GAP Group plc - Updated Financial Analysis Summary

On 18 May 2021, GAP Group 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 GAP Group plc in 2021:

  • Revenues are expected to more than double from €23.8 million in 2020 to €52.3 million. Approximately 85% of total revenue is projected to be generated from the sale of units of the Luqa Development and the Mellieha Development. With respect to the Luqa Development, out of 21 blocks, 15 blocks have successfully been completed whilst the remaining 6 blocks are expected to be completed by Q4 2021. Furthermore, with respect to the Mellieha Development, the remaining 12 residential units available for sale (out of a total of 157 residential units) are expected to be sold during 2021. Meanwhile, the remaining 15% of the Group’s revenues are projected to be derived from other projects, primarily the Marsascala Development.
  • Total operating costs are expected to increase by €20.9 million to €35.6 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 surge by 83.9% to €16.6 million whilst the EBITDA margin is projected to contract to 31.7% compared to 37.9% in 2020.
  • The Group is also expecting to incur higher net finance costs which are forecasted to rise to €5.9 million compared to €3.4 million in 2020.
  • Overall, GAP Group plc is forecasting to report a 98% increase in net profit to €8.1 million (2020: €4.1 million) which should also lead the Group’s equity base to expand to €23.3 million compared to €15.1 million as at the end of 2020.
  • The forecasted Statement of Financial Position as at 31 December 2021 also show that the Group’s sinking fund is anticipated to increase considerably to €45.9 million (31 December 2020: €11.9 million) as GAP continues to add to the cash reserves required for the redemption of its outstanding bonds.
  • In view of the anticipated increase in turnover and liquidity position of the Group, net debt is projected to drop significantly to €20.6 million from €51.2 million as at the end of 2020. Coupled with the increase in the equity base of the Group, the net debt to equity multiple is expected to improve to 0.9 times compared to 3.4 times as at the end of 2020. Likewise, the gearing ratio is anticipated to drop to 76.8% from 83.9% in 2020.

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GAP Group plc – Financial Analysis Summary dated 18 May 2021.

 

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