MILFRANCE : revenue, balance sheet and financial ratios

In 2024, MILFRANCE achieves revenue of 741 k€. Over the period 2019-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +51.5%. Significant drop of -58% vs 2023. After deducting consumption (-650 k€), gross margin stands at 1.4 M€, i.e. a rate of 188%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 859 k€, representing 115.8% of revenue. Positive scissor effect: EBITDA margin improves by +46.7 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 1.0 M€, i.e. 136.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -646%. 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 -15%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 5.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 136.2% 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 571.20. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 503 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 300 days. The gap of 203 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 316 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1596 days of revenue, i.e. 3.3 M€ to permanently finance. Over 2019-2024, WCR increased by +43%, requiring additional financing.

Based on 103 transactions of similar company sales (all years), the value of MILFRANCE is estimated at 1 837 592 € (range 770 799€ - 4 075 991€). With an EBITDA of 858 660€, the sector multiple of 2.5x is applied. The price/revenue ratio is 0.30x (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.