In a week which saw a plethora of interim financial statements, one would be tempted to say that there was more activity off-market than on it. In fairness, equity turnover by value topped the €1 million mark - and this has not happened in the last three months.
International Hotel Investments plc (IHI) and GO plc (GO) experienced contrasting fortunes as the latter registered a loss before tax for the first time since it was listed in 1998, while IHI saw a substantial recovery in their accounts. Lombard Bank plc (LOM) and Medserv plc (MDS) registered very healthy gains, while Global Capital plc (GCL) turned the small profit in the same period last year into a massive loss before tax of €4.96 million.
6PM plc (6PM) ended in the black, but their results cannot be compared as this company was only listed last September. On the Alternative Companies List, Datatrak Holdings plc (DTK) was rolling in red ink.
With the exception of Go, which collapsed 6.4%, these results were not necessarily reflected in the week's trading: IHI ended the week flat, LOM gained 1.7%, while MDS was practically unchanged (+0.25%). GCL, 6PM and DTK did not trade.
Bank of Valletta plc ended the week unchanged at €4.30 on turnover of 33,813 shares for a value of €145,380. At the end of trading, the best bid was for 204 shares at €4.26 while supply of 1,608 shares started at €4.30.
HSBC Bank Malta plc only traded on Monday and Tuesday, closing the week at €3.10 - down 0.4% on a total turnover of just 8,645 shares for a value €26,820. At the end of Friday's session, encouragingly, there was a bid for 1,000 shares at €3.152, with supply of 479 shares at €3.18.
GO first traded on Tuesday, unchanged at €2.35. On Wednesday morning, a company announcement dated the previous day, referred to the judicial proceedings filed in April 2002 against Maltacom about the pension scheme of some employees of Cable and Wireless Ltd - which morphed into Telemalta, then Maltacom, and into today's Go. Referring to the Court of Appeal's judgment mentioned in Go's announcement of August 12, Go stated that the cost of implementing the settlement is expected to be in the region of €13.6 million. Go will be adjusting the provision in the financial statements for the six-month period ended June 30 to reflect this amount.
Unsurprisingly, this pushed Go's already beleaguered price further down to a fresh 2008 low of €2.20 - its lowest close since July 24, 2003. It did not trade on Thursday. With the company's interim results made public on Friday morning, Go maintained its €2.20 level to close the week a thumping 6.4% lower. Turnover for the week was slightly in excess of mere 10,000 shares for a value of €23,209. At the close of business on Friday, the best bid was for 1,000 shares €2.14; supply of 2,050 shares started at €2.20.
The published half-yearly results for the period ended June 30, 2008, issued on Thursday, show that Go recorded a loss before tax of €1.4 million when compared to the profit of €12.5 million registered in the same period last year. The board does not propose the payment of an interim dividend. In the face of increasing competition, group turnover still increased by 1.63% from €63.2 million to €64.2 million.
IHI was unchanged in one small deal for 542 shares at €1.05 on Tuesday. It was a hive of activity on Thursday, as its interim results were released, with 70,000 shares changing hands at €1.05. It did not trade on Friday to close the week unchanged. On Monday, IHI announced that with immediate effect Ibrahim Zletni has been appointed non-executive director, replacing Mustafa Khattabi.
On Thursday morning, before the opening of trading, IHI released their interim results for the period ended June 30. These show a strong turnaround with a pre-tax profit which increased to €6.01 million, totally wiping out the pre-tax loss of €1.63 million for the same period last year. Earnings per share also showed an improvement from a negative €0.012 to a positive €0.004. Turnover for the six-month period increased by 65% from €38.8 million to €64.31 million.
Fimbank plc (FIM) gained a 1USc to $1.95 on Monday and traded in a tight range of $1.95 to $1.959 between Tuesday and Friday, closing the week at $1.958, up 0.9%. Turnover was very strong with 481,260 shares changing hands for a market value of €637,360, representing 54% of the week's total.
LOM opened the week practically stable at €2.90, jumped 5c to €2.95 by Wednesday, ending the week just a mil lower at €2.949, up 1.75% on a total turnover of 31,126 shares for a value of €91,405.
On Tuesday, LOM issued the financial statements for the six months ended June 30. Over the same period last year, the group registered: a) an increase of 60% in pre-tax profits to €7.76 million; b) a 35.6% increase in profits after tax attributable to shareholders to €4.35 million; c) a net interest income increase of 9.8%, which contributed €6.76 million to total operating income; d) a 34% rise in earnings per share from €0.094 to €0.126. Operating income at €18.89 million, includes €10.41 million from postal sales and services revenue, reflecting the financial results of LOM's Maltapost subsidiary. Cost-to-income ratio was at 40.99%. Loans and advances to customers at €284.53 million were up 9.3% over December 31, 2007.
A number of equities only traded on Tuesday. Malta International Airport plc (MIA) lost 1.35%, down to a new 2008 low of €2.999 on two deals for 2,575 shares. Middlesea Insurance plc traded for the first time since the release of its interim statements on August 8, tumbling a taxing 7.2% to €3.10 on comparatively heavy turnover of 47,792 shares for a value of €148,852. One deal for 37,116 shares made up the bulk of the day's and week's turnover. There were three deals in MDS for 4,000 shares at €4, 0.25% up. Crimsonwing plc gained 3.8% to €0.519 on 4,067 shares, while RS2 Software plc lost just 0.1% on 10,300 shares.
On Wednesday, MDS published its half-yearly report for the period ending June 30. This showed that the company registered a profit before tax of €684,166 compared to a €529,750 loss last year. Basic earnings per share increased from a negative €0.027 to a positive €0.078. The group's turnover for the period increased from €1.2 million to €5.9 million - a colossal 392%.
Plaza Centres plc (PZC) only traded on Friday at the unchanged price of €1.70. Turnover consisted of just two deals for 2,800 shares.
On Friday morning, GCL released their results for the six-month period ended June 30. Last year's profit before tax of €335,152 turned into a €4.96 million loss. Earnings per share nose-dived from a positive €0.069 to a negative €0.331. Turnover also declined 26% from €2.4 million to €1.8 million. The directors are not recommending the payment of an interim dividend. GCL also announced on Friday that negotiations with Medifin Holdings Ltd to acquire the majority shareholding of Mediterranean Bank plc have ended without success.
On Tuesday, 6PM issued the interim financial report for the six-month period ending June 30, during which the group registered a turnover of £2.6 million, with an operating profit of £107,444. Profit before tax amounted to £90,418. The earnings per share stood at £0.013. The directors do not recommend the payment of an interim dividend.
On Tuesday, DTK issued the interim financial statements for the six-month period ending June 30. The group registered a 10.3% increase in revenue from €1.45 million to €1.60 million, but still registered a loss of €116,596 - even though this was a 10.2% improvement over last year. The board appointed Anthony Demajo (chairman), Maurice Mizzi and George Gregory to the audit committee.
In the Government Bond market, turnover by amounted to €5.07 million with 30 deals struck in 12 stocks. In the corporate bond market, there were 39 deals for a total turnover of €288,946. Turnover in the Treasury Bill market totalled €1.5 million.
This report was provided by J.G.P. Bonello, managing director of Financial Planning Services Limited, of Marina Court, G. Cali Street, Ta' Xbiex, which is licensed by the MFSA to provide investment services, including stockbroking (IS/3608). The company is involved in acting as sponsoring stockbroker and corporate stockbroker. The directors or related parties, including the company and their clients, are likely to have an interest in securities mentioned. E-mail: info@bonellofinancial.com or 2134 4243.