Easternmed Real Estate Capital PLC

Interim / Quarterly Report • Dec 30, 2022

$\frac{1}{2}$

REPORT AND INTERIM UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30
September 2022

REPORT AND INTERIM UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

CONTENTS

Board of Directors and other officers
Management Report	$2 - 3$
Unaudited consolidated statement of profit or loss and other comprehensive income	4
Unaudited consolidated statement of financial position	5
Unaudited consolidated statement of changes in equity	6
Unaudited consolidated cash flow statement
Notes to the unaudited consolidated financial statements	$8 - 25$

PAGE

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	Ioannis Papaioannou Ellie Kioupi Marcos Panteleimon Klerides Athanasios Martinos Marina Martinou Costas Neocleous Dionysios Psallidas
Company Secretary:	K and K Secretarial Limited
Independent Auditors:	Markos Drakos & Co Ltd Chartered Accountants 86 Ifigenias Street 2003 Nicosia Cyprus
Registered office:	Kyriakou Matsi 11, 8th floor, Nicosia 1082 Cyprus
Bankers:	Bank of Cyprus Public Company Ltd HSBC PIC Credit Suisse AG Natwest Bank Plc
Registration number:	HE394500

MANAGEMENT REPORT

The Board of Directors presents its report and unaudited consolidated financial statements of the Company and its subsidiaries (together with the Company, the "Group") for the period from 1 April 2022 to 30 September 2023.

Principal activity and nature of operations of the Group

The principal activity of the Group is the holding of investment properties (commercial real estate assets primarily in the office sector in the United Kingdom and Switzerland) for long-term rental yields and for capital appreciation.

Review of current position, and performance of the Group's business

The Group's development to date, financial results and position as presented in the consolidated financial statements are considered satisfactory.

Principal risks and uncertainties

The principal risks and uncertainties faced by the Group are disclosed in notes 6 and 27 of the consolidated financial statements.

The Coronavirus COVID-19 pandemic, the invation of Russia in the Ukraine and the extensive financial and other sanctions imposed to Russia and the United Kindom's withdrawal from the European Union may potentially have a wide impact on the economies and especially on the immovable property markets of the UK and Switzerland, the countries that the Group is operating in, which is difficult to predict.

This operating environment may have a significant impact on the Group's operations and financial position. Management is taking necessary measures to ensure sustainability of the Group's operations. However, the future effects of the current economic situation are difficult to predict and Management's current expectations and estimates could differ from actual results.

Future developments of the Group

The Board of Directors does not expect any significant changes or developments in the operations, financial position and performance of the Group in the foreseeable future.

Use of financial instruments by the Group

The Group is exposed to market price risk, interest rate risk, credit risk and liquidity risk from the financial instruments it holds.

Market price risk

The Group is exposed to debenture price risk because of investments held by the Group and classified on the consolidated statement of financial position at fair value through profit or loss. The Group is not exposed to commodity price risk.

The Group's debenture investments issued by two Russian banks that are traded in the Moscow Exchange are since the start of the war on 24 February 2022 not traded and are already in default of interest payments in the period under review.

Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Group's income and operating cash flows are substantially independent of changes in market interest rates as the Group has no significant interest-bearing assets. The Group is exposed to interest rate risk in relation to its borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Company's Management monitors the interest rate fluctuations on a continuous basis and acts accordingly.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to meet an obligation. Credit risk arises from contractual cash flows of debt investments carried at fair value through profit or loss (FVTPL) and deposits with banks and financial institutions, as well as credit exposures to tenants.

MANAGEMENT REPORT

Credit risk is managed on a group basis. For banks and financial institutions, the Group has established policies whereby the majority of bank balances are held with independently rated parties with a minimum rating of 'C'.

If tenants are independently rated, these ratings are used. Otherwise, if there is no independent rating, Management assesses the credit quality of the tenant, taking into account its financial position, past experience and other factors. Individual credit limits and credit terms are set based on the credit quality of the tenant in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Group has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

Share capital

There were no changes in the share capital of the Company during the period under review.

Board of Directors

The members of the Group's Board of Directors as at 30 September 2022 and at the date of this report are presented on page 1. All of them were members of the Board of Directors throughout the period from 1 April 2022 to 30 September 2023.

In accordance with the Company's Articles of Association all Directors presently members of the Board continue in office.

There were no significant changes in the assignment of responsibilities and remuneration of the Board of Directors.

Independent Auditors

The Independent Auditors, Markos Drakos & Co Ltd, have expressed their willingness to continue in office and a resolution giving authority to the Board of Directors to fix their remuneration will be proposed at the Annual General Meeting.

