Malita Investments plc - Interim Results

On 23 August 2021, Malita Investments plc published its condensed interim financial statements covering the six-month period ended 30 June 2021.

Performance Overview

During the first half of 2021, Malita registered a 1.7% increase in revenues to €4.27 million. Income from the company’s operating sites (namely the Open Air Theatre and the Parliament Building in Valletta, as well as the airport and the Valletta Cruise Port) increased by 0.2% to €4.11 million. On the other hand, the net amount of recognised project management fees related to the ‘Affordable Housing’ project (reflecting the accounting treatment of revenues and costs related to the corresponding concession arrangements) increased to €0.16 million compared to €0.09 million in H1 2020.

On the expenditure side, administrative costs dropped sharply to €0.2 million compared to €0.42 million in H1 2020. As a result of the increase in revenues and the decline in costs, the operating profit surged by 7.7% to €4.07 million compared to €3.78 million in the first half of 2020.

The financial performance of Malita was significantly dented by the negative movement amounting to €19.3 million in the fair value of its operating sites. In this respect, the company explained that this was due to the upward movement in secondary market yields which, in turn, is derived with reference to the yield-to-maturity on the longest-term available Malta Government Stock in issue plus an additional premium reflecting the risk inherent in the underlying future cash flows. Meanwhile, net finance costs contracted by 22.6% to €0.48 million compared to €0.63 million in H1 2020.

Overall, Malita reported a pre-tax loss of €15.7 million. After accounting for a tax income of €0.72 million, the net loss for the period under review amounted to just under €15 million.

The condensed Statement of Financial Position as at 30 June 2021 compared to the corresponding figures as at 31 December 2020 shows that net assets contracted by 10.4% to €147.4 million which, in turn, translates into a net asset value per share of €0.995 (31 December 2020: €1.111 per share). Total borrowings increased by 2.8% to just over €54 million as during the period under review, Malita took on additional short-term loans in relation to the Affordable Housing project. On the other hand, total assets dropped by 5.4% to €235.1 million largely reflecting the decline in the value of investment property as well as the lower balance of contrast assets.

Dividend

The Directors of Malita declared a net interim dividend of €0.0112 per share. This is payable on Friday 24 September 2021 to all shareholders as at close of trading on Thursday 2 September 2021.

‘Affordable Housing’ Project

In their commentary, the Directors of Malita explained that the ‘Affordable Housing’ project, which consists of a total of 16 property sites in a number of locations across Malta, is proceeding well. Excavation of all the property sites is substantially complete except for the Luqa site on which excavation works are due to start in due course.

During the first six months of 2021, Malita issued further invitations to tender for the excavation, finishes, and lift services. Excavation works have been awarded for one site, mechanical and electrical works have been awarded for one site, finishing works have been awarded for five sites, and lifts supply and installations for five sites. Invitations to tender will continue to be issued in respect of the construction, mechanical and electrical works, finishes, and lifts services for the remaining sites.

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Malita Investments plc – Condensed Interim Financial Statements for the six-month period ended 30 June 2021.

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