Plaza Centres plc - Interim Results

On 23 July, Plaza Centres plc published its interim results covering the six months ended 30 June 2014 which indicate healthier profit levels for the first half of 2014 compared to the same period in 2013.

Performance Overview

During the first six months of 2014, Plaza’s revenues increased by 10.7% to €1.15 million, as a result of increased occupancy registered during this period. Occupancy levels by the end of 2013 were at 83%, and these increased to 93% by June 2014. Operating costs (comprising marketing, maintenance and administrative costs) increased by 22.8% to €0.2 million resulting in earnings before interest, tax, depreciation and amortisation (EBITDA) of €0.95 million (+8.4%). EBITDA margins declined marginally to 82.2%. After deducting a depreciation charge of €0.16 million for the first half of 2014, Plaza registered an improved operating profit of €0.79 million (H1 13: €0.70 million).

Profit before tax increased by 18% to €0.71 million during the period under review, as finance charges declined to €0.07 million from €0.09 expensed for the comparative period in 2013. Plaza’s profit after tax stood at €0.45 million, which is also 18% higher when compared to the €0.38 million registered in the first half of 2013.

The condensed statement of financial position as at 30 June 2014 reveals that total assets declined marginally to €28.07 million, which is 0.4% lower than the value of total assets as at end December 2013. This was largely because of the €0.7 million dividend payment that was paid out in respect of the 2013 financial year, which offset the profit registered during the first half of 2014.

Dividend

Similar to previous years and in line with the Company’s dividend policy of only paying a final dividend, the Directors did not recommend the payment of an interim dividend.

Outlook

The announcement explained that further to the Interim Directors’ Statement issued in May 2014, MEPA permits have been received for the refurbishment of the façades in Bisazza Street and Tower Road. The Directors confirmed that works are expected to commence in August 2014 and will be completed by the end of this financial year.

Nonetheless, the Directors do not anticipate a significant change in the Company’s performance in the next six months although they remain attentive to external market factors.

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Plaza Centres plc 2014 Interim Results