VBL plc has reported a strong set of audited financial results for the year ended 31st December 2025, describing the period as a “landmark year” marked by robust growth, disciplined execution, and continued strategic progress.

The Valletta-focused investment vehicle, listed on the Malta Stock Exchange under the ticker VBL, registered a 15 per cent increase in revenue to €4.69 million, reflecting sustained momentum in its core real estate and hospitality activities.

Operational performance improved markedly, with Operational EBITDA surging by 49 per cent to €1.73 million, up from €1.16 million in the previous year, and more than three times the €0.53 million recorded in 2023.

This translated into a significant expansion in the operational EBITDA margin to 37 per cent, compared to 29 per cent in 2024, highlighting improved efficiency across the group’s operations.

Despite ongoing global economic uncertainty, inflationary pressures, and labour market constraints, VBL maintained focus on its long-term strategy. The group continued to advance its renovation and development pipeline while expanding its hospitality footprint in Valletta, reinforcing the VBL Group’s position within its core market while laying the groundwork for sustained long-term growth.

A key highlight of the year was the continued progress on the VBL Group’s flagship development project, the Silver Horse Block Phase 2.

“With full development permits and tourism compliance certification successfully secured, this landmark 88-room four-star hotel represents a major milestone and is set to introduce the first international hotel brand in Valletta upon completion and handover to its contracted tenant – The Ruby Hotels - in the second half of 2026,” said VBL.

The Silver Horse hotel is projected to add around €2-2.25 million in operational earnings – providing a notable boost to future revenues.

VBL’s development pipeline remains central to its growth strategy. While only around 30 per cent of its owned assets are currently operational, the company said ongoing projects are steadily converting underutilised properties into income-generating assets, positioning the group for long-term value creation.

Financial discipline also remained a cornerstone of the company’s approach. With a conservative leverage ratio of approximately 28 per cent, VBL maintained a solid balance sheet while efficiently deploying financing facilities to support growth. Total liabilities and borrowings came in below projections, reflecting prudent capital management.

The group outperformed expectations across several key financial metrics, including higher investment income (+21 per cent), lower cost of sales (-17 per cent), stronger gross profit (+29 per cent), increased EBITDA (+37 per cent), and a 47 per cent improvement in profit before tax compared to projections.

“These results highlight the effectiveness of management’s strategic decisions, operational efficiencies, and favourable market conditions during the year.”

Shareholder returns were also maintained, with gross dividends rising to €220,000 from €200,000 in 2024, while VBL’s retained earnings position was further strengthened to nearly €17.9 million.

“With a strong financial foundation, a growing portfolio of high-quality assets and a clear strategic focus, the VBL Group is exceptionally well positioned for the future,” said the company.

“The completion of key planned development projects is expected to unlock significant value and drive further growth in both revenues and profitability.”