ASBISC ENTERPRISES PLC
REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ASBISC ENTERPRISES PLC
REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
CONTENTS
PAGE
Officers and professional advisers
1
Declaration by the members of the Board of Directors and the Company officials responsible
for the drafting of the consolidated and separate financial statements
2
Management report
3 – 5
Independent Auditors’ report
6 – 13
Consolidated income statement
14
Consolidated statement of comprehensive income
15
Consolidated statement of financial position
16
Consolidated statement of changes in equity
17
Consolidated statement of cash flows
18
Parent Company statement of comprehensive income
19
Parent Company statement of financial position
20
Parent Company statement of changes in equity
21
Parent Company statement of cash flows
22
Notes to the financial statements
23 – 79
ASBISC ENTERPRISES PLC
1
OFFICERS AND PROFESSIONAL ADVISERS
Board of Directors
Siarhei Kostevitch (Cypriot)
Chairman and Chief Executive Officer
Marios Christou (Cypriot)
Chief Financial Officer
Constantinos Tziamalis (Cypriot)
Deputy Chief Executive Officer
Julia Prihodko (Ukrainian)
Chief Human Relations Officer
Tasos A.Panteli (Cypriot)
Non-Executive Director
Maria Petridou (Cypriot)
Non-Executive Director
Secretary
Alfo Secretarial Limited
Limassol, Cyprus
Registered office
Independent auditors
KPMG Limited
Limassol, Cyprus
Legal adviser
Costas Tsirides & Co. Law Office
Limassol, Cyprus
Bankers
Tatrabanka a.s.
Všeobecná Uverová Banka a.s.
Raiffeisen Bank International AG
Bank of Cyprus Public Company Ltd
Global Supply Chain Finance Ltd
Barclays Bank Plc
Alpha Bank Group
Tascombank JSC
JSC Halyk Bank
JSC Bank Centercredit
Ceskoslovenska Obchodni Banka, A.S
Société Générale Group
National Bank of Fujairah
Emirates Islamic Bank PJSC
Erste and Steiermaerkische Bank D.D.
First Ukrainian International bank
Joint-stock Company OTP Bank
OP Corporate Bank Plc
Unicredit Group
ASBISC ENTERPRISES PLC
DECLARATION BY THE MEMBERS OF THE BOARD OF DIRECTORS AND THE COMPANY OFFICIALS
RESPONSIBLE FOR THE DRAFTING OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
(In accordance with the provisions of Law 190(I)/2007 on Transparency Requirements)
In accordance with Article 9, sections (3c) and (7), of the Transparency Requirements (Traded Securities in a
Regulated Market) Law 190(I)/2007, as amended from time to time (the “Law”), we, the members of the Board
of Directors and the Financial Controller responsible for the drafting of the consolidated financial statements of
Asbisc Enterprises Plc (the “Company”) and its subsidiaries (the “Group”) and the Company’s separate financial
statements for the year ended 31 December 2022, confirm to the best of our knowledge that:
a) the consolidated financial statements of the Group and the Company’s separate financial statements for the
year ended 31 December 2022 which are presented on pages 14 to 79:
(i) have been prepared in accordance with the International Financial Reporting Standards as adopted
by the European Union and the provisions of subsection (4) of Article 9 of the Law, and
(ii) give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group
and the Company, and
b) the management report provides a fair review of the development and performance of the business and the
position of the Group and the Company, together with a description of the principal risks and uncertainties that
they face.
Members of the Board of Directors
Siarhei Kostevitch
Chairman and Chief Executive Officer
Marios Christou
Executive Director
Constantinos Tziamalis
Executive Director
Julia Prihodko
Executive Director
Tasos A.Panteli
Non-Executive Director
Maria Petridou
Non-Executive Director
Financial Controller
Loizos Papavassiliou
Limassol, 29 March 2023
ASBISC ENTERPRISES PLC
3
MANAGEMENT REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Directors present their annual report on the affairs of Asbisc Enterprises Plc (the “Company” or the “parent
Company”) and its subsidiaries (together with the Company, the “Group”) together with the Group’s and the
Company’s audited financial statements for the year ended 31 December 2022.
Principal activity
The principal activity of the Group and the Company continues to be the worldwide trading and distribution of
computer hardware and software.
Group financial statements
The consolidated financial statements include the financial statements of the Company and those of its subsidiary
companies. The names and more details about the subsidiaries are shown in note 11 to the financial statements.
Review of the development, financial performance and current position of the Group and the Company
and the description of its major risks and uncertainties
The Group’s and the Company’s development to date, financial results and position are presented in the financial
statements on pages 14 to 79.
The key performance and financial position figures are as follows:
(in thousands of US$)
Due to the war in Ukraine, the Group reorganized its sales, developed business in non-conflict growth markets,
expanded its product portfolio, focused on more profitable segments and initiated the development in new markets.
Thanks to these actions, revenues only slightly decreased as compared to highest ever 2021 revenues. We have
also enjoyed higher gross profit margins and finished with a quite strong profitability as compared to the best year
ever profitability of 2021.
The Group and the Company face the following major risks and uncertainties:
• competitive pressures in the marketplace it operates that may significantly affect gross and net margins
• technological changes and other market trends
• financial and other risks as described in notes 34 and 35.
The Group has systems and procedures in place to maintain its expertise and keep it aware of changes in its
marketplace to help mitigate market risks. It also has rigorous controls to help mitigate financial and other risks.
These are described in notes 34 and 35 to the financial statements.
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Revenue
2,690,039
3,077,976
1,787,965
2,205,401
Gross profit
227,831
218,528
70,956
84,842
Profit before tax
91,046
94,242
39,231
74,168
Taxation
(15,176)
(17,175)
(5,003)
(8,506)
Profit for the year
75,870
77,067
34,228
65,662
Earnings per share (US$ cents)
137.10
138,86
N/A
N/A
Total equity
244,180
189,464
152,236
135,576
Average number of employees
during the year
2,222
2,079
220
167
Significant events after the end of the financial year
There are no significant events after the reporting date that require disclosure in or adjustment to the financial
statements.
Existence of branches
The Company also operates through a warehouse in the Czech Republic.
Expected future developments of the Group and the Company
The Directors do not expect any significant changes in the activities of the Group and the Company for the foreseeable
future.
ASBISC ENTERPRISES PLC
4
MANAGEMENT REPORT (continued)
Employees
During 2022 we have employed an average number of 2,222 employees, of whom 220 were employed by the Company
and the remainder in the rest of the Group’ s offices worldwide. The split of employees by area of activity is as follows:
As at 31 December
2022
2021
Sales and Marketing
1,213
1,093
Administration and IT
338
358
Finance
200
197
Logistics
471
431
Total
2,222
2,079
Research and Development
In 2022, the Group spent US$ 1,556,801 (2021: US$ 922,353) on Research and Development, focusing on development
of tablets, small home appliances and other product lines that are sold under the Prestigio, Canyon and Perenio own
brands in all regions of the Company’s operations. The Group will continue to have research and development
expenditures to support the design and development of own brand products in order to maintain and enhance its
competitive position.
Dividends
Our dividend policy is to pay dividends at levels consistent with our growth and development plans, while maintaining
a reasonable level of liquidity. During the year, the following dividends were declared and paid by the Company:
• A final dividend of US$ 0.10 per share for the year 2021, amounting to US$ 5,550,000
• An interim dividend of US$ 0.20 per share for the year 2022, amounting to US$ 11,100,000
The Board of Directors also proposes the payment of a final dividend of US$ 0.25 per share for the year 2022,
amounting to US$ 13,875,000 based on improved 2022 profitability.
Share Capital
On 31 December 2022 the issued and fully paid up share capital of the Company consisted of 55,500,000 ordinary
shares of US$ 0.20 each. There were no changes in the share capital of the Company during the year and up to the
date of these financial statements.
Board of Directors
The members of the Board of Directors at 31 December 2022 and at the date of this report are set out on page 1.
They were all members of the Board of Directors throughout the year. There were no significant changes in the
assignment of the responsibilities of the members of the Board of Directors. The remuneration of the members of the
Board of Directors is disclosed in notes 5 and 30 to the financial statements.
In accordance with the Company's Articles of Association, Mr. Siarhei Kostevich and Mr. Marios Christou who are subject
to retirement by rotation, retire at the next annual general meeting of the Company and, being eligible, offer themselves
for re-election.
Corporate Governance
The Directors of the Company recognize the importance of corporate governance policies, practices and procedures.
Being listed on the Warsaw Stock Exchange in Poland, the Company follows the provisions of Corporate Governance
of the Warsaw Stock Exchange Code of Best Practices, to the extent practicable and appropriate for a public company
of the size of the Company. Those rules, information on their application and any deviation can be found on the
Company’s internet site for investors at http://investor.asbis.com and http://inwestor.asbis.pl.
The Board of the Company has two committees:
• the Audit Committee and
• the Remuneration Committee
The Remuneration Committee consists of the two non-executive Directors together with the Chairman. The Audit
Committee consists of the two non-executive Directors. More information on the composition and functions of the
committees is given in the corporate governance statement.
ASBISC ENTERPRISES PLC
5
MANAGEMENT REPORT (continued)
Main shareholders
The following table presents shareholders possessing directly or indirectly more than 5% of the Company’s shares and
shares held by the Company under the share buyback program as at 31 December 2022:
Name
Number of
votes/shares
Votes/share
capital
%
Siarhei Kostevitch and KS Holdings Ltd
20,448,127
36.84
ASBISc Enterprises Plc (Buy-back program)
328,800
0.59
Free float
34,723,073
62.57
55,500,000
100.00
Following an extraordinary general meeting of the shareholders on 28
th
March 2022, a share buyback program with
the following conditions was approved:
• the maximum amount of money that can be used to realize the program is US$ 1,000,000
• the maximum number of shares that can be bought within the program is 2,000,000 shares
• the program's time frame is 12 months from the resolution date
• the shares purchased within the program could be held for a maximum of two years from acquisition
• the minimum price for transaction of purchase of shares within the program is PLN 1.0 per share with the
maximum price of PLN 30.0 per share
At the end of 2022 the Company held a total of 328,800 (2021: nil) shares purchased under the buyback program.
Auditors
The independent auditors of the Company, Messrs KPMG Limited, have expressed their willingness to continue in office
and a resolution authorizing the Board of Directors to fix their remuneration will be submitted at the forthcoming annual
general meeting.
BY ORDER OF THE BOARD OF DIRECTORS
Director
Limassol, 29 March 2023
ASBISC ENTERPRISES PLC
The notes on pages 23 to 79 form an integral part of these consolidated financial statements.
14
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
2022
2021
Note
US$
US$
Revenue
3
Cost of sales
(2,462,208 )
(2,859,448 )
Gross profit
Selling expenses
(69,217 )
(62,286 )
Administrative expenses
(47,620 )
(42,493 )
Profit from operations
Financial income
6
Financial expenses
6
(25,694 )
(24,313 )
Net finance costs
(20,734 )
(19,687 )
Other gains and losses
4
Share of loss of equity-accounted investees
12
(162 )
Profit before tax
5
Taxation
7
(15,176 )
(17,175 )
Profit for the year
Attributable to:
Equity holders of the parent
Non-controlling interests
US$ cents
US$ cents
Earnings per share
Basic and diluted from continuing operations 32
ASBISC ENTERPRISES PLC
The notes on pages 23 to 79 form an integral part of these consolidated financial statements.
15
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
2022
2021
US$
US$
Profit for the year
Other comprehensive loss:
Exchange difference on the translation of foreign operations
(4,039 )
(1,764 )
Reclassification adjustments relating to foreign operations liquidated and
disposed of in the year
Other comprehensive loss for the year
(3,757 )
(1,702 )
Total comprehensive income
Attributable to:
Equity holders of the parent
Non-controlling interests
(15 )
ASBISC ENTERPRISES PLC
The notes on pages 23 to 79 form an integral part of these consolidated financial statements.
16
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
(in thousands of US$)
2022
2021
Notes
US$
US$
ASSETS
Non-current assets
Property, plant and equipment
8
Intangible assets
9
Investment property
10
Equity-accounted investees
12
Goodwill
33
Financial assets at fair value through other comprehensive income
13
Deferred tax assets
23
Total non-current assets
Current assets
Inventories
15
Trade receivables
16
Other current assets
17
Derivative financial assets
28
Current taxation
7
Cash at bank and in hand
29
Total current assets
Total assets
EQUITY AND LIABILITIES
Equity
Share capital
18
Share premium
Retained earnings and other components of equity
Equity attributable to owners of the parent
Non-controlling interests
Total equity
Non-current liabilities
Long-term borrowings
20
Other long-term liabilities
21
Deferred tax liabilities
23
Total non-current liabilities
Current liabilities
Trade payables and prepayments
25
Trade payables factoring facilities
14
Other current liabilities
24
Short-term borrowings
19
Derivative financial liabilities
27
Current taxation
7
Total current liabilities
Total liabilities
Total equity and liabilities
ASBISC ENTERPRISES PLC
The notes on pages 23 to 79 form an integral part of these consolidated financial statements.
17
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
Attributable to the owners of the parent
Share
capital
Share
premium
Treasury
stock
Translation
of foreign
operations
Retained
earnings
Total
Non-
controlling
interests
Total
US$
US$
US$
US$
US$
US$
US$
US$
Balance at 1 January 2021
(212 )
(10,752 )
Total comprehensive income
Profit for the year
-
-
-
-
Other comprehensive loss for the year
-
-
-
(1,679 )
-
(1,679 )
(23 )
(1,702 )
Transactions with owners of the Company
Changes in ownership interests
Non-controlling interest on increase of the share capital of subsidiary
-
-
-
-
-
-
Disposal of non-controlling interest without a change in control
-
-
-
-
-
-
Elimination of minority interest at disposal
-
-
-
-
-
-
Contributions and distributions
Final dividend declared (Note 36)
-
-
-
-
(22,192 )
(22,192 )
-
(22,192 )
Treasury shares sold
-
-
-
-
Balance at 31 December 2021
-
(12,431 )
Total comprehensive income
Profit for the year
-
-
-
-
Other comprehensive loss for the year
-
-
-
(3,739 )
-
(3,739 )
(18 )
(3,757 )
Transactions with owners of the Company
Changes in ownership interests
Increase of share capital of subsidiary with non-controlling interest
-
-
-
-
-
-
Contributions and distributions
Acquisition of treasury shares
-
-
(996 )
-
-
(996 )
-
(996 )
Final dividend declared (Note 36)
-
-
-
-
(16,571 )
(16,571 )
-
(16,571 )
Balance at 31 December 2022
(996 )
(16,170 )
The retained earnings shown above at 31 December 2022 were readily distributable up to the amount of US$ 118,412 which represents the retained earnings of the Company. The
remaining amount in retained earnings of US$ 107,404 represents the earnings retained in the subsidiary companies of the Group. Share premium represents the difference between
the issue price of the shares of the Company and their nominal value. The share premium can only be resorted to for limited purposes, which do not include the distribution of
dividends, and is otherwise subject to the provisions of the Cyprus Companies Law, Cap. 113 on reduction of share capital. The translation reserve comprises all foreign currency
differences from the translation of the financial statements of foreign operations. Treasury stock represents the remaining balance of own shares bought back (note 18).
ASBISC ENTERPRISES PLC
The notes on pages 23 to 79 form an integral part of these consolidated financial statements.
