Simonds Farsons Cisk plc - Updated Financial Analysis Summary

On 15 July 2019, Simonds Farsons Cisk plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the 2018/19 financial results, a comparison of the 2018/19 actual results with the forecasts as published in the previous FAS dated 16 July 2018, as well as the forecasts for the current financial year ending 31 January 2020.

The main highlights of the 2019/20 projected financial performance of the Farsons Group are as follows:

  • Revenues are expected to increase by a further 3.9% to €103.7 million reflecting recent domestic economic growth trends as well as further improvements in the export segment.
  • Meanwhile, EBITDA is only anticipated to improve by 1.7% to €23.6 million given the expected higher increase in operating expense particularly in relation to the Group’s workforce.
  • Pre-tax profits are expected to drop by 0.6% to just over €14 million as the aforementioned improvement in EBITDA is projected to be offset by the forecasted 7.6% increase in depreciation and amortisation to €8.5 million in line with the Group’s ongoing capital investment programme which is expected intensify during the current financial year.
  • Similarly, net profit is estimated to fall by 2.4% to €14.76 million reflecting both the anticipated drop in pre-tax profits as well as the lower incidence of tax credits.

The forecasts also show that the company is projecting generating a free cash flow of €6.3 million notwithstanding the fact that the company is projecting to invest in excess of €15 million on various projects including the restoration and rehabilitation of the original brewhouse which is expected to be completed in the first quarter of 2021. Simonds Farsons Cisk plc is projecting ending the 2019/20 financial year with a net debt position of €33.1 million compared to €39.1 million as at 31 January 2019. Coupled with the expected 12% increase in its capital base to €108.27 million, the gearing ratio (calculated as total debt dividend by total debt plus equity) is anticipated to improve to 24.6% from 27.3% as at the end of 2018/19 financial year.

Download 

Simonds Farsons Cisk plc – Updated Financial Analysis Summary dated 15 July 2019