Exalco Finance plc – Updated Financial Analysis Summary
Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.
On 4 June 2026, Exalco Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Exalco Properties Limited (the Guarantor) in 2026:
- A planning application was submitted to redevelop the Mayfair Business Centre into a high-quality 12-storey hotel with an underground car park. Discussions with potential hotel operators are underway and existing tenants have been issued termination notices and are expected to vacate later in 2026 for the project to commence. The Guarantor aims to finance this development through bank borrowings.
- Revenue is expected to decrease by 11.0% to €4.1 million (2025: €4.7 million) primarily due to the planned redevelopment of the Mayfair Business Centre, which will result in a reduction of rental income from that property commencing as from Q4 2026. Additionally, a new long-term lease agreement with a language school at the Golden Mile Business Centre will commence in June 2026, thus not reflecting a full-year contribution.
- EBITDA is anticipated to decrease by 12.6% to €3.33 million. Furthermore, the EBITDA margin is anticipated to decrease to 80.3% (2025: 81.9%).
- Net finance costs are projected to increase to €0.85 million (2025: €0.76 million). Consequently, the interest cover is expected to weaken to 3.9 times from 5.0 times in 2025.
- Total debt is anticipated to remain unchanged at €15.3 million, principally comprising the outstanding bond issue. Total equity is anticipated to rise by €1.2 million to €57.8 million, consequently the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to improve marginally to 20.9% from 21.3% as at the end of 2025.
- Given an anticipated lower cash balance of €0.98 million (31 December 2025: €2.31 million), net debt is estimated to climb to €14.3 million. As a result, the net debt to EBITDA multiple is forecasted to worsen to 4.3 times compared to 3.4 times as at 31 December 2025, reflecting the impact of property development across two key sites within the Guarantor’s portfolio.
- Exalco expects to incur additional borrowings in connection with the ongoing development of the Savoy property, with an external loan facility of approximately €7 million required to fund the remaining works, with completion targeted for the end of 2027.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.