PG plc registers positive interim results

MSE Trading Report for week ending December 22, 2017

The MSE Equity Total Return Index curbed a part of last week’s advancement as the index fell by a marginal 0.17% to close the week at 8,554.712 points. The week was characterised by a number of company as announcements.A total of 14 equities were active during the week of which five gained ground, while four closed in the red. A total turnover of €1.29 million was generated between 135 transactions.

On Wednesday, the Board of Directors of PG plc approved the Company's unaudited financial statements and Interim Directors' Report for the six months ended October 31, 2017.  The Group registered a turnover of €48 million compared to the €43.6 million in the comparative period for 2016, representing a growth of 10%.

Increases in turnover were registered both in the Group’s supermarket and associated retail operations (amounting to 7%) and in its Zara and Zara Home franchise operations (amounting to 16%). This growth was in part driven by the opening of the PAMA Shopping Mall in the late 2016, including the Zara Home outlet situated therein. The growth in the Group’s turnover was also attained through the increased popularity of the PAMA supermarket, which recorded a 14% increase in turnover, while sales at PAVI remained steady 17 2016 level.

The overall gross profit earned by the Group, during the period, amounted to €7.2million compared to the €6.3million in 2016, registering a growth of 14%. Shop operating margins have improved as a result of the higher turnover and increased customer base, driven in the main by the enhanced performance at the PAMA Supermarket. The equity was active six times during the week generating a total turnover of €113,696. The equity traded between highs of €1.48 to lows of €1.425, closing flat at €1.425.

On Tuesday, Bank of Valletta plc announced the allocation policy with respect to the Rights Issue. Rights taken up by existing shareholders amounted to a total of 75,538,509 for an equivalent of €108,020,067.87 and a further 17,587,954 rights for an equivalent of €25,150,774.22 were assigned by existing shareholders in favour of assignees.

Following rights taken up by existing shareholders and assignees, a balance of 11,873,537 lapsed rights was available to existing shareholders applying for lapsed rights. The total number of lapsed rights subscribed for by existing shareholders over and above their proportionate entitlement amounted to 35,125,389. Consequently, the Bank will be adopting an allocation policy on a pro-rata basis equivalent to 33.80357% of the total amount of lapsed rights applied for, rounded to the nearest New Share.

Refunds of unallocated monies in respect of lapsed rights applied for by existing shareholders and dispatch of allotment letters will be effected by not later than Thursday 28 December 2017. The New Shares are expected to be admitted to listing on the Official List of the Malta Stock Exchange by not later than Friday 29 December 2017, and trading in the New Shares is expected to commence on Wednesday 3 January 2018.

On Thursday, Standard & Poor’s assigned Bank of Valletta a BBB+ rating with a stable outlook.  The research note highlights BOV's dominant market position, sound retail franchise and stable customer deposit funding base.

The research note also noted the Bank’s progress in reducing its stock of NPLs (Non-performing Loans) through a combination of write-offs, good quality new lending and improving recovery rates. In fact, the Bank’s NPA (non-performing assets) ratio has decreased from the 9.5% peak in 2014 to about 6.2% as of September 30, 2017 – a level that compares favourably with the domestic banking sector average of 8.2% for 2016.

Commenting on the recent €150 million increase in share capital, S&P confirmed that this will allow the Bank to comply with increased regulatory capital requirements and counterbalance the impact of IFRS 9 due to come in force in 2018, while at the same time enabling the Bank to reach critical targets in the execution of its strategy, particularly its investments in digitalisation and multichannel projects.

S&P also emphasised the Bank’s retail-oriented funding structure and solid funding base, with customer deposits remaining the Bank’s primary source of financing.  In consequence, the Bank’s recourse to wholesale funding is expected to remain limited.

Commenting on S&P’s rating, Mario Mallia, BOV Group CEO, noted that S&P’s assigned rating of BBB+ is one notch higher than that provided by Fitch prior to the rights issue. He also added that the agency’s outlook was positive underpinned by resilient profitability, contained credit losses and a strong solvency position. The CEO concluded by saying, “2017 was an extremely positive and productive year for BOV Group. The hard work put in by all BOV employees has been crowned by increased custom from our customers, and overwhelming response from shareholders to a very successful rights issue and an improved rating from a major rating agency.” The equity curbed some of last week’s positive performance as it depreciated by 1.6% to close at €1.85. A total of 50 transactions managed to generate a total turnover of €546,286.

