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10 NEWS 11.08.2022 VIRTU Finance p.l.c. registered a gross profit amounting to €55,135 in the first six months of 2022, up from €52,400 in the same period in 2021. e company is a public liability com- pany and was registered in Malta on 6 July 2017. It is a wholly owned subsidi- ary of Virtu Holdings Ltd and its princi- pal activity is to raise financial resources from capital markets to finance opera- tions and capital projects of the Virtu Group of companies. Revenue amounting to €549,100 (2021: €549,100) was generated from a facility fee and interest charged on loans advanced to Virtu Maritime Limited. Financial costs comprised interest payable on the outstanding bond is- sue and amortisation of the issue costs thereof amounting to €493,965 (2021: €496,700). Administrative expenses mainly com- prise directors' emoluments amounting to €22,500 (2021: €22,500). e company's principal activity is to act as a finance company for the Virtu Maritime Group of companies. In this context, the company's ability to recov- er loans issued to its fellow subsidiary is dependent on the performance of the companies within the Group to which amounts have been advanced by the company. e group's business activities mostly comprise a fast ferry service between Malta and Sicily, the availability for lease of its ferries, and other ancillary services related to the fast ferry service. e group is therefore susceptible to negative local economic developments and overseas trends related to the de- mand for commercial transport and tourists to travel by ferry. As reported in the 2021 audited finan- cial statements of the company, despite the COVID-19 pandemic the directors do not expect any significant changes in the company's activities during 2022 and are confident it will be able to hon- our its obligations when they fall due. BUSINESS conditions improved in the second quarter of 2022, according to the Central Bank of Malta's Busi- ness Dialogue Publication, in its third edition for 2022. This follows two quarters of sof- tening. In fact, the net percentage of firms reporting an improvement in ac- tivity over the three months preceding the interview increased from 31% in the first quarter of 2022 to 52% in the second. During the quarter under review, 64% of firms contacted reported high- er activity while 13% reported a de- crease. Looking ahead, expectations about business conditions are less uncertain but also less optimistic compared to the previous round of contacts. 48% of the firms interviewed report- ed that they expect business activity to increase over the next three months while 17% anticipated a deterioration. Thus, a net share of 31% expected an amelioration in near term business ac- tivity, down from 39% in the previous quarter. Firms continue to be adversely af- fected by supply-chain disruptions and cost pressures, which have re- mained elevated in the second quarter of the year. Insights gathered from the contacts during the second quarter suggest that most companies were impacted by the war in Ukraine, mostly by higher im- port prices. Indeed, a net 77% of contacts report- ed that input prices have increased. In part due to elevated cost pressures, a net 61% of firms interviewed reported an increase in their selling prices. This was the highest net balance since the survey began. In the second quarter of 2022, 92% of respondents reported to have con- tinued with their investment plans as scheduled, while 5% reported post- ponement. The share of firms reporting that no investment was planned decreased to 3%, compared to 18% in the previous quarter. In view of positive business condi- tions, a net 42% of firms plan to in- crease their staff complement, up from 35% in the previous quarter. This share is highest among services firms. Businesses have continued to express concerns about labour shortages and pressures to increase wages. Virtu Finance registers €55,135 in gross profit in first six months of 2022 Meetings held between the Central Bank of Malta and non-financial corporations during the second quarter of 2022 show that: • Overall business conditions improved. • Short-term expectations about business activity are less optimistic than before. • Investment plans have largely remained on track. • Firms plan additional recruitment but continue to express concerns about labour shortages and wage pressures. • Cost pressures have remained elevated and are being reflected in higher selling prices. Improved business conditions in second quarter of 2022 - Central Bank

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