On 29 June 2021, Von der Heyden Group Finance plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the financial results of Timan Investments Holdings Ltd (the Guarantor of the bonds) in 2020, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 28 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 position of Timan Investments Holdings Ltd in 2021:
- Revenues are anticipated to drop by more than half to €11.5 million (2020: €23.5 million) mainly due to the significant reduction in revenue from the real estate development segment of the Group to €1.0 million (2020: €12.4 million). On the other hand, revenues from the accommodation segment and catering segment are envisaged to increase by 3.1% and 5.2% to €8.6 million and €1.9 million respectively.
- Operating expenses are expected to be 39% lower reflecting the sale of Hotel Cugó Gran Menorca at the end of 2020 as well as the cessation of operations of IBB Passau City Centre and IBB Salamanca hotels. Despite the decline in revenues, EBITDA is still projected to increase to €3.1 million compared to €2.1 million in the 2020 financial year.
- Depreciation and amortisation charges are expected to ease by 4.5% to €4.6 million whilst net finance costs are forecasted to drop by 17.4% to €2.6 million.
- Following a fair value gain on investment property of €2.3 million recorded in 2020, the Group is not projecting another revision to the value of its main assets in 2021.
- After accounting for a minimal tax credit, Timan Investments Holdings Ltd is forecasting a loss after tax of €3.0 million (2020: loss of €1.7 million).
- As at the end of the 2021 financial year, total debt is expected to increase by 6.1% to €89.6 million when including lease liabilities amounting to €36.9 million. Similarly, net debt is anticipated to climb to €62.4 million compared to €56.6 million as at the end of 31 December 2020.
- In terms of credit metrics, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to rise to 70.1% (2020: 67.3%) whilst the net debt to EBITDA multiple is forecasted to improve to 19.8 times (2020: 27.2 times). Similarly, the interest cover is also expected to improve to 1.2 times from 0.7 times in 2020.