Simonds Farsons Cisk plc - Updated Financial Analysis Summary

On 21 July 2021, Simonds Farsons Cisk plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the 2020/21 financial results, a comparison of the 2020/21 actual results with the forecasts as published in the previous FAS dated 23 September 2020, as well as the forecasts for the current financial year ending 31 January 2022.

The main highlights of the 2021/22 projected financial performance and position of Farsons are as follows:

• Revenues are expected to rebound by 25.6% to €91.7 million which, in turn, would be just 11.4% short of the record turnover figure of €103.5 million achieved in the 2019/20 financial year.
• Similarly, EBITDA is anticipated to climb by 29.1% to €19.3 million which would be 15.1% lower than the level of €22.7 million recorded pre-pandemic. In addition, the Group is expecting a slight improvement in the EBITDA margin to 21% compared to 20.5% in the 2020/21 financial year on the back of additional operational and cost efficiencies introduced since the outbreak of the pandemic.
• The profit for the year is estimated at €9.38 million (FY2020/21: €3.33 million) which, in turn, would translate into a return on average equity of 7.5%.
• The forecasts also show that Farsons is projecting to generate a free cash flow of €0.74 million despite a four-year high budget of €19.4 million for capital expenditure which is mostly related to the completion of the ‘Old Brewhouse’ project as well as other investments which were deferred from the prior year. Furthermore, the Group is projecting ending the 2021/22 financial year with a net debt position of €23.6 million compared to €24.2 million as at 31 January 2021. As a result, and in view of the strong rebound in profitability, the net debt to EBITDA multiple is expected to improve considerably to 1.22 times compared to 1.78 times pre-pandemic.

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Simonds Farsons Cisk plc – Updated Financial Analysis Summary dated 21 July 2021.