391200ZCN16YSPNKID892023-01-012023-12-31391200ZCN16YSPNKID892022-01-012022-12-31391200ZCN16YSPNKID892023-12-31391200ZCN16YSPNKID892022-12-31391200ZCN16YSPNKID892021-12-31ifrs-full:IssuedCapitalMember391200ZCN16YSPNKID892021-12-31ifrs-full:SharePremiumMember391200ZCN16YSPNKID892021-12-31ifrs-full:RevaluationSurplusMember391200ZCN16YSPNKID892021-12-31ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember391200ZCN16YSPNKID892021-12-31ext:InvestmentPropertyFairValueGainReserveMember391200ZCN16YSPNKID892021-12-31ifrs-full:RetainedEarningsMember391200ZCN16YSPNKID892021-12-31391200ZCN16YSPNKID892022-01-012022-12-31ifrs-full:IssuedCapitalMember391200ZCN16YSPNKID892022-01-012022-12-31ifrs-full:SharePremiumMember391200ZCN16YSPNKID892022-01-012022-12-31ifrs-full:RevaluationSurplusMember391200ZCN16YSPNKID892022-01-012022-12-31ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember391200ZCN16YSPNKID892022-01-012022-12-31ext:InvestmentPropertyFairValueGainReserveMember391200ZCN16YSPNKID892022-01-012022-12-31ifrs-full:RetainedEarningsMember391200ZCN16YSPNKID892022-12-31ifrs-full:IssuedCapitalMember391200ZCN16YSPNKID892022-12-31ifrs-full:SharePremiumMember391200ZCN16YSPNKID892022-12-31ifrs-full:RevaluationSurplusMember391200ZCN16YSPNKID892022-12-31ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember391200ZCN16YSPNKID892022-12-31ext:InvestmentPropertyFairValueGainReserveMember391200ZCN16YSPNKID892022-12-31ifrs-full:RetainedEarningsMember391200ZCN16YSPNKID892023-01-012023-12-31ifrs-full:IssuedCapitalMember391200ZCN16YSPNKID892023-01-012023-12-31ifrs-full:SharePremiumMember391200ZCN16YSPNKID892023-01-012023-12-31ifrs-full:RevaluationSurplusMember391200ZCN16YSPNKID892023-01-012023-12-31ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember391200ZCN16YSPNKID892023-01-012023-12-31ext:InvestmentPropertyFairValueGainReserveMember391200ZCN16YSPNKID892023-01-012023-12-31ifrs-full:RetainedEarningsMember391200ZCN16YSPNKID892023-12-31ifrs-full:IssuedCapitalMember391200ZCN16YSPNKID892023-12-31ifrs-full:SharePremiumMember391200ZCN16YSPNKID892023-12-31ifrs-full:RevaluationSurplusMember391200ZCN16YSPNKID892023-12-31ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember391200ZCN16YSPNKID892023-12-31ext:InvestmentPropertyFairValueGainReserveMember391200ZCN16YSPNKID892023-12-31ifrs-full:RetainedEarningsMemberiso4217:EUR
SP FINANCE P.L.C.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31st DECEMBER 2023
Company No. C- 89462
SP FINANCE P.L.C.
CONTENTS
_____________________________________________________________________________________________
PAGE
Report of the directors
1 to 5
Statement of compliance with the principles of good corporate governance
6 to 9
Statement of profit or loss and other comprehensive income
10
Statement of financial position
11-12
Statement of changes in equity
13
Statement of cashflows
14
Notes to the financial statements
15 to 58
Independent auditors’ report
59 to 66
SP FINANCE P.L.C.
REPORT OF THE DIRECTORS
_____________________________________________________________________________________________
______________________________________________________________________________________________________
1
______________________________________________________________________________________________________
2
Financial position
As at 31 December 2023 the Group’s total asset base stood at €43,257,858 (2022: €36,791,985). The Group’s current assets amounted to €3,242,917 (2022: €959,815) while current liabilities amounted to €6,556,989 (2022: €3,705,836). The Group’s non-current liabilities stood at €18,793,695 (2022: €19,660,166) which mainly consist of bond borrowings amounting to €12,000,000 and lease liabilities of €4,279,307 (2022: €4,418,892).
