Company Registration Number: C 81622
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements
31 December 2022
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
Pages
Directors’ report 1 - 5
Corporate Governance - Statement of Compliance 6 - 9
Statement of financial position 10
Statement of comprehensive income 11
Statement of changes in equity 12
Statement of cash flows 13
Notes to the financial statements 14 - 29
Independent auditor’s report
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
1
Directors’ report
The directors present their report and the audited financial statements for the year ended 31 December
2022.
Principal activity
Virtu Finance p.l.c. (the company) is a public liability company and is a wholly owned subsidiary of Virtu
Holdings Limited. Its principal activity is to raise financial resources from capital markets to finance
operations and capital projects of the Virtu Group of companies.
Review of the business
During the year under review, the company registered a profit before tax amounting to 4,709 (2021:
10,254). After allowing for taxation, the profit for the year amounted to 3,061 (2021: €6,665).
Financial performance
Revenue amounting to 1,098,200 (2021: 1,098,200) is generated from a facility fee and interest charged
on loans advanced to Virtu Maritime Limited. Financial costs comprise interest payable on the outstanding
bond issue and amortisation of the issue costs thereof amounting to 995,635 (2021: 993,376).
Administrative expenses mainly comprise directors’ emoluments amounting to 45,000 (2021: 45,000)
and legal and professional fees amounting to43,953 (2021: 38,803).
The directors do not expect any significant changes in the company’s activities in the short-term period and
expect that the company will continue to register a surplus based on projections for the foreseeable future.
Financial position
The company’s statement of financial position is in the main made up of the 3.75% unsecured bonds in
issue of €25 million and a corresponding loan amounting to €24.4 million advanced to Virtu Maritime Limited,
the guarantor of this bond. The loan receivable and the bond issued during 2017 are classified in Virtu
Finance p.l.c.’s statement of financial position under non-current assets and non-current liabilities
respectively as at 31 December 2022 and 2021. Virtu Finance p.l.c.s equity amounted to 530,156
(2021: 527,095).
Guarantor’s performance for 2022 and outlook for 2023
Virtu Maritime Limited (the Guarantor) is the holding company for the subsidiary companies forming part of
the Virtu Maritime Group (the “Group”) and does not itself carry on any trading activities. As such, the
principal activities and markets in which the Virtu Maritime Limited Group operates correspond to the
principal activities and markets of the subsidiary group companies.
During the year under review, these activities have consisted of a fast ferry service between Malta and Sicily
as well as the fast ferry service between Valletta and Mgarr, Gozo which was introduced during FY 2021.
The HSC Maria Dolores charter-hire activity between Morocco and Spain recommenced operations at the
end of April 2022, following a close to two-year suspension due to COVID-19 related regulations. Following
a scheduled major overhaul to her four engines at the end of 2021, and in order to cope with the sharp
increase experienced in passenger and vehicular demand as Covid restrictions were lifted, the HSC Jean
de la Valette was once again deployed as a second vessel on the Malta - Pozzallo route for much of the
year under review.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
2
Directors’ report - continued
Guarantor’s performance for 2022 and outlook for 2023 - continued
The consolidated financial statements for financial year ended 31 December 2022 (FY 2022) of the Virtu
Maritime Limited Group, the guarantor of the bonds issued by Virtu Finance p.l.c., show a net asset position
of €81.1 million (2021: €80.3 million) for the group and €69.8 million (2021: €69.8 million) for the company
as at 31 December 2022, mainly arising from the investment in subsidiaries forming part of the Virtu
Maritime Group amounting to €49.6 million (2021: 49.6 million). The consolidated loss before taxation of
the group for the year ended 31 December 2022 amounted to €0.79 million (2021: loss 6.4 million), whilst
cash generated from operations for the year amounted to 2.0 million (2021: 6.3 million). These results
are much in line with those forecast in the Financial Analysis Summary (FAS) that was published on 23
June 2022. For the reasons explained below, the significant increase in Revenues (€41.9 million vs €37.4
million included in the FAS) arose from higher ferry operation incomes but were absorbed by higher fuel
costs.
Demand for the Malta/Sicily high speed ferry services (both passenger and vehicular) recovered strongly
over FY 2022 as Covid related restrictions were lifted; passenger numbers for the year exceeded pre-
pandemic levels as did vehicular traffic across all categories (private cars, trailers and trucks/vans).
