AX Real Estate plc - Updated Financial Analysis Summary

On 23 May 2022, AX Real Estate plc (“AXRE”) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of AXRE for the financial year ending 31 October 2022:

• Revenues are expected to amount to €8.68 million which is 2.5% higher than the €8.46 million figure as forecasted at the time of the IPO.
• Total operating costs are expected to reach €1.27 million. Excluding depreciation charges, EBITDA is projected to amount to €7.55 million which is marginally higher than the target of €7.49 million as indicated at the time of the IPO. The EBITDA forecast of €7.55 million translates into an interest cover of 2.36 times which is superior to the projected ratio of 1.7 times at the time of the IPO.
• Overall, AXRE is forecasting a net profit of €2.82 million compared to the €2.25 million figure as projected at the time of the IPO.
• The forecasted Statement of Financial Position as at 31 October 2022 shows that total borrowings are expected to contract sharply to €125 million from €137.4 million as at 31 October 2021. Nonetheless, this is almost 8% higher than the €115.9 million figure as anticipated at the time of the IPO.
• In view of the reduction in debt and the increase in equity, the gearing ratio is anticipated to drop to 47.5% from 63.6% in October 2021. Similarly, the debt to asset ratio is forecasted to ease to 0.44 times from 0.58 times as at the end of October 2021.
• AXRE maintained its forecast for the payment of a net dividend of €0.0246 per share for FY2021/22. This is in line with the company’s dividend policy and translates into a yield 4.1% based on the IPO offer price of €0.60 per share.

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AX Real Estate plc – Financial Analysis Summary dated 23 May 2022.