REPORT AND CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

CONTENTS	PAGE

Board of Directors and other officers	1
Consolidated Management Report	2 - 3
Independent auditor's report	4 - 6
Consolidated statement of profit or loss and other comprehensive income	7
Consolidated statement of financial position	8
Consolidated statement of changes in equity	9
Consolidated cash flow statement	10
Notes to the consolidated financial statements	11 - 44
Additional information to the consolidated statement of profit or loss and other comprehensive income	45 - 48

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	Ioannis Papaioannou Ellie Kioupi Marcos Panteleimon Klerides Athanasios Martinos Marina Martinou Costas Neocleous Dionysios Psallidas Petros Kotsikis
Company Secretary:	K and K Secretarial Limited
Independent Auditors:	Markos Drakos & Co Ltd Chartered Accountants Kyriakou Matsi 11 Nikis Center, 6th Floor 1082 Nicosia, Cyprus
Registered office:	Kyriakou Matsi 11 NIKIS CENTER, 8th Floor 1082 Nicosia Cyprus
Bankers:	Bank of Cyprus Public Company Ltd HSBC Plc Credit Suisse AG Natwest Bank Plc
Registration number:	ΗΕ394500

CONSOLIDATED MANAGEMENT REPORT

The Board of Directors presents its report and audited consolidated financial statements of the Company and its subsidiaries (together with the Company, the ''Group'') for the year ended 31 March 2025.

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 not considered satisfactory and the Board of Directors is making an effort to reduce the Group's losses.

Principal risks and uncertainties

The principal risks and uncertainties faced by the Group are disclosed in notes 6, 7 and 31 of the consolidated financial statements.

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.

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 immovable property market price risk and 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 Company's debenture investments that are publicly traded are debentures of Russian banks that are not currently traded and are in default in paying to the debenture holders interest due on specific dates during 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 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.

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'.

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 March 2025

	Note	1/04/2024- 31/03/2025 UΚ£	1/04/2023- 31/03/2024 UΚ£
Revenue Rental expenses	8 9	28.513.069 (8.842.865)	21.330.195 (7.461.902)
Gross profit		19.670.204	13.868.293
Fair value losses on investment property Other operating income Loss from investing activities Selling and distribution expenses Administration expenses Net impairment profit/(loss) on financial and contract assets Other expenses	10 11 12 13	(65.763.837) 315.297 (104.137) (937.399) (1.231.297) 165.760 -	(2.035.562) 980.362 - (1.572) (843.532) (127.581) (2.168)
Operating (loss)/profit		(47.885.409)	11.838.240
Finance income Finance costs (Loss)/profit before tax	14 14	201.157 (294.612) (47.978.864)	464.000 (948.930) 11.353.310
Tax Net (loss)/profit for the year	15	(4.480.624) (52.459.488)	(2.841.601) 8.511.709
Other comprehensive income Exchange difference arising on the translation and consolidation of foreign companies' financial statements		263.722	(1.228.652)
Other comprehensive income for the year		263.722	(1.228.652)
Total comprehensive income for the year		(52.195.766)	7.283.057

The notes on pages 11 to 44 form an integral part of these consolidated financial statements.

	Note	31/03/2025 UKE	31/03/2024 UK £
ASSETS
Non-current assets
Plant and equipment		2.612	3.262
Right-of-use assets	1 ୧ 17	5.262.904 803.375.321	5.326.508 634.856.812
Investment properties	18	3.200.652	3.197.212
Intangible assets Financial assets at fair value through profit or loss	22	1.088.571
		812.930.060	643.383.794

Current assets	21	4.204.460	10.213.327
Trade and other receivables	23	26.158.192	28.607.060
Cash at bank		30.362.652	38.820.387
Total assets		843.292.712	682.204.181

EQUITY AND LIABILITIES
Equity			613.921.281
Share capital	24 24	613.921.281 5.479.440	5.479.440
Share premium	25	235.170.139	27.388.138
Other reserves Accumulated (losses) /retained earnings		(39.628.629)	12.830.859
Total equity		814.942.231	659.619.718

Non-current liabilities	26	8.441.131	8.308.036
Borrowings Lease liabilities	27	5.746.506	5.776.766
		14.187.637	14.084.802
Current liabilities
Trade and other payables	28	9.244.736	4.887.437
Deferred income	29	2.843.615	1.854.178
Borrowings	26	167	114
Lease liabilities	27	23.057	21.463
Current tax liabilities	30	2.051.269 14.162.844	1.736.469 8.499.661

Total liabilities		28.350.481	22.584.463
Total equity and liabilities		843.292.712	682.204.181

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2025

				Non		Accumulated
			Share	refundable	Translation	(losses)/retained
		Share capital	premium	advances	reserve	earnings	Total
	Note	UΚ£	UΚ£	UΚ£	UΚ£	UΚ£	UΚ£
Balance at 1 April 2023		547.394.670	563.124	38.295.998	11.601.251	4.319.150	602.174.193
Net profit for the year		-	-	-	-	8.511.709	8.511.709
Other comprehensive income for the year		-	-	-	(1.228.652)	-	(1.228.652)
Issue of share capital	24	66.526.611	4.916.316	-	-	-	71.442.927
Utilisation of non-refundable advances for increase in the share
capital		-	-	(21.280.459)	-	-	(21.280.459)
Balance at 31 March 2024/ 1 April 2024		613.921.281	5.479.440	17.015.539	10.372.599	12.830.859	659.619.718
Net loss for the year		-	-	-	-	(52.459.488)	(52.459.488)
Other comprehensive income for the year		-	-	-	263.722	-	263.722
Non-refundable advances from shareholders		-	-	207.518.279	-	-	207.518.279
Balance at 31 March 2025		613.921.281	5.479.440	224.533.818	10.636.321	(39.628.629)	814.942.231

Share premium and translation reserve are 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. 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 currency translation reserve are reclassified to profit or loss on the disposal or partial disposal of the 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.

Companies, which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic Law, within two years after the end of the relevant tax year, will be deemed to have distributed this amount as dividend on the 31 of December of the second year. The amount of the deemed dividend distribution is reduced by any actual dividend already distributed by 31 December of the second year for the year the profits relate. The Company pays special defence contribution on behalf of the shareholders over the amount of the deemed dividend distribution at a rate of 17% (applicable since 2014) when the entitled shareholders are natural persons tax residents of Cyprus and have their domicile in Cyprus. In addition, the Company pays on behalf of the shareholders General Healthcare System (GHS) contribution at a rate of 2,65%, when the entitled shareholders are natural persons tax residents of Cyprus, regardless of their domicile.

The notes on pages 11 to 44 form an integral part of these consolidated financial statements.

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 March 2025

	Note	1/04/2024- 31/03/2025 UΚ£	1/04/2023- 31/03/2024 UΚ£
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss)/profit before tax Adjustments for:		(47.978.864)	11.353.310
Depreciation of property, plant and equipment		650	445
Depreciation of right-of-use assets	16	63.604	63.835
Exchange difference arising on the translation of non-current assets
in foreign currencies		-	2.022.903
Exchange difference arising on the translation and consolidation of
foreign companies' financial statements		263.722	(1.228.652)
Unrealised exchange loss		161.826	791.975
Excess of Group's interest in the net fair value of the subsidiaries'
assets and liabilities over cost on acquisition		(296.258)	(378.349)
Fair value losses on investment property		65.763.837	2.035.562
Fair value losses on financial assets at fair value through profit or loss		104.137	-
(Reversal of impairment)/impairment charge of trade receivables	21	(165.760)	127.581
Interest income	14	(200.099)	(462.819)
Interest expense	14	115.796	116.490
		17.832.591	14.442.281
Changes in working capital:
Decrease/(increase) in trade and other receivables		5.968.170	(6.266.752)
Increase in financial assets at fair value through profit or loss		(1.192.708)	-
Decrease/(increase) in bank deposits		6.200.699	(10.024.319)
Increase in trade and other payables		4.264.912	658.116
Increase/(decrease) in deferred income Cash generated from/(used in) operations		989.437 34.063.101	(59.691) (1.250.365)
Tax paid		(4.187.124)	(3.229.101)
Net cash generated from/(used in) operating activities		29.875.977	(4.479.466)

