Simonds Farsons Cisk plc - Updated Financial Analysis Summary

On 22 July 2022, Simonds Farsons Cisk plc published an updated Financial Analysis Summary. The main highlights of the projected financial performance and position of Farsons for the 2022/23 financial year are as follows:

• Revenues are expected to surge by 26% to a record of €115.7 million reflecting growth across all business lines as well as the initial contribution from ‘The Brewhouse’.
• EBITDA is anticipated to climb by 12.6% to €25.6 million which would also be a new all-time high. On the other hand, the EBITDA margin is anticipated to contract to 22.1% compared to 24.7% in the 2021/22 financial year, largely reflecting the assistance on wages received from Government during the pandemic.
• Overall, Farsons is forecasting a net profit of €12.2 million which would translate into a return on equity of 9.2%.

• In terms of financial position, total assets (+4.3%) and total liabilities (+2.6%) are expected to increase to €209.6 million and €73.6 million respectively. Total debt is projected to remain at €34 million but given the increase in the Group’s equity base, the gearing ratio is anticipated to ease to 20% from 21% as at the end of January 2022. In view of the improvement in financial performance, the interest cover is projected to increase to 26 times (FY2021/22: 17.7 times) whilst the net debt-to-EBITDA multiple is expected to strengthen to 0.68 times (FY2021/22: 0.82 times).