On 8 July, Plaza Centres plc published its interim results covering the six months ended 30 June 2015.
During the first six months of 2016, Plaza’s revenues increased by 3.3% to €1.27 million as the occupancy increased to 99% as at 30 June 2016 compared to 93% during the first six months of 2015.
Operating costs (comprising marketing, maintenance and administrative costs) increased by 5.8% to €0.22 million resulting in earnings before interest, tax, depreciation and amortisation (EBITDA) of €1.05 million (+2.8%) whilst the EBITDA margin eased marginally to 82.5% from 82.9% during the first half of 2015. After deducting a depreciation charge of €0.17 million for the first half of 2016 (H1 2015: €0.18 million), Plaza registered an improved operating profit of €0.87 million, up 4.1% from the previous comparable figure. Overall, the Company’s cost to income ratio marginally improved to 31% from 31.5% in the previous comparable period.
Meanwhile, net finance costs decreased by a further 11.7% to €0.055 million.
Overall, Plaza reported a 5.4% increase in profit before tax to €0.81 million during the period under review. After accounting for a tax charge of almost €0.3 million, Plaza’s profit after tax stood at €0.52 million, which is also 6.4% higher when compared to the €0.49 million registered in the first half of 2015.
The condensed statement of financial position as at 30 June 2016 reveals that total assets increased by 1.4% to €32.7 million (compared to the position as at 31 December 2015), largely reflecting the commitments paid with respect to the preliminary agreement signed in connection with the acquisition of circa 3,288 square metres of commercial premises which should be concluded on or around 31 October 2016. Similarly, liabilities increased by 9.3% to €8.3 million. Overall, the Company’s shareholders’ funds decreased by 1.1% to €24.4 million as the profit registered during the period under review was outweighed by the dividend paid in respect of the previous financial year. This translates into a net asset value per share of €0.864 (Dec 2015: €0.873).
Similar to previous years and in line with the Company’s dividend policy of only paying a final dividend, the Directors did not recommend the payment of an interim dividend.
Overall, the Directors do not anticipate a significant change in the Company’s performance in the next six months although they remain attentive to external market factors.