Main Street Complex plc - Business Update

On 3 December 2024, Main Street Complex plc announced that the company continued to operate profitably throughout 2024, maintaining a robust financial position with no external borrowing apart from normal trade credit. However, the Board has observed that trading activity has generally subsided, most likely impacted by the emergence of new malls throughout the island, leading to a reduction in footfall compared with the same period last year. The company explained that this recent trend has affected sales activity and investment appetite among retail operators, including a number of the company’s tenants, therefore negatively impacting the company’s profitability.

The Board noted that a small number of concessions expired this year and are yet to be replaced.  Efforts to line up potential prospective tenants in case of non-renewals have been met with moderate interest. Furthermore, most concession agreements are due for renewal at the end of 2025 and discussions with existing as well as prospective tenants are underway. While a number of existing tenants have shown interest in renewing concession agreements, others remain undecided in view of concerns about the aforesaid rising competition in the retail sector.

While the Board remains optimistic about the prospects of Paola continuing to serve as an important and attractive commercial and residential hub in the south of Malta, given the prevailing and anticipated market conditions, the Board has embarked on an exercise to explore alternative strategies aimed at maximising the return on the company’s investment.