1. Reporting Entity
Eden Finance p.l.c. (the 'Company') is a public limited liability company incorporated and domiciled in Malta. The registered office of the Company is Eden Place, St. Augustine Street, St. George's Bay, St. Julians. These financial statements were approved for issue by the board of directors on 28 April 2026.
6.2 \u00a0Parent company
The Company is a subsidiary of Eden Leisure Group Limited, the registered office of which is situated at Eden Place, St. Augustine Street, St. Julian's, Malta.
Consolidated financial statements are prepared by Eden Leisure Group Limited and are available for public use.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11971938": { "value": "2. Basis of Preparation
Compliance with IFRS
The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and in accordance with the requirements of the Companies Act (Cap. 386) enacted in Malta.\u00a0
Basis of measurement
These financial statements have been prepared on a historical cost basis as modified to include fair values where it is stated in the accounting policies.
Going Concern
The Directors are satisfied that the Company have sufficient funds in order to meet all its obligations as and when they fall due over the foreseeable future and it is therefore appropriate to continue to adopt the going concern basis in the preparation of financial statements.
Change in presentation
With effect from these financial statements, the Company has elected to present its notes by giving prominence to the areas of its activities that the directors consider to be most relevant to an understanding of the Company's financial performance and financial position. \u00a0\u00a0\u00a0The company has revised the presentation of its accounting policy disclosures by integrating them within the relevant notes to the financial statements. This change relates solely to the presentation of disclosures and has no impact on the recognition, measurement or comparability of amounts presented.
Standards, interpretations and amendments to published standards effective in 2025
In 2025, the Company adopted new standards, amendments and interpretations to existing standards that are mandatory for the Company's accounting period beginning on 1 January 2025. The Company has applied the following amendments for the first time for its annual reporting period commencing from 1 January 2025:
\u2022 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability - Amendments to IAS 21
The amendments listed above did not have any impact to the amounts recognised in prior periods and the current period and are not expected to significantly affect future periods. \u00a0The adoption of these revisions to the requirements of IFRSs as adopted by the EU did not result in substantial changes to the Company's accounting policies.
Standards, interpretations and amendments to published standards that are not yet effective
Certain new accounting standards and amendments to accounting standards have been published that are not effective for 31 December 2025 reporting periods and have not been early adopted by the Company. The Company's assessment of the impact of these new standards and amendments is set out below
Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 (effective for annual periods beginning on or after 1 January 2026)
On 30 May 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent questions arising in practice, and to include new requirements not only for financial institutions but also for corporate entities. These amendments:
clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
add new disclosures for certain instruments with contractual terms that can change cashflows (such as some financial instruments with features linked to the achievement of environment, social and governance targets);
add new disclosures for certain instruments with contractual terms that can change cashflows (such as some financial instruments with features linked to the achievement of environment, social and governance targets); and
update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI)
The Company does not expect these amendments to have a material impact on its operations or financial statements.\u00a0
IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 1 January 2027)
IFRS 18 will replace IAS 1\u00a0Presentation of financial statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management-defined performance measures within the financial statements.
The Company does not expect there to be a significant change in the information that is currently disclosed in the notes because the requirement to disclose material information remains unchanged.
Use of judgements and estimates
The preparation of financial statements requires the use of accounting estimates which, by definition, will likely differ from the actual results. Management also needs to exercise judgement in applying the company's accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to final outcomes deviating from estimates and assumptions made. \u00a0Information about key judgements made in applying accounting policies, together with estimates made at the reporting date, that have the most significant effects on the amounts recognised in these financial statements is set out below.
Expected credit loss allowances on loan receivable \u00a0
The Directors have assessed the recoverability of loans receivable by reference to the cashflow projections of the Company including planned inflows, outflows and available financing facilities with a focus on updates made to respond to the expected impacts of past events, current conditions and forecasts of economic conditions. The Directors have also considered the financial position and performance of the other related parties within the Group.
