Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

The accompanying notes are an integral part of these consolidated financial statements. 1

	Note	2023	2022
Sales of services	5	486,646	440,107
Raw materials and consumables used		(35,467)	(32,956)
Employee charges and benefits expenses	6	(142,391)	(126,330)
Other operating expenses	7	(113,242)	(104,265)
Depreciation of owned assets	16	(55,466)	(48,473)
Depreciation of right-of-use assets	17	(14,305)	(13,573)
Amortisation of intangible assets	18	(1,997)	(2,389)
Gain on disposal of property, plant and equipment		1,713	100
Foreign exchange gains on monetary items		246	1,620
Operating profit		125,737	113,841
Share of results of joint ventures and associates	15	6,447	3,165
Returns on investment portfolio	5	28,302	(47,947)
Investment portfolio management fees		(2,996)	(3,047)
Other income	5	7,798	6,631
Finance costs	8	(35,425)	(34,509)
Profit before tax		129,863	38,134
Tax expense	9	(27,609)	(26,656)
Profit for the year		102,254	11,478
Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss
Post-employment benefits remeasurement	23	32	93
Purchase price adjustment of associate	15	-	159
Items that will be or may be reclassified subsequently to profit or loss
Exchange differences arising on translation of foreign operations		8,831	7,137
Other comprehensive income for the year		8,863	7,389
Total comprehensive income for the year		111,117	18,867
Profit/(loss) for the year attributable to:
Equity holders of the Company		66,230	(18,675)
Non-controlling interests	28	36,024	30,153
		102,254	11,478
Total comprehensive income/(loss) for the year attributable to:
Equity holders of the Company		71,241	(14,484)
Non-controlling interests	28	39,876	33,351
		111,117	18,867
Earnings per share:
Basic and diluted	30	187.3c	(52.8)c

Consolidated Statement of Financial Position

At 31 December 2023

(Expressed in thousands of US Dollars)

The accompanying notes are an integral part of these consolidated financial statements. 2

	Note	2023	2022
Current assets
Cash and cash equivalents	10	69,367	77,873
Investment portfolio	11	308,340	272,931
Recoverable taxes	9	47,708	34,515
Trade receivables	12	65,694	54,537
Other current assets	13	13,281	9,908
Inventories	14	18,171	17,579
		522,561	467,343
Non-current assets
Other receivables	12	13,041	12,632
Other non-current assets	13	5,792	6,197
Recoverable taxes	9	20,680	15,143
Investment in joint ventures and associates	15	96,084	81,863
Deferred tax assets	9	22,827	21,969
Property, plant and equipment	16	614,099	589,629
Right-of-use assets	17	198,508	178,699
Other intangible assets	18	13,858	14,392
Goodwill	19	13,597	13,420
		998,486	933,944
Total assets		1,521,047	1,401,287
Current liabilities
Trade and other payables	21	(71,768)	(58,337)
Bank loans	22	(70,856)	(59,881)
Tax liabilities	9	(10,831)	(10,290)
Lease liabilities	17	(28,783)	(24,728)
		(182,238)	(153,236)
Net current assets		340,323	314,107
Non-current liabilities
Bank loans	22	(253,345)	(262,010)
Deferred tax liabilities	9	(65,596)	(49,733)
Lease liabilities	17	(195,503)	(171,448)
Provisions for legal claims	24	(7,322)	(8,997)
Post-employment benefits	23	(2,047)	(1,737)
		(523,813)	(493,925)
Total liabilities		(706,051)	(647,161)
Capital and reserves
Share capital	26	11,390	11,390
Retained earnings		675,999	634,910
Translation reserve		(86,703)	(91,692)
Equity attributable to equity holders of the Company		600,686	554,608
Non-controlling interests	28	214,310	199,518
Total equity		814,996	754,126

Signed on behalf of the Board

F. Beck A. Berzins

Director Director

Consolidated Statement of Changes in Equity

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

The accompanying notes are an integral part of these consolidated financial statements. 3

				Attributable to
		Retained	Translation	equity holders	Non- controlling
	Share capital	earnings	reserve of the Company		interests	Total equity
Balance at 1 January 2022	11,390	678,006	(95,739)	593,657	190,015	783,672
Currency translation adjustment	–	–	4,0 47	4,0 47	3,0 90	7,1 37
Post-employment benefits (note 23)	–	54	–	54	39	93
Purchase price adjustment of associate (note 15)	–	90	–	90	69	159
(Loss)/profit for the year	–	(18,675)	–	(18,675)	30,153	11,478
Total comprehensive (loss)/income for the year	–	(18,531)	4,047	(14,484)	33,351	18,867
Dividends (notes 28, 29)	–	(24,754)		(24,754)	(25,173)	(49,927)
Equity transactions in subsidiaries (note 27)	–	189	–	189	1,325	1,514
Balance at 31 December 2022	11,390	634,910	(91,692)	554,608	199,518	754,126
Balance at 1 January 2023	11,390	634,910	(91,692)	554,608	199,518	754,126
Currency translation adjustment	–	–	4,989	4,989	3,842	8,831
Post-employment benefits (note 23)	–	22	–	22	10	32
Profit for the year	–	66,230	–	66,230	36,024	102,254
Total comprehensive income for the year	–	66,252	4,989	71,241	39,876	111,117
Dividends (notes 28, 29)	–	(24,754)	–	(24,754)	(25,248)	(50,002)
Equity transactions in subsidiaries (note 27)	–	(409)	–	(409)	164	(245)
Balance at 31 December 2023	11,390	675,999	(86,703)	600,686	214,310	814,996

Translation reserve

The translation reserve arises from exchange differences on the translation of operations with a functional currency other than US Dollars.

Amounts in the statement of changes in equity are stated net of tax where applicable.

Consolidated Statement of Cash Flows

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

The accompanying notes are an integral part of these consolidated financial statements. 4

	Notes	2023	2022
Operating activities
Profit for the year		102,254	11,478
Adjustment for:
Depreciation and amortisation	16,17,18	71,768	64,435
Gain on disposal of property, plant and equipment	16	(1,713)	(100)
Provisions for legal claims	24	(2,326)	90
Share of results of joint ventures and associates	15	(6,447)	(3,165)
Returns on investment portfolio	5	(28,302)	47,947
Other income	5	(7,798)	(6,631)
Finance costs	8	35,425	34,509
Foreign exchange gains on monetary items		(246)	(1,620)
Share based payment expense in subsidiary	27	306	334
Post-employment benefits	23	185	(170)
Tax expense	9	27,609	26,656
Changes in:
Inventories	14	(592)	(5,282)
Trade and other receivables	12,25	(11,561)	(5,687)
Other current and non-current assets	9,24	(2,968)	(13,753)
Trade and other payables	9,21	13,426	2,057
Interest paid	8,17	(32,385)	(30,143)
Taxes paid	9	(27,900)	(22,070)
Net cash inflow from operating activities		128,735	98,885
Investing activities
Income received from financial assets	5	9,820	14,558
Purchase of investment portfolio assets	11	(42,674)	(68,715)
Proceeds on disposal of investment portfolio assets	11	33,545	85,641
Purchase of property, plant and equipment	16	(65,136)	(63,268)
Proceeds on disposal of property, plant and equipment	16	1,958	726
Purchase of intangible assets	18	(1,132)	(1,386)
Investment in joint ventures and associates	15	(7,520)	(17,016)
Net cash used in investing activities		(71,139)	(49,460)
Financing activities
Dividends paid to equity holders of the Company	29	(24,754)	(24,754)
Dividends paid to non-controlling interests in subsidiary	28	(25,248)	(25,173)
Repayments of bank loans principal	22	(61,148)	(49,349)
Payments of lease liabilities	17	(10,087)	(8,591)
New bank loans drawn down	22	53,259	59,793
Shares repurchased in subsidiary	27	(2,338)	(2,549)
Issue of new shares in subsidiary under employee share option plan	27	1,787	3,729
Net cash used in financing activities		(68,529)	(46,894)
Net (decrease)/increase in cash and cash equivalents		(10,933)	2,531
Cash and cash equivalents at beginning of year		77,873	71,883
Effect of foreign exchange rate changes		2,427	3,459
Cash and cash equivalents at end of year		69,367	77,873

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

5

1 General Information

Ocean Wilsons Holdings Limited (“Ocean Wilsons” or the “Company”) is a Bermuda investment holding company which,

through its subsidiaries, operates a maritime services company in Brazil and holds a portfolio of international investments.

The Company is incorporated in Bermuda under the Companies Act 1981 and the Ocean Wilsons Holdings Limited Act,

1991. The Company’s registered office is Clarendon House, 2 Church Street, Hamilton, Bermuda. These consolidated

financial statements comprise the Company and its subsidiaries (the “Group”).

These consolidated financial statements were approved by the Board on 21 March 2024.

2 Material accounting policies and critical accounting judgements

Basis of accounting

These consolidated financial statements have been prepared in accordance with International Financial Reporting

Standards (“IFRSs”) and are presented in US Dollars, which is the Company’s functional currency. All amounts have been

rounded to the nearest thousand, unless otherwise indicated.

These consolidated financial statements have been prepared on the historical cost basis, except for the revaluation of

financial instruments and defined health benefit plan liabilities that are measured at fair value.

Basis of consolidation

These consolidated financial statements incorporate the financial statements of the Company and entities controlled by the

Group. The Group controls an entity when it is exposed to, or has the 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. The financial statements of subsidiaries are prepared in accordance with the accounting policies set out in

note 2. All intra-group transactions and balances are eliminated on consolidation.

Non-controlling interests consist of the amount of those interests at the date of the original business combination and the

non-controlling interests’ share of changes in equity since the date of the combination. Where a change in percentage of

interests in a controlled entity does not result in a change of control, the difference between the consideration paid for the

additional interest and the book value of the net assets in the subsidiary at the time of the transaction is taken directly to

equity. When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any

related non-controlling interests and other components of equity. Any resulting gain or loss is recognised in profit or loss.

Any interest retained in the former subsidiary is measured at fair value when control is lost.

Joint ventures and associates

A joint venture is a contractual agreement where the Group has joint control and has rights to the net assets of the

contractual arrangement, rather than being entitled to specific assets and liabilities arising from the agreement. An associate

is an entity in which the Group has significant influence, but not control or joint control, over the financial and operating

policies.

Investments in joint ventures and associates are accounted for using the equity method and are initially recognised at cost.

The Group’s share in the profit or loss and other comprehensive income of the joint ventures and associates is included in

these consolidated financial statements, until the date that significant influence or joint control ceases.

Foreign currency

The functional currency of each entity of the Group is established as the currency of the primary economic environment in

which it operates. Transactions other than those in the functional currency of the entity are translated at the exchange rate

prevailing at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange

rate at the reporting date. Non-monetary items that are measured based on historical cost in a foreign currency are

translated at the exchange rate at the date of the transaction. Exchange differences arising on the settlement and on the

translation of monetary items are included in profit or loss for the period.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

6

On consolidation, the statement of profit or loss and comprehensive income of entities with a functional currency other than

US Dollars are translated into US Dollars, at the average exchange rates for the period. Statement of financial position items

are translated into US Dollars at the exchange rate at the reporting date. Exchange differences arising on consolidation of

entities with functional currencies other than US Dollars are recognised in other comprehensive income and accumulated

in the translation reserve, less the translation difference allocated to non-controlling interest.

Sales of services

Revenue derived from sales of services is measured based on the consideration specified in a contract with a customer for

goods and services provided in the normal course of business, net of trade discounts and sales related taxes, and is

recognised when the performance obligation towards the customer is satisfied.

Typically, revenue from providing agency and logistics services is recognised when the agreed services have been

performed and revenue from providing towage services, vessel turnarounds, container movement and associated services

is recognised on the date that the services have been performed. Revenue related to services and construction contracts

is recognised throughout the period of the project when the work in proportion to the stage of completion of the transaction

contracted has been performed.

