On 29 August 2022, MIDI plc published its condensed interim financial statements covering the six-month period ended 30 June 2022.
Revenues amounted to just €1.52 million reflecting the rental income from the lease of properties as the company did not have any units for sale. In this respect, MIDI also noted that the revenues generated by its ‘Property & Rental Management’ arm is now almost at par to the level prior to the pandemic as during the first six months of 2022 it generated revenues of €1.5 million compared to €1.57 million in H1 2019.
In view of the absence of any property available for sale, operating costs dropped markedly to €1.69 million compared to €4.73 million in the first half of 2021. Nonetheless, MIDI still reported a marginal operating loss of €0.16 million.
Meanwhile, net finance costs increased by 1% to €1.27 million whilst the contribution from Mid Knight Holdings Ltd (which is the owner of ‘The Centre’ commercial block) eased slightly to €0.99 million.
Overall, MIDI reported a pre-tax loss of €0.44 million compared to the pre-tax profit of €1.63 million in the previous corresponding period. After accounting for a tax charge of €0.09 million, the net loss for the period under review amounted to €0.53 million.
The condensed Statement of Financial Position as at 30 June 2022, when compared to the corresponding figures as at the end of 2021, shows that the amount of net assets contracted by 0.6% to €101.8 million which, in turn, translates into a net asset value per share of €0.475. Total debt dropped by 3.2% to €71.6 million (when including lease liabilities amounting to €15 million) whilst the company’s gearing ratio slipped to 41.3% compared to 42% as at the end of 2021.
In their commentary, the Directors explained that it does envisage to have any property sales recorded in its financial statements in the second half of 2022. As a result, the company’s performance for the full year will only reflect the income from its ‘Property & Rental Management’ arm.
Update on the Manoel Island Project
The development of Manoel Island continues to play a prominent part in the company’s activities. Discussions with Government are ongoing with regards to the specific remedies available in the Deed of Emphyteusis entered into on 15 June 2000 which will help to partly mitigate the negative impact of the reduction of development volumes resulting from the discovery of archaeological findings on the Manoel Island site.
The discovery of these findings had necessitated a revision to the Manoel Island masterplan which resulted in a reduction of development volumes from 127,000sqm to 95,000sqm. As previously announced, the Planning Authority (“PA”) has approved the Outline Permit for the revised Manoel Island Masterplan on 16 September 2021. This was followed by the approval of the Environmental Impact Assessment (“EIA”) by the Environmental and Resources Authority (“ERA”). Although the Outline Permit is not subject to appeal itself, the decision by ERA to approve the EIA has been appealed by third parties.
Meanwhile, following the signing of a non‐binding memorandum of understanding with AC Enterprises Limited in December 2021 to explore the possibility of establishing a joint venture with regards to the Manoel Island development, MIDI has continued with intensive negotiations and discussions with the party in question but as yet no transaction has been concluded. In parallel to the ongoing separate discussions with Government and AC Enterprises Limited, the detailed design process has continued in earnest and it is expected that the full development application for the Manoel Island development will be submitted to the PA towards the end of 2022
Update on the ‘Q3’ Project
In the first six months of 2022, MIDI commenced the works in relation to the development of the final residential building at Tigné Point. This project will comprise 63 apartments (which will be launched on the market in H1 2023) and underground parking facilities as well as the landscaping, paving and embellishment of the Garden Battery and adjoining areas.