CASH FLOWS FROM INVESTING ACTIVITIES
Payment for purchase of intangible assets	18	(3.440)	(47.340)
Payment for purchase of property, plant and equipment		-	(1.735)
Payment for purchase of investment property	17	(149.060.657)	(52.787.078)
Acquisition of subsidiaries, net cash outflow on acquisition	20	(62.018.474)	-
Interest received		200.099	462.819
Net cash used in investing activities		(210.882.472)	(52.373.334)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital		-	71.442.927
Non-refundable advances		207.518.279	(21.280.459)
Repayments of the balance from related parties		(22.491.167)	-
Payments of leases liabilities		(28.666)	(29.401)
Interest paid		(115.796)	(116.490)
Net cash generated from financing activities		184.882.650	50.016.577
Net increase/(decrease) in cash and cash equivalents		3.876.155	(6.836.223)
Cash and cash equivalents at beginning of the year		18.186.498	25.076.389
Effect of exchange rate fluctuations on cash held		(124.377)	(53.668)
Cash and cash equivalents at end of the year	23	21.938.276	18.186.498

The notes on pages 11 to 44 form an integral part of these consolidated financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

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 public limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. Its registered office is at Kyriakou Matsi 11, NIKIS CENTER, 8th Floor, 1082 Nicosia, Cyprus.

Principal activity

2. Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards, 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 IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) that are effective as of 1 January 2024 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 IFRS Accounting Standards 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 7.

3. Adoption of new or revised standards and interpretations

During the current year the Group adopted all the new and revised IFRS Accounting Standards that are relevant to its operations and are effective for accounting periods beginning on 1 April 2024. This adoption did not have a material effect on the accounting policies of the Group.

4. Material accounting policy information

The material accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all years presented in these consolidated financial statements unless otherwise stated.

Management seeks not to reduce the understandability of these consolidated financial statements by obscuring material information with immaterial information. Hence, only material accounting policy information is disclosed, where relevant, in the related disclosure notes.

Basis of consolidation

The Company has subsidiary undertakings for which section 142(1)(b) of the Cyprus Companies Law Cap. 113 requires consolidated financial statements to be prepared and laid before the Company at the Annual General Meeting. The Group consolidated financial statements comprise the financial statements of the parent company Easternmed Real Estate Capital plc and the financial statements of the subsidiaries Medholdings Company Ltd, Classpremium Ltd, Interclass Company Limited, Alphaforum Ltd, Forumprime Ltd, Alphafocus Ltd, Alphaspectrum Ltd, IHC Immobilien Limited, Alphaprecious Ltd, Medcenter Holdings Ltd, Medspectrum Limited, Medprestige Limited, Alphalegend Ltd, Primespectrum Ltd, Societe Anonyme Du Quai Du Leman, Interprize Holdings Ltd and Medastra Ltd.

4. Material accounting policy information (continued)

Basis of consolidation (continued)

The financial statements of all the Group companies are prepared using uniform accounting policies. All inter-company transactions and balances between Group companies have been eliminated during consolidation.

Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognised in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition date, except that:

deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date; and
assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests' proportionate share of the recognised amounts of the acquiree's identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the 'measurement period' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37 Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being recognised in profit or loss.

4. Material accounting policy information (continued)

Business combinations (continued)

When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date (i.e. the date when the Group obtains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognised at that date.

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the net identifiable assets of the acquired undertaking at the date of acquisition. Goodwill on acquisition of subsidiaries is included in ''intangible assets''. Goodwill on acquisitions of associates is included in ''Investments in associates''. Goodwill on acquisitions of investments in joint ventures is included in ''investments in joint ventures''.

Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an undertaking include the carrying amount of goodwill relating to the undertaking sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing.

Any excess of the interest in the net fair value of acquiree's identifiable assets, liabilities and contingent liabilities over cost is recognised immediately in profit or loss.

Revenue

Recognition and measurement

Revenue represents the amount of consideration to which the Group expects to be entitled in exchange for transferring the promised services to the tenants (renting of the property and other ancillary services) , excluding amounts collected on behalf of third parties (for example, value-added taxes); the transaction price. The Group includes in the transaction price an amount of variable consideration as a result of rebates/discounts only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimations for rebates and discounts are based on the Group's experience with similar contracts and forecasted rental and other income from the tenants.

The Group recognises revenue when the parties have approved the contract (in writing, orally or in accordance with other customary business practices ) and are committed to perform their respective obligations, the Group can identify each party's rights and the payment terms for the rental income to be transferred, the contract has commercial substance (i.e. the risk, timing or amount of the Group's future cash flows is expected to change as a result of the contract), it is probable that the Group will collect the consideration to which it will be entitled in exchange for the renting of the properties that will be transferred to the tenants and when specific criteria have been met for each of the Group's contracts with tenants.

The Group bases its estimates on historical results, taking into consideration the type of tenants, the type of transaction and the specifics of each arrangement. In evaluating whether collectability of an amount of consideration is probable, the Group considers only the tenant's ability and intention to pay that amount of consideration when it is due.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Revenue (continued)

Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimates are reflected in the consolidated statement of profit or loss and other comprehensive income in the period in which the circumstances that give rise to the revision become known by Management.

Identification of performance obligations

The Group assesses whether contracts that involve the provision of a range of services contain one or more performance obligations (that is, distinct promises to provide a service) and allocates the transaction price to each performance obligation identified on the basis of its stand-alone selling price. A service that is promised to a tenant is distinct if the tenant can benefit from the service, either on its own or together with other resources that are readily available to the tenants (that is the service is capable of being distinct) and the Group's promise to transfer the service to the tenant is separately identifiable from other promises in the contract (that is, the service is distinct within the context of the contract).

Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a tenant and excludes amounts collected on behalf of third parties. The Group recognises revenue when it transfers control of service to a tenant.

Rental income

Rental income is recognised on an accruals basis in accordance with the substance of the relevant agreements.

Investment property rental income

Rental income from investment property is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

Other income from property is recognised as other income from properties.

Finance income

Interest income is recognised on a time-proportion basis using the effective method.

Finance costs

Interest expense and other borrowing costs are charged to profit or loss as incurred.

Foreign currency translation

(1) Functional and presentation currency

Items included in the Group's financial statements are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in United Kingdom Pounds (UΚ£), which is the Group's functional and presentation currency.

(2) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Translation differences on non-monetary items such as equities held at fair value through profit or loss are reported as part of the fair value gain or loss.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Tax

Current tax liabilities and assets are measured at the amount expected to be paid to or recovered from the taxation authorities, using the tax rates and laws that have been enacted, or substantively enacted, by the reporting date.

Deferred income

Deferred income represents income receipts which relate to future periods.

Investment properties

Investment properties, principally comprising of shops and offices buildings, is held for long-term rental yields and/or for capital appreciation and are not occupied by the Group. Investment properties are carried at fair value, representing open market value determined annually by the Board of Directors and every 3-5 years by external, independent professional valuers. Changes in fair values are recorded in profit or loss and are included in other operating income.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the continued use of the asset. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised.

Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:

the contract involves the use of an identified asset this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
the Group has the right to direct the use of the asset. The Group has this right when it has the decisionmaking rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Group has the right to direct the use of the asset if either:
- the Group has the right to operate the asset; or
- the Group designed the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

The Group as lessor

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Leases (continued)

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Group applies IFRS 15 to allocate the consideration in the contract.

The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term as part of 'other income'.

The accounting policies applicable to the Group as a lessor in the comparative period were not different from IFRS 16. However, when the Group was an intermediate lessor the sub-leases were classified with reference to the underlying asset.

Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that have a definite useful life are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non financial assets, other than goodwill, that have suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

Financial assets - Classification

The Group classifies its financial assets in the following measurement categories:

those to be measured subsequently at fair value (either through OCI or through profit or loss), and
those to be measured at amortised cost.

The classification and subsequent measurement of debt financial assets depends on: (i) the Group's business model for managing the related assets portfolio and (ii) the cash flow characteristics of the asset. On initial recognition, the Group may irrevocably designate a debt financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

For investments in equity instruments that are not held for trading, the classification will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). This election is made on an investment-by-investment basis.

All other financial assets are classified as measured at FVTPL.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Financial assets - Recognition and derecognition

All purchases and sales of financial assets that require delivery within the time frame established by regulation or market convention (''regular way'' purchases and sales) are recorded at trade date, which is the date when the Group commits to deliver a financial instrument. All other purchases and sales are recognised when the entity becomes a party to the contractual provisions of the instrument.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

Financial assets - Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Debt instruments

Subsequent measurement of debt instruments depends on the Group's business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in 'other income'. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the consolidated statement of profit or loss and other comprehensive income. Financial assets measured at amortised cost (AC) comprise: cash and cash equivalents, bank deposits with original maturity over 3 months, trade receivables and financial assets at amortised cost.

FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in ''other income''. Foreign exchange gains and losses are presented in ''other gains/(losses)'' and impairment expenses are presented as separate line item in the consolidated statement of profit or loss and other comprehensive income.

FVTPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and presented net within ''other gains/(losses)'' in the period in which it arises.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Financial assets - Measurement (continued)

Equity instruments

The Group subsequently measures all equity investments at fair value. Where the Group's Management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment, any related balance within the FVOCI reserve is reclassified to retained earnings. The Group's policy is to designate equity investments as FVOCI when those investments are held for strategic purposes other than solely to generate investment returns. Dividends from such investments continue to be recognised in profit or loss as other income when the Group's right to receive payments is established.

Changes in the fair value of financial assets at FVTPL are recognised in ''other gains/(losses)'' in the consolidated statement of profit or loss and other comprehensive income as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVTPL are not reported separately from other changes in fair value.

Financial assets - impairment - credit loss allowance for ECL

The Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost and FVOCI and exposure arising from loan commitments and financial guarantee contracts. The Group measures ECL and recognises credit loss allowance at each reporting date. The measurement of ECL reflects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future conditions.

The carrying amount of the financial assets is reduced through the use of an allowance account, and the amount of the loss is recognised in the consolidated statement of profit or loss and other comprehensive income within ''net impairment losses on financial and contract assets. Subsequent recoveries of amounts for which loss allowance was previously recognised are credited against the same line item.

Debt instruments carried at amortised cost are presented in the consolidated statement of financial position net of the allowance for ECL. For loan commitments and financial guarantee contracts, a separate provision for ECL is recognised as a liability in the consolidated statement of financial position.

For debt instruments at FVOCI, an allowance for ECL is recognised in profit or loss and it affects fair value gains or losses recognised in OCI rather than the carrying amount of those instruments.

The impairment methodology applied by the Group for calculating expected credit losses depends on the type of financial asset assessed for impairment. Specifically:

For trade receivables and contract assets, including trade receivables and contract assets with a significant financing component, and lease receivables the Group applies the simplified approach permitted by IFRS 9, which requires lifetime expected credit losses to be recognised from initial recognition of the financial assets.

For all other financial instruments that are subject to impairment under IFRS 9, the Group applies general approach - three stage model for impairment. The Group applies a three stage model for impairment, based on changes in credit quality since initial recognition. A financial instrument that is not creditimpaired on initial recognition is classified in Stage 1.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Financial assets - impairment - credit loss allowance for ECL (continued)

Financial assets in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months or until contractual maturity, if shorter (''12 Months ECL''). If the Group identifies a significant increase in credit risk (''SICR'') since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up until contractual maturity but considering expected prepayments, if any (''Lifetime ECL''). Refer to note 6, Credit risk section, for a description of how the Group determines when a SICR has occurred. If the Group determines that a financial asset is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL. The Group's definition of credit impaired assets and definition of default is explained in note 6, Credit risk section.

Additionally the Group has decided to use the low credit risk assessment exemption for investment grade financial assets. Refer to note 6, Credit risk section for a description of how the Group determines low credit risk financial assets.

Financial assets - Reclassification

Financial instruments are reclassified only when the business model for managing those assets changes. The reclassification has a prospective effect and takes place from the start of the first reporting period following the change.

Financial assets - write-off

Financial assets are written-off, in whole or in part, when the Group exhausted all practical recovery efforts and has concluded that there is no reasonable expectation of recovery. The write-off represents a derecognition event. The Group may write-off financial assets that are still subject to enforcement activity when the Group seeks to recover amounts that are contractually due, however, there is no reasonable expectation of recovery.

Financial assets - modification

The Group sometimes renegotiates or otherwise modifies the contractual terms of the financial assets. The Group assesses whether the modification of contractual cash flows is substantial considering, among other, the following factors: any new contractual terms that substantially affect the risk profile of the asset (e.g. profit share or equity-based return), significant change in interest rate, change in the currency denomination, new collateral or credit enhancement that significantly affects the credit risk associated with the asset or a significant extension of a loan when the borrower is not in financial difficulties.

If the modified terms are substantially different, the rights to cash flows from the original asset expire and the Group derecognises the original financial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a SICR has occurred. The Group also assesses whether the new loan or debt instrument meets the SPPI criterion. Any difference between the carrying amount of the original asset derecognised and fair value of the new substantially modified asset is recognised in profit or loss, unless the substance of the difference is attributed to a capital transaction with owners.

In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to make the originally agreed payments, the Group compares the original and revised expected cash flows to assets whether the risks and rewards of the asset are substantially different as a result of the contractual modification. If the risks and rewards do not change, the modified asset is not substantially different from the original asset and the modification does not result in derecognition. The Group recalculates the gross carrying amount by discounting the modified contractual cash flows by the original effective interest rate, and recognises a modification gain or loss in profit or loss.

4. Material accounting policy information (continued)

Cash and cash equivalents

For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks and bank overdrafts. In the consolidated statement of financial position, bank overdrafts are included in borrowings in current liabilities. Cash and cash equivalents are carried at amortised cost because: (i) they are held for collection of contractual cash flows and those cash flows represent SPPI, and (ii) they are not designated at FVTPL.

Classification as financial assets at amortised cost

These amounts generally arise from transactions outside the usual operating activities of the Group. They are held with the objective to collect their contractual cash flows and their cash flows represent solely payments of principal and interest. Accordingly, these are measured at amortised cost using the effective interest method, less provision for impairment. Financial assets at amortised cost are classified as current assets if they are due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current assets.

Classification as trade receivables

Trade receivables are amounts due from tenants for services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less loss allowance.

Trade receivables are recognised initially at the amount specified in the rental agreements signed unless they contain significant financing components, in which case they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.

Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. See note 6, Credit risk section.

Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a tenant to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 180 days past due.

Financial liabilities - measurement categories

Financial liabilities are initially recognised at fair value and classified as subsequently measured at amortised cost, except for (i) financial liabilities at FVTPL: this classification is applied to derivatives, financial liabilities held for trading (e.g. short positions in securities), contingent consideration recognised by an acquirer in a business combination and other financial liabilities designated as such at initial recognition and (ii) financial guarantee contracts and loan commitments.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

Trade payables

Trade payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest rate method.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Financial liabilities - Modifications

An exchange between the Group and its original lenders of debt instruments with substantially different terms, as well as substantial modifications of the terms and conditions of existing financial liabilities, are accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability. (In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered.)

If an exchange of debt instruments or modification of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modification is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modified liability.

Modifications of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch up method, with any gain or loss recognised in profit or loss, unless the economic substance of the difference in carrying values is attributed to a capital transaction with owners and is recognised directly to equity.

Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premium relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings, finance lease charges and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalised as part of the cost of that asset, when it is probable that they will result in future economic benefits to the Group and the costs can be measured reliably.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. This is not generally the case with master netting agreements, and the related assets and liabilities are presented gross in the consolidated statement of financial position.

Prepayments

Prepayments are carried at cost less provision for impairment. A prepayment is classified as non-current when the services relating to the prepayment are expected to be obtained after one year, or when the prepayment relates to an asset which will itself be classified as non-current upon initial recognition. Prepayments to acquire assets are transferred to the carrying amount of the asset once the Group has obtained control of the asset and it is probable that future economic benefits associated with the asset will flow to the Group. Other prepayments are written off to profit or loss when the services relating to the prepayments are received. If there is an indication that the assets and services relating to a prepayment will not be received, the carrying value of the prepayment is written down accordingly and a corresponding impairment loss is recognised in profit or loss.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Share capital

Ordinary shares are classified as equity. The difference between the fair value of the consideration received by the Company and the nominal value of the share capital being issued is taken to the share premium account.

Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Group expects a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain.

Comparatives

Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year.

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. Financial risk management

Financial risk factors

The Group is exposed to market price risk, interest rate risk, credit risk, liquidity risk, currency risk, operational risk, compliance risk, reputation risk, capital risk management and other risks arising from the financial instruments it holds. The risk management policies employed by the Group to manage these risks are discussed below:

6.1 Market price risk

The Group is exposed to debenture price risk because of debentures 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 that are publicly traded are included in the Moscow Stock Exchange. The debenture investments of the Group have been fully impaired.

To manage its price risk arising from investments in debenture securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group's Board of Directors.

6.2 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

6. Financial risk management (continued)

6.3 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 cash and cash equivalents, deposits with banks and financial institutions, as well as credit exposures to tenants, including outstanding receivables.

(i) Risk management

If tenants are independently rated, these ratings are used. Otherwise, if there is no independent rating, Management assesses the credit quality of the tenants, taking into account its financial position, past experience and other factors.

These policies enable the Group to reduce its credit risk significantly.

(ii) Impairment of financial assets

The Group has the following types of financial assets that are subject to the expected credit loss model:

trade receivables
cash and cash equivalents

The impairment methodology applied by the Group for calculating expected credit losses depends on the type of financial asset assessed for impairment. Specifically:

For trade receivables the Group applies the simplified approach permitted by IFRS 9, which requires lifetime expected losses to be recognised from initial recognition of the financial assets.
For all other financial assets that are subject to impairment under IFRS 9, the Group applies general approach - three stage model for impairment. The Group applies a three-stage model for impairment, based on changes in credit quality since initial recognition. A financial asset that is not credit-impaired on initial recognition is classified in Stage 1. Financial assets in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months or until contractual maturity, if shorter (''12 Months ECL''). If the Group identifies a significant increase in credit risk (''SICR'') since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up until contractual maturity but considering expected prepayments, if any (''Lifetime ECL''). If the Group determines that a financial asset is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL.

Impairment losses are presented as net impairment losses on financial and contract assets within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.

Significant increase in credit risk

The Group considers the probability of default upon initial recognition of the asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Group compares the risk of a default occurring on the financial asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:

internal credit rating
external credit rating (as far as available)
actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower's/counterparty's ability to meet its obligations

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

6. Financial risk management (continued)

6.3 Credit risk (continued)

(ii) Impairment of financial assets (continued)

actual or expected significant changes in the operating results of the borrower/counterparty
significant increases in credit risk on other financial instruments of the same borrower/counterparty
significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements
significant changes in the expected performance and behaviour of the borrower/counterparty, including changes in the payment status of counterparty in the Group and changes in the operating results of the borrower/counterparty.

Macroeconomic information (such as market interest rates or growth rates) is incorporated as part of the internal rating model. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. No significant changes to estimation techniques or assumptions were made during the reporting period.

Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 30 days past due in making a contractual payment.

Low credit risk

The Group has decided to use the low credit risk assessment exemption for investment grade financial assets. Management consider 'low credit risk' for listed bonds to be an investment grade credit rating with at least one major rating agency. Other instruments are considered to be low credit risk when they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term.

Default

A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when they fall due.

Write-off

Financial assets are written off when there is no reasonable expectation of recovery, such as a tenants failing to engage in a repayment plan with the Group. The Group categorises a debt financial asset for write off when a tenants fails to make contractual payments greater than 180 days past due. Where debt financial assets have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

Trade receivables and contract assets

The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due.

The Group has recognised a loss of UK168.194 (31/03/2024:NIL) for the impairment of its trade receivables during the year ended 31 March 2025. The loss has been included in selling and distribution costs in profit or loss.

There were no significant trade receivable balances written off during the year that are subject to enforcement activity.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

6. Financial risk management (continued)

6.3 Credit risk (continued)

(ii) Impairment of financial assets (continued)

Cash and cash equivalents

The Group assesses, on a group basis, its exposure to credit risk arising from cash at bank. This assessment takes into account, ratings from external credit rating institutions and internal ratings, if external are not available.

Bank deposits held with banks with investment grade rating are considered as low credit risk.

The ECL on current accounts is considered to be approximate to 0, unless the bank is subject to capital controls. The ECL on deposits accounts is calculated by considering published PDs for the rating as per Moody's and an LGD of 40-60% as published by ECB.

The Group does not hold any collateral as security for any cash at bank balances.

There were no significant cash at bank balances written off during the year that are subject to enforcement activity.

(iii) Expected credit loss on trade receivables and impairment charge in investment in subsidiary recognised in profit or loss

During the year, the following gains/(losses) were recognised in profit or loss in relation to impaired financial assets and contract assets:

Impairment losses	1/04/2024-	1/04/2023-
	31/03/2025	31/03/2024
	UΚ£	UΚ£
Impairment charge - trade receivables	-	(127.593)
Reversal of impairment - trade receivables	165.760	12
Net impairment profit/(loss) on financial and contract assets	165.760	(127.581)

(iv) Financial assets at fair value through profit or loss

6.4 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.

The following tables detail the Group's remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

6. Financial risk management (continued)

6.4 Liquidity risk (continued)

31 March 2025	Carrying amounts UΚ£	Contractual cash flows UΚ£	3 months or UΚ£	less 3-12 months UΚ£	1-2 years UΚ£	2-5 years UΚ£	More than 5 years UΚ£
Lease liabilities	5.769.563	5.769.563	-	138.247	276.494	671.528	4.683.294
Bank overdrafts Trade and	167	167	-	167	-	-	-
other payables Payables to	6.251.748	6.251.748	-	6.251.748	-	-	-
related parties	51.382	51.382	-	51.382	-	-	-
Loans from
other related
parties	8.441.131	8.441.131	-	-	-	8.441.131	-
	20.513.991	20.513.991	-	6.441.544	276.494	9.112.659	4.683.294

31 March 2024	Carrying	Contractual	3 months or				More than
	amounts	cash flows		less 3-12 months	1-2 years	2-5 years	5 years
	UΚ£	UΚ£	UΚ£	UΚ£	UΚ£	UΚ£	UΚ£
Lease liabilities	5.798.229	5.798.229	-	137.035	274.070	411.105	4.976.019
Bank overdrafts	114	114	-	114	-	-	-
Trade and
other payables	3.379.818	3.379.818	-	3.379.818	-	-	-
Payables to
related parties	48.603	48.603	-	48.603	-	-	-
Loans from other related
parties	8.308.036	8.308.036	-	-	-	8.308.036	-
	17.534.800	17.534.800	-	3.565.570	274.070	8.719.141	4.976.019

6.5 Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Group's measurement currency. The Group is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Swiss Franc and Euro.. The Group's Management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

6.6 Operational risk

Operational risk is the risk that derives from the deficiencies relating to the Group's information technology and control systems as well as the risk of human error and natural disasters. The Group's systems are evaluated, maintained and upgraded continuously.

