VBL plc announces strong interim financial results, following growth in revenues and realised development plans

Last Updated on Tuesday, 29 August, 2023 at 11:30 am by Andre Camilleri

VBL Group has announced its Interim Directors’ Report and Interim (unaudited) Consolidated Financial Statements for the period up to 30th June 2023 (1H2023).  The report confirms the continued year-on-year growth as a result of significant operational improvements, in line with earlier company projections.  The published results yet again reaffirm the strong foundations of the Company and the successful implementation of its declared strategic development plans and long-term growth strategy.

VBL Group – the Valletta focused investment company – has released its interim financial results for the period from 1st January 2023 to 30th June 2023. The interim report shows significant improvement in hospitality operational performance compared to the same period of the previous year, reflecting the general market conditions and the Company’s advancing operational achievements.

Overall, the Group’s operations in the hospitality segment benefited from the significantly improved tourism industry performance. The continuously improving general market conditions are reflected in VBL Group’s results, with the hospitality business unit showing a continuous improvement over the past few years in all major hospitality KPIs – incl. occupancy levels, GOP levels per available unit, which is leading to significantly higher revenues and thus increasing the profitability at Group level.  The Group delivered record first quarter results, whilst second quarter has seen improvements on all internal KPIs previously achieved.

In the reporting period, VBL Group, has registered consolidated revenues of €1,465,918 (compared to 1H2022: €894,884), reflecting an increase of 64% on the previous year’s comparative period, and achieved EBITDA of €531,526 (1H2022: €47,907).  The operational EBITDA has increased close to 3-fold from the respective period of the previous year.  Fighting high inflation pressure in operational expenses through strict cost control; various cost efficiency measures and operational expense reduction remain key priorities of the Group.

The presented interim financial results are excluding any expected positive effects arising from revaluation of the Groups significant Valletta based property portfolio, gained from achieved and realized regeneration projects and renovations, which are carried out annually as ordinary course of business.  Revaluation of property assets will be reflected within annual audited accounts at year end.  Period investment income reflected is resulting from new acquisitions or additions.

Group CEO, Dr. Geza Szephalmi commented “Regeneration of dilapidated old buildings in a city like Valletta, Malta’s capital, comes with a myriad of small details which can lead to delays.  Over the past decade we have dealt with all the uncertainties successfully.  These recent financial results are testament to a successful strategy and a strong professional Team behind the implementation of that strategy. We expect the Group to keep on delivering strong performances as we increase our operational portfolio.  Whereas in the short-term some delays can be expected in view of the nature of our assets, in the mid-term we always expect creases to even out.”

The VBL Group remains focused on implementing its defined strategy and maintain its dynamic growth within the Valletta property market, by delivering on its renovation and regeneration plans. The Group is currently steadily converting its significant undeveloped Valletta portfolio into revenue generating assets, in order to improve free cashflow and continue the track record of increased yearly dividend distribution to its shareholders.

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