Tum Finance plc - Financial Analysis Summary

On 12 June 2024, Tum Finance plc (Tum Group) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of the Tum Group in 2024:

• Revenues are expected to decrease by 53.4% to €1.72 million (2023: €6.39 million) reflecting the transfer of Tum’s shareholding in Center Parc Holdings to a new associate company, in which the Tum Group has a 32.38% shareholding, which means that the company is only projected to earn rental income from Easysell.
• In view of the aforementioned property transfer and the consequent drop in revenue, EBITDA is projected to plunge by 56.4% to €1.36 million from €3.11 million in the previous year.
• Net finance costs are expected to ease by 5.4% to €0.80 million as a portion is being capitalised in connection with the commercial development project being undertaken in Mrieħel. Nonetheless, the interest cover will weaken to 1.70 times compared to 3.70 times in 2023.
• In terms of financial position, total assets are expected to increase by 1.4% to €76.1 million, largely reflecting the additional investment in the new property development in Mrieħel. Meanwhile, total liabilities are forecasted to remain virtually unchanged at €33.5 million.
• Total debt is anticipated to increase by 1.7% to €30.3 million as Tum Group is forecasting bank borrowings totalling €7.2 million. Meanwhile, the Tum Group’s Equity base is expected to increase by 3.1% to €42.7 million. The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 41.6% from 41.3% as at the end of 2023. Moreover, in view of the anticipated decrease in EBITDA, the net debt to EBITDA multiple is forecasted to rise to 21.8 times compared to 9.2 times in 2023.