Grand Harbour Marina plc - Updated Financial Analysis Summary

On 17 August 2020, Grand Harbour Marina plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s financial results in 2019, a comparison of the 2019 actual results with the forecasts published in the previous FAS dated 27 May 2019, as well as the forecasts for the current financial year ending 31 December 2020.

The following are the main highlights of the expected financial performance and financial position of GHM in 2020:

  • Revenues are anticipated to drop by 7.6% to €3.8 million largely due to the disruptions to business brought about by the ‘COVID-19’ pandemic.
  • EBITDA is expected to drop by 4.3% to €1.62 million as most of the decline in business will be offset by reductions in operating costs (-9.9%).
  • The net profit figure for the year is projected at €0.15 million (-33.6%) as GHM is not expecting any contribution from its investment in IC Çeşme Marina located in Izmir, Turkey.
  • GHM is anticipating to close the year with a cash balance of €4.19 million, which would represent an increase of 3.4% over the balance of €4.05 million as at 31 December 2019.
  • Total borrowings are expected to remain virtually unchanged at around €20.9 million when including lease liabilities amounting to €6.17 million.
  • The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to remain at the 85% level. On the other hand, given the expected drop in EBITDA, the net debt to EBITDA multiple is forecasted to deteriorate slightly to 10.3 times compared to 9.95 times for the 2019 financial year. Conversely, the interest cover is expected to improve to 1.92 times compared to 1.88 times in 2019.

Meanwhile, the updated FAS explains that the project related to Phase 1 of the planned reconfiguration of the Vittoriosa Grand Harbour Marina is currently underway but the process of obtaining the necessary permits is taking longer than expected due to matters which are outside GHM’s control. At the time of the issuance of the 4.5% GHM 2027 unsecured bonds, the company had earmarked a budget of €0.8 million for undertaking this investment. With respect to the remaining balance of the bond proceeds amounting to €2.7 million, the FAS reiterated the company’s strategy of first assessing any other possible investment opportunities prior to embarking on Phase 2 of the reconfiguration of the Vittoriosa Grand Harbour Marina.

Download 

Grand Harbour Marina plc – Financial Analysis Summary dated 14 August 2020.