Two companies with active bonds have gearing ratio over 80%

Two companies with bonds listed on the Malta Stock Exchange have gearing ratios over 80 per cent, according to an analysis by Charts Investment Management Service. PTL has the highest gearing – a measure of a company’s debt compared to its underlying capital – at 89.91 per cent, with a bond of €36 million active. The second is Gap Group, whose ratio is 86.39 per cent. The lowest gearing was 27.97 per cent, for AX Investments. The analysis was part of the report on the IHI Group prepared by Charts. "Although there are significant variances between the activities of the [IHI] Group and other issuers (including different industries, principal markets, competition, capital requirements etc), and material differences between the risks associated with the Group’s business and that of other issuers, the comparative analysis provides an indication of the financial performance and strength of the Group,” it said. IHI’s gearing is 36.39 per cent.