JD Capital plc - Updated Financial Analysis Summary

June 19, 2023

On 16 June 2023, JD Capital plc (“JD”) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of JD in 2023 and 2024:

Revenues in 2023 are expected to increase by 20% to €14.2 million reflecting a combination of the completion of previously commenced contracts, and additional projects which will be undertaken throughout the year. JD is projecting a further 7.5% improvement in turnover to €15.3 million in 2024.
EBITDA is projected to reach just below €2.0 million in 2023 compared to €1.1 million in 2022 and expected to reach €2.7 million in 2024.
After accounting for depreciation and amortisation which is forecast to amount to €0.7 million in 2023 and €0.8 million in 2024 (compared to €0.96 million in 2022), the operating profit of JD is expected to improve from €0.2 million in 2022 to €1.2 million and €1.9 million in 2023 and 2024 respectively.
On the other hand, the improved operating profit is expected to be mostly offset by higher net financing costs. Following the additional debt undertaken by the Group including the bond issue in 2022 and another bond planned for this year, net finance costs are projected to sharply increase from €0.7 million in 2022 to €1.2 million in 2023. The same level of interest costs is expected to be maintained in 2024.
Nonetheless, the 2022 EBITDA interest cover multiple of 1.7 times is expected to be the same in 2023 and improve to 2.3 times in 2024.
In terms of financial position, total assets are projected to increase by €13.2 million to €70.7 million by 2024, compared to €57.5 million in 2022. Similarly, total liabilities are expected to increase by 15.7% up to the end of 2024 (€6.4 million) to total €47.1 million, relative to €40.7 million in 2022.
By the end of 2024, JD’s total debt is forecast to surge by 48% (€11.3 million) compared to the 2022 total of €22.7 million. Consequently, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 59.6% in 2024 (31 December 2022: 58.4%). However, the gain in EBITDA is set to outweigh the rise in debt levels as Net Debt to EBITDA is forecast to decline to 12.2 times compared to 19.9 times in 2022.