MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
Pages
Chairman’s Report 1 - 2
Chief Executive Officer’s review of operations 3 - 6
Directors’ report 7 - 18
Statement of compliance with the principles of good corporate governance 19 - 26
Remuneration report 27 - 30
Company information 31- 32
Statements of financial position 33 - 34
Income statements 35
Statements of comprehensive income 36
Statements of changes in equity 37 - 40
Statements of cash flows 41
Notes to the financial statements 42 - 87
Five-year summary 88
Financial highlights in major currencies 89
Supplementary information 90 - 92
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
1
Chairman’s Report
During the period under review, the postal sector emerged from the challenges posed by the aftermath of
the global pandemic and the fallout of the war in Ukraine. At MaltaPost, the financial year ending 30
September 2023, was one of adjustment to industry challenges and realities. A year of further changes in
consumer and business behaviour resulting from an inflationary economic environment, tight labour
markets and where consumers experienced a cost-of-living squeeze.
It is against this background that your Board of Directors is pleased to report a satisfactory set of results,
registering a pre-tax profit of €2.3 million, an increase of €1.7m over the previous year’s profits. Earnings
per share rose to €0.02, allowing your Board to propose at the Annual General Meeting, a final net dividend
of €0.02 per nominal share of €0.125, payable in cash or by way of scrip.
The year-on-year decline in Letter Mail volumes was exacerbated by the initiatives of local commercial
entities, when stopping the posting of paper documents , citing environmental sustainability.
Notwithstanding the improvement in our profitability, our results would have improved further had it not
been for the losses we incurred to fulfil a number of services within the Universal Postal Service Obligation
in Malta, mainly, though not exclusively, concerning local Letter Mail.
During the financial year, some tariff revisions were finally approved by the Malta Communications Authority
and accordingly implemented. According to European Union guidelines, MaltaPost is classified as an SGEI,
that is a provider of Services of General Economic Interest. The EU acknowledges that; “….in today's digital
world, ordinary mail continues to be replaced by digital communications. This puts a strain on the activities
of postal operators, which continue to offer a service that is important for citizens”. In this regard the Postal
Services Directive of the EU acknowledges the differences in the postal markets of EU countries, and gives
flexibility to EU member countries, allowing them to adapt elements of domestic postal services to their
particular needs. Indeed, it even allows the granting of state aid to postal operators in the fulfilment of
services such as the delivery of local mail.
As matters stand today, MaltaPost continues to carry an unfair financial burden especially in the case of
delivery of local mail. Despite the recent tariff adjustments, the domestic postal service tariffs in Malta
remain the lowest in Europe. While MaltaPost is not seeking state aid, it however should not be expected
to subsidise certain loss-making services.
The postal service in Malta continues to play a central role in the daily life of the community and contributes
positively to the national economy. However, persistently rising labour costs, our major expense force
MaltaPost to request revision of tariffs, and this inspite of significant cost-cutting exercises. In this regard,
we are in discussions with the Regulator so as to arrive at an Automated Tariff Adjustment Mechanism
establishing a price cap per postal service falling under the Universal Service. Once implemented, this
mechanism should go a long way to ensure that MaltaPost does not suffer financially to deliver any service
provided under the Universal Service Obligation.
In 2023, the Company continued to manage costs while transforming itself to meet the evolving demands
of the domestic and international parcels and packets business. To this effect, critical changes were made
to our Letter Mail and parcels flows to render our last mile delivery more efficient. The parcel and e-
commerce business continue to drive our strategy for growth where we see significant potential. Further
IT investment shall continue to allow the Company to keep in step with both the postal services industry
worldwide as well as the demands and expectations of consumers.
As a company listed on the Malta Stock Exchange, we reaffirm our determination to continue providing an
efficient and quality postal service to the nation-wide community, a fair return to our circa 1,900
shareholders and a secure and a fulfilling workplace for our 763 staff members.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
2
Chairman’s Report - continued
We are well positioned to progress our diversification strategy and shall continue to invest in both the Life
and General insurance sectors. Of course, the investments in insurance require time and regular capital
injection before yielding a return. We also remain on the lookout for other investment opportunities as they
arise and as part of our business diversification plan.
Concurrently, we are ensuring that robust foundations are laid to meet our Environmental, Social and
Governance obligations. We are today the proud owners of over 120 electric vehicles thereby reducing
emissions by significant margins, in our last mile delivery.
To conclude, my fellow directors join me in expressing gratitude to the management team and all Group
staff members for their dedication and good work. Thanks, are also due to fellow Directors for their valued
contribution throughout the year, as well as to the shareholders and customers for the steadfast support,
continued loyalty.
We strongly believe that the Group shall continue to be resilient when faced with the evolving economic
and market realities. We shall remain alert and agile to respond to sensible business opportunities that
arise, so as to further strengthen shareholder value year after year.
Joseph Said
Chairman
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
3
Chief Executive Officer’s Review of Operations
The results of the MaltaPost Group for the financial year ended 30 September 2023 include the financial
performance of MaltaPost p.l.c., together with its subsidiary and associate companies.
REVIEW OF FINANCIAL PERFORMANCE
Financial Year 2023 was one of business transformation. We made significant changes to our last-mile
delivery process as we continued with our investment in electric vehicles, rendering our network more agile
and to the expectations of our clients and partners. We also stayed focused on managing costs. We
strengthened our cross-border parcel delivery business and our international activity - both outside the
Universal Service Obligation (USO). It is these and other non-postal services that continue to provide
reasonable margins.
Group Profit Before Tax for the financial year ended (FYE) 2023 amounted to €2.32 million (2022: €0.64
million). While the Company continues to carry an unfair financial burden by subsidising a number of
regulated postal services within the Universal Service Obligation, minimal gains were registered within this
segment at close of this financial year. The tariff revisions announced by the Malta Communications
Authority and implemented in October 2022 and August 2023 respectively were tardy and did not
adequately compensate for the losses incurred to deliver select postal services. Some of these services
remain loss-making as the tariffs to date simply do not cover the full cost of providing them. Despite the
tariff adjustments implemented during the last financial year, the domestic postal service tariffs in Malta
remain the lowest in Europe.
The Group’s profit for this year includes its share of loss of €0.37 million (2022: €0.42 million) in IVALIFE
Insurance Limited, in which company we hold a 25% investment. Being a start-up, the Company will move
into profit once initial set-up costs are absorbed and further market share is gained. This is in line with
projections as the nature of an investment in life insurance is not one of short term.
Group Total Revenue rose by 26% to €39.61 million (2022: €31.51 million) following an increase in the
Company’s international business activity. Postal revenue contributed 87% (2021: 83%) of total revenue,
while non-postal revenue from other lines of business including document management, bill collection,
financial services and general insurance stood at 13% (2022: 17%).
Group Total Expenses rose by 20% to €37.09 million (2022: €30.80 million) in line with an even higher
percentage increase in Group Total Revenue. This was primarily driven by higher international postal tariffs
payable to postal operators at destination as imposed by the Universal Postal Union, coupled with the
general impact of inflation. However, during the year significant cost-reduction initiatives were implemented.
In fact, the total labour cost fell by 2.4% to €15.06 million (2022: €15.43 million) notwithstanding the Cost-
Of-Living Adjustment (COLA) increase of €9.90 per week with effect from 1 January 2023.
OPERATIONAL PERFORMANCE
Subdued retail growth and declining revenue within our network has compelled us to review our Post Office
and last-mile delivery network strategies. Our business transformation, largely placed on hold during the
pandemic, was resumed in earnest. Cost management and cost-efficiency efforts continued with special
emphasis on labour costs. In terms of the Post Office network, we are focusing on optimising our cost
structures and finding other ways how to increase revenue within the same network. We also continued our
investment focus to re-engineer our operational and last-mile delivery processes so as to improve efficiency
and increase capacity. Improving productivity by the optimisation of our last-mile delivery profile, while also
boosting parcel volumes, are among our major priorities. To cope with the year-on-year diminishing Letter
Mail volumes, we are also reorganising the last-mile delivery by combining Letter Mail and select parcel
delivery, into one stream.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
4
Chief Executive Officer’s Review of Operations - continued
Our investment in digital transformation continued as we facilitate online public access to our products and
services and as we strive to meet the ever-growing local and international e-commerce customer
expectations. We have also sought to improve customer experience and satisfaction by the implementation
of a Delivery Logistics Platform that provides real-time scanning of tracking events and electronic proof of
delivery, while also updating customers on the status of their e-commerce package. Enhancing the
customer experience remains a priority.
The obligations of the Universal Postal Service have for years been conditioned by the year-on-year decline
in the Domestic, Inbound and Outbound traditional Letter Mail volumes - a decline that was further
accelerated during this year as a consequence of the various initiatives taken by both public and private
corporates to increase digitisation and e-substitution.
We see opportunities to gain further market share in reverse-logistics through partnerships with
international consolidators and retailers while enhancing our cross-border offering to better align ourselves
to current market expectations.
Inbound e-commerce mail volumes have stabilised and during the latter part of the year showed positive
signs as more customers are becoming aware of the services that facilitate cross-border e-commerce for
purchases made from outside the EU. These include the Import One-Stop Shop and Delivery Duty Paid
schemes. Inbound e-commerce business continued to attract strong local and international competition,
creating constant pressure on tariffs and quality of service requirements, although very often we were
competing on a non-level playing field given that regulatory enforcement is weak. This situation remains
compounded by the relatively low barriers to entry, the attractiveness of the year-on-year growth in e-
commerce volumes and the presence of competitors that are free of regulatory obligations. However, we
remain committed to be the partner of choice and in this regard, we are regularly reviewing our processes
to meet the ever-increasing demands and expectations of our customer base.
A further 40 new electric vehicles were acquired during the year and others are expected to be delivered
during 2024. We completed the ‘one-delivery’ initiative in the South-Eastern and Southern Harbour areas
of Malta reaching 100% zero emissions for last-mile delivery in those areas. This investment also results in
less physical strain for our staff members in line with our effort to consistently improve working conditions.
With 763 members of staff, MaltaPost is one of Malta’s largest employers, with over 25% of staff being
non-Maltese speakers. We remain committed to maintain a positive workplace environment that
encourages and supports the right to dignity at work. We champion best practices and a safe, harmonious
workplace grounded in a culture of mutual respect and understanding despite any language and culture
differences that may exist.
Our growth and operational performance depend on our ability to attract and retain staff holding the
appropriate level of skills, knowledge, and experience. We strive to remunerate staff members fairly while
meeting their general work-life balance expectations. Although remuneration packages are annually
improved, due to the general inflationary economic situation, we still face challenges to recruit within an
intensely competitive labour market.
We are in discussions with the Malta Communications Authority on a Automated Tariff Adjustment
Mechanism establishing a fair and timely price cap per postal service falling under the Universal Service
Obligation. This proposed mechanism should go a long way to ensure that tariffs are aligned with the real
cost of providing each single service within the Obligation. Its implementation should also ensure that the
Company does not suffer financially when delivering any service within the Universal Service Obligation.
Such implementation should also serve to protect both the short and long-term financial viability of the
Universal Postal Service.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
5
Chief Executive Officer’s Review of Operations - continued
Our network has reached 41 Post Offices supported by 25 Sub-Post Offices. A good number of our Post
Offices also offer a free-of-charge EasiPik parcel collection locker service from 25 distinct locations,
available 24/7 across Malta and Gozo.
Upon authorisation by the Malta Financial Services Authority to act as a Tied Insurance Intermediary for
both PostaInsure Agency Limited, for the General Insurance business and for IVALIFE Insurance Limited
for the Life Insurance business, we opened our first insurance office within our Head Office in Marsa.
Concurrently, a number of staff members received the necessary regulatory training so as to transact
insurance business. This new service allows the Company to holistically meet its customer requirements
and expectations.
ENVIRONMENT, SOCIAL and GOVERNANCE
The Group reaffirms its full commitment towards maintaining the necessary environmental, social and
governance values. We have recognised the need to incorporate climate change, sustainability and social
well-being values within our vision, operations, the entire value chain and most importantly in the way we
do business. Throughout this year, we have increased efforts to minimise our environmental impact as we
create a more inclusive and safer workplace.
We remain committed to reduce our carbon emissions and improve air quality by further expanding our
fleet of electric vehicles and optimising our delivery routes. Other measures included better management
of electrical consumption, rendering our systems more efficient and improving the efficiency of our existing
photovoltaic system.
As part of our commitment towards sustainability, in September 2023 MaltaPost joined the International
Post Corporation’s Sustainability Measurement and Management System program. The program aims at
managing sustainability and is focused on reducing the collective carbon footprint of the postal industry
through both qualitative and quantitative assessments.
The focus on environmental matters did not in any way affect the Group’s effort its social value philosophy.
Besides further investment in the educational development of our workforce, improvements in safe work
practices and investment in health and safety equipment have given us the desired results.
