Registration statement for securities of certain foreign private issuers

Leases

v3.21.2
Leases
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Text block [abstract]    
Leases
12.
Leases
The Group leases several assets which consist of buildings and IT equipment. The Group recognizes
right-of-use
assets and lease liabilities for its building leases only, as the leases for IT equipment meet the exemption requirements as short-term leases and leases of
low-value
assets.
The Group enter
i
ed into a new lease agreement for four floors of a building facility as the head office in London. The commencement date of the lease is in June 2021, with the initial term of the lease being 39 months. The lease provides for an annual rent of $4.9m after a twelve-month rent-free period following the lease commencement date.
20.
Leases
The Group leases several assets which consist of buildings and IT equipment. The Group recognizes
right-of-use
assets and lease liabilities for its building leases only, as the leases for IT equipment meet the exemption requirements as short-term leases and leases of
low-value
assets. Therefore, the disclosures below for the Group’s
right-of-use
assets relate only to buildings.
Right-of-use
asset
   
$’000
  
Cost
         
Balance at January 1, 2019
      1,431  
Additions to
right-of-use-assets
      4,951  
Effect of change in foreign currency
      119  
    
 
 
  
Balance at December 31, 2019
      6,501  
    
 
 
  
   
Balance at January 1, 2020
      6,501  
Additions to
right-of-use-assets
      2,300  
Reclassification to assets held for sale
      (872 ) 
Effect of change in foreign currency
      228  
    
 
 
  
Balance at December 31, 2020
      8,157  
    
 
 
  
   
Amortization
         
Balance at January 1, 2019
      —    
Amortization charge for the year
      1,272  
Effect of change in foreign currency
      —    
    
 
 
  
Balance at December 31, 2019
      1,272  
    
 
 
  
   
Balance at January 1, 2020
      1,272  
Amortization charge for the year
      2,430  
Reclassification to assets held for sale
      (243 ) 
Effect of change in foreign currency
      184  
    
 
 
  
Balance at December 31, 2020
      3,643  
    
 
 
  
   
Net book value
         
Balance at January 1, 2019
      1,431  
Balance at December 31, 2019 and January 1, 2020
      5,229  
    
 
 
  
Balance at December 31, 2020
   
 
4,514
 
    
 
 
  
   
Lease liability
   
$’000
  
Balance at January 1, 2019
      1,154  
Additions to lease liabilities
      3,502  
Interest expense on lease liabilities
(i)
      265  
Principal payments on leases
      (1,228 ) 
Effect of change in foreign currency
      (110 ) 
    
 
 
  
Balance at December 31, 2019
      3,583  
    
 
 
  
   
Balance at January 1, 2020
      3,583  
Additions to lease liabilities
      2,362  
Interest expense on lease liabilities
(i)
      572  
Principal payments on leases
      (1,541 ) 
Reclassification to liabilities associated with the assets held for sale
      (607 ) 
Effect of change in foreign currency
      130  
    
 
 
  
Balance at December 31, 2020
   
 
4,499
 
    
 
 
  
 
(i)
Interest paid on lease liabilities are presented within cash flows from financing activities.
In March 2020 Group renewed its head office lease to December 2022 with intention to hand in notice and vacate in 2021. A lease modification has been applied as per IFRS 16 to extend the lease to the intended exit date.
When measuring the lease liabilities, the Group discounted lease payments using its incremental borrowing rate. The weighted-average rate applied is 12.5%.
The following amounts have been recognized in the Consolidated Statement of Profit and Loss for which the Group is a lessee:    
 
    
2020
     
2019
  
    
$’000
     
$’000
  
Depreciation expense on
right-of-use
assets
      2,430        1,272  
Interest expense on lease liabilities
      572        265  
Expenses relating to short term leases
      4,756        6,127  
    
 
 
     
 
 
  
Profit and loss impact
   
 
7,758
 
   
 
7,664
 
    
 
 
     
 
 
  
The following table provides the undiscounted maturities of lease liabilities as of December 31:
 
    
    2020    
     
    2019    
  
    
$’000
     
$’000
  
Short term (less than 1 year)
      2,348        2,026  
Long term (between 1 – 10 years remaining)
      3,511        4,021  
    
 
 
     
 
 
  
Total
   
 
5,859
 
   
 
6,047