Interim Results

Livermore Investments Group Limited
29 September 2023
 

              

 

 

28 September 2023

 

LIVERMORE INVESTMENTS GROUP LIMITED

 

UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 30 JUNE 2023

 

Livermore Investments Group Limited (the "Company" or "Livermore") today announces its unaudited interim results for the six months ended 30 June 2023. These results will be made available on the Company's website today.


For further investor information please go to
www.livermore-inv.com.

 

 


Enquiries:

Livermore Investments Group Limited                                                                                +41 43 344 3200

Gaurav Suri

 

 

Strand Hanson Limited (Financial & Nominated Adviser and Broker)                     +44 (0)20 7409 3494

Richard Johnson / Ritchie Balmer

 



Chairman's and Chief Executive's Review

 

Introduction

We are pleased to announce the interim financial results for Livermore Investments Group Limited (the "Company" or "Livermore") for the six months ended 30 June 2023. References to the Company hereinafter also include its consolidated subsidiary (note 8). 

The economic developments in 2023 surprised positively. The Eurozone escaped a deep recession as a mild winter helped cool energy prices and the expectations for China re-opening its economy after a long Covid-zero policy increased European export demand. The US also performed much better than expected as consumers continued to spend on the back of excess savings accumulated over the recent years and a lower interest rate sensitivity of the corporate and consumer sectors. Inflation in the US continued to trend downwards without unemployment increasing. High nominal GDP allowed most companies to maintain profit margins and equity markets performed strongly in the first half of the year. The US Dollar continued to weaken supporting investor risk appetite.

Developed market central banks continued to increase short term interest rates as inflation stayed higher than expected. Fixed income markets generally fared poorly despite a brief rally in March after Credit Suisse and a few US regional banks failed. The US treasury and the Federal Reserve, however, created facilities that supported the regional banking sector in the US and markets staged a significant recovery as key risk to the financial system was reduced.

US loans performed well during the first half of the year as higher short-term rates provided significant distributions. Most borrowers did not need to address their loan maturities as strong market conditions in 2021 allowed them to extend their maturities at low credit spreads. Lower leveraged buy-outs and M&A transactions further constrained supply and supported a move higher in loan prices. On the other hand, these borrowers are paying higher interest costs and may face earnings reductions and liquidity issues in the near future, and management is focused on such situations as they arise. CLO equity performance for long reinvestment period positions was strong but remained weak for positions with post-reinvestment CLOs.

During the first half of the year, management continued its defensive stance and stayed invested in primarily US treasury bills. The Company's cash and marketable securities position increased further as CLO distributions were not reinvested in the CLO market and management has no open warehouses. The CLO portfolio performed relatively well as default rates, although higher than in 2021 and 2022, were lower than expected. CLO equity issued in 2021 and later performed well but transactions that have exited their reinvestment periods continue to experience higher stress due to higher exposure to seasoned and weaker credits and lower manager flexibility. The Company's CLO portfolio generated USD 11.0m of cashflow during the period.

As at 30 June 2023, the Company held USD 55.4m in cash and marketable securities (June 2022: USD 37.3m). This should allow management to deploy capital opportunistically into a hopefully weaker market when the US economic cycle bottoms.

During the first half of 2023, the Company recorded a net gain of USD 3.9m (June 2022: net loss of USD 21.6m). The cashflow from the CLO portfolio was somewhat offset by valuation declines of USD 4.8m, primarily from post-reinvestment period CLO transactions. The NAV as at 30 June 2023 was USD 0.80 per share. Management continues to actively manage its financial portfolio and remain in regular contact with CLO managers and market participants.

 



 

Financial Review

The NAV of the Company as at 30 June 2023 was USD 131.6m (31 December 2022: USD 127.7m). The profit after tax for the first half of 2023 was USD 3.9m, which represents earnings per share of USD 0.02.

The overall change in the NAV is primarily attributed to the following:


30 June 2023


30 June 2022


31 December 2022

US $m


US $m


US $m

Shareholders' funds at beginning of period

127.7


177.7


177.7


-----


-----


-----

Income from investments

11.5


13.7


23.7

Other income

0.3


-


-

Unrealised losses on investments

(5.8)


(35.8)


(46.3)

Operating expenses

(1.7)


(1.4)


(3.0)

Net finance costs

(0.3)


(0.2)


(0.2)

Tax charge

(0.1)


-


(0.2)


-----


-----


-----

Increase / (decrease) in net assets from operations

3.9


(23.7)


(26.0)

Dividends paid

-


(24.0)


(24.0)


-----


-----


-----

Shareholders' funds at end of period

131.6


130.0


127.7


-----


-----


-----

Net Asset Value per share

US $0.80


US $0.79


US $0.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Livermore's Strategy

The Company's primary investment objective is to generate high current income and regular cash flows. The financial portfolio is constructed around fixed income instruments such as Collateralized Loan Obligations ("CLOs") and other securities or instruments with exposure primarily to senior secured and usually broadly syndicated US loans.  The Company has a long-term oriented investment philosophy and invests primarily with a buy-and-hold mentality, though from time to time the Company will sell investments to realize gains or for risk management purposes.

Strong emphasis is given to maintaining sufficient liquidity and low leverage at the overall portfolio level and to re-invest in existing and new investments along the economic cycle. 

 

Dividend & Buyback

The Board of Directors will decide on the Company's dividend policy for 2023 based on profitability, liquidity requirements, portfolio performance, market conditions, and the share price of the Company relative to its NAV.

 

 

 

Richard Rosenberg

Noam Lanir

Non-Executive Chairman

Chief Executive

 

 

 

 

28 September 2023

 

 



Review of Activities

 

Economic & Investment Environment

In the first quarter of 2023, advanced economies experienced modest growth, although hindered by tighter monetary policies, escalating inflation, and energy challenges in Europe. Meanwhile, China's economy gained momentum after lifting coronavirus restrictions. Global economic activity remained subdued, with a dip in global trade. Inflation, particularly core inflation, persisted above central banks' targets, leading to gradual tightening of monetary policies. The global outlook remains cautious due to lingering inflation and tighter policies, with risks including prolonged high inflation in certain countries and a potential energy crisis in Europe in late 2023 and early 2024.

