Market News

AX Group plc – Updated Financial Analysis Summary

Market News

Jonathan Falzon

April 20, 2026

20 April, 2026

6 min read

20 April, 2026

6 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 17 April 2026, AX Group plc published an updated Financial Analysis Summary. The Group explained that the Verdala Wellness Hotel was inaugurated in August 2025 as part of the broader €90 million Verdala Project, which also comprises the Verdala Terraces residential development. By 31 October 2025, more than 70% of the 87 residential units had been sold or contracted to be sold, with the remaining units expected to be sold in the current financial year.

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 2026:

Revenue is anticipated to increase by 11.8% to €146.7 million from €131.1 million in the previous year, driven primarily by the recognition of further property sales from the Verdala Terraces development, which is expected to generate income of €41.8 million. The AX Group also expects continued growth across its hospitality and healthcare divisions, including the benefit of the first full-year contribution from the Verdala Wellness Hotel and the Virtu Heights guestrooms which are targeted for completion in Q2 2026.
EBITDA is projected to increase by 23.4% to €44.2 million (FY2024/25: €35.8 million). Excluding property sales, EBITDA is expected to rise by 4.6% to €27 million.
Net finance costs are expected to decline by 14.3% to €8.1 million, reflecting the repayment of debt from the proceeds of the Verdala Terraces sales. As a result, the interest cover is anticipated to strengthen to 5.5 times from 3.8 times in FY2024/25.
Total debt is expected to fall by 7.9% to €170.7 million from €185.3 million as at 31 October 2025, driven primarily by a reduction in bank borrowings to €67.1 million from €82.7 million last year. As a result, the gearing ratio is anticipated to fall to 37.0% from 40.5% last year. Likewise, the debt-to-asset ratio is projected to decrease to 0.32 times compared to 0.35 times as October 2025.
After accounting for projected cash balances of €10.9 million as at 31 October 2026, the net debt is forecasted at €160 million, which translates into an improved net debt-to-EBITDA multiple of 3.6 times, a from 4.9 times in the last financial year. Excluding contributions from property sales, the net debt-to-EBITDA multiple is anticipated to strengthen to 5.9 times from 6.8 times in the previous year.
In March 2026, the Group concluded the acquisition of a site adjacent to Hilltop Gardens Retirement Village and Simblija Care Home. In the same month, the Group entered into a preliminary agreement for the purchase of another site adjacent to Hilltop Gardens and Simblija Care Home, with the transaction expected to be completed in due course.
During the current financial year, AX Group is planning to acquire of a sizeable plot in Marsa, with cash outflows projected at €12.3 million. The plot is adjacent to other Group-owned property in the area and this acquisition is expected to bring the Group’s total land ownership across three contiguous sites in Marsa to approximately 21,000 sqm.
The Group explained that it is anticipated to halt of operations at AX Sunny Coast Resort, AX Sunny Coast Lido, and the Luzzu Complex in late August 2026, to proceed with the second phase of the Qawra Project, which will comprise the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences featuring 161 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex to create a 300-metre waterfront stretch. The total investment for the full completion of the project is expected to be around €87 million, with construction anticipated to take 30 to 36 months.
An extensive refurbishment of AX The Palace in Sliema is scheduled to commence in November 2026 and continue until Q2 2027, with an estimated cost between €5 to €7 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 following are the main highlights of the expected financial performance and financial position of AX Group plc for the financial year ending 31 October 2026:

Revenue is anticipated to increase by 11.8% to €146.7 million from €131.1 million in the previous year, driven primarily by the recognition of further property sales from the Verdala Terraces development, which is expected to generate income of €41.8 million. The AX Group also expects continued growth across its hospitality and healthcare divisions, including the benefit of the first full-year contribution from the Verdala Wellness Hotel and the Virtu Heights guestrooms which are targeted for completion in Q2 2026.
EBITDA is projected to increase by 23.4% to €44.2 million (FY2024/25: €35.8 million). Excluding property sales, EBITDA is expected to rise by 4.6% to €27 million.
Net finance costs are expected to decline by 14.3% to €8.1 million, reflecting the repayment of debt from the proceeds of the Verdala Terraces sales. As a result, the interest cover is anticipated to strengthen to 5.5 times from 3.8 times in FY2024/25.
Total debt is expected to fall by 7.9% to €170.7 million from €185.3 million as at 31 October 2025, driven primarily by a reduction in bank borrowings to €67.1 million from €82.7 million last year. As a result, the gearing ratio is anticipated to fall to 37.0% from 40.5% last year. Likewise, the debt-to-asset ratio is projected to decrease to 0.32 times compared to 0.35 times as October 2025.
After accounting for projected cash balances of €10.9 million as at 31 October 2026, the net debt is forecasted at €160 million, which translates into an improved net debt-to-EBITDA multiple of 3.6 times, a from 4.9 times in the last financial year. Excluding contributions from property sales, the net debt-to-EBITDA multiple is anticipated to strengthen to 5.9 times from 6.8 times in the previous year.
In March 2026, the Group concluded the acquisition of a site adjacent to Hilltop Gardens Retirement Village and Simblija Care Home. In the same month, the Group entered into a preliminary agreement for the purchase of another site adjacent to Hilltop Gardens and Simblija Care Home, with the transaction expected to be completed in due course.
During the current financial year, AX Group is planning to acquire of a sizeable plot in Marsa, with cash outflows projected at €12.3 million. The plot is adjacent to other Group-owned property in the area and this acquisition is expected to bring the Group’s total land ownership across three contiguous sites in Marsa to approximately 21,000 sqm.
The Group explained that it is anticipated to halt of operations at AX Sunny Coast Resort, AX Sunny Coast Lido, and the Luzzu Complex in late August 2026, to proceed with the second phase of the Qawra Project, which will comprise the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences featuring 161 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex to create a 300-metre waterfront stretch. The total investment for the full completion of the project is expected to be around €87 million, with construction anticipated to take 30 to 36 months.
An extensive refurbishment of AX The Palace in Sliema is scheduled to commence in November 2026 and continue until Q2 2027, with an estimated cost between €5 to €7 million.