1923 Investments plc - Updated Financial Analysis Summary

On 4 June 2024, 1923 Investments plc published an updated Financial Analysis Summary. The company is expected to redeem its outstanding bonds maturing in December 2024, which may also be exchanged via the upcoming bond issue of Hili Finance Company plc. The following are the main highlights of the expected financial performance and position of 1923 Investments plc in 2024:

• Revenue is expected to surge by 26.2% to €355.6 million reflecting improvements in income streams of existing businesses as well as the additional contributions of at least two new Apple retail store openings in Poland.
• EBITDA is anticipated to increase by 15.0% to €25.2 million from €21.9 million in the previous year. However, the EBITDA margin is projected to fall to 7.1% from 7.8% in the previous year.
• Given that net finance costs are forecasted to fall by 22.0% to €4.2 million, the interest cover is anticipated to improve to 6.1 times compared to 4.1 times in 2023.
• Total debt is anticipated to drop by 28.1% to €57.7 million when including €13.2 million in lease liabilities as the redemption of outstanding bonds will outweigh the forecasted increase in bank borrowings. The gearing ratio (calculated as total debt divided by total debt plus equity) is projected to improve to 43.5% compared to 53.9% as at 31 December 2023.
• When accounting for the expected cash balance of €15.0 million as at 31 December 2024, net debt is expected to amount to €42.6 million. As a result, the net debt-to-EBITDA multiple is anticipated to improve to 1.7 times compared to 3.1 times as at the end of 2023.