AX Group plc - Updated Financial Analysis Summary
On 14 April 2022, AX Group plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the Group’s financial results for the financial year ended 31 October 2021, a comparison of the 2020/21 actual results with the forecasts published in the previous FAS dated 30 April 2021, as well as the forecasts for the current financial year ending 31 October 2022.
The following are the main highlights of the expected financial performance and financial position of AX Group plc in FY2021/22:
- Revenues are anticipated to increase by 5.9% to €37.9 million as the projected growth from the hotels located in Sliema and Valletta, coupled with the higher level of business of the construction and care segments, are expected to outweigh the loss of income from the Qawra properties which are currently undergoing a major upgrading and extension project.
- Operating expenses are expected to increase by 8.4% to €31.6 million. As a result, EBITDA is anticipated to drop by 5% to €6.3 million compared to €6.7 million in the 2020/21 financial year.
- Depreciation charges are expected to ease by 3.3% to €6.6 million whilst net finance costs are forecasted to remain at €3.9 million.
- Overall, AX Group is forecasting a net loss of €3.7 million (FY2020/21: net profit of €1.9 million) as the Group is not projecting any fair value gains from its investment properties.
- Total borrowings are expected to surge by 40% to €122.7 million whilst net debt is anticipated to increase to €109.3 million compared to €81.8 million as at 31 October 2021.
- The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to climb to 33.3% (31 October 2021: 27.0%) and the net debt to EBITDA multiple is forecasted to rise to 17.2 times (compared to 12.2 times for FY2020/21). The interest cover is expected to ease minimally to 1.6 times from 1.7 times in FY2020/21.
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AX Group plc – Financial Analysis Summary dated 14 April 2022.