On 1 June 2021, Grand Harbour Marina plc (“GHM”) 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 14 August 2020, as well as forecasts for 2021.
The following are the main highlights of the expected financial performance and financial position of Grand Harbour Marina plc in 2021:
- Total revenues are expected to drop by 6.4% to €3.8 million on the back of a 7.5% decline in berthing income to €2.9 million in view of discounts granted on annual contracts and an expected lower demand for seasonal contracts. Similarly, ancillary revenue is expected to retract by 3% to €0.95 million.
- Operating expenses are expected to increase by 13.1% to €2.3 million given that GHM is not anticipating further wage subsidies from the Government of Malta and other costs may increase in line with some higher level of activity at the marina in Malta.
- As a result, EBITDA is projected to slump by 25.9% to €1.52 million (2020: €2.05 million).
- Depreciation and amortisation charges are anticipated to increase by 11.9% to €0.43 million, while net finance costs are expected to ease by 10.3% to €0.77 million reflecting an improvement in finance income from additional loans granted to related parties in Q3 2020.
- The contribution from GHM’s 45% equity stake in the Turkish marina ‘IC Cesme’ is expected to result in a loss of €0.71 million which, in turn, is an improvement over the €0.86 million loss reported in 2020. The group explained that political and economic uncertainties within the region are continuing to leave an impact on the overall results of ‘IC Cesme’, particularly the reduction in value of the Turkish Lira against the euro currency.
- Overall, Grand Harbour Marina plc is forecasting a pre-tax loss of €0.39 million (2020: loss of €0.06 million). After accounting for a tax charge of €0.2 million, the projected net loss for 2021 is expected to be of €0.59 million (2020: net loss of €0.39 million).
- Overall, the total cash balance of GHM is expected to decrease by 41.6% to €0.89 million.
- Given the further expected reduction in equity as a result of the projected loss, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to deteriorate to 91.1% from 89.1% as at the end of 2020. Moreover, in view of the anticipated contraction in EBITDA, the interest cover is expected to decline to 2 times (2020: 2.4 times) whilst the net debt to EBITDA multiple is forecasted to advance to 9.1 times (2020: 6.4 times).