Malita Investments plc - Interim Results
On 8 August 2019, Malita Investments plc published its condensed interim financial statements covering the six-month period ended 30 June 2019.
Performance Overview
During the first half of 2019, Malita registered a 6.1% increase in revenues to €4.15 million (H1 2018: €3.91 million). Most of the additional revenues came from the initial contribution related to the ‘Affordable Housing’ project which amounted to a net income of €0.21 million. On the other hand, revenues from the various leases of the MIA, VCP and the City Gate sites increased by a minimal 0.85% to €3.95 million.
On the expenditure side, administrative costs decreased by 17.1% to €0.24 million. Furthermore, the financial performance of Malita was boosted by a €27.4 million positive gain in the fair value of its investment properties compared to just €3.55 million in the first six months of 2018. As a result, operating profits surged to €31.4 million against €7.17 million in H1 2018.
Net finance costs amounted to €0.61 million, representing a decline of 6.8% over the same period last year as the substantial increase in finance income to €0.23 million outweighed the rise in finance costs to €0.84 million (H1 2018: €0.65 million).
Overall, Malita reported a pre-tax profit of €30.8 million. After accounting for a tax charge of €2.93 million, the net profit for the period under review amounted to €27.8 million.
The condensed Statement of Financial Position as at 30 June 2019 compared to the corresponding figures as at 31 December 2018 shows that net assets increased by 18.1% to €151.7 million which, in turn, translates into a net asset value per share of €1.0239 (31 December 2018: €0.8670 per share). The bulk of the increase in net assets emanated from the higher value of investment property (+€27.5 million). Meanwhile, total borrowings increased by 1.67% to €44.8 million but given the much higher increase in the company’s capital base, the gearing ratio (capital as total debt dividend by total debt plus equity) dropped to 22.8% compared to 25.5% as at the end of 2018.
Dividend
The Directors declared an unchanged net interim dividend of €0.00858 per share. This is payable on Friday 6 September 2019 to all shareholders as at close of trading on Monday 19 August 2019.
Outlook
In their commentary, the Directors of Malita explained that works on the development of twelve (out of a total of sixteen) sites in relation to the ‘Affordable Housing’ project are underway. Invitations to tender in respect of the development and completion of the remaining four sites will continue to be issued. The Directors also noted that Malita has ongoing negotiations on a number of projects and is also constantly considering and evaluating other potential projects.