TIME FINANCE PLC

Interim / Quarterly Report • Aug 28, 2024

The following is a Company Announcement issued by G3 FINANCE P.L.C., a company registered under the laws of Malta with company registration number C 94829 (hereinafter the "Company"), pursuant to the Capital Markets Rules issued by the Malta Financial Services Authority in accordance with the provisions of the Financial Markets Act (Chapter 345 of the laws of Malta), as amended from time to time.

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Approval and Publication of Half-Yearly Financial Statements

The Company announces that during a meeting of its Board of Directors held on the 28 th August 2024 the Company's half-yearly financial report and unaudited condensed interim financial statements for the six-month financial period ended 30th June 2024 were approved.

The Board resolved not to declare an interim dividend.

A copy of the aforesaid half-yearly unaudited financial statements, as approved, is available for viewing below as an attachment to this announcement and at the Company's registered office, and is also available for download from the following link on the G3 Group's website: https://www.g3.com.mt/investors/financial-statements/.

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By order of the Board

_____________________

Dr Luca Vella Company Secretary

28

th August 2024 Company Announcement: G329

_________________________________________________________________________________

G3 FINANCE p.l.c.

Condensed Interim Financial Statements 30 June 2024

Pages

Interim directors' report	1 - 2
Statement pursuant to Capital Markets Rule 5.75.3	3
Condensed statement of financial position	য
Condensed statement of comprehensive income	5
Condensed statement of changes in equity	6
Condensed statement of cash flows	7
Notes to the condensed interim financial statements	8 - 10

Interim directors' report

The directors present their report and the condensed interim financial statements in terms of Chapter 5 of the Capital Markets Rules issued by the Malta Financial Services Authority and the Prevention of Financial Markets Abuse Act, 2005. The condensed financial statements have been extracted from G3 Finance p.l.c. unaudited financial information as at 30 June 2024 and the six month period then ended, prepared in accordance with International Financial Reporting Standards as adopted for use in the EU for interim financial statements (International Accounting Standard 34, 'Interim Financial Reporting'). This half-yearly report has not been audited or reviewed by the Company's independent auditors.

Principal activities

The Company's principal activity is to carry out the financing of the business activities of the companies forming part of G3 Group.

Review of the business

The Company

The Company's revenue stream consists of interest charged to group companies on monies advanced for their operations. Finance income received from a related entity during the period ended 30 June 2024 amounted to €348,016 (2023: €387,863). Finance costs comprise interest payable to bondholders on the outstanding bond issue amounting to €280,025 (2023: €280,479). Profit before taxation for the current sixmonth period amounted to €14,557 (2023: €51,468).

Principal risks and uncertainties for the remaining six months of the financial year

The Company's principal activity is to act as a finance Company for the G3 Group of companies ("the Group"). In this context, the Company's ability to recover loans issued to its related entity is dependent on the performance of the Company within the Group to which amounts have been advanced.

The Group

The Group operates in the hospitality sector and its business activities involve principally the operations of the Pergola Hotel & Spa and the Solana Hotel & Spa, both located in Mellieha.

The Company also offers food and beverage services both as part of the hotels, as well through the operation of independent catering establishments.

The Group is therefore susceptible to local economic developments and overseas trends related to the demand for travelling.

During the first six months, the Group has continued to register an upturn in its results following a period of recovery from the negative effects of the global COVID-19 pandemic during the previous financial years. The Group's management continued monitoring the situation to make sure that the financial wellbeing of the Group is secure, while at the same time continuing its expansion in the leisure sector.

The Group has prepared projections for the year ending 31 December 2024, based on actual results for the six months ended 30 June 2024 and forecasts thereafter. For the first six months of 2024, the Group achieved above budget occupancy levels and exceeded budgeted revenues, which in turn resulted in better operational financial results. Management is hopeful that this positive trend will continue during the rest of the year. The Group is not expecting material changes to depreciation and net finance costs.

Interim directors' report - continued

These projections are available in the Financial Analysis Summary report issued in June 2024 and which is available on the Company's website https://www.g3.com.mt.

In view of the measures undertaken by the Group and the projections outlined above, the directors are of the opinion that the Company will have the necessary funds to finance the interest falling in April 2025 and thereafter.

The directors concur with the going concern assumption for preparation of these interim financial statements and do not envisage any material uncertainty in this regard.

Results and dividends

The directors do not recommend the payment of an interim dividend.

Directors

The directors of the Company who held office during the year were: Alexander Grima Daniel Grima John Grima Jonathan Grima Albert Grech Juanita Bencini Michael Lewis Macelli

Signed on behalf of the Board of directors:

John Grima Director

The Pergola Adenau Street Mellieha Malta

28 August 2024

Daniel Grima Director

Statement pursuant to Capital Markets Rule 5.75.3

We hereby confirm that to the best of our knowledge:

• · The condensed interim financial statements give a true and fair view of the financial vosition of the sed The condenticulining internet station of the financial performance and cash flows for the Said Oompany as at of ouris 25 June 2011 Reporting Standards as adopted by the EU applicable to interim financial reporting (IAS 34: 'Interim Financial Reporting'); and
• · The Interim directors' Report includes a fair review of the information required in terms of Capital Markets Rule 5.81.

Signed on behalf of the Board:

John Grima Director

28 August 2024

Daniel Grima Director

Condensed statement of financial position

ASSETS Non-current assets	Notes	As at 30 June 2024 € (unaudited)	As at 31 December 2023 € (audited)
Loans receivable	3	12,124,472	12,124,472
Current assets		769,796	1,011,797
Total assets		12,894,268	13,136,269
EQUITY AND LIABILITIES Total equity		269,681	260,219
LIABILITIES Non-current liabilities Borrowings	2	12,268,962	12,254,243
Current liabilities		355,625	621,807
Total liabilities		12,624,587	12,876,050
Total equity and liabilities		12,894,268	13,136,269

The notes on pages 8 to 10 are an integral part of these condensed interim financial statements.

