Tigné Mall plc registered €5 million in profit before tax during 2023, four per cent higher than in the previous year (2022: €4.8 million), as the retail industry experienced a period of sustained growth in consumer demand.
The results were published on Monday (today) in the company’s Annual Financial Report and Financial Statements for the financial year ended 31st December 2023.
Tigné Mall plc owns and operates The Point Shopping Mall in Sliema which opened back in 2010, offering a wide array of retail brands to customers.
The company’s Board of Directors stated that the financial year proved to be "very positive" for the business, particularly amid record inbound tourist numbers and an increase in population, prompting sustained growth in demand. While aggregate like-for-like tenant turnover at The Point in 2023 proved to be better than both 2022 and 2019, tenants have “continued to report challenges on the human resources front” during the period.
In terms of financials, Tigné Mall’s revenue surged upwards by 4.2 per cent to €8.5 million (2022: €8.2 million). Revenues from transactions with three tenants each represent more than 10 per cent of the company’s revenues. The company also stated that revenue from the car park operation during 2023 amounted to €404,686, marginally lower than that of 2022 (€414,483).
On the other hand, cost of sales remained largely stable at €2.4 million, with the primary source of this being the depreciation of property, plant and equipment, amounting to €2.1 million. Administrative and other expenses were on the rise, going up from 2022’s €582,097 to €754,525 in 2023.
Tigné Mall’s Directors stated that the introduction of home-improvement retailer Homemate to its offering towards the final few months of 2023 marks an “important milestone” in the shopping centre’s journey. This addition has led to the centre being fully occupied, while also prompting a broader range of customers.
As at the end of 2023, Tigné Mall’s total equity amounted to €61.4 million, expanding by 4.1 per cent from the €59 million reported on 31st December 2022.
During the year, a net interim dividend of €765,000 and a final net dividend of €765,000 were distributed to shareholders. Following the end of the reporting period, the Board of Directors has recommended the payment of a final net dividend of €815,000 tied to the financial results in 2023.
Tigné Mall’s senior management team also compiled financial projections for the year ending 31st December 2024, comprising historical financial information and forecast information for the rest of 2024. These cash flow projections indicate that the company is “expected to continue having sufficient liquidity and financial resources” to meet its ongoing obligations and expected cash outflows, the company stated.
Over the past few months, Malta’s retail landscape has experienced a number of changes, particularly following the opening of Mercury’s Shopping District in St Julian’s in November, as well as The Shoreline Mall in Kalkara last month. These two new shopping destinations have already proven popular with customers, providing a combination of retail and entertainment offerings.
Commenting on these developments, Tigné Mall’s Board of Directors stated that the company’s goal is to maintain The Point’s status as “Malta’s premier shopping mall destination, providing visitors with unparalleled experiences while ensuring sustainable returns for shareholders.”
“As we navigate the evolving market dynamics, our strategy evolves to encompass not only the provision of a compelling retail destination, but also proactive adaptation to emerging trends and competition. This entails further strengthening relationships with tenants, curating an even more iconic mix of brands, and innovating to deliver exceptional long-term growth in net rental income,” it added.