Presentation currency
These consolidated financial statements are presented in Euro, which is also the Company's functional and presentation currency. \u00a0All figures are rounded to the nearest \u20ac1.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11971939": { "value": "Compliance with IFRS
The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and in accordance with the requirements of the Companies Act (Cap. 386) enacted in Malta.\u00a0
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11971940": { "value": "Going Concern
The Directors are satisfied that the Company have sufficient funds in order to meet all its obligations as and when they fall due over the foreseeable future and it is therefore appropriate to continue to adopt the going concern basis in the preparation of financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11974060": { "value": "Use of judgements and estimates
The preparation of financial statements requires the use of accounting estimates which, by definition, will likely differ from the actual results. Management also needs to exercise judgement in applying the company's accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to final outcomes deviating from estimates and assumptions made. \u00a0Information about key judgements made in applying accounting policies, together with estimates made at the reporting date, that have the most significant effects on the amounts recognised in these financial statements is set out below.
Expected credit loss allowances on loan receivable \u00a0
The Directors have assessed the recoverability of loans receivable by reference to the cashflow projections of the Company including planned inflows, outflows and available financing facilities with a focus on updates made to respond to the expected impacts of past events, current conditions and forecasts of economic conditions. The Directors have also considered the financial position and performance of the other related parties within the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11971942": { "value": "Presentation currencyThese consolidated financial statements are presented in Euro, which is also the Company's functional and presentation currency. \u00a0All figures are rounded to the nearest \u20ac1.", "dimensions": { "concept": "ifrs-full:DescriptionOfPresentationCurrency", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11971943": { "value": "3.1\u00a0Financial assets\u00a0
Overview
The Company recognises a financial asset initially at fair value in its statement of financial position when it becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the company has transferred substantially all the risks and rewards of ownership.
The Company's debt instruments principally comprise a loan to the Company's parent and an investment in a related party's preference shares, which have been assessed as having the characteristics of debt instruments. Cash flows on these instruments represent solely payments of principal and interest. All other investments in debt instruments are managed to collect the contractual cash flows and are accordingly measured at amortised cost.
The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance, measured in accordance with the company's accounting policy 'Impairment of financial assets' further below.\u00a0
Trade and other receivables
Trade receivables are amounts due from related parties on the loan interest charged. They are generally due for settlement within a year and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional. The Company holds the receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.\u00a0
2025 | 2024 | |
\u00a0Loans and advances | \u20ac | \u20ac |
\u00a0Non-current | ||
\u00a0Loan granted to parent company | 40,000,000 | 40,000,000 |
\u00a0Redeemable preference shares (ii) | 1,164,687 | 1,164,687 |
41,164,687 | 41,164,687 |
2025 | 2024 | |
\u00a0Other receivables | \u20ac | \u20ac |
\u00a0Current | ||
\u00a0Accrued interest on loan granted to parent company (i) | 1,134,000 | 1,134,000 |
\u00a0Other receivables owed by parent company (ii) | 489,729 | 594,218 |
\u00a0Prepayments | 11,517 | 11,518 |
1,634,978 | 1,739,736 |
i) Loan granted to parent company
These represent the funds raised by the bond issue (note 3.2.1) in 2017 which have been advanced to Eden Leisure Group Limited at an annual interest rate of 4.2% per annum (2024: 4.2% p.a). The loan is unsecured.
