254900Q164GFJEKCOD14 2023-10-01 2024-09-30 254900Q164GFJEKCOD14 2024-09-30 iso4217:EUR 254900Q164GFJEKCOD14 2023-09-30 254900Q164GFJEKCOD14 2022-10-01 2023-09-30 iso4217:EUR xbrli:shares 254900Q164GFJEKCOD14 2022-10-01 ifrs-full:IssuedCapitalMember 254900Q164GFJEKCOD14 2022-10-01 ifrs-full:SharePremiumMember 254900Q164GFJEKCOD14 2022-10-01 ifrs-full:OtherReservesMember 254900Q164GFJEKCOD14 2022-10-01 ifrs-full:RetainedEarningsMember 254900Q164GFJEKCOD14 2022-10-01 ifrs-full:EquityAttributableToOwnersOfParentMember 254900Q164GFJEKCOD14 2022-10-01 ifrs-full:NoncontrollingInterestsMember 254900Q164GFJEKCOD14 2022-10-01 254900Q164GFJEKCOD14 2022-10-01 2023-09-30 ifrs-full:IssuedCapitalMember 254900Q164GFJEKCOD14 2022-10-01 2023-09-30 ifrs-full:SharePremiumMember 254900Q164GFJEKCOD14 2022-10-01 2023-09-30 ifrs-full:OtherReservesMember 254900Q164GFJEKCOD14 2022-10-01 2023-09-30 ifrs-full:RetainedEarningsMember 254900Q164GFJEKCOD14 2022-10-01 2023-09-30 ifrs-full:EquityAttributableToOwnersOfParentMember 254900Q164GFJEKCOD14 2022-10-01 2023-09-30 ifrs-full:NoncontrollingInterestsMember 254900Q164GFJEKCOD14 2023-09-30 ifrs-full:IssuedCapitalMember 254900Q164GFJEKCOD14 2023-09-30 ifrs-full:SharePremiumMember 254900Q164GFJEKCOD14 2023-09-30 ifrs-full:OtherReservesMember 254900Q164GFJEKCOD14 2023-09-30 ifrs-full:RetainedEarningsMember 254900Q164GFJEKCOD14 2023-09-30 ifrs-full:EquityAttributableToOwnersOfParentMember 254900Q164GFJEKCOD14 2023-09-30 ifrs-full:NoncontrollingInterestsMember 254900Q164GFJEKCOD14 2023-10-01 ifrs-full:IssuedCapitalMember 254900Q164GFJEKCOD14 2023-10-01 ifrs-full:SharePremiumMember 254900Q164GFJEKCOD14 2023-10-01 ifrs-full:OtherReservesMember 254900Q164GFJEKCOD14 2023-10-01 ifrs-full:RetainedEarningsMember 254900Q164GFJEKCOD14 2023-10-01 ifrs-full:EquityAttributableToOwnersOfParentMember 254900Q164GFJEKCOD14 2023-10-01 ifrs-full:NoncontrollingInterestsMember 254900Q164GFJEKCOD14 2023-10-01 254900Q164GFJEKCOD14 2023-10-01 2024-09-30 ifrs-full:IssuedCapitalMember 254900Q164GFJEKCOD14 2023-10-01 2024-09-30 ifrs-full:SharePremiumMember 254900Q164GFJEKCOD14 2023-10-01 2024-09-30 ifrs-full:OtherReservesMember 254900Q164GFJEKCOD14 2023-10-01 2024-09-30 ifrs-full:RetainedEarningsMember 254900Q164GFJEKCOD14 2023-10-01 2024-09-30 ifrs-full:EquityAttributableToOwnersOfParentMember 254900Q164GFJEKCOD14 2023-10-01 2024-09-30 ifrs-full:NoncontrollingInterestsMember 254900Q164GFJEKCOD14 2024-09-30 ifrs-full:IssuedCapitalMember 254900Q164GFJEKCOD14 2024-09-30 ifrs-full:SharePremiumMember 254900Q164GFJEKCOD14 2024-09-30 ifrs-full:OtherReservesMember 254900Q164GFJEKCOD14 2024-09-30 ifrs-full:RetainedEarningsMember 254900Q164GFJEKCOD14 2024-09-30 ifrs-full:EquityAttributableToOwnersOfParentMember 254900Q164GFJEKCOD14 2024-09-30 ifrs-full:NoncontrollingInterestsMember
Company Registration Number: C 22796
MALTAPOST p.l.c.
Annual Financial Report and
Consolidated Financial Statements
30 September 2024
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
Pages
Chairman’s report 1 - 2
Chief Executive Officer’s review of operations 3 - 5
Directors’ report 6 - 22
Statement of compliance with the principles of good corporate governance 23 - 30
Remuneration report 31 - 34
Company information 35 - 36
Statements of financial position 37 - 38
Income statements 39
Statements of comprehensive income 40
Statements of changes in equity 41 - 44
Statements of cash flows 45
Notes to the financial statements 46 - 94
Five-year summary 95
Financial highlights in major currencies 96
Supplementary information 97 - 99
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
1
Chairman’s Report
The financial year was one of significant progress, though not without its challenges as we continued to
adapt to the rapidly changing postal and logistics landscape. The global economy, alongside evolving
technological advancements and shifting consumer behaviour, continues to impact the traditional postal
industry. MaltaPost overcame these complexities, through continued and selective strategic investments,
a commitment to innovation, and an unwavering focus on acquiring new contracts and delivering customer
service.
It is against this backdrop that the Board of Directors is pleased to report an encouraging set of results,
registering a pre-tax profit of €4.7 million (2023: €2.3 million). Earnings per share rose to €0.04 thus allowing
the Board to propose a final net dividend of €0.02 4 per nominal share, payable in cash.
The year under review has been one of continued transformation. Following months of discussions, an
Automated Tariff Revision Mechanism was approved by the Malta Communications Authority (MCA) and
implemented in the final weeks of this financial year. The Mechanism shall now cover tariff revisions for all
services falling under the Universal Service Obligation (USO) allowing better financial planning for the
Company. Our e-commerce business continues to drive our strategy for growth, where we continued t o
improve our last-mile parcel delivery activity, expanding outside the sector covered by the USO
.
The Regulator also approved the revision of some USO tariffs which positively impacted our financials,
allowing for modest profits to be registered in this segment. Despite the tariff adjustments implemented
during FY 2024, domestic postal service tariffs in Malta remain the lowest in Europe, as we continue to
bear the financial burden of subsidising the single-piece local postal service.
Ongoing investment in Information Technology is essential to keeping in step with both global postal
industry developments, the EU’s changing VAT and Customs regulations and the evolving demands of
customers. This includes enhancing our digital infrastructure, improving IT security, and streamlining
operations through select automation and innovation where it is cost effective to do so. These technological
upgrades ensure that MaltaPost remains competitive and efficient in an increasingly digital world.
Also, our investment in the Life and General Insurance business underscores our commitment to growing
our presence in the financial services sector. We are also exploring new investment opportunities within
the insurance market to generate additional revenue streams for your Company, further diversifying our
portfolio. We also continue to grow our Document Management volumes and portfolio of related services.
As part of our commitment to sustainability, we operate a fleet of over 150 electric last-mile delivery
vehicles, making us one of the largest operators of electric vehicles on the Maltese Islands. This milestone
highlights our dedication to reducing our carbon footprint and leads us towards becoming the green leader
in sustainable delivery practices.
We also acknowledge the importance of social responsibility. Through various initiatives, we seek to make
a meaningful impact by supporting the local community. We continue to prioritise the well-being of our 800
staff members, ensuring they have a secure, fulfilling workplace with opportunities for growth and
development and fair renumeration. Our commitment to staff training and skill development, particularly in
the digital and logistics fields, will help us navigate the future challenges of an ever-changing industry.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
2
Chairman’s Report - continued
As we move forward, we remain resolute in our commitment to building a solid foundation that meets our
Environmental, Social, and Governance (ESG) obligations. The continued focus on green technologies,
meeting customer satisfaction, and staff development within a multi-cultural environment forms the
cornerstone of our strategy. We must ensure that MaltaPost remains a trusted partner for its customers,
businesses, and the local community.
The global postal and logistics industry continues to evolve, and we are confident that our investments,
strategic decisions, and focus on meeting customer needs will enable the MaltaPost Group to thrive in this
changing though highly competitive environment.
Looking ahead, we are focused on driving sustainable growth, embracing digital transformation, and
continuing to provide quality services at reasonable tariffs that meet the evolving needs of the communities
and businesses we serve. As a Listed Company we remain fully committed to delivering efficient and high-
quality postal and logistics services nationwide, while providing a fair return to our approximately 1,8 00
shareholders.
To conclude, my fellow Directors join me in expressing gratitude to the management team and all Group
staff members for their dedication and good work. Thanks, are also due to fellow Directors for their valued
contribution throughout the year, as well as to the shareholders and customers for the steadfast support
and continued loyalty. A special mention is also due to Graham Fairclough who retired as Director and
Company Secretary during the year under review. Graham served in these posts for many years,
discharging his duties most efficiently. We wish him a long, serene and happy retirement.
The structure and outlook of MaltaPost are such that render it resilient, while remaining alert and agile to
respond to sensible business and investment opportunities. It is only through growth that this Group will
continue to prosper for the benefit of its stakeholders.
Joseph Said
Chairman
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
3
Chief Executive Officer’s Review of Operations
As we reflect on the Financial Year (FY) 2024, we look back at the achievements MaltaPost has made
across various fronts, positioning ourselves as a reliable, innovative, and sustainable leader in Malta’s
postal and logistics landscape. Despite facing numerous challenges, we have not only maintained our
commitment to providing quality service but have also enhanced our-last mile capabilities to meet the
evolving demands of our customers. This year has seen a marked increase in the non-USO parcel
business, driven by a surge in e-commerce and parcel deliveries. While traditional mail volumes continue
to experience a decline, our strategic pivot towards logistics has successfully offset these challenges. We
are particularly pleased with the profitability gains achieved through higher efficiencies, which have also
enabled us to reinvest in the business to better serve our customers.
Financial Performance
Group Profit Before Tax for the financial year ended (FYE) 2024 amounted to €4.68 million (2023: €2.32
million). This notable increase in profit reflects improved operational efficiencies, along with strategic
investments in our logistics and e-commerce services. The Group’s profit for this year also includes its
share of profit of €0.06 million (2023: share of loss €0.37 million) in IVALIFE Insurance Limited, in which
the Company holds a 25% investment.
Group Total Revenue rose by 1.3% to €40.14 million (2023: €39.61 million), following an increase in the
Company’s cross-border business activity outside the Universal Service Obligation (USO). While postal
revenue contributed 85.6% of total revenue (2023: 85.7%), the remaining 14.4% (2023: 14.3%) came from
non-postal services, including document management, bill collection, financial services, and general
insurance.
Group Total Expenses dropped by 3.2% to €35.89 million (2023: €37.09 million), driven by changes in our
business segments as well as cost control and improved operational efficiencies. However, Total Labour
Cost rose by 13.7% to €17.12 million (2023: €15.06 million), primarily due to the record Cost-Of-Living
Adjustment (COLA) increase of €12.81 per week, effective from January 1, 2024, and the increased
manpower required for last-mile delivery of increased volumes of cross-border parcels.
Service Innovation and Digital Transformation
Innovation continues to be at the core of our strategy as we evolve to meet customer expectations in a
rapidly changing landscape. This year, we made significant strides in digital transformation, enhancing the
Delivery Logistics Platform with real-time tracking, electronic proof of delivery, and automated updates to
customers on the status of their packages. Additionally, more services have been made available online,
allowing users to conveniently book services and effect relative payments. Furthermore, the network and
security infrastructure across all sites has been comprehensively modernized, leading to improved network
resilience and strengthened protection against potential threats.
These improvements not only streamline our operations but also provide a more transparent and reliable
service to our customers. These steps are essential in keeping MaltaPost at the forefront of the logistics
sector, meeting the growing demand for tech-driven solutions in parcel and postal services.
Operational Efficiency
In FY 2024, we continued optimizing our operational infrastructure. Significant upgrades are planned for
our sorting facilities to increase throughput and manage processing times better. Our last-mile delivery
network has also seen marked improvements, particularly through the implementation of a unified stream
for both letter mail and select parcel deliveries. This initiative has significantly boosted our delivery capacity,
enabling us to better serve the surge in e-commerce shipments.
Sustainability remains a priority in our operations, with a focus on reducing our environmental impact. To
this end, we have made substantial investments in transitioning our last-mile delivery fleet to electric
vehicles. This initiative supports our commitment to achieving a greener future, reducing our carbon
footprint, and contributing to cleaner air in the communities we serve.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
4
Chief Executive Officer’s Review of Operations - continued
Customer Insights and Market Trends
At MaltaPost, we place customer satisfaction at the forefront of our operations. This year, we implemented
several initiatives designed to improve our service delivery. Additionally, we have expanded our customer
feedback loops, allowing us to gather valuable insights and act quickly on suggestions for improvement.
We have also continued to adapt to market trends, particularly the increase in e-commerce, which has
reshaped our business model. In response, we strengthened partnerships with consolidators and logistics
providers, ensuring we remain agile and responsive to the growing demand for efficient and reliable parcel
delivery services. We remain proud of operating the largest retail network on the Islands, with 41 Post
Offices and 20 Sub-Post Offices, and offering a free Easipik parcel locker service at 28 distinct locations,
available 24/7 across Malta and Gozo.
Employee Engagement and Development
Our staff team is central to our service. With a workforce of 807, MaltaPost remains one of the largest
employers in Malta, with over 31% being non-Maltese speakers originating from 18 different countries. We
are committed to fostering a positive work environment, grounded in best practices and mutual respect for
all, irrespective of language or cultural differences.
In line with our growth, we have prioritised staff development, investing in training programmes, including
the Investing in Skills initiative funded by the European Structural and Investment Funds. Additionally, we
have focused on enhancing health and safety measures across our operations.
Challenges and Solutions
As always, the business landscape has presented its challenges, particularly with the ongoing evolution of
the regulatory environment, shifts in customer behaviour, significant reductions in traditional postal volumes
and challenges to recruit and retain. However, we remain fully committed to manage and address these
challenges.
Sustainability and CSR
Sustainability has remained a central theme in our operations. This year, we further strengthened our green
initiatives, including the purchase of 40 additional electric vehicles, expanding our fleet to over 150 vehicles.
These efforts further reinforce our resolve to reduce emissions and minimise our environmental impact.
Our ‘one-delivery’ initiative in Malta and Gozo has now expanded last-mile delivery with zero-emission
vehicles to 51 localities. We were honoured to receive the Award for Sustainable Transport at the Malta
National Transport Awards, which acknowledges our ‘One Delivery Project’ for its eco-innovation and
efficiency. Additionally, we advanced our renewable energy efforts by optimising our existing photovoltaic
system, further supporting our commitment to sustainable energy.
Our corporate social responsibility efforts also remained strong this year, with continued support for local
charities such as the Community Chest Fund, Dar tal-Providenza, Malta Hospice Movement, and Inspire.
We also reaffirmed our dedication to preserving Malta’s postal heritage through our ongoing support of the
Malta Postal Museum.
Looking Ahead
In conclusion, FY 2024 has been a year of growth and transformation for MaltaPost. We have navigated
challenges, embraced new opportunities, and continued to position ourselves as a leader in Malta’s postal
and logistics sector. Looking forward, we remain optimistic about the future. Our primary focus for the
coming year will be on enhancing our last-mile parcel delivery capabilities, further expanding our logistics
hub network, and exploring new opportunities to grow our footprint. We will also continue to refine our
insurance strategy. We are committed to staying at the forefront of innovation, ensuring
that we continue
to meet the needs of our customers while delivering on our sustainability goals.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
5
Chief Executive Officer’s Review of Operations - continued
The Group also remains determined to provide a satisfactory return to its shareholders, a quality service to
its customers and fair and reasonable working conditions to all its staff. We are also confident of the
Group’s financial prospects, going forward.
I wish to express my thanks to the Chairman, the Executive Director and the members of the Board of
Directors for their support and strategic guidance; our management team and staff for their commitment
and dedication; and our shareholders and customers for their continued trust.
Joseph Gafa'
Chief Executive Officer
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
6
Directors’ report
The Directors present their annual financial report and the consolidated audited financial statements of
MaltaPost p.l.c. and its subsidiaries for the year ended 30 September 2024.
PRINCIPAL ACTIVITIES
The MaltaPost Group (the Group) comprises MaltaPost p.l.c. (the Company/MaltaPost) and its subsidiary
companies, Tanseana Limited (Tanseana), CIABRO Limited (CIABRO), PostaInsure Agency Limited
(PostaInsure), and its associate company IVALIFE Insurance Limited (IVALIFE).
MaltaPost was registered in 1998 and listed on the Malta Stock Exchange (MSE) in 2008. The Company
is a public limited liability company under the provisions of the Companies Act (Cap. 386).
As the designated Universal Postal Service Provider in Malta, MaltaPost provides a series of universal
postal services under the Postal Services Act (Chapter 254 of the Laws of Malta) under the auspices of the
Universal Postal Union on behalf of the Government of Malta. MaltaPost is regulated by the Malta
Communications Authority (MCA). The Company operates a network of 6 Postal Hubs, 41 Post Offices and
20 Sub-Post Offices around Malta and Gozo providing an extensive range of postal and financial services.
Tanseana, a company wholly owned by MaltaPost, was registered and commenced operations in 2016.
The company was established to provide document management services and to carry out such services
which include, but are not restricted to, scanning, printing, shredding, storage and retrieval of digital and/
or physical documents.
CIABRO, a company wholly owned by MaltaPost, provides warehousing services.
PostaInsure, a company 49% owned by MaltaPost was granted enrolment in the agents list to act as an
insurance agent under Article 13 of the Insurance Intermediaries Act (CAP 487).
IVALIFE, a company 25% owned by MaltaPost was licensed on 1 February 2021 to provide Class I and
Class III long term business of insurance.
REVIEW OF PERFORMANCE
The past year has been one of continued transition, but the Group has made good progress. As the postal
and logistics landscape evolves rapidly both in Malta and globally, driven by economic shifts, technological
advancements, and changing consumer behaviour, we have adapted by making strategic investments,
focusing on our last mile delivery network in the logistics field, prioritising customer service whilst we
continued to grow our insurance and document management business. As a result, we have not only
navigated these through these challenges but emerged stronger.
The Board of Directors is therefore pleased to report an increased pre-tax profit of €4.68 million (2023:
€2.32 million), with earnings per nominal share of €0.125 rising to €0.037. Increased consumer purchases
from overseas and new contracts have delivered respectable volume and revenue growth in key segments.
Group Total Revenue rose by 1% to €40.14 million (2023: €39.61 million) mainly attributable to an increase
in the Company’s inbound business activity as well as tariff revisions. Postal and Logistics revenue
represented 86% of total revenue, while the remaining revenue balance stemmed from the provision of
non-postal/non-logistics services such as document management, bill collection, financial and insurance
services.
Group Total Expenses decreased by 3% to €35.89 million (2023: €37.09 million). Although we managed to
contain costs and improve our efficiency in our processing and last mile delivery centres through the
adoption of a more flexible operating model, significant cost increases attributable to a higher cost of labour
were experienced.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
7
Directors’ report - continued
The Board is particularly mindful of MaltaPost’s unique heritage and responsibilities as the designated Universal
Service Provider in Malta as a key component of National Infrastructure that falls within the essential service
category. Therefore, Your Board welcomed with pleasure the conclusion of the extensive discussions that
eventually led to the introduction of the Automated Tariff Revision Mechanism. A mechanism that was approved
by the Malta Communications Authority (MCA) and implemented in the final weeks of the financial year. This
much desired development allows the Company to plan ahead as a consequence of the greater financial visibility
this mechanism provides moving forward.
Additionally, selective tariff revisions approved by the Regulator during the past year and before the introduction
of the Tariff Adjustment Mechanism positively impacted the financials of the USO service. As of 30 September
2024, the segment showed reasonable profits. It is also pertinent to point out that despite the tariff adjustments,
domestic postal service tariffs in Malta remain the lowest in Europe.
Sustainability is a key priority for the Board. With over 150 electric last-mile delivery vehicles, we are one of the
largest electric vehicle operators in Malta, significantly reducing our carbon footprint and reinforcing our position
as a leader in green delivery practices. We also prioritize social responsibility, with initiatives to support the local
communities we serve whilst retaining a focus on the well-being of our c.800 employees. Looking ahead, we
remain committed to our Environmental, Social, and Governance (ESG) obligations.
In fact our strategy going forward centres on green technologies, customer satisfaction, and employee
development, ensuring that MaltaPost remains a trusted partner in a competitive and evolving industry.
Remuneration Policy
Details of total employee expense for the FY 2024 and the average number of persons employed by the Company
(including part-timers), during the year is included in Note 22 to the financial statements.
Information on the Company’s Remuneration Policy and practices is disclosed in the Remuneration Report within
the Annual Financial Report on page 31.
NON-FINANCIAL INFORMATION
1. Introduction
In compliance with Maltese Companies Act, this report includes a non-financial statement detailing the Group’s
development, performance, position and impact of its business activities. This incorporates environmental, social
and employee matters, general business conduct, presented through specific disclosures on these aspects.
MaltaPost is subject to the Non-Financial Reporting Directive, ‘NFRD’ and hence is also subject to disclosure
requirements stemming from the Delegated Act supplementing Article 8 of the Taxonomy Regulation. However,
given that MaltaPost is consolidated at the level of its parent entity, the Company is availing itself of the exemption
from such disclosure requirements given that Lombard Bank Malta p.l.c. complies with the requirements of the
Disclosure Delegated Act.
Nonetheless, the Group shall remain committed towards aligning its business activities with the highest possible
sustainability standards, whilst remaining fully cognisant of its key role as a key contributor to the country’s social
and economic fabric. As one of Malta’s largest employers, the operator of a substantial fleet of last-mile delivery
vehicles and a wide-reaching Post Office Network, MaltaPost continues its endeavour to integrate Environmental,
Social and Governance (ESG) principles into every aspect of its operations.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
8
Directors’ report - continued
In preparation for the Corporate Sustainability Reporting Directive (CSRD) requirements, the Group has
embarked on a comprehensive journey to strengthen its sustainability reporting framework with a view of
aligning itself with regulatory expectations. The journey, which has commenced gradually but steadily over
the past two financial years through enhanced data collection procedures, has now reached the phase
were a detailed impact assessment for each relevant ESRS topic is being carried out. By identifying impacts
from both an inside-out and outside-in perspective, the Company is ensuring that its future reporting shall
reflect better the impacts on the environment, the workforce and other stakeholders. This approach shall
assist the Company in understanding which focus areas require improvement.
Furthermore, and also forming an integral part of the reporting journey, MaltaPost is in the process of
performing a thorough value chain analysis to map its upstream, own and downstream business activities.
The process aims at identifying the environmental and social impacts across the same chain, including
those associated with our key suppliers and end users. These assessments are instrumental in defining
actions and targets that address important sustainability risks and opportunities.
MaltaPost, as a separately listed company on the Malta Stock Exchange, will independently present its
sustainability statement for its financial year ending on 30 September 2025.
During the past financial year, MaltaPost achieved other significant milestones in its sustainability strategy,
most notably being the further enlargement and re-design of its last-mile delivery fleet by adding a further
forty (40) electric vehicles. Alongside this, the Company has also registered progress in increasing the use
of renewable energy, further supporting the Company’s transition towards consuming more energy derived
from sustainable energy sources. Improvements in recycling waste packaging have also been
implemented, supported by improved data collection processes that enables better monitoring of the
Company’s waste management performance.
MaltaPost’s engagement with the International Post Cooperation’s (IPC) Sustainability Measurement and
Management System (SMMS) programme has yielded encouraging results, with improved performance
scores for 2023 annual results. These improvements validate the Company’s continuous efforts to commit
to achieving the programme’s collective targets.
The Company’s commitment to sustainability was further acknowledged with the Transport Malta Award
for Sustainable Logistics in December last year. The award recognised MaltaPost’s significant strides in
improving delivery efficiency whilst also integrating four-wheeled electric cargo vehicles as its delivery
vehicle of choice in delivering both traditional mail and parcels.
MaltaPost is actively embedding sustainability into its long-term strategic vision. This not only involves
addressing climate-related challenges, but also driving innovation and operational efficiency. Key initiatives
which the Company plans to focus on include further investment in electric last-mile delivery vehicles,
renewable energy and energy efficient resources. By integrating ESG considerations into the decision-
making process, MaltaPost aims to foster a culture of environmental care, social responsibility, and robust
governance.
MaltaPost’s efforts not only supports the transition to a low-carbon economy but also affirms the Company’s
role as a responsible service provider. Through strategic planning, meaningful stakeholder engagement
and a clearly defined vision, MaltaPost shall remain steadfast in its mission to drive sustainable progress
for its business, workforce and the community it serves.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
9
Directors’ report - continued
1. The Environmental Pillar
General
MaltaPost’s journey towards sustainable business practices has been ongoing for over a decade, built on
a foundation where environmental awareness and action have been integral to its strategy of redesigning
its last-mile delivery to be more efficient and environmental friendly. Acknowledging its responsibility to
address environmental challenges, MaltaPost remains committed to adopting sustainable practices that
align with the European Green Deal, the Paris Agreement and any other possible future targets set by
Government.
Over the years, the Company has taken decisive steps to reduce its greenhouse gas (GHG) emissions and
minimise the carbon footprint from across its postal business activities. Key milestones in MaltaPost’s
approach towards climate change mitigation include the installation of a 60.48 kWp photovoltaic system in
2012, marking the Company’s first significant investment in renewable energy, and more recently the
transition towards the electrification of the last-mile delivery fleet. These initiatives have not only enhanced
MaltaPost’s environmental credentials but have also contributed to mitigating climate risks, managing
operational costs, and optimising postal delivery routes.
In another significant step towards enhancing its environmental credentials, MaltaPost became an active
member of the International Post Corporation’s (IPC) Sustainability Measurement and Management
System (SMMS) in 2023. As part of its commitment, during this financial year, the Company submitted
detailed data and completed comprehensive questionnaires focusing on key sustainability metrics aligned
with the programme’s seven core focus areas, which are:
• Climate Change
• Resource Efficiency
• Air Quality
• Circular Economy
• Health and Safety
• Learning and Development
• Sustainable Procurement
The IPC’s SMMS programme provides a comprehensive, third-party audited framework that supports
member postal operators in monitoring their sustainability targets covering areas such as:
• Reduction of CO ₂ emissions
• Fleet electrification
• Renewable energy use
• Waste management
• Improvement of air quality
• Resource efficiency
• Health and safety standards
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
10
Directors’ report - continued
In its first year of participating in the programme, MaltaPost achieved commendable results in several key
areas, including reducing its mail and parcel carbon footprint, increased electric vehicle adoption and
improved waste recycling performance. The Company reported a notable increase in the integration of
alternative fuel vehicles, with electric vehicles comprising 49.6% of the fleet during calendar year 2023, up
from 43.3% the previous year. Waste recycling rates also improved significantly, with 94.7% of waste being
recycled or reused. However, the results achieved also highlighted opportunities for improvement,
particularly in the proportion of renewable energy used within MaltaPost’s operations.
These results reflect MaltaPost’s commitment to continuous improvement and the adoption of best
practices. By leveraging insights from its performance data and the IPC’s tailored assessments and
scorecards, the Company is actively enhancing its sustainability initiatives, reinforcing its position as a
responsible service provider.
MaltaPost’s Green Transformation of its Last Mile Delivery – The ‘One Delivery’ Project
MaltaPost’s ‘One Delivery’ project represents a major milestone in the Company’s sustainability strategy,
that of transforming its last-mile delivery activity into one that is green and efficient. The project consolidates
letter mail and parcel deliveries into a unified delivery stream using Micro Logistics Electric Vehicles (MLEV)
which has a sufficient carrying capacity to deliver both mail and parcels at one go.
As Malta’s foremost postal service provider, MaltaPost continues to innovate, merging operational
efficiency with sustainably. The introduction of electric vehicles, optimised routes and strategically placed
parcel lockers has streamlined operations, helped in reducing traffic and lowered emissions across the
Maltese Islands.
MaltaPost has by the end of this Financial Year implemented the project across 51 towns and villages
across Malta and Gozo, eliminating the need for 90 internal combustion engine vehicles on the road thus
reducing over 200 tonnes of CO ₂ emissions on a yearly basis.
This initiative aligns with MaltaPost’s long-term environmental goals, including a further reduction of
emissions as part of its broader commitment to mitigating climate risks and improving the sustainability of
its operations. The integration of strategically placed parcel lockers and electric vehicles enhances
efficiency while reducing delivery emissions, setting a benchmark for green logistics in Malta.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
11
Directors’ report - continued
The table below provides an overview of the composition of MaltaPost’s fleet for Financial Year 2023 and
this financial year, detailing the distribution between non-alternative fuel vehicles and alternative fuel
vehicles (AFVs) as well as the percentage of AFVs in the fleet:
Vehicle Type
2024
2023
(in numbers)
(in numbers)
Non-alternative Fuel Vehicles
138
125
Alternative Fuel Vehicles
164
131
Percentage of AFVs (%)
54
51
Energy efficiency, resource optimisation and circular economy
MaltaPost remains committed to improving its energy and resource efficiency performance by prioritising
clean and renewable energy solutions. Building on its past achievements, the Company plans to invest
further in renewable energy, including the installation of a new photovoltaic (PV) system at its head office,
aimed at significantly reducing Scope 2 emissions and supporting long-term energy sustainability. This
complements ongoing efforts to replace electrical equipment with more energy-efficient systems and to
minimize water usage, with plans to explore economically viable methods for rainwater harvesting.
To foster a culture of energy and resource awareness, MaltaPost has issued comprehensive energy
efficiency guidelines to its employees, through Company memos and monthly eNewsletters. These
guidelines focus on practical measures for reducing electricity consumption, optimizing the use of cooling
and heating systems, and promoting efficiency in the use of vehicles.
Aligned with its environmental goals, MaltaPost has continued to make significant strides in waste
management. During this past financial year, the Company made substantial efforts to record waste data,
laying the groundwork for future actionable insights and improvements.
Additionally, a waste management directive, based on the 3Rs principle (Reduce, Reuse, Recycle), was
implemented to ensure waste separation at source, reduce mixed waste, and set measurable targets.
Additionally, MaltaPost invested in new methods for the disposal of cardboard generated by increased
inflows from its growing parcel business, ensuring that this material is directed for recycling.
While MaltaPost's business model is assessed to have minimal impact on natural resources, the Company
remains committed to the principles of a circular economy by maximizing the value extracted from its
products.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
12
Directors’ report - continued
The table below provides a comprehensive summary of MaltaPost’s key environmental data for this
financial year compared to last year’s. The table highlights the Company’s consumption of energy
resources, emissions (Scope 1 and 2) and waste:
Type Consumption/Emissions 2024 2023
Energy
Non-Renewable Electricity Consumption (kWh) 1,132,858 1,165,058
Renewable Electricity Generated (kWh) 81,542 43,072
Total Electricity Consumed (kWh) 1,214,400 1,208,130
Water Water Consumption (m³) 4,396 5,393
Emissions
Scope 1 (Tonnes CO₂)
494 418
Scope 2 (Tonnes CO₂) *
449 440
*For Scope 2 emissions, Enemalta’s CO ₂ emission factor of 396g/kWh was used. Increase registered in view of an
increased emissions factor between 2022 and 2023
Methodology used for collecting data
MaltaPost adopted a structured approach to collect and begin reporting its environmental data, ensuring
accuracy, reliability and alignment with future sustainability reporting requirements.
• Energy: Non-renewable energy consumption data was obtained through actual meter readings
using an in-house online system, ensuring precise and reliable metrics. Renewable energy
generation is tracked using a real-time online platform, which provides daily electricity generation
reports with high accuracy.
• Water: Water consumption data was obtained through actual meter readings, tracked and managed
using the same in-house online system utilized for electricity consumption.
• Emissions Scope 1: Calculated from operational fuel consumption records, including both unleaded
fuel and diesel used for company-owned vehicles, as well as diesel for the generator.
• Emissions Scope 2: Derived from total electricity consumption, calculated using Enemalta’s CO ₂
emission factor of 396g/kWh for non-renewable energy consumed.
(Source: https://www.enemalta.com.mt/2016/02/25/fuel_mix_for_energy_distribution/
)
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
13
Directors’ report - continued
2. The Social Pillar
Our workforce is our biggest asset
In an ever-evolving postal landscape, MaltaPost continues to face both significant challenges and promising
opportunities. Operating within this dynamic environment, the Group recognises that its workforce is the
most important pillar for it to achieve success. By placing people at the heart of every decision, the
Company will be in a better position to adapt, innovate, and ensure a sustainable future for all.
MaltaPost remains committed to fostering a culture that values common interest, diversity, inclusivity and
both social and mental well-being. The Company’s investment in human capital is not only essential for
meeting the challenging operational demands in an efficient manner but also central in driving long-term
growth and resilience.
To achieve these goals, MaltaPost focuses its workforce improvement strategy on the following focus
areas:
• Equal Opportunity & Inclusion: Ensuring a workplace free from any form of discrimination while
embracing diversity as a strength fosters mutual respect and understanding.
• A Healthier & Safer Workplace: Maintaining the highest standards of health and safety safeguards
the well-being of every employee through proactive initiatives and rigorous compliance.
• Continuous Learning & Development: Significant investment in education and training equips
employees with the skills and knowledge required to meet industry demands and future challenges.
• Community Engagement & Heritage Preservation: Extended philanthropic efforts and the Postal
Museum Foundation shall continue to preserve Malta’s rich postal heritage while building
connections between tradition and future aspirations.
Promoting Diversity and Professionalism in Appointments
MaltaPost recognises that a professional approach to appointments is essential for attracting individuals
with the qualifications, skills, and attributes necessary to achieve its objectives. Ensuring that appointments
at all levels are based on knowledge, expertise, and merit aligns with Maltese legislation and industry best
practices.
Appointments to the Board are guided by the principle of diversity, with a focus on skills, backgrounds, and
expertise that create value for shareholders. This approach ensures that business objectives are balanced
against general and specific risks within the Board’s risk appetite.
Acknowledging the benefits of diverse perspectives, MaltaPost remains committed to promoting diversity
for any vacant board positions that arise. By leveraging varied viewpoints and expertise, the Board fosters
a well-rounded understanding of global and regional affairs, the postal business environment, and the short-
and long-term risks and opportunities the Company faces.
As a subsidiary of Lombard Bank Malta p.l.c., MaltaPost benefits from a diversity of views and expertise
that reflects its specialised business model, size, and operational context. The commitment to enhancing
Board diversity remains central to ensuring ef fective governance and sustainable growth.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
14
Directors’ report - continued
Fostering Equal Opportunities and Enhancing Working Conditions
MaltaPost remains steadfast in its commitment to fostering equal opportunities and improving working
conditions across all levels of the organisation. By promoting non-discrimination, inclusivity, and well-being,
the Company aims to attract and retain talent while empowering employees to reach their maximum
potential.
During the financial year, discussions began on a new collective agreement covering the years 2025 to
2030. Discussions are progressing well, and the agreement is on track to be signed during the upcoming
financial year. This development underlines MaltaPost’s dedication to continually improving working
conditions and ensuring a fair and equitable work environment.
The Company maintains a diverse and inclusive workforce, with employees from other countries making
up 31% of the total Company workforce. This diversity enriches the workplace and aligns with MaltaPost’s
commitment to providing equal opportunities across different cultural and national backgrounds.
MaltaPost also continues to focus on inclusivity for individuals with different abilities. Currently, such
individuals represent 2.3% of MaltaPost’s workforce, exceeding the national legal requirement of 2% set
under the Persons with Disability Act. Across the Group, this figure rises to 9.7%, showcasing a strong
commitment to inclusivity and surpassing both national averages and legal benchmarks.
Policies safeguarding against harassment, bullying, and discrimination remain firmly in place, reinforcing
the Company’s commitment to a safe and inclusive workplace. Notably, during the financial year, there
were no reported incidents of discrimination, harassment, or related violations. MaltaPost also retains its
Equality Certification Mark, a testament to its dedication to upholding non-discriminatory practices.
MaltaPost’s efforts in promoting equal opportunities, workplace diversity, and enhancing working conditions
demonstrate its steadfast commitment to fostering a workplace that respects and values every individual
irrespective gender, nationality, ability and background.
Prioritising Health, Safety and Wellbeing
The health, safety, and wellbeing of employees remain a top priority for MaltaPost, reflecting its high
materiality in the Company’s operations. Safety hazards inherent to the postal business, particularly for
postal operators and delivery personnel, require careful oversight to mitigate associated risks and ensure
a secure working environment.
MaltaPost maintains a proactive approach by implementing continuous assessments, targeted training, and
guidance on topics such as mental wellbeing. Safety training is a fundamental part of the Company’s
orientation sessions for new employees, ensuring that every individual begins their role equipped with
essential knowledge on workplace safety standards.
Tailor-made safety training sessions are also provided for MaltaPost’s drivers and handlers, addressing the
specific risks and responsibilities associated with vehicle operation and manual handling tasks. These
sessions reinforce safe driving practices, the effective use of modern vehicles and proper ways to operate
lifting machinery and use proper manual lifting techniques, further contributing to a safer work environment.
The Company’s overarching health and safety policy and tied procedures have been instrumental in
reducing workplace risks. Notably, the strategic replacement of motorcycles with four-wheeled electric
vehicles has contributed to a significant reduction in lost time incident rates. For the financial year,
MaltaPost records a lost time incident rate of 5.73
1
and a total of 40 lost time injuries.
1
The Lost Time Incident Rate (LTIR) is calculated as the number of work-related incidents resulting in lost time per two million hours
worked. This multiplier reflects standard practice within MaltaPost to ensure comparability within the postal and logistics sector.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
15
Directors’ report - continued
In addition to satisfactory incident rates, 100% of employees forming part of the Group are covered under
MaltaPost’s comprehensive health and safety policy. The policy is supported by established channels for
reporting and addressing health and safety issues, ensuring that concerns are promptly and effectively
resolved.
MaltaPost’s lost time incident rate of 5.73 compares favourably with benchmarks for the logistics and postal
sectors. These industries are typically associated with elevated safety risks due to the nature of operations,
including vehicle use, manual handling, and outdoor work. MaltaPost’s results highlight the effectiveness
of its proactive safety measures and demonstrate a strong commitment to prioritising a safe and secure
workplace.
Investing in the Workforce through Learning and Development
The investment in human capital continues to be a fundamental focus area in ensuring a sustainable
workforce equipped with the necessary tools and knowledge to perform tasks effectively. MaltaPost
remains steadfast in its commitment to developing the skills of its workforce through both in-house and
external training programs.
In view of the nature of MaltaPost’s line of business, skill development begins early for employees,
particularly in operational units. This initial training is reinforced through internal and on-the-job programs,
progressively advancing in alignment with professional development and career growth. Career
development is further supported through structured performance management processes, ensuring that
all Company employees receive annual performance reviews. These reviews play a critical role in
identifying development opportunities, setting goals, and fostering individual growth within the organisation.
MaltaPost continues to face challenges in recruiting postal delivery personnel locally, leading to an
increased reliance on hiring employees from overseas. While this approach addresses workforce needs,
additional focus is placed on the on-the-job training phase to ensure these recruits gain confidence in their
postal beats. This hands-on training equips new personnel with the practical knowledge and skills required
to integrate effectively and perform their duties to high standards.
For the financial year 2024, the Company recorded a total of 3,734 training hours, with training distributed
across both executive and non-executive roles. While total training hours saw a slight decrease compared
to the previous year, MaltaPost remains committed to equipping its workforce with the skills and knowledge
needed to meet operational demands.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
16
Directors’ report - continued
Own Workforce – Group and Company Data for Financial Year 2024
The table below provides an overview of key social metrics for the financial year 2024.
Area Own Workforce Data Group
2024
Company
2024
Employees Number of employees (Headcount) 807 740
Turnover Percentage of employee turnover 27% 29%
Health & Safety
Number of lost time injuries 42 40
Lost time incident rate
2
5.58 5.73
Training &
Development
Total number of hours of training 3,879 3,734
Consumers and End-Users – MaltaPost’s Commitment to Service
At MaltaPost, consumers and end-users are central to every business decision. The Company remains
steadfast in its commitment to delivering a reliable yet affordable service that caters to the diverse needs
of its nationwide client base. Providing value and fostering trust are fundamental to MaltaPost’s mission,
ensuring that both consumers and end-users experience exceptional service.
To better understand and address customer needs, MaltaPost continues to invest in technology to measure
service satisfaction and identify areas for improvement. Recognising the importance of adapting to evolving
expectations, the Company is actively exploring sustainable delivery options and digital solutions to simplify
customer interactions and enhance accessibility.
Aligned with its vision for continuous improvement, MaltaPost remains focused on achieving and
surpassing Quality of Service (QoS) benchmarks set by national and international regulatory bodies.
Handling thousands of deliveries daily, meeting these QoS targets is no small feat and highlights the
Company’s dedication to providing a timely and reliable postal and delivery service.
MaltaPost remains committed to ensuring that the vast majority of deliveries and services are completed
promptly and efficiently. When customer-related challenges arise, the Company takes a proactive approach
to address and resolve them, reflecting its unwavering dedication to meeting customer needs and
expectations.
Through continuous innovation and a focus on excellence, MaltaPost reaffirms its pledge to serve both
consumers and end-users with the highest standards of quality and care. By adopting advanced
technologies, refining its service delivery, and prioritising customer satisfaction, MaltaPost continues to
focus on remaining a partner of choice.
2
The Lost Time Incident Rate (LTIR) measures the frequency of workplace incidents that result in employees missing work due to
injury. It is calculated by taking the total number of such incidents, dividing it by the total hours worked across the organization, and
then multiplying the result by 2,000,000. This standard multiplier allows for consistent comparison of safety performance across
organizations of different sizes.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
17
Directors’ report - continued
3. The Governance Pillar
Business Conduct – Upholding Ethical Standards and Integrity
MaltaPost is committed to maintaining ethical conduct in all interactions with its stakeholders. Integrity, a
keystone of the Company’s operations, is reflected in its zero-tolerance approach towards bribery,
corruption, and unethical behaviour, and its strict adherence to applicable laws.
The Company defines the responsibilities of its officials clearly, providing guidance on identifying and
addressing unethical behaviour. MaltaPost prohibits all forms of bribery and corruption and prioritises
openness, transparency, and strict adherence to business processes in dealings with public officials, private
individuals, and businesses, ensuring compliance and safeguarding its reputation.
Breaches of ethical standards, including bribery or corruption, could result in severe penalties, reputational
damage, and erosion of stakeholder trust. To mitigate these risks, MaltaPost has implemented a
compliance framework designed to enhance employee awareness and promote disciplined and
standardised practices.
The Company’s governance framework is further strengthened by its Whistleblowing Policy, an essential
tool to mitigate business malpractices and possible unethical behaviour. This policy provides a structured
and secure mechanism for reporting any suspected misconduct, including fraud, corruption, financial
irregularities, or breaches of other Company policies. It outlines clear procedures for reporting concerns,
ensuring independence, confidentiality, and impartial handling of all disclosures.
MaltaPost guarantees the confidentiality of all whistleblowers. All concerns are treated with the utmost
discretion to protect the identity of the reporting individual, minimising any risk of exposure. A core principle
