Tigné Mall plc - Full-Year Results

On 7 April, Tigné Mall plc published its financial statements for the year ended 31 December 2013 – the first set of annual results since the listing its shares on the Official List of the Malta Stock Exchange in May 2013.

Performance Overview

During 2013, the Company generated just over €5 million in revenue representing a 10.5% increase over the previous year’s comparable figure reflecting the better-than-expected increases in footfall and tenant sales. Meanwhile, cost of sales dropped by 2.3% to €1.46 million (largely comprising the annual depreciation charge on the Company’s property, plant and equipment) leading to a 16.8% increase in gross profit to €3.58 million.

On the other hand, administrative expenses grew by 33.9% to €0.37 million. Nonetheless, operating profit for 2013 amounted to €3.2 million which still represents a 15.1% increase compared to the previous year’s figure.

Net interest payable also dropped by 21.7% to €1.3 million after the Company repaid almost €8 million in bank loans and settled a further €3 million in related-party loans following the new equity injection from the IPO.

Overall, the Company registered a pre-tax profit of €1.9 million representing a 71.6% increase over the previous year’s figure and 12% higher than the projections that had been presented in the IPO Prospectus dated 20 March 2013.

After accounting for a tax expense of €0.87 million (2012: €0.62 million), representing a marginal tax rate of 46.1%, the Company’s net profit amounted to just over €1 million compared to last year’s figure of €0.48 million. The profit after tax is 16% higher than that projected at the time of 2013 IPO. This translates into an earnings per share of €0.0196 (2012: €0.0112).

The Statement of Financial Position shows a 5.4% drop in total assets to €59.66 million largely due to the 2.2% reduction (mainly representing the annual depreciation charge) in the value of property, plant and equipment to €56.75 million as well as the 52.5% drop in trade receivables to €2.34 million. Total liabilities were also reduced by 25.9% to €31 million mainly reflecting the 30% drop in total debt to €25.56 million. It is also noteworthy to highlight that, as at 31 December 2013, current liabilities exceeded current assets by €0.18 million (2012: €1 million). Nonetheless, the Directors explained that this shortfall is being managed through an active liquidity management programme and the Company has been able to anticipate its bank repayment commitments.

Meanwhile, total equity increased by 34.9% to €28.6 million following the fresh capital raised in the March 2013 IPO as well as the profit registered during the period under review. This translates into a net asset value per share of €0.508 (2012: €0.501).  The combined effects of lower debt levels and higher equity capital, led to a drop in the Company’s gearing ratio to 47.2% (2012: 63.2%).

The Company’s post-tax return on equity [net profit divided by average shareholders’ funds] is 4.1% (2012: 2.3%) and the return on assets [net profit divided by average total assets] is 3.1% (2012: 1.7%).

Dividend

The Directors recommended a final net dividend of €0.0125 per share to all shareholders as at the close of trading on Thursday 15 May. The recommended dividend is 10.6% higher than that projected at the time of the 2013 IPO. The dividend will be paid on 23 June subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on Thursday 19 June.

Outlook 

The Directors noted that the Company is at least expected to continue registering the same level of activity in 2014.

Download

Tigné Mall plc – Annual Report and Financial Statements for the year ended 31 December 2013.