Stivala Group Finance p.l.c.
for the year ended 31 December 2022
The Board of Directors are hereby presenting their annual report together with the audited financial
statements of the Group and the Company for the year ended 31 December 2022.
The principal activity of the Company is to act as a finance and investment company, in particular the
financing or re-financing of the funding requirements of related companies within the Stivala Group.
The principal activities of the Group relate to the property letting, development and hospitality. The
Group owns and leases a number of commercial, r
esidential and office properties. These include
apartments and various hotels namely Bayview Hotel, Blubay Apartments, Blubay Suites, Sliema Hotel
and Azur Hotel, majority of which are situated in Gzira and Sliema.
The Company registered a profit before tax of €31,419,896 during the year ended 31 December 2022 (2021:
loss before tax of €21,182,263).
The Group registered a consolidated profit before tax of €27,035,170 during the year ended 31 December
2022 (2021: €4,395,177).
Given the Group’s and Company’s financing structure and the positive net assets position of the Group
and the Company at the end of the financial year, the Directors consider the Group’s and Company’s
of affairs as at the close of the financial year to be satisfactory.
The Company's revenue amounting to €33,946,032 (2021: €41,142,087) is derived from dividends
receivable from its subsidiary. The major cost of the Company is the bond interest payable amounting to
€2,347,500 (2021: €2,347,500). The Company registered a profit after taxation of €31,425,337 (2021: loss
after taxation of €20,380,454) and as at year end, its total equity amounted to net asset of €674,090 (2021:
net liability of €18,751,247).
The Group's revenue for the year amounts to €28,843,005 (2021: €15,065,293). The main revenue streams
the group are hospitality and rental income. The rental income is slightly higher compared with prior
while a significant 191% increase was noted for the hospitality industry due to lifting of covid-
19
restrictions. After deducting the main expenses being the cost of sales and distribution costs related to
hospitality as well as administrative expense
s, the Group registered an operating profit of €14,212,498
(2021: incurred an operating loss of €1,178,984).
On the other hand, the increase in the Group's total comprehensive income for the year is primarily due to
increasing change in fair value of investment property and property, plant and equipment.
In prior year, the directors assessed the valuation of their properties at year end as part of the annual
reassessment based on the market values of similar properties around the area. In current year, the Group
commissioned RS Design Associates to carry o
ut a valuation exercise of the properties owned by the
Group which are pledged to secure borrowings. This has resulted in the reporting of a change in fair
of investment property and property plant and equipment of €8,389,602 and €4,381,777, net of deferred
tax in the statement of profit or loss and other comprehensive income, respectively. The directors
that the fair values of the remaining properties approximate their carrying amounts.