In a company announcement published on the Malta Stock Exchange website, Mediterranean Investments Holding p.l.c. (MIH) announced an operating profit of €21.8 million for 2014 compared to €22.9 million for the same period in 2013.

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 later in the year, from July onwards, resulting in a reduction in revenue principally brought about by a decrease in occupancy during the last three months of 2014. 

Total revenue for 2014 amounted to €30.1 million. Reduced business levels experienced towards the second half of 2014 led management to act swiftly to curtail costs and successfully managed to maintain a high conversion rate of 72% of revenue to EBITDA.

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 have 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 is adjusted by a reduction in deferred tax of €20.8 million, resulting in a net impairment of €40.1 million.

Net profit after interest expense, tax but before net impairment charges amounted to €12.0 million.

Commenting on the results, MIH 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."