G.M. Leather S.p.A.
On 11 July 2022 G.M. Leather S.p.A. announces that it has received from Borsa Italiana the order for the admission of the Company’s Ordinary Shares and Warrants on “Euronext Growth Milan”, a multilateral negotiations system organized and managed by Borsa Italiana. Negotiations began on 13 July 2022.
The total equivalent of the resources collected through the placement is approximately Euro 4,000,000.
The enterprise G.M. Leather S.p.A. is a company established in 2011 and is the head of the G.M. Group, founded in 1976 by Marcigaglia Family through the establishment of the companies, currently wholly owned by the Issuer, SNAM di Marcigaglia Antonio & C S.r.l. (“Snam”) and subsequently of Genesi S.r.l. (“Genesis”), and has been active for over 45 years in the processing and marketing of leather intended for the manufacture of products for the furniture, leather goods, fashion, tanneries, and automotive aftermarket sectors.
Ultima Ricerca G.M. Leather S.p.A.
UPDATE| In FY24A, Simone reported a Value of Production of € 17.58 million, representing a 6.8% decrease compared to the € 18.87 million recorded in FY23A, and falling short by 8.2% relative to the previous report’s estimate of € 19.15 million. EBITDA for FY24A amounted to € 2.08 million, marking a decline from € 3.02 million in FY23A (-31.1%). EBIT, after depreciation and amortization totalling € 1.33 million, amounted to € 0.75 million, down from € 1.98 million in the previous year. Net income amounted to € 0.90 million, below the € 1.21 million recorded in FY23A, reflecting the lower operating profitability for the year. Net income amounted to € 0.90 million, below the € 1.21 million recorded in FY23A, reflecting the lower operating profitability for the year. Estimates and Valuation Update In light of the results published in the annual report for FY24A, we have adjusted our estimates for both the current year and the following years. In particular, we estimate an FY25E value of production of € 17.60 million, and an EBITDA of € 2.40 million, corresponding to a margin of 13.6%. In the following years, we expect the value of production to reach € 19.40 million (CAGR 24A-27E: 3.3%) in FY27E, with EBITDA equal to € 4.10 million (corresponding to a margin of 21.1%), up from € 2.08 million in FY24A (corresponding to an EBITDA margin of 11.8%). From a balance sheet perspective, based on our estimates, the Net Financial Position (NFP) is expected to reach a cash positive value of € 1.33 million in FY25E. We conducted our valuation of the equity value of Simone based on the DCF method and multiples of a sample of comparable companies. The DCF method (including, for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 24.3 million. Using market multiples, the equity value of Simone was calculated as € 14.8 million (including a 25.0% discount). The result is an average equity value of approximately € 19.5 million. The target price is € 2.60, with a BUY rating and MEDIUM risk. |
