db Group sees strong upturn in finances in half-yearly results

Db Group had registered a significant upturn in turnover in the six months between April and September, when compared to the same period in 2022.

The group's Condensed Interim Financial Statements for the six months ended 30 September 2023 show that db Seabank Resort & Spa in Mellieħa registered an increase in turnover of 16% of the 2022 figures, with revenues of €17.4 million compared to €15 million in 2022.

The db Hotel San Antonio Resort & Spa registered a turnover of 20% of the 2022 figures at €14.5 million in 2023 compared to €12.1 million in 2022.

The leisure arm of the group continued expanding with four new outlets opening during the first six months of the year ending 30 September 2023. Turnover for SRGN for the period ending 30 September 2023 stood at €14.5 million, compared with €9.1 million during the same period in the previous year.

Seaport Franchising Limited is still operating with two outlets and turnover for the period to September 2023 stands at €3.2 million compared with €2.8million in the previous year.

Starbucks outlets, now 13 in total, continue to grow with turnover for the first six months of the current financial year increasing by 51% when compared to the previous year at €3.3 million.

The report says that the group's health care arm also continues improving its results on a year-on-year basis. An upswing in demand for the services offered by the group within this sector was experienced with the opening of the 504-bed wing at the Saint Vincent de Paul Residence which is run and managed by one of the Group's associated companies.

12-month forecast

Based on the results for the six months ended 30 September 2023, db Group is forecasting revenue to increase to €80 million (2022: €71 million) for the financial year ending 31 March 2024.

These projections are based primarily on account of an almost complete recovery in the hospitality industry and a positive performance from the operations of Lifestyle Group.

The group is not expecting material changes to depreciation, amortisation and net finance costs.

As for share of results of associates, the group is projecting similar results primarily because of the expected earnings to be generated by Malta Healthcare Caterers Limited.

The group's cash balances increased to €54 million as at 31 March 2023.

Db Group believes the Ukraine-Russia conflict will not affect the results as its exposure of business from these two countries is minimal.

However, whilst the group has no direct business linkages with these two countries, it is monitoring the effect that this conflict may have.

The increase in the price of goods and services is another challenge the group is facing, but notwithstanding this the projections show further strengthening of its cash balances to around €58 million by March 2024.

In view of the measures undertaken by the group, the projections outlined above and the cash reserves accumulated by the group in the past years, the directors are of the opinion that the issuer will have the necessary funds to finance the interest falling due in April 2024 and going forward.