29.2.2024 17:12:16 EET | Sunborn (Gibraltar) Limited |
Quarterly report
This is a summary of the Q4 2023 interim financial report. The complete report is attached to this release and is also available at www.sunborn.com/press/
GBP thousand
Q4 2023
Q4 2022
2023
2022
Rental income
1 230
795
4 750
3 180
EBITDA
1 177
756
4 489
3 034
Investment property (Yacht hotel)
77 343
78 707
Total equity
5 118
5 742
Bond
50 449
51 170
Issuer Sunborn Gibraltar Ltd Financial summary 1 October – 31 December 2023
The Issuer Sunborn Gibraltar Ltd lease income in Q4 2023 from the Operator was 1.230 MGBP (Q4 2022: 0.795 MGBP). Lease increased to support increase in borrowing costs. Operational costs were in line with expectations, but interest expenses have increased significantly.
The fair value of the Yacht hotel is at 108.6 MEUR based on the latest valuation report dated May 2023.
Operator Financial summary 1 October – 31 December 2023
For the period, Total Revenue came in at 2,36 MGBP (-9 % YoY 2022). Rooms revenue fell short 10 % YoY due to decrease in Occupancy of 12 %, while retaining ADR levels at +3 % YoY but ultimately RevPar was down (-11 %). Costs of goods sold (CoGS) have been managed positively with a decrease of (-3 % YoY). Reacting to the market environment, management reduced expenses where possible in staffing levels and purchases including its utilities costs down (- 7 % YoY). In addition, aggressive marketing campaigns with travel operators helped raise occupancy throughout the period however not enough to offset the diminished corporate and MICE business. Unfortunately, due to unfavourable inflation levels the mooring fees (rent) have increased materially.
The largest factors impacting operating profit were minimum wage increase as per government policy, increase in mooring Fees and vessel lease (+55 % YoY) to cover higher Issuer borrowing costs. A slowdown in Occupancy and Room Revenue essentially flows down directly to the bottom line.
Business environment
In the rooms business mix, the retail room rates were down by -25 %, Corporate -10 % as well as MICE down -31 %, however, Government was up due to various groups from hospitals and travel/tourism, subsequently FIT was up +51 % due to package campaigns with key travel partners.
The number of flights remains below the years of 2016-2019. The availability, consumer cost and volume of flights into Gibraltar correlates strongly with our hotel room bookings as the vast majority of Sunborn clients fly into Gibraltar.
The hotel market in Gibraltar is also significantly impacted by the amount of short let apartments in the market.
During the period of Q4, 2023, the hotel maintained high levels of Guest satisfaction ratings reflected by Trip Advisor rating of #2, Booking.com rating of 8.5/10, Hotels.com rating of 9.2/10, Expedia.com 9.2/10 during the period. The Sunborn remains the only 5 star rated hotel in Gibraltar.
Notable events during and after the end of the reporting period and estimate future development
In February 2024 the Company issued a Written Procedure seeking a further extension of 5 March 2024 maturity by 6 months to 5 September 2024 to conclude the refinancing negotiations currently underway. The voting period for this amendment will end 18 March 2024, but the company is expecting to announce the results sooner. Company is engaged in negotiations for refinancing or solutions for repaying the bond prior to extended maturity. To provide certainty to bondholders during the WP voting process, the Company and Agent have already agreed to move forward the original Maturity date to the 27 March 2024. The WP terms and conditions have received wide support from the largest bondholders prior to issue.
The market conditions are clearly challenging, but the management believes that a financing solution will be reached within the extended period. Under the current terms and condition, the bonds shall be redeemed on maturity date at nominal amount in addition to call premium (currently 4 %). The company is expecting to conclude a redemption offer that will reflect the solution currently under negotiation and subject to agreement.
Covenants are tested on a quarterly basis. On 31 December 2023, under the high interest market conditions, the Issuer failed the minimum cash covenant, on the Maintenance Test agreed under the Financial Undertakings. Since the Maintenance Test was not met, the parent company will provide a subordinated shareholder loan as an Equity Cure, in an amount sufficient to ensure compliance with the Q4 Maintenance Test for minimum cash covenant.
It is expected that under current challenging trading conditions which are expected to continue in the intermediate term, the company is reliant on continued support from its parent group to support the higher financing costs and adhering to agreed financial covenants.
