Trident Estates : Approval of Interim Results

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by Trident Estates p.l.c. (the "Company") pursuant to Chapter 5 of the Capital Markets Rules as issued by the Malta Financial Services Authority in accordance with the provisions of the Financial Markets Act (Chapter 345 of the Laws of Malta) as they may be amended from time to time.

Quote

Approval of interim results

The Board of Directors of Trident Estates plc (the "Company") has on Wednesday, 22nd September 2021 approved for publication the unaudited financial statements of the Company for the six months ended 31st July 2021.

A copy of these financial statements inclusive of the Interim Directors' Report as approved is attached herewith and is available to the public on http://tridentestatesplc.com/financial-information/.

Unquote

Kenneth C. Pullicino

Company Secretary

22nd September 2021

Company Registration Number: C27157

Trident Estates p.l.c.

Condensed Consolidated Interim Financial Statements

for the period ended 31 July 2021

Trident Estates p.l.c. Condensed consolidated interim financial statements for the period ended 31 July 2021

Table of Contents

Interim Directors' Report .........................................................................................................................	3
Statement pursuant to Capital Markets Rule 5.75.3 ...............................................................................	4
Condensed Consolidated Statement of Financial position .....................................................................	5
Condensed Consolidated Income Statement .........................................................................................	6
Condensed Consolidated Statement of Changes in Equity....................................................................	7
Condensed Consolidated Statement of Cash flows ...............................................................................	8
Notes to the Condensed Consolidated Interim Financial Statements ....................................................	9

2

Trident Estates p.l.c. Condensed consolidated interim financial statements for the period ended 31 July 2021

Interim Directors' Report

Principal activities

The Group owns and manages property for rental and investment purposes. The current primary focus of the Group is the completion of the Trident Park project as well as the marketing and renting out of the property as it nears completion.

Trading performance

For the first six months ended 31 July 2021, the Group recorded revenue of €544,000 as compared to €562,000 in the same period of the prior year. The decrease in revenue resulted due to the early termination of a lease in January 2021, on which discussions with potential tenants are under way. As a result of the reduction in revenue, gross profit decreased to €506,000 (2020: €525,000).

The Group registered an increase in its administrative costs, which totalled €389,000 (2020: €317,000) for the period. Whilst the day-to-day operational costs have remained stable, the increase in expenses emanates from marketing costs being incurred for the Trident Park project, together with costs which were previously being capitalised during the early construction period and which are now being recognised in the Statement of Profit or Loss.

The Group's tax expense during this period amounted to €54,000 (2020: €122,000). The resulting net loss for the period amounted to €28,000, as compared to a net loss of €5,000 in the prior period.

Trident Park project

The works on the Trident Park site have continued to progress at a steady pace, with the project's completion now within reach. The civil works have been virtually completed, save for certain remaining external works, while the mechanical, electrical and plumbing works are also nearing completion. The finishes of the project are also progressing at an accelerated pace. Inevitably, the pressures caused by the COVID-19 pandemic on the availability of labour and supplies have to a certain extent hindered progress on site, and steps have been taken to mitigate the impact of any delays to the extent possible. It is expected that the project's completion will be attained by the end of this year provided that the current conditions remain unchanged.

During the reporting period, the Group has drawn down on available bank facilities to part fund the capital works. As at the period end, total loan facilities amounted to €28.5 million, from which the amount of €8.8 million had been availed of as at that date.

Trident Park Tenants

The attractions of Trident Park as a premium office location with a difference have been readily appreciated by potential tenants as the project approaches completion. The carefully designed green credentials of the environmentally friendly Office Park campus (and ancillary facilities) provide space, air, natural light, ventilation and gardens together with the variable and flexible space that will be the hallmark of offices in the post-pandemic world. Going forward there is little doubt that safe offices with lesser density per capita will be sought, as will those that are sensitive to the imperative of contributing to the challenge of countering climate-change.

Whereas initial tenant sign up has been satisfactory, the business environment has become noticeably more challenging since the FATF decision to grey list the country. Management has sensed some hesitancy to commit among potential tenants, together with a growing propensity to delay on significant investment decisions and commitments. Management have also noted downward pressure on rates being requested, primarily driven by the increased availability of new space coming on the market and a slowdown in new inward investment flows. It is of course critical that Malta does whatever is required to restore its international financial reputation and credibility as a matter of urgency. In the meantime, the Board and management remain committed to the project and are working tirelessly to secure its full

3

Trident Estates p.l.c. Condensed consolidated interim financial statements for the period ended 31 July 2021

completion to the highest standards, believing that the quality of the project will prevail in what promises to be a challenging economic environment over the short to medium term.

Dividends

The Board does not propose the payment of an interim dividend at this time. The extent of a final dividend distribution, if any, shall be determined on the basis of the full year results.

By order of the Board

Louis A. Farrugia	Vincent Curmi
Chairman	Vice Chairman
Registered office:
Trident Park
Mdina Road, Zone 2
Central Business District
Birkirkara CBD 2010
Malta
22 September 2021

Statement pursuant to Capital Markets Rule 5.75.3 issued by the MFSA

We hereby confirm that to the best of our knowledge:

• The condensed consolidated interim financial information gives a true and fair view of the financial position of the Group as at 31 July 2021, and of its financial performance and cash flows for the period then ended, in accordance with International Financial Reporting Standards as adopted by the EU applicable to interim Financial reporting (IAS 34); and
• The Interim Directors' Report includes a fair review of the information required in terms of
  Capital Markets Rules 5.81 to 5.85.

Louis A. Farrugia	Vincent Curmi
Chairman	Vice Chairman

4