Bortex Group Holdings Company Limited on Thursday announced that it recorded €2.4 million in profit before tax during the year ended 31st October 2023 (FY 2023), a 24.8 per cent increase from the figure from the previous year (€1.9 million).
Bortex Group, while widely known for the manufacture, sale, and retailing of menswear and ladieswear, also operates Hotel 1926 in Sliema and Palazzo Jean Parisot Boutique Suites in Valletta. The group is also involved in real estate development and management. Bortex Group Holdings is primarily tasked with acting as a holding entity for the group.
During the reporting year, the group registered €22.7 million in revenue, 4.7 per cent less than the €23.9 million that it brought in during FY 2022. Retail accounted for the majority of the revenue (54 per cent), closely followed by accommodation (32 per cent) and wholesale (11.2 per cent). The remaining income was attributed to the sale of property developed and other sources of revenue. The largest year-on-year increase came in accommodation, going up by 28.8 per cent from FY 2022.
While the group recorded a drop in revenue, it managed to cut down cost of sales from €13.9 million to €12.6 million, resulting in a gross profit of €10.2 million in FY 2023, marginally higher than in the previous year (€10 million).
Selling expenses and other direct expenses amounted to €4.9 million, slightly higher than the €4.6 million registered in FY 2022. Administrative expenses remained relatively stable at €2.6 million.
Other operating income, primarily tied to rental income from owned property, together with gains from fair value of investment property, shot up from €354,294 in FY 2022 to €1.1 million in the reporting period.
Bortex Group Holdings also incurred €1.3 million in finance costs, marginally higher than the amount recorded in the previous year (€1.1 million).
Over the course of the year, Bortex Group continued to consolidate its private label manufacturing operations with a focus on selected third-party clients together with its continued emphasis on developing its own Gagliardi label business, also expanding its corporate, hire, and school wear divisions. The Board of Directors stated that sales in these divisions “exceeded budget expectations,” yet retail sales fell behind budget projections, mainly due to the Mosta outlet being closed for 11 months for redevelopment. The project was completed and was opened to the public last September, with the 11 overlying apartments being available to let from January 2024.
The group’s total rooms revenue from 1926 Le Soleil amounted to €6 million, significantly higher than the €4.6 million recorded in FY 2022, with average occupancy sitting at 88 per cent (FY 2022: 74 per cent) and an average daily rate of €126.06 (FY 2022: €116.26).
As at the end of October 2023, Bortex Group Holdings’ total assets amounted to €80.7 million, expanding by 19.1 per cent from the previous year (€67.8 million).
On 29th February 2024, the same day that the Annual Report was published, the shareholders of the company approved to pay the Executive Directors of the group a performance bonus amounting to €181,655. On that same date, the Directors approved an interim dividend of €807,357.
Looking ahead, Bortex Group Holdings anticipates improved sales densities, efficiencies, and margins within its retail division. It will also be commencing the expansion of its hotel portfolio by initiating the construction of a new hotel directly opposite 1926 Le Soleil in Sliema, as well as another small hotel in Valletta. The Directors project the Sliema hotel to be completed by mid-2025, while operations for the Valletta hotel are expected to begin at the start of the next financial year.
