Hili Finance Company plc - Updated Financial Analysis Summary

On 31 August 2020, Hili Finance Company plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s and the guarantor’s, Hili Ventures Limited, financial results for 2019, a comparison of the 2019 actual results with the forecasts published in the previous FAS dated 28 June 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 Hili Ventures Limited in 2020:

  • Revenues are anticipated to increase by 2.7% to €503.8 million as the expected growth to be generated by iSpot Poland, Harvest Technology, Hili Logistics and Motherwell Bridge will offset the forecasted decline in turnover by Premier Capital and Hili Properties.
  • Operating expenses are expected to increase by 3.7% to €441.9 million, resulting in a decline in EBITDA to €61.8 million compared to €64.6 million in the 2019 financial year.
  • The financial performance of Hili Ventures is also expected to be dented by higher depreciation and amortisation charges (+€6.37 million to €33.6 million) as well as lower investment income (-€4.93 million to €0.84 million).
  • Overall, Hili Ventures is forecasting to report a net profit of €10.1 million (FY2019: €22.6 million) and also to end the 2020 financial year with a cash balance of €58.6 million compared to €66.2 million as at 31 December 2019.
  • Total borrowings are expected to increase by 7.5% to €469.8 million (including lease liabilities amounting to €81.2 million) whilst net debt is anticipated to rise to almost €411.2 million compared to €370.9 million as at 31 December 2019.
  • The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 81.8% (31 December 2019: 79.9%). Similarly, the net debt to EBITDA multiple is forecasted to deteriorate to 6.65 times (compared to 5.74 times for the 2019 financial year) whilst the interest cover is expected to remain virtually unchanged at around 3.9 times.

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Hili Finance Company plc – Financial Analysis Summary dated 31 August 2020.