Phoenicia Finance Company plc - Updated Financial Analysis Summary

On 24 June 2024, Phoenicia Finance Company plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Phoenicia Group in 2024:

• Revenues are expected to increase by 12.1% to a record of €21.5 million driven by higher room rates. Meanwhile, occupancy level is anticipated to remain in line with the previous year at 75%.
• EBITDA is expected to surge by 26% to €7.0 million compared to €5.56 million in 2023 as operating expenditure is forecasted to increase at a slower pace when compared to the higher levels of income. In fact, the EBITDA margin is expected to improve to 32.6% from 29.0% in 2023.
• Net finance costs are expected to climb to €2.95 million compared to €2.38 million in 2023, reflecting the bond issuance at the first quarter of 2024.
• Total debt is expected to increase by 6.5% (or €4.5 million) to €72.9 million. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to climb to 60.2% compared to 59.2% as at the end of 2023.
• When accounting for a forecasted cash balance of €7.5 million as at the end of 2024, the net debt is expected to drop by 3.5% (or €2.4 million) to €65.3 million. Therefore, the net debt-to-EBITDA multiple is expected to improve to 9.3 times from 12.2 times as at the end of 2023.