Interim / Quarterly Report • Oct 2, 2024
Interim / Quarterly Report
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INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Period from 1 January 2024 to 30 June 2024
| Board of Directors and other officers | 1 |
|---|---|
| Consolidated Management Report | 2 |
| Unaudited consolidated statement of profit or loss and other comprehensive income | 3 |
| Unaudited consolidated statement of financial position | 4 |
| Unaudited consolidated statement of changes in equity | 5 |
| Unaudited consolidated cash flow statement | 6 |
| Notes to the consolidated financial statements | 7 - 17 |
| Board of Directors: | Natalia Kyriakou |
|---|---|
| Cleo Koushos-Cros | |
| Martha Lambrianou | |
| Company Secretary: | Speedy Secretarial Solutions Limited |
| Registered office: | Athalassas 62 Mezzanine floor 2012 Strovolos Nicosia, Cyprus |
| Bankers: | EcommBX |
| Registration number: | ΗΕ414929 |
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 January 2024 to 30 June 2024.
The principal activities of the Group, which are unchanged from last year, are the holding of investments and the provision of financing.
The Group's development to date, financial results and position as presented in the consolidated financial statements are not considered satisfactory and the Board of Directors is making an effort to reduce the Group's losses.
The CSE has established a Corporate Governance Code ('The Code'). The Group does not apply the Code, taking into consideration the small size of the Group, the fact that the Group does not employ a high number of employees and that its principal activities are the holding of investments and provision of financing. These advocate for the nonadoption of the Code, as the relative cost increase would not be justified under the circumstances.
The Group does not maintain any branches.
There were no changes in the share capital of the Company during the period under review.
The members of the Group's Board of Directors as at 30 June 2024 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 January 2024 to 30 June 2024.
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.
There were no material events after the reporting period, which have a bearing on the understanding of the consolidated financial statements.
Disclosed in note 24 of the consolidated financial statements.
By order of the Board of Directors,
Natalia Kyriakou Director
Nicosia, 30 September 2024
01/01/2024- 30/06/2024 Note US\$ US\$
| Net loss on trading in financial instruments Net fair value changes |
17 | - (45,784) |
(23,564) 255,396 |
|---|---|---|---|
| Administration expenses | 7 | (555,353) | (926,374) |
| Other expenses | 8 | - | (2,173) |
| Operating profit | 2,438,088 | 2,545,336 | |
| Net finance costs | 10 | (7,098,039) | (4,149,388) |
| Net loss for the period | (4,659,951) | (1,604,052) | |
| Other comprehensive income | - | - | |
| Total comprehensive loss for the period | (4,659,951) | (1,604,052) | |
| Loss per share attributable to equity holders of the parent (cent) | 12 | (4.30) | (64.46) |
01/01/2023- 30/06/2023
| Note | 30/06/2024 Unaudited US\$ |
31/12/2023 Audited US\$ |
|
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Right-of-use assets Non-current loans receivable |
13 15 |
- 70,540,940 |
8,199 72,242,531 |
| 70,540,940 | 72,250,730 | ||
| Current assets | |||
| Other receivables | 16 | - | 35,383 |
| Loans receivable | 15 | 114,444,550 | 116,175,111 |
| Financial assets at fair value through profit or loss Cash and cash equivalents |
17 18 |
- 820,607 |
91,806 813,105 |
| 115,265,157 | 117,115,405 | ||
| Total assets | 185,806,097 | 189,366,135 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital Other reserves |
19 | 123,345,285 922,000 |
123,345,285 922,000 |
| Accumulated losses | (9,597,099) | (4,937,148) | |
| Total equity | 114,670,186 | 119,330,137 | |
| Non-current liabilities Borrowings |
20 | 71,107,954 | 69,970,306 |
| 71,107,954 | 69,970,306 | ||
| Current liabilities | |||
| Other payables | 22 | 27,957 | 57,112 |
| Lease liabilities | 21 | - | 8,580 |
| 27,957 | 65,692 | ||
| Total liabilities | 71,135,911 | 70,035,998 | |
| Total equity and liabilities | 185,806,097 | 189,366,135 |
On 30 September 2024 the Board of Directors of Altrecom Plc authorised these consolidated financial statements for issue.