This loan represents a \u20ac40,000,000 4% bond, the proceeds of which were used to redeem the remaining maturing bonds of 6.6% 139,840 with a nominal value of \u20ac100 each bond. The remaining proceeds were loaned to the parent company. The loan is repayable \u00a0in full by the 28 April 2027.\u00a0
Eden Leisure Group Limited, the guarantor in respect of the Company's bond issue has undertaken to pay all amounts of principal and interest that will become due and payable by the Company to bondholders under the bonds. \u00a0\u00a0\u00a0\u00a0\u00a0
These loans rank pari passu without any priority or preference within all other present and future unsecured and unsubordinated obligations of the parent company to which the loans have been advanced.\u00a0
The carrying amount of the loan is considered a reasonable approximation of their fair value.\u00a0
No loss allowance has been recognised as any such impairment would be insignificant
ii) Redeemable preference shares
This investment represents 100% holding of the 5.5% redeemable preference shares of \u20ac2.329373 each within Eden Entertainment Limited, a commonly controlled entity. \u00a0
iii) Other receivables owed by parent company
These advances are interest free, unsecure and repayable on demand.
3.1.1 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at face value. For the purposes of the cash flow statement, cash and cash equivalents comprise cash in hand and deposits held at call with banks. Cash and cash equivalents included in the statement of cash flows comprise the following amounts in the statement of financial position:
Cash and cash equivalents
2025 | 2024 | |
\u20ac | \u20ac | |
\u00a0Cash at bank | 95,976 | 1,612 |
The balances of cash and cash equivalents are available for use by the Company in their entirety.
3.1.2 Credit risk exposure from financial assets
Credit risk arises from cash and cash equivalents, deposits with banks, investments at FVOCI and FVPL, as well as credit risk exposures to customers, including outstanding receivables and committed transactions. The carrying amount of the financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:
2025 | 2024 | |
\u20ac | \u20ac | |
\u00a0Carrying amounts | ||
\u00a0Loans receivable | 41,164,687 | 41,164,687 |
\u00a0Accrued interest on loan granted to parent company\u00a0 | 1,134,000 | 1,134,000 |
\u00a0Other receivables owed by parent company\u00a0 | 489,729 | 594,218 |
\u00a0Cash at hand and in bank | 95,976 | 1,612 |
42,884,392 | 42,894,517 |
The above assets are subject to an expected credit loss (\"ECL\") model for the purposes of providing for credit losses. The general ECL model requires management to make complex judgments and estimates about the credit risk of counterparties and the expected future recoverability of financial assets. The model incorporates a forward-looking view of credit losses, using historical data, current conditions, and reasonable and supportable forecasts of future economic conditions.
ECLs are measured on either a 12-month or lifetime basis depending on whether there has been a significant increase in credit risk since initial recognition. The assessment involves:
\u2022 \u00a0\u00a0\u00a0\u00a0The related party's financial position and liquidity
\u2022 \u00a0\u00a0\u00a0\u00a0Strategic or operational importance of the relationship
\u2022 \u00a0\u00a0\u00a0\u00a0Any indications of restructuring, dispute, or repayment delays
\u2022 \u00a0\u00a0\u00a0\u00a0Evaluating the financial health and repayment ability of counterparties\u00a0
Loan Receivable
The Company apply IFRS 9's general impairment model to its Loans and receivables. This model requires an assessment as to whether the counterparty has experienced a significant increase in credit risk since initial recognition. This assessment forms the basis as to whether lifetime ECL should be recognised and is based on significant increases in the likelihood or risk of a default occurring since initial recognition.
The Company monitor intra-group credit exposures at individual entity level on a regular basis and ensure timely performance of these assets in the context of its overall liquidity management. The loss allowances for these financial assets are based on assumptions about risk of default and expected loss rates. The Company's management uses judgement in making these assumptions, based on the counterparty's past history, existing market conditions, as well as forward-looking estimates at the end of each reporting period. \u00a0
Management has completed an analysis which considers both historical and forwardlooking qualitative and quantitative information, to determine if the loan receivable and the relevant interest receivable have low credit risk. In this analysis, management also considers factors that would demonstrate whether credit risk on the loan receivable has increased significantly since initial recognition. \u00a0
Management has furthermore prepared cash flow forecasts for the coming 10-year period and it expects that the parent company to whom the Company granted the loan will have sufficient cash throughout that period to meet all of its working capital and other obligations, including repayment of the interest on the loan receivable. Management does not expect there to be adverse changes in economic and business conditions over the same period which would reduce the ability of these related parties to repay the loan receivable.
