MIDI plc - Full-Year Results

On 25 April 2023, MIDI plc published its Annual Report and Financial Statements for the year ended 31 December 2022.

Performance Overview

Revenue amounted to €3.41 million compared to €9.42 million in 2021 as MIDI had no inventory of residential apartments for sale during 2022. In fact, revenues from the ‘Development and Sale of Property’ segment amounted to just €0.23 million compared to €6.6 million in 2021. Meanwhile, income generated from the ‘Rental and Management of Property’ segment improved to €3.19 million compared to €2.81 million in 2021 as the company did not provide any rent concessions to its tenants in 2022 in contrast to the previous year.

Total operating costs (net of other income) also dropped sharply to €3.77 million compared to €7.55 million in the previous year when MIDI accounted for the costs related to the sale of the last remaining units within the ‘Q2’ block.

Meanwhile, the financial performance was dented by a €1.05 million loss in fair value attributable to investment property. As a result, MIDI reported an operating loss of €1.41 million compared to the operating profit of €1.86 million recorded in 2021

Net finance costs increased by 10.4% to €2.70 million as the company took on additional bank borrowings. Furthermore, MIDI’s share of profit from its 50% shareholding in ‘The Centre’ eased by 2.4% to €1.98 million.

Overall, MIDI reported a pre-tax loss of €2.12 million compared to a pre-tax profit of €1.5 million in 2021. After accounting for a tax charge of €0.15 million, the net loss for the year amounted to €2.28 million.

The Statement of Financial Position as at 31 December 2022 shows that total assets increased by 2.7% to €231.9 million largely reflecting the increase in inventories related to its development project (+€9.9 million to €140.6 million). Total liabilities increased by 5.9% to €130.6 million mostly due to the increase in borrowings (+€3.09 million to €62.7 million). Accordingly, the company’s equity base contracted by 1.1% to €101.3 million which translates into a net asset value per share of €0.4729 (31 December 2021: €0.4781).

Outlook

MIDI announced that in January 2023, the ‘Q3 – Fortress Gardens’ apartments were launched on the market. This relates to the final development at Tigne Point and consists of 63 apartments, underground parking, and the embellishment of the Garden Battery and adjoining areas. The company stated that the response was very positive and more than 60% of the launched apartments are currently either subject to a reservation agreement or to a promise of sale agreement. The Directors explained that upon the delivery of these apartments in 2025, the Group will be in a position to register the profits made from these sales.

With respect to the development of Manoel Island, the Directors noted that 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 mitigate in part the impact of the reduction of development volumes resulting from the discovery of archaeological finds on the Manoel Island site. The discovery of these finds had necessitated a revision to its Manoel Island masterplan which resulted in a reduction of development volumes from 127,000sqm to 95,000sqm. Meanwhile, discussions with AC Enterprises Limited to explore the possibility of establishing a joint venture with respect to the development of Manoel Island have continued but no transaction has been concluded yet. MIDI also added that it submitted the full development permit application for Manoel Island to the Planning Authority in December 2022.