Tigné Mall plc - Interim Results

On 29 August, Tigné Mall plc published its half-year results covering the six months ended 30 June 2013. These are the first set of financial statements since the company’s listing on the Malta Stock Exchange.

Change in Shareholding Structure

At the end of April 2013, the MIDI Group sold its entire stake in Tigné Mall plc  and, in parallel, the Company issued 14,000,000 new ordinary shares. This combined offer was fully subscribed and the shares of Tigné Mall plc were subsequently listed on the Official List of the Malta Stock Exchange. Currently, Tigné Mall plc has a total issued share capital of 56,400,000 shares with a nominal value of €0.50 each.

Performance Overview

During the first six months of 2013, revenue grew by 7.6% to €2.3 million as the shopping mall continued to be fully leased out coupled with an encouraging increase in footfall and tenant sales. Tigné Mall also benefitted from a 2.4% decrease in cost of sales to €0.7 million leading to a gross profit of €1.58 million representing a 13% increase over the previous comparable period.

After accounting for €0.17 million in administrative expenses and depreciation, operating profit amounted to €1.4 million representing an 11.2% increase over the previous comparable period.

The net proceeds from the issue of shares were used to repay some of the Company’s borrowings. This led to a  12% reduction in net finance costs to €0.74 million.

As a result, pre-tax profits amounted to €0.68 million compared to €0.44 million registered during the first six months of 2012. After accounting for a tax expense of €0.34 million (effective marginal tax rate of 49.9%), the Company’s net profit for the period under review amounted to €0.34 million compared to €0.17 million in the first six months of 2012. This translates into an earnings per share of €0.007 (June 2012: €0.004).

The Balance Sheet shows total assets of  €60.4 million representing a 4.2% drop since the balance as at 31 December 2012 largely reflecting the reduction in trade and other receivables to €1.9 million as MIDI settled its receivables at the time of the combined offering. Similarly, total liabilities dropped by 22.5% during the first six months of 2013 to €32.4 million after the company repaid €9.4 million of its borrowings. Meanwhile, total equity increased by 31.7% to €27.97 million following the issue of new shares giving a net asset value per share of €0.496.

Dividend

Given the change in shareholding early this year, the Directors did not recommend the payment of an interim dividend in respect of the first six months of 2013. Nonetheless, the Directors explained that the Company is well on track to pay the final dividend anticipated in the Prospectus dated 20 March 2013.

It is also noteworthy to highlight that on 21 June 2013, the Board of Directors declared a final payment of €174,946 to the MIDI Group in respect of the profits generated during the four months ended 30 April during which the MIDI Group was the shareholder of the Company.

Outlook

Looking ahead, the Directors anticipate that the level of activity will continue to increase during the second half of the year.

Furthermore, the Directors also noted that the Company is expected to generate a sustainable level of operating cash surplus in accordance with its projections to manage the repayment of its liabilities on an on-going basis and correct the current position whereby current liabilities exceed current assets by €0.99 million.

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Tigné Mall plc – Interim Financial Statement for the six months ended 30 June 2013.