During this year, we continued extending our support to several social organisations, most notably the Malta
Community Chest Fund, Dar tal-Providenza, Malta Hospice Movement and Inspire. Besides philanthropic
support, the Group continued with its endeavour to preserve Malta’s postal heritage through support
extended to the Malta Postal Museum via the ’Fondazzjoni Mużew tal-Posta’. This continued support
evinces our resolve to protect and promote the postal heritage and history of the Maltese Islands.
OUTLOOK
As the postal sector emerges from the challenges posed by the aftermath of the global pandemic, the fallout
of the war in Ukraine and the political decisions and regulatory changes affecting the industry, we are
positively optimistic that despite these, e-commerce traffic will continue to steadily increase over the next
five years. Consequently, we shall continue to maximise all possible growth initiatives through direct
partnership with international e-sellers and consolidators and better integration with e-commerce sites, in
order to increase revenue, while concurrently providing an efficient last-mile delivery parcel service. On the
other hand, traditional Letter Mail is expected to maintain its year-on-year decline at a higher annual pace
than that experienced so far. This reality reaffirms our strategies to create a more agile and responsive
company that is fully prepared to deliver the expected increases in parcel volumes.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
6
Chief Executive Officer’s Review of Operations - continued
We are reasonably confident that the Malta Communications Authority shall agree to the Automated Tariff
Adjustment Mechanism. This will allow the Company to continue to invest in its USO business processes
and this for the benefit of the community at large.
We plan to widen our business diversification programme with special focus on General and Life insurance
services as we prepare to offer these services through our network. We are also confident that our focus
on logistics, coupled with our diverse endeavours in document management and financial services augur
well for the future. We will continue to seek new sensible investment opportunities as part of our business
diversification plan, while remaining the trusted postal and logistics partner of choice offering a
comprehensive product portfolio.
The Group remains determined to provide a satisfactory return to its shareholders, a quality service to its
customers and fair and reasonable working conditions to all its staff. We are also confident of the Group’s
financial prospects, going forward.
I wish to express my thanks to the Chairman, the Executive Director and the members of the Board of
Directors for their support and strategic guidance; our management team and staff for their commitment
and dedication; and our shareholders and customers for their continued trust.
Joseph Gafa'
Chief Executive Officer
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
7
Directors’ report
The Directors present their annual financial report and the consolidated audited financial statements of
MaltaPost p.l.c. and its subsidiaries for the year ended 30 September 2023.
REVIEW OF PERFORMANCE
Group profit before tax for the financial year ended (FYE) 30 September 2023 amounted to €2.32 million (2022:
€0.64 million), resulting in Earnings of €0.02 per nominal share of €0.125.
Financial Year (FY) FY2023 was one of business transformation. We continued investing to render our last mile
delivery more agile and efficient whilst further managing costs. We also strengthened our parcel delivery business
and our international business outside the Universal Service Obligation (USO). Following the loss of €0.5 million
incurred during FY 22 to deliver the Universal Postal Service Obligation, select tariff revisions were approved by
the MCA and implemented. These tariff revisions left a positive impact on the financials of the Universal Service
and minimal profits were registered within this segment of the business as at 30 September 2023. Although no
longer loss making, MaltaPost still does not make a just and fair return as the provider of the USO in Malta and in
line with extant MCA regulatory decisions. In fact, the Company continues to carry an unfair financial burden by
subsidising select postal services within the same USO. It is also pertinent to point out that the Universal Service
Obligation is a service of general economic interest and despite the tariff adjustments implemented during FY
2023, the domestic postal service tariffs in Malta remain the lowest in Europe. During the past FY, the Company
started discussions on an Automated Tariff Revision Mechanism in order to reflect the true cost of delivering each
service provided under the USO.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
8
Directors’ report - continued
Group Total Revenue rose by 26% to €39.61 million (2022: €31.51 million) following an increase in the Company’s
international business activity. Postal revenue represented 87% of total revenue, while the remaining revenue
balance stemmed from the provision of non-postal services including document management, bill collection and
financial services.
Group Total Expenses increased by 20% to €37.09 million (2022: €30.80 million) as expected in this line of
business following the significant increase in Total Revenue. Increased business coupled with higher cost of
Terminal Dues and the general impact of inflation were the biggest cost drivers. Following improvements in our
last mile delivery, employee costs decreased by 2.4% to €15.06 million (2022: €15.43 million).
Remuneration Policy
Details of total employee expense for the FY 2023 and the average number of persons employed by the
Company (including part-timers), during the year is included in Note 22 to the financial statements.
Information on the Company’s Remuneration Policy and practices is disclosed in the Remuneration Report
within the Annual Financial Report on page 27. The Remuneration Report will be subject to an advisory
vote at the forthcoming Annual General Meeting.
NON-FINANCIAL INFORMATION
The Maltese Companies Act requires that a non-financial statement be included in this report containing
information on the Group’s development, performance, position, and impact of its activity, relating to, as a
minimum, environmental, social and employee matters, respect for human rights, anti-corruption and
bribery matters and this in the form of particular disclosures on certain aspects.
Information in respect of the above matters is also disclosed within the Directors’ Report in the Annual
Financial Report and Financial Statements of the Company’s parent, Lombard Bank Malta p.l.c.
MaltaPost p.l.c. is subject to the Non-Financial Reporting Directive, ‘NFRD’ and is therefore also subject to
disclosure requirements stemming from the Delegated Act supplementing Article 8 of the Taxonomy
Regulation. However, given that MaltaPost is consolidated at the level of its parent entity, the Company is
availing itself of the exemption from such disclosure requirements given that Lombard Bank Malta p.l.c.
complies with the requirements of the Disclosure Delegated Act.
Nevertheless, the Group remains fully committed to remain a business which focuses on keeping customer,
social, and environmental values at the top of its agenda. With the increase in relevance to matters
associated with environment, social and good governance (ESG), our strategic focus has been widened to
guarantee a business approach which is sustainable along the entire value chain. As one of Malta’s largest
employers, operating a substantially large fleet of vehicles and an extensive Post Office Network, MaltaPost
recognises the need to incorporate such values within its vision, operations and way of conducting
business. In its strategy, the Company has placed the three ESG pillars as an integral part of its corporate
responsibility and integrated them into the business decision making process and the Annual Risk
Management Review.
Further demonstrating its commitment towards sustainability, in September MaltaPost officially joined the
International Post Corporation’s (IPC) Sustainability Measurement and Management System (SMMS)
programme. The programme aims at managing sustainability and plans to reduce the collective carbon
footprint of the postal industry through both qualitative and quantitative assessments.
Through such a pragmatic stance, MaltaPost believes that it can be a driver for change and a valid
contributor to the society now and the future.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
9
Directors’ report - continued
Environmental
Climate Change & Air Pollution
MaltaPost is aware of its impact on the environment and for the past years has been taking action to reduce
its greenhouse gas (GHG) emissions and to reduce the carbon footprint through the investment in a 60.48
kWp Photovoltaic system in 2012 and later in 2017 with the decision to commence the transition to
electrifying the last mile delivery fleet. Besides the positive impact through the improvement of its
environmental credentials, the Company firmly believes that such measures will mitigate climate risks whilst
also providing an opportunity towards managing costs and optimising its postal delivery routes.
Electrifying the Last Mile Delivery Fleet of Vehicles
Up until the Company’s decision to start transitioning its last-mile delivery to electric, MaltaPost last-mile
mail delivery was carried out through a mobility mix of foot, motorcycles, light cars, and medium and large
sized vans. The fleet electrification project named ‘One Delivery’, is also intended to merge letter mail and
small and medium parcel deliveries into one, using a Micro Logistics Electric Vehicles (MLEV) which has a
sufficient carrying capacity to carry both letters and parcels.
The use of non-alternative fuelled vehicles shall lower Scope 1 emissions.
By the end of Financial Year 2026, MaltaPost is planning to operate 200 non-alternative fuelled vehicles
that will have replaced, at least, eighteen (18) parcel delivery vans and all sixty-nine (69) motorcycles. Such
an increase in alternative fuel powered vehicles will see the annual reduction of approximately 5,536kg of
CO₂ per van per year and 363kg of CO₂ per motorcycle per year which approximately translates to a
projected total reduction of 120,000kg of CO₂ on completion of the project.
Financial Year
2021
2022
2023
Non-Alternative Fuel Vehicles
152
148
125
Alternative Fuel Vehicles (AFV)
72
113
131
Percentage of AFVs
32%
43%
51%
Energy and Resource Efficiency
MaltaPost plans to continue to take the necessary steps to improve its energy and resource efficiency
performance through prioritising clean and renewable energy, replace electrical equipment with better
energy efficient systems and to reduce, as much as possible, the use of water while exploring viable
economic ways to save rainwater.
The buildings and facilities used by the Company are an important aspect in the Company’s focus in
reducing the consumption of purchased electricity (Scope 2). The Company continues to reap benefits from
the past investment in renewable energy and energy efficient systems.
With the intent of also filtering down the Company’s commitment towards a cleaner and more sustainable
environment, company guidelines on energy efficiency were promulgated to all its employees. The
guidelines mainly targeted the use of electricity, cooling and heating, machinery, and vehicles. The
Company aims towards introducing yearly information sessions and online campaigns to its employees to
further educate the workforce on their individual responsibilities towards climate change mitigation.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
10
Directors’ report - continued
Financial Year
2021
2022
2023
Total Non-Renewable Electricity Consumed (kWh)
1,215,301
1,293,613
1,165,058
Total Renewable Electricity Consumed (kWh)
35,027
29,702*
43,072
Water Withdrawal (m³)
3,746
3,359
5,393
Scope 1 Emissions (Tonnes CO₂)
515
454
418
Scope 2 Emissions (Tonnes CO₂)
446
489
440
* The drop in electricity generated from the PV system is attributed to damage sustained to two (2) inverters
The electrification of the fleet, route optimisation, investment in renewable energy and energy efficient
systems shall remain the primary targets which will help the Company align itself with sustainability targets
set by the IPC’s SMMS programme to further align MaltaPost’s scope 1, 2 and 3 emissions with the 1.5⁰C
reduction approach of the Paris Agreement and possible future targets set by Government.
Waste Management & Circular Economy
During this financial year, MaltaPost issued a waste management directive based on the 3Rs principle
(Reduce, Reuse and Recycle) with its focus being to ensure waste separation is carried out at source,
reduce the amount of mixed waste, and start taking measurement data so that targets can be set.
In addition to the waste management directive, the implementation of a new procedure for the disposal of
waste was introduced in all the Company’s centres aimed at driving a cultural change in the employees’
habits in waste separation and aligned with waste separation compliance rules set by the Government this
year. Although it is assessed that MaltaPost business model has minimal impact on resources, the
Company shall endeavour in extracting more value from its products in order to support the principles of a
circular economy.
Social
The Company is aware that a professional approach to appointments within the Company helps it to attract
those individuals having the necessary qualifications, skills and attributes compatible with achieving its
overall objectives.
Thus, the Company ensures that appointments at all levels are based on each individual’s knowledge,
skills, expertise and merit, as required by Maltese legislation and in line with industry best practices.
Bearing its objectives in mind, the Company acknowledges the benefit of appointing directors with diverse
skills, backgrounds and expertise that enable the Board to create additional value for shareholders by
ensuring that the business objectives are balanced against the general and specific risks faced in line with
the Board’s risk appetite. The Company will continue to promote such diversity for any vacant board
positions that may arise from time to time.
The Company is confident that having taken cognisance of its specialised line of business, size and
business model, and in light of the fact that the Company is controlled by Lombard Bank Malta p.l.c., it
benefits from satisfactory diversified views and expertise which allows for a good understanding of global
and regional affairs, the business environment in which the Company operates and the short and long-term
risks and opportunities related to the Company’s business.
The Company remains committed to achieving further diversity among its Board members.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
11
Directors’ report - continued
Own Workforce
The ever-changing postal landscape is bringing about substantial challenges but also a number of
opportunities. Operating in such a dynamic landscape, keeping customers and the workforce at the core of
its business decisions enables the Company to better improvise and adapt to maintain a sustainable
investment in human capital and improve efficiency in its operations.
The four social pillars being assessed as being essential in reaching desired aims and targets are:
• Remain an equal opportunities employer whilst maintaining a work environment which is free of
any form of discrimination.
• Sustain high health and safety standards for all employees.
• Invest in further education and training of staff.
• Extend philanthropic support whilst also promoting postal heritage through the Postal Museum
Foundation.
Equal Opportunities and Working Conditions
The Company firmly believes that providing a work environment that promotes non-discrimination,
inclusivity and well-being shall attract talent and help the workforce in achieving maximum potential.
Complementing this is the Collective Agreement covering 2019 till 2024 which focuses on creating the right
environment for better working conditions. The importance of measuring employee satisfaction shall also
serve the Company as a guiding tool for evaluating its relationship with its employees. The latest internal
Employee Survey was concluded in May 2023.
The Company remains fully committed to ensure that equality, diversity and non-discrimination remain
values of huge importance. Over the past years the Company has invested and put in place a number of
policies that ensure that protection against harassment, bullying, discrimination and equality are respected.
