Virtu Finance plc - Updated Financial Analysis Summary

June 23, 2022

On 23 June 2022, Virtu Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Virtu Maritime Limited (the guarantor) in 2022:

Revenues are expected to surge by 42.8% to €37.4 million which would be just 14% short of the €43.4 million turnover figure recorded in 2019 prior to the outbreak of the pandemic. Most of the increase in business reflects the strong rebound in income from the ‘Ferry Service, Accommodation & Excursions’ segment which is expected to generate €32.4 million in revenues compared to €24 million in 2021. Likewise, income from ‘Charter Hire’ is anticipated to increase notably to €4.17 million compared to €1.54 million in 2021 reflecting the charter of HSC Maria Dolores to a Moroccan shipping line for three years after the vessel underwent an extensive refit and refurbishment.
EBITDA is projected to amount to €7.58 million which although would be considerably higher than the corresponding figure of €1.88 million in 2021, on the other hand it would be 65% lower than the level of €21.9 million recorded in 2019. The reduction in EBITDA when compared to the performance achieved in 2019 is related to the lower volume of business as well as the increase in cost of sales reflecting the operation of two vessels servicing the Malta-Sicily route and higher fuel costs.
After accounting for depreciation and amortisation charges of €5.82 million and net finance costs of €2.6 million, Virtu Maritime Limited is projecting a net loss of €0.84 million compared to the loss of €6.35 million reported in the 2021 financial year.
In terms of financial position, total assets and liabilities are expected to contract marginally to €196.6 million and €117.2 million respectively. The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to remain at around 52.6%. On the other hand, in view of the expected improvement in EBITDA, the net debt-to-EBITDA multiple is anticipated to drop to 11.6 times whilst the interest cover is expected to increase to 2.92 times compared to 0.74 times in 2021.