Tumas Investments plc registers modest increase in profits during first half of 2010

The announcement was filed on the Malta Stock Exchange (MSE) by company secretary Ray Sladden yesterday amid a flurry of other company announcements as the deadline for filing of results for listed companies expired.

During the period, the company paid €55,151 in administrative expenses as against €28,494 paid in administrative expenses during the same period last year, an increase of €26,697, almost twice as much when compared to last year.

Tumas Investments paid €9,543 in taxation for the period ending 30 June 2010 as against €6,172 in taxation for the first half of the previous year, an increase of €3,371, in increase of almost 50% when compared to the previous year.

The company thus registered €27,266 profit before taxation for the first half of 2010 as against €17,299 profit before taxation for the first half of 2010, an increase of €9,967 when compared to the previous year.

Tumas Investments earned €1,652,901 in finance income for the first six months of 2010 as against €803,999 in finance income earned during the first six months of last year, almost twice as much.

Likewise, the company registered €1,570,484 in finance costs for the first six months of 2010 as against €758,206 in finance costs registered for the first six months of 2010, almost twice as much.

Tumas Investments plc attributed this increase in financial activity to the issue of a second 6.25 % bond issue in July 2010 amounting to €25 million maturing in 2014 or 2016.

The net proceeds of the bond issue was advanced pursuant to a loan agreement by Tumas Investments plc to Spinola Development Company and was applied by the latter “to refinance existing borrowings and its general financial needs”, the directors said in their report.

The company directors explained how the performance of Spinola Development Company Limited for the first six months of 2010 was “in line with the budgeted figures for the period being reviewed.

The hotel’s return for the first months of 2010 was “slightly higher” than what was expected, while commercial rentals were “in line when compared to budgets”.

During the six-month period ended 30 June 2010, the company received €1,652,900 in interest receivable from Spinola Development as against €803,999 in interest receivable for the first six months of 2009, almost twice as much.

Interest payable on its bonds and other costs related to the issue by Tumas Investments plc for the first six months of 2010 reached €1,570,484 as against €758,206, almost twice as much, reflecting the issue of the second bond in July 2010.

On the outlook for the rest of the financial year, the company said that “despite a subdued property market”, the company is forecasting that property sales would be “in line with forecasted levels”

“It is estimated that that the result for Tumas Investments plc for the full year will again yield a positive result,” company’s directors declared.

Tumas Investments registered earnings of 17c7 per share for the first half of 2010 compared to 11c1 per share for the first half of 2009, an increase of 6c6 per share.

However, despite the improved financial performance, the company was not declaring an interim dividend.