Hili Properties plc - Updated Financial Analysis Summary

On 28 August 2020, Hili Properties 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 24 June 2019, as well as the forecasts for 2020.

The following are the main highlights of the expected financial performance and financial position of Hili Properties plc in 2020:

• Revenues are anticipated to drop by 8.3% (or -€0.73 million) to €8.02 million reflecting the sale of the Tower Business Centre located in Swatar which was sold in late December 2019 for a total consideration of €11.7 million. In this respect, Hili Properties explained that it will only consider acquiring other properties replacing the Tower Business Centre when the prevailing uncertainties related to ‘COVID-19’ subside.
• EBITDA is expected to drop by 20% to €4.96 million (FY 2019: €6.2 million). Apart from the loss of income from the Tower Business Centre, the performance of Hili Properties is also anticipated to be dented by a notable increase in operating expenses amounting to €3.06 million compared to €2.55 million in 2019.
• Overall, Hili Properties is forecasting a net profit for the year of €2.33 million compared to €5.45 million recorded in the 2019 financial year. The forecasts also include a ‘net investment income’ of €1.54 million which partly reflects positive movements in the fair value of properties amounting to €1.1 million related to the Hili Building located in Luqa.
• Cash balances are anticipated to drop to €2.84 million compared to €7.14 million as at 31 December 2019. Similarly, total borrowings are expected to ease to €81.4 million (31 December 2019: €86.2 million) whilst the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to decline to 57.1% by the end of 2020 (31 December 2019: 59.9%). On the other hand, the net debt to EBITDA multiple is forecasted to increase to almost 16 times whilst the interest cover is expected to deteriorate to 1.47 times compared to 1.65 times in 2019.

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Hili Properties plc – Financial Analysis Summary dated 28 August 2020.