On 7 August, Malta Properties Company plc published its interim results covering the six months ended 30 June 2017.
During the period under review, Malta Properties Company plc registered a 7.5% drop in revenues to €1.54 million as some of the properties previously leased out were hand over ahead of the redevelopment projects. On the other hand, administrative expenses increased by 61.7% to €0.47 million reflecting the Group’s growing operations. As a result, Malta Properties Company plc reported an operating profit figure of €1.07 million compared to €1.37 million in the previous comparable period.
Finance costs dropped by 23.6% to €0.34 million largely reflecting lower interest costs on the Group’s borrowings.
Overall, the Group reported a 21.6% drop in pre-tax profits to €0.73 million and after accounting for a tax charge of €0.28 million (-25.6%), the Group’s net profit amounted to €0.45 million, representing an 18.9% drop from the previous comparable period. This translates into an earnings per share of €0.0044 compared to €0.0054 in the first half of 2016.
The Statement of Financial Position shows a 2.1% increase in total assets to €59.97 million compared to the corresponding figures as at 31 December 2016 on the back of a 2% increase in investment property to €51.1 million as well as a 36.3% growth in the Group’s cash balances to €1.88 million. Similarly, total liabilities increased by 3.4% to €23.4 million including a 1.4% increase in total borrowings to €16.22 million. Overall, the Group’s equity base increased by 1.3% to €36.57 million largely reflecting the profit registered during the period under review. This translates into a net asset value per share of €0.361 (Dec 2016: €0.356).
The Directors did not declare an interim dividend.
The Directors noted that in view of the Group’s long-term lease agreements with its tenants, revenue should be supported at these levels for the foreseeable future and is only expected to increase once the new developments are completed and rented out and also in line with inflation.