18
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
20
2
2
20
2
1
Note
US$
US$
Profit for the year
before tax
Adjustments for:
Exchange difference arising on consolidation
(
)
(580 )
Depreciation of property, plant and equipment
8
Amortization of intangible assets
9
Depreciation of investment property
10
Provision for slow moving and
obsolete stock
1
5
(604 )
Share of
loss
of equity
-
accounted investees
1
2
Loss from the sale of property, plant and equipment and intangible assets
4
Profit from disposal of subsidiaries (1 )
Provision for bad debts and
receivables written off
1
6
Bad debts recovered
4
(
)
(11 )
Interest received
6
(
)
(146 )
Interest paid
Operating profit before working capital changes 108,427
Increase in inventories
(192,983 )
(46,400 )
Decrease
/
(increase)
in trade receivables
(56,770 )
(In
crease
)
/
de
crease
in other current assets
(11,848 )
Increase in trade payables and prepayments
Decrease
in trade payables factoring
facilities
(10,274 )
(23,105 )
Increase in other current liabilities
Increase in other non
-
current liabilities
Decrease
in factoring creditors
(
)
(6,914 )
Cash
(
outflows
)/
inflows from operations
(28,761 )
Interest paid
6
(10,886 )
(5,660 )
Taxation paid, net
7
(
)
(18,370 )
Net cash
(
outflows
)/
inflows from operating activities
(56,048 )
Cash flows from investing activities
Purchase of intangible assets
9
(
)
(694 )
Purchase of property, plant and equipment
(11,109 )
(13,284 )
Proceeds/(write-offs) from sale of property, plant and equipment and
intangible assets
(11 )
Net proceeds from disposal of subsidiaries
Net cash disposed of from disposal of subsidiaries
Increase of share capital of subsidiary with
non
-
controlling
interest
Payment
s
for purchase of investments in subsidiaries
(37 )
Payments for purchase of investments in associates
(1,568 )
(1,149 )
Interest received
6
Net cash outflows from investing activities (11,075 )
(15,029 )
Cash flows from financing activities
(Acquisition of)/
p
roceeds from
t
reasury shares
(996 )
Payment of final dividend
(
)
(22,192 )
Repayments of long-term loans and long-term obligations under finance
lease
(1,190 )
(2,882 )
Proceeds of short-term borrowings and short-term obligations under
finance lease
Net cash inflows from financing activities 8,555
Net
(
decrease
)
/
increase
in cash and cash equivalents
(58,568 )
Cash and cash equivalents at the beginning
of the year
Cash and cash equivalents at the end of the year
2
9
ASBISC ENTERPRISES PLC
The notes on pages 23 to 79 form an integral part of these consolidated financial statements.
19
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
2022
2021
Note
US$
US$
Revenue
3
1,787,965
2,205,401
Cost of sales
(1,717,009)
(2,120,559)
Gross profit
70,956
84,842
Selling expenses
(11,956)
(10,021)
Administrative expenses
(22,579)
(17,375)
Profit from operations
36,421
57,446
Financial income
6
3,807
2,844
Financial expenses
6
(3,849)
(5,673)
Net finance costs
(42)
(2,829)
Other gains and losses
4
3,014
19,545
Share of (loss)/profit of equity-accounted investees
(162)
6
Profit before tax
5
39,231
74,168
Taxation
7
(5,003)
(8,506)
Profit for the year
34,228
65,662
Other comprehensive income for the year
-
-
Total comprehensive income for the year
34,228
65,662
ASBISC ENTERPRISES PLC
The notes on pages 23 to 79 form an integral part of these consolidated financial statements.
20
PARENT COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
(in thousands of US$)
2022
2021
Notes
US$
US$
ASSETS
Non-current assets
Property, plant and equipment
8
22,446
17,356
Intangible assets
9
691
1,312
Investment property
10
4,404
-
Investment in subsidiary companies
11
21,241
18,211
Financial assets at fair value through other comprehensive
income
13
1,515
-
Equity-accounted investees
12
1,640
1,749
Total non-current assets
51,937
38,628
Current assets
Inventories
15
221,481
102,287
Trade receivables
16
53,314
48,585
Other current assets
17
157,852
174,694
Derivative financial assets
28
316
164
Cash at bank and in hand
29
64,375
98,168
Total current assets
497,338
423,898
Total assets
549,275
462,526
EQUITY AND LIABILITIES
Equity
Share capital
18
11,100
11,100
Share premium
23,721
23,721
Retained earnings and other components of equity
117,416
100,755
Total equity
152,237
135,576
Non-current liabilities
Long-term borrowings
20
4,412
725
Deferred tax liabilities
23
115
275
Total non-current liabilities
4,527
1,000
Current liabilities
Trade payables and prepayments
25
253,532
218,677
Trade payables factoring facilities
14
15,443
25,911
Other current liabilities
24
104,306
64,752
Short-term borrowings
19
16,569
13,444
Derivative financial liability
27
256
129
Current taxation
7
2,405
3,037
Total current liabilities
392,511
325,950
Total liabilities
397,038
326,950
Total equity and liabilities
549,275
462,526
ASBISC ENTERPRISES PLC
The notes on pages 23 to 79 form an integral part of these consolidated financial statements.
21
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
Share capital
Share
premium
Treasury
stock
Retained
earnings
Total
US$
US$
US$
US$
US$
Balance at 1 January 2021
11,100
23,518
(212)
57,285
91,691
Total comprehensive income
Profit for the year
-
-
-
65,662
65,662
Transactions with owners of the
Company
Contributions and distributions
Final dividend declared (Note 36)
-
-
-
(22,192)
(22,192)
Treasury shares sold
-
203
212
-
415
Balance at 31 December 2021
11,100
23,721
-
100,755
135,576
Total comprehensive income
Profit for the year
-
-
-
34,228
34,228
Transactions with owners of the
Company
Contributions and distributions
Final dividend declared (Note 36)
-
-
-
(16,571)
(16,571)
Acquisition of treasury shares
-
-
(996)
-
(996)
Balance at 31 December 2022
11,100
23,721
(996)
118,412
152,237
The retained earnings shown above at 31 December 2022 were readily distributable up to the amount of US$ 118,412
which represents the retained earnings of the Company. Share premium represents the difference between the issue
price of the shares and their nominal value. The share premium can only be resorted to for limited purposes, which do
not include the distribution of dividends, and is otherwise subject to the provisions of the Cyprus Companies Law, Cap.
113 on reduction of share capital.
Companies which do not distribute 70% of their profits after tax, as defined by the relevant Cyprus tax law, within two
years after the end of the relevant tax year, will be deemed to have distributed as dividends 70% of these profits.
Special contribution for defence at 17% is payable on such deemed dividends to the extent that the ultimate
shareholders (physical persons) are Cyprus domiciled tax residents. The amount of deemed distribution is reduced by
any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is
payable by the Company for the account of the shareholders.
Dividends paid to non-Cyprus tax resident shareholders are not subject to withholding tax in Cyprus. Dividends paid to
Cyprus tax resident domiciled physical persons are subject to withholding tax at the above rates.
Treasury stock represents the remaining balance of own shares bought back (note 18).
ASBISC ENTERPRISES PLC
The notes on pages 23 to 79 form an integral part of these consolidated financial statements.
22
PARENT COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
2022
2021
Note
US$
US$
Profit for the year before tax
39,231
74,168
Adjustments for:
Depreciation of property, plant and equipment
8
991
755
Amortization of intangible assets
9
1,032
959
Depreciation of investment property
10
30
-
Impairment loss on investments in subsidiaries
4
-
2,357
Loss/(profit) from the sale of property, plant and equipment and
intangible assets
4
25
(24)
Provision for bad debts and receivables written off
1,003
1,859
Provision for slow moving and obsolete stock
15
2,273
(586)
Share of loss/(profit) of equity-accounted investees
162
(6)
Dividend income
4
(591)
(12,251)
Interest received
6
(93)
(70)
Interest paid
243
139
Operating profit before working capital changes
44,306
67,300
(Increase)/decrease in inventories
(121,466)
10,344
Increase trade receivables
(5,732)
(2,274)
Decrease in other current assets
16,689
6,719
Increase/(decrease) in trade payables and prepayments
34,855
(51,314)
Decrease in trade payables factoring facilities
(10,468)
(25,492)
Increase in other current liabilities
39,885
10,824
Decrease in factoring creditors
(2,100)
(281)
Cash (outflows)/inflows from operations
(4,031)
15,826
Interest paid
6
(177)
(81)
Taxation paid, net
7
(5,794)
(8,691)
Net cash (outflows)/inflows from operating activities
(10,002)
7,054
Cash flows from investing activities
Purchase of intangible assets
9
(410)
(399)
Purchase of property, plant and equipment
(5,985)
(11,169)
(Write-offs)/proceeds from sale of property, plant and equipment and
intangible assets
(28)
24
Interest received
93
70
Dividends received
4
591
12,251
Proceeds from sale of treasury shares
-
418
Net increase in equity-accounted investees
-
(361)
Payments for purchase of investments in associates
(1,568)
-
Net increase in investment in subsidiary companies
(3,302)
(3,788)
Net cash outflows from investing activities
(10,609)
(2,954)
Cash flows from financing activities
Payment of final dividend
36
(16,571)
(22,192)
Proceed/(repayments) of long-term loans and long-term obligations under
finance lease
275
(410)
Acquisition of treasury shares
(996)
-
Repayments of short-term borrowings and short-term obligations under
finance lease
(712)
(62)
Net cash outflows from financing activities
(18,004)
(22,664)
Net decrease in cash and cash equivalents
(38,615)
(18,564)
Cash and cash equivalents at the beginning of the year
97,826
116,390
Cash and cash equivalents at the end of the year
29
59,211
97,826
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
23
1. Incorporation and principal activities
limited liability. The Group’s and the Company’s principal activity is the trading and distribution of computer hardware
K.S. Holdings Limited, a Company incorporated in Cyprus . The details of the Company’s registered office are disclosed
on page 1.
The Company is listed on the Warsaw Stock Exchange since 30 October 2007.
2. Significant accounting policies
Changes in significant accounting policies
The accounting policies adopted for the preparation of these consolidated and separate financial statements for the
twelve months ended 31 December 2022 are consistent with those followed for the preparation of the annual financial
statements for the year 2021.
Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards as
adopted by the European Union (“IFRS-EU”) and the requirements of the Cyprus Companies Law, Cap.113.
The financial statements were approved by the Board of Directors and authorized for issue on the 29
th
of March 2023.
Basis of preparation
The financial statements which are expressed in United States Dollars, the Group’s presentation and the Company’s
presentation and functional currency, have been prepared under the historical cost convention except for certain
financial instruments that are measured at fair value, as explained in the accounting policies below.
The financial statements are presented in US dollars (US$), and all values are presented in US$ thousand unless
otherwise stated.
Use of estimates and judgements
The preparation of financial statements in conformity with IFRS-EU requires the use of certain critical accounting
estimates and requires management to exercise its judgment in the process of applying the Group’s and the Company's
accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Although these estimates are based on management's best
knowledge of current events and actions, actual results may ultimately differ from those estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis; revisions to estimates are recognized prospectively.
Information about judgments made in applying accounting policies and the estimates and assumptions, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are discussed in note 2 on pages 37, 38 and 39.
Adoption of new and revised IFRSs and interpretations by the European Union (EU)
As from 1 January 2022, the Group and the Company adopted all changes to International Financial Reporting
Standards (IFRSs) as adopted by the EU, which are relevant to its operations. This adoption did not have a material
effect on the financial statements of the Group and the Company.
The following Standards, Amendments to Standards and Interpretations have been issued by the International
Accounting Standards Board (IASB) but are not yet effective for annual periods beginning on 1 January 2022. Those
which may be relevant to the Group and the Company are set out below. The Group and the Company does not plan
to adopt these Standards early.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
24
2. Significant accounting policies (continued)
Standards and Interpretations not adopted by the EU
•
IFRS 10 (Amendments) and IAS 28 (Amendments) ''Sale or Contribution of Assets between an Investor and
its Associate or Joint Venture'' (effective date postponed indefinitely).
The Board of Directors expects that the adoption of these standards in future periods will not have a material effect
on the financial statements of the Group and the Company.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by
the Company (its subsidiaries). The Group “controls” an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. The
financial statements of subsidiaries are included in the consolidated financial statements from the date on which control
commences until the date on which control ceases.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated statement
of comprehensive income from the effective date of acquisition and up to the effective date of disposal as appropriate.
Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling
interest even if this results in the non-controlling interest having a deficit balance.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies
in line with those used by the Group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Unrealized gains
arising from transactions from equity-accounted investees are eliminated against the investment to the extent of the
Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the
extent that there is no evidence of impairment.
Business combinations
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration of each
acquisition is measured as the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred
or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition related
costs are recognized in profit or loss as incurred.
Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent
consideration arrangement, measured at its acquisition date fair value. Subsequent changes in such fair values are
adjusted against the cost of acquisition where they qualify as measurement period adjustments. All other subsequent
changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance
with relevant IFRSs. Changes in the fair value of contingent consideration classified as equity are not recognized.
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under
IFRS 3 are recognized at their fair value at the acquisition date, except that:
• deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are
recognized and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
• liabilities or equity instruments related to the replacement by the Group of an acquiree’s share based payment
awards are measured in accordance with IFRS 2 Share based payment; and
• assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Noncurrent Assets
Held for Sale and Discontinued Operations are measured in accordance with that Standard.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
25
2. Significant accounting policies (continued)
Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. The interests of non-
controlling shareholders may be initially measured either at fair value or at the non-controlling interests’ proportionate
share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis is made on an
acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the
amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity.
Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests
having a deficit balance.
Changes in the Group’s ownership interests in existing subsidiaries
Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the
subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the
non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference
between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid
or received is recognized directly in equity and attributed to the owners of the Company.
When the Group loses control of a subsidiary, it derecognizes the assets and liabilities of the subsidiary and any related
NCI and other components of equity. The profit or loss on disposal is calculated as the difference between:
(i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the
previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling
interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are accounted
for in the same manner as would be required if the relevant assets or liabilities were disposed of (i.e. reclassified to
profit or loss or transferred directly to retained earnings). The fair value of any investment retained in the former
subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting
under IFRS 9 Financial Instruments or, when applicable, the cost on initial recognition of an investment in an associate
or jointly controlled entity.
Investments in subsidiary and associates
In the individual accounts of the Company, investments in subsidiary, associate and jointly controlled companies are
presented at cost less provision for impairment. The Group’s interests in equity-accounted investees comprise interests
in associates. Associates are those entities in which the Group has significant influence, but not control or joint control,
over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20%
and 50% of the voting power of another entity. Interest in associates is accounted for using the equity method and is
recognized initially at cost. The cost of the investment includes transaction costs.
The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income
of equity accounted investees from the date that significant influence commences until the date that significant
influence ceases. When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying
amount of that interest including any long-term investments, is reduced to zero, and the recognition of further losses
is discontinued, except to the extent that the Group has an obligation or has made payments on behalf of the investee.
Financial assets at fair value through other comprehensive income (FVOCI)
The Group accounts for financial assets at FVOCI if the assets meet the following conditions:
- They are held under a business model whose objective it is “hold to collect” the associated cash flows and
sell, and
- The contractual terms of the financial assets give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Any gains or losses recognized in other comprehensive income will be transfer to profit and loss upon derecognition of
the asset.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
26
2. Significant accounting policies (continued)
Goodwill
Goodwill arising in a business combination is recognized as an asset at the date that control is acquired (the acquisition
date). Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the
acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities
assumed.
If, after reassessment, the Group’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum
of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the
acquirer’s previously held equity interest in the acquiree (if any), the excess is recognized immediately in profit or loss
as a bargain purchase gain.
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to
benefit from the synergies of the combination.
Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently
when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is
less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset
in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on
disposal.
Segmental reporting
The Group is organized by geographical segments and this is the primary format for segmental reporting. Each
geographical segment is subject to risks and returns that are different from those of other segments.
Revenue recognition
The Group recognizes revenue mainly from the following major sources:
- Sale of goods
- Sale of optional warranties related to the aforementioned products
- Sale of software licenses
- Rendering of services
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a
customer. The Group recognizes revenue when it transfers control of a product to a customer.
Sale of goods
The Group sells IT components and finished products mainly to small-medium businesses and retail market. Revenue
represents amounts invoiced to customers in respect of sales of goods during the year and is stated net of trade
discounts, rebates, customer returns and other similar allowances. Based on historical data and using the “most likely
amount” method, the expected returns for the year were of insignificant value. Therefore, a significant reversal of
revenue was not expected, and the effect of the returns was recorded as occurred.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
27
2. Significant accounting policies (continued)
Revenue from the sale of goods is recognized when the control of the product is transferred to the customer. The point
in time at which the control is transferred and the performance obligation is considered as satisfied, is decided based
on the incoterms of each sale of goods and also by considering the following indicators:
• the entity has a present right to payment for the asset
• the customer has legal title to the asset
• the entity has transferred physical possession of the asset
• the customer has the significant risks and rewards related to the ownership of the asset and
• the customer has accepted the asset.
