On 23 April 2021, MIDI plc published its Annual Report and financial statements for the year ended 31 December 2020.
During 2020, MIDI recorded a substantial drop in revenues to just €2.82 million (2019: €27.7 million) as the company only had three units available for sale. Two of these units are now subject to a promise of sale agreement and the deeds of sale are expected to be concluded in H1 2021. Most of the income generated by MIDI throughout 2020 emanated from the ‘Rental and management of property’ segment which amounted to €2.6 million compared to €3.4 million in 2019. The drop in rental and management income was due to the impact of COVID-19 as MIDI granted concessions to the tenants of its commercial properties and the car park operator.
Given the reduction in business activity, total operating costs dropped considerably to €3.5 million. However, MIDI still reported an operating loss of €1.2 million compared to an operating profit of €11.7 million in 2019. Meanwhile, net finance costs increased by almost 11.4% to €2.3 million reflecting the non-recurrence of the interest income from MIDI’s joint-venture in ‘The Centre’ business block which, in 2019, amounted to €0.4 million. On the other hand, MIDI’s share of profit from ‘The Centre’ increased by 16.4% to €1.89 million reflecting the higher level of revenues generated by the business block in 2020 amounting to €5.7 million compared to €5.4 million in 2019.
Overall, MIDI reported a pre-tax loss of €1.6 million which, after accounting for a tax charge of €0.5 million, led to a net loss of €2.1 million.
The Statement of Financial Position as at 31 December 2019 shows that total assets decreased by 3% to €227.6 million largely reflecting the reduction in cash balances to €11.5 million compared to €21.9 million as at the end of 2019. Similarly, total liabilities declined by 3.7% to €125.8 million mostly due to the reduction in trade and other payables. Accordingly, the company’s equity base contracted by 2% to €101.8 million which, in turn, translates into a net asset value per share of €0.4755.
In view of the current uncertainties caused by the COVID-19 pandemic, and in order to preserve the cash resources, the Board of Directors decided not to recommend the payment of a dividend for the 2020 financial year.
In their commentary to the 2020 Annual Report, the Directors of MIDI explained that the company continued to focus on the Manoel Island project during 2020. Following the discovery of archaeological findings, MIDI prepared a revised Masterplan which envisages a reduction in development volumes from the previously approved 127,000 sqm to 95,000 sqm, as well as an increase in the areas dedicated to open spaces to 192,000 sqm from 175,000 sqm. Although the loss of the development volumes will impact the profitability of the project, this impact is partly mitigated by provisions of the Deed of Emphyteusis which provide for specific remedies.
In addition to the Manoel Island project, MIDI has also been working on its final development at Tigné Point – i.e. the ‘Q3’ residential block. This will consist of 63 apartments and underground car parking. A full development permit was granted by the Planning Authority in April 2020 but this is subject to an appeal. Notwithstanding this, MIDI is continuing with both the design and procurement processes of the development in order to be in a position to commence works immediately should the appeal be decided in MIDI’s favour.