Short-term risks and uncertainties
As per the Written Procedure issued in February, the company is requesting an extension of the bond maturity by six months to September 5, 2024. Th Company is engaged in negotiations for refinancing or other solutions for repaying the bond prior to extended maturity and management believes that a conclusion will be reached within the requested extension period. Management estimates the fair market value of company hotel asset is well in surplus of the third-party debt and liabilities, and expects agreement with new lenders, investors and current shareholders to refinance or repay the current bond and liabilities.
Floating interest rate risk has not been hedged. High interest rates impact negatively and materially on Sunborn Gibraltar’s liquidity.
Sunborn Gibraltar LtdBoard of Directors
For additional information, please contact:Sunborn Group Executive Director Hans Niemi, hans.niemi@sunborn.com
DISTRIBUTION:Nasdaq Helsinki Ltdwww.sunborn.com/press/
Sunborn Group in brief
Sunborn is privately owned and 50 years old group of companies headquartered in Finland. Our focus is on the development of luxury spa and yacht hotels, restaurants and other high-quality property.
Sunborn is present at the moment in Finland, Denmark, United Kingdom and Gibraltar. Operations vary from spa resorts and residential communities to hotels and yacht hotels, restaurants, and catering operations in the best locations.
www.sunborn.com
Disclaimer
The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of Sunborn Gibraltar Plc in any jurisdiction.
Attachments
Download announcement as PDF.pdf
Financial Statements Sunborn Gibraltar Ltd Q4 2023.pdf
29.2.2024 17:12:16 EET | Sunborn (Gibraltar) Limited |
Kvartalsrapport
SUNBORN GIBRALTAR LTD
INTERIM REPORT FOR APRIL – JUNE 2021
STOCK EXCHANGE RELEASE
This is a summary of the Q2 2021 interim financial report. The complete report is attached to this release and is also available at www.sunborn.com/press/
Key Figures (IFRS) – Issuer Sunborn Gibraltar Ltd
Sunborn Gibraltar Ltd Financial summary 1 April – 30 June 2021
The Issuer Sunborn Gibraltar Ltd receives lease income from the Operator. Lease income in Q2 2021 was £795 K (£134K in Q2 2020). Costs were in line with previous year.
The depreciated value of the Yacht hotel is at €107.6 Million based on the latest valuation report dated June 2021.
Operations slow start for Q2 under pandemic travel restrictions ended with record breaking sales and the trend continued throughout the summer. June outperformed any previous month on record with near 90 % occupancy. Second half of 2021 looks promising. The Operator Q2 EBITDA performance covenant was met and in excess.
Business environment
Gibraltar continues to be on the Green List of countries or territories which UK citizens could travel to without quarantine upon arrival or return home as of May 17th. During the period, the number of flights per week increased to 45 which is at the level of 2017 before the Monarch airlines demise.
Notable events during and after the end of the reporting period and estimate future development
Despite the Covid-19 situation, the management is confident the business is well placed to continue operations normally regardless of the subsequent changes in the operating environment.
Looking forward, Q3 is shaping up to be another record occupancy period exceeding 2019 levels. Q4 showing signs of recuperation in some business travel and pre-bookings for Christmas events. However, leisure travel remains dominant over corporate or event travel.
Gibraltar, UK and Spain are in process of ratifying an in-principle agreement allowing Gibraltar to form part of Schengen travel zone.
Short-term risks and uncertainties
The Covid -19 outbreak has severely and negatively affecting the tourism market globally. Prolonged Covid -19 restrictions could further impact the Company’s business through continued negative impact on the operator. Prolonged crisis could also in the long term impact the fair value of the yacht hotel the Company holds as investment property.
Sunborn Gibraltar LtdBoard of Directors
For additional information, please contact:
Sunborn Group Executive Director Hans Niemi, hans.niemi@sunborn.com
DISTRIBUTION:Nasdaq Helsinki Ltdwww.sunborn.com/press/
Sunborn Group in brief
Sunborn is over 40 years old, privately owned company based in Finland, with decades of experience in the hospitality sector. Our focus is on the development of luxury spa and yacht hotels, restaurants and other high-quality property.
Sunborn is present at the moment in Finland, Denmark, United Kingdom and Gibraltar. Operations vary from spa resorts and residential communities to hotels and yacht hotels, restaurants, and catering operations in the best locations.
www.sunborn.com
Disclaimer
The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of Sunborn Gibraltar Plc in any jurisdiction.
Bilagor
Ladda ned som PDF.pdf
