On 26 April 2023, Plaza Centres plc published its Annual Report and Financial Statements for the year ended 31 December 2022.
Revenue advanced by 13.3% to €2.87 million (2021: €2.53 million) as the rental discounts granted in 2021 to retail tenants as a result of the pandemic were no longer required in 2022. Furthermore, demand for office space remained strong and the Plaza Business Centre reached full occupancy in the first half of 2022. Meanwhile, some retail space remained available during the year.
On the expenditure side, total operating costs increased by 1.5% to €1.44 million, driven by higher administrative expenses. However, due to the sharper rise in revenues than costs, operating profit (‘EBIT’) surged by 28.2% to €1.43 million, which translates into an EBIT Margin of 49.7% (2021: 43.9%). Excluding depreciation charges, the EBITDA increased by 18.7% to €1.94 million, resulting in an EBITDA Margin of 67.5% (2021: 64.4%).
After taking into account net finance costs of €0.27 million, tax charges of €0.44 million and a non-controlling interest loss of €0.05 million, the profit for the year attributable to shareholders amounted to €0.77 million which is 48% higher than the €0.52 million figure reported for the 2021 financial year.
The Statement of Financial Position shows that total assets by dropped 4.7% to €36.8 million driven by lower cash (-€1.08 million to €1.55 million). Meanwhile, total liabilities dropped by 13.7% to €10.2 million, largely reflecting lower levels of debt (-€1.64 million to €5.64 million). Overall, shareholders’ funds declined by 0.8% to €26.6 million which translates into a net asset value per share of €1.0443 (31 December 2021: €1.0525).
The Directors are recommending the payment of a final net dividend of €0.0137 per share to all shareholders as at close of trading on 11 May 2023 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Wednesday 14 June 2023.
Coupled with the net interim dividend of €0.0098 per share paid out in August 2022, the total net dividend for the year amounts to €0.0235 per share, unchanged from the previous year. The total net dividend for 2022 translates into a payout ratio of 78%.
In their commentary, the Directors noted that the economic environment remains challenging amid high inflation. Nonetheless, the Group will continue to renovate and upgrade its retail and commercial space offering to ensure it remains competitive and attractive. The Board will also continue to explore the feasibility and attractiveness of a number of growth opportunities which make economic sense to the business.