of the Company’s whistleblowing policy is safeguarding whistleblowers from any form of retaliation.
MaltaPost strictly prohibits harassment, victimization, or discrimination against individuals who report
concerns in good faith.
To further uphold its commitment to ethical practices, MaltaPost also emphasises the importance of
sustainability in its operations, including procurement practices. The Company has embarked on an
assessment process to effectively measure its approach to managing relationships with suppliers, ensuring
they align with its governance and sustainability objectives.
MaltaPost’s governance structure also demonstrates how sustainability principles are integrated at all
levels of decision-making and enables the measurement of performance to meet commitments. The
Company aims to continue embedding sustainability reporting requirements as necessary, ensuring its
governance framework evolves to address emerging challenges and meet stakeholder expectations.
Principal Risks & Uncertainties
Providing a profitable USO service / accelerated letter mail e-substitution and digitisation
MaltaPost is the designated Universal Service Obligation (USO) provider in Malta, responsible for delivering
various postal services to the public. These include the clearance and delivery of letters and packages six
days a week, both domestically and internationally, even when such services of general economic interest
are not financially viable. The introduction of the Automatic Price Revision Mechanism by the regulator
towards the end of this financial year had a limited impact on results. However, it is expected to enhance
the Company’s performance in the next financial year by providing adequate compensation for USO
services at a commercially reasonable profit.
Despite this development, MaltaPost anticipates a continued decline in mail volumes due to e-substitution
and the digitisation of services and correspondence. The Company remains committed to implementing
proactive measures to address these challenges and ensure the sustainability of its postal services in an
evolving landscape.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
18
Directors’ report - continued
Intensifying Competition
The eCommerce market, particularly in last-mile delivery for local and inbound parcels, continues to face
intense competition. This competitive environment exerts pressure on tariffs and presents challenges,
particularly from competitors unburdened by regulatory and USO costs. Additionally, such competitors often
demonstrate greater agility in responding to changing customer preferences.
Despite these pressures, MaltaPost remains steadfast in meeting the Quality of Service (QoS) targets
mandated by the National Regulatory Authority under the Postal Service Act (Cap. 254 of the Laws of
Malta). Meanwhile, MaltaPost’s postal tariffs remain the most affordable in the European Union.
Challenges in Staff Recruitment and Retention
Maintaining a skilled and well-trained workforce remains a priority for MaltaPost. However, the Company
continues to face challenges in recruiting and retaining operational staff. Labour shortages, wage inflation,
and increased operational demands, particularly for maintaining QoS standards, have exacerbated these
difficulties. The loss of experienced personnel further affects operational efficiency and reliability.
To mitigate these risks, MaltaPost has implemented measures such as offering enhanced salary packages,
flexible working conditions, and initiatives to support employee well-being. Despite these efforts, the
dynamic labour market and operational demands pose ongoing challenges.
Vulnerability to Cyber Security Threats
With an increasing reliance on digital infrastructure, MaltaPost faces heightened risks of cyberattacks,
including ransomware, data breaches, and system disruptions. These threats pose significant risks to
business continuity, financial performance, and reputation.
To address these challenges, MaltaPost has implemented a comprehensive cybersecurity framework that
includes enhanced service agreements with IT providers, robust disaster recovery protocols, and regular
assessments of potential vulnerabilities. The Company is also planning to roll out targeted staff training
initiatives aimed at increasing cybersecurity awareness and reducing risks associated with human error.
Investments in advanced threat detection and monitoring systems are being prioritized to further strengthen
the company’s defences against increasingly sophisticated cyber threats.
While these measures lay a strong foundation for mitigating cybersecurity risks, the rapidly evolving threat
landscape requires ongoing vigilance and adaptation. MaltaPost remains committed to continuously
improving its digital security infrastructure to ensure the resilience of its operations and protect the trust of
its customers and stakeholders.
Addressing Operational Infrastructure Challenges
Operational infrastructure is critical to supporting MaltaPost’s business growth and maintaining service
reliability, particularly for last-mile delivery operations. The increasing volume of inbound parcels
necessitates continued investment in delivery fleets and technological upgrades. As part of its mitigation
measures, MaltaPost has carried out space optimisation within the Central Mail Room to enhance efficiency
and ensure timely processing.
Delays in infrastructure upgrades could hinder operational adaptability and service reliability. Further
investments in automation, sorting processes, and energy efficiency are essential to ensuring resilience
and aligning with sustainability objectives. Despite progress, additional measures are necessary to meet
evolving demands and maintain MaltaPost’s position as a reliable service provider.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
19
Directors’ report - continued
Regulatory and Legislative Challenges
The Group continues to endeavour in ensuring compliance with the increasing requirements set by laws
and regulations. Legal and regulatory requirements are set to increase in view of the continuous
introduction of EU regulations and directives such as the Corporate Sustainability Reporting Directive
(CSRD) requiring reporting on the impact of corporate activities on the environment and society and, the
NIS2 Directive designed to enhance cybersecurity across the EU by establishing a high common level of
security for network and information systems.
Despite these challenges, MaltaPost continues to play a pivotal role in the Maltese economy and remains
integral to the daily lives of the community, demonstrating resilience and adherence to high standards of
compliance and service.
Financial Risk Management
MaltaPost’s activities expose it to various financial risks, including market risk (foreign exchange, cash flow,
and interest rate risks), credit risk, and liquidity risk. Through its comprehensive risk management
framework, the Company seeks to minimise potential adverse effects on financial performance while
adhering to its defined risk appetite.
The Audit and Risk Committee is responsible for overseeing MaltaPost’s risk management framework,
ensuring alignment with the Company’s principles and policies. A detailed review of financial risk
management practices is provided in Note 2 of the financial statements.
RESULTS AND DIVIDENDS
The income statements are set out on page 39. The Directors recommend the payment of a final net
dividend of €0.024 per share amounting to €1,928,000 (2023: €1,550,000).
CAPITAL
The Authorised Share Capital of the Company was fourteen million euro (€14,000,000) made up of one
hundred and twelve million (112,000,000) ordinary shares of a nominal value of €0.125 each. The Issued
and Fully Paid-Up Share Capital was ten million, forty-two thousand and five hundred forty-nine,
(€10,042,549) made up of eighty million, three hundred and forty thousand, and three hundred and ninety-
six (80,340,396) ordinary shares of a nominal value of €0.125 each, all of one class.
BOARD OF DIRECTORS, OFFICERS AND SENIOR MANAGEMENT
The Directors of the Company who held office during the year were:
Joseph Said (Chairman)
David P. Attard
Anthony Bezzina (appointed on 14 August 2024)
James Dunbar Cousin
Eugenio Farrugia
Paul Muscat
Aurelio Theuma
Graham A. Fairclough (resigned on 14 August 2024)
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
20
Directors’ report - continued
In accordance with the Company’s Articles of Association, a member of the Company holding, or number
of members, who between them hold, such number of equity securities having voting rights as may be
sufficient to constitute one or more qualifying holdings, shall be entitled to appoint one (1) director for every
qualifying holding held. Other members shall be entitled to participate and vote in an election of directors
to take place once in every year at a general meeting of the Company. Unless appointed for a longer or
shorter period, or unless they resign or are removed, directors, unless otherwise specified in the letter of
their appointment, hold office for a period of one year. Notwithstanding the period for which a director has
been appointed, on the lapse of such period a director will be eligible for re-appointment. An election of
directors shall take place every year, if there are vacancies on the board which are not filled by the
appointment of directors by the member holding, or number of members who between them hold, such
number of equity securities having voting rights as may be sufficient to constitute one or more qualifying
holdings. The composition of Officers and Senior Management is further disclosed under section 'Company
Information'. Further information is also given in the 'Statement of Compliance with the Principles of Good
Corporate Governance'.
DIRECTORS’ STATEMENT OF RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
The Directors are required by the Maltese Companies Act (Cap. 386) to prepare financial statements which
give a true and fair view of the state of affairs of the Company as at the end of each reporting period and of
the profit or loss for that period.
In preparing the financial statements, the Directors are responsible for:
• ensuring that the financial statements have been drawn up in accordance with International Financial
Reporting Standards as adopted by the EU;
• selecting and applying appropriate accounting policies;
• making accounting estimates that are reasonable in the circumstances;
• ensuring that the financial statements are prepared on the going concern basis unless it is
inappropriate to presume that the Company will continue in business as a going concern.
The Directors are also responsible for designing, implementing and maintaining internal controls relevant to
the preparation and the fair presentation of the financial statements that are free from material misstatement,
whether due to fraud or error, and that comply with the Maltese Companies Act (Cap. 386). They are also
responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The financial statements of MaltaPost for the year ended 30 September 2024 are included in the Annual
Financial Report 2024, which is published on the Company’s website. The Directors are responsible for the
maintenance and integrity of the Annual Financial Report on the website in view of their responsibility for the
controls over, and the security of the website.
Access to information published on the Company’s website is available in other countries and jurisdictions,
where legislation governing the preparation and dissemination of financial statements may differ from
requirements or practice in Malta.
STATEMENT OF THE DIRECTORS PURSUANT TO CAPITAL MARKETS RULE 5.68
The Directors confirm that, to the best of their knowledge:
• the financial statements give a true and fair view of the financial position of the Company as at 30
September 2024, and of its financial performance and its cash flows for the year ended in accordance
with International Financial Reporting Standards as adopted by the EU; and
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
21
Directors’ report - continued
• the Annual Financial Report includes a fair review of the development and performance of the
business and the position of the Company, together with a description of the principal risks and
uncertainties that they face.
INFORMATION PROVIDED IN ACCORDANCE WITH CAPITAL MARKETS RULE 5.70.1
There were no material contracts to which the Company or any of its subsidiaries were a party, and in which
any one of the Company Directors was directly or indirectly interested, except for transactions listed in the
notes to the financial statements.
GOING CONCERN BASIS
After making due enquiries, the Directors have a reasonable expectation, at the time of approving the financial
statements, that the Company has adequate resources to continue in operational existence for the
foreseeable future. For this reason, the Directors continue to adopt the going concern basis in preparing the
financial statements.
CAPITAL MARKETS RULES DISCLOSURES
In terms of the Capital Markets Rule 5.64, the Directors are required to disclose the following information:
Amendments to the Memorandum and Articles of Association are effected in conformity with the provisions
in the Companies Act (Cap. 386). Furthermore, in terms of the Articles of Association of the Company:
(a) Directors may be authorised by the Company to issue shares subject to the provisions of the
Memorandum and Articles of Association and the Companies Act (Cap. 386);
(b) Directors may decline to register the transfer of a share (not being a fully paid share) to a person of whom
they shall not approve;
(c) Directors may decline to recognise any instrument of transfer, unless accompanied by the certificate
of the shares of which it relates, and/or such other evidence;
(d) no registration of transfer of shares shall be made and no new particulars shall be entered in the register
of members when the register is closed for inspection;
(e) the Company may, from time to time, by extraordinary resolution reduce the share capital and any share
premium account in any manner.
Currently there are no matters that require disclosures in relation to:
(a) holders of any securities with special rights;
(b) employee share schemes;
(c) restrictions on voting rights or relevant agreements thereto;
(d) agreements pertaining to the change in control of the Company;
(e) any agreements between the Company and its Directors or employees providing for compensation if they
resign or are made redundant without valid reason or if their employment ceases because of a takeover
bid.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
22
Directors’ report - continued
The exercise of any share buyback option by the Directors requires the passing of an extraordinary
resolution.
The Company’s capital structure, direct and indirect shareholding in the Company, in excess of 5% and the
rules governing the changes to the Board members are contained in other parts of this Annual Financial
Report.
The only shareholder holding 5% or more of the Issued Share Capital of the Company is Redbox Limited
which owned 72.7% as at 30 September 2024 and 20 November 2024.
AUDITORS
PricewaterhouseCoopers have indicated their willingness to continue in office and a resolution for their re-
appointment will be proposed at the Annual General Meeting.
Signed on behalf of the Company's Board of Directors on 19 December 2024 by Joseph Said and Aurelio
Theuma as per the Directors' Declaration on ESEF Annual Financial Report submitted in conjunction with
the Annual Financial Report 202 4.
Registered office
305, Qormi Road,
Marsa, MTP 1001
Malta
19 December 202 4
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
23
Statement of compliance
with the Principles of Good Corporate Governance
As a company having its securities admitted to trading on a regulated market, MaltaPost p.l.c. is obliged to
report on the extent to which it has adopted the Code of Principles of Good Corporate Governance (the
‘Principles’) during the period under review, as specified in Appendix 5.1 to Chapter 5 of the Malta Financial
Services Authority Capital Markets Rules. The Board also carries responsibility for Good Corporate
Governance and in this connection has prepared a review of the Company’s Compliance with the code for
the Financial Year ended 30 September 2024.The following report highlights the extent to which the Code
has been adopted, as well as the reasons for any departure from the Code.
Although compliance with the Code is not mandatory, the Board of Directors of MaltaPost p.l.c. firmly
believes that adoption of the Principles ensures the required standards of accountability, transparency, and
probity, all of which go to safeguard the very best interests of all the Company’s stakeholders.
A. COMPLIANCE WITH THE CODE
PRINCIPLE 1: THE BOARD
The Board of Directors is composed of the Chairman and six (6) Directors, six (6) of whom are non-
executive. Four (4) of the Directors are employed with the ultimate parent Company. While the Board of
Directors is elected by the shareholders as stipulated in the Company’s statute, the Chairman is elected by
the Directors from amongst themselves during the first Board Meeting following the Annual General
Meeting. Any Director (other than an alternate Director) may in writing appoint any person who is approve d
by the majority of the Directors, to be his alternate to act in his place at any meeting of the Directors at
which he is unable to be present.
The main responsibility of the Board is to set the strategic direction of the Company and to provide the
necessary oversight to ensure adherence to the agreed strategies.
In so doing the Board delegates certain responsibilities to a number of Board committees, notably the Audit
and Risk Committee, the Assets and Liabilities Committee and the Remuneration Committee, all of which
are regulated by their own terms of reference as approved by the Board of Directors. Further details
regarding the Board Committees are found under Principle 8 below. The Directors possess the necessary
skills and competencies to enable them to discharge their responsibilities with integrity, honesty, prudence,
and professionalism.
PRINCIPLE 2: CHAIRMAN AND CHIEF EXECUTIVE OFFICER
The post of Chairman and that of Chief Executive Officer are held by different individuals. The separation
of roles is intended to differentiate between the role of the Chairman as the leader of the Board of Directors
and that of the Chief Executive Officer who is responsible for the execution of the agreed strategies as well
as the day-to-day management of the Company. This separation of roles is meant to ensure that no one
individual or small group of individuals have unfettered powers of decision.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
24
Statement of compliance
with the Principles of Good Corporate Governance - continued
PRINCIPLE 3: COMPOSITION OF THE BOARD
The following Directors served on the Board during the period under review:
First appointment date
Joseph Said 18 August 2006
David P. Attard 16 January 2015
Anthony Bezzina 14 August 2024
James Dunbar Cousin 27 February 2018
Graham A. Fairclough 27 February 2018 (resigned on 14 August 2024)
Eugenio Farrugia 1 October 2016
Paul Muscat 15 November 2017
Aurelio Theuma 8 October 2007
Joseph Said is an Executive Director of the ultimate controlling shareholder, while David P. Attard, Graham
A. Fairclough now replaced by Anthony Bezzina, and Eugenio Farrugia are employees of the ultimate
controlling shareholder. These relationships are not considered necessarily conducive to the creation of a
conflict of interest such as to jeopardise exercise of these Directors’ free judgement. James Dunbar Cousin
and Paul Muscat are considered to be independent non-Executive Directors of the Company and in
determining independence or otherwise, the Board has taken into consideration the relevant Code
provisions. David P. Attard is an Executive Director of the Company.
It is considered that the experience, skills, and competencies of the members of the Board are sufficient to
ensure the proper functioning of the Board.
In terms of Principle 3.4, all the Directors have confirmed in writing that they:
(a) maintain in all circumstances their independence of analysis, decision and action;
(b) do not seek or accept any unreasonable advantages that could be considered as compromising their
independence;
(c) clearly express their opposition in the event that they find that a decision of the Board may harm the
Company.
Taking cognisance of the Company’s size and business model, the Board considers that as a policy it
endeavours to have a varied board, particularly in terms of diverse educational and professional
backgrounds as well as extensive and specialised experience. The Board is confident that for this reason
and in light of the fact that the Company is controlled by Lombard Bank Malta p.l.c., it benefits from a
satisfactory diversity of views and expertise which allows for a good understanding of current affairs, the
environment in which the Company operates, and long-term risks and opportunities related to the
Company’s business.
In line with the EU directive 2022/2381, the Board remains committed to achieving further diversity among
its members in terms of gender and including age, experience, educational and professional backgrounds.
PRINCIPLE 4: RESPONSIBILITIES OF THE BOARD
The Board of Directors is responsible for the formulation of the agreed strategy as well as the monitoring
of its implementation by management, within the confines of all the applicable rules and regulations.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
25
Statement of compliance
with the Principles of Good Corporate Governance - continued.
In so doing, the Board is responsible for:
(a) devising the appropriate strategies of the Company with a view to maximising value;
(b) approving Business Plans which are consonant with approved strategies and monitoring the execution
of such plans on a regular basis;
(c) approving Risk Management Plans which are appropriate to the business and monitoring the
application of mitigating factors;
(d) ensuring that internal control systems are in place and function appropriately. Although the relative
systems are designed to mitigate all the risks in accordance with best practice, they cannot completely
eliminate the possibility of material error or fraud;
(e) appointing the Company’s Executive Officers, monitoring their performance, approving their
compensation as well as ensuring that succession plans are in place;
(f) putting in place a policy to ensure that the Company communicates effectively with shareholders, other
stakeholders, and the public generally;
(g) putting in place procedures to ensure that the Company and its employees maintain the highest
standards of corporate conduct and ethical standards;
(h) delegating specific responsibilities to committees, notably the Audit and Risk Committee, the Assets
and Liabilities Committee and the Remuneration Committee.
(i) Monitoring adherence to the Company’s Environmental, Social and Governance responsibilities.
PRINCIPLE 5: BOARD MEETINGS
Six (6) Board meetings were held during the period under review and attendance by Board members was
as follows:
Attended
Joseph Said 6
David P. Attard 6
Anthony Bezzina 1 (appointed on 14 August 2024)
James Dunbar Cousin 5 (excused for one meeting)
Graham A. Fairclough 5 (resigned on 14 August 2024)
Eugenio Farrugia 6
Paul Muscat 6
Aurelio Theuma 6
The dates when the Board meetings are scheduled to take place are fixed prior to the beginning of the year
in question. Further meetings may be convened as required. Both strategic and operational matters are
featured in the agenda of Board meetings and the appropriate supporting papers are circulated to each
Board member well ahead of the meeting to ensure adequate time for preparation for deliberation at Board
meetings. All Board members are given the opportunity of expressing their opinion on all agenda items.
Minutes of all Board meetings as well as those of the Board Committees meetings are prepared
immediately after each meeting and circulated amongst all members. All the Directors dedicate the
necessary attention and time to their duties as Directors of the Company.
PRINCIPLE 6: INFORMATION AND PROFESSIONAL DEVELOPMENT
While the training of management and staff is an on-going process, the Directors are regularly updated
with all the relevant information which is considered necessary for the proper discharge of their duties
and responsibilities. Furthermore, all Company Directors have direct access to the Company Secretary
who is at their disposal and who ensures that the appropriate information flows are maintained at all
times. The Company Secretary is also responsible for ensuring that Board procedures are adhered to as
well as advise on matters relating to Corporate Governance. Additionally, and in terms of the Company’s
statute, the Directors are entitled to seek independent professional advice on any aspect of their duties at
the Company’s expense.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
26
Statement of compliance
with the Principles of Good Corporate Governance - continued
On first joining the Board, each Director is provided with a dossier containing information pertaining to
Director’s duties and responsibilities together with relevant legislation and regulations, including the Malta
Financial Services Authority Capital Markets Rules. Additionally, Directors have access to Senior
Executives to update and develop their skills as considered appropriate on an on-going basis. Furthermore,
the directors have access to the Company’s external auditors who are invited to attend all the Audit and
Risk Committee meetings and the Board of Directors meetings as necessary.
PRINCIPLE 7: EVALUATION OF BOARD'S PERFORMANCE
Vide under Non-Compliance within the Code Section.
PRINCIPLE 8: COMMITTEES
The following committees have been established by the Board of Directors, each having their own Terms
of Reference with direct reporting lines to the Board.
AUDIT AND RISK COMMITTEE
The Capital Markets Rules of the Malta Financial Services Authority provide for the establishment of an
Audit and Risk Committee, the main functions of which include the monitoring of the financial reporting
process, the soundness of the Company’s internal control systems as well as the scrutiny and approval of
related party transactions in order to ensure that the 'arm's length' principle is observed at all times. The
management of the relationship of the external auditors with the Company also falls within the scope of the
Audit and Risk Committee’s Terms of Reference.
The Audit and Risk Committee was made up of three (3) Non-Executive Directors, viz Paul Muscat
(Chairman), James Dunbar Cousin together with Aurelio Theuma. The Company Secretary acts as
Secretary to the Audit and Risk Committee.
In terms of Capital Markets Rule 5.117 both Paul Muscat and Aurelio Theuma are competent in Accounting
and/or Auditing on the basis that they are both Certified Public Accountants. Furthermore, in terms of
Capital Markets Rule 5.118, James Dunbar Cousin and Paul Muscat, are considered by the Board to be
independent given that they are free from any business, family or other relationship with the Company or
its management in a manner that may create a conflict of interest such as to impair their judgement.
During the period under review the Audit and Risk Committee met six (6) times. While the external auditors
are invited to attend, the Chief Internal Audit Officer attend these meetings in terms of Capital Markets Rule
5.131 and has a direct access to the Chairman of the Audit and Risk Committee at all times. The Head of
Risk also attends these meetings. It is within the discretion of the Audit and Risk Committee members to
invite any other official of the Company to attend any Committee meeting as they deem fit.
ASSETS AND LIABILITIES COMMITTEE
Membership of this Committee is made up of a non-Executive Director, the Chief Executive Officer and the
Chief Finance Officer and chaired by the Executive Director. During the period under review the Committee
met three (3) times. Its main objective is to manage risks and maximise returns by efficient and judicious
management of the Company’s assets and liabilities. A senior official of the Finance Department acts as a
secretary to the Committee.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
27
Statement of compliance
with the Principles of Good Corporate Governance - continued
REMUNERATION COMMITTEE
The Remuneration Committee is made up of 4 Directors with Paul Muscat acting as Chairman.
The report by the Remuneration Committee in terms of Code Provision 8.A.4 is presented on pages 31 to
page 34. The Chief Executive Officer attends the Remuneration Committee meetings when requested to
do so. Executive Director David P. Attard acts as secretary to this Committee.
PRINCIPLES 9 AND 10: RELATION WITH SHAREHOLDERS AND WITH THE MARKET AND
INSTITUTIONAL SHAREHOLDERS
The Company is cognisant of the importance of maintaining effective and on-going dialogue with its
shareholders as well as the market generally. It does so by issuing company announcements and press
releases from time to time on matters which are considered important, and which may affect the Company.
The announcement of the half-yearly results, as well as the annual results together with the interim
Directors' statements are uploaded on the Company’s website and that of the Malta Stock Exchange as
are all the other company announcements issued. Additionally, the Company’s website
(www.maltapost.com) contains relevant information about the Company.
The Company also communicates with its members through the Annual General Meeting during which
shareholders are requested to consider the Annual Financial Report and Accounts, the declaration of a
dividend (if any), the election of Directors, Directors’ remuneration, the appointment of external auditors
and the Board’s authorisation to set the auditors’ fees. Extraordinary General Meetings are held as and
when necessary, in conformity with both the Company’s statute as well as the Companies Act (Cap. 386).
All Directors attend the General Meetings and are available to answer questions if necessary.
PRINCIPLE 11: CONFLICTS OF INTEREST
While Directors are aware of their duty and responsibility to act in the best interests of the Company at all
times, policies and procedures are in place to ensure that Directors effectively manage any conflicts of
interest, whether actual or potential, in the best interest of the Company.
Specifically, the Company’s Memorandum and Articles of Association as well as the Directors’ Charter
regulate the behaviour of a director in the event of a potential conflict of interest.
Furthermore, the Company’s Code of Conduct for dealings in securities and which has been adopted and
implemented in conformity with The Market Abuse Laws and Regulations, sets out the obligations of a
director when it comes to dealing in any of the Company’s securities.
The Directors’ interest in the Share Capital of the Company as at 30 September 2024 was as follows:
Shares held
Anthony Bezzina 5,190 Ordinary Shares
Eugenio Farrugia 1,131 Ordinary Shares
Aurelio Theuma 5,292 Ordinary Shares
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
28
Statement of compliance
with the Principles of Good Corporate Governance - continued
Joseph Said, who is a Director of the Company, is also a director of the following companies, which as at
30 September 2024 had the following shareholding in the Company:
Shares held
First Gemini p.l.c. 78,775 Ordinary Shares
Safaco Limited 96,991 Ordinary Shares
In addition, Joseph Said has a minority shareholding in Safaco Limited.
PRINCIPLE 12: CORPORATE SOCIAL RESPONSIBILITY
Fully conscious of the responsibility towards the society in which it operates, MaltaPost p.l.c. not only
encourages healthy and balanced lifestyles for its employees, but also seeks to promote environment
friendly initiatives particularly those which reduce the Company’s overall carbon footprint. Significant
investment has been made in this area and the intention is to continue with this investment.
The Company also encourages and promotes philanthropic initiatives towards disadvantaged groups and
the intention is to continue in this direction.
MaltaPost p.l.c., therefore, is not only committed to be in full compliance with its legal obligations in this
regard but go well beyond this in pursuit of its social obligations.
B. NON-COMPLIANCE WITH THE CODE
PRINCIPLE 4: RESPONSIBILITIES OF THE BOARD
Code Provision 4.2.7 provides for the development of a succession policy for the future composition of the
Board. Given that it is the prerogative of the shareholders of MaltaPost p.l.c. to elect directors to represent
them and this in accordance with the Company’s Memorandum and Articles of Association, and the Maltese
Companies Act (Cap. 386) it has not been considered appropriate to develop a succession policy for the
future composition of the Board. However, the recommendation to have a policy in place will be kept under
review.
PRINCIPLE 7: EVALUATION OF BOARD’S PERFORMANCE
The Company Secretary arranges for a “Board Effectiveness Questionnaire” which is completed by each
Board Member and the findings are analysed by him in liaison with the Chairman. Similarly, an
“Effectiveness Questionnaire” is also arranged for the Audit and Risk Committee, by the Company
Secretary in liaison with the Chairman. Findings are discussed and acted upon as appropriate.
PRINCIPLE 8: NOMINATION COMMITTEE
This Principle provides for a Nomination Committee to cater for a formal and transparent procedure for the
appointment of new directors to the Board. Such a committee has not been set up given that it is the
prerogative of the shareholders of the Company, in accordance with the relative Memorandum and Articles
of Association, to appoint directors to the Board.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
29
Statement of compliance
with the Principles of Good Corporate Governance - continued
The Articles of Association of the Company provide that unless the Company in General Meeting shall
otherwise determine, the Board of Directors shall be made up of a maximum of seven (7) directors
appointed as follows:
(a) a member of the Company holding, or a number of members, who between them hold, such number
of shares having voting rights as may be sufficient to constitute one (1) or more Qualifying Holdings
(such number of shares held by a member of the Company amounting to twenty per cent (20%) of the
Issued Share Capital of the Company having voting rights) is entitled to appoint one (1) director for
every Qualifying Holding held, by letter addressed to the Company Secretary;
(b) any member who is not entitled to appoint directors in terms of the provisions of paragraph (a) above,
or who is not entitled to aggregate his holding with those of other members for the purposes of
appointing a director(s) pursuant thereto, is entitled to participate and vote in an election of directors
at the General Meeting of the Company;
(c) members who avail themselves of appointing directors pursuant to the provisions of paragraph (a)
above are still entitled to participate in the election of directors in terms of paragraph (b) provided that
in such an election they may only use such shares not otherwise used for the appointment of directors
pursuant to paragraph (a).
For an election of directors mentioned in paragraph (b) above, every shareholder entitled to vote thereunder
shall be entitled to nominate one (1) person to stand for the election of directors. Such nominee must be
seconded by at least such shareholder or shareholders as in aggregate hold at least point five per cent
(0.5%) of the Issued Share Capital of the Company between them.
In the event that there are more nominations than there are vacancies, an election amongst such
candidates shall take place for the appointment of such number of directors as will fill the vacancies
available on the Board. At an election of directors each member shall be required to vote on the ballot paper
provided by the Company by putting such number of votes against the name or names of the preferred
candidates as such member may determine, provided that in aggregate the number of votes cast cannot
exceed the number of shares held by such member. The candidates obtaining the highest number of votes
shall be elected and appointed directors.
PRINCIPLE 9: RELATIONS WITH SHAREHOLDERS AND WITH THE MARKET
Code Provision 9.3 provides for procedures to be in place to resolve conflicts between minority
shareholders and controlling shareholders. The Memorandum and Articles of Association of the Company
do not provide for a procedure to resolve such conflicts. However, the Company’s Senior Management and
the Non-Executive Directors maintain an open dialogue to cater for any such conflicts.
The Company also maintains an open channel of communication with its shareholders through the
Company Secretariat.
C. INTERNAL CONTROL (CAPITAL MARKETS RULE 5.97.4)
The Board of Directors have set up the required organisational structures in order to effectively manage
and control the operational risks which the Company undertakes in its day-to-day operations. It is
understood that whereas these risks may be mitigated by the adoption of various control systems, such
risks cannot be completely eliminated. Therefore, reasonable but not absolute assurances can be given
against material losses, error, or fraud.
The more important structures which are in place to consolidate the internal control mechanisms are the
Internal Audit Department, the Audit and Risk Committee as well as the Risk Management functions.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
30
Statement of compliance
with the Principles of Good Corporate Governance - continued
The Company’s system of internal control includes:
(a) the Company operates through an Executive Committee led by the Chief Executive Officer with clear
reporting lines and delegation of authority. Through the Executive Committee the Company plans,
executes, controls and monitors business operations in order to achieve the set objectives;
(b) the Company is committed to the highest standards of business conduct and seeks to maintain these
standards across all its operations. Company policies and employee procedures are in place to detect,
report and resolve any fraudulent activities or any infringement of the integrity of mail;
(c) the Executive Committee is responsible to identify and evaluate key risks applicable to areas of
business. A member of this same Committee assists the Board of Directors to assess the different
types of risks identified, to which the Company is exposed. This function also monitors, on an on-going
basis, the effective management of the different types of risk at the same time as ensuring that the
Company is in full compliance with all the obligations imposed by codes, rules, legislation, and statute
relevant to the Company as well as its business;
(d) the Board, through the Audit and Risk Committee, receives periodic management reports on Risk
Management and Compliance; and
(e) the Board receives periodic management information giving comprehensive analysis of financial and
business performance including variances against the Company’s set targets.
D. GENERAL MEETINGS (CAPITAL MARKETS RULE 5.97.6)
A General Meeting is conducted in conformity with the Articles of Association of the Company and is called
by giving at least 21 days of notice.
The Ordinary Business conducted at the Annual General Meeting consists of receiving or adoption of the
Annual Financial Statement, the Declaration of a Dividend, the Appointment and Remuneration of Directors,
the Appointment of the External Auditors, as well as the Authority to the Board to fix the external Auditors’
emoluments.
All shareholders on the shareholders register on the record date as defined in the Capital Markets Rules,
have the right to attend, participate and vote at the General Meeting.
A member or members holding not less than five per cent (5%) of the voting issued share capital of the
Company may:
(a) request the Company to include items on the agenda of the General Meeting provided that each item
is accompanied by a justification or a draft resolution to be adopted at the General Meeting; and
(b) table draft resolution for items included in the agenda of a General Meeting. Such requests are to be
received by the Company at least forty-six (46) days before the date set for the relative General
Meeting.
Every person entered into the register of members shall be entitled to appoint only one (1) person to act as
proxy holder to attend and vote at a General Meeting instead of him. The proxy holder shall enjoy the same
rights to speak and ask questions in the General Meeting as those to which the member thus represented
would be entitled.
Signed on behalf of the Board of Directors on 19 December 2024 by Joseph Said (Chairman) and Aurelio
Theuma (Director) as per the Directors’ Declaration on ESEF Annual Financial Report submitted in
conjunction with the Annual Report and Financial Statements 2024.
Joseph Said
Chairman
Aurelio Theuma
Director
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
31
Remuneration Report
The Remuneration Committee is responsible to draw up a Remuneration Policy and submit it for the Board’s
consideration. In determining such policy, the Committee takes into account all factors which it deems
necessary, including the position of the Company relative to other companies in the marketplace. The
objective of such policy is to ensure that Directors and Chief Officers are provided with appropriate
incentives to encourage enhanced performance and are rewarded in a fair and responsible manner, for
their individual contributions to the success of the Company. The remuneration policy is subject to a regular
review and any amendments thereto shall, before adoption, be submitted to a General Meeting for
consideration and approval.
MEMBERSHIP AND TERMS OF REFERENCE
The following Directors of MaltaPost p.l.c. make up the Remuneration Committee: Paul Muscat (Chairman),
David P. Attard, Eugenio Farrugia and Aurelio Theuma. The Remuneration Committee is tasked with
maintaining a Remuneration Policy which ensures that MaltaPost p.l.c. attracts, retains, and motivates the
appropriate calibre of Directors, Senior Executives and Management, who are ultimately responsible for
the formulation and execution of the Company’s strategies and policies. Furthermore, the Remuneration
Committee recommends to the Board of Directors remuneration packages for all Directors and Senior
Executives.
MEETINGS
During the financial year ended 30 September 2024 the Remuneration Committee met twice (2). These
meetings were attended by all members and the following matters were discussed:
• Annual Salary Review
• Annual Discretionary Bonus.
• Annual Review of Terms of Reference
• Annual Review of Directors’ Remuneration.
REMUNERATION – DIRECTORS
The Remuneration Policy for Directors drawn up in terms of the Capital Markets Rule 12.26A was approved
at the Annual General Meeting held on the 9 February 2024. Any amendments to this Policy shall, before
adoption, be submitted to a General Meeting for consideration and approval.
The last Annual General Meeting approved the amount of seventy-five thousand euro (€75,000) as the
maximum aggregate amount by way of Directors’ Remuneration. During the same meeting, the members
approved the Remuneration Report for Directors which was a separate agenda item of the Annual General
Meeting.
None of the Directors has any service contracts with the Company, and none is entitled to share options,
profit sharing, pension benefits or any other form of remuneration. No other fees were payable to any of
the Directors during the year under review, except for Graham A. Fairclough, the Company Secretary, who
received fees of € 3,484 per annum for services rendered and a retirement gratuity of €50,000.
Four (4) of the Directors are employees of the ultimate controlling shareholder of MaltaPost p.l.c.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
32
Remuneration Report - continued
In terms of Code Provision 8.A.5 of the Malta Financial Services Authority Capital Markets Rules, the total
emoluments received by Directors for their directorship for the financial years indicated, are specified below:
FINANCIAL YEAR
FIXED REMUNERATION
2024
€75,000
2023
€75,000
2022
€59,600
2021
€59,600
2020
€59,600
The total emoluments paid to Directors during the past five Financial Years, which amounts all fell within
the limits as approved by the Annual General Meetings of the respective years being reported on are
specified below:
2024
2023
2022
2021
2020
Joseph Said
€18,000
€18,000
€17,000
€17,000
€17,000
David P Attard
€8,500
€8,500
€7,100
€7,100
€7,100
James Dunbar Cousin
€10,500
€10,500
€7,100
€7,100
€7,100
Graham A Fairclough
€7,400
€ 8,500
€7,100
€7,100
€7,100
Eugenio Farrugia
€8,500
€ 8,500
€7,100
€7,100
€7,100
Paul Muscat
€10,500
€10,500
€7,100
€7,100
€7,100
Aurelio Theuma
€10,500
€10,500
€7,100
€7,100
€7,100
Anthony Bezzina
€1,100
NA
NA
NA
NA
Total
€75,000
€75,000
€59,600
€59,600
€59,600
Note: Graham A Fairclough resigned as Director and Company Secretary on 1 4 August 2024 and was
replaced by Antony Bezzina as Director and by Mauro Portelli as Company Secretary, both appointments
being effective from the same date.
David P. Attard and Eugenio Farrugia also serve as Directors on CIABRO Limited and PostaInsure Agency
Limited respectively, two subsidiaries of the Group and for which they do not receive any renumeration.
In terms of Code Provision 8.A.5 of the Malta Financial Services Authority Capital Markets Rules, during
Financial Year 2024, the Executive Director was paid by the parent company, who in turn re-charged
MaltaPost p.l.c. €122,000 (2023: €116,000) for his role. The total emoluments received by the Chief
Executive Officer for this Financial Year amounted to €129,000 (2023: €120,000).
There is no formal provision for the reclamation of any variable remuneration related to the previous
financial year/s.
The remuneration levels for Financial Year 2024 comply with the provisions of the approved Remuneration
Policy for Directors.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
33
Remuneration Report - continued
REMUNERATION - SENIOR EXECUTIVES
All references to ‘Senior Executives’ in this report refer specifically to the Chief Officers of MaltaPost p.l.c.
It falls within the Terms of Reference of the Remuneration Committee to recommend to the Board of
Directors the appropriate remuneration packages for Senior Executives. In so doing, the Committee is
mindful of the need to attract, retain and motivate Senior Executives with the qualities and attributes
that enable them to discharge their obligations professionally and with utmost integrity. The Remuneration
Committee also seeks to maintain a sense of fairness and consistency in its recommendations. In this
connection, it is to be mentioned that there were no material changes to the Remuneration Policy for Senior
Executives during the financial year ending 30 September 2024.
The contracts of all Senior Officers specify their remuneration packages, none of which provide for profit
sharing or share options, supplementary pensions, or other pension benefits. All Senior Executives are on
indefinite contracts of employment.
Annual salary increases may be awarded to Chief Officers, but such increases are not directly performance
related. A discretionary annual bonus is payable to the Chief Officers following an assessment of their
individual overall performance during the previous financial year.
The Board of Directors and Chief Executive Officer agree upon pre-set quantitative and qualitative
objectives for the Chief Executive Officer and a discretionary annual bonus is payable based on the
attainment of these objectives. The Remuneration Committee considers the linkage between the fixed
remuneration and the discretionary annual bonus to be appropriate.
In terms of Code Provision 8.A.5 of the Malta Financial Services Authority Capital Markets Rules, the total
emoluments received by Senior Executives during the financial year are as detailed below:
FINANCIAL YEAR
FIXED REMUNERATION
VARIABLE REMUNERATION
OTHERS
2024
€311,000
€22,000
See ii below*
2023
€293,000
€17,500
See ii below*
2022
€269,000
€18,000
See ii below*
2021
€222,000
€18,000
See ii below*
2020
€234,000
€18,000
See ii below*
Notes:
i) During Financial Year 2022, the number of Chief Officers increased from 3 to 4. There were 5
Chief Officers serving during financial year 2020, two of whom were only in employment for
part of the financial year.
ii) *Senior Executives are covered by a group life assurance scheme and are entitled to health
insurance, communication expenses as well as the use of company car or car allowance.
The foregoing Remuneration Report is being put forward to an advisory vote of the 2025 Annual General
Meeting in accordance with the requirements of the Malta Financial Services Authority Capital Markets
Rule 12.26 L.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
34
Remuneration Report - continued
Other information on remuneration in terms of Appendix 12.1 of the Capital Markets Rules
In terms of the requirements established by Appendix 12.1 of the Capital Markets Rules, the following table
presents the annual changes made in the remuneration packages when compared to the Company’s
performance over the last four financial years. The non-executive Company’s Directors have been excluded
from the table below since they have a fixed fee as described in Section B above. The average
remuneration of the employees is based on a full-time equivalent basis, excluding the Executive Director
and Chief Executive Officer (CEO).
2024
2023
2022
2021
2020
% Change
€000
€’000
€’000
€’000
€’000
%
%
%
%
Group
Average Employee
Remuneration
(excluding Executive
Director & CEO)
24
23
21
20
19
4
10
5
5
Executive Director &
CEO Remuneration
246
236
220
209
201
4
7
5
4
Group Performance –
Profit Before Tax
4,678
2,318
637
2,350
2,780
102
264
(73)
(16)
Company
Average Employee
Remuneration
(excluding Executive
Director & CEO)
24
23
22
21
20
4
5
5
5
Executive Director &
CEO Remuneration
246
236
220
209
201
4
7
5
4
Company Performance
- Profit Before Tax
4,402
2,575
1,007
2,582
2,912
71
156
(61)
(11)
The performance of the Group and the Company is measured on a “Profit Before Tax” basis, as
management determined that this is the best measure of direct performance.
The contents of the Remuneration Report have been reviewed by PricewaterhouseCoopers, the external
auditors, to ensure that the information required in terms of Appendix 12.1 of Chapter 12 of the Capital
Markets Rules have been included.
This Remuneration Report was approved by the Board of Directors at the Board Meeting held on the 19
December 2024.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
35
Company information
Vision Statement
To be Malta's leading Logistics Company delivering excellence in customer experience globally
Mission Statement
To exceed customers' expectations by providing high quality, cost-effective logistical and diversified
services.
Company Registration Number: C22796
Registered Office:
305, Qormi Road, Marsa MTP 1001, Malta
Tel: (+356) 2122 4421
Fax: (+356) 2122 6368
Freephone: (+356) 80072244
Email: info@maltapost.com
www.maltapost.com
Registered shareholders with five per cent (5%) or more of the Share Capital of the Company:
30 September 2024
27 November 2024
Redbox Limited
72.65%
72.65%
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
36
BOARD OF DIRECTORS
Joseph Said (Chairman)
David P. Attard
Anthony Bezzina
James Dunbar Cousin
Eugenio Farrugia
Paul Muscat
Aurelio Theuma
COMPANY SECRETARY
Mauro Portelli
CHIEF OFFICERS
Joseph Gafa` Chief Executive Officer
Carmen Ellul Chief Internal Audit Officer
Ian Lucas Chief Financial Officer
Adrian Vassallo Chief Operating Officer
HEADS OF DEPARTMENTS
Edwin Abdilla Mail Services
Johan Attard Finance - Management and Regulatory Accounts
David Borg Corporate Security
Lara Bugeja Malta Postal Museum Curator
Antoinette Camilleri Corporate Office & Investors Relations
Pierre Camilleri Post Office Network
Stefania Camilleri Human Resources
Stefan J. Camilleri Health and Safety
Charles Cilia Commercial
John Cremona Support Services
Paul Curmi Document Management Services
Sean Dingli Customer Care
Mario Farrugia Retail and Insurance Services
Andrew Harrison Risk and ESG
Steffan Galea Digital Solutions and Strategy
Albert Gouder Marketing
Darren Micallef F inance - Financial Accounts and Control
Joswill Micallef IT Support
Patrick Polidano Quality Assurance
Mauro Portelli Legal and Compliance
Mary Grace Simpson Philately
Kenneth Spiteri Business Process Design
Rosanne Spiteri Cutajar Insurance Services
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
37
Statements of financial position
Group
Company
As at 30 September