By order of the Board of Directors,

K and K Secretarial Limited Secretary

Nicosia, 21 December 2022

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the period from 1 April 2022 to 30 September 2022

	Note	1/04/2022- 30/09/2022 UK£	1/04/2021- 30/09/2021 UK£
Revenue	7 8	11.886.444	12.488.817
Rental expenses		(872.187)	(1.115.402)
Gross profit		11.014.257	11.373.415
Other operating income	9	105.814	2.201.432
Fair value losses on financial assets at fair value through profit or loss	10	(79.119)	119.029
Selling and distribution expenses		(4.086)	(26.139)
Administration expenses	11	(385.274)	(266.645)
Net impairment (loss)/profit on financial and contract assets		(8.424)	(20.568)
Operating profit		10.643.168	13.380.524
Finance income	12	316.658	41,971
Finance costs	12	(261.290)	(298.453)
Profit before tax		10.698.536	13.124.042
Tax	13	(1.887.280)	(2.448.338)
Net profit for the period		8.811.256	10.675.704
Other comprehensive income Exchange difference arising on the translation and consolidation of
subsidiary companies' financial statements denominated in other currency		12.189.387	(2.701.123)
Other comprehensive income for the period		12.189.387	(2.701.123)
Total comprehensive income for the period		21.000.643	7.974.581

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 September 2022

		30/09/2022	31/03/2022
	Note	UK£	UK£
ASSETS
Non-current assets
Plant and equipment		451	479
Right-of-use assets	14 15	5.422.344 615.979.648	5.454.429 598.430.300
Investment properties	16	3.149.872	3.149.872
Intangible assets
		624.552.315	607.035.080
Current assets
Trade and other receivables	17	4.749.846	3.710.661
Financial assets at fair value through profit or loss	18	10.462.881	10.541.300
Cash at bank	19	34.781.932	27.402.382
		49.994.659	41.654.343
Total assets		674.546.974	648.689.423
EQUITY AND LIABILITIES
Equity
Share capital	20	547.394.670	547.394.670
Share premium	20 21	563.124 35.879.671	563.124 23.690.284
Other reserves		23.852.449	15.041.193
Retained earnings		607.689.914	586.689.271
Total equity
Non-current liabilities
Borrowings	22	32.419.157	27.924.124
Lease liabilities	23	5.764.675	5.778.045
		38.183.832	33.702.169
Current liabilities Trade and other payables	24	5.725.858	6.369.056
Deferred income	25	1.368.379	1.554.819
Borrowings	22	17.700.020	17.708.835
Lease liabilities	23	76.471	76.465
Current tax liabilities	26	3.802.500	2.588.808
		28.673.228	28.297.983
Total liabilities		66.857.060	62.000.152
Total equity and liabilities		674.546.974	648.689.423

On 21 December 2022 the Board of Directors of Easternmed Real Estate Capital plc authorised these consolidated financial statements for issue.

Athanasios Martinos Director

Dionysios Psallidas Director

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the period from 1 April 2022 to 30 September 2022

			Non-
		Share	refundable	Translation	Retained
	Share capital	premium	advances	reserve	earnings	Tota
	UK£	UK£	UK£	UK£	UK£	Š
Balance at 1 April 2021	547.394.670	563.124		547.547	8.988.102	557.493.443
Net profit for the period					0.675.704	10.675.704
Other comprehensive income for the period				3.677.593		3.677.593
Repayments for the period			19.465.144			19.465.144
Balance at 30 September 2021	547.394.670			$563.124$ $19.465.144$ $4.225.140$ $19.663.806$ $591.311.884$
Balance at 1 April 2022	547.394.670	563.124	19.465.144	4.225.140	15.041.193	586.689.271
Net profit for the period					8.811.256	8.811.256
Other comprehensive income for the period				12.189.387		12.189.387
Balance at 30 September 2022	547394670			563.124 19.465.144 16.414.527 23.852.449 607.689.914

Share premium and translation reserve are not available for distribution.

currency (i.e. United Kingdom Pounds) are recognised directly in other comprehensive income and accumulated in the foreign currency translation reserve. Gains and losses on hedging instruments that are designated as hedges of net investments in foreign operations are included in the foreign currency translation reserve.
Exchange differences previously accumulated in the foreign Exchange differences relating to the translation of the net assets of the Group's foreign operations from their functional currencies to the Group's presentation foreign operation.

The non-refundable advances from shareholders are made available to the Board of Directors for future increases of the share capital of the Company.

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT For the period from 1 April 2022 to 30 September 2022

	Note	1/04/2022- 30/09/2022 UK£	1/04/2021- 30/09/2021 UK£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax Adjustments for:		10.698.536	13.124.042
Depreciation of property, plant and equipment		27	49
Depreciation of right-of-use assets	14	32.085	31.865
Exchange difference arising on the translation of non-current assets
in foreign currencies		(11.335.402)	4.031.501
Exchange difference arising on the translation and consolidation of
foreign companies' financial statements		12.189.387	3.677.593
Unrealised exchange profit		(3.385) 79.119	(12.342) 3.177.295
Fair value losses on financial assets at fair value through profit or loss	17	8.424	(88.018)
Impairment charge/(reversal of impairment) of trade receivables	10 &
Interest income	12	(313.075)	(538.945)
Interest expense	12	216.005	277.937
		11.571.721	23.680.977
Changes in working capital:			1.633.466
(Increase)/decrease in trade and other receivables		(1.047.609) (700)	(13.758)
Increase in financial assets at fair value through profit or loss		(45.663)	145.865
(Increase)/decrease in bank deposits		(643.198)	(129.706.520)
Decrease in trade and other payables Decrease in deferred income		(186.440)	(116.200)
Cash generated from/(used in) operations			9.648.111 (104.376.170)
Tax paid		(673.588)	(2.256.612)
Net cash generated from/(used in) operating activities			8.974.523 (106.632.782)
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for purchase of investment property	15	(806.684)
Interest received		313.075	538.945
Net cash (used in)/generated from investing activities		(493.609)	538.945
CASH FLOWS FROM FINANCING ACTIVITIES
Non-refundable advances			19.465.144
Repayments of borrowings		(920.000)	(1.185.000)
Payments of leases liabilities		(13.364)	(14.123)
Interest paid		(216.005)	(277.937)
Net cash (used in)/generated from financing activities		(1.149.369)	17.988.084
Net increase/(decrease) in cash and cash equivalents		7.331.545	(88.105.753)
Cash and cash equivalents at beginning of the period		27.046.816	115.140.227
Effect of exchange rate fluctuations on cash held		3.383	12.342
Cash and cash equivalents at end of the period	19	34.381.744	27.046.816

