and returns that are different from those of other segments.
Revenue recognition
The Group recognizes revenue mainly from the following major sources:
- Sale of goods
- Sale of optional warranties related to the aforementioned products
- Sale of software licenses
- Rendering of services
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a
customer. The Group recognizes revenue when it transfers control of a product to a customer.
Sale of goods
The Group sells IT components and finished products mainly to small-medium businesses and retail market. Revenue
represents amounts invoiced to customers in respect of sales of goods during the year and is stated net of trade
discounts, rebates, customer returns and other similar allowances. Based on historical data and using the “most likely
amount” method, the expected returns for the year were of insignificant value. Therefore, a significant reversal of
revenue was not expected, and the effect of the returns was recorded as occurred.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
26
2. Significant accounting policies (continued)
Revenue from the sale of goods is recognized when the control of the product is transferred to the customer. The point
in time at which the control is transferred and the performance obligation is considered as satisfied, is decided based
on the incoterms of each sale of goods and also by considering the following indicators:
• the entity has a present right to payment for the asset
• the customer has legal title to the asset
• the entity has transferred physical possession of the asset
• the customer has the significant risks and rewards related to the ownership of the asset and
• the customer has accepted the asset.
More specifically, for each of the most used incoterms, revenue is recognized at the following point in time:
• Ex-works (EXW) - when the goods become available to the buyer
• Carriage-paid-to (CPT) – when the goods have been delivered to the carrier
• Carriage-and-insurance-paid-to (CIP) - when the goods have been delivered to the carrier
• Free carrier (FCA) - when the goods have been delivered to the carrier at the named place or point
Sale of optional warranties
The Group sells optional warranties only when the vendor offers this option. The Group enters into agreements with
purchasers of its goods to perform necessary repairs falling outside of the products standard warranty period. Since it
is the vendor that has the ultimate liability regarding the optional warranties sold, the performance obligation is
considered satisfied upon sale and the related revenue is recognized immediately
Sale of software licenses
The Group sells licenses only for software created by third parties. Software licenses are neither customized nor subject
to significant integration services by the Group. Since the Group only acts just as the distributor of the licenses, the
performance obligation is considered satisfied upon sale and the related revenue is recognized immediately.
Rendering of services
The Group provides mainly Value-Added Services (VAD) relating to the sale of IT components and finished products
when the vendor offers this option. The Group enters into fixed price maintenance contracts with its customers between
one and three years in length. Customers are required to pay in advance for each twelve-month service period and
the relevant payment due dates are specified in each contract. Since it is the vendor that has the ultimate liability
regarding the services sold, the performance obligation is considered satisfied upon sale and the related revenue is
recognized immediately.
Dividend and interest income
Dividend income from investments is recognized when the Company’s right to receive payment has been established.
Interest income is recognized when it is probable that the economic benefits will flow to the Group and the Company
and the amount of revenue can be measured reliably.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset’s net carrying amount.
Borrowing costs
All borrowing costs are recognized in the income statement in the period in which they are incurred using the effective
interest method.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
27
2. Significant accounting policies (continued)
Employee benefits
Defined contribution pension plans
A defined contribution plan, the Employee Provident Fund, is a post-employment benefit plan under which the Company
pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts.
The Company operates a defined contribution scheme, the assets of which are held in a separate trustee-administered
fund. Obligations for contributions to defined contribution pension plans are recognized as staff costs in the statement
of comprehensive income in the year during which services are rendered by employees.
Contributions to the Government Social Insurance Fund
The Group/Company and the employees contribute to the Government Social Insurance Fund at the prevailing statutory
rate which is applied on employees' salaries. The scheme is funded by payments from employees and by the
Group/Company. The Group’s/Company's contributions are expensed as incurred and are included in staff costs. The
Group/Company has no further payment obligations once the contributions have been paid. Prepaid contributions are
recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
Share-based payment transactions
The grant-date fair value of share-based payment awards granted to employees is recognized as an employee expense,
with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the
awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service
and non-market performance conditions are expected to be met, such that the amount ultimately recognized as an
expense is based on the number of awards that meet the related service and non-market performance conditions at
the vesting date. For share-based payment awards with non-vesting conditions, the grant-date fair value of the
share-based payment is measured to reflect such conditions and there is no true-up for differences between expected
and actual outcomes.
Foreign currencies
The individual financial statements of each Group entity are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each entity are expressed in United States Dollars (US$), which is the
functional currency of the Company and the presentation currency for both the consolidated and separate financial
statements.
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recorded at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated
at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies
are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items are
measured in terms of historical cost in a foreign currency and are not retranslated.
Exchange differences are recognized in the profit and loss in the period in which they arise. For the purpose of
presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are expressed
in United States Dollars using exchange rates prevailing at the end of the reporting period. Income and expense items
are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during the
period, in which case the exchange rates at the date of the transactions are used. Exchange differences arising, if any,
are recognized in other comprehensive income and accumulated in equity (attributed to non-controlling interests as
appropriate).
On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal
involving loss of control over a subsidiary that includes a foreign operation, loss of joint control over a jointly controlled
entity that includes a foreign operation, or loss of significant influence over an associate that includes a foreign
operation), all of the accumulated exchange differences in respect of that operation attributable to the Group are
reclassified to profit or loss. Any exchange differences that have previously been attributed to non-controlling interests
are reclassified to other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities
of the foreign operation and translated at the closing rate.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
28
2. Significant accounting policies (continued)
Tax
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit reported in the
income statement because it excludes items of income or expenses that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using
the tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities
are generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for all
deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if
the temporary differences arise from goodwill or from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantially
enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends
to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax are recognized as an expense or income in profit or loss, except when they relate to items
that are recognized in other comprehensive income, in which case the tax is also recognized in equity.
Dividend distribution
Dividend distribution to the shareholders is recognized in the financial statements in the year in which dividends are
declared.
Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment
losses.
Properties in the course of construction for production, rental or administrative purposes, are carried at cost less any
recognized impairment loss. Such properties are classified to the appropriate categories of property, plant and
equipment when completed and are ready for their intended use. Depreciation of these assets, on the same basis as
other property assets, commences when the assets are ready for their intended use.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
29
2. Significant accounting policies (continued)
Depreciation is provided at rates calculated to write off the cost less the estimated residual value of property, plant
and equipment (other than freehold land and properties under construction) on a straight-line basis over their
estimated useful economic lives as follows:
Leasehold property
Over the remaining period of the right for usage of the land
Buildings
46 - 100 years
Computer hardware
5 years
Warehouse machinery
3 - 5 years
Motor vehicles
5 years
Furniture, fittings and office equipment
10 years
No depreciation is provided on land.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sale proceeds and the carrying amount of the asset and is recognized in the profit and loss
when the asset is disposed.
The estimated useful life and depreciation method are reviewed at the end of each annual reporting period, with the
effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets
Intangible assets consist of computer software, patents and licenses which are stated at cost less accumulated
amortization and accumulated impairment losses. Amortization is provided at rates calculated to write off the cost less
the estimated residual value of the assets using the straight-line method as follows:
Computer software
3 - 10 years
Patents and licenses
3 years
The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of
any changes in estimate being accounted for on a prospective basis.
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use. Gains or
losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds
and the carrying amount of the asset, and are recognized in profit or loss when the asset is derecognized.
Investment Property
Investment property comprises a number of commercial properties that are leased to third parties. Investment property
initially measured at cost less accumulated depreciation and any accumulated impairment losses (note 10). Rental
income from investment property is recognized as “other gains and losses” on a straight-line basis over the term of
the lease. An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the continued use of the asset. Any gain or
loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.
Repairs and maintenance
Expenditure for repairs and maintenance of property, plant and equipment and costs associated with maintenance of
computer software programs are recognized as an expense as incurred.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
30
2. Significant accounting policies (continued)
Impairment of tangible and intangible assets excluding goodwill
At the end of each reporting period, the Group and the Company review the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group
and the Company estimate the recoverable amount of the cash-generating unit to which the asset belongs. Where a
reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual
cash-generating units, or otherwise they are allocated to the smallest Group of cash-generating units for which a
reasonable and consistent basis of allocation is identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimated of future
cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the
impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognized for the asset (or
cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss, unless
the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a
revaluation increase.
Financial instruments
Financial assets and financial liabilities are recognized when a Group entity becomes a party to the contractual
provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities
at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.
Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular
way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace.
All recognized financial assets are measured subsequently in their entirety at either amortized cost or fair value,
depending on the classification of the financial assets.
(i)
Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at: amortized cost; Fair Value through Other
Comprehensive Income – debt investment; Fair Value through Other Comprehensive Income – equity investment; or
Fair value through profit or loss.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
31
2. Significant accounting policies (continued)
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model
for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first
reporting period following the change in the business model.
•
Financial assets at FVTPL
These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income,
are recognized in profit or loss.
•
Financial assets at FVOCI
These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income,
are recognized in other comprehensive income. On derecognition, gains and losses accumulated in OCI are reclassified
to profit or loss.
•
Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is
reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in
profit or loss. Any gain or loss on derecognition is recognized in profit or loss. Financial assets at amortized cost
comprise of the following:
Trade receivables including factored trade receivables
The Group enters into various invoice discounting agreements with factoring companies from which a percentage of
approved invoices are collected in advance. The invoices which are given for collection in advance are with recourse
and included within trade receivables, whereas the amount collected from the factoring Company is presented in the
statement of financial position under current liabilities until the date of settlement by the debtors. Factoring expenses
are charged to the statement of comprehensive income.
Loans granted
Loans granted by the Company to the borrower are categorized as loans. All loans are recognized when cash is
advanced to the borrower.
Cash and cash equivalents
The Group considers all short-term highly liquid instruments with maturities of 3 months or less which are subject to
insignificant risk of changes in value to be cash equivalents.
•
Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the effective interest method,
foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are
recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
•
Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the
dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized
in OCI and are never reclassified to profit or loss.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
32
2. Significant accounting policies (continued)
(ii)
Derecognition
The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire,
or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains
substantially all of the risks and rewards of ownership and it does not retain control of the financial assets.
The Group enters into transactions whereby it transfers assets recognized in its statement of financial position but
retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred
assets are not derecognized.
Financial liabilities
(i)
Classification and subsequent measurement
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if
it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities
at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit
or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method.
Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on
derecognition is also recognized in profit or loss.
Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt
instrument.
Financial guarantee contracts issued by the Company/Group are accounted for and measured initially at their fair
values, and subsequently measured at the higher of:
• the amount of the obligation under the contract, as determined in accordance with IAS 37 Provisions,
Contingent Liabilities and Contingent Assets and
• the amount initially recognized less, where appropriate, cumulative amortization recognized in accordance
with the revenue recognition policies as set out below.
As at each reporting date presented in these financial statements, the Company participates in financial guarantee
contracts and provides financial guarantees to its subsidiaries.
To be classified as a financial guarantee contract, a contract needs to comply with all of the following conditions:
• The reference obligation is a debt instrument.
• The holder is compensated only for a loss that it incurs.
• The contract does not compensate the holder for more than the actual loss that it incurs.
Financial guarantee contract in the scope of IFRS 9 is initially recognized at fair value. If the financial guarantee contract
was issued in a stand-alone arm’s length transaction to an unrelated party, then its fair value at inception is considered
to be equal to the premium received unless there is evidence to the contrary.
In the case of a guarantee provided by the Company over the liability of a subsidiary, when no consideration is or will
be received, the Company recognize a liability in its financial statements for the fair value of the guarantee at the date
of granting the financial guarantee and the respective increase in the cost of the investment in subsidiary.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
33
2. Significant accounting policies (continued)
Subsequently, all financial guarantee contracts mentioned above are measured at the higher of:
• the amount of the loss allowance determined in accordance with IFRS 9 over the loan balance as at reporting
date; and
• the amount initially recognized less, when appropriate, the cumulative amount of income recognized in
accordance with the principles of IFRS 15.
Fee income recognized in accordance with the principles of IFRS 15 is posted within “finance income” caption of
statement of profit and loss and other comprehensive income.
Any gain or loss caused by remeasurement of guarantee liabilities is posted through respective “finance income” and
“finance expenses” captions of statement of profit and loss and other comprehensive income.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance
charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an
accrual basis to the income statement using the effective interest method and are added to the carrying amount of
the instrument to the extent that they are not settled in the period in which they arise.
(ii)
Derecognition
The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. The
Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are
substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration
paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset or liability and allocating
interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash flows (including all fees on points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset or
liability, or, where appropriate, a shorter period.
Inventories
Inventories comprise of:
• IT products (components and finished products) which are stated at the lower of cost and net realizable value.
Cost is determined on the basis of standard cost method for the price protected stock items and on the
weighted average cost method for the non-price protected stock items and comprises the cost of acquisition
plus any other costs that are incurred to bring the stock items to their present location and condition. Net
realizable value represents the estimated selling price for inventories less all cost necessary to make the sale.
