Taxation – Page 224 – NewzIntel.com

MIL-OSI: PSB Holdings, Inc. Reports Earnings of $0.73 Per Share for Q4 2024; Twelve Month 2024 Earnings up 10% to $2.37 per Share

Source: GlobeNewswire (MIL-OSI)

WAUSAU, Wis., Jan. 27, 2025 (GLOBE NEWSWIRE) — PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported fourth quarter earnings ending December 31, 2024 of $0.73 per common share on net income of $3.0 million, compared to $0.69 per common share on net income of $2.9 million during the third quarter ending September 30, 2024, and $0.55 per common share on net income of $2.3 million during the fourth quarter ending December 31, 2023. For the fiscal year ended December 31, 2024, PSB reported earnings of $2.37 per common share on net income of $9.8 million compared to $2.16 per common share on earnings of $9.1 million for the fiscal year ended December 31, 2023.

PSB’s fourth quarter 2024 operating results reflected the following changes from the third quarter of 2024: (1) higher net interest income supported by a net interest margin increase of six basis points; (2) lower non-interest income due primarily to a loss on the sale of securities; (3) slightly lower non-interest expenses due to lower salaries and employee benefit expenses; and (4) loan growth of 2% during the quarter.

“We are pleased with our results for the fourth quarter and fiscal 2024. We continue to maintain strong asset quality and controlled expenses, and expect to see continued expansion in our net interest margin as loan products continue to reset to higher yields and funding costs stabilize or decline. Additionally, we expect to see stronger loan growth in fiscal 2025. We are focused on delivering strong returns to shareholders through capital growth, payment of dividends and supporting our stock price through stock repurchases, when economically appropriate,” stated Scott Cattanach, President and CEO.

December 31, 2024, Highlights:

Net interest income increased to $10.4 million for the quarter ended December 31, 2024, from $9.9 million for the quarter ended September 30, 2024. Asset and loan yields increased while funding costs declined slightly.
Noninterest income decreased $566,000 to $1.3 million for the quarter ended December 31, 2024, compared to $1.8 million the prior quarter due primarily to a loss on the sale of securities.
Noninterest expenses decreased to $8.0 million during the quarter ended December 31, 2024 from $8.2 million for the quarter ended September 30, 2024, reflecting lower salary and benefit expenses.
Loans increased $20.2 million, or 2% in the fourth quarter ended December 31, 2024, to $1.08 billion largely due to new commercial real estate and construction and development loans. Allowance for credit losses was 1.13% of gross loans.
Non-performing assets remained unchanged at $10.4 million, or 0.71% of total assets at December 31, 2024 compared to the previous quarter.
Total deposits increased slightly to $1.15 billion at December 31, 2024 from $1.14 billion at September 30, 2024, with the increase largely consisting of interest-bearing demand and savings deposits.
Return on average tangible common equity was 11.07% for the quarter ended December 31, 2024, compared to 10.96% the prior quarter and 9.64% in the year ago quarter.
Tangible book value per common share was up 9.0% over the past year to $25.98 at December 31, 2024, compared to $23.84 at December 31, 2023. Additionally, PSB paid dividends totaling $0.64 per share during 2024, up 6.7% over the prior year.
On January 21, 2025, the Bank acquired Larson Financial Group, LLC, a financial advisory company based in Wausau, WI.

Balance Sheet and Asset Quality Review

Total assets decreased $10.0 million during the fourth quarter to $1.47 billion at December 31, 2024, compared to September 30, 2024. Cash and cash equivalents decreased $46.6 million to $40.5 million at December 31, 2024 from $87.1 million at September 30, 2024 as funds were used to originate new loans and pay down FHLB advances. Cash and cash equivalents increased $12.7 million from one year earlier. Investment securities available for sale increased $14.2 million to $189.1 million at December 31, 2024, from $174.9 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $349 million at December 31, 2024, with an additional $354 million that could be raised in a short time frame from the brokered CDs market.

Total loans receivable increased $20.2 million to $1.08 billion at December 31, 2024, compared to one quarter earlier, due primarily to increased commercial non-real estate, commercial real estate and construction lending. Commercial non-real estate loans increased $5.1 million to $144.2 million at December 31, 2024, from $139.0 million one quarter earlier. Commercial real estate loans increased $10.1 million to $551.6 million at December 31, 2024 and construction and development lending increased $18.4 million to $79.4 million at December 31, 2024, compared to one quarter earlier. Offsetting gross loan growth, loans in process of disbursement increased $10.0 million to $27.8 million as new construction and development loans have not been fully funded. Residential real estate loans decreased $3.9 million from the prior quarter to $337.5 million. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 56.5% of gross loans, followed by residential real estate loans at 30.2% of gross loans, commercial non-real estate loans at 12.9% and consumer loans at 0.4%.

The allowance for credit losses decreased slightly to 1.13% of gross loans at December 31, 2024, from 1.18% the prior quarter. Annualized net charge-offs to average loans were 0.02% for the quarter ended December 31, 2024. Non-performing assets remained at 0.71% of total assets at December 31, 2024 and totaled $10.4 million. Approximately 71% of the non-performing assets consisted of three loan relationships. For the eighth consecutive quarter, the Bank did not own any foreclosed real estate.

Total deposits increased $8.2 million to $1.15 billion at December 31, 2024, from $1.14 billion at September 30, 2024. The increase in deposits reflects a $12.9 million increase in interest-bearing demand and savings deposits and a $3.3 million increase in retail and local time deposits greater than $250,000, offset by a $1.5 million decrease in money market deposits, a $5.6 million decrease in non-interest bearing deposits and a $0.9 million decrease in retail and local time deposits less than $250,000.

At December 31, 2024, non-interest bearing demand deposits decreased to 22.6% of total deposits from 23.3% the prior quarter, while interest-bearing demand and savings deposits increased to 29.4% of deposits, compared to 28.4% at September 30, 2024. Uninsured and uncollateralized deposits decreased to 21.6% of total deposits at December 31, 2024, from 21.7% of total deposits at September 30, 2024.

FHLB advances decreased $19.0 million to $162.3 million at December 31, 2024, compared to $181.3 million at September 30, 2024.

Tangible stockholder equity as a percent of total tangible assets was 7.76% at December 31, 2024, compared to 7.85% at September 30, 2024, and 7.49% at December 31, 2023.

Tangible net book value per common share increased $2.14 to $25.98, at December 31, 2024, compared to $23.84 one year earlier, an increase of 9.0% after dividends of $0.64 were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $26.41, tangible net book value per common share decreased primarily due to a fair market value decrease in the investment portfolios and payment of dividends. The accumulated other comprehensive loss on the investment portfolio was $19.3 million at December 31, 2024, compared to $15.8 million one quarter earlier.

Operations Review

Net interest income increased to $10.4 million (on a net margin of 2.96%) for the fourth quarter of 2024, from $9.9 million (on a net margin of 2.90%) for the third quarter of 2024, and $9.6 million (on a net margin of 2.88%) for the fourth quarter of 2023. Earning asset yields remained flat at 5.29% during the fourth quarter of 2024, while interest bearing deposit and borrowing costs decreased seven basis points to 3.06% compared to 3.13% during the third quarter of 2024. Relative to one year earlier, earning asset yields were up 30 basis points while interest bearing deposit and borrowing costs increased 27 basis points.

The increase in earning asset yields was primarily due to higher yields on loan originations and renewals. Loan yields increased during the fourth quarter of 2024 to 5.80% from 5.78% for the third quarter of 2024. Taxable security yields were 3.16% for the quarter ended December 31, 2024, compared to 3.01% for the quarter ended September 30, 2024, while tax-exempt security yields were flat at 3.31% for the quarter ended December 31, 2024. The increase in taxable security yields reflect the rise in interest rates and security restructuring activity from security sales.

The cost of all deposits declined to 2.08% for the quarter ended December 31, 2024, compared to 2.11% the prior quarter, while the overall cost of funds decreased seven basis points to 3.06% from 3.13% during the same time period. Deposit costs for all deposit categories decreased during the fourth quarter with time deposits decreasing two basis points to 4.02%, money market deposits decreasing 13 basis points to 2.56% and savings and demand deposits decreasing two basis points to 2.56%. FHLB advances also declined four basis points to 4.40% for the quarter ended December 31, 2024.

Total noninterest income decreased during the fourth quarter of 2024 to $1.28 million, from $1.84 million for the third quarter of 2024 due primarily to a net loss on sale of securities. Mortgage banking income decreased slightly to $414,000 in the fourth quarter from $433,000 the prior quarter while various decreases in nominal revenue sources accounted for the remaining decline in noninterest income. At December 31, 2024, the Bank serviced $373.5 million in secondary market residential mortgage loans for others which provide fee income.

Noninterest expenses decreased $149,000 to $8.0 million for the fourth quarter of 2024, compared to $8.2 million for the third quarter of 2024 and increased $644,000 from $7.4 million for the fourth quarter of 2023. Relative to one year earlier, salary and benefit cost increased $447,000, or 10.5% to $4.7 million for the quarter ended December 31, 2024, compared to $4.2 million for the fourth quarter ended December 31, 2023.

Taxes decreased $69,000 during the fourth quarter to $524,000, from $593,000 one quarter earlier. The effective tax rate for the quarter ended December 31, 2024, was 14.4% compared to 16.6% for the third quarter ended September 30, 2024, and 26.7% for the fourth quarter ended December 31, 2023.

About PSB Holdings, Inc.

PSB Holdings, Inc. is the parent company of Peoples State Bank. Peoples is a community bank headquartered in Wausau, Wisconsin, serving northcentral and southeastern Wisconsin from twelve full-service banking locations in Marathon, Oneida, Vilas, Portage, Milwaukee and Waukesha counties and a loan production office in Dane County. Peoples also provides investment and insurance products, along with retirement planning services, through Peoples Wealth Management, a division of Peoples. PSB Holdings, Inc. is traded under the stock symbol PSBQ on the OTCQX Market. More information about PSB, its management, and its financial performance may be found at www.psbholdingsinc.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about PSB’s business based, in part, on assumptions made by management and include, without limitation, statements with respect to the potential growth of PSB, its future profits, expected stock repurchase levels, future dividend rates, future interest rates, and the adequacy of its capital position. Forward-looking statements can be affected by known and unknown risks, uncertainties, and other factors, including, but not limited to, strength of the economy, the effects of government policies, including interest rate policies, risks associated with the execution of PSB’s vision and growth strategy, including with respect to current and future M&A activity, and risks associated with global economic instability. The forward-looking statements in this press release speak only as of the date on which they are made and PSB does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.



PSB Holdings, Inc.
Consolidated Balance Sheets
December 31, September 30, June 30, and March 31, 2024, unaudited, December 31, 2023 derived from audited financial statements

	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
(dollars in thousands, except per share data)		2024			2024			2024			2024			2023

Assets

Cash and due from banks	$	21,414		$	23,554		$	16,475		$	13,340		$	20,887
Interest-bearing deposits		3,724			5,126			251			105			1,431
Federal funds sold		15,360			58,434			69,249			2,439			5,462

Cash and cash equivalents		40,498			87,114			85,975			15,884			27,780
Securities available for sale (at fair value)		189,086			174,911			165,177			165,566			164,024
Securities held to maturity (fair values of $79,654, $82,389, $79,993, $81,234 and
$82,514 respectively)		86,748			86,847			86,825			87,104			87,081
Equity securities		2,782			1,752			1,661			1,474			1,474
Loans held for sale		217			–			2,268			865			230
Loans receivable, net (allowance for credit losses of $12,342, $12,598, $12,597,
$12,494 and $12,302 respectively)		1,078,204			1,057,974			1,074,844			1,081,394			1,078,475
Accrued interest receivable		5,042			4,837			5,046			5,467			5,136
Foreclosed assets		–			–			–			–			–
Premises and equipment, net		13,805			14,065			14,048			13,427			13,098
Mortgage servicing rights, net		1,742			1,727			1,688			1,657			1,664
Federal Home Loan Bank stock (at cost)		8,825			8,825			8,825			7,006			6,373
Cash surrender value of bank-owned life insurance		24,732			24,565			24,401			24,242			24,085
Core deposit intangible		195			212			229			249			273
Goodwill		2,541			2,541			2,541			2,541			2,541
Other assets		11,539			10,598			12,111			11,682			11,866

TOTAL ASSETS	$	1,465,956		$	1,475,968		$	1,485,639		$	1,418,558		$	1,424,100

Liabilities

Non-interest-bearing deposits	$	259,515		$	265,078		$	250,435		$	247,608		$	266,829
Interest-bearing deposits		887,834			874,035			901,886			865,744			874,973

Total deposits		1,147,349			1,139,113			1,152,321			1,113,352			1,141,802

Federal Home Loan Bank advances		162,250			181,250			184,900			158,250			134,000
Other borrowings		6,872			6,128			5,775			8,096			8,058
Senior subordinated notes		4,781			4,779			4,778			4,776			4,774
Junior subordinated debentures		13,023			12,998			12,972			12,947			12,921
Allowance for credit losses on unfunded commitments		672			477			477			477			577
Accrued expenses and other liabilities		14,723			12,850			13,069			10,247			12,681

Total liabilities		1,349,670			1,357,595			1,374,292			1,308,145			1,314,813

Stockholders’ equity

Preferred stock – no par value:
Authorized – 30,000 shares; no shares issued or outstanding
Outstanding – 7,200 shares, respectively		7,200			7,200			7,200			7,200			7,200
Common stock – no par value with a stated value of $1.00 per share:
Authorized – 18,000,000 shares; Issued – 5,490,798 shares
Outstanding – 4,092,977, 4,105,594, 4,128,382, 4,147,649 and
4,164,735 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,610			8,567			8,527			8,466			8,460
Retained earnings		139,838			138,142			135,276			134,271			132,666
Accumulated other comprehensive income (loss), net of tax		(19,314	)		(15,814	)		(20,503	)		(20,775	)		(20,689	)
Treasury stock, at cost – 1,397,821, 1,385,204, 1,362,416, 1,343,149 and
1,326,063 shares, respectively		(21,878	)		(21,552	)		(20,983	)		(20,579	)		(20,180	)

Total stockholders’ equity		116,286			118,373			111,347			110,413			109,287

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,465,956		$	1,475,968		$	1,485,639		$	1,418,558		$	1,424,100

PSB Holdings, Inc.
Consolidated Statements of Income
	Quarter Ended													Years Ended
(dollars in thousands,	Dec. 31,			Sep. 30,		Jun. 30,		Mar. 31,			Dec. 31,			December
except per share data – unaudited)		2024			2024		2024		2024			2023			2024			2023

Interest and dividend income:
Loans, including fees	$	15,646		$	15,634	$	15,433	$	15,109		$	14,888		$	61,822		$	53,633
Securities:
Taxable		1,545			1,345		1,295		1,197			1,147			5,382			4,919
Tax-exempt		522			522		521		526			532			2,091			2,137
Other interest and dividends		948			699		265		343			320			2,255			851

Total interest and dividend income		18,661			18,200		17,514		17,175			16,887			71,550			61,540

Interest expense:
Deposits		6,027			5,905		5,838		6,082			5,526			23,852			16,993
FHLB advances		1,890			2,038		1,860		1,450			1,349			7,238			4,417
Other borrowings		57			57		58		60			54			232			215
Senior subordinated notes		59			59		58		59			59			235			238
Junior subordinated debentures		252			252		255		251			254			1,010			985

Total interest expense		8,285			8,311		8,069		7,902			7,242			32,567			22,848

Net interest income		10,376			9,889		9,445		9,273			9,645			38,983			38,692
Provision for credit losses		–			–		100		95			100			195			450

Net interest income after provision for credit losses		10,376			9,889		9,345		9,178			9,545			38,788			38,242

Noninterest income:
Service fees		362			367		350		336			360			1,415			1,448
Mortgage banking income		414			433		433		308			247			1,588			1,228
Investment and insurance sales commissions		226			230		222		121			100			799			910
Net loss on sale of securities		(511	)		–		–		(495	)		(297	)		(1,006	)		(576	)
Increase in cash surrender value of life insurance		166			165		159		157			154			647			615
Life insurance death benefit		–			–		–		–			–			–			533
Other noninterest income		620			648		742		617			540			2,627			2,562

Total noninterest income		1,277			1,843		1,906		1,044			1,104			6,070			6,720

Noninterest expense:
Salaries and employee benefits		4,691			4,771		5,167		5,123			4,244			19,752			18,648
Occupancy and facilities		691			757		733		721			675			2,902			2,761
Loss (gain) on foreclosed assets		–			1		–		–			1			1			(45	)
Data processing and other office operations		1,111			1,104		1,047		1,022			1,001			4,284			3,785
Advertising and promotion		141			164		171		129			244			605			733
Core deposit intangible amortization		17			17		20		24			24			78			109
Other noninterest expenses		1,351			1,337		1,257		1,306			1,169			5,251			4,557

Total noninterest expense		8,002			8,151		8,395		8,325			7,358			32,873			30,548

Income before provision for income taxes		3,651			3,581		2,856		1,897			3,291			11,985			14,414
Provision for income taxes		524			593		410		169			878			1,696			4,845

Net income	$	3,127		$	2,988	$	2,446	$	1,728		$	2,413		$	10,289		$	9,569
Preferred stock dividends declared	$	122		$	122	$	122	$	122		$	122		$	486		$	486

Net income available to common shareholders	$	3,005		$	2,866	$	2,324	$	1,606		$	2,291		$	9,803		$	9,083
Basic earnings per common share	$	0.73		$	0.69	$	0.56	$	0.39		$	0.55		$	2.37		$	2.16
Diluted earnings per common share	$	0.73		$	0.69	$	0.56	$	0.39		$	0.55		$	2.37		$	2.16

PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands, except per share data)		Quarter ended
		Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
Earnings and dividends:			2024			2024			2024			2024			2023

	Interest income	$	18,661		$	18,200		$	17,514		$	17,175		$	16,887
	Interest expense	$	8,285		$	8,311		$	8,069		$	7,902		$	7,242
	Net interest income	$	10,376		$	9,889		$	9,445		$	9,273		$	9,645
	Provision for credit losses	$	–		$	–		$	100		$	95		$	100
	Other noninterest income	$	1,277		$	1,843		$	1,906		$	1,044		$	1,104
	Other noninterest expense	$	8,002		$	8,151		$	8,395		$	8,325		$	7,358
	Net income available to common shareholders	$	3,005		$	2,866		$	2,324		$	1,606		$	2,291

	Basic earnings per common share (3)	$	0.73		$	0.69		$	0.56		$	0.39		$	0.55
	Diluted earnings per common share (3)	$	0.73		$	0.69		$	0.56		$	0.39		$	0.55
	Dividends declared per common share (3)	$	0.32		$	–		$	0.32		$	–		$	0.30
	Tangible net book value per common share (4)	$	25.98		$	26.41		$	24.55		$	24.21		$	23.84

	Semi-annual dividend payout ratio		23.27	%		n/a			33.61	%		n/a			38.14	%
	Average common shares outstanding		4,094,360			4,132,218			4,139,456			4,154,702			4,168,924


Balance sheet – average balances:
	Loans receivable, net of allowances for credit loss	$	1,064,619		$	1,066,795		$	1,088,013		$	1,081,936		$	1,081,851
	Assets	$	1,479,812		$	1,445,613		$	1,433,749		$	1,429,437		$	1,424,240
	Deposits	$	1,151,450		$	1,110,854		$	1,111,240		$	1,138,010		$	1,148,399
	Stockholders’ equity	$	118,396		$	114,458		$	110,726		$	109,473		$	105,060


Performance ratios:
	Return on average assets (1)		0.84	%		0.82	%		0.69	%		0.49	%		0.67	%
	Return on average common stockholders’ equity (1)		10.75	%		10.63	%		9.03	%		6.32	%		9.29	%
	Return on average tangible common
	stockholders’ equity (1)(4)		11.07	%		10.96	%		9.34	%		6.57	%		9.64	%
	Net loan charge-offs to average loans (1)		0.02	%		0.00	%		0.00	%		0.00	%		0.00	%
	Nonperforming loans to gross loans		0.95	%		0.97	%		1.15	%		1.08	%		0.54	%
	Nonperforming assets to total assets		0.71	%		0.71	%		0.84	%		0.83	%		0.42	%
	Allowance for credit losses to gross loans		1.13	%		1.18	%		1.16	%		1.14	%		1.13	%
	Nonperforming assets to tangible equity
	plus the allowance for credit losses (4)		8.85	%		8.71	%		11.09	%		10.59	%		5.38	%
	Net interest rate margin (1)(2)		2.96	%		2.90	%		2.84	%		2.80	%		2.88	%
	Net interest rate spread (1)(2)		2.23	%		2.16	%		2.15	%		2.12	%		2.20	%
	Service fee revenue as a percent of
	average demand deposits (1)		0.53	%		0.56	%		0.56	%		0.54	%		0.52	%
	Noninterest income as a percent
	of gross revenue		6.40	%		9.20	%		9.81	%		5.73	%		6.14	%
	Efficiency ratio (2)		67.59	%		68.43	%		72.52	%		78.93	%		67.04	%
	Noninterest expenses to average assets (1)		2.15	%		2.24	%		2.35	%		2.34	%		2.05	%
	Average stockholders’ equity less accumulated
	other comprehensive income (loss) to
	average assets		9.08	%		9.06	%		9.03	%		8.98	%		8.88	%
	Tangible equity to tangible assets (4)		7.76	%		7.85	%		7.32	%		7.60	%		7.49	%

Stock price information:

	High	$	27.90		$	25.00		$	21.40		$	22.50		$	22.30
	Low	$	25.00		$	20.30		$	19.75		$	20.05		$	20.10
	Last trade value at quarter-end	$	26.50		$	25.00		$	20.40		$	21.25		$	22.11

(1) Annualized
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.
(3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals.
(4) Tangible stockholders’ equity excludes goodwill and core deposit intangibles.