In the US, first-quarter GDP growth was 2% and second quarter GDP growth was 2.1%. Private consumption and exports expanded, but a drop in inventory investment weighed on overall growth. Employment figures continued to rise, with unemployment at a low of 3.7% in May.  The Eurozone grew by 0.1% in both quarters although high inflation and stricter monetary policy impacted domestic demand and export growth. Despite lower gas prices, energy-intensive industries showed only slight recovery, while manufacturing contracted. At the same time, employment remained positive and domestic services sector performed well. Japan's economic recovery continued with 2.7% GDP growth in the first quarter. Domestic demand and service exports improved, but goods exports declined, and industrial output contracted. Unemployment, though slightly higher at 2.6% in April, remained historically low and core inflation increased to 2.5%. China experienced an initial rebound with 9.1% GDP growth in the first quarter, driven by the services sector. However, manufacturing remained subdued due to weaker foreign demand and structural problems in the Chinese property sector. The People's Bank of China lowered official interest rates in June, and the government proposed additional stimulus measures.

Global Markets experienced gains driven by enthusiasm for Artificial Intelligence (AI) and technology stocks. Rising yields and deposit outflow from banks caused severe liquidity issues in the US regional banking sector, and in March, Credit Suisse and a few regional banks failed as a result. The new financing facilities put in place by the US Federal Reserve helped contain the situation and risk assets rallied sharply again. In the first half of 2023, the SPX Index was up 15.9% excluding dividends while the Nasdaq 100 index rose 38.45%. Yields rose globally, with the UK and Australia showing weaker performance due to higher-than-expected inflation. Major central banks raised interest rates throughout the period although the rate of increase was slower than in 2022. Japanese shares experienced strong momentum while the Yen continued to stay weak due to potential extended expansionary policy in Japan. India, South Korea, and Taiwan recorded gains driven by technology stocks and investor enthusiasm for AI-related technologies.

The performance of the US dollar varied against major currencies since the start of 2023. Notably, the dollar saw a significant depreciation against the Mexican peso due to Mexico's robust economic growth and stringent monetary policies. Conversely, the dollar experienced a modest increase against Asian currencies, attributed to diminished external demand in the region and expanding interest rate gaps.

Commodity prices, particularly Brent crude oil, fluctuated around USD 80 per barrel, settling at around USD 77.  The S&P GSCI Index recorded a negative performance, with industrial metals and energy sectors underperforming. Livestock prices rose. Precious metals like gold and silver ended in negative territory.

US Leveraged Loans generated significant gains in the first half of 2023 after a poor showing in 2022. High Libor/SOFR rates increased the income received by loan investors, and low supply due to fewer private equity and merger and acquisition transactions kept loan prices elevated. The loan market generated 6.33% total return in the period as measured by the Credit Suisse Leveraged Loan Index. Trailing 12-month par-weighted default rate ticked up to 1.71% as compared to 0.72% as at the end of 2022 but remain below historical average. At the same time, recoveries on these defaults are expected to be lower than historical averages. Despite a strong performance in the first half, higher rates for longer are expected to increase stress on loan borrowers and we anticipate increased downgrades by rating agencies in the near to mid-term.

CLO debt tranches also performed well as high coupons and price convexity increased their appeal. Further, a slow new issue CLO market constrained supply, driving price performance. CLO equity continued to pay strong distributions as default rates stayed limited. However, price performance varied between those transactions with long reinvestment periods and those with short reinvestment periods.  Long reinvestment period transactions performed well, however post-reinvestment deals continued to see subdued demand.

Sources: Swiss National Bank (SNB), European Central Bank (ECB), US Federal Reserve, Bloomberg, JP Morgan, S&P Capital IQ

 

Financial Portfolio and trading activity    

The Company manages a financial portfolio valued at USD 122.2m as at 30 June 2023, which is invested mainly in fixed income and credit related securities.

The following is a table summarizing the financial portfolio as at 30 June 2023:

 

30 June 2023

US $m

30 June 2022

US $m

31 December 2022

US $m

Investment in the loan market through CLOs

64.2

77.0

66.6

Public equities

2.6

1.9

2.3

Short term government bonds

36.1

13.8

24.6

Long term government bonds

4.2

-

8.3

Corporate bonds

3.8

4.6

4.6

 

-----

-----

-----

Invested total

110.9

97.3

106.4

Cash

11.3

18.9

11.0

 

-----

-----

-----

Total

122.2

116.2

117.4

 

-----

-----

-----

 

 

Senior Secured Loans and CLOs

In the first half of 2023, the US senior secured loan market (leveraged loan market) performed well generating 6.63% of total return as measured by the Credit Suisse Leveraged Loan Index. The performance was driven by high coupon distributions and increased prices. The average price increased from 91.89 at the beginning of the year to 93.55 as of end of June 2023. Default rates, while higher than in 2021 and 2022, remained below historical averages. As of 30 June 2023, the par-weighted 12-month default rate was at 1.71%, up from 0.72% at the beginning of the year. Concerns over the weakening credit environment, however, prompted investors to withdraw USD 18.9 billion from mutual funds and ETFs. New issue supply was muted compared to prior years but steady refinancing activity has contributed to a 50% reduction in loans maturing in 2024 and a 25% reduction in loans maturing in 2025.

New issue CLO market was also slower than in previous years recording USD 56 billion in new issuance as compared to USD 73 billion in 2022. CLO liability spreads remained wider than returns offered by loans and modelled new issue equity returns appeared weak. Secondary market, especially for CLO debt tranches were, however, active as high coupons and price convexity incited investors to add risk.

While defaults were lower than expected, we anticipate recoveries to be lower than historical averages and impact seasoned CLO equity tranches and potentially a handful of lower rated CLO debt tranches as well. Increasing interest expenses are likely to prompt increased downgrade activity especially if nominal growth rates slow down, and we anticipate older CLOs to face pressure on their over-collateralization tests. 2021 and 2022 vintage CLOs are likely to perform much better.

Given the uncertain outlook, in light of higher rates for longer, management had already paused investments into CLO equity tranches since April 2022. The Company has no open warehouses as of 30 June 2023. During the period, the portfolio generated cashflow of USD 11.0m. Consistent and robust cashflow from the existing portfolio has allowed the Company to increase its cash and marketable securities position substantially. We are monitoring the CLO and loan market closely and anticipate investing in the market when opportunities present themselves.

 

The Company's CLO portfolio is divided into the following geographical areas:

 

30 June 2023

30 June 2022

31 December 2022


US $000

Percentage

US $000

Percentage

US $000

Percentage

US CLOs

64,217

100.0%

77,077

100.0%

66,576

100.0%


------

------

------

------

------

------

 

Private Equity and Fund Investments

The Company has invested in some small private companies with robust growth and potential.