• Land under development which is carried at cost.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is
recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
Provisions
A provision is recognized in the statement of financial position when the Company/Group has a legal or constructive
present obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to
settle the obligation, and a reliable estimate can be made of the amount of the obligation.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
34
2. Significant accounting policies (continued)
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a
provision is measured using the cash flow estimated to settle the present obligation, its carrying amount is the present
value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, the receivable is recognized as an asset if it is virtually certain that the reimbursement will be received and the
amount of the receivable can be measured reliably.
Warranties
Provisions for the expected cost of warranty are recognized at the date of sale of the relevant products, at the Directors’
best estimate of the expenditure required to settle the Company’s/Group’s obligations.
Marketing
Provisions for the expected cost of marketing activities are recognized based on purchase of products, cost of goods
sold and other various vendors rebates depending on turnover and marketing strategy. Marketing provisions are mainly
used to support promotional and advertising related activities.
Impairment
Financial assets
The Group uses 'expected credit loss' (ECL) model. This impairment model applies to financial assets measured at
amortized cost, contract assets and debt instruments at FVOCI but not to investments in equity instruments. ECLs are
based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows
that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected
cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
The Group recognizes loss allowances for ECLs on financial assets measured at amortized cost.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit
risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within
the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in
credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the
exposure, irrespective of the timing of the default (a lifetime ECL) due.
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each
reporting date. The Group has established a provision matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors and the economic environment.
An impairment loss is calculated as the difference between an asset’s carrying amount and the present value of the
estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in profit or
loss. When the Group considers that there are no realistic prospects of recovery of the asset, the relevant amounts are
written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to
an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed
through profit or loss.
Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the
assets.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
35
2. Significant accounting policies (continued)
Non-financial assets
At each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine whether there
is any indication that those assets have suffered an impairment loss. An impairment loss is recognized if the carrying
amount of an asset or cash-generating unit (CGU) exceeds its recoverable amount. Where it is not possible to estimate
the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the
asset belongs. Goodwill is tested annually for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount
of the asset (CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss,
unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation
decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (CGU) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognized for the asset (CGU) in prior years. A reversal
of an impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued
amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Leases
At inception or on reassessment of a contract that contains a lease component, the Group and the Company allocate
the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone
prices. However, for leases of properties in which it is a lessee, the Group and the Company elected not to separate
components and will instead account for the lease and non-lease components as a single lease component.
The Group and the Company leases land and buildings and motor vehicles. As a lessee, the Group and the
Company previously classified leases as operating or finance leased based on its assessment of whether the lease
transferred substantially all the risks and rewards of ownership. Under IFRS 16, the Group and the Company recognizes
right-of-use assets and lease liabilities for most leases – i.e. these leases are on balance sheet. The Group and the
Company presents lease liabilities in ‘long-term borrowings’ and ‘short-term borrowings’ in the statements of financial
position.
The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease
incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
end of the lease term, unless the lease transfers ownership of the underlying asset to the Group/Company by the end
of the lease term or the cost of the right-of-use asset reflects that the Group/Company will exercise a purchase option.
In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined
on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the
discount rate.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
36
2. Significant accounting policies (continued)
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources
and makes certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
• fixed payments, including in-substance fixed payments;
• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at
the commencement date;
• amounts expected to be payable under a residual value guarantee; and
• the exercise price under a purchase option that the Group/Company is reasonably certain to exercise, lease
payments in an optional renewal period if the Group/Company is reasonably certain to exercise an extension
option, and penalties for early termination of a lease unless the Group/Company is reasonably certain not to
terminate early.
The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, if there is a change in the Group/Company’s
estimate of the amount expected to be payable under a residual value guarantee, if the Group/Company changes its
assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance
fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to
zero.
Non-recoverable VAT is excluded from lease accounting as VAT payments are not made to the lessor in exchange for
the right to use an underlying asset. Instead, they are levies imposed by the government and are in the scope of IFRIC
21 (Levies) and are recognized when they are due under the tax law (when the invoice is issued). They are expensed
in Statement of profit or loss and other comprehensive income immediately at the moment they are recognized.
Short-term leases and leases of low-value assets
The Group/Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets
and short-term leases. The Group/Company recognizes the lease payments associated with these leases as an expense
on a straight-line basis over the lease term.
Critical judgements in applying the entity’s accounting policies and key sources of estimation
uncertainty
The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates
and requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also
requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Although these estimates are based on management’s best knowledge of current events and
actions, actual results may ultimately differ from those estimates. The estimates and assumptions, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are discussed below:
Revenue recognition
In making its judgment, management considered the detailed criteria for the recognition of revenue from the sale of
goods as set out in IFRS 15 Revenue from Contracts with Customers and, in particular, whether the Company/Group
had transferred to the buyer the significant risks and rewards of ownership of the goods. The timing of the transfer of
control is decided based on related incoterms. The management is satisfied that the significant risks and rewards have
been transferred and the recognition of the revenue in the current year is appropriate.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
37
2. Significant accounting policies (continued)
Provision for bad and doubtful debts
The Company/Group reviews its trade and other receivables for evidence of their recoverability. Such evidence includes
the customer’s payment record, the customer’s overall financial position and expected recovery from credit insurance.
If indications of non-recoverability exist, the recoverable amount is estimated and a respective provision for bad and
doubtful debts is made. The amount of the provision is charged through the income statement. The review of credit
risk is continuous, and the methodology and assumptions used for estimating the provision are reviewed regularly and
adjusted accordingly.
Calculation of loss allowance
When measuring ECL the Group uses reasonable and supportable forward-looking information, which is based on
assumptions for the future movement of different economic drivers and how these drivers will affect each other. Loss
given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash
flows due and those that the lender would expect to receive, taking into account cash flows from collateral and integral
credit enhancements.
Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of
default over a given time horizon, the calculation of which includes historical data, assumptions and expectations of
future conditions. Loss rates are calculated separately for exposures in different segments which share common credit
risk characteristics and are based on actual credit loss experience over the past four years. Significant customers, if
any, are assessed individually.
Provision for obsolete and slow-moving inventory
The Company/Group reviews its inventory records for evidence regarding the salability of inventory and its net
realizable value on disposal. The provision for obsolete and slow-moving inventory is based on management’s past
experience, taking into consideration arrangements with suppliers for price protection and for returning defective stock;
the value of inventory as well as the movement and the level of stock of each category of inventory.
Any change in the amount of provision is recognized in the income statement. The review of the net realizable value
of the inventory is continuous and the methodology and assumptions used for estimating the provision for obsolete
and slow-moving inventory are reviewed regularly and adjusted accordingly.
Impairment of investments in subsidiaries, associated and jointly controlled enterprises
The Group and Company periodically evaluates the recoverability of investments in subsidiaries, associates and jointly
controlled enterprises/jointly controlled enterprises whenever indicators of impairment are present. Indicators of
impairment include such items as declines in revenues, earnings or cash flows or material adverse changes in the
economic or political stability of a particular country, which may indicate that the carrying amount of an asset is not
recoverable. If facts and circumstances indicate that the investment in subsidiaries/associates/jointly controlled
enterprises may be impaired, the estimated future undiscounted cash flows associated with these entities would be
compared to their carrying amounts to determine if a write-down to fair value is necessary.
Warranty provisions
Warranty provisions represent the Company’s/Group’s best estimate of the liability as a result of the warranties granted
on certain products and is based on past experience and industry averages for defective products.
Income taxes
Significant judgment is required in determining the provision for income taxes. There are transactions and calculations
for which the ultimate tax determination is uncertain during the ordinary course of business. The Company/Group
recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where
the final tax outcome of these matters is different from the amounts that were initially recorded, such difference will
impact the income tax and deferred tax provisions in the period in which such determination is made.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
38
2. Significant accounting policies (continued)
Trade payables factoring facilities
Significant judgment is required in determining the appropriate presentation of supply-chain factoring facilities in the
statement of financial position and statement of cash flow. The Group and the Company disclose the amounts factored
by suppliers separately from trade payables because the nature and function of the financial liabilities is sufficiently
different from a trade payable that a separate presentation is appropriate. The payments to the bank are included
within operating cash flows because they continue to be part of the normal operating cycle of the Group and their
principal nature remains operating – i.e. payments for the purchase of goods and services.
3. Revenue
3.1 Disaggregation of revenue from contracts with customers
Analysis of revenue by category under revenue from contracts with customers is disaggregated by products and service
lines:
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Sales of goods
3,037,010
2,654,543
1,954,471
1,778,909
Sales of licenses
17,836
29,296
9,183
9,022
Rendering of services
5,583
5,758
-
-
Sales of optional warranty
799
442
14
34
Total revenue from contracts with customers
3,061,228
2,690,039
1,963,668
1,787,965
Revenue analysis by geographical market
The Group and the Company
The Group operates as a trader and distributor of computer hardware and software in a number of geographical
regions. The following table shows an analysis of the Group’s sales by geographical market, irrespective of the origin
of the goods.
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Former Soviet Union
1,563,280
1,407,196
1,014,972
1,011,366
Central Eastern Europe
791,026
653,643
528,172
385,931
Middle East & Africa
425,652
407,717
267,150
239,718
Western Europe
257,372
183,088
133,501
100,759
Other
23,898
38,395
19,873
50,191
Total revenue from contracts with customers
3,061,228
2,690,039
1,963,668
1,787,965
Timing of revenue recognition
Goods transferred at a point in time
3,053,527
2,683,981
1,963,668
1,787,665
Services transferred at a point in time
7,701
6,058
-
300
Total revenue from contracts with customers
3,061,228
2,690,039
1,963,668
1,787,965
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
39
3. Revenue (continued)
Revenue analysis by currency
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
US Dollar
588,105
832,016
1,675,876
1,656,109
Euro
636,605
413,459
286,626
131,381
Kazakhstan Tenge
624,787
554,343
-
-
Ukraine Hryvnia
394,031
323,667
-
-
United Arab Emirates Dirham
294,320
-
-
-
Russian Ruble
95,016
194,297
-
-
Belarusian Ruble
65,687
89,205
-
-
Czech Koruna
65,590
53,159
-
-
Romanian New Lei
58,159
47,812
-
-
Bulgarian Lev
44,521
37,557
-
-
Polish Zloty
57,256
30,301
-
-
Croatian Kuna
-
19,924
-
-
Bosnian Mark
20,972
19,759
-
-
Hungarian Forint
8,203
8,072
-
-
Other
107,976
66,468
1,166
475
3,061,228
2,690,039
1,963,668
1,787,965
3.2 Contract balances
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Trade and other receivables
346,123
328,931
56,548
53,314
The Group
Trade receivables are non-interest bearing. On 31 December 2023, US$ 6,064 (2022: US$ 3,331) was recognized
as provision for impairment of trade receivables (note 17).
Contract assets are initially recognized for revenue earned from provision of series of services as receipt of
consideration is conditional on successful completion of these services. Upon completion of the services and
acceptance by the customer, the amounts recognized as contract assets are reclassified to trade receivables. During
2023 and 2022, the impact of contract assets was not material at the Group level.
Contract liabilities primarily relate to the advance consideration received from customers for delivery of series of
services for which revenue is recognized over time. During 2023 and 2022, the impact of contract liabilities was not
material at the Group level.
The Company
Trade receivables are non-interest bearing. On 31 December 2023, US$ 4,479 (2022: US$ 1,378) was recognized
as provision for expected credit losses on trade receivables (note 17).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
40
3. Revenue (continued)
Contract liabilities primarily relate to the advance consideration received from customers for delivery of series of
services for which revenue is recognized over time. During 2023 and 2022, the impact of contract liabilities was not
material at the Company level.
4. Other gains and losses
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Dividend received
-
-
7,575
591
Profit/(loss) on disposal of property, plant and
equipment
2,934
(48)
19
(25)
Profit from sale of investment property
3,515
-
3,515
-
Net (loss)/profit from disposal of subsidiaries
(Note 34.2)
(1,149)
-
14,667
-
Other net income
463
636
19,263
2,210
Bad debts recovered
2
7
-
-
Rental income
353
353
291
238
Impairment loss of non-trade receivable (i)
(9,908)
-
(9,908)
-
Impairment of investments
-
-
(931)
-
(3,790)
948
34,491
3,014
(i) The impairment loss of non-trade receivable resulted from the disposal of ASBIS OOO (Russia).
