MIDI plc - Full-Year Results

On 29 April 2011 MIDI plc published its full-year results for the year ended 31 December 2010. During the year under review revenue fell by 19.3% to €26 million compared to €32.2 million generated during 2009. The Group registered in a profit after tax of €779,000 against a forecast consolidated profit after tax of €951,000. The Group explained that the consolidated forecast financials for the year ended 31 December 2010 in the Initial Public Offering Prospectus dated 1 November 2010 were based on the results up to 30 June 2010 and projected results from 1 July up to the end of the year. The Group explained that the variance in the profit after tax figures is mainly due to an adverse difference in borrowing costs expensed with actual finance costs amounting to €3.5 million compared to a projected interest expense of €3.1 million. This increase was the result of a change in the mix of apartments sold in the latter part of 2010 when compared to those forecast. Actual sales during 2010 included a reduced number of T10 apartments with a significant percentage payable on deed of sale which was offset with a higher number of sales at Tigne South apartments where the final payment on deed on contract is lower. Therefore, the reduction of bank borrowings by the end of 2010 was lower than projected and the consequent interest expense higher. Despite this, the Directors confirmed that all T10 apartment sales projected in the prospectus were concluded by the first quarter of 2011. The Group decided not to recommend the payment of a final dividend.

In the Preliminary Profit Statement the MIDI Group gave an overview of the developments which happened during the year under review. MIDI plc stated that a number of residential and commercial phases were completed and the first full scale commercial operations came on stream when ‘The Point’ shopping mall opened in March 2010. Moreover, 31 apartment sales in the form of final contracts with a total value of €22.7 million were concluded. Amongst these were the first 15 apartments in the T10 block launched in summer of 2008. The block comprises a total of 59 apartments of which a vast majority has been sold under promise of sale agreement. Other residential construction works were concentrated on 22 new apartments overlooking the Pjazza Tigne (Pjazza Apartments) which are expected to be launched during 2011. The Directors stated that a major milestone was the opening of ‘The Point’ shopping mall together with the underlying car park. This is a major development spanning over 4 levels comprising a series of distribution roads, additional car parking and plant rooms. The Group also continued with its restoration works particularly on Fort Manoel. On the infrastructural side, works were concentrated on the embellishment of public areas at Tigne Point and the Sliema Wanderers sports complex.

The Directors concluded by stating that these results allow the MIDI Group to look at 2011 with optimism as besides having the first full year of operation of ‘The Point’, the Group will continue to deliver apartments in the T10 block to their new owners apart from the expected launch 22 new designer apartments overlooking Pjazza Tigne.

Download MIDI plc’s Preliminary Profit Statement for the year ended 31 December 2010 here.