Grand Harbour Marina plc - Updated Financial Analysis Summary

On 27 May 2019, Grand Harbour Marina plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s financial results in 2018, a comparison of the 2018 actual results with the forecasts published in the previous FAS dated 22 June 2018, as well as the forecasts for the current financial year ending 31 December 2019.

The following are the main highlights of the expected financial performance and financial position of GHM in 2019:

  • Revenues are anticipated to drop by just over 5% to €4.48 million reflecting a projected decrease in superyacht berth night occupancy to 77% from 80% in 2018.
  • EBITDA is expected to increase by nearly 15% to €1.81 million reflecting the implementation of new accounting standards governing the recognition of lease expenses as part of finance costs instead of operational expenses. As a result, finance costs are expected to amount to €1.17 million compared to €0.64 million in 2018.
  • The net profit figure for the year is projected at €0.39 million, representing a decline of 6.4%.
  • The company is anticipating to close the year with a cash balance of just over €10 million, representing an increase of 21% (or +€1.75 million).
  • Total borrowings are expected to remain virtually unchanged at €14.7 million, but net debt is anticipated to contract by 27% to €4.61 million due to the substantial increase in cash balances. Coupled with the surge in EBITDA, the net debt to EBITDA multiple is expected to improve to 2.54 times compared to 4 times for the 2018 financial year. Conversely, the interest cover is expected to deteriorate to 1.54 times compared to 2.47 times in 2018.

Meanwhile, the updated FAS explains that the process related to Phase 1 of the planned reconfiguration of the Vittoriosa Grand Harbour Marina is currently underway but this is not reflected in the 2019 projections. At the time of the issuance of the 4.5% GHM 2027 unsecured bonds, the company had earmarked a budget of €0.8 million for undertaking this investment. With respect to the remaining balance of the bond proceeds amounting to €2.7 million, the FAS reiterated the company’s strategy of first assessing any other possible investment opportunities prior to embarking on Phase 2 of the reconfiguration of the Vittoriosa Grand Harbour Marina.

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Grand Harbour Marina plc – Financial Analysis Summary dated 27 May 2019.