MSE | Wednesday, 30 July 2008

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

The local market suffers another setback

Yesterday, all traded equities apart from GO p.l.c. recorded a negative movement with the local index closing down by 1.96 per cent at 3979.33 points. The shares of HSBC Bank Malta p.l.c. and Bank of Valletta p.l.c. were the two main stocks that contributed to the downward move.
The shares of HSBC Bank Malta p.l.c. tumbled by a further 4.7 per cent. In two days this stock lost 11.5 per cent in value in two days. Again, the share price traded at its lowest permissible level of the day at €3.375, down €16c7. The total number of shares amounted to 9,200 and swapped across nineteen transactions. On 25 July, the Board of Directors of HSBC Bank Malta p.l.c. approved the Group and Bank Interim Unaudited Financial Statements for the six-month period ended 30 June 2008. The profit before tax of €46.6 million for the six months ended 30 June 2008, down €12.4 million, or 21.1 per cent, compared with €59.0 million for the same period in 2007. Profit attributable to shareholders down 23.1 per cent, or €9.0 million, to €30.1 million, compared with €39.1 million over the comparable period in 2007. Earnings per share at 10.3 Euro cents, compared to 13.4 Euro cents for the same period in 2007. Loans and advances to customers of €2,968.9 million at 30 June 2008, up €146.6 million, or 5.2 per cent, compared with 31 December 2007. Core customer deposits of €3,394.5 million at 30 June 2008, up €18.8 million compared with 31 December 2007. Total assets of €5,100.8 million, up €205.8 million, or 4.2 per cent, compared with 31 December 2007. Total liabilities of €4,828.0 million, up €209.2 million, or 4.5 per cent, compared with 31 December 2007. Annualised return on capital employed of 22.0 per cent for the six months ended 30 June 2008, compared to 27.6 per cent in the first half of 2007. The Board is declaring an interim gross dividend of 11.9 Euro cents per share (7.7 Euro cents net of tax). This will be paid on 22 August 2008 to shareholders who are on the bank’s register of shareholders as at 6 August 2008.
Large-cap Bank of Valletta p.l.c. raised the red flag too. The share price dipped 9c9 to settle at the €4.50 level across 13,379 shares. These shares were transacted across thirteen deals and carried a market value of €60,206.50. At the end of trading, bids for 200 shares stood at €4.45, whereas the best offer for 1,456 shares stood at €4.50.
Remaining on the banking front, FIMBank p.l.c. lost $0c5 at $1.875 across 1,215 shares.
International Hotel Investments p.l.c. and Plaza Centres p.l.c. traded €0c1 and €3c0 lower to finish the second session of the week at €1.06 and €1.70 respectively.
Elsewhere on the board, GO p.l.c. maintained its previous session price at €2.50 after 2,000 shares worth €5,000 were swapped in two trades.
On Thursday 24 July, GlobalCapital p.l.c. announced that during its Annual General Meeting held on Thursday, 24 July 2008, all the Ordinary and Extraordinary resolutions put to the General Meeting were approved by the shareholders. Furthermore, in accordance with the Company’s Articles of Association all directors retired from office at the Annual General Meeting. Mr Christopher J. Pace, Mr Nicholas Ashford-Hodges, Mr Muni Krishna T. Reddy, Mr James Blake, Mr Dawood A. Rawat, Mr Gary Marshall and Dr Andrew Borg Cardona have been re-appointed as directors of the Company. The Board of Directors met immediately after the Annual General Meeting and during this meeting Mr Nicholas Ashford-Hodges was unanimously appointed Chairman of the Board. He assumes the Chairmanship of GlobalCapital p.l.c. from Mr Christopher J. Pace, founder, Director and outgoing Chairman. The Board of Directors thanked Mr Pace for his dedication, commitment and determination shown throughout his years at the helm of the Group. Mr Pace remains on the Board as a Non-Executive Director.
On Friday 25 July, Santumas Shareholdings p.l.c. announced that with reference to the Company Announcement dated 18 November 2005, it is hereby announced that the preliminary agreement to the sale of certain immovable property to a third party which was the subject of that Announcement has since come to fruition and the Company will now be accounting for the sale at a value of €3,185,865 net of Final Witholding Tax (FWT). This compares to the Lm1,520,000 (€3,540,647) gross of FWT which becomes €3,115,770 net of FWT. The said sale has been subject to certain advance payments which are recorded at Note 21(i) in the Interim Report and Financial Statements (unaudited) for the six month period ended 31 October 2007, where an amount of Lm585,000 (€1,362,683) is disclosed.
On Tuesday 29 July, the Board of Directors of Crimsonwing p.l.c. approved the financial statements for the financial year ended 31 March 2008. These condensed consolidated financial statements cover all Crimsonwing subsidiaries including Crimsonwing (Malta) Limited, Crimsonwing Limited, and Crimsonwing BV. On 1 July 2007 Crimsonwing purchased the media and entertainment vertical of Peracto Solutions Limited and on 3 September 2007 Crimsonwing purchased a majority (51 per cent) interest in Promentum Holdings BV. Revenue growth this year was dramatic with Crimsonwing registering a 35 per cent increase in revenues over last year of €9,552,567 to March 2008. This also included substantial organic growth in Crimsonwing BV which registered a 46 per cent increase in revenues during the year. Net profit before income tax for the year was €909,324 which represents a very robust performance when set against the impact of €375,513 due to the decline of UK Sterling against the Euro during the last quarter. Furthermore, Crimsonwing has taken positive steps to significantly reduce the impact of the UK Sterling and Euro in future years. This included the acquisition of 100 per cent of the share capital of VDA BV, a post balance sheet event which completed on 1 July 2008, and which brings €3,000,000 annualised revenues into Crimsonwing plc, and increases their overall Euro business from just under 25 per cent to over 50 per cent of revenues. Revenues increased by 35 per cent in the year, and direct costs increased ahead by 54 per cent. But overall gross profit margins remained very healthy at 52 per cent of revenue. Administration expenses were also tightly controlled and remained at 43 per cent of revenue. Total assets increased a very healthy 96 per cent to €6,231,090 by March 2008, including a very strong cash balance at year end at €1,031,623. Shareholders’ funds increased 62 per cent to €3,972,009, with the year performance showing an overall return on shareholders’ funds of 20.4 per cent. Earnings per share were 4.5 Eurocents. The Board of Directors at its meeting of the 29 July 2008 declared a net interim dividend of 1 Eurocent (€0.01) per nominal 10 cent share (€0.10). This will be paid on 1 September 2008 to shareholders who are on the company register of members on the 8 August 2008. The Annual General Meeting will be held on 1 October 2008. Shareholders on the Company’s Register at the Central Securities Depository of the Malta Stock Exchange as at close of business 1 September 2008 will be entitled to receive notice of the Annual General Meeting together with the a copy of the Annual Report and Financial Statements.
In the fixed interest market, a total of €250,883 (4 Deals) were transacted in Government Bonds, whereas a total of €6,727 (1 Deal) was transacted in Corporate Bonds.
The turnover value in the Treasury Bill secondary market amounted to €237,667.