Malta-based international retailer and distributor Hudson Holdings Group has released its financial results for its Hudson Malta Group, the Malta retail arm of the Group, for the first half of 2021, showing an increase in revenue of €4 million on the same period last year to €16 million, from €12 million.

Gross profit was also up, increasing more than €1 million on the same period last year, from €3,455,068 to €4,460,099.

Despite the improved figures, the group still recorded a net loss of €404,750 during the period, and is projecting an overall loss for the rest of this year.

A key reason for this was the pandemic, it said, which “continues to impact the group’s revenue streams, its supply chain and the way it does business in general.”

As a result of this, its outlets experienced lower footfall and the group faced enforced store closures.

Additionally, the company’s increased gross income was partially offset by higher operating costs which Hudson Malta mostly credits to lower rent support, higher provisions on inventory, and higher operating costs.

The group’s asset balance remained strong, with net assets totaling €44 million, representing an increase on the €43 million recorded at the end of last year. Current assets exceeded current liabilities by €5.7 million.

During the period under review, Hudson Malta Group entered into a conditional share-for-share exchange agreement to acquire Trilogy Ltd, a leading premium fashion retailer in Malta.

This is subject to the fulfillment of certain conditions, and upon their completion, an intra-group restructuring is set to be carried out, whereby Trilogy Ltd will become a fully owned subsidiary of Hudson Malta.

The group expects that once the acquisition is complete, its position as “Malta’s leading sport and fashion retailer” will be consolidated. Additionally, it expects the purchase to positively contribute to its profitability despite the current negative impact of COVID.