Plaza Centres plc - Full-Year Results

Wednesday, March 18th, 2015

On 18 March, Plaza Centres plc published its preliminary financial statements for the year ended 31 December 2014.

Performance Overview

During the year under review, turnover grew by 10.4% to €2.39 million reflecting the increase in average occupancy levels to 93% compared to 81% in 2013. Nonetheless, it is noteworthy to highlight that by the end of the fourth quarter of 2014 occupancy had reached the 96% level. Operating expenses also increased by 17.7% to €0.42 million although the majority of this increase is due to a bad debt provision of €40,793.

As a result, the Company’s earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €1.97 million, an increase of 9% from the €1.8 million in the previous financial year. The depreciation charge dropped by 11% to €0.33 million due to certain assets becoming fully depreciated during the course of the year under review. This led to a 14.1% increase in operating profits to €1.64 million.

The Company’s financial performance also benefitted from a 26.6% decline in net finance costs to €0.14 million mainly reflecting the better interest rates contracted by the Company after it switched its banking facilities.

Overall, Plaza’s pre-tax profit grew by 19.2% to just over €1.5 million. After accounting for a tax charge of €0.56 million (2013: €0.47 million), the Company’s net profit amounted to €0.95 million representing a 19.5% increase over the previous year’s comparable period.

The Statement of Financial Position shows a 14.9% increase in total assets to €32.4 million largely reflecting the latest property valuation by an independent qualified architect which resulted in a higher value for the Company’s property. Total liabilities also increased by 12.8% to €8.56 million. Nonetheless, the higher growth in assets still led to a 15.7% increase in shareholders’ funds to €23.79 million which translates into a net asset value of per share of €0.842 (2013: €0.728). The post-tax return on equity (ROE) improved by 41 basis points to 4.27% and the pre-tax return on assets (ROA) improved by 50 basis points to 4.97%.

Dividend 

The Directors recommended a final net dividend of €0.0268 representing a 12.6% increase over the previous year’s net dividend of €0.0238 per share. Shareholders as at the close of trading on Thursday 23 April will be eligible to receive this dividend on Tuesday 2 June subject to shareholders’ approval at the upcoming Annual General Meeting (AGM) scheduled to be held on 27 May 2015.

Outlook

Looking ahead, the Directors noted that the Company will continue to explore the feasibility and attractiveness of a number of growth options and will inform shareholders accordingly once an attractive investment is identified.

Occupancy during 2015 is expected to remain at the same average levels achieved in 2014 notwithstanding that four outlet leases will be terminated during the year. In this respect, the Directors noted that the Company is already in negotiations with prospective tenants and anticipates that it will conclude new leases in the third and fourth quarter of 2015.

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Plaza Centres plc – Preliminary results for the financial year ended 31 December 2014.

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