Malita Investments plc - Interim Results

On 13 August, Malita Investments plc published its interim financial statements covering the six months ended 30 June 2013. The figures for the first half of 2012 are not directly comparable as at the time the Company only owned the sites of Malta International Airport and Valletta Cruise Port. Meanwhile, during the period under review, the Company was also in receipt of income related to the City Gate Project in Valletta.

Performance Overview

During the first six months of 2013, Malita Investments generated €3.3 million in revenue from the leases over the Malta International Airport (MIA) and Valletta Cruise Port (VCP) sites coupled with the penalties arising from a delay in the completion of the development of the Parliament Building and Open-Air Theatre (collectively referred to as City gate project). Meanwhile, the Company incurred €0.18 million in administrative expenses.

The financial statements also accounted for a €4.1 million uplift in the fair value of investment property, namely the MIA and VCP sites, reflecting the higher present value attributable to the cash flows receivable by the Company in relation to these sites.

As a result, the Company registered an operating profit of €7.3 million. After accounting for net finance costs of €0.47 million, the Company’s pre-tax profit amounts to €6.79 million.

During the period, the Company incurred a tax charge of €1.2 million leading to a net profit for the period under review of €5.6 million.

Compared to the figures as at 31 December 2012, the Company’s total assets decreased by 2.6% to €143.3 million as the increase in the value of investment property was offset by the decline in the Company’s cash balances which were used to pay off the Company’s capital creditor. In fact, during the period under review, Malita paid €12.7 million to Grand Harbour Regeneration Company (GHRC) in respect of works undertaken at the City Gate project in Valletta. As a result, the Company’s total liabilities dropped by 12.3% to €63.5 million. Total equity increased by 6.8% to €79.9 million reflecting the profit registered during the period under review.

The Directors noted that the results were in line with projections made at the time of the July 2012 IPO with the exception of the fair value movement on investment property given the change in Malta Government Stock yields which are used as a benchmark to discount future cash flows receivable.

Dividend

The Directors declared a gross interim dividend of €0.01476 per share (net: €0.00959) to all shareholders as at the close of trading on Friday 16 August. The interim dividend will be paid on Friday 13 September.

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Malita Investments plc – Interim Financial Statements covering the six months ended 30 June 2013.