Tigne Mall plc saw improved profits and a surge in revenue for the financial year 2022. Releasing its annual figures for 2022, the company shared that it ended the year with profits after tax of €3.8 million compared to 2021’s €2.8 million.

Tigne Mall is the company that owns and manages The Point Shopping Mall and its car park. Like other retailers around the world, COVID-19 had a significant impact on its ability to do business and welcome shoppers.

2022 was the first full year where local retailers worked without disruption, and indeed, the company said it “has generally been a good year for the business”.

“Unlike previous years, the centre operated uninterruptedly for the entire year and the effects of the COVID-19 pandemic started to wane. Consumer demand gained momentum and incoming tourism numbers recovered well and quickly.

“Logistical issues in retail have largely been ironed out and retailers received adequate stocks in good time once again. Managing human resources seems to have been the key challenge for the retail industry during the period under review,” the company explained.

During 2022, Tigne Mall’s revenues amounted to €8.2 million, an increase of 22 per cent over the previous year, and operating profits increased to €5.2 million (2021: €4.2 million).

Earnings before interest, tax and depreciation increased to €7.3 million (2021: €6.1 million).

Finance costs decreased to €0.5 million (2021: €0.6 million); of which €0.1 million relates to the interest charged to profit or loss on the lease liability, which represents the present value of the remaining lease payments over the emphyteutical term, in line with the terms of IFRS 16.

In line with previous years, the company opted to be taxed at a final withholding tax rate of 15 per cent on its rental income. It consequently incurred an effective tax expense of €1.2 million (2021: €1million).

In 2022, the company generated €7.5 million by way of cash flow from operating activities. It shared that this was mainly used to repay bank borrowings, pay dividends, ongoing capital expenditure and the servicing of working capital requirements.

In a review of the business, the company said it is proud that the mall welcomed two “important new key tenants” in 2022, SPAR and Mavenry. The former replaced Chain food store following a period of upgrading and refurbishment.

According to the company, the Italian franchise, SPAR, has been received particularly well by the customer base at The Point and its performance has been encouraging.

Mavenry now occupies the space previously taken up by Debenhams, the British retail giant which “anchored” The Point’s business in its early stages and to whom it bade “a sad farewell” in the previous year.

Mavenry is a totally new concept for the centre and marks its debut into the premium-to-luxury segment of the retail market which hitherto, has been underserved in Malta.

“No expense has been spared in the refurbishment of these outlets and we believe that this investment continues to strengthen the brand mix at The Point, increasing its appeal as the retail destination of choice for a far wider audience.”

As part of the review, the company shared that its senior management has compiled financial projections for the year ending 31st December 2023, comprising historical financial information. “These cash flow projections show that the Company is expected to continue having sufficient liquidity and financial resources to meet its ongoing obligations and expected cash outflows.”

As at 31st December 2022, the company’s current liabilities exceeded its current assets by €0.9 million (2021: €0.5 million)

As for dividends, during 2022 a net interim dividend of €750,000 (2021: €378,929) and a final net dividend of €750,000 were distributed to the shareholders (2021: €nil). Subsequent to the end of the reporting period, the Directors recommend the payment of a final net dividend of €765,000 in relation to the 2022 financial result.