MIH’s profits surge on increased occupancy

This morning, Mediterranean Investments Holding plc published its 2012 half-year results revealing a net profit of €4.4 million compared to €0.1 million in the first half of 2011. The surge in profitability was the result of the significant increase in revenue to €12.3 million (June 2011: €5.1 million) as occupancy within Palm City increased to reach the 82% level by the end of June. The half-year report also updated the market on the Company’s next project, the Medina Tower development.  Since the start of 2012, MIH invested a further €9.1 million in this project thereby raising the Company’s total investment to €13 million (including the initial €3.9 million invested in 2010). Works on site are expected to commence later on this year. The Directors reiterated their view that the project’s business case has increased significantly following the conflict in Libya. Further details on results available at https://rizzofarrugia.com/news-events/2012/half-year-results-mih04/.

Meanwhile, on the secondary market, only a single trade of 600 International Hotel Investments plc shares was executed during this morning’s session with the share price easing minimally lower to the €0.849 level.

Trading activity is expected to rose over the next two weeks as a consequence of the various half-year results expected to be issued including those of the large cap equities, IHI and GO.

On the bond market, the Rizzo Farrugia MGS Index slipped 0.2% lower to 994.062 points as eurozone yields climbed to 1.587% – the highest level since 2 July. Today’s upturn in benchmark German 10-year bund yields reflects the rise in US Treasury yields as the better-than-forecast economic data published earlier this week reduced expectations of further stimulus measures by the US Federal Reserve during its upcoming monetary policy meeting.