As previously announced by top management, Risma will have completed the renovation of 7 Ibis hotels and the Sofitel Marrakech “Lounge and Spa” (155 rooms, meeting rooms, restaurants, lobby, etc.) by the end of 2018. The group is also continuing the construction of the Ibis Abdelmoumen, which is scheduled to open during 2019.
At the same time, the hotel group says it is continuing its strategic approach through:
– Control of its development, resulting in investments only in the economic sector in the Kingdom’s flagship cities;
– Control of its financial balances: Risma having completed its major developments, the group’s gearing, having now reached a threshold in line with sector standards, should experience a downward trend;
– An improvement in its financial balances by improving its financial leverage and its free cash flow.
The exit of the Pullman hotel from the Risma perimeter will lead to a drop of 119 MDH in turnover
According to the hotel company’s information note, the development of the forecasts below takes into account the following main assumptions:
> An increase in hotel activity in line with current sector parameters which should generate a theoretical increase in revenues generated by entities in all segments;
> The early termination of the contract concluded with the Société Palmeraie Maroc – Emirates (Palmare) as part of the free management of the Pullman hotel (rental unit), which will result in the exit of this hotel from the scope of the Risma group on January 1, 2019, thus resulting in a drop of MAD 119 million in consolidated turnover in 2019;
> A drop in the outstanding debts contracted by the Risma group as a result of their amortization and the group’s decision not to take out a new loan over the 2018-2019 period, as part of the rationalization and restructuring of debt;
> The transformation of the Emirotel company into a real estate company which will have to invoice, from 2018, rent in Risma’s income statement (40 MDH in 2018) relating to the Sofitel Rabat. It should be noted that this amount is neutralized at the level of the consolidated net income.
A total investment of MAD 386 million planned for the 2018-2020 period
In the same vein, it should be noted that Risma plans an investment envelope for development and existing assets of 385.9 MDH.
Over the 2018-2019 period, development investments mainly concern the Sofitel Marrakech and the Ibis hotels (mainly the Ibis Abdelmoumen). In 2020, the 58 million dirhams (see table below) concern exclusively the development of Sofitel Marrakech.
In terms of investments in existing assets, all brands are concerned, mainly the hotels of the Sofitel brand (which total 86.1 MDH for a total envelope of 128.5 MDH of investments in existing assets).
Financial forecasts
At the end of 2019, Risma’s consolidated turnover should stand at MAD 1.48 billion compared to MAD 1.56 billion in 2018 and MAD 1.45 billion in 2017.
The RNPG, for its part, would amount to 79.8 MDH and 74.3 MDH compared to a deficit of -86.4 MDH at the end of the 2017 financial year.
On the other hand, the group should show a reduction in its long-term debts going from 1.8 billion dirhams in 2017 to 1.6 billion dirhams in 2018 and to 1.47 billion dirhams in 2019.
Risma will distribute dividends for 2018 and 2019
For 2018 and 2019, the Risma group plans to distribute an annual dividend of nearly MAD 32 million to its shareholders.
source: leboursier.ma
