MSE Trading Report for week ending September 4, 2009

Island Hotels announce bond and equity issue

Island Hotels Group Holdings plc announced that Vassallo Builders Group and T.M.C. Limited are issuing EUR 14 million in bonds at a coupon rate of 6.5% p.a. The bond shall mature between July 1, 2017, and June 29, 2019, subject to prior notice.  The bonds shall be issued at par and constitute the general, direct, unconditional, unsubordinated and unsecured obligations of the Issuer and shall at all times rank pari passu with other outstanding unsecured obligations.

Island Hotels Group Holdings plc also announced that Vassallo Builders Group Limited shall offer 17,200,600 Ordinary Shares in Island Hotels Group Holdings p.l.c. at a share price of EUR 1, of which 8,383,300 shares are being offered to the general public while EUR 8,817,300 ordinary shares are being offered to Double You Limited and T Limited.

Therefore an amount of EUR 24,200,600 from the proceeds of the bond and equity issue shall be applied to the benefit of Vassallo Builders Group who shall realise their investment while an amount not exceeding EUR 7 million will be for the account of T.M.C. Ltd.

Meanwhile, the Malta Stock Exchange Index erased last week’s gains as it declined by 0.99 per cent, closing at 3,054.292 points. Gains registered on three trading sessions were not sufficient to keep the index in positive territory, as the index lost 0.261% and 1.32% on Tuesday and Thursday respectively. Nine equities were traded this week with six closing in negative territory and three closing in positive territory.

A total of 203 deals were registered over the week with a turnover of over EUR 7.25m. In the equity market 94 transactions were executed for a total value of EUR 332,377, while in the government bond market 54 transactions were registered for a value traded of over EUR 3.99m. A total of 48 deals were registered in the corporate bond market for a value of EUR 496,273. In the treasury bills market a total of seven transactions were registered for a total value of over EUR 2.43m.

FIMBank plc was the only positive equity from the banking sector this week, gaining a marginal USD 0.006, closing the week at USD 1.295, a rise of 0.47%, as 1,105 shares changed hands over two deals.

The share price of Bank of Valletta plc lost 0.33% from last week’s gains, as a volume of 41,715 shares changed hands across 41 deals, for a total value of EUR 124,876. The closing share price for the week was EUR 2.99, as the equity traded at a high of EUR 3.04 and a low of EUR 2.95.

HSBC Bank Malta plc decreased by EUR 0.025 this week, having traded at a low of EUR 2.649 and a high of EUR 2.70, as 23,794 shares changed hands on 27 deals, closing the week at EUR 2.65.

Medserv plc registered a staggering rise of 7% on Friday, on a volume of 30,000 shares over four deals, closing the week at EUR 3.745, appreciating by EUR 0.245. This rise could mainly be due to the positive results announced by the Group.

In fact, the Medserv plc announced that the Group registered a rise of 38.21% in its Revenue for the first six months, from EUR 5.91 million in 2008 to EUR 8.17 million in 2009. Profit before tax for the same period increased by EUR 829,563, from EUR 684,166 in 2008 to EUR 1.54 million in 2009, a rise of almost 125.5%. The company stated that “the results achieved by the Group in the first half of the year met the Group’s forecasts. The dampening of demand for oil in the global market did not affect the contracts secured by the Group last year. The Libyan subsidiary, Medserv Misurata FZC has contributed to more than 35% of the overall Group results.” Earnings per share for the period increased from EUR 0.078 to EUR 0.129.

MaltaPost plc was the other gainer this week, as the equity registered an increase of EUR 0.01, as 19,500 shares changed hands over four deals, closing at EUR 0.70.

A rise of 4.64% was not enough to keep the share price of International Hotel Investments plc (IHI) up on the week, as the equity shed 2.5% this week, having decreased by 6.82% on Thursday. IHI closed the week at EUR 0.82, with 20,868 shares being executed over nine transactions.

GO plc closed the week at EUR 1.79, decreasing by EUR 0.009 or 0.5%, with 1,230 shares changing hands on four deals. On Tuesday, the Group announced that the Board had approved the Interim Financial Statements for the period ended June 30, 2009.

The Group registered a Loss before tax of EUR 5.37 million, compared to a Loss before tax of EUR 1.42 million for the same period in 2008. Revenue for the six month period decreased by 4.82% from EUR 64.21 million in 2008 to EUR 61.12 million in 2009. The Company stated that “the decrease in revenue has occurred in spite of an overall increase in the Group’s customers’ connections and services.” Loss per share for the period increased from EUR 0.043 to EUR 0.055. The directors did not recommend the payment of an interim dividend.

Malta International Airport plc depreciated by 6.38% on Monday on just 615 shares over two deals, as the equity closed at EUR 2.20.

RS2 Software plc registered a single transaction of 1,000 shares, closing the week at EUR 0.599, decreasing by a marginal EUR 0.001.

Grand Harbour Marina plc also announced that its Board of Directors approved the Interim Financial Statements for the period ending June 30, 2009. The Company registered an increase in its Loss before tax of EUR 96,209, from EUR 162,510 in 2008 to EUR 258,719 in 2009. Revenue for the six month period declined by 14.27%, to EUR 926,196. The company stated that “with the increased tariffs and higher occupancy levels attained during the period, pontoon fees and revenue from ancillary services for the first 6 months ended June 30, 2009 grew from EUR 571,879 to EUR 926,196. There were no super yacht berth sales during the period (6 months to June 30, 2008 EUR 508,475).” Loss per share for the period increased marginally from EUR 0.01 to EUR 0.02. The Directors did not recommend the payment of an interim dividend.

This article which was compiled by Jesmond Mizzi, Managing Directors of 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 contact JMFS at 67/3, South Street, Valletta or on Tel: 21224410 or email [email protected].