The target of maintaining the Equality Certification Mark in recognition to the Company’s non-discriminatory
values remains a priority target.
The Company also values the fact that it is at the forefront through the employment of persons with different
abilities which approximately account for over 11% of the existing workforce. Whilst the Company is proud
to have surpassed both the national average and the legal obligation of 2% of employees set under the
Persons with Disability Act, MaltaPost remains committed to maintain this employment mix.
Health & Safety / Wellbeing
The health, safety, and wellbeing of all MaltaPost’s employees remains a top priority in view of it being
identified as a matter of high materiality. Safety hazards emanating from our business model have potential
to create risk to our postal operators and delivery personnel. With the intent of providing a safe and secure
environment, MaltaPost carries out constant assessments, training and guidance at all levels on various
topics including mental wellbeing.
Through rigorous policies and procedures and notably the replacement of motorcycles with four wheeled
electric vehicles, the Company’s number of working hours lost has decreased.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
12
Directors’ report - continued
MaltaPost shall remain committed to continue ensuring provision of the highest safety standards and safe
environments to its employees, contractors and the public in accordance with the Occupational Health and
Safety Authority Act (Cap.424 of the Laws of Malta).
Learning and Development
The investment in human capital was and remains a fundamental pillar in having a sustainable workforce
that is rightly equipped with the necessary tools and knowledge to carry out assigned tasks efficiently. To
this aim, MaltaPost commits to continue investing in developing the skills of its workforce through both
inhouse and external training.
In view of the nature of MaltaPost’s line of business, the development of skills commences very early for
employees especially in the operational units. The training continues to develop through internal and on-
the-job training which progressively escalates in accordance with the professional development and
advancement in career. Building further on what was done in the past and progressively increasing the
number of training hours at all professional levels remains the Company’s target.
Financial Year
2021
2022
2023
Total Number of Employees (FTE)*
770
689
701
Employee Turnover (number of employees)
188
211
192
Total Lost Time Injuries (LTI) (Number of employees)
64
57
37
Total Working Hours Lost (number of hours)
3,416
2,747
1,904
Total Training Hours
3,336
4,218
5,306
Consumers and End Users
MaltaPost’s mission statement is fully customer centric and places the customer at the centre of every
business decision made. Providing customer value is a major driver in the execution of the Company’s
business decisions. Whilst investment in technology that measures the satisfaction level of services
provided has been made, MaltaPost is aware that further investment in digital solutions that facilitates
customer interactions including the possibility of having sustainable delivery options are areas that require
further study.
Working in tandem with digital innovation, we are working hard to improve our Quality of Service (QoS)
standards as we benchmark ourselves against the targets set by both national and international regulatory
bodies. Despite the challenges faced and the market pressures experienced due to quasi full employment,
the intent of reaching pre-COVID QoS standards remains.
The goal of delivering a high-quality and reliable delivery service remains central to MaltaPost’s business
success and several policies and controls ensure that the vast majority of deliveries and services we provide
are successful and timely. Service difficulties are sometimes encountered, the Company’s aim to find
appropriate solutions is key and an integral part of customer care activities. Whilst complaints have
progressively decreased since 2019, MaltaPost’s target of further reduction in customer dissatisfaction is
affirmed.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
13
Directors’ report - continued
Besides the workforce and customers, MaltaPost’s philosophy on social value extends beyond and the
Company remains committed towards extending its support to various social and cultural organisations.
The preservation of culture and history also remains at the forefront of MaltaPost’s sustainability vision.
The management of the Malta Postal Museum through the ‘Fondazzjoni Muzew tal-Posta’ helps preserve
and promote Malta’s postal heritage for the benefit of the society and future generations.
Governance
Business Conduct
Good governance is important in helping MaltaPost achieve its goals whilst ensuring a resilient and
transparent organisation. The Company shall remain totally committed towards the values of integrity,
transparency and honesty and acts in a manner which is professional and diligent to help it exercise
business judgement in a way that benefits the interest of the same Company and all its stakeholders.
Several wide-ranging policies on corporate governance ensures that business best practices are steadily
applied in all business decisions made.
MaltaPost recognises the importance of having policies, which cover issues related to fraud prevention,
anti-bribery and anti-corruption, in place. The Company’s commitment towards adopting a zero-tolerance
policy towards bribery and corruption remains and endeavours in having the necessary controls in place to
mitigate associated risks. Also notable is the introduction of the Whistleblowing Policy as an essential part
of the Company’s strategy to mitigate business malpractices and possible unethical behaviour from within.
This also applies to other financial crimes especially, money laundering and terrorist financing, where also
specific and specialised training is provided to employees within our Post Office network who are exposed
to financial crimes of this nature.
It is planned that MaltaPost’s governance structure demonstrates how sustainability is integrated at all
levels of decision making and also to enable the measurement of performance to meet commitments. The
Company aims at continuing to monitor its governance approach to support the embedding of sustainability
and meet reporting requirements as necessary.
Sustainable Procurement
In view of its diverse supply base to support the business operation and to provide the products necessary
to meet our customers’ needs, MaltaPost aims to introduce sustainability in its procurement process using
a phased approach leading to the creation of sustainable procurement policy including the creation of a
supplier sustainability questionnaire focusing on work practices, health and safety, environment and
business conduct.
The desired end-state of having a robust sustainable procurement ensures that MaltaPost can further
commit towards responsible business conduct and sustainable supply chain practices.
Further information in respect of these matters is disclosed within the Directors’ Report in the Annual
Financial Report and Financial Statements of the Company’s parent, Lombard Bank Malta p.l.c. in terms of
paragraph 10 of the Sixth Schedule (Article 177) of the Companies Act Cap. 386.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
14
Directors’ report - continued
PRINCIPAL RISKS AND UNCERTAINTIES
Providing a profitable USO service / accelerated letter mail e-substitution and digitisation
MaltaPost p.l.c. is the designated Universal Postal Service Obligation provider in Malta. It is responsible to
deliver various postal services to the general public including the clearance and delivery of letters and
packages six days a week both domestically and internationally even when the costs involved render such
select services of general economic interest not financially viable. Although significant improvements have
been made when compared to the previous financial year, the financial challenge to deliver the USO at a
reasonable profit persists. Select tariff revisions are still far off from giving a fair and equitable profit as they
do not reflect the true cost of providing such services. The year-on-year decline in Letter Mail volumes and
the rise in inflation gives the Company added impetus to rightly demand to be adequately compensated for
providing a service of general economic interest at a commercially reasonable profit.
Volume declines that are expected to persist and mainly attributable to e-substitution and the accelerated
post-pandemic push towards the digitisation of several services and correspondence.
It is with these challenges and others in mind that MaltaPost shall remain vigilant in implementing the
necessary mitigation measures to concurrently address the provisions of having a postal service that is
financially sustainable and ready to respond to an ever-changing landscape.
Intensifying competition
Extreme competition in the eCommerce market (and particularly the local and inbound parcel business)
coupled with the ever-evolving customer trends, places significant pressures on tariff rates. The volume
increases in eCommerce business and the relative ease of entry into this line of service has made it
particularly attractive to competitors who are unburdened by regulatory and universal service cost
obligations.
Amid all these challenges, MaltaPost is still expected to reach QoS targets that are set by the National
Regulator as established in the Postal Service Act (Cap. 254 of the Laws of Malta). Regular Quality
Assurance and monitoring is carried out by Independent Third Parties and by the National Regulatory
Authority (Malta Communications Authority) to ensure that deliveries of postal articles falling under the
Universal Service Obligation are delivered within a specific and very short timeframe. Besides local targets,
MaltaPost is also bound by other QoS targets set by international postal organisations to also ensure that
the Universal Service Obligation is also respected on an international level. It is fair to point out that that
MaltaPost’s national QoS targets remain among the highest in the European Union whilst local postal tariffs
remain one of the cheapest.
Inability to maintain staff resourcing in line with business needs
Exigencies tied to business growth and QoS standards requires a well-trained workforce that rises to the
operational challenges surrounding the timely and efficient delivery of postal items. Over the past few years
MaltaPost has experienced difficulties in recruiting and retaining personnel, the latter having the biggest
impact since this generally involves postal operators who have been trained and possess a high level of
experience. As time passes the situation is becoming more challenging and is placing unnecessary wage
pressures emboldened by labour shortages and rising inflationary costs.
To mitigate the risk, the Group has put measures in place to establish a framework that addresses the
social wellbeing of its workforce through flexible and more favourable working conditions supported by an
adequate salary and allowance package.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
15
Directors’ report - continued
Legislative and/or Regulatory Repercussions
The Group continues to endeavour in ensuring compliance with a wide and diverse set of laws and
regulations. It is likely that compliance and regulatory requirements are set to increase in view of the
Group’s aim to diversify its line of business in highly regulated industries such as Insurance and upcoming
sustainability regulations that will come into force in the coming years. Failure to comply with such
regulations may translate into regulatory scrutiny, liabilities for both the Company and its Directors as well
as reputational damage.
Notwithstanding this regulatory landscape, MaltaPost continues to play a central role in the Maltese
economy and in the daily life at the heart of the community.
Financial Risk Management
The Company’s activities potentially expose it to a variety of financial risks, most notably market risk
(including foreign exchange risk, cash flow and fair value interest rate risk), credit and liquidity risk. Through
its overall risk management framework aimed at also covering risk exposure for its subsidiaries, focuses
on the unpredictability of financial markets, the Company seeks to minimise potential adverse effects on its
financial performance.
The Audit and Risk Committee has overall responsibility for the establishment and oversight of the Group’s
risk management framework. Accordingly, the Committee provides principles for overall risk management,
as well as risk management policies in line with the risk appetite covering the risks referred to above. A
detailed review of the financial risk management policies employed by the Company is included in Note 2
to the financial statements.
RESULTS AND DIVIDENDS
The income statements are set out on page 35. The Directors recommend the payment of a final net dividend
of €0.02 per share amounting to €1,506,000 (2022: €1,506,000).
CAPITAL
The Authorised Share Capital of the Company was fourteen million euro (€14,000,000) made up of one
hundred and twelve million (112,000,000) ordinary shares of a nominal value of €0.125 each. The Issued
and Fully Paid Up Share Capital was nine million, six hundred and eighty nine thousand, (€9,689,000)
made up of seventy-seven million, five hundred and twelve thousand, and twenty (77,512,020) ordinary
shares of a nominal value of €0.125 each, all of one class.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
16
BOARD OF DIRECTORS, OFFICERS AND SENIOR MANAGEMENT
The Directors of the Company who held office during the year were:
Joseph Said (Chairman)
David P. Attard
James Dunbar Cousin
Graham A. Fairclough
Eugenio Farrugia
Paul Muscat
Aurelio Theuma
In accordance with the Company’s Articles of Association, a member of the Company holding, or number
of members, who between them hold, such number of equity securities having voting rights as may be
sufficient to constitute one or more qualifying holdings, shall be entitled to appoint one (1) director for every
qualifying holding held. Other members shall be entitled to participate and vote in an election of directors
to take place once in every year at a general meeting of the Company. Unless appointed for a longer or
shorter period, or unless they resign or are removed, directors, unless otherwise specified in the letter of
their appointment, hold office for a period of one year. Notwithstanding the period for which a director has
been appointed, on the lapse of such period a director will be eligible for re-appointment. An election of
directors shall take place every year, if there are vacancies on the board which are not filled by the
appointment of directors by the member holding, or number of members who between them hold, such
number of equity securities having voting rights as may be sufficient to constitute one or more qualifying
holdings. The composition of Officers and Senior Management is further disclosed under section 'Company
Information'. Further information is also given in the 'Statement of Compliance with the Principles of Good
Corporate Governance'.
DIRECTORS’ STATEMENT OF RESPONSIBILITIES IN RELATION TO 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.
The Directors are also responsible for designing, implementing and maintaining internal controls 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 MaltaPost p.l.c. for the year ended 30 September 2023 are included in the Annual
Financial Report 2023, which is published 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.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
17
Directors’ report - continued
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.
STATEMENT OF THE DIRECTORS PURSUANT TO 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 as at 30
September 2023, and of its financial performance and its cash flows for the year ended in accordance
with International Financial Reporting Standards as adopted by the EU; and
• the Annual Financial Report includes a fair review of the development and performance of the
business and the position of the Company, together with a description of the principal risks and
uncertainties that they face.
INFORMATION PROVIDED IN ACCORDANCE WITH CAPITAL MARKETS RULE 5.70.1
There were no material contracts to which the Company or any of its subsidiaries were a party, and in which
any one of the Company Directors was directly or indirectly interested, except for transactions listed in the
notes to the financial statements.
