Hili Finance Company plc - Updated Financial Analysis Summary

On 28 June 2022, Hili Finance Company plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Hili Ventures Limited (the guarantor of the bonds) in 2022:

• Revenues are expected to surge by 24.2% to a record of €732.4 million reflecting strong growth across all business lines including the operations of Premier Capital plc, 1923 Investments plc, and Hili Properties plc.
• EBITDA is forecasted at €93.3 million, representing an uplift of almost 10% over the EBITDA of €85.1 million recorded in the 2021 financial year.
• After accounting for depreciation and amortisation charges of €33.6 million, finance costs of €20.4 million (net of investment income of €0.4 million), and a tax charge of €7.5 million, Hili Ventures is projecting a net profit of €31.8 million.
• In terms of financial position, total assets and total liabilities are expected to increase by around 12% to €819.5 million and €641.7 million respectively. Despite the projected increase in total debt to €543.6 million, the gearing ratio and the interest cover are anticipated to remain virtually unchanged at 75.4% and 4.5 times respectively. On the other hand, given the expected sharper increase in net debt than the uplift in EBITDA, the net debt-to-EBITDA multiple is projected to deteriorate to 5.1 times compared to 4.61 times in the 2021 financial year.