Premier Capital plc - Updated Financial Analysis Summary

On 28 June 2021, Premier Capital plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the 2020 financial results, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 25 August 2020, as well as the forecasts for the current financial year ending 31 December 2021.

The main highlights of the 2021 financial performance and position of Premier Capital plc are as follows:

  • Revenues are expected to surge by 23.2% to €392.9 million, reflecting an improvement in business activity across all of the Group’s six markets as well as the opening up of 8 new restaurants. In particular, the Group’s two largest markets, Romania and Greece, are forecasted to see revenues grow by 26.0% and 34.1% to €225.1 million and €50.3 million respectively.
  • Five of the new stores will be located in Romania whilst the remaining 3 will be in Greece (2) and Lithuania (1). As a result, Premier Capital is envisaging closing 2021 with a total 167 stores compared to 159 stores as at the end of 2020. Despite the increase in the total number of stores, given the overall surge in business, revenue per store is expected to climb to a record of €2.4 million from €2.0 million in 2020.
  • Although net operating expenses are anticipated to increase by 22.9% to €328.6 million from €267.4 million in 2020, EBITDA is projected to jump by 24.7% to an all-time high of €64.2 million compared to €51.5 million in 2020.
  • Depreciation costs and net finance costs are expected to remain broadly unchanged at €25.2 million and €6.9 million respectively.
  • After accounting for a tax charge of €3.4 million (2020: €1.3 million), Premier Capital is forecasting a net profit of €28.8 million (2020: €17.7 million).
  • Cash balances are anticipated to increase by 8.3% to €31.1 million, boosted by stronger net cash inflows of €51.9 million from operating activities (2020: €38.7 million). On the other hand, total borrowings are expected to decline by 5.5% to €178.8 million by the end of 2021 (when including lease liabilities amounting to €90.5 million). Consequently, net debt is expected to decrease to €147.7 million by 31 December 2021 compared to €160.5 million as at 31 December 2020.
  • The Group’s credit metrics are expected to improve considerably. The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 72.9% by the end of 2021 (31 December 2020: 78.1%). Similarly, the net debt to EBITDA multiple is forecasted to drop to 2.3 times by the end of 2021 (2020: 3.1 times). Likewise, the interest cover is projected to increase to 9.4 times compared to 7.4 times in 2020.

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Premier Capital plc – Financial Analysis Summary dated 28 June 2021.

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