G3 Finance plc - Updated Financial Analysis Summary

On 27 June 2023, G3 Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of G3 Holdings Limited (the Guarantor) in 2023:

• Revenues are expected to increase by a further 13.8% to a record of €12.3 million, principally driven by the anticipated surge in income from the restaurant segment (+37% to €5.05 million) reflecting the recent acquisitions of the Palm Beach Resort Lido and the DOMS Boutique Hotel.
• EBITDA is expected to drop by 9.7% to €3.20 million (2022: €3.55 million) as the gains in revenue are set to be offset by increases in operating costs.
• Net finance costs are anticipated to amount to €0.75 million compared to €0.59 million in 2022. As a result, the interest cover is expected to weaken to 4.3 times compared to 6 times in 2022.
• In terms of financial position, total assets (+3%) and total liabilities (+2.2%) are forecasted to increase to €43.4 million and €22.5 million respectively.
• The total debt is projected to remain virtually unchanged at €13.8 million, while the equity is expected to strengthen by 4% to €20.9 million. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to fall to 39.7% compared to 40.8% as at the end of 2022. Meanwhile in view of the lower EBITDA, net debt-to-EBITDA is projected to increase to 3.85 times compared to 3.06 times in 2022.