Simonds Farsons Cisk registers profits of €4 million

This week the Malta Stock Exchange index closed at 4,493.970 points, a loss of 0.20 per cent over the previous week. Since the beginning of the year the index has lost almost nine per cent. During the week, 14 equities were negotiated, with two equities closing in positive territory, seven in negative territory and five remaining stable. During the week Grand Harbour Marina plc was the best performer while 6pm Holdings plc suffered the greatest loss.

A total of 165 deals were registered on the stock exchange for a turnover of over €6.2 million. In the equity market 93 deals were executed for a total value of €296,796, while in the corporate bond market 29 deals for a total value of €569,317 were carried out. In the government bond market, 33 deals were executed for a total value of €772,353. Ten deals were executed in Treasury bills for a total value of €4,654,848.

During the week, in the banking sector, Bank of Valletta plc and Lombard Bank plc were stable. The share price of Bank of Valletta plc remained at the €5.19 level, while that of Lombard Bank plc remained at €13. On Tuesday, the board of directors approved the group and bank interim unaudited financial statements for the six months ended March 31. An interim dividend of €0.135 gross per share (€0.0878 net of tax) has been declared. This will be paid on May 28 to those members appearing on the bank's register of members as at the close of business next Friday. The Bank of Valletta group recorded a net profit before taxation of €25 million for the period compared to a profit of €56.6 million in 2007. The results were influenced by a number of factors, but in particular by the impact of markdowns in the value of the bank's Financial Markets and Investment portfolio as a result of the extended disruption in the global financial markets since July 2007. Despite the fall in profits, the share price of BOV held firm during the week.

On the other hand HSBC Bank Malta plc and FIMBank plc lost ground respectively. The share price of HSBC Bank Malta plc dropped by 0.24 per cent to €4.19 as 12,768 shares changed hands on 15 transactions. The share price of FIMBank plc lost 0.52 per cent to US$1.91 as 7,850 shares changed hands on four transactions. The share price of Middlesea Insurance plc increased by 0.88 per cent to €3.43 as 1,572 shares changed hands on three transactions, following last weeks announcement of good results by MSI. The share price of Grand Harbour Marina plc increased by 2.22 per cent on five transactions during which 4,300 shares changed hands.

Although Simonds Farsons Cisk plc, International Hotel Investments plc and MaltaPost plc were active during the week, their respective prices remained stable over those of the previous week. After close of trading Simonds Farsons Cisk plc reported a strong rise in profitability for the year ended January 31, and the directors declared a net final dividend of €0.053 per share. The board approved a revaluation surplus of €55.5 million with the surplus of €44.4 million credited to reserves resulting in a net asset value per share of €3.24. The group's turnover increased by 6.2 per cent, while the gross profit before tax amounted to €4 million compared to €2.25million last year. The year was characterised by an increase in sales of all business activities due to an improved economic climate and an improved tourist second; and a profit on sale of surplus land and buildings as a result of the relocation of distribution activities to the logistics centre.

The share price of Go plc dropped by 0.17 per cent from €3 to €2.995 on 14 transactions for a total value of €64,305. The share price of Plaza plc dropped by 0.29 per cent to €1.720 on one transaction of 500 shares. The share price of Malta International Airport plc dropped by 2.37 per cent to €3.30 on five transactions for a total volume of 3,225 shares. On Wednesday shares of MIA turned ex-dividend. A final net dividend of €0.058 per share will be paid to shareholders by May 26. The share price of 6pm Holdings dropped by 3.85 per cent to €0.75 on a single deal of 8,000 shares. Crimsonwing plc suffered a drop of 2.48 per cent in their share price and closed at €0.551 on a single deal of 2,500 shares.

This article, which was complied by Jesmond Mizzi Financial Services Limited (JMFS), does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed to conduct investment services by the MFSA. The directors or related parties, including the company and their clients, are likely to have an interest in securities mentioned in this article. For further information please contact JMFS at 67/3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jmizzi@jmfs.net.