2020-05-29 19:30:00 CEST

2020-05-29 19:30:02 CEST


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Sunborn Finance Oyj - Interim report (Q1 and Q3)

Sunborn Finance Oyj: INTERIM REPORT FOR JANUARY - MARCH 2020


29.5.2020 20:30:00 EEST | Sunborn Finance Oyj | Interim report (Q1 and Q3)

STOCK EXCHANGE RELEASE This is a summary of the Q1 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  | 1 Jan- 31 Mar 2020 | 1 Jan- 31 Mar 2019 | 1 Jan - 31 Dec | 
              |                    |                    | 2019           | 
Revenue       | 911                | 907                | 3 625          | 
EBITDA        | 766                | 651                | 2 806          | 
Investment    | 65 914             | 63 500             | 65 914         | 
property (Spa |                    |                    |                | 
Hotels)       |                    |                    |                | 
Total equity  | 6 820              | 5 485              | 6 909          | 
Bond          | 49 194             | 48 922             | 49 130         | 
 

Executive Director, Hans Niemi

 

Year 2020 started with record breaking performance until the abrupt government
imposed

COVID19 restrictions forced freeze of operations in mid to end of March. Sunborn
Finance Oyj

Rental income however remained as expected at 0.9 M euros (0.9 M euros) and
costs were

in line with previous year.

 

Whist operations in Sunborn Saga Oy were heavily affected from 13th March
onwards, strong

performance in January and February provided a good foundation for Q1 revenues,
which

decreased only -6 % and EBITDA was -88 keur vs. 170 keur last year. Management
has revised

all business forecasts for 2020 to account for the disruption of the pandemic.
Business operations

are planned to reopen 1st June whilst the COVID 19 is expected to continue to
heavily impact all business

during the remainder of 2020.”

 

Sunborn Finance Oyj Financial summary 1 January – 31 March 2020

 

Sunborn Finance revenue consists of fixed lease income from the operator and
other services income.

Lease income 1-3/2020 was 0.85 M€ (1-3/2019 0.85 M€). Other services income
refers to personnel

costs for facility services and is a cost/income neutral line item. Costs in
2019 included one-time

costs related to the listing.

 

The value of the Spa hotels is at Naantali Spa 54 M€ and at Ruissalo Spa 28,5 M€

(1/3 in Sunborn Finance assets) according the valuation reports.

Notable events after the end of the reporting period and estimated future
development

Since 13th March 2020, the coronavirus (COVID-19) has led to unprecedented and
gradually

worsening business situation in the global hospitality sector, including
Finland. COVID-19 impacts

Sunborn Finance Oyj through the operator Sunborn Saga Oy’s ability to continue
operations during 
national emergency and pay the contractual rental payments, which are the main

income for the Company. 

 

Sunborn Finance initiated a written procedure to request the bondholders to

vote in favor of certain waivers and amendments of the terms and conditions of
the bonds and

Sunborn Finance Oyj management is confident the written procedure for the
amendments and waivers

will be accepted.

 

 

Business environment

 

The COVID-19 restrictions are expected to increase domestic leisure travel
demand while reducing

international and business travel.

 

 

Short-term risks and uncertainties

 

The COVID-19 outbreak is severely and negatively affecting the tourism market in
Finland.

As the company is reliant on the ability of the property operator to pay rent,
recent temporary

closure of the underlying business and the subsequent forecasted recovery period
is likely to affect

the performance of the operator in the short and medium term.

 

The impact of the unprecedented crisis is difficult to predict and it is unknown
when the full recovery

of the affected businesses will take place.

 

Sunborn Finance Oyj
Board 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 Ltd
www.sunborn.com/press/ [http://www.sunborn.com/press/]

Sunborn Group in brief

Sunborn is over 40 year 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 [http://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 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 [http://www.sunborn.com]

ATTACHMENTS

 * Download announcement as PDF.pdf
   [https://www.sttinfo.fi/ir-files/69817910/47/86/Download%20announcement%20as%
   20PDF.pdf]