AX Group plc – Updated Financial Analysis Summary

Jonathan Falzon

April 25, 2025

25 April, 2025
3 min read
25 April, 2025
3 min read

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 23 April 2025, AX Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of AX Group plc for the financial year ending 31 October 2025:

  • Revenue is anticipated to surge by 57% (or €48 million) to €131.6 million driven by the recognition of property sales of the Verdala Terraces. AX Group also expects improved income across all other business lines, namely hospitality, construction, and healthcare.
  • EBITDA is anticipated to increase by almost 60% (or €14.4 million) to €38.4 million.
  • Net finance costs are expected to increase by 14.6% to €8.90 million, reflecting the Group’s higher level of borrowings ahead of the completion of the Verdala project. Nonetheless, the interest cover is still anticipated to strengthen to 4.3 times from 3.1 times.
  • Total debt is expected to fall by 9.6% to €173.3 million from €191.7 million as at 31 October 2024 driven by a reduction in bank borrowings (-€22.46 million to €71.07 million) supported by the property sales of the Verdala Terraces. As a result, the gearing ratio is anticipated to fall to 40% compared to 44% in the previous financial year. Likewise, the debt to asset ratio is projected to decrease to 0.35 times compared to 0.37 times in the previous year.
  • The Group expects the Verdala Wellness hotel to be inaugurated in Q2 2025 while several units from the Verdala Terraces are being handed over to their new owners. The total expenditure for the Verdala Project is now expected to be around €83 million compared to the initial projection of €66 million.
  • The Group explained that the next phase of the Qawra project will include the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences comprising 151 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex. These phases are projected to cost between €70 million and €80 million.

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.

On 23 April 2025, AX Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of AX Group plc for the financial year ending 31 October 2025:

  • Revenue is anticipated to surge by 57% (or €48 million) to €131.6 million driven by the recognition of property sales of the Verdala Terraces. AX Group also expects improved income across all other business lines, namely hospitality, construction, and healthcare.
  • EBITDA is anticipated to increase by almost 60% (or €14.4 million) to €38.4 million.
  • Net finance costs are expected to increase by 14.6% to €8.90 million, reflecting the Group’s higher level of borrowings ahead of the completion of the Verdala project. Nonetheless, the interest cover is still anticipated to strengthen to 4.3 times from 3.1 times.
  • Total debt is expected to fall by 9.6% to €173.3 million from €191.7 million as at 31 October 2024 driven by a reduction in bank borrowings (-€22.46 million to €71.07 million) supported by the property sales of the Verdala Terraces. As a result, the gearing ratio is anticipated to fall to 40% compared to 44% in the previous financial year. Likewise, the debt to asset ratio is projected to decrease to 0.35 times compared to 0.37 times in the previous year.
  • The Group expects the Verdala Wellness hotel to be inaugurated in Q2 2025 while several units from the Verdala Terraces are being handed over to their new owners. The total expenditure for the Verdala Project is now expected to be around €83 million compared to the initial projection of €66 million.
  • The Group explained that the next phase of the Qawra project will include the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences comprising 151 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex. These phases are projected to cost between €70 million and €80 million.