Malita Investments plc - Full-Year Results

Wednesday, February 26th, 2014

On 26 February, Malita Investments plc published its 2013 preliminary full-year financial statements. The figures for 2012 are not directly comparable as during that year, the Company only owned the sites of Malta International Airport and Valletta Cruise Port. Meanwhile, during 2013, the Company was also in receipt of income related to the City Gate Project in Valletta. 

Performance Overview

During 2013, Malita Investments generated €6.7 million in revenue from the leases over the Malta International Airport (MIA) and Valletta Cruise Port (VCP) sites coupled with the income arising from the contractual agreements in connection with the Parliament Building and Open-Air Theatre (collectively referred to as the City Gate Project). In the announcement, the Directors explained that the Open Air Theatre was fully completed on 18 October 2013 whilst works on the Parliament Building should be finished by the end of the third quarter of 2014.

Meanwhile, the Company incurred €0.18 million in administrative expenses. The financial statements also accounted for a €4.7 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 €11.05 million. After accounting for net finance costs of €1.02 million, the Company’s pre-tax profit amounts to €10.03 million. During the year, the Company incurred a tax charge of €2 million leading to a net profit for 2013 of €8.02 million.

Compared to the figures as at 31 December 2012, the Company’s total assets decreased by 7.7% to €135.8 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. As a result, total liabilities also dropped by 25.7% to €53.8 million. Total equity increased by 9.7% to €82.04 million reflecting the profit registered during the period under review. The net asset value per share as at 31 December 2013 is of €0.554 (2012: €0.5049).

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 recommended the payment of a final gross dividend of €0.0201 per share (net: €0.0131) to all ‘B’ shareholders as at the close of trading on Wednesday 5 March. The final dividend will be paid on Friday 11 April subject to shareholders approval at the upcoming Annual General Meeting scheduled to be held on Wednesday 9 April.

Combined with the interim gross dividend of €0.0148 per share (net: €0.00962), the Company’s total gross dividend for 2013 amounts to €0.0349 representing a gross dividend yield of 7% on the IPO price of €0.50 in line with the dividend policy laid out in the July 2012 Prospectus.

Download

Malita Investments plc – Preliminary Statement of Annual Results for the year ended 31 December 2013.

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