SD 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 25 September 2026, SD Finance plc published an updated Financial Analysis Summary including forecasts for the financial year ending 31 March 2027. The following are the main highlights of the expected financial performance and position of SD Holdings Limited (the Guarantor of the outstanding bonds):
- In FY2026/27, revenue is projected to more than double to €237 million (FY2025/26: €111 million), reflecting €110 million in income from the sale of apartments at ORA Residences, almost all of which are already subject to promise of sale agreements. Excluding these sales, revenue is expected to rise by 14.2% to €127 million, supported by the continued positive performance of the Group’s mature operations and the initial contribution from the Hard Rock Hotel in St George’s Bay, which was inaugurated on 2 September 2026.
- EBITDA is forecast to surge to €104 million (FY2025/26: €33.2 million), translating into an EBITDA margin of 43.9% compared to 29.8% in FY2025/26, also reflecting the anticipated property sales.
- The revenue and EBITDA forecasts for FY2026/27 are lower than the €378 million and €181 million projected in the previous Financial Analysis Summary, mainly due to the delay in the commencement of operations of the hotel at the St George’s Bay and in the delivery of the residential units.
- Net finance costs are expected to increase by 17.3% to €14.8 million (FY2025/26: €12.6 million), owing to the additional debt supporting the Group’s expansion. Nonetheless, interest cover is projected to improve to 7.1 times from 2.6 times, albeit the earnings include one-off contributions from the sale of the residential units.
- Total assets are projected to rise by €28.4 million to €779 million by 31 March 2027 (March 2026: €750 million), including property, plant and equipment of €416 million and cash of €145 million. Total liabilities are expected to decline by €30.9 million to €466 million, and total equity is forecast to increase by €59.3 million to €313 million.
- Total debt is projected to rise by €48.7 million to €342 million by March 2027 (March 2026: €293 million). Debt securities are expected to increase to €125 million following the issue of the second and third tranches of the 5.20% unsecured bonds 2031, while bank borrowings are set to rise to €157 million. These increases are partly offset by a €22.7 million reduction in lease liabilities. Notably, €65 million in outstanding debt securities will mature on 25 April 2027, which is the following month after the financial year end.
- By the end of March 2027, gearing is expected to ease to 52.2% from 53.6%, whilst the debt-to-asset ratio is projected to increase to 0.44 times from 0.39 times. Given the higher cash balance, net debt is expected to increase only marginally to €197 million (March 2026: €195 million).
- The net debt-to-EBITDA multiple is forecast to improve to 1.9 times from 5.9 times, albeit the EBITDA includes one-time contributions from property sales.
- The Group’s 50-50 joint venture with RAK Hospitality Holding LLC is developing a prime beachfront site in Ras Al Khaimah in the United Arab Emirates, comprising a 304-key Hard Rock Hotel and 422 branded residences. Upon completion of the project in 2029, the Group is expected to be appointed as operator of the hotel.
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.