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Gap Group plc – Updated Financial Analysis Summary

Jonathan Falzon

June 27, 2025

27 June, 2025
3 min read
27 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 27 June 2025, Gap Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Gap Group plc in 2025:

  • Revenue is expected to fall to €25.2 million (2024: €48.2 million) as the Group recognises further the sales from the remaining stock of property at Qawra and Mosta. Furthermore, Gap is planning to put part of the Marsascala project on the market in Q3 2025, with the remaining part of the project expected to be completed and placed in the market in the first half of 2026.
  • In line with the lower sales, EBITDA is forecasted to fall to €9.32 million from €17.7 million last year. In fact, the EBITDA margin is expected to remain unchanged at 37%.
  • Gap Group is expecting finance income to exceed its finance costs, partly reflecting the capitalisation of interest expenses incurred on ongoing development projects.
  • Total assets are projected to fall by 18.1% (or €15.4 million) to €69.6 million driven by the reduction in development inventory.
  • Total debt is anticipated to drop by 72% (or €20.2 million) to €8.0 million as the Group intends to buyback most of the outstanding bonds from the secondary market and repay most of the bank borrowings. As such, the gearing ratio (calculated as total debt divided by total debt plus equity) is projected to decrease to 12.1% from 31.1% at the end of 2024.
  • The debt to asset ratio is forecasted to decrease to 0.11 times from 0.33 times in 2024.
  • Considering a forecasted cash balance of €6.3 million, the Group’s net debt is expected to drop to €1.7 million from €9.4 million at the end of last year.

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 27 June 2025, Gap Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Gap Group plc in 2025:

  • Revenue is expected to fall to €25.2 million (2024: €48.2 million) as the Group recognises further the sales from the remaining stock of property at Qawra and Mosta. Furthermore, Gap is planning to put part of the Marsascala project on the market in Q3 2025, with the remaining part of the project expected to be completed and placed in the market in the first half of 2026.
  • In line with the lower sales, EBITDA is forecasted to fall to €9.32 million from €17.7 million last year. In fact, the EBITDA margin is expected to remain unchanged at 37%.
  • Gap Group is expecting finance income to exceed its finance costs, partly reflecting the capitalisation of interest expenses incurred on ongoing development projects.
  • Total assets are projected to fall by 18.1% (or €15.4 million) to €69.6 million driven by the reduction in development inventory.
  • Total debt is anticipated to drop by 72% (or €20.2 million) to €8.0 million as the Group intends to buyback most of the outstanding bonds from the secondary market and repay most of the bank borrowings. As such, the gearing ratio (calculated as total debt divided by total debt plus equity) is projected to decrease to 12.1% from 31.1% at the end of 2024.
  • The debt to asset ratio is forecasted to decrease to 0.11 times from 0.33 times in 2024.
  • Considering a forecasted cash balance of €6.3 million, the Group’s net debt is expected to drop to €1.7 million from €9.4 million at the end of last year.