On 06 April, Tigné Mall plc published its financial statements for the year ended 31 December 2016.
During 2016, Tigné Mall’s revenue grew by a further 3.8% to over €5.9 million (2015: €5.7 million) on the back of increased tenant sales supported by a robust footfall. Furthermore, the shopping mall remained fully occupied also in 2016.
Cost of sales increased by 6.8% to €1.6 million. As a result, the gross profit figure amounted to €4.3 million, an increase of 2.7% over the corresponding figure of €4.19 million in 2015. However, the gross profit margin eased to 72.7% from 73.5% in 2015.
Meanwhile, administrative expenses jumped by 15.4% to €0.42 million (2015: €0.36 million). Nonetheless, operating profit still improved by 1.5% to €3.88 million (2015: €3.82 million). Excluding the depreciation charge of €1.46 million (2015: €1.35 million), earnings before interests, tax, depreciation and amortisation (EBITDA) amounted to €5.34 million, representing a 3.2% improvement over the previous year’s comparable figure. This also exceeds the projected figure (at the time of the IPO) of €5.12 million by 4.3%.
Net finance costs continued to trend lower to €0.82 million compared to €0.96 million in 2015 on the back of additional accelerated loan repayments.
Overall, Tigné Mall plc registered a further 6.7% increase in pre-tax profits to €3.06 million (2015: €2.87 million). This is also 16.5% above the projected pre-tax profit figure of €2.63 million published in the IPO Prospectus dated 20 March 2013. After accounting for a tax charge of just over €1 million (2015: €1.21 million), the Company’s net profit for 2016 amounted to €2.05 million, representing a 23.8% improvement over the previous year’s comparable figure and 36.8% ahead of the IPO projections.
The Statement of Financial Position shows that total assets decreased by 1.8% to €64.9 million (2015: €66.0 million), largely reflecting the depreciation charge for the year. Similarly, total liabilities decreased by 5.9% to €29.1 million (2015: €30.9 million) mainly reflecting the further €1.7 million reduction in borrowings to €19.98 million.
Shareholders’ funds grew by 1.8% to €35.7 million. This translates into a net asset value per share of €0.633 (2015: €0.622). The pre-tax return on equity eased marginally lower to 8.64% from 8.96% whilst the return on assets increased by 0.06 percentage points to 4.67%.
For the fourth consecutive year, the Directors recommended an unchanged final net dividend of €0.0125 per share to all shareholders as at close of trading on 6 June 2017. The dividend will be paid on 28 June 2017 subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on 9 June 2017.
Combined with the net interim dividend of €0.0125 per share, the Company’s total distribution with respect to the 2016 financial year amounts to a total net dividend of €0.025 per share, representing an 11.1% increase over last year’s payment and exactly in line with what was projected at the time of the IPO. The total net dividend translates into a net yield of 2.4% based on today’s all-time closing price of €1.062.
The Directors expect that the level of activity in 2017 will continue at current levels. In the IPO, the Company had forecast a pre-tax profit figure of €2.92 million for 2017.