Malta Properties Company plc - Full-Year Results
On 21 March 2016, Malta Properties Company plc published its preliminary results for the financial year ended 31 December 2015.
Performance Overview
During the year under review, the Group registered a 6.8% increase in revenue to €3.17 million reflecting the rental income received from its tenants. The 2015 accounts also reveal €0.25 million in other income.
On the other hand, administrative expenses increased substantially to €0.5 million reflecting the additional operational costs incurred by the Group since it started operating independently of the GO group and as a separately listed entity on the Malta Stock Exchange during the course of the year under review.
Net finance costs amounted to €1.55 million (2014: €1.86 million) whilst the Group’s results were also boosted by a €0.09 million uplift in the fair value of its properties as opposed to a €0.22 million reduction incurred in 2014.
Overall, the Group registered a profit before tax of €1.4 million representing a 59.9% increase over the previous year’s figure. After accounting for a tax credit of €0.44 million [2014: €(0.18) million], the Group’s 2015 net profit amounted to €1.86 million compared to €0.7 million in 2014. Based on the actual number of shares in issue, the profit figure translates into an earnings per share of €0.0184 compared to €0.0069 the previous year.
The Statement of Financial Position shows a 1.1% increase in total assets to €55.8 million largely reflecting the 6.7% increase in investment property to just over €54 million (which in turn is mainly the result of a property the Group acquired during the year) to offset the reduction in current assets from €4.6 million to €1.7 million as the amounts owed to GO plc were largely settled during the year. On the other hand, total liabilities contracted by 60% to €22.2 million largely reflecting the capitalisation of €32.4 million in amounts owed to GO plc as part of MPC’s process to become a public listed entity. As a result, shareholders’ funds expanded to €33.6 million which translates into a net asset value per share of €0.332.
Dividend
The Directors did not recommend the payment of a dividend.
The Annual General Meeting is scheduled to be held on Thursday 2 June.
Outlook
Looking ahead, the Directors explained that in the short to medium term, the revenue figure is expected to remain stable and only increase gradually in line with inflationary adjustments as per the conditions of the long-term lease agreements it has in place. Meanwhile, over the coming few years, costs are expected to increase as the first in a series of planned redevelopment projects are undertaken. Nonetheless, these projects are expected to create significant value. In this respect, the Directors also noted that in 2016, construction works should begin on several fronts as the Group focuses on three main projects which should transform the Group’s potential rental income from 2019 onwards.