Hal Mann Vella Group plc - Updated Financial Analysis Summary

On 23 June 2022, Hal Mann Vella Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Hal Mann Vella Group in 2022:

  • Revenues are expected to ease by 3.6% to €24.4 million mostly due to the projected drop in income from property development activities reflecting lower level of property sales compared to 2021. In contrast, revenues from the ‘Manufacturing, Products & Contracting Services’ segment are anticipated to remain virtually unchanged at €19.3 million whilst income from rental activities is anticipated to increase by 21.1% to €2.65 million.
  • EBITDA is anticipated to amount to €5.12 million compared to €6.11 million in 2021.
  • After accounting for depreciation charges of €1.17 million, net finance costs of €2.23 million, and tax charges of €0.57 million, Hal Mann Vella Group is projecting to post a net profit of €1.15 million.
  • In terms of financial position, total assets and liabilities are expected to contract marginally to €122.4 million and €72.8 million respectively. Similarly, the Group’s gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to drop to 52.3% (31 December 2021: 53.9%) whilst the debt-to-asset ratio is forecasted to improve to 0.44 times (31 December 2021: 0.46 times). On the other hand, in view of the expected drop in EBITDA, the net debt-to-EBITDA multiple is anticipated to deteriorate to 10.3 times compared to just under 9 times in 2021, whilst the interest cover is expected to ease to 2.3 times compared to 2.6 times in 2021.