SOCIETE REGIONALE D'ESPACES VERTS ET D'ENVIRONNEMENT EN ABREGE S.O.R.E.V.E. : revenue, balance sheet and financial ratios

In 2024, SOCIETE REGIONALE D'ESPACES VERTS ET D'ENVIRONNEMENT EN ABREGE S.O.R.E.V.E. achieves revenue of 10.3 M€. Revenue is growing positively over 11 years (CAGR: +0.7%). Significant drop of -13% vs 2023. After deducting consumption (2.9 M€), gross margin stands at 7.4 M€, i.e. a rate of 72%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.3 M€, representing 13.0% of revenue. Positive scissor effect: EBITDA margin improves by +3.0 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 685 k€, i.e. 6.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 51%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 36%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.2% 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 221.59. 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 5.2x. 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: 161 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 61 days. The gap of 100 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 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 160 days of revenue, i.e. 4.6 M€ to permanently finance. Over 2013-2024, WCR increased by +49%, requiring additional financing.

Based on 125 transactions of similar company sales (all years), the value of SOCIETE REGIONALE D'ESPACES VERTS ET D'ENVIRONNEMENT EN ABREGE S.O.R.E.V.E. is estimated at 3 388 466 € (range 1 293 392€ - 5 931 292€). With an EBITDA of 1 338 027€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.35x (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.