![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Asbisc | LSE:ASB | London | Ordinary Share | CY1000031710 | ORD USD0.20 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 150.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:3643U ASBISc Enterprises PLC 04 April 2007 Embargoed for 7.00am, Wednesday 4 April 2007 ASBISc Enterprises Plc Full-year results for the twelve months to 31 December 2006 Record revenue and profits in maiden (first) full-year results as a listed company ASBISc Enterprises Plc ("ASBIS" or the "Group"), a leading distributor of computer components in high growth emerging markets in Central and Eastern Europe and the Former Soviet Union, announces its maiden full-year results, following its listing on AIM in October 2006. ASBIS has completed a successful year of trading with revenues for the year to 31 December 2006 at a record level and in excess of US$1 billion. As a result, profits for the year were slightly ahead of market expectations. Financial highlights * Revenue up 7.5% at US$1.01bn (2005: US$930.39m) * Profit from operations up 30.1% at US$16.08m (2005: US$12.30m) * Profit before taxation up 36.9% at US$12.76m (2005: US$9.32mm) * Basic earnings per share from continuing operations up 13.9% at 19.7 cents (2005: 17.3 cents) * Total cash and equivalents at 31 December 2006 of US$13.25m (US$ US$12.18m as at 31 December 2005) * Proposed final dividend of 2.0 cents per share (2005: 2.0 cents per share) Siarhei Kostevitch, Chief Executive of ASBIS, commented: "We are very happy to report these record results for the first time as a listed Company and we look forward to progressing our strategy of further developing our core distribution business alongside our own brand and white label products. "Looking ahead, we are focused on enhancing the mix of products sold with a view to building margins against a tightly managed cost base. While we anticipate that the markets in which we operate will remain competitive and subject to price pressure, we expect to be able to continue the growth in market share we achieved in the last financial year. We also expect to maintain our market leading position based on the strength of our existing infrastructure, our delivery capabilities and our ability to rapidly introduce new products and services - including innovative online services- to our growing customer base. "The markets in which we operate are strong and growing and remain significantly underdeveloped, which presents the Group with compelling opportunities for expansion. With a focus on working to enhance profitability, we view the year ahead with confidence." For further information, please contact: ASBISc Enterprises Plc 00 357 25 857 000 Siarhei Kostevitch, Chief Executive Marios Christou, Chief Financial Officer Costas Tziamalis, Investor Relations Seymour Pierce Limited 020 7107 8000 David Newton/ Parimal Kumar Financial Dynamics 020 7831 3113 Harriet Keen / Richard Mountain Notes to Editors ASBIS is based in Cyprus and specialises in the distribution of IT components, Blocks and Peripherals and a growing range of own brand IT and digital equipment. Established in 1995, its operations extend to Central and Eastern Europe, the Baltic States, the former Soviet Union, the Middle East and North Africa. In addition to distributing products from IT industry manufacturers, the Group has also developed, and is selling, products via two private label brands, Prestigio, which supplies laptops, LCD TVs and monitors, digital media centres, storage devices and subsystems and Canyon which primarily targets retail chains with IT and consumer electronic peripherals and accessories such as networking products, MP3 players, speakers and other products. The Group also offers White Label products to enable its biggest local customers to create their own brand with generic and exclusive designs. The Company listed on AIM in October 2006 and its ticker is ASB.L. Chairman's statement We are pleased to report another year of growth in sales and profits with a good performance from all our lines of business. In particular, it was pleasing to see very good progress in the Group's own brand ranges (Canyon and Prestigio) where margins are measurably higher than the traditional business. In addition, operational gearing has been strong as sales have built on the Group's established and efficient infrastructure across its wide spread of geographic markets. I have been impressed with both the quality and commitment of the Group's management team which has proved itself responsive and efficient in exploiting new opportunities in the market place as they have arisen over the last year. I am pleased to welcome Paul Swigart as a Non-Executive Director who joined the Group on its admission to AIM in October 2006. Paul is the founder and controlling partner of Steep Rock Capital, an investment company established in May 2006. Previously, Paul was a partner at United Financial Group, a brokerage and London Stock Exchange market maker for a leading Russian investment bank. The Company has good governance structures in place and the Group's Audit, Nominations and Remuneration committees are established and functioning well. The continued hard work and commitment of all of our employees has helped to drive the strong performance achieved in the last year and I would like to thank them for their contribution and commitment to the success of the business. We remain focused on driving the positive performance of the business, supported by the continuing growth of the markets in which we operate, and to capitalising on the opportunities we see for product expansion to deliver enhanced value to shareholders. Operational and Financial Review For the twelve months to 31 December 2006, the Group reported revenue up 7.5% on the prior year period at US$1.01bn (2005: US$930.39m); profit from operations up 30.1% at US$16.08m (2005: US$12.30m); profit before taxation up 36.9% at US$12.76m (2005: US$9.32m); and basic earnings per share from continuing operations up 13.9% at 19.7 cents (2005: 17.3 cents). The Group maintained its strong cash position with total cash and equivalents at 31 December 2006 of US$13.25m, slightly ahead of the prior year end total of US$12.18m as at 31 December 2005. The Board is proposing a final dividend of 2.0 cents per share, maintained at the same level as the prior year. The growth in revenue achieved was underpinned by the Group's continued strong relationships with its supplier base including industry leading manufacturers such as Intel, AMD, Hitachi, Seagate, Samsung, and the addition of new suppliers across its key geographic markets. In addition, as previously announced, the Group has seen encouraging growth in the percentage of Group sales achieved from its two higher margin, own brand products lines, Prestigio (flat panel displays and LCD technologies) and Canyon (consumer electronic peripherals and accessories). One of the key continuing trends in our market is pressure on pricing, especially in consumer equipment, where the Group's margins are maintained principally through the introduction of new products and upgrades. The consequent impact on margins was partially offset by the significant increase in the number of units sold in the last year, with an increase in unit sales of some 40% to more than 16 million SKUs. In addition, importantly, the proportion of sales from our higher margin, own brand products also increased by approximately 20% on the prior year level. Strategy and Outlook We remain committed to our strategy of further developing our core distribution business alongside our own brand and white label products. Looking ahead, we are focused on enhancing the mix of products sold with a view to building margins against a tightly managed cost base. While we anticipate that the markets in which we operate will remain competitive and subject to price pressure, we expect to be able to continue the growth in market share we achieved in the last financial year. We also expect to maintain our market leading position based on the strength of our existing infrastructure, our delivery capabilities and our ability to rapidly introduce new products and services - including innovative online services- to our growing customer base. The markets in which we operate are strong and growing and remain significantly underdeveloped which presents the Group with compelling opportunities for expansion. With a focus on working to enhance profitability, we view the year ahead with confidence. ASBISC ENTERPRISES PLC CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2006 2005 Note US$ US$ Revenue 2 1.008.794.597 930.389.282 Cost of