AX Group plc - Updated Financial Analysis Summary

On 19 April 2024, AX Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of AX Group plc for the financial year ending 31 October 2024:

• Revenues are anticipated to surge by 84% to €92.4 million driven by the first full year of operations of AX ODYCY as well as the recognition of the initial property sales of the Verdala Terraces. Nonetheless, the forecasted revenue figure is 10% lower than the previous forecast for FY2023/24 due to delays in the conclusion of apartment sales.
• EBITDA is anticipated to amount to €20.2 million compared to €7.44 million in the 2022/23 financial year. Nonetheless, in view of the delays in the property sales of the Verdala Terraces, EBITDA will be 32% lower than the €29.6 million figure forecasted in the prospectus dated 26 September 2023. The interest cover is expected to rise to 2.71 times from 1.24 times in the previous year.
• Net finance costs are expected to increase by 24.2% to €7.46 million, which however is an improvement over the September projection of €8.74 million.
• Total debt is expected to increase by 9% to €184.3 million. As a result, the gearing ratio is anticipated to climb to 43% compared to 41% in the previous financial year.  However, the debt to asset ratio will remain virtually unchanged at 0.37 times.