CAPITAL MARKETS RULES DISCLOSURES
In terms of the Capital Markets Rule 5.64, the Directors are required to disclose the following information:
Amendments to the Memorandum and Articles of Association are effected in conformity with the provisions
in the Companies Act (Cap. 386). Furthermore, in terms of the Articles of Association of the Company:
(a) Directors may be authorised by the Company to issue shares subject to the provisions of the
Memorandum and Articles of Association and the Companies Act (Cap. 386);
(b) Directors may decline to register the transfer of a share (not being a fully paid share) to a person of whom
they shall not approve;
(c) Directors may decline to recognise any instrument of transfer, unless accompanied by the certificate
of the shares of which it relates, and/or such other evidence;
(d) no registration of transfer of shares shall be made and no new particulars shall be entered in the register
of members when the register is closed for inspection;
(e) the Company may, from time to time, by extraordinary resolution reduce the share capital and any share
premium account in any manner.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
18
Directors’ report - continued
Currently there are no matters that require disclosures in relation to:
(a) holders of any securities with special rights;
(b) employee share schemes;
(c) restrictions on voting rights or relevant agreements thereto;
(d) agreements pertaining to the change in control of the Company;
(e) any agreements between the Company and its Directors or employees providing for compensation if they
resign or are made redundant without valid reason or if their employment ceases because of a takeover
bid.
The exercise of any share buyback option by the Directors requires the passing of an extraordinary
resolution.
The Company’s capital structure, direct and indirect shareholding in the Company, in excess of 5% and the
rules governing the changes to the Board members are contained in other parts of this Annual Financial
Report.
The only shareholder holding 5% or more of the Issued Share Capital of the Company is Redbox Limited
which owned 71.5% as at 30 September 2023 and 13 November 2023.
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.
Signed on behalf of the Company's Board of Directors on 19 December 2023 by Jospeh Said and Aurelio
Theuma as per the Directors' Declaration on ESEF Annual Financial Report submitted in conjunction with
the Annual Financial Report 2023.
Registered office
305, Qormi Road,
Marsa, MTP 1001
Malta
19 December 2023
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
19
Statement of compliance
with the Principles of Good Corporate Governance
As a company having its securities admitted to trading on a regulated market, MaltaPost p.l.c. is obliged to
report on the extent to which it has adopted the Code of Principles of Good Corporate Governance (the
‘Principles’) during the period under review, as specified in Appendix 5.1 to Chapter 5 of the Malta Financial
Services Authority Capital Markets Rules. The Board also carries responsibility for Good Corporate
Governance and in this connection has prepared a review of the Company’s Compliance with the code for
the Financial Year ended 30 September 2023.The following report highlights the extent to which the Code
has been adopted, as well as the reasons for any departure from the Code.
Although compliance with the Code is not mandatory, the Board of Directors of MaltaPost p.l.c. firmly
believes that adoption of the Principles ensures the required standards of accountability, transparency, and
probity, all of which go to safeguard the very best interests of all the Company’s stakeholders.
A. COMPLIANCE WITH THE CODE
PRINCIPLE 1: THE BOARD
The Board of Directors is composed of the Chairman and six (6) Directors, six (6) of whom are non-
executive. Five (5) of the Directors are employed with the ultimate parent Company. While the Board of
Directors is elected by the shareholders as stipulated in the Company’s statute, the Chairman is elected by
the Directors from amongst themselves during the first Board Meeting following the Annual General
Meeting. Any Director (other than an alternate Director) may in writing appoint any person who is approved
by the majority of the Directors, to be his alternate to act in his place at any meeting of the Directors at
which he is unable to be present.
The main responsibility of the Board is to set the strategic direction of the Company and to provide the
necessary oversight to ensure adherence to the agreed strategies.
In so doing the Board delegates certain responsibilities to a number of Board committees, notably the Audit
and Risk Committee, the Assets and Liabilities Committee and the Remuneration Committee, all of which
are regulated by their own terms of reference as approved by the Board of Directors. Further details
regarding the Board Committees are found under Principle 8 below. The Directors possess the necessary
skills and competencies to enable them to discharge their responsibilities with integrity, honesty, prudence,
and professionalism.
PRINCIPLE 2: CHAIRMAN AND CHIEF EXECUTIVE OFFICER
The post of Chairman and that of Chief Executive Officer are held by different individuals. The separation
of roles is intended to differentiate between the role of the Chairman as the leader of the Board of Directors
and that of the Chief Executive Officer who is responsible for the execution of the agreed strategies as well
as the day-to-day management of the Company. This separation of roles is meant to ensure that no one
individual or small group of individuals have unfettered powers of decision.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
20
PRINCIPLE 3: COMPOSITION OF THE BOARD
The following Directors served on the Board during the period under review:
First appointment date
Joseph Said 18 August 2006
David P. Attard 16 January 2015
James Dunbar Cousin 27 February 2018
Graham A. Fairclough 27 February 2018
Eugenio Farrugia 1 October 2016
Paul Muscat 15 November 2017
Aurelio Theuma 8 October 2007
Joseph Said is an Executive Director of the ultimate controlling shareholder, while David P. Attard, Graham
A. Fairclough, Eugenio Farrugia and Aurelio Theuma are employees of the ultimate controlling shareholder.
These relationships are not considered necessarily conducive to the creation of a conflict of interest such
as to jeopardise exercise of these Directors’ free judgement. James Dunbar Cousin and Paul Muscat are
considered to be independent non-Executive Directors of the Company and in determining independence
or otherwise, the Board has taken into consideration the relevant Code provisions. David P. Attard is an
Executive Director of the Company.
It is considered that the experience, skills, and competencies of the members of the Board are sufficient to
ensure the proper functioning of the Board.
In terms of Principle 3.4, all the Directors have confirmed in writing that they:
(a) maintain in all circumstances their independence of analysis, decision and action;
(b) do not seek or accept any unreasonable advantages that could be considered as compromising their
independence;
(c) clearly express their opposition in the event that they find that a decision of the Board may harm the
Company.
Taking cognisance of the Company’s size and business model, the Board considers that as a policy it
endeavours to have a varied board, particularly in terms of diverse educational and professional
backgrounds as well as extensive and specialised experience. The Board is confident that for this reason
and in light of the fact that the Company is controlled by Lombard Bank Malta p.l.c., it benefits from a
satisfactory diversity of views and expertise which allows for a good understanding of current affairs, the
environment in which the Company operates, and long-term risks and opportunities related to the
Company’s business.
The Board will consider formalising its diversity policy and remains committed to achieving further diversity
among its members particularly in terms of age, gender, experience, educational and professional
backgrounds.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
21
PRINCIPLE 4: RESPONSIBILITIES OF THE BOARD
The Board of Directors is responsible for the formulation of the agreed strategy as well as the monitoring
of its implementation by management, within the confines of all the applicable rules and regulations.
In so doing, the Board is responsible for:
(a) devising the appropriate strategies of the Company with a view to maximising value;
(b) approving Business Plans which are consonant with approved strategies and monitoring the execution
of such plans on a regular basis;
(c) approving Risk Management Plans which are appropriate to the business and monitoring the
application of mitigating factors;
(d) ensuring that internal control systems are in place and function appropriately. Although the relative
systems are designed to mitigate all the risks in accordance with best practice, they cannot completely
eliminate the possibility of material error or fraud;
(e) appointing the Company’s Executive Officers, monitoring their performance, approving their
compensation as well as ensuring that succession plans are in place;
(f) putting in place a policy to ensure that the Company communicates effectively with shareholders, other
stakeholders, and the public generally;
(g) putting in place procedures to ensure that the Company and its employees maintain the highest
standards of corporate conduct and ethical standards;
(h) delegating specific responsibilities to committees, notably the Audit and Risk Committee, the Assets
and Liabilities Committee and the Remuneration Committee.
(i) Monitoring adherence to the Company’s Environmental, Social and Governance responsibilities.
PRINCIPLE 5: BOARD MEETINGS
Six (6) Board meetings were held during the period under review and attendance by Board members was
as follows:
Attended
Joseph Said 6
David P. Attard 6
James Dunbar Cousin 6
Graham A. Fairclough 6
Eugenio Farrugia 6
Paul Muscat 6
Aurelio Theuma 6
The dates when the Board meetings are scheduled to take place are fixed prior to the beginning of the year
in question. Further meetings may be convened as required. Both strategic and operational matters are
featured in the agenda of Board meetings and the appropriate supporting papers are circulated to each
Board member well ahead of the meeting to ensure adequate time for preparation for deliberation at Board
meetings. All Board members are given the opportunity of expressing their opinion on all agenda items.
Minutes of all Board meetings as well as Audit and Risk Committee meetings are prepared immediately
after each meeting and circulated amongst all Board members. All the Directors dedicate the necessary
attention and time to their duties as Directors of the Company.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
22
PRINCIPLE 6: INFORMATION AND PROFESSIONAL DEVELOPMENT
While the training of management and staff is an on-going process, the Directors are regularly updated with
all the relevant information which is considered necessary for the proper discharge of their duties and
responsibilities. Furthermore, all Company Directors have direct access to the Company Secretary who is
at their disposal and who ensures that the appropriate information flows are maintained at all times. The
Company Secretary is also responsible for ensuring that Board procedures are adhered to as well as advise
on matters relating to Corporate Governance. Additionally, and in terms of the Company’s statute, the
Directors are entitled to seek independent professional advice on any aspect of their duties at the
Company’s expense.
On first joining the Board, each Director is provided with a dossier containing information pertaining to
Director’s duties and responsibilities together with relevant legislation and regulations, including the Malta
Financial Services Authority Capital Markets Rules. Additionally, Directors have access to Senior
Executives to update and develop their skills as considered appropriate on an on-going basis. Furthermore,
the directors have access to the Company’s external auditors who are invited to attend all the Audit and
Risk Committee meetings and the Board of Directors meetings as necessary.
PRINCIPLE 7: EVALUATION OF BOARD'S PERFORMANCE
Vide under Non-Compliance within the Code Section.
PRINCIPLE 8: COMMITTEES
The following committees have been established by the Board of Directors, each having their own Terms
of Reference with direct reporting lines to the Board.
AUDIT AND RISK COMMITTEE
The Capital Markets Rules of the Malta Financial Services Authority provide for the establishment of an
Audit and Risk Committee, the main functions of which include the monitoring of the financial reporting
process, the soundness of the Company’s internal control systems as well as the scrutiny and approval of
related party transactions in order to ensure that the 'arm's length' principle is observed at all times. The
management of the relationship of the external auditors with the Company also falls within the scope of the
Audit and Risk Committee’s Terms of Reference.
The Audit and Risk Committee was made up of three (3) Non-Executive Directors, viz Paul Muscat
(Chairman), James Dunbar Cousin together with Aurelio Theuma. The Company Secretary acts as
Secretary to the Audit and Risk Committee.
In terms of Capital Markets Rule 5.117 both Paul Muscat and Aurelio Theuma are competent in Accounting
and/or Auditing on the basis that they are both Certified Public Accountants. Furthermore, in terms of
Capital Markets Rule 5.118, James Dunbar Cousin and Paul Muscat, are considered by the Board to be
independent given that they are free from any business, family or other relationship with the Company or
its management in a manner that may create a conflict of interest such as to impair their judgement.
During the period under review the Audit and Risk Committee met seven (7) times. While the external
auditors are invited to attend, the Chief Internal Audit Officer and/or Head Internal Audit attend these
meetings in terms of Capital Markets Rule 5.131 and has a direct access to the Chairman of the Audit and
Risk Committee at all times. The Head of Risk also attends these meetings. It is within the discretion of
the Audit and Risk Committee members to invite any other official of the Company to attend any Committee
meeting as they deem fit. The Chairman of the Audit and Risk Committee also met up with the Chief
Internal Audit Officer regularly.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
23
ASSETS AND LIABILITIES COMMITTEE
Membership of this Committee is made up of a non-Executive Director, the Chief Executive Officer and the
Chief Finance Officer and chaired by the Executive Director. Its main objective is to manage risks and
maximise returns by efficient and judicious management of the Company’s assets and liabilities. A senior
official of the Finance Department acts as a secretary to the Committee.
REMUNERATION COMMITTEE
The Remuneration Committee is made up of 4 Directors with Paul Muscat acting as Chairman.
The report by the Remuneration Committee in terms of Code Provision 8.A.4 is presented on pages 27 to
page 30. The Chief Executive Officer attends the Remuneration Committee meetings when requested to
do so and the Company Secretary acts as secretary to this Committee.
PRINCIPLES 9 AND 10: RELATION WITH SHAREHOLDERS AND WITH THE MARKET AND
INSTITUTIONAL SHAREHOLDERS
The Company is cognisant of the importance of maintaining effective and on-going dialogue with its
shareholders as well as the market generally. It does so by issuing company announcements and press
releases from time to time on matters which are considered important, and which may affect the Company.
The announcement of the half-yearly results, as well as the annual results together with the interim
Directors' statements are uploaded on the Company’s website and that of the Malta Stock Exchange as
are all the other company announcements issued. Additionally, the Company’s website
(www.maltapost.com) contains relevant information about the Company.
