Plaza Centres Plc

Earnings Release • Jul 8, 2016

Company Announcement

Approval of Half Yearly Report

Date of announcement 8 July 2016 Reference PZC141/2016 In terms of Chapter 5 of the Listing Rules

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 considered and approved the Company's Unaudited Financial Statements for the six months ending 30 June 2016. The Half Yearly Unaudited Financial Statements are being attached herewith.

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

UNQUOTE

Lionel A.Lapira Company Secretary 8 July 2016

Half-Yearly Report for the period ended 30 June 2016

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 company's unaudited financial statements for the six months ended 30 June 2016. 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 2015. This Half-Yearly Report has not been audited nor reviewed by the company's independent auditors.

Interim Directors' Report

The Directors have the pleasure of reporting the company's financial results for the six months ending 30 June 2016.

Revenue for the period was €1,267,385 (2015: €1,226,458), whilst profit before tax amounted to €818,702 (2015: €776,928). Profit after tax increased by 6.4% to €519,573 (2015: €488,314). Occupancy at 30 June 2016 was 99% (2015: 93%) and similar occupancy levels are expected in the third and fourth quarters of the year.

As announced in a May 2016 Company Announcement, Plaza Centres p.l.c. signed a preliminary agreement for the acquisition of commercial real estate in Sliema, Malta. Commitments paid with respect to this agreement are reflected within "Other current assets" in the Condensed Statement of Financial Position. This investment consists of circa 3,288 s.m. of commercial premises including 100 car spaces. The preliminary agreement is subject to a number of conditions precedent that need to be satisfied before closing. If all conditions are satisfied the preliminary agreement is scheduled to close on or around 31 October 2016. In view of this preliminary agreement the Company engaged an independent professionally qualified valuer to assess the value of the property of Plaza Centres p.l.c. The value included in the Statement of Financial Position is at the lower end of the range estimated by the architect.

The Company's costs were maintained at satisfactory levels and the 2016 cost to income ratio decreased slightly to 31.0% (2015: 31.5%).

The Directors do not anticipate a significant change in the performance of Plaza Centres p.l.c. 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 (2015: Nil).

Condensed Statement of Financial Position

	As at	As at
	30 June 2016	31 December 2015
ASSETS	€	€
Non current assets - Property, plant and equipment	31,929,252	31,952,944
Current assets	241,141	318,349
Other current assets	545,875	-
Total assets	32,716,268	32,271,293
EQUITY AND LIABILITIES
Capital and reserves	24,401,806	24,667,074
Non-current liabilities	5,190,266	5,382,995
Current liabilities	3,124,196	2,221,224
Total liabilities	8,314,462	7,604,219
Total equity and liabilities	32,716,268	32,271,293

Condensed Income Statement

	Six months ended
	30 June 2016	30 June 2015
	€	€
Revenue	1,267,385	1,226,458
Marketing, maintenance and administrative costs	(221,436)	(209,207)
	1,045,949	1,017,251
Depreciation	(171,418)	(177,130)
	874,531	840,121
	(55,829)	(63,193)
	818,702	776,928
Tax expense	(299,129)	(288,614)
	591,573	488,314
Earnings per share (cents)	1c 8	1c 7

Condensed Statement of Changes In Equity

				Total
				€
				23,793,318
-	-	594,318	493,938	1,088,256
-	-	-	(757,631)	(757,631)
5,648,400	3,094,868	13,997,978	1,382,697	24,123,943
5,648,400	3,094,868	14,012,908	1,910,898	24,667,074
-	-	18,246	525,198	543,444
-	-	-	(808,712)	(808,712)
5,648,400	3,094,868	14,031,154	1,627,384	24,401,806
	Share capital € 5,648,400	Share premium account € 3,094,868	Revaluation reserve € 13,403,660	Retained earnings € 1,646,390

Condensed Statement of Cash Flows

	Six months ended
	30 June 2016	30 June 2015
	€	€
	1,127,168	964,777
	(693,601)	(145,648)
	(949,428)	(898,347)
Net movement in cash and cash equivalents	(515,861)	(79,218)
Cash and cash equivalents at beginning of interim period	(1,132,698)	(1,236,078)
Cash and cash equivalents at end of interim period	(1,648,559)	(1,315,296)

Statement Pursuant to Listing Rule 5.75.3 issued by the Listing Authority

1. The condensed interim financial information gives a true and fair view of the financial position of the company as at 30 June 2016, 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.