Mediterranean Investments Holding plc - Updated Financial Analysis Summary

On 25 June 2021, Mediterranean Investments Holding plc (“MHI”) 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 1 July 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 drop by 6.5% to just under €24 million reflecting the negative impact of the devaluation of the Libyan Dinar at the start of 2021 despite the stable occupancy level of 53% at Palm City.
  • EBITDA is anticipated to contract by 7.2% to €16.6 million compared to €17.9 million in 2020. Moreover, the financial performance of MIH will also be dented by a substantial one-time loss on exchange arising in connection with the conversion of monetary assets and liabilities denominated in Libyan Dinars to Euro. As a result, the interest cover is expected to drop to 2.25 times compared to 3.96 times in 2020.
  • Notwithstanding the negative impact from the devaluation of the Libyan Dinar, coupled with the higher effective tax charge to be incurred in 2021, MIH is still expected to post a net profit of €6.58 million.
  • With respect to the expected financial position as at 31 December 2021, bank borrowings and bonds are anticipated to drop by 12.7% to €80.9 million following the redemption of the €12 million 6% unsecured bonds on 22 June 2021. Nonetheless, given the contraction in EBITDA, coupled with the forecasted decline in cash reserves to €9.25 million (31 December 2020: €25.7 million), the net debt to EBITDA multiple is anticipated to deteriorate to 4.3 times compared to 3.73 times in 2020. On the other hand, MIH’s gearing ratio (calculated as total debt divided by total debt plus equity) is expected to improve to 30.1% from 33.8% as at end 2020.

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Mediterranean Investments Holding plc – Financial Analysis Summary dated 25 June 2021.

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