The Company also communicates with its members through the Annual General Meeting during which
shareholders are requested to consider the Annual Financial Report and Accounts, the declaration of a
dividend (if any), the election of Directors, Directors’ remuneration, the appointment of external auditors
and the Board’s authorisation to set the auditors’ fees. Extraordinary General Meetings are held as and
when necessary, in conformity with both the Company’s statute as well as the Companies Act (Cap. 386).
All Directors attend the General Meetings and are available to answer questions if necessary.
PRINCIPLE 11: CONFLICTS OF INTEREST
While Directors are aware of their duty and responsibility to act in the best interests of the Company at all
times, policies and procedures are in place to ensure that Directors effectively manage any conflicts of
interest, whether actual or potential, in the best interest of the Company.
Specifically, the Company’s Memorandum and Articles of Association as well as the Directors’ Charter
regulate the behaviour of a director in the event of a potential conflict of interest.
Furthermore, the Company’s Code of Conduct for dealings in securities and which has been adopted and
implemented in conformity with The Market Abuse Laws and Regulations, sets out the obligations of a
director when it comes to dealing in any of the Company’s securities.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
24
The Directors’ interest in the Share Capital of the Company as at 30 September 2023 was as follows:
Shares held
Eugenio Farrugia 1,082 Ordinary Shares
Aurelio Theuma 5,292 Ordinary Shares
Joseph Said, who is a Director of the Company, is also a director of the following companies, which as at
30 September 2023 had the following shareholding in the Company:
Shares held
First Gemini p.l.c. 75,350 Ordinary Shares
Safaco Limited 92,774 Ordinary Shares
In addition, Joseph Said has a minority shareholding in Safaco Limited.
PRINCIPLE 12: CORPORATE SOCIAL RESPONSIBILITY
Fully conscious of the responsibility towards the society in which it operates, MaltaPost p.l.c. not only
encourages healthy and balanced lifestyles for its employees, but also seeks to promote environment
friendly initiatives particularly those which reduce the Company’s overall carbon footprint. Significant
investment has been made in this area and the intention is to continue with this investment.
The Company also encourages and promotes philanthropic initiatives towards disadvantaged groups and
the intention is to continue in this direction.
MaltaPost p.l.c., therefore, is not only committed to be in full compliance with its legal obligations in this
regard but go well beyond this in pursuit of its social obligations.
B. NON-COMPLIANCE WITH THE CODE
PRINCIPLE 4: RESPONSIBILITIES OF THE BOARD
Code Provision 4.2.7 provides for the development of a succession policy for the future composition of the
Board. Given that it is the prerogative of the shareholders of MaltaPost p.l.c. to elect directors to represent
them and this in accordance with the Company’s Memorandum and Articles of Association, and the Maltese
Companies Act (Cap. 386) it has not been considered appropriate to develop a succession policy for the
future composition of the Board. However, the recommendation to have a policy in place will be kept under
review.
PRINCIPLE 7: EVALUATION OF BOARD’S PERFORMANCE
The Company Secretary arranges for a “Board Effectiveness Questionnaire” which is completed by each
Board Member and the findings are analysed by him in liaison with the Chairman. Similarly, an
“Effectiveness Questionnaire” is also arranged for the Audit and Risk Committee, by the Company
Secretary in liaison with the Chairman. Findings are discussed and acted upon as appropriate.
PRINCIPLE 8: NOMINATION COMMITTEE
This Principle provides for a Nomination Committee to cater for a formal and transparent procedure for the
appointment of new directors to the Board. Such a committee has not been set up given that it is the
prerogative of the shareholders of the Company, in accordance with the relative Memorandum and Articles
of Association, to appoint directors to the Board.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
25
The Articles of Association of the Company provide that unless the Company in General Meeting shall
otherwise determine, the Board of Directors shall be made up of a maximum of seven (7) directors
appointed as follows:
(a) a member of the Company holding, or a number of members, who between them hold, such number
of shares having voting rights as may be sufficient to constitute one (1) or more Qualifying Holdings
(such number of shares held by a member of the Company amounting to twenty per cent (20%) of the
Issued Share Capital of the Company having voting rights) is entitled to appoint one (1) director for
every Qualifying Holding held, by letter addressed to the Company Secretary;
(b) any member who is not entitled to appoint directors in terms of the provisions of paragraph (a) above,
or who is not entitled to aggregate his holding with those of other members for the purposes of
appointing a director(s) pursuant thereto, is entitled to participate and vote in an election of directors
at the General Meeting of the Company;
(c) members who avail themselves of appointing directors pursuant to the provisions of paragraph (a)
above are still entitled to participate in the election of directors in terms of paragraph (b) provided that
in such an election they may only use such shares not otherwise used for the appointment of directors
pursuant to paragraph (a).
For an election of directors mentioned in paragraph (b) above, every shareholder entitled to vote thereunder
shall be entitled to nominate one (1) person to stand for the election of directors. Such nominee must be
seconded by at least such shareholder or shareholders as in aggregate hold at least point five per cent
(0.5%) of the Issued Share Capital of the Company between them.
In the event that there are more nominations than there are vacancies, an election amongst such
candidates shall take place for the appointment of such number of directors as will fill the vacancies
available on the Board. At an election of directors each member shall be required to vote on the ballot paper
provided by the Company by putting such number of votes against the name or names of the preferred
candidates as such member may determine, provided that in aggregate the number of votes cast cannot
exceed the number of shares held by such member. The candidates obtaining the highest number of votes
shall be elected and appointed directors.
PRINCIPLE 9: RELATIONS WITH SHAREHOLDERS AND WITH THE MARKET
Code Provision 9.3 provides for procedures to be in place to resolve conflicts between minority
shareholders and controlling shareholders. The Memorandum and Articles of Association of the Company
do not provide for a procedure to resolve such conflicts. However, the Company’s Senior Management and
the Non-Executive Directors maintain an open dialogue to cater for any such conflicts.
The Company also maintains an open channel of communication with its shareholders through the
Company Secretariat.
C. INTERNAL CONTROL (CAPITAL MARKETS RULE 5.97.4)
The Board of Directors have set up the required organisational structures in order to effectively manage
and control the operational risks which the Company undertakes in its day-to-day operations. It is
understood that whereas these risks may be mitigated by the adoption of various control systems, such
risks cannot be completely eliminated. Therefore, reasonable but not absolute assurances can be given
against material losses, error, or fraud.
The more important structures which are in place to consolidate the internal control mechanisms are the
Internal Audit Department, the Audit and Risk Committee as well as the Risk Management functions.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
26
The Company’s system of internal control includes:
(a) the Company operates through an Executive Committee led by the Chief Executive Officer with clear
reporting lines and delegation of authority. Through the Executive Committee the Company plans,
executes, controls and monitors business operations in order to achieve the set objectives;
(b) the Company is committed to the highest standards of business conduct and seeks to maintain these
standards across all its operations. Company policies and employee procedures are in place to detect,
report and resolve any fraudulent activities or any infringement of the integrity of mail;
(c) the Executive Committee is responsible to identify and evaluate key risks applicable to areas of
business. A member of this same Committee assists the Board of Directors to assess the different
types of risks identified, to which the Company is exposed. This function also monitors, on an on-going
basis, the effective management of the different types of risk at the same time as ensuring that the
Company is in full compliance with all the obligations imposed by codes, rules, legislation, and statute
relevant to the Company as well as its business;
(d) the Board, through the Audit and Risk Committee, receives periodic management reports on Risk
Management and Compliance; and
(e) the Board receives periodic management information giving comprehensive analysis of financial and
business performance including variances against the Company’s set targets.
D. GENERAL MEETINGS (CAPITAL MARKETS RULE 5.97.6)
A General Meeting is conducted in conformity with the Articles of Association of the Company and is called
by giving at least 21 days of notice.
The Ordinary Business conducted at the Annual General Meeting consists of receiving or adoption of the
Annual Financial Statement, the Declaration of a Dividend, the Appointment and Remuneration of Directors,
the Appointment of the External Auditors, as well as the Authority to the Board to fix the external Auditors’
emoluments.
All shareholders on the shareholders register on the record date as defined in the Capital Markets Rules,
have the right to attend, participate and vote at the General Meeting.
A member or members holding not less than five per cent (5%) of the voting issued share capital of the
Company may:
(a) request the Company to include items on the agenda of the General Meeting provided that each item
is accompanied by a justification or a draft resolution to be adopted at the General Meeting; and
(b) table draft resolution for items included in the agenda of a General Meeting. Such requests are to be
received by the Company at least forty-six (46) days before the date set for the relative General
Meeting.
Every person entered into the register of members shall be entitled to appoint only one (1) person to act as
proxy holder to attend and vote at a General Meeting instead of him. The proxy holder shall enjoy the same
rights to speak and ask questions in the General Meeting as those to which the member thus represented
would be entitled.
Signed on behalf of the Board of Directors on 19 December 2023 by Joseph Said (Chairman) and Aurelio
Theuma (Director) as per the Directors’ Declaration on ESEF Annual Financial Report submitted in
conjunction with the Annual Report and Financial Statements 2023.
Joseph Said
Chairman
Aurelio Theuma
Director
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
27
Remuneration Report
The Remuneration Committee is responsible to draw up a Remuneration Policy and submit it for the Board’s
consideration. In determining such policy, the Committee takes into account all factors which it deems
necessary, including the position of the Company relative to other companies in the marketplace. The
objective of such policy is to ensure that Directors and Chief Officers are provided with appropriate
incentives to encourage enhanced performance and are rewarded in a fair and responsible manner, for
their individual contributions to the success of the Company. The remuneration policy is subject to a regular
review and any amendments thereto shall, before adoption, be submitted to a General Meeting for
consideration and approval.
MEMBERSHIP AND TERMS OF REFERENCE
The following Directors of MaltaPost p.l.c. make up the Remuneration Committee: Paul Muscat (Chairman),
Eugenio Farrugia, Aurelio Theuma and David P. Attard. The Remuneration Committee is tasked with
maintaining a Remuneration Policy which ensures that MaltaPost p.l.c. attracts, retains, and motivates the
appropriate calibre of Directors, Senior Executives and Management, who are ultimately responsible for
the formulation and execution of the Company’s strategies and policies. Furthermore, the Remuneration
Committee recommends to the Board of Directors remuneration packages for all Directors and Senior
Executives.
MEETINGS
During the financial year ended 30 September 2023 the Remuneration Committee met four (4) times and
these meetings were attended by all members where the following matters were discussed:
• Review of the Guiding Principles relative to Salaries and Discretionary Bonuses awarded to
Management
• Proposed Salaries and Discretionary Bonuses
• Review of Directors’ Remuneration
REMUNERATION – DIRECTORS
The Remuneration Policy for Directors drawn up in terms of the Capital Markets Rule 12.26A was approved
at the Annual General Meeting held on the 26 February 2020. Any amendments to this Policy shall, before
adoption, be submitted to a General Meeting for consideration and approval.
The last Annual General Meeting approved the amount of seventy-five thousand euro (€75,000) as the
maximum aggregate amount by way of Directors’ Remuneration. During the same meeting, the members
approved the Remuneration Report for Directors which was a separate agenda item of the Annual General
Meeting. None of the Directors has any service contracts with the Company, and none is entitled to share
options, profit sharing, pension benefits or any other form of remuneration. No other fees were payable to
any of the Directors during the year under review, except for Graham A. Fairclough, the Company
Secretary, who received fees of € 4,000 per annum for services rendered.
Five (5) of the Directors are employees of the ultimate controlling shareholder of MaltaPost p.l.c.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
28
Remuneration Report - continued
In terms of Code Provision 8.A.5 of the Malta Financial Services Authority Capital Markets Rules, the total
emoluments received by Directors for their directorship for the financial years indicated, are specified below:
FINANCIAL YEAR
FIXED REMUNERATION
2023
€75,000
2022
€59,600
2021
€59,600
2020
€59,600
The total emoluments paid to Directors during the past four financial years were as follows:
2023
2022
2021
2020
Joseph Said
€18,000
€17,000
€17,000
€17,000
David P. Attard
€8,500
€7,100
€7,100
€7,100
James Dunbar Cousin
€10,500
€7,100
€7,100
€7,100
Graham A. Fairclough
€8,500
€7,100
€7,100
€7,100
Eugenio Farrugia
€8,500
€7,100
€7,100
€7,100
Paul Muscat
€10,500
€7,100
€7,100
€7,100
Aurelio Theuma
€10,500
€7,100
€7,100
€7,100
Total
€75,000
€59,600
€59,600
€59,600
These amounts all fell within the limits as approved by the Annual General Meetings of the respective years
being reported on.
David P. Attard and Eugenio Farrugia also serve as Directors on CIABRO Limited and PostaInsure Agency
Limited respectively, two subsidiaries of the Group.
In terms of Code Provision 8.A.5 of the Malta Financial Services Authority Capital Markets Rules, during
financial year 2022/2023, the Executive Director was paid by the parent company, who in turn recharged
MaltaPost €116,000 (2022: €109,000) for his role. The total emoluments received by the Chief Executive
Officer for this financial year amounted to €120,000 (2022: €111,000).
