Best Deal Properties Holding plc - Updated Financial Analysis Summary

On 27 May 2021, Best Deal Properties Holding plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s financial results in 2020, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 26 June 2020, as well as the forecasts for 2021.

The following are the main highlights of the expected financial performance and financial position of Best Deal Properties Holding plc in 2021:

  • Revenues are anticipated to increase by 72.4% to €18.9 million reflecting the sale of units pertaining to five different projects, namely Blue Moon Court located in Marsascala, Garnet Court located in Mqabba, as well as other separate developments located in Mellieha, Pembroke and Zabbar. The Group also noted that it holds promise of sale agreements for the vast majority of the sales being projected.
  • Total operating costs are expected to increase by €5.3 million to €14.8 million, largely reflecting the recognition of development costs pertaining to the aforementioned sale of properties.
  • Given the much stronger increase in revenues, EBITDA is expected to jump by 175.8% to €4.1 million whilst the EBITDA margin is projected to improve to 21.6% compared to 13.5% in 2020.
  • The Group is also expecting to incur higher net finance costs which are forecasted to more than double to €0.22 million compared to €0.1 million in 2020.
  • Overall, the Group is forecasting a €2.1 million increase in net profit to €2.8 million which should also lead the Group’s equity base to grow by 69% to €7 million compared to €4.1 million as at the end of 2020.
  • The forecasted Statement of Financial Position as at 31 December 2021 also show that the projected revenues of €18.9 million will enable the Group to increase its sinking fund reserve by year end to €3.3 million (31 December 2020: €0.9 million) and reduce the amount of outstanding bonds by a further €1.4 million to €13.6 million.
  • In view of the anticipated increase in turnover and liquidity position of the Group, net debt is projected to drop substantially to €11.1 million from €18.5 million as at the end of 2020. Coupled with the aforementioned increase in the equity base of the Group, the net debt to equity multiple is expected to improve to 1.6 times compared to 4.5 times as at the end of 2020. Likewise, the gearing ratio (calculated as total debt divided by total debt and equity) is projected to decline to 69.1% from 82.7% in 2020.

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Best Deal Properties Holding plc – Financial Analysis Summary dated 27 May 2021.

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