BRIAND CONSTRUCTION : revenue, balance sheet and financial ratios

In 2024, BRIAND CONSTRUCTION achieves revenue of 24.9 M€. Revenue is growing positively over 8 years (CAGR: +2.1%). Significant drop of -22% vs 2023. After deducting consumption (4.4 M€), gross margin stands at 20.5 M€, i.e. a rate of 82%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.6 M€, representing 10.6% of revenue. Positive scissor effect: EBITDA margin improves by +7.5 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Net income is negative at -1.4 M€ (-5.5% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 1179%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 3%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.5 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 6.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 177.62. 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 15.6x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 160 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 94 days. The gap of 66 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 104 days of revenue, i.e. 7.2 M€ to permanently finance.

Indicative estimate only : the number of comparable transactions in this sector is limited (25 transactions). This range of 3 796 416€ to 10 541 787€ is provided for information purposes only and requires in-depth analysis to be confirmed.