5. Profit before tax
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Profit before tax is stated after charging:
(a) Amortization of intangible assets (Note 9)
678
1,203
457
1,032
(b) Depreciation (Note 8)
6,995
4,554
2,060
991
(c) Depreciation of investment property (Note 10)
54
30
54
30
(c) Auditors' remuneration – audit fees
574
536
303
293
(d) Directors’ remuneration – executive (Note 31)
1,753
1,650
1,753
1,650
(e) Directors’ remuneration – non-executive (Note 31)
74
25
74
25
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
41
6. Financial expense, net
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Financial income
Interest income
625
999
6
9
Interest income from loans to subsidiary
companies (Note 31)
-
-
104
84
Other financial income
1,737
3,365
295
2,205
Net exchange gain
357
878
-
1,509
2,719
5,242
405
3,807
Financial expense
Bank interest
15,724
10,886
1,002
177
Bank charges
5,702
4,617
1,164
1,206
Derivative charges
616
798
572
747
Interest on lease liabilities
1,048
501
338
65
Factoring interest
8,736
7,478
684
459
Factoring charges
412
276
133
160
Other financial expenses
116
112
23
13
Other interest
2,576
1,026
2,572
1,022
Net exchange loss
-
-
1,152
-
34,930
25,694
7,640
3,849
Realized foreign exchange loss relating to foreign
operations liquidated and disposed
11,286
282
-
-
Net
(43,497)
(20,734)
(7,235)
(42)
7. Tax
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Payables balance 1 January
2,014
3,464
2,405
3,037
Provision for the year
12,632
15,223
5,288
5,265
Over provision of prior year
(449)
(51)
(448)
(103)
Exchange difference on retranslation
229
(221)
-
-
Amounts paid, net
(10,795)
(16,401)
(4,826)
(5,794)
Net payable balance 31 December
3,631
2,014
2,419
2,405
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Tax receivable
(515)
(1,588)
-
-
Tax payable
4,146
3,602
2,419
2,405
Net
3,631
2,014
2,419
2,405
The taxation charge of the Group comprises corporation tax charge in Cyprus on the taxable profits of the Company
and those of its subsidiaries which are subject to tax in Cyprus and corporation tax in other jurisdictions on the taxable
results of the foreign subsidiary companies.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
7. Tax (continued)
The Company and all Cyprus resident companies of the Group are subject to corporation tax at the rate of 12.5%
(2022: 12.5%). The tax rates of subsidiaries in foreign jurisdictions range between 0% and 30%.
Dividends received by the Cyprus companies of the Group are exempt from corporation tax and they are also exempt
from defence tax.
Bank interest received by the Company and all Cyprus resident companies of the Group is subject to defence tax of
30% (2022: 30%).
Tax charge for the year
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Provisions and withholding tax for the year
12,632
15,223
5,288
5,265
Over provision of prior year
(449)
(51)
(448)
(103)
Deferred tax charge
(170)
4
-
(159)
Net
12,013
15,176
4,840
5,003
The charge for taxation is based on the Group’s/Company’s profits for the year as adjusted for tax purposes. The
reconciliation of the charge for the year is as follows:
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Profit before tax
64,969
91,046
47,507
39,231
Corporation tax thereon at the applicable tax rates
12,479
15,932
5,938
4,904
Tax on income not taxable in determining taxable
profit
(3,983)
(5,303)
(3,679)
(472)
Effect of using tax losses brought forward
(125)
(111)
-
-
Effect of unused current year tax losses
162
23
-
-
Temporary differences
613
500
649
174
Tax charges and penalties
2
4
-
-
Tax on non-allowable expenses
3,478
4,175
2,377
656
12,626
15,220
5,285
5,262
Special contribution to defence fund
6
3
3
3
Over provision of prior years
(449)
(51)
(448)
(103)
Deferred tax charge
(170)
4
-
(159)
Tax charge
12,013
15,176
4,840
5,003
OECD Pillar Two model rules
The Group is within the scope of the OECD Pillar Two model rules. Pillar Two legislation was enacted in Cyprus, the
jurisdiction in which the Company is incorporated and will come into effect from 1 January 2024. Since the Pillar Two
legislation was not effective at the reporting date, the Group has no related current tax exposure. The Group applies
the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two
income taxes, as provided in the amendments to IAS 12 issued in May 2023.
The Group is in the process of assessing its exposure to the Pillar Two legislation for when it comes into effect. Due to
the complexities in applying the legislation and calculating GloBE income, the quantitative impact of the enacted or
substantively enacted legislation is not yet reasonably estimable. Therefore, even for those entities with an accounting
effective tax rate above 15%, there may still be Pillar Two tax implications. The entity is currently engaged with tax
specialists to assist them with applying the legislation.
42
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
43
8. Property, plant and equipment
The Group
Land and
buildings
Assets under
construction
Computer
hardware
Warehouse
machinery
Motor vehicles
Furniture and
fittings
Office
equipment
Total
US$
US$
US$
US$
US$
US$
US$
US$
Cost
At 1 January 2022
35,850
7,249
8,800
795
4,485
3,830
4,600
65,609
Additions
8,923
2,992
1,368
52
726
1,617
1,784
17,462
Disposals/write-offs
(382)
-
(2,672)
(3)
(695)
(867)
(848)
(5,467)
Transfers
4,125
(9,926)
-
-
-
-
-
(5,801)
Foreign exchange difference on retranslation
(430)
-
(258)
(1)
(77)
(330)
(211)
(1,307)
At 31 December 2022
48,086
315
7,238
843
4,439
4,250
5,325
70,496
Additions
15,181
790
2,341
280
1,118
2,103
3,269
25,082
Disposals/write-offs
(2,887)
-
(1,697)
(39)
(431)
(956)
(611)
(6,621)
Transfers
121
(121)
-
-
-
-
-
-
Foreign exchange difference on retranslation
365
-
9
5
-
(3)
296
672
At 31 December 2023
60,866
984
7,891
1,089
5,126
5,394
8,279
89,629
Accumulated depreciation
At 1 January 2022
7,710
-
6,173
488
2,167
2,381
2,966
21,885
Charge for the year
1,999
-
811
84
734
461
465
4,554
Disposals/write-offs
(99)
-
(2,604)
(1)
(434)
(804)
(848)
(4,790)
Transfers
(1,367)
-
-
-
-
-
-
(1,367)
Foreign exchange difference on retranslation
(173)
-
108
(1)
(71)
161
(123)
(99)
At 31 December 2022
8,070
-
4,488
570
2,396
2,199
2,460
20,183
Charge for the year
3,557
-
1,167
109
725
534
903
6,995
Disposals/write-offs
(1,787)
-
(1,601)
(27)
(386)
(553)
(290)
(4,644)
Foreign exchange difference on retranslation
61
-
21
10
22
34
14
162
At 31 December 2023
9,901
-
4,075
662
2,757
2,214
3,087
22,696
Net book value
At 31 December 2023
50,965
984
3,816
427
2,369
3,180
5,192
66,933
At 31 December 2022
40,016
315
2,750
273
2,043
2,051
2,865
50,313
Land and buildings are mortgaged for financing purposes. The cost of fully depreciated assets of the Group that are still in use amounted to US$ 5,076 (2022: US$ 5,251).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
44
8. Property, plant and equipment (continued)
Included in the net carrying amount of property, plant and equipment are right-of-use assets as follows:
The Group
Land and
buildings
Warehouse
machinery
Motor
vehicles
Total
US$
US$
US$
US$
Balance at 1 January 2022
8,287
26
1,099
9,412
Depreciation charge for the year
(1,625)
(6)
(400)
(2,031)
Additions to right of use assets
6,155
-
234
6,389
Derecognition of right of use assets
(36)
-
-
(36)
Foreign exchange difference on retranslation
(99)
(2)
(118)
(219)
Balance at 31 December 2022
12,682
18
815
13,515
Depreciation charge for the year
(2,892)
(5)
(381)
(3,278)
Additions to right of use assets
8,524
-
413
8,937
Derecognition of right of use assets
-
-
-
-
Foreign exchange difference on retranslation
71
(13)
(38)
20
Balance at 31 December 2023
18,385
-
809
19,194
The Group leases offices, warehouses and stores in various locations throughout the countries of operation. In
addition, the Group leases motor vehicles for business use and employee commuting, as well as some warehouse
machinery for warehouse operations.
The total cash outflows for the leases related to the above right-of-use assets were US$ 3,321 (2022: US$ 2,252).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
45
8. Property, plant and equipment (continued)
The Company
Land and
buildings
Assets under
construction
Computer
hardware
Warehouse
machinery
Motor vehicles
Furniture and
fittings
Office
equipment
Total
US$
US$
US$
US$
US$
US$
US$
US$
Cost
At 1 January 2022
10,818
7,249
3,856
183
548
649
1,144
24,447
Additions
5,510
2,992
574
2
142
412
883
10,515
Disposals
-
-
(2,481)
-
(23)
(409)
(721)
(3,634)
Transfers
4,125
(9,926)
-
-
-
-
-
(5,801)
At 31 December 2022
20,453
315
1,949
185
667
652
1,306
25,527
Additions
2,000
-
416
184
180
297
1,163
4,240
Disposals/write-offs
-
-
(5)
-
(57)
(19)
(29)
(110)
Transfers
121
(121)
-
-
-
-
-
-
At 31 December 2023
22,574
194
2,360
369
790
930
2,440
29,657
Accumulated depreciation
At 1 January 2022
2,355
-
3,179
32
248
461
816
7,091
Charge for the year
523
-
242
36
89
39
62
991
Disposals
-
-
(2,481)
-
(23)
(409)
(721)
(3,634)
Transfers
(1,367)
-
-
-
-
-
-
(1,367)
At 31 December 2022
1,511
-
940
68
314
91
157
3,081
Charge for the year
1,243
-
328
58
111
84
236
2,060
Disposals/write-offs
-
-
(5)
-
(57)
(19)
(29)
(110)
At 31 December 2023
2,754
-
1,263
126
368
156
364
5,031
Net book value
At 31 December 2023
19,820
194
1,097
243
422
774
2,076
24,626
At 31 December 2022
18,942
315
1,009
117
353
561
1,149
22,446
The land and buildings have been mortgaged as securities for financing purposes. The cost of fully depreciated assets of the Company that are still in use amounted to US$ 775
(2022: US$ 629).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
46
8. Property, plant and equipment (continued)
Included in the net carrying amount of property, plant and equipment are right-of-use assets as follows:
The Company
Land and
buildings
Total
US$
US$
Balance at 1 January 2022
3,997
3,997
Depreciation charge for the year
(376)
(376)
Additions to right of use assets
4,461
4,461
Balance at 31 December 2022
8,082
8,082
Depreciation charge for the year
(1,028)
(1,028)
Additions to right of use assets
1,102
1,102
Balance at 31 December 2023
8,156
8,156
The Company leases the distribution center in Prague, Czech Republic and a 9,990 square meters land in Cyprus.
The total cash outflows for the leases related to the above right-of-use assets were US$ 1,118 (2022: US$ 370).
9. Intangible assets
The Group
Computer
software
Patents and
licenses
Total
US$
US$
US$
Cost at 1 January 2022
11,008
1,690
12,698
Additions
335
65
400
Disposals/write-offs
(2,198)
(338)
(2,536)
Foreign exchange difference on retranslation
(37)
46
9
At 31 December 2022
9,108
1,463
10,571
Additions
166
1,133
1,299
Disposals/write-offs
(16)
(16)
(32)
Foreign exchange difference on retranslation
63
1
64
At 31 December 2023
9,321
2,581
11,902
Accumulated amortization
At 1 January 2022
9,554
1,241
10,795
Charge for the year
1,050
153
1,203
Disposals/write-offs
(2,198)
(336)
(2,534)
Foreign exchange difference on retranslation
(11)
41
30
At 31 December 2022
8,395
1,099
9,494
Charge for the year
569
109
678
Disposals/write-offs
(16)
(16)
(32)
Foreign exchange difference on retranslation
58
4
62
At 31 December 2023
9,006
1,196
10,202
Net book value
At 31 December 2023
315
1,385
1,700
At 31 December 2022
713
364
1,077
The cost of fully amortized intangibles of the Group that are still in use amounted to US$ 4,826 (2022: US$ 2,119).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
47
9. Intangible assets (continued)
The Company
Computer
software
Patents and
licenses
Total
US$
US$
US$
Cost at 1 January 2022
10,121
914
11,035
Additions
334
77
411
Disposals/write offs
(2,285)
(220)
(2,505)
At 31 December 2022
8,170
771
8,941
Additions
120
572
692
Disposals/write offs
(2)
(2)
(4)
At 31 December 2023
8,288
1,341
9,629
Accumulated amortization
At 1 January 2022
9,056
667
9,723
Charge for the year
907
125
1,032
Disposals/write offs
(2,285)
(220)
(2,505)
At 31 December 2022
7,678
572
8,250
Charge for the year
380
77
457
Disposals/write offs
(2)
(2)
(4)
At 31 December 2023
8,056
647
8,703
Net book value
At 31 December 2023
232
694
926
At 31 December 2022
492
199
691
The cost of fully amortized intangibles of the Company that are still in use amounted to US$ 3,995 (2022: US$ 1,372).
