On 22 March Plaza Centres plc published its Preliminary Statement of Results for the year ended 31 December 2005.
During the twelve months ended 31 December 2005, total revenue generated by Plaza Centres amounted to Lm637,554, a rise of 3.2% compared to the same twelve months of 2004. The Directors reported that occupancy levels with the centre remained high at 97% and they anticipate to reach this same level of occupancy in 2006.
Total operating expenses incorporating marketing costs, maintenance costs and administrative expenses increased by 6.7% to Lm107,295. Earnings before interest, tax, depreciation and amortisation (EBITDA) thus amounted to Lm530,259, a 2.5% increase over the level of 2004 with the EBITDA margin dipping to 83.2% from 83.7% in 2004. The charge for depreciation was almost identical to last year’s figure of Lm119,000 resulting in an operating profit during 2005 of Lm411,091, 3.4% up over the previous year.
After including net interest receivable of Lm16,403, the company’s pre-tax profit in 2005 increased by 2.1% to Lm427,494. Taxation of Lm156,949 results in a profit for the year of Lm270,545, also 2.1% above the level of profitability achieved in 2004. Earnings per share work out at 2c87 (2004: 2c81).
The Directors have proposed a gross dividend of 4c17 per share (2004: 4c10), which results in a net dividend of 2c71 per share resulting in a total distribution of Lm255,119, a small rise of 1.7% over the dividend distribution in 2004. The dividend cover remains unchanged at 1.06 times, implying that the company pays out 94% of its yearly profits by way of dividends. The net dividend of 2c71 is payable to those shareholders on the Company’s share register as at close of trading on Monday 27 March 2006. The Annual General Meeting is scheduled to take place on 25 April 2006 and if approved, the dividend will be paid on 28 April 2006.
The Directors noted that the Company’s land and buildings were revalued on 31 December 2005 on the basis of an open market valuation by an independent professionally qualified valuer. The surplus arising on revaluation, net of deferred taxation, was credited to the revaluation reserve, including the effect of changes to income tax rules relevant to property transfers. This resulted in a 13.7% rise in shareholders’ funds to Lm8.1 million resulting in a book value per share of 85c8. The equity is currently trading at a 16% discount to net asset value.