On 14 June 2021, Tum Finance plc (“Tum”) 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 31 August 2020, as well as forecasts for 2021.
The following are the main highlights of the expected financial performance and financial position of Tum Finance plc in 2021:
- Total revenues are expected to increase by 6.2% to €3.4 million reflecting the contractual increases included in the tenants’ respective contracts as the Group’s two main property assets, namely Zentrum Business Centre and Centre Parc Property, remain fully occupied.
- Administrative expenses are expected to decline by 31.2% to €0.6 million due to lower professional fees and more efficient use of resources.
- As a result, EBITDA is projected to improve by 19.6% to €2.8 million.
- Following a fair value gain on investment property of €4.9 million recorded in 2020, Tum is not projecting another revision to the value of its main assets in 2021. Meanwhile, net finance costs are expected to remain unchanged at €0.8 million.
- Overall, Tum is forecasting a pre-tax profit of €2.1 million and a net profit of €1.6 million.
- The FAS explains that subject to planning permits, Tum is in the process of developing ‘Phase 2’ of the Centre Parc Retail Hub which will consist of an extension of the built-up footprint and an additional three floors leading to the creation of 6,530 sqm of new leasable space. The project is expected to take two years to complete and will cost around €6.5 million which will be sourced through bank loans and internally generated funds.
- In view of the anticipated new bank borrowings, total debt is forecasted to increase by 11.2% to €24.2 million. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to increase to 39.3% from 37.7% as at the end of 2020. However, due to the higher EBITDA, the interest cover is expected to strengthen to 3.8 times (2020: 2.9 times) whilst the net debt to EBITDA multiple is forecasted to improve to 8.4 times (2020: 9.1 times).