Premier Capital plc - Updated Financial Analysis Summary

June 28, 2022

On 28 June 2022, Premier Capital plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Premier Capital in 2022:

Revenues are expected to surge by 24% to a new record of €502.8 million reflecting strong growth in business across all regions especially in Romania (+20.5% to €279 million) and Greece (+43.1% to €74.2 million). Furthermore, Premier Capital is expecting to open 9 new stores throughout 2022 to a total of 175 restaurants with the majority (96) located in Romania.
In view of the growth in business, EBITDA is projected to increase by 6% to €73.1 million. However, due to the sharper increase in costs, the EBITDA margin is anticipated to ease to 14.5% compared to 17% in 2021.
After accounting for depreciation and amortisation charges of €26.9 million, net finance costs of €6.88 million, and a tax charge of €3.85 million, Premier Capital is projecting a net profit of €35.4 million compared to €34.3 million in 2021.
In terms of financial position, total assets are expected to increase by 1.7% to €323.1 million whilst total liabilities are projected to contract by 4.4% to €249 million partly reflecting a reduction in total debt to €197.3 million. Coupled with the expansion in the company’s equity base to €85.1 million, the gearing ratio is anticipated to drop to just below 70% compared to 74.6% as at the end of 2021. Likewise, the net debt-to-EBITDA multiple is forecasted to improve to 2.38 times compared to 2.51 times in 2021. On the other hand, the interest cover is expected to ease to 10.6 times (2021: 11.7 times) largely reflecting a drop in finance income generated from loans granted to related companies.