Natalia Kyriakou Cleo Koushos-Cros Director Director
.................................... ....................................
| Share capital US\$ |
Capital reserve US\$ |
Accumulated losses US\$ |
Total US\$ |
|
|---|---|---|---|---|
| Balance at 1 January 2023 | 30,108 | - | (5,885,792) | (5,855,684) |
| Comprehensive income | ||||
| Net loss for the period Total comprehensive income for the period |
- - |
- - |
(1,604,052) (1,604,052) |
(1,604,052) (1,604,052) |
| Balance at 30 June 2023 | 30,108 | - | (7,489,844) | (7,459,736) |
| Balance at 1 January 2024 | 123,345,285 | 922,000 | (4,937,148) 119,330,137 | |
| Comprehensive income | ||||
| Net loss for the period | - | - | (4,659,951) | (4,659,951) |
| Total comprehensive income for the period | - | - | (4,659,951) | (4,659,951) |
| Balance at 30 June 2024 | 123,345,285 | 922,000 | (9,597,099) 114,670,186 |
| Note | 01/01/2024- 30/06/2024 US\$ |
01/01/2023- 30/06/2023 US\$ |
|
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES Loss before tax |
(4,659,951) | (1,604,052) | |
| Adjustments for: | |||
| Depreciation of right-of-use assets | 13 | 8,199 | 8,063 |
| Unrealised exchange loss/(profit) | 4,808,773 | (1,813,328) | |
| Fair value losses/(gains) on financial assets at fair value through profit or | |||
| loss Interest income |
15, 10 | 45,784 (3,045,341) |
(255,396) (3,262,367) |
| Interest expense | 10 | 1,183,709 | 5,218,348 |
| (1,658,827) | (1,708,732) | ||
| Changes in working capital: | |||
| Decrease in other receivables | 35,383 | - | |
| Decrease in financial assets at fair value through profit or loss | 46,022 | 2,013,809 | |
| Decrease in other payables | (20,921) | (270,308) | |
| Cash (used in)/generated from operations | (1,598,343) | 34,769 | |
| Interest received | 6,116 | 20,316 | |
| Net cash (used in)/generated from operating activities | (1,592,227) | 55,085 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Loans repayments received | 568,010 | - | |
| Net cash generated from investing activities | 568,010 | - | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Repayments of borrowings | 20 | (46,023) | (1,699,827) |
| Payments of leases liabilities | 21 | (8,580) | (8,017) |
| Proceeds from borrowings | 15 | - | 500,000 |
| Proceeds from leases liabilities | - | 284 | |
| Interest paid | - | (1,193,485) | |
| Net cash used in financing activities | (54,603) | (2,401,045) | |
| Net decrease in cash and cash equivalents | (1,078,820) | (2,345,960) | |
| Cash and cash equivalents at beginning of the period | 1,899,427 | 4,245,387 | |
| Cash and cash equivalents at end of the period | 18 | 820,607 | 1,899,427 |
Altrecom Plc (the ''Company'') was incorporated in Cyprus on 7 November 2020 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. Its registered office is at Athalassas 62, Mezzanine floor, 2012 Strovolos, Nicosia.
The consolidated financial statements for the six months ended on 30 June 2024 and 2023 respectively, have not been audited by the external auditors of the Company.
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap. 113. These consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of, and financial assets and financial liabilities at fair value through profit or loss.
The consolidated financial statements are presented in United States Dollars (US\$) which is the functional currency of the Group.
Please refer to Note 4: "Adoption of new or revised standards and interpretations" and to Note 5: "Significant accounting policies" of the Audited Consolidated Financial Statements for the Year ended 31 December 2023.
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.
