MIDI plc - Interim Results
On 27 August, MIDI plc published its interim results covering the six-month period to 30 June 2012. Total group revenue during the first half of 2012 dropped by 78.2% to just under €5 million. MIDI derives its revenue from the development and sale of property as well as from property rental and management of The Point, the car park and other retail and commercial outlets forming the project at Tigne Point. Revenue generated from property rental and management increased by 18.6% to €2.77 million as both ‘The Point’ shopping mall and also the underlying car park registered improved performances. Moreover, income from a number of retail outlets within Pjazza Tigné also contributed to the higher revenue figures.
On the other hand, revenue generated from the development and sale of property dropped substantially to €2.22 million (H1 2011: €20.53 million). MIDI again re-iterated that the delays experienced in the issuance of permits by MEPA for the next phases of Tigné Point slowed down the project’s pace of development activity resulting in a very limited number of apartments becoming available for sale. The Directors also reported that this is in line with forecasts as the number of residential units that were delivered decreased substantially since contracts of sale for most of its stock of apartments were completed by the end of 2011.
Construction works during the six months under review were directed towards the completion of the Pjazza Tigne apartments and these are expected to be completed and delivered during the second half of the year.
During the first six months of 2012, cost of sales dropped by 83.7% to €2.96 million in line with lower apartment sales and this impacted the Group operating profit which declined to €1.12 million.
Net interest paid edged 5.4% higher to €2.25 million. During the period under review, MIDI’s bankers and a number of restricted shareholders supported the group’s short-term financial requirements. It was reported that during the first six months of 2012, a number of shareholders advanced €3 million to the company.
After accounting for the share of losses from the joint venture with Siemens, MIDI reported a loss during the period of €1.05 million compared to a profit of €1.03 million during the first half of 2011.
The balance sheet as at 30 June 2012 shows total assets of €234.1 million. The decline in assets in recent months occurred as MIDI delivered a number of apartments to their owners. Total borrowings edged 3.0% higher to €98.6 million while equity dropped 1.6% to €63.84 million mainly due to the loss incurred during the period under review. As at 30 June 2012, MIDI’s net asset value per share stood at €0.298. The increase in borrowings and lower equity pushed the gearing ratio up to 60.7%.
In the interim results, the Directors also noted that construction works on the final phases of Tigne Point will commence shortly. This involves the Business Centre which will have a rentable area of 14,000 sqm and 102 additional residential apartments. Works on the T17 East block, which comprises of 36 apartments, are expected to commence in the fourth quarter of 2012.
MIDI also indicated that it expects to experience low property sales during the second half of 2012 due to the limited residential units available. In view of the limited stock of apartments available for sale, MIDI is expecting to incur an overall operational loss for the 2012 financial year.
Download a copy of the MIDI plc 2012 Half-Year Report