More specifically, for each of the most used incoterms, revenue is recognized at the following point in time:
• Ex-works (EXW) - when the goods become available to the buyer
• Carriage-paid-to (CPT) – when the goods have been delivered to the carrier
• Carriage-and-insurance-paid-to (CIP) - when the goods have been delivered to the carrier
• Free carrier (FCA) - when the goods have been delivered to the carrier at the named place or point
Sale of optional warranties
The Group sells optional warranties only when the vendor offers this option. The Group enters into agreements with
purchasers of its goods to perform necessary repairs falling outside of the products standard warranty period. Since it
is the vendor that has the ultimate liability regarding the optional warranties sold, the performance obligation is
considered satisfied upon sale and the related revenue is recognized immediately
Sale of software licenses
The Group sells licenses only for software created by third parties. Software licenses are neither customized nor subject
to significant integration services by the Group. Since the Group only acts just as the distributor of the licenses, the
performance obligation is considered satisfied upon sale and the related revenue is recognized immediately.
Rendering of services
The Group provides mainly Value-Added Services (VAD) relating to the sale of IT components and finished products
when the vendor offers this option. The Group enters into fixed price maintenance contracts with its customers between
one and three years in length. Customers are required to pay in advance for each twelve-month service period and
the relevant payment due dates are specified in each contract. Since it is the vendor that has the ultimate liability
regarding the services sold, the performance obligation is considered satisfied upon sale and the related revenue is
recognized immediately.
Dividend and interest income
Dividend income from investments is recognized when the Company’s right to receive payment has been established.
Interest income is recognized when it is probable that the economic benefits will flow to the Group and the Company
and the amount of revenue can be measured reliably.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset’s net carrying amount.
Borrowing costs
All borrowing costs are recognized in the income statement in the period in which they are incurred using the effective
interest method.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
28
2. Significant accounting policies (continued)
Employee benefits
Defined contribution pension plans
A defined contribution plan, the Employee Provident Fund, is a post-employment benefit plan under which the Company
pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts.
The Company operates a defined contribution scheme, the assets of which are held in a separate trustee-administered
fund. Obligations for contributions to defined contribution pension plans are recognized as staff costs in the statement
of comprehensive income in the year during which services are rendered by employees.
Contributions to the Government Social Insurance Fund
The Group/Company and the employees contribute to the Government Social Insurance Fund at the prevailing statutory
rate which is applied on employees' salaries. The scheme is funded by payments from employees and by the
Group/Company. The Group’s/Company's contributions are expensed as incurred and are included in staff costs. The
Group/Company has no further payment obligations once the contributions have been paid. Prepaid contributions are
recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
Share-based payment transactions
The grant-date fair value of share-based payment awards granted to employees is recognized as an employee expense,
with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the
awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service
and non-market performance conditions are expected to be met, such that the amount ultimately recognized as an
expense is based on the number of awards that meet the related service and non-market performance conditions at
the vesting date. For share-based payment awards with non-vesting conditions, the grant-date fair value of the
share-based payment is measured to reflect such conditions and there is no true-up for differences between expected
and actual outcomes.
Foreign currencies
The individual financial statements of each Group entity are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each entity are expressed in United States Dollars (US$), which is the
functional currency of the Company and the presentation currency for both the consolidated and separate financial
statements.
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recorded at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated
at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies
are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items are
measured in terms of historical cost in a foreign currency and are not retranslated.
Exchange differences are recognized in the profit and loss in the period in which they arise. For the purpose of
presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are expressed
in United States Dollars using exchange rates prevailing at the end of the reporting period. Income and expense items
are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during the
period, in which case the exchange rates at the date of the transactions are used. Exchange differences arising, if any,
are recognized in other comprehensive income and accumulated in equity (attributed to non-controlling interests as
appropriate).
On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal
involving loss of control over a subsidiary that includes a foreign operation, loss of joint control over a jointly controlled
entity that includes a foreign operation, or loss of significant influence over an associate that includes a foreign
operation), all of the accumulated exchange differences in respect of that operation attributable to the Group are
reclassified to profit or loss. Any exchange differences that have previously been attributed to non-controlling interests
are reclassified to other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities
of the foreign operation and translated at the closing rate.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
29
2. Significant accounting policies (continued)
Tax
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit reported in the
income statement because it excludes items of income or expenses that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using
the tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities
are generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for all
deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if
the temporary differences arise from goodwill or from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantially
enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends
to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax are recognized as an expense or income in profit or loss, except when they relate to items
that are recognized in other comprehensive income, in which case the tax is also recognized in equity.
Dividend distribution
Dividend distribution to the shareholders is recognized in the financial statements in the year in which dividends are
declared.
Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment
losses.
Properties in the course of construction for production, rental or administrative purposes, are carried at cost less any
recognized impairment loss. Such properties are classified to the appropriate categories of property, plant and
equipment when completed and are ready for their intended use. Depreciation of these assets, on the same basis as
other property assets, commences when the assets are ready for their intended use.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
30
2. Significant accounting policies (continued)
Depreciation is provided at rates calculated to write off the cost less the estimated residual value of property, plant
and equipment (other than freehold land and properties under construction) on a straight-line basis over their
estimated useful economic lives as follows:
Leasehold property
Over the remaining period of the right for usage of the land
Buildings
46 - 100 years
Computer hardware
5 years
Warehouse machinery
3 - 5 years
Motor vehicles
5 years
Furniture, fittings and office equipment
10 years
No depreciation is provided on land.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sale proceeds and the carrying amount of the asset and is recognized in the profit and loss
when the asset is disposed.
The estimated useful life and depreciation method are reviewed at the end of each annual reporting period, with the
effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets
Intangible assets consist of computer software, patents and licenses which are stated at cost less accumulated
amortization and accumulated impairment losses. Amortization is provided at rates calculated to write off the cost less
the estimated residual value of the assets using the straight-line method as follows:
Computer software
3 - 10 years
Patents and licenses
3 years
The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of
any changes in estimate being accounted for on a prospective basis.
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use. Gains or
losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds
and the carrying amount of the asset, and are recognized in profit or loss when the asset is derecognized.
Investment Property
Investment property comprises a number of commercial properties that are leased to third parties. Investment property
initially measured at cost less accumulated depreciation and any accumulated impairment losses (note 10). Rental
income from investment property is recognized as “other gains and losses” on a straight-line basis over the term of
the lease. An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the continued use of the asset. Any gain or
loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.
Repairs and maintenance
Expenditure for repairs and maintenance of property, plant and equipment and costs associated with maintenance of
computer software programs are recognized as an expense as incurred.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
31
2. Significant accounting policies (continued)
Impairment of tangible and intangible assets excluding goodwill
At the end of each reporting period, the Group and the Company reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group
and the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a
reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual
cash-generating units, or otherwise they are allocated to the smallest Group of cash-generating units for which a
reasonable and consistent basis of allocation is identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimated of future
cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the
impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognized for the asset (or
cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss, unless
the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a
revaluation increase.
Financial instruments
Financial assets and financial liabilities are recognized when a Group entity becomes a party to the contractual
provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities
at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.
Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular
way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace.
All recognized financial assets are measured subsequently in their entirety at either amortized cost or fair value,
depending on the classification of the financial assets.
(i)
Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at: amortized cost; Fair Value through Other
Comprehensive Income – debt investment; Fair Value through Other Comprehensive Income – equity investment; or
Fair value through profit or loss.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
32
2. Significant accounting policies (continued)
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model
for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first
reporting period following the change in the business model.
•
Financial assets at FVTPL
These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income,
are recognized in profit or loss.
•
Financial assets at FVOCI
These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income,
are recognized in other comprehensive income. On derecognition, gains and losses accumulated in OCI are reclassified
to profit or loss.
•
Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is
reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in
profit or loss. Any gain or loss on derecognition is recognized in profit or loss. Financial assets at amortized cost
comprise of the following:
Trade receivables including factored trade receivables
The Group enters into various invoice discounting agreements with factoring companies from which a percentage of
approved invoices are collected in advance. The invoices which are given for collection in advance are with recourse
and included within trade receivables, whereas the amount collected from the factoring Company is presented in the
statement of financial position under current liabilities until the date of settlement by the debtors. Factoring expenses
are charged to the statement of comprehensive income.
Loans granted
Loans granted by the Company to the borrower are categorized as loans. All loans are recognized when cash is
advanced to the borrower.
Cash and cash equivalents
The Group considers all short-term highly liquid instruments with maturities of 3 months or less which are subject to
insignificant risk of changes in value to be cash equivalents.
•
Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the effective interest method,
foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are
recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
•
Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the
dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized
in OCI and are never reclassified to profit or loss.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
33
2. Significant accounting policies (continued)
(ii)
Derecognition
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire,
or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains
substantially all of the risks and rewards of ownership and it does not retain control of the financial assets.
The Group enters into transactions whereby it transfers assets recognized in its statement of financial position but
retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred
assets are not derecognized.
Financial liabilities
(i)
Classification and subsequent measurement
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if
it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities
at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit
or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method.
Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on
derecognition is also recognized in profit or loss.
Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt
instrument.
Financial guarantee contracts issued by the Company/Group are accounted for and measured initially at their fair
values, and subsequently measured at the higher of:
• the amount of the obligation under the contract, as determined in accordance with IAS 37 Provisions,
Contingent Liabilities and Contingent Assets and
• the amount initially recognized less, where appropriate, cumulative amortization recognized in accordance
with the revenue recognition policies as set out below.
As at each reporting date presented in these financial statements, the Company participates in financial guarantee
contracts and provide financial guarantees to its subsidiaries.
To be classified as a financial guarantee contract, a contract needs to comply with all of the following conditions:
• The reference obligation is a debt instrument.
• The holder is compensated only for a loss that it incurs.
• The contract does not compensate the holder for more than the actual loss that it incurs.
Financial guarantee contract in the scope of IFRS 9 is initially recognized at fair value. If the financial guarantee contract
was issued in a stand-alone arm’s length transaction to an unrelated party, then its fair value at inception is considered
to be equal to the premium received unless there is evidence to the contrary.
In the case of a guarantee provided by the Company over the liability of a subsidiary, when no consideration is or will
be received, the Company recognize a liability in its financial statements for the fair value of the guarantee at the date
of granting the financial guarantee and the respective increase in the cost of the investment in subsidiary.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
34
2. Significant accounting policies (continued)
Subsequently, all financial guarantee contracts mentioned above are measured at the higher of:
• the amount of the loss allowance determined in accordance with IFRS 9 over the loan balance as at reporting
date; and
• the amount initially recognized less, when appropriate, the cumulative amount of income recognized in
accordance with the principles of IFRS 15.
Fee income recognized in accordance with the principles of IFRS 15 is posted within “finance income” caption of
statement of profit and loss and other comprehensive income.
Any gain or loss caused by remeasurement of guarantee liabilities is posted through respective “finance income” and
“finance expenses” captions of statement of profit and loss and other comprehensive income.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance
charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an
accrual basis to the income statement using the effective interest method and are added to the carrying amount of
the instrument to the extent that they are not settled in the period in which they arise.
(ii)
Derecognition
The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. The
Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are
substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration
paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset or liability and allocating
interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash flows (including all fees on points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset or
liability, or, where appropriate, a shorter period.
Inventories
Inventories comprise of:
• IT products (components and finished products) which are stated at the lower of cost and net realizable value.
Cost is determined on the basis of standard cost method for the price protected stock items and on the
weighted average cost method for the non-price protected stock items and comprises the cost of acquisition
plus any other costs that are incurred to bring the stock items to their present location and condition. Net
realizable value represents the estimated selling price for inventories less all cost necessary to make the sale.
• Land under development which is carried at cost.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is
recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
Provisions
A provision is recognized in the statement of financial position when the Company/Group has a legal or constructive
present obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to
settle the obligation, and a reliable estimate can be made of the amount of the obligation.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
35
2. Significant accounting policies (continued)
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a
provision is measured using the cash flow estimated to settle the present obligation, its carrying amount is the present
value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, the receivable is recognized as an asset if it is virtually certain that the reimbursement will be received and the
amount of the receivable can be measured reliably.
Warranties
Provisions for the expected cost of warranty are recognized at the date of sale of the relevant products, at the Directors’
best estimate of the expenditure required to settle the Company’s/Group’s obligations.
Marketing
Provisions for the expected cost of marketing activities are recognized based on purchase of products, cost of goods
sold and other various vendors rebates depending on turnover and marketing strategy. Marketing provisions are mainly
used to support promotional and advertising related activities.
Impairment
Financial assets
The Group uses 'expected credit loss' (ECL) model. This impairment model applies to financial assets measured at
amortized cost, contract assets and debt instruments at FVOCI but not to investments in equity instruments. ECLs are
based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows
that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected
cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
The Group recognizes loss allowances for ECLs on financial assets measured at amortized cost.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit
risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within
the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in
credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the
exposure, irrespective of the timing of the default (a lifetime ECL) due.
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each
reporting date. The Group has established a provision matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors and the economic environment.
An impairment loss is calculated as the difference between an asset’s carrying amount and the present value of the
estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in profit or
loss. When the Group considers that there are no realistic prospects of recovery of the asset, the relevant amounts are
written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to
an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed
through profit or loss.
Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the
assets.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
36
2. Significant accounting policies (continued)
Non-financial assets
At each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine whether there
is any indication that those assets have suffered an impairment loss. An impairment loss is recognized if the carrying
amount of an asset or cash-generating unit (CGU) exceeds its recoverable amount. Where it is not possible to estimate
the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the
asset belongs. Goodwill is tested annually for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount
of the asset (CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss,
unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation
decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (CGU) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognized for the asset (CGU) in prior years. A reversal
of an impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued
amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Leases
At inception or on reassessment of a contract that contains a lease component, the Group and the Company allocates
the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone
prices. However, for leases of properties in which it is a lessee, the Group and the Company elected not to separate
components and will instead account for the lease and non-lease components as a single lease component.
The Group and the Company leases land and buildings and motor vehicles. As a lessee, the Group and the
Company previously classified leases as operating or finance leased based on its assessment of whether the lease
transferred substantially all the risks and rewards of ownership. Under IFRS 16, the Group and the Company recognizes
right-of-use assets and lease liabilities for most leases – i.e. these leases are on balance sheet. The Group and the
Company presents lease liabilities in ‘long-term borrowings’ and ‘short-term borrowings’ in the statements of financial
position.
The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease
incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
end of the lease term, unless the lease transfers ownership of the underlying asset to the Group/Company by the end
of the lease term or the cost of the right-of-use asset reflects that the Group/Company will exercise a purchase option.
In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined
on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the
discount rate.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
37
2. Significant accounting policies (continued)
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources
and makes certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
• fixed payments, including in-substance fixed payments;
• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at
the commencement date;
• amounts expected to be payable under a residual value guarantee; and
• the exercise price under a purchase option that the Group/Company is reasonably certain to exercise, lease
payments in an optional renewal period if the Group/Company is reasonably certain to exercise an extension
option, and penalties for early termination of a lease unless the Group/Company is reasonably certain not to
terminate early.
The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, if there is a change in the Group/Company’s
estimate of the amount expected to be payable under a residual value guarantee, if the Group/Company changes its
assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance
fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to
zero.
Non-recoverable VAT is excluded from lease accounting as VAT payments are not made to lessor in exchange for the
right to use an underlying asset. Instead, they are levies imposed by the government and are in the scope of IFRIC 21
(Levies) and are recognized when they are due under the tax law (when the invoice is issued). They are expensed in
Statement of profit or loss and other comprehensive income immediately at the moment they are recognized.
Short-term leases and leases of low-value assets
The Group/Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets
and short-term leases. The Group/Company recognizes the lease payments associated with these leases as an expense
on a straight-line basis over the lease term.
Critical judgements in applying the entity’s accounting policies and key sources of estimation
uncertainty
The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates
and requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also
requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Although these estimates are based on management’s best knowledge of current events and
actions, actual results may ultimately differ from those estimates. The estimates and assumptions, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are discussed below:
Revenue recognition
In making its judgment, management considered the detailed criteria for the recognition of revenue from the sale of
goods as set out in IFRS 15 Revenue from Contracts with Customers and, in particular, whether the Company/Group
had transferred to the buyer the significant risks and rewards of ownership of the goods. The timing of the transfer of
control is decided based on related incoterms. The management is satisfied that the significant risks and rewards have
been transferred and the recognition of the revenue in the current year is appropriate.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
38
2. Significant accounting policies (continued)
Provision for bad and doubtful debts
The Company/Group reviews its trade and other receivables for evidence of their recoverability. Such evidence includes
the customer’s payment record, the customer’s overall financial position and expected recovery from credit insurance.