The condensed interim financial statements on pages 4 to 10 were authorised for issue by the board of directors on 28 August 2024 and were signed on its behalf by:

ﻟ

John Grima Director

Daniel Grima Director

Condensed statement of comprehensive income

	6 months ended 30 June
	2024 € (unaudited)	2023 € (unaudited)
Finance income Finance costs	348,016 (280,025)	387,863 (280,479)
Administrative expenses	67,991 (53,434)	107,384 (55,916)
Profit before tax Tax expense	14,557 (5,095)	51,468 (18,013)
Profit for the period	9,462	33.455

The notes on pages 8 to 10 are an integral part of these condensed interim financial statements.

Condensed statement of changes in equity

	Share capital ਵ	Retained earnings/ (accumulated losses) €	Total €
Balance at 1 January 2023	252,000	(3,612)	248,388
Comprehensive income Profit for the period		33,455	33,455
Balance at 30 June 2023	252,000	29,843	281,843
Balance at 1 January 2024	252,000	8,219	260,219
Comprehensive income Profit for the period		9,462	9,462
Balance at 30 June 2024	252,000	17,681	269,681

The notes on pages 8 to 10 are an integral part of these condensed interim financial statements.

Condensed statement of cash flows

	6 months ended 30 June
	2024 € (unaudited)	2023 € (unaudited)
Cash flows (used in)/from operating activities Cash flows from financing activities	(48,585) 14,719	7.329 29,601
Net movement in cash and cash equivalents	(33,866)	36,930
Cash and cash equivalents at beginning of period	36,766
Cash and cash equivalents at end of period	2,900	36,930

Notes to the condensed interim financial statements

1. Basis of preparation

This condensed interim financial information for the six month period ended 30 June 2024 has been prepared in accordance with IAS 34, 'Interim financial reporting'. They have been prepared under the historical cost convention. These financial statements have not been audited nor reviewed by the Company's independent auditors. The condensed interim financial information does not include all the notes of the type normally included in a full set of annual financial statements. Accordingly, this report should be read in conjunction with the annual financial statements for the period ended 31 December 2023, which have been prepared in accordance with IFRSs as adopted by the EU.

The accounting policies applied in the preparation of these condensed interim financial statements are consistent with those applied in the annual financial statements for the period ended 31 December 2023.

2. Borrowings

	30 June 2024	31 December 2023
	€	€
Non-current
12,500,000 4.50% bonds, 2032	12,268,962	12,254,243

The bonds are measured at the amount of the net proceeds adjusted for the amortisation of the difference between the net proceeds and the redemption value of such bonds, using the effective interest method as follows:

	30 June 2024	31 December 2023
	€	€
Original face value of bonds issued	12,500,000	12,500,000
Bond issue costs Accumulated amortisation	(296,827) 65,789	(296,827) 51,070
Closing carrying amount of bond issue costs	(231,038)	(245,757)
Amortised cost and closing carrying amount of the bonds	12,268,962	12,254,243

2. Borrowings - continued

By virtue of a Prospectus dated 25 March 2022, G3 Finance p.l.c. ("the Issuer") issued an aggregate of €12,500,000 in bonds having a face value of €100 per bond, subject to a minimum holding of €2,000 and in multiples of €100 thereafter. The bonds have a coupon interest rate of 4.50% per annum payable on a yearly basis on 6 April each year. The bonds are guaranteed by G3 Holdings Limited, which has bound itself jointly and severally liable with the Issuer, for the repayment of the bonds and interest thereon, pursuant to and subject to the terms and conditions in the Prospectus. These bonds were admitted for listing on the Malta Stock Exchange on 6 April 2022.

The quoted market price for the bonds as at 30 June 2024 was €99.50 (31 December 2023: €99.70), which in the opinion of the directors fairly represents the fair value of these financial liabilities.

In accordance with the provisions of the Prospectus, the proceeds from the bond issue have been advanced by the Issuer to undertakings forming part of the G3 Group for the purpose of re-financing existing bank facilities within the Group and to finance future growth in operations.

3. Related party transactions

G3 Finance p.l.c. forms part of the G3 Group. All companies forming part of the G3 Group are related parties since these companies all have common ultimate controllers.

Following the bond issue, during 2022, G3 Finance p.l.c. advanced a loan to a related Company, G3 Hospitality Limited.

Trading transactions between these companies typically include Company interest charges, and other items which are normally encountered in a group context.

Balances with related parties at the end of the financial reporting periods were as follows:

	30 June	31 December
	2024	2023
	€	€
Loan receivable
Loan to fellow subsidiary	12,124,472	12,124,472
Current amounts receivable
Amounts due from fellow subsidiary	506,611	721.094
Amounts receivable from parent Company	251,997	251,997
Current amounts payable
Amounts due to fellow subsidiary	161,641	138,137

The loan receivable from fellow subsidiary is subject to a fixed interest rate of 5.8%. The loan is unsecured and is repayable by not later than 6 April 2032.

3. Related party transactions - continued

The following transactions were entered into with related parties during the financial reporting period:

	30 June	31 December
	2024	2023
	€	€
Expenses re-charged by related parties	23,503	54,896

The transactions disclosed above were carried out on commercial terms.

Interest and related income from related parties during the current and the comparative six-month period is disclosed below:

	6 months ended 30 June
	2024 €	2023 €
Finance income in respect of loan advanced to fellow subsidiary	348,016	387,863