21.11.2023 16:14:46 EET | Sunborn (Gibraltar) Limited |
Interim report (Q1 and Q3)
SUNBORN GIBRALTAR LTD: INTERIM REPORT FOR JULY – SEPTEMBER 2023
STOCK EXCHANGE RELEASE
This is a summary of the Q3 2023 interim financial report. The complete report is attached to this release and is also available at www.sunborn.com/press/
GBP thousand
Q3 2023
Q3 2022
YTD 2023
YTD 2022
FY 2022
Rental income
1 320
795
3 520
2 385
3 180
EBITDA
1 237
744
3 312
2 278
3 034
Investment property (Yacht hotel)
77 628
78 257
78 707
Total equity
5 635
1 881
5 742
Bond
50 304
51 033
51 170
Issuer Sunborn Gibraltar Ltd Financial summary 1 July – 30 September 2023
The Issuer Sunborn Gibraltar Ltd lease income in Q3 2023 from the Operator increased to £1,320M to support higher financing costs. Operational costs were in line with previous year, but interest expenses have increased significantly.
The fair value of the Yacht hotel is at €108.6 Million based on the latest valuation report dated May 2023.
Operator Financial summary 1 July – 30 September 2023
The operator Q3 revenue was level with last year and corresponds well to pre-pandemic years, £3.05M (£M 3.08). Operator profitability is under significant pressure from stagnant tourism and business travel combined with major increases in minimum wage, mooring fees and goods and services. Management focus is on increased revenues and profitability to support higher financing costs but improvements in market conditions and flight volumes are sought.
Business environment
YoY comparing with Q3 period, the corporate segment decreased by -20 % due to local fintech and gaming companies significantly reducing business travel. Sales campaigns during the period led to Leisure (FIT) increasing +66 % YoY, however, MICE was down -36 % with less events and incentives. The Government segment increased +85 % attributed to National Day (Sept 10) attendance from various gov’t bodies.
The number of flights decreased to 25 flights per week winter schedule (from 40 flights during summer) as per expected schedule. However, the number of flights still remains well below the years of 2015-2019. The availability, consumer cost and volume of flights into Gibraltar correlates strongly with our hotel room bookings as most Sunborn hotel clients fly into Gibraltar.
Short let apartments in the jurisdiction have increased exponentially in the past two years from approximately ~100 to ~420. In the market where there are 590 hotel rooms, the short-let market has a significant effect on hotel market trading levels and will continue to impact performance unless regulation is introduced.
In May 2023, the hotel was inspected and received the continued AA-rating of Five Star for the hotel and 2 Rosettes for the main restaurant.
Notable events during and after the end of the reporting period and estimate future development
The war in Ukraine continues to impact prices of various items, particularly in food and beverage such as grain related items as well as various supplies which are reliant upon fuel prices that have increased. Management is adapting to the price increases.
Short-term risks and uncertainties
According to the approved amendment proposal, the final maturity date of the bonds was extended by 18 months to 5 March 2024. The Company has engaged advisors and is in progress of pursuing refinancing in advance of maturity. The current high yield market conditions coupled with jurisdictional environment are clearly challenging and negotiations with potential lenders for refinancing solutions continue.
Floating interest rate risk has not been hedged. High interest rates impact negatively and materially on Sunborn Gibraltar’s liquidity.
Continued UK inflationary pressure may cause significant increases in cost of materials and labour, consequently requiring faster than expected price development for our sales and short-term fluctuations in profit margins as the business adapts to volatile market conditions.
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 Q3 2023 FINAL.pdf
21.11.2023 16:14:46 EET | Sunborn (Gibraltar) Limited |
Interimsrapport
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
