MSE | Wednesday, 03 September 2008

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

Banks rule the day on MSE

Yesterday, during the second session of the week, trading was primarily concentrated around the banking sector. Gains posted by the big banks helped the Malta Stock Exchange index stay in positive territory at 3846.29 points, up 0.39 per cent offsetting falls in other companies.
Large-caps Bank of Valletta p.l.c. and HSBC Bank Malta p.l.c. acted as the most influential leaders on the upside. Their share price finished €7c0 and €0c5 higher at €4.42 and €3.185 respectively. Bank of Valletta p.l.c. had the strongest volume of the day as 17,870 shares were swapped across sixteen deals. HSBC Bank Malta p.l.c. announced on Monday 1 September, that Mr David Charles Budd resigned from his post as non-executive Director with effect from 26 July 2008. Mr Budd was replaced in the post of non-executive Director by Mr Anthony Michael Mahoney who currently resides at United Kingdom and this with effect from 1 September 2008. No matter concerning Mr Mahoney requires disclosure under Listing Rules 8.16.3 to 8.16.8.
Remaining on the banking front, the share price of Lombard Bank p.l.c. increased €2c1 at €2.97. However, the turnover was poor as 494 shares changed hands in a single transaction. Meanwhile, FIMBank p.l.c. shares declined $0c1 to settle at the $1.957 level across 5,250 shares.
On a positive note, the shares of MaltaPost p.l.c. was another stock that managed to stay above water. The share price registered a satisfactory €2c0 gain to close at the €0.77 level. At market close, best unsatisfied bids stood at €0.776 for 3,000 shares against best offers of 3,933 shares at €0.799. Week on week the shares of MaltaPost p.l.c. advanced 2.67 per cent from its previous close of €0.75 on Tuesday 26 August.
The shares of Medserv p.l.c. pegged down to lower levels at €3.997, down €0c3 across 1,000 shares.
Elsewhere, International Hotel Investments p.l.c., Malta International Airport p.l.c. and Datatrak Holdings p.l.c. were the non-movers of the day leaving their previous market prices at €1.05, €2.95 and €0.29 respectively.
On Wednesday 27 August 6pm Holdings p.l.c. announced that in a meeting held on the 26 August 2008, the Board of Directors of the above mentioned Company approved the Interim Financial Report for the six month period commencing on the 1 January 2008 and ending on the 30 June 2008. During the period under review the group registered a turnover of £2,647,126 with an operating profit of £107,444. Profit before tax amounted to £90,418. The trading pattern in the first half of this year largely resembled that of 2007 (before 6pm listed) in that the first six months saw a slow build up to a respectable performance in June. July08, although not reported here, showed a 70 per cent increase in PTP over June08 and the pipeline to the end of November 08 suggests that this may continue for the remainder of this Financial Year. The efforts of the Company in the UK Public Sector, particularly in Health, are now showing significant promise with visibility of orders, well into 2009. The Directors do not recommend the payment of an interim dividend.
On Thursday 28 August the Board of Directors of International Hotel Investments p.l.c. approved the Group Half-Yearly Financial Report for the period ended 30 June 2008. The Group’s turnover for the six-month period to 30 June 2008 amounted to €64.31 million, reflecting an increase of 65 per cent on the turnover levels for the corresponding period in 2007. The main increase is attributable to the fact that the results of both the Corinthia Bab Africa Hotel, Commercial Centre in Tripoli and the Corinthia Hotel Prague have now been included for the full six month period whereas in the comparative period they were only included for the month of June being the month following acquisition. All the other hotels in the Group registered increases in their turnover levels over the equivalent period last year except for the Corinthia Nevskij Palace Hotel which is at present undergoing reconstruction works. The most notable achiever was the Corinthia Hotel Lisbon in Portugal with an increase of 28 per cent in revenue following the completion in 2007 or the full refurbishment of 284 rooms of its 518-room stock. These operational improvements underline the Group’s operating profit of €11 million, an increase of €6.8 million on the profit registered last year. During the period under review, the Group registered a Profit after tax of €2.3 million compared to a loss after tax for the comparative period last year of €2.15 million.
