Central Business Centres plc - Updated Financial Analysis Summary

On 8 June 2022, Central Business Centres plc (“CBC”) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of CBC in 2022:

  • Total revenues are estimated to increase by 20% to €1.79 million largely reflecting the full-year contribution from the Savoy Shopping Complex in Valletta which was acquired towards the end of 2021.
  • In line with the improvement in revenues and in view of the very low operating costs of CBC, EBITDA is expected to surge by 21% to €1.62 million from €1.34 million in 2021.
  • Depreciation charges are expected to remain negligible but net finance costs are projected to nearly double to €1.30 million (2021: €0.71 million) following the issuance of a €21 million bond last year to finance the acquisition of the Valletta property.
  • The financial performance of CBC is also expected to be impacted from the absence of any fair value movement of investment property, in contrast to the uplift of €4.7 million recognised last year.
  • Overall, CBC is forecasting a net profit of €0.05 million compared to a net profit of €3.4 million in 2021.
  • In terms of financial position, the Group’s total assets are expected to remain virtually unchanged at €58.3 million. Similarly, CBC’s equity position is forecasted at similar levels of last year at €23.7 million. Meanwhile, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to ease minimally to 55.5% from 55.6% in 2021.
  • Despite the strong growth in EBITDA, the interest cover is expected to deteriorate to 1.25 times from 1.88 times in 2021, but net debt to EBITDA multiple is forecasted to improve to 17.7 times compared to 21.3 in 2021.