Tumas Investments plc - Updated Financial Analysis Summary

On 30 June 2022, Tumas Investments plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Spinola Development Company Limited (the guarantor of the bonds) in 2022:

• Revenues are expected to increase by nearly 30% to €43.9 million largely on the back of the further recovery in hotel operations to €33.6 million compared to €22.4 million in 2021 and €41.6 million in 2019 prior to the outbreak of the pandemic.
• EDITDA is projected to climb by 18.9% to €15.7 million compared to €13.2 million in the 2021 financial year.
• After accounting for depreciation charges of €5.52 million, net finance costs of €2.43 million, and a tax charge of €2.5 million, Spinola Development is projecting a net profit of €5.29 million which is 35.2% higher than the €3.91 million figure reported in 2021.
• In terms of financial position, total assets and total liabilities are expected to increase to €236.1 million (+1.7%) and €96.8 million (+4.2%) respectively. As total debt is projected to increase by 6.7% to €56.7 million, the gearing ratio is anticipated to deteriorate slightly to just under 29% from 27.6% as at the end of 2021. On the other hand, the debt-to-asset ratio is forecasted to remain virtually unchanged at 0.24 times whilst the net debt-to-EBITDA multiple and the interest cover are expected to improve notably to 1.82 times (2021: 2.59 times) and 6.48 times (2021: 5.26 times) respectively.