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Stephen Muscat
Mizzi Organisation Finance plc has published its financial results for 2005 with its sole income-generating activity having been the interest receivable from funds that financed its companies’ business activities.
Mizzi Organisation Finance had issued 100,000 bonds at a face value of Lm100, an interest rate of 6.7 per cent, and redeemable between 2009 to 2012. The bonds are traded at the Malta Stock Exchange within the corporate bonds category.
This finance and investment company uses the funds to finance the business activities of the companies forming part of the Mizzi Organisation. In fact the proceeds of the bonds were used by the members of the group to re-finance existing banking facilities.
This year’s income reached the Lm736,000 figure, with the major expense item being the interest payable to the bondholders amounting to Lm672,000.
Net profit for the year after tax was Lm50,215, marginally more than last year’s figure. Earnings per share were Lm50.22, as against Lm52 in 2004.
A healthy balance sheet also shows an amount of Lm10.3 million of total assets of which nearly Lm10 million are financed by the interest bearing borrowings. On the basis of the positive financial results and improved cash flow, the directors proposed the payment of a net dividend to the company’s ordinary shareholders of Lm150,000, wiping out most of the accumulated profit figure at end-December 2005.
As required by the listing rules, the guarantors have had their financial accounts prepared in accordance with the requirements of International Financial Reporting Standards and audited, and will be available on the Mizzi Organisation’s website.
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