PG plc - Full-Year Results

Friday, August 11th, 2017

On 11 August, PG plc published is annual report for the financial year ended 30 April 2017 including the comparable figures for the financial year ended 30 April 2016.

Recent Developments

It is important to highlight that the Group undertook significant investments in recent years. In fact on 31 August 2015, the Group increased its shareholding in PAVI Supermarket from 50% to 100%. Therefore, for the four-month period between 1 May 2015 and August 2015, PG accounted for 50% of the results of this operation under ‘Share of Results of Associates’ whereas subsequently, PG consolidated the results of PAVI Supermarket.

Furthermore, in late October 2015, PAMA Shopping Village opened for business. As such, the 2015/16 figures include a six-month contribution from this operation whereas the 2016/17 figures reflect a full 12-month contribution.

Another recent development was the opening of the retail mall within PAMA Shopping Village in November 2016. As such, the financial statements only comprise a six-month contribution during the financial year under review whereas no contribution was made in the 2015/16 financial year.

Following these investments, PG plc listed its shares on the Malta Stock Exchange with effect from 3 May 2017 following a public share offering undertaken earlier this year.

Performance Overview

During the financial year under review, the PG Group reported an 80.5% increase in revenue from its supermarkets and associated retail operations to just over €77 million largely reflecting a full-year contribution from the whole operation at PAVI, a full-year contribution from the PAMA Shopping Village as well as the initial six-month contribution from the retail mall at PAMA. The Group also reported a 16.1% increase in revenue from its franchise operation to €14.7 million. Overall, the Group’s revenue improved by 65.8% to €91.7 million – in line with the Group’s forecast of €91.2 million at the time of the initial public share offering.

Given the expanded business activity, the Group’s cost of sales increased by 64.4% to €77.4 million. Similarly, in view of the growth in business activity and the Group’s status as a public company, administrative expenses during the financial year under review increased by 67.1% to €2.4 million and sales & marketing expenses rose by 60.6% to €1.2 million. In aggregate, these costs were marginally higher those projected at the time of the public share offering.

Other income amounted to €0.76 million compared to €0.46 million in the previous financial year.

Overall, the Group’s operating profit amounted to €11.4 million, a rise of 76% from the €6.5 million figure registered in the financial year ended 30 April 2016. Excluding the depreciation and amortisation charge of €1.4 million (FY2016: €1 million) from the above-mentioned figures, the Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €12.8 million representing a 71.4% increase over the corresponding figure for the financial year ended 30 April 2016 and only marginally below the forecasted figure of €13 million.

Net finance costs were relatively unchanged at around the €0.56 million level.

As a result, the Group’s pre-tax profit grew by 60.3% to €10.8 million largely reflecting the new business ventures undertaken by the Group. After accounting for a tax charge of €3.4 million (compared to €2.1 million in the previous financial year), the Group’s net profit amounted to €7.4 million representing a 59.5% increase from the €4.6 million recorded in the previous financial year. Based on the 108 million shares outstanding, this translates into an earnings per share of €0.0681 compared to €0.0427 for the previous financial year.

The Statement of Financial Position as at 30 April 2017 shows a 3.5% increase in total assets to €70.5 million largely due to increase in inventories as well as trade receivables. Meanwhile, total liabilities contracted by 7.7% to €42.68 million largely reflecting the reduction of almost €4 million in the Group’s borrowings. Overall, the Group’s equity base increased by 27.2% to €27.8 million largely reflecting the profit registered during the financial year under review. Based on the 108 million shares in issue, this translates into a net asset value per share of €0.2576 compared to €0.2026 as at the end of the previous financial year.

Dividend

The Directors reiterated that in the absence of unforeseen adverse circumstances, the first dividend payable by the Company will be for the current financial year ending 30 April 2018, in line with the dividend policy declared in the Company’s Prospectus dated 27 March 2017.

Download

PG plc – Annual Report and Financial Statements for the financial year ended 30 April 2017.

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