On 26 May 2021, Mariner Finance plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s financial results in 2020, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 27 May 2020, as well as the forecasts for 2021.
The following are the main highlights of the expected financial performance and financial position of Mariner Finance plc in 2021:
- Total revenues are expected to drop by 1.3% to €16.2 million reflecting a marginal contraction in container activity to €15.8 million whilst income from the lease of the company’s commercial property located in Riga is anticipated to decrease by 25% to €0.45 million reflecting the impact of the pandemic. Nonetheless, Mariner noted that the occupancy level of its investment property remained unaffected at about 96%.
- Net operating expenses are expected to remain virtually unchanged at €6 million. As a result, EBITDA is expected to decline by 3% to €7.74 million compared to €8.12 million in 2020.
- Depreciation and amortisation charges are estimated to increase by 11.1% to €2.29 million reflecting the investments carried out in recent years. On the other hand, net finance costs are projected to drop by 12.3% to €1.91 million as total borrowings are projected to drop by 1.2% to €46.7 million compared to €47.3 million as at the end of 2020.
- Overall, Mariner is forecasting a pre-tax profit of €5 million which is in line with the pre-tax profit recorded in 2020. After accounting for a tax charge of €0.26 million, the projected net profit for 2021 is expected to amount to €3.21 million (2020: €3.20 million).
- Given the slight reduction in debt and the further increase in the company’s equity position, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to improve to 46.6% from 48.5% in 2020. Similarly, the interest cover is expected to improve to 4.01 times (2020: 3.34 times). On the other hand, net debt to EBITDA multiple is forecasted to deteriorate to 6.03 times compared to 5.89 in 2020.