On 10 August, Tigné Mall plc published its interim results covering the six months ended 30 June 2017.
During the period under review, the Company registered a 3.4% increase in revenue as the shopping mall remained fully occupied whilst registering an increase in footfall. The Directors noted that the growth in revenue was registered notwithstanding the on-going restricted access into Sliema and also the effect of the general election held in June.
On the other hand, cost of sales eased by 1.3% to just under €0.8 million leading to a gross profit of €2.13 million representing a 5.3% increase over the corresponding figure of €2.02 million in the first six months of 2016.
After accounting for administrative expenses of €0.21 million (H1 2016: €0.19 million), the Company’s operating profit amounted to €1.92 million representing a 4.9% increase from the corresponding figure for the first six months of 2016.
Tigné Mall plc also reported an 11.9% reduction in net finance costs to €0.37 million on the back of accelerated bank loan repayments.
Overall, profit before tax amounted to €1.56 million representing a 9.9% increase over the €1.42 million registered in the first six months of 2016.
Despite the increase in profitability, Tigné Mall plc reported a 16.4% drop in its tax charge to €0.51 million largely due to the fact that the Company is now electing to tax its gross rental income at a final withholding tax of 15%. As a result, the interim net profit exceeded the €1 million level for the first time in the Company’s history representing a 29.5% increase over the net profit recorded in the prior comparable period. This translates into an earnings per share of €0.0186 (H1 2016: €0.0144).
The Statement of Financial Position as at 30 June 2017, and compared to the corresponding figures as at 31 December 2016, shows that total assets contracted by 1.2% to €64.1 million mainly reflecting the 1.2% drop in the value of property, plant and equipment to €61 million. Total liabilities also contracted by 3.8% to just over €28 million largely reflecting the reduction of a further 6.5% in bank borrowings to €18.7 million. Overall, the Company’s equity base grew by almost 1% to €36.1 million which translates into a net asset value per share of €0.64 (Dec 2016: €0.633).
The Directors declared a slightly improved (+2.4%) net interim dividend of €0.0128 per share which will be paid on 31 August 2017 to all shareholders as at the close of trading on Monday 14 August.
Looking ahead, the Directors noted that the trend registered in the first half of 2017 is expected to persist throughout the second six months of 2017.