On 17 June 2022, Tum Finance plc (“Tum”) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Tum in 2022:
- Revenues are expected to increase by 3.7% to €3.66 million reflecting the contractual increases included in the lease agreements with tenants as the Group’s two main property assets – namely Zentrum Business Centre and Centre Parc Property – remain virtually fully occupied.
- In view of a marginal decline in administrative expenses, EBITDA is projected to increase by 5% to €2.83 million.
- Net finance costs are expected to ease by 1.3% to €0.68 million.
- Overall, Tum is forecasting a net profit of €1.57 million compared to €1.45 million in 2021.
- In terms of financial position, total assets are expected to increase by 2.6% to €69.7 million largely reflecting the higher amounts due from related parties to €2.79 million (31 December 2021: 1.72 million) and the higher levels of cash to €1.04 million (31 December 2021: €0.62 million). On the other hand, total debt is anticipated to decline by 1% to €22.1 million.
- In view of the 4.1% increase in the Group’s equity base to €38.9 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to improve to 36.3% from 37.4% as at the end of 2021. Moreover, in view of the anticipated increase in EBITDA, the interest cover is expected to climb to 4.16 times (2021: 3.91 times) whilst the net debt to EBITDA multiple is forecasted to drop to 7.5 times compared to 8.1 times in 2021.