VBL plc - Interim Results

On 21 August 2024, VBL plc published its interim financial statements covering the six-month period ended 30 June 2024.

Revenues increased by 15.9% to €1.70 million (H1 2023: €1.47 million) driven by improvements in rental income from the hospitality segment.

On the expenditure side, VBL’s net operating expenditure climbed 8.2% higher to €1.55 million (H1 2023: €1.43 million) as a result of higher administrative expenses and cost of sales. Consequently, VBL’s operating profit for the period amounted to €0.16 compared to €0.04 million in the corresponding period last year. Excluding depreciation and amortisation charges, EBITDA amounted to €0.31 million (H1 2023: €0.19 million).

The financial performance was however impacted from the absence of fair value movements in its investments in the property as opposed to the €0.34 million increase in property value recognised during the first half of 2023.

After accounting for net finance costs of €0.09 million, VBL recorded a net profit for the period of €0.07 million, compared to €0.26 million in the first half of 2023.

The Statement of Financial Position as at 30 June 2024, when compared to the corresponding figures as at 31 December 2023, shows that total assets increased by 1.5% to €80.6 million. The majority of the assets (96.6%) consisted of investment property having a book value of €77.9 million. Total liabilities grew by 7.7% to €15.1 million on the back of increased borrowings and payables. Meanwhile, total equity remained relatively unchanged at €65.5 million, which translates into a net asset value per share of €0.2629.

Outlook

In their commentary, the Directors explained that the Group’s implementation of the key renovation projects is back on track with the last projects set to become revenue generating by 2026 as the earlier reported delays are considered largely resolved. Notably, a development project is anticipated to be finalised and generate revenue during the second half of 2024. The company will continue to explore financing and investment markets to ensure competitive long-term financing facilities for its development cycle. The directors also noted that there are various challenges affecting the Company’s operational performance including inflationary pressures and labour market shortages.