| Notes | 2024 | 2023 | 2024 | 2023
|  | €’000 | €’000 | €’000 | €’000
ASSETS |  |  |  |  |
Non-current assets |  |  |  |  |
Property, plant and equipment | 4 | 24,625 | 22,822 | 24,470 | 22,627
Right-of-use assets | 5 | 2,222 | 1,661 | 2,222 | 1,661
Intangible assets | 6 | 1,320 | 1,319 | 1,251 | 1,232
Investment in subsidiaries | 7 | - | - | 41 6 | 416
Investment in associate | 8 | 2,775 | 1,716 | 3,875 | 2,875
Financial assets at fair value through other comprehensive income | 9 | 2,133 | 2,265 | 2,133 | 2,265
Deferred tax asset | 10 | 267 | 313 | 264 | 270
Total non-current assets |  | 33,342 | 30,096 | 34,631 | 31,346
Current assets |  |  |  |  |
Inventories | 11 | 853 | 752 | 852 | 750
Trade and other receivables | 12 | 10,432 | 8,685 | 9,983 | 8,297
Current tax asset |  | - | 643 | - | 636
Deposits with financial institutions | 13 | 2,900 | 2,500 | 2,900 | 2,500
Cash and cash equivalents | 14 | 5,052 | 4,368 | 4,080 | 3,241
Business of insurance accounts | 14 | 117 | 347 | 45 | 18
Total current assets |  | 19,354 | 17,295 | 17,860 | 15,442
Total assets |  | 52,696 | 47,391 | 52,491 | 46,788

MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
38
Statements of financial position - continued
Group
Company
As at 30 September

| Notes | 2024 | 2023 | 2024 | 2023
|  | €’000 | €’000 | €’000 | €’000
EQUITY AND LIABILITIES |  |  |  |  |
Capital and reserves |  |  |  |  |
Share capital | 15 | 10,043 | 9,689 | 10,043 | 9,689
Share premium | 15 | 9,183 | 8,292 | 9,183 | 8,292
Other reserves | 16 | 5,380 | 3,699 | 5,380 | 3,699
Retained earnings |  | 8,139 | 6,794 | 9,150 | 7,910
Total equity attributable to equity |  |  |  |  |
holders of the Company |  | 32,745 | 28,474 | 33,756 | 29,590
Non-controlling interest |  | 519 | 445 | - | -
Total equity |  | 33,264 | 28,919 | 33,756 | 29,590
Non-current liabilities |  |  |  |  |
Deferred tax liability | 10 | 1,623 | 1,299 | 1,623 | 1,299
Lease liabilities | 17 | 1,980 | 1,429 | 1,980 | 1,429
Provision for liabilities and charges | 18 | 932 | 908 | 932 | 908
Total non-current liabilities |  | 4,535 | 3,636 | 4,535 | 3,636
Current liabilities |  |  |  |  |
Lease liabilities | 17 | 290 | 301 | 290 | 301
Provision for liabilities and charges | 18 | 129 | 126 | 129 | 126
Current tax liability |  | 660 | - | 610 | -
Trade and other payables | 19 | 13,818 | 14,409 | 13,171 | 13,135
Total current liabilities |  | 14,897 | 14,836 | 14,200 | 13,562
Total liabilities |  | 19,432 | 18,472 | 18,735 | 17,198
Total equity and liabilities |  | 52,696 | 47,391 | 52,491 | 46,788

The accompanying notes are an integral part of these financial statements.
The financial statements on pages 37 to 94 were approved and authorised for issue by the Board of
Directors on 19 December 2024. The financial statements were signed on behalf of the Company’s Board
of Directors by Joseph Said and Aurelio Theuma as per the Directors’ Declaration on ESEF Annual Financial
Report submitted in conjunction with the Annual Financial Report 2024.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
39
Income statements
Group
Company
Year ended 30 September

| Notes | 2024 | 2023 | 2024 | 2023
|  | €’000 | €’000 | €’000 | €’000
Revenue | 20 | 40,144 | 39,610 | 39,498 | 39,049
Employee benefits expense | 22 | (17,122) | (15,059) | (16,854) | (14,811)
Depreciation and amortisation expense | 21 | (2,492) | (1,974) | (2,433) | (1,915)
Other expenses | 21 | (16,273) | (20,053) | (16,150) | (19,910)
Other income | 23 | 270 | 108 | 249 | 108
Operating profit |  | 4,527 | 2,632 | 4,310 | 2,521
Share of results of associate | 8 | 59 | (368) | - | -
Finance costs | 17 | (57) | (59) | (57) | (59)
Finance income | 24 | 149 | 113 | 149 | 113
Profit before tax |  | 4,678 | 2,318 | 4,402 | 2,575
Tax expense | 25 | (1,709) | (435) | (1,612) | (381)
Profit for the year |  | 2,969 | 1,883 | 2,790 | 2,194
Attributable to: |  |  |  |  |
Owners of the Company |  | 2,895 | 1,846 | 2,790 | 2,194
Non-controlling interest |  | 74 | 37 | - | -
|  | 2,969 | 1,883 | 2,790 | 2,194
Earnings per share | 27 | €0.037 | €0.020 |  |
The accompanying notes are an integral part of these financial statements. |  |  |  |  |

MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
40
Statements of comprehensive income
Group
Company
Year ended 30 September

| Notes | 2024 | 2023 | 2024 | 2023
|  | €’000 | €’000 | €’000 | €’000
Comprehensive income |  |  |  |  |
Profit for the year |  | 2,969 | 1,883 | 2,790 | 2,194
Other comprehensive income |  |  |  |  |
Items that may be subsequently |  |  |  |  |
reclassified to profit or loss |  |  |  |  |
Financial assets at fair value through other comprehensive income: |  |  |  |  |
Losses from changes in fair value | 9 | 85 | (132) | 85 | (132)
Items that will not be reclassified to profit |  |  |  |  |
or loss |  |  |  |  |
Surplus arising on r evaluation of land and buildings | 4 | 1,896 | - | 1,896 | -
Remeasurements of defined benefit |  |  |  |  |
obligations | 18 | (82) | 159 | (82) | 159
Income tax relating to components of other comprehensive income: |  |  |  |  |
Surplus arising on revaluation of land and buildings | 10 | (247) | - | (247) | -
Remeasurements of defined benefit |  |  |  |  |
obligations | 10 | 29 | (59) | 29 | (59)
Total other comprehensive income for the year |  | 1,681 | (32) | 1,681 | (32)
Total comprehensive income for the year |  | 4,650 | 1,851 | 4,471 | 2,162
Attributable to: |  |  |  |  |
Owners of the Company |  | 4,576 | 1,814 | 4,471 | 2,162
Non-controlling interests |  | 74 | 37 | - | -
Total comprehensive income for the year |  | 4,650 | 1,851 | 4,471 | 2,162

The accompanying notes are an integral part of these financial statements.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
41
Statements of changes in equity
Group
Attributable to owners of the Company

|  |  |  |  |  |  | Non |
|  | Share | Share | Other | Retained |  | controlling | Total
| Notes | capital | premium | reserves | earnings | Total | interest | equity
|  | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000
Balance at 1 October 2022 |  | 9,414 | 7,367 | 3,731 | 6,454 | 26,966 | 408 | 27,374
Comprehensive income |  |  |  |  |  |  |  |
Profit for the year |  | - | - | - | 1,846 | 1,846 | 37 | 1,883
Other comprehensive income |  |  |  |  |  |  |  |
Financial assets at fair value through other comprehensive income: |  |  |  |  |  |  |  |
Losses from changes in fair value | 9 | - | - | (132) | - | (132) | - | (132)
Remeasurements of defined |  |  |  |  |  |  |  |
benefit obligation, net of deferred tax | 10, 18 | - | - | 100 | - | 100 | - | 100
Total other comprehensive income |  | - | - | (32) | - | (32) | - | (32)
Total comprehensive income |  | - | - | (32) | 1,846 | 1,814 | 37 | 1,851
Transactions with owners in their capacity as owners |  |  |  |  |  |  |  |
Distributions to owners: |  |  |  |  |  |  |  |
Dividends paid to equity |  |  |  |  |  |  |  |
holders | 28 | - | - | - | (1,506) | (1,506) | - | (1,506)
Changes in ownership interest |  |  |  |  |  |  |  |
that do not result in loss of control |  |  |  |  |  |  |  |
Increase in share capital |  | 275 | 925 | - | - | 1,200 | - | 1,200
Total transactions with owners in their capacity of owners |  | 275 | 925 | - | (1,506) | (306) | - | (306)
Balance at 30 September 2023 |  | 9,689 | 8,292 | 3,699 | 6,794 | 28,474 | 445 | 28,919

MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
42
Statements of changes in equity - continued
Group
Attributable to owners of the Company

|  |  |  |  |  |  | Non |
|  | Share | Share | Other | Retained |  | controlling | Total
| Notes | capital | premium | reserves | earnings | Total | interest | equity
|  | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000
Balance at 1 October 2023 |  | 9,689 | 8,292 | 3,699 | 6,794 | 28,474 | 445 | 28,919
Comprehensive income |  |  |  |  |  |  |  |
Profit for the year |  | - | - | - | 2,895 | 2,895 | 74 | 2,969
Other comprehensive income |  |  |  |  |  |  |  |
Surplus arising on revaluation of land and buildings, net of deferred tax | 4,10 | - | - | 1,649 | - | 1,649 | - | 1,649
Financial assets at fair value through other comprehensive income: |  |  |  |  |  |  |  |
Gain from changes in fair value | 9 | - | - | 85 | - | 85 | - | 85
Remeasurements of defined |  |  |  |  |  |  |  |
benefit obligation, net of deferred tax | 10, 18 | - | - | (53) | - | (53) | - | (53)
Total other comprehensive income |  | - | - | 1,681 | - | 1,681 | - | 1,681
Total comprehensive income |  | - | - | 1,681 | 2,895 | 4,576 | 74 | 4,650
Transactions with owners in their capacity as owners |  |  |  |  |  |  |  |
Distributions to owners: |  |  |  |  |  |  |  |
Dividends paid to equity |  |  |  |  |  |  |  |
holders | 28 | - | - | - | (1,550) | (1,550) | - | (1,550)
Changes in ownership interest |  |  |  |  |  |  |  |
that do not result in loss of control |  | 354 | 891 | - | - | 1,245 | - | 1,245
Increase in share capital |  |  |  |  |  |  |  |
Total transactions with owners in their capacity of owners |  | 354 | 891 | - | (1,550) | (305) | - | (305)
Balance at 30 September 2024 |  | 10,043 | 9,183 | 5,380 | 8,139 | 32,745 | 519 | 33,264

MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
43
Statements of changes in equity - continued
Company
Share
Share
Other
Retained
Notes
capital
premium
reserves
earnings
Total
€’000
€’000
€’000
€’000
€’000
Balance at 1 October 2022
9,414
7,367
3,731
7,222
27,734
Comprehensive income
Profit for the year
-
-
-
2,194
2,194
Other comprehensive income
Financial assets at fair value through
other comprehensive income:
Losses from changes in fair value
9
-
-
(132)
(132)
Remeasurements of defined benefit
obligation, net of deferred tax
10,18
-
-
100
100
Total other comprehensive income
-
-
(32)
(32)
Total comprehensive income
-
-
(32)
2,194
2,162
Transactions with owners in their
capacity as owners
Distributions to owners:
Dividends paid to equity holders
28
-
-
-
(1,506)
(1,506)
Changes in ownership interest that do
not result in loss of control
Increase in share capital
275
925
-
-
1,200
Total transactions with owners in their
capacity as owners
275
925
-
(1,506)
(306)
Balance at 30 September 2023
9,689
8,292
3,699
7,910
29,590
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
44
Statements of changes in equity - continued
Company
Share
Share
Other
Retained
Notes
capital
premium
reserves
earnings
Total
€’000
€’000
€’000
€’000
€’000
Balance at 1 October 202 3
9,689
8,292
3,699
7,910
29,590
Comprehensive income
Profit for the year
-
-
-
2,790
2,790
Other comprehensive income
Surplus arising on revaluation of Land
and Buildings, net of deferred tax
4,10
-
-
1,649
-
1,649
Financial assets at fair value through
other comprehensive income:
Gain from changes in fair value
9
-
-
85
-
85
Remeasurements of defined benefit
obligation, net of deferred tax
10,18
-
-
(53)
-
(53)
Total other comprehensive income
-
-
1,681
-
1,681
Total comprehensive income
-
-
1,681
2,790
4,471
Transactions with owners in their
capacity as owners
Distributions to owners:
Dividends paid to equity holders
28
-
-
-
(1,550)
(1,550)
Changes in ownership interest that do
not result in loss of control
Increase in share capital
354
891
-
-
1,245
Total transactions with owners in their
capacity as owners
354
891
-
(1,550)
(305)
Balance at 30 September 2024
10,043
9,183
5,380
9,150
33,756
The accompanying notes are an integral part of these financial statements.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
45
Statements of cash flows
Group
Company
Year ended 30 September

| Note | 2024 | 2023 | 2024 | 2023
|  | €’000 | €’000 | €’000 | €’000
Cash flows from operating activities |  |  |  |  |
Interest charges on lease liabilities |  | (57) | (59) | (57) | (59)
Interest received |  | 148 | 107 | 148 | 107
Cash from customers |  | 43,815 | 44,145 | 39,807 | 41,293
Cash paid to suppliers and employees |  | (39,831) | (42,696) | (35,397) | (40,095)
Cash flows attributable to funds collected |  |  |  |  |
on behalf of third parties |  | 319 | 872 | 291 | 744
Cash generated from operating activities |  | 4,394 | 2,369 | 4,792 | 1,990
Income tax paid |  | (267) | (818) | (254) | (818)
Net cash generated from operating |  |  |  |  |
activities |  | 4,127 | 1,551 | 4,538 | 1,172
Cash flows from investing activities |  |  |  |  |
Purchase of property, plant and equipment |  | (1,159) | (1,056) | (1,158) | (1,056)
Purchase of intangible assets |  | (714) | (700) | (714) | (700)
Purchase of investment in associate |  | (1,000) | (1,000) | (1,000) | (1,000)
Proceeds from disposals/redemptions of financial assets at fair value through other comprehensive income |  | 216 | 132 | 216 | 132
Maturity of deposits with financial institutions |  | 1,100 | 2,500 | 1,100 | 2,500
Placement of deposits with financial |  |  |  |  |
institutions |  | (1,500) | (2,000) | (1,500) | (2,000)
Net cash used in investing activities |  | (3,057) | (2,124) | (3,056) | (2,124)
Cash flows from financing activities |  |  |  |  |
Principal element of lease payments |  | (316) | (278) | (316) | (278)
Dividends paid |  | (300) | (299) | (300) | (299)
Net cash used in financing activities |  | (616) | (577) | (616) | (577)
Net movement in cash and cash |  |  |  |  |
equivalents |  | 454 | (1,150) | 866 | (1,529)
Cash and cash equivalents at beginning of year |  | 4,715 | 5,865 | 3,259 | 4,788
Cash and cash equivalents at end of year | 14 | 5,169 | 4,715 | 4,125 | 3,259

