AX Group has announced that it has made €16.1 million in revenue in the first half of its financial year, covering the period between 1st November 2022 and 30th April 2023.

This represents an increase of €0.7 million over the corresponding period of the previous financial year, with the increase largely the result of “exceptional” performance in its hospitality division and strong results in its healthcare activities.

The group noted that tourism “has regained its momentum” with the industry reaching “levels of activity that are similar to pre-COVID levels”. AX Group’s hotels surpassed projected room revenue in some certain months, and overall achieved their targeted profits.

The healthcare division saw revenues increase by 9.6 per cent, as the independent apartments at Hilltop Gardens were fully occupied throughout the period while occupancy at the care home exhibited a steady increase.

On the other hand, construction income decreased during the period, as the company focused its efforts on its own projects revdeveloping the Suncrest Hotel in Qawra and the Verdala Hotel in Rabat.

Third-party projects the firm is involved in include the constructioni of an annex to St John’s Co-Cathedral, the restoration of the Oratories of the Jesuits Church in Valletta, and finishes at the KPMG annex in Gzira.

The Suncrest Hotel, now renamed the AX Odycy, opened its doors to guests in May 2023, although work is still ongoing on its lido. Its opening is expected to have a “substantial positive impact” of the group’s end-of-year results.

The Verdala Terraces project is also progressing, with the first promise of sale agreements expected to be signed in the coming weeks.

Despite the improved revenue, AX Group registered an operating loss of €4.3 million for the first half of the year. It nonetheless approved an interim dividend of €0.0125 per share, equivalent to €3.43 million.