PG announces strong year-end results

MSE Trading Report for week endingAugust11,2017

The MSE Equity Total Return Index registered an advancement of 0.35 per cent, to close at 8,948.564 points. A total of 19 issues were active during the week, out of which 10 closed lower, six gained ground, while three closed flat. Total turnover during the week spiked from €2.16 million to €4.92million, as six companies have reported their interim and/or year-end results.

On Friday, PG plc issued its financial statements for the year ended April 30, 2017. The Company registered an annual profit before tax of €10.8 million for the period ended April 30, 2017, compared to €6.7 million registered in the same period in 2016. This surge in annual profit before tax can be explained further by a number of material changes in the composition of the Group. The Group increased its shareholding in PAVI Supermarket from 50% to 100% on August 31, 2015. Moreover, PAMA Shopping Village opened for business in late October 2015, and the financial year ended April 30, 2016 accordingly only includes six months operation of the supermarket and its related retail outlets; whereas a full year’s trading results of this business are reflected in the financial year ended April 30, 2017. The retail mall within the PAMA Shopping Village, including the Zara Home outlet situated therein, commenced operations in November 2016.

Revenue for the period under review amounted to €91.7 million , a rise of 65.8 per cent from 2016. Earnings per share (EPS) increased to €0.35 from 0.25. In line with the Company’s policy as declared in the Company’s prospectus dated March 27, 2017, the first dividends payable will be for the current financial year ending April 30, 2018. Despite these positive results, the equity traded flat on for occasions. A total turnover of €46,579 was generated among 14 deals, as the equity edged marginally higher to reach a fresh all-time high of €1.40.

Last Thursday, the Board of Directors of FIMBank plc met in London to approve the Consolidated and the Bank’s Interim Financial Statements for the six months ended June 30, 2017.

The Group registered a profit before tax of $4.23 million compared to $2.15 million registered during the same period in 2016. Operating income for the period under review amounted to $25.69 million, an increase of 17.4 per cent from 2016. Meanwhile, earnings per share increased to $1.32 from the $0.38 registered in 2016.

The Directors do not recommend the payment of an interim dividend for the period under review. The bank’s equity price rallied strongly ahead of the interim results announcement on Wednesday, reaching a four-month high closing price of $0.80, to then settle marginally lower at $0.799 – representing a week-on-week gain of 12.5 per cent over a total turnover of 340,000 shares.

Meanwhile, the board of directors of Bank of Valletta plc has decided to voluntarily provide early disclosure of summary financial information and its subsidiary entities for the interim six-month period ended June 30, 2017.

The Group registered an increase in profit before tax by €5 million, or 8%, higher than the comparative period in 2016 - adjusted to exclude for the one-off gain arising on the disposal of the Bank's interest in Visa Europe. Return on Equity (ROE) before tax stood at 18 per cent, whereas, net interest income for the period under review amounted to €72 m -a decline of 5.3 per cent from 2016. This was mainly due to the even lower interest rate environment experienced in 2017.

The Bank is planning to strengthen its capital base by issuing €150 million in a fresh issue of share capital. This capital will be raised via a rights issue – details of which will be provided later on. As a domestically significant institution, the Bank is required to hold capital buffers higher than those for less significant banks. Therefore additional regulatory capital buffers will enable the Bank to undertake new investments, sustain lending activity and distribute appropriate dividends to its shareholders. Despite registering positive result, the equity closed 0.8 per cent lower at €1.955. Total turnover in the equity stood at €751,552, spread over 146 transactions.

In the same sector, HSBC Bank Malta plc was the weakest performer among its peers, as the equity hit a seven-month low of €1.91 intra-week, to end the week at the €1.955 price level. A total of 11 trades managed to generate a total turnover of €51,665. The banking equity turned ex-dividend last Wednesday, whereby interested investors are no longer entitled to receive the company’s next dividend payment of three cents net per share. Meanwhile, Lombard Bank plc shares followed suit as two trades on Friday amounting to 2,130 shares saw the equity close 1.3 per cent lower at €2.36.

Last Tuesday, Malta International Airport plc announced that the number of passengers passing through the terminal in July increased by more than 90,000, signifying an upturn of 15.5 per cent over the same month last year. July’s 675,111 passenger movements exceeded the airport’s previous passenger traffic record, held by August 2016, by 12 per cent.

Passenger numbers from these markets flourished as a result of enhanced capacity and flight frequencies on routes such as Glasgow, Bari, Frankfurt, Lyon, and Madrid, as well as the launch of new routes including Bordeaux and Valencia. Despite registering positive traffic result, the equity lost 0.6 per cent of its value to close at €4.20 - 11 trades generated a total turnover of €165,361.

