Premier Capital plc - Updated Financial Analysis Summary

On 25 August 2020, Premier Capital 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 20 June 2019, as well as the forecasts and projections for 2020 and 2021.

The following are the main highlights of the expected financial performance and financial position of Premier Finance plc in 2020 and 2021:

  • In 2020, revenues are anticipated to drop by 4.6% to €325.6 million largely due to lower business in Romania (-5.9%) and Malta (-12.3%) due to the impact of ‘COVID-19’. However, total revenues are then expected to surge by 11.7% to a new record of €363.7 million in 2021 largely driven by growth in sales in Romania (+14.4% to €209.2 million), Greece (+17.3% to €47.4 million) and Lithuania (+8% to €32 million).
  • EBITDA is expected to decline by 17.3% to €46.5 million in 2020 before rebounding by 17% in 2021 to a record of €54.4 million.
  • Despite the extraordinary circumstances due to the ‘COVID-19’ pandemic, Premier Capital is forecasting to report a net profit of €13.7 million in 2020 and €18.8 million in 2021.
  • Cash balances are anticipated to increase by 18.5% to €38.5 million as at the end of 2020 (boosted by a net cash inflow of €9.25 million from financing activities), before dropping sharply to €17.3 million as at 31 December 2021 (reflecting a net cash outflow of €37.8 million used in financing activities).
  • Total borrowings are expected to increase by nearly 18% to €205.4 million by the end of 2020 (including lease liabilities amounting to €89.6 million), before easing to €202.6 million in 2021. In contrast, net debt is expected to increase to €166.9 million by 31 December 2020, and rise further to €185.3 million by the end of 2021.
  • The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 81.4% by the end of 2020 (31 December 2019: 75.3%) but drop to the 80% level as at 31 December 2021. Similarly, the net debt to EBITDA multiple is forecasted to deteriorate to 3.59 times in the 2020 financial year (FY2019: 2.52 times) before dropping to 3.41 times in the 2021 financial year. Likewise, the interest cover is expected to drop to 6.4 times in the 2020 financial year (FY2019: 9 times) before improving to 6.74 times in the 2021 financial year.

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Premier Capital plc – Financial Analysis Summary dated 25 August 2020.