PSB Holdings, Inc.
Consolidated Statements of Comprehensive Income

		Quarter Ended
		Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
(dollars in thousands – unaudited)			2024			2024			2024			2024			2023

Net income		$	3,127		$	2,988		$	2,446		$	1,728		$	2,413

Other comprehensive income:

	Unrealized gain (loss) on securities available for sale, net of tax		(3,955	)		4,738			184			(615	)		5,278

	Reclassification adjustment for security loss included in net income, net of tax		404			–			–			391			280

	Accretion of unrealized loss included in net income on securities available for sale deferred tax adjustment for Wisconsin Act 19		(76	)		–			–			(35	)		–

	Amortization of unrealized loss included in net income on securities available for sale transferred to securities held to maturity, net of tax		90			90			89			91			91

	Unrealized gain (loss) on interest rate swap, net of tax		65			(101	)		39			122			(109	)

	Reclassification adjustment of interest rate swap settlements included in earnings, net of tax		(27	)		(38	)		(40	)		(41	)		(39	)


Other comprehensive income (loss)			(3,499	)		4,689			272			(87	)		5,501

Comprehensive income (loss)		$	(372	)	$	7,677		$	2,718		$	1,641		$	7,914

PSB Holdings, Inc.
Nonperforming Assets as of:
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(dollars in thousands)		2024			2024			2024			2024			2023

Nonaccrual loans (excluding restructured loans)	$	10,109		$	10,116		$	12,184		$	11,498		$	5,596
Nonaccrual restructured loans		18			25			28			30			34
Restructured loans not on nonaccrual		286			292			299			304			310
Accruing loans past due 90 days or more		–			–			–			–			–

Total nonperforming loans		10,413			10,433			12,511			11,832			5,940
Other real estate owned		–			–			–			–			–

Total nonperforming assets	$	10,413		$	10,433		$	12,511		$	11,832		$	5,940

Nonperforming loans as a % of gross loans receivable		0.95	%		0.97	%		1.15	%		1.08	%		0.54	%
Total nonperforming assets as a % of total assets		0.71	%		0.71	%		0.84	%		0.83	%		0.42	%
Allowance for credit losses as a % of nonperforming loans		118.52	%		120.75	%		100.69	%		105.59	%		207.10	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At December 31, 2024
(dollars in thousands)
		Gross			Specific
Collateral Description	Asset Type	Principal			Reserves

Real estate – Recreational Facility	Nonaccrual	$	4,126		$	151
Real estate – Independent Auto Repair	Nonaccrual		538			–
Real estate – Dealership	Nonaccrual		2,708			560


Total listed nonperforming assets		$	7,372		$	711
Total bank wide nonperforming assets		$	10,413		$	1,043
Listed assets as a % of total nonperforming assets			71	%		68	%

PSB Holding, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023

Commercial:
Commercial and industrial	$	116,864		$	115,234		$	125,508		$	118,821		$	117,207
Agriculture		11,568			11,203			11,480			12,081			12,304
Municipal		15,733			12,596			11,190			28,842			31,530

Total Commercial		144,165			139,033			148,178			159,744			161,041

Commercial Real Estate:
Commercial real estate		551,641			541,577			544,171			546,257			536,209
Construction and development		79,377			60,952			70,540			63,375			81,701

Total Commercial Real Estate		631,018			602,529			614,711			609,632			617,910

Residential real estate:
Residential		271,643			269,954			270,944			274,300			274,453
Construction and development		28,959			34,655			36,129			34,158			33,960
HELOC		36,887			36,734			33,838			31,357			29,766

Total Residential Real Estate		337,489			341,343			340,911			339,815			338,179

Consumer installment		5,060			4,770			4,423			4,867			4,357

Subtotals – Gross loans		1,117,732			1,087,675			1,108,223			1,114,058			1,121,487
Loans in process of disbursement		(27,791	)		(17,836	)		(21,484	)		(20,839	)		(31,359	)

Subtotals – Disbursed loans		1,089,941			1,069,839			1,086,739			1,093,219			1,090,128
Net deferred loan costs		605			733			702			669			649
Allowance for credit losses		(12,342	)		(12,598	)		(12,597	)		(12,494	)		(12,302	)

Total loans receivable	$	1,078,204		$	1,057,974		$	1,074,844		$	1,081,394		$	1,078,475

PSB Holding, Inc.
Selected Commercial Real Estate Loans by Purpose
	Dec 31,				Sept 30,				June 30,				Mar 31,				Dec 31,
(dollars in thousands)	2024				2024				2024				2024				2023

	Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)
Multi Family	$	140,087	14.0	%	$	140,307	14.7	%	$	146,873	15.2	%	$	142,001	14.4	%	$	132,386	13.2	%
Industrial and Warehousing		88,297	8.8			86,818	9.1			86,025	8.9			85,409	8.6			83,817	8.3
Retail		33,991	3.4			33,020	3.5			34,846	3.6			33,177	3.4			35,419	3.5
Hotels		31,101	3.1			31,611	3.3			34,613	3.6			35,105	3.6			36,100	3.6
Office		6,234	0.6			6,378	0.7			6,518	0.7			6,655	0.7			6,701	0.7

(1) Percentage of commercial and commercial real estate portfolio and commitments.

PSB Holdings, Inc.
Deposit Composition

Insured and Collateralized Deposits	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2024				2024				2024				2024				2023
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	204,167	17.8	%	$	210,534	18.5	%	$	202,343	17.5	%	$	199,076	17.8	%	$	197,571	17.3	%
Interest-bearing demand and savings		315,900	27.6	%		305,631	26.8	%		304,392	26.5	%		318,673	28.7	%		317,984	27.8	%
Money market deposits		141,024	12.3	%		138,376	12.2	%		137,637	12.0	%		143,167	12.9	%		142,887	12.5	%
Retail and local time deposits <= $250		155,099	13.5	%		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%		149,145	13.1	%

Total core deposits		816,190	71.2	%		810,529	71.2	%		793,670	69.0	%		809,320	72.7	%		807,587	70.7	%
Retail and local time deposits > $250		25,500	2.2	%		23,500	2.1	%		22,500	2.0	%		24,508	2.3	%		23,000	2.0	%
Broker & national time deposits <= $250		1,241	0.1	%		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%		3,470	0.3	%
Broker & national time deposits > $250		56,164	4.9	%		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%		70,020	6.1	%

Totals	$	899,095	78.4	%	$	891,434	78.3	%	$	873,988	76.0	%	$	897,809	80.7	%	$	904,077	79.1	%

PSB Holdings, Inc.
Deposit Composition

Uninsured Deposits	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2024				2024				2024				2024				2023
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	55,348	4.8	%	$	54,544	4.8	%	$	48,092	4.1	%	$	48,532	4.4	%	$	69,258	6.1	%
Interest-bearing demand and savings		20,934	1.8	%		18,317	1.6	%		32,674	2.8	%		20,535	1.8	%		20,316	1.8	%
Money market deposits		153,334	13.4	%		157,489	13.8	%		177,954	15.4	%		124,766	11.2	%		124,518	10.9	%
Retail and local time deposits <= $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%

Total core deposits		229,616	20.0	%		230,350	20.2	%		258,720	22.3	%		193,833	17.4	%		214,092	18.8	%
Retail and local time deposits > $250		18,638	1.6	%		17,329	1.5	%		19,613	1.7	%		21,710	1.9	%		23,633	2.1	%
Broker & national time deposits <= $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%
Broker & national time deposits > $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%

Totals	$	248,254	21.6	%	$	247,679	21.7	%	$	278,333	24.0	%	$	215,543	19.3	%	$	237,725	20.9	%


PSB Holdings, Inc.
Deposit Composition

Total Deposits	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2024				2024				2024				2024				2023
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	259,515	22.6	%	$	265,078	23.3	%	$	250,435	21.6	%	$	247,608	22.2	%	$	266,829	23.4	%
Interest-bearing demand and savings		336,834	29.4	%		323,948	28.4	%		337,066	29.3	%		339,208	30.5	%		338,300	29.6	%
Money market deposits		294,358	25.7	%		295,865	26.0	%		315,591	27.4	%		267,933	24.1	%		267,405	23.4	%
Retail and local time deposits <= $250		155,099	13.5	%		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%		149,145	13.1	%

Total core deposits		1,045,806	91.2	%		1,040,879	91.4	%		1,052,390	91.3	%		1,003,153	90.1	%		1,021,679	89.5	%
Retail and local time deposits > $250		44,138	3.8	%		40,829	3.6	%		42,113	3.7	%		46,218	4.2	%		46,633	4.1	%
Broker & national time deposits <= $250		1,241	0.1	%		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%		3,470	0.3	%
Broker & national time deposits > $250		56,164	4.9	%		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%		70,020	6.1	%

Totals	$	1,147,349	100.0	%	$	1,139,113	100.0	%	$	1,152,321	100.0	%	$	1,113,352	100.0	%	$	1,141,802	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)


	Quarter ended December 31, 2024							Quarter ended September 30, 2024							Quarter ended December 31, 2023
	Average					Yield /		Average					Yield /		Average					Yield /
	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,077,242		$	15,693	5.80	%	$	1,079,393		$	15,674	5.78	%	$	1,094,152		$	14,974	5.43	%
Taxable securities		194,272			1,545	3.16	%		177,520			1,345	3.01	%		167,366			1,147	2.72	%
Tax-exempt securities (2)		79,475			661	3.31	%		79,472			661	3.31	%		80,922			673	3.30	%
FHLB stock		8,825			227	10.23	%		8,825			176	7.93	%		6,373			158	9.84	%
Other		58,405			721	4.91	%		36,680			523	5.67	%		11,846			162	5.43	%

Total (2)		1,418,219			18,847	5.29	%		1,381,890			18,379	5.29	%		1,360,659			17,114	4.99	%

Non-interest-earning assets:
Cash and due from banks		15,500							17,162							16,243
Premises and equipment,
net		14,001							14,216							13,243
Cash surrender value ins		24,625							24,458							23,990
Other assets		20,090							20,485							22,406
Allowance for credit
losses		(12,623	)						(12,598	)						(12,301	)

Total	$	1,479,812						$	1,445,613						$	1,424,240

Liabilities & stockholders’ equity
Interest-bearing liabilities:
Savings and demand
deposits	$	319,777		$	1,479	1.84	%	$	323,841		$	1,515	1.86	%	$	327,036		$	1,296	1.57	%
Money market deposits		304,897			1,961	2.56	%		277,884			1,876	2.69	%		272,087			1,820	2.65	%
Time deposits		256,201			2,587	4.02	%		247,296			2,514	4.04	%		273,332			2,410	3.50	%
FHLB borrowings		170,701			1,890	4.40	%		182,414			2,038	4.44	%		133,560			1,349	4.01	%
Other borrowings		6,848			57	3.31	%		6,702			57	3.38	%		6,999			54	3.06	%
Senior sub. notes		4,780			59	4.91	%		4,779			59	4.91	%		4,773			59	4.90	%
Junior sub. debentures		13,011			252	7.71	%		12,985			252	7.72	%		12,909			254	7.81	%

Total		1,076,215			8,285	3.06	%		1,055,901			8,311	3.13	%		1,030,696			7,242	2.79	%

Non-interest-bearing liabilities:
Demand deposits		270,575							261,833							275,944
Other liabilities		14,626							13,421							12,540
Stockholders’ equity		118,396							114,458							105,060

Total	$	1,479,812						$	1,445,613						$	1,424,240

Net interest income				$	10,562						$	10,068						$	9,872
Rate spread						2.23	%						2.16	%						2.20	%
Net yield on interest-earning assets						2.96	%						2.90	%						2.88	%

(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
	Year ended December 31, 2024							Year ended December 31, 2023
	Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,087,816		$	62,085	5.71	%	$	1,043,144		$	53,824	5.16	%
Taxable securities		179,074			5,382	3.01	%		183,984			4,919	2.67	%
Tax-exempt securities (2)		79,735			2,647	3.32	%		81,481			2,705	3.32	%
FHLB stock		8,024			750	9.35	%		5,304			386	7.28	%
Other		29,153			1,505	5.16	%		9,073			465	5.13	%

Total (2)		1,383,802			72,369	5.23	%		1,322,986			62,299	4.71	%

Non-interest-earning assets:
Cash and due from banks		16,841							17,110
Premises and equipment, net		13,834							13,294
Cash surrender value ins		24,382							24,331
Other assets		20,911							23,136

Allowance for credit losses		(12,528	)						(12,079	)

Total	$	1,447,242						$	1,388,778

Liabilities & stockholders’ equity
Interest-bearing liabilities:
Savings and demand deposits	$	331,411		$	6,133	1.85	%	$	344,906		$	4,582	1.33	%
Money market deposits		281,828			7,569	2.69	%		249,079			5,328	2.14	%
Time deposits		256,265			10,150	3.96	%		261,595			7,083	2.71	%
FHLB borrowings		167,708			7,238	4.32	%		116,282			4,417	3.80	%
Other borrowings		7,241			232	3.20	%		7,061			215	3.04	%
Senior sub. notes		4,778			235	4.92	%		4,927			238	4.83	%
Junior sub. debentures		12,972			1,010	7.79	%		12,870			985	7.65	%

Total		1,062,203			32,567	3.07	%		996,720			22,848	2.29	%

Non-interest-bearing liabilities:
Demand deposits		258,173							274,273
Other liabilities		13,475							12,397
Stockholders’ equity		113,391							105,388

Total	$	1,447,242						$	1,388,778

Net interest income				$	39,802						$	39,451
Rate spread						2.16	%						2.42	%
Net yield on interest-earning assets						2.88	%						2.98	%

(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

Investor Relations Contact
PSB Holdings, Inc.
1905 Stewart Avenue
Wausau, WI 54401
888.929.9902
InvestorRelations@bankpeoples.com

The MIL Network –

January 28, 2025

MIL-OSI: ConnectM Acquires MHz Invensys, Enhancing Wireless Communication Solutions

Source: GlobeNewswire (MIL-OSI)

Company Expected to Generate an Additional $15M of Revenue from the AMI Vertical by the End of 2027

Acquisition Bolsters ConnectM’s Wireless Solutions for Smart Metering and Allows Expansion into Key Adjacent Markets

TAM for the Global Advanced Metering Infrastructure Market Predicted to be North of $47 Billion by 2030

MARLBOROUGH, Mass., Jan. 27, 2025 (GLOBE NEWSWIRE) — ConnectM Technology Solutions, Inc. (Nasdaq: CNTM) (“ConnectM” or the “Company”), a leader in the electrification economy, today announced the recent acquisition of MHz Invensys, a renowned developer of high-performing wireless communication products and solutions. ConnectM has entered an all-stock transaction in exchange for all of MHz Invensys’ assets, comprised primarily of intellectual property. The two founders, Kiran Kumar and Mahesh Oni, will stay on as employees of ConnectM. This strategic acquisition aims to bolster ConnectM’s capabilities in effectively delivering wireless communication, particularly in the smart metering/Advanced Metering Infrastructure (“AMI”) vertical. AMI enables two-way communication between smart meters and utility companies. This infrastructure collects, stores, analyzes, and presents energy usage data in real-time, allowing for more efficient and accurate monitoring of electricity, gas, and water consumption.

MHz Invensys has established technology leadership in the energy sector, addressing the complexities of traditional energy metering protocols with its advanced RF mesh-based product and solution designs. This proven technology architecture enables multi-billion scale meter readings every half hour and supports millions of smart meters with bidirectional communication for pre-payment systems.

Stellar Market Research predicts the global AMI market size to reach $47.5 billion by 2030, with a CAGR of 16.1% from 2024-2030.¹ The acquisition of MHz Invensys strengthens ConnectM’s ability to provide comprehensive, end-to-end wireless solutions. ConnectM expects to generate an additional $15M of revenue from the AMI vertical alone over the next three years. Integrating MHz Invensys’s technology allows ConnectM to serve not only its existing markets but also rapidly growing sectors such as solar grid monitoring, IoT/Industrial IoT, Renewables, and water and gas AMI. This strategic acquisition will allow ConnectM to achieve economies of scale and meet the rising demand for reliable, secure, and efficient communication solutions across a broader range of industries.

“We are excited to welcome Kiran and Mahesh, the founders of MHz Invensys, to the ConnectM family,” said Bhaskar Panigrahi, CEO and Chairman of ConnectM. “Their company’s innovative solutions and expertise in the Smart Metering domain coupled with ConnectM’s AI-powered platform will significantly enhance the offerings in our Building Electrification segment and enable us to deliver even greater value to our customers.”

About ConnectM Technology Solutions, Inc.
ConnectM is a pioneer in the electrification economy, integrating energy assets with its AI-driven technology platform. Focused on delivering solutions that drive efficiency, affordability, and sustainability, ConnectM serves home, facility, and fleet across three major segments: Building Electrification, Distributed Energy, and Transportation and Logistics. The company’s vertically integrated approach combines technology, service/distribution networks, and strategic partnerships to accelerate the transition to an all-electric energy economy.

For more information, please visit: www.connectm.com. Stockholders looking to receive Company updates directly to their inbox should sign up here.

About Mhz Invensys
Mhz Invensys was established by a team with extensive experience in deploying large IoT networks globally. The team at Mhz Invensys understands the unique challenges of last-mile connectivity. Mhz Invensys offers its innovative technology to device manufacturers, communication platform providers, backhaul service enablers, and business-specific application providers such as HES (Head-End Systems), MDMS (Meter Data Management Systems), and analytics platforms.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. All statements, other than statements of present or historical fact included in this press release, regarding our future financial performance and our strategy, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “continue,” “project” or the negative of such terms or other similar expressions. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. We caution you that the forward-looking statements contained herein are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. In addition, we caution you that the forward-looking statements regarding the Company contained in this press release are subject to the risks and uncertainties described in the “Cautionary Note Regarding Forward-Looking Statements” section of the Current Report on Form 8-K filed with the Securities and Exchange Commission on July 18, 2024. Such filing identifies and addresses other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and ConnectM is under no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact:
MZ North America
(203) 741-8811
ConnectM@mzgroup.us

¹ “Advanced Metering Infrastructure Market: Global Industry Analysis and Forecast (2024-2030) Trends, Statistics, Dynamics, and Region,” Stellar Market Research (2024).

The MIL Network –

January 28, 2025

MIL-OSI: NEWTON GOLF Company Provides Preliminary Financial Results for Fourth Quarter 2024 and Full Year 2024

Source: GlobeNewswire (MIL-OSI)

CAMARILLO, CA, Jan. 27, 2025 (GLOBE NEWSWIRE) — NEWTON GOLF Company (Nasdaq: SPGC) (“NEWTON GOLF” or the “Company”), a technology-forward golf company with a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, reports preliminary financial results for the fourth quarter of 2024 (three months ended December 31, 2024) and full year of 2024 ahead of its quarterly filing.

Financial Highlights

Revenue is expected to be between $1.1 million – $1.3 million in 4Q24, an increase of 882% at the midpoint of the range from revenue of $117,000 in 4Q23
Gross margin is expected to increase from 36% in 4Q23 to 72-74% in 4Q24, driven by increased sales and efficiencies in the manufacturing process in calendar 2024
Full year 2024 revenue is expected to increase from $349,000 in fiscal 2023 to $3.4 million – $3.6 million, representing almost 10-fold growth
Full year 2024 gross margin is expected to increase from 35% in fiscal 2023 to 65-67%, driven by increased volume in manufacturing in calendar 2024

2024 Corporate Highlights

Announced a complete rebranding of the Company to NEWTON GOLF Company
Launched the Newton Fairway Motion shafts
Launched the new Newton Gravity premium putter line through the introduction of five new putter models
Expanded the Company’s global presence with the launch of the Newton Motion shafts in 50 of Japan’s largest golf retail locations
Increased the number of golf professionals using the Newton Motion Shafts on the PGA TOUR Champions from less than five at the beginning of 2024 to 34 at the end of 2024
Executed successful digital campaigns with high return on ad spending that were instrumental in the Company’s revenue growth
Closed on $9.1 million in financings to support the Company’s strategic growth
Introduced new advanced performance shafts for higher swing speeds in January 2025

NEWTON GOLF Executive Chairman Greg Campbell commented, “Our expected improved results in 4Q24 and full year 2024 is reflective of the growing acceptance of our unique technology and design elements in our putters and replacement shafts. We recognized significantly increased sales of our NEWTON Motion replacement shafts throughout 2024 from both professional and recreational golfers, and we expect that momentum to continue in 2025. Despite it being generally off season for golf, we were pleased with our Black Friday and Cyber Monday sales, and we look forward to improved gross margin performance as we scale production and bring down unit cost.”

This press release contains preliminary estimated financial results for the quarter and fiscal year ended December 31, 2024, and the financial results may change as a result of management’s continued review. The preliminary financial information included in this press release reflects the Company’s current estimates based on information available as of the date of this press release and has been prepared by Company management. This preliminary financial and operational information should not be viewed as a substitute for full financial statements and is not necessarily indicative of the results to be achieved for any future periods. This preliminary financial and operational information could be impacted by the effects of financial closing procedures, final adjustments, and other developments.

About NEWTON GOLF: A Sacks Parente Company

NEWTON GOLF: A Sacks Parente Company, is a technology-forward golf company that help golfers elevate their game. With a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, the Company’s innovative accomplishments include: the First Vernier Acuity putter, patented Ultra-Low Balance Point (ULBP) putter technology, weight-forward Center-of-Gravity (CG) design, and pioneering ultra-light carbon fiber putter shafts.

In consideration of its growth opportunities in golf shaft technologies, the Company expanded its manufacturing business in April of 2022 to develop the advanced Newton brand of premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. It is the Company’s intent to manufacture and assemble substantially all products in the United States, while also expanding into golf apparel and other golf-related product lines to enhance its growth.

The Company’s future expansions may include broadening its offerings through mergers, acquisitions or internal developments of product lines that are complementary to its premium brand. The Company currently sells its products through resellers, the Company’s websites, Club Champion retail stores, and distributors in the United States, Japan, and South Korea.

For more information, please visit the Company’s website at www.newtongolfco.com or on social media at @newtongolfco.com, @newtonshafts, or @gravityputters.

Investor Contact for NEWTON GOLF
CORE IR
516-222-2560
investors@sacksparente.com

The MIL Network –

January 28, 2025

MIL-OSI Security: Criminals operating an illegal financial service to launder millions of euros busted

Source: Eurojust

Investigations into the group began in 2023 when border police in Spain noticed suspicious trips from their airports transporting large sums of money. The trips to Cyprus by members of the criminal group were used to deliver criminal profits, which were then laundered. Authorities stopped the criminals from travelling and seized more than EUR 1.8 million.

The authorities discovered that the group was running a sophisticated money laundering service for other criminal organisations. The group acted as a financial service to transfer criminal profits internationally. Cryptocurrencies were used to move cash profits between criminal organisations. To dispose of the cash profits, money was transported on commercial flights, mainly to Cyprus, and by public transport to neighbouring countries of Spain. The group was able to carry out four to six money laundering transactions per week.

Running this financial service required a professionally structured organisation consisting of at least 52 members, operating mostly from Spain and Cyprus. The group worked with contacts outside of their organisation to liaise with clients and receive the cash to be laundered. Their contacts are linked to several commercial companies around the world.

As the financial service was used throughout Europe, authorities had to work together to stop the criminal group. An international investigation was launched by setting up a joint investigation team (JIT) at Eurojust between Spanish, Cypriot and German authorities, Eurojust and Europol. Through the JIT, information from tax and judicial authorities was exchanged that led to the takedown of the criminal group. Europol supported this international operation with experts specialised in financial crime, fighting high-risk criminal networks, unravelling money laundering structures, and tracing cryptocurrency flows.

A series of actions were carried out to stop the financial service. In October 2024, actions were carried out in Spain, France and Cyprus to dismantle the criminal group. This was followed by actions in November 2024 that targeted actors working with the criminal group. A total of 91 searches were carried out, 77 in Spain, 1 in France and 13 in Cyprus. Twenty suspects were arrested in Spain, one in France and two in Slovenia. Authorities seized a total of EUR 8 million in cash, 2 million in bank accounts and froze EUR 27 million in cryptocurrency. Investigations into the group and its financial service continue.

The following authorities were involved in the actions:

Spain: Investigating Judge no 2 of El Prat de Llobregat; Public Prosecution Office of Barcelona; Guardia Civil Special Central Unit 3, Destabilizing Threat Group-UCO
Cyprus: Attorney General’s Office; MOKAS (Unit for Combating Money Laundering); Criminal Investigation Department (CID) (in collaboration with other police departments)
Germany: Public Prosecutor’s Office, Landshut; Customs Investigation Office, München
France: Judicial Court of Marseille, Interregional Specialised Jurisdiction against organised crime (JIRS) ; National Anti-Fraud Office (ONAF), Marseille/Nice.

