Exalco Finance plc - Updated Financial Analysis Summary

On 10 June 2022, Exalco Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Exalco Properties Limited (“the Guarantor” or “Exalco”) in 2022:

• Total revenues are estimated to increase by 3% to €4.47 million reflecting the upward yearly adjustments in rental rates as all properties are expected to remain fully occupied.
• EBITDA is expected to increase by 1.2% to €3.99 million while the EBITDA margin is anticipated to ease to 89.3% from 90.9% in 2021.
• Net finance costs are projected to drop to €0.82 million compared to €0.92 million in 2021, reflecting lower amounts of interest due following a reduction in bank loans during 2021.
• Overall, Exalco is forecasting a 5% increase in net profit to €2.18 million (2021: €2.07 million).
• In terms of financial position, total assets are expected to increase by 2% to €69.2 million largely due to higher levels of cash to €4.55 million (31 December 2021: €3.36 million). On the other hand, total debt is anticipated to ease by 1% to €17.1 million. Coupled with the further increase of 4.2% in equity to €43.7 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to improve slightly to 28.1% from 29.6% as at the end of 2021.
• In line with the improvement in EBITDA and the projected reduction in debt, the interest cover is expected to strengthen to 4.88 times from 4.31 times in 2021. Likewise, the net debt to EBITDA multiple is forecasted to improve to 3.14 times compared to 3.60 in 2021.