MIDI plc - Interim Results

On 21 August 2019, MIDI plc published its condensed interim financial statements covering the six-month period ended 30 June 2019.

Performance Overview

During the period under review, MIDI generated €9.62 million in revenues mostly reflecting the delivery of an additional number of ‘Q2’ apartments to their respective owners. Furthermore, income from the rental and management of property amounted to €1.57 million, representing a decline of 15.6% when compared to the corresponding period last year.

Total costs amounted to €5.31 million leading to an operating profit of €4.31 million which is much lower than the €14.4 million figure reported in 2018 reflecting the smaller number of ‘Q2’ apartments available for delivery. On the other hand, the financial performance of MIDI was positively impacted by the higher contribution from its 50% shareholding in Mid Knight Holdings which amounted to €0.8 million compared to €0.77 million in H1 2018. Furthermore, net finance costs contracted by 13.6% to €0.9 million (H1 2018: €1.04 million) as MIDI reduced its total amount of borrowings by €2.91 million (year-on-year) to €59.3 million.

Overall, MIDI reported a pre-tax profit of €4.22 million and a net profit of €2.96 million.

The condensed Statement of Financial Position as at 30 June 2019, when compared to the corresponding figures as at the end of 2018, shows that the amount of net assets increased by 1.3% to €98.7 million. This translates into a net asset value per share of €0.4609 compared to €0.4550 as at 31 December 2018. The increase in net assets was mostly due to the reduction in the total amount of borrowings which also led to a slight improvement in the company’s gearing ratio to 37.6% compared to 37.8% as at the end of 2018.

Outlook

In their commentary, the Directors explained that the company’s outlook for the second half of the year is positive despite an expected reduction in profitability due to the much lower amount of ‘Q2’ apartments available for delivery. The company also provided an overview of its two upcoming developments – namely Manoel Island and ‘Q3’:

Manoel Island

MIDI explained that it is finalising the Masterplan and the design of the first phase of this project, which have been both entrusted to the international architectural firm Foster+Partners. The Outline Development Permit was approved by the Planning Authority on 7 March 2019, however the permit is currently subject to an appeal lodged by the NGO ‘Flimkien għal Ambjent Aħjar’. In the meantime, the first works contract relating to site enabling works has been awarded and works are now underway.

The detailed design of the first phase is at an advanced stage and a number of full development applications have been submitted to the Planning Authority. MIDI has also commenced the process of identifying a principal contractor to undertake the works associated with Phase 1 of the project. It is envisaged that this process will be concluded by year-end with vertical construction of the first residential clusters and the development of the infrastructure as contemplated by the Deed of Emphyteusis earmarked to commence during the first quarter of 2020 subject to the issue of the relevant permits.

With respect to the discussions with Tumas Group Company Limited, MIDI noted that these are ongoing as both parties are exploring a number of alternative opportunities. Once negotiations come to a close, a company announcement will be issued in line with the Listing Rules requirements.

‘Q3’

MIDI submitted a full development application for the final phase of the Tigné Point development, to be known as the Q3 residential block. Provided that the permit is issued by the end of this year, the company plans to commence works during 2020.

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MIDI plc – Condensed Interim Financial Statements for the six-month period ended 30 June 2019.