On 6 May 2022, Best Deal Properties Holding plc published an updated Financial Analysis Summary (“FAS”). The following are the main highlights of the expected financial performance and position of Best Deal Properties in 2022:
- Revenues are anticipated to amount to €18.8 million (2021: €20.1 million) reflecting the sale of units forming part of the Mellieħa and Zabbar development projects. In this respect, Best Deal Properties noted that it has in place promise of sale agreements for the vast majority of the revenues being projected.
- In view of the lower level of property sales, EBITDA is expected to drop to €3.6 million (2021: €3.9 million) whilst the company is forecasting a net profit of €2.4 million (2021: €2.8 million).
- The forecasted Statement of Financial Position as at 31 December 2022 shows that total borrowings are expected to contract sharply to €11.1 million (31 December 2021: €15.2 million) largely reflecting the reduction in the amount of outstanding bonds following buybacks from the secondary market. Moreover, net debt is anticipated to drop to just €3.1 million.
- Coupled with the increase in the equity base to €9.1 million, the net debt to equity multiple is expected to improve to 0.34 times compared to 1.7 times as at the end of 2021. Likewise, the gearing ratio is anticipated to drop to 55% from 68.7% in 2021, whilst the debt to asset ratio is forecasted to ease to 0.53 times from 0.62 times in 2021.