On 14 June 2021, Central Business Centres plc (“CBC”) 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 23 June 2020, as well as forecasts for 2021.
The following are the main highlights of the expected financial performance and financial position of Central Business Centres plc in 2021:
- Total revenues are expected to drop by 26.0% to €0.9 million which also includes the income from the lease of the Zebbug site for which a development permit for a proposed LIDL supermarket is currently being considered by the Planning Authority.
- Administrative expenses are forecasted to increase by 12.3% to €0.13 million. Coupled with the projected drop in revenue, EBITDA is expected to deteriorate by nearly 30% to €0.8 million.
- Following a fair value gain on investment property of €4.8 million recorded in 2020, CBC is not projecting further changes to the value of its main assets in 2021. Meanwhile, net finance costs are expected to remain unchanged at €0.6 million.
- Overall, CBC is forecasting a pre-tax profit of €0.14 million and a marginal net profit of less of than €0.01 million.
- The projected Statement of Financial Position as at 31 December 2021 shows that the company’s gearing ratio (calculated as total debt divided by total debt plus equity) is expected to remain unchanged at 37.0%. However, due to the forecasted decline in EBITDA, the interest cover is expected to weaken to 1.3 times (2020: 1.9 times) whilst the net debt to EBITDA multiple is forecasted to deteriorate to 14.8 times (2020: 7.5 times).