Central Business Centres plc (CBC) is forecasting a 13.5 per cent revenue increase to €2.72 million for 2025, largely driven by strong performance at its business centres in St Julian's and Żebbuġ (2024: €2.37 million). 

Set up in 2014, Central Business Centres plc (CBC) holds property for investment purposes and generates returns through rental agreements. The group owns business centres in Żebbug, Gudja, St Julians, Valleta and Mrieħel.

Operating expenses are expected to slightly increase in FY25, after administration and management fees, professional fees and insurance decreased by nine per cent to €323,000 in FY24.

Between FY23 and FY24, the company experienced a substantial €350,000 decline in current assets, trade and other receivables –⁠ significantly exceeding the management's earlier forecast of a €109,000 reduction. Looking ahead to FY25, the company anticipates a further decrease of €41,000, bringing the balance down to €12,000.

The group’s liabilities are expected to remain similar year-on-year, meaning that non-current liabilities remain at €40.6 million reported in FY24 and lease liabilities remained at €5 million.

Trade and other payables went up by €2.4 million in FY24, mainly due to a property-related debt. This debt is secured by the property, has no interest until 31 December 2025, and could be extended after that with 6 per cent interest per year.

Net cash from operating activities reached €3.4 million in FY24, with management expecting the figure to decline in FY25, “as working capital normalises.”

Forecasted investment activity is set to slow in FY25, with total spending expected at €451,000, down sharply from €6 million in FY24.

In April 2025, LIDL Malta officially opened a new supermarket at the CBC Zebbug site, following years of delays, which is now fully operational. CBC is also planning to launch the remaining commercial units on the site in the third quarter of 2025.

Separately, in 2021, CBC acquired a property in Valletta and has since initiated a major refurbishment and rebranding project. The initiative includes conversion works and the construction of an additional 2,400 m² across the upper levels. Completion is targeted for 2026.

Bonds repayment

CBC is expected to repay two maturing bonds in 2025: the 5.25% Central Business Centres plc Unsecured 2025 S2T1, and the Zero Coupon Central Business Centres plc Unsecured Callable Notes 2025.

At the same time, the company plans to secure new borrowing of €5.6 million. This is projected to result in a net cash outflow of €627,000.

The 5.25% bond has recorded a spread gain of 333 basis points since issuance and is currently trading at a premium of 164 basis points relative to the market.