1923 Investments plc - Updated Financial Analysis Summary

On 23 June 2021, 1923 Investments plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s financial results in 2020, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 28 August 2020, as well as the forecasts for 2021.

The following are the main highlights of the expected financial performance and financial position of 1923 Investments plc in 2021:

  • Revenues are anticipated to grow by just under 10% to a record of €164.6 million (2020: €149.7 million) largely reflecting the increase in turnover to be generated by the Group’s largest subsidiary, iSpot Poland, as well as the improved performance of Hili Logistics which includes the first full twelve-month contribution from STS Marine Solutions (“STS”).
  • In view of the increase in business, net operating costs are also expected to rise by 10.1% to €150.4 million (2020: €136.6 million). Nonetheless, given the stronger growth in revenues, EBITDA is expected to advance by 8.1% to €14.2 million (2020: €13.1 million). The largest contributor to the increase in EBITDA is expected to be STS which performance is anticipated to be boosted by the improved operating environment in the energy sector in line with the prevailing economic rebound across the world. Moreover, the EBITDA margin is expected to improve to 8.6% from 8.4% in 2020.
  • Depreciation costs are expected to increase by 18.6% to €5.8 million (2020: €4.9 million) primarily due to the twelve-month charge related to the operations of STS which also invested in new equipment throughout 2020. Meanwhile, net finance costs are projected to ease by 7.7% to €3.6 million (2020: €3.9 million).
  • After accounting for a tax charge of €2.2 million (2020: €0.9 million), the Group is forecasting net profit to increase by 41.2% to €4.8 million from €3.4 million in the 2020 financial year.
  • Cash balances are anticipated surge to €33.1 million (31 December 2020: €11.4 million) reflecting an equity injection of €20 million. On the other hand, total borrowings are expected to ease to €62.7 million (31 December 2020: €63.2 million) when including lease liabilities amounting to €8.8 million.
  • As a result of the increase in the capital base of the company to €70.2 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to decrease to 47.2% compared to 58.1% as at 31 December 2020. Furthermore, the net debt to EBITDA multiple is forecasted improve to 2.1 times (2020: 3.9 times) whilst the interest cover is expected to increase to 3.9 times compared to 3.3 times in 2020.

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1923 Investments plc – Financial Analysis Summary dated 23 June 2021.

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