Several companies publish their 2023 financial results

 

The MSE Equity Price Index fell by 0.11% to 3,783.886 points as the declines in APS, GO, Lombard, and MIA outweighed the gains in BOV. Meanwhile, two other equities closed unchanged as today’s trading activity in local equities amounted to €0.16 million. Download today’s Equity Market Summary.

Most of today’s trading took place across the shares of Bank of Valletta plc as it gained 0.7% to a fresh four-month high of €1.46 across eight deals totalling 69,400 shares. Shareholders as at the close of today’s trading will be entitled to receive the final net dividend of €0.0455 per share subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on 31 May 2024.

Also in the banking sector, Lombard Bank Malta plc declined by 2.4% to the €0.81 level on one deal of 18,000 shares. Today, Lombard published its Annual Report and Financial Statements for the year ended 31 December 2023. Net interest income surged by 16.1% to a record of €25.9 million as the growth in gross interest income outweighed the increase in interest expense. Lombard also reported a 19.2% increase in non-interest income to €44.5 million (as the increase in revenues generated from postal offset the lower income generated by most of the Bank’s business lines. Total operating costs increased by 14.5% to €54.7 million reflecting the higher level of business. The financial performance was dented by negative movements in expected credit losses of €1.26 million in contrast to the net reversal in expected credit losses of €16.2 million in the previous year that was primarily related to the full recovery of a large non-performing loan. When adjusting the comparative figures to exclude the significant one-time reversals in expected credit losses in 2022, profit before tax rose by 17%. The net profit attributable to shareholders amounted to €9.06 million which translates into a return on average equity of 5.55%. Shareholders’ funds increased by 39.8% to €190.4 million, reflecting the proceeds raised from the Rights Issue that was concluded towards the end of 2023. Consequently, the net asset value per share dropped to €1.2317 compared to €1.4687 as at the end of 2022 (adjusted for the 2023 bonus issue). The Directors of Lombard are recommending a final net dividend per share of €0.0106 to all shareholders as at close of trading on 24 May 2024, subject to regulatory approval as well as shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 27 June 2024.

APS Bank plc reversed some of yesterday’s gains as it shed 0.9% to the €0.565 level on a single deal of 5,400 shares. Yesterday, APS published a quarterly financial update and hosted an online market briefing. The 2023 first quarter figures, when compared to the first quarter of 2022 showed that net interest income dropped by 9% to €16.7 million as the growth in gross interest income was offset by higher interest expenses. The financial performance was also dented by declines in the fair value of financial investments held within the APS Diversified Bond Fund in contrast to gains recognised in the same period last year. Operating profit amounted to €4.5 million compared to €7.6 million in the first quarter of 2022. The net asset value per share as at 31 March 2024 stood at €0.728.

GO plc declined by 0.7% to the €3.02 level after recovering from an intraday low of €3.00 (-0.7%) across five trades amounting to 5,600 shares. Shareholders as at close of today’s trading are entitled for a final net dividend of €0.05 per share subject to shareholders’ approval at the upcoming Annual General Meeting scheduled for 30 May 2024.

Malta International Airport plc moved 0.9% lower to a six-week low of €5.65 as 540 shares changed hands.

A single trade of 5,500 shares left the share price of Plaza Centres plc unchanged at the €0.59 level. Last Wednesday, Plaza published its 2023 results. Revenue advanced by 7.7% to €3.09 million and operating profit surged by 12.2% to €1.60 million. The net profit for the year attributable to shareholders amounted to €1.11 million. Shareholders’ funds rose by 2.2% to €27.2 million which translates into a net asset value per share of €1.0675. The Directors are recommending the payment of a final net dividend of €0.0137 per share to all shareholders as at close of trading on 16 May 2024 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Wednesday 19 June 2024.

MedservRegis plc traded flat at the €0.60 level over four deals amounting to 24,000 shares. Today, Medserv published its 2023 results. Revenue surged by 10% to €73.9 million and adjusted EBITDA surged by 53% to €17.5 million, exceeding the Group’s forecast by 21%. The net profit for the year amounted to €1.3 million.

MIDI plc also published its 2024 results. Revenue surged by 19.2% to €4.07 million. MIDI reported an operating loss of €1.1 million compared to the loss of €1.4 million last year. MIDI’s total equity at the end of 2023 was €74.4 million which translates into a net asset value per share of €0.349 The Directors of MIDI are recommending the payment of a final net dividend of €0.009 per share to shareholders as at close of trading on 24 May 2024, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 27 June 2024.

Grand Harbour Marina plc also published its 2023 results which showed an improvement in the operating performance of both the Malta marina and the associate company operating a marina in Turkey. GHM’s net profit amounted to €2.91 million compared to €1.56 million in 2022.

Yesterday, M&Z plc published its 2023 financial results. Revenue surged by 10.3% to €31.3 million driven by organic growth initiatives. On the expenditure side, operating costs (net of other operating income) increased by 10.0% to €27.5 million, reflecting inflationary pressures as well as an uplift in the loss allowance with regard to trade receivables. As the revenue growth outweighed the increase in costs, operating profit rose by 16.1% to €2.86 million. The net profit for the year amounted to €1.77 million which is 26% higher than the previous year and translates into an adjusted return on equity of 22.3% (2022: 19.4%). The Directors of M&Z are recommending a final net dividend per share of €0.01986 to all shareholders as at the close of trading on 17 May 2024, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 11 June 2024.

The RF MGS Index declined for the third successive period as it fell by 0.17% to a fresh four-month low of 885.079 points. Data released today showed that during March, personal spending in the US grew by 0.8% month-over-month maintaining the same pace as February and surpassing market expectations of 0.6%. Meanwhile, the personal consumption expenditure price index (‘PCE’) during March increased by an additional 0.1 percentage point than expected to 2.7%. Notably, the core PCE in March remained flat at 2.8% compared to a projected decline to 2.6%.

 

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap—370 of the Laws of Malta and a member of the Malta Stock Exchange.