 

 

 

The following summarizes the book value of the fund investments at 30 June 2023:

 

US $m

Fetcherr Ltd

1.8

Phytech (Israel)

2.6

Other investments

2.0

 

---

Total

6.4

 

---

 

Fetcherr Ltd ("Fetcherr"):  Fetcherr is an Israeli start-up that has developed a proprietary AI-powered goal based enterprise pricing and workflow optimization system. Founded in 2019 by experts in deep learning, Algo-trading, e-commerce, and digitization of legacy architecture, Fetcherr aims to disrupt traditional rule-based (legacy) revenue systems through reinforcement learning methodologies, beginning with the airline industry. The Company invested USD 2m in 2021. In 2023, Fetcherr raised over USD 10m in the form of a convertible instrument with a valuation cap of USD 100m. Post balance-sheet, the Company purchased additional shares from an ex-employee of Fetcherr at a valuation of about USD 67m.

Phytech Ltd ("Phytech"):  Phytech is an agriculture-technology company in Israel providing end-to-end solutions for achieving higher yields on crops and trees. In September 2020, Phytech raised USD 25m at a pre-money valuation of USD 105m. As part of the capital raise, the manager of the investment reduced its holding in Phytech and distributed USD 471k (versus our investment of USD 394k) in cash. Following these transactions, Livermore continues to hold 12.2% in Phytech Global Advisors Ltd, which in turns now holds 11.95% on a fully diluted basis in Phytech Ltd.

 

The following table reconciles the review of activities to the Group's financial assets at 30 June 2023.  

 

US $m

Financial portfolio

110.9

Fund investments

6.4

 

-----

 

117.3

 

-----

 


Financial assets at fair value through profit or loss (note 4)

110.9

Financial assets at fair value through other comprehensive income (note 5)

6.4

 

-----


117.3

 

-----

 

Events after the reporting date

There were no material events after the reporting date, which have a bearing on the understanding of these interim condensed consolidated financial statements.

 

Litigation

Information is provided in note 22 to the interim condensed consolidated financial statements.

 

Going Concern

The Directors have reviewed the current and projected financial position of the Company, making reasonable assumptions about cash and short-term holdings, interest and distribution income, future trading performance, valuation projections and debt requirements. On the basis of this review, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the interim condensed consolidated financial statements.



 

Livermore Investments Group Limited

Condensed Consolidated Statement of Financial Position

at 30 June 2023

 

Note

30 June

2023

Unaudited

30 June

2022

Unaudited

31 December

2022

Audited

Assets


US $000

US $000

US $000

Non-current assets





Property, plant and equipment


45

50

43

Right-of-use asset


45

126

87

Financial assets at fair value through profit or loss

4

64,217

77,077

66,576

Financial assets at fair value through other

comprehensive income

 

5

 

6,424

 

10,376

 

7,596

Investments in subsidiaries

8

5,700

6,484

6,546

 


------

-------

-------

 


76,431

94,113

80,848

 


------

-------

-------

Current assets





Trade and other receivables

9

689

325

72

Financial assets at fair value through profit or loss

4

46,733

20,304

39,800

Cash and cash equivalents

10

13,273

18,947

10,971



-------

-------

-------



60,695

39,576

50,843



-------

-------

-------

Total assets


137,126

133,689

131,691



-------

-------

-------

Equity





Share capital

11

-

-

-

Share premium and treasury shares

11

163,130

163,130

163,130

Other reserves


(21,295)

(20,128)

(21,214)

Accumulated losses


(10,245)

(13,045)

(14,191)



-------

-------

-------

Total equity


131,590

129,957

127,725



-------

-------

-------

Liabilities





Non-current liabilities





Lease liability


-

42

-



-------

-------

-------






Current liabilities





Bank overdrafts

10

1,985

-

-

Trade and other payables

12

3,351

3,606

3,733

Lease liability - current portion


45

84

87

Current tax liability


155

-

146



-------

-------

-------

 


5,536

3,690

3,966



-------

-------

-------

Total liabilities


5,536

3,732

3,966

 


-------

-------

-------

Total equity and liabilities


137,126

133,689

131,691



-------

-------

-------

Net asset value per share





Basic and diluted net asset value per share (US $)

14

0.80

0.79

0.77



-------

-------

-------

 

 

 

 

 

 

 

 

 

Livermore Investments Group Limited

Condensed Consolidated Statement of Profit or Loss

for the six months ended 30 June 2023

 

 

 

Note

Six months

ended

30 June

2023

Unaudited

Six months

ended

30 June

2022

Unaudited

Year

ended

31 December

2022

Audited

 

 


US $000

US $000

US $000

 

 





 

Investment income





 

Interest and distribution income

16

11,468

13,748

23,665

 

Fair value changes of investments

17

(5,786)

(33,734)

(44,637)

 

 


-------

-------

-------

 

 


5,682

(19,986)

(20,972)

 

Other income


294

-

-

 

Operating expenses

18

  (1,651)

(1,430)

(3,000)

 



-------

-------

-------

 

Operating profit / (loss)


4,325

(21,416)

(23,972)

 

Finance costs

19

(382)

(250)

(265)

 

Finance income

19

37

3

42

 



-------

-------

-------

 

Profit / (loss) before taxation


3,980

(21,663)

(24,195)

 

Taxation charge


(31)

-

(167)

 



-------

-------

-------

 

Profit / (loss) for period / year


3,949

(21,663)

(24,362)


 


-------

-------

-------

 

 





 

Earnings / (loss) per share





 

Basic and diluted earnings / (loss) per share (US $)

20

0.02

(0.13)

(0.15)

 



-------

-------

-------

 

 



Livermore Investments Group Limited

Condensed Consolidated Statement of Comprehensive Income

for the six months ended 30 June 2023

 


Six months

ended

30 June

2023

Unaudited

Six months

ended

30 June

2022

Unaudited

Year

ended

31 December

2022

Audited

 


US $000

US $000

US $000

 





Profit / (loss) for the period / year


3,949

(21,663)

(24,362)

 





Other comprehensive income:





Items that will be reclassified subsequently to profit or loss





Foreign exchange gains / (losses) on the translation of subsidiaries


30

(43)

(29)






Items that are not reclassified subsequently to profit or loss





Financial assets designated at fair value through other comprehensive income - fair value losses


(114)

(2,059)

(1,606)



------

------

------

Total comprehensive income / (loss) for the period / year


3,865

(23,765)

(25,997)



------

------

------

 

The total comprehensive income / (loss) for the period / year is wholly attributable to the owners of the Company.



