MSE | Wednesday, 27 August 2008

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

Strong activity on the Exchange floor

Yesterday, during the second session of the week, the local market witnessed a hectic day. Activity was spread across eleven out of the seventeen listed equities. The Malta Stock Exchange index surrendered 0.220 per cent to close at 3812.16 points. The shares of Middlesea Insurance p.l.c. incurred the sharpest decline, whereas the shares of FIMBank p.l.c.., Medserv p.l.c. and Crimsonwing p.l.c. finished marginally higher.
On the banking front, FIMBank p.l.c. traded US$0c5 higher at US$1.955 across a strong turnover of 165,152 shares. On Friday 22nd August, the Board of Directors of FIMBank p.l.c. approved the unaudited Interim Financial Statements for the six-months ended 30 June 2008. For the half-year ended 30 June 2008, the FIMBank Group posted an after tax-profit of US$23.81 million, a significant increase over the US$3.46 million registered for the same period in 2007. Group Net Interest Income increased by 42 per cent on 2007, to US$7.04 million. Net Fee and Commission Income increased by 64 per cent to US$10.05 million, being largely the result of improved performance both at Bank and LFC. Net trading income and gains from financial statements carried at fair value increased by 44 per cent from US$1.43 million to US$2.06 million. Net Impairment Losses for the Group increased by US$0.62 million to US$1.06 million. The disposal of shares in Global Trade Finance Ltd. in March 2008 contributed to a consolidation profit on disposal of US$29.15 million. Group Net Operating Income grew from US$12.22 million to US$47.30 million. Group Operating Expenses before the Adjustment to Goodwill and Provisions for Liabilities and Charges increased by 46 per cent highlighting the increased activity and operating base of the Group. These include costs related to the start-up of new associated ventures, further recruitment, increases in performance-bases compensation as well as a one-time bonus to staff paid from the extra-ordinary profit arising out of the disposal of shareholding in GTF. The Group basic Earnings per share for 2008 amounting to US cents 20.02 when compared to US cents 4.01 in 2007. The Directors, after considering the extraordinary nature of the gain made by the Company from the disposal of its shareholding in Global Trade Finance Limited, are declaring an extraordinary dividend of US$ 4,397,685 representing a net dividend per ordinary share of US$ cents 3.2909240.
On the other side of the spectrum, Lombard Bank p.l.c. closed the session weaker by €0c1 at €2.899 across 6,563 shares. On Tuesday 26 August, Lombard Bank p.l.c. announced that the Group and Bank unaudited Condensed Interim Financial Statements for the six-month period ended 30 June 2008 were approved. Lombard Bank Malta p.l.c. and its subsidiaries registered a pre-tax profit of €7.76 million for the six months ended 30 June 2008. This represents an increase of 60 per cent over the same period in 2007. MaltaPost p.l.c. became a subsidiary of the Bank in September 2007. Therefore, these Group results also include for the first time the full impact of the financial performance of this subsidiary for the period. Profit after tax attributable to shareholders increased by 35.6 per cent to reach €4.35 million when compared to €3.21 million in the corresponding period for 2007. Net Interest Income of €6.76 million increased by 9.8 per cent compared to same period last year mainly from growth in credit activity and effective Treasury management. Total Operating Income reached €18.89 million which includes €10.41 million from postal sales and service revenues. The Bank’s Cost-to-Income ratio at 40.99 per cent remained at the same level of the corresponding previous period. A net release of €551,000 in Impairment Allowances was also registered. Loans and Advances to Customers at €284.53 million were up 9.3 per cent over 31 December 2007.
On the insurance front, Middlesea Insurance p.l.c. saw a free fall to the tune of 7.2 per cent or €24c0 to settle at the €3.10 level. The volume amounted to 47,792 shares and exchanged across seven transactions. These shares carried a market value of €148,582.12.
Malta International Airport p.l.c. also pegged down to lower levels at €2.999, down €4c1 across 2,575 shares. At the end of trading, bids for 1,000 shares stood at €2.329, whereas the best offer for 425 shares stood at €2.999. Week on week, the shares of Malta International Airport p.l.c. lost 1.35 per cent from its closing price of €3.04 on Tuesday 19 August.
Elsewhere on the board, Medserv p.l.c. and Crimsonwing p.l.c. finished in positive terrain as their share price increased by €1c0 and €1c9 at €4.00 and €0.519 respectively.
The Board of Directors of Medserv p.l.c. approved the interim financial statements of the Company on Monday 25 August, for the financial period ended 30 June 2008. The Group’s turnover for the six-month period amounted to €5,909,840 compared to €1,226,986 achieved in the comparative period last year. The Group registered a profit before tax of €684,166 compared to a loss of €529,750 suffered in the six month period to 30 June 2007. The net profit for the period to 30 June 2008 amounted to €840,347 when compared to a loss of €276,212 in June 2007. The above results reflect a positive turnaround in the Group’s fortunes occasioned by the start of the long awaited activity in the Mediterranean region and as anticipated in the Chairman’s report accompanying the 2007 annual financial statements. During the period under review, the Group provided services from Malta not only to the traditional source of business – Libya but also to Egypt, Tunisia and to Congo. The steady growth in demand for the Group’s services has brought about a substantial increase in trade receivables and trade payables. Since the end of June 2008 the base in Malta has been providing services to a rig in preparation for a drilling programme offshore in Libya scheduled to commence in September of this year.
Bank of Valletta p.l.c., HSBC Bank Malta p.l.c., GO p.l.c., International Hotel Investments p.l.c. and RS2 p.l.c. finished static from their previous session close at €4.30, €3.10, €2.35, €1.05 and €0.83 respectively.
On Monday 25 August, International Hotel Investments p.l.c. announced that with effect from 25 August 2008 Mr Ibrahim Zletni has been appointed as a non-executive Director. There is no matter regarding disclosures under Listing Rules 8.16.3 to 8.16.8. Mr Zletni replaces Mr Mustafa Khattabi.
On Thursday 21 August, GlobalCapital p.l.c. announced that a meeting of the Board of Directors has been set for Thursday, 28 August 2008 to consider and approve the interim results of the Company as at 30 June 2008. The Company also announced that the Audited Financial Statements for the financial year ended 31 December 2007 are available for viewing at the Company’s registered office at 120, The Strand, Gzira. Furthermore, the share price of GlobalCapital p.l.c. remained at €2.444.
Following a company announcement issued by Grand Harbour Marina p.l.c. on Monday 25 August, the Company announced that the Board of Directors is scheduled to meet on the 29 August 2008 to consider, and if thought fit approve the half-yearly Financial Statements of the Company for the period ended 30 June 2008.
In the fixed interest market, a total of €2,197,908 (10 Deals) were transacted in Government Bonds, whereas a total of €115,786 (12 Deals) was transacted in Corporate Bonds during the past week.