Hudson Malta plc - Updated Financial Analysis Summary

On 28 June 2023, Hudson Malta plc published an updated Financial Analysis Summary. The following are the main highlights of the company’s expected financial performance and position in 2023:

• Revenues are expected to increase by 15.9% to €63.6 million reflecting stronger consumer demand as well as additional store openings.
• In view of higher levels of business, EDITDA is projected to climb by 11.5% to €7.36 million compared to €6.60 million in 2022.
• Finance costs are anticipated to increase by 12.8% to €1.22 million (2022: €1.08 million). The projected increases in EBITDA and financing costs effectively offset each other resulting in an unchanged interest coverage ratio of 6.1 times.
• In terms of financial position, total assets are expected to increase by 20% to €76.6 million. Similarly, total liabilities are forecasted to increase by 23.8% to €63.2 million.
• Total debt is forecasted to increase by 32.6% to €48.4, when including €30.2 million in lease liabilities. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to increase to 78.4% from 74.1% in 2022. Furthermore, the net debt to EBITDA multiple is forecasted to weaken to 6.28 times compared to 4.89 times in 2022.