AX Group plc - Updated Financial Analysis Summary

On 30 April 2021, AX Group plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the Group’s financial results for the financial year ended 31 October 2020, a comparison of the 2019/20 actual results with the forecasts published in the previous FAS dated 23 June 2020, as well as the forecasts for the current financial year ending 31 October 2021.

The following are the main highlights of the expected financial performance and financial position of AX Group plc in FY2020/21:

  • Revenues are anticipated to increase by 22.5% to €35.2 million as the Group is expected to register strong growth from its ‘Real estate & rental income’ division which will offset the forecasted decline in turnover within the ‘Hospitality & entertainment’ division. In fact, during FY2020/21 the Group is expected to generate €8.3 million in revenue from the sale of 9 units at ‘Falcon House’ and another 9 units at ‘Targa Gap Complex’.
  • Operating expenses are expected to increase by 9.1% to €28.8 million, resulting in an improvement in EBITDA to €6.7 million compared to just €2.6 million in the 2019/20 financial year. Moreover, the EBITDA margin is projected to improve from 9% in FY2019/20 to 19% in FY2020/21.
  • Depreciation costs are expected to ease by 8.1% to €6.5 million whilst net finance costs are forecasted to increase by 8.5% to €3.7 million.
  • Overall, AX Group is forecasting to report a net loss of €2.9 million (FY2019/20: net loss of €7.9 million) and also end the 2020/21 financial year with a cash balance of €3.4 million compared to €2.2 million as at 31 October 2020.
  • Total borrowings are expected to increase by 6.1% to €81.6 million whilst net debt is anticipated to rise to €78.2 million compared to €74.7 million as at 31 October 2020.
  • The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase marginally to 27.6% (31 October 2020: 26.1%). On the other hand, the net debt to EBITDA multiple is forecasted to improve to 11.8 times (compared to 28.5 times for FY2019/20) whilst the interest cover is expected to strengthen considerably to 1.7 times from 0.8 times in FY2019/20 to.

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AX Group plc – Financial Analysis Summary dated 30 April 2021.

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