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

1. Incorporation and principal activities

Country of incorporation

The Company Easternmed Real Estate Capital plc (the "Company") was incorporated in Cyprus on 14 February 2019 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. Its registered office is at Kyriakou Matsi 11, 8th floor, Nicosia, 1082, Cyprus.

Unaudited financial statements

The consolidated financial statements for the six months ended on 30 September 2022 and 30 September 2021 respectively, have not been audited by the external auditors of the Company.

2. Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), and the requirements of the Cyprus Companies Law, Cap. 113.

As of the date of the authorisation of the financial statements, all International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) that are effective as of 1 January 2022 and relevant to the Company have been adopted by the EU through the endorsement procedure established by the European Commission.

These consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of, investment property, and financial assets and financial liabilities at fair value through profit or loss.

The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires Management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 6.

3. Adoption of new or revised standards and interpretations

During the current period the Group adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 April 2022. This adoption did not have a material effect on the accounting policies of the Group.

4. Significant accounting policies

The consolidated financial statements, which are presented in United Kingdom Pounds, have been prepared in accordance with international Financial Reporting Standards, including IAS 34 "Interim Financial Reporting"

The accounting policies used in the preparation of the consolidated financial statements are in accordance with those used in the annual financial statements for the year ended 31 December 2021.

Costs that are incurred during the financial year are anticipated or deferred for interim reporting purposes if, and only if, it is also appropriate to anticipate or defer that type of cost at the end of the financial year.

Corporation tax is calculated based on the expected tax rates for the whole financial year.

These consolidated financial statements must be read in conjunction with the annual financial statements for the year ended 31 December 2021.

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

5. New accounting pronouncements

At the date of approval of these consolidated financial statements, standards and interpretations were issued by the International Accounting Standards Board which were not yet effective. Some of them were adopted by the European Union and others not yet. The Board of Directors expects that the adoption of these accounting standards in future periods will not have a material effect on the consolidated financial statements of the Group.

6. Critical accounting estimates, judgments and assumptions

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Calculation of loss allowance

When measuring expected credit losses the Group uses reasonable and supportable forward looking information, which is based on assumptions for the future movement of different economic drivers and how these drivers will affect each other.

Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive, taking into account cash flows from collateral and integral credit enhancements.

Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions.

Income taxes

Significant judgment is required in determining the provision for income taxes. There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

Critical judgements in applying the Group's accounting policies

Fair value of investment property

The fair value of investment property is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at each reporting date. The fair value of the investment property has been estimated based on the fair value of their individual assets.

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

6. Critical accounting estimates, judgments and assumptions (continued)

Impairment of non-financial assets

The impairment test is performed using the discounted cash flows expected to be generated through the use of non-financial assets, using a discount rate that reflects the current market estimations and the risks associated with the asset. When it is impractical to estimate the recoverable amount of an asset, the Group estimates the recoverable amount of the cash generating unit in which the asset belongs to.

Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of the value in use of the cash generating units of the Group on which the goodwill has been allocated. The value in use calculation requires the Group to estimate the future cash flows expected to arise from the cashgenerating units using a suitable discount rate in order to calculate present value.

Useful live of depreciable assets

The Board of Directors assesses the useful lives of depreciable assets at each reporting date, and revises them if necessary so that the useful lives represent the expected utility of the assets to the Group. Actual results, however, may vary due to technological obsolescence, mis-usage and other factors that are not easily predictable.

7. Revenue

The Group derives its revenue mainly from rental contracts with tenants.

Disaggregation of revenue	1/04/2022-	1/04/2021-
	30/09/2022	30/09/2021
	UK£	UK£
Rent receivable	11.632.945	12.075.786
Other income from property	253.499	413.031
	11.886.444	12.488.817

8. Rental expenses

	1/04/2022-	1/04/2021-
	30/09/2022	30/09/2021
	UK£	UK£
Property rates and taxes		34.581
Energy expenses	72.031	28.952
Repairs and maintenance	170.613	328.381
Electricity	67.401	48.513
Water supply and cleaning	4.345	27,950
Insurance	111.498	111.084
Sundry expenses	31.502	2.260
Other professional fees	31.888	24.918
Agent management fees	262.071	411.317
Salaries and wages abroad	120.838	97.446
	872.187	1.115.402

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

9. Other operating income

Compensation for damages Compensation for early termination of rental contracts	105.814	2.077.163 124.269
	105.814	2.201.432
10. Net (loss)/profit from investing activities
	1/04/2022- 30/09/2022 UK£	$1/04/2021 -$ 30/09/2021 UK£
Interest income Fair value losses on financial assets at fair value through profit or loss	(79.119)	168.962 (49.933)
	(79.119)	119.029