However, the benefits of higher revenues from this increased demand was countered by significantly
elevated operating costs arising from yet another unforeseen event the war in Ukraine. Fuel costs soared
as a result of the imposition of sanctions and restrictions on exports. Volatility in the oil markets was extreme
as supply chains were disrupted and security of supply became uncertain.
Part of these increased fuel (bunker) costs were absorbed by the fuel surcharge mechanism that was in
place and a modest bunker rebate scheme that was authorised by the EU. However, at the height of the
volatile conditions in the summer of 2022, bunker prices reached levels that could not be passed on to
customers and operational losses were incurred in keeping the service going. Over the last quarter of 2022
and into 2023 bunker prices, although still elevated by historical standards, have moderated and security
of supply concerns have eased somewhat as markets have adjusted to the reality of the situation in Ukraine.
The successful rechartering of the HSC Maria Dolores for 8 months of 2022 improved revenues for the
year. The Gozo route remained challenging during FY 2022. Although passenger numbers improved on the
back of increased tourist arrivals, operating costs were hit hard by the higher bunker costs referred to above.
Continuing overcapacity on the route remained problematic rendering the service uneconomic. Remedial
action has since been taken (fully effective FY 2023) with the public service nature of a fast, reliable and
frequent service between Valletta and Mgarr, Gozo being acknowledged. An EU approved Public Service
Obligation (PSO) agreement is currently being concluded in negotiation with the Ministry for Transport,
Infrastructure and Capital Projects. A new vessel (the Gozo Express) that is more suitable to the route in
question has been chartered from a related company and will be operational throughout 2023.
Outlook for 2023
The directors do not expect any significant changes in Virtu Finance p.l.c.’s activities in the short-term period
and are confident that the company will be able to honour its obligations as and when they fall due. Based
on projections for Virtu Finance p.l.c. that have been prepared, the company is expected to register a surplus
for the foreseeable future.
This expectation takes into account a detailed assessment reviewed by the directors relating to the
operations of the guarantor group. The Virtu Maritime Group’s operations for financial year 2023 (FY 2023)
are expected to benefit from the strong recovery in the tourism sector and the economy in general. The
Ukraine war will continue to bring uncertainty and volatility to the oil-related markets. However, markets
have adjusted to the reality of supply constraints and prices, though remaining elevated, are well below
peak 2022 levels. Security of supply has also improved.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
3
Directors’ report - continued
Outlook for 2023 - continued
Therefore, the expectation is that with the ongoing recovery in the tourism sector, strong freight related
demand, moderating volatility in the fuel markets, the conclusion of a PSO agreement relating to Gozo
operations, and a full year of the HSC Maria Dolores charter hire agreement in place, that FY 2023 should
see a return to more normalised levels of profitability and cash generation for the guarantor group. Forecasts
prepared by management show a return to profitability and resumed cash generation that should allow for
debt reduction to take place over the course of the year. These projections indicate that the Group will be
able to honour its obligations as and when they fall due.
Accordingly, the directors believe that the going concern assumption for the preparation of the financial
statements is appropriate and do not envisage any material uncertainty in this regard. Reference should
also be made to Note 1.1 to the financial statements.
Financial risk management
The company’s activities expose it to a variety of financial risks, including credit risk and liquidity risk.
Reference should be made to Note 2 to these financial statements for a detailed review of how the company
addresses such risks.
Results and dividends
The statement of comprehensive income is set out on page 11. The directors do not recommend the
payment of a dividend. The directors have proposed that the balance of retained earnings amounting to
30,156 (2021: €27,095) be carried forward to the next financial year.
Directors
The directors of the company who held office during the year were:
Roderick Chalmers - Non-Executive, Independent Chairman
Kevin Valenzia - Non-Executive, Independent Director
Matthew Portelli - Executive Director
Stephanie Attard Montalto - Executive Director
Stefan Bonello Ghio - Non-Executive Director
The Board meets on a regular basis to discuss financial performance, financial position and other matters.
Statement of directors’ responsibilities for the financial statements
The directors are required by the Maltese Companies Act (Cap. 386) to prepare financial statements which
give a true and fair view of the state of affairs of the company as at the end of each reporting period and of
the profit or loss for that period.