6.7 Compliance risk

Compliance risk is the risk of financial loss, including fines and other penalties, which arises from noncompliance with laws and regulations of the state. The risk is limited to a significant extent due to the supervision applied by the Compliance Officer, as well as by the monitoring controls applied by the Group.

6.8 Reputation risk

The risk of loss of reputation arising from the negative publicity relating to The Group's operations (whether true or false) may result in a reduction of its clientele, reduction in revenue and legal cases against the Group. The Group applies procedures to minimize this risk.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

6. Financial risk management (continued)

6.9 Capital risk management

The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The Group's overall strategy remains unchanged from last year.

6.10 Other risks

Negative trends in economic activity, and specifically the real estate markets in United Kingdom and Switzerland may affect the occupier demand ,rental rates and investment valuation in respect of the Group's properties. The Group is focused on leasing to credit worthly tenants with either moderate exposure to developments in the economies it operates and/or with very sound financial standing.

Any error or negative trend in valuations of properties would significantly impact the results of the Group. Changes in occupational trends (e.g. requirement for more flexible space and building management technologies) can impact future revenue generating capacity and hence impact the valuation of properties.

7. 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

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

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.

Impairment of financial assets

The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Group's past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Details of the key assumptions and inputs used are disclosed in note 6, Credit risk section.

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.

8. Revenue

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

Disaggregation of revenue	1/04/2024-	1/04/2023-
	31/03/2025	31/03/2024
	UΚ£	UΚ£
Rent receivable	28.084.686	20.945.965
Other income from property	428.383	384.230
	28.513.069	21.330.195

9. Rental expenses

	1/04/2024-	1/04/2023-
	31/03/2025	31/03/2024
	UΚ£	UΚ£
Property rates and taxes	341.326	241.133
Energy expenses	136.884	-
Repairs and maintenance	5.819.673	4.596.526
Electricity	612.766	978.540
Water supply and cleaning	66.719	61.604
Insurance	676.384	455.842
Sundry expenses	243.005	286.152
Other professional fees	241.042	160.013
Management fees	487.546	572.857
Salary expenses abroad	217.520	94.188
Depreciation	-	15.047
	8.842.865	7.461.902
10. Other operating income
Operating lease rentals receivable	3.350	1.831
Excess of Group's interest in the net fair value of the subsidiaries' assets and
liabilities over cost on acquisition	296.258	378.349
Compensation for early termination of rental contracts	15.689	600.182
	315.297	980.362


11. Loss from investing activities
	1/04/2024-	1/04/2023-
	31/03/2025	31/03/2024
	UΚ£	UΚ£
Fair value losses on financial assets at fair value through profit or loss	(104.137)	-
	(104.137)	-
12. Administration expenses

	1/04/2024-	1/04/2023-
	31/03/2025	31/03/2024
	UΚ£	UΚ£
Common expenses	811	909
Municipality taxes	957	480
Annual levy	3.106	442
Electricity	1.247	1.632
Water supply and cleaning	138	1.548
Sundry expenses	3.508	9.658
Stationery and printing	-	231
Auditors' remuneration - current year	74.139	59.744
Auditors' remuneration - prior years Accounting fees	8.457 46.970	1.521 44.521
Legal fees	2.151	2.185
Directors' fees	5.911	-
Other professional fees	968.756	612.179
Overseas travelling	50.892	44.202
Depreciation of right-of-use assets	63.604	63.835
Depreciation	650	445
	1.231.297	843.532

13. Other expenses

	1/04/2024- 31/03/2025 UΚ£	1/04/2023- 31/03/2024 UΚ£
Incorporation expenses	-	2.168
	-	2.168
14. Finance income/(costs)
	1/04/2024- 31/03/2025 UΚ£	1/04/2023- 31/03/2024 UΚ£
Finance income Bank interest Interest on bank current accounts	200.099 -	453.415 6.648
Other interest income Realised foreign exchange profit Unrealised foreign exchange profit	- 825 233	2.756 1.144 37
Bank and other loans interest	201.157	464.000
Finance costs
Interest expense Interest on obligations under finance leases	(115.796)	(116.490)
Sundry finance expenses Bank charges	(16.186)	(40.045)
Net foreign exchange losses Realised foreign exchange loss Unrealised foreign exchange loss	(571) (162.059)	(383) (792.012)
	(294.612)	(948.930)
Net finance costs	(93.455)	(484.930)
15. Tax
	1/04/2024- 31/03/2025 UΚ£	1/04/2023- 31/03/2024 UΚ£
Corporation tax - current year Corporation tax - prior years Overseas tax	130.092 (22.791) 4.372.373	104.257 (7.482) 2.744.826
Defence contribution - prior years Charge for the year	950 4.480.624	- 2.841.601

15. Tax (continued)

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

	1/04/2024-	1/04/2023-
	31/03/2025	31/03/2024
	UΚ£	UΚ£
(Loss)/profit before tax	(47.978.864)	11.353.310
Tax calculated at the applicable tax rates	(5.997.358)	1.419.164
Tax effect of expenses not deductible for tax purposes	8.319.386	416.403
Tax effect of allowances and income not subject to tax	(2.365.657)	(1.734.139)
10% additional charge	173.721	2.829
Prior year tax	(21.841)	(7.482)
Overseas tax in excess of credit claim used during the year	4.372.373	2.744.826
Tax charge	4.480.624	2.841.601

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 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%.

The Group's rental and other property 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. In the United Kingdom the corporation tax rate is 25% on the taxable profits.

16. Right-of-use assets

	Land and buildings UΚ£
Cost
Balance at 1 April 2023	5.880.440
Exchange differences	(839)
Balance at 31 March 2024/ 1 April 2024	5.879.601
Balance at 31 March 2025	5.879.601
Depreciation
Balance at 1 April 2023	489.258
Charge for the year	63.835
Balance at 31 March 2024/ 1 April 2024	553.093
Charge for the year	63.604
Balance at 31 March 2025	616.697
Net book amount
Balance at 31 March 2025	5.262.904
Balance at 31 March 2024	5.326.508

16. Right-of-use assets (continued)

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:

	1/04/2024-	1/04/2023-
	31/03/2025	31/03/2024
	UΚ£	UΚ£
Depreciation of right-of-use assets	(63.604)	(63.835)
Interest expense on lease liabilities	(115.796)	(116.490)

17. Investment properties

	31/03/2025	31/03/2024
	UΚ£	UΚ£
Balance at 1 April	634.856.812	586.624.370
Additions	234.023.537	52.787.078
Exchange differences	258.809	(2.519.074)
Fair value adjustment	(65.763.837)	(2.035.562)
Balance at 31 March	803.375.321	634.856.812

Fair value hierarchy

The fair value of investment properties owned by the Group as at 31 March 2024 was determined by the Board of Directors of each of the Group companies at GBP803.375.321 (31/03/2024:GBP634.856.812) 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. Company has no valuation of the investment property as at this date from an external, independent property valuer. The Company obtains valuation of its investment property from external, independent property valuers who have appropriate, recognised and professional qualifications and recent experience in the location and category of the property periodically.