Consequently, management has determined that there are no indications that credit risk over the life of the loans receivable has increased significantly since initial recognition or is expected to increase significantly in the next 12 months. Thus, loans receivable have low credit risk and the loan receivable falls within 'stage 1' of IFRS 9's impairment model and 12-month expected credit losses can be calculated.
Since the Group is not credit-rated, management has decided to use the probability of default ('PD') for lowest rating for an investment grade loan to assess whether a material impairment provision is required for the loan receivable and other related party transactions. Management used the 12-month PDs and also considered that even though the turbulences of the current macro-economy might impact the industry in which the parent company operates, the parent company has a sound financial position including excess cash and therefore the historical rates are broadly reflective of their future expectations of default rates. Forward-looking information are also taken into consideration by management in their analysis including forecasted economic conditions (such as GDP and inflation). Central Bank of Malta forecasts are captured in this analysis.
Debt investment - redeemable preference shares
The company's debt investment - redeemable preference shares is considered to have low credit risk, and the loss allowance recognised during the period was therefore limited to 12 months' expected losses. Management considered to be low credit risk as it has a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term.
Cash at bank\u00a0
The Company banks only with local financial institutions with high quality standing or rating.\u00a0
The Company's cash, including both that classified as cash and cash equivalents, and as deposits, is placed with reputable financial institutions, such that management does not expect any institution to fail to meet repayments of amounts held in the name of the Company. There was no increase in credit risk since origination of these balances and a 12 month ECL approach was applied. While cash and cash equivalents and deposits are also subject to the impairment requirements of IFRS 9, the identified impairment loss was insignificant.\u00a0
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11971944": { "value": "3.2.1 Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost. Any difference between the proceeds and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.
\u00a0\u00a0\u00a0\u00a0\u00a0 | 2025 | 2024 | ||
\u20ac | \u20ac | |||
\u00a0Non-current | ||||
\u00a0Bonds | 40,000,000 | 40,000,000 | ||
Current | ||||
Accrued interest on bond | 1,080,000 | 1,080,000 | ||
Interest Rate | Repayable by | 2025 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u20ac | 2024 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u20ac | |
\u00a0Bond\u00a0 | 4.0% | 28 April 2027 | 40,000,000 | 40,000,000 |
Debt securities in issue
The bonds are measured at the amount of net proceeds adjusted for the amortisation of the difference between the net proceeds and the redemption value of such bonds, using effective yield method.\u00a0
Following a company announcement made on 28 March 2017, Eden Finance p.l.c. issued an aggregate principal amount of \u20ac40 million Bonds (2027), having a nominal value of \u20ac100 each, bearing interest at 4.0%. These bonds are unsecured pursuant and subject to the terms and conditions in the prospectus dated 27th March 2017. The quoted market price as at 31st December 2025 for the 4.0% Bonds (2027) was \u20ac98 (2024: \u20ac100.50). The directors are of the opinion that this price represents the fair value of these liabilities; as at balance sheet date, the fair value of the bonds therefore amounts to \u20ac39,200,000 (2024: \u20ac40,200,000). \u00a0The fair value calculation is classified within Level 1 of IFRS 13's fair value hierarchy.
Transaction costs directly related to the bond issuance were recharged and borne by the parent company, Eden Leisure Group.\u00a0
Finance costs
Borrowing costs include the costs incurred in obtaining external financing. Borrowing costs are recognised as an expense in profit or loss in the period in which they are incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11971945": { "value": "3.2.2 Other payables
Other payables are classified with current liabilities and are stated at their nominal value unless the effect of discounting is material, in which case trade payables are measured at amortised cost using the effective interest method.
