Malita Investments plc - Interim Results

On 30 July, Malita Investments plc published its interim financial statements covering the six months ended 30 June 2014.

Performance Overview

During the first six months of 2014, the company continued to generate its income from ground rents over the sites of Malta International Airport (MIA), the Valletta Cruise Port (VCP), as well as income relating to the Parliament Building and the Open Air Theatre in Valletta. Revenues increased marginally to €3.36 million while administrative expenses rose by 13.7% to €0.2 million.

The income statement of the Company also includes an uplift in the fair value of its investment property portfolio totalling €5.6 million (June 2013: €4.1 million). This figure reflects the higher present value attributable to the cash flows receivable by the Company in relation to the MIA and VCP sites following a decline in Malta Government Stock yields (in line with the prevailing low interest rate scenario) which are used as a benchmark to discount future cash flows receivable.

Malita’s operating profit during the first half of 2014 increased by 20.7% to €8.8 million.

Net finance costs increased by 25.2% to €0.59 million, as the Company’s finance income declined by 65.2% to €0.06 million (on the back of a sharp decline in bank balances and lower interest payable on deposits) while finance costs were unchanged at €0.66 million.

During the period, the Company incurred a tax charge of €1.12 million, leading to a net profit of €7.05 million, which is 26.6% higher than that reported during the first half of 2013.

The Company’s total assets increased marginally (0.9%) to €137.1 million since the value as at 31 December 2013, as the increase in the fair value of the investment property was somewhat offset by a decline in Malita’s cash balances as the Company paid additional amounts to Grand Harbour Regeneration Company (GHRC) in respect of completed works undertaken for the Parliament Building and the Open Air Theatre. This resulted in a drop in the Company’s liabilities by nearly 10% to €48.4 million. Total equity increased by 8.1% €88.7 million on the back of improved profits and fair value gains. The net asset value per share as at 30 June 2014 works out at €0.599.

The Directors reported that Malita Investments will continue to consider and evaluate a number of potential projects including ones with a mix of public/private participation.

Dividend

The Directors declared a gross interim dividend of €0.015 per share (net: €0.00975) to all shareholders as at the close of trading on Wednesday 6 August. The interim dividend which represents a slight increase over last year’s interim dividend will be paid on Friday 12 September.

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Malita Investments plc – 2014 Interim Results