MIL Security OSI –

January 28, 2025

MIL-OSI: Gate Ventures Joins Morph VC Collective to Accelerate Mainstream Blockchain Solutions

Source: GlobeNewswire (MIL-OSI)

PANAMA CITY, Jan. 27, 2025 (GLOBE NEWSWIRE) — Gate Ventures, the venture capital arm of Gate.io, is proud to announce its membership in the newly launched Morph Venture Capital Collective, a prestigious network of top-tier venture capital firms supporting cutting-edge consumer blockchain projects. This strategic partnership will enable Gate Ventures to further expand its portfolio in the blockchain space, particularly within the Morph ecosystem, which focuses on fostering the mass adoption of blockchain technology.

The Morph VC Collective aims to connect promising blockchain projects with a diverse group of reputable venture capitalists, including Pantera Capital, Spartan Group, Foresight Ventures, and now, Gate Ventures. By joining this collaborative initiative, Gate Ventures will contribute to the collective’s mission to support sustainable growth for consumer blockchain applications, offering funding, strategic partnerships, and mentorship to accelerate the development and market access of emerging projects.

“We’re excited to be part of the Morph VC Collective, a key initiative that aligns with our mission to support blockchain innovation,” said Kevin Yang, Managing Partner of Gate Ventures. “By collaborating with other leading VCs, we’re helping bridge the gap between groundbreaking blockchain projects and the resources they need to succeed. Morph’s ecosystem is primed to drive the next wave of consumer adoption, and we are proud to be part of this transformative movement.”

Morph’s initiative will provide blockchain projects building in its ecosystem with invaluable exposure to top-tier investors and guidance to navigate the early stages of growth. Projects will be assessed based on technical feasibility, team composition, scalability, market potential, and more, ensuring that the most promising applications receive the support they need to thrive.

As part of this collaboration, Gate Ventures will also have access to a curated pipeline of high-potential projects within the Morph ecosystem, further strengthening its commitment to identifying and nurturing the next generation of blockchain applications.

“We’re excited to welcome Gate Ventures to the Morph VC Collective. Their addition further strengthens our network of strategic partners working to accelerate mainstream blockchain adoption. Together with our growing coalition of leading VCs, we’re building a robust support system that empowers teams to create impactful consumer applications.” said Cecilia Hsueh, CEO of Morph.

With a strong focus on mass adoption, Morph’s innovative platform is designed to cater to mainstream audiences, including gamers and social media users, making it a perfect match for Gate Ventures’ investment philosophy. Together, the two entities aim to drive the widespread use of blockchain technology and revolutionize the way decentralized applications interact with everyday users.

For more information on Gate Ventures’ involvement in the Morph VC Collective and the opportunities it provides to blockchain projects, visit www.gate.io/ventures.

About Gate Ventures

Gate Ventures, the venture capital arm of Gate.io, is focused on investments in decentralized infrastructure, middleware, and applications that will reshape the world in the Web 3.0 age. Working with industry leaders across the globe, Gate Ventures helps promising teams and startups that possess the ideas and capabilities needed to redefine social and financial interactions.

About Morph

Morph is the pioneering consumer layer, acting as the distribution hub for the resources builders need to launch and scale for the mass market. It leverages a hybrid solution of ZK and Optimistic roll-up technology and a decentralized sequencer to enable limitless possibilities within mainstream audiences, making it a user-friendly option for developers who require a chain to build these types of apps.

Media Contact:
Elaine Wang at elaine.w@gate.io

Disclaimer
The content herein does not constitute any offer, solicitation, or recommendation. You should always seek independent professional advice before making any investment decisions. Please be noted that Gate.io and/or Gate Ventures may restrict or prohibit the use of all or a portion of the services from restricted locations. For more information, please read its applicable user agreement.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aaa70831-c1f4-4497-bdbb-4ef3b74f8192

The MIL Network –

January 28, 2025

MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Albania

Source: IMF – News in Russian

January 27, 2025

Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation^{^[1]} with Albania on January 17, 2025.

The Albanian economy has turned in a strong performance in recent years, underpinned by prudent macroeconomic policies. Output is now well above its pre-pandemic trend thanks to a booming tourism sector. Prudent fiscal policies contributed to a remarkable reduction in public debt while proactive monetary policy, falling global commodity prices, and lek appreciation have facilitated disinflation. External imbalances have shrunk considerably.

Growth prospects are expected to remain robust. Following an expansion of 3.9 percent in 2023, real GDP growth is projected to average around 3½ percent in 2024–2029, driven by domestic consumption, tourism, and construction activity. End-of-year inflation in 2024 is expected at around 2 percent, below the Bank of Albania’s (BoA) 3 percent target. Although base effects from a significant month-on-month drop in early 2024 will temporarily push up inflation in the first half of 2025, a sustained return to target is not expected before 2026, given the high degree of inertia in the inflation process in Albania.

The authorities are expected to outperform their 2024 budget target. With revenues on track, thanks to the favorable conjuncture, and capital spending execution lagging, the primary surplus is projected at around 0.5 percent of GDP in 2024, marginally higher than the
0.3 percent of GDP budget target. The 2025 budget aims for a zero primary balance. The public debt ratio, expected at around 56 percent at end-2024, is expected to decline to around 50 percent in 2029 and is assessed to be sustainable over the medium-term.

Systemic vulnerabilities in the financial system appear broadly contained. The banking sector remains well-capitalized and liquid with average prudential ratios well above regulatory requirements. However, banks’ large-borrower and sovereign exposures represent sources of risk, as does the rapid expansion of banks’ lending to the real estate sector, which has seen continued price increases and accounts for two-thirds of unhedged FX loans.

Notwithstanding the upbeat macroeconomic picture, considerable structural challenges remain. GDP per capita stands at just around a quarter of the U.S. and EU-15 levels, amid rapid aging and emigration. Wide-ranging reforms, including to enhance governance and public financial management frameworks, boost human capital and productivity, are needed to catalyze lasting higher growth and convergence.

Executive Board Assessment^{^[2]}

Executive Directors agreed with the thrust of the staff appraisal. They welcomed Albania’s recent strong economic performance, underpinned by prudent macroeconomic policies and booming tourism. Directors concurred that the outlook remains favorable with broadly balanced risks, but noted structural challenges related to rapid population aging, emigration, low productivity, and governance shortcomings. They emphasized the importance of preserving macroeconomic stability while advancing reforms to accelerate convergence with the EU and promote sustainable and inclusive growth.

Directors considered that maintaining a modest annual primary surplus alongside continued efforts to strengthen debt management would reinforce fiscal resilience. While welcoming the progress on the authorities’ medium‑term revenue strategy, they emphasized that sustained revenue administration and tax policy reforms will be needed to address rising spending needs. Directors stressed that public investment and fiscal risk management reforms, especially related to state‑owned enterprises and public‑private partnerships, remain critical to fiscal transparency.

Directors agreed that uncertainty around the outlook calls for a continued data‑dependent approach to monetary policy. As the sustained lek appreciation is assessed to be largely driven by fundamentals, Directors emphasized that the exchange rate should be allowed to adjust more flexibly, with intervention serving as a complementary tool to address non‑fundamental fluctuations. Carefully weighing the costs and benefits of further reserve accumulation would also be important.

Directors concurred that continued supervisory vigilance is vital given pockets of vulnerability in the financial sector related to credit growth in the real estate sector as well as banks’ large borrower and sovereign exposures. They encouraged the authorities to ensure strict regulatory compliance and greater alignment with EU standards, and to enhance the macroprudential toolkit. Deepening financial markets and improving oversight of non‑bank financial institutions are key to enhancing resilience and preserving integrity.

Directors emphasized that deeper reforms are needed to maximize the gains from the EU accession process. Policies should focus on enhancing productivity by fostering global value chain integration, removing barriers to firm growth, and promoting access to bank lending. Further efforts to update education and training programs, advance on the digital agenda, boost female labor force participation, and diversify renewable energy sources would also be important. Directors emphasized that continued infrastructure investments and governance reforms—including the implementation of the 2024–30 Anticorruption Strategy and further implementation of AML/CFT international standards—are key priorities.

Albania: Selected Economic Indicators
Population: 2.8 million (2023)		Per capita GDP ($): 8300 (2023)
Life expectancy (years): 76.8 (2023)		Literacy rate: 99% (2022)
Nominal GDP ($bn): 23.0 (2023)		Poverty rate: 21.7% (2023)
Quota: SDR 139.3 million (0.03 percent of total)

	2023		2024	2025	2026
			Proj.
Output
Real GDP growth (%)	3.9		3.6	3.5	3.5
Output gap (%)	0.5		0.3	0.1	0.0

Prices
Inflation (%, average)	4.8		2.2	2.8	2.8
Inflation (%, end-period)	3.9		2.0	2.2	3.0

General government finances
Revenues (% GDP)	27.2		28.1	27.9	27.9
Expenditures (% GDP)	28.5		29.8	30.4	30.5
Fiscal balance (% GDP)	-1.3		-1.7	-2.5	-2.6
Public debt (% GDP) 1/ 2/	58.4		56.4	55.5	54.5
Primary balance (% GDP)	0.7		0.5	0.0	0.0

Money and credit
Broad money (% change)	2.0		7.1	5.4	6.6
Credit to the private sector (% change)	5.0		10.7	5.4	6.6

Balance of payments
Current account (% GDP)	-1.2		-3.4	-3.7	-3.9
FDI (% GDP)	5.7		6.0	6.0	5.8
Reserves (months of imports)	7.3		6.3	6.2	6.3
External debt (% GDP)	46.2		41.0	39.8	38.7

Sources: Albanian authorities, World Bank, UNDP, and IMF staff estimates and projections.
1/ Public debt refers to the general government and includes all public domestic and external guarantees as well as arrears from central and local government and VAT refund arrears.
2/ The 2021 SDR allocation equivalent at present to $170 million is recorded with the Bank of Albania and is used as a credit line.

[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

[2] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summing up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Eva Graf

Phone: +1 202 623-7100Email: MEDIA@IMF.org

https://www.imf.org/en/News/Articles/2025/01/24/pr25016-albania-imf-executive-board-concludes-2024-article-iv-consultation

MIL OSI

MIL OSI Russia News –

January 27, 2025

MIL-OSI United Kingdom: Switch to e-billing for a chance to win up to £1,000 off your Council Tax bill

Source: City of Derby

Derby residents could win up to £1000 off next year’s Council Tax bill if they sign up for electronic billing.

Electronic billing is another way to receive your Council Tax bill. Instead of getting a paper bill in the post, you can view your bill online.

Switching to e-billing online is easy to do and Council Tax payers who are registered for e-billing by 14 February 2025 will be entered in to a prize draw

The first prize is up to £1000 off, with four runner-up prizes of up to £500 off for the 2025/26 Council Tax bill year.

Available 24 hours a day, seven days a week, the secure online system means you can access your Council Tax account information at any time, any place.

Council Tax payers need first to register for myAccount. As soon as this account is activated, you can select the electronic billing option.

Anyone who has already registered for e-billing will be automatically included in the prize draw.

With myAccount, you can also:

check your balance
set up or change a Direct Debit
make a payment arrangement
apply for an exemption or discount
update your contact details

Councillor Hardyal Dhindsa, Cabinet Member for Digital and Organisational Transformation, said:

We continually strive to expand our online offering to make interacting with the Council faster, more convenient, and more secure.

Registering for myAccount and e-billing is free and easy and means residents can check their Council Tax bills at any time. By not receiving paper bills, they also help to keep costs down and minimise our impact on the environment.

Every sign-up helps. Postage costs are so high that a relatively small number will cover the cost of the prize draw. Every additional sign-up will directly benefit the Council, helping us to maintain essential services.

I would encourage all Council Tax payers who aren’t already registered for e-billing to do so now and be in with a chance to win money off their next Council Tax bill.

See the prize draw details

MIL OSI United Kingdom –

January 27, 2025

MIL-OSI China: Beijing symposium discusses legal protection for autistic individuals

Source: China State Council Information Office 2

Signage at an autism legislation symposium in Beijing, Dec. 20, 2024. [Photo by Xu Xiaoxuan/China.org.cn]
A symposium focused on advancing the enactment and implementation of autism-related laws and regulations was held in Beijing on Friday. The China Legal Exchange Foundation (CLEF) and Beijing Highking Law Firm hosted the event, gathering experts from the legislative, judicial, education and social service sectors to discuss building a more inclusive society for people with autism.
Zhang Mingqi, vice president and secretary-general of the China Law Society, highlighted the urgency of this initiative. He referenced the decision from the third plenary session of the 20th Central Committee of the Communist Party of China to improve the social security and service systems for people with disabilities.
“China has over 13 million individuals with autism,” Zhang said. “The challenges they face are multifaceted, spanning access to education, health care and employment, as well as long-term structural issues like social integration and support. This makes the creation of autism-specific laws and regulations both critical and urgent.”
He advocated for an inclusive judicial system with protective measures for individuals with autism in legal proceedings, calling for increased policy support across multiple sectors.
CLEF Chairwoman Zhang Suofei emphasized the symposium’s role in facilitating professional exchange. She expressed hope that it would advance autism-related legislation and create a friendlier, more inclusive social environment where individuals with autism can live with equality and dignity.
Zhang Qinghua, director of Beijing Highking Law Firm, discussed the firm’s two decades of public welfare work and its commitment to supporting the autism community through legal advocacy and public interest initiatives.

Participants attend an autism legislation symposium in Beijing, Dec. 20, 2024. [Photo by Xu Xiaoxuan/China.org.cn]
Zhang Junru, founder of the Golden Wings Rehabilitation Center, shared the organization’s achievements in empowering autistic youth through art and physical rehabilitation over 14 years. Since its founding in 2010, Golden Wings has developed a unique teaching system that combines art and sports to build confidence and a sense of accomplishment among its participants.
The center provides instruction in painting, music, calligraphy, fitness, basketball and climbing. Participants’ artwork has been converted into postcards, calendars, stickers and silk scarves, generating 1.34 million yuan ($183,649.68) in supplemental income for families.
Golden Wings has helped 1,425 young people with autism develop their artistic abilities, with 523 winning awards at home and abroad. The center has mounted exhibitions in the Netherlands, France, Germany, Japan and seven Chinese cities, displaying 11,888 paintings to over 100,000 visitors.
Experts from Peking University, Beijing Normal University and the Beijing Financial and Tax Law Society joined an Australian autism behavior therapist to offer recommendations for protecting the rights of people with autism.
The symposium marked the official launch of the Starlight Rights and Interests Fund under the CLEF. The fund, initiated by Beijing Highking Law Firm, will support autism research, public welfare activities and legislative efforts while raising public awareness.

Golden Wings students’ artwork is displayed at a charity auction during an autism legislation symposium in Beijing, Dec. 20, 2024. [Photo by Xu Xiaoxuan/China.org.cn]
The event concluded with a charity auction of paintings by Golden Wings students. Proceeds will support the center’s rehabilitation programs.

MIL OSI China News –

January 27, 2025

MIL-OSI Asia-Pac: Recommendations of the 55th Meeting of the GST Council

Source: Government of India

Recommendations of the 55th Meeting of the GST Council

GST Council recommends reduction in GST rate on Fortified Rice Kernel (FRK), classifiable under 1904, to 5%

GST council also recommends to fully exempt GST on gene therapy

GST Council recommends exemption of GST on contributions by general insurance companies from third-party motor vehicle premiums for Motor Vehicle Accident Fund

GST Council recommends no GST on transaction of vouchers as they are neither supply of goods nor supply of services. The provisions related to vouchers is also being simplified.

GST Council clarifies that no GST is payable on ‘penal charges’ levied and collected by banks and NBFCs from borrowers for non-compliance with loan terms

GST Council recommends reduction of payment of pre-deposit for filing an appeal before the Appellate Authority in respect of an order passed which involves only penalty amount

Posted On: 21 DEC 2024 8:23PM by PIB Delhi

Jaisalmer, Rajasthan, 21 st December 2024

The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today.

The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya and Odisha; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana; besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.

The GST Council inter-alia made the following recommendations relating to changes in GST tax rates, provide relief to individuals,measures for facilitation of trade and measures for streamlining compliances in GST.

A. Changes in GST rates of goods

GOODS

1. To reduce the GST rate on Fortified Rice Kernel (FRK), classifiable under 1904, to 5%.

2. To exempt GST on gene therapy.

3. To extend IGST exemption to systems, sub-systems, equipment, parts, sub-parts, tools, test equipment, software meant assembly/manufacture of LRSAM system under Notification 19/2019-Customs.

4. To reduce the rate of Compensation Cess to 0.1% on supplies to merchant exporters at par with GST rate on such supplies.

5. To exempt from IGST imports of all equipment and consumable samples by Inspection Team of the International Atomic Energy Agency (IAEA) subject to specified conditions.

6.To extend the concessional 5% GST rate on food inputs of food preparations under HSN 19 or 21 that are supplied for food preparations intended for free distribution to economically weaker sections under a government program subject to the existing conditions.

SERVICES

To bring supply of the sponsorship services provided by the body corporates under Forward Charge Mechanism.

To exempt GST on the contributions made by general insurance companies from the third-party motor vehicle premiums collected by them to the Motor Vehicle Accident Fund, constituted under section 164B of the Motor Vehicles Act, 1988. This fund is constituted for providing compensation/ cashless treatment to the victims of road accidents including hit and run cases.

To omit the definition of declared tariff and suitably amend the definition of specified premises (from the services rate and exemption notifications) to link it with actual value of supply of any unit of accommodation provided by the hotel and to make the rate of GST applicable on restaurant services in such hotels, for a given financial year, dependent upon the ‘value of supply’ of units of accommodation made in the preceding financial year, i.e. 18% with ITC if the ‘value of supply’ exceeded Rs. 7,500 for any unit of accommodation in the preceding financial year, and 5% without ITC otherwise. Further, to give an option to pay tax on restaurant service in hotels at the rate of 18% with ITC, if the hotel so chooses, by giving a declaration to that effect on or before the beginning of the financial year or on obtaining registration.The above changes to be made effective from 01.04.2025 to avoid any transition difficulties.

To exclude taxpayers registered under composition levy scheme from the entry at Sr. No. 5AB introduced vide Notification No. 09/2024-CTR dated 08.10.2024 vide which renting of any commercial/ immovable property (other than residential dwelling) by unregistered person to registered person was brought under reverse charge mechanism. Further, to regularize the period from the date when the notification No. 09/2024-CTR dated 08.10.2024, became effective i.e. from 10.10.2024 till the date of issuance of the proposed notification on “as is where is” basis.

Other changes relating to goods and services

1. To increase the GST rate from 12% to 18 % on sale of all old and used vehicles, including EVs other than those specified at 18% –Sale of old and used petrol vehicles of engine capacity of 1200 cc or more & of length of 4000 mm or more; diesel vehicles of engine capacity of 1500 cc or more & of length of 4000 mm and SUVs.[Note: GST is applicable only on the Value that represents Margin of the Supplier, that is, the difference between the Purchase price and Selling price (depreciated value if depreciation is claimed) and not on the value of the vehicle. Also, it is not applicable in case of unregistered persons.]

2. To clarify that Autoclaved Aerated Concrete (ACC) blocks containing more than 50% fly ash content will fall under HS 6815 and attract 12% GST.

3. To clarify that pepper whether fresh green or dried pepper and raisins when supplied by an agriculturist is not liable to GST.

4. To amend the definition of ‘pre-packaged and labelled’ to cover all commodities that are intended for retail sale and containing not more than 25 kg or 25 litre, which are ‘pre-packed’ as defined under the Legal Metrology Act, or a label affixed thereto is required to bear the declarations under the provisions of the Act and rules.

5. To clarify that ready to eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99 and attracts 5% GST if supplied as other than pre-packaged and labelled and 12% GST if supplied as pre-packaged and labelled. However, when popcorn is mixed with sugar thereby changing its character to sugar confectionary (eg caramel popcorn), it would be classifiable under HS 1704 90 90 and attract 18% GST. It has been decided to regularise the issues for the past on “as is where is” basis.(Note: There is no new imposition of any tax in this regard and is merely a clarification as certain field units were demanding different tax rates on the same. Therefore, it is a clarification being recommended by the GST Council to settle the disputes arising out of interpretation.)

6. To clarify that the Explanation in Sl. No. 52B in notification No. 1/2017- Compensation Cess (Rate) dated 28.6.2017 regarding ground clearance is applicable with effect from 26.07.2023.

7. To clarify that RBI regulated Payment Aggregators are eligible for the exemption under entry at Sl. No. 34 of notification No. 12/2017-CT(R) dated 28.06.2017 since they fall within the ambit of ‘acquiring bank’ as defined in the said entry. To also clarify that this exemption does not cover payment gateway (PG) and other fintech services which do not involve settlement of funds.

8. To clarify that no GST is payable on the ‘penal charges’ levied and collected by banks and NBFCs from borrowers for non-compliance with loan terms.

B. MEASURES FOR FACILITATION OF TRADE

1. Amendment in Schedule III of CGST Act, 2017

To insertclause (aa) in paragraph 8 of Schedule III of the CGST Act, 2017w.e.f.01.07.2017, to explicitly provide that supply of goods warehoused in a Special Economic Zone (SEZ) or Free Trade Warehousing Zone (FTWZ) to any person before clearance of such goods for exports or to the Domestic Tariff Area, shall be treated neither as supply of goods nor as supply of services.
This brings transactions relating to supply of goods warehoused in SEZ/FTWZ at par with the existing provision in GST for transactions in Customs bonded warehouse.

2. Issues pertaining to taxability of Vouchers

In a significant move to address long-standing concerns regarding the taxability of vouchers under GST, the GST Council made the following recommendations:

To omit sections 12(4) and 13(4) from CGST Act, 2017 and rule 32(6) from CGST Rules, 2017 to resolve ambiguities in the treatment of vouchers.
To issue clarification on the following issues:

Transactions in vouchers shall be treated neither as a supply of goods nor as a supply of services.
Distribution of vouchers on principal-to-principal basis shall not be subject to GST. However, where vouchers are distributed on principal-to-agent basis, the commission/fee or any other amount charged by the agent for such distribution is taxable under GST.
Additional services such as advertisement, co-branding, marketing and promotion, customization and technology support, customer support etc. related to vouchers would be leviable to GST on the amount paid for these services.
Unredeemed vouchers (breakage) would not be considered as supply under GST and no GST is payable on income booked in the accounts in respect of breakage.

3. Issuance of clarifications through the circulars to remove ambiguity and legal disputes in certain issues.

To issue circulars to provide clarity in the following issues due to varied interpretations by the field formations:

Clarification regarding requirement of reversal of Input Tax Credit by electronic commerce operators in respect of supplies made under section 9(5) of CGST Act, 2017: The GST Council recommended that no proportional reversal of ITC under section 17 (1) or section 17 (2) of CGST Act, 2017 is required to be made by the ECO in respect of supplies for which they are required to pay tax under section 9(5) of CGST Act, 2017.
Clarification on availability of Input Tax Credit as per section 16(2)(b) of CGST Act, 2017 in respect of goods which have been delivered by the supplier at his (supplier’s) place of business : The GST Council recommended to clarify that in an Ex-Works contract, where goods are delivered by the supplier to the recipient or a transporter at the supplier’s place of business, and the property in goods transfers to the recipient at that point, the goods are considered to be “received” by the recipient under section 16(2)(b) of CGST Act, 2017 and the recipient may claim Input Tax Credit (ITC) on such goods, subject to the conditions outlined in Sections 16 and 17 of the CGST Act, 2017.
Clarification regarding applicability of late fee for delay in furnishing of FORM GSTR-9C and providing waiver of late fee on delayed furnishing of FORM GSTR-9C for the period from 2017-18 to 2022-23:

The GST Council recommended to clarify through a circular that the late fee under Section 47(2) of the CGST Act, 2017 is leviable for the delay in filing the complete annual return under Section 44 of the CGST Act, 2017, which includes both FORM GSTR-9 (Annual Return) and FORM GSTR-9C (Reconciliation Statement), where applicable.
For the annual returns pertaining to the period 2017-18 to 2022-23, the GST Council also recommended to issue notification under section 128 of CGST Act, 2017 for waiver of the amount of late fee for delayed filing of FORM GSTR-9C, which is in excess of the amount of late fee payable till the date of filing of FORM GSTR-9 for the said financial years, provided the said FORM GSTR-9C is filed on or before 31^st March 2025.