Livermore Investments Group Limited

Condensed Consolidated Statement of Changes in Equity

for the period ended 30 June 2023

 

 

Share

premium

Treasury shares

Translation reserve

Investment revaluation reserve

Retained earnings

Total

 


US $000

US $000

US $000

US $000

US $000

US $000

Balance at 1 January 2022


169,187

(6,057)

84

(18,110)

32,618

177,722

Dividends


-

-

-

-

(24,000)

(24,000)

 


-------

-------

-------

-------

-------

-------

Transactions with owners


-

-

-

-

(24,000)

(24,000)



-------

-------

-------

-------

-------

-------

Loss for the year


-

-

-

-

(24,362)

(24,362)

Other comprehensive income:








Financial assets at fair value through other comprehensive income - fair value losses


                -

                -

-

(1,606)

-

(1,606)

Foreign exchange losses on the translation of subsidiaries


                -

                -

(29)

-

-

(29)

Transfer of realised gains


                -

                -

-

(1,553)

1,553

-



-------

-------

-------

-------

-------

-------

Total comprehensive loss for the year


-

-

(29)

(3,159)

(22,809)

(25,997)



-------

-------

-------

-------

-------

-------

Balance at 31 December 2022


169,187

(6,057)

55

(21,269)

(14,191)

127,725

 








Profit for the period


-

-

-

-

3,949

3,949

Other comprehensive income:








Financial assets at fair value through other comprehensive income - fair value losses

    

-

-

-

(114)

-

(114)

Foreign exchange gains on the translation of subsidiaries


-

-

30

-

-

30

Transferred of realised losses


-

-

-

3

(3)

-



-------

-------

-------

-------

-------

-------

Total comprehensive income for the period

-

-

30

(111)

3,946

3,865



-------

-------

-------

-------

-------

-------

Balance at 30 June 2023


169,187

(6,057)

85

(21,380)

(10,245)

131,590



-------

-------

-------

-------

-------

-------

 

 

 

 

 

 

 

Share

premium

Treasury shares

Translation reserve

Investment revaluation reserve

Retained earnings

Total

 


US $000

US $000

US $000

US $000

US $000

US $000

Balance at 1 January 2022


169,187

(6,057)

84

(18,110)

32,618

177,722

Dividends


-

-

-

-

(24,000)

(24,000)

 


-------

-------

-------

-------

-------

-------

Transactions with owners


-

-

-

-

(24,000)

(24,000)



-------

-------

-------

-------

-------

-------

Loss for the period


-

-

-

-

(21,663)

(21,663)

Other comprehensive income:








Financial assets at fair value through other comprehensive income - fair value losses


-

-

-

(2,059)

-

(2,059)

Foreign exchange losses on the translation of subsidiaries


-

-

(43)

-

-

(43)

 

 

-------

-------

-------

-------

-------

-------

Total comprehensive income for the period

-


(43)

(2,059)

(21,663)

(23,765)



-------

-------

-------

-------

-------

-------

Balance at 30 June 2022


169,187

(6,057)

41

(20,169)

(13,045)

129,957



-------

-------

-------

-------

-------

-------



Livermore Investments Group Limited

Condensed Consolidated Statement of Cash Flows

for the period ended 30 June 2023

 

 

Note

Six months

ended

30 June

2023

Unaudited

Six months

ended

30 June

2022

Unaudited

Year

ended

31 December

2022

Audited

 

 

US $000

US $000

US $000

Cash flows from operating activities





Profit / (loss) before taxation


3,980

(21,663)

(24,195)






Adjustments for:





Depreciation expense


64

63

102

Interest expense

19

21

22

36

Interest and distribution income

16

(11,468)

(13,748)

(23,665)

Bank interest income

19

(37)

(3)

(42)

Fair value changes of investments

17

5,786

33,734

44,637

Exchange differences

19

361

228

229



-------

-------

-------



(1,293)

(1,367)

(2,898)

Changes in working capital





Increase in trade and other receivables


(623)

(24)

(62)

Decrease in trade and other payables


(382)

(3,335)

(2,928)



-------

-------

-------

Cash flows used in operations


(2,298)

(4,726)

(5,888)

Interest and distributions received


11,505

13,751

23,707

Tax paid


(22)

(36)

(32)



-------

-------

-------

Net cash from operating activities


9,185

8,989

17,787

 


-------

-------

-------

Cash flows from investing activities





Acquisition of investments


(21,719)

(51,896)

(74,283)

Proceeds from sale of investments


13,301

41,037

46,729



-------

-------

-------

Net cash used in investing activities


(8,418)

(10,859)

(27,554)



-------

-------

-------

Cash flows from financing activities





Lease liability payments


(68)

(63)

(127)

Interest paid

19

(21)

(22)

(36)

Dividends paid


-

(24,000)

(24,000)



-------

-------

-------

Net cash used in financing activities


(89)

(24,085)

(24,163)



-------

-------

-------

 





Net increase / (decrease) in cash and cash equivalents


678

(25,955)

(33,930)

Cash and cash equivalents at beginning of the period / year


10,971

45,130

45,130

Exchange differences on cash and cash equivalents

19

(361)

(228)

(229)



-------

-------

-------

Cash and cash equivalents at the end of the period / year

10

11,288

18,947

10,971



-------

-------

-------


Notes to the Interim Condensed Consolidated Financial Statements

 

 

1.    Accounting policies

The interim condensed consolidated financial statements of Livermore have been prepared on the basis of the accounting policies stated in the 2022 Annual Report, available on www.livermore-inv.com.

The application of the IFRS pronouncements that became effective as of 1 January 2023 has no significant impact on the Company's consolidated financial statements.

 

2.    Critical accounting judgements

In preparing the interim condensed consolidated financial statements, management made judgements and assumptions. The actual results may differ from those judgements and assumptions. The critical accounting judgements applied in the interim condensed consolidated financial statements were the same as those applied and disclosed in the Company's last annual consolidated financial statements for the year ended 31 December 2022.

 

3.    Basis of preparation

These unaudited interim condensed consolidated financial statements for the six months ended 30 June 2023, have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the European Union. They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Company for the year ended 31 December 2022.

The financial information for the year ended 31 December 2022 is extracted from the Company's consolidated financial statements for the year ended 31 December 2022 which contained an unqualified audit report.

 

Investment entity status

Livermore meets the definition of an investment entity, as this is defined in IFRS 10 "Consolidated Financial Statements".

In accordance with IFRS 10, an investment entity is exempted from consolidating its subsidiaries, unless any subsidiary which is not itself an investment entity mainly provides services that relate to the investment entity's investment activities. In Livermore's situation and as at the reporting date, one of its subsidiaries provide such services. Note 8 shows further details of the consolidated and unconsolidated subsidiaries.  

References to the Company hereinafter also includes its consolidated subsidiary (note 8).