2025 | 2024 | |
\u20ac | \u20ac | |
Other payables | 5,308 | 17,037 |
Accruals | 100,373 | 101,738 |
105,681 | 118,775 |
3.2.3 Liquidity risk exposure from financial liabilities
The Company is exposed to liquidity risk in relation to meeting future obligations associated with its financial liabilities, which comprise principally debt securities in issue and trade and other payables disclosed in notes 3.2.1 and 3.2.2. Prudent liquidity risk management includes maintaining sufficient cash and committed credit lines to ensure the availability of an adequate amount of funding to meeting the Company's obligations.\u00a0
The Company forms part of Eden Leisure Group. The Company has advanced amounts borrowed by way of bonds to its parent company. This implies that the Company will receive settlement of interest receivable from the parent company in order to be able to meet its interest payable as they fall due. \u00a0\u00a0
The Directors monitor liquidity risk by means of cash flow forecasts on the basis of expected cash flows over a twelve-month period, in order to ensure that adequate funding is in place in order for the Company to be in a position to meet its commitments as and when they will fall due.
The table below analyses the Company's financial liabilities into relevant maturity groupings based on the remaining period at the end of the reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.
2025 | 2024 | |
\u20ac | \u20ac | |
Within 1 year: | ||
Other payables | 105,681 | 118,775 |
Borrowings | 1,600,000 | 1,600,000 |
1,705,681 | 1,718,775 | |
Between 2 and 5 years: | ||
Borrowings | 41,600,000 | 43,200,000 |
41,600,000 | 43,200,000 |
3.3 Financial risk management
The Company's activities potentially expose it to a variety of financial risks on its financial assets and financial liabilities. The key components of financial risks to the Company are market risk (namely, cash flow interest rate risk), credit risk and liquidity risk. The company's overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the company's financial performance.
The exposures to credit risk and to liquidity risk, together with the management thereof, are disclosed in notes 3.1.3 and 3.2.3 respectively. \u00a0This note provides information about market risk.
Market risk is the risk that changes in market prices, such as interest rates, and quoted prices, will affect the company's income or financial position. The objective of the company's market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.
Cash flow and fair value interest rate risk
The Company's transactions mainly consist of earning interest income on the loan affected from the proceeds of the secured bonds issue and servicing its borrowings. The Company's principal interest-bearing financials instruments, which consist of a loan to a group undertaking and secured bonds issued to financial institutions and the general public, are subject to fixed interest rates. The Company's operating income and cash flows are substantially independent of changes in market interest rates and on this basis, the directors consider the potential impact on profit or loss of a defined interest rate shift that is reasonably possible at the end of the reporting period to be insignificant5.2 Capital risk management
The Company's objectives when managing capital are to safeguard its ability to continue as a going concern and to maximise the return to stakeholders through the optimisation of the debt and equity balance.
The capital structure consists of items presented within equity in the statement of financial positions.\u00a0
The Company's directors manage the Company's capital structure and make adjustments to it, in light of changes in economic conditions. The capital structure is reviewed on an ongoing basis. Based on recommendations of the directors, the Company balances its overall capital structure through the payments of dividends, new share issues as well as the issue of new debt or the redemption of existing debt.
The Company's overall strategy remains unchanged from the prior year.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11972481": { "value": "4.1 Income tax
Current and deferred tax is recognised in profit or loss, except when it relates to items recognised in other comprehensive income or directly in equity, in which case the current and deferred tax is also dealt with in other comprehensive income or in equity, as appropriate.
Current tax is based on the taxable result for the period. The taxable result for the period differs from the result as reported in profit or loss because it excludes items which are non-assessable or disallowed and it further excludes items that are taxable or deductible in other periods. It is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. However, deferred tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled.
The deferred tax liability in relation to investment property that is measured at fair value is determined assuming the property will be recovered entirely through sale.
