AX Real Estate plc - Updated Financial Analysis Summary
On 28 April 2023, AX Real Estate plc (AXRE) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of AXRE for the financial years ending 31 October 2023, 2024, and 2025:
- Revenues are expected to increase by 30.2% to €11.6 million, driven by the higher income from hotel properties including the opening of the redeveloped AX ODYCY (previously known as Seashells Resort at Suncrest). In 2024, revenue is projected to rise further to €17.8 million and increase further in 2025 to €19 million, principally reflecting the annual rental increases from AXRE’s property portfolio.
- EBITDA is forecasted to surge by 41% to €10.7 million in the current financial year to 31 October 2023 and projected to rise further to €16.8 million and €17.9 million in the following two years. The EBITDA forecast of €10.7 million translates into an interest cover of 2.06 times which is lower marginally lower than the cover of 2.31 times of the financial year ended 31 October 2022.
- Overall, AXRE is forecasting a net profit of €4.35 million for the current financial year compared to the €3.6 million figure in the financial year ended 31 October 2022. Net profit is projected to increase further to €7.93 million and €8.85 million respectively in the following two financial years.
- The forecasted Statement of Financial Position as at 31 October 2023 shows that total borrowings are expected to increase to €149.9 million from €116.4 million as at 31 October 2022. Moreover, borrowings are projected to increase to €150.6 million by the end of October 2024 and €150.3 million as at 31 October 2025.
- In view of the increase in the level of total debt and the forecasted contraction in equity, the gearing ratio is anticipated to rise to 52.5% as at 31 October 2023 compared to 45% in October 2022. Meanwhile, the debt to asset ratio is forecasted to remain stable at 0.48 times throughout the forecasted period.