22.8.2022 17:24:12 EEST | Sunborn Finance Oyj |
Half Year financial report
Sunborn Finance Oyj: INTERIM REPORT FOR APRIL – JUNE 2022
STOCK EXCHANGE RELEASE
This is a summary of the Q2 2022 interim financial report. The complete report is attached to this release and is also available at www.sunborn.com/press/
Sunborn Finance Oyj Financial summary 1 April – 30 June 2022
Sunborn Finance revenue 0.95 M€ consists of fixed lease income from the operator and other services income. Lease income Q2 2022 was 0.88 M€ (Q2 2021 0.85 M€). Other services income refers to personnel costs for facility services and is a cost/income neutral line item. Q2 2021 contained 0.13 M€ cost support related to Covid-19. YTD costs were in line with previous year.
According to December 2021 valuation reports the value of the Spa hotels is at Naantali Spa 52.2 M€ and at Ruissalo Spa 26.7 M€ (1/3 of Ruissalo Spa is owned by Sunborn Finance and shown as its assets). During 2022 the company has renovated hotel reception, cafeteria and lobby bar. Renovations reflect in changes in fair value of investment property in the income statement.
Notable during the reporting period and estimated future development
As the worst effects of the Covid-19 dissipated after March, travel resumed quickly and bookings volumes spiked in April. Operator management expects continued revenue growth in Q3 and Q4 however with pressures on operating costs that need to be carefully managed in this volatile macroeconomic environment.
War in Ukraine has impacted energy prices and COGS, delivery times and availability of different products and items. Despite the war and ongoing Covid-cases Q2 showed improvement in Operator revenue and number of guests.
Summer season has been and continues to be very busy in both hotels. 2022 has been exceptionally busy with numerous events and festivals both in Naantali and Turku.
Business environment
Covid no longer is the main driver impacting travelling industry. The war in Ukraine and macroeconomic environment globally causes bigger medium to long term concerns in forms of cost inflation, such as energy expenditure, food and laundry costs.
Our business strategy continues to focus on domestic leisure, medical rehabilitation and corporate and other groups in the coming months.
Customer satisfaction of the hotels continues to be good and has not been affected by the pandemic or the war in Ukraine. On the contrary net promotion score is on a high level in both hotels.
Short-term risks and uncertainties
The ongoing and continuing pandemic is an ongoing uncertainty that may cause disruptions to hospitality businesses, including Sunborn Finance.
The war in Ukraine is not estimated to have a direct impact on the company’s operations. Continued inflationary pressure may continue to effect energy expenditure and to increase cost of materials and labour.
The Company’s bond is maturing for repayment on 9th February 2023. Management views the current high yield market conditions to be less favourable due to the higher industry risk and ongoing risks but financing to be available subject to terms and conditions. Company has engaged advisors and is in progress of pursuing refinancing well in advance of maturity.
Sunborn Finance OyjBoard of Directors
For additional information, please contact:
Sunborn Group Executive Director Hans Niemi, hans.niemi@sunborn.com
Sunborn Group CFO Niina Stade, niina.stade@sunborn.com
DISTRIBUTION:Nasdaq Helsinki Ltdwww.sunborn.com/press/
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 Finance Oyj in any jurisdiction.
About Sunborn Finance Oyj
Sunborn Finance is a public limited liability company incorporated in Finland, established in 2017. The company owns the award winning Naantali Spa Hotel located in Naantali by the Baltic Sea and Ruissalo Spa Hotel located in Turku by the scenic Finnish archipelago. Sunborn Finance also provides property management and IT support services.
The company is owned by the Niemi family, which also controls the Sunborn Group. Sunborn Group’s focus is on the development of luxury spa and yacht hotels, restaurants and other high-quality property, with over 45 years of expertise in the hospitality sector.
www.sunborn.com
Attachments
Download announcement as PDF.pdf
Sunborn Finance Q2 2022.pdf
