IZI Finance plc - Updated Financial Analysis Summary

On 28 December 2022, IZI Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of IZI Finance plc for the current financial year ending 30 June 2023:

  • Revenue is expected to rise to €77.6 million (2021/22: €30.5 million) largely reflecting the commencement of the operation of the National Lottery as from 5 July 2022. The forecasted revenue is however expected to be 5.5% lower than the projected figure of €81.9 million at the time of the bond issue in March 2022 due to the slower-than-expected implementation of the distribution plan and technology supply chain challenges within the National Lottery.
  • IZI Finance is expecting EBITDA of €17.8 million, compared to the previous projected figure of €21.7 million amid a notable increase in staff costs, primarily as a result of the Group operating more own shops within the network of the National Lottery.
  • Net finance costs are forecasted at €4.6 million which translate to an interest cover of 3.83 times.
  • Overall, IZI Finance is forecasting a net loss of €0.32 million, compared to earlier projections of a profit of €1.65 million.
  • In terms of financial position, IZI Finance is expecting its total assets to amount to  €284.7 million as at 30 June 2023, largely composed of intangible assets (€130.6 million), goodwill (€62.4 million) and right-of-use assets (€46.6 million). Meanwhile, total debt is forecasted at €107.5 million, which include €29.5 million in lease liabilities. This translates into a gearing ratio of 55.7%. After accounting for the expected cash of €22.8 million, IZI Finance is anticipating a net debt of €84.7 million, which translates into a net debt-to-EBITDA multiple of 4.76 times.