11. Administration expenses

	1/04/2022-	$1/04/2021 -$
	30/09/2022	30/09/2021
	UK£	UK£
Common expenses	396	422
Annual levy	886	2.322
Electricity	1.511	1.230
Water supply and cleaning	1.130	787
Insurance		27.659
Repairs and maintenance	4.351	293
Sundry expenses	547	9.692
Equipment maintenance	269
Auditors' remuneration - current period	1.780	25.519
Auditors' remuneration for the statutory audit of annual accounts	3.318	4.779
Auditors' remuneration for other non-audit services	2.611	12.972
Auditors' remuneration - prior years		(345)
Accounting fees	800	10.067
Legal fees	28.851	26.517
Legal and professional		5.118
Other professional fees	286.525	107.581
Overseas travelling	20.187
Depreciation of right-of-use assets	32.085	31.969
Depreciation	27	63
	385.274	266.645

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

12. Finance income/(costs)

	1/04/2022- 30/09/2022 UK£	1/04/2021- 30/09/2021 UK£
Finance income Interest on debentures Realised foreign exchange profit Unrealised foreign exchange profit	313.075 198 3.385	41.527 444
Bank and other loans interest	316.658	41.971
Finance costs
Interest expense Loan interest Interest expense on lease liabilities Interest on taxes	(157.295) (58.710)	(218.152) (58.998) (787)
Sundry finance expenses Bank charges	(7.094)	(11.248)
Net foreign exchange losses Realised foreign exchange loss	(38.191)	(9.268)
	(261.290)	(298.453)
Net finance income/(costs)	55.368	(256.482)

1. Tax

	1/04/2022-	$1/04/2021 -$
	30/09/2022	30/09/2021
	UK£	UK£
Corporation tax - current period	٠	4.270
Overseas tax	1.886.690	2.444.068
Defence contribution - current period	116
Defence contribution - prior years	474
Charge for the period	1.887.280	2.448.338

The tax on the Group's profit before tax differs from theoretical amount that would arise using the applicable tax rates as follows:

	1/04/2022- 30/09/2022	$1/04/2021 -$ 30/09/2021
Profit before tax	UK£ 10.698.536	UK£ 13.124.042
Tax calculated at the applicable tax rates Tax effect of expenses not deductible for tax purposes	1.337.317 22.979	1.640.505 416,403
Tax effect of allowances and income not subject to tax 10% additional charge	(1.493.397) 133.101	(2.052.638)
Defence contribution current period Prior year tax	116 474
Overseas tax in excess of credit claim used during the period Tax charge	1.886.690 1.887.280	2.444.068 2.448.338

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

13. Tax (continued)

The corporation tax rate in Cyprus is 12,5%. In addition, 75% of the gross rents receivable are subject to defence contribution at the rate of 3%.

Under certain conditions interest income may be subject to defence contribution at the rate of 30%. In such cases this interest will be exempt from corporation tax. In certain cases, dividends received from abroad may be subject to defence contribution at the rate of 17%.

The Group's rental and other income derives from permanent establishments outside of the Republic and is not taxed in the Republic.

The corporation tax rate in Switzerland can reach up to 30% as companies are taxed on their net profits, the amount of their share capital and the amount of receivable rental income and in the United Kingdom the corporation tax rate is 19%.

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

14. Right-of-use assets

	Land and buildings UK£
Cost Balance at 1 April 2021	5.879.562
Balance at 30 September 2021	5.879.562
Balance at 1 April 2022	5.879.562
Balance at 30 September 2022	5.879.562
Depreciation Balance at 1 April 2021 Charge for the period Balance at 30 September 2021	393.268 31.865 425.133
Balance at 1 April 2022 Charge for the period Balance at 30 September 2022	425.133 32.085 457.218
Net book amount Balance at 30 September 2022	5.422.344
Balance at 1 April 2022	5.454.429

The Group through one of its subsidiary purchased a leasehold property in London in 2014. The leasehold period is 109 years and expires on 7 June 2123 and the leasehold agreement provides for a yearly payment of ground rent.

The parent company entered into an agreement in 2020 with a third party for the lease of its office in Nicosia. The lease period is 5 years and expires on 30 June 2025, with the option for the company to extend it by 2 years with the same terms.

Amounts recognised in profit and loss:

	1/04/2022-	$1/04/2021 -$
	30/09/2022 UK£	30/09/2021 UK£
Depreciation expense on right-of-use assets Interest expense on lease liabilities	(32.085) (58.710)	(31.865) (58.935)
15. Investment properties
	31/03/2022	30/09/2021
	UK£	UK£
Balance at 1 April	598.430.300	592,500.605
Additions	806.684
Exchange differences	16.742.664	5.929.695
Balance at 30 September	615.979.648	598.430.300

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

15. Investment properties (continued)

Fair value hierarchy

The fair value of investment properties owned by the Group as at 30 Septemer 2022 was determined by the Board of Directors of each of the Group companies at GBP615.979.648 on the basis of information available to the Boards of the companies for the properties and general information on current conditions of the immovable property market in the UK and Switzerland. The fair value of the investments properties was the same as the last valuation available to the companies prepared by external, independent professional property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the properties being valued dated 26 April 2021 (except the property jointly owned by the companies Medspectrum Limited and Alphaprecious Ltd which is considered by the Board of Directors of the companies to be equal to the aquisition price of the property purchased in February 2020 at GBP191.247.440).

