On 3 March, Plaza Centres plc published its financial results for the year ended 31 December 2010. The financial statements reveal a 3.1% increase in revenue to over €2 million whilst operating expenses increased by 18.1% to €343,169 which in turn raised the cost to income ratio from 30.8% in 2009 to 32.8% in 2010. Depreciation also increased by 2.6% to €333,925 as well as net interest costs which grew by 9.5% to €74,855. Overall, the Company reported a pre-tax profit of €1.3 million practically unchanged from last year’s level €1.32 million. After accounting for tax expenses, the 2010 net profit of €832,700 is also in line with the previous year’s profitability of €836,783.
In 2010, occupancy levels improved slightly to 96.1% from 94.2% in 2009. During the year, the Plaza achieved satisfactory progress on phase three of its expansion project which is expected to be fully completed in the coming weeks. The extension was partly financed by operational cash flows with the balance financed through short-term borrowings. During the current financial year to 31 December 2011, the Directors indicated that the company expects to maintain occupancy levels similar to those in 2010 despite the increased rentable area from the new extension. In the Interim Statement issued on 25 November 2010, Plaza had stated that 70% of the new development was already leased out.
In conclusion the Directors explained that 2010 proved to be very challenging both for the company and its tenants. The Directors expect this scenario to persist during 2011. Nonetheless, the Directors stated that in line with the Company’s growth plans, Plaza will continue to look for other opportunities to expand.
The Board of Directors recommended a final net dividend of €0.075 per share (gross: €0.115) which will be paid on 6 May to all shareholders as at close of trading on 25 March. This year’s dividend is 10.5% below the 2009 final net dividend of €0.084 per share as the payout ratio was reduced from 95% in 2009 to 85% in 2010. The 2010 Annual General Meeting will be held on 29 April 2011.
Download a copy of the Plaza Centres plc 2010 Preliminary Profit Statement