FL FINANCE & DEVELOPPEMENT : revenue, balance sheet and financial ratios

In 2022, FL FINANCE & DEVELOPPEMENT achieves revenue of 629 k€. Revenue is growing positively over 4 years (CAGR: +4.7%). Significant drop of -23% vs 2021. After deducting consumption (0 €), gross margin stands at 629 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 146 k€, representing 23.2% of revenue. Warning negative scissor effect: despite revenue change (-23%), EBITDA varies by -38%, reducing margin by 5.6 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 100 k€, i.e. 16.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 14%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 64%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 16.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 357.92. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 0.3x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 19 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 40 days. Favorable situation: supplier credit is longer than customer credit by 21 days. WCR is negative (-85 days): operations structurally generate cash. Notable WCR improvement over the period (-3963%), freeing up cash.

Based on 88 transactions of similar company sales in 2022, the value of FL FINANCE & DEVELOPPEMENT is estimated at 721 880 € (range 360 572€ - 1 465 642€). With an EBITDA of 146 108€, the sector multiple of 6.8x is applied. The price/revenue ratio is 0.33x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.
Medium reliability: estimate to be confirmed with in-depth analysis.