GAP Group plc - Updated Financial Analysis Summary

On 21 June 2024, Gap Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Gap Group plc in 2024:

• Revenues are expected to amount to €47.0 million compared to €42.8 million in 2023, reflecting sales of property forming part of ‘The Pantheon’ in Mosta as well as ‘Seaberry Park’ and ‘Mulberry Park’ both located in Qawra.
• EBITDA is forecasted to climb to €13.6 million from €12.8 million last year.
• Gap Group is expecting finance income to exceed its finance costs, partly reflecting the capitalisation of interest expenses incurred on ongoing development projects.
• Total debt is anticipated to contract by 19.4% (or €10.7 million) to €44.4 million. The gearing ratio (calculated as total debt divided by total debt plus equity) is projected to decrease to 49.1% from 60.4% at the end of 2023. Likewise, the debt to asset ratio is anticipated to ease to 0.46 times compared to 0.56 times in the previous year.
• Considering a forecasted cash balance of €25.4 million (which includes €16.6 million in the reserve account), the Group’s net debt is expected to drop to €19.0 million from €40.2 million at the end of last year.