 

 

4.    Financial assets at fair value through profit or loss

 

 

30 June

2023

Unaudited

30 June

2022

Unaudited

31 December

2022

Audited


US $000

US $000

US $000

Non-current assets




Fixed income investments (CLOs)

64,217

77,077

66,576


------

------

------

Current assets




Fixed income investments

44,137

18,431

37,519

Public equity investments

2,596

1,873

2,281


 ------

 ------

------


46,733

20,304

39,800


------

------

------

 

For description of each of the above categories, refer to note 6.

The above investments represent financial assets that are mandatorily measured at fair value through profit or loss.

The Company treats its investments in the loan market through CLOs as non-current investments as the Company generally intends to hold such investments over a period longer than twelve months.

The movement in financial assets at fair value through profit or loss was as follows:

 

 

30 June

2023

Unaudited

30 June

2022

Unaudited

31 December

2022

Audited


US $000

US $000

US $000


 

 

 

At 1 January

106,376

119,220

119,220

Purchases

20,780

51,896

73,963

Sales

(11,304)

(17,523)

(19,662)

Settlements

-

(23,514)

(23,514)

Fair value losses

(4,902)

(32,698)

(43,631)


 -------

 -------

-------

At 30 June / 31 December

110,950

97,381

106,376


-------

-------

-------

 

 

5.    Financial assets at fair value through other comprehensive income

 

 

30 June

2023

Unaudited

30 June

2022

Unaudited

31 December

2022

Audited


US $000

US $000

US $000

Non-current assets




Fund investments

6,424

10,376

7,596


------

------

------

 

For description of each of the above categories, refer to note 6.

The above investments are non-trading equity investments that have been designated at fair value through other comprehensive income.



 

The movement in financial assets at fair value through other comprehensive income was as follows:

 

 

30 June

2023

Unaudited

30 June

2022

Unaudited

31 December

2022

Audited


US $000

US $000

US $000


 

 

 

At 1 January

7,596

12,435

12,435

Purchases

939

-

320

Settlements

(1,997)

-

(3,553)

Fair value losses

(114)

(2,059)

(1,606)


 ------

 ------

------

At 30 June / 31 December

6,424

10,376

7,596


------

------

------

 

 

6.    Financial assets at fair value

The Company allocates its non-derivative financial assets at fair value (notes 4 and 5) as follows:

·      Fixed income investments relate to fixed and floating rate bonds, perpetual bank debt, investments in the loan market through CLOs, and investments in open warehouse facilities.

·      Public equity investments relate to investments in shares of companies listed on public stock exchanges.

·      Fund investments relate to investments in the form of equity purchases in both high growth opportunities in emerging markets and deep value opportunities in mature markets. The Company generally invests directly in prospects where it can exert influence. Main investments under this category are in the fields of real estate. 

 

 

7.    Fair value measurements of financial assets and liabilities

The table in note 7.2 below presents financial assets measured at fair value in the consolidated statement of financial position in accordance with the fair value hierarchy.  This hierarchy groups financial assets and liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy has the following levels:

·      Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

·      Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

·      Level 3: unobservable inputs for the asset or liability.

The level within which the financial asset is classified is determined based on the lowest level of significant input to the fair value measurement.

 

 7.1   Valuation of financial assets and liabilities

·      Fixed Income Investments and Public Equity Investments are valued per their closing market prices on quoted exchanges, or as quoted by market maker. Investments in open warehouse facilities that have not yet been converted to CLOs, are valued based on an adjusted net asset valuation.   

The Company values the CLOs based on the valuation reports provided by market makers. CLOs are typically valued by market makers using discounted cash flow models. The key assumptions for cash flow projections include default and recovery rates, prepayment rates and reinvestment assumptions on the underlying portfolios (typically senior secured loans) of the CLOs.

Default and recovery rates: The amount and timing of defaults in the underlying collateral and the amount and timing of recovery upon a default are key to the future cash flows a CLO will distribute to the CLO equity tranche. All else equal, higher default rates and lower recovery rates typically lead to lower cash flows. Conversely, lower default rates and higher recoveries lead to higher cash flows.

Prepayment rates: Senior loans can be pre-paid by borrowers. CLOs that are within their reinvestment period may, subject to certain conditions, reinvest such prepayments into other loans which may have different spreads and maturities. CLOs that are beyond their reinvestment period typically pay down their senior liabilities from proceeds of such pre-payments. Therefore, the rate at which the underlying collateral prepays impacts the future cash flows that the CLO may generate.

Reinvestment assumptions: A CLO within its reinvestment period may reinvest proceeds from loan maturities, prepayments, and recoveries into purchasing additional loans. The reinvestment assumptions define the characteristics of the loans that a CLO may reinvest in. These assumptions include the spreads, maturities, and prices of such loans. Reinvestment into loans with higher spreads and lower prices will lead to higher cash flows. Reinvestment into loans with lower spreads will typically lead to lower cash flows.

Discount rate: The discount rate indicates the yield that market participants expect to receive and is used to discount the projected future cash flows. Higher yield expectations or discount rates lead to lower prices and lower discount rates lead to higher prices for CLOs.  

·      Fund investments are valued using market valuation techniques as determined by the Directors, mainly on the basis of valuations reported by third-party managers of such investments. Real Estate entities are valued by independent qualified property valuers with substantial relevant experience on such investments. Underlying property values are determined based on their estimated market values.    

·      Investments in subsidiaries are valued at fair value as determined on a net asset valuation basis. The Company has determined that the reported net asset value of each subsidiary represents its fair value at the end of the reporting period.

 

7.2    Fair Value Hierarchy

Financial assets measured at fair value are grouped into the fair value hierarchy as follows:      

30 June 2023

US $000

US $000

US $000

US $000


Level 1

Level 2

Level 3

Total

Fixed income investments

44,137

64,217

-

108,354

Fund investments

-

-

6,424

6,424

Public equity investments

2,596

-

-

2,596

Investments in subsidiaries

-

-

5,700

5,700


------

------

------

------


46,733

64,217

12,124

123,074


------

------

------

------

 

30 June 2022

US $000

US $000

US $000

US $000


Level 1

Level 2

Level 3

Total

Fixed income investments

18,431

77,077

-

95,508

Fund investments

-

-

10,376

10,376

Public equity investments

1,873

-

-

1,873

Investments in subsidiaries

-

-

6,484

6,484


------

------

------

------


20,304

77,077

16,860

114,241


------

------

------

------

 

31 December 2022

US $000

US $000

US $000

US $000


Level 1

Level 2

Level 3

Total

Fixed income investments

37,519

66,576

-

104,095

Fund investments

-

-

7,596

7,596

Public equity investments

2,281

-

-

2,281

Investments in subsidiaries

-

-

6,546

6,546


------

------

------

------


39,800

66,576

14,142

120,518


------

------

------

------

 

The Company has no financial liabilities measured at fair value.