In preparing the financial statements, the directors are responsible for:
ensuring that the financial statements have been drawn up in accordance with International Financial
Reporting Standards as adopted by the EU;
selecting and applying appropriate accounting policies;
making accounting estimates that are reasonable in the circumstances;
ensuring that the financial statements are prepared on the going concern basis unless it is
inappropriate to presume that the company will continue in business as a going concern.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
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Directors’ report - continued
Statement of directors’ responsibilities for the financial statements - continued
The directors are also responsible for designing, implementing and maintaining internal control relevant to
the preparation and the fair presentation of the financial statements that are free from material
misstatement, whether due to fraud or error, and that comply with the Maltese Companies Act (Cap. 386).
They are also responsible for safeguarding the assets of the company and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
The financial statements of Virtu Finance p.l.c. for the year ended 31 December 2022 may be made
available on the company’s website. The directors are responsible for the maintenance and integrity of the
Annual Financial Report on the website in view of their responsibility for the controls over, and the security
of, the website. Access to information published on the company’s website is available in other countries
and jurisdictions, where legislation governing the preparation and dissemination of financial statements may
differ from requirements or practice in Malta.
Auditors
PricewaterhouseCoopers have indicated their willingness to continue in office and a resolution for their
re-appointment will be proposed at the Annual General Meeting.
Disclosure in terms of the Capital Markets Rules
Going concern statement pursuant to Capital Markets Rule 5.62
After making enquiries and having taken into consideration the future plans of the company (Note 1.1), the
directors have reasonable expectation that the company has adequate resources to continue in operational
existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in the
preparation of the financial statements.
Principal risks and uncertainties faced by the company
The company’s main objective, as a finance company for the Virtu Maritime Group of companies, is to raise
funds, mainly from the capital markets, to finance the operations and capital projects of the Virtu Maritime
Group. In this context, the company’s ability to recover loans issued to its fellow subsidiary is dependent on
the performance of the companies within the Virtu Maritime Group to which amounts have been advanced
by the company. Further details of the performance of the guarantor group are provided in the review of the
guarantor’s performance for FY 2022 and the outlook for FY 2023 set out above.
Within this context, the directors have evaluated the risks faced by the various companies to which funds
have been advanced and continue to monitor closely the impact of events as they take place in the local
and global economy, and how these would affect the ability of the various companies within the group to
honour their financial commitments. On the basis of this analysis, the directors are of the view that all
amounts receivable by the company are fully recoverable.
In case of default by group companies to repay loans to Virtu Maritime Limited, Virtu Maritime Limited
guarantees to pay all amounts of principal and interest due by the issuer to the bondholders which remains
unpaid by the issuer.
A detailed review of the risk management policies employed by the company is included in Note 2 of these
financial statements.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
5
Directors’ report - continued
Disclosure in terms of the Capital Markets Rules - continued
Pursuant to Capital Markets Rule 5.64
Appointment and Replacement of Directors
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.
Board Member Powers
The powers of the Board members are contained in Articles 54-69 of the company’s Articles of Association.
No disclosures are being made pursuant to Capital Markets Rules 5.64.3, 5.64.4, 5.64.5, 5.64.6, 5.64.7 and
5.64.10 as these are not applicable to the company.
Contracts with Board Members and Employees
The company has no contract with any of its Board members that include a severance payment clause.
The company had no employees during the year ended 31 December 2022 and 2021 and non-executive
directors were paid €45,000 (2021: €45,000) for services rendered during the year. Each director received
an annual remuneration of 15,000 (2021: 15,000). The directors receive no further monetary and non-
monetary benefits from the company.
Pursuant to Capital Markets Rule 5.70.1
In the normal course of the company’s business, during 2017 the company advanced by way of loan, an
amount of €24,400,000 to Virtu Maritime Limited, the parent company of the Virtu Maritime Group, the
guarantor of the bond in issue by the company. Details of such contract is set out in note 4 to these financial
statements. No further advances were made to group entities during 2022 and 2021.
Pursuant to Capital Markets Rule 5.68
Statement by the Directors on the Financial Statements and Other Information included in the
Annual Financial Report
The directors declare that to the best of their knowledge, the financial statements included in the Annual
Financial Report are prepared in accordance with the requirements of International Financial Reporting
Standards as adopted by the EU and give a true and fair view of the assets, liabilities, financial position and
profit of the company and that this report includes a fair review of the development and performance of the
business and position of the company, together with a description of the principal risks and uncertainties
that it faces.