If indications of non-recoverability exist, the recoverable amount is estimated and a respective provision for bad and
doubtful debts is made. The amount of the provision is charged through the income statement. The review of credit
risk is continuous and the methodology and assumptions used for estimating the provision are reviewed regularly and
adjusted accordingly.
Calculation of loss allowance
When measuring ECL the Group uses reasonable and supportable forward-looking information, which is based on
assumptions for the future movement of different economic drivers and how these drivers will affect each other. Loss
given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash
flows due and those that the lender would expect to receive, taking into account cash flows from collateral and integral
credit enhancements.
Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of
default over a given time horizon, the calculation of which includes historical data, assumptions and expectations of
future conditions. Loss rates are calculated separately for exposures in different segments which share common credit
risk characteristics and are based on actual credit loss experience over the past four years. Significant customers, if
any, are assessed individually.
Provision for obsolete and slow-moving inventory
The Company/Group reviews its inventory records for evidence regarding the salability of inventory and its net
realizable value on disposal. The provision for obsolete and slow-moving inventory is based on management’s past
experience, taking into consideration arrangements with suppliers for price protection and for returning defective stock;
the value of inventory as well as the movement and the level of stock of each category of inventory.
Any change in the amount of provision is recognized in the income statement. The review of the net realizable value
of the inventory is continuous and the methodology and assumptions used for estimating the provision for obsolete
and slow-moving inventory are reviewed regularly and adjusted accordingly.
Impairment of investments in subsidiaries, associated and jointly controlled enterprises
The Group and Company periodically evaluates the recoverability of investments in subsidiaries, associates and jointly
controlled enterprises/jointly controlled enterprises whenever indicators of impairment are present. Indicators of
impairment include such items as declines in revenues, earnings or cash flows or material adverse changes in the
economic or political stability of a particular country, which may indicate that the carrying amount of an asset is not
recoverable. If facts and circumstances indicate that the investment in subsidiaries/associates/jointly controlled
enterprises may be impaired, the estimated future undiscounted cash flows associated with these entities would be
compared to their carrying amounts to determine if a write-down to fair value is necessary.
Warranty provisions
Warranty provisions represent the Company’s/Group’s best estimate of the liability as a result of the warranties granted
on certain products and is based on past experience and industry averages for defective products.
Income taxes
Significant judgment is required in determining the provision for income taxes. There are transactions and calculations
for which the ultimate tax determination is uncertain during the ordinary course of business. The Company/Group
recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where
the final tax outcome of these matters is different from the amounts that were initially recorded, such difference will
impact the income tax and deferred tax provisions in the period in which such determination is made.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
39
2. Significant accounting policies (continued)
Trade payables factoring facilities
Significant judgment is required in determining the appropriate presentation of supply-chain factoring facilities in the
statement of financial position and statement of cash flow. The Group and the Company disclose the amounts factored
by suppliers separately from trade payables because the nature and function of the financial liabilities is sufficiently
different from a trade payable that a separate presentation is appropriate. The payments to the bank are included
within operating cash flows because they continue to be part of the normal operating cycle of the Group and their
principal nature remains operating – i.e. payments for the purchase of goods and services.
3. Revenue
3.1 Disaggregation of revenue from contracts with customers
Analysis of revenue by category under revenue from contracts with customers is disaggregated by products and service
lines:
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Sales of goods
2,654,543
3,042,908
1,778,909
2,198,742
Sales of licenses
29,296
29,359
9,022
6,393
Rendering of services
5,758
5,339
-
-
Sales of optional warranty
442
370
34
266
Total revenue from contracts with customers
2,690,039
3,077,976
1,787,965
2,205,401
Revenue analysis by geographical market
The Group and the Company
The Group operates as a trader and distributor of computer hardware and software in a number of geographical
regions. The following table shows an analysis of the Group’s sales by geographical market, irrespective of the origin
of the goods.
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Former Soviet Union
1,407,196
1,774,834
1,011,366
1,273,119
Central Eastern Europe
653,643
654,117
385,931
491,477
Middle East & Africa
407,717
327,799
239,718
251,838
Western Europe
183,088
266,607
100,759
138,312
Other
38,395
54,619
50,191
50,655
Total revenue from contracts with customers
2,690,039
3,077,976
1,787,965
2,205,401
Timing of revenue recognition
Goods transferred at a point in time
2,683,981
3,072,637
1,787,665
2,205,327
Services transferred at a point in time
6,058
5,339
300
74
Total revenue from contracts with customers
2,690,039
3,077,976
1,787,965
2,205,401
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
40
3. Revenue (continued)
Revenue analysis by currency
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
US Dollar
832,016
1,025,593
1,656,109
2,022,750
Kazakhstan Tenge
554,343
353,724
-
-
Euro
413,459
518,059
131,381
181,785
Ukraine Hryvnia
323,667
408,596
-
-
Russian Ruble
194,297
329,585
-
459
Belarusian Ruble
89,205
173,317
-
-
Czech Koruna
53,159
67,359
-
-
Romanian New Lei
47,812
52,702
-
-
Bulgarian Lev
37,557
42,452
-
-
Polish Zloty
30,301
21,049
-
-
Croatian Kuna
19,924
26,042
-
-
Bosnian Mark
19,759
20,218
-
-
Hungarian Forint
8,072
5,463
-
-
Other
66,468
33,817
475
407
2,690,039
3,077,976
1,787,965
2,205,401
3.2 Contract balances
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Trade and other receivables
328,931
352,275
53,314
48,585
The Group
Trade receivables are non-interest bearing. On 31 December 2022, US$ 3,331 (2021: US$ 2,379) was recognized
as provision for impairment of trade receivables (note 16).
Contract assets are initially recognized for revenue earned from provision of series of services as receipt of
consideration is conditional on successful completion of these services. Upon completion of the services and
acceptance by the customer, the amounts recognized as contract assets are reclassified to trade receivables. During
2022 and 2021, the impact of contract assets was not material at the Group level.
Contract liabilities primarily relates to the advance consideration received from customers for delivery of series of
services for which revenue is recognized over time. During 2022 and 2021, the impact of contract liabilities was not
material at the Group level.
The Company
Trade receivables are non-interest bearing. On 31 December 2022, US$ 1,378 (2021: US$ 375) was recognized as
provision for expected credit losses on trade receivables (note 16).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
41
3. Revenue (continued)
Contract assets are initially recognized for revenue earned from provision of series of services as receipt of
consideration is conditional on successful completion of these services. Upon completion of the services and acceptance
by the customer, the amounts recognized as contract assets are reclassified to trade receivables. During 2022 and
2021, the impact of contract assets was not material at the Company level.
Contract liabilities primarily relates to the advance consideration received from customers for delivery of series of
services for which revenue is recognized over time. During 2022 and 2021, the impact of contract liabilities was not
material at the Company level.
5. Profit before tax
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Profit before tax is stated after charging:
(a) Amortization of intangible assets (Note 9)
1,203
1,164
1,032
959
(b) Depreciation (Note 8)
4,554
3,910
991
755
(c) Depreciation of investment property (Note 10)
30
-
30
-
(c) Auditors' remuneration – audit fees
536
437
293
213
(d) Directors’ remuneration – executive (Note 30)
1,650
1,706
1,650
1,706
(e) Directors’ remuneration – non-executive (Note 30)
25
32
25
32
4. Other gains and losses
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Dividend received
-
-
591
12,251
(Loss)/profit on disposal of property, plant and
equipment
(48)
(67)
(25)
24
Other net income
636
150
2,210
9,563
Bad debts recovered
7
11
-
-
Rental income
353
86
238
92
Impairment of investments
-
-
-
(2,357)
Loss on disposal of investment
-
-
-
(28)
948
180
3,014
19,545
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
42
6. Financial expense, net
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Financial income
Interest income
999
146
9
12
Interest income from loans to subsidiary
companies (Note 30)
-
-
84
58
Other financial income
3,365
3,546
2,205
2,774
Net exchange gain
596
934
1,509
-
4,960
4,626
3,807
2,844
Financial expense
Bank interest
10,886
5,660
177
81
Bank charges
4,617
4,928
1,206
1,330
Derivative charges
798
1,661
747
1,421
Interest on lease liabilities
501
405
65
58
Factoring interest
7,478
9,173
459
463
Factoring charges
276
386
160
165
Other financial expenses
112
358
13
-
Other interest
1,026
1,742
1,022
1,712
Interest on loans from subsidiary companies
-
-
-
-
Net exchange loss
-
-
-
443
25,694
24,313
3,849
5,673
Net
(20,734)
(19,687)
(42)
(2,829)
7. Tax
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Payables balance 1 January
3,464
4,676
3,037
3,264
Provision for the year
15,223
17,532
5,265
8,886
Under/(over) provision of prior year
(51)
(361)
(103)
(422)
Exchange difference on retranslation
(221)
(13)
-
-
Amounts paid, net
(16,401)
(18,370)
(5,794)
(8,691)
Net payable balance 31 December
2,014
3,464
2,405
3,037
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Tax receivable
(1,588)
(1,156)
-
-
Tax payable
3,602
4,620
2,405
3,037
Net
2,014
3,464
2,405
3,037
The taxation charge of the Group comprises corporation tax charge in Cyprus on the taxable profits of the Company
and those of its subsidiaries which are subject to tax in Cyprus and corporation tax in other jurisdictions on the taxable
results of the foreign subsidiary companies.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
7. Tax (continued)
43
The Company and all Cyprus resident companies of the Group are subject to corporation tax at the rate of 12.5%
(2021: 12.5%). The tax rates of subsidiaries in foreign jurisdictions range between 0% and 30%.
Dividends received by the Cyprus companies of the Group are exempt from corporation tax and they are also exempt
from defence tax.
Bank interest received by the Company and all Cyprus resident companies of the Group is subject to defence tax of
30% (2021: 30%).
Tax charge for the year
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Provisions and withholding tax for the year
15,223
17,532
5,265
8,886
Over provision of prior year
(51)
(361)
(103)
(422)
Deferred tax charge
4
4
(159)
42
Net
15,176
17,175
5,003
8,506
The charge for taxation is based on the Group’s/Company’s profits for the year as adjusted for tax purposes. The
reconciliation of the charge for the year is as follows:
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Profit before tax
91,046
94,242
39,231
74,168
Corporation tax thereon at the applicable tax rates
15,932
12,994
4,904
9,270
Tax on income not taxable in determining taxable
profit
(5,303)
(2,292)
(472)
(1,700)
Effect of using tax losses brought forward
(111)
(34)
-
-
Effect of unused current year tax losses
23
72
-
-
Temporary differences
500
214
174
479
Tax charges and penalties
4
9
-
-
Tax on non-allowable expenses
4,175
6,565
656
837
15,220
17,528
5,262
8,886
Special contribution to defence fund
3
4
3
-
Over provision of prior years
(51)
(361)
(103)
(422)
Deferred tax charge
4
4
(159)
42
Tax charge
15,176
17,175
5,003
8,506
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
44
8. Property, plant and equipment
The Group
Land and
buildings
Assets under
construction
Computer
hardware
Warehouse
machinery
Motor vehicles
Furniture and
fittings
Office
equipment
Total
US$
US$
US$
US$
US$
US$
US$
US$
Cost
At 1 January 2021
32,241
-
8,101
640
4,083
3,097
4,200
52,362
Additions
4,755
7,249
1,363
159
794
875
559
15,754
Disposals/write-offs
(250)
-
(495)
(24)
(335)
(74)
(87)
(1,265)
Foreign exchange difference on retranslation
(896)
-
(169)
20
(57)
(68)
(72)
(1,242)
At 31 December 2021
35,850
7,249
8,800
795
4,485
3,830
4,600
65,609
Additions
8,923
2,992
1,368
52
726
1,617
1,784
17,462
Disposals/write-offs
(382)
-
(2,672)
(3)
(695)
(867)
(848)
(5,467)
Transfers
4,125
(9,926)
-
-
-
-
-
(5,801)
Foreign exchange difference on retranslation
(430)
-
(258)
(1)
(77)
(330)
(211)
(1,307)
At 31 December 2022
48,086
315
7,238
843
4,439
4,250
5,325
70,496
Accumulated depreciation
At 1 January 2021
6,435
-
6,079
416
1,746
2,252
2,706
19,634
Charge for the year
1,661
-
729
73
796
271
380
3,910
Disposals/write-offs
(250)
-
(495)
(24)
(290)
(74)
(87)
(1,220)
Foreign exchange difference on retranslation
(136)
-
(140)
23
(85)
(68)
(33)
(439)
At 31 December 2021
7,710
-
6,173
488
2,167
2,381
2,966
21,885
Charge for the year
1,999
-
811
84
734
461
465
4,554
Disposals/write-offs
(99)
-
(2,604)
(1)
(434)
(804)
(848)
(4,790)
Transfers
(1,367)
-
-
-
-
-
-
(1,367)
Foreign exchange difference on retranslation
(173)
-
108
(1)
(71)
161
(123)
(99)
At 31 December 2022
8,070
-
4,488
570
2,396
2,199
2,460
20,183
Net book value
At 31 December 2022
40,016
315
2,750
273
2,043
2,051
2,865
50,313
At 31 December 2021
28,140
7,249
2,627
307
2,318
1,449
1,634
43,724
Land and buildings are mortgaged for financing purposes. The cost of fully depreciated assets of the Group that are still in use amounted to US$ 5,251 (2021: US$ 8,487).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
45
8. Property, plant and equipment (continued)
Included in the net carrying amount of property, plant and equipment are right-of-use assets as follows:
The Group
Land and
buildings
Warehouse
machinery
Motor
vehicles
Total
US$
US$
US$
US$
Balance at 1 January 2021
5,075
35
1,059
6,169
Depreciation charge for the year
(1,233)
(7)
(435)
(1,675)
Additions to right of use assets
4,565
-
463
5,028
Foreign exchange difference on retranslation
(120)
(2)
12
(110)
Balance at 31 December 2021
8,287
26
1,099
9,412
Depreciation charge for the year
(1,625)
(6)
(400)
(2,031)
Additions to right of use assets
6,155
-
234
6,389
Derecognition of right of use assets
(36)
-
-
(36)
Foreign exchange difference on retranslation
(99)
(2)
(118)
(219)
Balance at 31 December 2022
12,682
18
815
13,515
The Group leases offices, warehouses and stores in various locations throughout the countries of operation. In
addition, the Group leases motor vehicles for business use and employee commuting, as well as some warehouse
machinery for warehouse operations.
The total cash outflows for the leases related to the above right-of-use assets were US$ 2,252 (2021: US$ 2,504).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
46
8. Property, plant and equipment (continued)
The Company
Land and
buildings
Assets under
construction
Computer
hardware
Warehouse
machinery
Motor vehicles
Furniture and
fittings
Office
equipment
Total
US$
US$
US$
US$
US$
US$
US$
US$
Cost
At 1 January 2021
7,515
-
3,489
69
449
535
982
13,039
Additions
3,303
7,249
363
114
116
114
162
11,421
Disposals
-
-
4
-
(17)
-
-
(13)
At 31 December 2021
10,818
7,249
3,856
183
548
649
1,144
24,447
Additions
5,510
2,992
574
2
142
412
883
10,515
Disposals/write-offs
-
-
(2,481)
-
(23)
(409)
(721)
(3,634)
Transfers
4,125
(9,926)
-
-
-
-
-
(5,801)
At 31 December 2022
20,453
315
1,949
185
667
652
1,306
25,527
Accumulated depreciation
At 1 January 2021
1,953
-
3,003
2
164
445
783
6,350
Charge for the year
402
-
172
30
102
16
33
755
Disposals
-
-
4
-
(18)
-
-
(14)
At 31 December 2021
2,355
-
3,179
32
248
461
816
7,091
Charge for the year
523
-
242
36
89
39
62
991
Disposals/write-offs
-
-
(2,481)
-
(23)
(409)
(721)
(3,634)
Transfers
(1,367)
-
-
-
-
-
-
(1,367)
At 31 December 2022
1,511
-
940
68
314
91
157
3,081
Net book value
At 31 December 2022
18,942
315
1,009
117
353
561
1,149
22,446
At 31 December 2021
8,463
7,249
677
151
300
188
328
17,356
The land and buildings have been mortgaged as securities for financing purposes. The cost of fully depreciated assets of the Company that are still in use amounted to US$ 629
(2021: US$ 3,830).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
47
8. Property, plant and equipment (continued)
Included in the net carrying amount of property, plant and equipment are right-of-use assets as follows:
The Company
Land and
buildings
Total
US$
US$
Balance at 1 January 2021
1,036
1,036
Depreciation charge for the year
(342)
(342)
Additions to right of use assets
3,303
3,303
Balance at 31 December 2021
3,997
3,997
Depreciation charge for the year
(376)
(376)
Additions to right of use assets
4,461
4,461
Balance at 31 December 2022
8,082
8,082
The Company leases the distribution center in Prague, Czech Republic. During 2021, the Company entered into lease
agreement for 9,990 square meters land in Cyprus.
