PATRIMOINE ET RENOVATION : revenue, balance sheet and financial ratios

In 2023, PATRIMOINE ET RENOVATION achieves revenue of 15.4 M€. Revenue is growing positively over 8 years (CAGR: +2.4%). Significant drop of -10% vs 2022. After deducting consumption (2.5 M€), gross margin stands at 12.8 M€, i.e. a rate of 83%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.5 M€, representing 9.7% of revenue. Positive scissor effect: EBITDA margin improves by +6.3 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 404 k€, i.e. 2.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 166%. 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 12%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.6 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 125.97. 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 6.7x. 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: 257 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 123 days. The gap of 134 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 3 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 202 days of revenue, i.e. 8.6 M€ to permanently finance. Over 2016-2023, WCR increased by +40%, requiring additional financing.

Based on 88 transactions of similar company sales (all years), the value of PATRIMOINE ET RENOVATION is estimated at 3 105 182 € (range 1 083 464€ - 5 446 400€). With an EBITDA of 1 493 087€, the sector multiple of 2.7x is applied. The price/revenue ratio is 0.18x (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.