sales (961.101.730) (892.020.384) Gross profit 47.692.867 38.368.898 Selling expenses (17.290.825) (13.225.005) Administrative expenses (14.318.319) (12.839.668) Profit from operations 16.083.723 12.304.225 Financial income 3 142.271 226.636 Financial expenses 3 (3.850.106) (3.558.489) Other income 4 383.238 340.542 Goodwill written off, net - (13.620) Profit on disposal of subsidiary - 18.349 Profit before taxation 6 12.759.126 9.317.643 Taxation 7 (1.688.816) (939.380) Profit after taxation 11.070.310 8.378.263 Listing expenses written off 5 (1.597.310) - Minority interest 20 - (55.959) Profit attributable to members 9.473.000 8.322.304 Cents Cents Earnings per share Basic and diluted from continuing operations 26 19,7 17,3 ASBISC ENTERPRISES PLC CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2006 (Expressed in United States Dollars) 2006 2005 ASSETS Note US$ US$ Current assets Inventories 2 46.177.803 58.701.878 Trade receivables 8 148.790.371 110.971.092 Other current assets 9 4.726.356 4.020.441 Current taxation 7 - 76.446 Cash and cash equivalents 21 27.927.606 25.106.038 Total current assets 227.622.136 198.875.895 Non-current assets Property, plant and equipment 10 7.161.929 6.663.640 Investments 14 99.580 90.000 Intangible assets 11 1.268.250 1.443.225 Total non-current assets 8.529.759 8.196.865 Total assets 236.151.895 207.072.760 LIABILITIES AND EQUITY Liabilities Current liabilities Trade payables 117.453.360 114.276.334 Other current liabilities 15 22.960.319 20.532.449 Current taxation 7 278.181 - Short-term obligations under finance lease 18 144.527 87.446 Bank overdrafts and short term loans 16 34.377.172 20.315.429 Total current liabilities 175.213.559 155.211.658 Non-current liabilities Long term liabilities 17 666.058 746.556 Long-term obligations under finance lease 18 74.715 146.614 Deferred tax liability 7 44.997 8.295 Total non-current liabilities 785.770 901.465 Total liabilities 175.999.329 156.113.123 Equity Share capital 19 9.600.000 9.600.000 Share premium 8.138.039 8.138.039 Reserves 42.414.527 33.221.598 Total equity 60.152.566 50.959.637 Total liabilities and equity 236.151.895 207.072.760 ASBISC ENTERPRISES PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) Share Foreign Share premium Retained exchange capital account earnings reserve Total US$ US$ US$ US$ US$ Balance at 1 January 2005 9.600.000 8.138.039 24.209.243 1.285.301 43.232.583 Profit for the year after minority interest - - 8.322.304 - 8.322.304 Exchange difference arising on consolidation - - - (595.250) (595.250) Balance at 31 December 2005 and 1 January 2006 9.600.000 8.138.039 32.531.547 690.051 50.959.637 Profit for the year after minority interest - - 9.473.000 - 9.473.000 Excess of net assets transferred to the group compared to the purchase consideration paid for the acquisition of subsidiary companies (note 13) - - 37.681 - 37.681 Payment of dividend - - (960.000) - (960.000) Exchange difference arising on consolidation - - - 642.248 642.248 Balance 31 December 2006 9.600.000 8.138.039 41.082.228 1.332.299 60.152.566 The reserves shown above at 31 December 2006 were readily distributable up to the amount of US$29.939.460 which represents the retained earnings of the company. The remaining amount of US$11.142.768 represents the earnings retained of the subsidiary companies of the group. The share premium account is available for distribution only in the form of issue of bonus shares. ASBISC ENTERPRISES PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2006 2005 Note US$ US$ Profit for the year before tax and minority interest 12.759.126 9.317.643 Adjustments for: Exchange difference arising on consolidation 117.254 (194.627) Listing expenses written off 5 (1.597.310) - Depreciation 10 1.133.232 1.097.413 Amortisation of intangible assets 11 710.085 602.464 Interest received 3 (115.831) (131.672) Interest paid 3 1.620.161 1.209.602 Impairment of goodwill - 13.620 Profit from disposal of subsidiary company - (18.349) Profit from the sale of property, plant and equipment and intangible assets 4 (11.546) (28.969) Operating profit before working capital changes 14.615.171 11.867.125 Decrease/(increase) in inventories 13.284.743 (13.367.497) Increase in trade receivables (37.604.098) (27.000.766) (Increase)/decrease in other current assets (558.828) 185.182 Increase in trade payables 1.949.308 29.089.280 Increase in other current liabilities 2.427.870 1.501.052 Cash (outflows)/inflows from operations (5.885.834) 2.274.376 Taxation paid, net 7 (1.272.515) (1.170.817) Interest paid 3 (1.620.161) (1.209.602) Net cash outflows from operating activities (8.778.510) (106.043) Cash flows from investing activities Interest received 3 115.831 131.672 Purchase of property, plant and equipment 10 (1.104.675) (1.461.008) Purchase of intangible assets 11 (526.349) (457.677) Net cash outflow from sale of subsidiary company - (43.900) Payments to acquire investments in subsidiaries 13 (21.047) - Increase in investments (9.580) - Net cash acquired from acquisition of subsidiaries 13 430.963 - Proceeds from sale of property, plant and equipment and intangible assets 54.435 129.280 Net cash outflows from investing activities (1.060.422) (1.701.633) Cash flows from financing activities Repayments of long term loans and long term obligations under finance lease (152.397) (226.668) Proceeds/(repayment) of short term loans and short-term obligations under finance lease 12.023.147 (1.300.669) Dividends paid 27 (960.000) - Net cash inflows/(outflows) from financing activities 10.910.750 (1.527.337) Net increase/(decrease) in cash and cash equivalents 1.071.818 (3.335.013) Cash and cash equivalents at beginning of the year 21 12.178.623 15.513.636 Cash and cash equivalents at end of year 21 13.250.441 12.178.623 ASBISC ENTERPRISES PLC PARENT COMPANY INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2006 2005 Notes US$ US$ Revenue 2 677.957.298 641.440.870 Cost of sales (660.727.505) (627.412.100) Gross profit 17.229.793 14.028.770 Selling expenses (4.732.931) (3.889.714) Administrative expenses (4.500.234) (3.560.852) Profit from operations 7.996.628 6.578.204 Financial income 3 107.420 160.092 Financial expenses, net 3 (1.037.216) (784.257) Other income 4 666.130 229.179 Diminution in value of investment 12 - (421.175) Profit before taxation 6 7.732.962 5.762.043 Listing expenses written off 5 (1.597.310) - Taxation 7 (788.154) (323.848) Profit after taxation and listing expenses 5.347.498 5.438.195 ASBISC ENTERPRISES PLC PARENT COMPANY BALANCE SHEET AS AT 31 DECEMBER 2006 (Expressed in United States Dollars) 2006 2005 Note US$ US$ ASSETS Current assets Inventories 2 17.180.904 26.661.793 Trade receivables 8 68.317.656 45.812.182 Other current assets 9 29.777.383 39.887.654 Cash and cash equivalents 21 17.525.996 15.051.522 Total current assets 132.801.939 127.413.151 Non-current assets Property, plant and equipment 10 2.001.983 2.155.891 Intangible assets 11 1.119.607 1.351.401 Investment in subsidiary companies 12 2.714.977 2.769.202 Investment in fellow subsidiary company 14 90.000 90.000 Total non-current assets 5.926.567 6.366.494 Total assets 138.728.506 133.779.645 LIABILITIES AND EQUITY Liabilities Current liabilities Trade payables 79.397.927 73.575.902 Other current liabilities 15 5.742.900 12.571.600 Taxation 7 196.096 8.552 Deferred tax liability 7 74.294 71.006 Bank overdrafts and short term loans 16 5.639.790 4.262.584 Total current liabilities 91.051.007 90.489.644 Equity Share capital 19 9.600.000 9.600.000 Share premium 8.138.039 8.138.039 Reserves 29.939.460 25.551.962 Total equity 47.677.499 43.290.001 Total liabilities and equity 138.728.506 133.779.645 ASBISC ENTERPRISES PLC PARENT COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) Share Share Retained capital premium earnings Total US$ US$ US$ US$ Balance at 1 January 2005 9.600.000 8.138.039 20.113.767 37.851.806 Profit of the year - - 5.438.195 5.438.195 Balance at 31 December 2005 and 1 January 2006 9.600.000 8.138.039 25.551.962 43.290.001 Profit for the year - - 5.347.498 5.347.498 Payment of dividend - - (960.000) (960.000) Balance at 31 December 2006 9.600.000 8.138.039 29.939.460 47.677.499 The retained earnings of US$29.939.460 shown above at 31 December 2006 are all distributable. The share premium account is available for distribution in the form of issue of bonus shares. ASBISC ENTERPRISES PLC PARENT COMPANY CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2006 2005 Note US$ US$ Profit for the year before tax 7.732.962 5.762.043 Adjustments for: Provision for diminution in value of investment - 421.175 Listing expenses written off 5 (1.597.310) - Depreciation 