10. Investment Property
The Group
Land and
buildings
US$
Cost at 1 January 2022
-
Transfers
5,801
At 31 December 2022
5,801
Additions
7
Disposals
(1,617)
At 31 December 2023
4,191
Accumulated amortization
At 1 January 2022
-
Charge for the period
30
Transfers
1,367
At 31 December 2022
1,397
Charge for the period
54
Disposals
(831)
At 31 December 2023
620
Net book value
At 31 December 2023
3,571
At 31 December 2022
4,404
During 2022, the Group decided to change the use of two properties from owner-occupied to investment property.
The properties are leased to third parties under operating leases with rentals payable monthly.
During the year, the Group disposed one of the two investment properties and a gain of US$ 3,515 arose on the event.
The remaining property is leased to a third party under operating leases with rent payable monthly.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
48
10. Investment Property (continued)
The Company
Land and
buildings
US$
Cost at 1 January 2022
-
Transfer
5,801
At 31 December 2022
5,801
Additions
7
Disposals
(1,617)
At 31 December 2023
4,191
Accumulated amortization
At 1 January 2022
-
Charge for the period
30
Transfers
1,367
At 31 December 2022
1,397
Charge for the period
54
Disposals
(831)
At 31 December 2023
620
Net book value
At 31 December 2023
3,571
At 31 December 2022
4,404
During 2022, the Company decided to change the use of two properties from owner-occupied to investment property.
During the year, the Company disposed of one of the two investment properties and a gain of US$ 3,515 arose on the
event. The remaining property is leased to a third party under operating leases with rent payable monthly.
Rental income recognized by the Company during 2023 was US$ 291 (2022: US$ 209) and was included in ‘other gains
and losses’ (Note 4).
Amounts recognized in profit or loss
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Rental Income
283
193
291
209
Depreciation on investment Property
(54)
(30)
(54)
(30)
Net income
229
163
237
179
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
49
11. Investment in subsidiary companies
The Company
2023
2022
US$
US$
Cost
At 1 January
26,653
23,623
Increase in investments (i), (ii), (iii), (v), (vi)
3,220
3,302
Disposal of investments (iv)
(7,001)
-
Increase/(decrease) in fair value of financial guarantees to
subsidiaries (vii)
131
(272)
At 31 December
23,003
26,653
Accumulated impairment
At 1 January
(5,412)
(5,412)
Impairment of investments
(931)
-
Disposals during the year (iv)
4,654
-
At 31 December
(1,689)
(5,412)
Carrying amount of investment in subsidiary companies
21,314
21,241
(i) In October 2023, the Company acquired 100% shares of the Company ASBC South Africa (PTY) Ltd (South
Africa) and holds 100% shares in this subsidiary, being equal to the share capital of US$ 0.1. In December 2023,
the Company acquired the 100% shares of the company Sarovita Ltd (Cyprus) and holds 100% in this subsidiary,
being the equal to share capital of US$ 1.
(ii) In December 2023, the Company acquired the 30% of the company I.O.N Clinical Trading Ltd (Cyprus) for the
consideration of US$100. In May 2023, the company acquired 11.15% of Breezy Trade-In Ltd (Cyprus) for the
consideration of US$130.
(iii) In June 2023, the Company acquired 81% shares of the company ASBIS Africa Property Limited (South Africa)
and holds 100% in this subsidiary.
(iv) In October 2023, the Company disposed the 100% of the company ASBIS PL Sp. z.o.o. (Poland) for zero
consideration. The Company disposed the 100% of the company OOO ASBIS- Moscow (Russia) for the
consideration of US$13,890. In December the Company disposed 100% of the company I.O. Clinic Latvia SIA
(Latvia) for the consideration of US$3.
(v) In August 2022, the Company acquired 100% shares of the company Entoliva Ltd (Cyprus) and holds 100% in
this subsidiary, being the equal to share capital of US$ 10. In November 2022, the Company acquired the 100%
shares of the company ASBIS HELLAS SINGLE MEMBER S.A. (Greece) and holds 100% in this subsidiary, being
equal to share capital of US$ 103.
(vi) In April 2022 and November 2022, the Company increased its investment in its wholly owned subsidiary ASBIS
POLAND SP. Z.O.O (Poland) for the amount of US$ 479 and US$ 861 respectively. In April 2022, the Company
increase its investment in its 65.85% owned subsidiary ASBC MMC (Uzbekistan) for the amount of US$ 329. In
December 2022, the Company increased its investment in its wholly owned subsidiary E.M. EURO-MALL LTD for
the amount of US$ 1,520.
(vii) During 2023, the Company increased its financial guarantees provided to subsidiaries for the amount of US$ 131
(2022: decrease of US$ 272).
All subsidiaries are involved in the trading and distribution of computer hardware and software apart from Entoliva Ltd
which is involved in land development.
The Company periodically evaluates the recoverability of investments in subsidiaries whenever indicators of impairment
are present. Indicators of impairment include such items as declines in revenues, earnings or cash flows or material
adverse changes in the economic or political stability of a particular country, which may indicate that the carrying
amount of an asset is not recoverable. If facts and circumstances indicate that investment in subsidiaries may be
impaired, the estimated future discounted cash flows associated with these subsidiaries would be compared to their
carrying amounts to determine if a write-down to fair value is necessary.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
50
11. Investment in subsidiary companies (continued)
Based on the results of the impairment assessment performed as at 31 December 2023, the management decided to
fully impair investment ASBIS HUNGARY COMMERCIAL LTD (Hungary). The total amount of impairment loss amounting
to US$ 931 is recognized in the statement of profit and loss and other comprehensive income.
At the year end the Company held a participation in the following subsidiaries:
Subsidiary Company
Country of
incorporation
Percentage of participation
2023
2022
%
%
ASBIS UKRAINE LTD
Ukraine
100
100
ASBIS KAZAKHSTAN LLP
Kazakhstan
100
100
ASBIS PL SP. Z O.O. – dormant (xii)
Poland
-
100
ASBIS POLAND SP. Z.O.O
Poland
100
100
ASBIS ROMANIA SRL
Romania
100
100
ASBISC-CR D.O.O.
Croatia
100
100
ASBIS D.O.O.
Serbia
100
100
ASBIS HUNGARY COMMERCIAL LTD
Hungary
100
100
ASBIS BULGARIA LTD
Bulgaria
100
100
ASBIS CZ, SPOL S.R.O.
Czech Republic
100
100
ASBIS VILNIUS UAB
Lithuania
100
100
ASBIS D.O.O.
Slovenia
100
100
ASBIS ME FZE
United Arab Emirates
100
100
ASBIS SK SPOL S.R.O.
Slovakia
100
100
ASBC F.P.U.E.
Belarus
100
100
E.M. EURO-MALL LTD
Cyprus
100
100
ASBIS OOO (xii)
Russia
-
100
ASBIS MOROCCO SARL – dormant
Morocco
100
100
ASBIS BALTICS SIA
Latvia
100
100
ASBIS KYPROS LIMITED
Cyprus
100
100
PRESTIGIO PLAZA LTD (ii)
Cyprus
100
100
PERENIO IoT SPOL S.R.O. (v)
Czech Republic
100
100
EURO-MALL SRO (xiii)
Slovakia
100
100
ASBIS CHINA CORP.
China
100
100
EUROMALL BULGARIA EOOD – dormant (ii)
Bulgaria
100
100
ASBIS D.O.O.
Bosnia Herzegovina
90
90
ASBIS DE GmbH (i)
Germany
100
100
CJSC ASBIS
Belarus
100
100
“E-VISION” UNITARY ENTERPRISE
Belarus
100
100
ASBIS IT Solutions Hungary Kft
Hungary
100
100
I ON LLC (ii)
Ukraine
100
100
ASBC MMC
Azerbaijan
65.85
65.85
iSupport LTD (vii)
Ukraine
100
100
ASBC KAZAKHSTAN LLP (vi)
Kazakhstan
100
100
Atlantech LTD (vi)
United Arab Emirates
100
100
ASBC LLC (ii)
Georgia
100
100
i-Care LLC (ix)
Kazakhstan
100
100
Real Scientists Ltd
United Kingdom
55
55
MakSolutions LLC (xi)
Belarus
100
100
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
51
11. Investment in subsidiary companies (continued)
Subsidiary Company
Country of
incorporation
Percentage of participation
2023
2022
%
%
Breezy LLC (xi)
Belarus
100
100
Breezy Kazakhstan TOO (xi)
Kazakhstan
100
100
Breezy LLC (xi)
Ukraine
100
100
I.O.N Clinical Trading Ltd
Cyprus
100
70
R.SC. Real Scientists Cyprus Ltd
Cyprus
85
85
Breezy Trade-In Ltd
Cyprus
91.15
80
ASBIS CA LLC
Uzbekistan
100
100
Breezy Service LLC (x)
Ukraine
100
100
I.O. Clinic Latvia SIA (xiv) (xii)
Latvia
-
100
Joule Production SIA (viii)
Latvia
100
100
ASBC LLC (Armenia) (ii)
Armenia
100
100
Breezy Georgia LLC (xi)
Georgia
100
100
ASBC Entity OOO (ii)
Uzbekistan
100
100
ACEAN.PL Sp. z o.o (ii) (iv)
Poland
100
100
Entoliva Ltd (iv)
Cyprus
100
100
ASBIS HELLAS SINGLE MEMBER S.A. (iv)
Greece
100
100
Prestigio Plaza Kft (ii) (iv)
Hungary
100
100
ASBC SRL (ii) (iv)
Moldova
100
100
Breezy-M SRL (iv) (xi)
Moldova
100
100
Breezy Poland Sp. Z.o.o. (iv) (xi)
Poland
100
100
ASBIS AM LLC (iii)
Armenia
100
-
ASBIS Georgia LLC (iii)
Georgia
100
-
ASBIS AZ LLC (iii) (vi)
Azerbaijan
100
-
ASBIS s.r.l. (iii)
Moldova
100
-
Asbis Africa Pty Ltd (iii)
South Africa
100
-
ASBC Morocco s.a.r.l. (iii)
Morocco
100
-
Sarovita Ltd (iii)
Cyprus
100
-
ASBC South Africa (Pty) Ltd (ii), (iii)
South Africa
100
-
(i) Under liquidation
(ii) Held by E.M. Euro-Mall Ltd – Cyprus
(iii) Established/acquired during 2023
(iv) Established/acquired during 2022
(v) Held by Prestigio Plaza Ltd
(vi) Held by Asbis Middle East FZE
(vii) Held by Asbis Ukraine Ltd
(viii) Held by R.SC. Real Scientists Cyprus Ltd
(ix) Held by ASBC Kazakhstan LLC
(x) Held by Breezy Ltd
(xi) Held by Breezy Trade-In Ltd
(xii) Disposed during 2023
(xiii) Held by Sarovita Ltd
(xiv) Held by I.O.N Clinical Trading Ltd
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
52
12. Equity-accounted investees
The Company
As at
31 December
2023
As at
31 December
2022
US$
US$
Cost
At 1 January
1,843
1,790
Additions (i), (ii), (iii), (iv)
3,672
53
At 31 December
5,515
1,843
Accumulated share of loss from equity-accounted investees
At 1 January
(203)
(41)
Share of loss from equity-accounted investees during the year
(237)
(162)
At 31 December
(440)
(203)
Carrying amount of equity-accounted investees
5,075
1,640
(i) In December 2023, the Company acquired additional 6% shareholding in Displayforce Global Ltd (Cyprus),
for the consideration of US$ 1,921.
(ii) In December 2023, the Company acquired 20% shareholding in Blend Energy Ltd (Cyprus), for the
consideration of US$ 1,313.
(iii) In November 2023, the Company acquired 20% shareholding in Autonomics Tech Ltd (Cyprus), for the
consideration of US$ 438.
(iv) In May 2022, the Company acquired 20% shareholding in Displayforce Global Ltd (Cyprus), for the
consideration of US$ 53. The investment is accounted for as an associate.
The loan granted to associate LLC Clevetura, borne interest of 4% p.a. and has been repaid during 2022. In addition,
the Group, for the period ending 31 December 2023, acquired services for the total amount of US$ 252 (2022: US$
532) from this associate.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
53
13. Financial assets at fair value through other comprehensive income
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Financial assets at fair value through other
comprehensive income
2,376
1,515
2,376
1,515
The details of the investments are as follow
Name
Country of
incorporation
Participation
%
Cost
US$
Impairment
US$
As at
31 December
2023
As at
31 December
2022
US$
US$
Promed
Bioscience Ltd
Cyprus
16%
808
-
808
808
RSL
Revolutionary
Labs Ltd
Cyprus
15.5%
707
-
707
707
Theramir Ltd
Cyprus
4.5%
861
-
861
-
2,376
-
2,376
1,515
In January 2023, the Group and the Company acquired 4.5% of shares of Theramir Ltd.
In November 2022, the Group and the Company acquired 16% of shares of Promed Science Ltd and 15.5% shares of
RSL Revolutionary Labs Ltd.
The Group has recognized the above as investments at FVOCI as the Group intends to hold for the long term for
strategic purposes.