The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous reporting period.

No financial assets have been transferred between different levels. 

 

Financial assets within level 3 can be reconciled from beginning to ending balances as follows:

Six months ended 30 June 2023

 

At fair value through OCI

Investments in subsidiaries

 

 

Fund investments

 

Total


US $000

US $000

US $000

At 1 January 2023

7,596

6,546

14,142

Purchases

939

38

977

Settlement

(1,997)

-

(1,997)

Losses recognised in:




- Other comprehensive income

(114)

(884)

(998)


------

------

------

At 30 June 2023

6,424

5,700

12,124


------

------

------

 

Six months ended 30 June 2022

 

At fair value through OCI

 

At fair value through profit or loss

Investments in subsidiaries

 

 

 

Fund investments

Fixed Income

investments

 

Total


US $000

US $000

US $000

US $000

At 1 January 2022

12,435

7,584

7,196

27,215

Purchases

-

15,930

324

16,254

Settlement


(23,514)

-

(23,514)

Losses recognised in:





- Profit or loss

-

-

(1,036)

(1,036)

- Other comprehensive income

(2,059)

-

-

(2,059)


------

------

------

------

At 30 June 2022

10,376

-

6,484

16,860


------

------

------

------

 

Year ended 31 December 2022

 

At fair value through OCI

At fair value through profit or loss

Investments in subsidiaries

 

 

Fund investments

Fixed Income

investments

 

Total


US $000

US $000

US $000

US $000

At 1 January 2022

12,435

7,584

7,196

27,215

Purchases

320

15,930

356

16,606

Settlement

(3,553)

(23,514)

-

(27,067)

Losses recognised in:





- Profit or loss

-

-

(1,006)

(1,006)

- Other comprehensive income

(1,606)

-

-

(1,606)


------

------

------

------

At 31 December 2022

7,596

-

6,546

14,142


------

------

------

------

 



 

The above recognised losses are allocated as follows: 

Six months ended 30 June 2023

At fair value through OCI

Investments in subsidiaries

 

 

Fund investments

 

Total

 

US $000

US $000

US $000

Profit or loss

 

 

 

- Financial assets held at period-end

-

(884)

(884)

 

------

------

------

Other comprehensive income




- Financial assets held at period-end

(114)

-

(114)


------

------

------

Total losses for period

(114)

(884)

(998)


------

------

------





 

Six months ended 30 June 2022

At fair value through OCI

Investments in subsidiaries

 

 

Fund investments

 

Total

 

US $000

US $000

US $000

Profit or loss




- Financial assets held at period-end

-

(1,036)

(1,036)


------

------

------

Other comprehensive income




- Financial assets held at period-end

(2,059)

-

(2,059)


------

------

------

Total losses for period

(2,059)

(1,036)

(3,095)


------

------

------





 

Year ended 31 December 2022

At fair value through OCI

Investments in subsidiaries

 

 

 

Fund investments

 

Total

 

US $000

US $000

US $000

Profit or loss




- Financial assets held at year-end

-

(1,006)

(1,006)


------

------

------

Other comprehensive income




- Financial assets held at year-end

(1,606)

-

(1,606)


------

------

------

Total losses for year

(1,606)

(1,006)

(2,612)


------

------

------

The Company has not developed any quantitative unobservable inputs for measuring the fair value of its level 3 financial assets. Instead, the Company used prices from third-party pricing information without adjustment.

Fund investments within level 3 represent investments in private equity funds. Their value has been determined by each fund manager based on the funds' net asset value. Each fund's net asset value is primarily driven by the fair value of its underlying investments. In all cases, considering that such investments are measured at fair value, the carrying amounts of the funds' underlying assets and liabilities are considered as representative of their fair values.

Investments in subsidiaries have been valued based on their net asset position. The main assets of the subsidiaries represent investments measured at fair value and receivables from the Company itself as well as third parties. Their net asset value is considered as a fair approximation of their fair value.

A reasonable change in any individual significant input used in the level 3 valuations is not anticipated to have a significant change in fair values as above.

 

8.    Investment in subsidiaries

 

 

30 June

2023

Unaudited

30 June

2022

Unaudited


US $000

US $000

US $000

Unconsolidated subsidiaries




At 1 January

6,546

7,196

7,196

Additions

38

324

356

Fair value losses

(884)

(1,036)

(1,006)


------

------

------

At 30 June / 31 December

5,700

6,484

6,546


------

------

------

 

All additions in 2023 and 2022 relate to the fair value of amounts receivable from the Company's unconsolidated subsidiary Sandhirst Ltd, that were waived by the Company as a means of capital contribution (note 21).

 

The investments in which the Company has a controlling interest as at the reporting date are as follows:

Name of Subsidiary

Place of incorporation

Holding

Voting rights and shares held

Principal activity

Consolidated subsidiary





Livermore Capital AG

Switzerland

Ordinary shares

100%

Administration services






Unconsolidated subsidiaries





Livermore Properties Limited

British Virgin Islands

Ordinary shares

100%

Holding of investments

Mountview Holdings Limited

British Virgin Islands

Ordinary shares

100%

Investment vehicle

Sycamore Loan Strategies Ltd

Cayman Islands

Ordinary shares

100%

Investment vehicle

Livermore Israel Investments Ltd

Israel

Ordinary shares

100%

Holding of investments

Sandhirst Ltd

Cyprus

Ordinary shares

100%

Holding of investments

 

 

9.    Trade and other receivables

 

 

30 June

2023

Unaudited

30 June

2022

Unaudited


US $000

US $000

US $000

Financial items




Amounts due by related parties (note 21)

-

58

-





Non-financial items




Advances to related party (note 21)

610

201

-

Prepayments

72

60

66

VAT receivable

7

6

6


------

------

------


689

325

72


------

------

------

 

For the Company's receivables of a financial nature, no lifetime expected credit losses and no corresponding allowance for impairment have been recognised, as their default rates were determined to be close to 0%.  

No receivable amounts have been written-off during either 2023 or 2022.

10.  Cash and cash equivalents

Cash and cash equivalents included in the consolidated cash flow statement comprise the following:

 

30 June

2023

Unaudited

30 June

2022

Unaudited

31 December

2022

Audited

 

US $000

US $000

US $000

Demand deposits

13,273

18,947

10,971

Bank overdraft used for cash management purposes

(1,985)

-

-


------

------

------

Cash and cash equivalents

11,288

18,947

10,971


------

------

------

 

 

11.  Share capital, share premium and treasury shares  

Livermore Investments Group Limited (the "Company") is an investment company incorporated under the laws of the British Virgin Islands.  The Company has an issued share capital of 174,813,998 ordinary shares with no par value.

