Daily Market Highlights (26.08.2022)
MedservRegis generated an EBITDA of €4.8mln in H1
The MSE Equity Price Index dropped 0.56% to a four-month low of 3,609.583 points reflecting the declines in the ordinary shares of RS2, MIA, BMIT, Trident, VBL and Loqus. On the other hand, four other companies closed the day unchanged as overall trading activity in equities improved to €0.09 million compared to €0.04 million yesterday. Download today’s Equity Market Summary.
Today, MedservRegis plc published its interim financial statements showing that during the first six months of 2022, the Group generated revenues of €26.1 million, an EBITDA of €4.8 million, and a marginal net loss of €0.66 million. In their commentary, the Directors explained that despite the challenging macroeconomic environment, there are still opportunities for MedservRegis to grow into the medium to long term particularly in Libya, Cyprus, Egypt, the Middle East, Mozambique and Uganda. MedservRegis also noted that it is confident that it will meet the forecasts as provided in the recently published Financial Analysis Summary. The equity remained inactive today.
PG plc was the most actively traded equity today as it held on to the €2.16 level on four deals totalling 10,710 shares. Yesterday, PG published the financial results for the 2021/22 financial year. Revenues surged by 13.6% to a new record of just over €147 million reflecting the further growth achieved by the ‘Supermarkets & Associated Retail Operations’ as well as the ‘Franchise Operations’. Overall, the company reported a net profit of €12 million which is 14% higher than the previous comparable figure of €10.6 million and translates into a return on average equity of 23%. In their commentary, the Directors explained that despite the prevailing challenging macroeconomic conditions, PG started the 2022/23 financial year on a positive note from a revenue perspective although the increase in cost pressures are translating into lower margins. PG noted that it remains confident on the outlook for the coming years on the back of its solid business model which is based on the retail of foodstuffs and other essentials, as well as two franchise brands that offer excellent value for money at affordable prices.
Lombard Bank Malta plc traded flat at the €1.95 level on volumes totalling 10,100 shares.
Within the same sector, Bank of Valletta plc remained at the €0.85 level albeit on lacklustre volumes.
Simonds Farsons Cisk plc stayed at the €7.45 level on a single deal of 398 shares. Today, Farsons announced that its Board of Directors is scheduled to meet on Wednesday 28 September to consider and approve the interim financial statements for the six-month period ended 31 July 2022. The Directors will also consider the payment of an interim dividend.
The ordinary shares of RS2 Software plc shed 1.4% to an over three-year low of €1.38 level on 15,000 shares. On Wednesday, RS2 published its interim results showing that despite the marginal increase revenues, EBITDA grew by 7% to €4.15 million whilst net profit surged to €1.6 million compared to €1.09 million in H1 2021. On the one hand, the Group’s financial performance was dented by the prevailing macroeconomic headwinds and delays in business but boosted by a €2.13 million exchange gain on operating activities. RS2 noted that the results for H1 2022 vary when compared to the projections made at the time of the issuance of the preference shares in February 2021. Nonetheless, the Group continues to maintain its momentum and the execution of its strategy in all business segments as new markets were penetrated which will result in increased volume generation going forward. Overall, RS2 is now expecting to generate revenues of approximately €41 million for the 2022 financial year compared to the original forecast of €68.4 million. Furthermore, EBITDA is now anticipated to amount to €6.8 million (earlier projection of €11.1 million) whilst profit before tax has also been revised lower to €3.9 million compared to €7.6 million at the time of the issuance of the preference shares.
Also in the technology sector, BMIT Technologies plc moved 2.1% lower to the €0.47 level on a single deal of 4,300 shares.
Malta International Airport plc eased by 0.8% to the €5.90 level across 1,700 shares.
In the property sector, Trident Estates plc fell by 6.2% to the €1.37 level on 5,000 shares.
VBL plc tumbled by almost 16% to an all-time low of €0.212 on 9,352 shares. On Monday, VBL published its interim results showing a strong increase in revenues to €0.89 million compared to €0.20 million in H1 2021. Despite the increase in business, the company still reported a net loss of €0.13 million which however is inferior to the loss of €0.42 million reported in the first half of 2021.
On the Alternative Companies List, Loqus Holdings plc slumped to the €0.15 level albeit on trivial volumes.
The RF MGS Index erased most of yesterday’s uplift as it lost 0.18% to 929.934 points. Throughout this week, the RF MGS Index lost 1.27% – the sharpest weekly decline in ten weeks. Inflation concerns in the UK intensified as the energy regulator announced an 80% increase in the price cap of consumer energy bills with effect from October. Meanwhile, in Germany, the consumer climate indicator fell to a new record low primarily driven by concerns over high energy prices. Elsewhere in the US, this afternoon Federal Reserve Chairman Jerome Powell addressed a key economic symposium and indicated that the central bank will keep raising interest rates as necessary until high inflation is tamed.
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.