Business Update
The Pebbles Boutique Aparthotel in Sliema continued to benefit from excellent customer reviews as a value-for-money hotel located in a prime location on the Sliema – Gzira seafront. This ensured a high occupancy rate throughout the year at decent daily rates. Its revenue increased from €1,251,833 in 2022 to €1,454,966 in 2023 (+16%), while its profit before tax, excluding dividends received from its subsidiary acquired in 2023, increased from €104,979 in 2022 to €190,094 in 2023 (+81%).
The Pebbles Resort in St. Paul’s Bay, which during the summer months operates as a music hotel under the ‘Bora Bora Ibiza Malta’ franchise had its best year since it opened in 2019. Its revenue increased from €2,373,697 in 2022 to €3,912,192 in 2023 (+65%) while its loss before tax which in 2022 stood at €2,656,560 decreased to €411,050 in 2023 (-85%). It must be noted that in 2022 the company’s financial results were negatively impacted by one-time impairments of €1,500,000 on the carrying value of the right of use asset and property, plant and equipment. When excluding this one-time impairment, the loss in 2022 amounted to €1,156,560 compared to €411,050 in 2023 (-64%).
As stated above, in early 2023 the Group acquired a number of well-established catering outlets from related companies outside the Group and started operating them as from 1 April 2023. The newly acquired businesses contributed to the Group additional revenue and profit before tax of €5,448,205 and €422,741 respectively and served to diversify the Group’s activities beyond the tourist accommodation sector.
The catering outlets operated by the Group from 1 April 2023 performed slightly below projections mostly due to some weekends of lost business in MedAsia Playa due to bad weather. In addition, profit margins were less than forecast due to continuing inflationary pressures on inputs, mainly wages and food items.
Events after the Reporting Period
In early January 2024 the Group embarked on a project to transform the Pebbles Boutique Aparthotel in Sliema from a 54-room 3-star hotel to a 110 units / 300-bed 3-star hotel and self-catering apartments. The project is expected to be completed in the third quarter of 2025 and will permit the Group to fully exploit the business potential of this prime site on the Sliema – Gzira seafront.
Acquisition of business and intellectual property
On 1 April 2023 the Group, through its subsidiary Med Asia Operations Ltd. acquired various established catering businesses, already referred to in the 'Principal Activities' paragraph above, from commonly controlled companies outside the Group, for a consideration of €3,480,000, including goodwill calculated at €2,317,829. The balance of the consideration as yet unpaid, amounting to €2,830,000 is classified in the Statement of Financial Position as a Capitalisation Reserve and will be satisfied through the allotment of additional shares to the Company’s current shareholders.
On 1 April 2023 the Group, through its subsidiary Med Asia Branding Ltd. acquired various trademarks from commonly controlled companies outside the Group, for a consideration of €1,784,815 which is as yet unpaid. It is classified as a Capitalisation Reserve and will be satisfied through the allotment of additional shares to the Company’s current shareholders.
Key Risks – General
The Group’s business activities consist of the provision of tourist accommodation and the operation of catering establishments. Such hospitality operations are subject to external factors, many of which are common to the hospitality industry, and beyond the Group’s control, including: (i) market and economic conditions generally; (ii) susceptibility to local competition; (iii) impact of geo-political instability due to ongoing armed conflicts in Eastern Europe and the Middle East; (iv) outbreaks of pandemics that may restrict international travel; and (v) increases in operating costs.
SP FINANCE P.L.C.
REPORT OF THE DIRECTORS
_____________________________________________________________________________________________
______________________________________________________________________________________________________
3
While negative trends in any of these areas, if they materialize, would unavoidably impact the Group’s operations and business, it is considered that the Group’s decades’ long presence and experience operating in this sector renders it sufficiently resilient to overcome any challenges it may face.
Key Risks – Specific
As stated above, the Group has embarked on a multi-million-euro project to transform the current Pebbles Boutique Aparthotel in Sliema to a much larger hotel which is expected to be completed in the third quarter of 2025. The new hotel, when operational, is expected to generate significantly higher revenues than those generated by the existing hotel.
The principal risks which have been identified with this project are:
•Cost overruns. The directors consider this to be a low to medium risk in view of the fact that most works contracts are in place and also that construction works will be carried out mostly by related companies outside the Group.
•Delay in completion date. The directors consider that a significant delay in the completion date is a low risk since most construction work will be carried out by related companies outside the Group and therefore within the operational control of the ultimate shareholders.
•Change in market conditions prevalent when the hotel reopens. This is considered as a low risk by the directors in view of the current robustness of the Maltese tourism industry, the prime location in which the hotel is situated and the excellent customer reviews it has always enjoyed.
