The Convenience Shop (Holding) plc - Interim Results
On 30 August 2024, The Convenience Shop (Holding) plc published its interim financial statements covering the six-month period ended 30 June 2024.
Revenue decreased by 2.9% to €21.8 million compared to €22.5 million generated in the first half of the previous year. The company explained that the reduction reflects the broader challenges faced by the convenience retail sector as shoppers prioritised affordability over convenience due to inflationary pressures and higher costs of living.
Operating costs remained practically unchanged at €20.8 million. Consequently, the company’s operating profit fell by 36.9% to €0.98 million from €1.55 million in the corresponding period in 2023.
After accounting for other income of €0.27 million, net finance costs of €0.48 million and a tax charge of €0.23 million, the company reported a net profit for the period attributable to shareholders of €0.53 million, which is 46% lower than the €0.99 million figure recorded in the previous comparable period.
The Condensed Statement of Financial Position as at 30 June 2024, when compared to the corresponding figures as at the end of 2023, shows that total assets decreased by 0.3% (or €0.12 million) to €38.6 million. On the other hand, total liabilities grew by 1.6% (or €0.45 million) to €29.5 million. Meanwhile, total equity contracted by 6.0% (or -€0.57 million) to €9.2 million.
Dividend
The Directors approved a net interim dividend of €0.01 per share which translates into a payout ratio of 57.8%. The dividend will be paid on Monday 30 September 2024 to all shareholders as at the close of trading on Thursday 5 September 2024.
Outlook
In their commentary, the Directors explained that the new Qormi Head Office and the entry into the Gozo market represent the Group’s commitment to strategic growth. Furthermore, the Group is investing in key shop equipment which allows for an increase in the product range and better utilisation of space. Moreover, the Company plans to invest in new HR and finance systems to increase back-office efficiencies. The Directors stated that the Group is also on track to achieve its goal of opening its 100th store by the end of 2024.