On 28 June 2021, Hili Finance Company plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the financial results of Hili Ventures Limited (the Guarantor of the bonds) in 2020, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 31 August 2020, as well as the forecasts for the current financial year ending 31 December 2021.
The following are the main highlights of the expected financial performance and position of Hili Ventures Limited in 2021:
- Revenues are anticipated to grow by 17.7% to a record of €568.9 million, largely reflecting the forecasted improved performance of Premier Capital plc and 1923 Investments plc which will offset the decline in turnover by Motherwell Bridge.
- Operating expenses are expected to rise in line with the increase in business activity as they are forecasted to climb by 18.0% to €490.6 million. As a result, EBITDA is projected to advance by nearly 16% to €78.4 million compared to €67.6 million in the 2020 financial year.
- Depreciation and amortisation charges are expected to increase by 2.8% to €30.8 million whilst net finance costs are forecasted to remain virtually unchanged at €19.5 million.
- After accounting for a tax charge of €6.9 million (2020: €3.8 million), Hili Ventures is forecasting a net profit of €21.9 million (2020: €15.2 million).
- As at the end of the 2021 financial year, Hili Ventures’ net debt is anticipated to rise to €397.6 million compared to €389.8 million as at 31 December 2020.
- In terms of credit metrics, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to remain virtually unchanged at 80.3% (31 December 2020: 80.4%), whilst the net debt to EBITDA multiple is forecasted to strengthen to 5.1 times (compared to 5.8 times for the 2020 financial year). Similarly, the interest cover is also expected to improve to 4.0 times from 3.5 times in 2020.