Page 11 - Paragon Annual Report

Statement from our CFO
Laurent T. Salmon
Group Chief Financial Officer
Group sales for 2017 have reached €442 million, 11% ahead of prior year (2016: €400 million). The Group proforma sales are now €642 million due to recent acquisitions, a 60% increase compared to June 2016.
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This continues our unbroken cycle of significant growth, which now extends to more than a decade.
Group EBITDA has increased by over €10 million, a 53% increase from 2016. Our consolidated EBITDA reached €31 million in June 2017
(2016: €20 million).
More importantly, the Group proforma EBITDA is now at €41 million, a 105% increase compared to the EBITDA reported in June 2016.
The EBIT of the Group has increased to €18 million (2016: €8million), a 128% increase year-on-year and also a €10 million improvement on 2016.
Strong performance delivered through strict financial and operational discipline
We continue to manage the Group with robust operational and financial discipline and to apply this approach as we acquire and integrate companies. We prepare and execute detailed post-acquisition plans to extract operational and procurement synergies identified during comprehensive due diligence processes.
Continuous improvement programmes (CIPs) are operational across Paragon and are introduced and tracked in acquired companies to ensure that they adhere to the Group’s relentless push towards greater operating efficiency.
All group companies operate with a discipline of monthly management reviews to discuss performance and outlook, with specific focus on sales development and pipeline, cost control and management, cash flow forecasting, working capital management, and disciplined capital expenditure planning based on strict ROI parameters.
Favourable Debt and
financing position
With €44 million cash available on our Consolidated Statement of Financial Position (2016: €26 million), the Group’s prospects for future acquisitions remain positive, especially in light of an
economic climate that remains favourable to consolidation.
SALES
€442 million Revenue +11% on prior year
€642 million Proforma Revenue +60% on prior year
The Group issued €52 million of Euro Private Placement Bonds on the Luxemburg bond market in December 2016. These bonds, repayable entirely
in 7 years time (December 2023), currently
carry a 4% interest rate that is capped at
5%, depending on Group leverage. The
bonds have been issued in order to
facilitate the Paragon Group’s strategy
on acquisition, as demonstrated with
recent acquisitions across Europe.
Following our recent year-end acquisitions, the Group Net Debt multiple remains very low at 2.1x, leaving significant headroom for further market consolidation.
Acquisitions & listed subsidiary companies
EBITDA
€31 million EBITDA +53% on prior year
€41million
Proforma EBITDA
+105% on prior year
DEBT & EARNINGS
The Group has acquired eight businesses since June 2016, making 2017 another year of solid external growth. These acquisitions have propelled the Group proforma sales to €642 million, a 60% increase in comparison to the June 2016 figures.
In addition, Paragon now controls two publicly listed companies.
Net debt / Proforma EBITDA 2.1 X
€12 million net profit after tax, an 80% increase on last year
Paragon Group Limited – 05258175