The Group’s revenue is substantially derived from the provision of dry bulk shipping services internationally and, accordingly, information is not presented by business segment.
Geographical segment information is not presented as the management considers that the nature of our shipping services, which are carried out internationally, precludes a meaningful allocation of operating profit to specific geographical segments.
Management internally reviews and reports on the performance of the Group’s material operations as a single segment. This is also the basis on which management reports to the Board.
Revenue comprises the fair value of the consideration for the services rendered in the ordinary course of the Group’s activities. Revenue is shown net of returns, rebates and discounts and after eliminating sales within the Group.
Freight and charter-hire
The Group generates revenue from shipping activities, the principal sources of which are derived from Handysize and Supramax vessels.
Revenues from Handysize and Supramax vessels are derived from a combination of time charters and voyage charters. Revenue from a time charter is recognised on a straight-line basis over the period of the charter. Revenue from a voyage charter is recognised over time, which is determined on a time proportion method of the voyage.
The Group’s recognition basis of freight income from voyage charters has changed from “discharge to discharge” to “loading to discharge”. Please refer to Note 2(a)(ii) for the changes in accounting policy.
Maritime management services income is recognised when the services are rendered.
Interest income is recognised on a time-proportion basis using the effective interest method.
Dividend income is recognised when the right to receive payment is established.