There is no formal provision for the reclamation of any variable remuneration related to the previous
financial year/s. The remuneration levels for Financial Year 2023 comply with the provisions of the approved
Remuneration Policy for Directors.
REMUNERATION - SENIOR EXECUTIVES
All references to ‘Senior Executives’ in this report refer specifically to the Chief Officers of MaltaPost p.l.c.
It falls within the Terms of Reference of the Remuneration Committee to recommend to the Board of
Directors the appropriate remuneration packages for Senior Executives. In so doing, the Committee is
mindful of the need to attract, retain and motivate Senior Executives with the qualities and attributes that
enable them to discharge their obligations professionally and with utmost integrity. The Remuneration
Committee also seeks to maintain a sense of fairness and consistency in its recommendations. In this
connection, it is to be mentioned that there were no material changes to the Remuneration Policy for Senior
Executives during the financial year ending 30 September 2023.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
29
Remuneration Report - continued
The contracts of all Senior Officers specify their remuneration packages, none of which provide for profit
sharing or share options, supplementary pensions, or other pension benefits. All Senior Executives are on
indefinite contracts of employment.
Annual salary increases may be awarded to Chief Officers, but such increases are not directly performance
related. A discretionary annual bonus is payable to the Chief Officers following an assessment of their
individual overall performance during the previous financial year.
The Board of Directors and Chief Executive Officer agree upon pre-set quantitative and qualitative
objectives for the Chief Executive Officer and a discretionary annual bonus is payable based on the
attainment of these objectives. The Remuneration Committee considers the linkage between the fixed
remuneration and the discretionary annual bonus to be appropriate.
In terms of Code Provision 8.A.5 of the Malta Financial Services Authority Capital Markets Rules, the total
emoluments received by Senior Executives during the financial year are as detailed below:
FINANCIAL YEAR
FIXED REMUNERATION
VARIABLE REMUNERATION
OTHERS
2023
€293,000
€17,500
See below*
2022
€269,000
€18,000
See below*
2021
€222,000
€18,000
See below*
2020
€234,000
€18,000
See below*
During the Financial Year 2022, the number of Chief Officers increased from 3 to 4. There were 5 Chief
Officers serving during the financial year 2020, two of whom were only in employment for part of the
financial year.
* Senior Executives are covered by a group life assurance scheme and are entitled to health insurance,
communication expenses as well as the use of company car or car allowance.
The foregoing Remuneration Report is being put forward to an advisory vote of the 2024 Annual General
Meeting in accordance with the requirements of the Malta Financial Services Authority Capital Markets
Rule 12.26 L.
Other information on remuneration in terms of Appendix 12.1 of the Capital Markets Rules
In terms of the requirements established by Appendix 12.1 of the Capital Markets Rules, the following table
presents the annual changes made in the remuneration packages when compared to the Company’s
performance over the last four financial years. The non-executive Company’s Directors have been excluded
from the table below since they have a fixed fee as described in Section B above. The average
remuneration of the employees is based on a full-time equivalent basis, excluding the Executive Director
and Chief Executive Officer (CEO).
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
30
Remuneration Report - continued
2023
2022
2021
2020
Change
€000
€’000
€’000
€’000
%
%
%
Group
Average employee
remuneration
(excluding Executive Director
and CEO)
23
21
20
19
10
5
5
3
Executive Director and CEO
remuneration
236
220
209
201
7
5
4
Group performance – Profit
Before Tax
2,318
637
2,350
2,780
264
(73)
(16)
Company
Average employee
remuneration
(excluding Executive Director
and CEO)
23
22
21
20
10
5
5
3
Executive Director and CEO
remuneration
236
220
209
201
7
5
4
Company performance – Profit
Before Tax
2,575
1,007
2,582
2,912
156
(61)
(11)
The performance of the Group and the Company is measured on a “profit before tax” basis, as management
has determined that it is the best measure of direct performance.
The contents of the Remuneration Report have been reviewed by PricewaterhouseCoopers, the external
auditors, to ensure that the information required in terms of Appendix 12.1 of Chapter 12 of the Capital
Markets Rules have been included.
This Remuneration Report was approved by the Board of Directors at the Board Meeting held on the 19
December 2023.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
31
Company information
Vision Statement
To be Malta
Mission Statement
To exceed customers' expectations by providing high quality, cost-effective logistical and diversified
services.
Company Registration Number: C22796
Registered Office:
Tel: (+356) 2122 4421
Fax: (+356) 2122 6368
Freephone: (+356) 80072244
Email: info@maltapost.com
www.maltapost.com
Registered shareholders with five per cent (5%) or more of the Share Capital of the Company:
30 September 2023
13 November 2023
Redbox Limited
72%
72%
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
32
BOARD OF DIRECTORS
Joseph Said (Chairman)
David P. Attard
James Dunbar Cousin
Graham A. Fairclough
Eugenio Farrugia
Paul Muscat
Aurelio Theuma
COMPANY SECRETARY
Graham A. Fairclough
CHIEF OFFICERS
Joseph Gafa`
Chief Executive Officer
Carmen Ellul
Chief Internal Audit Officer
Ian Lucas
Chief Financial Officer
Adrian Vassallo
Chief Operating Officer
HEADS OF DEPARTMENTS
Edwin Abdilla
Mail Services
Johan Attard
Finance - Management and Regulatory Accounts
David Borg
Corporate Security
Lara Bugeja
Malta Postal Museum Curator
Antoinette Camilleri
Corporate Office & Investors Relations
Stefania Camilleri
Human Resources
Stefan J. Camilleri
Health and Safety
Charles Cilia
Commercial
John Cremona
Support Services
Paul Curmi
Document Management Services
Mario Farrugia
Retail and Insurance Services
Andrew Harrison
Risk and ESG
Steffan Galea
Digital Solutions and Strategy
Albert Gouder
Marketing
Darren Micallef
Finance - Financial Accounts and Control
Joswill Micallef
IT Support
Patrick Polidano
Quality Assurance
Mauro Portelli
Legal and Compliance
Kenneth Spiteri
Business Process Design
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
33
Statements of financial position
Group
Company
As at 30 September
Notes
2023
2022
2023
2022
€’000
€’000
€’000
€’000
ASSETS
Non-current assets
Property, plant and equipment
4
22,627
22,627
Right-of-use assets
5
1,661
1,343
Intangible assets
6
1,232
1,102
Investment in subsidiaries
7
-
-
416
416
Investment in associate
8
2,875
1,875
Financial assets at fair value through other
comprehensive income
9
2,265
2,529
Deferred tax asset
10
270
254
Total non-current assets
31,346
30,146
Current assets
Inventories
11
750
666
Trade and other receivables
12
8,297
10,622
Current tax asset
636
273
Deposits with financial institutions
13
2,500
3,000
Cash and cash equivalents
14
3,241
4,788
Business of insurance accounts
14
18
-
Total current assets
15,442
19,349
Total assets
46,788
49,495
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
34
Statements of financial position - continued
Group
Company
As at 30 September
Notes
2023
2022
2023
2022
€’000
€’000
€’000
€’000
EQUITY AND LIABILITIES
Capital and reserves
Share capital
15
9,689
9,414
Share premium
15
8,292
7,367
Other reserves
16
3,699
3,731
Retained earnings
7,910
7,222
Total equity attributable to equity
holders of the Company
29,590
27,734
Non-controlling interest
-
-
Total equity
29,590
27,734
Non-current liabilities
Deferred tax liability
10
1,299
1,299
Lease liabilities
17
1,429
1,107
Provision for liabilities and charges
18
908
1,153
Total non-current liabilities
3,636
3,559
Current liabilities
Lease liabilities
17
301
266
Provision for liabilities and charges
18
126
152
Trade and other payables
19
13,135
17,784
Total current liabilities
13,562
18,202
Total liabilities
17,198
21,761
Total equity and liabilities
46,788
49,495
The accompanying notes are an integral part of these financial statements
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
35
Income statements
Group
Company
Year ended 30 September
Notes
2023
2022
2023
2022
€’000
€’000
€’000
€’000
Revenue
20
39,049
31,133
Employee benefits expense
22
(15,059 )
(15,425 )
(14,811)
(15,243)
Depreciation and amortisation expense
21
(1,974 )
(1,825 )
(1,915)
(1,799)
Other expenses
21
(20,053 )
(13,552 )
(19,910)
(13,408)
Other income
23
108
254
Operating profit
2,521
937
Share of results of associate
8
(368 )
(423 )
-
-
Finance costs
17
(59 )
(49 )
(59)
(49)
Finance income
24
113
119
Profit before tax
2,575
1,007
Tax expense
25
(435 )
(351 )
(381)
(329)
Profit for the year
2,194
678
Attributable to:
Owners of the Company
2,194
678
Non-controlling interest
-
-
2,194
678
Earnings per share
27
€0.020
€0.004
Following the share split effected during the year (Note 15), the total number of shares in issue as at 30
September 2023 increased from 37,654,720 to 77,512,020. In view of this the basic and diluted earnings
per share for the year ended 30 September 2022 have been restated from €0.01 to €0.004.