14. Financial assets at fair value through profit and loss
Name
Country of
incorporation
Participation
%
Cost
US$
Impairment
US$
As at
31 December
2023
As at
31 December
2022
US$
US$
KV Kinisis
Ventures fund
Raif V.V.I.V
PLC
Cyprus
-
528
-
528
-
In October 2023, the Group and the Company contributed to KV Kinisis Ventures Fund Raif.
15. Trade payables factoring facilities
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Trade payables factoring facilities
41,822
18,024
41,822
15,443
The Group and the Company participate in trade payables factoring facilities (or “supply chain financing facilities” -
“SCFs”) programs which enable the Group and the Company to obtain extended payment terms for pre-approved
suppliers. The Group incurs additional interest towards the SCFs on the amounts due to suppliers. The Company may
elect to have any of its SCFs pay its suppliers either on the discount date or on the due date and then obtain extended
payment terms from them.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
54
15. Trade payables factoring facilities (continued)
The Group discloses the amounts factored by suppliers separately from trade payables because the nature and function
of the financial liabilities is sufficiently different from a trade payable that a separate presentation is appropriate. The
payments to the bank are included within operating cash flows because they continue to be part of the normal operating
cycle of the Group and their principal nature remains operating – i.e. payments for the purchase of goods and services.
As at 31 December 2023, the Company and the Group enjoyed trade payables factoring facilities of US$ 42,000 (2022:
US$ 20,500 and US$ 31,874 respectively).
16. Inventories
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Trading goods (i)
411,788
513,418
203,853
221,481
Land development (ii)
1,987
1,386
-
-
413,775
514,804
203,853
221,481
(i) Trading goods
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Goods held for resale
367,557
449,733
173,721
196,607
Goods in transit
53,836
71,069
37,319
30,150
Provision for slow moving and obsolete stock
(9,605)
(7,384)
(7,187)
(5,276)
411,788
513,418
203,853
221,481
The Group
As at 31 December 2023, inventories pledged as security for financing purposes amounted to US$ 59,287 (2022: US$
82,547).
The Company
As at 31 December 2023, inventories pledged as security for financing purposes amounted to US$ 11,500 (2022: US$
11,500).
Movement in provision for slow moving and obsolete
stock
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
On 1 January
7,384
4,746
5,276
3,003
Provisions during the year
2,845
3,294
1,773
2,340
Provided stock written off
(620)
(554)
138
(67)
Exchange difference
(4)
(102)
-
-
On 31 December
9,605
7,384
7,187
5,276
(ii) Land development
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Land - Not under development yet
1,987
1,386
-
-
During the year ended 31 December 2022, the Group acquired two plots of land in Cyprus for a housing complex
development. During the year ended 31 December 2023, the Group acquired an additional plot of land for the same
reason. As at 31 December 2023, the project is in progress.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
55
17. Trade receivables
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Trade receivables
344,815
313,503
55,454
46,577
Prepayments to trade vendors
7,372
18,759
5,573
8,115
Allowance for doubtful debts
(6,064)
(3,331)
(4,479)
(1,378)
346,123
328,931
56,548
53,314
The Group
As at 31 December 2023, receivables of the Group that have been pledged as security for financing purposes amounted
to US$ 67,507 (2022: US$ 80,040).
The Company
As at 31 December 2023, the Company had no receivables that have been pledged as security for financing purposes.
Movement in provision for doubtful debts:
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
On 1 January
3,331
2,379
1,378
375
Provisions during the year
3,859
1,269
3,191
1,079
Amount written-off as uncollectible
(688)
(240)
(90)
(76)
Bad debts recovered
(2)
(7)
-
-
Exchange difference
(436)
(70)
-
-
On 31 December
6,064
3,331
4,479
1,378
Ageing of trade receivables
The Group
Year
Total
receivables
Outstanding
but not due
yet
Overdue
between
Overdue
between
Overdue
more than
1-30 days
30-60 days
60 days
US$
US$
US$
US$
US$
2023
344,815
300,489
26,942
1,383
16,001
2022
313,503
276,219
22,869
6,597
7,818
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
56
17. Trade receivables (continued)
The Group
Ageing of impaired receivables (provision for bad debts)
Year
Total
Outstanding
but not due
yet
Overdue
between
Overdue
between
Overdue
more
than 60
days
1-30 days
30-60 days
US$
US$
US$
US$
US$
2023
6,064
-
-
276
5,788
2022
3,331
408
6
1
2,916
The Company
Ageing of trade receivables
Year
Total
receivables
Outstanding
but not due
yet
Overdue
between
Overdue
between
Overdue
more than
1-30 days
30-60 days
60 days
US$
US$
US$
US$
US$
2023
55,454
42,507
3,592
689
8,666
2022
46,577
39,015
4,337
770
2,455
Ageing of impaired receivables (provision for bad debts)
Year
Total
Outstanding
but not due
yet
Overdue
between
Overdue
more
Overdue
more
than 60
days
1-30 days
30-60 days
US$
US$
US$
US$
US$
2023
4,479
-
-
-
4,479
2022
1,378
-
-
-
1,378
18. Other current assets
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
VAT and other taxes refundable
10,831
16,253
73
1,178
Deposits and advances to service providers
230
386
21
20
Employee floats
229
167
119
127
Other debtors and prepayments
15,826
6,780
6,848
1,380
Amount due from subsidiary companies (Note 31)
-
-
153,554
154,020
Allowance for doubtful debts from subsidiary companies
-
-
(3,790)
(2,290)
Loans due from subsidiary companies (Note 31)
-
-
3,777
3,417
27,116
23,586
160,602
157,852
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
57
19. Share capital
(for the purposes of this note the amounts are stated in full)
2023
2022
US$
US$
Authorized
63,000,000 (2022: 63,000,000) shares of US$ 0.20 each
12,600,000
12,600,000
Issued and fully paid
55,500,000 (2022: 55,500,000) ordinary shares of US$ 0.20 each
11,100,000
11,100,000
On 31 December 2023 the issued and fully paid share capital of the Company consisted of 55,500,000 ordinary shares
of US$ 0.20 each.
Following an extraordinary general meeting of the shareholders on 28
th
March 2022, a share buyback program with
the following conditions was approved:
• the maximum amount of money that can be used to realize the program is US$ 1,000,000
• the maximum number of shares that can be bought within the program is 2,000,000 shares
• the program's time frame is 12 months from the resolution date
• the shares purchased within the program could be held for a maximum of two years from acquisition
• the minimum price for transaction of purchase of shares within the program is PLN 1.0 per share with the maximum
price of PLN 30.0 per share
At the end of 2023 the Company held a total of nil (2022: 328,800) shares purchased for a nil consideration (2022:
US$ 996).
20. Short-term borrowings
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Current borrowings
Bank overdrafts (Note 30)
35,254
42,246
2,328
5,164
Current portion of long-term loans
633
224
-
-
Bank short-term loans
105,133
98,146
-
-
Current lease liabilities (Note 23)
3,179
2,393
845
751
Total short-term debt
144,199
143,009
3,173
5,915
Factoring creditors
52,794
62,287
12,672
10,654
196,993
205,296
15,845
16,569
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
58
20. Short-term borrowings (continued)
Summary of borrowings and overdraft arrangements
The Group
As at 31 December 2023 the Group had factoring facilities of US$ 104,828 (2022: US$ 199,952).
In addition, the Group as at 31 December 2023 had the following financing facilities with banks in the countries that
the Company and its subsidiaries operate:
• overdraft lines of US$ 99,846 (2022: US$ 100,237)
• short-term loans/revolving facilities of US$ 135,181 (2022: US$ 133,686)
• bank guarantees and letters of credit of US$ 48,008 (2022: US$ 41,960)
The Group had for the year ended 31 December 2023 cash lines (overdrafts, loans and revolving facilities) and factoring
lines.
The Weighted Average Cost of Debt (cash lines and factoring lines) for the year is 11.9% (2022: 10.5%).
The factoring, overdraft and revolving facilities as well as the loans granted to the Company and its subsidiaries by
their bankers are secured by:
• Floating charges over all assets of the Company
• Mortgage on land and buildings that the Group owns in Cyprus, Belarus, Middle East, Bulgaria, Slovakia and
Ukraine
• Charge over receivables and inventories
• Corporate guarantees
• Assignment of insurance policies
• Pledged deposits of US$ 27,138 (2022: US$ 20,822)
The Company
As at 31 December 2023 the Company enjoyed factoring facilities of US$ 13,000 (2022: US$ 18,000).
In addition, the Company, as at 31 December 2023 had the following financing facilities with banks:
• Overdraft facilities of US$ 33,333 (2022: US$ 31,113)
• Long-term loan facilities US$ nil (2022: US$ nil)
• Bank guarantees and letters of credit of US$ 45,893 (2022: US$ 38,906)
The Company had cash lines (overdrafts and revolving facilities) with an average cost for the year of 7.0% (2022:
6.2%).
The overdraft, revolving and factoring facilities granted to the Company are secured by:
• Floating charges over all assets of the Company
• Pledged deposits US$ 21,673 (2022: US$ 16,880)
• Mortgage on immovable properties in the amount of US$ 2,654 (2022 US$ 8,558)
21. Long-term borrowings
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Bank loans
436
553
-
-
Non-current lease liabilities (note 23)
14,227
8,630
4,824
4,412
14,663
9,183
4,824
4,412
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
59
22. Other long-term liabilities
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Other long-term liabilities
935
859
-
-
23. Lease liabilities
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Current lease liabilities (Note 20)
3,179
2,393
845
751
Non-current lease liabilities (Note 21)
14,227
8,630
4,824
4,412
17,406
11,023
5,669
5,163
24. Deferred tax
The Group
Temporary
differences
between
accounting and
tax base of PPE
and intangibles
(note i)
Tax losses
(note ii)
Other
temporary
differences
(note iii)
Total
US$
US$
US$
US$
Credit/(debit) balance on 1 January 2022
25
-
(152)
(127)
Deferred tax (charge)/credit for the year
(64)
1
67
4
Exchange difference on retranslation
-
-
(42)
(42)
(Debit)/credit balance on 31 December 2022
(39)
1
(127)
(165)
Deferred tax (charge)/credit for the year
(187)
-
17
(170)
Exchange difference on retranslation
-
-
(19)
(19)
(Debit)/credit balance on 31 December 2023
(226)
1
(129)
(354)
The Company
Temporary
differences
between
accounting and
tax base of PPE
and intangibles
(note i)
Tax losses
(note ii)
Other
temporary
differences
(note iii)
Total
US$
US$
US$
US$
Credit balance on 1 January 2022
275
-
-
275
Deferred tax charge for the year
(160)
-
-
(160)
Credit balance on 31 December 2022
115
-
-
115
Credit balance on 31 December 2023
115
-
-
115
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
60
24. Deferred tax (continued)
Note (i)
The Group and the Company
The deferred tax liability relates to excess of capital allowances over depreciation and amortization.
Note (ii)
The Group
The deferred tax asset arises from the tax losses that can be carried forward and setoff against the first available
taxable profits of the Group companies subject to the carry forward of losses restrictions stipulated in the relevant laws
of the country of each relevant subsidiary.
The Company
The deferred tax asset arises from the tax losses that can be carried forward and set-off against the first available
taxable profits of the Company.
In accordance with the Cyprus tax legislation, tax losses can be carried forward for 5 years.
Note (iii)
The Group and the Company
Other temporary differences relate mainly to different accounting bases between treatment in accordance with IFRSs
and treatment in accordance with local tax standards and mainly consist of the tax effect of unrealized profits/losses
on revaluation of working capital and of different treatment in valuing inventory.
Note (iv)
The Group and the Company
Deferred tax assets and liabilities are offset when there is a legally unforeseeable right to set-off current tax assets
against current tax liabilities and when the deferred taxes relate to the same fiscal authority.
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Deferred tax assets
(473)
(285)
-
-
Deferred tax liabilities
119
120
115
115
Net deferred tax (assets)/liabilities
(354)
(165)
115
115
25. Other current liabilities
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Salaries payable and related costs
5,355
4,305
693
515
VAT payable
11,793
8,854
125
-
Non-trade accounts payable
7,978
6,004
3,319
2,178
Accruals, deferred income and other provisions
68,601
107,213
42,886
65,746
Provision for marketing
23,273
30,182
19,116
26,032
Provision for warranties
5,203
7,465
4,386
5,313
Amount payable to subsidiary companies (Note 31)
-
-
3,228
4,522
122,203
164,023
73,753
104,306
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
61
26. Trade payables and prepayments
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Trade payables
335,869
400,283
219,808
245,310
Prepayments from customers
13,814
17,693
3,935
8,222
349,683
417,976
223,743
253,532
27. Operating segments
The Group
1.1 Segment information
The Group mainly operates in a single industry segment as a distributor of IT products. Information reported to the
chief operating decision maker for the purposes of allocating resources to the segments and to assess their performance
is based on geographical locations. The Group operates in four principal geographical areas –the Former Soviet Union,
There are varying levels of integration between the segments and includes distribution of IT products and services.