The accompanying notes are an integral part of these financial statements.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
46
Notes to the financial statements
1. Summary of material accounting policy information
The principal accounting policies applied in the preparation of these financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise
stated.
1.1 Basis of preparation
The consolidated financial statements include the financial statements of MaltaPost p.l.c. (the
Company) and its subsidiary undertakings (together referred to as ‘the Group’ and individually as
‘Group entities’). The financial statements are prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the EU and comply with the requirements of the Maltese
Companies Act (Cap. 386). The financial statements are prepared under the historical cost
convention, as modified by the fair valuation of the land and buildings class within property, plant and
equipment and financial assets at fair value through other comprehensive income.
The preparation of financial statements in conformity with IFRSs as adopted by the EU requires the
use of certain critical accounting estimates. It also requires Directors to exercise their judgement in
the process of applying the Group’s accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements are disclosed in Note 3.
(a) Standards, interpretations and amendments to published standards effective in 2024
In 2024, the Group adopted new amendments and interpretations to existing standards that are
mandatory for the Group’s accounting period beginning on 1 October 202 3. The adoption of these
revisions to the requirements of IFRSs as adopted by the EU did not result in changes to the Group’s
accounting policies impacting the financial performance and position.
(b) Standards, interpretations and amendments to published standards that are not yet effective
Certain new standards, amendments and interpretations to existing standards have been
published by the date of authorisation for issue of these financial statements, that are mandatory
for the Group’s accounting periods beginning after 1 October 2023. The Group has not early
adopted these revisions to the requirements of IFRSs as adopted by the EU, and the Company’s
Directors are of the opinion that there are no requirements that will have a possible significant
impact on the Group’s financial statements in the period of initial application.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
47
1. Summary of material accounting policy information - continued
1.2 Consolidation
(a) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The
Group controls an entity when the Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity.
The existence and effect of potential voting rights that are currently exercisable or convertible are
considered when assessing whether the Group controls another entity. The Group also assesses
existence of control where it does not have more than 50% of the voting power but is able to govern
the financial and operating policies by virtue of de-facto control. De-facto control may arise in
circumstances where, for instance the size of the Group’s voting rights relative to the size and
dispersion of holdings of other shareholders give the Group the power to govern the financial and
operating policies. Subsidiaries are fully consolidated from the date on which control is transferred to
the Group. They are de-consolidated from the date that control ceases. The Group applies the
acquisition method of accounting to account for business combinations that fall within the scope of
IFRS 3, Business Combinations. The consideration transferred for the acquisition of a subsidiary is
the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree
and the equity interests issued by the Group. The consideration transferred includes the fair value
of any asset or liability resulting from a contingent consideration arrangement. A cquisition-related
costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities
assumed (identifiable net assets) in a business combination are measured initially at their fair values
at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-
controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate
share of the recognised amounts of the acquiree’s identifiable net assets.
Goodwill is initially measured as the excess of the consideration transferred, the amount of any non-
controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest
in the acquiree over the fair value of the identifiable net assets acquired. If this is less than the fair
value of the identifiable net assets of the subsidiary acquired in the case of a bargain purchase, the
difference is recognised directly in profit or loss.
Upon consolidation, inter-company transactions, balances and unrealised gains on transactions
between Group companies are eliminated. Unrealised losses are also eliminated but considered an
impairment indicator of the asset transferred. Accounting policies of subsidiaries are changed where
necessary to ensure consistency with the policies adopted by the Group.
In the Company’s separate financial statements, investments in subsidiaries are accounted for by the
cost method of accounting, i.e. at cost less impairment. Cost is adjusted to reflect changes in
consideration arising from contingent consideration amendments. Cost also includes directly
attributable costs of acquiring the investment. Provisions are recorded where, in the opinion of the
Directors, there is an impairment in value. Where there has been an impairment in the value of an
investment, it is recognised as an expense in the period in which the diminution is identified. The
results of subsidiaries are reflected in the Company’s separate financial statements only to the extent
of dividends receivable. On disposal of an investment, the difference between the net disposal
proceeds and the carrying amount is charged or credited to profit or loss.
(b) Disposal of subsidiaries
When the Group ceases to have control, any retained interest in the entity is remeasured to its fair
value at the date when control is lost, with the change in carrying amount recognised in profit or loss.
The fair value is the initial carrying amount for the purposes of subsequently accounting for the
retained interest as an associate, joint venture or financial asset. In addition, any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for as if the Group
had directly disposed of the related assets or liabilities. This may mean that amounts previously
recognised in other comprehensive income are reclassified to profit or loss.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
48
1. Summary of material accounting policy information - continued
1.2 Consolidation - continued
(c) Associates
Associates are all entities over which the Group has significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of the voting rights. Investments in
associates are accounted for using the equity method of accounting in the consolidated financial
statements. Under the equity method, the investment is initially recognised at cost, and the carrying
amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee
after the date of acquisition. The Group’s investment in associates includes goodwill identified on
acquisition.
If the ownership interest in an associate is reduced but significant influence is retained, only a
proportionate share of the amounts previously recognised in other comprehensive income is
reclassified to profit or loss where appropriate.
The Group’s share of post-acquisition profit or loss is recognised in the income statement, and its
share of post-acquisition movements in other comprehensive income is recognised in other
comprehensive income with a corresponding adjustment to the carrying amount of the investment.
When the Group’s share of losses in an associate equal or exceed its interest in the associate,
including any other unsecured receivables, the Group does not recognise further losses, unless it
has incurred legal or constructive obligations or made payments on behalf of the associate.
The Group determines at each reporting date whether there is any objective evidence that the
investment in the associate is impaired. If this is the case, the Group calculates the amount of
impairment as the difference between the recoverable amount of the associate and its carrying value
and recognises the amount adjacent to ‘share of profit/(loss) of associates’ in the income statement.
Profits and losses resulting from upstream and downstream transactions between the Group and its
associate are recognised in the Group’s financial statements only to the extent of unrelated investor’s
interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence
of an impairment of the asset transferred. Accounting policies of associates have been changed
where necessary to ensure consistency with the policies adopted by the Group.
Dilution gains and losses arising in investments in associates are recognised in the income
statement.
In the Company’s separate financial statements, investments in associates are accounted for by the
cost method of accounting, i.e. at cost less impairment. Provisions are recorded where, in the opinion
of the Directors, there is impairment in value. Where there has been impairment in the value of an
investment, it is recognised as an expense in the period in which the diminution is identified. The
results of the associate are reflected in the Company’s separate financial statements only to the
extent of dividends receivable. On disposal of an investment, the difference between the net disposal
proceeds and the carrying amount is charged or credited to profit or loss.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
49
1. Summary of material accounting policy information - continued
1.3 Foreign currency translation
(a) Functional and presentation currency
Items included in these 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 euro, which is the Company’s functional and presentation currency.
(b) 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.
1.4 Property, plant and equipment
All property, plant and equipment are initially recorded at historical cost.
Land and buildings are subsequently shown at fair value based on periodic, but at least triennial,
valuations by external independent valuers, less subsequent depreciation for buildings. Valuations
are carried out on a regular basis such that the carrying amount of property does not differ materially
from that which would be determined using fair values at the end of the reporting period. Any
accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount
of the asset, and the net amount is restated to the revalued amount of the asset.
All other property, plant and equipment is subsequently stated at historical cost less accumulated
depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly
attributable to the acquisition of the items. The cost of self-constructed assets includes the cost of
materials and direct labour, any other costs directly attributable to bringing the assets to a working
condition for their intended use, the costs of dismantling and removing the items and restoring the
site on which they are located, and capitalised borrowing costs. Purchased software that is integral
to the functionality of the related equipment is capitalised as part of that equipment.
Borrowing costs which are incurred for the purpose of acquiring or constructing a qualifying asset are
capitalised as part of its cost. Borrowing costs are capitalised while acquisition or construction is
actively underway. Capitalisation of borrowing costs is ceased once the asset is substantially
complete and is suspended if the development of the asset is suspended. Subsequent costs are
included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably.
The carrying amount of the replaced part is derecognised. All other repairs and maintenance are
charged to profit or loss during the financial period in which they are incurred.
Increases in the carrying amount arising on revaluation of land and buildings are credited to other
comprehensive income and shown as a revaluation reserve in shareholders’ equity. Decreases that
offset previous increases of the same individual asset are charged in other comprehensive income
and debited against the revaluation reserve directly in equity; all other decreases are charged to profit
or loss. Any subsequent increases are recognised in profit or loss up to the amount previously
charged to profit or loss, and then reflected in other comprehensive income and shown as a
revaluation reserve.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
50
1. Summary of material accounting policy information - continued
1.4 Property, plant and equipment - continued
Land is not depreciated as it is deemed to have an indefinite life. Depreciation on other assets is
calculated using the straight-line method to allocate their cost or revalued amounts to their residual
values over their estimated useful life. Leased assets are depreciated over the shorter of the lease
term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the
end of the lease term.
The rates of depreciation used for the current and comparative periods are as follows:
%
Buildings
1
Fixtures, furniture and fittings
4 - 15
Equipment
20 - 25
Motor vehicles
25
Improvements to premises:
Property leased out from Government
Up to 2028
Property leased out from other third parties
Over the period of the lease agreements
MaltaPost p.l.c. owned properties
Over 15 years
Assets in the course of construction and artefacts are not depreciated. Artefacts are not depreciated
since in the opinion of management, their residual value is not less than their original cost.
The asset’s residual values and useful lives are reviewed and adjusted if appropriate, at the end of
each reporting period. An asset’s carrying amount is written down immediately to its recoverable
amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 1.7).
Gains and losses on disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount and are recognised in profit or loss.
When revalued assets are sold, the amounts included in the revaluation reserve relating to the asset
are transferred to retained earnings.
1.5 Intangible assets
Computer software
The Group’s computer software comprises software purchased from third parties. Costs associated
with maintaining computer software programmes are recognised as an expense as incurred.
Development costs that are directly attributable to the design and testing of identifiable and unique
software products controlled by the Group are recognised as intangible assets when the following
criteria are met:
• it is technically feasible to complete the software product so that it will be available for use;
• management intends to complete the software product and use or sell it;
• there is an ability to use or sell the software product;
• it can be demonstrated how the software product will generate probable future economic
benefits;
• adequate technical, financial and other resources to complete the development and to use or
sell the software product are available; and
• the expenditure attributable to the software product during its development can be reliably
measured.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
51
1. Summary of material accounting policy information - continued
1.5 Intangible assets - continued
Computer software - continued
Directly attributable costs that are capitalised as part of the software product include the software
development employee costs and an appropriate portion of relevant overheads. Other development
expenditures that do not meet these criteria are recognised as an expense as incurred. Development
costs previously recognised as an expense are not recognised as an asset in a subsequent period.
Computer software development costs recognised as assets are amortised over their estimated
useful lives which is 4 years.
Leasehold rights on buildings
Leasehold rights are initially recognised at their acquisition cost and then amortised over their
estimated useful life, which does not exceed the expected lease period, on a straight-line basis.
1.6 Impairment of non-financial assets
Assets that have an indefinite useful life, for example goodwill or certain intangible assets, are not
subject to amortisation and are tested annually for impairment. Assets that are subject to 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 suffered impairment are reviewed for
possible reversal of the impairment at the end of each reporting period. Goodwill that forms part of
the carrying amount of an investment in a joint venture is not recognised separately, and therefore is
not tested for impairment separately. Instead, the entire amount of the investment in a joint venture
is tested for impairment as a single asset when there is objective evidence that the investment in a
joint venture may be impaired.
1.7 Financial assets
Classification
The Group classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through Other Comprehensive
Income, or through profit or loss); and
- those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows. For assets measured at fair value, gains and losses will either
be recorded in profit or loss or Other Comprehensive Income (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).
The Group reclassifies debt investments when and only when its business model for managing those
assets changes.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
52
1. Summary of material accounting policy information - continued
1.7 Financial assets - continued
Recognition and derecognition
The Group recognises a financial asset in its statement of financial position when it becomes a party
to the contractual provisions of the instrument.
Regular way purchases and sales of financial assets are recognised on settlement date, the date on
which an asset is delivered to or by the Group. 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 or has not retained control of the
asset.
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 (FVPL), transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at
FVPL are expensed in profit or loss.
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 finance income using the effective
interest rate method. 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 a separate line item in the statement of profit or loss,
subject to materiality.
• 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 finance income using the effective interest rate method. Foreign exchange gains and losses
are presented in other gains/(losses) and impairment losses are presented as a separate line
item in the statement of profit or loss.
• FVPL: assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL.
A gain or loss on a debt investment that is subsequently measured at FVPL is recognised in
profit or loss and presented net within other gains/(losses) in the period in which it arises.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
53
1. Summary of material accounting policy information - continued
1.7 Financial assets - 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. Dividends from such investments continue to be recognised in profit
or loss when the Group’s right to receive payments is established.
Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the
income statement as applicable. Impairment losses (and reversal of impairment losses) on equity
investments measured at FVOCI are not reported separately from other changes in fair value.
Impairment
The Group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.
For trade receivables and contract assets, the Group applies the simplified approach permitted by
IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the
receivables.
For all other financial assets that are subject to impairment under IFRS 9, 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 expected credit loss measured at amount equal to the portion
of lifetime expected credit loss that results from default events possible within the next 12 months, or
until contractual maturity if shorter. If the Group identifies a significant increase in credit risk since
initial recognition, the asset is transferred to stage 2 and its expected credit loss is measured on a
lifetime basis, that is up until contractual maturity. If the Group determines that a financial asset is
credit impaired, the asset is transferred to stage 3 and the expected credit loss is measured on a
lifetime credit loss basis.
1.8 Inventories
Inventories are stated at the lower of cost and net realisable value. The cost of postal stationery and
inventories for resale is determined by a weighted average basis, and other inventory items by a first-
in first-out method. The cost of inventories comprises the invoiced value of goods sold and in general
includes transport and handling costs. Net realisable value is the estimate of the selling price in the
ordinary course of business, less the costs of completion and selling expenses.
1.9 Trade and other receivables
Trade receivables comprise amounts due from customers for merchandise sold or 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.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
54
1. Summary of material accounting policy information - continued
1.9 Trade and other receivables - continued
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method, less expected credit loss allowances in accordance with
accounting policy 1.7. The carrying amount of the asset is reduced through the use of an allowance
account, and the amount of the loss is recognised in profit or loss.
When a receivable is uncollectible, it is written off against the allowance account for trade and other
receivables. Subsequent recoveries of amounts previously written off are credited in profit or loss.
1.10 Cash and cash equivalents and deposits with financial institutions
Cash and cash equivalents and deposits with financial institutions are carried in the statement of
financial position at face value. In the statement of cash flows, cash and cash equivalents includes
cash in hand and deposits held at call with banks, whereas deposits which exceed the three-month
term are classified and presented as deposits with financial institutions.
1.11 Share capital and share premium
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
ordinary shares are shown in equity as a deduction, net of tax, from the proceeds. When shares are
issued at a premium, the difference between the proceeds and the share’s par value is recognised
in a share premium reserve.
1.12 Financial liabilities
The Group recognises a financial liability in its statement of financial position when it becomes a party
to the contractual provisions of the instrument. Financial liabilities are recognised initially at fair value,
being the fair value of consideration received, net of transaction costs that are directly attributable to
the acquisition or the issue of the financial liability. These other liabilities are subsequently measured
at amortised cost.
The Group derecognises a financial liability from its statement of financial position when the obligation
specified in the contract or arrangement is discharged, is cancelled or expires.
1.13 Trade and other payables
Trade payables comprise obligations to pay for goods or services that have been acquired in the
ordinary course of business from suppliers. Accounts payable are classified as current liabilities if
payment is 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 liabilities.
Trade and other payables are recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
55
1. Summary of material accounting policy information - continue d
1.14 Borrowings
Borrowings are recognised initially at the fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortised cost; any difference between the proceeds (net of transaction
costs) and the redemption value is recognised in profit or loss over the period of the borrowings using
the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer
settlement of the liability for at least twelve months after the reporting date.
1.15 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial
position when there is a legally enforceable right to set off the recognised amounts and there is an
intention to settle on a net basis, or realise the asset and settle the liability simultaneously.
The Group has agreements in place with third parties to collect, through the Group’s outlet network,
amounts due to these third parties owed by their customers. Any amounts collected in respect of
these agreements are retained by the Group until settlement with the respective third parties, during
which time the Group is exposed to the risks and rewards emanating from the amounts collected.
Such amounts are therefore presented within assets with a corresponding liability towards the third
party presented within trade and other payables.
1.16 Current and deferred tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or
loss, except to the extent that it relates to items recognised in other comprehensive income or directly
in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity,
respectively.
Deferred tax is recognised, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. However,
deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred
tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other
than a business combination that at the time of the transaction affects neither accounting nor taxable
profit or loss. Deferred tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period and are expected to apply when the related
deferred tax asset is realised or the deferred tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilised. Deferred income tax
assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income tax assets and liabilities relate to income
taxes levied by the same taxation authority on either the same taxable entity or different taxable
entities where there is an intention to settle the balances on a net basis.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
56
1. Summary of material accounting policy information - continued
1.17 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result
of past events, when it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, and when a reliable estimate of the amount of the obligation can be
made.
Provisions are measured at the present value of the expenditures expected to be required to settle
the obligation using a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the obligation.
The Company provides for the obligation arising in terms of Article 8A of the Pensions Ordinance,
Cap 93 of the laws of Malta, covering those ex-Government employees who opted to become full-
time employees of the Company, and who continued to be entitled to pension rights which go
beyond the National Insurance Scheme.
The liability recognised in the statement of financial position is the present value of the defined benefit
obligation at the end of the reporting period. A defined benefit obligation is calculated annually using
the projected unit credit method. The present value of a defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rate yields of Government bonds that
have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions
are charged or credited to equity in other comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in profit or loss.
1.18 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of services
in the ordinary course of the Group’s activities. Revenue is shown net of sales taxes and discounts
and is included in the financial statements as revenue. It comprises revenue directly received from
customers, commissions earned on postal and non-postal transactions and income from foreign
outbound mail receivable from foreign postal administrators. Revenue is recognised as follows:
income from sale of stamps, commissions earned on postal and non-postal transactions and from
foreign inbound mail is recognised when the service is rendered. Allowance is made for the assessed
amount of revenue from prepaid product sales at the reporting date for which the service has not yet
been provided.
IFRS 15 requires that at contract inception the goods or services promised in a contract with a
customer are assessed and each promise to transfer to the customer the good or service is identified
as a performance obligation. Promises in a contract can be explicit or implicit if the promises create
a valid expectation to provide a good or service based on the customary business practices,
published policies, or specific statements.
A contract asset must be recognised if the Company recorded revenue for fulfillment of a contractual
performance obligation before the customer paid consideration or before – irrespective of when
payment is due – the requirements for billing and thus the recognition of a receivable exist.
A contract liability must be recognised when the customer paid consideration or a receivable from
the customer is due before the Company fulfilled a contractual performance obligation and thus
recognised revenue.
Multiple-element arrangements involving the delivery or provision of multiple products or services
must be separated into distinct performance obligations, each with its own separate revenue
contribution that is recognised as revenue on fulfillment of the obligation to the customer. The total
transaction price of a bundled contract is allocated among the individual performance obligations
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
57
1. Summary of material accounting policy information - continued
1.18 Revenue recognition - continued
based on their relative – possibly estimated – stand-alone selling prices, i.e., based on a ratio of the
stand-alone selling price of each separate element to the aggregated stand-alone selling prices of
the contractual performance obligations.
A contract modification exists where the Group and the customer approve a modification that either
creates new, or changes existing, enforceable rights and obligations of both parties. The Group
accounts for a contract modification as a separate contract where the scope of the contract increases
because of the addition of distinct promised services, and the price of the contract increases by an
amount of consideration that reflects the stand-alone selling price of those additional promised
services. A modification that is not accounted for as a separate contract is accounted for as an
adjustment to the existing contract, either prospectively or through a cumulative catch-up adjustment,
depending on whether the remaining goods or services to be provided to the customer under the
modified contract are distinct.
The Group measures revenue on a basis that reflects the amount of consideration that it expects to
be entitled to; this measurement of revenue is however limited to amounts to which the Group has
enforceable rights, and it excludes amounts collected on behalf of third parties.
Revenue is recognised when the Group satisfies a performance obligation, which occurs when it
transfers control of a promised good or service to a customer. Control of a promised good or service
is transferred to a customer when the customer is able to direct the use of the promised good or
service. A performance obligation is satisfied at a point in time unless it meets certain criteria that
indicate that it is satisfied over time.
Management has determined that none of the Group’s contracts with customers contain a significant
financing component as the period between the recognition of revenue and the payment due date is
of less than one year.
Other income is recognised as follows:
(a) finance income is recognised as it accrues on a time proportion basis using the effective interest
method, unless collectability is in doubt;
(b) dividend income is recognised when the right to receive payment is established.
1.19 Customer contract assets and liabilities
The timing of revenue recognition may differ from customer invoicing. Trade receivables presented
in the statement of financial position represent an unconditional right to receive consideration
(primarily cash), i.e. the services and goods promised to the customer have been transferred.
By contrast, contract assets mainly refer to amounts allocated per IFRS 15 as compensation for
goods or services provided to customers for which the right to collect payment is subject to providing
other services or goods under that same contract. Contract assets, like trade receivables, are subject
to impairment for credit risk. The recoverability of contract assets is also verified, especially to cover
the risk of impairment should the contract be interrupted.
Contract liabilities represent amounts paid by customers before receiving the goods and/or services
promised in the contract. This is typically the case for advances received from customers or amounts
invoiced and paid for goods or services not transferred yet, such as contracts payable in advance or
prepaid stamps (previously recognised in deferred income).
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
58
1. Summary of material accounting policy information - continued
1.20 Government grants
Grants from Government are recognised at their fair value where there is a reasonable assurance
that the grant will be received, and the Group will comply with all attached conditions.
Government grants relating to costs are deferred and recognised in the income statement over the
period necessary to match them with the costs that they are intended to compensate.
Government grants relating to property, plant and equipment are included in non-current liabilities as
deferred government grants and are credited to profit or loss on a straight-line basis over the expected
lives of the related assets.
1.21 Leases
The Group is the lessee
At inception of a contract, an entity shall assess whether the 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.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the
leased asset is available for use by the Group.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease
liabilities include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payments that are based on an index or a rate, initially measured using the index
or rate as at the commencement date;
• amounts expected to be payable by the Group under residual value guarantees;
• the exercise price of a purchase option if the Group is reasonably certain to exercise that
option; and
• payments of penalties for terminating the lease, if the lease term reflects the Group exercising
that option.
Lease payments to be made under reasonably certain extension options are also included in the
measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be
readily determined, which is generally the case for leases in the Group, the lessee’s incremental
borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use asset in a similar economic
environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Group:
• where possible, uses recent third-party financing received by the lessee as a starting point,
adjusted to reflect changes in financing conditions since third party financing was received;
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for
leases held by the Group, where there is no third-party financing; and
• makes adjustments specific to the lease, e.g. term, country, currency and security.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
59
1. Summary of material accounting policy information - continued
1.21 Leases - continued
Lease payments are allocated between principal and finance cost. The finance cost is charged to
profit or loss over the lease period so as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives
received; and
• any initial direct costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease
term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the
right-of-use asset is depreciated over the underlying asset’s useful life.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value
assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are
leases with a lease term of 12 months or less. In determining the lease term, management considers
all facts and circumstances that create an economic incentive to exercise an extension option, or not
exercise a termination option. Extension options (or periods after termination options) are only
included in the lease term if the lease is reasonably certain to be extended (or not terminated).
For leases of properties, the following factors are normally the most relevant:
• if there are significant penalties to terminate (or not extend), the Group is typically reasonably
certain to extend (or not terminate);
• if any leasehold improvements are expected to have a significant remaining value, the Group is
typically reasonably certain to extend (or not terminate);
• otherwise, the Group considers other factors including historical lease durations and the costs
and business disruption required to replace the leased asset.
The lease term is reassessed if an option is actually exercised (or not exercised) or the Group
becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only
revised if a significant event or a significant change in circumstances occurs, which affects this
assessment, and that is within the control of the lessee.
The Group is the lessor
Operating leases
Assets leased out under operating leases are included in property, plant and equipment in the
statement of financial position and are accounted for in accordance with Note 1.4. They are
depreciated over their expected useful lives on a basis consistent with similar owned property, plant
and equipment. Rental income from operating leases is recognised in profit or loss on a straight-line
basis over the lease term.
1.22 Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s
financial statements in the period in which the dividends are approved by the Company’s
shareholders.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
60
1. Summary of material accounting policy information - continued
1.22 Dividends - continued
The Company measures a liability to distribute non-cash assets as a dividend to its owners at the fair
value of the assets to be distributed. Upon settlement of the dividend payable the Company
recognises the difference between the carrying amount of the assets to be distributed and the carrying
amount of the dividend payable in profit or loss.
1.2 3 Earnings per share
The Company presents earnings per share (EPS) data for its ordinary shares. EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the period.
2. Financial risk management
2.1 Financial risk factors
The Group’s activities potentially expose it to a variety of financial risks: market risk (including
currency risk, fair value interest rate risk, cash flow interest rate risk), credit risk and liquidity risk. The
Group’s overall risk management focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the financial performance.
The Board provides principles for overall risk management, as well as policies covering specific
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial
instruments and non-derivative financial instruments, and investment of excess liquidity.
(a) Market risk
(i) Foreign exchange risk
Foreign exchange risk arises from future commercial transactions and recognised assets and
liabilities which are denominated in a currency that is not the functional currency.
The Group is exposed to foreign exchange risk arising primarily from the Group’s sales and
purchases attributable to its postal activities, a part of which are denominated in Special Drawing
Rights (SDR). This currency based on a basket of major currencies including the U.S. dollar, euro,
Chinese renminbi, Japanese yen, and British pound sterling, and used to supplement member
countries' official reserves.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
61
2. Financial risk management - continued
2.1 Financial risk factors - continued
The table below summarises the main exposure to foreign currencies analysing the exposure of
assets and liabilities by foreign currency, focusing on invoiced amounts:
Group and Company
2024
2023
€’000
€’000
Financial assets
Trade receivables
SDR
3,362
1,992
Financial liabilities
Trade payables
SDR
(3,898)
(5,161)
Net exposure to foreign currency risk
(536)
(3,169)
Management does not deem the Group’s exposure to foreign currencies reflected in the table above
to be significant. Foreign exchange risk is not considered significant, taking cognisance of the impact
of exchange fluctuations on the net financial exposures as at the reporting dates and the staged short
settlement periods for both assets and liabilities denominated in SDR. A sensitivity analysis for foreign
exchange risk disclosi ng how profit or loss and equity would have been affected by changes in foreign
exchange rates that were reasonably possible at the end of the reporting periods is not accordingly
deemed necessary.
(i) Cash flow and fair value interest rate risk
The Group’s interest rate risk arises principally from term deposits (subject to fixed interest rates),
fixed income debt securities and cash and cash equivalents (subject to floating interest rates). Assets
earning interest at variable rates expose the Group to cash flow interest rate risk whereas assets
earning interest at fixed rates expose the Group to fair value interest rate risk.
The Group’s fixed income debt securities, categorised as financial assets at fair value through other
comprehensive income, consist principally of corporate and Government debt securities, and
constitute the Group’s only financial instruments carried at fair value.
Management does not consider cash flow and fair value interest rate risk to be significant in view of
the nature and terms of the instruments highlighted above. Accordingly, a sensitivity analysis for this
risk disclosing how profit or loss and equity would have been affected by changes in interest rates
that were reasonably possible at the end of the reporting period is not deemed necessary.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
62
2. Financial risk management - continued
2.1 Financial risk factors - continued
(b) Credit risk
Credit risk arises from cash and cash equivalents, deposits with banks, financial investments, as well
as credit exposures to customers including outstanding receivables and committed transactions. The
carrying amount of the financial assets represents the maximum credit exposure.
The maximum exposure to credit risk at the reporting date was:
Notes
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Financial assets:
At fair value through other comprehensive
income:
Debt securities
9
2,133
2,265
2,133
2,265
At amortised costs:
Trade and other receivables
12
9,726
8,227
9,293
7,712
Deposits with financial institutions
13
2,900
2,500
2,900
2,500
Cash and cash equivalents
14
5,052
4,368
4,080
3,241
Business of insurance accounts
14
117
347
45
18
17,795
17,707
16,318
15,736
The maximum exposure to credit risk at the reporting date as reflected by the carrying amount of
financial investments, credit exposures to customers and cash and cash equivalents is disclosed in
the table above and the respective notes to the financial statements. The figures disclosed in the
table above in respect of trade and other receivables exclude prepayments and indirect taxation.
Financial assets at fair value through other comprehensive income
The Group’s financial investments comprise listed sovereign debt securities having a carrying amount
of €1.2 million (2023: €1.4 million) with a credit rating of A, as well as listed debt securities issued by
corporates having a carrying amount of €0.5 million (2023: €0.5 million) with a credit rating of BBB.
The remaining investments in listed debt instruments issued by local corporates with a carrying
amount of €0.4 million (2023: €0.4 million) are unrated. Low credit risk simplification is applied for
listed sovereign debt securities. Other listed debt securities are considered by the Directors to have
low credit risk as the probability of default is considered to be close to zero as the counterparties
have a strong capacity to meet their contractual obligations in the near term. As a result, financial
assets at fair value through other comprehensive income are classified under Level 1 and no loss
allowance has been recognised based on 12-month expected credit loss, as any such impairment
would be wholly insignificant to the Group and the Company.
Deposits with financial institutions, Cash and cash equivalents and Business of insurance accounts
Entities forming part of the Group principally bank with local and European financial institutions with
high-quality standing or rating. Balances are primarily callable on demand or within a maximum period
of 1 week. Low credit risk simplification is applied and the Directors consider the probability of default
to be close to zero as the counterparties have a strong capacity to meet their contractual obligations
in the near term. As a result, no loss allowance has been recognised based on 12-month expecte d
credit loss as any such impairment would be wholly insignificant to the Group and the Company.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
63
2. Financial risk management - continued
2.1 Financial risk factors - continued
Amounts owed by related parties
The Group’s receivables include amounts owed by related parties (Note 12). The Group monitors
credit exposures with related parties at an individual entity level on a regular basis and ensures timely
performance of these assets in the context of overall Group liquidity management. The Group
assesses the credit quality of these related parties taking into account financial position, performance
and other factors. The Group takes cognisance of the related party relationship with these entities
and management does not expect any significant losses from non-performance or default.
Expected credit losses, based on the assumption that repayment of the balance is on demand, are
deemed to be insignificant to the Group and the Company.
Trade and other receivables (including contract assets)
The Group assesses the credit quality of its customers taking into account financial position, past
experience and other factors. It has policies in place to ensure that sales of products and services
are a ffected to customers with an appropriate credit history in the case of credit sales. Sales to retail
customers are effected in cash.
Standard credit terms are in place for individual clients, however, wherever possible, new corporate
customers are analysed individually for creditworthiness before the Group’s standard payment and
service delivery terms and conditions are offered. The Group establishes an allowance for impairment
that represents its estimate of incurred losses in respect of trade and other receivables. This
allowance represents specific provisions against individual exposures.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses
a lifetime expected loss allowance for all trade receivables and contract assets. To measure the
expected credit losses, trade receivables and contract assets have been grouped based on shared
credit risk characteristics and the days past due. Contract assets have substantially the same risk
characteristics as the trade receivables for the same types of contracts.
The Group monitors the performance of its financial assets on a regular basis to identify incurred
collection losses which are inherent in the Group’s receivables taking into account historical
experience in collection of accounts receivable.
The expected loss rates are based on the payment profiles of sales over a period of time before the
reporting date and the corresponding historical credit losses experienced within this period. 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. The Group adjusts the historical
loss rates based on expected changes in these factors. Credit loss allowances include specific
provisions against credit impaired individual exposures with the amount of the provisions being
equivalent to the balances attributable to credit impaired receivables.
On that basis the loss allowance for the Group as at 30 September was determined by applying an
expected loss rate ranging from 6.24% to 12.12% (2023: 6.24% to 12.12%)on all credit sales
generated in the preceding year prior to 30 September resulting in a loss allowance of €203,000
(2023: €91,000) for the Group and €197,000 (2023: €20,000) for the Company.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
64
2. Financial risk management - continued
2.1 Financial risk factors - continued
(b) Credit risk - continued
As at 30 September 202 4 the Group was exposed to concentration of credit risk with 48% (2023:
51%) of its trade receivables being attributable to six (2023: to five) postal administrators. The Group
assesses the credit quality of these administrators by taking into account financial position,
performance and other factors. The Group also takes cognisance of the fact that balances with postal
administrators in respect of terminal dues are generally cleared and settled through a central clearing
house which acts as a credit risk mitigant. Trade receivables include €3.8 million (2023: €4.0 million)
terminal due receivables.
The Group established an allowance for impairment that represented its estimate of expected credit
losses in respect of trade receivables. The individually credit impaired trade receivables mainly relate
to a number of independent customers which are in unexpectedly difficult economic situations and
which are accordingly not meeting repayment obligations. Hence, provisions for impairment in respect
of credit impaired balances with corporate trade customers relate to entities which are in adverse
trading and operational circumstances.
As at 30 September 2024, the Group and the Company had trade receivables amounting to
€8,014,800 (2023: €5,941,000) and €7,424,800 (2023: €5,688,000) respectively which were fully
performing whilst trade receivables amounting to €309,000 (2023: €431,000) and €306,000 (2023:
€257,000) were past due but not impaired. These dues relate to a number of independent parties for
whom there is no recent history of default. Trade receivable amounting to €139,000 (202 3: €272,000)
for the Group and €136,000 (2023: €98,000) for the Company were overdue by at least three months,
whereas €170,000 (2023: €159,000) were overdue by at least nine months for the Group and the
Company. The movement in provisions for credit loss in respect of trade receivables during the year
was as follows:
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
At beginning of year
91
145
20
73
Increase/(decrease) in provisions
112
(54)
177
(53)
At end of year
203
91
197
20
Reversals of provisions of impaired receivables arise in those situations where customers recover
from unfavourable circumstances and accordingly start meeting repayment obligations.
The Group does not hold any significant collateral as security in respect of the credit impaired assets.
The movements in credit loss allowances of these receivables are disclosed above.
Trade receivables and contract assets 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 debtor to engage in a repayment plan with the Group, and a failure to make contractual
payments for a period of greater than a year past due.
Credit losses on trade receivables and contract assets are presented as net expected credit losses
and other impairment charges within operating profit. Subsequent recoveries of amounts written off
are credited against the same line item.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
65
2. Financial risk management - continued
2.1 Financial risk factors - continued
(b) Credit risk - continued
The Group considered that there was evidence of impairment if any of the following indicators were
present:
• significant financial difficulties of the debtor;
• probability that the debtor will enter bankruptcy or financial reorganisation; and
• default or late payments.
Receivables for which an expected credit loss provision was recognised were written off against the
provision when there was no expectation of recovering additional cash.
(c) Liquidity risk
The Group is exposed to liquidity risk in relation to meeting future obligations associated with its
financial liabilities, which comprise principally lease liabilities and trade and other payables (Notes 1 7
and 19). Prudent liquidity risk management includes maintaining sufficient cash and committed credit
lines to ensure the availability of an adequate amount of funding to meet the Group’s obligations.
Management monitors liquidity risk by means of cash flow forecasts on the basis of expected cash
flows over a twelve-month period and ensures that adequate financing facilities are in place for the
coming year. The carrying amounts of the Group’s assets and liabilities are analysed into relevant
