Plaza Centres Plc

Earnings Release • Jul 19, 2017

Plaza Centres p.l.c. The Plaza Commercial Centre Bisazza Street Sliema SLM1640 Malta

(00856) 2134 3832/3/4 (00356) 2134 3830 E-mail: info@plazamalta.com Web www.plaza-shopping.com Co. Reg. No. C. 564 VAT No. MT 10030232

Company Announcement

Approval of Half-Yearly Report

Date of announcement

Reference

In terms of Chapter 5 of the Listing Rules

19 July 2017 PZC152/2017

The following is a Company Announcement issued by Plaza Centres plc (The Company") pursuant to the Malta Financial Services Authority Listing Rules:

QUOTE

The Board of Directors of Plaza Centres p.l.c. have approved the Group's Unaudited Financial Statements for the six months ended 30 June 2017. The Condensed Half-Yearly Unaudited Financial Statements are being attached herewith.

In line with Group policy, the Board of Directors does not propose the payment of an interim dividend.

UNQUOTE

Lionel A.Lapira Company Secretary 19 July 2017

Half-Yearly Report for the period ended 30 June 2017

The following Half-Yearly Report is being published pursuant to the terms of Chapter 5 of the Malta Financial Services Authority Listing Rules. The condensed interim financial information has been extracted from the group's unaudited financial statements for the six months ended 30 June 2017. The financial information has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union. The accounting policies used in the preparation of the Half-Yearly Report are consistent with those used in the annual financial statements for the year ended 31 December 2016. This Half-Yearly Report has not been audited nor reviewed by the group's independent auditors.

The Directors have the pleasure of reporting the group's financial results for the six months ending 30 June 2017.

Principal activities

The Group's principal activity, which is unchanged since last year, is to lease, manage and market its Shopping and Commercial Centres. Up to June 2016, the Group only operated The Plaza Shopping and Commercial Centre (owned by the Parent Company), but in September 2016, the Group acquired the Tigne Place Commercial Property (through the company's newly formed subsidiary Tigne Place Limited).

Group Financial results

The Group's revenue for the period was €1,478,723 (2016: €1,267,385) an increase of 16.7%, whilst EBIDTA increased by 16.9% to €1,223,193 (2016: €1,045,949). Profit before tax decreased by 2.4% to €798,860 (2016: €818,702) mainly due to the increase in finance costs attributed to the loan and bond interest to finance the investment in Tigne Place. Profit after tax increased by 16.4% to €604,668 (2016: €519,573) as a result of the fact that the Company is benefitting from a revised and more beneficial tax regime. The Group and Company occupancy at 30 June 2017 was 93% (2016: 99%) similar occupancy levels are expected in the third and fourth quarters of the year as the Group continues to enhance its retail mix. The Group's costs were maintained at satisfactory levels and the 2017 cost to income ratio increased slightly to 32.9% (2016: 31.0%).

During the period under review the Group continued to explore the market for further investment opportunities. The refurbishment of Tigne Place is moving according to schedule and the major work should be completed before the end of 2017. The refurbishment and the renegotiation of new lease agreements has led to lower occupancy levels at Tigne Place and this had an impact on the group financial results. The Parent Company is also considering to carry out a refurbishment at the Shopping Centre.

The Directors do not anticipate a significant change in the group's performance in the next six months, although they remain alert to external market factors.

The Board of Directors does not recommend the payment of an interim dividend (2016: Nil).

