Malta Properties Company plc - Interim Results
On 1 August 2018, Malta Properties Company plc (“MPC”) published its interim results covering the six-month period ended 30 June 2018.
Performance Overview
During the first half of 2018, Malta Properties Company plc registered a 6.6% increase in revenues to €1.65 million (H1 2017: €1.54 million) reflecting the completion of new developments as well as inflationary adjustments to existing lease agreements. Likewise, administrative expenses grew by nearly 12% to €0.53 million reflecting the overall increase in business as well as works on projects currently being undertaken. As a result, MPC reported an operating profit of €1.12 million which is 4.9% higher than the €1.07 million figure generated in the previous comparable period.
Net finance costs dropped by 9.1% to €0.31 million reflecting lower bank charges. Accordingly, pre-tax profits rose by 11.3% to €0.81 million. After accounting for a tax charge of €0.31 million, the company’s net profit for the period under review amounted to €0.5 million. This represents an increase of 12.3% over the previous comparable period and also translates into an earnings per share of €0.005 (H1 2017: €0.0044).
The condensed Statement of Financial Position shows a 4.4% increase in total assets to €70.5 million compared to the corresponding figure as at 31 December 2017, largely on the back of the 5.6% increase in the amount of investment property to €62.1 million. Meanwhile, cash balances dropped to €0.59 million from €0.95 million as at the end of 2017.
Total liabilities increased by 9.2% to almost €29 million, reflecting additional borrowings as well as higher trade and other payables. Overall, MPC’s equity base expanded by 1.3% to €41.5 million. This translates into a net asset value per share of €0.4097 (31 December 2017: €0.4046).
Dividend
The Directors did not declare an interim dividend.
Outlook
The Directors noted that in view of the company’s long-term nature of lease agreements with its tenants, revenue should be supported at these levels in the near-term and will increase further once additional developments are completed and rented out.