Signed on behalf of the Board of Directors on 28 April 2023 by Roderick Chalmers (Non-Executive,
Independent Chairman) and Stephanie Attard Montalto (Executive Director) as per the Directors'
Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Financial Report.
Registered office:
Virtu
Ta’ Xbiex Terrace,
Ta’ Xbiex
XBX 1034
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
6
Corporate Governance - Statement of Compliance
Introduction
The Capital Markets Rules issued by the Malta Financial Services Authority, require listed companies to
observe The Code of Principles of Good Corporate Governance (the “Code”). Although the adoption of the
Code is not obligatory, Listed Companies are required to include, in their Annual Financial Report, a
Directors’ Statement of Compliance which deals with the extent to which the company has adopted the
Code of Principles of Good Corporate Governance and the effective measures that the company has taken
to ensure compliance with the Code, accompanied by a report of the auditors thereon.
Compliance
Since its incorporation, the company’s principal activity was to raise funds mainly from the capital market to
finance the operations and capital projects of the Virtu Maritime Group.
In deciding on the most appropriate manner in which to implement the Principles, the Board of Virtu Finance
p.l.c. (the “Board”) has taken cognisance of its size, which inevitably impacts on the structures required to
implement the Principles without diluting the effectiveness thereof. The company does not have any
employees. Accordingly, some of the provisions of the Code are not applicable whilst others are applicable
to a limited extent.
Roles and responsibilities
The Board of Directors is responsible for devising a strategy, setting policies and the management of the
company. It is also responsible for reviewing internal control procedures, financial performance and
business risks facing the company. The Board is also responsible for decisions relating to the redemption
of the Bond and for monitoring that its operations are in conformity with the Prospectus and all relevant
rules and regulations.
Throughout the year under review, the Board regularly reviewed management performance. The company
has in place systems whereby the directors obtain timely information from the Virtu Maritime Group of
companies Chairman, not only at meetings of the Board but at regular intervals or when the need arises.
Complement of the Board of Directors
The Board is composed of two executive and three non-executive directors, as listed below.
Executive Directors
Matthew Portelli (appointed on incorporation)
Stephanie Attard Montalto (appointed on incorporation)
Non-Executive Directors
Roderick Chalmers (appointed on incorporation)
Stefan Bonello Ghio (appointed on incorporation)
Kevin Valenzia (appointed on 28 December 2021)
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Annual Financial Report and Financial Statements - 31 December 2022
7
Corporate Governance - Statement of Compliance - continued
Complement of the Board of Directors - continued
Kevin Valenzia, Stefan Bonello Ghio and Roderick Chalmers hold non-executive positions with Virtu
Maritime Limited, being a subsidiary of Virtu Holdings Limited and the guarantor of Virtu Finance p.l.c..
Matthew Portelli and Stephanie Attard Montalto are executive directors on Virtu Holdings Limited and on
other subsidiary companies of Virtu Holdings Limited. For the purpose of the provisions of the Code, the
Board considers , Kevin Valenzia and Roderick Chalmers as independent.
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 for the appointment of directors.
Internal Control
The Board is responsible for the company’s system of internal controls and for reviewing its effectiveness.
Such a system is designed to achieve business objectives and to manage rather than to eliminate the risk
of failure to achieve business objectives and can only provide reasonable assurance against material error,
losses or fraud.
Systems and procedures are in place for the company to control, report, monitor and assess risks and their
financial implications, and to take timely corrective actions where necessary. Regular financial budgets and
strategic plans are prepared, and performance against these plans is actively monitored and reported to
the directors on a regular basis.
The approval of credit to customers is made by the Group Financial Controller, in strict adherence to a
Board-approved limit. Proposals falling outside the limit are referred, together with the supporting
documentation and the Financial Controller’s recommendations, to the Board. The Board also approves,
after review and recommendation by the Audit Committee, the transfer of funds and other amounts payable
to companies within the same group and ensures that these are subject to terms and conditions which are
on an arm’s length basis.
Directors’ Attendance at Board Meetings
The Board believes that it has systems in place to fully comply with the principles of the Code. Directors
meet regularly, mainly to review the financial performance of the company and to review internal control
processes. Board members are notified of forthcoming meetings by the company Secretary with the issue
of an agenda and supporting Board papers, which are circulated well in advance of the meeting. All the
directors have access to independent professional advice at the company’s expense should they so require.