The total cash outflows for the leases related to the above right-of-use assets were US$ 370 (2021: US$ 329).
9. Intangible assets
The Group
Computer
software
Patents and
licenses
Total
US$
US$
US$
Cost at 1 January 2021
10,592
1,573
12,165
Additions
548
146
694
Disposals/write-offs
(97)
(47)
(144)
Foreign exchange difference on retranslation
(35)
18
(17)
At 31 December 2021
11,008
1,690
12,698
Additions
335
65
400
Disposals/write-offs
(2,198)
(338)
(2,536)
Foreign exchange difference on retranslation
(37)
46
9
At 31 December 2022
9,108
1,463
10,571
Accumulated amortization
At 1 January 2021
8,645
1,102
9,747
Charge for the year
1,008
156
1,164
Disposals/write-offs
(93)
(39)
(132)
Foreign exchange difference on retranslation
(6)
22
16
At 31 December 2021
9,554
1,241
10,795
Charge for the year
1,050
153
1,203
Disposals/write-offs
(2,198)
(336)
(2,534)
Foreign exchange difference on retranslation
(11)
41
30
At 31 December 2022
8,395
1,099
9,494
Net book value
At 31 December 2022
713
364
1,077
At 31 December 2021
1,454
449
1,903
The cost of fully amortized intangibles of the Group that are still in use amounted to US$ 2,119 (2021: US$ 2,157).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
48
9. Intangible assets (continued)
The Company
Computer
software
Patents and
licenses
Total
US$
US$
US$
Cost at 1 January 2021
9,814
822
10,636
Additions
307
92
399
At 31 December 2021
10,121
914
11,035
Additions
334
77
411
Disposals/write offs
(2,285)
(220)
(2,505)
At 31 December 2022
8,170
771
8,941
Accumulated amortization
At 1 January 2021
8,217
547
8,764
Charge for the year
839
120
959
At 31 December 2021
9,056
667
9,723
Charge for the year
907
125
1,032
Disposals/write offs
(2,285)
(220)
(2,505)
At 31 December 2022
7,678
572
8,250
Net book value
At 31 December 2022
492
199
691
At 31 December 2021
1,065
247
1,312
The cost of fully amortized intangibles of the Company that are still in use amounted to US$ 1,372 (2021: US$ 1,372).
10. Investment Property
The Group
Land and
buildings
US$
Cost
At 1 January 2022
-
Transfers
5,801
At 31 December 2022
5,801
Accumulated amortization
At 1 January 2022
-
Charge for the period
30
Transfers
1,367
At 31 December 2022
1,397
Net book value
At 31 December 2022
4,404
At 31 December 2021
-
During the year, the Group decided to change the use of two properties from owner-occupied to investment property.
The properties are leased to third parties under operating leases with rentals payable monthly.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
49
10. Investment Property (continued)
The Company
Land and
buildings
US$
Cost
At 1 January 2022
-
Transfer
5,801
At 31 December 2022
5,801
Accumulated amortization
At 1 January 2022
-
Charge for the period
30
Transfers
1,367
At 31 December 2022
1,397
Net book value
At 31 December 2022
4,404
At 31 December 2021
-
During the year, the Company decided to change the use of two properties from owner-occupied to investment
property. The properties are leased to third parties under operating leases with rentals payable monthly.
Rental income recognized by the Company during 2022 was US$ 193 (2021: nil) and was included in ‘other gains and
losses’ (Note 4).
Amounts recognized in profit or loss
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Rental Income
193
-
193
-
Depreciation on Investment Property
(30)
-
(30)
-
Net income
163
-
163
-
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
50
11. Investment in subsidiary companies
The Company
2022
2021
US$
US$
Cost
At 1 January
23,623
19,501
Increase in investments (i), (ii), (iii), (iv), (v)
3,302
3,933
(Decrease)/increase in fair value of financial guarantees to
subsidiaries (xii)
(272)
189
At 31 December
26,653
23,623
Accumulated impairment
At 1 January
(5,412)
(3,055)
Impairment charge for the year (vii)
-
(2,357)
At 31 December
(5,412)
(5,412)
Carrying amount of investment in subsidiary companies
21,241
18,211
(i) In August 2022, the Company acquired 100% shares of the company Entoliva Ltd (Cyprus) and holds 100% in
this subsidiary, being the equal to share capital of US$ 10. In November 2022, the Company acquired the 100%
shares of the company ASBIS HELLAS SINGLE MEMBER S.A. (Greece) and holds 100% in this subsidiary, being
equal to share capital of US$ 103.
(ii) In April 2022 and November 2022, the Company increased its investment in its wholly owned subsidiary ASBIS
POLAND SP. Z.O.O (Poland) for the amount of US$ 479 and US$ 861 respectively. In April 2022, the Company
increase its investment in its 65.85% owned subsidiary ASBC MMC (Uzbekistan) for the amount of US$ 329. In
December 2022, the Company increased its investment in its wholly owned subsidiary E.M. EURO-MALL LTD for
the amount of US$ 1,520.
(iii) In February 2021, the Company acquired the 100% shareholding of ASBIS CA LLC (Uzbekistan) and holds 100%
in this subsidiary, being equal to share capital of US$ 50. In August 2021, the Company acquired the 100%
shareholding of ASBC LLC (Armenia) and holds 100% in this subsidiary, being equal to share capital of US$ 245.
In December 2021, the Company acquired the 100% shareholding of ASBC Entity OOO (Uzbekistan) and holds
100% in this subsidiary, being equal to share capital of US$ 51.
(iv) In March 2021, the Company acquired the remaining 50% shareholding of Breezy Trade-In Ltd (Cyprus) for the
total consideration of US$ 31 and in October 2021, disposed 20% shareholding for the total consideration of
US$ 80.
(v) In April 2021, the Company increased its investment in its wholly owned subsidiary ASBIS IT Solutions Hungary
Kft (Hungary) for the amount of US$ 199. In May 2021, the Company increased its investment in its wholly
owned subsidiary ASBC F.P.U.E. (Belarus) for the amount of US$ 142. In July 2021, the Company increased its
investment in its 70% owned subsidiary I.O.N Clinical Trading Ltd (Cyprus) for the amount of US$ 240. In
November 2021, the Company increased its investment in its wholly owned subsidiary ASBIS POLAND SP. Z.O.O
(Poland) for the amount of US$ 216.
(vi) In March 2021, the Company increased its investment in its wholly owned subsidiary ASBIS PL SP. Z O.O.
(Poland) for the amount of US$ 2,357 and impaired the full amount.
(vii) During 2022, the Company decreased its financial guarantees provided to subsidiaries for the amount of US$
272 (2021: increase of US$ 189).
All subsidiaries are involved in the trading and distribution of computer hardware and software apart from Entoliva Ltd
which is involved in land development.
The Company periodically evaluates the recoverability of investments in subsidiaries whenever indicators of impairment
are present. Indicators of impairment include such items as declines in revenues, earnings or cash flows or material
adverse changes in the economic or political stability of a particular country, which may indicate that the carrying
amount of an asset is not recoverable. If facts and circumstances indicate that investment in subsidiaries may be
impaired, the estimated future discounted cash flows associated with these subsidiaries would be compared to their
carrying amounts to determine if a write-down to fair value is necessary.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
51
11. Investment in subsidiary companies (continued)
Based on the results of the impairment assessment performed as at 31 December 2022, the management decided no
impairment is required for the investments in subsidiaries. Based on the results of the impairment assessment
performed as at 31 December 2021, the management decided to fully impair investment in ASBIS PL SP. Z O.O.
(Poland) (note xi). The total amount of impairment loss amounting to US$ 2,357 is recognized in the statement of
profit and loss and other comprehensive income.
At the year end the Company held a participation in the following subsidiaries:
Subsidiary Company
Country of
incorporation
Percentage of participation
2022
2021
%
%
ASBIS UKRAINE LTD
Ukraine
100
100
ASBIS KAZAKHSTAN LLP
Kazakhstan
100
100
ASBIS PL SP. Z O.O. - dormant
Poland
100
100
ASBIS POLAND SP. Z.O.O
Poland
100
100
ASBIS ROMANIA SRL
Romania
100
100
ASBISC-CR D.O.O.
Croatia
100
100
ASBIS D.O.O.
Serbia
100
100
ASBIS HUNGARY COMMERCIAL LTD
Hungary
100
100
ASBIS BULGARIA LTD
Bulgaria
100
100
ASBIS CZ, SPOL S.R.O.
Czech Republic
100
100
ASBIS VILNIUS UAB
Lithuania
100
100
ASBIS D.O.O.
Slovenia
100
100
ASBIS ME FZE
United Arab Emirates
100
100
ASBIS SK SPOL S.R.O.
Slovakia
100
100
ASBC F.P.U.E.
Belarus
100
100
E.M. EURO-MALL LTD
Cyprus
100
100
ASBIS OOO
Russia
100
100
ASBIS MOROCCO SARL – dormant
Morocco
100
100
ASBIS BALTICS SIA
Latvia
100
100
ASBIS KYPROS LIMITED
Cyprus
100
100
PRESTIGIO PLAZA LTD
Cyprus
100
100
PERENIO IoT SPOL S.R.O. (iv)
Czech Republic
100
100
EURO-MALL SRO (ii)
Slovakia
100
100
ASBIS CHINA CORP.
China
100
100
EUROMALL BULGARIA EOOD – dormant (ii)
Bulgaria
100
100
ASBIS D.O.O.
Bosnia Herzegovina
90
90
ASBIS DE GmbH (i)
Germany
100
100
CJSC ASBIS
Belarus
100
100
“E-VISION” UNITARY ENTERPRISE
Belarus
100
100
ASBIS IT Solutions Hungary Kft
Hungary
100
100
I ON LLC (ii)
Ukraine
100
100
ASBC MMC
Azerbaijan
65.85
65.85
iSupport LTD (vii)
Ukraine
100
100
ASBC KAZAKHSTAN LLP (v)
Kazakhstan
100
100
Atlantech LTD (v)
United Arab Emirates
100
100
ASBC LLC
Georgia
100
100
Private Educational Institution “Center of excellence in Education for
executives and specialists in Information Technology” (i)
Belarus
-
100
OOO Must (xii)
Russia
-
100
i-Care LLC (ix)
Kazakhstan
100
100
Real Scientists Ltd
United Kingdom
55
55
MakSolutions LLC (xiii)
Belarus
100
100
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
52
11. Investment in subsidiary companies (continued)
Subsidiary Company
Country of
incorporation
Percentage of participation
2022
2021
%
%
Breezy LLC (xi)
Belarus
100
100
Breezy Kazakhstan TOO (xiv)
Kazakhstan
100
100
Breezy LLC (vii)
Ukraine
100
100
I.O.N Clinical Trading Ltd
Cyprus
70
70
R.SC. Real Scientists Cyprus Ltd
Cyprus
85
85
Breezy Trade-In Ltd
Cyprus
80
80
ASBIS CA LLC
Uzbekistan
100
100
Breezy Service LLC (x)
Ukraine
100
100
I.O. Clinic Latvia SIA (vi)
Latvia
100
100
Joule Production SIA (viii)
Latvia
100
100
ASBC LLC (Armenia)
Armenia
100
100
Breezy Georgia LLC (xi)
Georgia
100
100
ASBC Entity OOO
Uzbekistan
100
100
ACEAN.PL Sp. z o.o (ii) (iii)
Poland
100
-
Entoliva Ltd (iii)
Cyprus
100
-
ASBIS HELLAS SINGLE MEMBER S.A. (iii)
Greece
100
-
Prestigio Plaza Kft (ii) (iii)
Hungary
100
-
ASBC SRL (ii) (iii)
Moldova
100
-
Breezy-M SRL (iii) (xi)
Moldova
100
-
Breezy Poland Sp. Z.o.o. (iii) (xi)
Poland
100
-
(i) Liquidated during 2022, or under liquidation
(ii) Held by E.M. Euro-Mall Ltd – Cyprus
(iii) Established/acquired during 2022
(iv) Held by Prestigio Plaza Ltd
(v) Held by Asbis Middle East FZE
(vi) Held by I.O.N Clinical Trading Ltd
(vii) Held by Asbis Ukraine Ltd
(viii) Held by R.SC. Real Scientists Cyprus Ltd
(ix) Held by ASBC Kazakhstan LLC
(x) Held by Breezy Ltd
(xi) Held by Breezy Trade-In Ltd
(xii) Disposed during 2022
(xiii) In 2021, held by E.M. Euro-Mall Ltd and ASBC F.P.U.E. In 2022, held by Breezy Trade-In Ltd.
(xiv) In 2021, held by ASBC KAZAKHSTAN LLP. In 2022, held by held by Breezy Trade-In Ltd.
12. Equity-accounted investees
The Company
As at
31 December
2022
As at
31 December
2021
US$
US$
Cost
At 1 January
1,790
868
Additions (i), (ii)
53
1,149
Full acquisition of investment in associate (iii)
-
(227)
At 31 December
1,843
1,790
Accumulated share of loss from equity-accounted investees
At 1 January
(41)
(41)
Share of loss from equity-accounted investees during the year
(162)
-
At 31 December
(203)
(41)
Carrying amount of equity-accounted investees
1,640
1,749
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
53
12. Equity-accounted investees (continued)
(i) In May 2022, the Company acquired 20% shareholding in Displayforce Global Ltd (Cyprus), for the
consideration of US$ 53. The investment is accounted for as an associate.
(ii) In December 2021, the Company acquired 20% shareholding in Embio Diagnostics Ltd (Cyprus), for the
consideration of US$ 1,149. The investment is accounted for as an associate.
(iii) In March 2021, the Group acquired the remaining 50% shareholding of Breezy Trade-In Ltd, for the
consideration of US$ 31.
The loan granted to associate LLC Clevetura, borne interest of 4% p.a. and has been repaid during 2022. In addition,
the Group, for the period ending 31 December 2022, acquired services for the total amount of US$ 532 (2021: US$
611) from this associate.
13. Financial assets at fair value through other comprehensive income
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Financial assets at fair value through other
comprehensive income
1,515
-
1,515
-
The details of the investments are as follows:
Name
Country of
incorporation
Participation
%
Cost
US$
Impairment
US$
As at
31 December
2022
As at
31 December
2021
US$
US$
Promed
Bioscience Ltd
Cyprus
16%
808
-
808
-
RSL
Revolutionary
Labs Ltd
Cyprus
15.5%
707
-
707
-
1,515
-
1,515
-
In November 2022, the Group and the Company acquired 16% of shares of Promed Science Ltd and 15.5% shares of
RSL Revolutionary Labs Ltd.
The Group has recognized the above as investments at FVOCI as the Group intends to hold for the long term for
strategic purposes.
14. Trade payables factoring facilities
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Trade payables factoring facilities
18,024
28,298
15,443
25,911
The Group and the Company participate in trade payables factoring facilities (or “supply chain financing facilities” -
“SCFs”) programs which enable the Group and the Company to obtain extended payment terms for pre-approved
suppliers. The Group incurs additional interest towards the SCFs on the amounts due to suppliers. The Company may
elect to have any of its SCFs pay its suppliers either on the discount date or on due date and then obtain extended
payment terms from them.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
54
14. Trade payables factoring facilities (continued)
The Group discloses the amounts factored by suppliers separately from trade payables because the nature and function
of the financial liabilities is sufficiently different from a trade payable that a separate presentation is appropriate. The
payments to the bank are included within operating cash flows because they continue to be part of the normal operating
cycle of the Group and their principal nature remains operating – i.e. payments for the purchase of goods and services.