The timing of when performance obligations are satisfied by type of revenue derived from sales of service is as follows:

Performance obligation	Timing of revenue recognition
Towage and ship agency services	At a point in time
Port Terminals	At a point in time
Logistics	At a point in time
Shipyard	Over time

There are no significant judgements in the determination of when performance obligations are satisfied.

Employee charges and benefits

Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount

expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service

provided by the employee and the obligation can be estimated reliably.

Defined contribution plan

Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid

contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.

Defined health benefit plans

The Group’s net obligation regarding defined health benefit plans is calculated separately for each plan by estimating the

amount of future benefit that employees receive in return for their service in the current period and prior periods. That health

benefit is discounted to determine its present value. The calculation of the liability of the defined health benefit plan is

performed annually by a qualified actuary using the projected unit credit method. Remeasurements of the net defined health

benefit obligation, which include actuarial gains and losses, are immediately recognised in other comprehensive income.

The Group determines the net interest expense on the net defined benefit liabilities for the period by multiplying them by

the discount rate used to measure the defined health benefit obligations. Defined health benefit liabilities for the period take

into account any changes during the period due to the payment of contributions and benefits. Net interest and other

expenses related to defined health benefit plans are recognised in profit or loss. When the benefits of a health plan are

changed, the portion of the change in benefits relating to past services rendered by employees is recognised immediately

in profit or loss. The Group recognised gains and losses on the settlement of a defined health benefit plan when settlement

occurs.

Termination benefits

Termination benefits are recognised as an expense when the Group can no longer withdraw the offer of such benefits. If

payments are settled after 12 months from the reporting date, then they are discounted to their present values.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

7

Finance income and finance costs

Interest income or expense is recognised in profit or loss using the effective interest method.

Taxation

Tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to items

recognised directly in equity or in other comprehensive income, in which case the tax is also recognised directly in equity

or in other comprehensive income.

Current tax is based on taxable profit for the year. Taxable profit differs from profit as reported in the consolidated statement

of profit or loss and other comprehensive income because it excludes or includes items of income or expense that are

taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s current

tax expense is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for

financial reporting purposes and the amounts used for taxation purposes. Deferred tax is generally recognised for all taxable

temporary differences except for when the Group is able to control the reversal of the temporary difference and it is probable

that the temporary difference will not reverse in the foreseeable future. Deferred tax is not recognised if the temporary

difference arises from goodwill or from the initial recognition of assets or liabilities in a transaction that is not a business

combination and that affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the

extent that it is probable that future taxable profits will be available against which they can be used. 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 the related tax benefit will be realised. Prior reductions are reversed when the probability of future taxable profits

improves.

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 is recognised, based on tax rates and tax laws that have been enacted or substantively enacted by

the end of the reporting period. The measurement of deferred tax reflects the tax consequences that would follow from the

manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

The Group offsets current tax assets against current tax liabilities when these items are in the same entity and relate to

taxes levied by the same taxation authority and the taxation authority permits the Group to make or receive a single net

payment.

Financial instruments

Recognition and initial measurement

Trade and other receivables are initially recognised when they are originated. All other financial assets and financial liabilities

are initially recognised when the Group becomes a party to the contractual provisions of the instruments. Trade and other

receivables are initially measured at the transaction price which reflects fair value. All other financial assets and financial

liabilities are initially measured at fair value plus transaction costs that are directly attributable to their acquisition or issue.

Classification and subsequent measurement

Management determines the classification of its financial instruments at the time of initial recognition. The classification

depends on the purpose for which the financial instruments were acquired or issued, their characteristics and the Group’s

designation of such instruments.

Financial assets are classified as measured at amortised cost if they are not designated as at fair value through profit and

loss and if they are held within a business model whose objective is to hold assets to collect contractual cash flows and if

the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the

principal amount outstanding. These assets are subsequently measured at amortised cost using the effective interest

method, reduced by any impairment losses. Interest income, foreign exchange gains and losses and impairment are

recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Financial assets are classified as measured at fair value through profit and loss if they are not classified as measured at

amortised cost, or if they are designated as such by management on initial recognition. Financial assets held for trading are

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

8

classified as measured at fair value through profit and loss. These assets are subsequently measured at fair value. Net

gains and losses, including any interest or dividend income, are recognised in profit or loss.

The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level

because this best reflects the way the business is managed and information is provided to management. The information

considered includes the stated policies and objectives for the portfolio, how the performance of the portfolio is evaluated

and reported to the Group’s management, and the risks that affect the performance of the business model and how those

risks are managed. In assessing whether the contractual cash flows are solely payments of principal and interest, the Group

considers the contractual terms of the instrument, including assessing whether the financial asset contains a contractual

term that could change the timing or amount of contractual cash flows such that it would not meet this condition.

Financial liabilities are classified as at fair value through profit and loss when the financial liability is either held for trading

or it is designated as such by management on initial recognition. Financial liabilities that are not classified as at fair value

through profit and loss are classified as other financial liabilities and are subsequently measured at amortised cost using

the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any

gain or loss on derecognition is also recognised in profit or loss.

The classification the Group applies to each of its significant categories of financial instruments is as follows:

Financial instruments	Classification
Cash and cash equivalents	At fair value through profit and loss
Investment portfolio assets	At fair value through profit and loss
Trade and other receivables	Amortised cost
Trade and other payables	Other financial liabilities
Bank loans	Other financial liabilities

Cash and cash equivalents comprise cash on hand and short-term investments that are highly liquid, readily convertible to

known amounts of cash without being subject to material risk of changes in value, and not kept within a managed investment

portfolio as part of a broader investment strategy.

Derecognition

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire or when it

transfers the rights to receive the contractual cash flows in a transaction in which the Group either substantially transfers all

of the risks and rewards of ownership of the financial asset 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 asset.

The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire. The Group

also derecognises 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 recognised at fair value.

Impairment of financial assets

The Group considers a financial asset to be in default when internal or external information indicates that the Group is

unlikely to receive the outstanding contractual amounts. A financial asset is written off when there is no reasonable

expectation of recovering the contractual cash flows and impairment losses are recognised in profit and loss. If, in a

subsequent period, an event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed

through profit and loss.

Inventories

Inventories are measured at the lower of cost and net realisable value. Cost comprises direct materials, and where

applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present

location and condition. Net realisable value represents the estimated selling price less all estimated costs of completion and

costs to be incurred in marketing, selling and distribution.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

9

Property, plant and equipment

Property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated

depreciation and any accumulated impairment losses. Subsequent expenditure is recognised only when it is probable that

the future economic benefits associated with the expenditure will flow to the Group.

Depreciation is calculated to write off the cost less the estimated residual value of items of property, plant and equipment,

other than land or assets under construction, over their estimated useful lives, using the straight-line method. Land is not

depreciated, and assets under construction are not depreciated until they are transferred to the appropriate category of

property, plant and equipment when the assets are ready for intended use. Depreciation is recognised in profit or loss.

The estimated useful life of the different categories of property, plant and equipment are as follows:

Category	Useful life
Buildings	25 to 35 years
Leasehold Improvements	5 to 52 years 1
Floating Craft	25 years
Vehicles	5 to 10 years
Plant and Equipment	10 to 20 years

1

shorter of the rental period or the useful life of the underlying asset

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period with

the effect of any changes in estimate accounted for on a prospective basis.

An item of property, plant and equipment is derecognised 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 disposal or retirement of property, plant and

equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is

recognised in profit or loss.

Lease arrangements

At inception of a contract, the Group assesses whether it is a lease or contains a lease component, which it is if the contract

conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

At the lease commencement date, the Group recognises a right-of-use asset and a lease liability. The right-of-use asset is

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, less any incentives received.

The lease liability is initially measured at the present value of the lease payments unpaid at the commencement date 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 applies the incremental borrowing rate. For a portfolio of leases with similar characteristics, lease

liabilities are discounted using a single discount rate.

Lease payments included in the measurement of the lease liability comprises fixed payments, variable payments based on

an index or rate, amounts expected to be payable under a residual value guarantee, and payments arising from options

reasonably certain to be exercised. Variable lease payments not related to an index or rate are recognised in profit or loss

as incurred.

Right-of-use assets are depreciated using the straight-line method, from the lease commencement date to the earlier of the

end of their useful life or the end of the lease term, over their expected useful lives, on the same basis as owned assets

except when there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, in which

case the right-of-use asset will be fully depreciated over the shorter of the lease term and its useful life. Right-of-use assets

are reduced by impairment losses, if any, and adjusted for remeasurements of the lease liability.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

10

The term of contracts and average discount rate of the different category of lease arrangements are as follows:

Category	Term of contracts	Average discount rate
Operational facilities	5 to 50 years	9.05%
Floating craft	2 to 5 years	10.16%
Buildings	1 to 10 years	10.77%
Vehicles, plant and equipment	1 to 15 years	17.25%

Subsequent to the initial measurement, the carrying amount of the liability is reduced to reflect the lease payments made

and increased to reflect the interest payable. If there is a change in the expected cash flows arising from and index or rate,

the lease liability is recalculated. If the modification is related to a change in the amounts to be paid, the discount rate is not

revised. Otherwise, if a modification is made to a lease, the Group revises the discount rate as if a new lease arrangement

had been made.

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases and leases of

low-

val

ue assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line

basis over the lease term.

Intangible assets

Intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated

amortisation and any accumulated impairment losses. Subsequent expenditure is recognised only when it is probable that

the future economic benefits associated with the expenditure will flow to the Group.

Amortisation is calculated to write off the cost less the estimated residual values of intangible assets, using the straight-line

method. Amortisation is recognised in profit or loss.

The estimated useful life of the different category of intangible assets are as follows:

Category	Useful life
Computer software	5 years
Concession rights	30 to 33 years

The estimated useful life, residual values and amortisation method are reviewed at the end of each reporting period, with

the effect of any changes in estimate accounted for on a prospective basis.

An intangible asset is derecognised 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 disposal or retirement of an intangible asset is determined as the

difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

Goodwill

Goodwill arising on an acquisition of a business is measured at cost as established at the date of acquisition of the business

less accumulated impairment losses. Goodwill is not amortised.

Impairment of non-financial assets

The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at

each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s

recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generate cash inflows from

continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill

acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the

combination.

The recoverable amount of an asset or a CGU is the greater of its value in use and its fair value less costs to sell. 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 or CGU.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

11

An impairment loss is recognised if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment

losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the

carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the

CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent

that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation

or amortisation, if no impairment loss had been recognised.

Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event, it is probable that an outflow

of economic benefits will be required to settle that obligation and a reliable estimate can be made of the amount of the

obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the present

obligation at the end of the reporting period taking into account the risks and uncertainties surrounding the obligation.

Use of judgements, estimates and assumptions

The preparation of these consolidated financial statements requires management to make judgements, estimates and

assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities,

income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised

in the period in which the estimates are revised and in any future periods affected.

In the process of applying the Group’s accounting policies, the following judgements, estimates, and assumptions made by

management have the most significant effect on the amounts recognised in these consolidated financial statements:

a. Provisions for tax, labour, and civil risks – Judgement

Provisions for legal cases are made when the Group’s management, together with their legal advisors, consider the

probable outcome is a financial settlement against the Group. Provisions are measured at management’s best

estimate of the expenditure required to settle the obligation based upon legal advice received, prior experience and

management’s best knowledge of the relevant facts and circumstances.

b. Impairment loss on non-financial assets – Judgement, estimates and assumptions

Impairment losses occur when book value of an asset or cash generating unit exceeds its recoverable value, which

is the higher of fair value less selling costs and value in use. Calculation of fair value less selling costs is based on

information available on similar assets’ selling transactions or market prices less additional costs to dispose of the

asset. The value-in-use calculation is based on the discounted cash flow model. The recoverable value of the cash-

generating unit is defined as the higher of the fair value less sales costs and value in use.

c. Valuation of unquoted investments – Judgements, estimates and assumptions

The fair value of financial assets that are not traded in an active market is determined using valuation techniques. The

Group uses a variety of methods and makes assumptions that are based on market conditions existing at each

reporting date. Valuation techniques used include the use of comparable recent arm’s length transactions, reference

to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other

valuation techniques commonly used by market participants making the maximum use of market inputs and relying

as little as possible on entity-specific inputs.

