Plaza Centres plc - Interim Results

On 24 July 2018, Plaza Centres plc (“Plaza”) published its interim financial results covering the six-month period ended 30 June 2018.

Performance Overview

During the first six months of 2018, Plaza’s revenues increased by 5.5% to €1.56 million (H1 2017: €1.48 million), possibly reflecting the higher contribution from Tigne’ Place (the commercial premises acquired by Plaza on 27 September 2016) as well as the annual increments to the contracts held within the Plaza Commercial Centre. On the other hand, however, Plaza noted that overall occupancy as at 30 June 2018 stood at 87%. This was lower than the occupancy rate of 91% as at 30 June 2017.

Marketing, maintenance and administrative costs surged by over 26% to €0.32 million, partially reflecting one-off charges. Overall, most of the increase in revenues was absorbed by the increase in costs. As a result, EBITDA only improved by 1.2% to €1.24 million which translates into an EBITDA margin of 79.3% (H1 2017: 82.7%).

The financial performance of Plaza was negatively impacted by higher depreciation charges (+13.7% to €0.26 million) as well as a notable uplift in net finance costs (+21.3% to €0.23 million). With respect to the higher depreciation charge, this was possibly due to the completion of the majority of the refurbishment works at Tigne’ Place. On the other hand, the increase in net finance costs reflects a marginal loss in “investment and other related income” compared to a positive contribution of €0.04 million in H1 2017.

In aggregate, Plaza posted a pre-tax profit of €0.74 million, representing a drop of 7.3% when compared to last year’s corresponding figure. After accounting for a tax charge of €0.2 million, Plaza’s net profit stood at €0.54 million compared to the €0.6 million generated in the first six months of 2017.

The condensed statement of financial position as at 30 June 2018 shows that total assets eased by 0.6% to €44.6 million when compared to the amount as at 31 December 2017. Total liabilities remained virtually unchanged at €17.3 million whilst shareholders’ funds dropped by 1% to €27.3 million as the final dividend paid out with respect to the 2017 financial year outweighed the profit registered during the period under review. The amount of shareholders’ funds translates into a net asset value per share of €0.968 (31 December 2017: €0.978).

Dividend

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.

Outlook

In their commentary, the Directors noted that they are projecting an improvement in occupancy levels in the last quarter of this year as Plaza completes its various renovation works. Furthermore, the Directors noted that these investments are expected to enhance Plaza’s offering which will eventually lead to higher returns for the company in the years ahead.

Download

Plaza Centres plc – Condensed Half-Yearly Report for the period ended 30 June 2018.