Unifiedpost : Upg financial statement h1 2023 final incl review report bdo

UNIFIEDPOST GROUP SA

Interim condensed consolidated financial statements for the six-month period ended 30 June 2023

(unaudited)

Interim condensed consolidated financial statements

1

Index to the consolidated financial statements

1. Interim consolidated statement of profit or loss and other comprehensive income

		(unaudited)	4
2. Interim consolidated statement of financial position (unaudited)	5
3. Interim consolidated statement of changes in equity (unaudited)	6
4. Interim consolidated statement of cash flows (unaudited)	7
5. Notes to the interim consolidated financial statements (unaudited)	8
	5.1	General	8
	5.2	Declaration of conformity	8
	5.3	New accounting policies and significant changes	9
5.4	Significant accounting estimates and judgements	9
				5.4.1	Going concern	9
	5.5	Significant events and transactions	10
5.6	Revenue from contracts with customers	11
				5.6.1	Revenue by type of transaction	11
				5.6.2	Revenue by Cash Generating Unit and by type of transaction	11
5.7	Disclosure of expenses	12
				5.7.1	Expenses by cost centre	12
				5.7.2	Staff and related expenses	13
				5.7.3	Amortisation and depreciation charges	14
	5.8	Financial expenses	14
5.9	Goodwill and impairment testing	15
				5.9.1	Carrying amounts of goodwill	15
				5.9.2	Cash Generating Units	15
				5.9.3	Impairment testing	15
	5.10	Other intangible assets	16
	5.11	Cash and cash equivalents	16
5.12	Borrowings	16
				5.12.1	Bank borrowings	17
				5.12.2	Other loans	17
	5.13	Liabilities associated with puttable non-controlling interests	18
	5.14	Reconciliation of liabilities arising from financing activities	18
5.15	Segment information	19
				5.15.1	Information per Operating segment	19
				5.15.2	Information per geographical area	20
	5.16	Investments	20

Interim condensed consolidated financial statements

2

5.17 Financial instruments and financial risk management	21
		5.17.1	Financial instruments	21
	5.17.2	Financial risk management	23
			5.17.2.1	Credit risk	23
			5.17.2.2	Liquidity risk	23
			5.17.2.3	Capital risk management	24
5.18	Significant agreements, commitments and contingencies	25
5.19	Transactions with related parties	25
5.20 Events after the reporting date	26

Interim condensed consolidated financial statements

3

1. Interim consolidated statement of profit or loss and other comprehensive income (unaudited)

	Thousands of Euro, except per share data		For the 6-month period ended 30 June
		Note	2023	2022
	Digital processing revenues	5.6	65.220	59.260
	Digital processing cost of services	5.7	(38.183)	(35.557)
	Digital processing gross profit		27.037	23.703
	Postage & Parcel optimisation revenues	5.6	27.941	32.404
	Postage & Parcel optimisation cost of services	5.7	(24.770)	(29.067)
	Postage & Parcel optimisation gross profit		3.171	3.337
	Research and development expenses	5.7	(11.321)	(7.549)
	General and administrative expenses	5.7	(20.733)	(22.659)
	Selling and marketing expenses	5.7	(13.899)	(14.624)
	Other income / (expenses)		(452)	(440)
	Profit / (loss) from operations		(16.197)	(18.232)
	Financial income		88	245
	Financial expenses	5.8	(7.640)	(3.552)
	Change in fair value of financial liabilities		-	535
	Profit / (loss) before tax		(23.749)	(21.004)
	Income tax		(292)	(146)
	PROFIT / (LOSS) FOR THE YEAR		(24.041)	(21.150)
	Other comprehensive income / (loss):		(1.388)	(1.971)
	Items that will not be reclassified to profit or (loss),	net of tax:
	Remeasurements of defined benefit pension obligations	-	-
	Items that will or may be reclassified to profit or loss, net of tax:
	Exchange gains / (losses) arising on translation of foreign operations	(1.388)	(1.971)
	TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR	(25.429)	(23.121)
	Profit / (loss) is attributable to:
	Owners of the parent		(24.058)	(20.760)
	Non-controlling interests		17	(390)
	Total comprehensive income / (loss) is attributable to:
	Owners of the parent		(25.446)	(22.731)
	Non-controlling interests		17	(390)
	Earnings per share attributable to the equity holders of the parent:
	Basic		(0,67)	(0,61)
	Diluted		(0,67)	(0,61)

The notes form an integral part of these Interim Consolidated Financial Statements.

Interim condensed consolidated financial statements

4

2. Interim consolidated statement of financial position (unaudited)

	Thousands of Euro		As at 30 June	As at 31 December
		Note	2023	2022
	ASSETS
	Goodwill	5.9	152.580	153.429
	Other intangible assets	5.10	88.439	85.516
	Property and equipment		7.741	8.231
	Right-of-use assets		10.457	10.214
	Investments in associates		1.875	1.875
	Non-current contract costs		678	872
	Deferred tax assets		760	462
	Other non-current assets		2.165	1.728
	Non-current assets		264.695	262.327
	Inventories		691	822
	Trade and other receivables		27.547	31.890
	Contract assets		688	426
	Contract costs		1.533	1.859
	Current tax assets		1.030	705
	Prepaid expenses		1.942	2.275
	Cash and cash equivalents	5.11	24.696	40.033
	Current assets		58.127	78.010
	TOTAL ASSETS		322.822	340.337
	SHAREHOLDERS' EQUITY AND LIABILITIES
	Share capital		326.806	326.806
	Costs related to equity issuance		(16.029)	(16.029)
	Share premium reserve		492	492
	Accumulated deficit		(172.541)	(148.497)
	Reserve for share-based payments		1.831	1.813
	Other reserve		(3.034)	(2.863)
	Cumulative translation adjustment reserve		(5.101)	(3.713)
	Equity attributable to equity holders of the parent		132.424	158.009
	Non-controlling interests		467	281
	Total shareholders' equity		132.891	158.290
	Non-current loans and borrowings	5.12	106.904	97.408
	Liabilities associated with puttable non-controlling interests	5.13	859	840
	Non-current lease liabilities		6.689	6.438
	Non-current contract liabilities		4.641	4.039
	Retirement benefit obligations		88	83
	Deferred tax liabilities		5.016	5.720
	Non-current liabilities		124.197	114.528
	Current loans and borrowings	5.12	8.611	6.967
	Current liabilities associated with puttable non-controlling interests	5.13	7.650	7.670
	Current lease liabilities		3.761	3.800
	Trade and other payables		30.411	34.853
	Contract liabilities		13.545	12.701
	Current income tax liabilities		1.756	1.528
	Current liabilities		65.734	67.519
	TOTAL EQUITY AND LIABILITIES		322.822	340.337

The notes form an integral part of these Interim Consolidated Financial Statements.

Interim condensed consolidated financial statements

5