In the statement of financial position, the amount included as 'share premium and treasury shares' comprises of:

 

30 June

2023

Unaudited

30 June

2022

Unaudited

31 December

2022

Audited

 

US $000

US $000

US $000

Share premium

169,187

169,187

169,187

Treasury shares

(6,057)

(6,057)

(6,057)


-------

-------

-------


163,130

163,130

163,130


-------

-------

-------

 

 

12.  Trade and other payables

 

 

30 June

2023

Unaudited

30 June

2022

Unaudited


US $000

US $000

US $000

Financial items




Trade payables

129

99

63

Amounts due to related parties (note 21)

3,071

3,198

3,283

Accrued expenses

151

309

387


------

------

------


3,351

3,606

3,733


------

------

------

 

 

13.  Dividend

The Board of Directors will decide on the Company's dividend policy for 2023 based on profitability, liquidity requirements, portfolio performance, market conditions, and the share price of the Company relative to its net asset value.

 

 

 

14.  Net asset value per share

 

30 June

2023

Unaudited

30 June

2022

Unaudited

31 December

2022

Audited

Net assets attributable to ordinary shareholders (USD 000)

131,590

129,957

127,725


-------------

-------------

-------------

Closing number of ordinary shares in issue

165,355,421

165,355,421

165,355,421


-------------

-------------

-------------

Basic net asset value per share (USD)

0.80

0.79

0.77


-------------

-------------

-------------

Number of Shares




Ordinary shares

174,813,998

174,813,998

174,813,998

Treasury shares

(9,458,577)

(9,458,577)

(9,458,577)


-------------

-------------

-------------

Closing number of ordinary shares in issue

165,355,421

165,355,421

165,355,421


-------------

-------------

-------------

 

The diluted net asset value per share equals the basic net asset value per share since no potentially dilutive shares exist at any of the reporting dates presented.

 

 

15.  Segment reporting

The Company's activities fall under a single operating segment.

The Company's investment income / (losses) and its investments are divided into the following geographical areas:

 

Six months

ended 30 June

2023

Unaudited

Six months

ended 30 June

2022

Unaudited

Year ended

31 December

2022

Audited

 

US $000

US $000

US $000

Investment income / (losses)




Other European countries

(296)

(773)

(2,956)

United States

6,932

(17,820)

(16,320)

Asia

(954)

(1,393)

(1,696)


-------

-------

-------


5,682

(19,986)

(20,972)


-------

-------

-------

Investments




Other European countries

6,348

1,478

6,850

United States

109,478

105,128

105,577

Asia

7,248

7,635

8,091


-------

-------

-------


123,074

114,241

120,518

 

-------

-------

-------

 

Investment income / (losses), comprising interest and distribution income as well as fair value gains or losses on investments, is allocated based on the issuer's location. Investments are also allocated based on the issuer's location.

The Company has no significant dependencies, in respect of its investment income, on any single issuer.

 

 



 

16.  Interest and distribution income

 

Six months

ended 30 June

2023

Unaudited

Six months

ended 30 June

2022

Unaudited

Year ended

31 December

2022

Audited

 

US $000

US $000

US $000

Interest income

1,057

240

1,207

Distribution income

10,411

13,508

22,458


------

------

------


11,468

13,748

23,665

 

------

------

------

 

Interest and distribution income is analysed between the Company's different categories of financial assets, as follows:

 

Six months ended 30 June 2023

 

Interest income

Distribution income

Total

Financial assets at fair value through profit or loss

US $000

US $000

US $000

Fixed income investments

1,057

10,363

11,420

Public equity investments

-

48

48


------

------

------


1,057

10,411

11,468

 

------

------

------

 

 

Six months ended 30 June 2022

 

Interest income

Distribution income

Total

Financial assets at fair value through profit or loss

US $000

US $000

US $000

Fixed income investments

240

13,321

13,561

Public equity investments

-

187

187


------

------

------


240

13,508

13,748

 

------

------

------

 

 

Year ended 31 December 2022

 

Interest income

Distribution income

Total

Financial assets at fair value through profit or loss

US $000

US $000

US $000

Fixed income investments

1,207

22,282

23,489

Public equity investments

-

176

176


------

------

------


1,207

22,458

23,665

 

------

------

------

        

The Company's distribution income derives from multiple issuers. The Company does not have concentration to any single issuer.

 

 



 

17.  Fair value changes of investments

 

Six months

ended 30 June

2023

Unaudited

Six months

ended 30 June

2022

Unaudited

Year ended

31 December

2022

Audited

 

US $000

US $000

US $000

Fair value losses on financial assets through profit or loss

(4,751)

(32,698)

(43,782)

Fair value losses on investment in subsidiaries

(884)

(1,036)

(1,006)

Fair value (losses) / gains on derivatives

(151)

-

151


-------

-------

-------


(5,786)

(33,734)

(44,637)

 

-------

-------

-------

 

The investments disposed in the six months ended 30 June 2023 had the following cumulative (i.e. from the date of acquisition up to the date of disposal) financial impact in the Company's net asset position:   

 

 

Realised gains*

Unaudited

Cumulative distribution or interest

Unaudited

 

Total financial impact

Unaudited

 

US $000

US $000

US $000

Financial assets at fair value through profit or loss




Fixed income investments

(444)

623

179

Derivatives

(151)

-

(151)


-------

-------

-------


(595)

623

28

Financial assets at fair value through OCI




Private equities

(3)

-

(3)


-------

-------

-------


(598)

623

25

 

------

------

------

* difference between disposal proceeds and original acquisition cost

 

 

18.  Operating expenses

 

Six months

ended 30 June

2023

Unaudited

Six months

ended 30 June

2022

Unaudited

Year ended

31 December

2022

Audited

 

US $000

US $000

US $000

Directors' fees and expenses

440

492

932

Other salaries and expenses

123

105

237

Professional and consulting fees

568

426

822

Legal expenses

2

3

13

Bank custody fees

87

60

139

Office cost

98

96

237

Depreciation

64

63

102

Other operating expenses

254

171

441

Audit fees

15

14

75

Tax fees

-

-

2

 

------

------

------

 

1,651

1,430

3,000

 

------

------

------

 

 



 

19.  Finance costs and income

 

Six months

ended 30 June

2023

Unaudited

Six months

ended 30 June

2022

Unaudited

Year ended

31 December

2022

Audited

 

US $000

US $000

US $000

Finance costs




Bank interest costs

21

22

36

Foreign exchange loss

361

228

229


------

------

------


382

250

265

 

------

------

------

Finance income

 

 

 

Bank interest income

37

3

42

 

------

------

------

 

 

20.  Earnings / (loss) per share

Basic earnings / (loss) per share has been calculated by dividing the profit / (loss) for the period / year attributable to ordinary shareholders of the Company by the weighted average number of shares in issue of the Company during the relevant financial periods. 

