Hal Mann Vella Group plc - Updated Financial Analysis Summary

On 28 June 2024, Hal Mann Vella Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Hal Mann Vella Group in 2024 and 2025:

  • In 2024, revenues are expected to increase by 12.6% to €28.2 million amid double digit growth across its three income streams: manufacturing and general contracting activities (+12% to €21.7 million), property development (+20% to €3.7 million) and rental activities (+10% to €2.8 million). In 2025, Hal Mann is projecting revenues of €30.7 million, which would represent a further 8.8% growth in income, largely driven by manufacturing and general contracting activities.
  • EBITDA is anticipated to surge by 23.8% to €7.2 million in 2024, reflecting higher contributions from property development and letting. Meanwhile in 2025, EBITDA is projected to fall by 9.8% to €6.5 million as the Group is anticipating lower property sales when compared to a year earlier.
  • Net finance costs are expected to increase by 6.3% to €2.8 million in 2024 but projected to drop by 11.7% to €2.5 million in 2025.  Consequently, the interest cover is expected to strengthen to the 2.6 times level in both years, compared to 2.2 times in 2023.
  • Total debt is projected to decrease by 3.4% to €54.0 million as at the end of 2024 and ease by a further 0.5% to €53.7 million by the end of 2025, which includes €8.1 million in lease liabilities. In fact, the Group’s gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to drop below the 50% level for the first time in 10 years.
  • The Group’s debt to asset ratio is expected to remain stable at the 0.42 times level across the projected period, which is marginally lower than the 0.43 times level as at the end of 2023.
  • When accounting for projected cash balances totalling €8.1 million at 31 December 2025, the net debt position as is expected at €45.6 million, which translates into a net debt to EBITDA multiple of 7.1 times compared to 9.5 times in 2023.