C. MEASURES FOR STREAMLINING COMPLIANCES IN GST

1. Insertion of new provision for Track and Trace Mechanism

To insert an enabling provision in CGST Act, 2017 through Section 148A so as to empower the Government to enforce the Track and Trace Mechanism for specifiedevasion prone commodities.
The system shall be based on a Unique Identification Marking which shall be affixed on the said goods or the packages thereof. This will provide a legal framework for developing such a system and will help in implementation of mechanism for tracing specified commodities throughout the supply chain.

2. Clarification regarding recording of correct details of name of the State of the un-registered recipient as well as correct declaration of place of supply in respect of supply of ‘Online Services’

To clarify that in respect of supply of ‘Online Services’ such as supply of online money gaming, OIDAR services, etc. to unregistered recipients, the supplier is required to mandatorily record the name of the State of the unregistered recipient on the tax invoice and such name of State of recipient shall bedeemed to be the address on record of the recipient for the purpose of section 12(2)(b) of IGST Act, 2017 read with proviso to rule 46(f) of CGST Rules, 2017

D. OTHER MEASURES PERTAINING TO LAW & PROCEDURE

1. Amendment in section 17(5)(d) of CGSTAct, 2017

To align the provisions of section 17(5)(d) of CGST Act, 2017 with the intent of the said section, the Council has recommended amending section 17(5)(d) of CGST Act, 2017, to replace the phrase “plant or machinery” with “plant and machinery”, retrospectively, with effect from 01.07.2017, so that the said phrase may be interpreted as per the Explanation at the end of section 17 of CGST Act, 2017.

2. Amendment in section 107 and section 112 of CGST Act, 2017 to provide for payment of pre-deposit for filing an appeal in respect of an order passed which involves only penalty amount.

To amend the proviso to section 107(6) of CGST Act, 2017 providing for payment of pre-deposit at 10% instead of 25 %for filing appeals before Appellate Authority in cases involving only demand of penalty without involving the demand of tax.
To insert a new proviso to section 112(8) of CGST Act, 2017 providing for payment of pre-deposit at10%for filing appeals before Appellate Tribunalin cases involving only demand of penalty without involving the demand of tax.

3. Amendment in section 2(69) of CGST Act, 2017 to insert an Explanation regarding definitions of Local Fund and Municipal Fund: To amend clause (c) of section 2(69) of CGST Act, 2017 and to insert an Explanation under the same to provide for definitions of the terms ‘Local Fund’ and ‘Municipal Fund’ used in the said clause.

4. Amendment in provisions pertaining to Input Services Distributor (ISD) mechanism under CGST Act, 2017 and CGST Rules, 2017

Toamend Section 2(61) and Section 20(1) of the CGST Act, 2017 to explicitly include inter-state RCM transactions under the ISD mechanism by including reference to supplies subject to tax under section 5(3) and 5(4) of IGST Act, 2017 in the said provisions.
Consequentially, to amend section 20(2) of CGST Act, 2017 and rule 39(1A) of the CGST Rules, 2017.
These, amendments in CGST Act, 2017 are to be made effective from 01.04.2025.

5. Provision for grant of Temporary Identification Number by Tax Officers to persons, not liable to be registered otherwise

To insert new rule 16A in CGST Rules, 2017 to provide for a separate provision for generation of temporary identification number for persons, who are not liable to be registered under CGST Act, 2017 but are required to make any payment as per rule 87(4) of CGST Rules, 2017.
To amend Rule 87 (4) of CGST Rules, 2017 incorporating a reference to the new Rule and consequential modification of FORM GST REG-12.

6.Amendment in the field ‘category of registered person’ for taxpayers who opted for composition levy through FORM CMP-02

Toamend sub-rule (1) of rule 19 of CGST Rules, 2017 to include reference to FORM GST CMP-02 in the said rule toallow thetaxpayers to modify their “category of registered person” in Table 5 of FORM GST CMP-02throughFORM GST REG-14.

Amendment in CGST Act, 2017 and CGST Rules, 2017 in respect of functionality of Invoice Management System (IMS)

The GST Council recommended inter-alia-

To amend section 38 of CGST Act, 2017 and rule 60 of CGST Rules, 2017 to provide a legal framework in respect of generation of FORM GSTR-2B based on the action taken by the taxpayers on the Invoice Management System (IMS).
To amend section 34(2) of CGST Act, 2017, to specifically provide for requirement of reversal of input tax credit as is attributable to a credit note, by the recipient, to enable the reduction of output tax liability of the supplier.
To insert a new rule 67B in CGST Rules, 2017, to prescribe the manner in which the output tax liability of the supplier shall be adjusted against the credit note issued by him.
To amend section 39 (1) of CGST Act, 2017 and rule 61 of CGST Rules, 2017 to provide that FORM GSTR-3B of a tax period shall be allowed to be filed only after FORM GSTR-2B of the said tax period is made available on the portal.

E. OTHER MEASURES:

The GST Council approved the recommendation of the committee of officers suggesting measures for the various issues raised by the States in respect of issues pertaining to IGST settlement and asked the committee to conclude the desired changes by March, 2025.
The GST Council took note of the procedural rules proposed for the internal functioning of the GSTAT, which would be notified after examination by the Law Committee. This would help in operationalization of the GSTAT.
The Council also decided to extend the time frame for the Group of Ministers on the restructuring of the GST Compensation till 30^th June, 2025.
On the request of State of Andhra Pradesh the Council recommended that a Group of Ministers be constituted to examine the legal and structural issues, and recommend a uniform policy on imposition of levy in case of a natural disaster/calamity in the State.

The issue of whether charges collected by municipalities for granting FSI including additional FSI, chargeable to GST on reverse charge basis was brought up in the Council. The matter was deferred for further examination on the behest of the Central Government on the ground that this amount relates to Municipalities or local authority.

Note: The recommendations of the GST Council have been presented in this release containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law.

****

NB/KMN

(Release ID: 2086873) Visitor Counter : 267

MIL OSI Asia Pacific News –

January 27, 2025

MIL-OSI Australia: Privacy notice – Build to rent development notice of events

Source: Australian Department of Revenue

We are authorised by the Taxation Administration Act 1953 to request your tax file number (TFN) in the Build to rent development – notice of events form (NAT 75663). We will use your TFN to identify you in our records. It is not an offence not to provide your TFN. However, if you don’t, it may take longer to process your form.

We are also authorised to collect your personal information on this form under the Taxation Administration Act 1953 and the Income Tax Assessment Act 1997. We collect this information so that, if required, we may:

contact you about
- your form (for example, if the form is incomplete or may be incorrect)
- a build to rent development’s access to the tax incentives
assign an ATO build to rent ID to the active build to rent development if required and notify you of this
confirm that you have the authority to complete the form.

Where your notice is lodged by an intermediary, we may notify you that a notice has been lodged on your behalf.

Where authorised by law, we may give this information to other departments and agencies, including:

the Treasury
departments or agencies with responsibility for housing policy
state and territory government departments and agencies
- that administer state and territory concessions for build to rent developments.
- with responsibility for housing policy.

We may also provide taxpayer information to treaty partners overseas under international tax agreements.

Our privacy policy contains important information about your privacy, including information about how you can access and seek correction of information we hold about you, how to make a complaint if you think we have breached the Australian Privacy Principles and how we will deal with any privacy complaints.

For more information about privacy or if you suspect your privacy has been compromised, you can:

phone our Privacy hotline on 1300 661 542
write to us at

AUSTRALIAN TAXATION OFFICE
GPO BOX 9990
[Insert the name and postcode of your capital city]

For example

AUSTRALIAN TAXATION OFFICE
GPO BOX 9990
SYDNEY NSW 2001

MIL OSI News –

January 27, 2025

MIL-OSI Australia: Build to rent development tax incentives

Source: Australian Department of Revenue

Overview

The build to rent (BTR) development tax incentives give owners and investors in eligible BTR developments access to:

To access these incentives, the owner must first notify their choice to opt in by lodging the Build to rent development – notice of events (NAT 75663) approved form.

If a BTR development fails to meet the eligibility criteria in the 15-year period after making the choice, the misuse tax may apply.

Capital works accelerated deduction

The owner of a BTR development can claim a 4% deduction for capital expenditure incurred in constructing the development. This includes buildings, structural improvements and alterations.

To claim the capital works deduction, the activity must have a construction expenditure in that income year. The accelerated deduction is generally allowed once construction is complete and the owner notifies us of their choice to commence an active BTR development.

There are exceptions that allow eligibility to continue in some circumstances where a dwelling is not tenanted due to the construction of an extension, or an alteration or improvement to a dwelling or building.

Concessional withholding rate

A reduced withholding tax rate of 15% will apply to eligible fund payments made to a foreign resident of an information exchange country, from a managed investment trust (MIT).

A fund payment will not be MIT residential housing income (subject to a withholding tax rate of 30%) and can access the reduced withholding tax rate of 15% to the extent it is referrable to any of the following amounts:

A payment of rental income under a lease of the dwelling within the build to rent development (dwelling).
The amount is attributable to a capital gain from a CGT event in relation to the dwelling.
The amount is attributable to or part of a capital gain from a CGT event in relation to a membership interest in the owner of the BTR development.

Accessing the incentives

To access the BTR development tax incentives:

To access the accelerated deduction of 4%, construction of the BTR development must have commenced after 7:30 pm AEDT on 9 May 2023.

A MIT that owns an active BTR development can access the 15% concessional withholding rate, irrespective of when the development was constructed.

Eligibility criteria

The BTR development consists of 50 or more residential dwellings made available for rent to the general public.

The dwellings are residential premises, taxable Australian real property, and not commercial residential premises.

The dwellings in the BTR development (and common areas that are part of the BTR development) continue to be owned by a single entity, for at least 15 years.

The BTR development can be sold during this period to another single entity and remain eligible for the incentives.

Dwellings are tenanted or made available to the public to be tenanted by way of lease for a period of 5 years or more in accordance with any relevant legislative instrument.

At least 10% of the dwellings are available as affordable dwellings.
The number of comparable non-affordable dwellings is greater than or equal to the number of comparable affordable dwellings.

If a BTR development fails to meet any of these criteria in the 15-year compliance period, after making the choice, the misuse tax may apply.

15-year compliance period

The BTR compliance period starts from when a development commences to be an active BTR development and ends 15 years later.

If dwellings are added to a BTR development as part of an expansion, the 15-year compliance period starts when those dwellings are added.

Affordable dwelling

A dwelling will be an affordable dwelling if it satisfies the requirements determined by the Minister by legislative instrument.

The Australian Government has announced that build to rent rulesExternal Link will be made. More details will be provided once available.

Notify us of BTR development events

The owner or purchaser (depending on the event) of a BTR development must use the Build to rent development – notice of events (NAT 75663) approved form to notify us if the development:

The form must be lodged with us on or before 28 days after the event.

Commencing an active BTR development

To access the incentives for an eligible BTR development, the owner must first notify their choice to opt in by lodging the Build to rent development – notice of events (NAT 75663) approved form. If a commencement day is specified, the form must be provided to us before that date. Otherwise, the choice will be taken to have been made on the day we receive the form.

Expanding a development

An owner of an active BTR development may choose to expand by adding new eligible dwellings later. Those new dwellings, together with the existing dwellings, need to satisfy the eligibility criteria. Another notice needs to be lodged regarding the expansion.

Ceasing an active BTR development

If an active BTR development fails any eligibility criteria, the development will cease to be an active BTR development and loses access to the incentives.

The BTR owner can request the exercise of the Commissioner’s discretion to reinstate access to the incentives where certain criteria are failed. To do this the owner will need to submit a private ruling request.

Misuse tax

The BTR owner is liable to pay the misuse tax where an active BTR development it owns ceases to be an active BTR development during the 15-year compliance period. The misuse tax aims to recover tax incentives claimed during that period.

The misuse tax is the total of the capital works deduction and BTR withholding amounts.

Where there has been more than one owner, the owner who causes the cessation event is liable for the misuse tax for the whole of the 15-year compliance period up to the cessation event.

A BTR owner cannot claim a deduction for misuse tax paid.

Capital works deduction amount

The capital works deduction amount of the misuse tax is the accelerated capital works deduction claimed for the BTR development up to the cessation event, plus 8% of that amount.

The capital works deduction is calculated by:

identifying the years the development was an active BTR development
identifying the construction expenditure area for the BTR development for each of those years – to do this
- identify the portion of the construction expenditure attributable to the BTR development
- determine the days used in the 4% manner
- multiply the portion of the construction expenditure and days used, then divide by 365
reducing the amount previously calculated by the extent to which the active BTR part was used only partly for the purpose of producing assessable income
adding up the amounts for each year for each construction expenditure area
adding up the amounts calculated in the prior step for each year
multiplying the last step by the applicable tax rate, then multiply that amount by 1.08.

BTR withholding amount

The BTR withholding amount for the misuse tax is:

the total fund payments made by all owners of the BTR development up until the cessation event, that are referrable to rental income from the leases of dwellings in the BTR development
any capital gains from a CGT event in relation to a dwelling in a BTR development.

The BTR withholding amount is calculated by:

identifying each income year the development was an active BTR development
for each of those identified years, identifying each fund payment (or part of) that the owner of the BTR development makes that is referrable to
- payment of rental income under a lease of a dwelling that is part of an active BTR development
- a capital gain from a CGT event in relation to a dwelling of the active BTR development
adding up the amounts identified above then multiply these amounts by 1.08.

Commissioner’s discretion

A BTR owner may apply for the Commissioner to exercise their discretion to determine that dwellings of a BTR development satisfy the criteria, where a BTR development fails any of the following criteria:

Offering a lease to the public or tenanting the dwelling for a period of at least 5 years.
Requirement that at least 10% of dwellings in the BTR development are affordable dwellings.
The comparable dwellings requirement.

The BTR owner can request the Commissioner to exercise their discretion to reinstate access to the incentives, by submitting a private ruling request.

The Commissioner may exercise their discretion if they are satisfied that:

the dwelling did not satisfy the eligibility criteria at all times during the particular period due to events outside the BTR owner’s control
the BTR owner took all reasonable steps to satisfy the eligibility criteria as soon as practicable
at the time a determination is sought, the dwellings satisfy the eligibility criteria
the BTR owner intends that the BTR development will satisfy the eligibility criteria for the remainder of the 15-year compliance period.

Cessation after the 15-year compliance period

The misuse tax doesn’t apply if the BTR development ceases to be an active BTR development after the 15-year compliance period.

If a development ceases to be an active BTR development after the 15-year period, any non-compliance is addressed through amended assessments. For example, if the tax incentives are claimed after the cessation event, recoupment of these tax incentives is by way of amended assessment.

Further information

For further information on the BTR development tax incentives, email PGBuildtoRent@ato.gov.au with the subject line Further information BTR developments.

MIL OSI News –

January 27, 2025

MIL-OSI Australia: Foreign resident capital gains withholding overview

Source: Australian Department of Revenue

About foreign resident capital gains withholding

Foreign resident capital gains withholding (FRCGW) applies to all (individual and non-individual) vendors (property sellers) selling or disposing of certain taxable real property (property).

When selling or disposing of property in Australia:

Australian residents for tax purposes (Australian residents) must have a valid clearance certificate issued by us at, or before settlement. Without a clearance certificate, FRCGW must be withheld from the sale proceeds by the purchaser and paid to us.
Foreign residents (also known as non-residents) may incur capital gains tax (CGT) on the sale of Australian property. Purchasers withhold FRCGW from the sale price and remit this to us to go toward payment of this liability. FRCGW must be withheld unless the foreign resident vendor has a variation notice specifying a reduced rate of FRCGW.
Purchasers must pay any amount they withhold to us at, or before settlement.

The most common reasons for disposing of a property include selling and transferring to another person or entity, for more reasons see CGT events.

Rate of withholding from a property sale

The following FRCGW rates apply to the market value of property contracts signed:

Up to and including 31 December 2024, a rate of 12.5% applies to property valued at $750,000 or more.
On and after 1 January 2025, a rate of 15% applies to the value of all property.

Example: contract signed before 1 January 2025

Jane is a foreign resident and wants to sell her apartment.

Toni decides to purchase the property, signing the sale contract on 16 December 2024 for $1.2 million (its market value at that time).

Their settlement period is 28 days, with the settlement date 6 January 2025.

As the contract was signed before 1 January 2025, Toni must withhold 12.5% of $1.2 million, that is $150,000 and pay this to us.

Note: If the contract was signed after 1 January 2025, Toni would have to withhold at a rate of 15% of $1.2 million ($180,000) and pay this amount to us.

End of example

Types of assets

Taxable Australian real property requiring a clearance certificate include:

vacant land, buildings, residential and commercial property
mining, quarrying or prospecting rights where they are situated in Australia
a lease over real property in Australia
indirect Australian real property (IARP) interests, where the holder has a right to occupy land or buildings on land.

Other assets

Other types of real property-related assets, such as leases, shares that are indirect real property interests (IARPI) and options in those that aren’t listed on an official stock exchange are also subject to FRCGW.

See Vendor declarations for more info about what to do.

Excluded transactions

Some transactions (due to the way they are sold or disposed of) aren’t subject to FRCGW, including:

transactions through an approved stock exchange (such as the Australian Stock Exchange) or those using a broker-operated crossing system
transactions subject to another withholding obligation, see List of CGT assets and exemptions
securities lending arrangements, as these don’t cause a CGT liability
transactions when a vendor is in external administration, or transactions from a bankrupt estate, a composition or scheme of arrangement, a debt agreement, a personal insolvency agreement, or same or similar circumstances under a foreign law.

Market value

Usually, the market value of property is the sale price. However, if the sale price has been negotiated between the vendor and the purchaser:

at arm’s length we accept the sale price as the market value. This is the sale price before adjustments for disbursements at settlement. For example, council rates, water and sewer charges and strata levies.
at non-arm’s length, this is when the market value is different to the sale price. For example, the vendor and purchaser are related (non-arm’s length), the purchaser must seek a separate expert evaluation from a professional valuer.

Example: non-arm’s length property sale by a foreign resident

Franz is a foreign resident. He inherits a farm in Australia from a relative in February 2025.

The farm has been in drought for the last 10 years and he is happy to sell the property to another relative, at below market value (a non-arm’s length transaction) for $500,000.

The purchaser organises a market valuation, which values the farm at $800,000 (the arm’s-length value).

As a foreign resident, Franz is subject to FRCGW and a rate of 15% applied to the market value of the property when the contract is signed in March 2025.

Franz is happy with this arrangement as he’s not sure how long it would take to sell it at the market rate.

The purchaser must withhold $120,000 from the property sale and pay it to us.

Market value $800,000 × FRCGW rate of 15% = $120,000 withholding

Sale price $500,000 − withholding $120,000 = $380,000 paid to Franz.

Franz applies for a TFN and lodges an income tax return for the year ended 30 June 2025. As Franz didn’t make a capital gain on the disposal of the farm, the $120,000 FRCGW credit on his income tax account is refunded to him.

End of example

Australian residents selling property

All Australian residents for tax purposes must have a clearance certificate from us when selling property to avoid the requirement of purchasers to withhold an amount from the sale. When selling property, be aware that:

you don’t have wait to sign a contract, apply for a clearance certificate as soon as you are thinking of selling – they are free
each vendor must give their clearance certificate to the purchaser at, or before, the settlement date
most clearance certificates issue within a few days, but some can take up to 28 days to process and issue
if there’s no clearance certificate provided by the vendor at, or before the settlement date, the purchaser must withhold an amount of FRCGW and pay it to us
clearance certificates are valid for 12 months from their date of issue (as long as the vendor’s residency status doesn’t change during that time)
if you decide not to sell, but have a clearance certificate, there’s no requirement to use it.

Example: the importance of getting a clearance certificate early – 15% withheld from sale

Willow and Stanley are Australian residents for tax purposes. On 1 September 2024 they decide to sell their family home, their main residence. They need the funds from the sale to purchase a new residence.

They are both are listed as owners of the property on the certificate of title, so both must apply for their own clearance certificate.

They find a purchaser on 8 January 2025 and sign the contract of sale, with a settlement 30 days later, on 6 February.

They don’t apply for a clearance certificate until 15 January and don’t have both of their clearance certificates at, or before settlement.

The property sold for $600,000, however:

Willow’s clearance certificate issued and was given to the purchaser.
Stanley was still waiting for his clearance certificate.

The sale goes through with settlement occurring. As Stanley didn’t have a clearance certificate at settlement, 15% of his share of the sale ($90,000) must be withheld by the purchaser and paid to us.

Stanley must wait until his 2025 tax return is lodged and processed for a refund.

As the purchaser had received a clearance certificate from Willow, there’s no withholding required on her share of the sale.

End of example

Example: the importance of getting a clearance certificate early – no withholding

Maisie and Max are Australian residents for tax purposes. On 1 September 2024 they decide to sell their family home, their main residence. They need the funds from the sale to purchase a new residence.

They are both are listed as owners of the property, so both must apply for their own clearance certificate.

They apply for their clearance certificates straight away, which are issued to them on 29 September 2024. They note the clearance certificate is valid until 28 September 2025 – 12 months from its date of issue.

A few months later, on 7 January 2025, they put their home on the market and a week later accept an offer of $650,000 and a fast 14-day settlement.

They already had clearance certificates, which they gave to the purchaser prior to settlement. The purchaser doesn’t withhold any FRCGW.

Note: If they didn’t have their clearance certificates, 15% of the sale price ($97,500 – $48,750 each) would have to be withheld by the purchaser and paid to us.

They would have to wait until their 2025 tax returns are lodged and processed for a refund, which could delay purchasing their new residence.

End of example

For more information, see Australian residents and clearance certificates.

Australian residency

Depending on circumstances, residency can change. We will confirm your residency status for foreign capital gains withholding when you apply for a clearance certificate.

Individuals

The residency test for individuals for tax purposes is different to that for social security and immigration purposes.

Generally, an individual will be an Australian resident for tax purposes if they:

have always lived in Australia, or came to Australia and live here permanently
have been in Australia continuously for 6 months or more, and for most of that time, worked in one job and lived at the same place
have been in Australia for more than 6 months of the year, unless their usual home is overseas and they don’t intend to live in Australia
go overseas temporarily and don’t set up a permanent home in another country
are an overseas student who came to Australia to study and are enrolled in a course that is more than 6 months.

You can work out your tax residency or work out your residency status for tax purposes.

Non-individuals

Different residency tests apply to non-individual entities such as companies, corporate limited partnerships and trusts.

Non-individuals can refer to Working out your residency.

Foreign residents selling property

Foreign resident vendors aren’t entitled to a clearance certificate and must not apply for one.

Foreign residents are subject to the full rate of FRCGW to the sale price or market value (if non-arm’s length), unless they have a variation notice that reduce this.