10 311.247 302.050 Amortisation of intangible assets 11 582.505 475.386 Interest received 3 (107.420) (94.514) Interest paid 3 449.037 416.591 Profit on sale of subsidiary company 4 - (156.398) Loss/(profit) from the sale of property, plant and equipment and intangible assets 4 529 (15.218) Operating profit before working capital changes 7.371.550 7.111.115 Decrease/(increase) in inventories 9.480.889 (3.944.750) Increase in trade receivables (22.505.474) (15.600.149) Decrease/(increase) in other current assets 10.110.271 (3.260.961) Increase in trade payables 5.822.025 7.075.014 (Decrease)/increase in other current liabilities (6.828.700) 9.726.011 Cash inflows from operations 3.450.561 1.106.280 Taxation paid, net 7 (597.322) (119.995) Exchange loss on taxation 7 - 36.422 Interest paid 3 (449.037) (416.591) Net cash inflows from operating activities 2.404.202 606.116 Cash flows from investing activities Interest received 3 107.420 94.514 Purchase of property, plant and equipment (157.867) (250.738) Proceeds from sale of subsidiary company - 176.798 Purchase of intangible assets (350.936) (422.551) Proceeds from sale of property, plant and equipment and intangible assets 224 31.127 Net decrease/(increase) in investment in subsidiary companies 54.225 (393.285) Net cash outflows from investing activities (346.934) (764.315) Cash flows from financing activities Dividend paid (960.000) - Proceeds from short term loans 3.536.534 - Net cash inflows from financing activities 2.576.534 - Net increase/(decrease) in cash and cash equivalents 4.633.802 (158.019) Cash and cash equivalents at beginning of the year 21 11.788.938 11.946.957 Cash and cash equivalents at end of year 21 16.422.740 11.788.938 ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 1. Incorporation and principal activities Asbisc Enterprises Plc was incorporated in Cyprus on 9 November 1995 with limited liability. The group's and the company's principal activity is the trading and distribution of computer hardware and software. The ultimate holding company of the group is K.S. Holdings Limited, a company incorporated in Cyprus. On 4th September 2006 by a special resolution passed at an extraordinary general meeting of the shareholders of the company, the company's name was changed from Asbisc Enterprises Limited to Asbisc Enterprises Plc. On 25th October 2006 the company was listed at the Alternative Investment Market (AIM) of the London Stock Exchange (LSE). 2. Summary of significant accounting policies Basis of preparation The accompanying financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB). The accompanying financial statements comply with both these reporting frameworks because at the time of their preparation all applicable IFRSs issued by the IASB have been adopted by the EU through the endorsement procedure established by the European Commission. In addition, the accompanying financial statements have been prepared in accordance with the requirements of the Cyprus Companies Law, Cap.113. Adoption of new and revised International Financial Reporting Standards In the current year, the group has adopted all of the new and revised Standards and Interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB that are relevant to its operations and effective for annual reporting periods beginning on 1 January 2006. The adoption of these new and revised Standards and Interpretations has resulted in no significant changes to the group's accounting policies. At the date of authorisation of these financial statements, the following Standards and Interpretations were in issue but not yet effective: * Amendment to Presentation of Financial Statements - Effective for annual periods beginning on IAS1 Capital Disclosures or after 1 January 2007 * IFRS 7 Financial Instruments Effective for annual period beginning on Disclosures or after 1 January 2007 * IFRS 8 Operating Segments Effective for annual periods beginning on or after 1 January 2009 * IFRIC7 Applying the Restatement Approach under Effective for annual periods beginning on IAS29 Financial Reporting in or after 1 March 2006 Hyperinflationary Economies * IFRIC 8 Scope of IFRS 2 Effective for annual periods beginning on or after 1 May 2006 * IFRIC 9 Reassessment of Embedded Derivatives Effective for annual periods beginning on or after 1 June 2006 * IFRIC 10 Interim Financial Reporting and Effective for annual periods beginning on Impairment or after 1 November 2006 * IFRIC11 IFRS2 Group and Treasury Share Transactions Effective for annual periods beginning on or after 1 March 2007 * IFRIC12 Service Concession Arrangements Effective for annual periods beginning on or after 1 January 2008 ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2. Accounting policies (continued) Adoption of new and revised International Financial Reporting Standards (continued) The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial statements of the group except IFRIC 8 - Scope of IFRS2. The Board of Directors are currently considering the implementation of a share option scheme. The intended scheme has not yet been approved by the Board of Directors. The Board of Directors are currently considering the possible impact on the financial statements of the group. Accounting convention The financial statements have been prepared under the historical cost convention and a summary of the significant accounting policies adopted by the company and the group is as follows: Basis of consolidation The consolidated financial statements incorporate the financial statements of the company and entities (including special purpose entities) controlled by the company (its subsidiaries). Control is achieved when the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of the subsidiary companies that are acquired during the year are included in the consolidated Income Statement from the date of acquisition and cease to be consolidated from the date control ceases, or to the extent that their disposal is foreseeable such that they will be held for less than one year from the balance sheet date. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the group. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Minority interests in the net assets (excluding goodwill) of consolidated subsidiaries are identified separately from the group's equity therein. Minority interest consists of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination. Losses applicable to the minority in excess of the minority's interest in the subsidiary's equity are allocated against the interest of the group except to the extent that the minority has a binding obligation and is able to make an additional investment to cover the losses. Business combinations Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured as the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree, plus any costs directly attributable to the business combination. The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 Business Combinations are recognized at their fair values at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, which are recognized and measured at fair value less costs to sell. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2. Accounting policies (continued) Business combinations (continued) Goodwill arising on acquisition is recognized as an asset and initially measured at cost, being the excess of the cost of the business combination over the group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognized. If, after reassessment, the group's interest in the net fair value of the acquiree's identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the excess is recognized immediately in profit or loss. The interest of minority shareholders in the acquiree is initially measured at the minority's proportion of the net fair value of the assets, liabilities and contingent liabilities recognized. Business combinations involving entities under common control A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. A group of individuals shall be regarded as controlling an entity when, as a result of contractual arrangements, they collectively have the power to govern its financial and operating policies so as to obtain benefits from its activities. Therefore, a business combination is outside the scope of IFRS3 when the same group of individuals has, as a result of contractual arrangements, ultimate collective power to govern the financial and operating policies of each of the combining entities so as to obtain benefits from their activities, and that ultimate collective power is not transitory. The excess between the carrying value of the net assets transferred and the consideration paid, is