Please refer to Note 7: "Financial Risk management" of the Audited Consolidated Financial Statements for the Year ended 31 December 2023.
| 01/01/2024- | 01/01/2023- | |
|---|---|---|
| 30/06/2024 | 30/06/2023 | |
| US\$ | US\$ | |
| Staff costs | 377,180 | 361,632 |
| Sundry expenses | 2,141 | 61,939 |
| Telephone and postage | 8,487 | 1,418 |
| Auditors' remuneration | 2,751 | 3,210 |
| Other professional fees | 104,484 | 452,340 |
| Other administration expenses | 52,111 | 37,772 |
| Depreciation of right-of-use assets | 8,199 | 8,063 |
| 555,353 | 926,374 |
| 01/01/2024- 30/06/2024 |
01/01/2023- 30/06/2023 |
|
|---|---|---|
| US\$ | US\$ | |
| Loss from disposal and revaluation of financial assests | - | 2,173 |
| - | 2,173 |
| 01/01/2024- 30/06/2024 US\$ |
01/01/2023- 30/06/2023 US\$ |
|
|---|---|---|
| Salaries | 377,180 | 361,632 |
| 377,180 | 361,632 | |
| Average number of employees (including Directors in their executive capacity) | 8 | 8 |
| 01/01/2023- | |
|---|---|
| 30/06/2024 | 30/06/2023 |
| US\$ | US\$ |
| 6,116 | 20,316 |
| (5,915,398) | (103,805) |
| (5,909,282) | (83,489) |
| 1,204,420 | |
| (238) | |
| (5,218,110) | |
| (13,353) | (51,971) |
| (1,188,757) | (4,065,899) |
| (7,098,039) | (4,149,388) |
| 30/06/2024 US\$ |
31/12/2023 US\$ |
| 01/01/2024- 8,305 (38) (1,183,671) |
The tax on the Group's results before tax differs from theoretical amount that would arise using the applicable tax rates as follows:
| 01/01/2023- | ||
|---|---|---|
| 01/01/2024 | 30/06/2023 | |
| US\$ | US\$ | |
| Loss before tax | (4,659,951) | (1,604,052) |
| Tax calculated at the applicable tax rates | (582,494) | (200,507) |
| Tax effect of expenses not deductible for tax purposes | 52,862 | (101,110) |
| Tax effect of allowances and income not subject to tax | 529,632 | (21,488) |
| Tax effect of tax loss for the period | - | 323,105 |
| Tax charge | - | - |
The corporation tax rate is 12,5%.
Under certain conditions interest income may be subject to defence contribution at the rate of 17%. 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%.
Gains on disposal of qualifying titles (including shares, bonds, debentures, rights thereon etc) are exempt from Cyprus income tax.
| 01/01/2024- 30/06/2024 |
01/01/2023- 30/06/2023 |
|---|---|
| Loss attributable to shareholders (US\$) (4,659,951) |
(1,604,052) |
| Weighted average number of ordinary shares in issue during the period 108,371,916 |
24,883 |
| Loss per share attributable to equity holders of the parent (cent) (4.30) |
(64.46) |
| 13. Right-of-use assets | |
| Offices cost US\$ |
|
| Cost | |
| Balance at 1 January 2024 | 50,423 |
| Balance at 30 June 2024 | 50,423 |
| Depreciation Balance at 1 January 2023 Charge for the period |
26,681 15,543 |
| Balance at 31 December 2023 | 42,224 |
| Balance at 1 January 2024 Charge for the period |
42,224 8,199 |
| Balance at 30 June 2024 | 50,423 |
| Net book amount | |
| Balance at 30 June 2024 | - |
| Balance at 1 January 2024 | 8,199 |
| Amounts recognised in profit and loss: | |
| 01/01/2024- 30/06/2024 |
01/01/2023- 30/06/2023 US\$ US\$ |
Interest expense on lease liabilities (38) (238) On 1st of July 2021, the Company entered into a one year lease agreement for its offices, with renewal options. Rental contracts are typically made for fixed period of three years and may have extensions or automatic renewal options. The managements intention is to renew the lease agreement for three years. The lease agreement do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets
may not be used as security for borrowing purposes.
