Premier Capital plc - Updated Financial Analysis Summary

On 19 June 2023, Premier Capital plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of Premier Capital in 2023:

• Revenues are expected to surge by 20.5% to a record of €643.1 million reflecting strong growth in business across all regions, particularly in Romania (+13.3% to €336.4 million) and Greece (+42.7% to €116.3 million). During the year, Premier Capital is expecting to open 12 new stores to a total of 186 restaurants with the majority (102) located in Romania.
• In view of the growth in business, EBITDA is projected to increase by 17.2% to €91 million. However, due to the sharper increase in costs, the EBITDA margin is anticipated to ease to 14.1% compared to 14.5% in 2022.
• Although net finance costs are forecasted to increase to €8.1 million compared to €6.9 million in 2022, the interest cover is expected to remain unchanged at 11.2 times.
• In terms of financial position, total assets are expected to increase by 5.2% to €389.2 million whilst total liabilities are projected to go up by 2.2% to €275.3 million. Premier’s total debt is forecasted to increase to €225.5 million, which however is largely composed of lease liabilities totalling €133.6 million.
• With the expansion in the company’s equity base to €113.9 million, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 66.4% compared to 67.2% as at the end of 2022. Meanwhile, the net debt-to-EBITDA multiple is forecasted to remain at 2.1 times as the projected €32 million increase in net debt to €194.1 million is offset by the continued growth in EBITDA.