Issue link: https://maltatoday.uberflip.com/i/1471699
maltatoday | SUNDAY • 26 JUNE 2022 18 COMMERCIAL Farsons AGM approves bonus share issue SIMONDS Farsons Cisk plc's 75th annual general meeting was held remotely from the Group's latest investment, the regen- eration of the old Brewhouse, which is nearing completion to open its doors to the public dur- ing this year. This investment will be operated through a new- ly formed company called 'The Brewhouse Co. Ltd'. Farsons Group Chairman, Mr Louis A Farrugia stated that having fought its way through the severe immediate impact of COVID, the Group was pleased to announce positive results for the financial year end 31 January 2022. The Group has reported a profit before tax of €12.2 mil- lion, reflecting an increase of €7.7 million over the previous year. Group turnover amount- ed to €91.8 million, an increase of 26% compared to €73 million the previous year. Group Chief Executive Mr Norman Aquilina further ex- plained that the Group delivered a good set of results in very chal- lenging times due to a strong fo- cus on execution and a step-up in productivity as well as on con- taining expenditure. He noted that the outlook remains chal- lenging, and that the Group's strategic direction is to return to a growth mindset. Mr Farrugia added that the global challenges which have created inflationary pressures and significant sup- ply chain issues, have affected business confidence and perfor- mance. However despite this, the Far- sons Group is encouraged by the resilience of its business, the strength of its portfolio and of the commitment and compe- tence of its people. Apart from approving the in- come statement and statement of financial position for the year ended 31 January 2022, and the reports of the Directors and the Auditors thereon, and the reap- pointment of auditors Pricewa- terhouseCoopers, the meeting also approved an advisory vote on the Remuneration Report for the year ended 31st January 2022. The shareholders also ap- proved a final net dividend of €4 million, in addition to the in- terim dividend paid on the 20th October 2021 of €1.5 million and the dividend paid on the 21st December 2021 of a further €1.5 million. The final net dividend is to be paid to the shareholders of the Company registered on its Register of Members as at close of trading on 3rd June 2022. The meeting also approved the ordinary resolution put forward to it that, subject to the regis- tration of the revised and up- dated M&A, the amount of €1.8 million from the Company's Retained Tax Exempt Earnings Account is to be capitalised for the purpose of issuing not more than 6 million fully paid-up ordi- nary shares of nominal value of €0.30 per share representing one bonus share for every five shares held. These bonus shares are to be allotted to members of the Com- pany appearing on the Register of Members on the 3rd June 2022. A company announce- ment will be issued to inform the market when the shares will be admitted to listing and when trading of the same will com- mence. The Board of Directors was al- so reconfirmed. As approved in the AGM held on the 8th Oc- tober 2020, the company has not circulated printed copies of its annual financial statements which include the statement by the Directors on non-financial information. The official version of the Report has been made available on its website www.far- sons.com, following publication on the Malta Stock Exchange website and the shareholders have been informed accordingly. New report highlights key role of financial services in Malta's economy A new report outlines the sig- nificant contribution of Malta's services sector to the national economy. Jointly commissioned by the Institute of Financial Services Practitioners (IFSP), the Malta Institute of Accountants (MIA) and the Malta Institute of Tax- ation (MIT), leading economist Gordon Cordina from E-Cubed Consultants Ltd conducted the in-depth survey of the sector. Sharing his early conclusions at the IFSP Annual Conference in April, Dr Cordina described his approach as covering a "wider perspective of policy and busi- ness behaviour, covering a range of services activities with com- mon competitiveness concerns which include and extend be- yond those normally associated with financial services." Titled The Contribution of Export-Oriented Foreign Di- rect Investment in the Servic- es (EFIS) Sector to the Maltese Economy, the report seeks to quantify the economic impact of export-oriented, foreign direct investment companies operat- ing in the higher-value added services sector (EFIS). This sec- tor, coined specifically for the purposes of the study, including financial services as well as other services sectors. Based on 2019 figures, the re- port highlights that the three main injections to Malta's econ- omy – namely exports, creation of productive assets and gov- ernment expenditure or private consumption – together create a substantial demand for business activity and an economic value added of more than €12 billion. It goes on to outline that firms in the EFIS sector directly generat- ed 19 per cent of the total value added in the Maltese economy. In addition, the report shows that firms in the EFIS sector di- rectly employed nearly 10 per cent of the total workforce in the Maltese economy during 2019 – equivalent to almost 22,200 peo- ple. The report also spotlights that the EFIS sector significantly boosts the nation's productivi- ty, with labour productivity in EFIS firms in 2019 estimated at 189 per cent of that of the aver- age level of labour productivity across the economy. While the growth of the EFIS sector exceeded that of the over- all economy, helping to acceler- ate overall growth, it also made direct, indirect and induced con- tributions in terms of value add- ed and employment generation to the rest of Malta's economy. Of the €3,036 million total value added generated by direct and indirect effects of the EFIS sec- tor's activity, firms outside the EFIS sector had a value added of around €194 million and 4,700 jobs. The report also records that firms in the EFIS sector have a relatively low carbon and floor- space footprint in comparison to other sectors in Malta, while offering high salaries. This report's findings show that foreign owned entities engaged in the export of services con- tribute significantly to Malta's economic output, employment, government revenue, productiv- ity and economic growth, whilst having a relatively low impact on the environment compared to other sectors of the economy. Furthermore, this study makes it possible to gauge the full extent of the EFIS sector's significant contribution to Malta's econo- my – and its importance as part of the nation's economic future. More information about IFSP, MIA and MIT is available at www.ifsp.org.mt, www.miamal- ta.org, and www.maintax.org, respectively. Louis A. Farrugia