In the oil and gas industry, Medserv plc shares started off the week on a negative note, hitting a two-month low of  €1.20 on Monday. The equity strongly rebounded during Tuesday’s session, to close the week 7.4 per cent higher at €1.343. A total of 241,634 shares were exchanged over 26 trades. The company is expected to announce its interim results on August 23.

RS2 Software plc shares closed the week slightly in the red, down by 0.1 per cent to €1.788. A total turnover of €67,277 was generated among eight trades. Similarly, Maltapost plc shares lost one per cent of its share price to close at €1.98 – hitting a two-week low.

On a more positive note, three trades of 15,894 shares in International Hotel Investments plc saw the equity price move up by three per cent to close at €0.618

During the meeting of the board of directors of Malita Investments plc held on Tuesday August 8, 2017 the Company’s condensed interim financial statements for the six months ended June 30, 2017 were approved.

The company registered a profit before tax of €9.7m, compared to €4.9m registered during the same period in 2016. Revenue for the period under review amounted to €3.53 million, an increase of 1.8% from 2016. Meanwhile, earnings per share decreased to 1.13 from the 2.66 registered in 2016.

The Directors of the Company have also approved the payment of a gross interim dividend €1,995,026 or €0.0132 per share equating to an interim net dividend of €1,270,767 or €0.00858 per share. The decline in earnings per share was predominantly a result of a €7.7 deferred taxation provision on investment property. The interim dividend will be paid on September 7, 2017 to the Shareholders on the Company’s share register at close of business at the Malta Stock Exchange on August 18, 2017. The equity advanced by 2.6 per cent during the week to close at €0.759 - as four deals of 168,500 shares were exchanged.

Last Monday, Malta Properties Company plc announced that the Board of Directors of the Company approved the Group Interim Unaudited Financial Statements for the six-month period ended June 30, 2017.

The Group  registered a profit before tax of €727,774m compared to €928,358m registered during the same period in 2016. Revenue from leasing of property for the period under review amounted to €1.54 million, a decrease of 7.5% from 2016. Meanwhile, earnings per share decreased to €0.004 from the €0.005 registered in 2016.

The Board of Directors has resolved to determine the extent of any dividend distribution for 2017 on the basis of the full year results. Accordingly, no dividends are declared upon the issue of the results for the six-month period ended June 30, 2017. The equity declined by 2.9 per cent during the week to close at €0.50 – to reach its all-timelow since its spin-off back in May 2016.

Last Thursday, Tigne’ Mall plc announced that the Board of Directors of the Company considered and approved the condensed Interim Financial Statements for the six-months ended June 30, 2017.

The Group registered a profit before tax of €1.56m compared to €1.42m registered during the same period in 2016. Revenue for the period under review amounted to €2.93 million, an increase of 3.5% from 2016. Meanwhile, earnings per share increased to €0.019 from the €0.014 registered in 2016.

The Directors have also declared an interim net dividend payment of €726,150 (2016: €705,000) equivalent to €0.0128 per nominal €0.50 share.  The interim dividend will be paid on August 31, 2017 to shareholders on the Company’s register at the Central Securities Depositary of the Malta Stock Exchange at close of business on August 17, 2017. The equity generated a staggering €2.9m in turnover over five deals, closing the week 4.1 per cent lower at €0.93.

Last Wednesday, MIDI plc advised that further to its Company Announcement issued on August 4,2017 the Board  meeting  at  which  the  half  yearly  report  and  accounts  for  the  period ended  June 30, 2017  will  be  considered and approved, has been rescheduled for August 28, 2017. The equity closed unchanged during the week at €0.31.

Plaza Centre plcshares registered the weakest performance among its peers as the equity closed in the red by 4.3 per cent to close at €1.10.

On the same note, Mapfre Middlesea plc shares hit a two-year low, closing the week at €1.855, as six deals were dealt over slim volume.

Meanwhile, Santumas Shareholdings plc shares reached a fresh all-time high at €2.20. A total of four deals were struck over 14,000 shares.Last Friday, the Board of Directors announced that it is scheduled to meet on August 18, 2017 to consider and approve the Company's Audited Financial Statements for the Financial year ended April 30, 2017.

Despite being active during the week, GO plc and Loqus Holdings plc shares closed flat at €3.60 and €0.175 respectively.

In the sovereign debt front, a total of 24 issues were active, as 14 gained ground, eight closed the week in negative territory, while two closed flat.  Meanwhile, in the corporate debt front, a total of 30 issues were active, out of which eight closed lower, 13 closed higher, while nine remained unchanged.








 This article which was compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the MFSA and is a Member of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com

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