Qawra Palace plc - Updated Financial Analysis Summary

On 27 September 2023, Qawra Palace plc published an updated Financial Analysis Summary. The following are the main highlights on the expected financial performance and financial position of Qawra Palace plc for the financial year ending 31 March 2024:

• Qawra Palace plc is expecting €2.4 million in rental revenues from Mallard Co Limited for the rental of the Qawra Palace Hotel.
• EBITDA is anticipated to amount to €2.3 million, reflecting minimal administrative costs of less than €0.1 million.
• Net finance costs are projected at €0.4 million as the recognition of the full-year interest on the bond is expected to be mostly offset by interest income from Mallard in line with the loan facility agreement between the two companies. As a result, the interest cover is expected to be 6.3 times.
• In terms of financial position, total assets are anticipated to increase by 4.9% (or €4.1 million) to €89.2 million consisting mainly of investment property of €69.1 million and loans and other receivables totalling €16.7 million. Meanwhile, total liabilities are projected to increase marginally by 0.5% (or €0.2 million) to €31.6 million. On the other hand, shareholder funds are forecasted to strengthen by 7.4% (or €4.0 million) to €57.7 million.
• Total debt is expected to remain unchanged at €24.4 million. However, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to drop to 29.7% compared to 31.3% in the previous year due to the improved equity position. Meanwhile, the net debt-to-EBITDA multiple is projected at 9 times.