Inter-segment pricing is determined on an arm’s length basis.
1.2 Segment revenues and results
Segment revenue
Segment operating profit
2023
2022
2023
2022
US$
US$
US$
US$
Former Soviet Union
1,563,280
1,407,196
51,748
54,422
Central Eastern Europe
791,026
653,643
26,355
26,946
Middle East & Africa
425,652
407,717
20,691
21,056
Western Europe
257,372
183,088
13,074
8,151
Other
23,898
38,395
625
419
3,061,228
2,690,039
112,493
110,994
Net financial expenses (note 6)
(43,497)
(20,734)
Share of loss from equity-accounted investees (note 12)
(237)
(162)
Other gains and losses (note 4)
(3,790)
948
Profit before taxation
64,969
91,046
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
62
27. Operating segments (continued)
1.3 Segment capital expenditure (CAPEX) and depreciation & amortization
The following is an analysis of the Group’s capital expenditure in both tangible and intangible assets as well as their
corresponding charges in the income statement:
Segment CAPEX
Segment depreciation and
amortization
2023
2022
2023
2022
US$
US$
US$
US$
Former Soviet Union
13,037
10,407
2,358
1,831
Central Eastern Europe
17,570
14,510
1,940
1,570
Middle East & Africa
11,503
3,677
382
197
Cyprus
29,124
27,541
2,949
2,179
Other
1,578
31
98
10
72,812
56,166
7,727
5,787
1.4 Segment assets and liabilities
Segment assets
2023
2022
US$
US$
Former Soviet Union
436,644
408,154
Central Eastern Europe
173,688
118,280
Western Europe
173,974
210,638
Middle East & Africa
139,514
227,291
Total
923,820
964,363
Assets allocated in capital expenditure (1.3)
72,812
56,166
Other unallocated assets
15,846
42,997
Consolidated assets
1,012,478
1,063,526
For the purposes of monitoring segment performance and allocating resources between segments only assets were
allocated to the reportable segments. As the Group liabilities are mainly used jointly by the reportable segments, these
were not allocated to each segment.
1.5 Geographical information
Since the Group’s operating segments are based on geographical location and this information has been provided
above (1.2 – 1.4) no further analysis is included.
1.6. Information about major customers
It is of a strategic importance for the Group to place no reliance to any customer individually, since no customer is
accountable for material percentage of the total business.
28. Derivative financial liabilities
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Derivative financial liabilities carried at fair value through profit or loss
Foreign currency derivative contracts
702
263
648
256
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
63
28. Derivative financial liabilities (continued)
Fair value measurement of derivative financial liabilities
The Group
Nominal
amount
Nominal
amount
Fair value
Fair value
2023
2022
2023
2022
US$
US$
US$
US$
Buying US$/Selling EUR
-
12,303
-
200
Buying US$/Selling PLN
4,700
2,600
74
18
Buying US$/Selling RON
1,400
1,100
-
5
Buying US$/Selling RUB
-
-
21
-
Buying US$/Selling AZM
-
-
49
-
Buying US$/Selling GBP
-
49
-
1
Buying US$/Selling CSD
-
-
7
-
Buying US$/Selling HUF
2,800
610
87
20
Buying US$/Selling ZAR
400
-
1
-
Buying US$/Selling BGN
-
495
-
5
Buying EUR/Selling US$
22,282
40
462
2
Buying EUR/Selling HUF
-
719
-
12
Buying GBP/Selling US$
104
-
1
-
31,686
17,916
702
263
(i) The Group and the Company enter into currency derivative contracts, namely forward and future currency
derivatives, as part of their overall hedging strategy in order to minimize the exposure to foreign currency fluctuations.
(ii) A foreign currency forward derivative contract is a contractual agreement between two parties to exchange two
currencies at a given exchange rate at some point in the future. The fair value of the derivative can be either positive
(asset) or negative (liability) as a result of fluctuations in the forward exchange rates.
(iii) A foreign currency future derivative contract is a contractual agreement between two parties to buy or sell currency
at a predetermined price in the future. The fair value of the derivative can be either positive (asset) or negative (liability)
as a result of fluctuations in the period end exchange rate.
The Company
Nominal
amount
Nominal
amount
Fair value
Fair value
2023
2022
2023
2022
US$
US$
US$
US$
Buying US$/Selling PLN
4,700
2,600
74
18
Buying US$/Selling EUR
-
12,303
200
Buying US$/Selling HUF
2,800
610
86
20
Buying US$/Selling RON
1,400
1,100
21
5
Buying US$/Selling ZAR
400
-
1
-
Buying US$/Selling GBP
-
49
-
1
Buying EUR/Selling US$
22,267
-
465
-
Buying EUR/Selling HUF
-
719
-
12
Buying GBP/Selling US$
104
-
1
-
31,671
17,381
648
256
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
64
28. Derivative financial liabilities (continued)
(iv) During the year the Group realized a loss from execution of foreign currency derivative contracts of US$ 926 (2022:
gain of US$ 1,866) and the Company realized a loss of US$ 1,323 (2022: gain of US$ 1,304).
29. Derivative financial assets
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Derivative financial assets carried at fair value through profit or loss
Foreign currency derivative contracts
125
413
32
316
The Group
Nominal
amount
Nominal
amount
Fair value
Fair value
2023
2022
2023
2022
US$
US$
US$
US$
Buying US$/Selling EUR
4,116
4,346
92
106
Buying US$/Selling RON
250
750
1
2
Buying US$/Selling BGN
151
1,159
1
9
Buying US$/Selling ZAR
300
-
6
-
Buying US$/Selling PLN
300
250
-
-
Buying US$/Selling HUF
450
1,468
1
258
Buying US$/Selling BYN
-
600
-
36
Buying US$/Selling GBP
-
108
-
2
Buying EUR/Selling US$
4,557
-
24
-
Buying GBP/Selling US$
13
-
-
-
10,137
8,681
125
413
Fair value measurement of derivative financial assets
(i) The Group and the Company enter into currency derivative contracts, namely forward and future currency
derivatives, as part of their overall hedging strategy in order to minimize the exposure to foreign currency fluctuations.
(ii) A foreign currency forward derivative contract is a contractual agreement between two parties to exchange two
currencies at a given exchange rate at some point in the future. The fair value of the derivative can be either positive
(asset) or negative (liability) as a result of fluctuations in the forward exchange rates.
The Company
Nominal
amount
Nominal
amount
Fair value
Fair value
2023
2022
2023
2022
US$
US$
US$
US$
Buying US$/Selling EUR
-
1,252
-
54
Buying US$/Selling PLN
300
250
-
-
Buying US$/Selling RON
250
750
1
2
Buying US$/Selling HUF
450
1,468
-
258
Buying US$/Selling GBP
-
108
2
2
Buying US$/Selling ZAR
300
-
6
-
Buying EUR/Selling US$
4,557
-
23
-
Buying GBP/Selling US$
13
-
-
-
5,870
3,828
32
316
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
65
29. Derivative financial assets (continued)
(iii) A foreign currency future derivative contract is a contractual agreement between two parties to buy or sell currency
at a predetermined price in the future. The fair value of the derivative can be either positive (asset) or negative
(liability) as a result of fluctuations in the period end exchange rate.
(iv) During the year the Group realized a loss from execution of foreign currency derivative contracts of US$ 926 (2022:
gain of US$ 1,866) and the Company realized a loss of US$ 1,323 (2022: gain of US$ 1,304).
30. Cash and cash equivalents
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Cash at bank and in hand
143,560
134,598
54,720
64,375
Bank overdrafts (Note 20)
(35,254)
(42,246)
(2,328)
(5,164)
108,306
92,352
52,392
59,211
The Group
The cash at bank and in hand balance includes an amount of US$ 27,138 (2022: US$ 20,822) which represents pledged
deposits against financial facilities granted and margin accounts for foreign exchange hedging.
The Company
The cash at bank and in hand balance includes an amount of US$ 21,673 (2022: US$ 16,880) which represents pledged
deposits.
31. Related party transactions and balances
Main shareholders
The following table presents shareholders possessing directly or indirectly more than 5% of the Company’s shares and
shares held by the Company under the share buyback program as at 31 December:
Name
2023
2023
2022
2022
Number of
Votes/share
Number of
Votes/share
votes/shares
capital
votes/shares
capital
%
%
Siarhei Kostevitch and KS Holdings Ltd
20,448,127
36.84
20,448,127
36.83
Asbisc Enterprises Plc (share buyback program)
-
-
328,800
0.59
Free float
35,051,873
63.16
34,723,073
62.58
55,500,000
100.00
55,500,000
100.00
Transactions and balances between the Company and its subsidiaries have been eliminated on consolidation.
The Company
In the normal course of business, the Company undertook during the year transactions with its subsidiary companies
and had year end balances as follows:
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
66
31. Related party transactions and balances (continued)
Intercompany (trading) transactions
Sales of goods
Purchases of goods
2023
2022
2023
2022
US$
US$
US$
US$
Subsidiaries
1,223,368
1,280,224
59,794
61,676
Sales of services
Purchases of services
2023
2022
2023
2022
US$
US$
US$
US$
Subsidiaries
2,374
422
32,661
29,395
Intercompany (trading) balances
Amounts owed by
subsidiary companies
Amounts owed to
subsidiary companies
2023
2022
2023
2022
US$
US$
US$
US$
Subsidiaries
149,764
151,730
3,228
4,522
Loans to subsidiary companies
2023
2022
US$
US$
Loans to subsidiary companies (Note 17)
3,777
3,417
The total loans to subsidiary companies before provision for doubtful loans are unsecured and analyzed below:
Subsidiary companies
Interest rate
Source
currency
2023
2022
%
US$
US$
Joule Production SIA (ii)
2
Euro
-
386
I.O. Clinic Latvia SIA (iii)
2
Euro
-
63
R.SC Real Scientists Cyprus Ltd (iv)
2.5
Euro
191
180
CJSC ASBIS (i)
4
US Dollar
-
1,068
Entoliva Ltd (v) (vi)
3.75
Euro
2,303
1,720
Breezy Trade In Ltd (vii)
5
US Dollar
1,193
-
Breezy Poland (viii)
5
Euro
90
-
3,777
3,417
The total interest received from subsidiary companies is analyzed below:
2023
2022
US$
US$
I.O. Clinic Latvia SIA (iii)
-
14
R.SC Real Scientists Cyprus Ltd (iv)
4
4
Joule Production SIA (ii)
3
10
CJSC ASBIS (i)
19
42
Entoliva Ltd (v)
52
14
Breezy Trade-In Ltd
10
-
Breezy Poland Sp. Z.o.o.
2
-
90
84
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
67
31. Related party transactions and balances (continued)
(i) CJSC ASBIS entered into a loan agreement with the Company on the 24th of November 2014, with the
obligation to settle the loan by 30
th
of September 2023. The loan has been settled during 2023.
(ii) Joule Production SIA entered into two loan agreements with the Company on the 29
th
of July 2021 and 25
th
of October 2021 with the obligation to settle the loan by 31
st
of December 2023 and 31
st
of December 2024
accordingly. The loans have been settled during 2023.
(iii) I.O. Clinic Latvia SIA entered into a loan agreement with the Company on the 24
th
of June 2021, with the
obligation to settle the loan by 31
st
of December 2023. The loan has been settled during 2023.
(iv) R.SC Real Scientists Cyprus Ltd SIA entered into a loan agreement with the Company on the 1
st
of March
2021, with the obligation to settle the loan by 1
st
of March 2024. The loan maturity date is renewed every
year until full repayment. The loan is unsecured.
(v) Entoliva Ltd entered into a loan agreement with the Company on the 26
th
of August 2022, with the obligation
to settle the loan by 25
th
of August 2024. The loan maturity date is renewed every year until full repayment.
The loan is unsecured.
(vi) Entoliva Ltd entered into a loan agreement with the Company on the 30
th
of May 2023 with the obligation to
settle the loan by 30
th
of May 2024. The loan is unsecured.
(vii) Breezy Trade-In Ltd entered into a loan agreement with the Company on the 7
th
of June 2023, with the
obligation to settle the loan by 31
st
of December 2024. The loan is unsecured.
(viii) Breezy Poland Sp. Z.o.o. entered into a loan agreement with the Company on the 19
th
of July 2023, with the
obligation to settle the loan by 19
th
of July 2025. The loan is unsecured.
Financial guarantees liabilities
2023
2022
US$
US$
Financial guarantee liabilities granted to subsidiaries
1,012
881
The Company provides free of charge financial guarantee services to its subsidiaries. The Company accounted for such
financial guarantees as for financial guarantee contracts in accordance with IFRS 9. Financial guarantee facilities of
subsidiaries are mainly presented by overdrafts and factoring contracts, thus financial guarantee liability recognized in
short-term.
