Hili Properties plc - Updated Financial Analysis Summary

On 28 June 2022, Hili Properties plc published an updated Financial Analysis Summary. The following are the main highlights of the company’s expected financial performance and position in 2022:

• Revenues are expected to surge by 42.2% to a record of €12 million reflecting the further expansion in the company’s investment property portfolio to nearly €222 million compared to €161 million as at the end of 2021 (when including properties which, at the time, where either subject to being acquired or earmarked for sale).
• In view of the strong growth in revenues, EBITDA is anticipated to increase by 57.6% to €7.73 million (2021: €4.91 million).
• After accounting for depreciation and amortisation charges of €0.06 million, finance costs of €3.5 million (net of investment income of €0.7 million), and a tax charge of €1.59 million, Hili Properties is projecting a net profit of €2.59 million.
• In terms of financial position, total assets and total liabilities are expected to increase to €240.1 million and €129.1 million respectively. In view of the projected increase in total debt to €119.1 million (31 December 2021: 89.2 million), the gearing ratio is anticipated to climb to 51.8% compared to 44.6% as at the end of 2021. Similarly, the debt-to-asset ratio and the net debt-to-EBITDA multiple are forecasted to deteriorate to 0.5 times (2021: 0.43 times) and 13.7 times (2021: 10.6 times) respectively. On the other hand, given the expected improvement in performance, the interest cover is anticipated to increase to 1.84 times compared to 1.52 times in the 2021 financial year.