Minerva Equity Limited - 31 March 2019 Final 19.08.2019 - Flipbook - Page 12
Minerva Equity Limited (formerly DMWSL 881 Limited)
Financial review (continued)
Trading performance (continued)
The EBITDA margin of 5.7% is testament to the robustness and focus of the businesses within the
Group. The margin should be considered in the context of the proforma information set out below
and reflects the mix of margin from the businesses in the Group.
As discussed in the Chief Executive’s report, the Group has a strong order book, standing at £3.1
billion (including extensions) at 31 March 2019, which is equivalent to c. 3 years’ turnover.
Exceptional costs reflect one-off transaction costs and also costs incurred in the integration of the
acquired businesses into the Group.
Proforma financial information
Proforma Profit and loss account for the period
ended 31 March (unaudited)
Turnover
EBITDA
EBITDA margin
2019
£ million
1,224.5
70.8
5.8%
The table above has been prepared as if all the companies in the Group at the period end had been
in ownership for a full year.
On 4 April 2019 additional senior loan was drawn amounting to £35 million in order to fund the
acquisitions of Industrial Water Jetting Systems Group Limited, Avonline Network Services Holdings
Limited, The Tomato Plant Company Limited and Antagrade Electrical Limited.
Bank financing and interest
The Group is financed by bank finance (senior debt). The financial covenants associated with the
senior debt is monitored closely to ensure there is adequate covenant headroom over the life of the
facilities. Interest on the senior debt is settled in cash.
The total bank loans at the period-end were £355 million. Combined with the cash at bank at 31
March 2019 of £56.3 million and finance leases of £20.3 million gave net third party debt (ie gross
debt less cash) at £319.0 million, or c. 4.5 times proforma EBITDA.
The net interest cost in the period amounted to £31.2 million of which £14.3 million relates to senior
debt interest. Interest cover, that is the number of times the senior debt interest can be paid from
proforma EBITDA, was c. 5.0 times.
Financial instruments
The Group is exposed to interest rates based on LIBOR. Interest on approximately 60% of the
outstanding bank debt is fixed via interest rate swap agreements that fix LIBOR at c. 1.081% to 26
July 2021. The fair value of these swaps at the period-end amounted to approximately (£0.9) million.
Taxation
The tax charge is £0.9 million on loss on ordinary activities before taxation of £18.6 million. The
analysis of the tax charge and tax reconciliation is set out in note 11 to the financial statements.
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