To see how residency affects CGT, refer to How your residency affects CGT.

See Foreign residents and variations for more detail.

Purchasing property

Any individual or entity purchasing property in Australia may have to withhold an amount from the sale price a FRCGW amount and pay it to us.

If the vendor:

provides a clearance certificate, there’s no requirement to withhold FRCGW. The entire sale price can be paid to the vendor
provides a variation notice, the purchaser must withhold an amount from the sale price or market value (if non-arm’s length). The variation notice shows a withholding rate (between 0% to 14.99%) to calculate the FRCGW amount. The remainder of the sale price or market value (if non-arm’s length) can be paid to the vendor
doesn’t give you a clearance certificate or a variation, the purchaser must withhold an amount from the sale price or market value (if non-arm’s length) and pay it to us.

Purchasers failing to withhold when required to do so may be subject to penalties. General interest charges may also apply.

For more details see Paying foreign resident capital gains tax.

MIL OSI News –

January 27, 2025

MIL-OSI Australia: Australian residents and clearance certificates

Source: Australian Department of Revenue

Clearance certificates for Australian residents

All Australian residents (for tax purposes) selling or disposing of Australian real property (property) must have a clearance certificate and give it to the purchaser at, or before settlement.

Without a clearance certificate, the purchaser must withhold up to 15% of the sale (or market value if not sold at arm’s length) for foreign resident capital gains withholding (FRCGW) purposes.

Australian residency

Depending on circumstances, residency can change. We will confirm your residency status when you apply for a clearance certificate.

Individuals

The residency test for individuals for taxation purposes is different to that for social security and immigration purposes.

Generally, an Australian resident for tax purposes is an individual who:

has always lived in Australia or has come to Australia and lives here permanently
has been in Australia continuously for 6 months or more, and for most of that time, worked in the one job and lives at the same place
has been in Australia for more than 6 months of the year, unless their usual home is overseas and they don’t intend to live in Australia
goes overseas temporarily and doesn’t set up a permanent home in another country
is an overseas student in Australia to study and is enrolled in a course that is more than 6 months.

You can work out your tax residency or work out your residency status for tax purposes.

Non-individuals

Different residency tests apply to non-individual entities such as companies, corporate limited partnerships and trusts.

Non-individuals can refer to Working out your residency.

Rate of withholding from a property sale

The following FRCGW rates apply to the market value of property contracts signed:

Up to and including 31 December 2024, a rate of 12.5% applies to property valued at $750,000 or more.
On and after 1 January 2025, a rate of 15% applies to the value of all property.

Example: the importance of getting a clearance certificate early – 15% withheld from sale

Willow and Stanley are Australian residents for tax purposes. On 1 September 2024 they decide to sell their family home, their main residence. They need the funds from the sale to purchase a new residence.

They are both listed as owners of the property on the certificate of title, so both must apply for their own clearance certificate.

They find a purchaser on 8 January 2025 and sign the contract of sale, with a settlement 30 days later on 6 February.

They don’t apply for a clearance certificate until 15 January and don’t have both of their clearance certificates at, or before settlement.

The property sold for $600,000, however:

Willow’s clearance certificate issued and was given to the purchaser
Stanley was still waiting for his clearance certificate.

The sale goes through and settlement occurs. As Stanley didn’t have a clearance certificate at settlement, 15% of Stanley’s share of the sale ($90,000) must be withheld by the purchaser and paid to us.

Stanley must wait until his 2025 tax return is lodged and processed for a refund.

As the purchaser had received a clearance certificate from Willow, there’s no withholding required on her share of the sale.

End of example

Example: the importance of getting a clearance certificate early – no withholding

Maisie and Max are Australian residents for tax purposes. On 1 September 2024 they decide to sell their family home, their main residence. They need the funds from the sale to purchase a new residence.

They are both are listed as owners of the property, so both must apply for their own clearance certificate.

They apply for a clearance certificate straight away which is issued to them on 29 September 2024. The clearance certificate is valid until 28 September 2025 – 12 months from its date of issue.

A few months later, on 7 January 2025, they put their home on the market and a week later accept an offer of $650,000 and a fast settlement.

As they had clearance certificates, which they gave to the purchaser prior to settlement, the purchaser doesn’t withhold any FRCGW.

Note: If they didn’t have their clearance certificates, 15% of the sale price ($97,500 – $48,750 each) would have to be withheld by the purchaser as FRCGW and paid to us.

They would have to wait until their 2025 tax returns are lodged and processed for a refund, which could delay purchasing their new residence.

End of example

Types of property

Taxable Australian real property requiring a clearance certificate includes:

vacant land, buildings, residential and commercial property
mining, quarrying or prospecting rights where the material is situated in Australia
indirect Australian real property interests (IARPI), where the holder has a right to occupy land or buildings on land.

Applying for a clearance certificate

In this section:

Clearance certificates

Most clearance certificates issue within a few days, but some can take up to 28 days to process and issue. Apply for a clearance certificate as soon as you think about selling a property.

The vendor (or seller) is the entity that owns the legal title to the property.

An ATO-issued clearance certificate confirms the vendor’s Australian residency for foreign capital gains withholding.

When selling Australian real property:

you don’t have to wait to sign a contract – apply for a clearance certificate as soon as you are thinking of selling, they are free
each vendor must give their clearance certificate to the purchaser before the settlement date
most clearance certificates will issue within a few days, but some can take up to 28 days to process and issue
if there’s no clearance certificate provided by the vendor by the settlement date, the purchaser must withhold an amount of FRCGW and pay it to us
clearance certificates are valid for 12 months from their date of issue (as long as the vendor’s residency status doesn’t change during that time)
if you decide not to sell, but have a clearance certificate, there’s no requirement to use it.

If a vendor is a non-individual entity, for example a super fund, partnership, trust or company, see Clearance certificates in certain circumstances.

In certain circumstances, the property can be looked after on behalf of another entity, for example, a trustee for a deceased estate.

Note: When vendors don’t have a valid clearance certificate from us at or before settlement, the purchaser must withhold a FRCGW amount from the sale.

Apply for a clearance certificate

If someone else is completing your clearance certificate application, see Who can apply on your behalf.

For more information on how to complete the form, see Capital gains withholding clearance certificate application online form instructions – for Australian residents.

A paper form and instructions are also available. See Capital gains withholding clearance certificate application paper form instructions for more information.

The contract is longer than 12 months

There may be instances where the settlement date is after the expiry date on the vendor’s clearance certificate. For example, where an off-the-plan apartment is acquired and the contract period is greater than 12 months.

The purchaser may rely on the clearance certificate being valid as long as the date it’s made available to the purchaser is within the clearance certificate period stated on the certificate, and some of this period covers the time the transaction is entered is in effect.

Who can apply

Those who can apply for a clearance certificate include:

vendors
legal practitioners
tax agents
conveyancers
real estate agents
solicitors and registered tax agents representing the vendor on their behalf.

Conveyancers, real estate agents and others charging a fee for services (but who aren’t legal practitioners or registered tax agents) should give the vendor a paper application to complete and sign. The representative can use the details on the paper clearance certificate application form to complete the online form, ensuring faster processing, as part of the settlement process.

For more information about a representative’s role see Conveyancing and the TASAExternal Link on the Tax Practitioners Board website.

Processing times

Applications must be lodged at least 28 days before settlement to ensure you have your clearance certificate in time.

Each application is processed separately, so members of a couple or group may receive them at different times.

Processing may take longer if:

the vendor hasn’t lodged income tax returns recently
there’s a change in residency status
the names on our records don’t match the names on the Certificate of Title – see Name on the clearance certificate
the property is owned by complex entity structures and determining the residency takes longer.

If you lodge your application close to the settlement date, we can’t guarantee it will be processed by that date.

If you don’t have a clearance certificate

If an Australian resident vendor doesn’t provide a valid clearance certificate at or before settlement, the purchaser must withhold a FRCGW amount, even if the Australian resident vendor:

is entitled to a clearance certificate, but didn’t get one
didn’t provide their certificate to the purchaser at or before settlement.

Name on the clearance certificate

The first and last names on the clearance certificate must match the property’s Certificate of Title for it to be accepted by the purchaser.

Middle names don’t need to be supplied or matched.

Clearance certificates are issued in the legal name on our system. If the vendor’s name has changed, update the vendor’s name on our system before applying. In some circumstances, this may not be required – see Name mismatch.

Name mismatch

If the vendor’s first and last names on the clearance certificate aren’t the same as the Certificate of Title, supply the purchaser with both:

the clearance certificate
a proof of a name change (for example, a marriage certificate, or a change of name certificate, issued from an Australian state or territory registry).

If the proof of name change is from an overseas source, you must update your name with us by post.

We don’t reissue certificates for a name mismatch in the above instances.

Title or honorific mismatch

A title (honorific) match isn’t required. For example, Susie Tan, is often known as ‘Miss’ Tan and ‘Ms’ Tan. The ‘title’ she uses on her clearance certificate application doesn’t need to match the Certificate of Title for the property.

Receiving your clearance certificate

Clearance certificates are sent by email (if it’s included in the application).

To get their clearance certificate online, individual vendors can:

log in to myGov, go to ATO online services
My profile menu, go to Communication
then History.

If there’s no email address, the clearance certificate is posted to the vendor and their contact using the address in the application.

If you choose to communicate with us via email, be aware the internet isn’t a secure environment. We can’t guarantee the privacy and security of personal information.

Lodging a tax return to claim a credit

If you don’t provide a clearance certificate to the purchaser at, or before settlement and an amount of FRCGW was withheld, you must lodge a tax return to get that amount credited to you – even if your income was below the threshold to lodge.

You need a copy of the FRCGW payment confirmation from the purchaser as proof of the amount withheld.
When completing your tax return
- declare your assessable income, including any capital gain or loss from the sale or disposal of the property, if applicable
- claim a Credit for foreign resident capital gains withholding amounts taken from the sale proceeds.
The FRCGW amount will be refunded in full if
- there are no tax debts
- there’s no CGT payable on the sale of the property.

A credit for the amount withheld for FRCGW applies to the income year the contract was signed. It may be months later when the vendor can lodge their tax return to declare their capital gain and claim any credit for the amount withheld. This is generally because tax returns can’t be lodged before the end of the relevant income year. Any amount due to the vendor will be refunded to them after the tax return is assessed.

If the contract is signed in one income year but the purchaser pays the FRCGW in the next income year, the capital gain and claim for the credit for FRCGW amounts should be included in the income year the sale contract was signed.

Invalid or fraudulent clearance certificates

We can withdraw a clearance certificate at any time if we learn a vendor is a foreign resident (also known as a non-resident).

If a purchaser, in good faith, hasn’t withheld FRCGW from the purchase price, they won’t be subject to a penalty for failure to withhold.

We will hold the vendor liable for making a false and misleading statement and may prosecute them.

Clearance certificates in certain circumstances

In certain circumstances, there are different requirements for clearance certificates.

In this section:

Relationship breakdown

A clearance certificate (or an FRCGW variation) isn’t required when a relationship breaks down, as long as:

the transfer of property happens under the Family Law Act 1975 or under a relevant state, territory or foreign law
the transferee has documentation specified in subsection 126-5(1) of the Income Tax Assessment Act 1997 (ITAA 1997) by the time of the transfer.

For more information, see PAYG Withholding variation for foreign resident capital gains withholding payments – marriage or relationship breakdownsExternal Link.

Example: property transfer and clearance certificates in a divorce settlement

After 10 years of marriage, Jenny and Mark decide to separate and file for divorce. Jenny is a resident and Mark is a foreign resident.

They own 2 properties:

a house in Melbourne valued at $3 million
an apartment in Sydney valued at $2 million.

They agree that Jenny will keep the Melbourne house and Mark will take the Sydney apartment and file consent orders for these transfers, which are granted by the court.

Jenny, an Australian resident, needs to apply for a clearance certificate for the transfer of her interest in the Sydney apartment to Mark, to ensure withholding doesn’t apply.

As Mark is a foreign resident, he can’t get a clearance certificate. However, he qualifies for CGT roll-over reliefExternal Link as the transfer is due to their marriage breakdown, which ensures a 0% rate for withholding applies. Mark doesn’t need a variation notice.

For more information, see PAYG Withholding variation for foreign resident capital gains withholding payments – marriage or relationship breakdowns.

End of example

Mortgagee sales

When you borrow funds (mortgagor) from a mortgagee (a creditor, such as a bank) and aren’t able to repay the loan, the mortgagee can force the sale of the property.

There are 3 situations where this commonly applies:

The mortgagor keeps the title to the sale while the mortgagee orders the property be sold but hasn’t repossessed the title to the property.
- The mortgagor must get a clearance certificate. Without a clearance certificate, FRCGW would apply to the sale, unless the mortgagee applies and receives a variation notice.
The mortgagee takes possession of the property and sells it, but there’s no transfer of title from mortgagor to mortgagee.
Foreclosure, when the mortgagee repossesses and takes the title to the property. FRCGW may apply when the transfer of title is made from the mortgagor to the mortgagee (generally, a sale of the property at market value).
- The transfer of title from the mortgagee to the final purchaser.

However, if the mortgagee is an Australian Deposit-taking Institution (such as an Australian bank), in some circumstances, the rate of withholding is varied to 0%. For more detail, see PAYG Withholding variation for foreign resident capital gains withholding payments – no residue after a mortgagee exercises a power of sale 2020External Link.

Deceased estates

When the executor or trustee (legal representative) of a deceased estate is selling or disposing of a property, there are some circumstances when a clearance certificate or FRCGW isn’t required:

a beneficiary of the will acquires the property (regardless of their residency)
a surviving joint tenant acquires the property
the property is transferred to the legal representative.

If the property is sold or transferred to anyone else, the legal representative must have a clearance certificate, otherwise whoever acquires the property will be required to withhold to FRCGW on their behalf and remit it to us.

When completing a clearance certificate application, the legal representative must include the deceased vendor’s name according to the name on the property title. They don’t need to have ‘as executor for’ on the application.

Example: deceased vendor passes property in the will

When Judy died, her will provides for her house to be left to her son, John.

Because there is a will in place, the executor for Judy’s estate arranges the transfer of her property to John.

There is no need for a clearance certificate and FRCGW doesn’t apply.

The executor retains a copy of her will for their records.

End of example

Example: deceased estate sells property to someone else

Lei has died and her will states that her house is to be sold and the proceeds of the sale are to go to her favourite charity.

The property title was transferred from Lei to the legal personal representative (LPR). No clearance certificate is required.

The LPR is arranging the sale of the property.

When her LPR applies for a clearance certificate, it’s not necessary to include ‘as executor for’ or ‘as legal representative for’ on the clearance certificate.

The LPR applies for the clearance certificate in Lei’s name and when the property sells, it is not subject to FRCGW.

End of example

For further information, see PAYG Withholding variation for foreign resident capital gains withholding payments – deceased estates and legal personal representativesExternal Link.

Executor of a will is a foreign resident

If the executor of the will is a foreign resident, FRCGW is applicable on the sale of the property.

They can apply for a variation of the withholding amount if:

they’re not entitled to a clearance certificate
the withholding amount is more than the Australian tax liability on the sale of the asset.

See Foreign residents and variations for more information.

Income tax exempt entities

A clearance certificate isn’t required when a vendor provides evidence they’re an income tax exempt entity, provided they have:

For more information, see PAYG Withholding variation for foreign resident capital gains withholding payments – income tax exempt entitiesExternal Link.

Trusts and super funds

The entity that has legal title to the property applies for the clearance certificate. In most cases this is the trustee who applies in their own capacity as either a company or an individual.

The name on the Certificate of Title and clearance certificate must match.

The trustee must:

ensure the associates’ detailsExternal Link in the Australian business register are updated and correct
apply for the clearance certificate
use one of either
- the trustee’s tax file number (TFN)
- their Australian business number as the identifier if applicable.

The clearance certificate is issued in the name that appears on our systems.

Trustee doesn’t have a TFN

If the:

corporate trustee is a company that doesn’t have a TFN, attach the details of the trust and the company’s Australian company number (ACN) to the application
trustee is an individual that doesn’t have a TFN, attach the details of the trust’s name with the application. For example, a copy of the trust deed.

For example, this may be needed where the trust is registered in ATO systems as ‘The trustee for ABC Trust’ where the property title contains ‘XYZ as the trustee for ABC Trust’, or the clearance certificate only lists the trustee’s name.

For assistance in completing the clearance certificate application, use the online instructions.

Consolidated groups and multiple entry groups

Withholding and intra-group transactions

A member of a consolidated group or multiple entry groups that purchases from another member of the group an asset to which the withholding applies is still required to comply with the withholding obligation.

Entity obtaining the clearance certificate

We issue a clearance certificate to the head company or provisional head company of the group, which includes the members of the group as an attachment.

We rely on the group membership information as recorded on our systems. If group membership has changed, it’s up to the head company to notify us of these changes before making a clearance certificate request.

Alternatively, subsidiary entities can, in their own right, apply for a clearance certificate and have one issued in their own name.

MIL OSI News –

January 27, 2025

MIL-OSI: Bitget Ranks Among Top 3 Crypto Exchanges for Futures Trading in November Report

Source: GlobeNewswire (MIL-OSI)

VICTORIA, Seychelles, Dec. 23, 2024 (GLOBE NEWSWIRE) — Bitget, the leading cryptocurrency exchange and Web3 company, has shared its monthly transparency report highlighting the ecosystem’s strong performance in November 2024. The cryptomarket saw a sharp increase, with Bitcoin surging past $106,000. At Bitget, this ATH trend was replicated, with Bitget Token (BGB) rising from approximately $1.44 to $1.70, marking an increase of around 18%. This upward trend was driven by Bitget’s global expansion and significant growth in trading volumes, user engagement, and platform security, especially achieving the third position worldwide in global futures trading.

Bitget retained over 45 million users with a daily trading volume of $10 billion, while USDT-M futures trading volume surged to $16 billion, and daily spot trading volume doubled, reaching $400 million. Its Protection Fund, growing impressively from $400 million+ to over $600 million, supports strong security and user trust on the platform.

In November, Bitget’s top-performing spot tokens saw impressive growth, led by UNICE at 2666.71%. Additionally, 13 tokens were listed on Poolx, and 5 tokens among these were also featured in Pre-market listings, showcasing strong interest and dual exposure for these assets.

Bitget hosted “Pitch n’ Slay” event in Bangkok. Under Bitget’s Blockchain4Her program, the competition provided exposure, capital and guidance for female entrepreneurs in the blockchain space and offered a chance to secure up to $100,000 in funding by Foresight Ventures. Pitch n’ Slay showcased the power of collaboration in creating inclusive pathways for women in blockchain, aligning with Bitget’s commitment to fostering a diverse and thriving blockchain ecosystem.

Bitget introduced VND Bank Transfer in Vietnam. It enables users to deposit VND through VietQR and withdraw funds via bank transfers to purchase popular crypto such as BTC, ETH, USDT, SOL, and BGB through Bitget’s cash conversion feature.

Bitget Wallet introduced a comprehensive memecoin trading toolkit, enabling users to discover high-potential tokens, analyze critical data, and trade seamlessly across multiple chains. Additionally, it launched the Refer2Earn Program, encouraging user growth through passive income, and a $20M Telegram Mini-App Support Program to empower developers and drive innovation in the Telegram ecosystem.

Bitget’s strong performance shows it shines again as the top global players in the crypto industry. The company will keep focusing on innovation, user engagement, and market expansion in the rapidly evolving crypto sector, ongoingly bridging CeFi and DeFi, and expanding access to decentralized finance.

For more information, please visit the monthly report here.

About Bitget

Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 45 million users in 150+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions, while offering real-time access to Bitcoin price, Ethereum price, and other cryptocurrency prices. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, token swap, NFT Marketplace, DApp browser, and more.
Bitget is at the forefront of driving crypto adoption through strategic partnerships, such as its role as the Official Crypto Partner of the World’s Top Football League, LALIGA, in EASTERN, SEA and LATAM market, as well as a global partner of Turkish National athletes Buse Tosun Çavuşoğlu (Wrestling world champion), Samet Gümüş (Boxing gold medalist) and İlkin Aydın (Volleyball national team), to inspire the global community to embrace the future of cryptocurrency.

Risk Warning: Digital asset prices are subject to fluctuation and may experience significant volatility. Investors are advised to only allocate funds they can afford to lose. The value of any investment may be impacted, and there is a possibility that financial objectives may not be met, nor the principal investment recovered. Independent financial advice should always be sought, and personal financial experience and standing carefully considered. Past performance is not a reliable indicator of future results. Bitget accepts no liability for any potential losses incurred. Nothing contained herein should be construed as financial advice. For further information, please refer to our Terms of Use.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/44eb3496-f2b3-4044-a147-b66820609d72

The MIL Network –

January 27, 2025

MIL-OSI: Enlight Announces the Financial Close for Project Roadrunner

Source: GlobeNewswire (MIL-OSI)

The debt financing package includes $550 million of construction loans

Roadrunner consists of 290 MW of solar generation and 940 MWh of energy storage capacity, and is expected to reach full COD by the end of 2025

TEL AVIV, Israel, Dec. 23, 2024 (GLOBE NEWSWIRE) — Enlight Renewable Energy Ltd. (“Enlight”, “the Company”, NASDAQ: ENLT, TASE: ENLT.TA), a leading global renewable energy platform, today announced that the Company has arranged the debt financing (the “Debt Financing”) for project Roadrunner (“Roadrunner” or “the Project”), located near Tuscon, Arizona, USA.

As part of the Debt Financing, Enlight, through its subsidiary Clenera Holdings LLC, has entered into a loan agreement with a consortium of four leading global banks including BNP Paribas Securities Corp, Crédit Agricole, Natixis CIB, and Norddeutsche Landesbank Girozentrale (Nord/LB), totaling $550 million, which are expected to convert into a $290 million term loan and $320 million of tax equity funding upon the Project’s COD. The term loan is structured with an amortization tenor of 20-25 years and is to be fully repaid 5 years from the Project’s COD (mini perm). The loans are subject to an all-in interest rate of SOFR + 1.5%-1.75%, which rises by 0.125% after four years. Paragon Energy Capital served as Clenera’s exclusive financial advisor on the transaction.

During the Project’s construction period, the Company’s equity investment is expected to amount to 10% of the expected total Project cost of $610 million. The debt financing arrangements are expected to enable the Company to recycle the entire equity investment upon COD subject to minimum project coverage ratios. The Company expects to conclude a tax equity transaction during 2025, noting that the project has secured safe harbor status.

Roadrunner (also known as Apache Solar II) is the second-largest project in Enlight’s history, consists of 290 MW solar generation and 940 MWh of energy storage capacity, and is expected to reach full COD by the end of 2025. Construction at the 1200-acre site has already begun, and all procurement contracts have been signed. The Project has a 20-year busbar power purchase agreement covering its entire output with the Arizona Electric Power Cooperative (AEPCO), and is expected to generate revenues of $51-54 million and EBITDA¹ of $41-44 million in its first full year of operation. A summary of the Project’s financial information appears in the tables below:

(as expected at COD)	Total project cost	Term debt	Upfront tax equity	Sponsor equity upon COD
	$ 610 million	$ 290 million	$320 million	$0

	Total project cost net of tax equity	Revenues in first full year	EBITDA in first full year¹
	$ 290 million	$51-54 million	$41-44 million

¹_{EBITDA is a non-IFRS financial measure. This figure represents EBITDA for the project and excludes all ITC and PTC proceeds, as well as the impact of a potential tax equity transaction. The tax equity partner’s share is expected to range between 10-15% of the Project’s EBITDA during the first years of operation.}

Roadrunner is being built in the Sulphur Springs Valley region near Tucson, Arizona. Arizona possesses one of highest rates of growth in data centers in the U.S., driving a significant increase in the demand for electricity. The area’s high altitude, mild weather, and very high irradiance make it especially suitable for a utility-scale solar plant. The Project is located in a sparsely populated area and integrates with the larger Apache Generating Station, a diverse energy complex used by AEPCO.

