Malta Properties Company plc - Interim Results
On 25 August, Malta Properties Company plc published its interim results covering the six months ended 30 June 2016.
Performance Overview
During the period under review, the Company registered €1.66 million in revenues representing a 3.4% increase over the turnover generated in the previous comparable six months. The Directors noted that in the short to medium term, revenues are expected to remain stable and only increase gradually in line with inflation given the conditions of the long-term agreements with its tenants which also shield the Company from any potential unforeseen economic uncertainties.
Meanwhile, administrative expenses increased considerably to €0.29 million given that the Company now operates independently (following the spin-off from GO plc in the latter part of 2015) and in view of its listing on the Malta Stock Exchange last year.
Overall, the Company registered an operating profit of €1.37 million compared to €1.59 million in the first six months of 2015.
Net interest payable declined by 52.4% to €0.44 million as the Group’s debt levels were significantly reduced as part of the restructuring prior to the spin-off from GO plc.
As a result, profit before tax grew by 40.9% to €0.93 million. The tax expense for the period under review amounted to €0.38 million compared to a tax credit of just over €1 million during the first six months of 2015 following changes in the tax regime for capital gains arising on the transfer of immovable property. This led to a net profit for the period under review of €0.55 million compared to €1.7 million during the first six months of 2015 which translates into an earnings per share of €0.0054 (H1 2015: €0.0168).
The Statement of Financial Position as at 30 June 2016 compared to the figures as at 31 December 2015 shows that total assets during the first six months of this year grew by 0.9% to €56.28 million largely reflecting the €0.6 million additions to investment property. Meanwhile, total liabilities remained relatively unchanged at €22.15 million. Overall, shareholders’ funds increased by 1.6% to €34.14 million which translates into a net asset value per share of €0.337 (Jun 2015: €0.332).
Dividend
The Directors did not declare an interim dividend as they resolved to determine the extent of any dividend distribution for 2016 on the basis of the full-year results. However, it is noteworthy to highlight that in the 2015 Prospectus, the Directors had clearly stated that no dividend payments will be made in the first two years following listing.
Outlook
The Directors did not make any forward looking statements.