recognized directly to equity. Subsidiary Companies In the individual accounts of the company, investments in subsidiary companies are presented at cost less provision for permanent diminution in value. Investments Investments are stated at cost less provision for permanent diminution in value. Goodwill Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognized at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to each of the group's cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2. Accounting policies (continued) Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less the estimated residual value of property, plant and equipment on a straight-line basis over their estimated useful economic lives as follows: Buildings 33 years Leasehold property Over the remaining period of the right for usage of the land Motor vehicles 5 years Furniture, fittings and office equipment 10 years Computer hardware 5 years Warehouse machinery 3 - 5 years Depreciation is not provided on land. Intangible assets Intangible assets consist of computer software, patents and licences which are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is provided at rates calculated to write off the cost less the estimated residual value of the assets using the straight line method as follows: Computer software 3 - 5 years Patents and licences 3 years Repairs and maintenance Expenditure for repairs and maintenance of property, plant and equipment and costs associated with maintenance of computer software programmes are recognised as an expense as incurred. Impairment of tangible and intangible assets excluding goodwill At each balance sheet date, the group and the company reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group and the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent basis of allocation is identified. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2. Accounting policies (continued) Impairment (continued) Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Accounting for financial guarantee contracts The IASB has also amended IAS39 Financial Instruments: Recognition and Measurement to require certain financial guarantee contracts issued by the group to be accounted for in accordance with that Standard. Financial guarantee contracts that are accounted for in accordance with IAS39 are measured initially at their fair values, and subsequently measured at the higher of: * the amount of the obligation under the contract, as determined in accordance with IAS37 Provisions, Contingent Liabilities and Contingent Assets; and * the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with the revenue recognition policies as set out below. The Directors of the company have considered the amendments of IAS 39 Financial Instruments: Recognition and Measurement and have assessed the impact on the financial statements. The possibility of having to exercise their obligation under the guarantee contracts is remote and thus does not meet the initial recognition criteria in accordance with IAS37. Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit reported in the income statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group's liability for current tax is calculated using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such assets and liabilities are not recognized if the temporary differences arise from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) Taxation (continued) Deferred tax liabilities are recongized for taxable temporary differences associated with investments in subsidiaries and associates, and interest in joint ventures except where the group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interest are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates ( and tax laws ) that have been enacted or substantially enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax assets and liabilities on a net basis. Current and deferred tax for the period Current and deferred tax are recognised as an expense or income in profit or loss, except when they relate to items credited or debited directly to equity, in which case the tax is also recognised directly in equity, or where they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in calculating goodwill or in determining the excess of the acquirer's interest in the net fair value of the acquiree's identifiable assets, liabilities and contingent liabilities over cost. Foreign currencies The individual financial statements of each group entity are presented in the currency of primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in United States Dollars (US$), which is the functional currency of the company and the presentation currency for the consolidated financial statements. In preparing the financial statements of the individual entities, transactions in currencies other than the entity's functional currency (foreign currencies) are recorded at the rates of exchange prevailing at the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing at the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items are measured in terms of historical costs in a foreign currency are not retranslated. Exchange differences are recognised in the profit and loss in the period in which they arise. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2. Accounting policies (continued) Foreign currencies (continued) For the purpose of presenting consolidated financial statements, the assets and liabilities of the group's foreign operations are expressed in United States Dollars using exchange rates prevailing at the balance sheet date. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during the period, in which case the exchange rates at the date of the transactions are used. Exchange differences arising, if any, are classified as equity and transferred to the group's translation reserve. Exchange differences arising on the retranslation of the opening net assets of the group's foreign operations are shown as a movement in the foreign exchange reserve. Such exchange differences are recognised in profit or loss in the period in which the foreign operation is disposed of. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. Bank borrowings Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accrual basis to the profit and loss account using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. Inventories Inventories comprise finished IT components which are stated at the lower of cost and net realizable value. Cost is determined on the basis of standard cost method and comprises the cost of acquisition plus any other costs that are incurred to bring the stock items to their present location and condition. Net realizable value represents the estimated selling price for inventories less all cost necessary to make the sale. Trade and other receivables Trade and other receivables are stated at nominal value less provision for any amounts that are considered to be irrecoverable. Trade payables Trade payables are not interest bearing and are stated at their nominal value. Provisions A provision is recognized in the balance sheet when the company and the group has a legal or constructive present obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flow estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that the reimbursement will be received and the amount of the receivable can be measured reliably. Warranties Provisions for warranty costs are recognized at the date of sale of the relevant products, at the directors' best estimate of the expenditure required to settle the company's and the group's obligation. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2. Accounting policies (continued) Revenue recognition Revenue represents amounts invoiced to customers in respect of sales of goods during the year and is stated net of trade discounts, rebates, customer returns and other similar allowances. Sale of goods Revenue from the sale of goods is recognised when all the following conditions are satisfied: * the group and the company has transferred to the buyer the significant risks and rewards of ownership of the goods; * the group and the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; * the amount of revenue can be measured reliably; * it is probable that the economic benefits associated with the transaction will flow to the entity; and * the costs incurred or to be incurred in respect to the transaction can be measured reliably. Dividend and interest revenue Dividend revenue from investments is recognised when the shareholder's right to receive payment has been established. Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount. Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Finance Leases Assets held under finance leases are initially recognised as assets of the group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised. Contingent rentals are recognised as expenses in the periods in which they are incurred. Operating leases Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 2. Accounting policies (continued) Borrowing costs All borrowing costs are recognised in the income statement in the period in which they are incurred. Cash and cash equivalents The company considers all short-term highly liquid instruments with maturities of 3 months or less to be cash equivalents. Comparative figures Where necessary, comparative figures have been restated to coincide with current year's financial statements. Critical judgements in applying the entity's accounting policies and key sources of estimation uncertainty Revenue recognition In making its judgment, management considered the detailed criteria for the recognition of revenue from the sale of goods as set out in IAS18 Revenue and, in particular, whether the group and the company had transferred to the buyer the significant risks and rewards of ownership of the goods. The management are satisfied that the significant risks and rewards have been transferred and the recognition of the revenue in the current year is appropriate. Warranty provisions Warranty provisions represent the group's and the company's best estimate of the liability as a result of the warranties granted on certain products and is based on past experience and industry averages for defective products. Impairment of goodwill Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. 3. Financial expense, net 2006 2005 The Group US$ US$ Interest income 115.831 131.672 Interest on taxation - 65.578 Other financial income 6.629 29.386 Exchange gain 19.811 - 142.271 226.636 Bank interest 1.620.161 1.209.602 Bank charges 609.832 590.544 Interest to suppliers 228.212 - Factoring charges 1.125.496 950.165 Other financial expenses 22.998 31.420 Other interest 241.471 216.257 Exchange loss - 557.887 Interest on taxation 1.936 2.614 (3.850.106) (3.558.489) Net (3.707.835) (3.331.853) ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 3. Financial expense, net (continued) 2006 2005 The Company US$ US$ Interest income 107.420 94.514 Interest on taxation - 65.578 107.420 160.092 Bank interest 441.652 390.606 Bank charges 234.854 195.744 Interest to suppliers 228.212 - Factoring charges 11.159 53.980 Cash incentive bonus - 108.754 Interest on taxation 1.936 2.614 Exchange loss 112.018 6.574 Other interest 7.385 25.985 (1.037.216) (784.257) Net (929.796) (624.165) 4. Other income 2006 2005 The Group US$ US$ Profit on disposal of property, plant and equipment 11.546 28.969 Bad debts recovered 77.360 46.422 Other income 294.332 265.151 383.238 340.542 2006 2005 The Company US$ US$ Other income 16.659 57.563 Dividends received 650.000 - Profit on disposal of subsidiary - 156.398 (Loss)/profit on disposal of property, plant and equipment (529) 15.218 666.130 229.179 5. Listing expenses written off On 25th October 2006, the company was listed on the Alternative Investment Market of the London Stock Exchange. In the process of listing the company's shares on the Alternative Investment Market, certain costs were incurred which have been expensed to the income statement. These expenses are of a non-recurring nature and are costs incurred which are directly attributable to the company's listing. 6. Profit before taxation 2006 2005 The Group US$ US$ Profit before taxation is stated after crediting: (a) Depreciation 1.133.232 1.097.413 (b) Amortisation of intangible assets 710.085 602.464 (c) Auditors' remuneration 630.681 573.307 2006 2005 The Company US$ US$ The profit before taxation is stated after charging: (a) Depreciation 311.247 302.050 (b) Amortisation of intangible assets 582.505 475.386 (c) Auditors' remuneration 233.243 207.185 (d) Directors' remuneration - executive 562.709 400.200 (e) Directors' remuneration - non-executive 21.000 - ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 7. Taxation 2006 2005 The Group US$ US$ (Debit)/credit balance 1 January (76.446) 158.611 Provision for the year 1.622.736 932.416 Underprovision of prior years 4.406 3.344 Amounts paid, net (1.272.515) (1.170.817) Credit/(debit) balance 31 December 278.181 (76.446) The taxation charge of the group comprises corporation tax charge in Cyprus on the taxable profits of the company and those of its subsidiaries which are subject to tax in Cyprus and corporation tax in other jurisdictions on the results of the foreign subsidiary companies. Until 31 December 2002, International Business Companies ("IBCs") in Cyprus were taxed at 4,25% on their taxable income. In July 2002 the House of Representatives in Cyprus enacted a new tax legislation that came into effect from 1 January 2003. According to this new tax law, there will no longer be a distinction between local companies and International Business Companies. The taxable profits of all Cyprus companies will be taxed at the rate of 10%. IBCs which had income from their activities during the year ended 31 December 2001 could elect to be taxed in accordance with the transitional provisions of taxation. These provisions state that such companies may elect to be taxed at 4,25% on their taxable income until 31 December 2005 but they will not enjoy certain tax exemptions offered by the new law. In addition, such companies will not be subject to defence contribution. The directors had elected for the company to be taxed under the transitional rules at the rate of 4,25% until 31 December 2005. However, the other Cyprus resident companies of the group were taxed at the rate of 10%. In the current year all Cyprus resident companies of the group are taxed at 10%. Dividends received by Cyprus companies are exempt from Corporation Tax. They are also exempt from Special Defence Contribution provided certain conditions are met. Dividends received by a Cyprus resident company from another Cyprus resident company are exempt from Special Defence Contribution. Dividends received by a Cyprus resident company from a non resident company are exempt from Special Defence Contribution if more than 1% of the shares of the non resident company are held by the Cyprus resident company. This exemption does not apply and the dividends are subject to 15% Defence Contribution if the foreign company paying the dividends (a) carries on more than 50% investment activities giving rise to investment income; and (b) the foreign tax burden on its profits is significantly lower than the Cyprus tax burden (in practice lower than 5%). Dividends paid by a Cyprus Resident company to its non resident shareholders (companies or individuals tax resident outside Cyprus) would not be subject to withholding tax in Cyprus, regardless of the existence of a Treaty between Cyprus and the country of residence of the shareholders. The consolidated taxation charge for the year consists of the following: 2006 2005 US$ US$ Provision for the year 1.622.736 932.416 Underprovision of prior years 3.344 4.406 Deferred tax charge 61.674 3.620 Charge for the year 1.688.816 939.380 ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 7. Taxation (continued) The charge for taxation is based on the group's profits for the year as adjusted for tax purposes. The reconciliation of the charge for the year is as follows: 2006 2005 US$ US$ Income assessed to tax in Cyprus at 10% 8.320.449 1.786.130 Income assessed to tax in Cyprus at 4,25% - 5.762.043 Income subject to overseas Tax 2.841.367 1.769.470 Accounting profit 11.161.816 9.317.643 Corporation tax thereon at the applicable rate of 10% 832.045 178.613 Corporation tax thereon at the applicable rate of 4,25% - 244.887 Tax on income not taxable in determining taxable profit (9.427) (9.302) Temporary differences 7.887 683 Tax on non-allowable expenses 179.458 29.051 Additional tax 10% 31.486 12.547 1.041.449 456.479 Special contribution to defence fund 35.631 6.558 Underprovision of prior years 4.406 3.344 Deferred tax charge 61.674 3.620 Tax on income subject to overseas tax 545.657 469.379 Taxation charge for the year 1.688.817 939.380 2006 2005 The Company US$ US$ Credit/(debit) balance 1 January 8.552 (225.745) Underprovision of prior years - 36.682 Provision for the year 784.866 281.188 Amount paid (597.322) (119.995) Exchange loss - 36.422 Credit balance 31 December 196.096 8.552 The charge for taxation is based on the company's profits for the year as adjusted for tax purposes. The reconciliation of the accounting result to the taxation charge for the year is as follows: 2006 2005 US$ US$ Accounting profit before taxation and after write off of listing expenses 6.135.652 5.762.043 Corporation tax thereon at the applicable rate of 10%/4,25% 613.565 244.887 Tax effects of: Tax on income not taxable in determining taxable profit (74.427) (9.302) Temporary differences 8.113 868 Tax on non allowable expenses 179.451 29.051 Additional tax (10%) 22.533 9.126 749.235 274.630 Special contribution to defence fund 35.631 6.558 Underprovision of prior years - 36.682 Deferred tax liability 3.288 5.978 788.154 323.848 ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 7. Taxation (continued) The taxation charge for the year consists of the following: 2006 2005 US$ US$ Provision for the current year 749.235 274.630 Special contribution to defence fund 35.631 6.558 Deferred tax charge 3.288 5.978 Underprovision of prior years - 36.682 788.154 323.848 Deferred tax 2006 2005 The Group US$ US$ Deferred tax liability: The deferred tax liability relates to excess of capital allowances over depreciation 44.997 8.295 The Company Deferred tax liability: The deferred tax liability relates to excess of capital allowances over depreciation 74.294 71.006 8. Trade receivables 2006 2005 The Group US$ US$ Trade receivables 150.948.946 112.407.759 Allowance for doubtful debts (2.158.575) (1.436.667) 148.790.371 110.971.092 2006 2005 The Company US$ US$ Trade receivables 68.543.529 46.003.204 Allowance for doubtful debts (225.873) (191.022) 68.317.656 45.812.182 9. Other current assets 2006 2005 US$ US$ The Group Other debtors and prepayments 2.070.308 1.823.852 VAT and other taxes refundable 1.878.527 1.115.769 Loan due from fellow subsidiary 118.096 110.000 Loans advanced 24.165 164.120 Advances to suppliers 114.802 404.416 Employee floats 137.511 74.427 Deposits 199.612 327.857 Amount due from ultimate holding company 63.205 - Amount due from executive directors 120.130 - 4.726.356 4.020.441 2006 2005 The Company US$ US$ Other debtors and prepayments 875.001 828.624 Loan due from fellow subsidiary 118.096 110.000 Loans advanced to employees 22.000 98.640 Amount due from subsidiary companies 27.212.930 37.837.890 Loans due from subsidiary companies 1.310.737 1.012.500 VAT refundable 55.284 - Amount due from executive directors 120.130 - Amount due from ultimate holding company 63.205 - 29.777.383 39.887.654 The directors consider that the carrying amount of other current assets of the group and the company approximate their fair value. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 10. Property, plant and equipment The Group Land Furniture and Warehouse and Office Motor Computer buildings machinery fittings equipment vehicles hardware Total Cost US$ US$ US$ US$ US$ US$ US$ At 1 January 2005 4.351.697 98.257 603.161 953.990 1.494.579 2.677.497 10.179.181 Foreign exchange difference on opening balances (170.674) (12.638) (28.375) (80.102) (126.640) (174.379) (592.808) Additions 553.851 - 100.008 183.741 289.434 333.974 1.461.008 Disposals - - (8.379) (17.561) (205.065) (65.763) (296.768) Disposal of - - (3.950) (5.706) (10.807) (16.973) (37.436) subsidiary At 1 January 2006 4.734.874 85.619 662.465 1.034.362 1.441.501 2.754.356 10.713.177 Foreign exchange difference on opening balances 349.604 13.544 49.217 89.571 154.027 194.770 850.733 Additions from the acquisition of subsidiary - 44.427 1.601 1.194 61.314 4.488 113.024 Additions 63.544 - 251.445 138.828 265.711 385.147 1.104.675 Disposals - - (1.955) (33.631) (158.180) (113.950) (307.716) At 31 December 2006 5.148.022 143.590 962.773 1.230.324 1.764.373 3.224.811 12.473.893 Accumulated depreciation At 1 January 2005 329.440 27.330 269.118 464.603 818.464 1.515.965 3.424.920 Foreign exchange difference on opening balances (12.187) (3.514) (14.757) (39.763) (47.424) (116.026) (233.671) Charge for the year 145.234 20.021 70.021 130.368 248.456 483.313 1.097.413 Disposals - - (3.036) (7.303) (174.119) (36.742) (221.200) Elimination on disposal of subsidiary - - (2.211) (1.567) (9.339) (4.808) (17.925) At 1 January 2006 462.487 43.837 319.135 546.338 836.038 1.841.702 4.049.537 Foreign exchange difference on opening balances 34.037 6.400 23.474 64.590 83.092 147.882 359.475 Charge for the year 142.418 31.545 85.436 131.714 243.163 498.956 1.133.232 On acquisition of subsidiary - 14.068 114 131 19.149 1.085 34.547 Disposals - - (1.822) (31.513) (123.861) (107.631) (264.827) At 31 December 2006 638.942 95.850 426.337 711.260 1.057.581 2.381.994 5.311.964 Net book value 31 December 2006 4.509.080 47.740 536.436 519.064 706.792 842.817 7.161.929 31 December 2005 4.272.387 41.782 343.330 488.024 605.463 912.654 6.663.640 The Company Land Furniture and and Office Motor Computer buildings fittings equipment vehicles hardware Total Cost US$ US$ US$ US$ US$ US$ At 1 January 2005 1.550.918 230.772 130.459 275.159 1.019.398 3.206.706 Additions - 36.919 57.401 - 156.418 250.738 Disposals - (557) (186) (23.985) (4.925) (29.653) At 1 January 2006 1.550.918 267.134 187.674 251.174 1.170.891 3.427.791 Additions - 22.367 21.597 34.150 79.753 157.867 Disposals - (107) (325) - (285) (717) At 31 December 2006 1.550.918 289.394 208.946 285.324 1.250.359 3.584.941 Accumulated depreciation At 1 January 2005 130.833 92.362 49.121 187.859 533.336 993.511 Charge for the year 46.998 24.525 14.754 30.544 185.229 302.050 On disposals - (225) (93) (20.387) (2.956) (23.661) 1 January 2006 177.831 116.662 63.782 198.016 715.609 1.271.900 Charge for the year 46.998 28.241 19.228 28.228 188.552 311.247 On disposals - (41) (148) - - (189) At 31 December 2006 224.829 144.862 82.862 226.244 904.161 1.582.958 Net book value 31 December 2006 1.326.089 144.532 126.084 59.080 346.198 2.001.983 31 December 2005 1.373.087 150.472 123.892 53.158 455.282 2.155.891 ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 11. Intangible assets Computer Patents & software licences Total The Group US$ US$ US$ Cost At 1 January 2005 3.408.065 146.767 3.554.832 Foreign exchange difference on opening balances (120.615) - (120.615) Additions 383.790 73.887 457.677 Disposals (74.072) - (74.072) Disposal of subsidiary (3.080) - (3.080) At 1 January 2006 3.594.088 220.654 3.814.742 Foreign exchange difference on opening balances 94.014 - 94.014 Additions 415.402 110.947 526.349 Disposals (5.821) - (5.821) At 31 December 2006 4.097.683 331.601 4.429.284 Accumulated amortisation At 1 January 2005 1.896.203 7.089 1.903.292 Foreign exchange difference on opening balances (84.004) - (84.004) Charge for the year 553.607 48.857 602.464 Disposals (49.328) - (49.328) Elimination on disposal of subsidiary (907) - (907) At 1 January 2006 2.315.571 55.946 2.371.517 Foreign exchange difference on opening balances 85.253 - 85.253 Charge for the year 560.638 149.447 710.085 Disposals (5.821) - (5.821) At 31 December 2006 2.955.641 205.393 3.161.034 Net book value 31 December 2006 1.142.042 126.208 1.268.250 31 December 2005 1.278.517 164.708 1.443.225 The Company Computer Patents & software licences Total Cost US$ US$ US$ At 1 January 2005 2.463.915 146.162 2.610.077 Additions 349.888 72.663 422.551 Disposals (13.412) - (13.412) At 1 January 2006 2.800.391 218.825 3.019.216 Additions 344.532 6.404 350.936 Disposals (279) - (279) At 31 December 2006 3.144.644 225.229 3.369.873 Accumulated amortisation At 1 January 2005 1.189.439 6.485 1.195.924 Charge for the year 426.665 48.721 475.386 Disposals (3.495) - (3.495) At 1 January 2006 1.612.609 55.206 1.667.815 Charge for the year 497.002 85.503 582.505 Disposals (54) - (54) At 31 December 2006 2.109.557 140.709 2.250.266 Net book value 31 December 2006 1.035.087 84.520 1.119.607 31 December 2005 1.187.782 163.619 1.351.401 The cost of computer software includes an amount of US$1.347.544 for two computer software programmes for which the useful economic life is estimated to be five years and its amortisation is calculated on a straight line basis over five years. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 12. Investment in subsidiary companies 2006 2005 The Company US$ US$ Shares at cost of acquisition or written down value 2.714.977 2.769.602 Balance at 1 January 2.769.202 2.817.492 Net increase of share capital - 393.285 Diminution in value of investment - (421.175) Liquidation proceeds / disposal of subsidiary (Note a) (54.225) (20.400) Balance at 31 December 2.714.977 2.769.202 Note a: The subsidiary under liquidation as at 31 December 2006 was: Percentage of participation Country of disposed 2006 incorporation % US$ Subsidiary Company Asbis Fin OY Finland 100 54.225 The liquidation proceeds represent 100% recovery of the cost of the investment. At the year end the company held a participation in the following subsidiaries: Percentage of Country of participation Subsidiary Company incorporation % Asbis Ukraine Limited Ukraine 100 ISA Hardware Limited * Ukraine 100 Asbis PL Sp.zo.o. Poland 100 AS Asbis Baltic Estonia 100 Asbis Romania S.R.L. Romania 100 Asbis Cr d.o.o. Croatia 100 Asbis YU d.o.o. Serbia 100 Asbis Hungary Limited Hungary 100 Asbis Bulgaria Limited Bulgaria 100 Asbis CZ, spoI.s.r.o. Czech Republic 100 UAB Asbis Vilnius Lithuania 100 Asbis Slovenia d.o.o. Slovenia 100 Asbis Middle East FZE United Arab Emirates 100 Asbis SK sp.l sr.o. Slovakia 100 Asbis Europe BV Netherlands 100 Asbis Limited Ireland 100 ZAO Automatic Systems of Business Control-Minsk Belarus 100 ISA Hardware Limited - Group (Note a) Cyprus 100 OOO 'Asbis' -Moscow Russia 100 Asbis Nordic AB Sweden 100 Asbis Morocco Limited Moroco 100 * held by Asbis Ukraine Limited ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 12. Investment in subsidiary companies (continued) Note a: The ISA Hardware Limited Group held a direct or indirect participation in the following subsidiaries: Percentage of Country of participation Subsidiary Company incorporation % Warranty RU Limited Russia 100 Comptizon Ltd British Virgin 100 Islands ISA Hardware s.r.o. Czech Republic 100 ISA Hardware d.o.o. Croatia 100 ISA Hardware Hungary Commercial Limited Liability Co Hungary 100 ISA Hardware International SRL Romania 100 ISA Hardware s.r.o. Slovakia Slovakia 100 ISA Hardware d.o.o. Beograd Serbia 100 ISA Hardware s.r.o. Slovenia Slovenia 100 ISA Hardware SP.Z.O.O. Poland 100 Prestigio Technologies (Cyprus) Ltd Cyprus 100 Prestigio Europe s.r.o. Czech Republic 100 Prestiogio Limited Russia 100 Prestigio Ukraine Limited Ukraine 100 Canyon Technology Ltd Hong Kong 100 Canyon Technology B.V. Netherlands 100 The principal activity of the group and the company is the trading and distribution of computer hardware and software. 13. Acquisitions The Group During the year a subsidiary company acquired 100% of the share capital of Prestigio Europe spol s.r.o. and Prestigio LLC Russia. As this transaction was considered by the directors a business combination of entities under common control, the provisions of IFRS 3 "Business Combinations" have not been applied. Instead the assets and liabilities of the entities acquired have been recorded in the group's consolidated financial statements at their carrying values. The excess between the carrying value of the net assets transferred and the consideration paid, which relates to the profits generated by the above subsidiaries prior to the date of acquisition of US$37.681 has been transferred directly to equity. The net carrying value of underlying separately identifiable assets and liabilities transferred to the group during the year were as follows: 2006 US$ Tangible assets 78.474 Inventories 760.668 Receivables 215.181 Other receivables 147.087 Payables and accruals (1.227.718) Loans payable (345.927) Cash and cash equivalents 430.963 Net identifiable assets and liabilities 58.728 Excess of group's interest in net assets acquired (37.681) Total purchase consideration 21.047 Net cash inflow arising on transfer: Total purchase consideration (21.047) Cash and cash equivalents transferred 430.963 Net cash inflow 409.916 ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 13. Acquisitions (continued) The Group (continued) The excess between the carrying value of the net assets transferred to the group and the consideration paid is analysed as follows: US$ Acquisition of: Prestigio Europe spol s.r.o. 11.062 Prestigio LLC Russia 26.619 37.681 14. Investments Country of Percentage of incorporation participation 2006 2005 US$ US$ The Group Shares at cost of acquisition Investments held in fellow subsidiaries E-Vision Limited Cyprus 18% 90.000 90.000 Other Investments Asekol s.r.o Czech Republic 9,09% 9.580 - 99.580 90.000 The Company US$ US$ Shares at cost of acquisition E-Vision Limited Cyprus 18% (Note a) 90.000 90.000 Note a: The remaining 82% is held by the ultimate holding company KS Holdings Limited. 15. Other current liabilities 2006 2005 The Group US$ US$ Factoring creditors (Note (a)) 9.670.740 9.450.317 Salaries payable and related costs 605.448 625.255 VAT payable 4.265.374 3.899.737 Amount due to directors - executive 53.366 66.217 Amounts due to directors - non-executive 21.000 - Non-trade accounts payable 3.228.154 2.964.343 Accruals and deferred income 5.116.237 3.526.580 22.960.319 20.532.449 Note (a): The group enjoyed as at 31 December 2006 factoring facilities of US$25.030.728 (2005: US$ 19.436.440). These factoring facilities are secured as mentioned in note 16. 2006 2005 The Company US$ US$ Salaries payable and related costs 85.737 74.878 Amount due to subsidiary companies 1.589.396 9.565.421 Amount due to directors - executive 53.366 66.217 Amounts due to directors - non-executive 21.000 - Non-trade accounts payable 632.880 714.740 Accruals and deferred income 3.360.521 1.787.866 VAT payable - 362.478 5.742.900 12.571.600 The directors consider that the carrying amount of other current liabilities of the group and the company approximate their fair value. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 16. Bank overdrafts and short-term loans 2006 2005 The Group US$ US$ Bank overdrafts - Note 21 14.677.165 12.927.415 Bank short term loans 19.494.450 7.213.490 Current portion of long term loans 205.557 174.524 34.377.172 20.315.429 The group, as at 31 December 2006 enjoyed the following financing facilities with banks in the countries that the company and its subsidiaries are operating: - overdraft facilities of US$16.590.934 - short term loans/revolving facilities US$19.819.699 - bank guarantee facilities of US$4.210.843 The group had for the year 2006 cash lines (overdrafts, loans and revolving facilities) and factoring lines. The weighted average cost of debt (cash lines and factoring lines) for 2006 was 9,0% (2005: 8,1%) The factoring, overdraft and revolving facilities as well as the loans granted to the company and its subsidiaries by their bankers are secured by: - First floating charge over all assets of the company for a total amount of US$4.000.000 - Second floating charge on the whole undertaking including the company's uncalled capital, goodwill and book debts for US$2.000.000 plus interest - Mortgage on 1/4 of the property registered in the name of Diamond Properties Ltd (Vendor of the property for the company's head office premises acquired in Limassol) for the amount of US$1.800.000 and assignment of the sales contract between Diamond Properties Ltd and the company - Mortgage on land and buildings that the group owns in the Czech Republic and Belarus for the amount of US$1.100.000 - Charge over receivables and inventories - Corporate guarantees and, in some cases, by also cross guarantees by all group companies to the extent of facilities granted - Assignment of fire insurance policy - Pledged deposits of US$3.885.064 - Personal guarantees of the Chairman and Chief Executive Officer 2006 2005 The Company US$ US$ Bank overdrafts - Note 21 1.103.256 3.262.584 Bank short term loans 4.536.534 1.000.000 5.639.790 4.262.584 The company, as at 31 December 2006 enjoyed the following financing facilities from its bankers: - overdraft facilities of US$4.576.600 - revolving / short term loan facilities US$4.500.000 - bank guarantee facilities US$2.745.728 The overdraft, revolving and factoring facilities granted to the company are secured by: - First floating charge over all assets of the company for a total amount of US$4.000.000 - Second floating charge on the whole undertaking including the company's uncalled capital, goodwill and book debts for US$2.000.000 plus interest - Mortgage on 1/4 of the property registered in the name of Diamond Properties Ltd (Vendor of the property for the company's head office premises acquired in Limassol) for the amount of US$1.800.000 and assignment of the sales contract between Diamond Properties Ltd and the company - Pledge of inventories - Pledged deposits of US$2.823.945 - Personal guarantees of the Chairman and Chief Executive Officer The company had for the year 2006 cash lines (overdrafts and revolving facilities) with average cost for the year 2006 of 7,6% (2005: 6,8%) ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 17. Long term liabilities 2006 2005 The Group US$ US$ Bank loans 612.602 568.596 Other long term liabilities 53.456 177.960 666.058 746.556 The bank loans are secured as described in Note 16. 