Transactions and balances of key management
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Directors’ remuneration and benefits - executive
1,753
1,650
1,753
1,650
Directors’ remuneration - non-executive
74
25
74
25
Key management remuneration
In capacity as other key management personnel
1,696
1,874
494
456
Employer’s contributions - provident fund
10
9
8
7
Employer’s contributions - social insurance and
other benefits
193
182
42
30
3,726
3,740
2,371
2,168
Share-based payment arrangements
As at 31 December 2022, the Group had the following share-based payment arrangement:
Following an extraordinary general meeting of the shareholders on the 28
th
of March 2022, a share buyback program
with the following conditions was approved:
Share option program (equity-settled)
• the maximum amount of money that can be used to realize the program is US$ 1,000
• the maximum number of shares that can be bought within the program is 2,000,000 shares
• the program's time frame is 12 months from the resolution date
• the shares purchased within the program could be held for a maximum of two years from acquisition
• the minimum price for transaction of purchase of shares within the program is PLN 1.0 per share with the
maximum price of PLN 30.0 per share
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
68
31. Related party transactions and balances (continued)
At the end of 2023 the Company held a total of nil (2022: 328,800) shares purchased for a nil consideration (2022:
US$ 996) (note 19).
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Salaries and other benefits
95,581
76,389
18,776
12,507
The average number of employees for the year was
2,673
2,222
301
220
32. Commitments and contingencies
The Group
As at 31 December 2023 the Group was committed in respect of purchases of inventories of a total cost value of US$
36,552 (2022: US$ 32,603) which were in transit at 31 December 2023 and delivered in January 2024. Such inventories
and the corresponding liability towards the suppliers have not been included in these financial statements since,
according to the terms of purchase, title of the goods has not passed to the Group at year end.
As at 31 December 2023 the Group was contingently liable to banks in respect of bank guarantees and letters of credit
lines of US$ 48,008 (2022: US$ 41,960) (note 20) which the Group has extended to its suppliers and other
counterparties.
As at the 31
st
of December 2023 the Group had no other capital or legal commitments and contingencies.
The Company
As at 31 December 2023 the Company was committed in respect of purchases of inventories of a total cost value of
US$ 36,552 (2022: US$ 32,603) which were in transit at 31 December 2023 and delivered in January 2024. Such
inventories and the corresponding liability towards the suppliers have not been included in these financial statements
since, according to the terms of purchase, title of the goods has not passed to the Company at year end.
As at 31 December 2023 the Company was contingently liable to banks in respect of bank guarantees and letters of
credit of US$ 45,893 (2022: US$ 38,906) (note 20) which the Company has extended to its suppliers and other
counterparties.
The liabilities towards the Company’s suppliers covered by these guarantees are reflected in the financial statements
under trade payables.
In addition, the Company has issued corporate guarantees to banks in respect of financing facilities extended to its
subsidiaries in the amount of US$ 202,399 (2022: US$ 176,223).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
69
33. Earnings per share
2023
2022
US$
US$
Profit for the year attributable to members
52,956
75,870
Weighted average number of shares for the purposes of basic and diluted earnings
per share
55,500,000
55,500,000
US$ cents
US$ cents
Basic and diluted from continuing operations (expressed in US$)
34. Business combinations
The Group
1. Incorporations and acquisitions
1.1 Incorporations and acquisitions of subsidiaries to 31 December 2023
During the period the Group has acquired and incorporated the following subsidiaries.
Name of entity
Type of operations
Date acquired
% acquired
%
owned
Breezy Trade-In Ltd (Cyprus)
Information Technology
30 May 2023
11.15%
91.15%
ASBIS Africa Proprietary Limited (South Africa)
Information Technology
01 June 2023
81%
100%
Name of entity
Type of operations
Date incorporated
%
incorporated
%
owned
ASBIS Georgia LLC (Georgia)
Information Technology
02 June 2023
100%
100%
ASBIS AM LLC (Armenia)
Information Technology
06 June 2023
100%
100%
ASBIS s.r.l. (Moldova)
Information Technology
16 June 2023
100%
100%
ASBIS AZ LLC (Azerbaijan)
Information Technology
20 June 2023
100%
100%
ASBC Morocco (Morocco)
Information Technology
20 June 2023
100%
100%
Sarovita Ltd (Cyprus)
Information Technology
25 December 2023
100%
100%
ASBC SA (South Africa)
Information Technology
25 December 2023
100%
100%
Incorporations and acquisitions of subsidiaries to 31 December 2022
During the period the Group has incorporated 100% of the share capital of the following subsidiaries:
Name of entity
Type of operations
Date acquired/
incorporated
%
acquired/
incorporated
%
owned
ACEAN.PL Sp. z.o.o (Poland)
Information Technology
12 April 2022
100%
100%
Entoliva Ltd (Cyprus)
Land Development
8 August 2022
100%
100%
Breezy Poland (Poland)
Information Technology
18 November 2022
100%
100%
ASBC SRL (Moldova)
Information Technology
8 November 2022
100%
100%
ASBIS Hellas Single Member S.A. (Greece)
Information Technology
18 November 2022
100%
100%
Prestigio Plaza Kft. (Hungary)
Information Technology
24 November 2022
100%
100%
Breezy-M SRL (Moldova)
Information Technology
8 December 2022
100%
100%
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
70
34. Business combinations (continued)
1.a. Acquired assets and liabilities
The net carrying value of underlying separately identifiable assets and liabilities transferred to the Group at the date
of acquisition was as follows:
As at
31 December
2023
As at
31 December
2022
US$
US$
Tangible and intangible assets
1
-
Inventories
733
-
Receivables
1,839
-
Other receivables
150
-
Short-term loans
(10)
-
Payables
(340)
-
Other payables and accruals
(3,369)
-
Cash and cash equivalents
1,213
-
Net identifiable assets
217
-
Group’s interest in net assets acquired
176
-
Total purchase consideration
(380)
-
Goodwill capitalized in statement of financial position
204
-
1.2. Goodwill arising on acquisitions
2023
2022
US$
US$
At 1 January
372
595
Additions (i)
204
-
Disposals
-
(201)
Foreign exchange difference on retranslation
32
(22)
At 31 December
608
372
(i) During the period, goodwill of US$ 204 was recognized from the acquisition of ASBIS Africa Proprietary
Limited.
The capitalized goodwill arose from the business combinations of the following subsidiaries:
2023
2022
US$
US$
ASBIS d.o.o. (BA)
386
372
ASBIS Africa Proprietary Limited
222
-
608
372
1.3. Impairment testing
For ASBIS d.o.o. (BA), a detailed impairment analysis was performed and based on the results it has been concluded
that no impairment is required.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
71
34. Business combinations (continued)
2. Liquidations and disposals
Liquidations and disposals of subsidiaries to 31 December 2023
During the year, ASBIS PL SP. z o.o. and I.O. Clinic Latvia SIA has been disposed of and a gain of US$ 1 and US$ 9
respectively arose on the events. In addition, ASBIS OOO was disposed of and a loss of US$1,159 arose on the event.
Name of disposed entity
Type of operations
Date liquidated
% liquidated
ASBIS PL SP. z o.o. (Poland)
Information Technology
25 October 2023
100%
Name of disposed entity
Type of operations
Date disposed
% sold
ASBIS OOO (Russia)
Information Technology
31 October 2023
100%
I.O. Clinic Latvia SIA (Latvia)
Information Technology
21 December 2023
100%
Liquidations of subsidiaries to 31 December 2022
During the year, the following subsidiaries have been liquidated and disposed of and gain of US$ 1 arose on the event.
Name of disposed entity
Type of operations
Date liquidated
% liquidated
Private Educational Institution “Center of
excellence in Education for executives
and specialists in Information
Technology (Belarus)
Information Technology
19 May 2022
100%
Name of disposed entity
Type of operations
Date disposed
% sold
LLC Must (Russia)
Information Technology
29 July 2022
100%
35. Financial risk management
1. Financial risk factors
In this note, references to the Group also relate to the Company.
The Group’s activities expose it to credit risk, interest rate risk, liquidity risk and currency risk arising from the financial
instruments it holds. The risk management policies employed by the Group to manage these risks are discussed below:
1.1. Credit risk
Credit risk is defined as the risk of failure of debtors to discharge their obligations towards the Group. The Group sets
up and maintains specific controls to mitigate its credit risk, as it realizes its importance for the Group’s viability.
The Group had established and systematically follows a thorough procedure prior to registering new customers into its
system. Every new customer is checked both internally and via various reputable credit sources prior to such
registration and, more importantly, prior to granting of any credit. The Group runs an internal credit department
consisting of local, regional and corporate credit managers. Corporate managers decide for all significant credit line
requests and review the work of regional and local managers. The Group uses all available credit tools – i.e. credit
insurance, credit information bureaus, letters of guarantee – to safeguard itself from the credit risk. The Group has
insured the majority of receivables during 2023.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
72
35. Financial risk management (continued)
It is of a strategic importance for the Group to place no reliance to any customer individually, since no customer is
accountable for material percentage of the total business.
Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit
insurance is purchased. The credit risk on liquid funds and derivative financial instruments is determined by the credit
ratings assigned to the financial institutions with which these funds are held.
The ageing profile of trade receivables is disclosed in note 17.
The tables below show an analysis of the Group's and Company’s bank deposits at year end by credit rating of the
bank in which they are held:
The Group
2023
2022
Based on credit ratings by Moody's; the cash at banks the Group held as at year end
are:
US$
US$
Aa3
2,275
2,365
A1
18,879
5,503
A2
21,868
22,517
A3
18,438
22,969
Baa1
393
431
Baa3
8,835
13,928
Ba1
2,151
234
Ba2
2,807
791
Ba3
710
481
B1
22,511
14,402
B2
2,797
105
B3
2
3
Without credit rating
41,894
50,869
143,560
134,598
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
73
35. Financial risk management (continued)
The Company
2023
2022
Based on credit ratings by Moody's, the cash at banks the Company held as at year
end are:
US$
US$
A1
14,763
5,484
A2
19,606
21,733
A3
-
20,343
B1
18,304
15,248
Without credit rating
2,047
1,567
54,720
64,375
Impairment on cash and cash equivalents has been measured on a twelve-month expected loss basis and reflects short
maturities of the exposures. The Group and the Company consider that its cash and cash equivalents have low credit
risk based on the external credit ratings of the counterparties and there is no material impact on the Group’s and
Company’s financial statements.
Trade receivables and contract assets
Expected credit loss assessment based on collective model net of specific provision as at 31 December 2023 and 2022
are:
The Group
2023
2023
2023
2022
2022
2022
Default
rate
Gross
carrying
amount
Loss
allowance
Default
rate
Gross carrying
amount
Loss
allowance
%
US$
US$
%
US$
US$
Outstanding but not due yet
0.04
300,489
111
0.02
276,219
64
Overdue between 1-30 days
0.12
26,942
34
0.06
22,869
13
Overdue between 30-60 days
0.99
1,383
14
1.54
6,597
101
Overdue more than 60 days
5.21
16,001
833
7.18
7,818
561
344,815
992
313,503
739
The Company
2023
2023
2023
2022
2022
2022
Default
rate
Gross
carrying
amount
Loss
allowance
Default
rate
Gross
carrying
amount
Loss
allowance
%
US$
US$
%
US$
US$
Outstanding but not due yet
0.01
156,263
15
0.00
172,217
8
Overdue between 1-30 days
0.02
25,456
5
0.02
11,987
3
Overdue between 30-60 days
0.11
6,553
7
0.08
6,460
5
Overdue more than 60 days
15.66
20,736
3,247
18.32
9,326
1,708
209,008
3,274
199,990
1,724
Loss rates are based on actual credit loss experience over the past four years.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
74
35. Financial risk management (continued)
1.2. Interest rate risk
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest
rates. The Group’s income and operating cash flows are dependent on changes in market interest rates. The Group
deposits excess cash and borrows at variable rates. The Group’s management monitor the interest rate fluctuations on
a continuous basis and act accordingly.
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Variable rate instruments
Overdrafts
35,254
42,246
2,328
5,164
Short-term loans
105,766
98,370
-
-
Long-term loans
436
553
-
-
Factoring advances
52,794
62,287
12,672
10,654
194,250
203,456
15,000
15,818
At the reporting date the profile of interest-bearing financial instruments was:
Sensitivity analysis
An increase of 100 basis points in interest rates at 31 December 2023 would have decreased by the amounts shown
below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant, as well as
it assumes that financial facilities outstanding at the end of the reporting period were also outstanding for the whole
year. For a decrease of 100 basis points there would be an equal and opposite impact on the profit and loss. The
figures below are before tax.
figures below are before tax.
