MIDI plc - Interim Results

On 26 August, MIDI plc published its half-year financial statements covering the six months ended 30 June 2014.

Performance Overview

During the first six months of 2014, MIDI registered a sharp decline in revenue to €0.78 million (H1 2013: €4.1 million) as the Group did not generate any meaningful income from the sale of properties given the limited amount of apartments available for sale. As a result, MIDI reported an operating loss of €0.22 million although this loss is 61.9% less than that incurred in the previous comparable period.

MIDI’s net interest cost increased by 4.4% to €1.5 million reflecting the 4.6% increase in total borrowings to €52.5 million.

Overall, during the first half 0f 2014, the MIDI Group incurred a €1.7 million pre-tax loss compared to the pre-tax loss of just over €2 million reported during the previous comparable period. After accounting for a tax credit of €0.75 million, the Group’s net loss for the period amounted to €0.99 million representing a 41.9% reduction from the loss incurred in the first six months of 2013.

No material changes were recorded in the Statement of Financial Position. However, after the reporting date, the MIDI Group transferred the T14 site, earmarked for the development of a Business Centre, to Mid Knight Holdings Limited for a total consideration of €11.7 million – equivalent to the carrying value of the asset. MIDI has a 50% stake in Mid Knight Holdings Limited.

Update on Tigné Point and Manoel Island Development

Construction works on the Q1 residential block (previously referred to a T17E or T17 East) are now complete and finishing works are now underway. MIDI has already sold all the 38 apartments forming the Q1 block. However, since the apartments will be delivered to the new owners in 2015, the profits from such sales will be recognised in the 2015 financial statements in line with accounting standards.

Given the success achieved from the Q1 apartments, MIDI is moving ahead with the development of the Q2 phase comprising 60 apartments.

Mid Knight Holdings Limited in currently finalising the awarding process of the contracts of works in order to proceed with the development of the Business Centre at Tigné Point later this year.

In the meantime, the Directors continue to evaluate a number of options with respect to the long-term capital resources required to undertake the development of Manoel Island once the Tigné Point development nears completion.

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MIDI plc – Half-Year Report covering the six months ended 30 June 2014.