MIDI plc - Full-Year Results

On 28 March, MIDI plc published its financial statements for the year ended 31 December 2015.

Performance Overview

During the year under review, MIDI plc generated revenue of €41 million (2014: €13.3 million) mainly reflecting the €38.8 million in turnover from the ‘development and sale of property’ as the Company entered into the transfer deeds pertaining to all the apartments within the ‘Q1 block’ with the exception of one unit. In contrast, in 2014 the Group had only registered €11.8 million in revenue from this segment which was solely related to 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. Meanwhile, revenues from rental and management operations increased by 53.3% to €2.3 million reflecting increases in revenues from the car park operation as well as additional revenue from the rental of commercial outlets at Pjazza Tigne.

Given the sale of the units within the Q1 block, cost of sales also materially increased to €31.1 million compared to €12.1 million in 2014. As a result, the Group generated a gross profit of €9.9 million (2014: €1.2 million) representing a gross profit margin of 24.2% compared to 9% in 2014.

Administrative expenses also increased by 5% to €1.85 million. On the other hand, the Group’s performance was boosted by a €4.85 million uplift in the fair value of investment property as well as a further €0.2 million (2014: €0.18 million) in other income.

As a result, the Group reported an operating profit of €13.1 million compared to the €0.39 million loss incurred in 2014.

Net finance costs increased by 13.9% to €3.2 million largely reflecting a lower incidence of finance income. The Group also incurred an impairment charge on goodwill amounting to €0.45 million in relation to the acquisition of the remaining 50% shareholding in Solutions & Infrastructure Services Limited (SIS) with effect from September 2015.

Overall, MIDI reported a pre-tax profit figure of €9.46 million compared to a pre-tax loss of €3.2 million in 2014. After accounting for a tax credit of €0.46 million, the Group’s net profit figure for the year under review amounted to €9.9 million compared to a net loss of €2.15 million in 2014. This translates into an earnings per share of €0.0463 [2014: €(0.0101)].

The Statement of Financial Position shows a 2.2% decrease in total assets to €187.46 million largely reflecting the 11.1% drop in the value of inventories to €115.1 million following the conclusion of the sale of most of the apartments forming part of the Q1 residential block. Total liabilities also decreased by 11.5% to €116.2 million mainly due to the 21.7% decrease in current trade and other payables to €42.6 million. Overall, shareholders’ funds increased by 17.9% to €71.2 million largely reflecting the profit incurred during the period under review. This translates into a net asset value per share of €0.333 (2014: €0.282).

Dividend

The Directors recommended a final net dividend of €0.007 per share to all shareholders as at the close of trading on Thursday 7 April. The dividend will be paid by not later than 27 May subject to shareholder approval at the upcoming Annual General Meeting (AGM) scheduled to be held on Thursday 12 May 2016.

Project Updates

Q1 Apartments: All apartments, except for one, have been sold with the profit recognised in the 2015 financial statements.

Q2 Apartments: Development works related to the Q2 apartment block (comprising 60 apartments) are well underway with civil works nearing completion whilst finishing works have commenced during the first quarter of 2016. The announcement also noted that a number of promise of sale agreements have already been signed with respect to apartments within this residential block.

Manoel Island: As the development at Tigné Point nears completion, the Company engaged the services of an international consultancy firm to establish a vision for the Manoel Island development which will subsequently be reflected into a revised master plan. At the same time, the Company continues to hold discussions with third parties who have expressed interest in the project.

Download

MIDI plc – Annual Report and Financial Statements for the year ended 31 December 2015.