Main Street Complex plc - Interim Results

On 24 August, Main Street Complex plc published its first set of financial statements since listing its shares on the Malta Stock Exchange in May 2018. The announcement covers the first six months of the current financial year ending 31 December 2018.

Performance Overview

During the first half of 2018, revenue dropped minimally lower to €0.35 million compared to €0.36 million in the first half of 2017 and is reportedly in line with the company’s expectations.

On the expenditure side, total administrative and operating expenses, as expected, increased by 58.9% to €62,695 due to lower recoveries of common area and building maintenance costs, higher management fees as well as increased governance costs.

As a result, earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €0.29 million representing a 9.2% drop from the previous comparable figure.

Depreciation also increased by 11.3% to €49,492 following the installation of a new lift. Operating profit amounted to €0.24 million compared to €0.28 million in the first half of 2017.

Meanwhile, net finance costs dropped by 20.2% to €45,417 as the company utilised the IPO proceeds to repay its bank borrowings.

Overall, the company reported a pre-tax profit of €0.2 million for the period under review compared to a pre-tax profit of €0.22 million in the first half of 2017.

After accounting for a tax charge of €58,336 (H1 2017: €61,406), the company’s net profit amounted to €0.14 million representing a 12.6% decline from the comparable figure of €0.16 million for the six months ended 30 June 2017.

The Statement of Financial Position as at 30 June 2018 (compared to figures as at 31 December 2017) shows a marginal increase in total assets to €13.39 million whilst total liabilities contracted by 66.4% to €1.8 million following the repayment of €3 million in bank borrowings (funded from the IPO proceeds). Following the May 2018 IPO, the company’s equity base grew by 44% to €11.58 million which translates into a net asset value per share of €0.597 (Dec 2017: €0.415).

Dividend

The directors declared a net interim dividend of €0.00628 per share which will be paid on 14 September 2018 to all shareholders as at the close of trading on 5 September 2018.

Outlook

The Directors noted that the company continues to operate in a positive economic environment and has seen an upturn in business following the completion of the Paola square refurbishment project with consistent increases in customer footfall being registered compared to previous periods. Furthermore, the Directors prudently anticipate a positive year of operations while remaining cautious towards potential market factors which may affect the company’s financial position. Finally, the Directors also explained that the company continues to pursue opportunities that may improve its growth and development.

Downloads

Main Street Complex plc – Interim Report covering the six months ended 30 June 2018.