 

 

Six months

ended 30 June

2023

Unaudited

Six months

ended 30 June

2022

Unaudited

Year ended

31 December

2022

Audited

Profit / (loss) for the period / year attributable to ordinary shareholders of the parent (USD 000)

3,949

(21,663)

(24,362)


----------

----------

----------

Weighted average number of ordinary shares outstanding

165,355,421

165,355,421

165,355,421


----------

----------

----------

Basic earnings / (loss) per share (USD)

0.02

(0.13)

(0.15)


----------

----------

----------

 

The diluted earnings / (loss) per share equals the basic earnings / (loss) per share since no potentially dilutive shares were in existence during 2023 and 2022.

 

 



 

21.  Related party transactions

The Company is controlled by Groverton Management Ltd, an entity owned by Noam Lanir, which at 30 June 2023 held 74.41% of the Company's voting rights.

 

 

 

30 June

2023

Unaudited

30 June

2022

Unaudited

31 December

2022

Audited

 

 

US $000

US $000

US $000

 

Amounts receivable from / advances to key management




 

Directors' current accounts

-

58

-

(1)

Advances to other key management personnel

610

201

-

(2)


------

------

------



610

259

-



------

------

------

 

Amounts payable to unconsolidated subsidiaries





Livermore Israel Investments Ltd

(3,046)

(3,046)

(3,046)

(3)

 

------

------

------


Amounts payable to other related party





Loan payable

-

(149)

(149)

(4)


------

------

------


Amounts payable to key management





Directors' current accounts

(25)

(3)

(88)

(3)


------

------

------


 

Key management compensation





Short term benefits





Executive Directors' fees

398

398

795

(5)

Non-executive Directors' fees

42

44

87


Non-executive Directors' reward payments

-

50

50


Other key management fees

200

194

385



------

------

------



640

686

1,317



------

------

------


(1)  The Directors' current accounts with debit balances are interest free, unsecured, and have no stated repayment date.

(2)  The advances to other key management personnel relate to payments made to members of key management against their remuneration for the second half of 2023.

(3)  The amounts payable to unconsolidated subsidiary and Directors' current accounts with credit balances are interest free, unsecured, and have no stated repayment date. 

(4)  A loan of USD 0.149m was payable to a related company (under common control) Chanpak Ltd. During the period, the right to receive the loan amount was assigned by Chanpak Ltd to Noam Lanir.  At the same time, the Company agreed with Noam Lanir to transfer the outstanding loan amount to his Director current account.

(5)  These payments were made directly to companies which are related to the Directors.

 

During the period, the Company waived a receivable amount of USD 0.038m (30 June 2022: USD 0.324, 31 December 2022: USD 0.356m) from its subsidiary Sandhirst Ltd, as a means of capital contribution to the subsidiary (note 8).

No social insurance and similar contributions nor any other defined benefit contributions plan costs incurred for the Group in relation to its key management personnel in either 2023 or 2022.

 

 



 

22.   Litigation

Fairfield Sentry Ltd vs custodian bank and beneficial owners

One of the custodian banks that the Company used faces a contingent claim up to USD 2.1m, and any interest as will be decided by a US court and related legal fees, with regards to the redemption of shares in Fairfield Sentry Ltd, which were bought in 2008 at the request of Livermore and on its behalf. If the claim proves to be successful, Livermore will have to compensate the custodian bank since the transaction was carried out on Livermore's behalf. The same case was also filed in BVI where the Privy Council ruled against the plaintiffs.

As a result of the surrounding uncertainties over the outcome of the case and over the existence of any obligation for Livermore, no provision has been made.

 

 

23.   Commitments

The Company has expressed its intention to provide financial support to its subsidiaries, where necessary, to enable them to meet their obligations as they fall due.

Other than the above, the Company has no capital or other commitments at 30 June 2023.

 

 

24.   Events after the reporting date

There were no material events after the reporting date, which have a bearing on the understanding of these interim condensed consolidated financial statements.

 

 

25.   Preparation of interim financial statements

Interim condensed consolidated financial statements are unaudited. Consolidated financial statements for Livermore Investments Group Limited for the year ended 31 December 2022, prepared in accordance with International Financial Reporting Standards as adopted by the European Union, on which the auditors gave an unqualified audit report are available on the Company's website www.livermore-inv.com.



GTlogo-RGB-135

 

Review Report to the Members of Livermore Investments

Group Limited

 

Review Report on the interim Condensed Consolidated Financial Statements

 

Introduction

 

We have reviewed the interim condensed consolidated financial statements of Livermore Investments Group Limited (the ''Company'') and its subsidiary (together with the Company "the Group"), which are presented in pages 7 to 25 and comprise the condensed consolidated statement of financial position as at 30 June 2023 and the consolidated statements of comprehensive income, changes in equity and for the period from 1 January 2023 to 30 June 2023, and notes to the interim condensed consolidated financial statements, including a summary of significant accounting policies.

The Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Financial Reporting Standards applicable to interim financial reporting as adopted by the European Union ('IAS34 Interim Financial Reporting'). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

 

 

Scope of Review

 

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

 

Conclusion

 

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information does not present fairly, in all material respects, the financial position of the entity as at June 30, 2023, and of its financial performance and its cash flows for the six month period then ended in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union.

 

 

Emphasis of Matter

 

We draw attention to the note 22 of the interim condensed consolidated financial statements which describes the uncertainty related to the outcome of a legal claim against one of the custodian banks that the Group and the Company uses on its behalf. Our conclusion is not modified in respect of this matter.

 

 

Other information    

 

The Board of Directors is responsible for the other information. The other information comprises the information included in the Chairman's and Chief Executive's Review and Review of Activities, but does not include the condensed consolidated financial statements and our review report thereon.

 

Our conclusion on the condensed consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

 

In connection with our review of the condensed consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the review or otherwise appears to be materially misstated. If, based on the work we have performed, 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.

 

 

Other Matter

 

This report, including the conclusion, has been prepared for and only for the Group's members as a body and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whose knowledge this report may come to.

 

 

 

 

Polyvios Polyviou

Certified Public Accountant and Registered Auditor

for and on behalf of


Grant Thornton (Cyprus) Ltd


Certified Public Accountants and Registered Auditors


 

Limassol, 28 September 2023


 

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