maturity groupings based on the remaining period at the end of the reporting period to the contractual
maturity date in the respective notes to the financial statements, where deemed applicable.
The Group’s liquidity risk is not deemed material in view of the matching of cash inflows and outflows
arising from expected maturities of financial instruments, coupled with financing facilities that it can
access to meet liquidity needs. The Group’s trade and other payables are entirely repayable within
one year from the end of the reporting period.
Group
Carrying
Contractual
Within
1 to 2
2 to 5
After 5
amount
cash flows
1 year
years
years
years
€000
€000
€000
€000
€000
€000
Lease liabilities
2,270
2,734
331
333
811
1,259
Trade and other payables
13,246
13,246
13,246
-
-
-
30 September 2024
15,516
15,980
13,577
333
811
1,259
Lease liabilities
1,730
2,070
352
265
598
855
Trade and other payables
13,851
13,851
13,851
-
-
-
30 September 2023
15,581
15,921
14,203
265
598
855
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
66
2. Financial risk management - continued
(c) Liquidity risk - continued
Company
Carrying
Contractual
Within
1 to 2
2 to 5
After 5
amount
cash flows
1 year
years
years
years
€000
€000
€000
€000
€000
€000
Lease liabilities
2,270
2,734
331
333
811
1,259
Trade and other payables
12,599
12,599
12,599
-
-
-
30 September 2024
14,869
15,333
12,930
333
811
1,259
Lease liabilities
1,730
2,070
352
265
598
855
Trade and other payables
12,577
12,577
12,577
-
-
-
30 September 2023
14,307
14,647
12,929
265
598
855
2.2 Capital risk management
Capital is managed by reference to the level of the Company's equity and borrowings or debt as
disclosed in the financial statements of the Company. The Group’s objectives when managing capital
are to safeguard the Company’s ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to
reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may issue
new shares or adjust the amount of dividends paid to shareholders.
The Group’s equity, as disclosed in the statement of financial position, constitutes its capital. The
Group maintains the level of capital by reference to its financial obligations and commitments arising
from operational requirements. In view of the nature of the Company’s activities and the extent of
borrowings or debt, the capital level as at the end of the reporting period is deemed adequate by the
Directors.
2.3 Fair values of financial instruments
In accordance with IFRS 7, for financial instruments that are measured in the statement of financial
position at fair value, disclosure of fair value measurements by level of the following fair value
measurement hierarchy is required:
• quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
• inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2);
• inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs) (Level 3).
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
67
2. Financial risk management - continued
2.3 Fair values of financial instruments - continued
Group and
Company
Level 1
2024
2023
Assets
€’000
€’000
Financial assets at fair value through other comprehensive income:
Debt securities (Note 9)
2,133
2,265
The fair value of financial assets at fair value through other comprehensive income which are traded
in active markets, is based on quoted market prices at the reporting date. The quoted market price
used for financial assets held by the entity is the current bid price.
The carrying amounts of cash and cash equivalents, term placements, receivables (net of impairment
provisions) and payables are assumed to approximate their fair values in view of the short-term nature
of the instruments.
3. Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and based on historical experience and other
factors including expectations of future events that are believed to be reasonable under the
circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. These estimates and
assumptions present a risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year. The Group’s management also makes judgements, apart
from those involving estimations, in the process of applying the entity's accounting policies that may
have a significant effect on the amounts recognised in the financial statements.
The Group’s land and buildings category of property, plant and equipment is fair valued on the basis
of professional advice, which considers current market prices for the properties. Fair valuation of
property requires the extensive use of judgement and estimates.
Assessment of matters referred to above
In the opinion of the Directors, the accounting estimates and judgements made in the course of
preparing these consolidated financial statements, which have been highlighted above, are not
difficult, subjective or complex to a degree which would warrant their description as critical in terms of
the requirements of IAS 1.
The Directors also draw attention to the fact that there are no assumptions and other major sources
of estimation uncertainty at the end of the reporting period, that have a significant risk of resulting in
a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
68
4. Property, plant and equipment
Group
Improvements
Fixtures,
Land and
to leasehold
furniture
Motor
buildings
properties
and fittings
Equipment
vehicles
Total
€’000
€’000
€’000
€’000
€’000
€’000
At 1 October 2023
Cost or valuation
18,040
1,627
7,142
6,770
1,373
34,952
Accumulated depreciation
(69)
(994)
(4,241)
(6,119)
(668)
(12,091)
Net book amount
17,971
633
2,901
651
705
22,861
Year ended
30 September 2023
Opening net book amount
17,971
633
2,901
651
705
22,861
Additions
3
8
205
191
680
1,087
Disposals and write-offs
-
-
-
-
(24)
(24)
Depreciation
(73)
(154)
(271)
(271)
(357)
(1,126)
Depreciation released on
disposals and write-offs
-
-
-
-
24
24
Closing net book amount
17,901
487
2,835
571
1,028
22,822
At 30 September 2023
Cost or valuation
18,043
1,635
7,347
6,961
2,029
36,015
Accumulated depreciation
(142)
(1,148)
(4,512)
(6,390)
(1,001)
(13,193)
Net book amount
17,901
487
2,835
571
1,028
22,822
Year ended
30 September 2024
Opening net book amount
17,901
487
2,835
571
1,028
22,822
Additions
24
-
109
534
859
1,526
Disposals and write-offs
-
-
(99)
(281)
-
(380)
Depreciation
(497)
(137)
(264)
(298)
(423)
(1,619)
Depreciation released on
disposals and write-offs
-
-
99
281
-
380
Revaluation surplus arising
during the year:
Effect on cost or valuation
1,257
-
-
-
-
1,257
Effect on accumulated
depreciation
639
-
-
-
-
639
Closing net book amount
19,324
350
2,680
807
1,464
24,625
At 30 September 2024
Cost or valuation
19,324
1,635
7,357
7,214
2,888
38,418
Accumulated depreciation
-
(1,285)
(4,677)
(6,407)
(1,424)
(13,793)
Net book amount
19,324
350
2,680
807
1,464
24,625
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
69
4. Property, plant and equipment - continued
Company
Improvements
Fixtures,
Land and
to leasehold
furniture
Motor
buildings
properties
and fittings
Equipment
vehicles
Total
€’000
€’000
€’000
€’000
€’000
€’000
At 1 October 2023
Cost or valuation
18,040
1,479
6,985
6,513
1,373
34,390
Accumulated depreciation
(69)
(989)
(4,167)
(5,870)
(668)
(11,763)
Net book amount
17,971
490
2,818
643
705
22,627
Year ended
30 September 2023
Opening net book amount
17,971
490
2,818
643
705
22,627
Additions
3
8
205
189
680
1,085
Disposals and write-offs
-
-
-
-
(24)
(24)
Depreciation
(73)
(129)
(258)
(268)
(357)
(1,085)
Depreciation released on
disposals and write-offs
-
-
-
-
24
24
Closing net book amount
17,901
369
2,765
564
1,028
22,627
At 30 September 2023
Cost or valuation
18,043
1,487
7,190
6,702
2,029
35,451
Accumulated depreciation
(142)
(1,118)
(4,425)
(6,138)
(1,001)
(12,824)
Net book amount
17,901
369
2,765
564
1,028
22,627
Year ended
30 September 2024
Opening net book amount
17,901
369
2,765
564
1,028
22,627
Additions
24
-
108
534
859
1,525
Disposals and write-offs
-
-
(99)
(57)
-
(156)
Depreciation
(497)
(113)
(251)
(294)
(423)
(1,578)
Depreciation released on
disposals and write-offs
-
-
99
57
-
156
Revaluation surplus arising
during the year:
Effect on cost or valuation
1,257
-
-
-
-
1,257
Effect on accumulated
depreciation
639
-
-
-
-
639
Closing net book amount
19,324
256
2,622
804
1,464
24,470
At 30 September 2024
Cost or valuation
19,324
1,487
7,199
7,179
2,888
38,077
Accumulated depreciation
-
(1,231)
(4,577)
(6,375)
(1,424)
(13,607)
Net book amount
19,324
256
2,622
804
1,464
24,470
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
70
4. Property, plant and equipment - continued
Property, plant and equipment includes assets relating to the Company’s postal museum as
follows:
Group and Company
2024
2023
€’000
€’000
Year ended 30 September
Opening carrying amount
2,845
2,842
Additions
845
671
Depreciation
(675)
(668)
Closing net book amount
3,015
2,845
At 30 September
Land and buildings
2,170
1,979
Furniture, fittings, artefacts and exhibits
845
866
Net book amount
3,015
2,845
Fair valuation of property
The land and buildings within property, plant and equipment were revalued on 30 September 2024
by an independent firm of property valuers having appropriate recognised professional qualifications
and experience in the location and category of the property being valued. Management had reviewed
the carrying amounts of the properties as at 30 September 2024, on the basis of the assessments
carried out by the independent property valuers. Adjustments to the carrying amounts were deemed
necessary and accordingly recognised during the current financial year amounted to €1,896,000.
Valuations were made on the basis of open market value taking cognisance of the specific location
of the properties, the size of the sites together with their development potential, the availability of
similar properties in the area, and whenever possible, having regard to recent market transactions
for similar properties in the same location.
The Group is required to analyse non-financial assets carried at fair value by level of the fair value
hierarchy within which the recurring fair value measurements are categorised in their entirety (Level
1, 2 or 3). The different levels of the fair value hierarchy have been defined as fair value
measurements using:
• quoted prices (unadjusted) in active markets for identical assets (Level 1);
• inputs other than quoted prices included within Level 1 that are observable for the asset, either
directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2);
• inputs for the asset that are not based on observable market data (that is, unobservable inputs)
(Level 3).
The Group’s land and buildings, within property, plant and equipment, comprise the head office, mail
delivery hubs and retail outlets. All the recurring property fair value measurements use significant
unobservable inputs and are accordingly categorised within Level 3 of the fair valuation hierarchy.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
71
4. Property, plant and equipment - continued
Fair valuation of property - continued
The Group’s policy is to recognise transfers into and out of fair value hierarchy levels as of the
beginning of the reporting period. There were no transfers between different levels of the fair value
hierarchy during the year ended 30 September 2023 and 30 September 2024.
A reconciliation from the opening balance to the closing balance of land and buildings for recurring
fair value measurements categorised within Level 3 of the value hierarchy, is reflected in the table
above.
The changes during the year are mainly attributable to additions, revaluation surplus and depreciation
charge.
Valuation processes
The valuation of the properties is performed regularly on the basis of valuation reports prepared by
independent and qualified valuers. These reports are based on both:
• information provided by the Group which is derived from the Group’s financial systems and is
subject to the Group’s overall control environment; and
• assumptions and valuation models used by the valuers – the assumptions are typically market
related. These are based on professional judgement and market observation.
The information provided to the valuers, together with the assumptions and the valuation models
used by the valuers, are reviewed by the Chief Financial Officer (CFO). This includes a review of fair
value movements. When the CFO considers that the valuation report is appropriate, the valuation
report is recommended to the Audit and Risk Committee. The Audit and Risk Committee considers
the valuation report as part of its overall responsibilities.
At the end of every reporting period, the CFO assesses whether any significant changes or
developments have been experienced since the last external valuation. This is supported by an
assessment performed by the independent firm of property valuers. The CFO reports to the Audit
and Risk Committee on the outcome of this assessment.
Valuation techniques
The external valuations of the Level 3 property have been performed using an adjusted sales
comparison approach for the land component and the replacement cost approach for the buildings
component.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
72
4. Property, plant and equipment - continued
Valuation techniques - continued
In view of a limited number of similar sales in the local market, the valuations have predominantly
been performed using unobservable inputs. The significant input to the adjusted sales comparison
approach is generally a sales price per square metre related to transactions in comparable properties
located in proximity to the Group’s property, with adjustments for differences in the size, age, exact
location and condition of the property. The significant input to the replacement cost approach is the
estimated development costs per square metre.
Information about fair value measurements using significant unobservable inputs (Level 3)
At 30 September 2024 and 2023
Group and Company
Range of
unobservable
Significant
inputs
Description by class based
Valuation
unobservable
(weighted
on highest and best use
Fair value
technique
input
average)
€
€
Cu
rrent use as office
premises, retail outlets and
mail delivery hubs
19.3 million
(2023: 18.0 million)
Adjusted
sales
comparison
approach
Sales price
per square
metre
1,500 - 6,900
(2023: 1,200 -
4,400)
The valuations of the Level 3 property have been performed using a market value approach based
on an average sales price per square metre. This is considered by management and the board of
directors to be the most appropriate valuation method for the Company’s properties.
The higher the sales price per square metre the higher the resultant fair valuation. The highest and
best use of the properties referred to above is equivalent to their current use.
The Group’s improvements to premises not owned by the Group, with a carrying amount of €85 1,000
(2023: €881,000), have not been included in the analysis above.
If the land and buildings were stated on the historical cost basis, the carrying amounts would be as
follows:
Group and Company
2024
2023
€’000
€’000
Cost
13,804
13,781
Accumulated depreciation
(656)
(594)
Net book amount
13,148
13,187
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
73
5. Right-of-use assets
The Group leases 29 properties for periods ranging between 4 to 30 years and 18 motor vehicles for
a period of 5 years. 4 of the rental contracts have extension options for an average of a 6 year term,
to renew the lease after the original period. The average remaining lease term for properties ranges
between 3 to 25 years. Lease terms are negotiated on an individual basis and contain a range of
different terms and conditions. The lease agreements do not impose any covenants and the lease
assets may not be used as security for borrowing purposes. The statement of financial position
reflects the following assets relating to leases:
Group and Company
2024
2023
€’000
€’000
Properties
2,210
1,587
Motor vehicles
12
74
Total right-of-use assets
2,222
1,661
The movement in the carrying amount of these assets is analysed in the following table:
Group and Company
2024
2023
€’000
€’000
At beginning of year
1,661
1,343
Impact of reassessment of lease term, reflecting inclusion of extension
period
857
521
Additions
-
90
Depreciation
(296)
(293)
At end of year
2,222
1,661
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
74
6. Intangible assets
Group
Leasehold
Computer
software
Total
€’000
€’000
€’000
At 1 Octob er 2023
Cost
141
2,706
2,847
Accumulated amortisation
(36)
(1,604)
(1,640)
Net book amount
105
1,102
1,207
Year ended 30 September 2023
Opening net book amount
105
1,102
1,207
Additions
-
667
667
Amortisation
(18)
(537)
(555)
Closing net book amount
87
1,232
1,319
At 30 September 2023
Cost
141
3,373
3,514
Accumulated amortisation
(54)
(2,141)
(2,195)
Net book amount
87
1,232
1,319
Year ended 30 September 2024
Opening net book amount
87
1,232
1,319
Additions
-
578
578
Amortisation
(18)
(559)
(577)
Closing net book amount
69
1,251
1,320
At 30 September 2024
Cost
141
3,951
4,092
Accumulated amortisation
(72)
(2,700)
(2,772)
Net book amount
69
1,251
1,320
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
75
6. Intangible assets - continued
Company
Computer
software
€’000
At 1 October 2022
Cost
2,706
Accumulated amortisation
(1,604)
Net book amount
1,102
Year ended 30 September 2023
Opening net book amount
1,102
Additions
667
Amortisation
(537)
Closing net book amount
1,232
At 30 September 2023
Cost
3,373
Accumulated amortisation
(2,141)
Net book amount
1,232
Year ended 30 September 2024
Opening net book amount
1,232
Additions
578
Amortisation
(559)
Closing net book amount
1,251
At 30 September 2024
Cost
3,951
Accumulated amortisation
(2,700)
Net book amount
1,251
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
76
7. Investment in subsidiaries
Company
2024
2023
€’000
€’000
Cost and carrying amount at beginning of year
416
416
Cost and carrying amount at beginning and end of year
416
416
The carrying amount of the investment at 30 September 2024 and 202 3 is equivalent to the cost of
investment. The subsidiaries at 30 September 2024 and 2023 is shown below:
Subsidiary
Registered office
Percentage of
shares held
Nature of business
Tanseana Limited
305, Qormi Road,
Marsa, MTP 1001,
100% of ordinary
shares
Document management
services
Malta
Ciabro Limited
22, Warehouse il-Moll
tal-Pont,
Marsa, MRS1400,
Malta
100% of ordinary
shares
Warehousing
PostaInsure Agency Limited
4, Old Bakery Street,
Valletta, VLT 1450,
Malta
49% of ordinary
shares
Insurance agent
Ciabro Limited
On 26 April 2021, MaltaPost p.l.c. entered into a share purchase agreement with the shareholders of
Ciabro Limited (CIABRO), a limited liability company registered in Malta under the Companies Act
(Cap.386), with registration number C 577 and registered office at 22, Warehouse il-Moll tal-Pont,
Marsa MRS1400, for the purchase of 100% of the issued share capital for a consideration of
€140,000. The purchase consideration was deemed equivalent to the fair value of the 100% equity
holding in CBL and accordingly of the identifiable assets and liabilities of CBL as at date of acquisition,
which principally comprised intangible assets.
PostaInsure Agency Limited
On 5 November 2020, MaltaPost p.l.c. entered into a share purchase agreement with PostaInsure
Agency Limited (PostaInsure), formerly Untours Insurance Agents Limited, a limited liability company
registered in Malta under the Companies Act (Cap.386), with registration number C 5655 and
registered office at 4, Old Bakery Street, Valletta, for the purchase of 49% of the issued share capital
for a consideration of €275,000. The transfer of shares was affected on 9 December 2020, at which
date MaltaPost p.l.c. also acquired control over the company in view of its rights to appoint 60% of
PostaInsure’s board of directors. The purchase consideration was deemed equivalent to the fair
value of the 49% equity holding in PostaInsure.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
77
7. Investment in subsidiaries - continued
In the twelve-month period to 30 September 2024, PostaInsure contributed revenue of €549,000
(2023: €461,000) and profit after tax of €146,000 (2023: profit of €73,000).
PostaInsure is principally engaged in providing general insurance services, a service offering that is
ancillary to services currently provided by MaltaPost p.l.c.. This acquisition is expected to give rise
to synergies within the Group.
Non-controlling interest (NCI)
Set out below is summarised financial information for the subsidiary that has non-controlling interest.
The amounts disclosed are before inter-company eliminations.
Summarised statement of financial position
2024
2023
€’000
€’000
Current assets
1,852
2,146
Current liabilities
(937)
(1,420)
Current net assets
915
726
Net assets
922
776
Accumulated NCI
519
445
Summarised statement of comprehensive income
2024
2023
€’000
€’000
Revenue
549
461
Profit for the period
146
73
Profit allocated to NCI
74
37
Summarised cash flows
Cash flows (used in)/from operating activities
(387)
371
Net (decrease)/increase in cash and cash equivalents
(388)
371
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
78
8. Investment in associate
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Year ended 30 September
Opening carrying amount
1,716
1,084
2,875
1,875
Additions
1,000
1,000
1,000
1,000
Share of results
59
(368)
-
-
Closing carrying amount
2,775
1,716
3,875
2,875
At 30 September
Cost
3,875
2,875
3,875
2,875
Share of results
(1,100)
(1,159)
-
-
Carrying amount
2,775
1,716
3,875
2,875
The associate at 30 September 2024 and 2023 is shown below:
Associate
Registered office
Percentage of shares
and voting rights held
Nature of
business
IVALIFE Insurance
Centris Business Gateway II,
25% of ordinary shares
Insurance
Limited
Level 1D,
Triq is- Salib tal- Imriehel,
Central Business District,
Birkirkara, CBD 3020
Malta
MaltaPost p.l.c. controls 25% of the share capital (and holds an equivalent amount of voting rights)
of IVALIFE Insurance Limited, an unlisted company which was incorporated in Malta towards the end
of 2019 and commenced operations in 2021. The company was established to provide Class I and
Class III long term business of insurance within Malta. During the year ended 30 September 2024,
MaltaPost p.l.c. further injected capital amounting to €1,000,000 in its associate IVALIFE Insurance
Limited. The Group’s 25% share of the profits registered by the associate during the current financial
year, amounting to €59,000 (2023: share of loss €368,000), was reflected within the Group’s 2024
financial results.
The associate has capital and reserves as at 30 September 2024 amounting to €11,099,000 (2023:
€6,865,000) and registered a profit for the year amounting to €233,000 (2023: loss €1,471,000).
These results are extracted from unaudited management accounts. In the opinion of the directors, no
impairment provision on the cost of the investment is deemed necessary on the basis of forecasted
results against which present accumulated losses will be absorbed.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
79
9. Financial assets at fair value through other comprehensive income
Financial instruments, other than loans and receivables, are summarised in the table below:
Group and Company
2024
2023
€’000
€’000
Financial assets at fair value through other comprehensive income:
Non-current
2,133
2,265
Year ended 30 September
Opening carrying amount
2,265
2,529
Disposals/redemptions
(215)
(132)
Net fair value movements (Note 16)
85
(132)
Amortisation
(2)
-
Closing carrying amount
2,133
2,265
At 30 September
Amortised cost
2,123
2,340
Accumulated fair value gains
10
(75)
Carrying amount
2,133
2,265
Financial assets at fair value through other comprehensive income consist of debt securities listed
on the Malta Stock Exchange. These debt securities are subject to fixed interest rates ranging from
3% to 6% (2023: 3% to 6%). The weighted average effective interest rate as at 30 September 2024
was 4% (2023: 4%). For investments traded on the Malta Stock Exchange, fair value is determined
by reference to quoted market prices.
10. Deferred tax assets and liabilities
Deferred taxes are calculated on all temporary differences under the liability method and are
measured at the tax rates that are expected to apply to the period when the asset is realised or the
liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The principal tax rate used is 35% (2023: 35%), with the exception
of deferred taxation on the fair valuation of non-depreciable property, which is computed on the basis
applicab le to disposals of immovable property i.e. tax effect of 8% of the transfer value, amounting to
€1,546,000 as at 30 September 2024 (2023: €1,299,000).
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
80
10. Deferred tax assets and liabilities - continued
The balance at 30 September represents temporary differences attributable to:
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Assets
Reflected within profit or loss
Depreciation of property, plant and equipment
-
99
-
97
Provisions
72
32
69
7
Unabsorbed tax losses
-
16
-
-
Reflected within other comprehensive income
Provision for liabilities and charges
195
166
195
166
Deferred tax asset
267
313
264
270
Liabilities
Reflected within profit or loss
Depreciation of property, plant and equipment
(77)
-
(77)
-
Reflected within other comprehensive income
Fair valuation of land and buildings
(1,546)
(1,299)
(1,546)
(1,299)
Deferred tax liability
(1,623)
(1,299)
(1,623)
(1,299)
Net deferred tax liability
(1,356)
(986)
(1,359)
(1,029)
The movement in the deferred tax assets and liabilities during the year is as follows:
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Assets
At beginning of year
313
337
270
254
Charge to profit or loss (Note 25)
(75)
35
(35)
75
Charge to other comprehensive
income (Note 16)
29
(59)
29
(59)
At end of year
267
313
264
270
Liabilities
At the beginning and end of year
(1,299)
(1,299)
(1,299)
(1,299)
Charge to profit or loss (Note 25)
(77)
-
(77)
-
Charge to other comprehensive income
(Note 16)
(247)
-
(247)
-
At end of year
(1,623)
(1,299)
(1,623)
(1,299)
Net deferred tax liability
(1,356)
(986)
(1,359)
(1,029 )
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
81
10. Deferred tax assets and liabilities - continued
The recognised deferred tax assets and liabilities are expected to be recovered or settled principally
after more than twelve months from the end of the reporting period. The deferred tax liabilities and
assets reflected in other comprehensive income relate to temporary differences attributable to fair
valuation of land and buildings within property, plant and equipment (Note 16) and to provision for
actuarial losses in respect of pension obligations (Note 18) respectively.
11. Inventories
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Inventories for resale
239
272
239
272
Other inventory items
332
327
331
325
Stamps and postal stationery
282
153
282
153
853
752
852
750
There were no inventory write-downs during the current financial year (202 3: €12,000).
12. Trade and other receivables
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Current
Trade receivables – gross
5,954
4,422
5,954
4,422
Receivables arising on insurance
Transactions
590
555
-
-
Provisions for expected credit loss
(203)
(91)
(197)
(20)
Trade receivables – net
6,341
4,886
5,757
4,402
Amounts due from parent undertaking
55
39
55
39
Amounts due from subsidiary undertakings
-
-
155
186
Amounts due from related undertakings
1,743
1,338
1,740
1,297
Contract assets
1,496
1,784
1,496
1,784
Prepayments and accrued income
797
638
780
589
10,432
8,685
9,983
8,297
Amounts due from group and from related undertakings are interest free, unsecured and repayable
on demand. The Group’s exposures to credit and currency risks together with impairment losses
relating to trade and other receivables are disclosed in Note 2 .
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
82
13. Deposits with financial institutions
Group and Company
2024
2023
€’000
€’000
Term placements
2,900
2,500
Deposits with financial institutions comprise placements with a maturity of more than three months
but less than one year .
14. Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents comprise the following:
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Cash and balances with banks
5,052
4,368
4,080
3,241
Business of insurance accounts
117
347
45
18
5,169
4,715
4,125
3,259
Cash and cash equivalents as at 30 September 2024 include amounts collected on behalf of third
parties, amounting to €1,154,000 (2023: €640,000) as disclosed in Note 1 9.
The use of the business of insurance accounts is restricted in terms of Chapter 8 of the Insurance
Distribution Rules, 2019.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
83
15. Share capital
Company
2024
2023
€’000
€’000
Authorised
112,000,000 ordinary shares of €0.125 each
14,000
14,000
Issued and fully paid up
80,340,396 (2023: 77,512,020) ordinary shares of €0.125 each
10,043
9,689
Utilisation of the share premium account is governed by the requirements of Article 114 within the
Companies Act (Cap. 386) of the laws of Malta.
The Annual General Meeting (AGM) of 9 February 2024 approved a final ordinary gross dividend of
€0.03 (net €0.02) per nominal €0.125 share, either in cash or by the issue of new shares at the option
of each individual shareholder and the increase of the issued share capital accordingly.
Subsequently, 2,828,376 ordinary shares of €0.125 each at a premium of €0.315 each were allotted
to shareholders as a scrip issue in lieu of dividends thereby increasing the issued and fully paid up
share capital to 80,340,396 shares of €0.125 each, resulting in a paid up share capital of
€10,042,549.
The ordinary shares of the Company rank pari-passu for all intents and purposes of law.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
84
16. Other reserves
Group and Company
Property
Investment
revaluation
fair value
Other
Notes
reserve
reserve
reserve
Total
€’000
€’000
€’000
€’000
At 1 October 2022
4,082
57
(408)
3,731
Remeasurements of defined
benefit obligations
Actuarial gains
18
-
-
159
159
Deferred taxes
10
-
-
(59)
(59)
Financial assets at fair value through
other comprehensive income:
Losses from changes in fair value
9
-
(132)
-
(132)
At 30 September 2023
4,082
(75)
(308)
3,699
At 1 October 2023
4,082
(75)
(308)
3,699
Surplus arising on revaluation of land
and buildings
4
1,896
-
-
1,896
Deferred tax liability on revalued land
and b uildings determined on the basis
applicable to property disposals
(247)
-
-
(247)
Remeasurements of defined
benefit obligations
Actuarial gains
18
-
-
(82)
(82)
Deferred taxes
10
-
-
29
29
Financial assets at fair value through
other comprehensive income:
Losses from changes in fair value
9
-
85
-
85
At 30 September 2024
5,731
10
(361)
5,380
Property revaluation reserve
The revaluation reserve relates to fair valuation of the land and buildings component of property,
plant and equipment, and the balance represents the cumulative net increase in fair value of such
property, net of related deferred tax.
Fair value through other comprehensive income fair value reserve
The fair value reserve represents changes in fair value of financial assets measured at fair value
through other comprehensive income which are unrealised at financial reporting date. Upon disposal,
realised fair value gains are reclassified to profit or loss as a reclassification adjustment.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
85
16. Other reserves - continued
Other reserve
The other reserve reflects the impact of actuarial gains and losses with respect to pension obligations
(Note 18) recognised in other comprehensive income in accordance with the Group’s accounting
policy, net of any related deferred tax impacts.
17. Lease liabilities
The lease liabilities associated with the recognised right-of-use assets are analysed below:
Group and Company
2024
2023
€’000
€’000
Non-current
Properties
1,974
1,417
Motor vehicles
6
12
Total non-current lease liabilities
1,980
1,429
Current
Properties
284
237
Motor vehicles
6
64
Total current lease liabilities
290
301
Total lease liabilities
2,270
1,730
Specific extension options in property and motor vehicle leases have been included in the lease
liability as the lease term reflects the exercise of such options.
The total cash outflows for leases in 2024 was €3 74,000 (2023: €336,000).
Included in lease liabilities for properties are amounts of €431,000 (2023: €463,000) which are
attributable to arrangements with related parties.
The movement in the carrying amount of these assets is analysed in the following table:
Group and Company
2024
2023
€’000
€’000
At beginning of year
1,730
1,373
Impact of reassessment of lease term, reflecting inclusion of
extension period
857
543
Payments
(374)
(336)
Additions
-
91
Interest charge
57
59
At end of year
2,270
1,730
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
86
18. Provision for liabilities and charges
The Company provides for the obligation arising in terms of Article 8A of the Pensions Ordinance,
Cap 93 of the laws of Malta, covering those ex-Government employees who opted to become full-
time employees of the Company, and who continued to be entitled to pension rights which go beyond
the National Insurance Scheme. The related scheme is a final salary defined benefit plan and is
unfunded.
The amount recognised in the statement of financial position is as follows:
Group and Company
2024
2023
€’000
€’000
Present value of unfunded obligation
1,932
1,817
Crystallised obligation
(871)
(783)
Provision reflected in financial statements
1,061
1,034
The provision is analysed in the statement of financial position as follows:
Group and Company
2024
2023
€’000
€’000
Non-current
932
908
Current
129
126
1,061
1,034
The movement for the year is made up of:
Group and Company
2024
2023
€’000
€’000
(Charge)/c redit to profit or loss
(33)
429
(Charge)/c redit to other comprehensive income (Note 16)
(82)
159
Crystallised obligation
88
150
Effects of settlement
-
(467)
(27)
271
The amount recognised in other comprehensive income is as follows:
Group and Company
2024
2023
€’000
€’000
Net actuarial (loss)/gains
- attributable to financial assumptions
(82)
159
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
87
18. Provision for liabilities and charges - continued
Crystallised obligations relate to amounts which became payable as at the end of the reporting period.
In computing the provision, the Group used a weighted average discount rate of 3.52% (2023:
4.42%). Assumptions regarding future mortality experience are based on published mortality tables
in Malta, which translate into an average life expectancy of 83 (83 in 2023) depending on age and
gender of the beneficiaries.
These factors are deemed to be the key assumptions used in the computation of the liability. The
sensitivity of the obligation to changes in the key assumptions is considered immaterial for disclosure
purposes.
19. Trade and other payables
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Current
Trade payables
5,639
7,250
5,609
7,049
Amounts due to principals
708
1,040
-
-
Amounts owed to subsidiary undertakings
-
-
302
214
Amounts collected on behalf of third
parties (Note 14)
1,154
640
1,154
640
Amounts owed to related undertakings
1,027
1,123
1,088
1,123
Other payables
41
37
41
37
Indirect taxes and social security
808
595
664
406
Contract liabilities
206
370
206
370
Accruals and deferred income
4,235
3,354
4,107
3,296
13,818
14,409
13,171
13,135
Amounts owed to subsidiary and to related undertakings are interest free, unsecured and repayable
on demand.
The Group’s exposures to currency and liquidity risks relating to trade and other payables are
disclosed in Note 2 .
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
88
20. Revenue
Revenue is analysed as follows:
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
By activity
Postal
34,382
33,957
34,382
33,957
Philatelic
233
284
233
284
Insurance commission
548
489
70
57
Other
4,981
4,880
4,813
4,751
40,144
39,610
39,498
39,049
By geographical segments
Local
19,807
19,018
19,161
18,457
International cross-border
20,337
20,592
20,337
20,592
40,144
39,610
39,498
39,049
Other revenue comprises mainly revenue from document management services, mail house services
and commissions earned.
The Group primarily operates in one segment that comprises the provision of postal and related retail
services to customers, which activities are substantially subject to the same risks and returns.
Accordingly, the presentation of segment information as required by IFRS 8, Operating segments,
within these financial statements is not deemed applicable.
21. Expenses by nature
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Employee benefits expense (Note 22)
17,122
15,059
16,854
14,811
Depreciation and amortisation
(Notes 4, 5, 6)
2,492
1,974
2,433
1,915
Foreign direct mail costs
10,710
14,889
10,710
14,889
Property operating lease rentals
100
110
140
155
Motor vehicle operating lease and rental
costs
522
391
514
383
Movement in provision for expected credit
loss (Note 12)
112
-
177
-
Other expenses
4,829
4,663
4,609
4,483
35,887
37,086
35,437
36,636
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
89
21. Expenses by nature - continued
Items of an unusual nature, size or incidence reflected within profit or loss
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Non-recurring items
Movement in provisions for pensions (Note 18)
33
(429)
33
(429 )
Fees for work carried out by the external auditor were as follows:
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Annual statutory audit
78
73
61
56
Other assurance services
18
18
18
18
Other non-assurance services
1
6
-
6
97
97
79
80
The other non-assurance services provided to the Group and Company related to a VAT audit of
computer system at the MaltaPost p.l.c. post offices.
During the current year fees in relation to non-assurance services amounting to €5,000 to the Group
and the Company (202 3 Group: €5,000) have been charged by connected undertakings of the
Company’s auditor in respect of tax advisory and compliance services.
22. Employee benefits expense
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Wages and salaries
15,614
14,103
14,810
13,325
Other staff costs
190
211
811
816
Social security and indirect tax
1,285
1,174
1,200
1,099
17,089
15,488
16,821
15,240
Movement in provisions for pension
33
(429)
33
(429)
17,122
15,059
16,854
14,811
Average number of full time equivalent persons employed during the year:
Group
Company
2024
2023
2024
2023
Operational
670
640
621
590
Management
59
55
57
54
729
695
678
644
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
90
23. Other income
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
COVID-19 related grants
102
-
81
-
Other grants
168
108
168
108
270
108
249
108
The COVID-19 related grants represented funds received to provide employees with a minimum
wage cover to address the disruption caused by the pandemic.
Other grants relate to funds received in respect of the acquisition of electric vehicles.
24. Finance income
Group and Company
2024
2023
€’000
€’000
Interest income from bank balances and debt securities
149
113
25. Tax expense
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Current tax expense
1,557
470
1,500
456
Deferred tax expense (Note 10)
152
(35)
112
(75)
Tax expense
1,709
435
1,612
381
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
91
25. Tax expense - continued
The tax on profit before tax differs from the theoretical amount that would arise using the basic tax
rate as follows:
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Profit before tax
4,678
2,318
4,402
2,575
Tax at 35%
1,637
811
1,541
901
Tax effect of:
Income taxed at different rates
(29)
(22)
(29)
(22)
Impact of share of results of associate
(21)
129
-
-
Non-temporary differences arising from
Deductions (electric vehicles) rules
(315)
(445)
(315)
(445)
Other differences
437
(38)
415
(53)
Tax expense
1,709
435
1,612
381
26. Directors’ emoluments
Group and Company
2024
2023
€’000
€’000
Directors’ fees
75
75
The Company paid insurance premia of €12,160 (2023: €12,160) during the year, in respect of
professional indemnity .
27. Earnings per share
Earnings per share is based on the profit for the year attributable to the equity holders of MaltaPost
p.l.c. divided by the weighted average number of ordinary shares in issue and ranking for dividend
during the year.
Group
2024
2023
Profit attributable to equity holders (€’000)
2,969
1,883
Weighted average number of ordinary shares in
issue (thousands)
79,333
76,675
Earnings per share (basic and diluted)
€0.037
€0.020
Following the scrip issue in lieu of dividends effected during the year (Note 28), the total number of
shares in issue as at 30 September 2024 increased from 77,512,020 to 80,340,396.
The Company has no instruments or arrangements which give rise to potential ordinary shares and
accordingly diluted earnings per share is equivalent to basic earnings per share.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
92
28. Dividends
Company
2024
2023
€’000
€’000
Dividends on ordinary shares
1,550
1,506
€ per share (net)
€0.02
€0.02
The Annual General Meeting (AGM) of the 16 February 2023 approved a final ordinary gross dividend
of €0.0615 (net €0.04) per nominal €0.25 share, either in cash or by the issue of new shares at the
option of each individual shareholder and to increase the issued share capital accordingly and the
Redenomination of Nominal Value of the Share Capital (Share Split) from €0.25 per ordinary share
to €0.125 per ordinary share. On 16 March 2023, 1,101,290 ordinary shares of €0.25 each at a
premium of €0.84 each were allotted to shareholders as a scrip issue in lieu of dividends thereby
increasing the issued and fully paid up share capital to 38,756,010 shares of €0.25 each, resulting in
a paid up share capital of €9,689,003. Following the share split, the dividend per nominal €0.125
share is restated to €0.02.
The Annual General Meeting (AGM) of 9 February 202 4 approved a final ordinary gross dividend of
€0.03 (net €0.02) per nominal €0.125 share, either in cash or by the issue of new shares at the option
of each individual shareholder and to increase the issued share capital accordingly. Subsequently,
2,828,376 ordinary shares of €0.125 each at a premium of €0.315 each were allotted to shareholders
as a scrip issue in lieu of dividends thereby increasing the issued and fully paid up share capital to
80,340,396 shares of €0.125 each, resulting in a paid up share capital of €10,042,549.
At the forthcoming Annual General Meeting, a final net dividend of €0.024 per share amounting to
€1,928,000 in respect of the financial year ended 30 September 2024 is to be proposed. These
financial statements do not reflect this final dividend which, subject to approval by the shareholders
at the forthcoming Annual General Meeting, will be accounted for in shareholders’ equity as an
appropriation of retained earnings in the year ending 30 September 202 5.
29. Commitments
Operating lease commitments
The Group leases various premises and other assets under operating leases. The future minimum
lease payments under non-cancellable operating leases, with a remaining lease term of less than 12
months amounted to €654,000 (2023: €538,000).
Specific lease arrangements include an option to renew the lease after the original term but the
amounts presented above do not reflect lease charges applicable to the renewal period.
The Company is also committed to pay an annual licence fee of 1.50% of its total gross revenue from
postal services within the scope of the universal services.
Capital commitments
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Authorised and contracted for:
Property, plant and equipment
310
-
310
-
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
93
30. Contingencies
As a result of its operations and activities in the ordinary course of business, the Group has, as at 3 0
September 2024, contingent liabilities arising from guarantees in favour of third parties and from
performance bonds amounting to €210,000 (2023: €468,000).
31. Related party transactions
The following entities are considered to be related parties of the Company:
• Tanseana L imited (MaltaPost p.l.c.’s wholly-owned subsidiary)
• Redbox Limited (direct parent company)
• Lombard Bank Malta p.l.c. (indirect parent company)
• National Development and Social Fund
• all entities controlled by the above
Lombard Bank Malta p.l.c. (via its wholly-owned subsidiary Redbox Limited) holds 71.5%
shareholding in MaltaPost p.l.c. In turn, the National Development and Social Fund (NDSF) holds
49.01% shareholding in Lombard Bank Malta p.l.c. Consequently, Government of Malta and other
government entities are considered to be parties related to MaltaPost p.l.c. Nevertheless, in its
Company Announcement dated 10 August 2018, Lombard Bank Malta p.l.c., reported that:
Quote
The NDSF had reaffirmed that:
• it does not intend to increase its holding s in the Bank;
• it shall not act in concert with any other shareholders;
• it will seek to reduce its shareholding in the Bank in an orderly manner, at the right market
conditions and by agreement with the regulatory authorities;
• it has no intention of exerting any influence on the operations of the Bank; and
• this acquisition will not result in a change in control of the Bank.
Unquote
The sale of stamps to entities referred to above is made directly or indirectly by the Company in the
normal course of business at arm’s length prices and is included within revenue. Disclosure of these
amounts, which are not material, is not deemed necessary for the purpose of understanding the
Company’s financial results or its financial position.
Trading transactions between these related parties typically include postal and insurance services,
document management, screening security services, commission on amounts collected on behalf of
related parties, rental charges, payroll costs and management fees. The following transactions were
carried out by the Company with related parties:
Company
2024
2023
€’000
€’000
Subsidiar ies
Services provided to
24
41
Services provided by
990
865
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
94
31. Related party transactions - continued
Group and Company
2024
2023
€’000
€’000
Indirect parent
Services provided to
325
320
Goods and services provided by
184
225
Other related parties
Services provided to
6,361
6,297
Services provided by
1,964
2,316
Postal licence fee
261
236
Year end balances with related parties arising from the above transactions are disclosed in Notes 12
and 19 to these financial statements. Included in ‘Amounts collected on behalf of third parties’ within
‘Trade and other payables’ are amounts that the Company processes on behalf of government
entities which result in revenue, amounting to €786,000 (2023: €556,000).
Financial assets at fair value through other comprehensive income include:
Group and Company
2024
2023
€’000
€’000
Related party
Malta Government debt securities
1,221
1,154
Cash and cash equivalents include:
Group
Company
2024
2023
2024
2023
€’000
€’000
€’000
€’000
Indirect parent
Term placements and bank balances held
with Lombard Bank Malta p.l.c.
849
1,350
849
1,350
Key management personnel comprise the Directors of the Company. Total fees and emoluments
paid to the Directors have been disclosed in Note 2 6.
32. Statutory information
MaltaPost p.l.c. is a limited liability company and is incorporated in Malta.
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
95
Five-year summary
Company’s accounting ratios
01/10/23
01/10/22
01/10/21
01/10/20
01/10/19
To
to
to
to
to
30/09/24
30/09/23
30/09/22
30/09/21
30/09/20
%
%
%
%
%
Gross profit margin
24.77
18.87
16.54
18.32
21.64
Operating profit margin
10.91
6.46
3.02
6.65
8.29
Operating profit to total assets
8.21
5.39
1.91
4.88
6.07
Operating profit to capital employed
12.77
8.52
3.41
8.69
10.35
Profit before tax to total equity
13.04
8.70
3.64
8.99
10.67
Profit after tax to total equity
8.80
7.41
2.40
5.68
6.98
30/09/24
30/09/23
30/09/22
30/09/21
30/09/20
Weighted average number of ordinary
shares in issue
of €0.25 each (‘000s)
-
-
37,655
37,655
37,655
Weighted average number of ordinary
shares in issue
of €0.125 each (‘000s)
79,333
76,675
-
-
-
Net assets per share (€ cents)
42
38
74
76
72
Earnings per share (€ cents)
4
2
2
4
5
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
96
Financial highlights in major currencies
Company
USD
GBP
000's
000's
For the year ended 30 September 2024
Revenue
35,465
47,429
Gross profit
8,786
11,749
Operating profit
3,870
5,175
Profit before tax
3,953
5,286
Net profit after tax
2,666
3,565
At 30 September 2024
Total assets less current liabilities
34,381
45,980
Total equity
30,310
40,534
USD
GBP
Per share
Earnings (cents)
3
4
Net asset value (cents)
38
50
At currency rates of exchange ruling on 30 September 2024:
USD 0.90 = EUR 1
GBP 1.20 = EUR 1
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
97
Supplementary information
Post Office Network
HEAD OFFICE – MARSA
305, Qormi Road,
Marsa, MTP 1001
58, Triq il-Wied
BIRKIRKARA BKR 9013
48, Triq Zarenu Dalli
BIRZEBBUGA BBG 1522
Block 14 Fuq San Pawl
BORMLA BML 1910
6, Triq id-Dolmen
BUĠIBBA, SAN PAWL IL-BAĦAR
SPB 2400
419, Triq Ħaż-Żabbar,
FGURA FGR 1018
15A, Pjazza San Kalcidonju
FLORIANA FRN 1533
21, Pjazza Meme' Scicluna
GŻIRA GZR 1120
18, Triq il-Ferrovija
ĦAMRUN ĦMR 1900
1, Misraħ Ġwanni Pawlu II
Ħ' ATTARD ATD 2200
SmartCity Malta,Building SCM 01
Level G, Ricasoli,
KALKARA SCM 100
11, Trejqa Dun Ġulju Muscat
LUQA LQA 1450
MIA Hall
LUQA LQA 500
(Head Office)
305, Triq Ħal Qormi
MARSA MTP 1001
Bulk Post Office (Head Office)
305, Triq Ħal Qormi
MARSA MTP 1001
Triq Sant' Antnin
MARSASKALA MSK 9059
100, Triq il-Mitħna l-Ġdida
MELLIEĦA MLĦ 1107
Campus tal-Universita'
MSIDA MSD 2080
Ċentru Ċiviku,
Vjal Il-Wieħed u Għoxrin ta'Settembru
NAXXAR NXR 1018
Ċentru Ċiviku, Pjazza Antoine De Paule
PAOLA PLA 1266
343, Triq il-Vitorja
QORMI QRM 2504
Ċentru Ċiviku, Triq Santa Rita
RABAT RBT 1001
Triq Paceville
SAN ĠILJAN STJ 3103
95, Triq In-Naxxar,
SAN ĠWANN SĠN 9031
511, Triq San Pawl
SAN PAWL IL-BAĦAR SPB 3416
42, Triq Rodolfu
SLIEMA SLM 1275
39, Triq Sir Adrian Dingli
SLIEMA SLM 1902
Ċentru Ċiviku Triq G. Bessiera
SWIEQI SWQ 2261
Telgħet Gwardamanġa
TAL-PIETA' PTA 1310
1, Dar Annona, Pjazza Kastilja
VALLETTA VLT 1060
75, Triq l-Ifran
VALLETTA VLT 1458
Malta Postal Museum
135, Triq l-Arcisqof,
VALLETTA
25, Triq in-Nofsinhar
VALLETTA VLT 1102.
Ċentru Ċiviku, Triq il-Kunvent
ŻABBAR ŻBR 1351
Triq Sciortino
ŻEBBUĠ ŻBĠ 1962
11, Misraħ Gregorio Boniċi
ŻEJTUN ŻTN 1051
75, Triq il-Kbira
ŻURRIEQ ŻRQ 1317
Triq J.F. De Chambrai
GĦAJNSIELEM GSM 1051
13, Triq it-Tramuntana
NADUR NDR 1220
5, Triq Sir Adrian Dingli,
RABAT, GHAWDEX VCT 1441
132, Triq it-Tigrija
XAGHRA XRA 2013
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
98
Sub-post Offices
Allstat Stationery
Triq Lampara
BAĦAR IĊ-ĊAGĦAQ NXR 5134
Steve Stationery
Triq Dun Spir Sammut
BALZAN BZN 1020
Landau Stationery,
84,Triq Dun Gejtanu Mannarinu
BIRKIRKARA BKR 9085
Nabus Stationery
33, Triq tal-Herba
BIRKIRKARA BKR 2324
Aquavel,
Triq San Bartolomew,
GĦARGĦUR, GHR 1014
Marchams,
4,Wesgha Bir id-Deheb,
GĦAXAQ, GXQ 1651
Troy DVD Rentals,
1,Triq il Kappuccini
KALKARA, KKR 1502
Alessio's Old Cottage,
12,Triq il-Parrocca
MQABBA, MQB 1511
Papel Stationery,
Triq is-Salvatur,
QRENDI QRD 1701
Papier Stationery,
Level 0 Spinola Park,
Triq Mikiel Ang Borg,
SAN ĠILJAN SPK 1000
Papier Stationery,
Pjazzetta,
Triq it Torri,
SLIEMA SLM1605
S.G.S.
6,Triq Felic Borg ,
SAN ĠWANN, SGN 2040
C&C Stationery
Triq Fleur-De-Lys,
SANTA VENERA, SVR 1582
Forex,
16/17 Pjazza tas-Suq,
TARXIEN, TXN 1951
Universal Stationery
22, Triq Ras il-Gebel
ŻEBBIEGĦ, IMĠARR MĠR 2021
Pinpoint Stationery, Gifts and More
57, Vjal l-Indipendenza
ŻURRIEQ ZRQ 2339
Kunsill Lokali Għasri,
Triq Dun Karm Caruana,
GĦASRI GSR 1021
Kercem Local Council,
Pjazza Orvieto,
KERĊEM, KCM 1360
22A, San Lawrenz Local Council,
Triq id-Duluri
SAN LAWRENZ, SLZ 1261
Kunsill Lokali Għarb
Triq il-Viżitazzjoni
GĦARB, GRB 1044
129, Kunsill Lokali Zebbug
Triq il- Knisja,
IZ-ZEBBUG, ZBB1200
MALTAPOST p.l.c.
Annual Financial Report and Consolidated Financial Statements - 30 September 2024
99
Collection of postal articles from public letterboxes is held as follows (exceptions may apply as announced
to the public in agreement with the Malta Communications Authority).
- Monday - Friday 17:15 hrs
- Saturday 12:30 hrs
(except public holidays)
Delivery of postal articles generally commences as from 07:00 hrs and ends in accordance with operational
exigencies.
Further information on products and services, including prices and a full list of letterboxes and stamp
vendors, may be found on the Company’s website on www.maltapost.com
or by request from the Post
Offices or from the Customer Care Department on (+356) 21224421.
The postal schemes which deal with a number of postal services may also be located and downloaded from
the website or available upon request from the Post Offices or Customer Care. During the year under
review, Customer complaints accounted for 0.002% of all mail items handled.

