| Leases |
25.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, 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 |
Balance at January 1, 2021 |
|
8,157 |
Additions to right-of-use-assets |
|
11,399 |
Disposals |
|
(4,291) |
Effect of change in foreign currency |
|
(166) |
Balance at December 31, 2021 |
|
15,099 |
Amortization |
|
|
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 |
Balance at January 1, 2021 |
|
3,643 |
Amortization charge for the year |
|
3,929 |
Disposals |
|
(4,291) |
Effect of change in foreign currency |
|
(25) |
Balance at December 31, 2021 |
|
3,256 |
Net book value |
|
|
Balance at January 1, 2020 |
|
5,229 |
Balance at December 31, 2020 and January 1, 2021 |
|
4,514 |
Balance at December 31, 2021 |
|
11,843 |
|
|
|
Lease liability |
|
$’000 |
Balance at January 1, 2020 |
|
3,583 |
Additions to lease liabilities |
|
2,362 |
Interest expense on lease liabilities(i) |
|
572 |
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 |
Balance at January 1, 2021 |
|
4,499 |
Additions to lease liabilities |
|
11,826 |
Interest expense on lease liabilities(i) |
|
617 |
Payments on leases |
|
(4,156) |
Reclassification to liabilities associated with the assets held for sale |
|
— |
Effect of change in foreign currency |
|
(154) |
Balance at December 31, 2021 |
|
12,632 |
| (i) |
Interest paid on lease liabilities are presented within cash flows from financing activities. |
In March 2020, the Group renewed its head office lease to December 2022 with intention to hand in notice and vacate in 2021. As such, a lease modification was applied in 2020 as per IFRS 16 to extend the lease to the intended exit date. The Group entered into a new lease agreement for four floors of a building facility as the head office in London. The commencement date of the lease was in June 2021, with the initial term of the lease being 39 months. The lease provides for an annual rent of $4.9 million after a twelve-month rent-free period following the lease commencement date.
When measuring the lease liabilities, the Group discounted lease payments using its incremental borrowing rate. The weighted-average rate applied is 12.0%.
The following amounts have been recognized in the Consolidated Statement of Profit and Loss for which the Group is a lessee:
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
|
|
2021 |
|
2020 |
|
2019 |
|
|
$’000 |
|
$’000 |
|
$’000 |
Depreciation expense on right-of-use assets |
|
3,929 |
|
2,430 |
|
1,272 |
Interest expense on lease liabilities |
|
617 |
|
572 |
|
265 |
Expenses relating to short term leases |
|
2,489 |
|
4,756 |
|
6,127 |
Profit and loss impact |
|
7,035 |
|
7,758 |
|
7,664 |
The following table provides the undiscounted maturities of lease liabilities:
|
|
|
|
|
|
|
As of December 31, |
|
|
2021 |
|
2020 |
|
|
$’000 |
|
$’000 |
Less than one year |
|
4,595 |
|
2,348 |
One to two years |
|
5,612 |
|
684 |
Two to three years |
|
4,290 |
|
598 |
Three to four years |
|
362 |
|
572 |
Four to five years |
|
371 |
|
375 |
More than five years |
|
705 |
|
1,282 |
Total |
|
15,935 |
|
5,859 |
|