Tum Finance plc - Updated Financial Analysis Summary

On 26 June 2023, Tum Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Tum in 2023:

  • Revenues are expected to decrease by 21.7% to €2.93 million reflecting the exchange of Tum’s shareholding in Center Parc Holdings Ltd for BBT plc, a new joint venture through which Tum will diversify its property exposure and pursue further growth opportunities in the commercial property rental market.
  • In view of the drop in revenue, EBITDA is projected to plunge by 23.1% to €2.21 million.
  • Net finance costs are expected to ease by 8.6% to €0.73 million, however, the interest cover will weaken to 3.02 times compared to 3.59 times in 2022.
  • In terms of financial position, total assets are expected to increase by 7.6% to €73 million, which include the recognition of the €27.5 million investment in associates. Meanwhile, total liabilities are forecasted to remain virtually unchanged at just over €30.5 million.
  • Total debt is anticipated to increase by 19.4% to €26.7 million as Tum is forecasting new bank borrowings totalling €4.5 million. As a result, notwithstanding the 13.7% increase in the Group’s equity base to €42.5 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to increase to 38.6% from 35.8% as at the end of 2022. Moreover, in view of the anticipated decrease in EBITDA, the net debt to EBITDA multiple is forecasted to rise to 11.4 times compared to 7.9 times in 2022.