	As at 30 June 2017	As at 31 December 2016	As at 30 June 2017	As at 31 December 2016
		Group		Company
ASSETS			€
Non current assets - property, plant and equipment	42,733,134	42,667,266	32,932,048	33,000,000
Other non-current assets	87,100		5,287,291	5,163,754
Current assets	609,484	756,927	581,207	721,192
Total assets	43,429,718	43,424,193	38,800,546	38,884,946
EQUITY AND LIABILITIES
Capital and reserves	25,977,547	26,180,082	26,001,345	26,199,228
Non-current liabilities	15,780,924	16,000,181	11,965,808	11,997,036
Current liabilities	1,671,247	1,243,930	833,393	688,682
Total liabilities	17,452,171	17,244,111	12,799,201	12,685,718
Total equity and liabilities	43,429,718	43,424,193	38,800,546	38,884,946

		Six months ended 30 June
	2017	2016	2017	2016
		Group		Company
Revenue Marketing, maintenance and administrative costs	1,478,723 (255,530)	1,267,385 (221,436)	1,215,409 (226,790)	1,267,385 (221,436)
Operating profit before depreciation Depreciation	1,223,193 (230,830)	1,045,949 (171,418)	988,619 (173,916)	1,045,949 (171,418)
Operating profit Investments and other related income Net finance costs	992,363 37,276 (230,779)	874,531 (55,829)	814,703 37,276 (64,503)	874,531 (55,829)
Profit before tax Tax expense	798,860 (194,192)	818,702 (299,129)	787,476 (178,156)	818,702 (299,129)
Profit for the year	604,668	519,573	609,320	519,573
Earnings per share (cents)	2c1	1c8

A SUL IS A L A S A L L A L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L . L . L . L
Group	Share capital ਵ	Share premium ਵ	Revaluation reserve ਵ	Retained earnings e	Total Equity ೯
Balance at 1 January 2016	5,648,400	3,094,868	14,012,908	1,910,898	24,667,074
Total comprehensive income for the interim period			18,246	525,198	543,444
Dividends relating to 2015				(808,712)	(808,712)
Balance at 30 June 2016	5,648,400	3,094,868	14,031,154	1,627,384	24,401,806
Balance at 1 January 2017	5,648,400	3,094,868	15,056,600	2,380,214	26,180,082
Total comprehensive income for the interim period			16,823	610,292	627,115
Dividends relating to 2016				(829,650)	(829,650)
Balance at 30 June 2017	5,648,400	3,094,868	15,073,423	2,160,856	25,977,547
Company	Share capital C	Share premium €	Revaluation reserve ਵ	Retained earnings 6	Tota Equity e
Balance at 1 January 2016	5,648,400	3,094,868	14,012,908	1,910,898	24,667,074
Total comprehensive income for the interim period			18,246	525,198	543,444
Dividends relating to 2015				(808,712)	(808,712)
Balance at 30 June 2016	5,648,400	3,094,868	14,031,154	1,627,384	24,401,806
Balance at 1 January 2017	5,648,400	3,094,868	15,056,600	2,399,360	26,199,228
Total comprehensive income for the interim period			16,823	614,944	631,767
Dividends relating to 2016				(829,650)	(829,650)
Balance at 30 June 2017	5,648,400	3,094,868	15,073,423	2,184,654	26,001,345

		Condensed Statements of Cash Flows

		Six months ended 30 June
	2017	2016	2017	2016
	Group		Company
Net cash generated from operating activities	1,234,168	1,127,168	885,025	1,127,168
Net cash used in investing activities	(346,522)	(693,601)	(192,225)	(693.601
Net cash used in financing activities	(914.867)	(949.428)	(829.650)	(949,428
Net movement in cash and cash equivalents	(27,221)	(515.861)	(136,850)	(515.861
Cash and cash equivalents at beginning of interim	265,644	(1,132,698)	210,523	1.132.698
Cash and cash equivalents at end of year	238,423	(1,648,559)	73.673	1,648,559

1. The condensed interim financial information gives a true and fair view of the financial position of the group as at 30 June 2017, and of its financial performance and cash flows for the period then ended in accordance with International Financial Reporting Standards as adopted by the European Union applicable to 'Interim Financial Reporting' (IAS 34);

2. The Interim Directors' Report includes a fair review of the information required in terms of Listing Rules 5.81 to 5.84.