•Project financing. This project is mostly financed by the Group’s cash generation and by related companies outside the Group. Discussions with a local bank to secure financing for the remaining portion are in a very advanced stage and it is envisaged that a sanction letter will be issued in the coming months. The directors consider the risk that the Group has insufficient financing to complete the project to be low risk.
Statement pursuant to Capital Markets Rule 5.62
Rule 5.62 of the Capital Markets Rules requires the directors to make a statement that the business is a going concern with supporting assumptions or qualifications as necessary.
In preparing this statement the directors considered the following factors:
In general, Malta’s tourism sector in 2023 and the first few months of 2024 has shown signs of robustness and steady growth. Industry experts and government sources predict that tourist arrivals in 2024 will surpass the record numbers achieved in 2023. As a Group that operates in the hospitality industry (tourist accommodation and catering establishments) this augurs well that in the foreseeable future the Group will be operating in a robust and flourishing tourism industry.
More specifically, the Group’s financial position improved significantly in 2023 compared to 2022 and prior years. This was primarily a consequence of the newly acquired catering businesses previously operated by related companies outside the Group. In addition, the music hotel concept under which the Pebbles Resort has operated during the summer months since 2022 is bearing fruit, enabling the company to provide a unique experience that distinguishes it from other hotels, thus securing higher occupancy levels at better rates compared to hotels in the surrounding area.
The directors also considered realistic financial projections presented by management which indicate that the Group is likely to generate sufficient financial resources through its operations as to permit it to continue in operational existence for the foreseeable future.
Therefore, in terms of Capital Markets Rule 5.62, the Directors hereby state that these financial statements have been prepared on the going concern basis.
______________________________________________________________________________________________________
4
Loans between subsidiary companies
The proceeds from the bond issue of the 3 May 2019 were invested as €12,000,000 4.1% Cumulative Preference shares in its subsidiary SP Investments Limited. In turn, these proceeds were invested by SP Investments Limited in its subsidiaries, which are the companies operating the Group’s hotels, partly as Ordinary share capital and partly as loans.
As per section B5 of the Summary Note forming part of the Prospectus of the above-mentioned bond issue, the loans invested by SP Investments Limited in its subsidiaries were interest-free.
As from 1 January 2021, it was deemed beneficial to the Group that SP Investments Limited start charging interest on the loans to its subsidiaries at the rate of 8% per annum. Following a share reduction of €2,500,000 by Sea Pebbles Limited which came into effect on the 30 December 2022, and the conversion of the €2,500,000 to a loan from SP Investments Limited to its subsidiary Sea Pebbles Limited, the interest rate charged by SP Investments Limited to Sea Pebbles Limited was reduced to 6.5% per annum starting from 1 January 2023, The Group and the Company results are not negatively impacted by these changes.
Results, Dividends and Reserves
The results for the year are set in the Statement of Profit and Loss and Other Comprehensive Income on page 10.
The Board does not propose the payment of a dividend.
The Group’s retained earnings as at 31 December 2023 amounted to negative €4,913,848 (2022: negative €4,780,225) while the Company’s retained earnings on the same date amounted to €172,992 (2022: €169,919).
Statement of Directors’ Responsibilities for the Financial Statements
The Companies Act (Chapter 386 of the Laws of Malta) requires the directors of SP Finance p.l.c. to prepare annual financial statements for each financial year which give a true and fair view of the state of affairs of the Group and the Company as at the end of the financial year and of the profit or loss for the year in accordance with the requirements of International Financial Reporting Standards as adopted by the European Union.
In preparing such financial statements, the Directors are required to:
•Adopt the going concern basis unless it is inappropriate to presume that the Group and the Company will continue in business;
•Select suitable accounting policies and apply them consistently from one accounting year to another;
•Make judgements and estimates that are reasonable and prudent; and
•Account for income and charges relating to the accounting year on the accruals basis.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time, the financial position of the Group and the Company and enable them to ensure that the financial statements have been properly prepared in accordance with the provisions of the Companies Act. The directors are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud, errors and other irregularities.
The financial statements of SP Finance p.l.c. and the Group for the year ended on 31 December 2023 are included in the Annual Report 2023, which is available on the Company’s website.
SP FINANCE P.L.C.
