Simonds Farsons Cisk plc - Updated Financial Analysis Summary

On 23 September 2020, Simonds Farsons Cisk plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the 2019/20 financial results, a comparison of the 2019/20 actual results with the forecasts as published in the previous FAS dated 15 July 2019, as well as the forecasts for the current financial year ending 31 January 2021.

The main highlights of the 2020/21 projected financial performance of Farsons are as follows:

• Revenues are expected to drop by 23.5% (or -€24.3 million) to €79.2 million.
• Although total operating costs are anticipated to contract by 15.7% (or -€14.1 million) to €75.7 million, operating profit is forecasted to plunge by 74.5% to €3.49 million (FY2019/20: €13.7 million).
• Excluding depreciation and amortisation charges, EBITDA is expected to contact by nearly 46% to €12.3 million (FY2019/20: €22.7 million).
• The profit for the year is estimated at €1.88 million which, in turn, would translate into a return on average equity of 1.6%.
• The forecasts also show that Farsons is projecting to generate a free cash flow of €0.93 million notwithstanding the prevailing adverse operating environment. Furthermore, the company is projecting ending the 2020/21 financial year with a net debt position of €39.3 million compared to €40.5 million as at 31 January 2020. Likewise, the gearing ratio (calculated as total debt dividend by total debt plus equity) is anticipated to improve slightly to 29.2% from 29.6% as at the end of 2019/20 financial year.

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Simonds Farsons Cisk plc – Updated Financial Analysis Summary dated 23 September 2020.