Daily Market Highlights (06.08.2021)

BMIT posts record results


The MSE Equity Price Index advanced by 0.43% to a 3-week high of 3,880.448 points on the back of the gains in Tigné Mall, RS2 and Plaza. Meanwhile, Lombard and BOV traded flat as overall trading activity amounted to nearly €0.1 million. Download today’s Equity Market Summary.

Today’s main highlight was the publication of the interim financial results of BMIT Technologies plc for the six-month period ended 30 June 2021. Revenues surged by 9.4% to a record (at interim stage) of €12.8 million (H1 2020: €11.7 million). Similarly, EBITDA grew by 11.8% translating into an EBITDA margin of 44.5% (H1 2020: 43.6%). Overall, BMIT reported a 13% increase in pre-tax profits to €4.38 million compared to €3.88 million in H1 2020. The Directors of BMIT explained that they are cautiously optimistic that the company’s current positive performance can be sustained further in the foreseeable future. Moreover, BMIT reiterated its objective for market expansion beyond Malta as the company continues to look out for opportunities to achieve this priority.

A single trade of 4,545 shares lifted the ordinary shares of RS2 Software plc by 2.3% to the €1.76 level.

Plaza Centres plc rose by 4.7% to a 6-week high at the €0.89 level as 5,529 shares changed hands.

Also in the property sector, Tigné Mall plc surged by nearly 24% as it regained the €0.75 level across two deals totalling 5,000 shares. Yesterday, Tigné Mall published its interim financial results for the six-month period ended 30 June 2021. Revenues increased by 25.6% to €2.6 million (H1 2020: €2.1 million). Despite the temporary closure of ‘The Point Shopping Mall’ between 11 March and 25 April 2021 (in line with the directives issued by health authorities), the company benefitted from an improvement in business conditions when compared to the same period in 2020. The financial performance of Tigné Mall was also positively impacted by lower net finance costs which eased by 19.2% to €0.3 million as the company continued to reduce its overall indebtedness. Overall, Tigné Mall’s pre-tax profits more than doubled to €1.1 million (H1 2020: €0.45 million). In their commentary, the Directors noted that notwithstanding the prevailing uncertainty, economic activity and consumer confidence levels have improved and prospects are better than last year. Moreover, the Board of Directors of Tigné Mall resolved to distribute a net interim dividend of €0.0067 per share (H1 2020: nil) to all shareholders as at close of trading on Wednesday 18 August 2021. The payment of the dividend will take place on Friday 3 September 2021.

Meanwhile, in the retail banking sector, Lombard Bank Malta plc traded flat at the €1.84 level across 34,281 shares whilst Bank of Valletta plc closed unchanged at the €0.895 level as 5,270 shares changed hands.

The RF MGS Index snapped a four-day winning streak as it eased by 0.03% to 1,107.192 points. In Europe, today a preliminary estimate showed payroll employment in the French private sector rose by nearly 240,000 to 19.8 million during Q2 2021, following a 91,000 increase in the previous three-month period. As a result, private payroll employment returned to its pre-crisis level. In Germany, industrial production fell by 1.3% in June, representing a third consecutive month of contraction. The latest reading added to signs that recovery is slowing in Europe’s biggest economy, as supply bottlenecks for intermediate goods continued to weigh on production. Meanwhile, US jobs growth accelerated in July with the jobless rate declining by 0.5 percentage points to 5.4%, the lowest level since March 2020 and below market expectations of 5.7%.

Yesterday, Malta Properties Company plc published its interim financial results covering the six-month period ended 30 June 2021. Revenues rose by just under 14% to €1.82 million (H1 2020: €1.6 million) on the back of the increase in rental income which mostly emanated from the contribution of the HSBC Contact Centre located in Swatar which was acquired by MPC in September 2020. MPC’s financial performance was also boosted by a gain on the fair value of investment property which amounted to €1.93 million. Overall, MPC reported a pre-tax profit of €2.9 million compared to €0.91 million in H1 2020. In their commentary, the Directors of MPC explained that the Group expects to make significant progress on its development projects this year. The Zejtun development is expected to be completed toward the end of 2021. MPC has also advanced in the planning application process for its Spencer Hill site in Marsa and the permit is expected to be issued by the end of 2021.