REPORT OF THE DIRECTORS
_____________________________________________________________________________________________
______________________________________________________________________________________________________
5
Statement of Responsibility pursuant to the Capital Markets Rule 5.68
The directors confirm that, to the best of their knowledge:
•The financial statements give a true and fair view of the financial position of the Company and the Group as at 31 December 2023, and of the financial performance and the cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the European Union; and
•The Annual Report includes a fair review of the development and performance of the business and the position of the Company and the Group, together with a description of the principal risks and uncertainties that the Company and the Group face.
Statement pursuant to Capital Markets Rule 5.70.1
Pebbles Resort Limited rented the bars and restaurants located within the Pebbles Resort to Sea Pebbles Leisure Limited (C91291), a company outside the Group whose directors are Mr. Joseph Casha and Mrs. Josephine Casha.
As from October 2022 the latter company has been contracted to provide the meals and breakfasts consumed by guests of Pebbles Resort, which service was, between May 2021 and September 2022, being provided by a third party. This agreement was terminated on 31 March 2023 since the bars and restaurants located within the Pebbles Resort were operated by Med Asia Operations Limited (a subsidiary within the Group) as from 1 April 2023.
Sea Pebbles Limited rented a restaurant located in Sliema to Med Asia Limited (C-50148), a company outside the Group in which Mr. Joseph Casha and Mrs. Josephine Casha are directors. The rental agreement was entered into in 2011. This agreement was terminated on 31 March 2023 since restaurant was operated by Med Asia Operations Limited (a subsidiary within the Group) as from 1 April 2023.
Auditors
VCA Certified Public Accountants have intimated their willingness to continue in office. A resolution for their reappointment will be proposed at the Annual General Meeting.
Signed on behalf of the Board of Directors on 29 April 2024 by Mr. Joseph Casha (Director) and Mrs. Josephine Casha (Director) as per the Directors’ Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Report and Financial Statement
SP FINANCE P.L.C.
STATEMENT OF COMPLIANCE WITH PRINCIPLES OF GOOD CORPORATE GOVERNANCE
_____________________________________________________________________________________________
______________________________________________________________________________________________________
6
Introduction
Pursuant to the Capital Markets Rules as issued by the Malta Financial Services Authority, S.P. Finance p.l.c. (the ‘company’ or the ‘Issuer’) is hereby reporting on the extent of its adoption of the Code of Principles of Good Corporate Governance (the ‘Principles’) contained in Appendix 5.1 of the Capital Markets Rules as well as the measures adopted to ensure compliance with these same Principles.
Since its inception, the Company’s principal activity was to raise funds from the capital market to finance the operations of other group companies forming part of the Sea Pebbles Group (the ‘Group’).
The Board of Directors acknowledges that the Code does not dictate or prescribe mandatory rules but recommends principles of good practice. Nonetheless, the Board strongly believes that the Principles are in the best interest of the shareholders and other stakeholders since they ensure that the Directors and Management of the Company adhere to internationally recognised high standards of Corporate Governance.
The Company currently has a corporate decision-making and supervisory structure that is tailored to suit the Company’s requirements and designed to ensure the existence of adequate checks and balances within the Company, whilst retaining an element of flexibility, particularly in view of the size of the Company and the nature of its business. The Company adheres to the Principles, except for those instances where there exist particular circumstances that warrant non-adherence thereto, or at least postponement for the time being.
Additionally, the Board recognises that, by virtue of Capital Markets Rule 5.101, the Company is exempt from making available the information required in terms of Capital Markets Rules 5.97.1 to 5.97.3; 5.97.6 and 5.97.8.
Roles and Responsibilities
The Board acknowledges its statutory mandate to conduct the administration and management of the Company. The Board, in fulfilling its mandate and discharging its duties assumes responsibility for:
1.the Company’s strategy and decisions with respect to the issue, servicing and redemption of its Bonds;
2.monitoring that its operations are in conformity with its commitments towards bondholders, shareholders and all relevant laws and regulations; and
3.ensuring that the Company installs and operates effective internal control and management systems and that it communicates effectively with the market.
The Board of Directors
The Board of Directors of the Company is responsible for the overall long-term direction of the Company, in particular in being actively involved in overseeing the systems of control and financial reporting and that the Company communicates effectively with the market. The Company has in place systems whereby the directors obtain timely information not only at meetings of the Board but at regular intervals or when the need arises.
Directors are appointed during the Company’s Annual General Meeting for periods of one year, at the end of which term they may stand again for re-election. The Articles of Association of the Company clearly set out the procedures to be followed in the appointment of directors.
