Sunborn London Oyj: HALF YEAR REPORT FOR JULY - DECEMBER 2022

HALF YEAR REPORT FOR JULY - DECEMBER 2022

Sunborn London Oyj

STOCK EXCHANGE RELEASE

This is a summary of the July - December 2022 half year financial report. The complete report is attached to this release and is also available at www.sunborn.com/press/

Key Figures

EUR thousand	1 Jul - 31 Dec 2022	1 Jul - 31 Dec 2021	1 Jan - 31 Dec 2022	1 Jan - 31 Dec 2021
Rental income	2 564	1 371	3 969	2 712
EBITDA	2 430	1 504	3 648	2 731
Operating profit	1 677	752	2 143	1 226
Investment property (Yacht hotel)			33 393	34 898
Total Equity			27 488	28 027
Borrowings			24 273	24 380

Financial summary 1 July - 31 December 2022

Rental Income for the reporting period was 2.56 MEUR (1.37 MEUR). Operating costs were in line with previous year if ignored the additional costs related to listing of new bonds.

During the year to 31 December 2022, an additional £1.1 M was charged by the Sunborn London Plc to account for updated capital cost, planned bond repayments, vessel insurance and classification costs. The monthly charter cost from 1.1.2023 onwards is increased with inflation to GBP 234,000 per month.

Hotel operations under Sunborn International (UK) Ltd exceeded management performance expectations with H2 operating revenue increasing 10 % to 5.28 MGBP (4.80 MGBP) with EBITDAR to 1.97 MGBP (1.90 MGBP). Overall, H2 demonstrated outstanding performance and direction under Sunborn management.

Book value of the yacht hotel as of 31 December 2022 approximates the fair value of the yacht hotel based on income approach using discounted cash flow analyses.

Notable events during and reporting period after the end of the reporting period

Nothing to report.

Estimate future development

Management believes the property will continue successful operations under the current management and Sunborn London Oyj’s financial performance and debt service capacity to remain stable.

The new Elizabeth line cross rail link is a major improvement in public transport connections for the hotel, with travel times to central London in circa 15 minutes and to London Heathrow airport in 45 minutes.  Management expects the Elizabeth Line to increase area hotel room demand and ADR development. In addition, the commencement of Silvertown development is expected to add 6,000 units in housing and 180,000 sqm of working and public space positively contributing to the Royal Docks area.

Short-term risks and uncertainties

Continued UK inflationary pressure in cost of materials and labour, consequently requiring faster than expected price development for sales and short-term fluctuations in profit margins as the business adapts to volatile market conditions.

 

Sunborn London Oyj
Board of Directors

For additional information, please contact:

Sunborn Group Executive Director Hans Niemi, tel.+358 2 44 54 513, hans.niemi@sunborn.com

Sunborn Group CFO Niina Stade, tel.+358 44 55 66 153, niina.stade@sunborn.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
www.sunborn.com/press/

Sunborn Group in brief

Sunborn London is a part of Sunborn Group. A privately owned and 50 years old group of companies headquartered in Finland focuses on development, management and ownership of high-quality hospitality property and business operations. Sunborn group has presence in seven countries with operations ranging real-estate, hotels and lodging, residential communities, yacht hotels, food service, and catering among others.

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 London Oyj in any jurisdiction.