Sunborn Finance Oyj: Financial statements November 2017 - December 2018
Sunborn Finance Oyj
STOCK EXCHANGE REPORT
30 April 2019
This is a summary of the financial statements for the 14-month period between 1st November 2017 - 31st December 2018.
The complete report is attached to this release and is also available at www.sunborn.com/press/
Key Figures
| EUR thousand | 1 Nov 2017 – 31 Dec 2018 | |||
| Rental income | 4 136 | |||
| Operating profit | 386 | |||
| Investment property (Spa hotels) | 63 500 | |||
| Total Equity | 6 374 | |||
| Borrowings | 48 883 | |||
General
Sunborn Finance Oyj owns Naantali Spa hotel located in Naantali by the Baltic Sea and Ruissalo Spa Hotel located in Turku by the scenic archipelago. Both properties have been leased to hotel operator Sunborn Saga Oy.
Naantali Spa Resort has 214 rooms and 40 ancillary time share apartments and Ruissalo Spa Hotel 171 rooms. Both hotels also offer various ancillary facilities and services, such as conference and ball room facilities, spa facilities with treatment rooms and a pool complex with saunas, fully equipped fitness center, rehabilitation facilities, restaurants, bars, cafes and lounges.
In 2018, significant renovation of the hotel rooms was made in both spa hotels.
Financial summary 1 November 2017 - 31 December 2018
Sunborn Finance was established 1 November, 2017 and the company’s operations consist of acting as a lessor of the spa hotels and also providing property and IT related facility services. Sunborn Finance has four employees.
Sunborn Finance receives lease income from the operator. Lease income for the first financial year 11/2017 – 12/2018 was 4.136 M€. The other services income refers to personnel costs for facility services and is a cost/income neutral line item.
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 during the reporting period
At December Sunborn Finance Oyj established a dormant subsidiary for administrative purposes thus became the parent company of the group.
Business environment
No significant changes in business environment.
Sunborn Finance Oyj was a SPV with no other purpose than owning the Naantali and Ruissalo spa hotel properties and providing property and IT related facility services.
The hotels are leased out to Sunborn Saga Oy through a lease agreement. Sunborn Saga Oy pays Sunborn Finance Oy a fixed sum per month in lease. Customer satisfaction continues to be good.
Estimate future development
The company estimates that its financial performance and debt service capacity will remain stable.
Notable events after the end of the reporting period
The company completed the listing of the senior secured floating rate bond to NASDAQ Helsinki on 8th February 2019.
Company’s shares
Total number of Company´s shares is 400 and the Company has two classes of shares. A shares have 20 votes per share and B shares have one vote per share, otherwise the terms are the same. Shares have no
nominal value.
Short-term risks and uncertainties
The Company´s financial risks related to business are market risk (including interest rate risk), credit risk, liquidity risk and refinancing risk. Floating interest rate risk has not been hedged.
The management review financial risks on regular basis to manage financial risk position and decide on necessary actions.
Corporate Governance
Sunborn Finance Oyj's ownership, corporate structure, operational activities and related party transactions are described in notes to the financial statements.
Proposal for profit distribution
The Board of Directors proposes to the Annual General Meeting that the funds are carried forward to retained earnings.
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/
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
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.
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