MaltaPost plc at record high following positive results

The MSE Index partially erased last weeks gain as it fell by 0.2 per cent, to close at 3,782.405 points. Activity was spread across 15 equities of which seven gained ground, six declined and two closed unchanged.

MaltaPost plc shares were the best performers having appreciated by €0.05 or 3.5 per cent, closing at its record high of €1.50. The postal services operator’s shares were negotiated over two deals of 2,569 shares.

The company registered a profit before tax of €2.5m for the six month period ended March 31, 2015, compared to €1.2m registered in 2014. Revenue for the period under review amounted to €13.3m, an increase of 13.8 per cent from 2014. Meanwhile, earnings per share increased to €0.05. This positive trend in profitability is expected to taper off in the coming months due to a number of seasonal factors and the one-off write-backs of previously accrued expenses.

In the banking industry, HSBC Bank Malta plc shares were the only negative performers, having decreased by 0.5 per cent across the highest volume for the week of 160,469 shares, to close at €1.85.On Friday afternoon, the bank published its interim directors’ statement covering the period January 1 to May 15, 2015. The bank’s Chief Operating Officer stated that “Operating conditions remain difficult but the underlying performance of the three main business segments – retail banking and wealth management, commercial banking and global banking and markets – has been positive in the first quarter.” Total revenues were higher when compared to the same period in 2014, notwithstanding a decrease in interest income from lending. Further investments in risk and compliance staff, as well as the impact of currency changes on the cost of offshored services led to higher operating expenses when compared to 2014. Likewise, loan impairments were marginally higher than the same period last year.

Bank of Valletta plc (BOV) shares oscillated between a weekly low of €2.261 and a high of €2.30, at which it closed. Despite having traded ex-dividend on Monday this had little impact on the share price. The equity was active on 38 trades of 66,337 shares.

Meanwhile, Lombard Bank Malta plc and FIMBank plc shares recouped by 3.2 per cent and 0.2 per cent respectively. The former was executed across two transactions of 1,972 shares, to close €0.06 higher at €1.95, while the latter was negotiated over three deals of 12,100 shares, closing at $0.451.

RS2 Software plc shares increased for the sixth consecutive week, having edged 0.6 per cent higher as eight deals of 9,629 shares were struck, closing at €3.179. On Tuesday, the company announced that the Group has signed a new licence agreement with a bank in Vietnam. The Group has also concluded one of the letters of intent with a UK processing company and has now advanced to the stage of contract negotiation. During the first quarter, the Group has progressed significantly with the planned construction of its new office in Gozo – expected to be operational by Q3 this year.

In another announcement, the company reported that the Board of Directors resolved that the authorised share capital of the company currently consisting of €10m and divided into 50m Ordinary Shares of €0.20 each be re-designated to 100m Ordinary Shares of €0.10 each. Shareholders appearing on the register of members of the company as at June 16, 2015 shall be allotted two shares for each share held.

In the same sector, 6PM Holdings plc (6PM) shares closed the week unchanged at £0.74 as 26,041 shares changed ownership. In the interim directors’ statement it was reported that during 2014, the Group continued to build on the achievements reported in 2013 and secured positive results. A new software license model has been introduced during the first months of this year, which shall result in increasing revenues through the renewal of software licenses. The company is also looking into launching a consumption model (software as a Service) for smaller health providers. Moreover, 6PM is planning to undertake an acquisition of another ICT health business in the UK, which should in turn help the organisation to significantly increase its customer base, grow revenues, grow annuity business, and grow EBITDA and pre-tax profit.  

Medserv plc shares slipped by €0.045 or 2.1 per cent over 11 trades of 29,553 shares, closing at €2.155. In its Interim Directors Statement the company announced that during the first quarter of 2015 the company continued to meet its targets as to turnover and profit margins. The company continues to actively search for additional opportunities in the Mediterranean region and further afield including possible acquisitions.

International Hotel Investments plc (IHI) shares partially erased last week’s gains, having decreased by 1.5 per cent as 78,799 shares changed hands, closing at €0.68. In the company’s Interim Directors Statement, it was stated that the IHI-owned hotels and the 50 per cent associate Corinthia London Hotel continued to perform better in the first quarter in relation to the same period in 2014, other than the hotels in Tripoli and St Petersburg where external force majeure factors continued to affect demand for accommodation.

The Corinthia Hotel Tripoli has gradually reopened and is currently providing certain services commensurate with the demand. The adjoining offices continue to operate efficiently. 

On Friday, Mapfre Middlesea plc shares edged 0.1 per cent higher over a sole transaction of a mere 144 shares, closing at €1.221. Similarly, Plaza Centres plc shares strengthened by 0.6 per cent over three trades of 100,000 shares, to close at €0.951.

Malta International Airport plc shares slipped by 0.4 per cent as 11 deals of 17,270 shares were struck, closing at €3.45. Likewise, Malita Investments plc shaved off €0.04 or four per cent of its share price as 11 trades of 91,910 shares were active, to close at €0.87.

In its interim directors’ statement MIA stated that the company has remained sound and the performance has been marginally better than expected. Passenger traffic for the first four months of the year reached 1,085,782 movements to achieve an overall growth of 5.1% over the same period last year, equivalent to 52,630 additional passenger movements. The outlook for the summer season looks positive as well. The retail sector of the business is recovering well after absorbing the effects of the absence of the Libyan traffic and the lower number of flights from Russia.

GO plc shares were active throughout the week, as two negative sessionsoutweighed Friday’s positive trading, thus closing 0.3 per cent lower at €2.99. Conversely, MIDI plc shares recouped by 1.8 per cent as three deals of 108,400 shares were negotiated.In its interim directors’ statement the company highlighted that works on the North phases of Tigné Point project are currently in line with projections. The development of another residential block is also progressing at a steady pace, with the aim to launch these apartments by the third quarter of this year. The company is also developing the office block at Tigné Point as previously announced, whereas with regards to the Manoel Island development, the company is in discussions with third parties that have expressed an interest in the said project.  

In the corporate bond market turnover amounted to €438,903 and was spread across 23 issues of which ten advanced, five fell and eight closed unchanged. The 6% Mediterranean Investments Holding plc Euro 2021 was the top performer having increased by 1.6 per cent, to close at €94.50, while the 4.25% BOV €Notes 2019 decreased by 1.2 per cent, closing at €108.70.

IHI announced the basis of acceptance for the issue of €45m 5.75% Unsecured Bonds due in 2025. The company received from holders of the exchangeable bonds an aggregate total of just under €28.9m – were allocated in full. Furthermore, holders of exchangeable bonds applied for an additional €10.8mover and above their holding. These applications were considered for allocation purposes pari passu with applications received during the general public offer.

Amounts subscribed through the preplacement offer reached €126m.This amount was scaled down proportionately to the level of €10m, with the excess being added to the general public offering.

The company received a total of €138.3m in subscriptions in the general public offer. As a result, the company satisfied the first €500 of each application and allocated a further 1.7948% of the remaining balance of all such applications.

In the sovereign debt market 27 issues were active of which 25 caved in to selling pressure and two edged minimally higher. The 3% MGS 2040 (I) registered a decline of just under two per cent, to close at €110.96 – still 11 per cent higher than its issue price in February 2015.