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.