On 22 September 2021, SD Finance plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s and the guarantor’s (namely SD Holdings Ltd) financial results in 2020/21, a comparison of the 2020/21 actual results with the forecasts published in the previous FAS dated 28 September 2020, as well as the forecasts for the current financial year ending 31 March 2022.
The following are the main highlights of the expected financial performance and financial position of SD Holdings Ltd in 2021/22:
- Revenues are expected to more than double to €36.0 million (FY2020/21: €17.3 million) amid a gradual recovery in the hospitality sector and improved performance in food and beverage outlets.
- EBITDA is anticipated to reach €11.7 million compared to just €3.4 million in the 2020/21 financial year. However, the forecasted figure is still 54% lower than the record EBITDA of €25.7 million achieved in FY2019/20.
- The financial performance of the Guarantor is expected to be boosted by the share of results of associate companies projected at €4.2 million (FY2020/21: €2.2 million), largely reflecting the higher contribution from Malta Healthcare Caterers Limited.
- Overall, SD Holdings is forecasting a net profit of €1.8 million compared to the net loss of €2.1 million in the 2020/21 financial year.
- Cash balances are anticipated to increase by 9.3% to €34.8 million whilst total debt is expected to increase by 9.0% to €97.0 million (when including lease liabilities amounting to €12.8 million).
- The gearing ratio (calculated as total debt divided by total debt plus equity) is forecasted to increase to 42.1% (31 March 2021: 40.4%). Meanwhile, in view of the surge in EBITDA, the interest cover is expected to improve markedly to 2.9 times compared to 0.69 times in 2020/21. Similarly, the net debt to EBITDA is anticipated to ease to 5.3 times compared to 16.6 times in FY2020/21.