Tigné Mall plc - Full-Year Results

On 22 April 2024, Tigné Mall plc published its Annual Report and Financial Statements for the year ended 31 December 2023.

Performance Overview

Revenue increased by 4.2% to a record of €8.52 million. The company explained that the growth was supported by higher consumer demand driven by record tourism numbers coupled with an increase in the population.

On the expenditure side, total operating costs climbed by 7.7% to €3.14 million (2022: €2.92 million) mostly reflecting higher administrative expenses. Given the larger increase in revenue compared to expenses in absolute terms, operating profit grew by 2.3% to €5.37 million (2022: €5.25 million). Excluding depreciation charges of €2.07 million, EBITDA rose by 2.5% to a record of €7.44 million. However, the EBITDA margin eased to 87.4% in 2023 compared to 88.9% in 2022.

Meanwhile, net finance costs dropped by 14.5% to €0.40 million as the company continued with its fast pace of debt reduction. Indeed, bank borrowings contracted by 21.6% to €7.04 million compared to €8.99 million as at the end of 2022.

Overall, Tigné Mall reported a pre-tax profit of €4.97 million (2022: €4.78 million). After accounting for a tax charge of €1.03 million, the company posted a record net profit of €3.94 million which is 4.7% higher than the previous year’s record of €3.77 million and translates into a return on average equity of 6.54% (2022: 6.50%).

The Statement of Financial Position as at 31 December 2023 shows that total assets increased by 0.5% (or €0.44 million) to €91.6 million, which includes a cash balance of €3.06 million. On the other hand, total liabilities eased by 6.1% (or €1.97 million) to €30.6 million largely due to the drop in bank borrowings. Shareholders’ funds grew by 4.1% (or €2.41 million) to €61.4 million which translates into a net asset value per share of €1.089 (31 December 2022: €1.047).

Dividend

The Directors of Tigné Mall are recommending the payment of a final net dividend of €0.01445 per share. The final dividend is payable on 17 July 2024 to all shareholders as at the close of trading on 19 June 2024. Coupled with the net interim dividend of €0.0136 per share paid out in September 2023, the total net dividend for the year amounts to €0.0281 per share which is 4.3% higher than the dividend distributed last year and translates into an unchanged payout ratio of 40%.

Outlook

The Company stated that in view of the new developments in the shopping centre landscape, it aims to maintain Tigné Mall’s status as Malta’s premier shopping destination, adapting to emerging trends and competition. In this respect, the Company aims to further strengthen relationships with tenants, curate an even more iconic mix of brands, and innovate to deliver exceptional long-term growth in net rental income. Additionally, Tigné Mall will continue to explore strategic growth opportunities, leveraging expertise to enhance shareholder value even in the context of increased competition.