Grand Harbour Marina plc - Updated Financial Analysis Summary
On 13 June 2022, Grand Harbour Marina plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Grand Harbour Marina (“GHM”) in 2022:
- Revenues are expected to drop by 2.8% to €3.52 million as the marginal uplift in berthing income is forecasted to be offset by a decline in ancillary revenues.
- Operating expenses are expected to increase by 5% to €2.05 million largely reflecting the absence of any wage subsidies received from Government. As a result, EBITDA is projected to drop by 12.1% to €1.47 million (2021: €1.68 million).
- Depreciation and amortisation charges are anticipated to amount to €0.44 million while net finance costs are projected to ease by 1% to €0.75 million.
- Meanwhile, GHM is expected to record a loss of €0.22 million from its investment in the Turkish marina ‘IC Cesme’ compared to the share of loss of €0.89 million loss reported in 2021. In this respect, GHM explained that although the performance of ‘IC Cesme’ is anticipated to return to pre-pandemic level, its contribution to GHM remains negatively impacted by the weakness of the Turkish Lira against the euro currency.
- Overall, GHM is forecasting a pre-tax profit of €0.07 million (2021: loss of €0.49 million). After accounting for a tax charge of €0.15 million, the projected net loss for 2022 is expected to amount to €0.08 million compared to a net loss of €0.78 million recorded in 2021.
- In terms of financial position, total assets are expected to ease by 2.4% to €25.7 million largely due to lower levels of cash to €2.20 million (31 December 2021: €2.47 million). On the other hand, total debt is anticipated to remain at €21 million when including €6.2 million in lease liabilities.
- In view of the 31.2% contraction in GHM’s equity base to €1.48 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to deteriorate to 93.4% from 90.7% as at the end of 2021. Moreover, in view of the anticipated contraction in EBITDA, the interest cover is expected to decline to 1.96 times (2021: 2.20 times) whilst the net debt to EBITDA multiple is forecasted to increase to 8.9 times compared to 7.6 times in 2021.