1923 Investments plc - Updated Financial Analysis Summary
On 28 August 2020, 1923 Investments plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s financial results in 2019, a comparison of the 2019 actual results with the forecasts published in the previous FAS dated 20 June 2019, as well as the forecasts for 2020.
The following are the main highlights of the expected financial performance and financial position of 1923 Investments plc in 2020:
- Revenues are anticipated to surge by 18.2% (or +€24.6 million) to a record of €159.5 million reflecting the eight-month contribution from STS Marine Solutions (€11.8 million) which was acquired on 1 May 2020, as well as the forecasted increase in turnover to be generated by iSpot Poland (+€8.56 million) and Harvest Technology (+€5.32 million).
- EBITDA is expected to increase by 34% to €11.7 million (FY 2019: €8.7 million) driven by the contribution for the first time of STS Marine Solutions (€1.78 million) as well as the growth that iSpot Poland and Harvest Technology are anticipated to achieve during the year.
- 1923 Investments is forecasting a net profit for the year of €3.42 million compared to €1.61 million recorded in the 2019 financial year.
- Cash balances are anticipated to drop to €11.3 million (31 December 2019: €18.9 million) whilst total borrowings are expected to increase by nearly 12% to €70.7 million (31 December 2019: €63.2 million) when including lease liabilities amounting to €8.6 million.
- Despite the further increase in the capital base of the company to €47.8 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase slightly to 59.7% by the end of 2020 (31 December 2019: 58.4%). On the other hand, the net debt to EBITDA multiple is forecasted to remain unchanged at 5.09 times whilst the interest cover is expected to drop to 3.07 times compared to 3.3 times in 2019.
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1923 Investments plc – Financial Analysis Summary dated 28 August 2020.