The profit for the year, after a taxation charge €316,000, amounted to €775,000. Rental income from entities considered as related by virtue of the common shareholding is being accounted for at the ‘normal’ rates of 35% rather than the more beneficial 15% final withholding tax otherwise applied to rental income. Further discussions are underway with our advisers on how we can also benefit from this reduced rate.
The principal activity currently being undertaken by the Group, as outlined in the CEO’s report, is that of the Trident Park project which commenced in May 2018. The project comprises the conversion of the existing Old Brewery façade along Mdina Road into a green office campus housing some 15,000 sq metres of international Grade A office accommodation as well as an abovethe-ground car park, food and beverage amenities, gym and conference facilities. As announced last year and further highlighted by the CEO in his report, this substantial investment is projected to reach the highest environmental standards and attain the BREEAM Excellent certification.
As the CEO outlines in his report, works to date are on target and within budget and contracts for the civil, mechanical and electrical and finishes packages have all been awarded within our forecast estimates.
The project is targeted to welcome its first tenants in the first quarter of 2021. Development works are being monitored and the project is being managed by a dedicated team of Trident personnel, backed by professional advisors from both architectural firms engaged by Trident, namely, Ian Ritchie Architects from London and TBA Periti from Malta together with other consultants from both the UK and Malta. The Board of Directors are provided with regular updates on the timeline to project completion and are satisfied that the issues that arise are being tackled and settled in a highly professional manner and in the best interests of the Company.
As already notified in previous company announcements, your Board is committed to a rights issue of €15 million which was initially intended to be raised in two stages. Following further consideration and professional advice, your Board has now decided to apply to the Listing Authority to issue the whole of the amount in one stage in the last quarter of 2019. This is considered to be a more cost-efficient option and avoids the complexities linked with a two-staged issue.
Given the results of our first yearly financial performance and the fact that the project is progressing well, your Board is recommending a dividend of €200,000.
Marketing Trident Park has now started in earnest and interest from prospective tenants has intensified. The feedback received so far has been very positive and the market is appreciative of the strengths of the location and the unique offerings and advantages of Trident Park.
I must thank Charles Xuereb, CEO, who leads a small number of senior executives who are working well as a team and ensuring that there is sufficient focus on the tasks at hand. This much
needed focus has given a secure sense of direction to stakeholders of the project and of the Trident Group. This will help ensure that the decision to spin-off the Simonds Farsons Cisk plc property portfolio into a separately funded and governed entity, has been a correct decision which will enhance shareholder value over the medium to long-term.
The Trident Park project is being undertaken simultaneously with the conversion and rehabilitation of the Old Brewhouse, which is owned and project managed by Simonds Farsons Cisk plc. Clearly, the success of both projects are inter-dependent and strong coordination is needed to ensure that they are completed on schedule and within budget. Again, a careful approach is needed to manage the relationship and ensure that an arms-length principle is adopted by both parties in the interests of both sets of shareholders. In this regard, each of the respective Boards’ “Related Party Committee” handle any conflicts of interest issues and I am pleased that this is working satisfactorily.
Emphasis in the coming year will also be directed towards the marketing and selling of the space available for rent. Our main selling proposition is the uniqueness of the offering. The open spaces and “campus-like” feel will, we are convinced, make Trident Park a special location.
I should now thank our advisors Mamo TCV, our auditors PricewaterhouseCoopers and our financial intermediary Rizzo Farrugia for their valuable support during the setting up of the Company and during this past year of activity.
Finally, I therefore wish to thank my fellow Directors for their most valid and wise counsel throughout the year. Naturally the future of the Trident Group will be determined by such counsel and by careful management but we have, I believe, got off to a good start and this augurs well for the future.
