MSE | Wednesday, 30 April 2008

GO p.l.c. shares down in a lacklustre session

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

Yesterday, while Garrison Chapel cheered another rise in Middlesea Insurance p.l.c. shares, GO p.l.c. shares moved to lower ground dragging the local index fractionally down by 0.12 per cent at 4494.76 points.
On the telecommunications front, GO p.l.c. was the sole player that contributed to the downward move. The share price pegged down to lower levels at €2.95 (Lm1.266), down €0.05 (Lm0.021) across 17,400 shares. The lowest traded price during the session was €2.95 (Lm1.266), whereas the highest traded price of the day was €2.971 (Lm1.275). On Friday 25 April, GO p.l.c. announced that at a meeting held on the 22 April 2008, the Board of Directors of Forthnet decided to propose to Forthnet’s Extraordinary General Meeting of Shareholders to be held on 14 May 2008 an increase in Forthnet’s share capital through payment in cash and with pre-emptive and oversubscription rights with the aim of raising up to €300 million. The funds to be raised by Forthnet will be used mainly to finance part of the consideration for the acquisition of the entire issued share capital in each of NetMed NV and Intervision (Services) BV. The purchase of all shares in the Acquired Companies will be made through a wholly owned subsidiary of Forthnet that is in the process of being established in Greece.
Middlesea Insurance p.l.c. shares were the darlings of the market today, adding some spice to an otherwise dull session. The share price registered a €0.03 (Lm0.013) gain to settle at the €3.43 (Lm1.472) level. At the end of trading, bids for 1,000 shares stood at €3.43 (Lm1.472), whereas the best offer for 1,258 shares stood at €3.51 (Lm1.507). The Board of Directors of Middlesea Insurance p.l.c. announced on Friday 25 April, that during the Board meeting, they have approved the Preliminary Statement of Annual Results for the financial year ended 31 December 2007. The Board of Directors further resolved to recommend that the Annual General Meeting to be held on 25 June 2008 approves the payment of a final ordinary gross dividend of €0.1281 (Lm0.055) per share. In 2006, they gave a final ordinary gross dividend of Lm0.045 per share. The payment of this dividend amounts to €3,202,888 which is equivalent to Lm1,375,000 when compared to Lm1,125,000 in 2006. The final dividend will be paid on 3 July to all shareholders who are on the shareholders’ register as at Friday 23 May 2008. The board also proposed an increase in the authorised and paid up value of each share in issue from €0.582343 (the Euro equivalent of the current value of Lm0.25) to €0.60. This increase would be funded through the capitalisation of distributable reserves amounting to €441,425. All companies within the Group contributed to the generation of this year’s pre-tax profit of €9.3million (Lm4m), which represented an improvement of 9.4 per cent on 2006. The Group remained subject to taxation in the territories where business is underwritten. The provision for taxation of €2.4 million (Lm1.03m) for the financial year 2007 significantly impacted the post-tax profit of €6.91million (Lm2.97m), which reflected a reduction of 7.95 per cent over 2006.
On the banking front, Bank of Valletta p.l.c. and HSBC Bank Malta p.l.c. preferred to stay on the sidelines without affecting their previous session close at €5.19 (Lm2.228) and €4.19 (Lm1.799) respectively on slim volume.
Later in the afternoon, Bank of Valletta p.l.c. announced that the Board of Directors approved the Group and Bank Interim Unaudited Financial Statements for the six months ended 31 March 2008. An interim dividend of €0.135 gross per share (€0.0878 net of tax) has been declared by the Board of Directors in respect of the six months ended 31 March 2008. This will be paid on the 28 May 2008 to those Members appearing on the Bank’s Register of Members as maintained at the Central Securities Depository at the Malta Stock Exchange as at the close of business on Friday 9 May 2008.
The Bank of Valletta Group has recorded a net profit before taxation of €25 million for the six months which ended on 31 March 2008. This compares with a profit of €56.6 million for the equivalent period ended 31 March 2007. The Group has achieved an annualised return of 12.5 per cent on average shareholders’ funds when compared to 30 per cent in March 2007. Earnings per share amount to €0.126 when compared to €0.285 in March 2007.
The results for the six months under review were influenced by a number of factors:-
I.The impact of the extended disruption in the global financial markets since July 2007;
II.The disruption in the financial markets, and the consequent weak performance of most equity and bond instruments and exchanges;
III.An increase in net interest income of €0.8 million which was driven in the main by satisfactory growth in the loan book, countered by the impact of an increase in interest payable;
IV.The multi-faceted impact of Euro adoption in January 2008. This impacted income for the period in the following manner:-
•a decrease in foreign exchange earnings on Lm – Euro transactions for the period estimated at €2.6 million;
•Increased costs directly related to the Euro adoption changeover period estimated at €0.8 million.
V.A modest impairment charge for the period under review of €1.5 million when compared to €1.8 million in March 2007;