Changes in material accounting policies

A number of new or amended standards are effective for annual periods beginning on or after 1 January 2023, but none

have a significant impact on the preparation of the consolidated financial statements of the Group.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

12

Standards issued but not yet effective

Several new or amended standards are effective for annual periods beginning after 1 January 2023 with early adoption

permitted. The Group has elected to not adopt early the following new or amended standards and is assessing their impact

on the preparation of its consolidated financial statements.

- Amendments to IAS 1: Classification of Liabilities as Current or Non-current and Non-current Liabilities with

Covenants, effective for periods beginning on or after 1 January 2024

- Amendments to IFRS 16: Lease Liability in a Sale and Leaseback, effective for periods beginning on or after 1 January

2024

- Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements, effective for periods beginning on or after 1

January 2024

- Amendments to IAS 21: Lack of Exchangeability, effective for periods beginning on or after 1 January 2025

3 Group composition

Ocean Wilsons has direct ownership in the following subsidiaries:

	Place of incorporation		Ownership interest
Subsidiaries	and operation	Segment	2023	2022
Investments
Ocean Wilsons (Investments) Limited	Bermuda	Investment	100%	100%
Holdings
Ocean Wilsons Overseas Limited	Bermuda	Corporate	100%	100%

Ocean Wilsons Overseas Limited has direct ownership in the following subsidiary:

	Place of incorporation		Ownership interest
Subsidiaries	and operation	Segment	2023	2022
Holdings
OW Overseas (Investments) Limited	United Kingdom	Corporate	100%	100%

OW Overseas (Investments) Limited has direct ownership in the following subsidiary:

	Place of incorporation		Ownership interest
Subsidiaries	and operation	Segment	2023	2022
Holdings
Wilson Sons S.A.	Brazil	Maritime services	56.52%	56.58%

The change in ownership interest in Wilson Sons S.A.

from the year ended 31 December 2022 to 31 December 2023 is due

to the exercise of share options and the repurchase of shares in subsidiaries, for which the details are presented in note

27. The information on non-controlling interests is presented in note 28.

Wilson Sons S.A. has direct ownership in the following subsidiaries:

	Place of incorporation		Ownership interest
Subsidiaries	and operation	Segment	2023	2022
Shipyard
Wilson Sons Estaleiros Ltda.	Brazil	Maritime services	100%	100%
Ship agency
Dock Market Soluções Ltda. 1	Brazil	Maritime services	0%	90%
Wilson Sons Shipping Services Ltda.	Brazil	Maritime services	100%	100%

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

13

Logistics
Wilson Sons Terminais e Logística Ltda.	Brazil	Maritime services	100%	100%
Allink Transportes Internacionais Ltda.	Brazil	Maritime services	50%	50%
Container terminal
Tecon Rio Grande S.A.	Brazil	Maritime services	100%	100%
Tecon Salvador S.A.	Brazil	Maritime services	100%	100%
Offshore support bases and towage
Wilson Sons Serviços Marítimos Ltda.	Brazil	Maritime services	100%	100%

1

The subsidiary Dock Market Soluções Ltda. was dissolved in June 2023.

4 Business and geographical segments

The Group has two reportable segments: maritime services and investments. These segments report their financial and

operational data separately to the Board. The Board considers these segments separately when making business and

investment decisions. The maritime services segment provides towage and ship agency, port terminals, offshore, logistics

and shipyard services in Brazil. The investments segment holds a portfolio of international investments and is a Bermuda

based company. The corporate segment includes the holding subsidiaries and their related corporate costs.

The financial information by segment is as follows:

	Brazil –
	m aritime	Bermuda –
For the year ended 31 December 2023	services	investments	Corporate	Consolidated
Result
Sale of services	486,646	-	-	486,646
Net returns on investment portfolio	-	25,306	-	25,306
Operating expenses	(284,828)	(282)	(4,277)	(289,387)
Depreciation and amortisation	(71,768)	-	-	(71,768)
Share of results of joint ventures and associates	6,447	-	-	6,447
Other income	7,593	-	205	7,798
Finance costs	(35,425)	-	-	(35,425)
Foreign exchange gains/(losses) on monetary items	326	(19)	(61)	246
Profit/(loss) before tax	108,991	25,005	(4,133)	129,863
Tax expense	(27,609)	-	-	(27,609)
Profit/(loss) after tax	81,382	25,005	(4,133)	102,254
Financial position
Current assets	192,693	310,126	19,742	522,561
Investment in joint ventures and associates	96,084	-	-	96,084
Property, plant and equipment	614,099	-	-	614,099
Right-of-use assets	198,508	-	-	198,508
Other intangible assets	13,858	-	-	13,858
Goodwill	13,597	-	-	13,597
Other non-current assets	62,340	-	-	62,340
Segment assets	1,191,179	310,126	19,742	1,521,047
Segment liabilities	(704,976)	(779)	(296)	(706,051)
Other information
Capital additions	66,268	-	-	66,268
Right-of-use assets additions	3,534	-	-	3,534

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

14

	Brazil –
	m aritime	Bermuda –
For the year ended 31 December 2022	services	investments	Corporate	Consolidated
Result
Sale of services	440,107	-	-	440,107
Net returns on investment portfolio	-	(50,994)	-	(50,994)
Operating expenses	(259,671)	(202)	(3,578)	(263,451)
Depreciation and amortisation	(64,435)	-	-	(64,435)
Share of results of joint ventures and associates	3,165	-	-	3,165
Other income	6,631	-	-	6,631
Finance costs	(34,509)	-	-	(34,509)
Foreign exchange gains/(losses) on monetary items	1,837	(159)	(58)	1,620
Profit/(loss) before tax	93,125	(51,355)	(3,636)	38,134
Tax expense	(26,656)	-	-	(26,656)
Profit/(loss) after tax	66,469	(51,355)	(3,636)	11,478
Financial position
Current assets	164,449	293,717	9,177	467,343
Investment in joint ventures and associates	81,863	-	-	81,863
Property, plant and equipment	589,629	-	-	589,629
Right-of-use assets	178,699	-	-	178,699
Other intangible assets	14,392	-	-	14,392
Goodwill	13,420	-	-	13,420
Other non-current assets	55,941	-	-	55,941
Segment assets	1,098,393	293,717	9,177	1,401,287
Segment liabilities	(646,339)	(509)	(313)	(647,161)
Other information
Capital additions	64,654	-	-	64,654
Right-of-use assets additions	5,222	-	-	5,222

5 Revenue

An analysis of the Group’s revenue is as follows:

	2023	2022
Sale of services	486,646	440,107
Net income from investment portfolio	2,022	11,809
Profit on disposal of investment portfolio assets	9,080	24,316
Unrealised gains/(losses) on investment portfolio assets	17,200	(79,995)
Write down of Russia-focused investments (note 11)	-	(4,077)
Returns on investment portfolio	28,302	(47,947)
Income generated by cash and cash equivalents	4,157	4,146
Tax credits and legal deposits monetary adjustments	2,699	1,963
Other income	942	522
Other income	7,798	6,631
Total Revenue	522,746	398,791

All revenue for the year ended 31 December 2023 and 2022 was derived from continuing operations.

The Group derives its revenue from contracts with customers from the sale of services in its Brazil – maritime services

segment.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

15

The revenue from contracts with customers can be disaggregated as follows:

	2023	2022
Harbour manoeuvres	221,257	201,106
Special operations	23,403	17,633
Ship agency	10,980	9,910
Towage and ship agency services	255,640	228,649
Container handling	87,327	73,166
Warehousing	41,189	40,946
Ancillary services	24,339	20,932
Offshore support bases	17,378	10,605
Other services	19,633	13,743
Port terminals	189,866	159,392
Logistics	35,415	47,555
Shipyard	5,725	4,511
Total Revenue from contracts with customers	486,646	440,107

At 31 December 2023 and 2022, there were no warranties or refund obligations associated with shipyard contracts, for

which performance obligation are satisfied over time.

The revenue from contracts with customers based on the timing of performance obligations can be disaggregated as follows:

	2023	2022
At a point of time	480,921	435,596
Over time	5,725	4,511
Total Revenue from contracts with customers	486,646	440,107

At 31 December 2023 and 2022, no single customer represented 10% or more of the Group's revenue from contracts with

customers or related trade receivables.

Contract balance

Operational trade receivables are generally due and received within 30 days. The carrying amount of operational trade

receivables at the end of the reporting period was US$65.7 million (2022: US$54.5 million). These amounts include US$20.9

million (2022: US$12.0 million) of contract assets (unbilled accounts receivables). There were no contract liabilities as of 31

December 2023 (2022: none).

6 Employee charges and benefits expenses

Employee charges and benefits expenses are classified as follows:

	2023	2022
Wages, salaries, and benefits	(116,172)	(102,397)
Social security costs	(25,434)	(22,701)
Other pension costs	(466)	(904)
Share based payments	(319)	(328)
Total employee charges and benefits expenses	(142,391)	(126,330)

Defined contribution retirement benefit schemes

The Group operates defined contribution retirement benefit schemes for all qualifying employees in its Brazilian operations.

The assets of the scheme are held separately from those of the Group in funds under the control of independent managers.

An expense of US$1.0 million (2022: US$0.9 million) recognised under employee charges and benefits expenses represents

contributions payable to the scheme by the Group at rates specified in the rules of the plan.

Information regarding the defined health benefit plans is detailed in note 23.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

16

7 Other operating expenses

Other operating expenses are classified as follows:

	2023	2022
Utilities and communications	(17,147)	(13,616)
Insurance	(3,940)	(3,483)
Corporate, governance and compliance costs	(4,193)	(3,292)
Short-term or low-value asset leases	(37,134)	(33,432)
Service costs	(26,184)	(24,925)
Freight	(10,470)	(17,320)
Port expenses	(8,202)	(7,168)
Other operating expenses	(8,224)	(2,819)
Discounts obtained	2,252	1,790
Total other operating expenses	(113,242)	(104,265)

8 Finance costs

Finance costs are classified as follows:

	2023	2022
Interest on lease liabilities	(17,098)	(15,798)
Interest on bank loans	(16,875)	(17,160)
Exchange loss on foreign currency borrowings	-	(248)
Other interest costs	(1,452)	(1,303)
Total finance costs	(35,425)	(34,509)

9 Taxation

At the present time, no income, profit, capital or capital gains taxes are applicable to the Group’s operations in Bermuda

and accordingly, no expenses or provisions for such taxes have been recorded by the Group for its Bermuda operations.

The Company has received an undertaking from the Bermuda government exempting it from all such taxes until 31 March

2035. During the year ended 31 December 2023, the Bermuda Corporate Income Tax Act of 2023 was enacted by the

Bermuda government, which may supersede such exemptions. As the Company is currently not in scope for this new

legislation, the exemptions provided by the Bermuda government undertaking still apply.

Tax expense

The reconciliation of the amounts recognised in profit or loss is as follows:

	2023	2022
Current tax expense
Brazilian corporation tax	(8,771)	(17,018)
Brazilian social contribution	(3,571)	(8,340)
Total current tax expense	(12,342)	(25,358)
Deferred tax – origination and reversal of timing differences
Charge for the year in respect of deferred tax liabilities	(31,542)	(14,123)
Credit for the year in respect of deferred tax assets	16,275	12,825
Total deferred tax expense	(15,267)	(1,298)
Total tax expense	(27,609)	(26,656)

Brazilian corporation tax is calculated at 25% (2022: 25%) of the taxable profit for the year. Brazilian social contribution tax

is calculated at 9% (2022: 9%) of the taxable profit for the year.

