Qawra Palace plc - Updated Financial Analysis Summary

On 30 September 2024, Qawra Palace plc published an updated Financial Analysis Summary. The following are the main highlights on the expected financial performance and financial position of Qawra Palace plc for the financial year ending 31 March 2025:

• Revenue is expected to amount to €2.45 million, which is the payment from Mallard Co Limited for the rental of the Qawra Palace Hotel, relatively unchanged from FY2023/24.
• EBITDA is anticipated to amount to €2.35 million as the issuer is expecting to incur minimal administrative costs of about €0.1 million.
• Net finance costs are projected to surge by 76.8% to €0.92 million reflecting a drop in the interest income from Mallard, after Mallard transferred part of its assets to Qawra Palace plc and in the process eliminated all the intercompany loans between the two companies.  As a result, the interest cover is expected to worsen to 2.55 times from 4.33 times in the previous financial year.
• In terms of financial position, total assets are anticipated to increase by 8.7% (or €8.0 million) to €99.5 million mostly consisting mainly of investment property of €97.5 million. Meanwhile, total liabilities are projected to grow marginally by 1.4% (or €0.5 million) to €33.1 million. Total equity is forecasted to strengthen by 12.8% (or €7.5 million) to €66.5 million.
• Total debt is expected to remain relatively unchanged at €24.5 million. However, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to drop to 26.9% compared to 29.3% in the previous year due to the improved equity position. Meanwhile, the net debt-to-EBITDA multiple is projected to improve to 9.58 times from 10.8 times as at 31 March 2024.