Hal Mann Vella Group plc - Updated Financial Analysis Summary

On 21 June 2023, Hal Mann Vella Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Hal Mann Vella Group in 2023:

• Revenues are expected to increase by 9.3% to €26.1 million mostly due to the expected growth in income from manufacturing and general contracting activities (+12% to €20.4 million).
• EBITDA is anticipated to amount to €5.17 million compared to €5.72 million in 2022, as the financial performance is anticipated to be impacted by higher inflation and tight labour market conditions.
• Net finance costs are expected to remain virtually unchanged at €2.4 million, however, in view of the lower EBITDA, the interest cover is expected to ease to 2.1 times compared to 2.4 times in 2022.
• In terms of financial position, total assets and liabilities are expected to climb to €127.8 million (+2.6%) and €76 million (2.3%) respectively.
• Total debt is projected to increase by 0.7% to €55.1 million, when including €8.6 million in lease liabilities. However, as the equity position is expected to strengthen by a further 3% to €51.8 million, the Group’s gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to drop to 51.5% (31 December 2022 52.1%). Meanwhile, in view of the expected drop in EBITDA, the net debt-to-EBITDA multiple is anticipated to deteriorate to 10.1 times compared to 9.5 times in 2022.