PG generates record interim profits

The MSE Equity Price Index increased by 0.24% to 3,674.137 points as the gains in VBL and Main Street Complex outweighed the decline in GO. Meanwhile, eleven equities remained unchanged as the total trading value in local equities was muted at €0.08 million. Download today’s Equity Market Summary.

Today, PG plc published its interim financial results for the six-month period ended 31 October 2023. Revenue increased by 19.1% to a new record (at interim stage) of €96.2 million (FY2022/23 €80.8 million). Operating costs increased by 19.4% to €85.4 million reflecting the overall growth in business as well as the impact of the Group’s decision to absorb an element of the cost price increases to maintain its competitiveness. Nonetheless, the operating profit in absolute terms increased by 16.9% to €10.9 million compared to €9.30 million in the same period last year, which translates into a marginally lower EBIT margin of 11.3% compared to 11.5% in H1 2022/23. Overall, PG reported a pre-tax profit of €10.1 million. After accounting for a tax charge of €2.89 million, PG’s net profit amounted to €7.21 million, which is 18.2% higher than the €6.10 million figure reported for H1 2022/23. The net profit reported during the period under review translates into an annualised return on equity of 23.4% compared to 22.1% in H1 2022/23. The equity remained inactive today.

VBL plc (+53.3%) and Mainstreet Complex plc (+8.6%) both moved higher to the €0.23 and €0.38 levels respectively, albeit over trivial volumes.

GO plc dropped by 3.4% to a three-week low of €2.82 across three trades totalling 1,885 shares. GO partially recovered from an intra-day low of €2.80 (-4.1%)

Meanwhile, HSBC Bank Malta held the €1.26 level on one deal of 6,000 shares.

Also in the banking sector, Bank of Valletta plc (13,616 shares) and APS Bank plc (12,769 shares) both traded flat at the €1.25 and €0.55 levels respectively.

A single trade of 1,500 shares left the share price of Malita Investments plc unchanged at the €0.50 level. Last Thursday, Malita held an Extraordinary General Meeting, in which the company provided updated information with respect to the ongoing Affordable Housing Project, which is estimated to cost approximately €120 million. In this respect, Malita explained that the funding for the project is composed of €58 million in existing bank funding, an additional €30 million in bank debt with approvals in place, and the remaining €33 million is anticipated to be raised via a proposed Rights Issue in the first quarter of 2024.

International Hotel Investments plc closed unchanged at the €0.46 level after failing to hold to an intraday high of €0.466 (1.3%) across three trades totalling 32,114 shares.

Malta International Airport plc held the €5.75 level on two trades of 2,100 shares.

Tigné Mall plc held the €0.82 level on two trades of 10,450 shares.

Simonds Farsons Cisk plc stayed at the €6.90 level on muted activity.

Mapfre Middlesea plc and Malta Properties Company plc also closed unchanged at the €1.20, and €0.302 levels respectively amid lacklustre volumes.

Santumas Shareholdings plc held the €1.40 level on muted activity. Tomorrow, the Board of Santumas is scheduled to meet to consider and approve the interim financial statements for the six-month period ended 31 October 2023.

The RF MGS Index moved 0.09% higher to 900.430 points. Today, ECB governing council member Yannis Stournaras stated that the ECB must see inflation stable below 3% by the middle of next year before deciding on rate cuts. Meanwhile, in Germany, business expectations unexpectedly fell to a three-month low in December mainly driven by worsened sentiment in the manufacturing industry. Elsewhere in the US, homebuilder sentiment improved in December following a drop in mortgage rates that are expected to increase demand for the residential property market.

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.