Mediterranean Investments Holding plc - Full-Year Results
On 22 April, Mediterranean Investments Holding plc (MIH) published its financial statements for the year ended 31 December 2012.
Performance Overview
During 2012, MIH generated a total of €27.3 million in revenue compared to €10.2 million in 2011 reflecting the increased occupancy which reached over 90% during the year under review. Moreover, during the start of 2012, various contract were for a short-term nature therefore commending higher rates per square metre. Meanwhile, costs increased by 53.3% to €6.5 million leading to an earnings before interest, tax, depreciation and amortisation (EBITDA) of €20.8 million. This is significantly higher than the 2011 EBITDA figure of €5.9 million. Occupancy in 2011 was low following the start of the Libyan evolution in February.
Following the improved performance registered in 2012 and expectations of maintaining strong occupancy levels at well above 90% also in future years, the financials of MIH were boosted by a €56.8 million uplift in the fair value of the Palm City Residences.
Depreciation and amortisation only increased by 3.4% to €0.47 million. Similarly, the net interest expense only increased by 8.2% to €8.2 million reflecting the fixed nature of such expenses. As a result, the interest coverage ratio (EBITDA divided by net interest expense) of MIH improved to 2.4 times from 0.7 times in 2011.
As a result, profit before tax amounted to €68.2 million in contrast to the pre-tax loss of €2.7 million registered in the previous financial year. After accounting for a deferred tax charge of €19.1 million (largely related to the fair value adjustment on the value of Palm City), the Company’s net profit amounted to €49 million (2011: net loss of €2.7 million).
The balance sheet shows total assets of €346.3 million representing a 19% increase over the 2011 comparable figure mainly due to the uplift in the fair value of the Palm City Residences. Meanwhile, total liabilities only increased by 3.3% to €193.9 million. Shareholders’ funds also grew by 47.5% to €152.4 million following the profit registered during the period under review and the uplift in the value of property. Compared to net debt of €112.8 million (2011: €97.5 million), MIH’s gearing ratio (net debt divided by net debt plus shareholders’ funds) amounts to 45.1%.
Medina Towers
The Directors reported on the progress achieved on the Medina Towers project with works on the sub and superstructures expected to commence shortly. MIH has a 25% shareholding in this project which will comprise a mix of luxury apartments, retail and office space complemented by conference and health & leisure facilities as well as 900 underground parking bays. MIH has to date invested a total of €13 million in this project.
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