Malita Investments plc - Interim Results
On 23 August 2022, Malita Investments plc published its condensed interim financial statements covering the six-month period ended 30 June 2022.
Revenues eased by 1.6% to €4.21 million due to the drop in the net income related to the ‘Affordable Housing’ project (reflecting the accounting treatment of revenues and costs) to €0.09 million compared to €0.16 million in H1 2021. On the other hand, the 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 sites) remained at €4.11 million.
On the expenditure side, administrative costs increased by 34.3% to €0.27 million compared to €0.20 million in H1 2021. As a result, operating profit dropped by 3.4% to €3.94 million compared to €4.07 million in the first half of 2021.
The financial performance of Malita was significantly dented by the negative movement amounting to €32.5 million (H1 2021: loss of €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 30% to €0.34 million compared to €0.48 million in H1 2021.
Overall, Malita reported a pre-tax loss of €28.9 million. After accounting for a tax income of €1.74 million, the net loss for the period under review amounted to €27.2 million (H1 2021: loss of €15 million).
The condensed Statement of Financial Position as at 30 June 2022, compared to the corresponding figures as at 31 December 2021, shows that net assets contracted by 20.8% to €111.4 million which, in turn, translates into a net asset value per share of €0.7524 (31 December 2021: €0.9501 per share). Total borrowings increased by 16% to €89.1 million as Malita took on additional long-term loans in relation to the ‘Affordable Housing’ project. On the other hand, total assets dropped by 8% to €223.8 million reflecting the decline in the value of investment property.
The Directors of Malita declared an unchanged net interim dividend of €0.0112 per share. This is payable on Thursday 29 September 2022 to all shareholders as at close of trading on Friday 2 September 2022.
In their commentary, the Directors of Malita explained that the ‘Affordable Housing’ project has entered a new phase as some sites have been completed and started welcoming tenants. Moreover, as all excavation work has been completed except for the sites located in Luqa and Zebbug, Malita is continuing with the issuance of new invitations for tender for the unfinished sites.
Elsewhere, during the first six months of 2022, Malita issued an expression of interest to all owners or emphyteuta of band club properties located in Malta and Gozo to participate in a scheme. Malita explained that it received offers to purchase band clubs and these are currently in negotiation stage.