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SD Finance plc – Updated Financial Analysis Summary

Jonathan Falzon

September 26, 2025

Market News
26 September, 2025
6 min read
Market News
26 September, 2025
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 25 September 2025, SD Finance plc published an updated Financial Analysis Summary including forecasts for the two financial years ending 31 March 2026 and 31 March 2027.

Furthermore, SD Finance also announced that it has submitted an application to the MFSA for a €60 million unsecured bond issuance program, with a first tranche consisting of €33 million 5.20% unsecured bonds redeemable in 2031.

The following are the main highlights of the expected financial performance and position of SD Holdings Ltd (the Guarantor) of the outstanding bonds:

  • In FY2025/26 revenue is expected to increase by 9.7% to a record of €109 million principally reflecting growth from its owned hotels and the food & beverage segment, including the newly inaugurated Aki London.
  • Despite the higher turnover, EBITDA in FY2025/26 is forecast to decline by 10.0% to €32.2 million (FY2024/25: €35.8 million) as the increase in net operating costs is projected to outpace revenue growth due to one-off costs related to the db St George’s Bay project and Aki London. As a result, the EBITDA margin is expected to move lower to 29.6% from 36.1% in the previous year.
  • In FY2026/27, revenue is projected to surge to €378 million, reflecting the income of €203 million from the sales of ORA apartments, most of which are already under promise of sale agreements. Recurring revenue is expected to rise by 61% to €175 million, driven by a €54.7 million contribution from the new Hard Rock Hotel and ancillary operations at db St George’s Bay.
  • EBITDA in FY2026/27 is projected to amount to a record €181 million of which €124 million are attributed to the sales of the ORA apartments. Recurring EBITDA is anticipated to surge by 75.1% to €56.4 million.
  • Net finance costs will increase by 70% to €11.2 million FY2025/26 and a further 27.7% to €14.3 million in FY2026/27, reflecting the impact of the increase in borrowing to support the significant investment in the db St George’s Bay project. In FY2026/27, the interest cover is projected to be 12.6 times, but when excluding the impact from the one-off sales of the ORA apartments, the interest cover stands at 3.9 times.
  • The Group disposed of its 50% stake in Malta Healthcare Caterers Limited for €34.5 million during the current financial year. Associate contributions are expected to return in FY2026/27 to €1.13 million due to the partial ownership of the St George’s Mall within the db St George’s Bay project.
  • Total assets are projected to rise by €225 million to €817 million by 31 March 2027 (March 2025: €591 million), including property, plant and equipment of €423 million (March 2025: €280 million) and cash of €192 million (March 2025: €89.5 million). Total liabilities are expected to increase by €75.3 million to €426 million whilst total equity will increase by €150 million to €391 million.
  • Total debt is projected to rise to €365 million by March 2026, reflecting further bank borrowings and the issuance of new bonds. Total debt will ease marginally to €323 million by March 2027. Gearing is expected at 58.0% and 45.2% respectively in March 2026 and March 2027, whilst the debt-to-asset ratio is projected at 0.46 times and 0.40 times respectively.
  • The Group established a 50-50 joint venture with RAK Hospitality Holding LLC to develop a prime beachfront site in Ras Al Khaimah in United Arab Emirates, comprising a 304-room Hard Rock Hotel and circa 395 branded residences.
  • In July 2025, the Group applied for an additional full development permit in relation to the proposed extension of both ORA Residences towers at St Julians by a total of 13 floors. The proposal provides for an additional 82 apartments.

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 25 September 2025, SD Finance plc published an updated Financial Analysis Summary including forecasts for the two financial years ending 31 March 2026 and 31 March 2027.

Furthermore, SD Finance also announced that it has submitted an application to the MFSA for a €60 million unsecured bond issuance program, with a first tranche consisting of €33 million 5.20% unsecured bonds redeemable in 2031.

The following are the main highlights of the expected financial performance and position of SD Holdings Ltd (the Guarantor) of the outstanding bonds:

  • In FY2025/26 revenue is expected to increase by 9.7% to a record of €109 million principally reflecting growth from its owned hotels and the food & beverage segment, including the newly inaugurated Aki London.
  • Despite the higher turnover, EBITDA in FY2025/26 is forecast to decline by 10.0% to €32.2 million (FY2024/25: €35.8 million) as the increase in net operating costs is projected to outpace revenue growth due to one-off costs related to the db St George’s Bay project and Aki London. As a result, the EBITDA margin is expected to move lower to 29.6% from 36.1% in the previous year.
  • In FY2026/27, revenue is projected to surge to €378 million, reflecting the income of €203 million from the sales of ORA apartments, most of which are already under promise of sale agreements. Recurring revenue is expected to rise by 61% to €175 million, driven by a €54.7 million contribution from the new Hard Rock Hotel and ancillary operations at db St George’s Bay.
  • EBITDA in FY2026/27 is projected to amount to a record €181 million of which €124 million are attributed to the sales of the ORA apartments. Recurring EBITDA is anticipated to surge by 75.1% to €56.4 million.
  • Net finance costs will increase by 70% to €11.2 million FY2025/26 and a further 27.7% to €14.3 million in FY2026/27, reflecting the impact of the increase in borrowing to support the significant investment in the db St George’s Bay project. In FY2026/27, the interest cover is projected to be 12.6 times, but when excluding the impact from the one-off sales of the ORA apartments, the interest cover stands at 3.9 times.
  • The Group disposed of its 50% stake in Malta Healthcare Caterers Limited for €34.5 million during the current financial year. Associate contributions are expected to return in FY2026/27 to €1.13 million due to the partial ownership of the St George’s Mall within the db St George’s Bay project.
  • Total assets are projected to rise by €225 million to €817 million by 31 March 2027 (March 2025: €591 million), including property, plant and equipment of €423 million (March 2025: €280 million) and cash of €192 million (March 2025: €89.5 million). Total liabilities are expected to increase by €75.3 million to €426 million whilst total equity will increase by €150 million to €391 million.
  • Total debt is projected to rise to €365 million by March 2026, reflecting further bank borrowings and the issuance of new bonds. Total debt will ease marginally to €323 million by March 2027. Gearing is expected at 58.0% and 45.2% respectively in March 2026 and March 2027, whilst the debt-to-asset ratio is projected at 0.46 times and 0.40 times respectively.
  • The Group established a 50-50 joint venture with RAK Hospitality Holding LLC to develop a prime beachfront site in Ras Al Khaimah in United Arab Emirates, comprising a 304-room Hard Rock Hotel and circa 395 branded residences.
  • In July 2025, the Group applied for an additional full development permit in relation to the proposed extension of both ORA Residences towers at St Julians by a total of 13 floors. The proposal provides for an additional 82 apartments.