MIDI plc - Interim Results

On 30 August 2024, MIDI plc published its condensed interim financial statements covering the six-month period ended 30 June 2024.

Revenues grew by 3.2% to €1.50 million (H1 2023: €1.45 million) reflecting a marginal increase in rental and property management income.

On the expenditure side, operating costs increased by 3.0% to €2.03 million Consequently, MIDI reported an operating loss of €0.50 million, which however is a marginal improvement over the loss of €0.52 million in the previous year.

Meanwhile, net finance costs increased by 2.0% to €1.25 million while the contribution from Mid Knight Holdings Ltd (the owner of ‘The Centre’ commercial block) climbed to €0.88 million from €0.72 million in the first half of 2023.

MIDI reported a pre-tax loss of €0.87 million compared to a pre-tax loss of €1.02 million in the previous corresponding period. After accounting for a tax charge of €0.16 million, the net loss for the first half of 2024 amounted to €1.02 million (H1 2023: €1.11 million).

The Condensed Statement of Financial Position as at 30 June 2024, when compared to the corresponding figures as at the end of 2023, shows that the amount of total assets increased by 2.1% (or €5.3 million) to €260.0 million. Meanwhile, total liabilities increased by 4.0% (or €6.3 million) to €161.7 million, which include borrowings totalling €59.5 million and lease liabilities of €16.1 million. Total equity declined by 1.0% (or €1.0 million) to €98.3 million, which translates into a net asset value per share of €0.459.

Outlook

The Directors reiterated that although MIDI has successfully launched the apartments of its latest residential development at Tigné Point (known as Fortress Gardens), the sales of these units can only be recognised once the final deeds are entered into with the respective buyers. In this respect, delivery of the apartments is envisaged for the second quarter of 2025.

Update on the Development of Manoel Island

The Board of Directors also explained that in March 2024, the Planning Board deferred the hearing of this full development application on the basis that Manoel Island lies within the proposed buffer zone for the Valletta World Heritage Site. The Company is confident that the proposed development of Manoel Island does not impact the status of the Valletta World Heritage Site, after having consulted the National World Heritage Technical Committee. A decision on this application is expected during the second half of 2024. In the meantime, site preparatory works are ongoing on the Manoel Island site under the supervision of an archaeological monitor. MIDI remains confident that the full development permit will be secured.

Furthermore, the Group continues to be engaged in discussions with the government in connection with the implication that delays will have on the timing and realisation of the project.  Based on these discussions, the board is confident that an outcome which will enable the successful completion of the project will be achieved.

Following the signing of a non-binding memorandum of understanding with AC Enterprises Limited in December 2021 the Company has continued negotiating with AC to organise a joint venture with regards to the Manoel Island development and noted significant progress, but no transaction has been concluded yet.