NEWSPORT : revenue, balance sheet and financial ratios

In 2024, NEWSPORT achieves revenue of 12.6 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +10.1%. Slight decline of -9% vs 2023. After deducting consumption (6.9 M€), gross margin stands at 5.7 M€, i.e. a rate of 45%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.2 M€, representing 9.6% of revenue. Warning negative scissor effect: despite revenue change (-9%), EBITDA varies by -32%, reducing margin by 3.3 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 678 k€, i.e. 5.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 15%. 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 34%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.1% 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 121.91. 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 1.8x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 3 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 92 days. Excellent situation: suppliers finance 89 days of the operating cycle (retail model). Inventory turnover is 57 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 26 days of revenue, i.e. 926 k€ to permanently finance.

Based on 68 transactions of similar company sales in 2024, the value of NEWSPORT is estimated at 2 382 169 € (range 1 223 450€ - 5 272 524€). With an EBITDA of 1 209 597€, the sector multiple of 2.0x is applied. The price/revenue ratio is 0.19x (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.