VI.A reduction of €1.7 million in the contribution from associates and jointly controlled companies.
Total assets at the end of March 2008 stood at €5.6 billion when compared to €5.7 billion in September 2007, while equity amounted to €400 million when compared to €401 million in September 2007. Advances, net of impairment allowances, stood at €2.8 billion, an increase of €186 million, or seven per cent, since 30 September 2007. Growth in lending has come from sustained demand for home loans and a cross section of the business sector. Customer deposits reached the €4.5 billion level, an increase of €214 million (5 per cent) over the six months. The net loan to deposit ratio remains at a modest 62 per cent, when compared to 61 per cent in September 2007. Capital adequacy under the revised Basel II regime remains strong at 12 per cent, as does the liquidity ratio at 52 per cent. The Bank confirmed it has no holdings whatsoever of US sub prime mortgages, complex debt instruments or leveraged debt positions – the asset classes most adversely affected by the downturn. It was noted that since the onset of the credit crisis in July 2007, not one single investment holding within the Bank’s portfolio has defaulted on interest payment or on maturity.
Simonds Farsons Cisk p.l.c. maintained its previous session price at €2.60 (Lm1.12) after 1,200 shares worth €3,120 (Lm1,339.42) were swapped in two transactions.
On Friday 25 April, Lombard Bank Malta p.l.c. announced that during the Annual General Meeting held on 24th April all five Ordinary Resolutions on the agenda were approved. Furthermore in accordance with Clause 6 of the Memorandum of Association, the following were appointed to sit on the Bank’s Board of Directors. These are Mr C. Lemmerich (Chairman), Mr J.M. Demajo, Mr G.A. Fairclough, Mr C. J. Stylianides, Mr J. Said, Mr D. Spanodimos and Mr M. Zammit.
FIMbank p.l.c. announced on Friday 25 April, an inter alia, of the appointment of Mr John D. Freeman, Jr. which the Members in the Annual General Meeting approved with effect from 10th April, 2008.
Mr Freeman’s appointment as non-executive Director fills the vacancy created by the retirement of Duco Reinaut Hooft Graafland from his position of Director. Mr Freeman will not hold any executive position in the Company however; the Board has nominated him to chair the Audit Committee. Furthermore, there are no matters concerning Mr Freeman, Jr. that requires disclosures under Listing Rules 8.16.3 to 8.16.8.
Plaza Centres p.l.c. held its Annual General Meeting on Friday 25th April, where the shareholders present approved all the ordinary resolutions on the Agenda. Following the resignation of Mr Michael Soler as director of Plaza Centres p.l.c., Mr Charles J Farrugia was elected as non-executive director according to Article 56.5(a) of the Company’s Memorandum and Articles of Association with effect from 25th April, 2008. There are no matters concerning Mr Farrugia requiring disclosure under Listing Rules 8.16.3 to 8.16.8. The Board of Directors of Plaza Centres p.l.c. will consist of the following persons: Mr Albert Mizzi (Chairman), Mr Peter Borg, Mr Charles J.Farrugia, Mr Brian Mizzi, Mr Adrian Strickland, Ms Anne Marie Tabone and Mr Gerald J. Zammit.
Following a company announcement issued by Datatrak Holdings p.l.c. on Friday, 25th April, the said Company announced that the Board Meeting to approve the annual financial statements has been postponed to Wednesday 14th May 2008.
On Monday 29th April, Malta International Airport p.l.c. announced that at the annual general meeting of the Company held on the 24th April 2008, the shareholders considered and approved the following resolutions. They approved the Profit and Loss Account and Balance Sheet for the financial period ended 31st December 2007 and the Directors’ and Auditors’ report. Furthermore, the share holders approved the net dividend of Lm0.0249 per share which represents a net payment of Lm1,684,485 as recommended by the Directors. The shareholders also approved the appointment of Deloitte and Touche as auditors of the company and that the Board of Directors, be hereby authorised to fix their remuneration. Pursuant to the Articles of Association Malta Mediterranean Link Consortium Limited as a 40 per cent shareholder, re-appointed by letter dated 10th April 2008 Ms Karin Zipperer and Mr Louis St-Maurice as directors; and the Government of Malta as a 20 per cent shareholder appointed Ms Jackie Camilleri as director for a term of 3 years. Following a poll for nominations for the remaining 2 vacancies for non-executive directors the Company received 3 valid nominations and an election was held at the meeting. Following the election Mr Michael Bianchi and Mr Markus Klaushofer were appointed directors.
Issued by GlobalCapital Financial Management Ltd, 120 The Strand, Gzira, GZR1027 for information purposes only and is not intended to constitute any financial, legal or tax advice. This write up is not to be taken as investment advice to buy or sell any investment. Investors should seek professional advice prior to taking investment decisions and should note that the value of investments may fall as well as rise. Readers who would like more information are invited to send an E-mail to [email protected] or Tel: 21 342342. GlobalCapital Financial Management Ltd is a member of the Malta Stock Exchange and is licensed by the Malta Financial Services Authority (MFSA).