VBL plc – Interim Results

Jonathan Falzon

August 22, 2025

Market News
22 August, 2025
4 min read
Market News
22 August, 2025
4 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

Financial Performance

On 21 August 2025, VBL plc published its interim financial statements covering the six-month period ended 30 June 2025.

Revenues increased by 25.2% to €2.13 million (H1 2024: €1.70 million) driven by improvements in rental income and additional service fee revenue.

Operating expenditure climbed 7.3% higher to €1.66 million (H1 2024: €1.55 million) as a result of higher depreciation and amortization. Excluding a depreciation and amortisation charge of €0.31 million, EBITDA more than doubled to €0.78 million (H1 2024: €0.31 million) and the EBITDA margin improved to 36.9% from 18.3% in the previous year. The operating profit amounted to €0.47 million compared to €0.16 million in the corresponding period last year.

VBL noted that it does not recognise fair value changes in investment property in the interim results as the revaluation exercise will be recorded in the annual financial statements.

Net finance costs rose to €0.35 million from €0.09 million in the comparable period last year largely reflecting the issuance of €10 million 5.20% secured bonds in October 2024.

After accounting for a minimal tax charge, VBL recorded a net profit for the period of €0.12 million, compared to €0.07 million in the first half of 2024.

The Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at 31 December 2024, shows that total assets stood at €95.9 million, broadly unchanged from the previous year. Investment property accounted for 88% of assets at €84.5 million. VBL also held financial investments totalling €7.46 million and cash balances of €1.97 million. Total liabilities increased minimally to €28.0 million, which include borrowings of €19.6 million and lease liabilities of €1.48 million. Total equity also remained relatively unchanged at €67.9 million, which translates into a net asset value per share of €0.2725 (31 December 2024: €0.2718).

Outlook

In their commentary, the Directors explained that currently only 30% of the Group’s properties are renovated and operational. This ratio is expected to rise with the completion of the Silver Horse Block Phase 2, which is anticipated to start generating revenue in H2 2026. The remaining properties are either under renovation or being prepared for future development.

The Directors noted that VBL continues to seek new acquisition opportunities and also strategic options, including raising further capital or carrying out equity transactions that might change the shareholding structure.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 21 August 2025, VBL plc published its interim financial statements covering the six-month period ended 30 June 2025.

Revenues increased by 25.2% to €2.13 million (H1 2024: €1.70 million) driven by improvements in rental income and additional service fee revenue.

Operating expenditure climbed 7.3% higher to €1.66 million (H1 2024: €1.55 million) as a result of higher depreciation and amortization. Excluding a depreciation and amortisation charge of €0.31 million, EBITDA more than doubled to €0.78 million (H1 2024: €0.31 million) and the EBITDA margin improved to 36.9% from 18.3% in the previous year. The operating profit amounted to €0.47 million compared to €0.16 million in the corresponding period last year.

VBL noted that it does not recognise fair value changes in investment property in the interim results as the revaluation exercise will be recorded in the annual financial statements.

Net finance costs rose to €0.35 million from €0.09 million in the comparable period last year largely reflecting the issuance of €10 million 5.20% secured bonds in October 2024.

After accounting for a minimal tax charge, VBL recorded a net profit for the period of €0.12 million, compared to €0.07 million in the first half of 2024.

The Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at 31 December 2024, shows that total assets stood at €95.9 million, broadly unchanged from the previous year. Investment property accounted for 88% of assets at €84.5 million. VBL also held financial investments totalling €7.46 million and cash balances of €1.97 million. Total liabilities increased minimally to €28.0 million, which include borrowings of €19.6 million and lease liabilities of €1.48 million. Total equity also remained relatively unchanged at €67.9 million, which translates into a net asset value per share of €0.2725 (31 December 2024: €0.2718).

Outlook

In their commentary, the Directors explained that currently only 30% of the Group’s properties are renovated and operational. This ratio is expected to rise with the completion of the Silver Horse Block Phase 2, which is anticipated to start generating revenue in H2 2026. The remaining properties are either under renovation or being prepared for future development.

The Directors noted that VBL continues to seek new acquisition opportunities and also strategic options, including raising further capital or carrying out equity transactions that might change the shareholding structure.