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 31 March 2025 technique UΚ£	Unobservable input	Range (weighted average)	Relationship of unobservable inputs to fair values
Commercial offices building in London	108.200.000 Income approach	Assessment the location of the property	of Market value of the building UK£ 849 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 FINANCIAL STATEMENTS For the year ended 31 March 2025

17. Investment properties (continued)

Description	Fair value at Valuation 31 March 2025 technique UΚ£	Unobservable input	Range (weighted average)	Relationship of unobservable inputs to fair values
Commercial offices building in London	30.000.000 Income approach	Assessment of the location of the property	Market value of the building UK£ 463 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices and shops building in London	30.200.000 Income approach	Assessment of the location of the property	Market value of the building UK£ 626 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices building in London	13.000.000 Income approach	Assessment of the location of the property	Market value of the building UK£ 569 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices and shops building in London	27.450.000 Income approach	Assessment of the location of the property	Market value of the building UK£ 623 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices building in London	21.900.000 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 offices building in London	8.200.000 Income approach	Assessment of the location of the property	Market value of the building UK£ 824 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices and shops building in Geneva	86.858.177 Income approach	Assessment of the location of the property	Market value of the building UK£ 608 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices and shops building in Geneva	56.611.197 Income approach	Assessment of the location of the property	Market value of the building UK£ 2.208 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 FINANCIAL STATEMENTS For the year ended 31 March 2025

17. Investment properties (continued)

Description	Fair value at Valuation 31 March 2025 technique UΚ£	Unobservable input	Range (weighted average)	Relationship of unobservable inputs to fair values
Commercial offices building in London	146.000.000 Income approach	Assessment the location of the property	of Market value of the building UK£ 649 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices building in London	24.015.278 Income approach	Assessment the location of the property	of Market value of the building UK£ 887 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices and shops building in Geneva	27.170.570 Income approach	Assessment the location of the property	of Market value of the building UK£ 887 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices building in London	65.020.852 Income approach	Assessment the location of the property	of Market value of the building UK£ 1.418 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices building in London	37.844.739 Income approach	Assessment the location of the property	of Market value of the building UK£ 343 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices building in London	35.941.629 Income approach	Assessment the location of the property	of Market value of the building UK£ 671 per square foot.	The fair value will increase/(decrease) if the rental income increases/(decreases) and the corresponding return increases/(decreases)
Commercial offices and shops building in Geneva	84.962.880 Income approach	Assessment the location of the property	of Market value of the building UK£ 3.762 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 FINANCIAL STATEMENTS For the year ended 31 March 2025

17. Investment properties (continued)

Details of investment properties are as follows:

	31/03/2025 UΚ£	31/03/2024 UΚ£
Type
Commercial buildings in London	523.757.219	432.400.030
Commercial buildings in Geneva	279.618.102	202.456.782
	803.375.321	634.856.812

During the year, the Group received rental income amounting to UΚ£28.084.686.

18. Intangible assets

	Goodwill UΚ£
Cost
Balance at 1 April 2023 Additions	3.149.872 47.340
Balance at 31 March 2024/ 1 April 2024	3.197.212
Additions	3.440
Balance at 31 March 2025	3.200.652
Net book amount
Balance at 31 March 2025	3.200.652
Balance at 31 March 2024	3.197.212

Goodwill represents the premium paid to acquire the below listed companies and has been allocated for impairment testing purposes to these companies:

Alphafocus Ltd
IHC Immobilien Limited
Alphaprecious Limited
Medspectrum Limited
Medprestige Limited
Medastra Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

19. Investments in subsidiaries

The details of the subsidiaries are as follows:

Name	Country of	Principal activities	Holding	31/03/2025	31/03/2024
Medholdings Company Limited	incorporation Cyprus	Investments in properties	% 100	UΚ£	UΚ£ 100.980.895 100.980.895
Classpremium Ltd	Cyprus	Investments in properties	100	30.599.019	30.092.353
Interclass Company Limited	Cyprus	Investments in properties	100	31.068.009	34.365.418
Alphaforum Ltd	Cyprus	Investments in properties	100	13.180.001	15.364.125
Forumprime Ltd	Cyprus	Investments in properties	100	29.132.817	30.296.523
Alphafocus Ltd	Cyprus	Investments in properties	100	21.328.906	21.328.906
Alphaspectrum Ltd	Cyprus	Investments in properties	100	8.510.519	7.477.111
IHC Immobilien Limited	Domiciled in Cyprus	Investments in properties	100	60.648.746	58.891.314
Medcenter Holdings Ltd	Cyprus	Investments in properties	100	36.893.682	36.893.682
Alphaprecious Ltd	Cyprus	Investments in properties	100	72.368.813	94.711.332
Medspectrum Limited	Cyprus	Investments in properties	100	74.073.226	94.709.641
Medprestige Limited	Cyprus	Investments in properties	100	6.238.154	23.522.047
Alphalegend Ltd	Cyprus	Investments in properties	100	64.800.405	5.980.345
Primespectrum Ltd	Cyprus	Investments in properties	100	23.522.049	6.248.297
Societe Anonyme Du Quai Du Leman	Switzerland	Investments in properties	100	62.018.474	-
Interprize Holdings Ltd	Cyprus	Investments in properties	100	37.378.840	-
Medastra Ltd	Cyprus	Investments in properties	100	35.859.499	-
					708.602.054 560.861.989

20. Acquisition of subsidiary

On 16 December 2024 the Group acquired 100% of the share capital of Societe Anonyme Du Quai Du Leman, a company incorporated in Switzerland. The transaction has been accounted for by the purchase method of accounting.

The assets and liabilities acquired were as follows:

		Acquiree's
	Societe	carrying
	Anonyme Du	amount before
	Quai Du Leman	combination	Fair value
	UΚ£	UΚ£	UΚ£
Investment Property	84.962.880	84.962.880	84.962.880
Deposits	89.802	89.802	89.802
Trade and other payables	(92.387)	(92.387)	(92.387)
Current tax liabilities	(21.300)	(21.300)	(21.300)
Balance from related parties	(22.624.262)	(22.624.262)	(22.624.262)
Net assets acquired	62.314.733	62.314.733	62.314.733
Net assets acquired	62.314.733	62.314.733	124.629.466
Net cash flow on acquisition of subsidiaries		1/04/2024-	1/04/2023-
		31/03/2025	31/03/2024
		UΚ£	UΚ£
Cash consideration paid		(62.018.474)	-
Net cash outflow on acquisition		(62.018.474)	-

21. Trade and other receivables

	31/03/2025	31/03/2024
	UΚ£	UΚ£
Trade receivables	1.954.374	1.150.530
Agents	721.636	2.320.766
Less: credit loss on trade receivables	(62.808)	(228.568)
Trade receivables - net	2.613.202	3.242.728
Shareholders' current accounts - debit balances (Note 32.5)	-	89.376
Deposits and prepayments	882.744	6.796.391
Accrued income	52.188	-
Other receivables	52.478	84.832
Refundable VAT	603.848	-
	4.204.460	10.213.327

The Group has recognised a loss of UΚ£168.194 (2024: UΚ£ - ) for the impairment of its trade receivables during the year ended 31 March 2025. The loss has been included in selling and distribution costs in profit or loss.

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

Movement in provision for Credit loss on trade receivables:

	31/03/2025	31/03/2024
	UΚ£	UΚ£
Balance at 1 April	228.568	100.987
(Decrease)/Increase in expected credit loss recognised on trade
receivables	(165.760)	127.581
Balance at 31 March	62.808	228.568

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

The exposure of the Group to credit risk and impairment losses in relation to trade and other receivables is reported in note 6 of the consolidated financial statements.

22. Financial assets at fair value through profit or loss

			31/03/2025	31/03/2024
			UΚ£	UΚ£
Additions			1.192.708	-
Change in fair value			(104.137)	-
Balance at 31 March			1.088.571	-
Less non-current portion			(1.088.571)	-

	Fair values	Cost	Fair values	Cost
	31/03/2025	31/03/2025	31/03/2024	31/03/2024
	UΚ£	UΚ£	UΚ£	UΚ£
Non-listed investments in regulated funds	1.088.571	1.192.708	-	-
Debentures listed on a Stock Exchange	-	3.279.736	-	3.279.736
	1.088.571	4.472.444	-	3.279.736

The company has entered into an agreement with Bank Pictet & Cie (Europe) AG to invest in a portfolio of private real estate and in private debt through non-listed regulated funds. The company is committed to invest an additional amount of US\$18.480.779 millions over 5 years.

