On 20 April 2021, Main Street Complex plc published its Annual Report and financial statements for the year ended 31 December 2020.
During 2020, revenues contracted by almost 37% to €0.52 million as the company’s operations were materially adversely impacted by COVID-19. In line with the restrictions imposed by local health authorities, Main Street Complex was temporarily closed for six to eight weeks between March and May 2020. Moreover, the Company introduced some relief measures aimed at supporting the operations and business of its concessionaries, which included the waiving of fees during the period of closure as well as discounted fees following reopening.
On the expenditure side, total operating costs eased by 3.3% to €0.19 million as the Company introduced a number of cost-saving measures with a view of partially absorbing the negative financial impact of the pandemic. Nonetheless, given the much higher drop in revenue, EBITDA declined by 47.1% to €0.33 million whilst operating profit contracted by 56.4% to €0.23 million.
Overall, Main Street Complex reported a pre-tax profit of €0.22 million compared to €0.52 million in 2019. After accounting for a tax charge of €0.08 million, the Company’s net profit amounted to €0.14 million (-63.1%) which, in turn, translates into a return on average equity of 1.24% (2019: 3.36%).
The Statement of Financial Position as at 31 December 2020 shows that total assets eased by 1.3% to €13.3 million largely reflecting the reduction in value of property, plant and equipment (-0.8%) and trade and other receivables (-24%). On the other hand, cash balances remained virtually unchanged at €0.26 million. Total liabilities decreased by almost 10% to €1.59 million mostly due to the lower amounts of trade and other payables (-37%). The Company’s equity base remained unchanged at €11.7 million which, in turn, translates into a net asset value per share of €0.602.
Main Street Complex explained that in light of the prevailing circumstances related to COVID-19, it is not recommending the payment of a dividend.
In their commentary, the Directors noted that despite the adverse operating environment, the Company remained resilient whilst also maintained a sound liquidity position and no exposure to debt. Looking ahead, the financial results for 2021 are expected to remain relatively subdued. Nonetheless, Main Street Complex will continue to be a popular shopping destination for the southern part of Malta as the Company is well placed to contribute positively to the success of its various tenants upon the return to pre-COVID-19 conditions.