Hudson Malta plc - Updated Financial Analysis Summary

On 28 June 2021, Hudson Malta plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the 2020 financial results, a comparison of the 2020 actual results with the forecasts as published in the previous FAS dated 28 August 2020, as well as the forecasts for the current financial year ending 31 December 2021. The projections do not take into consideration the proposed acquisition of Trilogy Limited.

The main highlights of the forecasted financial performance and position for 2021 are as follows:

  • Revenues are expected to increase by 24.6% to €37.5 million as the Group is anticipating improved business in its two operating segments, namely: ‘Retail’ (+25.1%) and ‘Wholesale and Other Income’ (+23.3%).
  • EBITDA is anticipated to amount to €3.9 million compared to just under €3.0 million recorded in 2020. Moreover, the EBITDA margin is expected to remain unchanged at 10%.
  • Depreciation charges are expected to remain at the same levels as the previous year at €3.3 million, while net finance costs are projected to ease by 12.1% to €0.83 million. Given the surge in EBITDA and the drop in net finance costs, the interest cover is expected to improve to 4.7 times compared to 3.2 times in 2020.
  • Despite the improved performance, Hudson Malta is still expecting to post a net loss of €0.26 million which, however, is lower than the loss after tax of €0.88 million recorded in 2020.
  • With respect to the expected financial position as at 31 December 2021, total assets are forecasted to decline by 0.5% to €43.2 million. Similarly, total equity is anticipated to contract by 4.7% to €5.3 million. Furthermore, total debt is anticipated to ease by 3.8% to €27.5 million when including €13.8 million in lease liabilities.
  • The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to remain virtually unchanged at 83.9%. Meanwhile, the net debt to EBITDA multiple is forecasted improve to 5.9 times compared to 8.3 times in 2020.

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Hudson Malta plc – Financial Analysis Summary dated 28 June 2021.

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