The Board met formally five times during the year under review. The number of board meetings attended
by directors for the year ended 31 December 2022 is as follows:
Members Attended
Matthew Portelli 5
Stephanie Attard Montalto 5
Roderick Chalmers 5
Stefan Bonello Ghio 5
Kevin Valenzia 5
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Annual Financial Report and Financial Statements - 31 December 2022
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Corporate Governance - Statement of Compliance - continued
Committees
The directors believe that, due to the company’s size and operation, the remuneration, evaluation and
nominations committees that are suggested in the Code are not required, and that the function of these can
efficiently be undertaken by the Board itself. However, the Board on an annual basis undertakes a review
of the remuneration paid to the directors and carries 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.
Audit Committee
The Board established an Audit Committee (the “Committee”) and has formally set out Terms of Reference
as outlined in the Principles laid out in the Capital Markets Rules. The purpose of the Committee is to
protect the interest of the company’s shareholders, bond holders, and assist the directors in conducting
their role effectively. The Audit Committee also monitors the financial reporting process, the effectiveness
of internal control and the audit of the annual financial statements. Additionally, it is responsible for
monitoring the performance of the entities borrowing funds from the company, to ensure that budgets are
achieved and if not, that corrective action is taken as necessary. It also scrutinises and supervises related
party transactions for materiality and ensures that these are carried out at arm’s length basis. By a letter
dated 30
th
October 2017, the Listing Authority considered the Terms of Reference as having sufficient
safeguards to ensure the independence of the Audit Committee.
The Members of the Audit Committee are:
Roderick Chalmers - Chairman of the Audit Committee, Non-Executive, Independent Director
Kevin Valenzia - Non-Executive, Independent Director (appointed on 28 December 2021)
Stefan Bonello Ghio - Non-Executive Director
Mr Roderick Chalmers, Mr Kevin Valenzia and Mr Stefan Bonello Ghio are Certified Public Accountants.
The Committee met four times during the year ended 31 December 2022.
Remuneration Statement
In terms of the company’s Memorandum and Articles of Association, it is the shareholders of the company
in the General Meeting who determine the maximum annual aggregate remuneration of the directors. The
aggregate amount approved and paid to directors for this purpose during the year was €45,000.
None of the directors is employed or has a service contract with the company.
No part of the remuneration paid to the directors is performance based. None of the directors, in their
capacity as a Director of the company, is entitled to profit sharing, share options or pension benefits.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
9
Corporate Governance - Statement of Compliance - continued
Relations with bondholders and the market
The company publishes interim and annual financial statements and, when required, company
announcements. The Board feels these provide the market with adequate information about its activities.
Conflicts of Interest
On joining the Board and regularly thereafter, directors and officers of the company are informed and
reminded of their obligations on dealing in securities of the company within the parameters of law and
Capital Markets Rules. The company has also set reporting procedures in line with the Capital Markets
Rules, Code of Principles, and internal code of dealing.
Approved by the Board of Directors on 28 April 2023.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
10
Statement of financial position
As at 31 December
2022
2021
Notes
ASSETS
Non-current assets
Loans and receivables
4
24,400,000
24,400,000
Deferred tax asset
5
47,263
-
Total non-current assets
24,447,263
24,400,000
Current assets
Trade and other receivables
6
898,942
891,495
Cash and cash equivalents
7
88,632
7,905
Total current assets
987,574
899,400
Total assets
25,434,837
25,299,400
EQUITY AND LIABILITIES
Capital and reserves
Share capital
8
500,000
500,000
Retained earnings
30,156
27,095
Total equity
530,156
527,095
Non-current liabilities
Borrowings
9
24,678,339
24,620,204
Total non-current liabilities
24,678,339
24,620,204
Current liabilities
Trade and other payables
10
226,342
138,144
Current tax liabilities
-
13,957
Total current liabilities
226,342
152,101
Total liabilities
24,904,681
24,772,305
Total equity and liabilities
25,434,837
25,299,400
The notes on pages 14 to 29 are an integral part of these financial statements.
