CPHCL Finance plc - Updated Financial Analysis Summary

On 30 June 2022, Corinthia Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of CPHCL Company Limited (the guarantor of the bonds) in 2022:

• Revenues are expected to increase markedly to €249.3 million which would be 20.3% short of the income of €312.9 million generated in 2019 prior to the outbreak of the pandemic.
• In view of the much higher level of business, EDITDA is projected to climb to €38.2 million compared to €23.9 million in 2021 and €70.7 million in 2019. After accounting for depreciation and amortisation charges of €32.6 million, CPHCL is expecting to post an operating profit of €5.63 million compared to the operating losses recorded in the prior two years which, in aggregate, amounted to €72.3 million.
• Overall, CPHCL is anticipating a net loss of €6.39 million which, however, reflects a marked improvement over the sharper losses incurred in 2020 and 2021.
• In terms of financial position, total assets and total liabilities are expected to remain virtually unchanged at €1.87 billion and €0.96 billion respectively. As total debt is projected to decrease by 0.9% to €0.76 billion, the gearing ratio and the debt-to-asset ratio are anticipated to improve to 45.4% and 0.4 times respectively. Moreover, in view of the expected rebound in EBITDA, the net debt-to-EBITDA multiple is anticipated to drop to 18 times (2021: 26 times) whilst the interest cover is projected to climb to 1.25 times compared to 0.83 times in the 2021 financial year.