United Finance plc - Updated Financial Analysis Summary

On 24 June 2022, United Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of United Group Limited in 2022:

  • Revenues are expected to ease by 1.4% to €5.05 million as the projected substantial drop in income from ‘Fashion Retail’ following the closure of the Debenhams operations in June 2021 is anticipated to be mostly offset by the increase in revenues from the ‘Automotive’ segment and ‘Rental’ operations.
  • EBITDA is projected to amount to €2.06 million compared to €1.88 million in 2021.
  • After accounting for depreciation and amortisation charges of €1.07 million, the positive contribution of €0.2 million from associates, and net finance costs of €1.14 million, United Group is projecting a net profit of €0.05 million compared to €3.24 million in 2021 which however included a positive movement of €3.36 million in the fair value of investment property.
  • In terms of financial position, total assets and liabilities are expected to increase marginally to €39.2 million and €29 million respectively. The gearing ratio (calculated as total debt divided by total debt plus equity) and the interest cover are anticipated to remain virtually unchanged at around 67% and 1.8 times respectively. On the other hand, in view of the expected improvement in EBITDA, the net debt-to-EBITDA multiple is anticipated to drop to 9.2 times compared to 10.1 times in 2021.