Apart from setting the strategy and direction of the Company, the Board retains direct responsibility for approving and monitoring:
-that the proceeds of the Bonds are applied for the purposes for which they were sanctioned as specified in the prospectus of the Bonds issued;
-the proper utilisation of the resources of the Company; and
-the annual report and financial statements, the relevant public announcements and the Company’s compliance with its continuing obligations under the Capital Markets Rules.
SP FINANCE P.L.C.
STATEMENT OF COMPLIANCE WITH PRINCIPLES OF GOOD CORPORATE GOVERNANCE
_____________________________________________________________________________________________
______________________________________________________________________________________________________
7
Complement of the Board
The Board of Directors meets regularly, with a minimum of four times annually, and is currently composed of five Members, three of which are completely independent from the Company or any other related companies and therefore free of any significant business relationship, family or other relationships with the Issuer, its controlling shareholders or the management, that creates a conflict of interest such as to impair their judgement.
The activities of the Board are exercised in a manner designed to ensure that it can effectively supervise the operations of the Company and protect the interests of bondholders and the shareholders. During the current financial period, meetings of the Board were held as frequently as considered necessary.
The Board members are notified of forthcoming meetings by the Company secretary (Dr. Andrea Micallef) with the issue of an agenda and necessary supporting documentation which are then discussed during the Board meetings.
During the financial year under review, the Board met formally five times and was always attended by more than 75% of the Officers of the Company.
Dr. Alex Perici Calascione, Mr. Mark Anthony Grech and Dr. Reuben Debono are the independent non-executive directors of the Company.
Executive Directors
Mrs. Josephine Casha
Mr. Joseph Casha
Independent, Non-Executive Directors
Dr. Alex Perici Calascione
Dr. Reuben Debono
Mr. Mark Anthony Grech
The remuneration of the Board is reviewed periodically by the shareholders of the Company. The Company ensures that it provides Directors with relevant information to enable them to effectively contribute to Board decisions.
The Directors are fully aware of their duties and obligations and should a conflict of interest in decision making ever to arise, the current internal policy of the Company is such as to ensure that the particular Director refrains from participating in such decisions. The Board member concerned shall not take part in the assessment by the Board as to whether a conflict of interest exists. A Director shall not vote in respect of any contract, arrangement, transaction or proposal in respect of which he has a material interest.
Risk Management and Internal Control
The Company’s system of internal controls is designed to manage all the risks in the most appropriate manner. However, such controls cannot provide an absolute elimination of all business risks or losses. Therefore, the Board, inter alia, reviews the effectiveness of the Company’s system of internal controls in the following manner:
-Reviewing the Company’s strategy on an on-going basis as well as setting the appropriate business objectives in order to enhance value for all stakeholders;
-Implementing an appropriate organisational structure for planning, executing, controlling and monitoring business operations in order to achieve company objectives;
-Identifying and ensuring that significant risks are managed satisfactorily; and
-Company policies are being observed.
SP FINANCE P.L.C.
STATEMENT OF COMPLIANCE WITH PRINCIPLES OF GOOD CORPORATE GOVERNANCE
_____________________________________________________________________________________________
______________________________________________________________________________________________________
8
Audit Committee
The Board of Directors of the Company has established an Audit Committee in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority. The Audit Committee’s primary objective is to assist the Board in fulfilling its responsibilities relating to risk, control, and governance, as well as to review the financial reporting process and the process for monitoring compliance with applicable laws and regulations.
The Audit Committee is a sub-committee of the Board constituted to fulfil an overseeing role in connection with the quality and integrity of the Company’s financial statements. In performing its duties, the Audit Committee maintains effective working relationships with the Board of Directors, management, and the external auditors of the Company. The Committee also has the function of scrutinising and evaluating any proposed transaction to be entered into by the Company and a related party, to ensure that the execution of any such transaction is at arm’s length and on a commercial basis ultimately in the interest of the Company.
The Board has set formal Terms of Reference of the Audit Committee that establish its composition, role, and scope. The Board reserves the right to amend these Terms of Reference from time to time. The Terms of Reference of the Audit Committee are modelled on the principles set out in the Capital Markets Rules 5.117 – 5.134A.
The Audit Committee assists the Board in fulfilling its supervisory and monitoring responsibility by reviewing the company financial statements and disclosures, monitoring the system of internal control established by management as well as the audit processes. The Audit Committee as stated above is a sub-committee of the Board and is directly responsible and accountable to the Board.
