PROCOR : revenue, balance sheet and financial ratios

In 2015, PROCOR achieves revenue of 7.8 M€. Revenue is growing positively over 3 years (CAGR: +3.2%). Vs 2014: +7%. After deducting consumption (6.5 M€), gross margin stands at 1.3 M€, i.e. a rate of 16%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 362 k€, representing 4.7% of revenue. Warning negative scissor effect: despite revenue change (+7%), EBITDA varies by -53%, reducing margin by 5.9 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 182 k€, i.e. 2.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 17%. 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 25%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 128.85. 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 0.0x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 156 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 261 days. Excellent situation: suppliers finance 105 days of the operating cycle (retail model). Inventory turnover is 22 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 186 days of revenue, i.e. 4.0 M€ to permanently finance. Notable WCR improvement over the period (-41%), freeing up cash.

Based on 356 transactions of similar company sales (all years), the value of PROCOR is estimated at 748 097 € (range 347 318€ - 1 688 997€). With an EBITDA of 361 550€, the sector multiple of 1.5x 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.