AX Group plc - Updated Financial Analysis Summary

On 23 April 2025, AX Group plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of AX Group plc for the financial year ending 31 October 2025:

• Revenue is anticipated to surge by 57% (or €48 million) to €131.6 million driven by the recognition of property sales of the Verdala Terraces. AX Group also expects improved income across all other business lines, namely hospitality, construction, and healthcare.
• EBITDA is anticipated to increase by almost 60% (or €14.4 million) to €38.4 million.
• Net finance costs are expected to increase by 14.6% to €8.90 million, reflecting the Group’s higher level of borrowings ahead of the completion of the Verdala project. Nonetheless, the interest cover is still anticipated to strengthen to 4.3 times from 3.1 times.
• Total debt is expected to fall by 9.6% to €173.3 million from €191.7 million as at 31 October 2024 driven by a reduction in bank borrowings (-€22.46 million to €71.07 million) supported by the property sales of the Verdala Terraces. As a result, the gearing ratio is anticipated to fall to 40% compared to 44% in the previous financial year. Likewise, the debt to asset ratio is projected to decrease to 0.35 times compared to 0.37 times in the previous year.
• The Group expects the Verdala Wellness hotel to be inaugurated in Q2 2025 while several units from the Verdala Terraces are being handed over to their new owners. The total expenditure for the Verdala Project is now expected to be around €83 million compared to the initial projection of €66 million.
• The Group explained that the next phase of the Qawra project will include the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences comprising 151 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex. These phases are projected to cost between €70 million and €80 million.