Grand Harbour Marina plc - Updated Financial Analysis Summary

On 26 June 2024, Grand Harbour Marina plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of GHM in 2024:

• Revenues are expected to drop by 6.3% to €4.06 million since the occupancy on several superyacht berths located adjacent to Fort St. Angelo was substantially disrupted during the first five months of the year due to the works that were being carried out by third parties on the bridge leading to Fort St. Angelo. Moreover, GHM is also prudently assuming a drop in occupancy of 3 percentage points across the pontoons.
• EBITDA is forecasted to fall by 11.2% to €1.64 million as the expected reduction in operating expenses is forecasted to be outweighed by the lower income streams.
• Net finance costs are projected to decline by 7.5% to €0.65 million. Nonetheless, the interest cover is anticipated to be marginally lower at 2.5 times compared to 2.6 times in 2023.
• GHM’s share of profits from its investment in the Turkish marina ‘IC Cesme’ is expected to amount to €1.97 million compared to €2.63 million in 2023, principally reflecting the impact of the expected deterioration of the Turkish Lira.
• Total debt is anticipated to be maintained at €21 million level when including €6.2 million in lease liabilities. However, due to an expected improvement in total equity to €7.4 million, the gearing ratio (calculated as total debt dividend by the summation of total debt and equity) is expected to improve to 74.0% compared to 76.3% as at 31 December 2023.
• As at the end of 2024, GHM is also expected to hold cash balances totalling €5.2 million, investments in debt securities of €4.4 million, and loan receivables from its parent company of €3.8 million.