SD Finance plc - Updated Financial Analysis Summary

On 20 September 2023, SD Finance plc published an updated Financial Analysis Summary. The following are the main highlights on the expected financial performance and financial position of SD Holdings Ltd (the Guarantor) for the financial year ending 31 March 2024:

  • Revenues are expected to increase by 13.3% to a record of €80.2 million (FY2022/23: €70.8 million) driven by the recovery of tourism as well as the continued expansion of catering and Starbucks outlets.
  • EBITDA is anticipated to climb by 2.4% to €25.4 million compared to €24.8 million in the last financial year. The forecasted figure is still 1.2% lower than the record EBITDA of €25.7 million achieved in FY2019/20. Nonetheless, the EBITDA margin is forecasted to shrink to 31.6% (FY2022/23: 35%), reflecting higher costs attributed to inflationary pressures, the establishment of new restaurants and an increase in personnel. Moreover, no recurrence of previous government wage grants is expected during the upcoming year.
  • Net finance costs are projected to be 13.8% higher at €6.0 million compared to €5.3 million in the previous year. As a result, interest cover is expected to ease to 4.21 times (FY 2022/23: 4.68 times).
  • The financial performance of SD Holdings Ltd is also expected to be boosted by the share of results of associate companies, reflecting the contribution from Malta Healthcare Caterers Limited, which is projected to remain at €5.7 million.
  • In terms of financial position, total assets are expected to increase by 10.9% (+€40.9 million) to €417.0 million largely reflecting line-item increases to property, plant and equipment, investment in associates and Right-of-use assets. Meanwhile, total liabilities are projected to climb by 13.5% (+30.3 million) to €254.3 million. As a result, shareholder funds are projected to strengthen by 7% (+€10.6 million) to €162.8 million.
  • Total debt is expected to surge by 30.3% to €127.1 million (FY2022/23: €97.5 million). Consequently, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 43.8% from 39.1% in the previous year. Meanwhile, the net debt-to-EBITDA multiple is projected to deteriorate to 2.73 times (FY2022/23: 1.74 times).