The accompanying notes are an integral part of these financial statements
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
36
Statements of comprehensive income
Group
Company
Year ended 30 September
Notes
2023
2022
2023
2022
€’000
€’000
€’000
€’000
Comprehensive income
Profit for the year
2,194
678
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss
Financial assets at fair value through
other comprehensive income:
Losses from changes in fair value
9
(132 )
(337 )
(132)
(337)
Items that will not be reclassified to profit
or loss
Remeasurements of defined benefit
obligations
18
159
262
Income tax relating to components of
other comprehensive income:
Remeasurements of defined benefit
obligations
10
(59 )
(92 )
(59)
(92)
Total other comprehensive income for
the year
(32 )
(167 )
(32)
(167)
Total comprehensive income for the
year
2,162
511
The accompanying notes are an integral part of these financial statements
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
37
Statements of changes in equity
Group
Attributable to owners of the Company
Non-
Share
Share
Other
Retained
controlling
Total
Notes
capital
premium
reserves
earnings
Total
interest
equity
€’000
€’000
€’000
€’000
€’000
€’000
€’000
Balance at 1 October 2021
Comprehensive income
Profit for the year
Other comprehensive income
Financial assets at fair value
through other comprehensive
income:
Losses from changes in fair
value
9
(337 )
(337 )
(337 )
Remeasurements of defined
benefit obligation, net of
deferred tax
10,18
Total other comprehensive
income
(167 )
(167 )
(167 )
Total comprehensive income
(167 )
Transactions with owners in
their capacity as owners
Distributions to owners:
Dividends paid to equity
holders
28
(1,506 )
(1,506 )
(1,506 )
Total transactions with owners in
their capacity of owners
(1,506 )
(1,506 )
(1,506 )
Balance at 30 September 2022
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
38
Statements of changes in equity - continued
Group
Attributable to owners of the Company
Non-
Share
Share
Other
Retained
controlling
Total
Notes
capital
premium
reserves
earnings
Total
interest
equity
€’000
€’000
€’000
€’000
€’000
€’000
€’000
Balance at 1 October 2022
Comprehensive income
Profit for the year
Other comprehensive income
Financial assets at fair value
through other comprehensive
income:
Losses from changes in fair
value
9
(132 )
(132 )
(132 )
Remeasurements of defined
benefit obligation, net of
deferred tax
Total other comprehensive
income
(32 )
(32 )
(32 )
Total comprehensive income
(32 )
Transactions with owners in
their capacity as owners
Distributions to owners:
Dividends paid to equity
holders
28
(1,506 )
(1,506 )
(1,506 )
Changes in ownership interest
that do not result in loss of
control
Increase in share capital
Total transactions with owners in
their capacity of owners
(1,506 )
(306 )
(306 )
Balance at 30 September 2023
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
39
Statements of changes in equity - continued
Company
Share
Share
Other
Retained
Notes
capital
premium
reserves
earnings
Total
€’000
€’000
€’000
€’000
€’000
Balance at 1 October 2021
9,414
7,367
3,898
8,050
28,729
Comprehensive income
Profit for the year
-
-
-
678
678
Other comprehensive income
Financial assets at fair value through
other comprehensive income:
Losses from changes in fair value
9
-
-
(337)
-
(337)
Remeasurements of defined benefit
obligation, net of deferred tax
10,18
-
-
170
-
170
Total other comprehensive income
-
-
(167)
-
(167)
Total comprehensive income
-
-
(167)
678
511
Transactions with owners in their
capacity as owners
Distributions to owners:
Dividends paid to equity holders
28
-
-
-
(1,506)
(1,506)
Total transactions with owners in their
capacity as owners
-
-
-
(1,506)
(1,506)
Balance at 30 September 2022
9,414
7,367
3,731
7,222
27,734
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
40
Statements of changes in equity - continued
Company
Share
Share
Other
Retained
Notes
capital
premium
reserves
earnings
Total
€’000
€’000
€’000
€’000
€’000
Balance at 1 October 2022
9,414
7,367
3,731
7,222
27,734
Comprehensive income
Profit for the year
-
-
-
2,194
2,194
Other comprehensive income
Financial assets at fair value through
other comprehensive income:
Losses from changes in fair value
9
-
-
(132)
(132)
Remeasurements of defined benefit
obligation, net of deferred tax
10,18
-
-
100
100
Total other comprehensive income
-
-
(32)
(32)
Total comprehensive income
-
-
(32)
2,194
2,162
Transactions with owners in their
capacity as owners
Distributions to owners:
Dividends paid to equity holders
28
-
-
-
(1,506)
(1,506)
Changes in ownership interest that do
not result in loss of control
Increase in share capital
275
925
-
-
1,200
Total transactions with owners in their
capacity as owners
275
925
-
(1,506)
(306)
Balance at 30 September 2023
9,689
8,292
3,699
7,910
29,590
The accompanying notes are an integral part of these financial statements
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
41
Statements of cash flows
Group
Company
Year ended 30 September
Note
2023
2022
2023
2022
€’000
€’000
€’000
€’000
Cash flows from operating activities
Cash from customers
41,293
31,377
Cash paid to suppliers and employees
(42,696 )
(33,160 )
(40,095)
(29,680)
Cash flows attributable to funds collected
on behalf of third parties
744
618
Cash generated from operating activities
1,942
2,315
Income tax paid
(818 )
(1,364 )
(818)
(1,362)
Net cash generated from operating
activities
1,124
953
Cash flows from investing activities
Interest charges on lease liabilities
(59 )
(49 )
(59)
(49)
Interest received
107
126
Purchase of property, plant and equipment
(1,056 )
(1,515 )
(1,056)
(1,325)
Purchase of intangible assets
(700 )
(557 )
(700)
(558)
Purchase of investment in associate
(1,000 )
(1,000)
-
Proceeds from disposals/redemptions of
financial assets at fair value through other
comprehensive income
132
26
Maturity of deposits with financial institutions
2,500
6,000
Placement of deposits with financial
institutions
(2,000 )
(2,800 )
(2,000)
(2,800)
Net cash (used in)/from investing activities
(2,076 )
(2,076)
1,420
Cash flows from financing activities
Principal element of lease payments
(278 )
(290 )
(278)
(290)
Dividends paid
(299 )
(1,501 )
(299)
(1,501)
Net cash used in financing activities
(577 )
(1,791 )
(577)
(1,791)
Net movement in cash and cash
equivalents
(1,150 )
(1,529)
582
Cash and cash equivalents at
beginning of year
4,788
4,206
Cash and cash equivalents at end of year
14
3,259
4,788
The accompanying notes are an integral part of these financial statements
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
42
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
43
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
44
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
45
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
46
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
47
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
48
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
49
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
50
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
51
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
52
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
53
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
54
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
55
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
56
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
57
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
58
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
59
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
60
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
61
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
62
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
63
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
64
4. Property, plant and equipment - continued
Company
Improvements
Fixtures,
Land and
to leasehold
furniture
Motor
buildings
properties
and fittings
Equipment
vehicles
Total
€’000
€’000
€’000
€’000
€’000
€’000
At 1 October 2021
Cost or valuation
17,775
1,451
6,750
6,218
815
33,009
Accumulated depreciation
-
(859)
(3,898)
(5,614)
(464)
(10,835)
Net book amount
17,775
592
2,852
604
351
22,174
Year ended
30 September 2022
Opening net book amount
17,775
592
2,852
604
351
22,174
Additions
265
28
239
295
558
1,385
Disposals and write-offs
-
-
(4)
-
-
(4)
Depreciation
(69)
(130)
(273)
(256)
(204)
(932)
Depreciation released on
disposals and write-offs
-
-
4
-
-
4
Closing net book amount
17,971
490
2,818
643
705
22,627
At 30 September 2022
Cost or valuation
18,040
1,479
6,985
6,513
1,373
34,390
Accumulated depreciation
(69)
(989)
(4,167)
(5,870)
(668)
(11,763)
Net book amount
17,971
490
2,818
643
705
22,627
Year ended
30 September 2023
Opening net book amount
17,971
490
2,818
643
705
22,627
Additions
3
8
205
189
680
1,085
Disposals and write-offs
-
-
-
-
(24)
(24)
Depreciation
(73)
(129)
(258)
(268)
(357)
(1,085)
Depreciation released on
disposals and write-offs
-
-
-
-
24
24
Closing net book amount
17,901
369
2,765
564
1,028
22,627
At 30 September 2023
Cost or valuation
18,043
1,487
7,190
6,702
2,029
35,451
Accumulated depreciation
(142)
(1,118)
(4,425)
(6,138)
(1,001)
(12,824)
Net book amount
17,901
369
2,765
564
1,028
22,627
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
65
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
66
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
67
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
68
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
69
6. Intangible assets - continued
Company
Computer
software
€’000
At 1 October 2021
Cost
2,077
Accumulated amortisation
(1,033)
Net book amount
1,044
Year ended 30 September 2022
Opening net book amount
1,044
Additions
629
Amortisation
(571)
Closing net book amount
1,102
At 30 September 2022
Cost
2,706
Accumulated amortisation
(1,604)
Net book amount
1,102
Year ended 30 September 2023
Opening net book amount
1,102
Additions
667
Amortisation
(537)
Closing net book amount
1,232
At 30 September 2023
Cost
3,373
Accumulated amortisation
(2,141)
Net book amount
1,232
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
70
MALTAPOST p.l.c.
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71
MALTAPOST p.l.c.
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72
MALTAPOST p.l.c.
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73
MALTAPOST p.l.c.
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74
MALTAPOST p.l.c.
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75
MALTAPOST p.l.c.
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76
MALTAPOST p.l.c.
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77
MALTAPOST p.l.c.
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78
MALTAPOST p.l.c.
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79
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
80
MALTAPOST p.l.c.
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81
MALTAPOST p.l.c.
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82
MALTAPOST p.l.c.
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83
MALTAPOST p.l.c.
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84
MALTAPOST p.l.c.
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85
MALTAPOST p.l.c.
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86
MALTAPOST p.l.c.
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87
MALTAPOST p.l.c.
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88
Five-year summary
Accounting ratios
01/10/22
01/10/21
01/10/20
01/10/19
01/10/18
to
to
to
to
to
30/09/23
30/09/22
30/09/21
30/09/20
30/09/19
%
%
%
%
%
Gross profit margin
18.87
16.54
18.32
21.64
21.04
Operating profit margin
6.46
3.02
6.65
8.29
8.03
Operating profit to total assets
5.39
1.91
4.88
6.07
6.43
Operating profit to capital employed
8.52
3.41
8.69
10.35
10.30
Profit before tax to total equity
8.70
3.64
8.99
10.67
11.01
Profit after tax to total equity
7.41
2.40
5.68
6.98
7.21
30/09/23
30/09/22
30/09/21
30/09/20
30/09/19
Shares in issue of €0.25 each (‘000s)
-
37,655
37,655
37,655
37,655
Shares in issue of €0.125 each (‘000s)
76,6758
-
-
-
-
Net assets per share (€ cents)
38
74
76
72
72
Earnings per share (€ cents)
2
2
4
5
5
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
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MALTAPOST p.l.c.
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90
Supplementary information
MaltaPost p.l.c. Post Offices
HEAD OFFICE - MARSA
305, Qormi Road,
Marsa, MTP 1001
ATTARD
MARSASKALA
SLIEMA
1, John Paul II Square,
Attard, ATD 2200
St Anthony Street,
Marsaskala, MSK 9058
42, Rudolph Street,
Sliema, SLM 1275
BIRKIRKARA
MELLIEĦA
58, Valley Road,
Birkirkara, BKR 9013
100, New Mill Street,
Mellieħa, MLĦ 1107
39, Sir Adrian Dingli Street,
Sliema, SLM 1902
BIRŻEBBUĠA
MOSTA
SWIEQI
48, Żarenu Dalli Street,
Birżebbuġa, BBG 1522
Civic Centre, Constitution Street,
Mosta, MST 9059
Civic Centre, G. Bessiera Street,
Swieqi, SWQ 2261
BORMLA
MSIDA
VALLETTA
Block 14, Fuq San Pawl,
Bormla, BML 1910
University Campus,
Msida, MSD 2080
1, Dar Annona, Castille Square,
Valletta, VLT 1060
FGURA
NADUR
419, Zabbar Road,
Fgura, FGR 1018
13, North Street,
Nadur, NDR 1220
75, Old Bakery Street,
Valletta, VLT 1456
FLORIANA
NAXXAR
Malta Postal Museum,
15A, San Kalċidonju Square,
Floriana, FRN 1533
Civic Centre, 21st September Avenue,
Naxxar, NXR 1018
135, Archbishop Street,
Valletta, VLT 1444
GĦAJNSIELEM
PAOLA
J. F. De Chambrai Street,
Għajnsielem, GSM 1051
Civic Centre, Antoine de Paule Square,
Paola, PLA 1266
25, South Street,
Valletta, VLT 1102
GĦARB
PIETA’
VICTORIA
Visitation Street,
Għarb, GRB 1044
Gwardamanga Hill,
Pieta’, PTA 1310
5, Sir Adrian Dingli Street,
Victoria, VCT 1441
GŻIRA
QORMI
XAGĦRA
21, Meme’ Scicluna Square,
Gżira, GZR 1120
343, Victory Street,
Qormi, QRM 2504
132, Race Course Street,
Xagħra, XRA 2013
ĦAMRUN
RABAT
ŻABBAR
18, Old Railway Street,
Ħamrun, ĦMR 1900
Civic Centre, St. Rita Street,
Rabat, RBT 1526
Civic Centre, Convent Street,
Żabbar, ZBR 1351
KALKARA
SAN ĠILJAN
ŻEBBUĠ
SmartCity Malta,
Building SCM 01 Level G,
Ricasoli, Kalkara, SCM 1001
Paceville Street,
Paceville,
San Ġiljan, STJ 3103
37, Sciortino Street,
Żebbuġ, ZBG 1962
LUQA
SAN ĠWANN
ŻEJTUN
11, Dun Ġulju Muscat Street,
Luqa, LQA 1450
95, Naxxar Road,
San Ġwann, SGN 9031
19, Gregorio Bonici Square
Żejtun, ZTN 1051
Malta International Airport,
M.I.A. Hall, Luqa, LQA 5001
SAN PAWL IL-BAĦAR
ŻURRIEQ
6, Dolmen Street,
Buġibba, San Pawl il-Baħar, SPB 2400
75, Main Street,
Żurrieq, ZRQ 1317
511, St Paul Street,
San Pawl il-Baħar , SPB 3416
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
91
MaltaPost p.l.c. Sub-Post Offices
BAĦAR IĊ-ĊAGĦAQ
MELLIEĦA
SIĠĠIEWI
Allstat Stationery,
51,
Many Things Stationery,
Lampara Street,
G. Borġ Olivier Street,
Old Church Street,
Baħar iċ-Ċagħaq, NXR 5134
Mellieħa, MLH 1024
Siġġiewi, SGW 1704
BALZAN
MGARR
SLIEMA
Steve Stationery
Universal Stationery,
Papier, Piazzetta,
Dun Spir Sammut Steet
22, Ras il-Gebel Street,
Tower Road,
Balzan, BZN 1020
Zebbiegh, l-iMgarr, MGR 2021
Sliema, SLM 1605
BIRKIRKARA
MQABBA
SAN PAWL IL BAHAR
84, Landau Stationery,
12, Alessio’s Old Cottage,
Exclusive Stationery
Dun Gejtanu Mannarinu Street,
Parish Street,
27 Dawret il Gzejjer
Birkirkara, BKR 9085
Mqabba, MQB 1511
San Pawl il Bahar SPB2502
GĦARGĦUR
NAXXAR
TARXIEN
Aquavel,
Zaky’s,
16/17, Forex,
St Bartholomew Street,
St Publius Street,
Market Square,
Għargħur, GHR 1014
San Pawl tat-Tarġa, NXR 1490
Tarxien, TXN 1951
GĦASRI
QRENDI
ŻURRIEQ
Kunsill Lokali Għasri,
Papel Stationery,
Pinpoint Stationery,
6, Dun Karm Caruana Street,
Għasri, GSR 1021
Qrendi, QRD 1701
57, Independence Avenue,
Żurrieq, ZRQ 2339
MARCHAMS
SAN ĠILJAN
4,Wesgha Bir Id Deheb
Ghaxaq GXQ1651
Papier, Level 0, Spinola Park,
Mikielang Borg Street
San Giljan SPK1000
KALKARA
SAN ĠWANN
1, Troy DVD Rentals,
6, S.G.S.,
Triq il Kappucini ,
Felic Borg Street,
Kalkara, KKR 1510
San Ġwann, SGN 2040
KERĊEM
SAN LAWRENZ
Kercem Local Council,
22A, San Lawrenz Local Council,
Orvieto Square
Kercem, KCM 1360
Our lady of Sorrows Street,
San Lawrenz, SLZ 1261
MARSASKALA
SANTA LUCIJA
Needz Stationery,
Willand Bargain Store,
Vajrita Street,
Dun M. Mifsud Street,
Marsakala, MSK 3325
Santa Luċija, SLC 1441
MARSAXLOKK
SANTA VENERA
Old Trafford Stationery,
C@C,
47, Arznell Street,
Fleur-De-Lys Junction,
Marsaxlokk, MXK 1401
Santa Venera, SVR 1580
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2023
92
Collection of postal articles from public letterboxes is held as follows (exceptions may apply as announced
to the public in agreement with the Malta Communications Authority).
