SP Finance plc - Updated Financial Analysis Summary

On 28 June 2023, SP Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of SP Finance plc in 2023:

• Revenues are anticipated to surge to €10.7 million compared to €3.6 million last year, reflecting the improvement in income from its two hotel operations (Pebbles Boutique Aparthotel and Pebbles Resort) as well as additional revenue from the catering business (Med Asia Operations Ltd) acquired in April 2023, which was previously held by related companies outside of the Group.
• EBITDA is expected to amount to €3.01 million compared to €1.03 million in the 2022 financial year.
• Finance costs are expected to remain virtually unchanged at €0.87 million. As a result, the interest cover is forecasted to improve to 3.5 times (2022: 1.2 times).
• The expected financial position as at 31 December 2023 shows an addition in total assets (+15.2%) to €32.4 million and a reduction in total liabilities (-4.3%) to €22.4 million.
• Since total debt is expected to drop by 9.9% to €17.3 million, when including €4.3 million in lease liabilities, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 46.4% from 58.9% as at the end of 2022. Furthermore, the net debt to EBITDA multiple is projected to drop to 5.7 times from 18.6 times in 2022.