SUD OUEST VILLAGES - SOVI : revenue, balance sheet and financial ratios

In 2022, SUD OUEST VILLAGES - SOVI achieves revenue of 13.5 M€. Activity remains stable over the period (CAGR: -0.9%). Significant drop of -12% vs 2021. After deducting consumption (6.2 M€), gross margin stands at 7.3 M€, i.e. a rate of 54%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.6 M€, representing 11.8% of revenue. Warning negative scissor effect: despite revenue change (-12%), EBITDA varies by -45%, reducing margin by 7.2 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 2.3 M€, i.e. 17.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 32%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 61%. 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 4.9 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 13.1% 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 496.95. 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 16.1x. 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: 46 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 197 days. Excellent situation: suppliers finance 151 days of the operating cycle (retail model). Inventory turnover is 384 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 642 days of revenue, i.e. 24.0 M€ to permanently finance. Over 2016-2022, WCR increased by +116%, requiring additional financing.

Based on 80 transactions of similar company sales (all years), the value of SUD OUEST VILLAGES - SOVI is estimated at 3 025 889 € (range 1 076 847€ - 8 226 969€). With an EBITDA of 1 589 725€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.28x (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.