Depreciation of right-of-use assets (8,199) (8,063)
The details of the subsidiaries are as follows:
| Name | Country of | Principal activities | 30/06/2024 | 31/12/2023 | ||
|---|---|---|---|---|---|---|
| incorporation | Holding | Holding | 30/06/2024 | 31/12/2023 | ||
| % | % | US\$ | US\$ | |||
| Donimaro Limited |
Cyprus | Holding of investments and provision of financing |
100 | 100 | 985,426 | 985,426 |
| Earth S.R.O. | Slovakia | Trading Services | 100 | 100 | 120,170 | 120,170 |
| 1,105,596 | 1,105,596 |
| 2024 Unaudited US\$ |
2023 Audited US\$ |
|
|---|---|---|
| Balance at 1 January | 188,417,642 | 186,852,866 |
| New loans granted | - | 1,225,917 |
| Repayments | (568,011) | (12,751,721) |
| Interest charged | 3,039,224 | 6,066,698 |
| Exchange differences from arising from changing currency of the loan | (5,903,365) | 7,023,882 |
| Balance at 30 June/31 December | 184,985,490 | 188,417,642 |
| 30/06/2024 | 31/12/2023 | |
| US\$ | US\$ | |
| Loans receivable | 184,985,490 | 188,417,642 |
| 184,985,490 | 188,417,642 | |
| Less current portion | (114,444,550) | (116,175,111) |
| Non-current portion | 70,540,940 | 72,242,531 |
On 20 April 2021, the Company entered into a loan agreement with Athletic Enterprises Limited, an unrelated entity, for the principal amount of \$56,900,000 and an annual interest rate of 3.5%. The maturity date of the loan is 20 April 2025.
On 23 November 2021, the Company has entered into a credit facility agreement with the same unrelated entity for an amount up to €1,000,000. As at 31 December 2021, the Company lend an amount of €420,000. The credit facility has an annual interest rate of 0.25% and repayment date by 1 September 2026. On 10 November 2022, it was agreed by both parties to increase the interest rate from 0.25% to 3.75% annualy. On 16 November 2022, it was agreed by both parties to extend the credit facility up to €1,400,000.
On 21 December 2022, the Company has entered into a credit facility agreement with the same entity for an amountup to €1,000,000, which was increased to €1,500,000 on 19 April 2023. As at 31 December 2022, the Company lendan amount of €260,000. During 2023, an additional amount of €1.048.500 (equivalent to US\$1.225.917) was granted. The credit facility has an annual interest rate of 3.75% and repayment date by 21 December 2025.
On 21 December 2022, the Company has entered into an agreement with an unrelated entity, Aspro Investment LLC (the "Seller"), for the purchase of 5 promisory notes by another unrelated entity, Esmena Investments Ltd (the "Issuer") with the total consideration being €112,580,000.
The loans are repayable as follows:
| 30/06/2024 | 31/12/2023 | |
|---|---|---|
| US\$ | US\$ | |
| Within one year | 114,444,550 | 116,175,111 |
| Between one and five years | 70,540,940 | 72,242,531 |
| 184,985,490 | 188,417,642 |
Loans are denominated in Euro.
The fair values of non-current receivables approximate to their carrying amounts as presented above.
| 30/06/2024 | 31/12/2023 | |
|---|---|---|
| US\$ | US\$ | |
| Deposits and prepayments | - | 5,406 |
| Other receivables | - | 29,977 |
| - | 35,383 |
The fair values of other receivables due within one year approximate to their carrying amounts as presented above.
| 30/06/2024 US\$ |
31/12/2023 US\$ |
|---|---|
| 2024 | 2023 |
| US\$ | US\$ |
| Balance at 1 January 91,806 |
2,536,579 |
| Additions - |
43,663 |
| Disposals (46,022) |
(2,498,227) |
| Change in fair value (45,784) |
(18,286) |
| Exchange differences - |
28,077 |
| Balance at 30 June/31 December - |
91,806 |
The financial assets at fair value through profit or loss are marketable securities and are valued at market value at the close of business on 30 June by reference to Stock Exchange quoted bid prices. 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.
