Three companies announce losses

Four listed companies issued their interim financial statements, with only one company announcing a profit before tax. The latter, Lombard Bank plc, despite reporting a profit before tax of €6.44 million, registered a decline of €1.31 million in profits when compared to the first six months of 2008.

The group stated that "notwithstanding subdued business sentiment amid global recession, the bank's loans and advances remained stable and customer deposits grew satisfactorily despite record low interest rates in financial markets." Total operating income decreased from €18.89 million in 2008 to €18.375 million in 2009, a decline of 2.73 per cent. Earnings per share for the period decreased slightly from €0.126 to €0.104.

On the other hand, Middlesea Insurance plc registered a staggering loss before tax of €17.72 million, compared to a loss of €2.11 million for the same period last year. The main cause for this decrease was due to the negative results registered by the Italian subsidiary Progress Assicurazioni SpA. The operations of MSI performed positively during the first half of 2009 and registered a profit before tax and group company dividends of €1.28 million. Loss per share for the period increased from a negative €0.062 to €0.687.

6PM Holdings plc registered a decrease of £117,791 in its profit before tax, from a profit of £90,418 in the first six months of 2008 to a loss of £27,373 in the first six months of 2009. On the other hand, revenue for the period increased by 8.87 per cent, from £2.64 million to £2.88 million. Earnings per share for the period decreased from a positive £0.013 to a negative £0.005.

GlobalCapital plc saw a decline in its loss before tax of 51.75 per cent, registering a loss before tax of €2.39 million, compared to last year's loss before tax of €4.96 million. The group stated that "the severe downturn in global major economies and the financial services industry has continued to negatively impact GlobalCapital during the first six months of 2009. The group's portfolio of investment securities was further negatively impacted by the continued stock market downturn during the first quarter of the year. However, an improvement in the performance of the group's investment portfolio was registered in the second quarter." Loss per share for the period decreased from €0.331 to €0.173.

Meanwhile, the Malta Stock Exchange index gained 0.69 per cent this week, closing at 3,084.698 points. The index increased on Monday and Tuesday by 0.655 per cent and 1.542 per cent respectively, while retreating on the remaining trading sessions. Eight equities were traded this week with two closing in positive territory, three remaining unchanged and three closing in negative territory.

A total of 201 deals were registered over the week with a turnover of over €11.64 million. In the equity market, 74 transactions were executed for a total value of €201,119, while in the corporate bond market 66 transactions were registered for a value traded of over €1.12 million. A total of 53 deals were registered in the government bond market for a value of over €4.37 million. In the Treasury bills market, a total of eight transactions were registered for a total value of over €5.94 million.

The share price of HSBC Bank Malta plc erased last week's loss to increase by 0.19 per cent over the week. HSBC closed the week at €2.675, with 6,284 shares over 11 deals. The equity traded at a high of €2.80, which was reached on Tuesday (up 4.87 per cent on the day), and a low of €2.675. Tuesday's gains were partly erased on Wednesday and Friday as the equity lost 3.57 per cent and 0.93 per cent on the respective days, and thus increasing only by a marginal €0.005 on the week.

Bank of Valletta plc registered a rise of €0.10 this week, as the equity closed at €3. A volume of 16,979 shares were executed across 30 deals. Gains were registered on Monday and Friday of 3.45 per cent and 1.69 per cent, the equity having edged 1.67 per cent lower on Thursday.

FIMBank plc traded only on Monday on a single deal of 169 shares, as the equity remained unchanged, closing the week at $1.289.

Go plc decreased a marginal 0.06 per cent this week, closing the week at €1.799, with 32,280 shares changing hands across 16 deals, for a total value of €58,044.

Santumas Shareholdings plc depreciated by five per cent on Thursday, closing at €3.04 or €0.16 lower than the last traded price as five deals of 6,600 shares were traded.

The share price of Medserv plc lost last week's gains and retreated to the closing price of €3.50, decreasing by 1.27 per cent, with 8,000 shares changing hands on one transaction.

Both Plaza Centres plc and Malta International Airport plc closed the week unchanged at €1.649 (3,000 shares on one deal) and €2.35 (9,200 shares on nine deals) respectively.

Yesterday, Corinthia Finance plc announced the issue of 6.25 per cent €20 million bonds due in 2016-2019 with a nominal value of €100 per bond issued at par subject to an over-allotment option of €5 million. The proceeds raised are partially earmarked for the redemption of an existing issue due for maturity in October, while the remaining funds will be used to partfinance the development strategy of the Corinthia Group. Application forms and copies of the prospectus will be available from September 1 while subscriptions will open on September 15.

This article which was compiled by Jesmond Mizzi Financial Services Ltd 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 contact JMFS at 67/3, South Street, Valletta or on telephone 2122 4410 or e-mail jmizzi@jmfs.net.