Premier Capital plc - Updated Financial Analysis Summary

On 4 June 2024, 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 2024:

• Revenues are expected to surge by 10.7% to a record of €714.6 million reflecting strong growth in business in the majority of regions, particularly in Romania (+9.6% to €383.2 million) and Greece (+22.0% to €125.0 million). During the year, Premier Capital expects to operate 10 additional stores for a total of 195 restaurants by the end of the year with the majority (108) located in Romania.
• In view of the business growth, EBITDA is projected to increase by 16.4% to €103.7 million and the EBITDA margin is anticipated to rise to 14.5% compared to 13.8% in 2023.
• Net finance costs are forecasted to surge by 25.8% to €10.3 million from €8.18 million in 2023. Despite this, the interest cover is expected to improve to 10.1 times from 8.7 times in the previous year.
• In terms of financial position, total assets are expected to increase by 8.2% to €460.1 million whilst total liabilities are projected to grow by 7.4% to €346.0 million. Premier’s total debt is forecasted to increase to €262.2 million, which includes €163.3 million in lease liabilities.
• With the expansion in the company’s equity base to €114 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 69.7% compared to 70.2% as at the end of 2023. With an expected cash balance of about €30.1 million by the end of 2024 (31 December 2023: €49.9 million), the net debt-to-EBITDA multiple is forecasted to remain at 2.2 times as the projected 20.6% (or €39.7 million) increase in net debt to €232.2 million is offset by the continued growth in EBITDA.