MIDI plc - Updated Financial Analysis Summary

On 21 June 2023, MIDI plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position in 2023:

• Revenues are expected to amount to €3.27 million (2022: €3.42 million) reflecting solely the income from rental activities since no inventory of property is available for sale. In this respect, MIDI explained that although more than 65% of the 63 apartments forming part of the ongoing Q3 development are already subject to a promise of sale agreement and deposits were received, the revenue cannot be recognised until the final deed of sale is published. The Q3 development is anticipated to be completed in mid-2025.
• In view of the absence of any property sales coupled with an expected increase in costs, MIDI is forecasting a negative EBITDA of €1.11 million compared to the negative EBITDA of €0.12 million recorded in 2022.
• Net finance costs are expected to remain virtually unchanged at €2.7 million.
• The share of profit from the joint venture that operates ‘The Centre’ at Tigné Point is anticipated to amount to €1.57 million compared to €1.98 million in 2022.
• In terms of financial position, total assets and liabilities are expected to climb to €252.8 million (+9.1%) and €154 million (18%) respectively.
• Total debt is projected to increase by 2.7% to €80.3 million, when including €16.6 million in lease liabilities. In view of the increase in debt coupled with a 2.4% reduction in equity to €98.8 million, the Group’s gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to rise to 44.8% (31 December 2022: 43.6%).