25.11.2020 15:51:02 EET | Sunborn Finance Oyj |
Interim report (Q1 and Q3)
Sunborn Finance Oyj: INTERIM REPORT FOR JULY – SEPTEMBER 2020
STOCK EXCHANGE RELEASE
This is a summary of the Q3 2020 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 Finance Oyj
EUR thousand
Q3 / 2020
1 Jul –
30 Sep 2020
Q3 / 2019
1 Jul –
30 Sep 2019
YTD 2020
1 Jan –
30 Sep 2020
YTD 2019
1 Jan –
30 Sep 2019
Y 2019
1 Jan –
31 Dec 2019
Revenue
921
906
2 715
2 719
3 625
EBITDA
783
722
2 262
2 082
2 806
Investment property (Spa Hotels)
65 920
64 155
65 914
Total equity
6 541
5 607
6 909
Bond
49 546
49 066
49 130
Sunborn Finance Oyj Financial summary 1 July – 30 September 2020
Sunborn Finance revenue consists of fixed lease income from the operator and other services income. Lease income 7-9/2020 was 0.85 M€ (7-9/2019 0.84 M€). Other services income refers to personnel costs for facility services and is a cost/income neutral line item.
The operator of the properties Sunborn Saga Oy had good Q3 results while navigating the special circumstances of Covid-19. Domestic leisure demand was high after a two-month lock-down and management strategy for pricing and cost control was successful with peak month July ADR in Naantali increasing +6 % YoY, Q3 ADR +3 % YoY. Ruissalo ADR levels also strong at par with YoY 2019 levels. Operator overall revenue for the period was lower at 7.2 M€ (8.5 M€) however EBITDA increased to 2.3 M€ (1.9 M€). The success in Q3 cost control, government grants and support loans, stable operational cashflow and good EBITDA performance have all contributed to securing a steady foundation in the midst of the pandemic for the business going forward.
The value of the Spa hotels is at Naantali Spa 55,7 M€ and at Ruissalo Spa 28,7 M€ (1/3 in Sunborn Finance assets) according the valuation reports.
Business environment
The continuing Covid-19 restrictions continue to negatively impact international travel and corporate business.
Naantali Spa won the prestigious title of Finland’s Leading Hotel second time in a row at the 2020 World Travel Awards in the beginning of November. In addition, the new, two-storey theme suites won the title of Finland’s Leading Hotel Suite.
Notable during the reporting period and estimated future development
As a result of Covid-19 impacts on the operator’s activities Sunborn Finance written procedure to amend bond terms and conditions was accepted 25th June 2020 and secured certain waivers and amendments to the terms and conditions of the bonds. The waivers provide temporary relief on interest coverage ratio, minimum cash covenant and lease payment covenant.
Short-term risks and uncertainties
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 hotels the Company holds as investment property.
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 part of the Sunborn Group, which is over 40 years old, privately owned group of companies based in Finland, with decades of experience in the hospitality sector. Sunborn’s 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
Attachments
Download announcement as PDF.pdf
Sunborn Finance Oyj Q3 2020 Report.pdf