The reconciliation of the effective tax rate is as follows:

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

17

	2023	2022
Profit before tax	128,411	38,134
Less: (Profit)/loss before tax of Bermuda – Investment and corporate segments	(19,420)	54,991
Profit before tax of Brazil – maritime services segment	108,991	93,125
Aggregate Brazilian tax rate	34%	34%
Tax at the aggregate Brazilian tax rate	(37,057)	(31,663)
Tax adjustments for:
Net operating losses in the period	(165)	(788)
Non-deductible expenses	861	(863)
Foreign exchange variance on loans	(5,035)	(3,008)
Tax effect of share of results of joint ventures and associates	2,192	1,076
Tax effect of foreign exchange gains or losses on monetary items	111	625
Retranslation of non-monetary items	13,149	11,592
Leasing	31	64
Other adjustments	(1,696)	(3,691)
Tax expense	(27,609)	(26,656)
Effective tax rate for the Brazil – maritime services segment	25%	29%
Effective tax rate for the Group	22%	70%

The tax expense related to amounts recognised in other comprehensive income is as follows:

		Tax
	Before tax	expense	Net of tax
For the year ended 31 December 2023
Items that will not be reclassified subsequently to profit or loss:
Post-employment benefits	43	(11)	32
Items that will be or may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations	11,834	(3,003)	8,831
Total amounts recognised in other comprehensive income	11,877	(3,014)	8,863
For the year ended 31 December 2022
Items that will not be reclassified subsequently to profit or loss:
Post-employment benefits	124	(31)	93
Purchase price adjustment of associate	213	(54)	159
Items that will be or may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations	9,563	(2,426)	7,137
Total amounts recognised in other comprehensive income	9,900	(2,511)	7,389

Deferred tax

The major categories of deferred tax assets and liabilities recognised by the Group and their movements during the

current and prior reporting period are as follows:

		Foreign				Retranslation
		exchange		Profit on		Other	of non-
	Tax	variance		Tax construction	timing	monetary
	depreciation	on loans	losses	contracts differences		items	Total
At 1 January 2022	(29,850)	35,272	9,678	14,808	6,536	(64,306)	(27,862)
(Charge)/credit to income	(1,711)	(8,433)	(4,112)	(534)	1,900	11,592	(1,298)
Other adjustments	(1,510)	(68)	151	82	1,438	1	94
Exchange differences	(2,168)	2,200	703	-	678	(111)	1,302
At 31 December 2022	(35,239)	28,971	6,420	14,356	10,552	(52,824)	(27,764)
(Charge)/credit to income	(1,896)	(29,646)	1,578	70	1,478	13,149	(15,267)
Other adjustments	-	-	22	-	5	-	27
Exchange differences	(2,798)	1,780	561	-	806	(114)	235
At 31 December 2023	(39,933)	1,105	8,581	14,426	12,841	(39,789)	(42,769)

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

18

Certain tax assets and liabilities have been offset on an entity-by-entity basis. After offset, deferred tax balances are

disclosed in the statement of financial position as follows:

	2023	2022
Deferred tax assets	22,827	21,969
Deferred tax liabilities	(65,596)	(49,733)
Net deferred tax balance	(42,769)	(27,764)

At 31 December 2023, the Group had unused tax losses of US$33.7 million (2022: US$31.2 million) available for offset

against future profits in the entity in which they arose.

No deferred tax asset has been recognised in respect of US$4.4 million (2022: US$4.0 million) due to the unpredictability

of future profit streams, as a tax asset of one entity of the Group cannot be offset against a tax liability of another entity of

the Group as there is no legally enforceable right to do so. The Group expects to recover the deferred tax assets between

three and five years.

Recoverable and payable taxes

The recoverable taxes relate to Brazilian federal taxes, Brazilian sales and rendering of services taxes, Brazilian payroll

taxes, Brazilian income tax, Brazilian social contributions, and judicial bonds related to these items. The recoverable taxes

are classified as current if they are expected to be used or reimbursed within 12 months of the end of the period, otherwise

they are classified as non-current, and are as follows:

	2023	2022
Recoverable taxes – current	47,708	34,515
Recoverable taxes – non-current	20,680	15,143
Total recoverable taxes	68,388	49,658

The payable taxes relate to Brazilian federal taxes, Brazilian rendering of services taxes, Brazilian payroll taxes and Brazilian

income tax. The payable taxes are classified as current if they are payable within 12 months of the end of the period,

otherwise they are classified as non-current, and are as follows:

	2023	2022
Taxes payable – current	(10,831)	(10,290)
Total taxes payable	(10,831)	(10,290)

10 Cash and cash equivalents

The composition of cash and cash equivalents is as follows:

	2023	2022
Cash and bank deposits	19,799	53,710
Time deposits	19,920	-
Exchange funds	-	2,149
Fixed income investments	29,648	22,014
Total cash and cash equivalents	69,367	77,873

Following a change in classification, exchange funds with a value of US$2.1 million at 31 December 2022 that were

previously included in the investment portfolio assets have been reclassified to cash and cash equivalents.

Fixed income investments include an investment fund and an exchange traded fund both privately managed within the

Brazil – maritime service segment. Those funds’ financial obligations are limited to service fees to the asset management

company employed to execute investment transactions, audit fees and other similar expenses. The funds’ underlying

investments are highly liquid and readily convertible.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

19

11 Investment portfolio

The movement in the investment portfolio is as follows:

	2023	2022
Opening balance – 1 January	272,931	349,613
Additions, at cost	42,674	68,715
Disposals, at market value	(33,545)	(85,641)
Profit on disposal of investment portfolio assets	9,080	24,316
Unrealised gain/(loss) on investment portfolio assets	17,200	(79,995)
Write down of Russia-focused investments 1	-	(4,077)
Closing balance – 31 December	308,340	272,931

1

During the year ended 31 December 2022, the Group wrote down the full value of a Russia-focused equity fund held within the

investment portfolio, following the issue of an investor notice announcing the suspension of its net asset valuation, subscriptions and

redemptions.

The investment portfolio is held in the Bermuda – investments segment and presents the Group with opportunity for return

through generated income and capital appreciation. It includes investments in listed equity securities, open ended funds,

limited partnerships and other private equity funds.

The Investment Manager of the investment portfolio receives an investment management fee of 1% of the valuation of funds

under management and an annual performance fee of 10% of the net investment return which exceeds the benchmark,

provided that the high-water mark has been exceeded, and is capped at a maximum of 2% of the investment portfolio net

asset value.

The investment portfolio performance is measured against a benchmark calculated by reference to the US CPI Urban

Consumers index not seasonally adjusted plus 3% per annum over a rolling three-year period. The Board considers a three-

year measurement period appropriate due to the investment mandate’s long-term horizon, and an absolute return inflation-

linked benchmark appropriately reflects the Group’s investment objectives while having a linkage to economic factors. The

performance benchmark was 6.4% for the year ended 31 December 2023 (2022: 9.5%).

At the end of the reporting period, the Group had entered into commitment agreements with respect to the investment

portfolio for capital subscriptions. The classification of those commitments based on their expiry date is as follows:

	2023	2022
Within one year	4,557	5,951
In the second to fifth year inclusive	4,621	2,346
After five years	44,585	42,129
Total commitment for capital subscriptions	53,763	50,426

The exact timing of capital calls made in respect of the above commitments are at the discretion of the manager of the

underlying structure. If required, amounts expected to be settled within one year will be met from the realisation of liquid

investment holdings. There may be situations when commitments may be extended by the manager of the underlying

structure beyond the initial expiry date dependent upon the terms and condition of each individual structure.

Information about the Group’s financial instruments valuation and exposure to financial risks is included in note 32.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

20

12 Trade and other receivables

Trade and other receivables are classified as follows:

	2023	2022
Current
Trade receivable for the sale of services	46,381	43,293
Unbilled trade receivables	20,936	12,036
Total gross current trade receivables	67,317	55,329
Allowance for expected credit loss	(1,623)	(792)
Trade receivables	65,694	54,537
Non-current
Receivables from related parties (note 25)	11,494	11,176
Other receivables	1,547	1,456
Total other receivables	13,041	12,632
Total trade and other receivables	78,735	67,169

The aging of the trade receivables is as follows:

	2023	2022
Current	48,593	44,699
From 0 – 30 days	9,313	5,997
From 31 – 90 days	6,561	2,461
From 91 – 180 days	954	1,236
More than 180 days	1,896	936
Total gross trade receivables	67,317	55,329

The movement in allowance for expected credit loss is as follows:

	2023	2022
Opening balance – 1 January	(792)	(338)
Increase in allowance recognised in profit or loss	(733)	(419)
Exchange differences	(98)	(35)
Closing balance – 31 December	(1,623)	(792)

Information about the Group’s exposure to credit risks related to trade receivables is included in note 32.

13 Other assets

Other current assets are classified as follows:

	2023	2022
Prepayments	4,560	4,887
Insurance claim receivable	5,385	981
Employee advances	2,636	1,449
Accrued income and investment portfolio receivables	361	2,188
Other current assets	339	403
Total other current assets	13,281	9,908

Other non-current assets are classified as follows:

	2023	2022
Escrow deposits	3,101	3,506
Investments in maritime start-ups	2,691	2,691
Total other non-current assets	5,792	6,197

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

21

14 Inventories

Inventories are classified as follows:

	2023	2022
Operating materials	15,648	13,727
Raw materials for third party vessel construction	2,523	3,852
Total inventories	18,171	17,579

Inventories are presented net of provision for obsolescence, amounting to US$0.5 million (2022: US$0.3 million).

15 Joint ventures and associates

The Group holds the following interests in joint ventures and associates at the end of the reporting period:

	Place of incorporation	Proportion of ownership
	and operation	2023	2022
Joint ventures
Logistics
Porto Campinas Logística e Intermodal Ltda	Brazil	50%	50%
Offshore
Wilson Sons Ultratug Participações S.A.	Brazil	50%	50%
Atlantic Offshore S.A.	Panamá	50%	50%
Associates
Argonáutica Engenharia e Pesquisas S.A.	Brazil	32.32%	32.32%

The financial information of the joint ventures and associates and its reconciliation to the share of result of joint ventures

and associates is as follows:

	2023	2022
Sales of services	221,420	182,882
Operating expenses	(143,425)	(116,046)
Depreciation and amortisation	(55,092)	(53,212)
Foreign exchange gains on monetary items	6,040	5,057
Results from operating activities	28,943	18,681
Finance income	954	2,656
Finance costs	(11,790)	(14,756)
Profit before tax	18,107	6,581
Tax expense	(5,114)	(253)
Total profit for the year generated by joint ventures and associates	12,993	6,328
Joint ventures reconciliation:
Total profit for the year	12,712	6,334
Participation	50%	50%
Share of profit for the year from joint ventures	6,356	3,167
Associates reconciliation:
Total profit/(loss) for the year	281	(6)
Participation	32.32%	32.32%
Share of profit/(loss) for the year for associates	91	(2)
Share of result of joint ventures and associates	6,447	3,165

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

22

The financial information of the joint ventures and associates and its reconciliation to the investment in joint ventures and

associates is as follows:

	2023	2022
Cash and cash equivalents	19,410	5,747
Other current assets	65,531	51,260
Non-current assets	528,271	551,921
Total assets	613,212	608,928
Trade and other payables	(32,019)	(46,506)
Other current liabilities	(58,779)	(56,833)
Non-current liabilities	(316,248)	(324,012)
Total liabilities	(407,046)	(427,351)
Total net assets of joint ventures and associates	206,166	181,577
Joint ventures reconciliation:
Total net assets	204,655	180,079
Participation	50%	50%
Group’s share of net assets of joint ventures	102,328	90,040
Associates reconciliation:
Total net assets	1,511	1,498
Participation	32.32%	32.32%
Group’s share of net assets of associates	488	484
Adjustments for:
Goodwill and surplus generated on associate purchase	1,862	1,711
Cumulative elimination of profit on construction contracts	(8,594)	(10,372)
Total adjustments	(6,732)	(8,661)
Investment in joint ventures and associates	96,084	81,863

The movement in investment in joint ventures and associates is as follows:

	2023	2022
Opening balance – 1 January	81,863	61,553
Share of result of joint ventures and associates	6,447	3,165
Elimination of profit on construction contracts	(81)	(158)
Share of other comprehensive income of joint ventures and associates	335	287
Capital increase	7,520	17,016
Closing balance – 31 December	96,084	81,863

During the year ended 31 December 2023, the Group increased its invested capital in Wilson Sons Ultratug Participações

S.A. by US$7.5 million (2022: US$14.9 million) and in Porto Campinas Logística e Intermodal Ltda by US$0.04 million

(2022: US$0.1 million).