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.
Cash balances are analysed as follows:
| 30/06/2024 | 31/12/2023 | |
|---|---|---|
| US\$ | US\$ | |
| Cash in hand | 1,644 | 1,647 |
| Cash with brokers | 763,693 | 757,713 |
| Cash at payment institutions | 55,067 | 54,387 |
| Current accounts | 203 | 14,226 |
| Provision for impairment on bank balances | - | (14,868) |
| 820,607 | 813,105 |
| 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|
| Number of shares |
US\$ | Number of shares |
US\$ | |
| Authorised | ||||
| Ordinary shares of €1 each | 109,024,883 | 122,247,230 | 24,883 | 30,108 |
| Ordinary shares of €1,03 each | - | - | 109,000,000 | 122,217,122 |
| 109,024,883 | 122,247,230 | 109,024,883 | 122,247,230 | |
| Issued and fully paid | ||||
| Balance at 1 January | 108,371,916 | 123,345,285 | 24,883 | 30,108 |
| Issue of shares | - | - | 108,347,033 | 123,315,177 |
| Balance at 30 June/31 December | 108,371,916 | 123,345,285 | 108,371,916 | 123,345,285 |
On the 30 August 2023 the Board of Directors authorised share capital of the Company to be increased from €25.629,49 divided into 24.883 ordinary shares of €1,03 each to €112.295.629,49 divided into 109.024.883 ordinary shares of nominal value of €1,03 each by the creation of 109.000.000 ordinary shares of nominal value of €1,03 which rank pari passu in all respects, with existing ordinary shares of the Company.
On the 21st of December 2023, further to the announcement dated 30 August 2023, 118.162 bonds of nominal value of €1,000 each were converted into ordinary shares of nominal value of 1,03 each of the Company at the conversion price of €0,927 per share. As a result, 108.347.033 new shares of the Company were issued.
| 2024 | 2023 |
|---|---|
| US\$ | US\$ |
| Balance at 1 January 69,970,306 |
187,184,596 |
| Additions - |
500,000 |
| Repayments (46,023) |
(3,283,136) |
| Interest 1,183,671 |
8,349,901 |
| Convertion of bonds to shares - |
(126,513,528) |
| Gain on conversion of bonds to shares - |
3,732,473 |
| Balance at 30 June/31 December 71,107,954 |
69,970,306 |
| 30/06/2024 US\$ |
31/12/2023 US\$ |
|
|---|---|---|
| Non-current borrowings | 71,107,954 | 69,970,306 |
| 71,107,954 | 69,970,306 | |
| Maturity of non-current borrowings: | ||
| Between one to two years | 30/06/2024 US\$ 71,107,954 |
31/12/2023 US\$ 69,970,306 |
| 71,107,954 | 69,970,306 | |
| The weighted average effective interest rates at the reporting date were as follows: |
| 30/06/2024 | 31/12/2023 | |
|---|---|---|
| % | % | |
| Convertible bond | 6 | |
| Other loans | 3.5 |
On 28 December 2020 and on 24 February 2021, the Company issued 3.530 and 29.412 convertible bonds for a total value of US\$3.000.500 and US\$25.000.200, respectively, which were acquired by a third party subject to terms of aprivate term sheet. On 15 April 2022, the third party gave its consent for the 32.942 convertible bond to be converted from US Dollars to Euro using a rate of 1:1 which will be applicable to the nominal value, listing price and annual coupon terms in accordance with the revised private bonds term sheet. Additionally, on 15 April 2022, the Company issued to the third party an amount of 85.220 convertible bonds with a total value of €72.437.000. The convertible bonds bear a coupon rate of 0,75% and have a maturity date of 28th of June 2024.
