Virtu Finance plc - Updated Financial Analysis Summary

On 25 August 2020, Virtu Finance plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s and the guarantor’s (namely Virtu Maritime Limited) 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 the current financial year ending 31 December 2020.

The following are the main highlights of the expected financial performance and financial position of Virtu Maritime Limited in 2020:

  • Revenues are anticipated to drop by 28.6% to €31 million largely due to the significant disruptions to the ‘Ferry service, accommodation & excursions’ business brought about by the ‘COVID-19’ pandemic. On the other hand, the Guarantor expects revenues from ‘Charter hire & related income’ to surge by 13.4% to €15 million reflecting the extension of the one-year lease agreement by 6 months for the HSC Jean de la Valette till the end of 2020.
  • EBITDA is expected to decline to €13.7 million compared to €21.3 million in the 2019 financial year.
  • Despite the extraordinary circumstances due to the ‘COVID-19’ pandemic, the Guarantor is forecasting to report a net profit of €4.48 million and also to end the 2020 financial year with a cash balance of €11.8 million compared to €8.46 million as at 31 December 2019.
  • While total borrowings are expected to remain virtually unchanged at €93 million (when including lease liabilities forecasted at €7.77 million), net debt is anticipated to drop by 3.9% to €81.2 million (31 December 2019: €84.5 million) reflecting the considerable forecasted increase in cash reserves (+39.3%).
  • The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 51.8% (31 December 2019: 53.1%). On the other hand, given the expected drop in EBITDA, and despite the decline in net debt, the net debt to EBITDA multiple is forecasted to deteriorate to 5.94 times compared to 3.96 times for the 2019 financial year. Likewise, the interest cover is expected to drop to 4.28 times compared to 7.50 times in 2019.

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Virtu Finance plc – Financial Analysis Summary dated 25 August 2020.