ENGINEERING PROCUREMENT SERVICES INDUSTRY AFRICA : revenue, balance sheet and financial ratios

In 2024, ENGINEERING PROCUREMENT SERVICES INDUSTRY AFRICA achieves revenue of 6.6 M€. Revenue is growing positively over 9 years (CAGR: +4.3%). Vs 2023: +5%. After deducting consumption (-14 k€), gross margin stands at 6.6 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.1 M€, representing 17.1% of revenue. Positive scissor effect: EBITDA margin improves by +6.5 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 793 k€, i.e. 12.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 23%. 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 18%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 13.7% 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 254.48. 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 0.7x. 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: 172 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 93 days. The gap of 79 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 84 days of revenue, i.e. 1.5 M€ to permanently finance. Notable WCR improvement over the period (-55%), freeing up cash.

Indicative estimate only : the number of comparable transactions in this sector is limited (29 transactions). This range of 595 794€ to 3 061 713€ is provided for information purposes only and requires in-depth analysis to be confirmed.