On 27 April 2022, M&Z plc published its Annual Report and Financial Statements for the year ended 31 December 2021. This is the first set of financial statements published by M&Z following the Initial Public Offering which took place in Q1 2022.
Revenues increased by 5.2% to €22.8 million (2020: €21.6 million) as despite the challenging operating environment including the aftereffects of Brexit and the pandemic, the company gained from a strong recovery in the second half of the year amid an encouraging rebound in consumer activity.
Given the growth in business, total operating costs increased by 3.6% to €19.9 million. However, given the stronger expansion in business, operating profit surged by almost 18% to €2.81 million compared to €2.39 million in 2020. Excluding depreciation and amortisation charges, EBITDA increased by 14.1% to €3.56 million which, in turn, translates into an EBITDA margin of 15.6% (2020: 14.4%).
After accounting for net finance costs of €0.1 million and tax charges of €0.94, the net profit for the year amounted to €1.77 million (compared to forecasted figure of €1.7 million at the time of the IPO) which, in turn, translates into a return on equity of 26.3% (when excluding the company’s preference shares).
The Statement of Financial Position as at 31 December 2021 shows that total assets increased by 14% to €14.5 million mostly resulting from higher levels of inventories and trade receivables. Total liabilities increased by €1.83 million to €6.25 million largely reflecting bank borrowings which were partly used for the acquisition of a new business operation. Overall, the company’s equity base remained virtually unchanged at €8.21 million when including an amount of €1.5 million in preference share capital.
In their commentary, the Directors explained that 2021 was a milestone year for the company which culminated into the listing of its shares earlier this year. Going forward, M&Z will continue pursuing an active strategy aimed at strengthening its supplier mix and further increasing its presence on the market and diversifying its product offering.