MIDI plc - Updated Financial Analysis Summary

On 21 June 2019, MIDI plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the 2018 financial results, a comparison of the 2018 actual results with the forecasts as published in the previous FAS dated 20 June 2018, as well as the forecasts for the current financial year ending 31 December 2019.

The main highlights of the 2019 financial performance of MIDI are as follows:

  • Revenues are expected to amount to €16.7 million reflecting the sale and delivery of six of the remaining fourteen residential units as well as the three commercial units within Q2 for a total consideration of €13.4 million, supplemented by additional revenues from property rental and management activities which are expected to amount to €3.2 million.
  • EBITDA is anticipated to amount to €5.96 million.
  • Depreciation charges and net finance costs are expected to ease minimally to €2.5 million. Furthermore, the share of profits from MIDI’s investment in ‘The Centre’ office block (through the 50%-stake in MidKnight Holdings Ltd) is forecasted to increase by almost 4% to €1.4 million as the commercial building remains entirely leased out.
  • Pre-tax profits are expected to amount to €4.85 million, which would lead to a net profit of €3.51 million after accounting for a tax charge of €1.34 million.

The forecasts also show that the company is projecting generating a free cash flow of €7.43 million on the back of the expected repayment of a €9.7 million loan which MIDI had advanced to MidKnight Holdings Ltd. This amount of free cash flow is expected to be utilised by MIDI towards the repayment of existing borrowings. In fact, the company is projecting ending the 2019 financial year with a net debt position of €40.3 million compared to €45.8 million as at 31 December 2018. Coupled with the expected slight increase in its capital base to €99.2 million, MIDI’s gearing ratio (calculated as total debt dividend by total debt plus equity) is anticipated to improve to 33.2% from 37.8% as at the end of 2018. Moreover, the forecasted equity balance of €99.2 million as at 31 December 2019 translates into an additional uplift in the net asset vale per share to €0.4634 from €0.455 per share as at the end of 2018.

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MIDI plc – Financial Analysis Summary dated 21 June 2019.