On 21 June 2021, Exalco Finance plc (“Exalco”) published an updated Financial Analysis Summary (“FAS”) providing an overview of the Guarantor’s financial results in 2020, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 31 July 2020, as well as forecasts for 2021.
The following are the main highlights of the expected financial performance and financial position of Exalco Properties Limited in 2021:
- Revenues are expected to improve marginally to €4.3 million (2020: €4.2 million) reflecting the additional income from the Phoenix Business Centre after the last remaining available space was leased out in September 2020. Furthermore, the improved revenue figure also includes the contractual annual increments as the Group’s investment property remains almost fully occupied whilst the tenant mix has remained broadly unchanged.
- EBITDA is expected to increase to €3.9 million (2020: €3.8 million) which translates into an EBITDA margin of 90%. Meanwhile, depreciation and net finance costs are expected to remain unchanged at €0.3 million and €0.9 million respectively.
- After accounting for a tax charge of €0.6 million (2020: €0.6 million), the Group is forecasting a 5.3% increase in net profit to just over €2 million (2020: €1.9 million).
- The forecasted Statement of Financial Position as at 31 December 2021 shows a 1.7% uplift in total assets to €70.3 million mainly due to an increase in cash balances to €5.6 million (31 December 2020: €4.1 million). On the other hand, total liabilities are expected to ease by 2.3% to €28.5 million (31 December 2020: €29.1 million) as the Group’s non-current borrowings are projected to decrease by just under 15% to €4.7 million. Coupled with the further increase of 4.6% in equity to €41.8 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to improve slightly to 33.5% from 34.3% as at the end of 2020. Furthermore, the interest cover is expected to strengthen to 3.9 times (2020: 3.7 times) whilst the net debt to EBITDA multiple is anticipated to fall to 3.7 times (2020: 4.5 times). Similarly, the debt to asset ratio is also expected to marginally improve to 0.29 times from 0.30 times in 2020.