On 30 June 2022, International Hotel Investments plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of IHI in 2022:
- Revenues are expected to increase markedly to €217 million which would be 19.1% short of the income of €268.3 million generated in 2019 prior to the outbreak of the pandemic.
- In view of the much higher level of business, EDITDA is projected to climb to €38.9 million compared to €26.5 million in 2021 and €69.8 million in 2019. After accounting for depreciation and amortisation charges of €29.9 million, IHI is expecting to post an operating profit of €9.07 million compared to the operating losses recorded in the prior two years which, in aggregate, amounted to €66 million.
- Overall, IHI is anticipating a net loss of €3.78 million which, however, reflects a marked improvement over the sharper losses incurred in 2020 (-€75.6 million) and 2021 (-30.3 million).
- In terms of financial position, total assets and total liabilities are expected to increase marginally to €1.72 billion and €0.87 billion respectively. The gearing ratio and the debt-to-asset ratio are anticipated to remain virtually unchanged at 44.4% and 0.4 times respectively. On the other hand, in view of the expected rebound in EBITDA, the net debt-to-EBITDA multiple is anticipated to drop to 16.2 times (2021: 21.6 times) whilst the interest cover is projected to climb to 1.46 times compared to 1.06 times in the 2021 financial year.