Eden Finance plc - Updated Financial Analysis Summary

On 26 June 2023, Eden Finance plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Eden Leisure Group Limited (the Guarantor of the bonds) in 2023:

• Revenues are expected to surge by 40% to a record of €46.5 million, which would be 3.4% higher than the pre-pandemic record of €45 million generated in 2019. The growth in revenue is expected to be principally driven by the hospitality segment (+49.6% to €35.6 million).
• EBITDA is expected to amount to €14.5 million compared to €9.05 million in 2022.
• Net finance costs are anticipated to remain virtually unchanged at just over €2 million.  As a result, the interest cover is expected to improve notably to 7.12 times compared to 4.49 times in 2022.
• In terms of financial position, total assets (+4.5%) and total liabilities (+8.3%) are forecasted to increase to €227.7 million and €89.4 million respectively, largely reflecting the ongoing investment to redevelop the ex-Cinema 16 Block into a mixed-use development including a 168-room 4-star hotel, office and commercial space, as well as a family entertainment centre.
• In view of the projected 12.4% increase in total debt to €56.5 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to rise to 29% compared to 27.1% as at the end of 2022. Meanwhile, in view of the sharp improvement in EBITDA, the net debt-to-EBITDA multiple is expected to strengthen to 3.60 times compared to 5.37 times as at the end of 2022.