18. Finance leases 2006 2005 US$ US$ Obligation under finance lease 219.242 234.060 Less: Amount payable within one year (144.527) (87.446) Amounts payable within 2-5 years inclusive 74.715 146.614 19. Share capital 2006 2005 US$ US$ Authorised 63.000.000 (2005: 48.000.000) shares of US$ 0,20 each 12.600.000 9.600.000 Issued, called-up and fully paid 48.000.000 (2005: 40.000.000) ordinary shares of US$ 0,20 each 9.600.000 8.000.000 - (2005 8.000.000) preference shares of US$ 0,20 each - 1.600.000 9.600.000 9.600.000 On 4 September 2006 by a special resolution passed at an extraordinary general meeting of the shareholders of the company it was decided: a) to increase the authorised share capital from 48.000.000 shares of US$0,20 each to 63.000.000 shares of US$0,20 each b) to convert the 8.000.000 preference shares of US$0,20 each to 8.000.000 ordinary shares of US$0,20 each. 20. Minority interest Minority interest represents the participation of shareholders outside the group in the subsidiary companies as follows: Country of incorporation Percentage of participation 2006 2005 % % OOO "Elko Computers" - Minsk Belarus - 40 2006 2005 US$ US$ Balance at 1 January - 49.150 Exchange difference arising on the conversion of foreign subsidiaries - 525 Minority interest during the year 000 "Elko Computers" - Minsk - 55.959 Minority interest on disposal - (105.634) Balance at 31 December - - ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 21. Cash and cash equivalents 2006 2005 The Group US$ US$ Cash at bank 27.927.606 25.106.038 Bank overdrafts - Note 16 (14.677.165) (12.927.415) 13.250.441 12.178.623 The cash at bank balances include an amount of US$ 3.885.064 (2005: US$3.804.178) which represents pledged deposits. The Company 2006 2005 US$ US$ Cash at bank 17.525.996 15.051.522 Bank overdrafts - Note 16 (1.103.256) (3.262.584) 16.422.740 11.788.938 The cash at bank balances include an amount of US$ 2.823.945 (2005: US$ 2.820.289) which represents pledged deposits. 22. Commitments and contingencies As at 31 December 2006 the group and the company were committed in respect of purchases of inventories of a total cost value of US$ 13.543.819 (2005: US$ 4.733.707) which were in transit at 31 December 2006 and delivered in January 2007. Such inventories and the corresponding liability towards the supplier have not been included in these financial statements since, according to the terms of the purchase, title of the goods had not passed to the company as at the year end. As at 31 December 2006 the group and the company were contingently liable in respect of bank guarantees of US$4.210.843 which the group had extended mainly to vendors as at 31 December 2006 (company US$2.745.728) in order to secure the group's and company's liabilities towards its vendors which are reflected in the financial statements under trade payables. As at 31 December 2006 the company was contingently liable for the amount of US$37.4 million in respect of corporate guarantees given to financial institutions as security for financing facilities granted to the subsidiary companies. The liabilities of the subsidiary companies covered by the said corporate guarantees are reflected in note 16 of the financial statements. As at 31 December 2006 the group and the company had no other legal commitments and contingencies. 23. Related party transactions and balances The holding company of the group is K.S. Holdings Limited, a company incorporated in Cyprus. Transactions between the company and its subsidiaries have been eliminated on consolidation. In the normal course of business, the group and the company undertook during the year on an arm's-length basis transactions with the fellow subsidiary company E-Vision Limited and its subsidiaries as follows: 2006 2005 The Group and the Company US$ US$ E-Vision purchase of services and computer software 570.000 587.120 Interest income 8.096 7.190 Related party balances 2006 2005 US$ US$ Loan due from fellow subsidiary company (note 9) E-Vision Limited 118.096 110.000 Included in non trade accounts payable (note 15) E-Vision Limited - 18.500 The loan receivable from E-Vision Limited is unsecured and bears interest at 3 months Libor + 2% per annum. ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 24. Related party transactions and balances (continued) The Company In the normal course of business, the company undertook during the year on an arm's-length basis transactions with its subsidiary companies as follows: Amounts owed by Amounts owed to Sales of goods Purchases of goods related parties related parties 2006 2005 2006 2005 2006 2005 2006 2005 US$ US$ US$ US$ US$ US$ US$ US$ Subsidiary companies 244.510.693 258.740.952 16.697.767 18.442.074 27.212.930 37.837.890 1.589.396 9.565.421 2006 2005 US$ US$ Loans due from subsidiary companies (note 9) 1.310.737 1.012.500 The loans due from subsidiary companies consist of 3 loans, 2 of which are interest free and one loan bearing interest at 6% per annum. Transactions and balances of key management 2006 2005 US$ US$ Directors' remuneration - executive 562.709 400.200 Directors' remuneration - non executive 21.000 - 583.709 400.200 Amount due to directors - executive 53.366 66.217 - non executive 21.000 - 74.366 66.217 Amounts due from directors (note 9) 120.130 - 25. Personnel expenses and average number of employees The Group 2006 2005 US$ US$ Salaries and other benefits 15.249.975 12.832.872 The average number of employees was 788 649 The Company 2006 2005 US$ US$ Salaries and other benefits 3.074.077 3.093.705 The average number of employees was 99 96 ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 26. Earnings per share 2006 2005 US$ US$ Profit for the year attributable to members 9.473.000 8.322.304 Weighted average number of shares for the purposes of basic and diluted earnings per share 48.000.000 48.000.000 Cents Cents Basic and diluted earnings per share 19,7 17,3 27. Dividends 2006 2005 US$ US$ Final proposed dividend 960.000 960.000 The Board of Directors propose the payment of a final dividend of US$0,02 per share for the year ended 31 December 2006 (total proposed dividend - US$960.000) which will be submitted for approval at the forthcoming annual general meeting. The proposed dividend for the year 2006 has not been recognized as a liability as at 31 December 2006 in accordance with revised IAS10 - Post Balance Sheet Events, where proposed dividends are recognized in the Income Statement and in the Balance Sheet of the company after their approval at the annual general meeting. The proposed dividend for the year 2005 was approved at the 2006 annual general meeting of the company and was paid during the year. 28. Segmental reporting The group operates in a single segment of the distribution of IT components in a number of geographical regions. The following table produces an analysis of the group's sales by geographical market, irrespective of the origin of the goods. Sales revenue by geographical market 2006 2005 US$ US$ Former Soviet Union 491.246.643 453.459.232 Eastern Europe 342.540.983 313.126.344 Western Europe 88.783.690 84.898.710 Middle East & Africa 68.656.262 54.865.258 Other 17.567.019 24.039.738 Total revenue 1.008.794.597 930.389.282 ASBISC ENTERPRISES PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (Expressed in United States Dollars) 29. Financial risk factors The group's activities expose it to interest rate risk, credit risk, liquidity risk and currency risk arising from the financial instruments it holds. The risk management policies employed by the group to manage these risks are discussed below: 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. The group has no significant interest-bearing assets and it borrows at variable rates. The group's management monitors the interest rate fluctuations on a continuous basis and acts accordingly. Credit risk Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet date. The group has no significant concentrations of credit risk. The group has credit insurance policies in place and also implemented internal policies to ensure that sales of products are made to customers with an appropriate credit history and monitors on a continuous basis the ageing profile of its receivables. Liquidity risk Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The group has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of credit facilities. 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 functional currency. Management monitors the exchange rate fluctuations on a continuous basis and acts accordingly. 30. Events after the balance sheet date No significant events occurred after the balance sheet date. This information is provided by RNS The company news service from the London Stock Exchange END FR UOONRBNRSRAR
1 Year Asbisc Chart |
1 Month Asbisc Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions