On 25 June 2021, Hili Properties 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 main highlights of the forecasted financial performance for 2021 are as follows:
- Revenues are expected to remain unchanged at €8.1 million. However, EBITDA is anticipated to drop by 6.2% to €4.8 million reflecting the time lag between property disposals and acquisitions, as well as a marginal increase in costs related to property maintenance. As a result, the interest cover is expected to ease minimally to 1.4 times (compared to 1.5 times in 2020) as net finance costs are forecasted to be marginally higher at €3.5 million (2020: €3.3 million).
- Overall, Hili Properties is expected to post a profit after tax of €1.5 million, which is considerably lower than the profit after tax of €4.1 million recorded in 2020.
- With respect to the expected financial position as at 31 December 2021, total assets are projected to increase by 5.1% to €157.3 million (2020: €149.6 million) despite the sale of property valued at €7.74 million as at the end of 2020.
- The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 57.8% compared to 56.0% as at 31 December 2020. Similarly, the Group’s debt to asset ratio is forecasted to increase to 0.56 times compared to 0.53 times as at the end of 2020.