After the completion of Apex in Montana and Atrisco in New Mexico, Roadrunner is one of several major solar and energy storage projects that Enlight and Clenera are now constructing in the U.S. These include Country Acres (392 MW and 688 MWh) and Quail Ranch (128 MW and 400 MWh). Along with additional projects planned to be built in the years to come, these projects are driving Enlight’s massive expansion into the U.S. renewable energy market. This is best illustrated by the growing run rate of Enlight’s U.S. revenue base, which is expected to reach $195-207 million annually after the completion of the projects now under construction.

The Company’s next projects in Arizona are Snowflake (600 MW and 1,900 MWh) and CO Bar (1,211 MW and 824 MWh). The two mega projects have almost completed their development phase, and are scheduled to begin construction in the coming months. Each of the two projects are set to achieve grid connection of 1.0 GW, one of the largest in the US. These grid connections generate potential additional development opportunities in the future through the Company’s “Connect and Expand” strategy, which seeks to leverage existing interconnect infrastructure with additional generation capacity.

Nir Yehuda, CFO of Enlight, commented, “We appreciate our financial partners’ support and commitment in arranging the debt financing for project Roadrunner, which has made it possible for us to progress with its construction. Roadrunner is expected to begin commercial operation by the end of 2025. We look forward to continued collaboration on Country Acres and Quail Ranch, projects which we are now in the process of building and financing.”

“We are grateful to have established our business as a reliable partner for these financial institutions,” said Adam Pishl, President and CEO of Clenera. “We have demonstrated our ability to build projects on time and on budget, and manage operational solar and storage farms that generate consistent long-term returns. It is exciting to close this deal and fuel our continued growth with projects across America.”

Aashish Mohan, Co-Head of Energy, Resources & Infrastructure Americas, at BNP Paribas, commented, “BNP Paribas is proud to have supported Clenera and Enlight as Coordinating Lead Arranger on this landmark clean energy project financing. Supporting premier platforms like Clenera squarely fits our energy transition ambitions, and we look forward to partnering with the company again as they continue to execute on their high-quality pipeline.”

Daniel Feigin, Head of Energy & Infrastructure Group, North America at Crédit Agricole CIB, said, “Crédit Agricole CIB’s collaboration with Enlight and Clenera on this landmark project in Arizona is a testament to the power of partnership and innovation. Roadrunner will provide clean, low-cost energy and storage. We are honored to have played a crucial role in helping a world class developer bringing this project to financial close and contributing to our mission of facilitating clean power generation and economic growth.”

Nasir Khan, Managing Director & Head of Infrastructure & Energy Finance Americas at Natixis CIB, said, “We are thrilled to announce the successful close our first transaction with Enlight and Clenera, and would especially like to thank the teams for their professionalism and partnership over the past several months. Natixis CIB is committed to driving the energy transition through financing high-quality landmark projects such as Roadrunner, and we look forward to seeing it reach completion in the next year.”

Sondra Martinez, Managing Director and Head of Originations at NORD/LB New York, commented, “Nord/LB is thrilled to support Clenera and Enlight on the Roadrunner transaction. This transaction represents our commitment to partnerships and supporting clients as they advance the energy transition.”

About Enlight Renewable Energy

Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. A global platform, Enlight operates in the United States, Israel and 10 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its US IPO (NASDAQ: ENLT) in 2023. Learn more at enlightenergy.co.il.

Investor Contact

Yonah Weisz
Director IR
investors@enlightenergy.co.il

Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
+1 617 542 6180
investors@enlightenergy.co.il

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s expectations relating to the Project, the PPA and the related interconnection agreement and lease option, and the completion timeline for the Project, are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects; availability of, and access to, interconnection facilities and transmission systems; our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits; construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors; our suppliers’ ability and willingness to perform both existing and future obligations; competition from traditional and renewable energy companies in developing renewable energy projects; potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire; offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks; various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues; the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions; our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected; government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production; electricity price volatility, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards; our dependence on certain operational projects for a substantial portion of our cash flows; our ability to continue to grow our portfolio of projects through successful acquisitions; changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies; our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business; our ability to retain and attract key personnel; our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure; our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war; changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects; the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy; our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, tariffs, sanctions, export controls and anti-bribery and anti-corruption laws; our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations; our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects; limitations on our management rights and operational flexibility due to our use of tax equity arrangements; potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects; our ability to comply with tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future; the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares; various risks related to our incorporation and location in Israel; the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) and our other documents filed with or furnished to the SEC.

These statements reflect management’s current expectations regarding future events and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as may be required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

The MIL Network –

January 27, 2025

MIL-OSI: Castellum, Inc. Wins OASIS+ Unrestricted IDIQ Contract

Source: GlobeNewswire (MIL-OSI)

VIENNA, Va., Dec. 23, 2024 (GLOBE NEWSWIRE) — Castellum, Inc. (NYSE-American: CTM) (“Castellum”), a cybersecurity, electronic warfare, and software engineering services company focused on the federal government, announces that its subsidiary Specialty Systems, Inc., teaming with Castellum’s other two subsidiaries Corvus Consulting, LLC and Global Technology and Management Resources, Inc., was awarded all four unrestricted domains upon which it submitted proposals. This award is in addition to the three small business domains the Castellum team has already been awarded on One Acquisition Solution for Integrated Services Plus (“OASIS+”).

OASIS+ is a suite of government-wide, multi-award contracts designed to support federal agencies’ procurement requirements for services-based solutions. With a potential ten-year performance period and no ceiling value, OASIS+ represents a significant opportunity for the Castellum team to expand its support to federal customers. Learn more at: https://www.gsa.gov/oasis-plus/about/

“Our Castellum team could not be more excited and inspired to learn of this major strategic win, the most important in Castellum’s history, and we are 100% prepped and energized to push full throttle and maximize the considerable potential OASIS+ unrestricted IDIQ contract represents. Our award in the unrestricted category includes four key domains where we are laser-focused, determined, and galvanized for organic growth: intelligence services, technical and engineering, research and development, and management & advisory. These domains represent some of the most relevant and critically important needs and requirements across our federal government and for many of our current and future mission customers, and they also represent what we do best. OASIS+ could not be a better fit for us and our strengths. As I have reinforced in past press releases, our winning advantage starts with our exceptional Castellum professionals that bring those world-class skills, talent, and experience, specific to these domains, for our customers and our vital national security mission. And together with our strong mission and technical capabilities and extensive and relevant past performance that are also directly linked to these four domains, our Castellum team will be well-postured to successfully pursue our strong and viable organic growth plans and goals for the new year and beyond,” said Glen Ives, President and Chief Executive Officer of Castellum.

About Castellum, Inc.

Castellum, Inc. (NYSE-American: CTM) is a cybersecurity, electronic warfare, and software engineering services company focused on the federal government – http://castellumus.com/.

Cautionary Statement Concerning Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s expectations or beliefs concerning future events and can generally be identified by the use of statements that include words such as “estimate,” “project,” “believe,” “anticipate,” “shooting to,” “intend,” “plan,” “foresee,” “likely,” “will,” “would,” “appears,” “goal,” “target” or similar words or phrases. Forward-looking statements include, but are not limited to, statements regarding the Company’s expectations for revenue growth and new customer opportunities including opportunities arising from the OASIS+ unrestricted contract, improvements to cost structure, and profitability. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, among others: the Company’s ability to compete against new and existing competitors; its ability to effectively integrate and grow its acquired companies; its ability to identify additional acquisition targets and close additional acquisitions; the impact on the Company’s revenue due to a delay in the U.S. Congress approving a federal budget or continuing resolution; and the Company’s ability to maintain the listing of its common stock on the NYSE American LLC. For a more detailed description of these and other risk factors, please refer to the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (“SEC”) which can be viewed at www.sec.gov. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. The Company expressly disclaims any intent or obligation to update any of the forward-looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company.

Contact:

Glen Ives, President and Chief Executive Officer
Phone: (703) 752-6157
Contact: Info@castellumus.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fede7b34-328b-4712-af1f-9dac580afdb7

The MIL Network –

January 27, 2025

MIL-OSI: Bigbank AS Financial Calendar for 2025

Source: GlobeNewswire (MIL-OSI)

Bigbank AS has confirmed the bank’s Financial Calendar for the 2025 financial year.

In 2025, Bigbank plans to disclose information according to the following schedule:

26.02.2025	Q4 2024 and unaudited full year results
27.02.2025	January results
05.03.2025	Audited results for 2024
13.03.2025	February results
24.04.2025	Q1 interim results
08.05.2025	April results
12.06.2025	May results
24.07.2025	Q2 interim results
14.08.2025	July results
11.09.2025	August results
23.10.2025	Q3 interim results
13.11.2025	October results
11.12.2025	November results

Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 30 November 2024, the bank’s total assets amounted to 2.7 billion euros, with equity of 271 million euros. Operating in nine countries, the bank serves more than 150,000 active customers and employs over 500 people. The credit rating agency Moody’s has assigned Bigbank a long-term deposit rating of Ba1, as well as a baseline credit assessment (BCA) and adjusted BCA of Ba2.

Argo Kiltsmann
Member of the Management Board
Tel: +372 53 930 833
Email: Argo.Kiltsmann@bigbank.ee
www.bigbank.ee

The MIL Network –

January 27, 2025

MIL-OSI Canada: Prime Minister announces changes to the Ministry

Source: Government of Canada – Prime Minister

The Prime Minister, Justin Trudeau, today announced changes to the Ministry. The new Ministry will deliver on what matters most to Canadians: making life more affordable and growing the economy.

Building on the work done since 2015 to invest in Canadians, the team will continue to move forward on housing, child care, and school food while working to put more money back in people’s pockets.

The changes to the Ministry are as follows:

Anita Anand becomes Minister of Transport and Internal Trade
Gary Anandasangaree becomes Minister of Crown-Indigenous Relations and Northern Affairs and Minister responsible for the Canadian Northern Economic Development Agency
Steven MacKinnon becomes Minister of Employment, Workforce Development and Labour
Ginette Petitpas Taylor becomes President of the Treasury Board

The Prime Minister also welcomed the following new members to the Ministry:

Rachel Bendayan becomes Minister of Official Languages and Associate Minister of Public Safety
Élisabeth Brière becomes Minister of National Revenue
Terry Duguid becomes Minister of Sport and Minister responsible for Prairies Economic Development Canada
Nate Erskine-Smith becomes Minister of Housing, Infrastructure and Communities
Darren Fisher becomes Minister of Veterans Affairs and Associate Minister of National Defence
David J. McGuinty becomes Minister of Public Safety
Ruby Sahota becomes Minister of Democratic Institutions and Minister responsible for the Federal Economic Development Agency for Southern Ontario
Joanne Thompson becomes Minister of Seniors

These new ministers will work with all members of Cabinet to deliver real, positive change for Canadians. They join the following ministers remaining in their portfolio:

Terry Beech, Minister of Citizens’ Services
Bill Blair, Minister of National Defence
François-Philippe Champagne, Minister of Innovation, Science and Industry
Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant
Karina Gould, Leader of the Government in the House of Commons
Steven Guilbeault, Minister of Environment and Climate Change
Patty Hajdu, Minister of Indigenous Services and Minister responsible for the Federal Economic Development Agency for Northern Ontario
Mark Holland, Minister of Health
Ahmed Hussen, Minister of International Development
Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency
Marci Ien, Minister for Women and Gender Equality and Youth
Mélanie Joly, Minister of Foreign Affairs
Kamal Khera, Minister of Diversity, Inclusion and Persons with Disabilities
Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs
Diane Lebouthillier, Minister of Fisheries, Oceans and the Canadian Coast Guard
Lawrence MacAulay, Minister of Agriculture and Agri-Food
Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec
Marc Miller, Minister of Immigration, Refugees and Citizenship
Mary Ng, Minister of Export Promotion, International Trade and Economic Development
Harjit S. Sajjan, President of the King’s Privy Council for Canada and Minister of Emergency Preparedness and Minister responsible for the Pacific Economic Development Agency of Canada
Ya’ara Saks, Minister of Mental Health and Addictions and Associate Minister of Health
Pascale St-Onge, Minister of Canadian Heritage
Jenna Sudds, Minister of Families, Children and Social Development
Rechie Valdez, Minister of Small Business
Arif Virani, Minister of Justice and Attorney General of Canada
Jonathan Wilkinson, Minister of Energy and Natural Resources

Quote

“Our team is focused on the things that matter most to you – making life more affordable, growing the economy, and creating good jobs for the middle class. Together, we will keep building a strong future for the middle class, and for all Canadians.”

Quick Facts

Since 2015, the Ministry has made real progress for the middle class and those working hard to join it – from lifting hundreds of thousands of children out of poverty with the Canada Child Benefit to delivering on our promise of $10-a-day child care and the National School Food Program.
With the changes announced today, the Ministry retains a total of 38 ministers, in addition to the Prime Minister. In keeping with the precedent set in 2015, there is an equal number of women and men.
The Cabinet is the central decision-making forum in government, responsible for its administration and the establishment of its policy. Its members are each responsible for individual portfolios or departments.

Associated Link

MIL OSI Canada News –

January 27, 2025

MIL-OSI Security: Denver Man Sentenced for Operating Illegal Gambling Parlor

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

DENVER – The United States Attorney’s Office for the District of Colorado announces that Jonathan Arvay, 38, of Denver, was sentenced to one year and one day in prison after being found guilty by a federal jury on one count of conducting an illegal gambling business and one count of conspiracy to conduct an illegal gambling business.

According to the facts established at trial, Arvay operated Player One Arcade in Denver, part of a network of gambling parlors extending from Greeley to Pueblo. These parlors offered several electronic forms of gambling through games made to resemble arcade games, as well as virtual slot machines in which customers attempted to earn credits. Upon completing their game of choice, customers would exchange any credits won for a purported cryptocurrency, Obsidian Digital Asset Coin (ODAC), whose only function was to be exchanged for cash at an ATM-like “cryptocurrency teller machine” next door to or within the gambling parlor. Customers were required to pay a transaction fee to exchange the ODAC for U.S. currency.

“This was a modern version of old-fashioned illegal gambling,” said Acting United States Attorney Matt Kirsch. “I am grateful for our local and federal partners who helped put this criminal in prison.”

“This sentence reflects an appropriate resolution to a complicated case: When you launder money and commit fraud against the government, the FBI and our partners will track you down across jurisdictions,” said FBI Denver Special Agent in Charge Mark Michalek.

“IRS-CI remains on the cutting edge of cybercrime investigations as financial crimes continue to become more sophisticated,” said Tom Demeo Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “We are committed to staying one step ahead of criminals and leveraging our partnerships with federal and local law enforcement agencies to protect the U.S. tax system.”

United States District Judge Gordon P. Gallagher presided over the trial. The FBI Denver Field Division, the IRS Criminal Investigation Denver Field Office, and the Pueblo Police Department conducted the investigation. Assistant United States Attorneys Cyrus Y. Chung, Alison Connaughty, and Jena Neuscheler handled the prosecution.

Case Number: 23-cr-00222-GPG

MIL Security OSI –

January 27, 2025

MIL-OSI: Unaudited Half-Yearly Financial Report

Source: GlobeNewswire (MIL-OSI)

FORESIGHT VENTURES VCT PLC
(FORMERLY THAMES VENTURES VCT 1 PLC)

Unaudited Half-Yearly Financial Report
30 September 2024

FINANCIAL HIGHLIGHTS

£72.7m
Total net assets
as at 30 September 2024

1.1p
Dividend paid
26 July 2024

42.1p
NAV per share
as at 30 September 2024

CHAIR’S STATEMENT

“I present the Company’s unaudited Half-Yearly Financial Report for the six months ended 30 September 2024.”

Post-period activity
Before discussing the period to 30 September 2024, I would like to welcome our new Shareholders who have been issued shares in the Company as part of the merger with Thames Ventures VCT 2 plc (“TV2”). The merger completed on 15 November following a General Meeting held on 8 November. As part of the merger, the Company has been renamed Foresight Ventures VCT plc, and TV2 has been placed into members’ voluntary liquidation. I am also pleased to welcome Andrew Mackintosh, previously a director of TV2, who has now been appointed to the Board of the Company following completion of the merger.

The Company’s Net Asset Value (“NAV”) per share has been reset to 100.0p and the merger has resulted in an enlarged company with net assets of £110 million. The Board believes this will bring a number of benefits to the Company, such as greater scale to raise and deploy capital into new and existing portfolio companies, as well as improved liquidity for dividends and buybacks.

On 15 November, the Company launched an offer for subscription to raise £5 million (with an over-allotment facility of a further £5 million). The promoter’s fee will be waived for applications made by existing shareholders of any Foresight VCT. New investors, who do not benefit as existing investors but who make an application by 20 December 2024, will, however, benefit from the offer costs being reduced by 1.0% of the amount subscribed.

Net Asset Value and dividends
As at 30 September 2024, the Company’s NAV per share stood at 42.1p, a decrease of 4.0p (or 8.7%) over the period. After adding back the dividend paid in the period of 1.1p per share, the decrease was 6.3%.

The Company’s policy is to seek to pay annual dividends of at least 4% of net assets per annum. During the period, on 26 July 2024, the Company paid an interim dividend of 1.1p, taking total dividends paid in respect of the year ended 31 March 2024 up to 2.1p per share, equivalent to 4.1% of the opening net assets of the previous financial year. This took the total dividends paid since the merger with Downing Absolute Income VCT 1 plc, Downing Absolute Income VCT 2 plc, Downing Income VCT plc, Downing Income VCT 3 plc and Downing Income VCT 4 plc in November 2013 to 47.6p per share.

The Company offers its Shareholders the opportunity to participate in a Dividend Reinvestment Scheme, whereby they may elect to receive shares, credited as fully paid, instead of receiving dividends in cash. If you wish to participate, please contact the registrar, City Partnership, at the details provided on page 30 of the Unaudited Half-Yearly Financial Report.

Investment performance and portfolio activity
A detailed analysis of the investment portfolio performance over the period is given in the Investment Adviser’s Review.

In brief, during the six months under review, the whole portfolio showed investment valuation losses of £9.4 million. Despite this disappointing overall performance, there were some highlights; a total of £2.9 million of proceeds were received from the sale of Data Centre Response Limited, as well as deferred consideration totalling £0.6 million, producing realised gains of £2.2 million. The Investment Adviser also completed two follow-on investments totalling £1.1 million.

Responsible investing
The Board notes the commitment of the Investment Adviser, Foresight Group, to being a “Responsible Investor”. Foresight places environmental, social and governance (“ESG”) criteria at the forefront of its business and investment activities in line with best practice and in order to enhance returns for their investors.

Further detail can be found on page 17 of the Unaudited Half-Yearly Financial Report.

Special administration of the Company’s custodian of quoted assets
As previously reported, since September 2020 the Company has used IBP Capital Markets Limited (“IBP”) as custodian for its quoted investments. Appointing a custodian is a requirement of the FCA, and IBP is an FCA authorised and regulated wholesale broker, providing custody services and access to equity and fixed income securities for non-retail clients (which includes the Company).

On 13 October 2023, the FCA published a supervisory notice under section 55L(3)(a) of the Financial Services and Markets Act 2000, imposing certain restrictions on IBP. On the same date, IBP applied to the High Court and special administrators were appointed.

As noted in the Annual Report, on 19 July 2024, around 80% of the quoted investment portfolio was returned to the Company, meaning normal management and trading of these positions was resumed. The remaining 20% will be returned following the conclusion of court proceedings, the timing of which is currently anticipated to take place in the second half of 2025, unless additional claims are submitted or the outcome of the court proceedings in terms of a final distribution is any different. The Company will communicate with Shareholders if there is any new information which materially impacts the numbers presented in this report.

Share buybacks
The Company continues to operate a policy of buying in its own shares that become available in the market at a 5% discount to NAV (subject to liquidity and regulatory restrictions). Subsequent to the merger, the Board intends to reduce this target discount to 2.5% in future.

During the period the Company purchased 5,522,581 shares for cancellation at an average discount of 5.0%, which represented 3.1% of shares in issue at the date of the last Annual Report.

Share buybacks are timed to avoid the Company’s closed periods. Buybacks will generally take place, subject to demand, during the following times of the year:

August, after the Annual Report has been published
September, prior to the Half-Yearly reporting date of 30 September
January, after the Half-Yearly Report has been published
March, prior to the end of the financial year

The Company retains Panmure Liberum as its corporate broker to assist in operating the share buyback process and ensuring that the quoted spread on the Company’s shares remains at a reasonable level. Contact details for Panmure Liberum are on page 30 of the Unaudited Half-Yearly Financial Report.

Management charges and performance incentive
The annual management fee is an amount equal to 2.0% of net assets. There is no change to the management fee or secretarial fee post-merger. From 1 October 2024, the Investment Adviser took over responsibility for management of the Quoted Growth portfolio from Downing LLP. The team at Downing LLP continues to advise the Company on the Yield Focused portfolio under a subcontract agreement with Foresight Group LLP.

A new performance incentive scheme was formally approved by Shareholders as part of the merger on 15 November 2024. This scheme, in brief, means a performance fee would be payable to the Investment Adviser at the end of each performance period, subject to a total return hurdle. The fee would be equal to the lesser of: (i) 20% of distributions attributable to the relevant performance period; or (ii) 20% of the increase in the total return which is higher than the hurdle. The Board believes this new scheme will provide additional motivation for the Investment Adviser to drive enhanced shareholder value.

Board composition
As noted in the Annual Report, Chris Kay resigned as a Director of the Company on 6 June 2024. Post period end, Andrew Mackintosh has joined the Board from TV2 subsequent to the merger. Andrew is chair of UKI2S, a government-backed venture capital fund supporting companies from the UK’s scientific research base. He is a Fellow of the Royal Academy of Engineering and was awarded a CBE in the 2024 New Year Honours for services to Science and Technology, and to Enterprise Development, and we are delighted to have him on board.

The Board now comprises four Non-Executive Directors, which the Board considers to be an appropriate number for the current size of the VCT. All of the Directors are independent of the Investment Adviser, with the exception of Chris Allner who is considered non-independent by virtue of being a partner at Downing LLP, the previous investment adviser to the Company, which still provides some services to our new Investment Adviser.

VCT sunset clause
I am pleased to report that new regulations have been made to extend the UK’s VCT scheme by ten years to April 2035, following the European Commission’s confirmation that they would not oppose the continuation of the scheme. This now removes any recent uncertainty and will help support further investment by the VCT sector in early-stage companies.

Outlook
At the date of the merger the Company’s NAV per share had increased to 42.6p, as a result of valuation uplifts in the Quoted Growth portfolio, as well as favourable exchange rates on our US investments. With an offer for subscription now out to raise further funds, in addition to the cash boost on acquiring the assets of TV2, and a refreshed performance incentive scheme to greater motivate the Investment Adviser, we look forward to seeing an increase in deployment to enhance the portfolio and returns to Shareholders. Whilst the macroeconomic environment has been challenging for the last two years, the Investment Adviser is cautiously optimistic that 2025 will provide more positive conditions for our portfolio companies. The downward trajectory of inflation and interest rates should lead to increasing confidence and encourage investors to return to the market.

Atul Devani
Chair

20 December 2024

INVESTMENT ADVISER’S REVIEW

“We present our Investment Adviser’s Review for the six‑month period ended 30 September 2024.”

Unquoted Growth
Portfolio summary
At 30 September 2024, the Company held total unquoted investments of £44.4 million, split £34.5 million Unquoted Growth and £9.9 million Unquoted Yield Focused. Details of the Unquoted Yield Focused portfolio performance are set out on page 8 of the Unaudited Half-Yearly Financial Report.

The Unquoted Growth portfolio comprises 29 companies, across a range of sectors. Following a challenging period for the year ended 31 March 2024, with the portfolio unfavourably impacted by the downturn of the UK economy, the six months ended 30 September 2024 has been similarly disappointing, resulting in an overall unrealised investment valuation loss of £2.2 million in the portfolio.

Investment activity
There were no new investments made during the period ended 30 September 2024. The Company made follow-on investments in two Unquoted Growth companies during the period, totalling £1.1 million:

FundingXchange Limited (£750,000), a fintech platform delivering SME lenders insights into their portfolios. This investment was made concurrently with a £5.0 million investment from Barclays as part of a £6.0 million round. This transformational investment will allow the company to build on early commercial success and deepen the strategic and commercial relationship with Barclays.

Rated People Limited (£375,000), an online marketplace connecting homeowners and local tradespeople. This investment allows the strengthened management team to implement the necessary product and operational changes to enable a return to growth and a cash-generative business model.

There was one realisation during the period ended 30 September 2024:

DSTBTD Limited (trading as Distributed) was sold for £1 to ILX Group. No proceeds were returned to the Company, which was a disappointing result for the team, but a favourable outcome to an administration process, which was a real possibility after a proposed funding failed to come together.

Key portfolio developments
There were some material write downs in the Unquoted Growth portfolio during the period, and some companies have continued to struggle in the challenging macroeconomic environment. However, there have also been some positive movements in valuation. This has resulted in a net total realised and unrealised investment valuation loss of £3.0 million in the period, including £0.7 million in unrealised foreign exchange losses.

Of the total investment loss, total losses of £6.5 million were offset by gains of £3.5 million. The most significant movements are noted below.

The largest gain in value was in Ayar Labs, Inc, a silicon photonic chiplet developer used in next-generation AI data centers of the major hyperscalers and cloud-service providers. The valuation increased by £1.9 million, including foreign exchange losses, as a result of a new funding round.

Other unrealised valuation gains included:

Rated People Limited, an online marketplace connecting homeowners and local tradespeople, increased in value by £596,000. This was due to a follow-on funding round enhancing the Company’s share of proceeds on any liquidity event. It is also worth noting that the company is now trading profitably and under new leadership.

Carbice Corporation, Inc has developed a suite of products based on its carbon material, used primarily as thermal management solutions to enable greater thermal conductivity. The valuation increased by £401,000, including foreign exchange losses, as a result of the recent closure of a funding round that increases the prospect of growth and, ultimately, a positive realisation for investors.

Four other companies in the Unquoted Growth portfolio made up investment valuation gains of £603,000.

There were also a number of valuation losses reported in the period. The greatest loss was in Cambridge Touch Technologies Ltd, a company developing pressure sensitive multi-touch technology, which reduced in value by £1.9 million as a result of a challenging funding environment for deep tech companies. As noted above, DSTBTD Limited (trading as Distributed) was sold for £1 to ILX Group during the period. No proceeds were returned to the Company, resulting in a realised loss of £775,000.

Other investment valuation losses included:

Vivacity Labs Limited, a provider of Artificial Intelligence sensors to monitor and control traffic flows, was written down to nil value in the period, a decrease in value of £960,000, following a new funding round. The investment round (that we chose not to participate in) generated penal terms for shareholders not participating in the funding round and resulted in the write down.

Masters of Pie Limited, developer of “Radical”, a software solution that enables remote sharing and collaboration on large data sets, was reduced by £700,000 as a result of a challenging period for the company from a trading perspective. It is hoped that this situation will improve in Q4 2024, albeit the position remains challenging.

Virtual Class Ltd (trading as Third Space Learning), a platform offering personalised online lessons from specialist tutors, decreased in carrying value by £466,000, driven by significant budgetary pressure experienced by UK schools, a key customer group. It is hoped that early international sales (in the US) will somewhat offset challenges in the UK market.

Parsable, Inc., a provider of software to improve operational efficiencies in the industrial and manufacturing sectors, has seen a valuation decrease of £460,000, including foreign exchange losses. During the period, an offer to acquire Parsable was received that, whilst at a valuation lower than we expected, was accepted by the Board, and the valuation has been aligned with anticipated proceeds.

Bulbshare Limited, a company that enables brands to build communities from their existing customers to gather consumer insights, was exited post period end. The valuation was reduced by £371,000 in line with the exit proceeds received.

Trinny London Limited, a multi-channel female beauty and skincare brand, was reduced in value by £354,000 due to a decline in comparable market valuation multiples. Despite this, the business increased revenue during the period and remains profitable.

CommerceIQ, Inc., the pioneer in helping brands win on retail e-commerce channels, decreased by £221,000 in the period, including foreign exchange losses. Whilst CommerceIQ’s revenues increased during the period, market valuations for similar businesses declined and, consequently, the valuation fall is a reflection of wider market conditions.

Four other companies in the Unquoted Growth portfolio made up valuation losses of £340,000. Aside from Vivacity Labs Limited, no other investments were written down to nil during the period.

Post period end activity
After the period end, the Company completed two new investments totalling £1.6 million into Dragonfly Technology Solutions Ltd (£600,000), a predictive analytics business, and Alison Technologies Ltd (£978,000), a developer of an innovative AI marketing insights tool. The Company also completed two follow-on investments totalling £1.1 million into Maestro Media Limited (£750,000) and Virtual Class Ltd (£300,000). The Company received £1.1 million in proceeds from the exit of Bulbshare Limited in October.

At the date of the merger, the Unquoted Growth portfolio had seen positive foreign exchange movements totalling £421,000.

Outlook
Whilst the macroeconomic environment has been challenging for the last two years, we are cautiously optimistic that 2025 will provide more positive conditions for our portfolio companies. The downward trajectory of inflation and interest rates should lead to increasing confidence and encourage investors to return to the market. From an exit perspective, the IPO market is unlikely to open up in the short term, but we are seeing signs that PE and trade buyers will be more active in 2025, offering potential liquidity opportunities for portfolio companies.

In addition to the anticipated improved macro environment, we believe the merger with Thames Ventures VCT 2 plc has created a company well placed for success, with a very clear investment mandate (exclusively investing in private technology businesses) and benefiting from more streamlined company reporting and administration.

Foresight Group LLP
20 December 2024

Yield Focused portfolio
Downing LLP continues to advise the Company on the Unquoted Yield Focused portfolio under a subcontract from Foresight Group LLP.

Downing presents a review of the Yield Focused portfolio for the six months ended 30 September 2024. At the period end, the Yield Focused portfolio consisted of seven active investments, all of which are unquoted, with a total value of £9.9 million.

Divestment activity
During the period, the focus was on investment realisations from the Yield Focused portfolio, which resulted in proceeds of £2.9 million from the exit of Data Centre Response Limited, a provider of power solutions and maintenance services to data centres. There were no new or follow-on investments.

Realisations in the period ended 30 September 2024

		Total	Cost at date	Exit	Total
		invested	of disposal	proceeds	return
Company	Detail	(£)	(£)	(£)	(£)
Data Centre Response Limited	Full disposal	557,441	557,441	2,916,694	2,916,694

Key portfolio developments
The Yield Focused portfolio reduced in value by £113,000 during the period, with one company, Data Centre Response Limited, recognising a gain of £494,000 on exit, as noted above, and four companies recognising unrealised losses of £607,000:

Pilgrim Trading Limited, an operator and owner of two children’s nurseries in West London, decreased in value by £437,000 after two periods of unsuccessful marketing proved the last independent valuation of the business to be unachievable in current market conditions. Consequently, the independent valuation has now been heavily discounted.

Kimbolton Lodge Limited, a nursing and care home in Bedfordshire, decreased in value by £67,000 to bring the valuation in line with the anticipated proceeds from a sale process that is currently underway.

Doneloans Limited, which holds a portfolio of secured loans, decreased in value by £67,000 driven by the cost of its own funding marginally exceeding interest receivable from its borrowers.

SF Renewables (Solar) Limited, which built and operates a solar plant in India, was reduced by £36,000 in line with the exit proceeds received post period end.

Outlook
With one exit during the period and another shortly after period end, there were six investments remaining in the Yield Focused portfolio at the time of writing. Downing is actively seeking to progress exits from both Kimbolton Lodge and Pilgrim Trading, though the latter is currently looking less likely to materialise. Given current market conditions, sales of the higher value, hotel-related investments, Baron House Developments and Cadbury House Holdings, are expected to take some time to complete. The recovery of value from Doneloans is linked largely to the sale of Pilgrim Trading, which is the lender’s largest loan, but additional recoveries are anticipated from other borrowers over the next 12 months.

Downing LLP and Foresight Group LLP
20 December 2024

Quoted Growth portfolio
For the six months to 30 September 2024, Downing LLP continued to advise the Company on the Quoted Growth portfolio under a subcontract from Foresight Group LLP. From 1 October 2024, Foresight Group LLP took on full responsibility for management of the Quoted Growth portfolio.

Investment activity
Markets continued to be volatile through the reporting period. The impending Budget dominated market behaviours, particularly the FTSE AIM Index, where fears over an abolition of IHT reliefs on AIM shares adversely affected the market. In the end, this fear was overcooked, and the FTSE AIM All Share rallied 4% on the day of the Budget, as it was announced that reliefs on AIM shares would remain, albeit at half the relief previously enjoyed. Since the Budget, the new concern has been focused on the impact of National Insurance increases, which have weighed heavily on UK Small and Mid-Cap companies. There is a general acceptance that inflation will still be a looming threat and hence interest rates will remain higher for longer.

There were no investments or realisations made during the six months to 30 September 2024.

Key portfolio developments
At 30 September 2024, the Quoted Growth portfolio was valued at £13.4 million, comprising 36 active investments. Over the six-month period, the portfolio produced net valuation losses of £4.7 million, offset by £3.8 million received in dividends from the portfolio. Two companies, valued at £78,000 at year end, have been written down to nil during the period.

The most significant loss was incurred in Tracsis plc, a provider of transport technology, which saw valuation losses of £2.4 million during the period due to a profit warning, citing delays on rail infrastructure spend incurred due to the early election. This was exacerbated by contract delays in their US business.

This was offset by valuation gains elsewhere in the portfolio, where Anpario plc, a specialist manufacturer and distributor of natural sustainable feed additives for animal health, nutrition and biosecurity, increased by £680,000 net of £46,000 dividends received, reflecting an improvement in trading post supply chain issues experienced during the inflationary period post covid.

A net gain of £615,000 was made in Downing Strategic Micro‑Cap Investment Trust plc, where special dividends of £3.7 million were made during the period, as part of the managed wind-down of the Trust. Since the period end, a further special dividend of 2.2p, equating to £133,000, has been received by the Company.

Meanwhile Cohort plc, the parent company of six businesses providing a wide range of services and products for British, Portuguese and other international customers in defence and security markets, booked an unrealised gain of £558,000. This mirrored profit upgrades, contract renewals and strong financial results. This momentum has continued post period end.

As at 17 December 2024, the valuation of the Quoted Growth portfolio had decreased by £226,000 (-1.7%).

IBP Capital Markets Limited
As noted in the Annual Report, the Company recovered c.80% of its total Quoted Growth portfolio on 19 July 2024, with the remaining c.20% to be recovered following court proceedings, currently anticipated to take place in the second half of 2025. Up until July, the ability to trade the portfolio continued to be restricted and hence there has been limited ability to manage exposures within the portfolio. The Company is now able to trade its positions, having been unable to do so since October 2023.

Post-period end activity
Post period end, ahead of the Budget, shares were sold in 14 of the Company’s Quoted Growth portfolio holdings. Notably, holdings in Anpario plc and Craneware plc were reduced, as well as in Impact Healthcare REIT plc, a non-qualifying holding. As previously communicated to Shareholders, the strategy going forward is to realise the Quoted Growth portfolio over time, which will free up funds to be redeployed into Unquoted Growth holdings.

Outlook
A number of the Quoted Growth companies in the portfolio have been consistently overoptimistic about hitting milestones for product development, revenues and ultimately profits. Given competition for capital amongst the wider portfolio of venture capital holdings, Foresight took the difficult decision to reduce a number of these positions. Achieving a total sale of individual holdings has not been possible, given that 20% of the Company’s Quoted Growth assets are still tied up in the custodian IBP Capital Markets Limited (“IBP”), which remains in special measures. While this is frustrating, as it does not allow portfolio management to be conducted across the entire portfolio should changes need to be made, we are able to make them to substantially all of the holdings.

The Quoted Growth holdings have reduced as a percentage of the Company’s total assets, but we firmly believe that by making these changes we have increased the overall quality and see an encouraging future, despite an uncertain macroeconomic background.

Downing LLP and Foresight Group LLP
20 December 2024

UNAUDITED HALF-YEARLY RESULTS AND RESPONSIBILITIES STATEMENTS

Principal risks and uncertainties
The principal risks faced by the Company are as follows:

Investment performance
Regulatory
Operational
Economic, political and other external factors

The Board reported on the principal and emerging risks and uncertainties faced by the Company in the Annual Report and Accounts for the year ended 31 March 2024. A detailed explanation can be found on pages 26 to 28 of the Annual Report and Accounts, which is available on the Investment Adviser’s website www.foresightgroup.eu/products/foresight-ventures-vct-plc or by writing to Foresight Group at The Shard, 32 London Bridge Street, London SE1 9SG.

In the view of the Board, there have been no changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.

Directors’ responsibility statement
The Disclosure and Transparency Rules (“DTR”) of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Half-Yearly Financial Report.

The Directors confirm to the best of their knowledge that:

   a)   The summarised set of financial statements has been prepared in accordance with FRS 104
   b)   The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year)
   c)   The summarised set of financial statements gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company as required by DTR 4.2.4R
   d)   The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties’ transactions and changes therein)

Going concern
The Company’s business activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report of the Annual Report. The financial position of the Company, its cash flows, liquidity position and borrowing facilities are described in the Chair’s Statement, Strategic Report and Notes to the Accounts of the 31 March 2024 Annual Report. In addition, the Annual Report includes the Company’s objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments; and its exposures to credit risk and liquidity risk.

The Company has adequate financial resources at the period end and holds a diversified portfolio of investments. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully.

The Directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the half-yearly financial statements.

The Half-Yearly Financial Report has not been audited nor reviewed by the auditors.

On behalf of the Board

Atul Devani
Chair

20 December 2024

UNAUDITED INCOME STATEMENT
For the six months ended 30 September 2024

	Six months ended 30 September 2024 (Unaudited)			Six months ended 30 September 2023 (Unaudited)			Year ended 31 March 2024 (Audited)


	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Realised gains/(losses) on investments	—	2,202	2,202	—	(5,203)	(5,203)	—	(8,015)	(8,015)
Investment holding (losses)/gains	—	(10,311)	(10,311)	—	1,028	1,028	—	3,465	3,465
Income	4,187	—	4,187	1,065	—	1,065	906	—	906
Investment management fees	(404)	(404)	(808)	(449)	(449)	(898)	(863)	(863)	(1,726)
Other expenses	(482)	—	(482)	(376)	—	(376)	(1,346)	—	(1,346)
Return/(loss) on ordinary activities before taxation	3,301	(8,513)	(5,212)	240	(4,624)	(4,384)	(1,303)	(5,413)	(6,716)
Taxation	—	—	—	(24)	24	—	—	—	—
Return/(loss) on ordinary activities after taxation	3,301	(8,513)	(5,212)	216	(4,600)	(4,384)	(1,303)	(5,413)	(6,716)
Return/(loss) per share	1.9p	(4.8)p	(2.9)p	0.1p	(2.5)p	(2.4)p	(0.7)p	(3.1)p	(3.8)p

The total columns of this statement are the profit and loss account of the Company and the revenue and capital columns represent supplementary information.

All revenue and capital items in the above Income Statement are derived from continuing operations. No operations were acquired or discontinued in the period.

The Company has no recognised gains or losses other than those shown above, therefore no separate statement of total recognised gains and losses has been presented.

The Company has only one class of business and one reportable segment, the results of which are set out in the Income Statement and Balance Sheet.

There are no potentially dilutive capital instruments in issue and, therefore, no diluted earnings per share figures are relevant. The basic and diluted earnings per share are, therefore, identical.

UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
For the six months ended 30 September 2024

	Called-up	Share premium	Capital redemption	Special	Capital	Revaluation	Revenue
	share capital	account	reserve	reserve	reserve	reserve	reserve	Total
	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
As at 1 April 2024	1,775	2,522	71	86,901	(10,791)	6,057	(4,619)	81,916
Share issues in the period	7	301	—	—	—	—	—	308
Expenses in relation to share issues	—	(46)	—	—	—	—	—	(46)
Repurchase of shares	(55)	—	55	(2,340)	—	—	—	(2,340)
Realised gains on disposal of investments	—	—	—	—	2,202	—	—	2,202
Investment holding losses	—	—	—	—	—	(10,311)	—	(10,311)
Dividends paid	—	—	—	—	(1,953)	—	—	(1,953)
Management fees charged to capital	—	—	—	—	(404)	—	—	(404)
Revenue return before taxation for the period	—	—	—	—	—	—	3,301	3,301
Taxation for the period	—	—	—	—	—	—	—	—
As at 30 September 2024	1,727	2,777	126	84,561	(10,946)	(4,254)	(1,318)	72,673

Distributable reserves at 30 September 2024 total £51,490,000 (31 March 2024: £58,151,000).

UNAUDITED BALANCE SHEET
As at 30 September 2024

Registered number: 03150868

	As at	As at	As at
	30 September	30 September	31 March
	2024	2023	2024
	(Unaudited)	(Unaudited)	(Audited)
	£’000	£’000	£’000
Fixed assets
Investments held at fair value through profit or loss	57,746	65,871	67,393
Current assets
Debtors	8,467	7,393	7,570
Cash and cash equivalents	7,097	13,580	7,559
Total current assets	15,564	20,973	15,129
Creditors
Amounts falling due within one year	(637)	(1,077)	(606)
Net current assets	14,927	19,896	14,523
Net assets	72,673	85,767	81,916
Capital and reserves
Called-up share capital	1,727	1,770	1,775
Share premium account	2,777	2,252	2,522
Capital redemption reserve	126	71	71
Special reserve	84,561	85,122	86,901
Capital reserve	(10,946)	(5,627)	(10,791)
Revaluation reserve	(4,254)	3,619	6,057
Revenue reserve	(1,318)	(1,440)	(4,619)
Equity shareholders’ funds	72,673	85,767	81,916
Net Asset Value per share	42.1p	48.5p	46.1p

UNAUDITED CASH FLOW STATEMENT
For the six months ended 30 September 2024

	Six months ended	Six months ended	Year ended
	30 September	30 September	31 March
	2024	2023	2024
	(Unaudited)	(Unaudited)	(Audited)
	£’000	£’000	£’000
Cash flow from operating activities
Loss on ordinary activities after taxation	(5,212)	(4,384)	(6,716)
Loss on investments	8,109	4,175	4,550
Increase in debtors	(1,768)	(891)	(1,134)
Increase in creditors	59	82	304
Net cash inflow/(outflow) from operating activities	1,188	(1,018)	(2,996)
Cash flow from investing activities
Purchase of investments	(1,125)	(2,209)	(4,394)
Net proceeds on sale of investments	2,917	3,295	3,433
Net proceeds on deferred consideration	543	419	637
Net cash inflow/(outflow) from investing activities	2,335	1,505	(324)
Cash flows from financing activities
Proceeds of fundraising	—	1,586	1,585
Expenses of fundraising	—	(7)	(7)
Repurchase of own shares	(2,340)	(2,270)	(2,964)
Equity dividends paid	(1,645)	(1,498)	(3,017)
Net cash outflow from financing activities	(3,985)	(2,189)	(4,403)
Net outflow of cash in the period	(462)	(1,702)	(7,723)
Reconciliation of net cash flow to movement in net funds
Decrease in cash and cash equivalents for the period	(462)	(1,702)	(7,723)
Net cash and cash equivalents at start of period	7,559	15,282	15,282
Net cash and cash equivalents at end of period	7,097	13,580	7,559

Analysis of changes in net debt

	As at 1 April 2024 £’000	Cash flow £’000	At 30 September 2024 £’000


Cash and cash equivalents	7,559	(462)	7,097

NOTES TO THE UNAUDITED HALF-YEARLY RESULTS
For the six months ended 30 September 2024

1
The Unaudited Half-Yearly Financial Report has been prepared on the basis of the accounting policies set out in the statutory accounts of the Company for the year ended 31 March 2024. Unquoted investments have been valued in accordance with IPEV Valuation Guidelines.

2
These are not statutory accounts in accordance with s436 of the Companies Act 2006 and the financial information for the six months ended 30 September 2024 and 30 September 2023 has been neither audited nor formally reviewed. Statutory accounts in respect of the year ended 31 March 2024 have been audited and reported on by the Company’s auditor and delivered to the Registrar of Companies and included the report of the auditor which was unqualified and did not contain a statement under s498(2) or s498(3) of the Companies Act 2006. No statutory accounts in respect of any period after 31 March 2024 have been reported on by the Company’s auditor or delivered to the Registrar of Companies.

3
Copies of the Unaudited Half-Yearly Financial Report will be sent to Shareholders via their chosen method and will be available for inspection at the Registered Office of the Company at The Shard, 32 London Bridge Street, London SE1 9SG.

4 Net Asset Value per share
The Net Asset Value per share is based on net assets at the end of the period and on the number of shares in issue at the date.

		Number of shares
	Net assets	in issue
30 September 2024	£72,673,000	172,715,260
30 September 2023	£85,767,000	176,968,887
31 March 2024	£81,916,000	177,546,529

5 Return per share
The weighted average number of shares used to calculate the respective returns are shown in the table below.

	Number of shares
Six months ended 30 September 2024	176,320,908
Six months ended 30 September 2023	179,310,912
Year ended 31 March 2024	178,234,061

Earnings for the period should not be taken as a guide to the results for the full year.

