23.5.2022 16:09:47 EEST | Sunborn Finance Oyj |
Interim report (Q1 and Q3)
Sunborn Finance Oyj: INTERIM REPORT FOR JANUARY – MARCH 2022
STOCK EXCHANGE RELEASE
This is a summary of the Q1 2022 interim financial report. The complete report is attached to this release and is also available at www.sunborn.com/press/
Key Figures (IFRS) – Sunborn Finance Oyj
EUR thousand
1 Jan- 31 Mar 2022
1 Jan- 31 Mar 2021
1 Jan – 31 Dec 2021
Revenue
949
915
3 856
EBITDA
771
763
3 239
Investment property (Spa Hotels)
61 759
61 820
61 759
Total equity
2 377
2 567
2 638
Bond
49 980
49 686
49 906
Sunborn Finance Oyj Financial summary 1 January – 31 March 2022
Sunborn Finance revenue 0.95 M€ consists of fixed lease income from the operator and other services income. Lease income 1-3/2022 was 0.88 M€ (1-3/2021 0.85 M€). Other services income refers to personnel costs for facility services and is a cost/income neutral line item. 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).
Sunborn Saga Oy Financial summary 1 January – 31 March 2022
Total revenue Q1 2022 was 3.9 M€ (Q1 2021 3.2 M€). EBITDA in Q1 was 0.2 M€ (Q1 2021 0.1 M€). The spreading of the Omicron variant of Covid-19 resulted into further restrictions and lock downs for Q1 2022.
The company exploited the lower occupancy at Naantali Spa by commencing a major facelift and renewal project in the Naantali Spa lobby. New lobby was taken into use in the end of March and has received a lot of positive feedback from the customers.
Restrictions were eased in February and winter break on week 8 was already successful in both hotels, but especially in Naantali. Number of bookings started to increase rapidly in March. Management expects both revenue and profitability to grow especially in Q2 and Q3.
Notable during the reporting period and estimated future development
Restrictions continued throughout January and parts of February. Positively, management has been well trained and prepared for such changing business environment and cost adaptation is effective. As Q1 is historically the weakest period, the impact in overall annual results is manageable.
Pandemic restrictions were eased by mid-February and the management was optimistic that better times would lie ahead. Russia’s invasion of Ukraine in the end of February changed the situation rapidly. The war had an instant impact on energy prices and other costs, and delivery times and availability of different products and items.
Despite the war and ongoing Covid-cases the company foresees that Q2 will show improvement in revenue and number of guests and the summer season is expected to be very busy in both hotels as domestic travelling is booming.
Naantali Spa also joined the Sustainable Travel Finland -programme in January 2022, which aligns with internationally known sustainable tourism standards and sustainable development goals.
Business environment
The high number of Covid cases continue still to impact hospitality industry, particularly international travel, but it is unlikely that the Finnish government will issue further restrictions.
The war in Ukraine causes a bigger concern in forms of increasing costs such as energy expenditure, food and laundry costs which management is carefully monitoring and controlling. Energy cost increase has been partially mitigated through forward contracts.
International travel to our hotels will recover from the pandemic earlier than originally anticipated. We are already receiving bookings from Scandinavia and German speaking European countries.
Customer satisfaction of the hotels continues to be good and has not been too negatively affected by the pandemic or the war against Ukraine. On the contrary net promotion score is on a high level in both hotels.
Short-term risks and uncertainties
The war in Ukraine will most likely not affect tourism – except for Russian and Asian tourists – but it will certainly effect energy expenditure, purchases and other costs.
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.
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 Oyj financial statements Q1 2022.pdf
