CPHCL Finance plc - Updated Financial Analysis Summary

On 2 June 2023, CPHCL Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of CPHCL Company Limited (the Guarantor) in 2023:

• Revenues are expected to increase by 18.9% to a record of €321.5 million compared to €270.3 million in 2022. Indeed, the 2023 revenue figure is expected to be 2.8% higher than the previous record of €312.9 million generated in 2019 prior to the outbreak of the pandemic. The expected surge in revenue reflects the continued rebound in the hospitality sector.
• EBITDA is forecasted to increase by 10.5% (or €5.5 million) to €57.5 million, which however is 18.7% lower than the record EBITDA of €70.7 million generated in 2019, reflecting the higher level of operating costs.
• CPHCL’s net finance costs are expected to amount to €42.5 million compared to €31.3 in 2022. As such, despite the forecasted improvement in EBITDA, the interest cover is anticipated to drop to 1.35 times compared to 1.66 times in 2022.
• In terms of financial position, total assets are expected to increase by 3.4% (or €61.5 million) to €1.87 billion while total liabilities are projected to increase by 8.9% (or €83.1 million) to €1.02 billion.
• Total debt is projected to rise to €816 million compared to €724 million as at the end of 2022. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 48.9% (31 December 2022: 45.2%). Furthermore, the net debt-to-EBITDA multiple is anticipated to increase marginally to 12.8 times compared to 12.4 times as at the end of 2022.