Bortex Group Finance plc - Updated Financial Analysis Summary

On 27 April 2023, Bortex Group Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Bortex Group Holdings Co. Ltd. (the Guarantor) for the year ending 31 October 2023:

• Revenue is expected to ease by 0.7% to €23.7 million as the 1.7% drop in revenue from the apparel segment to €17.5 million is expected to be partly offset by the 8.5% increase in income from the hotel operations to €6.18 million. Furthermore, unlike the previous year, the Group is not envisaging any sale of property.
• Cost of sales are expected to decline by 3.4% to €12.6 million whilst operating expenses are expected to remain consistent at €6.29 million. As a result, EBITDA is projected to increase by 3.3% to €5.03 million principally driven by contribution from the hospitality sector of €2.8 million and retail activity of €2.2 million.
• Net finance costs are forecasted to surge by 24.6% to €1.38 million, leading to a lower interest cover of 3.6 times compared to 4.4 times last year.
• Total debt is forecasted to increase by 13% to €29.5 million when including lease liabilities amounting to €5.73 million, as the Group plans to purchase additional equipment through new bank borrowings. Likewise, net debt is anticipated to climb to €27.3 million. As a result, net debt to EBITDA is forecasted to climb to 5.4 times compared to 4.8 times in the previous financial year.
• The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 42.2% (2021/22: 43%) as the increase in debt is expected to be offset with an increase in equity through an expected increase in fair value of the Group’s property, plant and equipment.