MIDI plc - Full-Year Results

On 28 April, MIDI plc published its financial statements for the year ended 31 December 2014.

Performance Overview

During the year under review MIDI plc generated revenue of €13.31 million (2013: €7.8 million). The figure largely comprises €11.8 million from the sale of the T14 site at Tigné Point to Mid Knight Holdings Limited (in which MIDI has a 50% shareholding) which in turn will be developing and operating a 14,000 square metre business centre. No profit or loss has been recognised with respect to this transaction. MIDI also generated €1.47 million in income from property rental and management operations representing a 7.9% increase over the previous year’s comparable figure as the Company leased out all the remaining commercial outlets at Pjazza Tigné and the public car park has continued to make steady progress in terms of the revenues generated.

Cost of sales also increased by 80.7% to €12.1 million leading to a gross profit figure of €1.2 million, representing a 9.4% increase over the 2013 comparable figure. Meanwhile, administrative expenses were largely unchanged at €1.8 million whilst other income increased to €0.18 million (2013: €0.09 million). It is also noteworthy to highlight that the €1.8 million fair value uplift registered in 2013 was not repeated during the year under review. As a result, MIDI registered an operating loss of €0.39 million compared to the operating profit of €1.2 million in 2013.

Net finance costs increased by 2.2% to €2.8 million reflecting higher finance costs on the back of increased borrowings as well as lower interest receivables as cash balances declined.

Overall, MIDI plc reported a pre-tax loss of €3.2 million in 2014 compared to a pre-tax loss of €1.6 million in 2013. After accounting for a tax credit of €1.1 million (2013: €0.14 million), the net loss from continuing operations in 2014 amounted to €2.2 million compared to €1.42 million in 2013. This translates into a negative earnings per share of €0.0101 compared to a negative €0.0066 per share in 2013.

The Statement of Financial Position shows a 7.1% increase in total assets to €191.7 million reflecting the inclusion of the Group’s investments in its joint-ventures, amounting to an increment of just over €12 million, as well as other increases in the Group’s inventories and trade receivables which offset the 26.7% decline in cash balances to €7.6 million. Total liabilities also increased by 12.6% to €131.2 million largely reflecting the 37.3% increase in current trade and other payables to €54.3 million. This increase mainly relates to additional payments received on account by purchasers of residential property ahead of the delivery of the apartments forming the Q1 block which is scheduled to commence as from the second quarter of 2015. Overall, shareholders’ funds dropped by 3.25 to €60.4 million largely reflecting the loss incurred during the period under review. This translates into a net asset value per share of €0.282 (2013: €0.291).

Project Updates

Q1 Apartments: Finishing works on these apartments are now nearing completion with delivery to their respective owners projected to commence during the second quarter of 2015. Profits arising from the sale of these apartments, all of which are subject to promise of sale agreements, will be recognised in the 2015 financial statements.

Q2 Apartments: Development works related to the Q2 apartment block are progressing according to the projected timelines and are set to be completed during the course of 2017 with profits from the sales of these apartments expected to be reflected in the 2017 financial statements. The apartments will be launched during the second half of 2015.

Manoel Island: As the development at Tigné Point nears completion, the Company continues to explore various investment scenarios with regards to the Manoel Island development. As such, the Company is currently assessing its own capital resources whilst also holding discussions with third parties. The Directors expected a final decision to be taken in this respect during the course of 2015.

Download

MIDI plc – Annual Report and Consolidated Financial Statements as at 31 December 2014.