Plaza Centres plc - Interim Results

On 31 July 2024, Plaza Centres plc published its interim financial results covering the six-month period ended 30 June 2024.

Revenue increased by 4.4% to €1.57 million as Plaza’s occupancy level climbed to 96% as at 30 June 2024, compared to 90% a year earlier.

The growth in revenue was largely offset by an 8% increase in operating costs to €0.73 million. As a result, operating profit increased by 2% to €0.85 million. Excluding depreciation, EBITDA increased by 3% to €1.10 million.

Plaza reported lower levels of finance costs (net of investment income) amounting to €0.03 million. After accounting for a tax charge of €0.23 million, Plaza reported a net profit for the period of €0.59 million, which was 3.5% higher than that of the first half of 2023.

The condensed Statement of Financial Position as at 30 June 2024, compared to the financial position as at 31 December 2023 shows that total assets expanded by €0.11 million to €37.1 million. On the other hand, total liabilities declined by €0.14 million to €9.6 million whilst the company’s equity base expanded by €0.25 million to €27.5 million which translates into a net asset value per share of €1.077.

Dividend

The Board of Directors declared an unchanged net interim dividend of €0.0098 per share, payable to shareholders as at close of trading on Monday 12 August 2024. The dividend represents a payout ratio of 43% and will be paid on Wednesday 28 August 2024.

Outlook

In their commentary, the Directors explained that the implementation of the multi-year refurbishment programme is ongoing. Works within the Plaza Shopping and Commercial Centre during the second half of the year will focus on sound insulation, double glazing apertures, energy efficient air conditioning, and upgrades to fire detection systems. The Board noted that there is also commitment from tenants to upgrade their shops and offices which will continue to enhance the customer experience.

The Directors also stated that they do not anticipate a significant change in the Group’s performance over the next six months, but remain cautious due to the prevailing economic challenges, particularly geopolitical instability and inflation.