Malta-based 1923 Investments plc recorded €7.3 million in pre-tax profit during 2023, 70 per cent more than it did in 2022 (€4.3 million), largely a result of key acquisitions in its Apple retail business.
The financial performance of the group was announced in the company’s Annual Report for the financial year ended 31st December 2023, released on Monday.
1923 Investments plc, a public company with a majority shareholding held by Hili Ventures Limited, is primarily tasked with acting as an investment company and service provider to its subsidiary undertakings. These subsidiaries include iSpot Poland Sp. z o.o, iCentre Hungary, Harvest Technology, PTL Ltd, and APCO Ltd, among others. It is engaged in the sale and distribution of Apple products and third-party electronics, the sale, maintenance and servicing of IT solutions and security systems, electronic payment solutions, and mobile device repairs.
During 2023, the group had a number of changes to its structure, including the sale of its holding in Hili Logistics Limited to HV Marine Limited (afterwards renamed to Breakwater Investments Limited), a subsidiary of Hili Ventures Limited. Additionally, it also sold its shares in E-Lifecycle Holdings GmbH, a Germany subsidiary that operates as a franchisee of iRiparo, an Italian mobile device repair and refurbished phone selling company. On the other hand, it also acquired Cortland Sp. z o.o, the Apple solutions provider in Poland.
1923 Investments plc clarified that the financial results presented in the Annual Report are derived from continuing operations, and thus also include the gains from the sale of subsidiaries.
At group level, 1923 Investments recorded €281.8 million in revenue in 2023, a 42.6 per cent increase from the €197.6 million registered in the previous year. This sharp increase was primarily a result of the increase in the sale and distribution of Apple products, which went up by 47.7 per cent to €263.3 million. In turn, this was driven by the acquisition of Cortland and a 10.6 per cent increase in revenue at iSpot.
Similarly, cost of sales was also on the rise, going up from 2022’s €175.1 million to €250.9 million in 2023, while administrative expenses also surged upwards by 54.5 per cent to €21.2 million (2022: €13.8 million).
Investment income for 2023 amounted to €901,846 (2022: €36,945), while finance costs also surged upwards to €5.7 million, primarily due to interest on bank borrowings, interest expenses for leasing arrangements, and other finance costs.
1923 Investments also brought in €2.2 million in gains from the sale of its holding in subsidiaries.
In terms of asset value, at the end of 2023, this totalled €68.6 million, expanding significantly from the €59.5 million recorded at the end of 2022. No dividends were declared and paid during 2023.
Commenting on the results, 1923 Investments Chairman David Bonett said: “2023 was an eventful year in which we streamlined our business, expanded our most successful operation, and sharpened our focus, leading us to achieve an unprecedented €281.8 million in revenue.”
Delving deeper into the performance of its subsidiaries, 1923 Investments stated that iSpot Poland experienced a strong year across all sales channels, with a significant improvement in its customer loyalty and engagement programmes. Footfall in stores increased by six per cent over 2023, while the average basket spend also rose by 6.9 per cent to €320 when compared to €299 in 2022.
On the other hand, Harvest Technology plc experienced a slowdown in profitability, going down by 60.3 per cent to €819,910, largely due to delays in contracts and provision charges incurred because of unsuccessful projects. However, the year also featured the completion of Apcopay’s payment orchestration platform Synthesis, and during the year, the subsidiary reported a significant increase in transaction value that surpassed €1 billion, 51 per cent more than 2022.
Main Image:An iSpot store in Poland
