Plaza Centres plc - Full-Year Results
On 27 April 2022, Plaza Centres plc published its Annual Report and Financial Statements for the year ended 31 December 2021.
Revenues dropped by 8.1% to €2.53 million (2020: €2.76 million) reflecting the loss of income from the Tigné Place commercial building which was sold in September 2020. In fact, revenues generated by the Plaza Commercial Centre increased by 17.2% even though the company continued to provide financial assistance to its tenants in the form of rental discounts and absorption of common area costs.
On the expenditure side, total operating costs contracted by 6.1% to €1.42 million. However, given the sharper drop in revenues than costs, operating profit declined by 10.6% to €1.11 million. On the other hand, when excluding depreciation charges as well as the impact of the sale of Tigné Place, the EBITDA generated by the Plaza Commercial Centre increased by 13.1% to €1.64 million (2020: €1.45 million).
After taking into account net finance costs of €0.24 million and tax charges of €0.35 million, the net profit for the year amounted to €0.52 million which is 11% higher than the €0.47 million figure reported for the 2020 financial year.
The Statement of Financial Position shows that total assets eased by 0.7% to €38.6 million whilst total liabilities dropped by 3.3% to €11.8 million. As a result, Plaza’s equity base expanded by 0.6% to €26.8 million which, in turn, translates into a net asset value per share of €1.0525 (31 December 2020: €1.0465).
The Directors are recommending a net dividend to €0.0235 per share which translates into a payout ratio of 115%. Shareholders as at the close of trading on Monday 19 May 2022 will be eligible to receive the dividend subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Wednesday 22 June 2022.
In their commentary, the Directors noted that they are looking at the future with cautious optimism as the worst of the pandemic seems to have now been passed. However, the economic environment for 2022 is very challenging amid the conflict in Ukraine which has fuelled an already high inflation.
Meanwhile, in line with the company’s strategic direction, Plaza added that it continues to explore the feasibility and attractiveness of a number of growth opportunities. In fact, it is currently in the process of incorporating a new company which is expected to gradually contribute to the diversification of trading activity.