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SFPI Group

CR
Bloomberg   SFPI FP
Misc. Bldg & Construct Prod  /  France  Web Site   |   Investors Relation
Safety solutions and safe operations at its heart
Target
Upside 103%
Price (€) 2.41
Market Cap (€M) 239
Debt

The SFPI Group is net cash positive and intends to remain so. This is a reasonable stance as smaller businesses cannot expect much from their banks when the business gets rough.

Rough was effectively the going experienced in Covid-marred 2020 and the recovery process. Furloughed French staff, the working capital release and passing on the 2019 dividend helped nudge the net cash position up to €53m. Things improved further in 2021 in spite of the purchase of treasury shares to the tune of €10m. The net cash position is €65m or c.20% of the market cap.

It is also worth mentioning the built-in safety of relying on the conglomerate-type structure: the businesses are fairly segregated so that one weakness may not impact the group. It is also easier to make quick restructuring decisions and to discuss with unions about changing work practices if this involves only one legal entity. Lastly, the parent holding company was well funded at the close of 2021 with no net debt.

SFPI is small, suffers the various curses of being a listed small cap and has a comparatively legally complex set-up which makes it look like a small industrial conglomerate. To its credit however, it is very transparent about how well the operational units are doing.

Funding - Liquidity
  12/21A 12/22E 12/23E 12/24E
EBITDA €M 62.1 59.9 66.0 66.8
Funds from operations (FFO) €M 54.5 50.0 55.0 55.5
Ordinary shareholders' equity €M 233 259 275 293
Gross debt €M 90.2 125 125 125
   o/w Less than 1 year - Gross debt €M 23.7 25.0 25.0 25.0
   o/w 1 to 5 year - Gross debt €M 63.9 95.0 95.0 95.0
   o/w Beyond 5 years - Gross debt €M 2.65 5.00 5.00 5.00
 + Gross Cash €M 155 153 160 176
 = Net debt / (cash) €M -65.2 -27.6 -35.3 -50.6
Bank borrowings €M 80.0 110 110 110
Financial leases liabilities €M 10.1 10.0 10.0 10.0
Other financing €M 0.10 5.00 5.00 5.00
Gearing (at book value) % -25.5 -17.9 -11.4 -14.7
Equity/Total asset (%) % 72.6 67.9 69.8 73.6
Adj. Net debt/EBITDA(R) x -1.05 -0.46 -0.54 -0.76
Adjusted Gross Debt/EBITDA(R) x 2.65 3.06 2.82 2.80
Adj. gross debt/(Adj. gross debt+Equity) % 41.4 41.4 40.3 39.0
Ebit cover x 106 -53.4 -59.9 -59.3
FFO/Gross Debt % 33.1 27.3 29.5 29.7
FFO/Net debt % -83.5 -181 -156 -110
FCF/Adj. gross debt (%) % 19.5 -0.26 10.6 14.9
(Gross cash+ "cash" FCF+undrawn)/ST debt x 7.91 6.09 7.20 8.13
"Cash" FCF/ST debt x 1.35 0.02 0.83 1.15
Credit Risk
Covenants
Changes to Story : 10/10/2022, Changes to Forecasts : 10/10/2022.