MPC registers 18% growth in operating profit

 

The MSE Equity Price Index declined for the third consecutive session as it fell by 0.46% to a four-month low of 3,735.607 points. The declines in APS, BOV and HSBC outweighed the gains in Grand Harbour Marina. Meanwhile, six other equities closed unchanged. Download today’s Equity Market Summary.

Malta Properties Company plc closed unchanged at the €0.36 level across three deals amounting to 62,534 shares. Today, MPC issued an Interim Directors’ Statement updating the market on its performance during the nine-month period ended 30 September 2024. Revenues surged by 17.9% to €4.32 million driven by the rental income from The Exchange at Spencer Hill in Marsa, which had welcomed its first tenant during the second half of last year. MPC explained that the increase in revenue also reflects additional rental income from the Mediterranean Building in Ta’ Xbiex which is fully occupied. In view of the higher level of income, operating profit increased by 18.4% to €3.26 million compared to €2.75 million during the corresponding period in 2023. The EBIT margin also improved slightly to 75.5%. Overall, the profit for the period amounted to €1.75 million, which is 50% higher than the reported figure of the same period in 2023 of €1.16 million. MPC explained that a new lease agreement with a government authority was secured for The Exchange at Spencer Hill in Marsa. As a result, the property will be fully leased out once works are completed over the course of 2025. Furthermore, a new lease agreement with the Ministry of Health was secured for the entirety of the Swatar property which was vacated by HSBC Global Services at the end of October. One floor of this property had been released earlier in the year and the new tenant leased this area from the end of Q1 2024. The company explained that the remaining three floors will be occupied by the same tenant once renovation works are completed in 2025.

A single trade of 5,000 shares left the share price of MaltaPost plc unchanged at the €0.48 level.

Simonds Farsons Cisk plc traded flat at the €6.70 level as 2,430 shares changed hands.

PG plc closed unchanged at the €1.86 level over three deals amounting to 1,800 shares.

Malta International Airport plc held the €5.85 level over trivial volumes.

The ordinary shares of RS2 plc closed unchanged at the €0.47 level on minimal activity.

Meanwhile, Bank of Valletta plc shed 0.6% to the €1.70 level across eight deals amounting to 13,550 shares.

Also in the banking sector, HSBC Bank Malta plc declined by 2.1% to the €1.41 level over four deals amounting to 6,300 shares.

APS Bank plc fell by 1.7% to the €0.57 level on a single trade of 8,400 shares.

Grand Harbour Marina plc increased by 1.1% to a one-year high of €0.935 on one deal of 4,712 shares.

Today, International Hotel Investments plc announced the reopening of Brussels’ historic Grand Hotel Astoria, after completing an extensive €150 million reconstruction and refurbishment. The company explained that QP, a Corinthia Group company, handled design and project management, while the Group’s hotel operating arm, Corinthia Hotels, now assumes the responsibility to manage the operation at the highest levels of luxury travel. The Hotel is owned by NLI Holdings in which IHI has a 50% stake. Corinthia Grand Hotel Astoria Brussels features 126 rooms and suites, together with a subterranean 1200 square-metre spa.

The RF MGS Index rose by 0.10% to reach a fresh two-year high of 939.049 points as markets are widely anticipating a rate cut by the ECB during this week’s upcoming monetary policy meeting scheduled for Thursday 12 December. Furthermore, practically all major investment banks are expecting the third consecutive rate cut by the Federal Reserve next week, despite that last Friday’s data showed that the US labour market remained much stronger than expected.

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell 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.