The fair value measurement for all of the investment properties has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

Valuation technique and significant unobservable inputs

The following table shows the valuation technique used in measuring the fair value of investment property, as well as the significant unobservable inputs used.

Description	Fair value at Valuation 30 September technique 2022 UK£	Unobservable input	Range (weighted average)	Relationship of unobservable inputs to fair values
Commercial in London	120,850,000 Income approach	Assessment of the location of the property	Market value of the building UK£949 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial in London	39,006,685 Income approach	Assessment of the location of the property	Market value of the building UK£ 590 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial (office and shops) building in London	32.750.000 Income approach	Assessment of the location of the property	Market value of the building UK£ 679 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

	15. Investment properties (continued)
Description	Fair value at Valuation 30 September technique 2022 UK£	Unobservable input	Range (weighted average)	Relationship of unobservable inputs to fair values
Commercial in London	13,550,000 Income approach	Assessment of the location of the property	Market value of the building UK£ 806 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial (office and shops) building in London	28,500,000 Income approach	Assessment of the location of the property	Market value of the building UK£ 647 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial in London	25.100.000 Income approach	Assessment of the location of the property	Market value of the building UK£ 677 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial in London	4.525.000 Income approach	Assessment of the location of the property	Market value of the building UK£ 530 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial (office and shops) building in Geneva	102.529.234 Income approach	Assessment of the location of the property	Market value of the building UK£ 647 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial (office and shops) building in Geneva	57.921.289 Income approach	Assessment of the location of the property	Market value of the building UK£ 2.036 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

15. Investment properties (continued)
Description	Fair value at Valuation 30 September technique 2022 UK£	Unobservable input	Range (weighted average)	Relationship of to fair values	unobservable inputs
Commercial in London	191,247,440 Income approach	Assessment of the location of the property	Market value of the building UK£ 840 per square foot.	The fair value will and the	increase/(decrease) if the rental income increases/(decreases) corresponding return increases/(decreases)
	Details of investment properties are as follows:
				30/09/2022 UK£	31/03/2022 UK£
Type Commercial buildings in London Commercial buildings in Geneva				455.562.123 160.417.525	454.755.439 143.674.861
				615.979.648	598.430.300

During the period, the Group received rental income amounting to UK£11.632.945.

16. Intangible assets

	Goodwill UK£
Cost Balance at 1 April 2021	3.149.872
Balance at 30 September 2021	3.149.872
Balance at 1 April 2022	3.149.872
Balance at 30 September 2022	3.149.872
Net book amount
Balance at 30 September 2022	3.149.872
Balance at 1 April 2022	3.149.872

Goodwill represents the premium paid to acquire the below noted companies (note 21) during the year.

Goodwill has been allocated for impairment testing purposes to the following cash-generating units:

• Alphafocus Ltd $\bullet$
• IHC Immobilien Limited $\bullet$
• Alphaprecious Limited $\bullet$
• Medspectrum Limited $\bullet$

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

17. Trade and other receivables

	30/09/2022	31/03/2022
	UK£	UK£
Trade receivables	1.087.724	1.023.594
Agents	2.766.630	2.262.016
Less: credit loss on trade receivables	(84.163)	(77.595)
Trade receivables - net	3.770.191	3.208.015
Receivables from related parties (Note 28.1)		6.532
Shareholders' current accounts - debit balances (Note 28.3)	63.698	32.132
Deposits and prepayments	901.657	457.917
Deferred expenses	6.800
Other receivables	7.500	6.065
	4.749.846	3.710.661

The Group does not hold any collateral over the trading balances.

Movement in provision for Credit loss on trade receivables:

6.568	(85.190)
	162.785
	31/03/2022 UK£
	30/09/2022 UK£ 77.595

The fair values of trade and other receivables due within one year approximate to their carrying amounts as presented above.

31/03/2022

20/09/2022

18. Financial assets at fair value through profit or loss

			30/0114024	UIJUULLULL
			UK£	UK£
Balance at 1 April			10.541.300	13.704.837
Additions			10.500.700	10.513.758
Disposals			(10.500.000)	(10.500.000)
Change in fair value			(79.119)	(3.177.295)
Balance at 30 September			10.462.881	10.541.300
	Fair values	Cost	Fair values	Cost
	30/09/2022	30/09/2022	31/03/2022	31/03/2022
	UK£	UK£	UK£	UK£
Debt securities on a Stock Exchange	٠	$\,$		3.279.736
Debt securities	10.462.881	10.500.000	10.541.300	10.500.000
	10.462.881	10.500.000	10.541.300	13.779.736

The financial assets at fair value through profit or loss comprise of marketable debentures that are listed on a stock exchange and are valued at market value at the close of business on 30 September 2022/31 March 2022 by reference to the Stock Exchange quoted bid prices and the non listed securities that are non-marketable bonds with financial institutions that are valued at cost plus accrued interest. Financial assets at fair value through profit or loss are classified as current assets because they are expected to be realised within twelve months from the reporting date.

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

18. Financial assets at fair value through profit or loss (continued)

In the consolidated cash flow statement, financial assets at fair value through profit or loss are presented within the section on operating activities as part of changes in working capital. In the consolidated statement of profit or loss and other comprehensive income, changes in fair values of financial assets at fair value through profit or loss are recorded in operating income.