On Thursday 28 August, the Board of Directors of GO p.l.c. approved the Group Interim Unaudited Financial Statements for the six-month period ended 30 June 2008. Group turnover amounted to €64.2 million, an increase of 1.6 per cent over the comparative period. Profit from operating activities amounted to €1 million for the period under review. Although this is €11 million below that registered in the same period last year, results include a provision for pensions of €11.8 million as further explained hereunder and a depreciation charge of €12.9 million when compared to €10.6 million in 2007. Following the judgement on 7 July 2008 by the Court of Appeal, the Company was mandated to set up a pension scheme effective from 1 January 1975. The scheme applies to employees that Telemalta Corporation had taken over from Cable and Wireless. GO p.l.c. is the successor in title to Telemalta Corporation. After analysing the impact of the judgement, the Group estimates that the cost to date of past and future benefits payable under the scheme amount to €13.2 million and is therefore recognising an additional provision amounting to €11.8 million. The Group is conducting further analysis of the financial, technical and legal interpretation and implementation of the judgement. GO p.l.c. and its parent company, Emirates International Telecommunications Ltd, each acquired 50 per cent shareholding in Forgendo Limited. The Group continues to generate significant free cash flow from its operations, which allows it to enjoy a healthy liquidity position. During the period under review, net cash generated from operating activities was in line with that registered in the comparative period and amounted to €27 million. Loss after tax during this period amounted to €4,399,000 when compared to a profit of €8,251,000 in 2007. The Board of Directors has resolved to determine the extent of dividend distribution for 2008 on the basis of the full results for the year. Accordingly, no dividends are declared upon issue of the results for the six month period ended 30 June 2008.
On Thursday 28 August, GlobalCapital p.l.c. announced that referring to its company announcement of 18 April 2008 wherein it had announced that on 16th April 2008 it had agreed terms for the acquisition of 85.5 per cent of the issued share capital of Medifin Holding Limited which holds 99.9 per cent of the issued share capital of Mediterranean Bank p.l.c. subject to confirmation following due diligence and to all necessary regulatory approvals. The Company notes that the agreed terms for the acquisition of Medifin have not been confirmed and that as a consequence the agreed terms have lapsed. Negotiations for the acquisition of Medifin by the Company have also come to an end. The Company announces that as a result it will not be proceeding with the acquisition of Medifin. Nevertheless, the Company continues to remain focused on its objective to develop and expand the services it currently offers by adding banking to its existing business lines and will be pursuing other initiatives to accomplish this strategy. Furthermore, on Friday 29th August, the Board of Director of GlobalCapital p.l.c. announced the approval of the Group’s Half-Yearly Financial Report for period ended 30 June 2008. The company registered a net loss of €4,375,217 for the six months ended 30 June 2008 compared to a profit of €905,939 for the corresponding period in 2007. The net loss excluding fair valuations, revaluations, tax and impairment charges was €1,556,671 for the first half of 2008 compared to a net loss of €847,446 for the same period in 2007, on a like-for-like basis. The Board of Directors is focused on improving operational efficiencies, robust risk management practices and effective cost management, and will continue to explore initiatives to strengthen GlobalCapital’s core businesses. GlobalCapital is also pursuing actively its banking initiative and the Board is optimistic that the requisite regulatory approvals to add banking to its existing business lines will be obtained. The Directors believe that the fulfilment of this strategy will go a long way in enhancing value creation to stakeholders, particularly shareholders. Despite the downturn in global major economies and the financial industry in particular, the Board of Directors remains committed to its strategic objectives. The Directors do not recommend the payment of an interim dividend.
The Board of Directors of Grand Harbour Marina p.l.c. approved the Half-Yearly Financial Statements of the Company for the period from 1 January 2008 to 30 June 2008 on Friday 29 August. The results for the first six months ended 30 June 2008 show a loss after tax of €84,760 compared to a loss of €315,751 in the first six months of 2007. The earnings per share for the first six months was €0.01, compared to €0.03 for the first six months of 2007. In the first six months ended 30 June 2008 revenue generated from the licensing of long term super yacht berths was €508,475. No super yacht berth sales were reported in the first six months of 2007. Pontoon fees and revenue from ancillary services for the first six months grew from €472,905 to €571,879, an increase of 21 per cent over the first six months of 2007. Operating costs, excluding direct costs of revenues from long term berth licensing for the six months ended 30 June 2008, were in line with those for the first six months of 2007. The decrease in total assets to €12,311,028 at 30th June 2008 from December 2007 of €17,673,193 is mainly related to the decrease in cash and cash equivalents due to the payment of dividend and payments related to taxation. The proposed dividend of €0.20 per share was approved by the shareholders in the annual general meeting held on 13 June 2008 and was paid to the shareholders on 27 June 2008. The Directors are recommending that no interim dividend be paid.
In the fixed interest market, a total of €7,824,286 (21 Deals) were transacted in Government Bonds, whereas a total of €2,187.50 (1 Deal) was transacted in Corporate Bonds during the past week.
The turnover value in the Treasury Bill secondary market amounted to €11,826.50.
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).