AX Group has recorded a 91.3 per cent surge in revenue for the six months ended 30th April 2024, largely driven by its hospitality segment, particularly the launch of AX ODYCY in Qawra.
This was highlighted in the group’s half-yearly financial report, released on Wednesday after it was approved by the Board of Directors.
AX Group is a diversified business that is engaged in a number of business sectors, namely hospitality, healthcare, construction, real estate and development, as well as renewable energy. It is made up of 25 companies that own, operate, and manage property for its businesses and for rental and investment purposes.
During the reporting period, AX Group recorded total revenue of €30.7 million, representing an increase of €14.7 million over the same period last year (€16.1 million).
This increase in income was primarily fuelled by the performance of its hospitality division, with revenue increasing by €10.6 million in this area when compared to 2023. A key contributor to this is the performance of AX ODYCY, formerly Seashells Resort at Suncrest, which opened in May 2023.
AX Group’s Directors stated that all of the group’s hotels “have exceeded their projected revenues and profits,” with management anticipating that this positive trend will continue throughout the rest of 2024.
The group’s healthcare division registered a 7.6 per cent increase in revenue over the same period in 2023, while the construction segment nearly tripled its revenue from third-party work when compared to last year, reaching €5 million during the reporting period.
However, increased business activity prompted operating costs to also surge upwards to €12.7 million (April 2023: €6.2 million).
Staff costs, including Directors’ remuneration, were also on the rise, going up by 51.1 per cent to €15.2 million (April 2023: €10 million).
As a result, the group registered an earning before interest, taxes, depreciation, and amortisation (EBITDA) of €2.9 million during the reporting period, a sharp improvement from the negative €0.1 million EBITDA recorded in the same period last year.
Net finance costs for the reporting period amounted to €3.3 million (April 2023: €2.2 million). These primarily include interest on debt securities in issue and bank borrowings. AX Group’s Directors stated that the increase from the previous reporting period partially represents the interest on the loan to complete the extension of the AX ODYCY hotel and redevelopment of the lido in Qawra.
Despite this improved performance, AX Group still recorded a pre-tax loss of €5.8 million during the six months ended 30th April 2024. This was lower than the €6.4 million pre-tax loss in the same period in 2023.
The Directors added that works on the Verdala project in Rabat are “progressing steadily,” with finishing works on the residential blocks being underway, while the construction of the hotel was finished earlier this month. The group aims to have the hotel operational by the first quarter of 2025.
As at the end of April 2024, AX Group valued total assets at €482.3 million, an expansion from the €474 million registered at the end of October 2023.
Looking ahead, the group’s management stated that it anticipates the favourable performance observed in the reporting period to continue throughout the rest of the year, largely due to the performance of AX ODYCY.
Management added that the primary focus for the rest of the year is the completion of the residential development at Verdala Terraces and the five-star Verdala Wellness Hotel in Rabat.