As at 31 December 2022, the Company and the Group enjoyed trade payables factoring facilities of US$ 20,500 and
US$ 31,874, respectively (2021 US$ 62,000 and US$ 70,749 respectively).
15. Inventories
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Trading goods (i)
513,418
324,560
221,481
102,287
Land development (ii)
1,386
-
-
-
514,804
324,560
221,481
102,287
(i) Trading goods
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Goods held for resale
449,733
269,686
196,607
78,075
Goods in transit
71,069
59,620
30,150
27,215
Provision for slow moving and obsolete stock
(7,384)
(4,746)
(5,276)
(3,003)
513,418
324,560
221,481
102,287
The Group
As at 31 December 2022, inventories pledged as security for financing purposes amounted to US$ 82,547 (2021: US$
103,948).
The Company
As at 31 December 2022, inventories pledged as security for financing purposes amounted to US$ 11,500 (2021: US$
18,500).
Movement in provision for slow moving and obsolete
stock
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
On 1 January
4,746
5,308
3,003
3,589
Provisions during the year
3,294
716
2,340
31
Provided stock written off
(554)
(1,319)
(67)
(617)
Exchange difference
(102)
41
-
-
On 31 December
7,384
4,746
5,276
3,003
(ii) Land development
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Land - Not under development yet
1,386
-
-
-
During the year, the Group acquired two plots of land in Cyprus, where a complex of houses is going to be built in the
near future.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
55
16. Trade receivables
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Trade receivables
313,503
344,645
46,577
44,023
Prepayments to trade vendors
18,759
10,009
8,115
4,937
Allowance for doubtful debts
(3,331)
(2,379)
(1,378)
(375)
328,931
352,275
53,314
48,585
The Group
As at 31 December 2022, receivables of the Group that have been pledged as security for financing purposes amounted
to US$ 80,040 (2021: US$ 89,968).
The Company
As at 31 December 2022, receivables of the Company that have been pledged as security for financing purposes
amounted to US$ nil (2021: US$ nil).
Movement in provision for doubtful debts:
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
On 1 January
2,379
2,096
375
200
Provisions during the year
1,269
652
1,079
243
Amount written-off as uncollectible
(240)
(300)
(76)
(68)
Bad debts recovered
(7)
(11)
-
-
Exchange difference
(70)
(58)
-
-
On 31 December
3,331
2,379
1,378
375
Ageing of trade receivables
The Group
Year
Total
receivables
Outstanding
but not due
yet
Overdue
between
Overdue
between
Overdue
more than
1-30 days
30-60 days
60 days
US$
US$
US$
US$
US$
2022
313,503
276,219
22,869
6,597
7,818
2021
344,645
322,510
14,388
2,451
5,296
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
56
16. Trade receivables (continued)
The Group
Ageing of impaired receivables (provision for bad debts)
Year
Total
Outstanding
but not due
yet
Overdue
between
Overdue
between
Overdue
more
than 60
days
1-30 days
30-60 days
US$
US$
US$
US$
US$
2022
3,331
408
6
1
2,916
2021
2,379
302
5
10
2,062
The Company
Ageing of trade receivables
Year
Total
receivables
Outstanding
but not due
yet
Overdue
between
Overdue
between
Overdue
more than
1-30 days
30-60 days
60 days
US$
US$
US$
US$
US$
2022
46,577
39,015
4,337
770
2,455
2021
44,023
36,741
4,167
760
2,355
Ageing of impaired receivables (provision for bad debts)
Year
Total
Outstanding
but not due
yet
Overdue
between
Overdue
more
Overdue
more
than 60
days
1-30 days
30-60 days
US$
US$
US$
US$
US$
2022
1,378
-
-
-
1,378
2021
375
-
-
-
375
17. Other current assets
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
VAT and other taxes refundable
16,253
6,886
1,178
568
Deposits and advances to service providers
386
302
20
21
Employee floats
167
112
127
40
Other debtors and prepayments
6,780
4,659
1,380
866
Amount due from subsidiary companies (Note 30)
-
-
154,020
172,261
Allowance for doubtful debts from subsidiary companies
-
-
(2,290)
(1,684)
Loans due from subsidiary companies (Note 30)
-
-
3,417
2,622
23,586
11,959
157,852
174,694
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
57
Following an extraordinary general meeting of the shareholders on 28
th
March 2022, a share buyback program with
the following conditions was approved:
• the maximum amount of money that can be used to realize the program is US$ 1,000,000
• the maximum number of shares that can be bought within the program is 2,000,000 shares
• the program's time frame is 12 months from the resolution date
• the shares purchased within the program could be held for a maximum of two years from acquisition
• the minimum price for transaction of purchase of shares within the program is PLN 1.0 per share with the maximum
price of PLN 30.0 per share
At the end of 2022 the Company held a total of 328,800 (2021: nil) shares purchased for a total consideration of US$
996 (2021: US$ nil).
18. Share capital
(for the purposes of this note the amounts are stated in full)
2022
2021
US$
US$
Authorized
63,000,000 (2021: 63,000,000) shares of US$ 0.20 each
12,600.000
12,600,000
Issued and fully paid
55,500,000 (2021: 55,500,000) ordinary shares of US$ 0.20 each
11,100,000
11,100,000
On 31 December 2022 the issued and fully paid share capital of the Company consisted of 55,500,000 ordinary shares
of US$ 0.20 each.
19. Short-term borrowings
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Current borrowings
Bank overdrafts (Note 29)
42,246
33,698
5,164
342
Current portion of long-term loans
224
241
-
-
Bank short-term loans
98,146
69,885
-
-
Current lease liabilities (Note 22)
2,393
1,737
751
347
Total short-term debt
143,009
105,561
5,915
689
Factoring creditors
62,287
73,143
10,654
12,755
205,296
178,704
16,569
13,444
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
58
19. Short-term borrowings (continued)
Summary of borrowings and overdraft arrangements
The Group
As at 31 December 2022 the Group had factoring facilities of US$ 199,952 (2021: US$ 168,974).
In addition, the Group as at 31 December 2022 had the following financing facilities with banks in the countries that
the Company and its subsidiaries operate:
• overdraft lines of US$ 100,237 (2021: US$ 119,776)
• short-term loans/revolving facilities of US$ 133,686 (2021: US$ 101,450)
• bank guarantee and letters of credit lines of US$ 41,960 (2021: US$ 60,275)
The Group had for the year ended 31 December 2022 cash lines (overdrafts, loans and revolving facilities) and factoring
lines.
The Weighted Average Cost of Debt (cash lines and factoring lines) for the period is 10.5% (2021: 6.0%).
The factoring, overdraft and revolving facilities as well as the loans granted to the Company and its subsidiaries by
their bankers are secured by:
• Floating charges over all assets of the Company
• Mortgage on land and buildings that the Group owns in Cyprus, Czech Republic, Belarus, Middle East, Bulgaria,
Slovakia and Ukraine
• Charge over receivables and inventories
• Corporate guarantees
• Assignment of insurance policies
• Pledged deposits of US$ 20,822 (2021: US$ 32,453)
The Company
As at 31 December 2022 the Company enjoyed factoring facilities of US$ 18,000 (2021: US$ 18,000).
In addition, the Company, as at 31 December 2022 had the following financing facilities with banks:
• Overdraft facilities of US$ 31,113 (2021: US$ 35,128)
• Long-term loan facilities US$ nil (2021: US$ nil)
• Bank guarantee and letter of credit lines of US$ 38,906 (2021: US$ 56,967)
The Company had cash lines (overdrafts and revolving facilities) with average cost for the year of 6.2% (2021: 4.3%).
The overdraft, revolving and factoring facilities granted to the Company are secured by:
• Floating charges over all assets of the Company
• Pledged deposits US$ 16,880 (2021: US$ 28,886)
• Mortgage on immovable properties in the amount of US$ 23,072 (2021 US$ 25,020)
20. Long-term borrowings
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Bank loans
553
123
-
-
Non-current lease liabilities (note 22)
8,630
4,982
4,412
725
9,183
5,105
4,412
725
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
59
21. Other long-term liabilities
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Other long-term liabilities
859
791
-
-
22. Lease liabilities
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Current lease liabilities (Note 19)
2,393
1,737
751
347
Non-current lease liabilities (Note 20)
8,630
4,982
4,412
725
11,023
6,719
5,163
1,072
23. Deferred tax
The Group
Temporary
differences
between
accounting and
tax base of PPE
and intangibles
(note i)
Tax losses
(note ii)
Other
temporary
differences
(note iii)
Total
US$
US$
US$
US$
Credit/(debit) balance on 1 January 2021
21
-
(181)
(160)
Deferred tax credit for the year
4
-
-
4
Exchange difference on retranslation
-
-
29
29
Credit/(debit) balance on 31 December 2021
25
-
(152)
(127)
Deferred tax (charge)/credit for the year
(64)
1
67
4
Exchange difference on retranslation
-
-
(42)
(42)
(Debit)/credit balance on 31 December 2022
(39)
1
(127)
(165)
The Company
Temporary
differences
between
accounting and
tax base of PPE
and intangibles
(note i)
Tax losses
(note ii)
Other
temporary
differences
(note iii)
Total
US$
US$
US$
US$
Credit balance on 1 January 2021
232
-
-
232
Deferred tax credit for the year
43
-
-
43
Credit balance on 31 December 2021
275
-
-
275
Deferred tax charge for the year
(160)
-
-
(160)
Credit balance on 31 December 2022
115
-
-
115
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
60
23. Deferred tax (continued)
Note (i)
The Group and the Company
The deferred tax liability relates to excess of capital allowances over depreciation and amortization.
Note (ii)
The Group
The deferred tax asset arises from the tax losses that can be carried forward and setoff against the first available
taxable profits of the Group companies subject to the carry forward of losses restrictions stipulated in the relevant laws
of the country of each relevant subsidiary.
The Company
The deferred tax asset arises from the tax losses that can be carried forward and set-off against the first available
taxable profits of the Company.
In accordance with the Cyprus tax legislation, tax losses can be carried forward for 5 years.
Note (iii)
The Group and the Company
Other temporary differences relate mainly to different accounting bases between treatment in accordance with IFRSs
and treatment in accordance with local tax standards and mainly consist of the tax effect of unrealized profits/losses
on revaluation of working capital and of different treatment in valuing inventory.
Note (iv)
Deferred tax assets and liabilities are offset when there is a legally unforeseeable right to set-off current tax assets
against current tax liabilities and when the deferred taxes relate to the same fiscal authority.
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Deferred tax assets
(285)
(456)
-
-
Deferred tax liabilities
120
329
116
275
Net deferred tax (assets)/liabilities
(165)
(127)
116
275
24. Other current liabilities
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Salaries payable and related costs
4,305
4,834
515
2,219
VAT payable
8,854
11,177
-
170
Non-trade accounts payable
6,004
8,081
2,178
2,835
Accruals, deferred income and other provisions
107,213
77,893
65,746
36,306
Provision for marketing
30,182
19,857
26,032
13,304
Provision for warranties
7,465
7,448
5,313
5,336
Amount payable to subsidiary companies (Note 30)
-
-
4,522
4,582
164,023
129,290
104,306
64,752
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
61
25. Trade payables and prepayments
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Trade payables
400,283
364,396
245,310
212,626
Prepayments from customers
17,693
21,891
8,222
6,051
417,976
386,287
253,532
218,677
26. Operating segments
The Group
1.1 Segment information
The Group mainly operates in a single industry segment as a distributor of IT products. Information reported to the
chief operating decision maker for the purposes of allocating resources to the segments and to assess their performance
is based on geographical locations. The Group operates in four principal geographical areas – Former Soviet Union,
There are varying levels of integration between the segments and includes distribution of IT products and services.
Inter-segment pricing is determined on an arm’s length basis.
1.2 Segment revenues and results
Segment revenue
Segment operating profit
2022
2021
2022
2021
US$
US$
US$
US$
Former Soviet Union
1,407,196
1,774,834
54,422
58,804
Central Eastern Europe
653,643
654,117
26,946
21,577
Middle East & Africa
407,717
327,799
21,056
15,936
Western Europe
183,088
266,607
8,151
11,175
Other
38,395
54,619
419
6,257
2,690,039
3,077,976
110,994
113,749
Net financial expenses (note 6)
(20,734)
(19,687)
Share of loss from equity-accounted investees (note 12)
(162)
-
Other gains and losses (note 4)
948
180
Profit before taxation
91,046
94,242
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
62
26. Operating segments (continued)
1.3 Segment capital expenditure (CAPEX) and depreciation & amortization
The following is an analysis of the Group’s capital expenditure in both tangible and intangible assets as well as their
corresponding charges in the income statement:
Segment CAPEX
Segment depreciation and
amortization
2022
2021
2022
2021
US$
US$
US$
US$
Former Soviet Union
10,407
9,315
1,831
1,517
Central Eastern Europe
14,510
14,569
1,570
1,486
Middle East & Africa
3,677
3,631
197
187
Cyprus
27,541
18,668
2,179
1,872
Other
31
39
10
12
56,166
46,222
5,787
5,074
1.4 Segment assets and liabilities
Segment assets
2022
2021
US$
US$
Former Soviet Union
408,154
500,800
Central Eastern Europe
118,280
68,868
Western Europe
210,638
168,729
Middle East & Africa
227,291
104,370
Total
964,363
842,767
Assets allocated in capital expenditure (1.3)
56,166
46,222
Other unallocated assets
42,997
34,198
Consolidated assets
1,063,526
923,187
For the purposes of monitoring segment performance and allocating resources between segments only assets were
allocated to the reportable segments. As the Group liabilities are mainly used jointly by the reportable segments, these
were not allocated to each segment.
1.5 Geographical information
Since the Group’s operating segments are based on geographical location and this information has been provided
above (1.2 – 1.4) no further analysis is included.
1.6. Information about major customers
It is of a strategic importance for the Group to place no reliance to any customer individually, since no customer is
accountable for material percentage of the total business.
27. Derivative financial liabilities
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Derivative financial liabilities carried at fair value through profit or loss
Foreign currency derivative contracts
263
299
256
129
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
63
27. Derivative financial liabilities (continued)
Fair value measurement of derivative financial liabilities
The Group
Nominal
amount
Nominal
amount
Fair value
Fair value
2022
2021
2022
2021
US$
US$
US$
US$
Buying US$/Selling EUR
12,303
17,818
200
64
Buying US$/Selling PLN
2,600
500
18
2
Buying US$/Selling RON
1,100
1,050
5
2
Buying US$/Selling RUB
-
6,400
-
41
Buying US$/Selling KZT
-
1,025
-
25
Buying US$/Selling GBP
49
42
1
1
Buying US$/Selling CZK
-
300
-
2
Buying US$/Selling UAH
-
8,843
-
94
Buying US$/Selling HUF
610
456
20
3
Buying US$/Selling BGN
495
-
5
-
Buying EUR/Selling US$
40
1,002
2
14
Buying EUR/Selling HUF
719
-
12
-
Buying BGN/Selling USD
-
119
-
2
Charges on open contracts
-
-
-
49
17,916
37,555
263
299
(i) The Group and the Company enter into currency derivative contracts, namely forward and future currency
derivatives, as part of their overall hedging strategy in order to minimize the exposure to foreign currency fluctuations.
(ii) A foreign currency forward derivative contract is a contractual agreement between two parties to exchange two
currencies at a given exchange rate at some point in the future. The fair value of the derivative can be either positive
(asset) or negative (liability) as a result of fluctuations in the forward exchange rates.
(iii) A foreign currency future derivative contract is a contractual agreement between two parties to buy or sell currency
at a predetermined price in the future. The fair value of the derivative can be either positive (asset) or negative (liability)
as a result of fluctuations in the period end exchange rate.