The bonds were issued to the third party via a private placement.
On 27th of April 2022, the CSE has approved the listing of up to 120.000 bonds (initial listing 118.162 Bonds), with nominal value €1.000 and listing price of €850 each, as well as 24.883 ordinarry shares of nominal value and listing price of €1,03 each, pursuant to Article 58 (1) of the Securities and Cyprus Stock Echange Law, as well as the simultaneous listing of these securities in the Central Depository and Central Regisrty of the CSE, in accordance with respective Law.
| 2024 | 2023 | |
|---|---|---|
| Unaudited | Audited | |
| US\$ | US\$ | |
| Balance at 1 January | 8,580 | 24,453 |
| Exchange differences | - | 315 |
| Interest expense | 38 | 480 |
| Lease payments | (8,618) | (16,668) |
| Balance at 30 June/31 December | - | 8,580 |
| 30/06/2024 US\$ |
31/12/2023 US\$ |
|
| Maturity analysis: | ||
| Year 1 | - | 8,580 |
| - | 8,580 | |
| Less: unearned interest | - | - |
| - | 8,580 | |
| Analysed as: | ||
| Current | - | 8,580 |
| - | 8,580 |
It is the Group's policy to lease certain of its fixtures and equipment. The average lease term is 36 months. For period from 1 January 2024 to 30 June 2024, the average effective borrowing rate was 4.5% (2023: 4.5%). Interest rates are fixed at the contract date, and thus expose the Group to fair value interest rate risk. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
All lease obligations are denominated in Euro.
All lease obligations are denominated in United States Dollars.
The fair values of lease obligations approximate to their carrying amounts as presented above.
| 30/06/2024 | 31/12/2023 | |
|---|---|---|
| US\$ | US\$ | |
| Social insurance and other taxes | 17,434 | 16,980 |
| Accruals | 6,507 | 32,604 |
| Other creditors | 4,016 | 7,528 |
| 27,957 | 57,112 |
The fair values of other payables due within one year approximate to their carrying amounts as presented above.
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 consolidated 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 has 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.
Emerging 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 Israel-Gaza conflict has escalated significantly after Hamas launched a major attack on 7 October 2023. Companies with material subsidiaries, operations, investments, contractual arrangements or joint ventures in the War area might be significantly exposed. Entities that do not have direct exposure to Israel and Gaza Strip are likely to be affected by the overall economic uncertainty and negative impacts on the global economy and major financial markets arising from the war. This is a volatile period and situation, however, the Group is not directly exposed. Management will continue to monitor the situation closely and take appropriate actions when and if needed.
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 global 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 direct exposure to Russia, Ukraine, and Belarus and as such does not expect significant impact from direct exposures to these countries.
Management has considered the unique circumstances and the risk exposures of the Group and has concluded that there is no significant impact in the Group's profitability position. The event is not expected to have an immediate material impact on the business operations.
The Group is controlled by Esmena Investment Ltd, which owns 99.99% of Altrecom's PLC shares.
The following transactions were carried out with related parties:
The remuneration of Directors and other members of key management was as follows:
| 01/01/2024- | 01/01/2023- | |
|---|---|---|
| 30/06/2024 US\$ |
30/06/2023 US\$ |
|
| Directors' remuneration | 19,215 | 12,996 |
| 24.2 Loans to related parties (Note 15) | ||
| 30/06/2024 | 31/12/2023 | |
| US\$ | US\$ | |
| Esmena Investments Ltd | 114,444,550 | 116,175,111 |
| 30/06/2024 | 31/12/2023 | |
|---|---|---|
| Aspro Investment LLC | US\$ | US\$ |
| 71,107,954 | 69,970,306 | |
| 71,107,954 | 69,970,306 |
The Group had no contingent liabilities as at 30 June 2024.
The Group had no capital or other commitments as at 30 June 2024.
There were no material events after the reporting period, which have a bearing on the understanding of the consolidated financial statements.
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