The company also owns bonds listed in the Moscow Stock Exchange of the Russian Banks Sberbank of Moscow and VTB Bank which were purchased at total cost of UK£3.279.736 and which are both in default of payment of the capital and the due interest and have been fully impaired. Both bonds have expired during the year ended 31.3.2024.

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

The financial assets at fair value through profit or loss are valued at the net asset value of the funds at the closing date 31 March. Financial assets at fair value through profit or loss are classified as fixed assets because they are not expected to be realised within twelve months from the reporting date.

In the 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 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.

23. Cash at bank

	31/03/2025	31/03/2024
	UΚ£	UΚ£
Cash at bank	21.938.443	18.186.612
Bank deposits	4.219.749	10.420.448
	26.158.192	28.607.060

The effective interest rate on short-term bank deposits was 2,38% (31/03/2024: 3,98%) and these deposits have an average maturity of 31 days.

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

	31/03/2025	31/03/2024
	UΚ£	UΚ£
Cash at bank	21.938.443	18.186.612
Bank overdrafts (Note 26)	(167)	(114)
	21.938.276	18.186.498

The exposure of the Group to credit risk and impairment losses in relation to cash and cash equivalents is reported in note 6 of the consolidated financial statements.

24. Share capital and share premium

	31/03/2025 Number of	31/03/2025	31/3/2024 Number of	31/3/2024
	shares		€ shares	€
Authorised
Ordinary shares of €1 each	1.000.000.000	1.000.000.000	1.000.000.000	1.000.000.000
Shares issued	1.000.000.000	1.000.000.000	-	-
	2.000.000.000		2.000.000.000 1.000.000.000 1.000.000.000
Issued and fully paid	Number of
	shares	Share capital Share premium		Total
		UΚ£	UΚ£	UΚ£
Balance at 1 April 2023	639.426.528	547.394.670	563.124	547.957.794
Issue of additional shares	76.521.902	66.526.611	4.916.316	71.442.927
Balance at 31 March 2024/ 1 April 2024	715.948.430	613.921.281	5.479.440	619.400.721
Balance at 31 March 2025	715.948.430	613.921.281	5.479.440	619.400.721

Authorised capital

On 3 September 2024, the authorised share capital of the Company was increased from €1.000.000.000 divided into 1.000.000.000 ordinary shares of nominal value €1 each to €2.000.000.000 divided into 2.000.000.000 ordinary shares of nominal value €1 each by the creation of 1.000.000.000 ordinary shares of nominal value €1 each.

25. Other reserves

Balance at 31 March 2025	224.533.818		10.636.321 235.170.139
Non-refundable advances from shareholders	207.518.279	-	207.518.279
Transfer	-	263.722	263.722
Balance at 31 March 2024/ 1 April 2024	17.015.539	10.372.599	27.388.138
Utilisation of non-refundable advances for increase in the share capital	(21.280.459)	-	(21.280.459)
Exchange difference	-	(1.228.652)	(1.228.652)
Balance at 1 April 2023	38.295.998	11.601.251	49.897.249
	UΚ£	UΚ£	UΚ£
	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.

26. Borrowings
	31/03/2025	31/03/2024
	UΚ£	UΚ£
Current borrowings
Bank overdrafts (Note 23)	167	114
Non-current borrowings
Loans from other related parties (Note 32.4)	8.441.131	8.308.036
	8.441.131	8.308.036
Total	8.441.298	8.308.150

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 instalments of CHF 1.162.500 each, on 29 December of each year. The second loan bears interest of 1,5% per annum and is repayable with 6 annual instalments of CHF 500.000 each on 29 December of each year.

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

During the year 2023, the subsidiary entered into second supplement agreements to the two loan agreements with Nike Shipholder Corporation where a grace period of two additional years for the repayment of the principal instalments was agreed by the two parties.

During the year, the subsidiary entered into second supplement agreements to the two loan agreements with Nike Shipholder Corporation where a grace period of two additional years for the repayment of the principal instalments was agreed by the two parties.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

26. Borrowings (continued)

Maturity of non-current borrowings:

					31/03/2025 UΚ£	31/03/2024 UΚ£
Between two and five years					8.441.131	8.308.036
The weighted average effective interest rates at the reporting date were as follows:
					31/03/2025 %	31/03/2024 %
Loans from other related parties					1,5	1,5
27. Lease liabilities
					31/03/2025 UΚ£	31/03/2024 UΚ£
Balance at 1 April Repayments					5.798.229 (145.236)	5.827.630 (145.220)
Interest Exchange difference					116.167 403	116.489 (670)
Balance at 31 March					5.769.563	5.798.229
	Minimum lease			Minimum lease
	payments	Interest 31/03/2025	Principal 31/03/2025	payments	Interest 31/03/2024	Principal 31/03/2024
	31/03/2025 UΚ£	UΚ£	UΚ£	31/03/2024 UΚ£	UΚ£	UΚ£
Within one year Between one and five	138.247	115.190	23.057	137.035	115.572	21.463
years	671.528	570.001	101.527	110.659	-	110.659
After five years	12.356.126 13.165.901	6.711.147 7.396.338	5.644.979 5.769.563	5.666.107 5.913.801	- 115.572	5.666.107 5.798.229

During the year 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.

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, with the option for the company to extend it by 2 years with the same terms. The average lease term is 60 months. For year ended 31 March 2025, the average effective borrowing rate was 3,0% (2024: 3,0%). 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 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.

28. Trade and other payables

	31/03/2025	31/03/2024
	UΚ£	UΚ£
Trade payables	-	15.669
Prepayments from tenants	3.082.940	879.587
VAT	-	563.735
Shareholders' current accounts - credit balances (Note 32.6)	45.178	45.178
Payables to parent (Note 32.3)	1.272	1.272
Tenants overpayments	-	53.667
Accruals	2.941.606	895.281
Other creditors	151.744	39.459
Deferred income	3.017.064	2.391.436
Payables to fellow subsidiaries (Note 32.3)	4.932	2.153
	9.244.736	4.887.437

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

29. Deferred income

31/03/2025	31/03/2024
UΚ£	UΚ£
2.843.615	1.854.178
2.843.615	1.854.178


31/03/2025	31/03/2024
UΚ£	UΚ£
48.079	71.205
(16.691)	(17.877)
2.019.881	1.683.141
2.051.269	1.736.469

31. 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 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

31. Operating Environment of the Group (continued)

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 limited direct exposure to Russia, Ukraine, Belarus and Israel and as such does not expect significant impact from direct exposures to these countries.

Despite the limited direct exposure, the conflicts are expected to negatively impact the tourism and services industries in Cyprus. 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 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. Management will continue to monitor the situation closely and will assess the need for [please complete accordingly] in case the crisis becomes prolonged.

32. Related party transactions

As of 16 May 2023, the Company's share capital is held by the Cyprus companies Kosmima Holdings Limited, Oceanroutes Shipping and Trading Limited, Seas of Levante Shipping and Financing Limited, Medventure Shipping Corporation Limited and Medvanguard Shipping Corporation Limited which own 9,33718%, 6,42714%, 6,42714%, 6,42714% and 6,42714% 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 21,95930%, 21,777267%, 20,88950%, 0,00140% and 0,00140% respectively.

The following transactions were carried out with related parties:

32.1 Directors' remuneration

The remuneration of Directors and other members of key management was as follows:

	1/04/2024- 31/03/2025	1/04/2023- 31/03/2024
	UΚ£	UΚ£
Directors' fees	5.911	-

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

32. Related party transactions (continued)

32.2 Purchases of services

		1/04/2024-	1/04/2023-
		31/03/2025	31/03/2024
	Nature of transactions	UΚ£	UΚ£
Easternmed Real Estate Management Ltd	Management fees	464.211	464.211
		464.211	464.211

Purchases of services from the related company Easternmed Real Estate Management Ltd were made on commercial terms and conditions.

