On 19 August 2021, Main Street Complex plc published its interim financial statements covering the six-month period ended 30 June 2021.
During the first half of 2021, revenues increased by 4.1% to €0.22 million which however is still 43% lower than the turnover recorded in the first six months of 2019.
Operating costs surged by 16.5% to €0.14 million as the company continued to reach out to its concessionaires with temporary support measures, through extended discounts, and the waiver of fees during the March-April 2021 lock-down period. Excluding depreciation charges, EBITDA eased to €0.14 million (H1 2020: €0.15 million) whilst the EBITDA margin fell to 63.5% compared to close to 70% in H1 2020, and 78% in the first six months of 2019.
Overall, Main Street Complex reported a pre-tax profit of €0.09 million (H1 2020: €0.1 million). After accounting for a tax charge of €0.03 million, the company’s net profit amounted to €0.05 million (H1 2020: €0.06 million).
The Statement of Financial Position as at 30 June 2021, compared to figures as at 31 December 2020, shows that total assets contracted by 0.5% to €13.2 million mostly due to lower amounts in trade and other receivables. Total liabilities dropped by almost 8% to €1.47 million reflecting lower trade and other payables. The company’s equity base increased slightly to €11.7 million which, in turn, translates into a net asset value per share of €0.605.
Having given due consideration to the continued uncertainty, the occupancy disruptions, and reduced profitability resulting from the pandemic, the Board of Directors decided that it is prudent at this stage not to recommend the payment of an interim dividend. Nonetheless, the matter will be kept under review and further announcements in this respect will be published as and when appropriate.
Main Street Complex explained that footfall levels in the initial weeks following the lock-down period started off at very strong levels but have since tapered off to acceptable levels that exceed the June/July 2020 period by 12%.
In the first six months of 2021, the company’s financial results were not impacted by the notice of termination served by the Debenhams franchisee (announced on 2 June 2021) in view of the termination provisions contained in the applicable concession agreement. Main Street Complex expects an agreement for the take up of the area vacated by Debenhams to be concluded with a suitable tenant over the coming months.
The company concluded by saying that it remains confident that its strong financial position and the absence of debt will enable it to continue to manage the negative repercussions and occupancy disruptions brought about by the pandemic.