VELOPOLIS : revenue, balance sheet and financial ratios

In 2024, VELOPOLIS achieves revenue of 7.6 M€. Revenue is growing positively over 9 years (CAGR: +1.1%). Vs 2023, growth of +16% (6.6 M€ -> 7.6 M€). After deducting consumption (0 €), gross margin stands at 7.6 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.6 M€, representing 34.0% of revenue. Warning negative scissor effect: despite revenue change (+16%), EBITDA varies by -4%, reducing margin by 7.2 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 216 k€, i.e. 2.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 71%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 47%. 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 10.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 22.3% 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 50.97. 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 42.1x. 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: 75 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 53 days. The company must finance 22 days of gap between collections and payments. WCR is negative (-256 days): operations structurally generate cash. Over 2015-2024, WCR increased by +53%, requiring additional financing.

Based on 277 transactions of similar company sales (all years), the value of VELOPOLIS is estimated at 2 469 663 € (range 934 992€ - 6 911 577€). With an EBITDA of 2 594 309€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.29x (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.