icon-grid

Annual report and consolidated financial statements

2021
  • icon-mouse
  • icon-arrow-right

Our Story

AX Group is a diversified Group of companies operating in six key sectors: Construction, Development, Healthcare, Hospitality, Real Estate and Renewable Energy. We strive to deliver on our promise to provide the highest quality for the best possible value.

Founded by Chairman Angelo Xuereb in 1975, AX Group began its existence as a civil engineering firm. In the ensuing decades, the company took steps towards diversification by expanding its business portfolio to include restoration works, hotels, restaurants, care homes, and many other high-quality projects.

icon-bg
icon-bg-stroke

Our Story

In 2018, the Group consolidated its various businesses under the AX brand. AX Group remains a family-run business, with the second generation of the Xuereb family actively involved in driving the company forward by seeking new avenues for growth related to our core activities.

Driven by our family-inspired values, our workforce contributes to the continued success of the Group. Together, our focus is on exceeding client expectations and leaving a positive legacy in the industries we serve.

Our mission

At AX Group we strive to leverage our entrepreneurial skills to deliver high-quality innovative developments. This is achieved by inspiring our people to learn from our past, and to embrace the future with courage and optimism.

our Values

Our values underpin and support everything we do.

Creativity

We harness the creativity and ingenuity of our people to develop new solutions, identify different lines of business, and pursue new opportunities to move the business forward.

Determination

We endeavour to create projects with exceptional quality that exceed client expectations. We seek to remain at the forefront of innovation to inspire growth and progress in the industries we operate in.

Integrity

We deliver on what we promise by operating on a level of transparency and trust. We act ethically in the interest of the environment and communities we work in.

chairman’s
statement

icon-quote

I wish to thank our management who worked so hard in these challenging times to achieve the results we did.

icon-quote
icon-bg
icon-chart

financial
highlights

  • icon-mouse
  • icon-arrow-right
icon-bg

Revenue

60,000
45,000
30,000
15,000
0
FY 2017 45,852,010
FY 2018 56,466,680
FY 2019 51,916,749
FY 2020 28,715,967
FY 2021 35,418,160
Thousands
  • Revenue (€’000)

SEGMENTED REVENUE

0%
25%
50%
75%
100%
2021
Construction works, building materials and management services 18%
Healthcare 16%
Rental income 4%
Hospitality and entertainment 39%
Sale of property and real estate 23%
Dividends receivable 0%
2020
Construction works, building materials and management services 21%
Healthcare 20%
Rental income 4%
Hospitality and entertainment 52%
Sale of property and real estate 3%
Dividends receivable 0%
2019
Construction works, building materials and management services 9%
Healthcare 11%
Rental income 1%
Hospitality and entertainment 74%
Sale of property and real estate 0%
Dividends receivable 5%
2018
Construction works, building materials and management services 15%
Healthcare 8%
Rental income 1%
Hospitality and entertainment 70%
Sale of property and real estate 4%
Dividends receivable 2%
2017
Construction works, building materials and management services 12%
Healthcare 7%
Rental income 1%
Hospitality and entertainment 78%
Sale of property and real estate 0.1%
Dividends receivable 2%
  • Construction works, building materials and management services
  • Healthcare
  • Rental income
  • Hospitality and entertainment
  • Sale of property and real estate
  • Dividends receivable
icon-bg

Ebitda

22,000
16,500
11,000
5,500
0
FY 2017 15,364,451
FY 2018 20,944,011
FY 2019 16,634,324
FY 2020 2,620,189
FY 2021 6,679,819
Thousands
  • Ebitda (€’000)

SEGMENTAL GROSS OPERATING PROFIT

0%
25%
50%
75%
100%
2021
Construction works, building materials and management services 4%
Real estate and rental income 43%
Retirement Residences and nursing home 12%
Hospitality and entertainment 41%
2020
Construction works, building materials and management services 10%
Real estate and rental income 17%
Retirement Residences and nursing home 15%
Hospitality and entertainment 58%
2019
Construction works, building materials and management services 3%
Real estate and rental income 2%
Retirement Residences and nursing home 6%
Hospitality and entertainment 89%
2018
Construction works, building materials and management services 4%
Real estate and rental income 11%
Retirement Residences and nursing home 1%
Hospitality and entertainment 84%
2017
Construction works, building materials and management services 2%
Real estate and rental income 3%
Retirement Residences and nursing home -1%
Hospitality and entertainment 95%
  • Construction works, building materials and management services
  • Real estate and rental income
  • Retirement Residences and nursing home
  • Hospitality and entertainment

TOTAL AND NET ASSETS

360,000
270,000
180,000
90,000
0
FY 2017 284,976,090 172,486,236
FY 2018 332,030,926 223,228,769
FY 2019 351,788,326 239,115,438
FY 2020 348,657,388 217,448,572
FY 2021 374,099,250 237,142,681
Thousands
  • Total Assets (€’000)
  • Net Assets (€’000)

Key accounting ratios

Key Accounting Ratios
2017
2018
2019
2020
2021
Return on Equity
6.8%
13.9%
1.9%
-3.6%
0.6%
Return on capital employed
6.0%
6.9%
5.0%
0.8%
1.9%
Net Debt/EBITDA
5.52x
3.60x
5.02x
39.79x
11.24x
Interest Cover
4.44x
6.97x
5.55x
0.76x
2.49x
Gearing
33.1%
25.3%
26.0%
32.5%
31.0%
icon-bg