19. Cash at bank

	30/09/2022	31/03/2022
	UK£	UK£
Cash at bank	34.381.764	27.047.877
Tenants' bank deposits	400.168	354.505
	34.781.932	27.402.382

For the purposes of the consolidated cash flow statement, the cash and cash equivalents include the following:

	30/09/2022	31/03/2022
	UK£	UK£
Cash at bank Bank overdrafts (Note 22)	34.381.764	27.047.877
	(20)	(1.061)
	34.381.744	27.046.816

20. Share capital and share premium

	30/09/2022 Number of	30/09/2022	30/09/2022		31/03/2022 Number of	31/03/2022	31/03/2022
	shares	€		UK£	shares	UK£	UK£
Authorised Ordinary
shares of $E$ each	675.735.610	743.830.792	435.735.610		675.735.610	743.830.792	435.735.610
Issued and fully paid			Number of shares		UK£	Share capital Share premium UK£	Total UK£
Balance at 1 April 2021			639.426.528		547.394.670	563.124	547.957.794
	Balance at 30 September 2021		639.426.528		547.394.670	563.124	547.957.794
Balance at 1 April 2022			639.426.528		547.394.670	563.124	547.957.794
	Balance at 30 September 2022		639.426.528		547.394.670	563.124	547.957.794

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

21. Other reserves

Exchange difference		12.189.387 16.414.527	12.189.387 35.879.671
Balance at 1 April 2022	19.465.144	4.225.140	23.690.284
Balance at 30 September 2021	19.465.144	4.225.140	23.690.284
Non-refundable advances	19.465.144	$\overline{\phantom{a}}$	19.465.144
Exchange difference		3.677.593	3.677.593
Balance at 1 April 2021		547.547	547.547
	UK£	UK£	UK£
	advances	reserve	Total
	refundable	Translation
	Non-

The non-refundable advances from shareholders are made available to the Board of Directors for future increases of the share capital of the Company.

Share premium is not available for distribution.

Exchange differences relating to the translation of the net assets of the Group's foreign operations from their functional currencies to the Group's presentation currency (i.e. Swiss franc) are recognised directly in other comprehensive income and accumulated in the foreign currency translation reserve. Gains and losses on hedging instruments that are designated as hedges of net investments in foreign operations are included in the foreign currency translation reserve. Exchange differences previously accumulated in the foreign currency translation reserve are reclassified to profit or loss on the disposal or partial disposal of the foreign operation.

22. Borrowings

	30/09/2022 UK£	31/03/2022 UK£
Current borrowings Bank overdrafts (Note 19) Bank loans	20 17.700.000	1.061 17.707.774
	17.700.020	17.708.835
Non-current borrowings Bank loans Other loans	21.400.317 11.018.840	18.128.000 9.796.124
	32.419.157	27.924.124
Total	50.119.177	45.632.959

The Group through one of its subsidiaries was granted 2 loans from Nike Shipholder Corporation on 28 December 2016 and 7 May 2018 respectively classified under other loans. The first loan bears interest of 1.5% per annum and is repayable with 10 annual installments of CHF 1.162.500 each, on December 29 of each year. The second loan bears interest of 1.5% per annum and is repayable with 6 annual installments of CHF 500.000 each on December 29 of each year.

On 3 January 2022, the Company entered into supplement agreements to the other loan agreements, where a grace period of 2 years was agreed by the parties of the loan agreements for the repayment of the principal and interest instalments.

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

22. Borrowings (continued)

The Group through two of its subsidiaries was granted two bank loans. The bank loan 1 is repayable by quarterly installments of CHF 500.000 for each year and bears interest of Libor plus an agreed margin and a minimum of 0.71%, payable quarterly. The bank loan 2 is a Lombart credit facility repayable on demand which bears interest of 0,40% payable quarterly.

Maturity of non-current borrowings:

	30/09/2022	31/03/2022
	UK£	UK£
Between one to two years	6.035.800	6.035.800
Between two and five years	18.107.400	18.107.400
After five years	8.275.957	3.780.924
	32.419.157	27.924.124

The weighted average effective interest rates at the reporting date were as follows:

	30/09/2022	31/03/2022
		$\%$
Bank loan 1
Bank loan 2	$\boldsymbol{a}$
Other loans	د,	1,5

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

23. Lease liabilities

	2023	2022
	UK£	UK£
Balance at 1 April	5.854.510	5.868.633
Repayments	(72.074)	(72.328)
Interest	58.710	58.935
Exchange difference		(730)
Balance at 30 September	5.841.146	5.854.510

Within one year	Minimum lease payments 30/09/2022 UK£ 145.471	Interest 30/09/2022 UK£ 69.000	Principal 30/09/2022 UK£ 76.471	Minimum lease payments 31/03/2022 UK£ 145.471	Interest 31/03/2022 UK£ 69.006	Principal 31/03/2022 UK£ 76.465
Between one and five	732.507	654.320	78.187	732.507	654.320	78.187
years	12.817.927	7.131.439	5.686.488	12.817.927	7.118.069	5.699.858
After five years	13.695.905	7.854.759	5.841.146	13.695.905	7.841.395	5.854.510

During 2014 the Group through one of its newly acquired subsidiary acquired leasehold property in London. The leasehold period is 109 years and expires on 17 June 2123 and the leasehold agreement provides for a yearly payment of ground rent. entered into a lease rental agreement for a property in London.

During the year 2020, the parent company entered into an agreement for the lease of its office. The lease period is 5 years and expires on 30 June 2025.

