Subsequent to Tigne Mall plc company announcement TML 76/2020, dated 23 March, in the light of the COVID-19 pandemic, The Point Shopping Mall closed for business between the 23 March and 3 May, in line with the directions given by the National Health Authorities to non-essential retailers.
As expected, these developments have had a significant impact on the company’s operations during the first six months of 2020 and on the financial results registered during the period, with material adverse impacts on the profitability, cash flows and the financial position of the company.
During the period under review, the company registered a profit after tax of €197,712 (30 June 2019: €1,193,424), a decrease of 83%.
The result for the first six months, when compared to the corresponding period in 2019, was mainly impacted by lower rental revenue as a consequence of tenant support initiatives and a decrease in revenue from the operation of the car park.
The company’s principal activity, which is unchanged since last year, is the ownership and management of ‘The Point Shopping Mall’ and its car park.
Review of the business
The company’s annual financial statements for the year ended 31 December 2019 had been approved by the company’s Board of directors on 20 April and authorized for issue on that same date. Hence the 2019 Annual report and financial statements had been posted on the company’s website www.thepointmalta.com.
However, the Annual General Meeting of the company, at which meeting the financial statements for the year ended 31 December 2019 are laid before the company for approval by the shareholders, had to be postponed in view of the COVID-19 implications. The Annual General Meeting shall be held remotely on 9 September.
The Board notes that the lifting of the main COVID-19 restrictions with respect to retail and catering outlets has led to a positive impact on the business. Nevertheless, economic activity in general and consumer confidence remain somewhat muted. This trend is expected to persist to some extent until a cure and / or vaccine for coronavirus is made available.
In the prevailing volatility, the Board continues to monitor the situation on an on-going basis and is actively working to ensure that the company retains as robust a financial position as possible in these unprecedented times. Consequently, the Board of Directors does not recommend payment of an interim dividend.
As disclosed further in Note 5 to these condensed financial statements, in the process of preparing these financial statements, the company’s management team has revised and updated the financial projections for the year ending 31 December 2020, which had been prepared ahead of the approval of the 31 December 2019 annual report and financial statements.
These projections, comprise historical financial information up to the date of authorisation for issue of these condensed financial statements and forecast financial information for the residual period, incorporating the impact of the events referred to above on the projected financial results, cash flows and financial position of the company.
Based on the outcome of these cash flow projections, the Directors consider the going concern assumption in the preparation of the company’s interim condensed financial statements as TIGNÉ MALL plc continued appropriate as at the date of authorisation for issue of these financial statements.
They also believe that no material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern exists as at that date.