Independent auditor’s report

To the Shareholders of MaltaPost p.l.c.

Report on the audit of the financial statements

Our opinion

In our opinion:

● The Group financial statements and the Parent Company financial statements (the “financial statements”) of MaltaPost p.l.c. give a true and fair view of the Group and the Parent Company’s financial position as at 30 September 2024, and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted by the EU; and

● The financial statements have been prepared in accordance with the requirements of the Maltese Companies Act (Cap. 386).

##### Our opinion is consistent with our additional report to the Audit Committee.

##### What we have audited

MaltaPost p.l.c.’s financial statements comprise:

● the Consolidated and Parent Company statements of financial position as at 30 September 2024;

● the Consolidated and Parent Company income statements and statements of comprehensive income for the year then ended;

● the Consolidated and Parent Company statements of changes in equity for the year then ended;

● the Consolidated and Parent Company statements of cash flows for the year then ended; and

● the notes to the financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

##### Independence

We are independent of the Group and the Parent Company in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) together with the ethical requirements of the Accountancy Profession (Code of Ethics for Warrant Holders) Directive issued in terms of the Accountancy Profession Act (Cap. 281) that are relevant to our audit of the financial statements in Malta. We have fulfilled our other ethical responsibilities in accordance with these Codes.

To the best of our knowledge and belief, we declare that non-audit services that we have provided to the subsidiaries are in accordance with the applicable law and regulations in Malta and that we have not provided non-audit services that are prohibited under Article 18A of the Accountancy Profession Act (Cap. 281).

The non-audit services that we have provided to the - subsidiaries, in the period from 1 October 2023 to 30 September 2024, are disclosed in note 21 to the financial statements.

Our audit approach

#####

##### Overview

| ● Overall group materiality: €235,000, which represents approximately 5% of profit before tax.
● The Parent Company and its three subsidiaries are based in Malta, and the financial statements of these entities have been audited by our audit team. ● Our audit scope addresses 100% of Group revenues and Group profit before tax.
● Risk of fraud in revenue recognition

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

##### Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

Overall group materiality | €235,000
How we determined it | Approximately 5% of profit before tax
Rationale for the materiality benchmark applied | We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by users and is a generally accepted benchmark. We chose 5% which is within the range of quantitative materiality thresholds that we consider acceptable.

We agreed with the Audit Committee that we would report to them misstatements identified during our audit above €23,000 as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

#### Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter | How our audit addressed the Key audit matter
Risk of fraud in revenue recognition ISA 240 presumes that there is a risk of material misstatement due to fraud related to revenue recognition and requires the auditor to treat this assessed risk of material misstatement due to fraud as a significant risk, thus requiring special audit consideration. This comprises the risk that sales revenue is misstated due to fraud as individuals may have incentive to manipulate revenue, and hence results. The risk of fraud in revenue recognition includes the risk that sales revenue is not recognised in accordance with IFRS 15 requirements, and that revenue is not completely or accurately reflected, or that fictitious sales revenue is recorded or that the cut-off point at which risks and rewards are transferred is not correctly reflected in the financial statements. The Parent Company’s revenue consists of revenue from retail sales, comprising sale of stamps, philatelic sales, sale of non-postal stationery and provision of non-postal services, and sales from terminal dues, consisting of remuneration for processing and delivering postal items received from other territories. Terminal dues are invoiced on a quarterly basis in arrears on the basis of volume data accumulated throughout the respective quarter. Accordingly, the risk of fraud in revenue recognition in respect of terminal dues is principally attributable to the unbilled revenue at year end in respect of the last quarter of the financial year. Revenue from retail sales is attributable to a large volume of low value transactions handled through an operational retail system in an automated manner, whereby inventory items are updated with sales taking into account standing data in respect of unit prices. In this respect, the risk of fraud in revenue recognition is mainly in respect of the output of the operational retail system not being properly reflected within the accounting system. Refer to accounting policy 1.18 and Note 20 of the financial statements. | We confirmed our understanding and evaluation of the Parent Company’s control processes and procedures in respect of revenue recognition, including IT and system controls. Specifically, in respect of revenue from retail sales, we evaluated the relevant systems and the design of controls, and tested the operating effectiveness of automated and non-automated controls over the: · capture and recording of revenue transactions comprising products or services supplied to customers; · authorisation of price changes and updating this information within the operational retail system; and · calculation of amounts invoiced to customers. Accordingly, we validated key controls including automated control procedures in respect of the operational retail system. We tailored our final audit plan based on the results of our assessment of the control environment and operating effectiveness of such controls. We utilised computer assisted audit techniques to recalculate aggregate revenue recognised by extracting independently volume data from the operational retail system and taking into account independently sourced or verified sales prices to address accuracy and existence. We also tested reconciliations between the operational retail and accounting systems to address completeness and cut-off. We have also carried out audit procedures, comprising validation of controls and tests of detail, in respect of cash counts and stock counts covering the retail sales business. In respect of terminal dues, we have carried out tests of detail by recalculating revenue recognised during the year on the basis of volume data accumulated over time. We have validated volume data to third party documentation or documentation duly approved by third parties. We have also validated volume data by carrying out tests such as sequence checks and other data validation tests. We have validated terminal dues rates to contractual arrangements or other supporting documentation. We have also tested revenue recognised in respect of terminal dues within the accounting system to amounts invoiced and the subsequent receipt of payment. In respect of this key audit matter, we found no significant exceptions in our controls testing and no material misstatements were identified in our substantive testing.

How we tailored our group audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

#### The Group’s accounting process is structured around a group finance function at its head office. Within the head office, supporting finance functions exist for each of the key business operating areas, and these report to the Group finance team as appropriate. The audit work for the Parent Company and its three subsidiaries was conducted by the same audit team in Malta. The Group audit team performed all of this work by applying the overall Group materiality, together with additional procedures performed on the consolidation. This gave us sufficient appropriate audit evidence for our opinion on the Group financial statements as a whole.

Other information

The directors are responsible for the other information. The other information comprises all of the other information in the Annual Financial Report (but does not include the financial statements and our auditor’s report thereon).

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except as explicitly stated within the Report on other legal and regulatory requirements.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

#### Responsibilities of the directors and those charged with governance for the financial statements

The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs as adopted by the EU and the requirements of the Maltese Companies Act (Cap. 386), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.

● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

● Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.

● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

Report on compliance with the requirements of the European Single Electronic Format Regulatory Technical Standard (the “ESEF RTS”), by reference to Capital Markets Rule 5.55.6

We have undertaken a reasonable assurance engagement in accordance with the requirements of Directive 6 issued by the Accountancy Board in terms of the Accountancy Profession Act (Cap. 281) - the Accountancy Profession (European Single Electronic Format) Assurance Directive (the “ESEF Directive 6”) on the Annual Financial Report of MaltaPost p.l.c. for the year ended 30 September 2024, entirely prepared in a single electronic reporting format.

Responsibilities of the directors

The directors are responsible for the preparation of the Annual Financial Report, including the consolidated financial statements and the relevant mark-up requirements therein, by reference to Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS.

Our responsibilities

Our responsibility is to obtain reasonable assurance about whether the Annual Financial Report, including the consolidated financial statements and the relevant electronic tagging therein, complies in all material respects with the ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the requirements of ESEF Directive 6.

Our procedures included:

● Obtaining an understanding of the entity's financial reporting process, including the preparation of the Annual Financial Report, in accordance with the requirements of the ESEF RTS.

● Obtaining the Annual Financial Report and performing validations to determine whether the Annual Financial Report has been prepared in accordance with the requirements of the technical specifications of the ESEF RTS.

● Examining the information in the Annual Financial Report to determine whether all the required taggings therein have been applied and whether, in all material respects, they are in accordance with the requirements of the ESEF RTS.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the Annual Financial Report for the year ended 30 September 2024 has been prepared, in all material respects, in accordance with the requirements of the ESEF RTS.

Other reporting requirements

The Annual Financial Report and Consolidated Financial Statements 2024 contains other areas required by legislation or regulation on which we are required to report. The Directors are responsible for these other areas.

The table below sets out these areas presented within the Annual Financial Report, our related responsibilities and reporting, in addition to our responsibilities and reporting reflected in the Other information section of our report. Except as outlined in the table, we have not provided an audit opinion or any form of assurance.

Area of the Annual Financial Report and Consolidated Financial Statements 2024 and the related Directors’ responsibilities | Our responsibilities | Our reporting
Directors’ report The Maltese Companies Act (Cap. 386) requires the directors to prepare a Directors’ report, which includes the contents required by Article 177 of the Act and the Sixth Schedule to the Act. | We are required to consider whether the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements. We are also required to express an opinion as to whether the Directors’ report has been prepared in accordance with the applicable legal requirements. In addition, we are required to state whether, in the light of the knowledge and understanding of the Company and its environment obtained in the course of our audit, we have identified any material misstatements in the Directors’ report, and if so to give an indication of the nature of any such misstatements. With respect to the information required by paragraphs 8 and 11 of the Sixth Schedule to the Act, our responsibility is limited to ensuring that such information has been provided. | In our opinion: ● the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ● the Directors’ report has been prepared in accordance with the Maltese Companies Act (Cap. 386). We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section.
Statement of Compliance with the Principles of Good Corporate Governance The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare and include in the Annual Financial Report a Statement of Compliance with the Code of Principles of Good Corporate Governance within Appendix 5.1 to Chapter 5 of the Capital Markets Rules. The Statement’s required minimum contents are determined by reference to Capital Markets Rule 5.97. The Statement provides explanations as to how the Company has complied with the provisions of the Code, presenting the extent to which the Company has adopted the Code and the effective measures that the Board has taken to ensure compliance throughout the accounting period with those Principles. | We are required to report on the Statement of Compliance by expressing an opinion as to whether, in light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have identified any material misstatements with respect to the information referred to in Capital Markets Rules 5.97.4 and 5.97.5, giving an indication of the nature of any such misstatements. We are also required to assess whether the Statement of Compliance includes all the other information required to be presented as per Capital Markets Rule 5.97. We are not required to, and we do not, consider whether the Board’s statements on internal control included in the Statement of Compliance cover all risks and controls, or form an opinion on the effectiveness of the Company’s corporate governance procedures or its risk and control procedures. | In our opinion, the Statement of Compliance has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority. We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section.
Remuneration report The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare a Remuneration report, including the contents listed in Appendix 12.1 to Chapter 12 of the Capital Markets Rules. | We are required to consider whether the information that should be provided within the Remuneration report, as required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets Rules, has been included. | In our opinion, the Remuneration report has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority.
| Other matters on which we are required to report by exception We also have responsibilities under the Maltese Companies Act (Cap. 386) to report to you if, in our opinion: ● adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. ● the financial statements are not in agreement with the accounting records and returns. ● we have not received all the information and explanations which, to the best of our knowledge and belief, we require for our audit. We also have responsibilities under the Capital Markets Rules to review the statement made by the directors that the business is a going concern together with supporting assumptions or qualifications as necessary. | We have nothing to report to you in respect of these responsibilities.

Other matter – use of this report

Our report, including the opinions, has been prepared for and only for the Parent Company’s shareholders as a body in accordance with Article 179 of the Maltese Companies Act (Cap. 386) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior written consent.

####

Appointment

We were first appointed as auditors of the Company on 1 May 1998. Our appointment has been renewed annually by shareholder resolution representing a total period of uninterrupted engagement appointment of 26 years. The Parent Company became listed on a regulated market on 24 January 2008.

Simon Flynn

Principal

For and on behalf of

PricewaterhouseCoopers

78, Mill Street

Zone 5, Central Business District

Qormi

Malta

19 December 2024