Plaza Centres plc - Interim Results

Tuesday, July 21st, 2015

On 21 July, Plaza Centres plc published its interim results covering the six months ended 30 June 2015.

Performance Overview

During the first six months of 2015, Plaza’s revenues increased by 6.7% to €1.23 million, largely reflecting the improved rental rates achieved from the recent new lease agreements. Plaza reported that it signed new agreements with Subway, Havaianas and Scholl Foothealth Centre and these outlets opened during the period under review. During the first half of 2015, occupancy remain unchanged at the 93% level as these new tenants replaced others tenants which recent vacated the premises.

Operating costs (comprising marketing, maintenance and administrative costs) increased by only 2.5% to €0.21 million resulting in earnings before interest, tax, depreciation and amortisation (EBITDA) of €1.02 million (+7.6%) – the first time the Company’s EBITDA exceeded the €1 million mark during the first half of the year. The EBITDA margin also improved to 82.9% compared to 82.2% in the first half of 2014. After deducting a depreciation charge of €0.18 million for the first half of 2015 (H1 2014: €0.16 million), Plaza registered an improved operating profit of €0.84 million, up 6.9% from the previous comparable figure.

Meanwhile, net finance costs decreased by 11.2% to €0.06 million.

Overall, Plaza reported an 8.7% increase in profit before tax to €0.78 million during the period under review. After accounting for a tax charge of €0.29 million, Plaza’s profit after tax stood at €0.49 million, which is also 9.1% higher when compared to the €0.45 million registered in the first half of 2014.

The condensed statement of financial position as at 30 June 2015 reveals that total assets declined marginally to €32.3 million, largely reflecting the depreciation charge for the period under review as well as the 2014 dividend disbursement. On the other hand, liabilities dropped by 4.7% to €8.2 million mainly due to the one-off reduction in the deferred tax liability of €0.6 million in line with the new taxation rules on capital gains arising on the transfer of immovable property. Overall, the Company’s shareholders’ funds increased by 1.4% to €24.1 million which translates into a net asset value per share of €0.8542.

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 average occupancy levels are expected to remain unchanged at 93% during the third and fourth quarters of this year. Further to the new lease agreements mentioned above, Just Burger Food Co commenced operations in July 2015 and F&F International fashion retailer is scheduled to open in September 2015. The new openings will provide a wider choice for the centre’s visitors which have increased during the first part of 2015 and is expected to further improve in the months ahead.

Overall, 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 – Half-Year Report for the period ended 30 June 2015

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