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MIDI plc – Interim Results

Jonathan Falzon

September 1, 2025

Market News
1 September, 2025
7 min read
Market News
1 September, 2025
7 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

Financial Performance

On 28 August 2025, MIDI plc published its condensed interim financial statements covering the six-month period ended 30 June 2025.

Revenue increased by 3.7% to €1.55 million (H1 2024: €1.50 million) which practically all emanated from property and rental management. Meanwhile, the sales from the Q3 Fortress Gardens residential units will be recognised once the final deeds of sale are entered into with the respective buyers. MIDI expects the delivery of the first batch of units during the last quarter of 2025.

On the expenditure side, operating costs increased by 3.1% to €2.09 million. Consequently, MIDI reported an operating loss of €0.51 million, roughly in line with the previous year.

The contribution from the associate Mid Knight Holdings Ltd (the owner of The Centre office block) climbed to €0.90 million from €0.88 million in the first half of 2024.

Meanwhile, net finance costs fell by 7.5% to €1.16 million.

MIDI reported a pre-tax loss of €0.77 million compared to a pre-tax loss of €0.87 million in the same period last year. After accounting for a tax charge of €0.12 million, the net loss for the first half of 2025 amounted to €0.89 million, compared to a net loss of €1.02 million in the first half of 2024.

The Condensed Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at the end of 2024, shows that the amount of total assets decreased by 1.8% (or €4.6 million) to €254 million. Meanwhile, total liabilities fell by 2.3% (or €3.8 million) to €161.5 million, which include borrowings totalling €53 million and lease liabilities of €17 million. Total equity declined by 1.0% (or -€0.9 million) to €92.5 million, which translates into a net asset value per share of €0.432 (31 December 2024: €0.436)

Outlook

The Directors stated that the anticipated sales of the Q3 Fortress Gardens residential units are expected to have a positive effect on the overall financial results for 2025.

Update on the Development of Manoel Island

The Board of Directors acknowledged the Government’s recent withdrawal of its support to the Manoel Island project and the declarations made by Government committing to turn Manoel Island into a national park. In addition, MIDI received a judicial letter from the Government of Malta and the Lands Authority alleging breach of the Deed of Emphyteusis, specifically in relation to the development’s completion date, which threatened the recission of the concession granted by the Deed. MIDI has rejected the allegations and maintains that there is no valid legal basis for recission nor the imposition of penalties. The Deed contains specific safeguards extending the development’s completion date granting an extension of more than 10 years. Furthermore, the full development permit for Manoel Island has not to date been issued, partially due to archaeological discoveries, and the time period for completion of the development remains suspended in terms of the Deed.

Given the company’s commitment to finding a solution with the Government, MIDI has entered into discussions with Government with a view to achieve a voluntary termination of the Manoel Island concession as part of an equitable settlement, to protect MIDI’s shareholders and bondholders. The Directors stated that MIDI’s overriding objective is to recover in full the carrying amount of the net assets attributable to the Manoel Island project, as reflected within the statement of financial position.  Accordingly, notwithstanding the preliminary stage of discussions with Government, no adjustments to such carrying amount were deemed necessary as at 30 June 2025.

Update on the 2026 bond redemption

The Directors noted that prior to the withdrawal of Government’s support for the Manoel Island project, MIDI planned to refinance a portion of its outstanding bond maturing in July 2026 through a new bank facility, for which a term sheet had already been secured. This financing was contingent upon the continued progress of the Manoel Island project, including the introduction of a strategic investor. The remaining balance of the bond was to be paid from internal resources. In the current circumstances, MIDI plans to meet its bond obligations, through the projected net inflows from the Q3 residential development, other internal sources including planned sale of assets, and the reimbursement by Government of the carrying amount of the net assets attributable to the Manoel Island project.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 28 August 2025, MIDI plc published its condensed interim financial statements covering the six-month period ended 30 June 2025.

Revenue increased by 3.7% to €1.55 million (H1 2024: €1.50 million) which practically all emanated from property and rental management. Meanwhile, the sales from the Q3 Fortress Gardens residential units will be recognised once the final deeds of sale are entered into with the respective buyers. MIDI expects the delivery of the first batch of units during the last quarter of 2025.

On the expenditure side, operating costs increased by 3.1% to €2.09 million. Consequently, MIDI reported an operating loss of €0.51 million, roughly in line with the previous year.

The contribution from the associate Mid Knight Holdings Ltd (the owner of The Centre office block) climbed to €0.90 million from €0.88 million in the first half of 2024.

Meanwhile, net finance costs fell by 7.5% to €1.16 million.

MIDI reported a pre-tax loss of €0.77 million compared to a pre-tax loss of €0.87 million in the same period last year. After accounting for a tax charge of €0.12 million, the net loss for the first half of 2025 amounted to €0.89 million, compared to a net loss of €1.02 million in the first half of 2024.

The Condensed Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at the end of 2024, shows that the amount of total assets decreased by 1.8% (or €4.6 million) to €254 million. Meanwhile, total liabilities fell by 2.3% (or €3.8 million) to €161.5 million, which include borrowings totalling €53 million and lease liabilities of €17 million. Total equity declined by 1.0% (or -€0.9 million) to €92.5 million, which translates into a net asset value per share of €0.432 (31 December 2024: €0.436)

Outlook

The Directors stated that the anticipated sales of the Q3 Fortress Gardens residential units are expected to have a positive effect on the overall financial results for 2025.

Update on the Development of Manoel Island

The Board of Directors acknowledged the Government’s recent withdrawal of its support to the Manoel Island project and the declarations made by Government committing to turn Manoel Island into a national park. In addition, MIDI received a judicial letter from the Government of Malta and the Lands Authority alleging breach of the Deed of Emphyteusis, specifically in relation to the development’s completion date, which threatened the recission of the concession granted by the Deed. MIDI has rejected the allegations and maintains that there is no valid legal basis for recission nor the imposition of penalties. The Deed contains specific safeguards extending the development’s completion date granting an extension of more than 10 years. Furthermore, the full development permit for Manoel Island has not to date been issued, partially due to archaeological discoveries, and the time period for completion of the development remains suspended in terms of the Deed.

Given the company’s commitment to finding a solution with the Government, MIDI has entered into discussions with Government with a view to achieve a voluntary termination of the Manoel Island concession as part of an equitable settlement, to protect MIDI’s shareholders and bondholders. The Directors stated that MIDI’s overriding objective is to recover in full the carrying amount of the net assets attributable to the Manoel Island project, as reflected within the statement of financial position.  Accordingly, notwithstanding the preliminary stage of discussions with Government, no adjustments to such carrying amount were deemed necessary as at 30 June 2025.

Update on the 2026 bond redemption

The Directors noted that prior to the withdrawal of Government’s support for the Manoel Island project, MIDI planned to refinance a portion of its outstanding bond maturing in July 2026 through a new bank facility, for which a term sheet had already been secured. This financing was contingent upon the continued progress of the Manoel Island project, including the introduction of a strategic investor. The remaining balance of the bond was to be paid from internal resources. In the current circumstances, MIDI plans to meet its bond obligations, through the projected net inflows from the Q3 residential development, other internal sources including planned sale of assets, and the reimbursement by Government of the carrying amount of the net assets attributable to the Manoel Island project.