Eden Finance plc - Updated Financial Analysis Summary

On 31 August 2020, Eden Finance plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s and the guarantor’s (namely Eden Leisure Group Limited) financial results in 2019, a comparison of the 2019 actual results with the forecasts published in the previous FAS dated 27 June 2019, as well as the forecasts for the current financial year ending 31 December 2020.

The following are the main highlights of the expected financial performance and financial position of Eden Leisure Group Limited in 2020:

• Revenues are anticipated to drop by 68.1% (or -€30.7 million) to €14.3 million reflecting the significant disruptions to the hotel business brought about by the ‘COVID-19’ pandemic.
• Although operating expenses are expected to drop by more than half to €15.2 million, the Eden Group is anticipating a negative EBITDA for the year of €0.89 million compared to a positive EBITDA of €13.6 million in the 2019 financial year.
• Overall, the Eden Group is forecasting to report a net loss of €4.4 million (compared to a net profit of €12.7 million in 2019) and also to end the 2020 financial year with a cash balance of €3.65 million compared to €10.2 million as at 31 December 2019.
• While total borrowings are expected to remain largely unchanged at €54.6 million (including lease liabilities amounting to €1.73 million), net debt is anticipated to rise to €50.9 million (31 December 2019: €44.3 million) reflecting the considerable forecasted drop in cash reserves.
• The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase slightly to 33.4% (31 December 2019: 32.5%). Furthermore, given the expected sharp drop in EBITDA to a negative €0.89 million, the Eden Group is not expecting to generate enough earnings to cover its net finance costs amounting to €1.88 million.

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Eden Finance plc – Financial Analysis Summary dated 31 August 2020.