Malita Investments plc - Interim Results
On 31 July, Malita Investments plc published its interim results covering the first six months of 2015.
Performance Overview
During the period under review, the Company registered a 2.6% increase in revenue to €3.45 million as the Company continues to receive income from its ground rents of Malta International Airport and Valletta Cruise Port as well as income relating to the Parliament Building and Open Air Theatre. The Parliament Building was officially inaugurated in May 2015 and the Company is currently waiting for the completion certificate to be issued. Meanwhile, administrative expenses dropped by 7.9% to €0.18 million.
The Company’s financials were also boosted by an €8.1 million (H1 2014: €5.6 million) uplift in the fair value of investment property (namely the MIA and VCP sites). The improvement in the fair value reflects the higher present value attributable to the cash flows receivable by the Company in relation to these sites following the steep decline in interest rates on Malta Government Stocks which are used as the benchmark.
As a result, the Company’s operating profit grew by 29.2% to €11.3 million. After accounting for net interest expense of €0.65 million (H1 2014: €0.59 million), the Company’s profit before tax for the period under review amounted to €10.69 million representing a 30.7% increase over the previous period’s comparable figure.
Malita also accounted for a tax credit of €0.79 million compared to a tax charge of €1.1 million in the first half of 2014. The tax credit is largely due to a one-off adjustment in line with the provisions of new taxation rules on capital gains generated upon the transfer of immovable property. Overall, Malita reported a 62.8% increase in net profits to €11.5 million which translated into an earnings per share of €0.0775 (H1 2014: €0.0476).
The Statement of Financial Position, compared to the figures as at 31 December 2014, shows a 5.9% increase in total assets to €151.2 million largely reflecting the aforementioned uplift in the fair value of the Company’s investment property. Meanwhile, total liabilities contracted by 2.2% to €46.6 million mainly due to the reduction in deferred tax liabilities in line with the provisions of the new tax rules on capital gains generated upon the transfer of immovable property. Overall, the Company’s equity base expanded by 9.9% to €104.5 million on the back of the profit generated during the period under review which outweighed the final dividend distribution with respect to the 2014 financial year. This translates into a net asset value per share of €0.706 (December 2014: €0.642).
Dividend
The Directors declared a gross interim dividend of €0.0144 (net: €0.00936) to all shareholders (both ‘A’ and ‘B’ shareholders) as at the close of trading on Thursday 6 August 2015. The dividend will be paid on Friday 11 September.
Last year, the Company had paid out a gross interim dividend of €0.015 (net: €0.00975) to the ‘B’ shareholders.
Outlook
Looking ahead, the Directors noted that a number of potential projects, including ones with a mix of public/private participation, are being considered and evaluated.