32.3 Payables to related parties (Note 28)

		31/03/2025	31/03/2024
Name	Nature of transactions	UΚ£	UΚ£
Easternmed Real Estate Management Ltd	Finance	6.204	3.425
		6.204	3.425

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

32.4 Loans from related parties (Note 26)

		31/03/2025	31/03/2024
Name	Terms	UΚ£	UΚ£
Nike Shipholder Corporation	Finance	8.441.131	8.308.036
		8.441.131	8.308.036

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

During the year 2023, the subsidiary entered into new supplement agreements to the 2 loan agreements with Nike Shipholder Corporation where a grace period of additional 2 years for the repayment of the principal instalments was agreed by the two parties.

32.5 Shareholders' current accounts - debit balances (Note 21)

	31/03/2025	31/03/2024
	UΚ£	UΚ£
Medvanguard Shipping Corporation Limited	-	22.344
Medventure Shipping Corporation Limited	-	22.344
Oceanroutes Shipping and Trading Limited	-	22.344
Seas of Levante Shipping and Financing Limited	-	22.344
	-	89.376

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

32. Related party transactions (continued)

32.6 Shareholders' current accounts - credit balances (Note 28)

	31/03/2025	31/03/2024
	UΚ£	UΚ£
Shareholders' current accounts	45.178	45.178

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

33. Contingent liabilities

The Group had no contingent liabilities as at 31 March 2025.

34. Commitments

The company has entered into an agreement with Bank Pictet & Cie (Europe) AG to invest in a portfolio of private real estate and in private debt instruments through non-listed regulated funds and the company is committed to invest an additional amount of US\$18.480.779 millions over 5 years.

35. Events after the reporting period

As explained in note 31 the geopolitical situation in Eastern Europe and the Middle East remains intense with the continuation of the conflict between Russia and Ukraine and the Israel-Gaza conflict. As at the date of authorising these financial statements for issue, the conflicts continue to evolve as military activity proceeds and additional sanctions are imposed.

Depending on the duration of the conflict between Russia and Ukraine and in the Middle East, and continued negative impact on economic activity, the Company might experience negative results, and liquidity restraints and incur additional impairments on its assets on 31 March 2025 which relate to new developments that occurred after the reporting period.

The exact impact on the Group's activities on 31 March 2025 and thereafter cannot be predicted.

Independent auditor's report on pages 4 to 6

DETAILED INCOME STATEMENT For the year ended 31 March 2025

	Page	1/04/2024- 31/03/2025 UΚ£	1/04/2023- 31/03/2024 UΚ£
Revenue Net rent receivable	46	19.670.204	13.868.293
Gross profit		19.670.204	13.868.293
Other operating income
Compensation for early termination of rental contracts Operating lease rentals receivable Excess of Group's interest in the net fair value of the subsidiaries' assets and liabilities over cost on acquisition		15.689 3.350 296.258	600.182 1.831 378.349
Reversal of impairment - trade receivables		165.760 20.151.261	12 14.848.667
Operating expenses
Administration expenses Selling and distribution expenses	47 47	(1.231.297) (937.399)	(843.532) (1.572)
		17.982.565	14.003.563
Other operating expenses
Incorporation expenses Impairment charge - trade receivables Fair value losses on investment property Fair value losses on financial assets at fair value through profit or		- - (65.763.837)	(2.168) (127.593) (2.035.562)
loss		(104.137)	-
Operating (loss)/profit		(47.885.409)	11.838.240
Finance income Finance costs	48 48	201.157 (294.612)	464.000 (948.930)
Net (loss)/profit for the year before tax		(47.978.864)	11.353.310

RENTAL INCOME

For the year ended 31 March 2025

	1/04/2024- 31/03/2025 UΚ£	1/04/2023- 31/03/2024 UΚ£
Rental income
Rent receivable Other income from properties	28.084.686 428.383	20.945.965 384.230
	28.513.069	21.330.195
Rental expenses
Property rates and taxes	341.326	241.133
Energy expenses	136.884	-
Repairs and maintenance	5.819.673	4.596.526
Electricity	612.766	978.540
Water supply and cleaning	66.719	61.604
Insurance	676.384	455.842
Security and sundry expenses	243.005	286.152
Other professional fees	241.042	160.013
Agent management fees	487.546	572.857
Salaries and wages abroad	217.520	94.188
Depreciation	-	15.047
	8.842.865	7.461.902
Net rent receivable	19.670.204	13.868.293

ADMINISTRATION EXPENSES For the year ended 31 March 2025

1/04/2024- 31/03/2025 UΚ£	1/04/2023- 31/03/2024 UΚ£
Administration expenses
Common expenses 811	909
957 Municipality taxes	480
Annual levy 3.106	442
Electricity 1.247	1.632
Water supply and cleaning 138	1.548
Sundry expenses 3.508	9.658
Stationery and printing -	231
Auditors' remuneration - current year 74.139	59.744
Auditors' remuneration - prior years 8.457	1.521
Accounting fees 46.970	44.521
2.151 Legal fees	2.185
Other professional fees 968.756	612.179
Directors' fees 5.911	-
Overseas travelling 50.892	44.202
Depreciation of right-of-use assets 63.604	63.835
Depreciation 650	445
1.231.297	843.532

	1/04/2024-	1/04/2023-
	31/03/2025	31/03/2024
	UΚ£	UΚ£
Selling and distribution expenses
Advertising	588	1.572
Commissions	768.617	-
Bad debts written off	168.194	-
	937.399	1.572

FINANCE INCOME/COSTS For the year ended 31 March 2025

	1/04/2024- 31/03/2025 UΚ£	1/04/2023- 31/03/2024 UΚ£
Finance income Bank interest Interest on bank current accounts Other interest income Realised foreign exchange profit	200.099 - - 825	453.415 6.648 2.756 1.144
Unrealised foreign exchange profit	233 201.157	37 464.000
Finance costs
Interest expense Interest expense on lease liabilities	115.796	116.490
Sundry finance expenses Bank charges	16.186	40.045
Net foreign exchange losses Realised foreign exchange loss Unrealised foreign exchange loss	571 162.059	383 792.012
	294.612	948.930

AI Terminal

Easternmed Real Estate Capital PLC

2506_10-k_2025-07-30_c5a8faae-0ca8-49e6-8c6b-0d04aa098b7e.pdf

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

BOARD OF DIRECTORS AND OTHER OFFICERS

CONSOLIDATED MANAGEMENT REPORT

Principal activity and nature of operations of the Group

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

Principal risks and uncertainties

Future developments of the Group

Use of financial instruments by the Group

Market price risk

Interest rate risk

Credit risk

-

-

-

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 March 2025

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED CASH FLOW STATEMENT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

1. Incorporation and principal activities

Country of incorporation

Principal activity

2. Basis of preparation

3. Adoption of new or revised standards and interpretations

4. Material accounting policy information

Basis of consolidation

4. Material accounting policy information (continued)

Basis of consolidation (continued)

Business combinations

4. Material accounting policy information (continued)

Business combinations (continued)

Goodwill

Revenue

Recognition and measurement

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Revenue (continued)

Identification of performance obligations

Rental income

Investment property rental income

Finance income

Finance costs

Foreign currency translation

(1) Functional and presentation currency

(2) Transactions and balances

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Tax

Deferred income

Investment properties

Leases

The Group as lessor

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Leases (continued)

Impairment of non-financial assets

Financial assets - Classification

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Financial assets - Recognition and derecognition

Financial assets - Measurement

Debt instruments

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Financial assets - Measurement (continued)

Equity instruments

Financial assets - impairment - credit loss allowance for ECL

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2025

4. Material accounting policy information (continued)

Financial assets - impairment - credit loss allowance for ECL (continued)

Financial assets - Reclassification

Financial assets - write-off

Financial assets - modification

4. Material accounting policy information (continued)

Cash and cash equivalents

Classification as financial assets at amortised cost

Classification as trade receivables

Financial liabilities - measurement categories