CPHCL Finance plc - Updated Financial Analysis Summary
On 25 June 2021, Corinthia Finance plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the financial results of Corinthia Palace Hotel Company Limited (“CPHCL” – the Guarantor of the bonds) in 2020, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 31 August 2020, as well as the forecasts for the current financial year ending 31 December 2021.
The main highlights of the 2021 financial performance and position of CPHCL are as follows:
- Revenues are expected to increase by 27% to €135.1 million reflecting a rebound in activity following the material slump in business in 2020 due to the pandemic. As a result, EBITDA is forecasted to amount to €8.26 million compared to the negative figure of €8.29 million recorded in 2020.
- Despite the anticipated improvement in performance, the interest cover is expected to remain well below 1 times. Moreover, CPHCL is projecting a net loss of €45.3 million which, however, is much lower than the net loss of €75.7 million recorded in 2020.
- The expected financial position as at 31 December 2021 shows a marginal drop in total assets to €1.71 billion. On the other hand, total liabilities are projected to increase to €0.91 billion largely due to higher level of borrowings amounting to €0.72 billion (31 December 2020: €0.71 billion).
- As a result of the contraction in equity to €0.8 billion coupled with the increase in borrowings, the Group’s gearing ratio (calculated as total debt divided by total debt plus equity) is forecasted to deteriorate to 47.8% compared to 46% as at the end of 2020. Likewise, the debt to asset ratio is projected to climb to 0.42 times which shows that CPHCL has more than twice the amount of assets than borrowings.
Corinthia Finance plc – Financial Analysis Summary dated 25 June 2021.