Shoreline Mall plc has registered an operating profit of €1.37 million for the second half of 2025, a 22 per cent increase over the same period of the previous year mainly driven by stronger retail sales experienced by its tenants.

Despite the positive operational result, finance costs (€871,000) and depreciation (€946,000) resulted in a pre-tax loss of €444,000 for the listed company – an improvement on the €663,000 loss registered in the second half of 2024.

The other major component of Shoreline Mall’s income – a number of residential villas – has not yet come online due to persistent delays and ongoing legal disputes with contractors.

In its interim financial statements, the company said “it is not currently feasible to determine the likely outcome of the case.”

Additionally, while “management acknowledges the possibility of an economic outflow arising from this matter, it has concluded that at this stage, it is not feasible to quantity a contingent liability.”

Shoreline Mall has a €14 million bond issue set to mature on 1st August 2026, bringing current liabilities to €33.6 million.

With current assets of €9.4 million, largely composed of inventories under construction (€6.1 million), the company is not in a position to repay the bond from its own funds,

Refinancing or alternative funding arrangements would be finalised closer to the maturity date, said its directors.

“Regardless of this, the company’s ultimate parent has committed the required funding to repay the maturing bonds should none of the other financing options realise in time.”

Operationally, Shoreline Mall said it is expected to strengthen its market presence in the southern region of the island through continued growth in footfall.

“This is anticipated to be supported by planned events and by the phased completion and occupation of the Shoreline residential component, as both the long-term and short-term residents take up the apartments. In addition, the closure of nearby shopping facilities within the locality is expected to further redirect footfall to the Shoreline Mall.”