Mediterranean Investments Holding plc - Interim Results
On 28 August, Mediterranean Investments Holding plc (MIH) published its half-year report covering the six months ended 30 June 2013.
Performance Overview
MIH reported a significant improvement in its profitability during the first six months of 2013 with a net profit of €8.5 million compared to €4.4 million in the first half of 2012. This reflects the 27.5% increase in revenue to €15.7 million which in turn is due to the increased occupancy at Palm City Residences where 394 of the 413 units have been leased (equivalent to an occupancy rate of 95%). The company reported that the lease contracts are spread across various terms of between one and twelve months (short-term) and two to five years (long-term).
Furthermore, operating, marketing and administrative expenses only increased by 10.1% to €3.6 million leading to an operating profit of €12.1 million compared to €9 million during the first six months of 2012. MIH benefitted from a 24.8% reduction in net finance costs to €3.4 million largely due to some debt repayments. Additionally, during the period under review, MIH also reported a €0.1 million fair value gain on its interest swaps in contrast to the €0.1 million fair value loss incurred in the previous comparable six months. On the other hand, MIH incurred a tax charge of €0.4 million compared no taxes in the first six months of 2012.
The statement of financial position, compared to the 2012 year-end figures, shows a 1.6% increase in total assets to €351.8 million reflecting the increase in trade receivables in line with the increased occupancy at Palm City Residences. Meanwhile, total liabilities during the first six months of 2013 dropped by 1.5% to €191 million as MIH repaid €3 million in bank borrowings in accordance with the revised bank loan repayment scheduled. Total Equity grew by 5.5% to €160.8 million.
Outlook
During the second half of 2013, through its subsidiary Palm City Limited, MIH stated that it will remain focused on improving the performance of Palm City Residences by securing its achieved occupancy levels and retaining its goodwill as the leading provider of high-end residential properties for rent in the Libyan market.
The Company will also continue with its efforts to push forward with the commencement of the construction of the Medina Tower Project in which MIH has already invested €13 million. The Directors explained that significant progress has been registered during the first six months of 2013 following discussions and decisions to improve the original concept or materials used with the objective of achieving the same quality of build and finish but identifying alternative materials to lower the cost.