During the year ended 31 December 2022, the Group acquired a 32.32% participation in Argonáutica Engenharia e

Pesquisas S.A. for US$2.0 million.

Guarantees

Wilson Sons Ultratug Participações S.A. has loans with the Brazilian Development Bank guaranteed by a lien on the

financed supply vessels and by a corporate guarantee from its participants, proportionate to their ownership. The Group’s

subsidiary Wilson Sons S.A. is guaranteeing US$155.3 million (2022: US$163.7 million).

Wilson Sons Ultratug Participações S.A. has a loan with Banco do Brasil guaranteed by a pledge on the financed offshore

support vessels, a letter of credit issued by Banco de Crédito e Inversiones and its long-term contracts with Petrobras. The

joint venture also has to maintain a cash reserve account until full repayment of the loan agreement amounting to US$1.8

million (2022: US$1.7 million) presented as long-term investment.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

23

Covenants and capital commitments

On 31 December 2023, Wilson Sons Ultratug Participações S.A. was in compliance with all of its covenants’ ratios related

to its loans with the Brazilian Development Bank and with Banco do Brasil. There were no capital commitments for the joint

ventures and associates as of 31 December 2023.

On 31 December 2022, Wilson Sons Ultratug Participações S.A. was not in compliance with one of its covenants’ ratios

with Banco do Brasil, resulting in a required increase in capital within a year of US$1.8 million. Management planned to and

did increase to that amount within a year, and as such did not negotiate a waiver letter with Banco do Brasil. There were no

capital commitments for the joint ventures and associates as of 31 December 2022.

16 Property, plant and equipment

Property, plant and equipment assets are classified as follows:

	Land, buildings
	and l	easehold		Vehicles, plant	Assets under
		improvements	Floating Craft	and equipment	construction	Total
Cost
At 1 January 2022		274,683	541,252	198,464	9,581	1,023,980
Additions		10,835	15,493	9,936	27,004	63,268
Transfers		(112)	24,623	(2,317)	(22,194)	-
Transfers to intangible assets		-	-	(60)	-	(60)
Disposals		(1,955)	(4,477)	(4,892)	-	(11,324)
Exchange differences		11,084	-	10,854	-	21,938
At 1 January 2023		294,535	576,891	211,985	14,391	1,097,802
Additions		12,096	12,547	16,662	23,831	65,136
Transfers		(27)	22,248	(1,284)	(20,937)	-
Transfers from intangible assets		25	-	8	-	33
Disposals		(511)	(75)	(1,985)	-	(2,571)
Exchange differences		14,238	-	13,664	-	27,902
At 31 December 2023		320,356	611,611	239,050	17,285	1,188,302
Accumulated depreciation
At 1 January 2022		82,651	264,836	113,438	-	460,925
Charge for the year		8,518	27,831	12,124	-	48,473
Elimination on construction contracts		-	87	-	-	87
Disposals		(1,645)	(4,426)	(4,609)	-	(10,680)
Exchange differences		3,644	-	5,724	-	9,368
At 1 January 2023		93,168	288,328	126,677	-	508,173
Charge for the year		9,330	33,647	12,489	-	55,466
Elimination on construction contracts		-	2	-	-	2
Disposals		(406)	(70)	(1,850)	-	(2,326)
Exchange differences		5,008	-	7,880	-	12,888
At 31 December 2023		107,100	321,907	145,196	-	574,203
Carrying Amount
At 31 December 2022		201,367	288,563	85,308	14,391	589,629
At 31 December 2023		213,256	289,704	93,854	17,285	614,099

Land and buildings with a net book value of US$0.2 million (2022: US$0.2 million) and plant and equipment with a carrying

amount of US$0.05 million (2022: US$0.1 million) have been given in guarantee for various legal processes.

The Group has pledged assets with a carrying amount of US$262.4 million (2022: US$230.2 million) to secure loans granted

to the Group.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

24

The amount of borrowing costs capitalised in 2023 was US$0.3 million (2022: US$0.1 million) at an average interest rate of

5.5% (2022: 5.6%).

The Group has contractual commitments to suppliers for the acquisition and construction of property, plant and equipment

amounting to US$7.9 million (2022: US$19.9 million).

17 Lease arrangements

Right-of-use assets

Right-of-use assets are classified as follows:

	Operational	Floating		Vehicles, plant
	facilities	craft		Buildings and equipment	Total
Cost
At 1 January 2022	167,118	13,077	5,388	8,846	194,429
Additions	-	3,018	1,305	899	5,222
Contractual amendments	17,901	5,793	63	117	23,874
Terminated contracts	-	(2,796)	(3,771)	(58)	(6,625)
Exchange differences	10,313	510	96	328	11,247
At 1 January 2023	195,332	19,602	3,081	10,132	228,147
Additions	83	2,136	61	1,254	3,534
Contractual amendments	9,146	10,197	70	(93)	19,320
Terminated contracts	-	-	(368)	(763)	(1,131)
Exchange differences	14,839	706	229	417	16,191
At 31 December 2023	219,400	32,641	3,073	10,947	266,061
Accumulated depreciation
At 1 January 2022	18,298	8,194	2,960	7,108	36,560
Charge for the year	8,244	4,825	912	916	14,897
Terminated contracts	-	(1,226)	(2,424)	(44)	(3,694)
Exchange differences	1,104	242	63	276	1,685
At 1 January 2023	27,646	12,035	1,511	8,256	49,448
Charge for the year	8,973	5,351	498	915	15,737
Terminated contracts	-	-	(326)	(651)	(977)
Exchange differences	2,300	492	198	355	3,345
At 31 December 2023	38,919	17,878	1,881	8,875	67,553
Carrying Amount
At 31 December 2022	167,686	7,567	1,570	1,876	178,699
At 31 December 2023	180,481	14,763	1,192	2,072	198,508

Operational facilities

Tecon Rio Grande

Lease commitments to operate the container terminal and heavy cargo terminal in the Port of Rio Grande, expiring in 2047.

The commitments include a monthly payment for facilities and leased areas, a contractual payment per container moved

based on minimum forecast volumes and a payment per tonne in respect of general cargo handling and unloading.

Tecon Salvador

Lease commitments to operate the container terminal and heavy cargo terminal in the Port of Salvador, expiring in 2050.

The commitments require the Group to make a minimum specified investment to expand the leased terminal area and

include a monthly payment for facilities and leased areas, a contractual payment per container moved based on minimum

forecast volumes and a fee per tonne of non-containerised cargo moved based on minimum forecast volumes.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

25

Shipyard

Lease commitments to operate an area used to expand and develop a Group’s shipyard, expiring in 2038 and renewable

for a further period of 30 years at the option of the Group. Management’s intention is to exercise the renewal option.

Offshore support base

Lease commitments to operate a port area with convenient access to service oil producing basins, expiring in 2043.

Floating craft

Lease commitments for the chartering of vessels for maritime transport between port terminals.

Buildings

Lease commitments for the Brazilian headquarters, branches, and commercial offices in several Brazilian cities.

Vehicles, plant and equipment

Lease commitments mainly for forklifts, vehicles for operational, commercial, and administrative activities and other

operating equipment.

Lease liabilities

The movement in lease liabilities is as follows:

	2023	2022
Opening – 1 January	(196,176)	(167,843)
Additions	(3,534)	(5,222)
Termination of contracts	335	2,728
Contracts remeasurement	(19,320)	(23,874)
Principal amortisation	28,384	25,401
Interest	(18,297)	(16,810)
Exchange differences	(15,678)	(10,556)
Closing – 31 December	(224,286)	(196,176)

Lease liabilities are classified as follows:

	2023	2022
Operational facilities	(204,424)	(184,591)
Floating craft	(15,625)	(7,605)
Buildings	(1,984)	(2,121)
Vehicles, plant and equipment	(2,253)	(1,859)
Total	(224,286)	(196,176)
Total current	(28,783)	(24,728)
Total non-current	(195,503)	(171,448)

The contractual undiscounted cash flows related to leases liabilities are as follows:

	2023	2022
Within one year	(30,196)	(25,958)
In the second year	(27,100)	(23,101)
In the third to fifth years inclusive	(68,652)	(56,682)
After five years	(382,424)	(355,360)
Total cash flows	(508,372)	(461,101)
Adjustment to present value	284,086	264,925
Total lease liabilities	(224,286)	(196,176)

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

26

The lease liabilities balance considering the projected future inflation rate in the discounted payment flows is as follows:

	2023	2022
Actual outflow	(508,372)	(461,101)
Embedded interest	284,086	264,925
Lease liabilities	(224,286)	(196,176)
Inflated flow	(544,640)	(488,950)
Inflated embedded interest	309,488	284,773
Inflated lease liabilities	(235,152)	(204,177)

Lease arrangements

The amounts recognised in profit and loss related to lease arrangements are as follows:

	2023	2022
Depreciation of right-of-use assets	(15,737)	(14,897)
PIS and COFINS taxes	1,432	1,324
Net depreciation of right-of-use assets	(14,305)	(13,573)
Interest on lease liabilities	(18,297)	(16,810)
PIS and COFINS taxes	1,199	1,012
Interest on lease liabilities	(17,098)	(15,798)
Variable lease payments not included in the measurement of lease liabilities 1	(2,732)	(2,376)
Expenses relating to short-term leases	(32,447)	(29,778)
Expenses relating to low-value assets	(1,960)	(1,281)
Total	(68,542)	(62,806)

1

The amounts refer to payments which exceeded the minimum forecast volumes of Tecon Rio Grande and Tecon Salvador and payments

related to the number of vessel trips which were not included in the measurement of lease liabilities.

The amounts recognised in the cash flow statement related to lease arrangements are as follows:

	2023	2022
Payment of lease liability	(10,087)	(8,591)
Interest paid – lease liability	(18,297)	(16,810)
Short-term leases paid	(32,447)	(29,778)
Variable lease payments	(2,732)	(2,376)
Low-value leases paid	(1,960)	(1,281)
Total cash outflow	(65,523)	(58,836)

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

27

18 Other intangible assets

Other intangible assets are classified as follows:

	Computer	Concession-
	software	rights	Total
Cost
At 1 January 2022	40,923	15,546	56,469
Additions	1,386	-	1,386
Transfers from right-of-use	60	-	60
Disposals	(1,105)	-	(1,105)
Exchange differences	558	279	837
At 1 January 2023	41,822	15,825	57,647
Additions	1,132	-	1,132
Transfers to property, plant and equipment	(33)	-	(33)
Disposals	(41)	-	(41)
Exchange differences	735	462	1,197
At 31 December 2023	43,615	16,287	59,902
Accumulated amortisation
At 1 January 2022	35,540	5,948	41,488
Charge for the year	1,965	424	2,389
Disposals	(1,105)	-	(1,105)
Exchange differences	381	102	483
At 1 January 2023	36,781	6,474	43,255
Charge for the year	1,570	427	1,997
Disposals	(41)	-	(41)
Exchange differences	574	259	833
At 31 December 2023	38,884	7,160	46,044
Carrying amount
31 December 2022	5,041	9,351	14,392
31 December 2023	4,731	9,127	13,858

19 Goodwill

Goodwill is classified as follows:

	Tecon	Tecon
	Rio Grande	Salvador	Total
Carrying Value
At 1 January 2022	10,792	2,480	13,272
Exchange differences	148	-	148
At 1 January 2023	10,940	2,480	13,420
Exchange differences	177	-	177
At 31 December 2023	11,117	2,480	13,597

The goodwill associated with each cash-generating unit “CGU” (Tecon Salvador and Tecon Rio Grande) is attributed to the

Brazil - maritime services segment.

