Pendergardens Developments plc - Updated Financial Analysis Summary

On 11 June 2021, Pendergardens Developments 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 5 June 2020, as well as the forecasts for 2021.

The following are the main highlights of the expected financial performance and financial position of Pendergardens Developments plc in 2021:

  • Revenues are expected to amount to €8.7 million (2020: €12.8 million). In terms of sales, 2 residential units have been sold in January 2021 and the Directors of the company have assumed that a further 5 residential units, which are presently subject to promise of sale agreements, will be converted to sales. As a result, the remaining stock of residential units as at 31 December 2021 is projected to comprise of 3 apartments and 1 penthouse. Furthermore, management expects to complete the sale of a number of car spaces to Valyou Supermarket. In fact, revenue projections also include €1.5 million in rental income and car park revenues.
  • Total operating costs are expected to decrease by €2.9 million to €6.3 million, largely reflecting lower recognition of development costs pertaining to the aforementioned sale of properties.
  • Given the decline in revenues, EBITDA is expected to decrease by €1.1 million to €2.5 million whilst the EBITDA margin is forecasted to improve marginally to 28.3% compared to 28.1% in 2020.
  • The Group is projecting net finance costs to ease by €0.4 million to €1.6 million.
  • Overall, after accounting for a tax charge of €0.4 million (2020:€ 0.1 million), the Group is expecting to generate a net profit of €0.2 million (2020: €1.1 million).
  • The forecasted Statement of Financial Position as at 31 December 2021 also show that the projected revenues of €8.7 million will enable the Group to increase its reserve fund by year end to €10.6 million (31 December 2020: €5.0 million). Moreover, net debt is projected to drop to €10.4 million from €11.9 million as at the end of 2020. Coupled with a slight increase in the equity base of the Group to €29.7 million from €29.5 million as at the end of 2020, the net debt to equity multiple is expected to improve to 0.35 times compared to 0.40 times as at the end of 2020. Likewise, the gearing ratio (calculated as total debt divided by total debt and equity) is projected to decline marginally to 42.2% from 42.4% in 2020.

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Pendergardens Developments plc – Financial Analysis Summary dated 11 June 2021.

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