On 27 July, Plaza Centres plc published its 2011 half-year results revealing a 6.8% increase in revenue to €1.07 million helped by the completion of the third extension in March 2011 which added a further 1,700 square metres of rentable area. However, the Directors noted that the full benefits of this new wing will become increasingly evident during the third and fourth quarter of this year. Plaza incurred higher marketing and sales promotion costs related to the new wing and also an increase in finance expenses following the increased borrowings necessary to finance the property extension. Due to the higher cost base, profit before tax declined by 5% to €625,275. Similarly, after accounting for taxation, the net profit of €395,359 generated during the first six months of 2011 is also marginally below the comparable figure of €416,539.
Occupancy for the period was 91% following the completion of the third extension but the Directors expect occupancy levels to improve during the fourth quarter of this year.
The Directors of Plaza also reiterated that in line with the Company’s growth plans, it continues to look at new opportunities for expansion.
In conclusion, the Directors stated that they do not foresee any significant change in the Company’s performance in the next six months although they remain attentive to external market factors.
Similar to previous years, Plaza did not recommend the payment of an interim dividend.