Each CGU is assessed for impairment annually and whenever there is an indication of impairment. The carrying value of

goodwill has been assessed with reference to its value in use reflecting the projected discounted cash flows of each CGU

to which goodwill has been allocated.

Details of the impairment test are disclosed in note 20.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

28

20 Impairment Test of Cash Generating Units

Tecon Rio Grande and Tecon Salvador

The Tecon Rio Grande and Tecon Salvador CGUs, which are both part of the Brazil – maritime services segment, contain

goodwill and as such are tested annually for impairment.

The cash flows of these CGUs are derived from sales and operating margins, based on past experience considering the

effect of known or likely changes in market or operating conditions, and from projected volumes, based on the expected

performance of the Brazilian economy until operating capacity is reached. The discount rate is based on the weighted

average cost of capital (“WACC”) of the CGU, while the growth rate is based on the inflation rate only after reaching

operational capacity. The key assumptions used in determining the recoverable amount of each CGU are as follows:

	Tecon Rio Grande			Tecon Salvador
	2023	2022	2023	2022
Discount rate	11.9%	8.5%		11.2%	8.5%
Growth rate	7.9%	5.8%		7.2%	3.4%
Projection period	25 years	26 years		28 years	29 years

At 31 December 2023 and 2022, the recoverable amount of these CGUs significantly exceeded their carrying value and as

such no impairment loss was recognised.

Offshore support bases

For the year ended 31 December 2023 and 2022, the offshore support bases CGU, which is part of the Brazil – maritime

services segment, reported negative earnings before taxes, and as such was tested for impairment. The key assumptions

used in determining the recoverable amount of the CGU are as follows:

(i) Revenue: Projections are based on the estimated pace of growth in offshore energy market, specifically offshore

exploration and production of oil and gas. Data from the Brazilian Petroleum National Agency, the Energy Research Agency,

oil companies’ releases and specialised industry reports all support a significant increase in oil and gas exploration and

production activities in Brazil in the next 10 years. Supported by this increase in demand, growth rate is projected at an

average of 10.3% per year until 2030. For 2031 onward, the growth rate is projected at 2.1%, based on the expected growth

in the Brazilian offshore energy sector and in the region in which the CGU operates. Projections for 2024 include a 14.9%

increase in average contract prices in relation to current pricing and a 98.1% increase in public prices for spot berthing

compared to 2023. From 2025 onwards, prices are adjusted for inflation.

(ii) Costs and expenses: Projections for 2024 are in line with the budget and include an increase in fixed costs of 7.6% over

2023. From 2025 onwards, costs are forecasted to increase in line with the increase in volumes.

(iii) Investments: No expansion investments were included within the projections.

(iv) Projection period: The projections are prepared using a 10-year period plus a perpetuity growth, as the offshore energy

industry life cycle is at least 10 years, due to the life cycle of investment in hydrocarbon energy reserve from exploration to

sustainable production.

(v) The discount rate is based on the WACC of the CGU, adjusted for individual risks of the CGU that have not been

incorporated in the cash flow estimates, and using reputable sources to capture macroeconomic assumptions and

information from comparator companies in the offshore energy and in the maritime services sector. For the year ended 31

December 2023, the discount rate was estimated at 10.0% (2022: 10.2%).

At 31 December 2023, the recoverable amount of the CGU of US$122.9 million (2022: US$91.9 million) exceeded its

carrying value of US$48.8 million (2022: US$47.6 million) and as such no impairment loss was recognised. While

maintaining all other assumptions constant, either an increase in the discount rate of up to 15.7% (2022: 3.6%) or a decrease

in revenue over the projected period of up to 1.2% (2022: 11.1%) would not result in an impairment loss.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

29

21 Trade and other payables

Trade and other payables are classified as follows:

	2023	2022
Trade payables and accruals	(44,179)	(34,133)
Other payables	(226)	(479)
Provisions for employee benefits	(25,279)	(21,365)
Deferred income	(2,084)	(2,360)
Total trade and other payables	(71,768)	(58,337)

Trade creditors and accruals principally comprise amounts outstanding for trade purposes and ongoing costs. For most

suppliers, interest is charged on outstanding trade payable balances at various interest rates. The Group has financial risk

management policies in place to ensure that payables are paid within the credit timeframe agreed with each vendor.

22 Bank loans

The movement in bank loans is as follows:

	2023	2022
Opening – 1 January	(321,891)	(301,599)
Additions	(53,259)	(59,793)
Principal amortisation	61,148	49,349
Interest amortisation	14,088	13,333
Accrued interest	(17,140)	(17,437)
Exchange difference	(7,147)	(5,744)
Closing – 31 December	(324,201)	(321,891)

The terms and conditions, carrying value and fair value of outstanding bank loans are as follows:

				2023		2022
		Annual interest	Year of	Carrying	Fair	Carrying	Fair
Lender	Currency	rate %	maturity	value	value	value	value
BNDES	linked to US Dollar	2.30% - 4.43%	2041	(135,411)	(135,411)	(129,231)	(129,231)
BNDES	linked to US Dollar	2.07% - 4.08%	2028	(17,796)	(17,796)	(21,477)	(21,477)
BNDES	linked to US Dollar	2.38% - 4.43%	2045	(2,787)	(2,787)	-	-
BNDES	Real	9.85%	2034	(53,537)	(53,537)	(50,148)	(50,148)
BNDES	Real	8.59%	2029	(5,356)	(5,356)	(5,816)	(5,816)
BNDES	Real	10.24%	2027	(481)	(481)	(564)	(564)
Banco do Brasil	linked to US Dollar	2.00% - 4.00%	2035	(60,193)	(60,193)	(66,110)	(66,110)
Bradesco	Real	12.58% - 12.95%	2024	(10,519)	(10,515)	(19,571)	(19,718)
Bradesco	Real	15.25%	2023	-	-	(2,406)	(2,411)
Banco Santander	US Dollar	4.82%	2024	(10,279)	(10,270)	(20,288)	(20,304)
Banco Santander	Real	13.59%	2025	(6,744)	(6,582)	(6,280)	(6,279)
CCB	Real	12.75% - 13.25%	2025	(21,098)	(20,976)	-	-
Total bank loans				(324,201)	(323,904)	(321,891)	(322,058)

The breakdown of bank loans by maturity is as follows:

	2023	2022
Within one year	(70,856)	(59,881)
In the second year	(54,121)	(56,022)
In the third to fifth years (inclusive)	(91,027)	(91,037)
After five years	(108,197)	(114,951)
Total bank loans	(324,201)	(321,891)

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

30

Guarantees

The loan agreements with BNDES and Banco do Brasil rely on corporate guarantees from the Group’s subsidiary party to

the agreement. For some contracts, the corporate guarantee is in addition to a pledge of the respective financed tugboat or

a lien over the logistics and port operations equipment financed.

The loan agreements with Bradesco and Banco Santander rely on corporate guarantees from the Group’s subsidiary party

to the agreement.

Undrawn credit facilities

At 31 December 2023, the Group had US$50.1 million (2022: US$37.1 million) of undrawn borrowing facilities available in

relation to the Salvador Terminal expansion and the dry-docking, maintenance and repair of tugs.

Covenants

Some of the loan agreements include obligations related to financial indicators, including EBITDA/Net operating revenue,

EBITDA/Debt service, Equity/Total assets and Net debt/EBITDA. At 31 December 2023 and 2022, the Group was in

compliance with all covenants related to its loan agreements.

Information about the Group’s exposure to financial risks is included in note 32.

23 Post-employment benefits

The Group operates a private medical insurance scheme for its employees in its Brazilian operations, which requires the

eligible employees to pay fixed monthly contributions. In accordance with Brazilian law, eligible employees with greater than

ten years’ service acquire the right to remain in the plan following retirement or termination of employment. Ex-employees

remaining in the plan will be liable for paying the full cost of their continued scheme membership.

The future actuarial liability for the Group relates to the potential increase in plan costs resulting from additional claims due

to the expanded membership of the scheme.

The movement in the present value of the actuarial liability for the year is as follows:

	2023	2022
Opening balance – 1 January	(1,737)	(1,562)
Current service cost	(8)	(7)
Interest expense	(168)	(146)
Contributions to the plan	(9)	(14)
Changes in economic and financial assumptions	(214)	228
Experience adjustments	231	(126)
Exchange differences	(142)	(110)
Closing balance – 31 December	(2,047)	(1,737)

The calculation of the liability generated by the defined health benefits plan involves actuarial assumptions that are based

on market conditions. The principal actuarial assumptions, and the impact of a change (keeping the other assumptions

constant) on the defined benefit obligation valuation are as follows:

	2023	2022
Annual interest rate	8.66%	9.18%
Estimated inflation rate in the long-term	3.00%	3.00%
Impact of 0.5% increase	235	214
Impact of 0.5% decrease	(270)	(247)
Medical cost trend rate	5.58%	5.58%
Impact of 0.5% increase	(286)	(255)
Impact of 0.5% decrease	234	222

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

31

24 Legal claims

In the normal course of its operations in Brazil, the Group is exposed to numerous local legal claims. The Group’s policy is

to vigorously contest those claims, many of which appear to have little substance or merit, and manage such claims through

its legal counsel.

Labour claims – Claims involving payment of health risks, additional overtime and other allowances.

Tax cases – Claims involving government tax assessments when the Group considers it has a chance of successfully

defending its position.

Civil – Claims involving indemnification for material damage, environmental and shipping claims and other contractual

disputes.

Claims deemed probable and subject to reasonable estimation by management and its legal counsel are recorded as

provisions, whereas claims deemed only reasonably possible are disclosed as contingent liabilities. Both provisions and

contingent liabilities are subject to uncertainties around the timing and amount of possible cash outflows as the outcome is

heavily dependent on court proceedings.

The movement in the carrying amount of each class of provision for legal claims for the period is as follows:

	Labour claims	Tax cases	Civil cases	Total
At 1 January 2023	(4,978)	(2,732)	(1,287)	(8,997)
Additional provisions	(766)	(166)	(280)	(1,212)
Unused amounts reversed	1,156	1,546	35	2,737
Utilisation of provisions	767	34	-	801
Exchange difference	(384)	(158)	(109)	(651)
At 31 December 2023	(4,205)	(1,476)	(1,641)	(7,322)

The contingent liabilities at the end of each period are as follows:

	Labour claims	Tax cases	Civil cases	Total
At 31 December 2022	(6,002)	(66,071)	(11,158)	(83,231)
At 31 December 2023	(7,312)	(75,982)	(13,536)	(96,830)

Other non-current assets of US$3.1 million (2022: US$3.5 million) represent escrow deposits required by the Brazilian

legal authorities as security to contest legal actions.

25 Related party transactions

Transactions between the Group and its subsidiaries have been eliminated on consolidation and are not disclosed in this

note. Transactions and outstanding balances between the Group and its related parties are as follows:

	Revenues/(Expenses)		Receivable/(Payable)
	2023	2022	2023	2022
Joint ventures and associates
Wilson, Sons Ultratug Participações S.A. 1	964	2,778	11,437	11,176
Argonáutica Engenharia e Pesquisas S.A. 2	(14)	-	4	-
Others
Hanseatic Asset Management LBG 3	(2,996)	(3,047)	(759)	(484)
Hansa Capital Partners 4	(30)	(32)	-	-

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

32

1

Related party loans with Wilson, Sons Ultratug Participações S.A. (interest – 3.6% per year with no maturity date) and services provided

by the Group.

2

Contract for the implementation of a port traffic monitoring and port traffic intelligence system.

