Despite having to lower the value of Tripoli’s Palm City, Mediterranean Investments Holding yesterday announced a strong performance for 2014.

In a statement on the Malta Stock Exchange website, the company announced an operating profit of €21.8 million for 2014, compared to the previous year’s €22.9 million.

“The company reported a strong performance during the first six months of 2014, exceeding targets for the period as well as the comparative period in 2013.

“However, this positive performance was overshadowed by the events that unfolded in Libya from July onwards, resulting in a reduction in revenue principally brought about by a decrease in occupancy during the last three months,” said MIH, which is part owned by the Corinthia Group.

In January, the Corinthia group’s flagship hotel in Libya, the Corinthia Hotel Tripoli, was targeted by Isis militants.

Palm City’s total revenue for 2014 totalled €30.1 million; however the company experienced reduced business levels in the second half of 2014, which led the management to cut costs and maintain high earnings before interest and taxes.

In view of the reduced occupancy levels, matched by a reduction in revenue and following an independent valuation exercise of the Palm City asset, the directors “prudently” decided to reduce the value of this asset by €60.9 million from its value of €310 million at the end of 2013.

However, the impairment of €60.9 million was adjusted by a reduction in deferred tax of €20.8 million, resulting in a net damage of €40.1 million.

The net profit, after interest expense and tax, but before net impairment charges, amounted to €12 million.

Commenting on the results, the company’s chairman Alfred Pisani said: “MIH has managed to record a strong performance in 2014 despite a challenging six months in the second part of the year.”