Last close As at 05/08/2026
EUR0.79
▲ −0.01 (−1.75%)
Market capitalisation
EUR4m
Research: Consumer
Portobello’s FY23 results demonstrate the primary effects of the out-of-court settlement with respect to VAT and direct taxes (a higher year-end net debt position) and the secondary effects, such as disruption to its trading activities due to management’s focus on cash generation and the company’s inability to trade as previously expected. Following the period end, two capital raises totalling €12.6m, including €3.8m by three of the executive management team, from a maximum mandated amount of €20m, have improved the company’s financial position. The requirement to improve the balance sheet further is likely to necessitate a focus on managing costs and cash generation in FY24. Ahead of the publication of the full financial statements and greater clarity on the company’s trading strategy for the year ahead, we withdraw our estimates.
Portobello SpA |
Focus back on the operations |
FY23 results |
Retail |
24 April 2024 |
Share price performance
Business description
Analysts
Portobello SpA is a research client of Edison Investment Research Limited |
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Portobello’s FY23 results demonstrate the primary effects of the out-of-court settlement with respect to VAT and direct taxes (a higher year-end net debt position) and the secondary effects, such as disruption to its trading activities due to management’s focus on cash generation and the company’s inability to trade as previously expected. Following the period end, two capital raises totalling €12.6m, including €3.8m by three of the executive management team, from a maximum mandated amount of €20m, have improved the company’s financial position. The requirement to improve the balance sheet further is likely to necessitate a focus on managing costs and cash generation in FY24. Ahead of the publication of the full financial statements and greater clarity on the company’s trading strategy for the year ahead, we withdraw our estimates.
Year end |
Revenue (€m) |
PBT* (€m) |
EPS* |
DPS |
P/E |
Yield |
12/22 |
129.9 |
18.6 |
4.63 |
0.0 |
1.2 |
0.0 |
12/23 |
103.5 |
(48.8) |
(11.99) |
0.0 |
N/A |
0.0 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
On a reported basis, FY23’s revenue declined by 20% y-o-y to €103.5m, gross margin declined by 90% to €4.5m and EBITDA moved to a loss of €38.2m from an underlying profit of €24.6m in FY22. The decline primarily reflects the company’s inability to use €22m of advertising space in the period, which management estimates, based on historical data, would have generated at least €44m of additional revenue. On an adjusted basis, management estimates revenue would have increased by 14% to €147.5m and EBITDA would have declined by c 6% to €17m. These compare with our prior FY23 estimates for revenue of €160.8m and EBITDA of €21.9m. Following the opening of six new stores in FY23, post period end three stores were closed as these were deemed unsuitable for the standard format, albeit one closure in Milan will be compensated for by a new store that opened close by in October 2023.
Portobello’s operating cash outflow after interest payments improved significantly to (€10m) in FY23 from (€16.5m) in FY22, as the above losses were offset by a more favourable working capital movement. Investing cash flow also declined significantly, to €4.9m from €8.7m in the prior year.
At the end of FY23, Portobello’s net financial debt position was €49.7m (€42.4m end-FY22) including gross debt of €50.8m and cash and financial receivables of €1.1m.
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Research: Consumer
Intralot enjoyed good underlying trends in performance in FY23 with encouraging trends in its main countries of focus and further progress on profitability. The much-improved balance sheet and extension of debt maturities mean management can focus on the significant business development opportunities available in FY24 and beyond. The share price looks attractive in the absence of potential new contract wins, which could be materially enhancing to the valuation.