3

Mr William Salomon (Board Director) is chairman and Mr Christopher Townsend (Board Director) is a director of Hanseatic Asset

Management LBG, to which fees were paid for acting as Investment Manager of the Group’s investment portfolio.

4

Mr Salomon is a partner of Hansa Capital Partners. Office facilities charges were paid to Hansa Capital Partners.

Mr Townsend is a Director of Hansa Capital GmbH. During the year ended 31 December 2023, directors’ fees of US$0.1

million were paid to Mr. C Townsend through Hansa Capital GmbH (2022: US$0.1 million).

Remuneration of key management personnel

The remuneration of the executive directors and other key management of the Group is as follows:

	2023	2022
Short-term employee benefits	(5,007)	(4,914)
Post-employment benefits	(70)	(70)
Share based payment expense	(306)	(306)
Total remuneration of key management personnel	(5,383)	(5,290)

26 Share capital

The number of Company’s shares and corresponding share capital amounts are as follows:

		2023	2022
Authorised
50,060,000 ordinary shares of 20p each (2022:	50,060,000 ordinary shares of 20p each)	16,119	16,119
Issued and fully paid
35,363,040 ordinary shares of 20p each (2022:	35,363,040 ordinary shares of 20p each)	11,390	11,390

The Company has one class of ordinary share which carries no right to fixed income.

Share capital is converted at the exchange rate prevailing at 31 December 2002, the date at which the Group’s presentation

currency changed from Sterling to US Dollars, being US$1.61 to £1.

27 Equity transactions in subsidiaries

Share options in subsidiary

On 8 January 2014, the shareholders of the Group’s subsidiary Wilson Sons S.A. approved a share option plan which

allowed for the grant of options to eligible participants, including an increase in the authorised capital of Wilson Sons S.A.

through the creation of up to 26,465,562 new shares.

The options provide participants with the right to acquire shares in Wilson Sons S.A. at a predetermined fixed price, following

a vesting period of 3 to 5 years, and expire 10 years from the grant date, or immediately on the resignation of the employee,

whichever is earlier. Options lapse if not exercised by the employee within 6 months following retirement.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

33

The movement in share options and related weighted average exercise prices (“WAEP”) in Brazilian Real (R$) is as follows:

	2023		2022
	Number of		Number of
	shares	WAEP (R$)	shares	WAEP (R$)
Opening balance – 1 January	5,427,600	7.12	9,153,840	6.34
Granted during the period	-	-	-	-
Exercised during the period	(1,680,600)	5.38	(3,726,240)	5.21
Expired during the period	-	-	-	-
Outstanding at 31 December	3,747,000	7.90	5,427,600	7.12
Exercisable at 31 December	1,047,000	5.93	2,654,160	5.56

The options outstanding at 31 December 2023 had an exercise price in the range of R$5.67 to R$8.66 (2022: R$5.21 to

R$8.66) and a weighted-average contractual life of 6.1 years (2022: 5.4 years). The weighted average share price at the

date of exercise for the year ended 31 December 2023 was R$10.06 (2022: R$9.11).

During the year ended 31 December 2023, 1,680,600 share options of the Group’s subsidiary Wilson Sons S.A. were

exercised (2022: 3,726,240), resulting in an increase in non-controlling interest of 0.22% (2022: 0.48%).

Share buyback in subsidiary

On 13 May 2022, the board of directors of the Group’s subsidiary Wilson Sons S.A. approved a share buyback program

which allows for the repurchase of the subsidiary’s own common shares at market price for an 18-month period, which is

concluded as of 31 December 2023.

The weighted average share price at the date of repurchase for the year ended 31 December 2023 was R$10.47 (2022:

R$9.28).

During the year ended 31 December 2023, 1,150,500 shares of the Group’s subsidiary Wilson Sons S.A. were repurchased

(2022: 1,427,200), resulting in a decrease in non-controlling interest of 0.15% (2022: 0.19%).

28 Non-controlling interests

The information on the Group’s composition is presented in note 3. The non-controlling interests immaterial to the Group

originate from the Brazil – maritime services segment and are presented together as Other.

The information related to non-controlling interests is as follows:

	Wilson Sons
	S.A.	Other	Total
For the year ended 31 December 2023
Net assets attributable to non-controlling interest	214,218	92	214,310
Profit allocated to non-controlling interest	34,899	1,125	36,024
Other comprehensive income allocated to non-controlling interest	3,855	(3)	3,852
Dividends to non-controlling interest	23,704	1,544	25,248
For the year ended 31 December 2022
Net assets attributable to non-controlling interest	199,004	514	199,518
Profit allocated to non-controlling interest	27,858	2,295	30,153
Other comprehensive income allocated to non-controlling interest	3,213	(15)	3,198
Dividends to non-controlling interest	22,728	2,445	25,173

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

34

29 Dividends

The dividends declared and paid by the Company to its shareholders were as follows:

	2023	2022
70c per share (2022: 70c per share)	24,754	24,754

After the reporting date, the dividends proposed by the Board but not recognised as liabilities were as follows:

	2023	2022
70c per share (2022: 70c per share)	24,754	24,754

30 Earnings per share

The calculation of the basic and diluted earnings per share is as follows:

	2023	2022
Profit/(loss) for the year attributable to equity holders of the Company	66,230	(18,675)
Weighted average number of ordinary shares	35,363,040	35,363,040
Earnings per share – basic and diluted	187.3c	(52.8)c

The Company has no dilutive or potentially dilutive ordinary shares.

31 Capital risk management

The Group manages its capital to ensure that entities within the Group are viable and will be able to continue as a going

concern. The capital structure of the Group consists of debt, long term in nature, which includes the borrowings disclosed

in note 22 and the lease liabilities included in note 17, cash and cash equivalents, investments, and equity attributable to

equity holders of the Company comprising issued capital, reserves and retained earnings disclosed in the consolidated

statement of changes in equity.

The Group borrows to fund capital projects and looks to cash flow from these projects to meet repayments. Working capital

is funded through cash generated by operating activities. There were no significant changes during the year relative to the

Group policy relating to capital management.

32 Financial instruments

The carrying and fair value of financial instruments are as follows:

	2023		2022
	Carrying	Fair	Carrying	Fair
	value	value	value	value
Financial assets
Cash and cash equivalents	69,367	69,367	77,873	77,873
Investment portfolio	308,340	308,340	272,931	272,931
Trade and other receivables	78,735	78,735	67,136	67,136
Financial liabilities
Trade and other payables	(71,768)	(71,768)	(58,337)	(58,337)
Bank loans	(324,201)	(323,904)	(321,891)	(322,058)

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

35

The carrying value of cash and cash equivalents, trade and other receivables, and trade and other payable is a reasonable

approximation of their fair value.

The fair value of bank loans was established as their present value determined by future cash flows and interest rates

applicable to instruments of similar nature, terms and risks or at market quotations of these securities.

The fair value of the investment portfolio assets are based on quoted market prices at the close of trading at the end of the

period if traded in active markets and based on valuation techniques if not traded in active markets. These valuation

techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific

estimates.

Fair value measurements recognised in the consolidated financial statements are grouped into levels based on the degree

to which the fair value is observable.

Financial instruments whose values are based on quoted market prices in active markets are classified as Level 1. These

include active listed equities.

Financial instruments that trade in markets that are not considered active but are valued based on quoted market prices,

dealer quotations or alternative pricing sources supported by observable inputs are classified as Level 2. These include

open ended funds, certain private investments that are traded over the counter, and debt instruments.

Financial instruments that have significant unobservable inputs as they trade infrequently and are not quoted in an active

market are classified as Level 3. These include investments in limited partnerships and other private equity funds which

may be subject to restrictions on redemptions such as lock up periods, redemption gates and side pockets.

The Group considers the valuation techniques and inputs used in valuing these funds as part of its due diligence prior to

investing to ensure they are reasonable and appropriate. Therefore, the net asset value (“NAV”) of these funds may be

used as an input into measuring their fair value. In measuring this fair value, the NAV of the funds is adjusted, if necessary,

for other relevant factors known of the fund. In measuring fair value, consideration is also paid to any clearly identifiable

transactions in the shares of the fund.

Depending on the nature and level of adjustments needed to the NAV and the level of trading in the fund, the Group classifies

these funds as either Level 2 or Level 3. As observable prices are not available for these securities, the Group values these

based on an estimate of their fair value. The Group obtains the fair value of their holdings from valuation statements provided

by the managers of the invested funds. Where the valuation statement is not stated at the reporting date, the Group adjusts

the most recently available valuation for any capital transactions made up to the reporting date. When considering whether

the NAV of the underlying managed funds represent fair value, the Investment Manager considers the valuation techniques

and inputs used by the managed funds in determining their NAV.

The underlying funds use a blend of methods to determine the value of their own NAV by valuing underlying investments

using methodology consistent with the International Private Equity and Venture Capital Valuation Guidelines (‘IPEV’). IPEV

guidelines generally provides five ways to determine the fair market value of an investment: (i) binding offer on the company,

(ii) transaction multiples, (iii) market multiples, (iv) net assets and (v) discounted cash flows. Such valuations are necessarily

dependent upon the reasonableness of the valuations by the fund managers of the underlying investments. In the absence

of contrary information, these values are relied upon.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

36

The financial instruments recognised in the statement of financial position, by level of hierarchy, excluding financial

instruments for which the carrying amount is a reasonable approximation of fair value, are as follows:

	Level 1	Level 2	Level 3	Total
31 December 2023
Investment portfolio	34,058	156,829	117,453	308,340
Bank loans	-	(324,201)	-	(324,201)
31 December 2022
Investment portfolio	29,776	122,789	120,366	272,931
Bank loans	-	(321,891)	-	(321,891)

During the year ended 31 December 2023, no financial instruments were transferred between Level 1 and Level 2 (2022:

none).

During the year ended 31 December 2023, one open ended fund with a carrying value of US$5.3 million was transferred

from Level 3 to Level 2 because alternative pricing sources supported by observable inputs became available (2022: no

transfers between Level 2 and Level 3).

The movement in Level 3 financial instruments for the year is as follows:

	2023	2022
Balance at 1 January	120,366	129,685
Transfers from Level 3 to Level 2	(5,266)	-
Purchases of investments and drawdowns of financial commitments	8,153	12,830
Sales of investments and repayments of capital	(8,314)	(9,231)
Realised gains	3,943	4,526
Unrealised losses	(1,429)	(17,444)
Balance at 31 December	117,453	120,366
Cost	130,927	130,183
Cumulative unrealised losses	(13,474)	(9,817)

Investment in limited partnerships and private equity funds require a long-term commitment with no certainty of return. The

Group’s intention is to hold Level 3 investments to maturity. In the unlikely event that the Group is required to liquidate these

investments, the proceeds received may be less than the carrying value due to their illiquid nature.

The sensitivity of the Level 3 investments to changes in fair value due to illiquidity and its impact on proceeds received,

while all other variables are held constant, is as follows:

	2023	2022
Decrease of 5%	(5,873)	(6,018)
Decrease of 10%	(11,745)	(12,037)
Decrease of 20%	(23,491)	(24,073)

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the

Group. The Group’s credit risk is primarily attributable to its cash and cash equivalents, investments, and trade and other

receivables. The amounts presented as trade and other receivables in the consolidated statement of financial position are

shown net of allowances for credit loss.

Temporary cash surpluses are invested in time deposits, exchange funds, and fixed income investments, according to

regulations approved by management. Credit risk is limited because the counterparties to those investments are regulated

institutions or leading financial institutions with high credit ratings.

The level of credit risk associated with the investment portfolio is dependent upon the terms and conditions and the

management of each of the investment vehicles. The Investment Manager evaluates the credit risk on trading investments

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

37

prior to and during the investment period, and the Board reviews all investments at its regular meetings from reports

prepared by the Investment Manager.

The Group has no significant concentration of credit risk for trade receivables as they consist of a large number of customers

with no single customer representing more than 10% of the total trade receivables.

