MIDI Group recorded a pre-tax loss of €3.7 million in 2024, widening from the €2.1 million loss recorded the previous year.

These results were published in the Annual Report for the financial year ended 31st December 2024.

MIDI Group is primarily involved in the development of the Manoel Island and Tigné Point projects, comprised of MIDI plc and its two subsidiaries, Tigné Contracting Limited and T14 Investments Limited. Through T14 Investments Limited, MIDI plc also holds a 50 per cent share in Mid Knight Holdings Limited. In 2023, MIDI Group consolidated its structure by merging the assets of its former subsidiary, Solutions & Infrastructure Services Limited (SIS), into MIDI plc.

MIDI Group attributed its poor financial performance to two factors, one of which is the cyclical nature of the company’s property development, as seen in 2023.

Although the group has sold over 90 per cent of the apartments in its latest residential development at Tigné Point, known as Q3 – Fortress Gardens project, its policy is to recognise revenue and profit only upon the delivery of the apartments to buyers and not upon promise of sale agreements. As a result, revenue from property sales fell to €128,000 in 2024, down from €888,000 in 2023.

Secondly, MIDI Group adjusted the value of its inventory to reflect current market conditions, resulting in a €2 million write-down. This adjustment contributed to a wider operating loss of €3.54 million in its property development and sales segment, compared to a loss of €1.67 million in the previous year.

Revenues from MIDI Group’s property rental and management segment in 2024, remained in line with 2023, reaching €3.22 million compared to €3.18 million in the previous year.

Total assets rose from €254.74 million in 2023 to €258.68 million in 2024. However, the net asset value (NAV) declined from €99.32 million in 2023 to €93.39 million in 2024. Consequently, a dividend of €1.93 million was paid out in 2024, bringing the NAV per share to €0.436, down from €0.464 in 2023.

The Tigné Point and Manoel Island projects

The group reported that the development works on the Q3 – Fortress Gardens apartment block at Tigne Point, “are ongoing with finishing and mechanical, electrical and plumbing (“MEP”) works and the façade works progressing as scheduled”.

With regards to its project on Maonel Island, MIDI Group stated that this development continues to play a “prominent part” in the group’s activities, and has ongoing discussions with the Government with regards to the specific remedies available in the Deed of Emphyteusis that was entered into back in 2000. This was done to help mitigate, in part, the impact of reduced development volumes, resulting from the discovery of archaeological remains at the Manoel Island site and a delay in reaching substantial completion.

A render of Q3 - Fortress Gardens / MIDI plc

While the Planning Authority (PA) approved the outline permit for the revised Manoel Island masterplan on September 2021, the decision by the Environmental and Resources Authority (ERA) to approve the Environmental Impact Assessment (EIA) was appealed by a third party. This appeal was rejected in 2023, with the outline development permit now confirmed and not subject to further appeal.

However, at the public hearing meeting on 14th March 2024, the Planning Board deferred the hearing of a full development application given that Manoel Island lies within the proposed buffer zone for the Valletta World Heritage Site (WHS) and was deemed desirable that a Heritage Impact Assessment (HIA) is commissioned.

MIDI Group stated that it is “confident that the proposed development does not impact the status of Valletta WHS.” The HIA was submitted to the NWHTC in September 2024, where at the start of this year, the committee requested additional information, which was recently submitted. The committee and the process are expected to be concluded later this year.

Looking ahead at the financial results of 2025, MIDI Group said that the anticipated returns from the Manoel Island development are expected to contribute positively to the group’s overall financial performance.