In terms of the Maltese Companies Act (Chap. 386) and the Malta Financial Services Authority Capital Markets Rules, the financial statements of SP Finance plc are subject to annual audit by its external auditors. Moreover, the Audit Committee has direct access to the external auditors of the Company, who attend the meeting at which the Company’s financial statements are approved.
The Audit Committee which met four times during the year under review is currently composed of the following individuals:
Mr. Mark Anthony Grech (Chairman)
Dr. Alex Perici Calascione
Dr. Reuben Debono
This current complement addresses the requirement established by the Capital Markets Rules that the Audit Committee is composed of non-executive directors, the majority of which being independent.
The Board considers Mr. Mark Anthony Grech to be competent in accounting and auditing matters in terms of the Capital Markets Rules. Mr Mark Anthony Grech is considered as an independent director since he is free of any significant business, family or other relationship with the Company, its controlling shareholders or the management of either, that could create a conflict of interest such as to impair his judgement. Furthermore, the Board considers that the Audit Committee, as a whole, to have relevant competence in the sector the company is operating.
The Audit Committee was formally set up on the 6 November 2019. Communication with and between the Company Secretary, top level management and the Committee is ongoing and considerations that required the Committee’s attention were acted upon between meetings and decided by the Members (where necessary) through electronic circulation and correspondence.
Relations with the market
The market is kept up to date with all relevant information, and the Company regularly publishes such information on its website to ensure consistent relations with the market.
SP FINANCE P.L.C.
STATEMENT OF COMPLIANCE WITH PRINCIPLES OF GOOD CORPORATE GOVERNANCE
_____________________________________________________________________________________________
______________________________________________________________________________________________________
9
Committees
The directors believe that, due to the Company’s size and operation, the remuneration, evaluation and nominations committees that are suggested by the Code are not required and that the function of these can effectively be undertaken by the Board itself. However, the Board is tasked to review on an annual basis, the remuneration paid to the directors and to carry out an evaluation of their performance and that of the Audit Committee. The shareholders approve the remuneration paid to the directors at the annual general meeting of the Company.
Remuneration Statement
Pursuant to the Company’s Memorandum and Articles of Association, the maximum annual aggregate emoluments that may be paid to the directors is determined by the Company further to a General Meeting during which the proposed aggregate emoluments or an increase in the maximum limit of such aggregate emoluments shall be proposed. Furthermore, the remuneration of directors is a fixed amount per annum and does not include any variable component relating to profit sharing, share options or pension benefits. During the year under review, the directors received emoluments amounting in total to €24,000.
Conclusion
The Board considers that, to the extent otherwise disclosed herein, the Company was generally in compliance with the Principles throughout the period under review as befits a company of its size and nature.
Signed on behalf of the Board of Directors on 29 April 2024 by Mr. Joseph Casha (Director) and Mrs. Josephine Casha (Director) as per the Directors’ Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Report and Financial Statements.
SP FINANCE P.L.C.
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
_____________________________________________________________________________________________
______________________________________________________________________________________________________
10
GroupGroupCompanyCompany
2023202220232022
Notes€€€€
Revenue410,521,3053,625,530492,000575,500
Costs
Cost of sales7(7,625,393)
(2,468,775)
(33,938)(34,313)
Gross profit2,895,9121,156,755458,062541,187
Administrative expenses7(403,436)
(276,304)
(123,334)(93,293)
Other operating income5146,963143,759150,000150,000
(Loss)/ Gain on sale of property, plant & equipment11(618,810)182,000--
Earnings before interest, tax and depreciation2,020,6291,206,210484,728597,894
Depreciation(1,486,455)(1,469,990)--
Operating profit/(loss)534,174
(263,780)
484,728597,894
Finance costs6(938,185)(859,109)(480,000)(480,000)
Impairment of non-financial instruments9-(1,500,000)--
Write off of amounts receivable(22,223)
(Loss)/Profit before taxation(426,234)
(2,622,889)
4,728117,894
Tax credit/(expense)10292,61169,986(1,655)(6,134)
(Loss)/Profit for the year(133,623)
(2,552,903)
3,073111,760
Total comprehensive (loss)/ profit for the year(133,623)
(2,552,903)
3,073111,760
(Loss)/Profit attributable to:
Equity holders of the Company(133,623)
(2,552,903)
3,073111,760
SP FINANCE P.L.C.
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
_____________________________________________________________________________________________
______________________________________________________________________________________________________
11