International Hotel Investments plc - Updated Financial Analysis Summary

On 25 June 2021, International Hotel Investments plc (“IHI”) published an updated Financial Analysis Summary (“FAS”) providing an overview of the financial results 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 main highlights of the 2021 financial performance and position are as follows:

• Revenues are expected to increase by 27.1% to €116.8 million reflecting a rebound in activity following the material slump in business in 2020 due to the pandemic. As a result, EBITDA is forecasted to amount to €11 million compared to the negative figure of €3.75 million recorded in 2020.
• Despite the anticipated improvement in performance, the interest cover is expected to remain well below 1 times. Moreover, IHI is projecting a net loss of €37.1 million which, however, is much lower than the net loss of €75.6 million recorded in 2020.
• The expected financial position as at 31 December 2021 shows a marginal increase in total assets to €1.57 billion. Moreover, total liabilities are projected to increase to €0.82 billion largely due to higher level of borrowings amounting to €0.65 billion (31 December 2020: €0.61 billion).
• As a result of the contraction in equity to €0.75 billion coupled with the increase in borrowings, the Group’s gearing ratio (calculated as total debt divided by total debt plus equity) is forecasted to deteriorate to 46.5% compared to 44% as at the end of 2020. Likewise, the debt to asset ratio is projected to climb to 0.42 times (31 December 2020: 0.39 times) which shows that IHI has more than twice the amount of assets than borrowings.

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International Hotel Investments plc – Financial Analysis Summary dated 25 June 2021.