6 Income

	Six months ended	Six months ended	Year ended
	30 September	30 September	31 March
	2024	2023	2024
	£’000	£’000	£’000
Income from investments
Loan stock interest	240	920	424
Dividend income	3,827	145	415
	4,067	1,065	839
Other income	120	—	67
	4,187	1,065	906

7 Investments held at fair value through profit or loss

	Unquoted Growth investments £’000	Unquoted Yield Focused investments £’000	Quoted Growth investments £’000	Total £’000



Book cost at 1 April 2024	39,760	13,651	23,241	76,652
Investment holding losses at 1 April 2024	(3,374)	(751)	(5,134)	(9,259)
Valuation at 1 April 2024	36,386	12,900	18,107	67,393
Movements in the period:
Purchases	1,125	—	—	1,125
Disposal proceeds	—	(2,917)	—	(2,917)
Realised (losses)/gains on disposals¹	(775)	2,360	—	1,585
Foreign exchange losses	(669)	—	—	(669)
Investment holding losses²	(1,554)	(2,473)	(4,744)	(8,771)
Valuation at 30 September 2024	34,513	9,870	13,363	57,746
Book cost at 30 September 2024	40,110	13,094	23,241	76,445
Investment holding losses at 30 September 2024	(5,597)	(3,224)	(9,878)	(18,699)
Valuation at 30 September 2024	34,513	9,870	13,363	57,746

Realised gains on investments in the Income Statement include realised gains relating to deferred consideration receipts totalling £617,000 from StorageOS Inc (£419,000), Efundamentals Group Limited (£96,000), Firefly Learning Limited (£74,000), DIA Imaging Analysis Limited (£14,000) and Imagen Limited (£14,000).
Investment holding losses in the Income Statement include unrealised losses which are a result of the deferred consideration debtor decrease of £871,000. The debtor movement reflects the recognition of amounts receivable in respect of DIA Imaging Analysis Limited (£45,000) and Firefly Learning Limited (£8,000), offset by receipts in respect of StorageOS Inc (£419,000), Efundamentals Group Limited (£96,000), Firefly Learning Limited (£74,000), Imagen Limited (£14,000) and DIA Imaging Analysis Limited (£14,000). Amounts were previously recognised as receivable but written down at 30 September 2024 in respect of Efundamentals Group Limited (£295,000), JRNI Limited (£8,000) and Imagen Limited (£4,000).

8 Contingencies, guarantees and financial commitments
As outlined in note 17 to the Annual Report and Accounts for the year ended 31 March 2024, the Company has used IBP Capital Markets Limited (“IBP”) as custodian for its quoted investments since September 2020. Appointing a custodian is a requirement of the FCA; IBP is an FCA authorised and regulated wholesale broker, providing custody services and access to equity and fixed income securities for non-retail clients (which includes the Company). On 13 October 2023, the FCA published a supervisory notice under section 55L(3)(a) of the Financial Services and Markets Act 2000, imposing certain restrictions on IBP. On the same date, IBP applied to the High Court and special administrators were appointed.

During the period since, the Investment Adviser has been actively collaborating with the special administrators to reach a resolution, which has involved reconciling quoted stocks held with IBP (“Custody Assets”) and cash held with IBP (“Client Money”). As at 13 October 2023, the Company held Client Money of £1.1 million (1.2% of indicative NAV on the same date), and Custody Assets of £16.9 million (19.5% of indicative NAV on the same date).

With regard to Custody Assets, whilst the final outcome remains subject to change, particularly as additional claims may be made, there have so far been two differences of value identified, together totalling a variance of £0.28 million, which was provided for at 31 March 2024. It was announced on 17 May 2024 that the special administrators would be making an interim distribution of 80% of eligible Custody Assets, and the transfer of these to the new custodian completed on 19 July 2024. The Company is now able to trade these assets on the quoted market. The remaining 20% withheld will be distributed as part of a Final Court Approved Distribution Plan, unless additional claims are made resulting in a break.

With regard to Client Money, a progress report was released on 12 April 2024 which identified a potential 44% cash shortfall equating to £0.46 million of Client Money held by the Company which was provided for at 31 March 2024. Any further deduction for fees relating to the special administration process is unknown at this point, but from the information available these are anticipated to be in the region of £0.14 million payable by the Company. These fees were accrued for as at 31 March 2024 and there has been no further adjustment to this estimate. The total potential exposure based on information available to date is therefore currently estimated to be £0.88 million, representing 1.2% of NAV at 30 September 2024.

As noted, the outcome remains subject to change with the final distribution plan being shared following the court proceedings. Timing of this is currently anticipated to take place in the second half of 2025. The Company will communicate with Shareholders if there is any new information which materially impacts the numbers presented in this report.

9 Related party transactions
No Director has an interest in any contract to which the Company is a party other than their appointment and payment as Directors.

10 Transactions with the Investment Adviser
Details of arrangements with Foresight Group LLP are given in the Annual Report and Accounts for the year ended 31 March 2024, in the Directors’ Report and notes 4 and 5. All arrangements and transactions were on an arm’s length basis.

Foresight Group LLP was appointed as Investment Adviser on 4 July 2022 and earned fees of £808,000 during the period to 30 September 2024 (30 September 2023: £898,000; 31 March 2024: £1,726,000).

Foresight Group LLP is the Company Secretary (appointed on 1 September 2023) and received, for accounting and company secretarial services, fees of £75,000 during the period to 30 September 2024 (30 September 2023: £80,000; 31 March 2024: £156,000).

At the balance sheet date there was £nil due to Foresight Group LLP (30 September 2023: £nil; 31 March 2024: £nil).

11 Post-balance sheet events
On 5 November 2024, the Company purchased for cancellation 2,197,967 ordinary shares of 1p at a gross price of 42.37p per share.

On 15 November 2024, the Company merged with Thames Ventures VCT 2 plc (“TV2”). A total of 86,637,164 shares in the Company were issued to TV2 shareholders at the price of 42.629237024071200p per share. Following this allotment, the Company redesignated 147,531,473 of its issued ordinary shares as deferred shares, which were immediately repurchased and cancelled in order to re-base the NAV per share of each of ordinary share to 100.0p.

A copy of the Unaudited Half-Yearly Financial Report will be submitted to the National Storage Mechanism in accordance with UK Listing Rules (“UKLR”)11.4.1 / UKLR 6.4.1 and UKLR 6.4.3.

END

For further information, please contact:

Company Secretary
Foresight Group LLP
Contact: Stephen Thayer Tel: 0203 667 8100

Investor Relations
Foresight Group LLP
Contact: Andrew James Tel: 0203 667 8181

The MIL Network –

January 27, 2025

MIL-OSI Security: Two Maryland Men Indicted For Unemployment Insurance Fraud Scheme Of More Than $1,000,000

Source: Office of United States Attorneys

Defendants Allegedly Committed Aggravated Identity Theft by Using Identities of Victims in Connection with a Scheme to Wrongfully Obtain More than $1,000,000 in Unemployment Insurance Benefits

Baltimore, Maryland – A federal grand jury has returned an indictment charging two Maryland men on federal charges related to a scheme to fraudulently obtain more than $1 million in unemployment insurance benefits. On February 1, 2024, a grand jury returned a sealed indictment of Daiwor Woah-Tee, age 51, of Belcamp, Maryland, and Dekwii Woah-Tee, age 46, of Rosedale, Maryland with conspiracy to commit wire fraud, and one count of aggravated identity theft, respectively, relating to a scheme to obtain more than $1,000,000 in unemployment insurance benefits. The indictment was unsealed upon the arrest of the defendants.

The defendants had an initial appearance on December 18, 2024, in the U.S. District Court in Baltimore before U.S. Magistrate Judge Charles Austin.

The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge Troy W. Springer of the Department of Labor Office of Inspector General, Office of Investigations for the National Capital Region (DOL-OIG), and Inspector General Dr. Joseph V. Cuffari, Department Homeland Security – Office of Inspector General (DHS-OIG).

As detailed in the indictment, unemployment insurance (“UI”) was a joint state and federal program that provided monetary benefits to eligible beneficiaries. UI payments were intended to provide temporary financial assistance to lawful workers who were unemployed through no fault of their own. Beginning in or around March 2020, in response to the COVID-19 pandemic, several federal programs expanded UI eligibility and increased UI benefits, including the Pandemic Unemployment Assistance Program (PUA), Federal Pandemic Unemployment Compensation (FPUC), and the Lost Wages Assistance Program (LWAP).

In Maryland, those seeking UI benefits submitted online applications. Applicants had to answer specific questions to establish eligibility to receive UI benefits, including their name, Social Security Number (SSN), and mailing address, among other things. Applicants also had to self-certify that they met a COVID-19-related reason for being unemployed, partially employed, or unable to work. Maryland Department of Labor (MD-DOL) relied upon the information in the application to determine UI benefits eligibility. Once an application was approved, the MD-DOL typically distributed state and federal UI benefits electronically to a debit card, which claimants could use to withdraw funds and/or make purchases.

As alleged in the indictment, from March 2020 to September 2021, the defendants conspired to commit wire fraud defrauding State Workforce Agencies (SWA), including the MD-DOL, by impersonating victim individuals for the purpose of submitting fraudulent claims for unemployment insurance. The defendants used victim personal identifying information (PII), including name, date of birth, and/or SSN submit applications for UI benefits. The UI benefits obtained through the scheme was more than $1,000,000.

If convicted, the defendants face a maximum sentence of 20 years in federal prison for wire fraud conspiracy and aggravated identity theft carries a mandatory minimum sentence of two years in prison that runs consecutive to any other sentence. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

U.S. Attorney Barron commended the DOL-OIG, DHS-OIG, and IRS-CI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney John D’Amico and Special Assistant U.S. Attorney Jared W. Murphy, who are prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

# # #

MIL Security OSI –

January 27, 2025

MIL-OSI Security: Attorney General Merrick B. Garland Delivers Remarks at the U.S. Attorney’s Office for the District of Oregon

Source: United States Attorneys General

Remarks as Delivered

Thanks, Nat.

I am very grateful to be here and have the opportunity to talk to all of our federal, state, and local law enforcement here.

All of you are the partners that make everything work. You represent people who take risks every single day to keep the people of Oregon safe. I can’t thank you enough, and I very much look forward to hearing your perspectives and ideas for me to take back.

I am also grateful to have the chance to recognize the extraordinary work of the U.S. Attorney’s Office for the District of Oregon.

For people of this state, this office is the face of the Justice Department. The attorneys and staff here understand that responsibility. And like all of our partners gathered around this table, you do outstanding work on behalf of those you serve.

Three and a half years ago, the Justice Department launched an ambitious strategy to fight the sharp spike in violent crime that took place during the pandemic.

We focused our efforts on the most powerful tools we have, which are reflected right here: our partnerships with federal, state, Tribal and local law enforcement.

We fortified those partnerships with substantial funding from our grantmaking components to help police departments hire more officers, to support our law enforcement task forces, and to invest resources in initiatives aimed at preventing and disrupting violence before it occurs.

And we brought to bear our unique prosecutorial authorities and new technologies that enable us to zero in on those individuals and gangs that are responsible for the most violence.

Today, we know that work is starting to pay off.

Data from the Major Cities Chiefs Association shows a nearly 8% drop in violent crime here in Portland between 2022 and 2023. And recent data shows an additional 4% decline in violent crime in Portland in the first nine months of this year compared to the same time period last year.

But, of course, there is no acceptable level of violent crime.

That’s why the Justice Department continues to work with our partners here to fight violent crime, disrupt illegal drug and firearms trafficking, and keep people safe.

In May, working with the FBI and the Portland Police Bureau, this U.S. Attorney’s Office secured a 14-year sentence for a leader of Portland’s 18th Street Gang. The gang leader conspired to traffic large quantities of fentanyl, methamphetamine, and cocaine into the Portland area for redistribution and sale.

In August, working with the Westside Interagency Narcotics Team and the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program, this office obtained a sentence of more than 10 years for a man who sold deadly Oxycodone pills to a 20-year-old woman who died from acute fentanyl poisoning.

In September, working with the FBI and the Medford Police Department, this office secured sentences of three men for distributing counterfeit, fentanyl-laced pills that resulted in the death of a teenage girl.

In October, working with DEA, FBI, Department of Homeland Security, IRS, and the Oregon State Police, and other state and local law enforcement, this office obtained a 57-month sentence for a chief money launderer for a drug trafficking organization operating in the Pacific Northwest and California.

The defendant laundered more than $4.6 million in drug proceeds and used laundered funds to purchase eight properties. Those properties were forfeited to the government and will ultimately be sold, with proceeds going to support crime victims and law enforcement.

That same month, in partnership with the FBI, the Klamath Falls Police Department, the Oregon State Police, and half a dozen other law enforcement partners, this office obtained the conviction of a man who brutally victimized two women. The man kidnapped and sexually assaulted both women and held one of them in a cell that he constructed for the purpose in his garage.

Thanks to the bravery and collaboration of our law enforcement partners, that man is being held accountable for his crimes.

Just a couple of weeks ago, this office secured a five-year sentence for a man who illegally possessed and manufactured more than 100 semi-automatic firearms and silencers.

During a search of his residence, investigators found methamphetamine, dozens of weapons, firearm manufacturing tools, and a 3D printer with a partially printed part for an AR15. When the defendant was arrested, he was carrying a semiautomatic pistol without an identifiable serial number.

That investigation and successful prosecution reflected the joint efforts of this office, ATF, and the Lane County Sheriff’s Office.

In addition to using our investigative and prosecutorial capabilities, we are also committed to using our grantmaking capabilities to invest in public safety.

So far this year, the Justice Department has awarded more than $64 million in grants to Oregon.

These funds will help law enforcement agencies in Oregon to hire more officers.

And they will help agencies and community partners prevent and combat violent crime and drug trafficking and improve services for survivors of domestic and dating violence, sexual assault, stalking, and other crimes.

The Department of Justice remains committed to providing our law enforcement and community partners with the resources they need to protect their communities.

The examples I have just shared are just a snapshot of the extraordinary work that this U.S. Attorney’s Office is doing every day to protect people in Oregon and to fulfill the Justice Department’s mission to ensure the rule of law, to keep our country safe, and to protect civil rights.

I am extremely proud of the public servants who make up this office and of the extraordinary leader beside me, Natalie Wight. And I am equally proud of the relationships they have developed with the people around this table.

Your jobs are not easy. They are dangerous, but they are essential. Thanks to you for the many sacrifices you make to keep of this state safe.

I’m looking forward now to beginning our meeting.

MIL Security OSI –

January 27, 2025

MIL-OSI Economics: IMF Executive Board Completes the Sixth Review of the Extended Arrangement under the Extended Fund Facility for Ukraine

Source: International Monetary Fund

December 20, 2024

The IMF Board today completed the Sixth Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about US$1.1 billion (SDR 834.9 million) to Ukraine, which will be channeled by the authorities for budget support.
Ukraine’s economy remains resilient, and performance remains strong under the EFF despite challenging conditions. The authorities met all end-September quantitative performance criteria and structural benchmarks.
Sustained reform momentum, progress at domestic revenue mobilization, and timely disbursement of external support are necessary to safeguard macroeconomic stability, restore fiscal and debt sustainability, and improve governance.

Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the Sixth Review of the EFF, enabling the authorities to draw US$1.1 billion (SDR 834.9 million), which will be channeled by the authorities for budget support. This will bring the total disbursements under the IMF-supported program to US$9.8 billion.

Ukraine’s 48-month EFF, with access of SDR 11.6 billion (equivalent to US$15.5 billion, or about 577 percent of quota), was approved on March 31, 2023, and forms part of a US$148 billion support package for Ukraine. The authorities’ IMF-supported program helps anchor policies that sustain fiscal, external, and macro-financial stability at a time of exceptionally high uncertainty. The EFF aims to support the economic recovery, enhance governance, and strengthen institutions with the aim of promoting long-term growth in the context of reconstruction and Ukraine’s path to EU accession.

Ukraine’s performance under its program remains strong. All end-September and continuous quantitative performance criteria and indicative targets were met. The authorities have also completed a prior action on the enactment of the package of tax measures, have met all end-October structural benchmarks due by the Sixth Review and three of the end-December benchmarks.

Economic growth in 2024 has been upgraded given better than expected resilience to the energy shocks. However, a slowdown is expected in 2025 due to an increasingly tight labor market, the impact of Russian attacks on Ukrainian energy infrastructure, and continued uncertainty about the war. Inflation has risen recently, mainly due to food prices, while inflation expectations remain well anchored. Adequate reserves have been sustained by continued sizeable external support. Overall, the outlook remains subject to exceptionally high uncertainty.

Following the Executive Board discussion on Ukraine, Ms. Kristalina Georgieva, Managing Director of the IMF, issued the following statement^[1]:

“Russia’s war in Ukraine continues to take a devastating social and economic toll on Ukraine. Despite the war, macroeconomic stability is being preserved through skillful policymaking by the Ukrainian authorities as well as substantial external support. The economy has remained resilient, reflecting the continued adaptability of households and firms, although risks are tilted to the downside due to headwinds from attacks on energy infrastructure and a tight labor market. Preparedness and contingency planning are key to enable appropriate policy action should risks materialize.

The program remains fully financed with a cumulative external financing envelope of US$148 billion in the baseline and US$177 billion in the downside over the 4-year program period, including commitments from the G7’s Extraordinary Revenue Acceleration Loans for Ukraine (ERA) initiative. Full, timely and predictable external support—on terms consistent with debt sustainability—remains essential to maintaining full program financing and safeguarding stability.

A tax package and 2025 Budget in line with the program baseline have been enacted, but there are few remaining buffers and strict budget execution will be key. Continued progress at domestic revenue mobilization is imperative for Ukraine to meet its high priority spending needs and to restore fiscal sustainability. Strong implementation of the National Revenue Strategy and customs reform will help raise further revenues, improve compliance, combat evasion, and support EU accession.

After completing the Eurobond exchange in August, the authorities are now focusing on reaching agreement with other holders of external commercial claims, including GDP warrants, in line with their strategy. A swift agreement in line with the program’s debt sustainability objectives would reduce fiscal risks and create space for critical spending needs.

Inflation has accelerated more than expected in recent months, and the recent tightening of monetary policy was appropriate; the NBU should stand ready to take further action should inflation expectations deteriorate. Allowing exchange rate flexibility will help strengthen the resilience of the economy to external shocks while safeguarding reserves.

The financial sector remains stable, but vigilance is needed given heightened risks. Progress on strengthening bank resolution and risk-based supervision, stress-testing frameworks and contingency planning should be sustained.

Reform momentum in anticorruption and governance needs to be sustained. In particular, the authorities need to advance the creation of a new court for high public disputes, and amend the criminal procedure code.”

Table 1. Ukraine: Selected Economic and Social Indicators, 2021–27
	2021	2022	2023	2024	2025	2026	2027

	Act.	Act.	Act.	Proj.	Proj.	Proj.	Proj.

Real economy (percent change, unless otherwise indicated)
Nominal GDP (billions of Ukrainian hryvnias) 1/	5,451	5,239	6,538	7,629	8,680	9,874	10,937
Real GDP 1/	3.4	-28.8	5.3	4.0	2.5-3.5	5.3	4.5
Contributions:
Domestic demand	12.9	-22.9	13.9	6.5	4.9	4.5	4.2
Private consumption	4.7	-16.8	5.5	3.3	3.2	3.8	3.5
Public consumption	0.1	12.5	2.6	-0.1	-1.1	-2.5	-1.9
Investment	8.1	-18.6	5.8	3.3	2.9	3.2	2.6
Net exports	-9.5	-5.9	-8.6	-2.5	-2.4	0.8	0.3
GDP deflator	24.8	34.9	18.5	12.2	11.0	8.0	6.0
Unemployment rate (ILO definition; period average, percent)	9.8	24.5	19.1	13.3	11.8	10.2	9.4
Consumer prices (period average)	9.4	20.2	12.9	6.2	10.3	7.7	5.0
Consumer prices (end of period)	10.0	26.6	5.1	10.0	7.5	6.6	5.0
Nominal wages (average)	20.8	1.0	20.1	19.1	18.9	14.1	10.5
Real wages (average)	10.5	-16.0	6.4	12.1	7.8	6.0	5.3
Savings (percent of GDP)	12.5	17.0	9.8	8.5	2.9	9.1	15.2
Private	12.7	30.2	24.6	24.1	17.9	14.7	13.6
Public	-0.2	-13.1	-14.8	-15.6	-14.9	-5.6	1.5
Investment (percent of GDP)	14.5	12.1	15.1	16.9	17.5	19.3	20.4
Private	10.7	9.6	10.4	13.6	13.6	15.0	15.3
Public	3.8	2.5	4.8	3.4	4.0	4.3	5.1

General Government (percent of GDP)
Fiscal balance 2/	-4.0	-15.6	-19.6	-18.9	-18.9	-9.9	-3.6
Fiscal balance, excl. grants 2/	-4.0	-24.8	-26.1	-24.3	-19.7	-10.1	-4.6
External financing (net)	2.4	10.7	16.5	14.8	18.0	8.9	1.4
Domestic financing (net), of which:	1.6	5.0	3.1	4.1	0.9	1.0	2.2
NBU	-0.3	7.3	-0.2	-0.2	-0.2	-0.1	-0.1
Commercial banks	1.5	-1.5	2.5	4.1	1.0	0.9	2.2
Public and publicly-guaranteed debt	48.9	77.7	82.3	92.2	104.3	105.8	101.8

Money and credit (end of period, percent change)
Base money	11.2	19.6	23.3	15.0	17.2	12.0	10.1
Broad money	12.0	20.8	23.0	16.7	14.4	12.1	10.1
Credit to nongovernment	8.4	-3.1	-0.5	11.6	12.9	21.0	17.6

Balance of payments (percent of GDP)
Current account balance	-1.9	4.9	-5.4	-8.4	-14.6	-10.1	-5.3
Foreign direct investment	3.8	0.1	2.5	2.5	2.4	4.1	5.2
Gross reserves (end of period, billions of U.S. dollars)	30.9	28.5	40.5	42.3	43.3	47.9	50.1
Months of next year’s imports of goods and services	4.5	3.8	5.3	5.3	5.4	5.8	5.9
Percent of short-term debt (remaining maturity)	67.5	64.3	87.1	102.7	99.8	112.3	116.0
Percent of the IMF composite metric (float)	104.4	103.6	124.1	112.0	100.5	100.2	102.0
Goods exports (annual volume change in percent)	35.3	-44.7	-15.8	15.5	1.6	16.7	10.6
Goods imports (annual volume change in percent)	16.9	-23.6	21.7	9.3	6.9	8.9	9.4
Goods terms of trade (percent change)	-8.4	-11.6	3.6	0.3	-1.9	1.2	1.4

Exchange rate
Hryvnia per U.S. dollar (end of period)	27.3	36.6	38.0	…	…	…	…
Hryvnia per U.S. dollar (period average)	27.3	32.3	36.6	…	…	…	…
Real effective rate (deflator-based, percent change)	8.8	30.5	-2.0	…	…	…	…

Memorandum items:
Per capita GDP / Population (2017): US$2,640 / 44.8 million
Literacy / Poverty rate (2022 est 3/): 100 percent / 25 percent

Sources: Ukrainian authorities; World Bank, World Development Indicators; and IMF staff estimates.
1/ GDP is compiled as per SNA 2008 and excludes territories that are or were in direct combat zones and temporarily occupied by Russia (consistent with the TMU).
2/ The general government includes the central and local governments and the social funds.
3/ Based on World Bank estimates.

[1] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summing up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Camila Perez

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson

MIL OSI Economics –

January 27, 2025

MIL-OSI Russia: IMF Executive Board Completes the Sixth Review of the Extended Arrangement under the Extended Fund Facility for Ukraine

Source: IMF – News in Russian

December 20, 2024

The IMF Board today completed the Sixth Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about US$1.1 billion (SDR 834.9 million) to Ukraine, which will be channeled by the authorities for budget support.
Ukraine’s economy remains resilient, and performance remains strong under the EFF despite challenging conditions. The authorities met all end-September quantitative performance criteria and structural benchmarks.
Sustained reform momentum, progress at domestic revenue mobilization, and timely disbursement of external support are necessary to safeguard macroeconomic stability, restore fiscal and debt sustainability, and improve governance.