Stivala Group Finance plc - Updated Financial Analysis Summary

On 27 June 2022, Stivala Group Finance 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 over 80% to €27.6 million (2021: €15.1 million) reflecting the further recovery in the hospitality segment (+37% to almost €12 million), the growth in rental operations (+39% to €8.6 million), as well as the proceeds from the sale of a number of properties amounting to €5.6 million.
• In view of the growth in business, EBITDA is expected to climb to €18.9 million (2021: €10.4 million) which is also superior to the EBITDA figure of €14.1 million recorded in 2019 prior to the outbreak of the pandemic.
• After accounting for depreciation and amortisation charges of €2.93 million, net finance costs of €3.33 million, and a tax charge of €2.33 million, Stivala Group is projecting a net profit of €10.3 million.
• In terms of financial position, total assets are forecasted to increase by 2.1% to €370.7 million whilst total liabilities are expected to contract by 3.6% to €123 million reflecting lower levels of trade and other payables. Total borrowings are projected to remain virtually unchanged at €85.4 million. However, in view of the further expansion in the company’s equity base to €247.7 million, the gearing ratio is expected to ease to 25.7% compared to 26.7% as at the end of 2021. Likewise, the net debt-to-EBITDA multiple and the interest cover are forecasted to improve to 4.37 times (2021: 8.19 times) and 5.68 times (2021: 3.25 times) respectively.