All lease obligations are denominated in United Kingdom Pounds.

The fair values of lease obligations approximate to their carrying amounts as presented above.

The Group's obligations under leases are secured by the lessors' title to the leased assets.

24. Trade and other payables

	30/09/2022	31/03/2022
	UK£	UK£
Trade payables	125.254	120.648
Prepayments from tenants	646.916	.018.454
VAT	726.449	931.304
Shareholders' current accounts - credit balances (Note 28.4)	46,450	46.450
Accruals	684.581	486.206
Other creditors	21.246	60.626
Deferred income	3.473.532	3.704.999
Payables to fellow subsidiaries (Note 28.2)	1.430	99
Payables to other related parties (Note 28.2)		270
	5.725.858	6.369.056

The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

25. Deferred income

Client advances	30/09/2022 UK£ 1.368.379	31/03/2022 UK£ 1.554.819
	1.368.379	1.554.819
26. Current tax liabilities
	30/09/2022 UK£	31/03/2022 UK£
Corporation tax Special contribution for defence Overseas tax	4.461 358 3.797.681	9.200 663 2.578.945
	3.802.500	2.588.808

27. Operating Environment of the Group

The geopolitical situation in Eastern Europe intensified on 24 February 2022 with the commencement of the conflict between Russia and Ukraine. As at the date of authorising these financial statements for issue, the conflict continues to evolve as military activity proceeds. In addition to the impact of the events on entities that have operations in Russia, Ukraine, or Belarus or that conduct business with their counterparties, the conflict is increasingly affecting economies and financial markets globally and exacerbating ongoing economic challenges.

The European Union as well as United States of America, Switzerland, United Kingdom and other countries imposed a series of restrictive measures (sanctions) against the Russian and Belarussian government, various companies, and certain individuals. The sanctions imposed include an asset freeze and a prohibition from making funds available to the sanctioned individuals and entities. In addition, travel bans applicable to the sanctioned individuals prevents them from entering or transiting through the relevant territories. The Republic of Cyprus, Switzerland and the UK have adopted the United Nations and European Union measures. The rapid deterioration of the conflict in Ukraine may as well lead to the possibility of further sanctions in the future.

Emeraing uncertainty regarding global supply of commodities due to the conflict between Russia and Ukraine conflict may also disrupt certain global trade flows and place significant upwards pressure on commodity prices and input costs as seen through early March 2022. Challenges for companies may include availability of funding to ensure access to raw materials, ability to finance margin payments and heightened risk of contractual non-performance.

The impact on the Group largely depends on the nature and duration of uncertain and unpredictable events, such as further military action, additional sanctions, and reactions to ongoing developments by alobal financial markets.

The financial effect of the current crisis on the global economy and overall business activities cannot be estimated with reasonable certainty at this stage, due to the pace at which the conflict prevails and the high level of uncertainties arising from the inability to reliably predict the outcome.

The Group has no trading direct exposure to Russia, Ukraine and Belarus as the group owns no properties in these countries and none of its properties are rendered out to tenants from these countries. However, the company has invested in debentures issued by two Russian Banks which are, since the war started, not traded in the Moscow Stock Exchange and are in default for payment of interest to the debenture holders. The specific investments have already been fully impaired in the financial statements and have reduced the Group's profitability.

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

27. Operating Environment of the Group (continued)

Furthermore, the increasing energy prices, fluctuations in foreign exchange rates, unease in stock market trading, rises in interest rates, supply chain disruptions and intensified inflationary pressures may indirectly impact the operations of the Group. The indirect implications will depend on the extent and duration of the crisis and remain uncertain.

Management has considered the unique circumstances and the risk exposures of the Group and has concluded that there will be no further significant impact in the Group's profitability position. The event is not expected to have an immediate material impact on the business trading operations. Management will continue to monitor the situation closely and will assess the possible impact on the Group's activities in case the crisis becomes prolonged.

28. Related party transactions

As of 2 September 2021, the Company's share capital is held by the companies Kosmima Holdinas Limited, Oceanroutes Shipping and Trading Limited, Seas of Levante Shipping and Financing Limited, Medventure Shipping Corporation Limited and Medvanguard Shipping Corporation Limited which own 10,82407%, 7,19629%, 7,19629%, 7,19629%, 7,19629% respectively (before 2 September 2021 they owned 13.74%, 9.13%, 9.13%, 9.13% and 9.13% respectively) and by the non-Cyprus tax resident individuals Mr. Athanasios Martinos, Mrs Marina Martinou, Mrs Marina Mathilde Martinou, Mrs Georgia Chatzi and Mrs Elli Ioannou Chatzi who own 20,43396%, 20,22501%, 19,72866%, 0,00157% and 0,00157% respectively (before 2 September 2021 they owned 16.79%, 16.79%, 16.16%, 0% and 0% respectively).

The following transactions were carried out with related parties:

28.1 Receivables from related parties (Note 17)

		30/09/2022	31/03/2022
Name	Nature of transactions	UK£	UK£
Medprestige Limited	Finance		6.532
			6.532

The receivables from related parties were provided interest free, and there was no specified repayment date

28.2 Payables to related parties (Note 24)

		30/09/2022 31/03/2022
Name	Nature of transactions	UK£	UK£
Easternmed Real Estate ManagementLtd Finance		1.430	369
		430	369

The payables to related parties were provided interest free, and there was no specified repayment date.

