Tumas Investments plc - Updated Financial Analysis Summary

On 25 June 2024, Tumas Investments plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Spinola Development Company Limited (the Guarantor) in 2024:

• Revenues are expected to increase by 1.2% to €52.7 million, as the Group is anticipating a stable performance across all business lines. The hospitality segment is anticipated to generate most revenues, albeit 0.9% lower than last year to €43.7 million. No property sales are anticipated to be recognised during the year since the contracts of sale in relation to the Halland residential project are expected as from 2025.
• EBITDA is expected to drop by 6.5% to €20.0 million amid margin compression across all business segments.
• Net finance costs are expected to fall by 31% to €1.6 million compared to €2.3 million in 2023. In fact, despite the weaker EBITDA, the interest cover is expected to improve to 12.5 times compared to 9.2 times in 2023.
• Total debt is projected to drop by 3.2% to €48.3 million as the repayment of the outstanding €25 million 5.0% unsecured bonds maturing on 31 July 2024 will be partly offset by new bank borrowings. The gearing ratio (calculated as total debt divided by total debt plus equity) is expected to remain at the 25% level.
• Meanwhile, the in view of the forecasted lower levels of cash (when including treasury funds), the net debt to EBITDA multiple is expected to increase to 1.7 times from 1.1 times in 2023.