On the same note, Lombard Bank plc shares closed the week 2.2% lower at €2.25. A total turnover of €14,988 was generated between five deals.

It’s peer, FIMBank plc experienced another volatile week as the equity spiked by 13.1% during the week to close at $ 0.69. A total of 11 trades saw 253,020 shares exchange hands.

Meanwhile, banking counterpart, HSBC Bank Malta plc shares traded flat despite being active 27 times during the week, managing to generate a total turnover of €83,501.

In the telecommunications sector, GO plc shares held firm to its €3.55 price level, despite reaching €3.58 during intra-week trading. A total turnover of €195,705 was generated between nine transactions.

Malta International Airport plc shares, lost ground by 0.8% to close the week at €4.64. A total of 18,650 shares exchanged hands between eight deals.

Following the approval by Simonds Farsons Cisk plc shareholders’s at the Annual General Meeting held on the 27 June 2017, for the spin-off of the Company’s shareholding in Trident Estates plc, the Board of Directors met on Wednesday to consider the declaration of an interim dividend that would be paid ‘in kind’ by means of a distribution of the Company’s entire shareholding in Trident, on a pro-rata basis, to the shareholders registered on the Company’s share register at the Central Securities Depository of the Malta Stock Exchange as at the close of business on December 21, 2017 (i.e. including trades up to December 19, 2017). 

It was also announced that the Listing Authority has approved a Prospectus relating to the admissibility to listing of 30,000,000 ordinary shares in Trident Estates plc (“Trident”) having a nominal value of €1.00 per share pursuant to the Listing Rules. The equity reached a 14-week low during the week at €8.51, closing the week slightly higher at €8.52. A slim volume was exchanged between four trades.

In the oil and gas industry, Medserv plc shares traded twice during Monday’s trading session closing marginally lower at €1.138.

In the property sector, Plaza Centres plc gained ground, while Tigne Mall plc and Malta Properties Company plc (MPC) followed suit. Plaza shares climbed by 6.9% during mid-week trading to close the week at €1.09.  Tigne shares followed suit as the equity closed 3.6% higher during Friday’s session to reach the €1 price level. Meanwhile, MPC shares closed marginally higher at €0.431.

Elsewhere, MIDI plc and International Hotel Investment plc shares closed flat despite being active closing at €0.347 and €0.627 respectively.

During a meeting held on December 20, 2017 the Board of Directors of Santumas Shareholdings plc approved the Interim Unaudited Financial Statements for the six months ended October 31, 2017.

The company reported that it has incurred a loss before taxation of €43,672 as compared to a profit before tax of €228,669 for the corresponding period in 2016. The tax charge for the six months of €41,328 (compared to that of last year of €35,421) has resulted in a loss after tax for the six month period to October 31, 2017 of €85,000 as compared to the profit after tax of €193,248 generated during the comparative period.

On Monday, The Board of Directors of Malita Investments plc approved the entry by the Company into an emphyteutical deed to be entered into between the Company and the Housing Authority, a body corporate established in terms of the Housing Authority Act.

In terms of the Emphyteutical Deed, the Company shall acquire sixteen (16) property sites in a number of locations across Malta which shall be used by the Company for the purposes of developing a number of residential units for affordable housing purposes. Further information will be provided once the Emphyteutical Deed is published

In the corporate debt market a total of 36 issues were active of which, 22 headed higher, while five headed in the opposite direction. The 3.5% Bank of Valletta plc €Notes 2030 S2 T1 extended its winning streak for the third consecutive week to close1.3% higher at par.

On Wednesday, PTL Holdings plc announced that further to the approval by shareholders at the Extraordinary General Meeting held on December 7, 2017 to change the name of PTL Holdings p.l.c. to 1923 Investments p.l.c., these changes became effective on Xetra Trading Platform as from last Wednesday. This resulted in a change in name from 5.1% PTL 2024 to 5.1% 1923 2024 and a change in INSTR from PT24A to 1923A.

Meanwhile, in theLocal Sovereign Debt market, a total of 25 issues were active of which the absolute majority amounting to 19 headed lower, while six gained ground. The2.4% MGS 2041 (I) R extended its winning streak for the third consecutive week as the bond price increased by 0.5% to close at €108.

We wish our readers a Happy Christmas.