Bortex Group Finance plc - Updated Financial Analysis Summary

On 29 April 2024, Bortex Group Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Bortex Group Holdings Co. Ltd. (the Guarantor) for the year ending 31 October 2024:

• Revenue is expected to surge by 16.4% to €26.5 million as the 27.1% increase in revenue from the apparel segment to €19.5 million is expected to outweigh the 5.5% decrease in income from the hotel operations to €6.93 million. In this respect, the apparel segment is set to benefit from the full-year operations of the Mosta outlet as well as the opening of two new stores at new shopping malls. Meanwhile, hotel revenue is anticipated to decrease due to the unavailability of since some rooms.
• EBITDA is projected to decline by 2.5% to €5.42 million reflecting higher cost of sales. The EBITDA contribution from the hospitality sector is expected at €2.8 million, while that of retail activity is projected at €2.6 million.
• Net finance costs are forecasted to remain relatively unchanged at €1.28 million, leading to an interest cover of 4.2 times, also unchanged from the previous year.
• Total debt is forecasted to increase by 20.6% to €37.6 million when including lease liabilities amounting to €7.42 million. Accounting for an expected cash balance of €3.81 million net debt is anticipated to climb to €33.9 million. As a result, net debt to EBITDA is forecasted to climb to 6.2 times compared to 5.0 times in the previous financial year.
• The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to climb to 46.1% (2022/23: 42.8%) as the increase in debt is expected to outweigh the €2.1 million increase in equity to €44.0 million.