1923 Investments plc - Updated Financial Analysis Summary

On 20 June 2023, 1923 Investments plc published an updated Financial Analysis Summary. The following are the main highlights of the company’s expected financial performance and position in 2023:

• Revenues are expected to surge by 36% to €316.5 million principally driven by the growth from iSpot, the largest Apple Premium Reseller in Poland. In this respect, the company explained that the increase in income reflects further organic growth in the Apple retain business as well as the acquisition of Cortland, an established operator of 16 outlets and a strong business to business franchise. Meanwhile, the Group is forecasting lower revenues from Hili Logistics when compared to the previous year, following the sale of the business to a sister company (HV Marine Limited) outside the 1923 Investments plc Group.
• Despite the notable increase in revenues, EBITDA is expected to increase by only 1.4% to €18.8 million, reflecting the higher level of net operating expenses.
• Given that net finance costs are forecasted to increase marginally to €4.0 million (2022: €3.8 million), the interest cover is anticipated to ease to 4.64 times compared to 4.81 times in 2022.
• In terms of financial position, total assets are projected to increase by 15.5% to €189 million whilst total liabilities are expected to increase by 17% to €121.8 million. The Group’s total debt is anticipated to increase by 16.4% to €75.5 million, when including €12.4 million in lease liabilities.
• The gearing ratio (calculated as total debt divided by total debt plus equity) is expected to increase to 52.9% compared to 52.1% as at 31 December 2022, while the net debt-to-EBITDA multiple is anticipated to climb to 3.62 times compared to 2.95 times as at the end of 2022.