LE GRAND PRE : revenue, balance sheet and financial ratios

In 2024, LE GRAND PRE achieves revenue of 362 k€. Over the period 2020-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +13.5%. Slight decline of -8% vs 2023. After deducting consumption (5 k€), gross margin stands at 357 k€, i.e. a rate of 99%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 143 k€, representing 39.4% of revenue. Warning negative scissor effect: despite revenue change (-8%), EBITDA varies by -15%, reducing margin by 3.1 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 27 k€, i.e. 7.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 837%. 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 10%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 32.5% 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 10.72. 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 14.4x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 161 days. Excellent situation: suppliers finance 161 days of the operating cycle (retail model). Overall, WCR represents 0 days of revenue, i.e. 427 € to permanently finance. Notable WCR improvement over the period (-97%), freeing up cash.

Based on 153 transactions of similar company sales (all years), the value of LE GRAND PRE is estimated at 723 921 € (range 387 176€ - 1 084 406€). With an EBITDA of 142 593€, the sector multiple of 7.1x is applied. The price/revenue ratio is 1.61x (premium 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.