SD Finance plc - Updated Financial Analysis Summary

On 27 September 2024, SD Finance plc published an updated Financial Analysis Summary. The following are the main highlights on the expected financial performance and financial position of SD Holdings Ltd (the Guarantor) for the financial year ending 31 March 2025:

• Revenues are expected to increase by 3.8% to a record of €92.1 million (FY2023/24: €88.7 million) amid the continued growth of the hospitality segment as well as the food & beverage segment.
• EBITDA is anticipated to climb by 2.8% to €32.0 million Nonetheless, the EBITDA margin is forecasted to compress marginally to 34.7% (FY2023/24: 35.1%), reflecting higher costs attributed to inflationary pressures, the launch of new restaurants, and an increase in personnel.
• Net finance costs are projected to surge by 45.6% to €7.8 million compared to €5.3 million in the previous year, reflecting the impact of higher borrowings supporting the significant investment in the db St George’s Bay project. As a result, interest cover is expected to ease to 4.11 times (FY 2023/24: 5.82 times).
• The financial performance of SD Holdings Ltd is also expected to be boosted by the share of results of associate companies, reflecting the contribution from Malta Healthcare Caterers Limited, which is projected to remain nearly unchanged at the €5.4 million level.
• In terms of financial position, total assets are expected to increase by 25.2% (or €119.3 million) to €593.3 million largely reflecting the higher levels of property, plant and equipment as well as inventories, both reflecting the ongoing capital expenditure on the db St George’s Bay project. Meanwhile, total liabilities are projected to climb by 41.1% (+108.0 million) to €370.6 million. As a result, shareholder funds are projected to strengthen by 5.3% (+€11.3 million) to €222.7 million.
• Total debt is expected to surge by 50% to €249.9 million (FY2023/24: €163.0 million). Consequently, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 52.9% from 43.9% in the previous year. Likewise, the debt to asset ratio is projected to climb to 0.42 times compared to 0.35 times in the previous year.