The Company
Nominal
amount
Nominal
amount
Fair value
Fair value
2022
2021
2022
2021
US$
US$
US$
US$
Buying US$/Selling PLN
2,600
500
18
2
Buying US$/Selling RUB
-
6,400
-
41
Buying US$/Selling CZK
-
300
-
2
Buying US$/Selling EUR
12,303
17,818
200
64
Buying US$/Selling HUF
610
456
20
3
Buying US$/Selling RON
1,100
1,050
5
2
Buying US$/Selling GBP
49
42
1
1
Buying EUR/Selling US$
-
1,002
-
14
Buying EUR/Selling HUF
719
-
12
-
17,381
27,568
256
129
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
64
27. Derivative financial liabilities (continued)
(iv) During the year the Group realized a gain from execution of foreign currency derivative contracts of US$ 1,866
(2021: loss of US$ 2,052) and the Company realized a gain of US$ 1,304 (2021: loss of US$ 234).
28. Derivative financial assets
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Derivative financial assets carried at fair value through profit or loss
Foreign currency derivative contracts
413
192
316
164
The Group
Nominal
amount
Nominal
amount
Fair value
Fair value
2022
2021
2022
2021
US$
US$
US$
US$
Buying US$/Selling EUR
4,346
6,744
106
46
Buying US$/Selling RON
750
350
2
-
Buying US$/Selling BGN
1,159
-
9
-
Buying US$/Selling HRK
-
1,085
-
29
Buying US$/Selling PLN
250
500
-
3
Buying US$/Selling HUF
1,468
1,618
258
113
Buying US$/Selling BYN
600
-
36
-
Buying US$/Selling GBP
108
-
2
-
Buying EUR/Selling PLN
-
827
-
1
8,681
11,124
413
192
Fair value measurement of derivative financial assets
(i) The Group and the Company enter into currency derivative contracts, namely forward and future currency
derivatives, as part of their overall hedging strategy in order to minimize the exposure to foreign currency fluctuations.
(ii) A foreign currency forward derivative contract is a contractual agreement between two parties to exchange two
currencies at a given exchange rate at some point in the future. The fair value of the derivative can be either positive
(asset) or negative (liability) as a result of fluctuations in the forward exchange rates.
The Company
Nominal
amount
Nominal
amount
Fair value
Fair value
2022
2021
2022
2021
US$
US$
US$
US$
Buying US$/Selling EUR
1,252
6,744
54
46
Buying US$/Selling PLN
250
500
-
3
Buying US$/Selling RON
750
350
2
-
Buying US$/Selling HUF
1,468
1,618
258
113
Buying US$/Selling GBP
108
-
2
-
Buying EUR/Selling PLN
-
827
-
2
3,828
10,039
316
164
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
65
28. Derivative financial assets (continued)
(iii) A foreign currency future derivative contract is a contractual agreement between two parties to buy or sell
currency at a predetermined price in the future. The fair value of the derivative can be either positive (asset) or
negative (liability) as a result of fluctuations in the period end exchange rate.
(iv) During the year the Group realized a gain from execution of foreign currency derivative contracts of US$ 1,866
(2021: loss of US$ 2,052) and the Company realized a gain of US$ 1,304 (2021: loss of US$ 234).
29. Cash and cash equivalents
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Cash at bank and in hand
134,598
184,618
64,375
98,168
Bank overdrafts (Note 19)
(42,246)
(33,698)
(5,164)
(342)
92,352
150,920
59,211
97,826
The Group
The cash at bank and in hand balance includes an amount of US$ 20,822 (2021: US$ 32,453) which represents pledged
deposits against financial facilities granted and margin accounts for foreign exchange hedging.
The Company
The cash at bank and in hand balance includes an amount of US$ 16,880 (2021: US$ 28,886) which represents pledged
deposits.
30. Related party transactions and balances
Main shareholders
The following table presents shareholders possessing directly or indirectly more than 5% of the Company’s shares and
shares held by the Company under the share buyback program as at 31 December:
Name
2022
2022
2021
2021
Number of
Votes/share
Number of
Votes/share
votes/shares
capital
votes/shares
capital
%
%
Siarhei Kostevitch and KS Holdings Ltd
20,448,127
36.84
20,443,127
36.83
Asbisc Enterprises Plc (share buyback program)
328,800
0.59
-
-
Free float
34,723,073
62.57
35,056,873
63.17
55,500,000
100.00
55,500,000
100.00
Transactions and balances between the Company and its subsidiaries have been eliminated on consolidation.
The Company
In the normal course of business, the Company undertook during the year transactions with its subsidiary companies
and had year end balances as follows:
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
66
30. Related party transactions and balances (continued)
Intercompany (trading) transactions
Sales of goods
Purchases of goods
2022
2021
2022
2021
US$
US$
US$
US$
Subsidiaries
1,280,224
1,599,069
61,676
56,653
Sales of services
Purchases of services
2022
2021
2022
2021
US$
US$
US$
US$
Subsidiaries
422
445
29,395
14,148
Intercompany (trading) balances
Amounts owed by
subsidiary companies
Amounts owed to
subsidiary companies
2022
2021
2022
2021
US$
US$
US$
US$
Subsidiaries
151,730
170,577
4,522
4,582
Loans to subsidiary companies
2022
2021
US$
US$
Loans to subsidiary companies (Note 17)
3,417
2,622
The total loans to subsidiary companies before provision for doubtful loans are unsecured and analyzed below:
Subsidiary companies
Interest rate
Source
currency
2022
2021
%
US$
US$
SIA "Joule Production" (ii)
2
Euro
386
600
ION Clinic Latvia SIA (iii)
2
Euro
63
744
R.SC Real Scientists Cyprus Ltd (iv)
2.5
Euro
180
186
CJSC ASBIS (i)
4
US Dollar
1,068
1,092
Entoliva Ltd (v)
2.5
Euro
1,720
-
3,417
2,622
The total interest received from subsidiary companies is analyzed below:
2022
2021
US$
US$
ION Clinic Latvia SIA (iii)
14
8
R.SC Real Scientists Cyprus Ltd (iv)
4
4
SIA "Joule Production" (ii)
10
4
CJSC ASBIS (i)
42
42
Entoliva Ltd (v)
14
-
84
58
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
67
30. Related party transactions and balances (continued)
(i) CJSC ASBIS entered into a loan agreement with the Company on the 24th of November 2014, with the
obligation to settle the loan by 30
th
of September 2024. The loan is unsecured.
(ii) SIA "Joule Production" entered into two loan agreements with the Company on the 29
th
of July 2021 and
25
th
of October 2021 with the obligation to settle the loan by 31
st
of December 2023 and 31
st
of December
2024 accordingly. The loan is unsecured.
(iii) ION Clinic Latvia SIA entered into a loan agreement with the Company on the 24
th
of June 2021, with the
obligation to settle the loan by 31
st
of December 2023. The loan is unsecured.
(iv) R.SC Real Scientists Cyprus Ltd SIA entered into a loan agreement with the Company on the 1
st
of March
2021, with the obligation to settle the loan by 1
st
of March 2023. The loan is unsecured.
(v) Entoliva Ltd entered into a loan agreement with the Company on the 26
th
of August 2022, with the obligation
to settle the loan by 25
th
of August 2023. The loan is unsecured.
Financial guarantees liabilities
2022
2021
US$
US$
Financial guarantee liabilities granted to subsidiaries
881
1,153
The Company provides free of charge financial guarantee services to its subsidiaries. The Company accounted for such
financial guarantees as for financial guarantee contracts in accordance with IFRS 9. Financial guarantee facilities of
subsidiaries are mainly presented by overdrafts and factoring contracts, thus financial guarantee liability recognized in
short-term.
Transactions and balances of key management
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Directors’ remuneration and benefits - executive
1,650
1,706
1,650
1,706
Directors’ remuneration - non-executive
25
32
25
32
Key management remuneration
In capacity as other key management personnel
1,874
1,725
456
329
Employer’s contributions - provident fund
9
7
7
7
Employer’s contributions - social insurance and
other benefits
182
175
30
26
3,740
3,645
2,168
2,100
Share-based payment arrangements
At 31 December 2022, the Group had the following share-based payment arrangement:
Following an extraordinary general meeting of the shareholders on the 28
th
March 2022, a share buyback program
with the following conditions was approved:
Share option program (equity-settled)
• the maximum amount of money that can be used to realize the program is US$ 1,000
• the maximum number of shares that can be bought within the program is 2,000,000 shares
• the program's time frame is 12 months from the resolution date
• the shares purchased within the program could be held for a maximum of two years from acquisition
• the minimum price for transaction of purchase of shares within the program is PLN 1.0 per share with the
maximum price of PLN 30.0 per share
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
68
30. Related party transactions and balances (continued)
At the end of 2022 the Company held a total of 328,800 (2021: nil) shares purchased for a total consideration of US$
996 (2021: US$ nil) (note 18).
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Salaries and other benefits
76,389
69,760
12,507
10,020
The average number of employees for the year was
2,222
2,079
220
167
31. Commitments and contingencies
The Group
As at 31 December 2022 the Group was committed in respect of purchases of inventories of a total cost value of US$
32,603 (2021: US$ 9,937) which were in transit at 31 December 2022 and delivered in January 2023. Such inventories
and the corresponding liability towards the suppliers have not been included in these financial statements since,
according to the terms of purchase, title of the goods has not passed to the Group at year end.
As at 31 December 2022 the Group was contingently liable to banks in respect of bank guarantees and letters of credit
lines of US$ 41,960 (2021: US$ 60,275) (note 19) which the Group has extended to its suppliers and other
counterparties.
As at the 31st December 2022 the Group had no other capital or legal commitments and contingencies.
The Company
As at 31 December 2022 the Company was committed in respect of purchases of inventories of a total cost value of
US$ 32,603 (2021: US$ 9,937) which were in transit at 31 December 2022 and delivered in January 2023. Such
inventories and the corresponding liability towards the suppliers have not been included in these financial statements
since, according to the terms of purchase, title of the goods has not passed to the Company at year end.
As at 31 December 2022 the Company was contingently liable to banks in respect of bank guarantees and letters of
credit of US$ 38,906 (2021: US$ 56,967) (note 19) which the Company has extended to its suppliers and other
counterparties.
The liabilities towards the Company’s suppliers covered by these guarantees are reflected in the financial statements
under trade payables.
In addition, the Company has issued corporate guarantees to banks in respect of financing facilities extended to its
subsidiaries in the amount of US$ 176,223 (2021: US$ 230,835).
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
69
32. Earnings per share
2022
2021
US$
US$
Profit for the year attributable to members
75,870
77,067
Weighted average number of shares for the purposes of basic and diluted earnings
per share
55,500,000
55,500,000
US$ cents
US$ cents
Basic and diluted earnings per share
33. Business combinations
The Group
1. Incorporations and acquisitions
1.1 Incorporations of subsidiaries to 31 December 2022
During the period the Group has incorporated 100% of the share capital of the following subsidiaries:
Name of entity
Type of operations
Date acquired/
incorporated
%
acquired/
incorporated
%
owned
ACEAN.PL Sp. z.o.o (Poland)
Information Technology
12 April 2022
100%
100%
Entoliva Ltd (Cyprus)
Land Development
8 August 2022
100%
100%
Breezy Poland (Poland)
Information Technology
18 November 2022
100%
100%
ASBC SRL (Moldova)
Information Technology
8 November 2022
100%
100%
ASBIS Hellas Single Member S.A. (Greece)
Information Technology
18 November 2022
100%
100%
Prestigio Plaza Kft. (Hungary)
Information Technology
24 November 2022
100%
100%
Breezy-M SRL (Moldova)
Information Technology
8 December 2022
100%
100%
Incorporations and acquisitions of subsidiaries to 31 December 2021
During the year, the Group has incorporated the 100% share capital of ASBIS CA LLC, Vizuators LLC, Breezy Service
LLC, I.O. Clinic Latvia SIA, Joule Production SIA, ASBC LLC (Armenia), Breezy Georgia LLC and ASBC Entity LLC.
Name of entity
Type of operations
Date incorporated
%
incorporated
%
owned
Breezy Trade-In Ltd (Cyprus)
Information Technology
30 March 2021
30%
80%
ASBIS CA LLC (Uzbekistan)
Information Technology
5 February 2021
100%
100%
Vizuators LLC (Belarus)
Information Technology
1 February 2021
100%
100%
Breezy Service LLC (Ukraine)
Information Technology
15 March 2021
100%
100%
I.O. Clinic Latvia SIA (Latvia)
Information Technology
3 February 2021
100%
100%
Joule Production SIA (Latvia)
Information Technology
8 January 2021
100%
100%
ASBC LLC (Armenia)
Information Technology
23 August 2021
100%
100%
Breezy Georgia LLC (Georgia)
Information Technology
7 September 2021
100%
100%
ASBC Entity OOO (Uzbekistan)
Information Technology
15 December 2021
100%
100%
During the year, the Group has acquired the 30% of the share capital of Breezy Trade-In Ltd.
Name of entity
Type of operations
Date acquired
%
acquired
%
owned
Breezy Trade-In Ltd (Cyprus)
Information Technology
30 March 2021
30%
80%
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
70
33. Business combinations (continued)
1.a. Acquired assets and liabilities
The net carrying value of underlying separately identifiable assets and liabilities transferred to the Group at the date
of acquisition was as follows:
As at
31 December
2022
As at
31 December
2021
US$
US$
Receivables
-
11
Other payables and accruals
-
(1)
Cash and cash equivalents
-
53
Net identifiable assets
-
63
Group’s interest in net assets acquired
-
31
Total purchase consideration
-
(31)
Net loss
-
-
1.2. Goodwill arising on acquisitions
2022
2021
US$
US$
At 1 January
595
629
Disposals
(201)
-
Foreign exchange difference on retranslation
(22)
(34)
At 31 December
372
595
The capitalized goodwill arose from the business combinations of the following subsidiaries:
2022
2021
US$
US$
OOO Must
-
201
ASBIS d.o.o. (BA)
372
394
372
595
1.3. Impairment testing
For ASBIS d.o.o. (BA), a detailed impairment analysis was performed and based on the results it has been concluded
that no impairment is required.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
71
33. Business combinations (continued)
2. Liquidations and disposals
Liquidations and disposals of subsidiaries to 31 December 2022
During the year, the following subsidiaries have been liquidated and disposed of and gain of US$ 1 arose on the event.
Name of disposed entity
Type of operations
Date liquidated
% liquidated
Private Educational Institution “Center of
excellence in Education for executives
and specialists in Information
Technology (Belarus)
Information Technology
19 May 2022
100%
Name of disposed entity
Type of operations
Date disposed
% sold
LLC Must (Russia)
Information Technology
29 July 2022
100%
Liquidations of subsidiaries to 31 December 2021
During the year, the following subsidiaries have been disposed of and a total loss of US$ 124 arose on the events.
Name of disposed entity
Type of operations
Date liquidated
% liquidated
LLC Vizuatika (Belarus)
Information Technology
24 May 2021
75%
LLC Vizuator (Belarus)
Information Technology
24 May 2021
75%
Vizuators LLC (Belarus)
Information Technology
24 May 2021
100%
Prestigio Plaza Sp. Z o.o (Poland)
Information Technology
25 October 2021
100%
Advanced Systems Company LLC
(Kingdom of Saudi Arabia)
Information Technology
30 October 2021
100%
Asbis TR Bilgisayar Limited Sirketi
(Turkey)
Information Technology
30 November 2021
100%
OOO Avectis (Moscow)
Information Technology
30 November 2021
100%
ALC Avectis (Belarus)
Information Technology
30 November 2021
100%
34. Financial risk management
1. Financial risk factors
In this note, references to the Group also relate to the Company.
The Group’s activities expose it to credit risk, interest rate risk, liquidity risk and currency risk arising from the financial
instruments it holds. The risk management policies employed by the Group to manage these risks are discussed below:
1.1. Credit risk
Credit risk is defined as the risk of failure of debtors to discharge their obligations towards the Group. The Group sets
up and maintains specific controls to mitigate its credit risk, as it realizes its importance for the Group’s viability.
The Group had established and systematically follows a thorough procedure prior to registering new customers into its
system. Every new customer is checked both internally and via various reputable credit sources prior to such
registration and, more importantly, prior to granting of any credit. The Group runs an internal credit department
consisting of local, regional and corporate credit managers. Corporate managers decide for all significant credit line
requests and review the work of regional and local managers. The Group uses all available credit tools – i.e. credit
insurance, credit information bureaus, letter of guarantee – to safeguard itself from the credit risk. The Group have
insured the majority of receivables during 2022.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
72
34. Financial risk management (continued)
It is of a strategic importance for the Group to place no reliance to any customer individually, since no customer is
accountable for material percentage of the total business.
Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit
insurance is purchased. The credit risk on liquid funds and derivative financial instruments is determined by the credit
ratings assigned to the financial institutions with which these funds are held.
The ageing profile of trade receivables is disclosed in note 16.
The tables below show an analysis of the Group's and Company’s bank deposits at year end by credit rating of the
bank in which they are held:
The Group
2022
2021
Based on credit ratings by Moody's; the cash at banks the Group held as at year end
are:
US$
US$
Aa3
2,365
2,475
A1
5,503
28,223
A2
22,517
34,907
A3
22,969
30,552
Baa1
431
841
Baa3
13,928
999
Ba1
234
1,079
Ba2
791
318
Ba3
481
222
B1
14,402
16,819
B2
105
165
B3
3
-
Without credit rating
50,869
68,018
134,598
184,618
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
73
34. Financial risk management (continued)
The Company
2022
2021
Based on credit ratings by Moody's, the cash at banks the Company held as at year
end are:
US$
US$
A1
5,484
28,160
A2
21,733
34,077
A3
20,343
16,089
B1
15,248
16,158
Without credit rating
1,567
3,684
64,375
98,168
Impairment on cash and cash equivalents has been measured on a twelve-month expected loss basis and reflects short
maturities of the exposures. The Group and the Company considers that its cash and cash equivalents have low credit
risk based on the external credit ratings of the counterparties and there is no material impact on the Group’s and
Company’s financial statements.
Trade receivables and contract assets
Expected credit loss assessment based on collective model net of specific provision as at 31 December 2022 are:
The Group
2022
2022
2022
2021
2021
2021
Default
rate
Gross
carrying
amount
Loss
allowance
Default
rate
Gross carrying
amount
Loss
allowance
%
US$
US$
%
US$
US$
Outstanding but not due yet
0.02
276,219
64
0.01
322,510
48
Overdue between 1-30 days
0.06
22,869
13
0.04
14,388
5
Overdue between 30-60 days
1.54
6,597
101
0.42
2,451
10
Overdue more than 60 days
7.18
7,818
561
2.12
5,296
112
313,503
739
344,645
175
The Company
2022
2022
2022
2021
2021
2021
Default
rate
Gross
carrying
amount
Loss
allowance
Default
rate
Gross
carrying
amount
Loss
allowance
%
US$
US$
%
US$
US$
Outstanding but not due yet
0.00
172,217
8
0.00
177,304
1
Overdue between 1-30 days
0.02
11,987
3
0.00
22,065
0
Overdue between 30-60 days
0.08
6,460
5
0.00
7,535
0
Overdue more than 60 days
18.32
9,326
1,708
17.95
9,380
1,684
199,990
1,724
216,284
1,685
Loss rates are based on actual credit loss experience over the past four years.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
74
34. Financial risk management (continued)
1.2. Interest rate risk
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest
rates. The Group’s income and operating cash flows are dependent on changes in market interest rates. The Group
deposits excess cash and borrows at variable rates. The Group’s management monitor the interest rate fluctuations on
a continuous basis and act accordingly.
At the reporting date the profile of interest-bearing financial instruments was:
Sensitivity analysis
An increase of 100 basis points in interest rates at 31 December 2022 would have decreased by the amounts shown
below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant, as well as
it assumes that financial facilities outstanding at the end of the reporting period were also outstanding for the whole
year. For a decrease of 100 basis points there would be an equal and opposite impact on the profit and loss. The
figures below are before tax.
Profit & loss
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Variable rate instruments
Overdrafts
422
337
51
3
Short-term loans
984
700
-
-
Long-term loans
6
1
-
-
Factoring advances
623
731
107
128
2,035
1,769
158
131
1.3. Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position
potentially enhances profitability but can also increase the risk of losses. The Group has procedures with the object of
minimizing such losses such as maintaining sufficient cash and other highly liquid current assets and by having available
an adequate amount of committed credit facilities.
The following tables detail the remaining contractual maturity for financial liabilities. The tables have been drawn up
based on the earliest date on which the Group/Company can be required to pay and include only principal cash flows.
The Group
The Company
2022
2021
2022
2021
US$
US$
US$
US$
Variable rate instruments
Overdrafts
42,246
33,698
5,164
342
Short-term loans
98,370
70,126
-
-
Long-term loans
553
123
-
-
Factoring advances
62,287
73,143
10,654
12,755
203,456
177,090
15,818
13,097
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
75
34. Financial risk management (continued)
The Group
31 December 2022
Carrying
amounts
Contractual
cash flows
3 months or
less
3-12 months
1-2 years
2-5 years
US$
US$
US$
US$
US$
US$
Bank loans
98,924
98,924
86,410
11,961
107
446
Bank overdrafts (Note 19)
42,246
42,246
6,451
35,795
-
-
Factoring creditors (Note
19)
62,287
62,287
60,118
2,169
-
-
Lease liabilities (Note 22)
11,023
11,023
573
1,820
2,071
6,559
Trade and other payables
585,601
585,601
575,923
9,678
-
-
Trade payables factoring
facilities (Note 14)
18,024
18,024
18,024
-
-
-
Other short and long-term
liabilities
1,122
1,122
264
-
150
708
819,227
819,227
747,763
61,423
2,328
7,713
31 December 2021
Carrying
amounts
Contractual
cash flows
3 months or
less
3-12 months
1-2 years
2-5 years
US$
US$
US$
US$
US$
US$
Bank loans
70,248
70,248
59,631
10,495
122
Bank overdrafts (Note 19)
33,698
33,698
26,143
7,555
-
-
Factoring creditors (Note
19)
73,143
73,143
73,143
-
-
-
Lease liabilities (Note 22)
6,719
6,719
512
1,225
1,653
3,329
Trade and other payables
520,197
520,197
502,332
17,865
-
-
Trade payables factoring
facilities (Note 14)
28,298
28,298
28,298
-
-
-
Other short and long-term
liabilities
1,091
1,091
299
-
150
642
733,394
733,394
690,358
37,140
1,925
3,971
The Company
31 December 2022
Carrying
amounts
Contractual
cash flows
3 months or
less
3-12 months
1-2 years
2-5 years
US$
US$
US$
US$
US$
US$
Bank overdrafts (Note 19)
5,164
5,164
5,164
-
-
-
Factoring creditors (Note 19)
10,654
10,654
10,654
-
-
-
Lease liabilities (Note 22)
5,163
5,163
182
569
666
3,746
Trade and other payables
360,244
360,244
360,244
-
-
-
Trade payables factoring
facilities
15,443
15,443
15,443
-
-
-
Other short and long-term
liabilities
256
256
256
-
-
-
396,924
396,924
391,943
569
666
3,746
31 December 2021
Carrying
amounts
Contractual
cash flows
3 months or
less
3-12 months
1-2 years
2-5 years
US$
US$
US$
US$
US$
US$
Bank overdrafts (Note 19)
342
342
342
-
-
-
Factoring creditors (Note 19)
12,755
12,755
12,755
-
-
-
Lease liabilities (Note 22)
1,072
1,072
84
263
376
349
Trade and other payables
286,466
286,466
286,466
-
-
-
Trade payables factoring
facilities
25,911
25,911
25,911
-
-
-
Other short and long-term
liabilities
129
129
129
-
-
-
326,675
326,675
325,687
263
376
349
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
76
34. Financial risk management (continued)
1.4. Currency risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates.
Currency risk arises when future commercial transactions and recognized assets and liabilities are denominated in a
currency that is not the Group’s/Company’s measurement currency.
The Group uses short-term derivative financial instruments to minimize the risk on balances and material transactions
denominated in currencies other than US Dollars, the Group’s reporting currency. As a significant portion of the Group’s
cash flow is denominated in Russian Ruble, Euro and other local currencies (i.e. the Czech Crown, the Polish Zloty, the
Hungarian Forint, etc.), the Group raises debt in such currencies in order to hedge against foreign exchange risk.
The carrying amounts of the monetary assets and monetary liabilities at the reporting date are denominated in the
following currencies:
The Group
31 December 2022
Cash at bank
and in hand
Receivables
Trade and
other
liabilities
Borrowings
US$
US$
US$
US$
US Dollar
66,049
28,873
(321,943)
(10,304)
Euro
8,442
79,840
(85,874)
(47,167)
Russian Ruble
6,626
29,532
(17,320)
(10,793)
Polish Zloty
728
6,932
(3,242)
(2,383)
Czech Koruna
2,522
8,680
(3,342)
(6,400)
Belarusian Ruble
790
5,095
(2,784)
(14,505)
Croatian Kuna
3,120
3,230
(999)
(2,485)
Romanian New Lei
483
6,173
(1,278)
(2,589)
Bulgarian Lev
218
4,095
(1,358)
(3,841)
Hungarian Forint
228
1,421
(542)
(61)
Kazakhstan Tenge
2,993
86,006
(33,197)
(70,297)
Ukrainian Hryvnia
34,761
43,181
(81,681)
(25,161)
Bosnian Mark
728
4,338
(664)
(3,441)
United Arab Emirates Dirham
4,626
19,313
(25,487)
(13,199)
Other
2,284
4,508
(6,274)
(1,853)
134,598
331,217
(585,985)
(214,479)
The Group
31 December 2021
Cash at bank
and in hand
Receivables
Trade and
other
liabilities
Borrowings
US$
US$
US$
US$
US Dollar
109,688
63,005
(251,794)
(12,077)
Euro
9,473
58,998
(90,781)
(31,182)
Russian Ruble
1,000
28,792
(31,131)
(10,267)
Polish Zloty
497
3,672
(2,529)
(1,251)
Czech Koruna
2,653
9,535
(3,613)
(8,167)
Belarusian Ruble
6,114
8,459
(10,383)
(15,765)
Croatian Kuna
3,524
2,183
(1,004)
(2,528)
Romanian New Lei
1,433
6,524
(1,349)
(3,226)
Bulgarian Lev
451
3,838
(1,310)
(1,904)
Hungarian Forint
123
1,292
(526)
(67)
Kazakhstan Tenge
1,666
61,623
(17,544)
(49,468)
Ukrainian Hryvnia
37,714
83,596
(88,355)
(36,561)
Bosnian Mark
477
3,548
(629)
(2,303)
United Arab Emirates Dirham
8,667
15,819
(17,824)
(6,471)
Other
1,138
3,195
(2,053)
(2,572)
184,618
354,079
(520,825)
(183,809)
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
77
34. Financial risk management (continued)
The Company
31 December 2022
Cash at bank
and in hand
Receivables
Trade and
other
liabilities
Borrowings
US$
US$
US$
US$
US Dollar
59,371
187,490
(357,711)
(10,304)
Euro
4,310
21,141
(1,119)
(10,677)
Czech Koruna
414
-
(586)
-
Great British Pound
231
145
(867)
-
Polish Zloty
49
-
(335)
-
Other
-
-
2
-
64,375
208,776
(360,616)
(20,981)
31 December 2021
Cash at bank
and in hand
Receivables
Trade and
other
liabilities
Borrowings
US$
US$
US$
US$
US Dollar
95,906
213,260
(263,550)
(11,702)
Euro
1,646
8,632
(20,226)
(2,425)
Czech Koruna
380
-
(1,318)
-
Great British Pound
73
54
(988)
(42)
Polish Zloty
163
-
(321)
-
Other
-
1
(467)
-
98,168
221,947
(286,870)
(14,169)
The Company is not exposed to any material foreign exchange risk, as most of its operations are conducted in US
Dollars, the Company’s reporting currency. Any exposure to foreign exchange risk is restricted to monetary assets
denominated in foreign currencies, mainly Euro, Czech Koruna and Polish Zloty, and this risk is mitigated by the
appropriate use of currency derivative contracts.
2. Fair values
The Group and the Company
Financial instruments comprise financial assets and financial liabilities. Financial assets mainly consist of bank balances,
receivables and investments. Financial liabilities mainly consist of trade payables, factoring balances, bank overdrafts
and loans. The Directors consider that the carrying amount of the Company’s/Group’s financial instruments
approximate their fair value at the reporting date. Financial assets and financial liabilities carried at fair value through
profit or loss represent foreign currency derivative contracts categorized as a Level 2 (quoted prices (unadjusted) in
active markets for identical assets or liabilities) fair value hierarchy.
3. Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximizing the return to stakeholders through optimization of debt and equity. The Group’s overall strategy remains
unchanged from 2021.
The capital structure of the Group consists of debt, which includes borrowings, cash and cash equivalents and equity
attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.
Gearing ratio
The Group’s risk management committee reviews the capital structure on a semi-annual basis. As part of this review,
the committee considers the cost of capital and the risk associated with it.
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
78
34. Financial risk management (continued)
The Group
The net gearing ratio at the year-end was as follows:
2022
2021
US$
US$
Debt (i)
203,456
177,089
Cash at bank and in hand
(134,598)
(184,618)
Net debt
68,858
(7,529)
Equity (ii)
244,180
189,464
Net debt to equity ratio
28.20%
-
(i) Debt includes short-term (factoring advances, overdrafts and short-term loans) and long-term
borrowings.
(ii) Equity includes all capital and reserves.
(i) Debt includes short-term (factoring advances, overdrafts and short-term loans) and long-term
borrowings.
(ii) Equity includes all capital and reserves.
4. Fair value estimation
The table below analyses financial instruments carried at fair value by valuation method. The different levels have been
defined as follows:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs) (level 3).
The following table presents the fair value hierarchy of the Group’s and the Company's assets as at 31 December:
The Group
The Company
2022
2021
2022
2021
Level 2
Level 2
Level 2
Level 2
US$
US$
US$
US$
Assets
Derivative financial assets
413
192
316
164
Liabilities
Derivative financial liabilities
263
299
256
129
The Company
The net gearing ratio at the year-end was as follows:
2022
2021
Balance sheet and notes
US$
US$
Debt (i)
15,818
13,097
Cash at bank and in hand
(64,375)
(98,168)
Net debt
(48,557)
(85,071)
Equity (ii)
152,236
135,576
Net debt to equity ratio
-
-
ASBISC ENTERPRISES PLC
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of US$)
79
34. Financial risk management (continued)
The fair value of financial instruments that are not traded in an active market (for example, unlisted equity securities)
is determined by using valuation techniques. These valuation techniques maximize the use of observable market data
where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair
value an instrument are observable, the instrument is included in level 2.
35. Other risks
Operational risk
Operational risk is the risk that derives from the deficiencies relating to the Group’s/Company’s information technology
and control systems as well as the risk of human error and natural disasters. The Group’s/Company’s systems are
evaluated, maintained and upgraded continuously.
Compliance risk
Compliance risk is the risk of financial loss, including fines and other penalties, which arises from non-compliance with
laws and regulations of the state. The risk is limited to a significant extent due to the supervision applied by the
Compliance Officer, as well as by the monitoring controls applied by the Group/Company.
Litigation risk
Litigation risk is the risk of financial loss, interruption of the Group’s operations or any other undesirable situation that
arises from the possibility of non-execution or violation of legal contracts and consequentially of lawsuits. The risk is
restricted through the contracts used by the Group/Company to execute its operations.
Reputation risk
The risk of loss of reputation arising from the negative publicity relating to the Group’s/Company’s operations (whether
true or false) may result in a reduction of its clientele, reduction in revenue and legal cases against the Group. The
Group/Company applies procedures to minimize this risk.
Other risks
The general economic environment may affect the Group’s/Company’s operations to a great extent. Concepts such as
inflation, unemployment, and development of the gross domestic product are directly linked to the economic course
of every country and any variation in these and the economic environment in general may create chain reactions in all
areas hence affecting the Group/Company.
36. Dividends
Our dividend policy is to pay dividends at levels consistent with our growth and development plans, while maintaining
a reasonable level of liquidity. During the year, the following dividends were declared and paid by the Company:
• A final dividend of US$ 0.10 per share for the year 2021, amounting to US$ 5,550
• An interim dividend of US$ 0.20 per share for the year 2022, amounting to US$ 11,100
During 2021, the following dividends were declared and paid by the Company:
• A final dividend of US$ 0.20 per share for the year 2020, amounting to US$ 11,100
• An interim dividend of US$ 0.20 per share for the year 2021, amounting to US$ 11,100
The Board of Directors also proposes the payment of a final dividend of US$ 0.25 per share for the year 2022,
amounting to US$ 13,875 based on improved 2022 profitability.