Main Street Complex plc - Interim Results

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

Revenues decreased by 7.1% to €0.36 million (H1 2023: €0.39 million) as certain tenants did not renew their lease agreement and another tenant needed to temporarily close due to refurbishment works. In this respect, the average occupancy for the first half of 2024 was 89.5% compared to 98.5% in the previous year. The company noted that revenue for the first half of 2024 also included some income from treasury bills in which the company invested a portion of its cash balances.

Meanwhile, operating costs increased by 6.1% to €0.17 million driven by  higher upkeep and marketing expenses. As a result, operating profit fell by 15.9% to €0.20 million. Excluding depreciation, EBITDA decreased by 12.7% to €0.25 million (H1 2023: €0.29 million). Moreover, the EBITDA margin also fell to 68.6% from 73.0% in the same period last year.

After accounting for minimal finance costs and a tax charge of €0.06 million, the net profit for the period amounted to €0.14 million (H1 2023: €0.17 million), resulting in an annualised return on average equity of 2.6% (H1 2023: 3.1%)

The Statement of Financial Position as at 30 June 2024, compared to figures as at 31 December 2023, shows that total assets declined by 1.9% (or €0.23 million) to €12.1 million, principally composed of property, plant and equipment with a value of €11.4 million. Total liabilities dropped by 10.8% (or €0.16 million) to €1.30 million as the company remained debt free. The company’s equity base remained virtually unchanged at €10.9 million which translates into a net asset value per share of €0.560.

Dividend

The Directors elected to distribute a net interim dividend of €0.0054 per share, which is 25% lower than the corresponding net interim dividend paid in September 2023 and translates into a payout ratio of 74% (H1 2023: 80%). The dividend is payable by Thursday 12 September 2024 to all shareholders as at close of trading on Wednesday 28 August 2024.

Outlook

In their commentary, the Directors noted that the refurbishment of the complex and other developments in the Paola area are expected to contribute towards more visitors in the locality. The Board reiterated its cautiously optimistic view that Main Street Complex will be able to attract new tenants. In fact, management is in discussions with a number of potential tenants.