28.3 Shareholders' current accounts - debit balances (Note 17)

	30/09/2022	31/03/2022
	UK£	UK£
Seas of Levante Shipping and Financing Limited	15.924	8.033
Medvanguard Shipping corporation Limited	15.924	8.033
Medventure Shipping Corporation Limited	15.925	8.033
Oceanroutes Shipping and Trading Limited	15.925	8.033
	63.698	32.132

The directors'/shareholders' current accounts are interest free, and have no specified repayment date.

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS For the period from 1 April 2022 to 30 September 2022

28. Related party transactions (continued)

28.4 Shareholders' current accounts - credit balances (Note 24)

1. 그는 아이는 아이들은 아이들이 아이들이 아이들이 아이들이 없었다.		30/09/2022	31/03/2022
		UK£	UK£
Shareholders' current accounts		46.450	46.450
		46.450	46.450

The shareholders' current accounts are interest free, and have no specified repayment date.

29. Contingent liabilities

The Group had no contingent liabilities as at 30 September 2022.

30. Commitments

The Group had no capital or other commitments as at 30 September 2022.

31. Events after the reporting period

As explained in note 27 the geopolitical situation in Eastern Europe intensified on 24 February 2022, with the commencement of the conflict between Russia and Ukraine. As at the date of authorising these financial statements for issue, the conflict continues to evolve as military activity proceeds and additional sanctions are imposed.

Depending on the duration of the conflict between Russia and Ukraine, and continued negative impact on economic activity, the Group might experience further negative results, and liquidity restraints and incur additional impairments on its assets in 2023 which relate to new developments that occurred after the reporting period.

ADDITIONAL INFORMATION TO THE UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

CONTENTS	PAGE
Detailed income statement
Rental income	$\overline{2}$
Administration expenses	3
Finance income/cost	$\overline{4}$

DETAILED INCOME STATEMENT

	Page	1/04/2022- 30/09/2022 UK£	1/04/2021- 30/09/2021 UK£
Revenue Net rent receivable	$\overline{2}$	11.014.257	11.373.415
Gross profit		11.014.257	11.373.415
Other operating income
Compensation for early termination of rental contracts Compensation for damages Reversal of impairment - trade receivables Interest income		105.814 25.101	124.269 2.077.163 30.199 168.962
		11.145.172	13.774.008
Operating expenses
Administration expenses Selling and distribution expenses	3 3	(385.274) (4.086)	(266.645) (26.139)
		10.755.812	13.481.224
Other operating expenses
Impairment charge - trade receivables Fair value losses on financial assets at fair value through profit or		(33.525)	(50.767)
loss		(79.119)	(49.933)
Operating profil		10.643.168	13.380.524
Finance income Finance costs	4 $\overline{\mathcal{A}}$	316.658 (261.290)	41.971 (298.453)
Net profit for the period before tax		10.698.536	13.124.042

RENTAL INCOME

	1/04/2022- 30/09/2022 UK£	$1/04/2021 -$ 30/09/2021 UK£
Rental income
Rent receivable	11.632.945	12.075.786
Other income from properties	253.499	413.031
	11.886.444	12.488.817
Rental expenses
Property rates and taxes		34.581
Energy expenses	72.031	28.952
Repairs and maintenance	170.613	328.381
Electricity	67.401	48.513
Water supply and cleaning	4.345	27.950
Insurance	111.498	111.084
Sundry expenses	31.502	2.260
Other professional fees	31.888	24.918
Agent management fees	262.071	411.317
Salaries and wages abroad	120.838	97.446
	872.187	1.115.402
Net rent receivable	11.014.257	11.373.415

ADMINISTRATION EXPENSES

	1/04/2022-	$1/04/2021 -$
	30/09/2022	30/09/2021
	UK£	UK£
Administration expenses
Common expenses	396	422
Annual levy	886	2.323
Electricity	1.511	1.230
Water supply and cleaning	1.130	787
Insurance		27.659
Repairs and maintenance	4.351	293
Sundry expenses	547	9.692
Equipment maintenance	269
Auditors' remuneration - current period	1.780	25.519
Auditors' remuneration for the statutory audit of annual accounts	3.318	4.779
Auditors' remuneration for other non-audit services	2.611	12.972
Auditors' remuneration - prior years		(345)
Accounting fees	800	10.067
Legal fees	28.851	26.517
Other professional fees	286.525	107.581
Legal and professional		5.118
Overseas travelling	20.187
Depreciation of right-of-use assets	32.085	31.969
Depreciation	27	62
	385.274	266.645

	1/04/2022- 30/09/2022	1/04/2021- 30/09/2021
	UK£	UK£
Selling and distribution expenses
Advertising	4.086	26.139
	4.086	26.139

FINANCE INCOME/COSTS

	1/04/2022- 30/09/2022 UK£	$1/04/2021 -$ 30/09/2021 UK£
Finance income Interest on Debentures/Bonds Realised foreign exchange profit Unrealised foreign exchange profit	313.075 198 3.385	41.526 445
	316.658	41.971
Finance costs
Interest expense Loan interest Interest expense on lease liabilities Interest on taxes	157.295 58.710	218.152 58.998 787
Sundry finance expenses Bank charges	7.094	11.248
Net foreign exchange losses Realised foreign exchange loss	38.191	9.268
	261.290	298.453