Trident Estates plc - Full-Year Results
On 23 May, Trident Estates plc published its preliminary statement of annual results covering the financial year ended 31 January 2018. It is important to highlight that the corresponding figures for the financial year ended 31 January 2017 are not directly comparable given that the Company underwent a restructuring process during the financial year ended 31 January 2018 prior to the spin-off from Simonds Farsons Cisk plc in January 2018. Subsequently, the shares of Trident Estates plc were admitted to the Official List of the Malta Stock Exchange and trading in these shares commenced as from 31 January 2018.
Performance Overview
During the financial year under review, Trident Estates plc reported a 9.5% increase in revenue to almost €0.8 million largely reflecting the renegotiation of the lease agreements with Food Chain effective from the start of the financial year under review. On the other hand, operating expenses increased considerably to €0.54 million compared to €0.16 million in the previous financial year. This is mainly related to payroll costs and largely reflect the new organisation structure set up to accommodate the needs of an independently listed entity.
As a result, Trident Estates plc reported a 55.1% drop in operating profit to €0.26 million.
The annual results for the financial year under review also include a €0.17 million fair value uplift in the Group’s investment property portfolio which is significantly lower than the €4.7 million uplift recorded in the previous financial year ended 31 January 2017.
Trident’s performance also benefited from an €11,000 net income on acquisition of investment as well as a €20,000 share of results of associate (FY2017: share of loss amounting to €23,000). On the other hand, the results were impacted by net finance costs of €15,000 although this figure is still below the €72,000 incurred in the previous financial year.
Overall, Trident registered a pre-tax profit of €0.44 million which is significantly below the €5.08 million pre-tax profit registered in the previous financial year. After accounting for a tax credit of €0.08 million (FY2017: tax charge of €0.72 million), the net profit for the financial year under review amounted to €0.51 million compared to €4.36 million in the previous financial year. This translates into an earnings per share of €0.0171 (FY2017: €0.1452).
The condensed Statement of Financial Position as at 31 January 2018 shows total assets of €39.7 million and total liabilities of €2.68 million. Overall, shareholders’ funds amounted to €37.1 million which translates into a net asset value per share of €1.2351.
Dividend
The Directors did not recommend the payment of a dividend.
Outlook
Going forward, the Directors noted that revenues are expected to increase following the acquisition of the control over the remaining 50% of the share capital of Sliema Fort Company Limited.
The Directors also explained that the Group will be focused on the development of the Trident Park project. In this respect, the Directors noted that soft stripping of the premises was completed in April 2018. Subsequently, demolition and excavation works commenced. In the meantime, the Group has already awarded the civil works contract and will shortly be awarding the contract for the procurement of the required plant as well as mechanical and electrical services. The €45 million development project is scheduled to be completed within three years.
The announcement also reiterated the commitment undertaken by the three principal shareholders to take-up their proportional share of a two-stage right issue of €15 million planned for 2019/2020 which is earmarked to part-finance the Trident Park development along with bank financing that has already been secured.