Tumas Investments plc - Updated Financial Analysis Summary

On 28 June 2023, Tumas Investments plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Spinola Development Company Limited (the Guarantor of the bonds) in 2023:

• Revenues are expected to increase by 7.1% to €46.5 million, driven by the improvement in the hospitality segment (+11.2% to €38.7 million). Nonetheless, the projected hospitality segment revenues would still be 6.9% lower than the €41.6 million reported in 2019 prior to the pandemic.
• EBITDA is expected to ease by 1.5% to €17.1 million, reflecting the removal of the wage supplement that was available during some months of the previous financial year.
• Net finance costs are expected to decrease by 7.9% to €2.22 million compared to €2.41 million in 2022. As a result, the interest cover is expected to improve to 7.7 times compared to 7.2 times in 2022.
• In terms of financial position, total assets and total liabilities are forecasted to remain relatively unchanged at €232 million and €89.1 million respectively.
• Total debt is projected to drop by 6.8% to €52.9 million. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to ease to 27% from 28.7% as at the end of last year. Meanwhile, the in view of the forecasted lower levels of cash totalling €3.03 million (2022: €15.5 million), the net debt to EBITDA multiple is expected to increase to 2.9 times from 2.4 times in 2022.