Trident Estates plc - Full-Year Results
On 8 May 2019, Trident Estates plc published its Annual Report & Financial Statements for the year ended 31 January 2019.
Performance Overview
During the period under review, Trident Estates generated €1.08 million in revenues, representing an increase of just over 35% over the previous comparable period as the company renewed a lease agreement with a new tenant at superior rates. On the expenditure side, operating costs surged by almost 46% to €0.79 million reflecting additional directors’ remunerations fees, property rent and leases, as well as other expenses. Excluding depreciation, EBITDA grew by 14.2% to €0.3 million compared to €0.26 million in the previous financial year.
Meanwhile, the financial performance of Trident Estates was boosted by a much higher favourable net gain of €0.8 million in the fair value of investment property (FY2017/18: €0.17 million). This led to a hike in pre-tax profits to €1.09 million compared to €0.44 million in the previous corresponding period. After accounting for a tax charge of €0.32 million, the net profit for the year amounted to €0.78 million which, in turn, translates into an earnings per share of €0.0258 (FY2017/18: €0.0171).
The Statement of Financial Position shows that total assets increased by 7.6% to €42.8 million compared to €39.7 million as at 31 January 2018, largely reflecting the higher value of investment property under development – namely Trident Park – to €15.2 million against a value of €10.8 million as at the end of January 2018. On the other hand, the company’s cash balances contracted by 35.7% to €4 million (31 January 2018: €6.23 million).
Total liabilities increased considerably to €4.92 million (31 January 2018: €2.68 million) on the back of a surge in trade and other payables which, in turn, largely comprise developments costs related to the Trident Park project. As a result, total equity increased by 2.1% to €37.8 million. This translates into a net asset value per share of €1.2610 (31 January 2018: €1.2351).
Dividend
The Directors of Trident Estates are recommending a final net dividend per share of €0.0067. Shareholders as at close of trading on 22 May 2019 will be entitled to receive the dividend which is payable on 26 June 2019 subject to shareholders’ approval at the forthcoming Annual General Meeting scheduled to be held on 25 June 2019.
Outlook
In their commentary, the Directors explained that works related to the development of Trident Park are progressing in line with established timeframes and budgets. In fact, Trident Park is envisaged to welcome its first tenants in early 2021. Moreover, the Directors noted that the company has the necessary financing arrangements and resources in place to ensure the successful completion of the project, and that it expects to approach the local capital market with a rights issue in Q4 2019. The Directors also stated that interest received so far from potential tenants has been encouraging and indicative of the project’s future success.