United Finance plc - Updated Financial Analysis Summary

On 22 June 2021, United Finance plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the financial results of United Group Limited in 2020, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 24 August 2020, as well as the forecasts for the current financial year ending 31 December 2021.

The following are the main highlights of the expected financial performance and financial position of United Group Limited in 2021:

  • Revenues are anticipated to drop by 17.7% to €5.8 million as the projected growth in the ‘Automotive’ and ‘Rental Income’ segments will not be enough to outweigh the contraction in business in the ‘Fashion Retail’ segment following the closure of the Debenhams franchise operations in June 2021.
  • EBITDA is expected to decline to €0.69 million compared to €0.75 million in 2020. Moreover, United Group is forecasting a net loss of €0.69 million compared to the net loss of €1.27 million recorded in 2020.
  • Total borrowings are expected to decrease by 15.4% to €18.8 million reflecting the termination of the lease contracts relating to the ‘Fashion Retail’ segment. As a result, the Group’s gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to drop to 74.2% compared to 76.9% as at the end of 2020. Similarly, the net debt to EBITDA multiple and the interest cover are forecasted to improve to 26.5 times and 0.72 times respectively.

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United Finance plc – Financial Analysis Summary dated 22 June 2021.

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