Crimsonwing reveals new international contracts

Crimsonwing plc today revealed that it has been awarded a major contract to implement an ecommerce solution for all the Mothercare outlets in 50 countries around the world with the first seven installations to take place in early 2013 in Australia and New Zealand. Moreover, the Company has also been awarded a €2 million service contract by Dutch company Mastermate which started last month and has also been entrusted by the Rezidor Group (owner of the Radisson hotel brand) to run and enhance its ecommerce procurement systems. In the meantime, the Company is implementing a 3-year plan which aims to grow turnover to €20 million and pre-tax profit of €2 million.

Initially, the market reacted positively as new demand lifted Crimsonwing’s share price 7.7% higher to a new 4-month high of €0.28 but during the last minutes of today’s session, the share price dropped back to the €0.25 level on low volumes. The equity closed the day 3.9% lower.

The shares of HSBC Bank Malta plc also closed in negative territory today with a 1.1% drop to €2.72 across five trades totalling 9,480 shares. Meanwhile, Bank of Valletta plc’s equity recovered from an intra-day low of €2.25 to end this morning’s session unchanged at the €2.7 level on volumes of just over 8,000 shares. The Bank is scheduled to publish its full-year results on Friday 26 October.

Likewise all other active equities ended the session unchanged. Most notably, over 54,650 Plaza Centres plc shares changed hands at the equity’s 19-month low of €0.51 following this morning’s Interim Directors’ Statement publication. In the announcement, the Directors explained that in the first nine months of 2012 the Company registered satisfactory results with revenue increasing due to the new extension which was inaugurated in March 2011. Nonetheless, this was partially offset by the termination of a lease of an office tenant. In this respect the Company is still negotiating new leases for the vacated space. The Directors also noted that expenses during the period increased due to the one-off costs incurred in relation to the renominalisation of its shares. Average occupancy during the nine months was 87%, 4% less than the corresponding period last year due to the space that was vacated during the period under review. In conclusion, the Directors noted that the Company’s financial position is satisfactory and in line with expectations.

On the bond market, the Rizzo Farrugia MGS Index eased minimally lower to 994.800 points as eurozone yields inched higher to regain the 1.63% level. Japan’s drop in exports dampened investor sentiment but European markets were lifted by the victory in a regional election by the party of Spain’s Prime Minister which Mr Rajoy is claiming to be a vote in favour of his austerity programme for the country.

Last week the Treasury announced the issue of 3 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €40 million. The 3 new stocks are: (i) 3.75% MGS 2017 (IV) (Fungibility Issue); (ii) 4.3% MGS 2022 (II) (Fungibility Issue) and (iii) 4.8% MGS 2028 (I). Offer prices will be determined on Thursday 25 October 2012 ahead of the opening of subscriptions on Monday 29 October.