G3 Finance plc - Updated Financial Analysis Summary

On 18 June 2024, G3 Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of G3 Holdings Limited (the Guarantor) in 2024:

• Revenues are expected to increase by 14.3% to a record of €14.0 million (2023: €12.3 million) principally driven by the anticipated surge in income from the restaurant segment (+41% to €5.47 million) reflecting all-inclusive packages from the Solana Hotel & Spa, as well as a longer period of operations for the Palm Beach Lido and the DOMS Brasserie. Furthermore, revenue from the hotel accommodation segment is anticipated to rise by about 3% to €7.91 million) as the growth in operations related to the 55-room expansion of the Solana during the second half of the year is set to outweigh the hotel’s subdued performance and closures during the first six months of 2024 pertaining to the refurbishment.
• EBITDA is expected to remain unchanged at the €3.4 million level as gains in revenue are expected to be offset by higher operating costs.
• Net finance costs are anticipated to increase by 16% to €0.85 million reflecting the impact of higher rates on floating-rate bank loans as well as additional bank borrowings to finance the acquisitions of the Square Gastro Pub and the Palm Beach Lido. As a result, the interest cover is expected to weaken to 4.0 times compared to 4.7 times in 2023.
• Total debt is projected to climb by 17.4% to €17.1 million, including €1.05 million in lease liabilities. The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to rise to 43.1% compared to 40.3% as at the end of 2023.
• When accounting for the forecasted cash balance of €0.2 million compared to €1.4 million as at the end of 2023, net debt is expected to increase by 28.3% to €16.9 million. Consequently, the net debt-to-EBITDA multiple is projected to weaken to 5.0 times compared to 3.8 times as at the end of 2023.