Crimsonwing and RS2 reach new highs

Further demand for the equities of Crimsonwing plc and RS2 Software plc was evident in the market today on the back of the recent new contract and expectations by the company’s directors of improved financial performances. Crimsonwing shares climbed by 5% to yet another 25-month high of €0.42 on a single deal of 25,000 shares. Recently, the CEO of Crimsonwing stated that the Group is expected to report improved performances from the current financial year and is on the way to reach its target of a pre-tax profit figure of €2 million by the financial year ending 31 March 2014.

Similarly, the share price of RS2 edged 1.6% higher to a fresh 40-month high of €0.64 across three trades totalling 35,500 shares. In its latest communication to the market, RS2 revealed a second licence and service agreement worth €1.5 million following the similar €5 million contract announced in September. Moreover, the Company is in advanced negotiations with respect to another licence and service agreement as well as the first deal in connection with its new managed services. As such, the Directors of RS2 expect the results of 2012 to be better than those of 2011.

In the small cap segment, a single trade of 5,000 Grand Harbour Marina plc shares lifted the equity from its 67-month low of €1.65 to the €1.75 level. This follows last Monday’s Interim Directors’ Statement which revealed that the company continued to generate growth in its recurring revenue from berthing and rental income at both its marinas in Malta and Turkey. Furthermore, GHM also disclosed that it entered into a Memorandum of Understanding for the sale of a super-yacht berth valued at €3.1 million which is expected to be concluded by year-end and also includes an option on the purchase of a further berth for €1.8 million.

Positive movements were also reported in the share price of International Hotel Investments plc with a 6.5% jump to regain the €0.80 level on volumes of 5,527 shares. GO plc also traded 4% higher during this morning’s session to €1.05 across four trades totalling 5,000 shares.

On the other hand, HSBC Bank Malta plc eased 0.4% lower to €2.65 across three trades totalling 2,600 shares.

Medserv plc also shed 3.5% to €3.85 across one trade of 4,050 shares possibly due to the recently issued Interim Statement which revealed that the Group’s performance continued to be depressed as projects which were expected to start during the third quarter were postponed to the last three months of 2012. In the meantime, the Group provided substantial maintenance work to offshore platforms as well as other support to offshore activities.

Higher volumes of 178,500 MIDI plc shares traded today as the equity remained at its all-time low of €0.25 with no bids in sight and lowest offers placed at the €0.285 level. Malita Investments plc also closed unchanged at its IPO price of €0.50 across three trades totalling 26,000 shares.

On the bond market, the Rizzo Farrugia MGS Index drifted 0.1% lower to just above the 999-points level as benchmark Eurozone yields reached the 1.43% level after the three international lenders to Greece (the Eurozone, European Central Bank and International Monetary Fund) failed to reach an agreement on a debt-reduction package. As a result, Greece still had no access to the next tranche of aid.