MONTPELLIER ESPACE LOISIRS : revenue, balance sheet and financial ratios

In 2024, MONTPELLIER ESPACE LOISIRS achieves revenue of 27.6 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.2%. Vs 2023: +0%. After deducting consumption (23.0 M€), gross margin stands at 4.6 M€, i.e. a rate of 17%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 680 k€, representing 2.5% of revenue. Warning negative scissor effect: despite revenue change (+0%), EBITDA varies by -54%, reducing margin by 2.9 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 404 k€, i.e. 1.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 93%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 31%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.1 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 241.51. 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 10.3x. 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: 8 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 43 days. Excellent situation: suppliers finance 35 days of the operating cycle (retail model). Inventory turnover is 115 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 118 days of revenue, i.e. 9.1 M€ to permanently finance. Over 2016-2024, WCR increased by +325%, requiring additional financing.

Based on 56 transactions of similar company sales (all years), the value of MONTPELLIER ESPACE LOISIRS is estimated at 1 374 536 € (range 833 078€ - 5 102 869€). With an EBITDA of 680 022€, the sector multiple of 0.8x is applied. The price/revenue ratio is 0.13x (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.