On 22 July 2022, Plaza Centres plc published its interim financial results covering the six-month period ended 30 June 2021.
Revenues surged by 24.5% to €1.43 million reflecting the further recovery in business following the negative impact of the pandemic. In fact, the occupancy level climbed to 90% as at the end of June 2022 compared to 83% on 30 June 2021 which also includes the full occupancy of the office spaces as from December 2021. Moreover, during the period under review, Plaza continued to enhance its tenant mix (principally at Level 0) including a new fitness centre as well as an esports lounge.
Despite the considerable growth in turnover, operating costs only increased by 3.1% to €0.36 million whilst depreciation charges remained at €0.24 million. As a result, operating profit (“EBIT”) increased by 49% to €0.83 million which, in turn, translates into an EBIT margin of 57.6% (H1 2021: 48.1%).
After accounting for finance costs of €0.15 million (net of investment income) and a tax charge of €0.22 million, Plaza recorded a net profit of €0.46 million compared to the net profit of €0.27 million generated in the first half of 2021.
The condensed Statement of Financial Position as at 30 June 2022 shows that total assets contracted by 4.9% (or €1.9 million) to €36.7 million. Total liabilities also dropped notably (-€1.7 million) to €10.1 million whilst the company’s equity base eased to €26.6 million which, in turn, translates into a net asset value per share of €1.0449.
Shareholders as at close of trading on Wednesday 3 August 2022 will receive a net interim dividend of €0.0098 per share. The dividend represents a payout ratio of 54.2% and will be paid on Friday 19 August 2022.
In their commentary, the Directors explained that they are not anticipating any significant changes in the company’s performance in H2 2022. Nonetheless, Plaza will remain cautious for the future amid the prevailing macro-economic challenges as well as the potential risks of more COVID-19 virus strains emerging.