SD Finance plc - Updated Financial Analysis Summary

On 26 September 2022, SD Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of SD Holdings Ltd (the Guarantor) for the financial year ending 31 March 2023:

• Revenues are expected to surge by 53.6% to a record of €62 million (FY2021/22: €40.4 million) reflecting the improved performance across all business segments as well as the addition of new food and beverage outlets.
• EBITDA is anticipated to increase by 22.6% to €24.5 million compared to €20 million in the 2020/21 financial year. However, the forecasted figure is still 4.6% lower than the record EBITDA of €25.7 million achieved in FY2019/20.
• The financial performance of the Guarantor is also expected to be boosted by the share of results of associate companies, which is projected to remain at €4.5 million reflecting the contribution from Malta Healthcare Caterers Limited.
• Overall, SD Holdings is forecasting a net profit of €12.4 million compared to €10.6 million in the 2021/22 financial year.
• In terms of financial position, total assets are expected to increase by 7.9% to €377.7 million largely reflecting higher trade and other receivables, cash balances (+€12.3 million to €52.5 million) and the value of associates. Meanwhile, total liabilities are projected to climb by 7.4% to €223.2 million.
• In view of the projected 14.5% increase in total debt to €106.9 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase marginally to 40.9% despite the uplift in the company’s equity base to €154.5 million (+8.7%). Meanwhile, given the growth in EBITDA, the net debt-to-EBITDA multiple and the interest cover are projected to improve to 2.22 times (FY2021/22: 2.66 times) and 5.32 times (FY2021/22: 4.60 times) respectively.