The financial statements were approved and authorised for issue by the Board of Directors on 28 April
2023. The financial statements were signed on behalf of the Board of Directors by Roderick Chalmers
(Non-Executive, Independent Chairman) and Stephanie Attard Montalto (Executive Director) as per the
Directors' Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual
Financial Report.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
11
Statement of comprehensive income
Year ended 31 December
2022
2021
Interest and other related income
1,098,200
1,098,200
Interest payable and similar charges
(995,635)
(993,376)
Gross profit
102,565
104,824
Administrative expenses
(97,856)
(94,570)
Profit before tax
4,709
10,254
Tax expense
(1,648)
(3,589)
Profit for the year
3,061
6,665
Earnings per share
0.0061
0.0133
The notes on pages 14 to 29 are an integral part of these financial statements.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
12
Statement of changes in equity
Share
Retained
capital
earnings
Total
Balance at 1 January 2021
500,000
20,430
520,430
Comprehensive income
Profit for the year - total comprehensive income
-
6,665
6,665
Balance at 31 December 2021
500,000
27,095
527,095
Balance at 1 January 2022
500,000
27,095
527,095
Comprehensive income
Profit for the year - total comprehensive income
-
3,061
3,061
Balance at 31 December 2022
500,000
30,156
530,156
The notes on pages 14 to 29 are an integral part of these financial statements.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
13
Statement of cash flows
Year ended 31 December
Notes
2022
2021
Cash flows from operating activities
Cash generated from/(used in) operations
17
143,595
(6,084)
Tax (paid)/refund
(62,868)
633
Net cash generated from/(used in) operating activities
80,727
(5,451)
Net movement in cash and cash equivalents
80,727
(5,451)
Cash and cash equivalents at beginning of year
7,905
13,356
Cash and cash equivalents at end of year
7
88,632
7,905
The notes on pages 14 to 29 are an integral part of these financial statements.
VIRTU FINANCE P.L.C.
Annual Financial Report and Financial Statements - 31 December 2022
14
Notes to the financial statements
1. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set
out below. These policies have been consistently applied to the year presented, unless otherwise
stated.
1.1 Basis of preparation
These financial statements have been prepared in accordance with the requirements of
International Financial Reporting Standards (IFRSs) as adopted by the EU and with the
requirements of the Maltese Companies Act (Cap. 386). The financial statements have been
prepared under the historical cost convention.
The preparation of financial statements in conformity with IFRSs as adopted by the EU requires
the use of certain accounting estimates. It also requires directors to exercise their judgment in
the process of applying the company’s accounting policies (see Note 3 Critical accounting
estimates and judgments).
Standards, interpretations and amendments to published standards effective in 2022
In 2022, the company adopted new standards, amendments and interpretations to existing
standards that are mandatory for the company’s accounting period beginning on 1 January 2022.
The adoption of these revisions to the requirements of IFRSs as adopted by the EU did not result
in substantial changes to the company’s accounting policies impacting the company’s financial
performance and position.
Standards, interpretations and amendments to published standards that are not yet effective
Certain new standards, amendments and interpretations to existing standards have been
published by the date of authorisation for issue of these financial statements that are mandatory
for the company’s accounting periods beginning after 1 January 2022. The company has not
early adopted these revisions to the requirements of IFRSs as adopted by the EU and the
company’s directors are of the opinion that, with the exception of the below pronouncements,
there are no requirements that will have a possible significant impact on the company’s financial
statements in the period of initial application.
Going concern
Virtu Finance p.l.c.’s (the Company) principal activity is to act as a finance company for the Virtu
Maritime Group of companies (the Group) and to assist in effectively and efficiently managing
the Group’s long terms capital requirements. In this context, the company’s ability to recover
loans issued to its fellow subsidiary is dependent on the performance of the operating companies
within the group to which amounts have been advanced.
The Virtu Maritime Group’s operations for FY 2022 reflected a recovery in the Malta/Sicily ferry
operations as Covid related restrictions were lifted and the tourist sector opened up. Improved
economic conditions also stimulated freight traffic. However, the impact of the Ukraine war
resulted in significantly higher fuel (bunker) costs which wholly eroded the benefits of higher
revenues. Improved market conditions resulted in the rechartering of the HSC Maria Dolores from
the end of April 2022. The Gozo high speed ferry operations remained problematic during FY
2022, but mitigating measures have since been taken that will benefit results going forward.