Our sectors

01 icon-care
 care-min-03
02 icon-hotel
 hotel-min-02
03 icon-developments
 development-min-02
04 icon-construction
 construction-min
05 icon-careers
 careers-min-02
06 icon-careers
 spit_ver_view-05_low

CEO REview

icon-bg-stroke

CEO REview

icon-quote

The Group, with the full backing of the family and the Board of Directors, looks ahead to dynamic growth, further investment in its core sectors, and to build on its reputation as an employer of choice.

icon-quote

board of directors

Angelo Xuereb

Chairman

Michael Warrington

Director / Chief Executive Officer

Denise Micallef Xuereb

Executive Director Construction and Development

Claire Zammit Xuereb

Executive Director Hospitality and Care

John Soler

Independent Non-Executive Director

Josef Formosa Gauci

Independent Non-Executive Director

Christopher Paris

Independent Non-Executive Director

Edmond Zammit Laferla

Company Secretary

icon-bg

Senior Management team

Michael Warrington

Director / Chief Executive Officer

Denise Micallef Xuereb

Executive Director Construction and Development

Claire Zammit Xuereb

Executive Director Hospitality and Care

Albert Bonello

Chief Financial Officer

Dr. David Wain

Chief Legal Officer

Lawrence Degabriele

Head of Information Technology

Josephine Grima

Head of Human Resources

Kevin Callus

General Manager Sliema and Valletta hospitality properties

Charmaine Montesin

General Manager AX Care

Joseph Vella

General Manager Qawra hospitality properties

Caroline Schembri

Head of Administration

Axi board

Angelo Xuereb

Chairman

Michael Warrington

Executive Director

Chev. Phillip Ransley

Independent Non-Executive Director

Dr. Patrick Galea

Independent Non-Executive Director

Josef Formosa Gauci

Independent Non-Executive Director

Dr. Ian Vella Galea

Company Secretary

an investment overview

AX Investments p.l.c. is the finance vehicle of AX Group, which was set up in 2001. The company’s first financing initiative was a private placement for the financing of the Verdala Mansions project in Rabat

icon-bg

AX Investments listed two public bonds on the Malta Stock Exchange. The first of these bonds – the 6.7% AX Investments p.lc. 2014-2016 for the amount of EUR 11.6M was raised for the general funding of AX Group. Another bond the 4% AX Investments p.l.c. 2013, for an amount of EUR 2.3M, was to re-purchase the shares in Suncrest Hotels p.l.c. held by the general public. This bond was repaid in December 2013.

In 2014, the company issued a 6% Bond redeemable in 2024 for EUR 40M. The investment was primarily used towards building Hilltop Gardens, the first retirement village on the island. AX Investments p.lc. is managed through its board of directors. The Directors are Mr Angelo Xuereb – Chairman, Mr Michael Warrington, Dr Patrick Galea, Mr Josef Formosa Gauci, and Chev Philip Ransley. Dr Ian Vella Galea is the Company Secretary.

icon-bg
  • icon-mouse
  • icon-arrow-right

The past year has been a challenging but transformative period for AX Hotels. While the business experienced severe disruptions due to the ongoing effects of the pandemic, the AX Hotels team took advantage of this period of downtime to explore new business opportunities within diverse market segments.

The result is a stronger hospitality arm with a greater focus on developing appealing leisure products that attract today’s consumer.

icon-bg
icon-bg
  • icon-mouse
  • icon-arrow-right

Malta’s only premium retirement village, comprising of Hilltop Gardens, Simblija Care Home, and physio and hydro-therapy centre Revive, have come through the second year of the pandemic with greater unity of purpose and a stronger sense of community belonging.

icon-bg
icon-bg
  • icon-mouse
  • icon-arrow-right

Decades of experience combined with the exceptional workmanship of our team have given us the know-how and skills as well as the vision and confidence, to undertake more ambitious and challenging projects both internally and for our customers. We truly believe in our mission statement: “Building our future, restoring our heritage”.

icon-bg
icon-bg
  • icon-mouse
  • icon-arrow-right

AX Development is the Group’s property division. Over the years we have acquired prime sites which we intend to develop into new and exciting projects.

Our focus during the last five years has been in restoring three properties in Valletta. We acquired two properties in Merchant Street, which we have renovated and converted into The Saint John Boutique Hotel and Rosselli – AX Privilege. The Group also purchased a prestigious property on Merchants Street which we are currently renovating.

icon-bg
icon-bg
  • icon-mouse
  • icon-arrow-right

We go to great lengths to attract top talent at every touch point, starting from a candidate’s initial contact with us through AX Careers, our in-house recruitment branch. In this highly competitive job market, we understand the need to invest time and resources to create meaningful connections with candidates.

icon-bg
icon-bg
  • icon-mouse
  • icon-arrow-right

Decades ago, AX Group set out a path for its real estate operations with two firm goals: firstly, to consistently advance quality standards in the properties it develops and manages; and secondly, to give its investors and clients long-term peace of mind through sound property investment opportunities and long-term growth. Today, having consolidated the Group’s well-diversified portfolio of managed local properties under AX Real Estate p.l.c. (“the Estates Group”), we are an industry leader.

icon-bg