SOCIETE DE PROMOTION ET D'INVESTISSEMENTS : revenue, balance sheet and financial ratios

In 2024, SOCIETE DE PROMOTION ET D'INVESTISSEMENTS achieves revenue of 485 k€. Revenue is growing positively over 9 years (CAGR: +3.7%). Vs 2023: +6%. After deducting consumption (52 k€), gross margin stands at 433 k€, i.e. a rate of 89%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 156 k€, representing 32.2% of revenue. Positive scissor effect: EBITDA margin improves by +13.1 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 3.2 M€, i.e. 662.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 28%. 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 77%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 744.8% 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 1157.14. 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 61.7x. 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: 403 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 89 days. The gap of 314 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 849 days of revenue, i.e. 1.1 M€ to permanently finance. Over 2016-2024, WCR increased by +117%, requiring additional financing.

Based on 131 transactions of similar company sales (all years), the value of SOCIETE DE PROMOTION ET D'INVESTISSEMENTS is estimated at 2 559 553 € (range 776 527€ - 7 017 882€). With an EBITDA of 156 146€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.36x (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.