The Mall of Engomi (ME) Plc has reported a robust financial turnaround for the year ended December 31, 2024, recording a profit after tax of €1.13 million, a sharp reversal from the €347,635 loss posted in 2023.

The company’s revenue rose to €4.04 million, up from €3.82 million in the previous year, driven by increased footfall and a strong retail performance among its licensees.

The company, which operates the popular shopping centre in Engomi, Nicosia, maintained its principal activity of granting rights of use for retail and commercial purposes.

According to its management report, 2024 was marked by the introduction of a coworking space, new food licensees, and added entertainment options, all of which contributed to an 18 per cent increase in both turnover and foot traffic.

Operating profit more than doubled, reaching €2.6 million, compared to €1.36 million in 2023.

This improvement included a fair value gain of €232,295 on investment property, a significant turnaround from the €730,240 loss recorded in 2023.

Total assets increased to €45.34 million while net assets climbed to €21.99 million, up from €42.84 million and €21.05 million respectively in 2023.

“Overall, while there are areas of growth and success, limiting vacancies will be pivotal in maximising the Mall’s potential,” the report stated, highlighting the importance of maintaining a diverse and appealing tenant mix.

The company’s liquidity remained sound, with cash at bank and in hand rising to €1.47 million from €568,548 the previous year.

The gearing ratio improved to 47.08 per cent from 48.27 per cent, with net debt slightly reduced to €19.57 million.

The company issued €15.1 million in new share capital in 2024, alongside a €15.2 million reduction in share premium, contributing to a stable equity position.

The report also pointed out that management continued to address key financial risks including interest rate, credit, liquidity, and capital risks.

At the end of the reporting period, the company’s liabilities bearing variable interest rates stood at €21.04 million.

The company said that it does not apply hedge accounting and continues to monitor market interest rates closely.

Credit risk, primarily from licensees, was actively managed. Trade receivables after expected credit losses stood at €149,311, with a total loss allowance of €339,288.

The company noted a dual model for credit risk assessment using both individual and collective evaluation, and reported €187,483 in impairment charges for the year.

Looking ahead, the board of directors stated that no major changes are expected in operations or financial structure.

“The financial position, development and performance of the Company as presented in these financial statements are considered satisfactory,” the board noted.

Moreover, the board did not propose the payment of a dividend.

The financial statements were approved on April 23, 2025, and signed by directors John George Mavrokordatos and Martin Olivier.

Finally, the report mentioned that although the macroeconomic environment remains uncertain due to global tensions such as the Russia-Ukraine conflict, the directors affirmed the mall’s outlook and going concern status remain unaffected.