- Monday - Friday 17:15 hrs
- Saturday 12:30 hrs
(except public holidays)
Delivery of postal articles generally commences as from 07:00 hrs and ends in accordance with operational
exigencies.
Further information on products and services, including prices and a full list of letterboxes and stamp
vendors, may be found on the Company’s website on www.maltapost.com or by request from the Post
Offices or from the Customer Care Department on (+356) 21224421.
The postal schemes which deal with a number of postal services may also be located and downloaded from
the website or available upon request from the Post Offices or Customer Care. During the year under
review, Customer complaints accounted for 0.006% of all mail items handled.
Independent auditor’s report
To the Shareholders of MaltaPost p.l.c.
Report on the audit of the financial statements
Our opinion
In our opinion:
· The Group financial statements and the Parent Company financial statements (the “financial statements”) of MaltaPost p.l.c. give a true and fair view of the Group and the Parent Company’s financial position as at 30 September 2023, and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted by the EU; and
· The financial statements have been prepared in accordance with the requirements of the Maltese Companies Act (Cap. 386).
Our opinion is consistent with our additional report to the Audit Committee.
What we have audited
MaltaPost p.l.c.’s financial statements comprise:
· the Consolidated and Parent Company statements of financial position as at 30 September 2023;
· the Consolidated and Parent Company income statements and statements of comprehensive income for the year then ended;
· the Consolidated and Parent Company statements of changes in equity for the year then ended;
· the Consolidated and Parent Company statements of cash flows for the year then ended; and
· the notes to the financial statements, which include significant accounting policies and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and the Parent Company in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) together with the ethical requirements of the Accountancy Profession (Code of Ethics for Warrant Holders) Directive issued in terms of the Accountancy Profession Act (Cap. 281) that are relevant to our audit of the financial statements in Malta. We have fulfilled our other ethical responsibilities in accordance with these Codes.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the parent company and its subsidiaries are in accordance with the applicable law and regulations in Malta and that we have not provided non-audit services that are prohibited under Article 18A of the Accountancy Profession Act (Cap. 281).
The non-audit services that we have provided to the parent company and its subsidiaries, in the period from 1 October 2022 to 30 September 2023, are disclosed in note 21 to the financial statements
Our audit approach
Overview
|
|
· Overall group materiality: €116,000, which represents 5% of profit before tax |
|
· The Parent Company and its three subsidiaries are based in Malta, and the financial statements of these entities have been audited by our audit team. · Our audit scope addresses 100% of Group revenues and Group profit before tax.
|
|
|
· Risk of fraud in revenue recognition |
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.
|
Overall group materiality |
€116,000 |
|
How we determined it |
5% of profit before tax |
|
Rationale for the materiality benchmark applied |
We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by users and is a generally accepted benchmark. We chose 5% which is within the range of quantitative materiality thresholds that we consider acceptable. |
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above €11,600 as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
|
Key audit matter |
How our audit addressed the Key audit matter |
|
Risk of fraud in revenue recognition` ISA 240 presumes that there is a risk of material misstatement due to fraud related to revenue recognition and requires the auditor to treat this assessed risk of material misstatement due to fraud as a significant risk, thus requiring special audit consideration.
This comprises the risk that sales revenue is misstated due to fraud as individuals may have incentive to manipulate revenue, and hence results. The risk of fraud in revenue recognition includes the risk that sales revenue is not recognised in accordance with IFRS 15 requirements, and that revenue is not completely or accurately reflected, or that fictitious sales revenue is recorded or that the cut-off point at which risks and rewards are transferred is not correctly reflected in the financial statements.
The Parent Company’s revenue consists of revenue from retail sales, comprising sale of stamps, philatelic sales, sale of non-postal stationery and provision of non-postal services, and sales from terminal dues, consisting of remuneration for processing and delivering postal items received from other territories.
Terminal dues are invoiced on a quarterly basis in arrears on the basis of volume data accumulated throughout the respective quarter. Accordingly, the risk of fraud in revenue recognition in respect of terminal dues is principally attributable to the unbilled revenue at year end in respect of the last quarter of the financial year.
Revenue from retail sales is attributable to a large volume of low value transactions handled through an operational retail system in an automated manner, whereby inventory items are updated with sales taking into account standing data in respect of unit prices. In this respect, the risk of fraud in revenue recognition is mainly in respect of the output of the operational retail system not being properly reflected within the accounting system.
Refer to accounting policy 1.18 and Note 20 of the financial statements
|
We confirmed our understanding and evaluation of the Parent Company’s control processes and procedures in respect of revenue recognition, including IT and system controls.
Specifically, in respect of revenue from retail sales, we evaluated the relevant systems and the design of controls, and tested the operating effectiveness of automated and non-automated controls over the: · capture and recording of revenue transactions comprising products or services supplied to customers; · authorisation of price changes and updating this information within the operational retail system; and · calculation of amounts invoiced to customers. Accordingly, we validated key controls including automated control procedures in respect of the operational retail system. We tailored our final audit plan based on the results of our assessment of the control environment and operating effectiveness of such controls. We utilised computer assisted audit techniques to recalculate aggregate revenue recognised by extracting independently volume data from the operational retail system and taking into account independently sourced or verified sales prices to address accuracy and existence. We also tested reconciliations between the operational retail and accounting systems to address completeness and cut-off. We have also carried out audit procedures, comprising validation of controls and tests of detail, in respect of cash counts and stock counts covering the retail sales business.
In respect of terminal dues, we have carried out tests of detail by recalculating revenue recognised during the year on the basis of volume data accumulated over time. We have validated volume data to third party documentation or documentation duly approved by third parties. We have also validated volume data by carrying out tests such as sequence checks and other data validation tests. We have validated terminal dues rates to contractual arrangements or other supporting documentation.
We have also tested revenue recognised in respect of terminal dues within the accounting system to amounts invoiced and the subsequent receipt of payment.
In respect of this key audit matter, we found no significant exceptions in our controls testing and no material misstatements were identified in our substantive testing.
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How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
The Group’s accounting process is structured around a group finance function at its head office. Within the head office, supporting finance functions exist for each of the key business operating areas, and these report to the Group finance team as appropriate. The audit work for the Parent Company and its three subsidiaries was conducted by the same audit team in Malta. The Group audit team performed all of this work by applying the overall Group materiality, together with additional procedures performed on the consolidation. This gave us sufficient appropriate audit evidence for our opinion on the Group financial statements as a whole.
Other information
The directors are responsible for the other information. The other information comprises all of the other information in the Annual Financial Report (but does not include the financial statements and our auditor’s report thereon).
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except as explicitly stated within the Report on other legal and regulatory requirements.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors and those charged with governance for the financial statements
The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs as adopted by the EU and the requirements of the Maltese Companies Act (Cap. 386), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
· Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.
· Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
· Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
Report on compliance with the requirements of the European Single Electronic Format Regulatory Technical Standard (the “ESEF RTS”), by reference to Capital Markets Rule 5.55.6
We have undertaken a reasonable assurance engagement in accordance with the requirements of Directive 6 issued by the Accountancy Board in terms of the Accountancy Profession Act (Cap. 281) - the Accountancy Profession (European Single Electronic Format) Assurance Directive (the “ESEF Directive 6”) on the Annual Financial Report of MaltaPost p.l.c. for the year ended 30 September 2023, entirely prepared in a single electronic reporting format.
Responsibilities of the directors
The directors are responsible for the preparation of the Annual Financial Report, including the consolidated financial statements and the relevant mark-up requirements therein, by reference to Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS.
Our responsibilities
Our responsibility is to obtain reasonable assurance about whether the Annual Financial Report, including the consolidated financial statements and the relevant electronic tagging therein, complies in all material respects with the ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the requirements of ESEF Directive 6.
Our procedures included:
· Obtaining an understanding of the entity's financial reporting process, including the preparation of the Annual Financial Report, in accordance with the requirements of the ESEF RTS.
· Obtaining the Annual Financial Report and performing validations to determine whether the Annual Financial Report has been prepared in accordance with the requirements of the technical specifications of the ESEF RTS.
· Examining the information in the Annual Financial Report to determine whether all the required taggings therein have been applied and whether, in all material respects, they are in accordance with the requirements of the ESEF RTS.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the Annual Financial Report for the year ended 30 September 2023 has been prepared, in all material respects, in accordance with the requirements of the ESEF RTS.
Other reporting requirements
The Annual Financial Report and Consolidated Financial Statements 2023 contains other areas required by legislation or regulation on which we are required to report. The Directors are responsible for these other areas.
The table below sets out these areas presented within the Annual Financial Report, our related responsibilities and reporting, in addition to our responsibilities and reporting reflected in the Other information section of our report. Except as outlined in the table, we have not provided an audit opinion or any form of assurance.
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Area of the Annual Financial Report and Consolidated Financial Statements 2023 and the related Directors’ responsibilities |
Our responsibilities |
Our reporting |
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Directors’ report The Maltese Companies Act (Cap. 386) requires the directors to prepare a Directors’ report, which includes the contents required by Article 177 of the Act and the Sixth Schedule to the Act. |
We are required to consider whether the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements.
We are also required to express an opinion as to whether the Directors’ report has been prepared in accordance with the applicable legal requirements.
In addition, we are required to state whether, in the light of the knowledge and understanding of the Company and its environment obtained in the course of our audit, we have identified any material misstatements in the Directors’ report, and if so to give an indication of the nature of any such misstatements.
With respect to the information required by paragraphs 8 and 11 of the Sixth Schedule to the Act, our responsibility is limited to ensuring that such information has been provided. |
In our opinion: · the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and · the Directors’ report has been prepared in accordance with the Maltese Companies Act (Cap. 386).
We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section.
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Statement of Compliance with the Principles of Good Corporate Governance The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare and include in the Annual Financial Report a Statement of Compliance with the Code of Principles of Good Corporate Governance within Appendix 5.1 to Chapter 5 of the Capital Markets Rules. The Statement’s required minimum contents are determined by reference to Capital Markets Rule 5.97. The Statement provides explanations as to how the Company has complied with the provisions of the Code, presenting the extent to which the Company has adopted the Code and the effective measures that the Board has taken to ensure compliance throughout the accounting period with those Principles.
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We are required to report on the Statement of Compliance by expressing an opinion as to whether, in light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have identified any material misstatements with respect to the information referred to in Capital Markets Rules 5.97.4 and 5.97.5, giving an indication of the nature of any such misstatements.
We are also required to assess whether the Statement of Compliance includes all the other information required to be presented as per Capital Markets Rule 5.97.
We are not required to, and we do not, consider whether the Board’s statements on internal control included in the Statement of Compliance cover all risks and controls, or form an opinion on the effectiveness of the Company’s corporate governance procedures or its risk and control procedures. |
In our opinion, the Statement of Compliance has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority.
We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section. |
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Remuneration report The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare a Remuneration report, including the contents listed in Appendix 12.1 to Chapter 12 of the Capital Markets Rules. |
We are required to consider whether the information that should be provided within the Remuneration report, as required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets Rules, has been included. |
In our opinion, the Remuneration report has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority. |
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Other matters on which we are required to report by exception We also have responsibilities under the Maltese Companies Act (Cap. 386) to report to you if, in our opinion: · adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. · the financial statements are not in agreement with the accounting records and returns. · we have not received all the information and explanations which, to the best of our knowledge and belief, we require for our audit.
We also have responsibilities under the Capital Markets Rules to review the statement made by the directors that the business is a going concern together with supporting assumptions or qualifications as necessary. |
We have nothing to report to you in respect of these responsibilities. |
Other matter – use of this report
Our report, including the opinions, has been prepared for and only for the Parent Company’s shareholders as a body in accordance with Article 179 of the Maltese Companies Act (Cap. 386) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior written consent.
Appointment
We were first appointed as auditors of the Company on 1 May 1998. Our appointment has been renewed annually by shareholder resolution representing a total period of uninterrupted engagement appointment of 25 years. The Parent Company became listed on a regulated market on 24 January 2008.
Simon Flynn
Principal
For and on behalf of
PricewaterhouseCoopers
78, Mill Street
Zone 5, Central Business District
Qormi
Malta
19 December 2023