Profit & loss
The Group
The Company
2023
2022
2023
2022
US$
US$
US$
US$
Variable rate instruments
Overdrafts
353
422
23
51
Short-term loans
1,058
984
-
-
Long-term loans
4
6
-
-
Factoring advances
528
623
127
107
1,942
2,035
150
158
1.3. Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position
potentially enhances profitability but can also increase the risk of losses. The Group has procedures with the object of
minimizing such losses such as maintaining sufficient cash and other highly liquid current assets and by having available
an adequate amount of committed credit facilities.
The following tables detail the remaining contractual maturity for financial liabilities. The tables have been drawn up
based on the earliest date on which the Group/Company can be required to pay and include only principal cash flows.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
75
35. Financial risk management (continued)
The Group
31 December 2023
Carrying
amounts
Contractual
cash flows
3 months or
less
3-12 months
1-2 years
2-5 years
US$
US$
US$
US$
US$
US$
Bank loans
106,202
106,202
95,037
10,730
139
296
Bank overdrafts (Note 20)
35,254
35,254
8,695
26,559
-
-
Factoring creditors (Note
20)
52,794
52,794
14,824
37,970
-
-
Lease liabilities (Note 23)
17,406
17,406
702
2,477
3,756
10,471
Trade and other payables
476,032
476,032
473,386
2,646
-
-
Trade payables factoring
facilities (Note 15)
41,822
41,822
41,822
-
-
-
Other short and long-term
liabilities
1,637
1,637
702
-
163
772
731,147
731,147
635,168
80,382
4,058
11,539
31 December 2022
Carrying
amounts
Contractual
cash flows
3 months or
less
3-12 months
1-2 years
2-5 years
US$
US$
US$
US$
US$
US$
Bank loans
98,924
98,924
86,410
11,961
107
446
Bank overdrafts (Note 20)
42,246
42,246
6,451
35,795
-
-
Factoring creditors (Note
20)
62,287
62,287
60,118
2,169
-
-
Lease liabilities (Note 23)
11,023
11,023
573
1,820
2,071
6,559
Trade and other payables
585,601
585,601
575,923
9,678
-
-
Trade payables factoring
facilities (Note 15)
18,024
18,024
18,024
-
-
-
Other short and long-term
liabilities
1,122
1,122
264
-
150
708
819,227
819,227
747,763
61,423
2,328
7,713
The Company
31 December 2023
Carrying
amounts
Contractual
cash flows
3 months or
less
3-12 months
1-2 years
2-5 years
US$
US$
US$
US$
US$
US$
Bank overdrafts (Note 20)
2,328
2,328
2,328
-
-
-
Factoring creditors (Note 20)
12,672
12,672
12,672
-
-
-
Lease liabilities (Note 23)
5,669
5,669
100
745
1,374
3,450
Trade and other payables
299,915
299,915
299,915
-
-
-
Trade payables factoring
facilities
41,822
41,822
41,822
-
-
-
Other short and long-term
liabilities
648
648
648
-
-
-
363,054
363,054
357,485
745
1,374
3,450
31 December 2022
Carrying
amounts
Contractual
cash flows
3 months or
less
3-12 months
1-2 years
2-5 years
US$
US$
US$
US$
US$
US$
Bank overdrafts (Note 20)
5,164
5,164
5,164
-
-
-
Factoring creditors (Note 20)
10,654
10,654
10,654
-
-
-
Lease liabilities (Note 23)
5,163
5,163
182
569
666
3,746
Trade and other payables
360,244
360,244
360,244
-
-
-
Trade payables factoring
facilities
15,443
15,443
15,443
-
-
-
Other short and long-term
liabilities
256
256
256
-
-
-
396,924
396,924
391,943
569
666
3,746
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
76
35. Financial risk management (continued)
1.4. Currency risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates.
Currency risk arises when future commercial transactions and recognized assets and liabilities are denominated in a
currency that is not the Group’s/Company’s measurement currency.
The Group uses short-term derivative financial instruments to minimize the risk on balances and material transactions
denominated in currencies other than US Dollars, the Group’s reporting currency. As a significant portion of the Group’s
cash flow is denominated in Russian Ruble, Euro and other local currencies (i.e. the Czech Crown, the Polish Zloty, the
Hungarian Forint, etc.), the Group raises debt in such currencies in order to hedge against foreign exchange risk.
The carrying amounts of the monetary assets and monetary liabilities at the reporting date are denominated in the
following currencies:
The Group
31 December 2023
Cash at bank
and in hand
Receivables
Trade and
other
liabilities
Borrowings
US$
US$
US$
US$
US Dollar
65,030
16,097
(250,777)
(13,682)
Euro
27,480
85,253
(86,330)
(42,577)
Russian Ruble
65
786
(682)
-
Polish Zloty
903
11,897
(6,750)
(3,419)
Czech Koruna
2,852
13,017
(5,589)
(6,378)
Belarusian Ruble
557
12,066
(8,145)
(4,015)
Romanian New Lei
351
7,445
(1,969)
(2,969)
Bulgarian Lev
1,488
6,671
(1,489)
(5,821)
Hungarian Forint
760
1,970
(503)
(101)
Kazakhstan Tenge
3,538
79,989
(26,214)
(69,115)
Ukrainian Hryvnia
21,316
70,895
(64,562)
(34,879)
Bosnian Mark
788
5,211
(551)
(3,478)
United Arab Emirates Dirham
14,280
28,910
(15,992)
(21,622)
Other
4,152
7,029
(7,300)
(3,599)
143,560
347,236
(476,853)
(211,655)
The Group
31 December 2022
Cash at bank
and in hand
Receivables
Trade and
other
liabilities
Borrowings
US$
US$
US$
US$
US Dollar
66,049
28,873
(321,943)
(10,304)
Euro
8,442
79,840
(85,874)
(47,167)
Russian Ruble
6,626
29,532
(17,320)
(10,793)
Polish Zloty
728
6,932
(3,242)
(2,383)
Czech Koruna
2,522
8,680
(3,342)
(6,400)
Belarusian Ruble
790
5,095
(2,784)
(14,505)
Romanian New Lei
483
6,173
(1,278)
(2,589)
Bulgarian Lev
218
4,095
(1,358)
(3,841)
Hungarian Forint
228
1,421
(542)
(61)
Kazakhstan Tenge
2,993
86,006
(33,197)
(70,297)
Ukrainian Hryvnia
34,761
43,181
(81,681)
(25,161)
Bosnian Mark
728
4,338
(664)
(3,441)
United Arab Emirates Dirham
4,626
19,313
(25,487)
(13,199)
Other
5,404
7,738
(7,273)
(4,338)
134,598
331,217
(585,985)
(214,479)
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
77
35. Financial risk management (continued)
The Company
31 December 2023
Cash at bank
and in hand
Receivables
Trade and
other
liabilities
Borrowings
US$
US$
US$
US$
US Dollar
41,431
177,333
(292,052)
(13,682)
Euro
12,450
32,643
(5,509)
(6,987)
Czech Koruna
662
-
(1,588)
-
British Pound
34
136
(928)
-
Polish Zloty
143
-
(494)
-
Other
-
9
(108)
-
54,720
210,121
(300,679)
(20,669)
31 December 2022
Cash at bank
and in hand
Receivables
Trade and
other
liabilities
Borrowings
US$
US$
US$
US$
US Dollar
59,371
187,490
(357,711)
(10,304)
Euro
4,310
21,141
(1,119)
(10,677)
Czech Koruna
414
-
(586)
-
British Pound
231
145
(867)
-
Polish Zloty
49
-
(335)
-
Other
-
-
2
-
64,375
208,776
(360,616)
(20,981)
The Company is not exposed to any material foreign exchange risk, as most of its operations are conducted in US
Dollars, the Company’s reporting currency. Any exposure to foreign exchange risk is restricted to monetary assets
denominated in foreign currencies, mainly Euro, Czech Koruna, British Pound and Polish Zloty, and this risk is mitigated
by the appropriate use of currency derivative contracts.
2. Fair values
The Group and the Company
Financial instruments comprise financial assets and financial liabilities. Financial assets mainly consist of bank balances,
receivables and investments. Financial liabilities mainly consist of trade payables, factoring balances, bank overdrafts
and loans. The Directors consider that the carrying amount of the Company’s/Group’s financial instruments
approximate their fair value at the reporting date. Financial assets and financial liabilities carried at fair value through
profit or loss represent foreign currency derivative contracts categorized as a Level 2 (quoted prices (unadjusted) in
active markets for identical assets or liabilities) fair value hierarchy.
3. Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximizing the return to stakeholders through optimization of debt and equity. The Group’s overall strategy remains
unchanged from 2022.
The capital structure of the Group consists of debt, which includes borrowings, cash and cash equivalents and equity
attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.
Gearing ratio
The Group’s risk management committee reviews the capital structure on a semi-annual basis. As part of this review,
the committee considers the cost of capital and the risk associated with it.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
78
35. Financial risk management (continued)
The Group
The net gearing ratio at the year-end was as follows:
2023
2022
US$
US$
Debt (i)
194,250
203,456
Cash at bank and in hand
(143,560)
(134,598)
Net debt
50,690
68,858
Equity (ii)
281,212
244,180
Net debt to equity ratio
18.03%
28.20%
(i) Debt includes short-term (factoring advances, overdrafts and short-term loans) and long-term
borrowings.
(ii) Equity includes all capital and reserves.
(i) Debt includes short-term (factoring advances, overdrafts and short-term loans) and long-term
borrowings.
(ii) Equity includes all capital and reserves.
4. Fair value estimation
The table below analyses financial instruments carried at fair value by valuation method. The different levels have been
defined as follows:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs) (level 3).
The following table presents the fair value hierarchy of the Group’s and the Company's assets as at 31 December:
31 December 2023
The Group
The Company
2023
2023
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
US$
US$
US$
US$
US$
US$
Assets
Derivative financial assets
-
125
-
-
32
-
Financial assets at fair value
through other comprehensive
income
-
-
2,376
-
-
2,376
Financial assets at fair value
through profit and loss
528
-
-
528
-
-
528
125
2,376
528
32
2,376
Liabilities
Derivative financial liabilities
-
702
-
-
648
-
The Company
The net gearing ratio at the year-end was as follows:
2023
2022
Balance sheet and notes
US$
US$
Debt (i)
15,000
15,818
Cash at bank and in hand
(54,720)
(64,375)
Net debt
(39,720)
(48,557)
Equity (ii)
171,002
152,236
Net debt to equity ratio
-
-
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
79
35. Financial risk management (continued)
31 December 2022
The Group
The Company
2022
2022
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
US$
US$
US$
US$
US$
US$
Assets
Derivative financial assets
-
413
-
-
316
-
Financial assets at fair value
through other comprehensive
income
-
-
1,515
-
-
1,515
-
413
1 515
-
316
1,515
Liabilities
Derivative financial liabilities
-
263
-
-
256
-
The fair value of financial instruments that are not traded in an active market (for example, unlisted equity securities)
is determined by using valuation techniques. These valuation techniques maximize the use of observable market data
where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair
value an instrument are observable, the instrument is included in level 2.
36. Other risks
Operational risk
Operational risk is the risk that derives from the deficiencies relating to the Group’s/Company’s information technology
and control systems as well as the risk of human error and natural disasters. The Group’s/Company’s systems are
evaluated, maintained and upgraded continuously.
Compliance risk
Compliance risk is the risk of financial loss, including fines and other penalties, which arises from non-compliance with
laws and regulations of the state. The risk is limited to a significant extent due to the supervision applied by the
Compliance Officer, as well as by the monitoring controls applied by the Group/Company.
Litigation risk
Litigation risk is the risk of financial loss, interruption of the Group’s operations or any other undesirable situation that
arises from the possibility of non-execution or violation of legal contracts and consequentially of lawsuits. The risk is
restricted through the contracts used by the Group/Company to execute its operations.
Reputation risk
The risk of loss of reputation arising from the negative publicity relating to the Group’s/Company’s operations (whether
true or false) may result in a reduction of its clientele, reduction in revenue and legal cases against the Group. The
Group/Company applies procedures to minimize this risk.
Other risks
The general economic environment may affect the Group’s/Company’s operations to a great extent. Concepts such as
inflation, unemployment, and development of the gross domestic product are directly linked to the economic course
of every country and any variation in these and the economic environment in general may create chain reactions in all
areas hence affecting the Group/Company.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(in thousands of US$)
80
37. Dividends
Our dividend policy is to pay dividends at levels consistent with our growth and development plans, while maintaining
a reasonable level of liquidity. During the year, the following dividends were declared and paid by the Company:
• A final dividend of US$ 0.25 per share for the year 2022, amounting to US$ 13,875
• An interim dividend of US$ 0.20 per share for the year 2023, amounting to US$ 11,100
During 2022, the following dividends were declared and paid by the Company:
• A final dividend of US$ 0.10 per share for the year 2021, amounting to US$ 5,550
• An interim dividend of US$ 0.20 per share for the year 2022, amounting to US$ 11,100
The Board of Directors also proposes the payment of a final dividend of US$ 0.30 per share for the year 2023,
amounting to US$ 16,665 .