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Phoenicia Finance Company plc – Updated Financial Analysis Summary

Jonathan Falzon

June 30, 2025

30 June, 2025
3 min read
30 June, 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 24 June 2025, Phoenicia Finance Company plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Phoenicia Group (combined financial statements of the Guarantors) in 2025:

  • Revenues are expected to increase by 8.2% to a record €25.6 million (2024: €23.6 million) driven by higher room rates. In fact, revenue per available room (RevPAR) is anticipated to rise to €364, up from €321 in the previous year. Meanwhile, occupancy levels are expected to remain in line with the previous year at 73%.
  • EBITDA is expected to surge by 44.7% to €9.0 million (2024: €6.2 million) as operating expenditure is forecasted to grow at a slower pace than income. In fact, the EBITDA margin is expected to improve to 35.3%, from 26.4% in 2024.
  • Net finance costs are expected to remain unchanged from last year at €2.8 million. Consequently, the interest cover will improve to 3.2 times from 2.2 times.
  • Total debt is expected to decrease by 1.4% (or €0.9 million) to €66.1 million. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to decrease to 45.2% compared to 46.5% as at the end of 2024.
  • When accounting for a forecasted cash balance of €3.8 million as at the end of 2024, the net debt is expected to drop by 5.8% (or €3.9 million) to €62.4 million. Coupled with the anticipated growth in EBITDA, the net debt-to-EBITDA multiple is anticipated to improve to 6.9 times from 10.6 times as at the end of 2024.
  • The Group applied for a permit to extend the hotel’s facilities within St John’s Ditch to add 51 additional guestrooms. The Group expects the project to be completed in 2028 for an estimated cost of around €35 million and could potentially result in an expected incremental average annual EBITDA of €7.5 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 24 June 2025, Phoenicia Finance Company plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Phoenicia Group (combined financial statements of the Guarantors) in 2025:

  • Revenues are expected to increase by 8.2% to a record €25.6 million (2024: €23.6 million) driven by higher room rates. In fact, revenue per available room (RevPAR) is anticipated to rise to €364, up from €321 in the previous year. Meanwhile, occupancy levels are expected to remain in line with the previous year at 73%.
  • EBITDA is expected to surge by 44.7% to €9.0 million (2024: €6.2 million) as operating expenditure is forecasted to grow at a slower pace than income. In fact, the EBITDA margin is expected to improve to 35.3%, from 26.4% in 2024.
  • Net finance costs are expected to remain unchanged from last year at €2.8 million. Consequently, the interest cover will improve to 3.2 times from 2.2 times.
  • Total debt is expected to decrease by 1.4% (or €0.9 million) to €66.1 million. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to decrease to 45.2% compared to 46.5% as at the end of 2024.
  • When accounting for a forecasted cash balance of €3.8 million as at the end of 2024, the net debt is expected to drop by 5.8% (or €3.9 million) to €62.4 million. Coupled with the anticipated growth in EBITDA, the net debt-to-EBITDA multiple is anticipated to improve to 6.9 times from 10.6 times as at the end of 2024.
  • The Group applied for a permit to extend the hotel’s facilities within St John’s Ditch to add 51 additional guestrooms. The Group expects the project to be completed in 2028 for an estimated cost of around €35 million and could potentially result in an expected incremental average annual EBITDA of €7.5 million.