Deferred tax in relation to the revaluation of land and buildings is charged or credited to other comprehensive income (to the extent that the revaluation is recognised in other comprehensive income). For buildings, deferred tax is recognised on the basis that the tax will be recovered through use (i.e. the corporate rate of tax in Malta), whilst land is expected to be recovered through sale. Deferred income tax on the difference between the actual depreciation on the property and the equivalent depreciation based on the historical cost of the property is realised through the income statement.\u00a0
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets, including deferred tax assets for unused tax losses and unused tax credits carried forward, are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences (or the unused tax losses and unused tax credits) can be utilised to the period when the asset is realised or the liability is settled based on the tax rates that have been enacted by the balance sheet date. Deferred tax assets and liabilities are offset when the Group's Companies have a legally enforceable right to settle its current tax assets and liabilities on a net basis.
Income tax has been provided for at the rate of 35% on the taxable income for the year.
2025 | 2024 | |
\u20ac | \u20ac | |
\u00a0Consieration for group loss relief | 1,598 | 715 |
The income tax expense for the year is calculated on the Company's taxable income at the rate of 35% applicable in Malta, the Company's country of incorporation. \u00a0
2025 | 2024 | |
\u20ac | \u20ac | |
The tax expense and the tax charge using the statutory | ||
Income tax rate of 35% are reconciled as follows: | ||
Profit \u00a0before taxation | 4,566 | 2,793 |
Tax at 35% | 1,598 | 977 |
Group loss relief | - | (262) |
Tax charge | 1,598 | 715 |
4.2 Deferred Taxation
Deferred taxes are calculated on all temporary differences under the liability method using a principal tax rate of 35%. The analysis of deferred tax balances, and the movement in the deferred tax account, is as follows:
2025 | 2024 | |
\u20ac | \u20ac | |
At the beginning of the year | - | 715 |
Movement in absorbed tax losses and capital allowances | - | (715) |
At the end of the year | - | - |
Effect recognised in: | ||
Deferred tax movements recognised in profit or loss | - | 715 |
At the end of the year | - | 715 |
4.3 Interest income
The amounts recognised within this line item includes interest income recognised using the effective interest method on loans advanced the Company's parent. \u00a0The effective interest rate on the instrument is 4.2%.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11972484": { "value": "4.4 Expenses
Administrative expenses are classified by their nature as follows:
2025 | 2024 | |
\u20ac | \u20ac | |
Directors' fees | 24,000 | 24,000 |
Stock exchange charges | 32,858 | 33,408 |
Legal and professional fees | 8,224 | 7,569 |
Other expenses | 10,352 | 12,232 |
75,434 | \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a077,209 |
Profit before tax for the Company is stated after charging the following fees in relation to services provided by the external auditors of the Company:
\u00a0\u00a0\u00a0\u00a0\u00a02025 | \u00a0\u00a0\u00a02024 | |
\u20ac | \u20ac | |
Annual statutory audit | 6,195 | 6,195 |
5.1 Share Capital \u00a0\u00a0\u00a0\u00a0
Ordinary shares issued by the Company are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.
Ordinary shares issued by the Company
2025 | 2024 | |
\u20ac | \u20ac | |
Authorised Share Capital | ||
500,000 Ordinary Shares of \u20ac2.329373 each | 1,164,687 | 1,164,687 |
\u00a0Issued and Fully Paid Up | ||
\u00a0500,000 Ordinary Shares of \u20ac2.329373 each | 1,164,687 | 1,164,687 |
6.1 Related party transactions
Related party transactions are entered into on a commercial basis with entities which are related by way of common shareholders who are able to exercise significant influence over the Company's operations.
Transactions with these companies principally include advances affected by the Company out of the bond issue proceeds as disclosed in Note 3.1 to the financial statements. Interest receivable earned from these transactions is disclosed in Note 4.3 and year end balances in this respect are disclosed in Note 3.1 to the financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "v1-page5-tbl_11.tr_0.tc_0-tag11995524": { "value": "6.3 Subsequent events
There were no events after year-end which would require adjustment or disclosure in the annual financial statements of the Company.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:2138006ZLE74ESSXZM67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } } } }