More losses at Shoreline as financial squeeze intensifies

Shoreline Mall recorded another €1.3 million loss in its latest financial year, while operating cash generation fell short of bond interest payments and investors agreed to wait another two years for their €14 million repayment.

The accounts for the year ended 30 June 2026, approved a few days ago, show continued reliance on group financing, limited unrestricted cash and a higher interest burden following the bond extension.

Although rental income increased, Shoreline generated €1.28 million in operating cash before bond interest, against €1.73 million in bond interest paid. That left a shortfall of approximately €452,000 before capital expenditure.

Related-party financing supplied €1.32 million during the year.

The balance sheet reports €1.16 million in cash and cash equivalents, but €1.02 million was restricted at the Maltese courts under a garnishee order. Only €135,404 remained unrestricted.

The disclosures follow The Shift’s reporting in July on investors’ approval to postpone the bond redemption from August 2026 to August 2028, amid conflicting explanations from Shoreline and contractor Koray Global Malta over the company’s financing difficulties.

The extension increased the coupon from 4% to 6.5%, raising total annual bond interest by €350,000 to €2 million while both issues remain outstanding.

The accounts also show improvements in trading.

Rental income rose 15% to €3.4 million and operating profit increased from €56,453 to €478,016.

The pre-tax loss narrowed to €1.2 million.

However, the after-tax loss widened from €1 million to €1.3 million, with the comparison affected by a substantial tax credit in 2025.

The accounts disclose a €51 million arbitration claim by Koray and a related €43 million garnishee order encompassing Shoreline Mall and other group companies.

The Shift previously reported that the court rejected Shoreline’s attempt to replace the order with property security.

The auditors issued an unmodified opinion, identifying litigation, going concern and property valuation as key audit matters.