Allowance for expected credit losses for trade receivables

The Group recognises an allowance for expected credit losses based on an expected credit losses (“ECLs”) model and a

provision matrix, based on days past due for groupings of various customer segments that have similar loss patterns. The

provision matrix is initially based on the Group’s historical observed default rates, and will be adjusted, when appropriate,

to adjust the historical credit losses experience with forward-looking information.

The allowance for expected credit losses is as follows:

					More than
	Current	1-30 days	31-90 days	91-180 days	180 days	Total
31 December 2023
Expected credit loss rate	0.04%	0.04%	2.56%	19.63%	64.73%
Receivables for services	48,593	9,313	6,561	954	1,896	67,317
Allowance for expected credit losses	(17)	(3)	(168)	(187)	(1,248)	(1,623)
31 December 2022
Expected credit loss rate	0.05%	0.05%	2.56%	7.48%	63.70%
Receivables for services	44,699	5,997	2,461	1,236	936	55,329
Allowance for expected credit losses	(24)	(3)	(63)	(92)	(610)	(792)

Foreign currency risk

The Brazil – maritime services segment operates principally in Brazil with a substantial proportion of its revenue, expenses,

assets and liabilities denominated in Real, exposing the Group to exchange rate fluctuations. Due to the high cost of hedging

transactions denominated in Real, the Group does not normally hedge its net exposure to the Real, as the Board does not

consider it economically viable.

Purchases and sales of goods and services are denominated in Real and US Dollars. These transactions are subject to

currency fluctuations between the time that the price of goods or services are settled and the actual payment date. For

investing and financing cash flows, the resources and their application are monitored with the objective of matching the

currency cash flows and due dates. For operating cash flows, the Group seeks to neutralise the currency risk by matching

assets (receivables) and liabilities (payments).

Furthermore, the Group has contracted US Dollar denominated and Real denominated debt, and the cash and cash

equivalents balances are also US Dollar denominated and Real denominated. The Group seeks to generate an operating

cash surplus in the same currency in which the debt service of each business is denominated.

The Bermuda – investments segment operates internationally and holds monetary assets denominated in currencies other

than the US Dollar, the functional currency. Foreign currency risk arises as the value of future transactions, recognised

monetary assets and monetary liabilities denominated in other currencies fluctuate due to changes in foreign exchange

rates.

The Group's policy is not to manage its exposure to foreign exchange movements in the investment portfolio by entering

into any foreign exchange hedging transactions. Instead, when the Investment Manager formulates a view on the future

direction of foreign exchange rates and the potential impact on the investment portfolio, the Investment Manager factors

that into its portfolio allocation decisions.

The carrying amount of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting

date are as follows (presented in US Dollar):

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

38

	Assets		Liabilities
	2023	2022	2023	2022
Real	205,428	157,063	(461,336)	(395,616)
Sterling	13,575	12,241	(20)	(19)
Swiss Franc	1,983	2,341	-	-
Euro	15,747	15,083	-	-
Yen	4,948	4,226	-	-
Total foreign currency denominated monetary items	241,681	190,954	(461,356)	(395,635)

The Group is primarily exposed to unfavourable movements in the Real on its Brazilian monetary assets and liabilities held

by US Dollar functional currency entities. The sensitivity analysis below refers to the position at the end of the reporting

period and estimates the impacts of a Real devaluation against the US Dollar, considering three scenarios: a likely scenario

(probable), a 25% devaluation scenario (possible) and a 50% devaluation scenario (remote). The Group uses the Brazilian

Central Bank’s “Focus” report to determine the probable scenario.

			Probable	Possible scenario	Remote scenario
	Currency	Amount (US$)	scenario	(25%)	(50%)
31 December 2023
Projected exchange rate			4.95	6.19	7.43
Total assets	BRL	205,428	(4,511)	(44,694)	(71,483)
Total liabilities	BRL	(461,336)	10,131	100,372	160,532
Net impact			5,623	55,706	89,094
31 December 2022
Projected exchange rate			5.25	6.56	7.88
Total assets	BRL	157,063	(934)	(32,160)	(52,977)
Total liabilities	BRL	(395,616)	2,434	81,070	133,495
Net impact			1,500	48,910	80,518

The US Dollar/Brazilian Real exchange rate was 4.84 at 31 December 2023 (2022: 5.22).

Market price risk

By the nature of its activities, the Bermuda – investments segment’s investments are exposed to market price fluctuations.

However, the portfolio as a whole does not correlate directly to any Stock Exchange Index as it is invested in a diversified

range of markets. The Investment Manager and the Board monitor the portfolio valuation on a regular basis and

consideration is given to hedging the portfolio against large market movements.

The sensitivity of the investment portfolio to changes in market prices and the impact on its fair value and returns at the end

of the financial year, while all other variables are held constant, is as follows:

	2023	2022
Decrease of 5%	(15,417)	(13,647)
Decrease of 10%	(30,834)	(27,293)
Decrease of 20%	(61,668)	(54,586)

Interest rate risk

Entities within the Group borrow funds at both fixed and floating interest rates. The Group is primarily exposed to

unfavourable movements in the interest rate impacting its floating interest rate borrowings, which are partially being offset

by the impact on its floating interest rates investments.

The sensitivity analysis below refers to the position at the end of the reporting period and estimates the impacts of

unfavourable movement in the interest rates, considering three scenarios: a likely scenario (probable), a 25% increase in

interest rates over the likely scenario (possible) and a 50% increase in interest rates over the likely scenario (remote). The

net impact was obtained by assuming a 12-month period starting at the beginning of the period in which interest rates vary

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

39

and all other variables are held constant. The Group uses the Brazilian Central Bank’s “Focus” report to determine the

probable scenario.

			Probable	Possible	Remote
	Risk	Amount (US$)	scenario	scenario (25%)	scenario (50%)
31 December 2023
Borrowing	Brazilian Interbank Interest Rate	(38,361)	452	(265)	(967)
Borrowing	Brazilian Long-Term Interest Rate	(481)	-	(5)	(9)
Borrowing	Brazilian National Consumer Prices	(58,893)	-	(663)	(1,319)
Borrowing	N/A (fixed interest rates)	(226,466)	-	-	-
Investments	Brazilian Interbank Interest Rate	29,649	(765)	(183)	398
Net impact			(313)	(1,116)	(1,897)
31 December 2022
Borrowing	Brazilian Interbank Interest Rate	(28,257)	(10)	(719)	(1,408)
Borrowing	Brazilian Long-Term Interest Rate	(564)	-	(6)	(12)
Borrowing	Brazilian National Consumer Prices	(55,964)	-	(788)	(1,566)
Borrowing	N/A (fixed interest rates)	(237,106)	-	-	-
Investments	Brazilian Interbank Interest Rate	22,014	177	1,156	2,136
Net impact			167	(357)	(850)

Concentration risk

By the nature of its activities, the Bermuda – investments segment’s investments are exposed to concentration of credit risk

and market risk based on geographic exposure and sector exposure. The Investment Manager and the Board monitor the

portfolio composition on a regular basis to ensure it remains invested in a diversified range of markets to limit the

concentration of exposure by geography and by sector.

At 31 December 2023, the Group has identified concentration risk for the investment portfolio due to its geographic exposure

of US$156.7 million or 50.8% in North America (2022: US$134.3 million or 49.2%) and its sector exposure of US$72.6

million or 23.5% in information technology (2022: US$66.4 million or 24.3%). These exposures are based on the immediate

investment into investment vehicles and may be further affected by specific allocation of assets within those vehicles.

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in fulfilling obligations associated with its financial liabilities

that are settled with cash payments or other financial assets. The Group’s approach in managing liquidity is to ensure that

the Group always has sufficient liquidity to fulfil its obligations that expire and to meet the expected operational expenses,

under normal and stressed conditions, to avoid damage to the reputation of the Group. The Group manages liquidity risk

by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast

and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Group expects to meet its

other obligations from operating cash flows and proceeds of maturing financial assets.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

(Expressed in thousands of US Dollars)

40

The following table details the Group’s remaining contractual maturity for its financial liabilities, showing the undiscounted

cash flows of financial liabilities based on the earliest date on which the Group can be required to pay, including both interest

and principal payments.

	Weighted average	Less than 12
	effective interest rate%	months	1-5 years	5+ years	Total
31 December 2023
Variable interest rate instruments	11.06%	(26,595)	(50,002)	(33,384)	(109,981)
Fixed interest rate instruments	2.95%	(48,629)	(124,663)	(94,574)	(267,866)
Lease liability	13.07%	(30,196)	(95,752)	(382,424)	(508,372)
Total contractual cash outflows		(105,420)	(270,417)	(510,382)	(886,219)
31 December 2022
Variable interest rate instruments	12.29%	(24,954)	(48,690)	(33,479)	(107,123)
Fixed interest rate instruments	2.89%	(47,537)	(125,319)	(94,714)	(267,570)
Lease liability	8.06%	(25,958)	(79,783)	(355,360)	(461,101)
Total contractual cash outflows		(98,449)	(253,792)	(483,553)	(835,794)

Limitations of sensitivity analysis

The sensitivity information included in note 32 demonstrates the estimated impact of a change in a major input assumption

while other assumptions remain unchanged. There are normally significant levels of correlation between the assumptions

and other factors.

41

Five Year Summary (Unaudited)

2023

2022

2021

2020

2019

Income Statement

Sales of services

486,646

440,107

396,376

352,792

406,128

Raw materials and consumables used

(35,467)

(32,956)

(24,036)

(19,266)

(25,290)

Employee charges and benefits expenses

(142,391)

(126,330)

(112,026)

(110,016)

(140,348)

Other operating expenses

(113,242)

(104,265)

(98,289)

(84,666)

(89,207)

Depreciation and amortisation expense

(71,768)

(64,435)

(61,412)

(61,323)

(66,122)

Impairment charge

-

(13,025)

Gain/(loss) on disposal of fixed assets

1,713

100

(499)

65

294

Foreign exchange gain/(loss) on monetary items

246

1,620

(3,100)

(7,551)

(79)

Operating profit

125,737

113,841

97,014

70,035

72,351

Share of results of joint ventures and associates

6,447

3,165

(5,029)

(4,142)

564

Returns on investment portfolio

28,302

(47,947)

49,474

33,383

34,716

Investment portfolio performance and

management fees

(2,996)

(3,047)

(4,954)

(3,130)

(3,417)

Other income

7,798

6,631

4,113

1,644

6,052

Finance costs

(35,425)

(34,509)

(30,227)

(23,210)

(27,736)

Profit before tax

129,863

38,134

110,391

74,580

82,530

Tax expense

(27,609)

(26,656)

(27,925)

(26,577)

(21,481)

Profit for the year

102,254

11,478

82,466

48,003

61,049

Profit for the year attributable to:

Equity holders of the Company

66,230

(18,675)

63,687

38,712

46,852

Non-controlling interests

36,024

30,153

18,779

9,291

14,197

102,254

11,478

82,466

48,003

61,049

Statement of financial position

Current assets

522,561

467,343

518,523

492,769

460,616

Non-current assets

998,486

933,944

861,824

861,093

981,011

Total assets

1,521,047

1,401,287

1,380,347

1,353,862

1,441,627

Current liabilities

(182,238)

(153,236)

(131,306)

(124,276)

(115,678)

Non-current liabilities

(523,813)

(493,925)

(465,369)

(485,879)

(540,089)

Total liabilities

(706,051)

(647,161)

(596,675)

(610,155)

(655,767)

Net assets

814,996

754,126

783,672

743,707

785,860

Key Statistics

Earnings per share (US$)

187.3c

(52.8)c

180.1c

109.5c

132.5c

Cash dividends per share paid (US$)

70.0c

Book value per share (US$)

$34.68

$22.69

$22.16

$21.03

$22.22

Company share price at period closing

£12.00

£9.30

£9.32

£8.45

£9.90

Company share price at period closing (US$)

$15.28

$11.24

$12.62

$11.55

$13.13