Hili Finance Company plc - Updated Financial Analysis Summary

On 4 June 2024, Hili Finance Company plc published an updated Financial Analysis Summary, which formed part of the Prospectus in relation to an issue of €80 million 5% unsecured bonds maturing in 2029. The following are the main highlights of the expected financial performance and position of Hili Ventures Limited (the Guarantor of the bonds) in 2024 and 2025:

• Revenue is expected to surge by 15.0% to a record of €1.14 billion in 2024 and increase by a further 9.6% to €1.24 billion in 2025. The improvement is expected through business growth across various subsidiaries, including new store openings by Premier Capital plc and 1923 Investments plc.
• EBITDA is forecasted at €142.6 million (+14.1%) in 2024 and €160.6 million (+12.6%) in 2025.
• Net finance costs are expected to remain virtually unchanged at the €30 million level. As a result of the growth in EBITDA, the interest cover is forecasted to improve to 4.7 times in 2024 and 5.5 times in 2025 compared to 4.2 times in 2023.
• As at 31 December 2024, total debt is anticipated to remain relatively unchanged at €634.5 million, as the increase in bonds and lease liabilities will be largely offset by lower levels of bank borrowings.  By the end of 2025, total debt is anticipated to decline by 6% to €596.2 million driven by lower borrowings. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is projected to decline to 71.0% in 2024 and 66.5% in 2025, compared to 72.2% as at the end of 2023.
• When accounting for the expected cash balances of €50 million as at 31 December 2024 and €64.4 million as 31 December 2025, net debt is forecasted at €584.5 million and €531.8 million respectively. Consequently, the net debt-to-EBITDA multiple is projected to improve to 4.1 times in 2024 and 3.3 times in 2025, compared to 4.4 times in 2023.