Mediterranean Investments Holding plc - Profitability recovers in Q1 2012

On 4 June, Mediterranean Investments Holding plc (MIH) issued an announcement to update the market on the Company’s performance during the first quarter of 2012. During this period, MIH registered a very significant improvement in performance compared to the financial results achieved in calendar year 2011.

The announcement explained that during the first quarter of 2012, MIH generated €5.39 million in revenue with an operating profit of €4.1 million and a net profit of €2.3 million. On the other hand, during the calendar year 2011, the company generated revenue of €10.17 million, an operating profit of €5.47 million and a loss after tax of €2.7 million.

MIH noted that the improved performance is a direct reflection of the increased occupancy at the Palm City Residences following the declaration of the liberation of Libya in October 2011 as well as the higher average rental per unit (49%) being achieved. In fact, by the end of April 2012, 328 units or 79% of the residential units at Palm City were leased out to clients representing a mixed balance of a number of industry sectors ranging from NGO’s, diplomats, oil companies, financial services, construction, hospitality, airlines and others.

The announcement also made reference to the Medina Tower project. During the period of unrest, the Company finalized the detailed design plans and drew up documentation to be in a position to recommence works on site once the situation in Libya returned back to normal. Indeed, as of November 2011, the project was restarted as the Board of Directors of Media Towers claim that the opportunity provided by the project is greater. All consultants to the project have been signed up and extensive detailed negotiations have taken place with the main contractor. In this respect, a contract is expected to be signed imminently with the main contractor and this company is expected to mobilize on site within a few weeks of signing the contract. Given the Company’s presence on the ground and the extensive work already carried out to date on the project, MIH believes it has a unique first mover advantage in starting and finishing the project before any other competition enters the market.