Plaza Centres plc - Full-Year Results

On 16 March, Plaza Centres plc published its preliminary financial statements for the year ended 31 December 2015.

Performance Overview

During the year under review, turnover grew by 3.0% to €2.44 million (2014: €2.39 million) reflecting the increase in average occupancy levels to 96% compared to 93% in 2014. Besides, it is noteworthy to highlight that by the end of the fourth quarter of 2015, occupancy had reached the 99% level. On the other hand, operating expenses decreased by 15.6% to €0.36 million (2014: €0.42 million). The corresponding figure for 2014 included a bad debt provision of €40,793.

As a result, the Company’s earnings before interest, tax, depreciation and amortisation (EBITDA) improved to €2.09 million, an increase of 5.8% from the €1.97 million in the previous financial year. The depreciation charge advanced by 10.5% to €0.36 million (2014: €0.33 million) following a full year depreciation on the 2014 refurbishment costs. Nonetheless, operating profits still improved by 4.8% to €1.72 million as against €1.64 million in 2014.

The Company’s financial performance also benefitted from a 6.6% decline in net finance costs to €0.13 million (2014: €0.14 million).

Overall, Plaza’s pre-tax profit grew by 5.9% to just over €1.59 million (2014: 1.50 million). After accounting for a tax charge of €0.58 million (2014: €0.56 million), the Company’s net profit figure exceeded the €1.0 million mark for the first time on record as it improved by 6.7% to €1.01 million (2014: €0.95 million).

The Statement of Financial Position shows a marginal decline in total assets to €32.3 million (2014: €32.4 million) whilst total liabilities declined by 11.2% to €7.60 million from €8.56 million in the previous year. Accordingly, shareholders’ funds climbed to €24.7 million (2014: €23.8 million), translating into a net asset value of per share of €0.873 (2014: €0.842).

The post-tax return on equity (ROE) declined by 10 basis points to 4.17% (2014: 4.27%). Likewise, the pre-tax return on assets (ROA) retreated marginally to 4.93% (2014: 4.97%).

Dividend

The Directors recommended a final net dividend of €0.0286 per share, representing a 6.7% increase over the previous year’s net dividend of €0.0268 per share. Shareholders as at the close of trading on Wednesday 27 April will be eligible to receive this dividend on Friday 3 June subject to shareholders’ approval at the upcoming Annual General Meeting (AGM) scheduled to be held on 30 May 2016.

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. Furthermore, occupancy during 2016 is expected to remain at the same average levels achieved in 2015. The Company will also continue to seek attractive new brands to add to the existing brands portfolio available at the Shopping Centre.

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Plaza Centres plc – Preliminary results for the financial year ended 31 December 2015.