United Finance plc - Updated Financial Analysis Summary

On 19 June 2023, United Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of United Group Limited in 2023:

  • Revenues are expected to rise by 21.1% to €6.19 million reflecting the higher level of income expected from the automotive sector.
  • EBITDA is projected to amount to €2.95 million compared to €2.19 million in 2022.
  • Based on forecasted net finance costs of €1.39 million (2022: €1.22 million), the interest cover is anticipated to improve to 2.12 times compared to 1.79 times in the previous year.
  • The gearing ratio (calculated as total debt divided by total debt plus equity) is expected to ease to 66.9% compared to 67.3% as at the end of 2022. Furthermore, in view of the expected improvement in EBITDA, the net debt-to-EBITDA multiple is anticipated to drop to 7.3 times compared to 9.0 times in 2022.
  • United Group explained that United Finance plc intends to finance the redemption of the outstanding €8.5 million bonds maturing in November 2023 from the €8.4 million received from United Estates Limited (a related party) in consideration for the sale of GB Buildings in Ta’ Xbiex.