AX Real Estate plc - Full-Year Results

On 24 February 2025, AX Real Estate plc published its Annual Report and Financial Statements for the year ended 31 October 2024.

Revenue surged by 65% to €19.4 million (FY2022/23: €11.8 million) driven by the first full-year of income from the Group’s largest property, AX ODYCY Hotel, which had opened in May 2023.  Furthermore, the AX Group’s other hotels have also exceeded expectations, outperforming their projected revenue and operating profits.

Meanwhile, net operating expenses decreased by 15.0% to €0.96 million (FY2022/23: €1.16 million) due to lower professional fees and other administrative costs.

Excluding the fair value movements of investment property, the Group’s operating profit increased by 74% to €18.4 million (FY2022/23: €10.6 million), which translates into an improved operating profit margin of 95% (FY2022/23: 90.1%).

The financial performance was impacted by a downward movement on the fair value of investment property of €0.96 million, which however is lower than the €1.82 million decline in fair value recognised in the previous financial year.

Net finance costs rose by 23.5% to €6.42 million (FY2022/23: €5.2 million) reflecting the increase in borrowings.

The pre-tax profit amounted to €11.3 million (FY2022/23: €4.58 million). After accounting for a tax charge of €3.73 million, AX Real Estate reported a net profit of €7.6 million compared to €0.4 million in the previous financial year.

The Statement of Financial Position as at 31 October 2024 shows that total assets increased by 5.0% (or €15.5 million) to €323.6 million, principally composed of investment property valued at €310.5 million. Total liabilities increased by 8.1% (or €13.9 million) to €186.5 million driven by an increase of €13.5 million in total debt to €153.0 million. Total equity increased by 1.2% (or €1.6 million) to €137.2 million which translates into a net asset value per share of €0.500 (31 October 2023: €0.494).

Dividend

The Directors declared their intention to distribute a gross final dividend of €0.008424 per share to be paid on 14 May 2025 to all shareholders as at the close of trading on 25 April 2025.

Update on Projects

The Directors noted that the Group completed the construction of the Verdala hotel in Rabat and finishing works are progressing steadily. The Group intends to have the new 5-star wellness hotel in operation by May 2025.