Managing Partner, VRS (Valuation & Research Specialists)

VRS (Valuation & Research Specialists)

Financial analyst specializing on corporate valuation. Long-term experience in analyzing and valuing listed and non listed companies in a wide range of business sectors in Europe, North America and internationally. Some of the sectors covered are financial services, industrials, high technology and real estate. Certified Equity Analyst by the Hellenic Capital Market Commission, Greece. Member of the Hellenic Association of Certified Securities Analysts (HACSA), Greece. Associate Member of the Chartered Institute for Securities & Investment (CISI), UK.

Specialties: Applying methods in corporate valuation, developing valuation models and writing equity research and valuation reports. Consulting services to companies with regard to their valuation drivers and potential corporate value, utilized in corporate deals such as mergers, acquisitions and sale of businesses. Specialized financial translations.

Managing Partner

Valuation & Research Specialists (VRS) is a boutique financial advisor with more than 17 years of experience in Corporate Valuation and Finance, and a diversified client base including some of the largest Companies in Greece.

Since 2002, VRS has completed more than 200 engagements in the areas of business valuation and financial analysis for more than 100 clients in a wide range of industries.

VRS has been honored to work with small and large private and publicly traded companies in Europe and overseas.

Boutique Financial Advisor

Equity Bottom-Up

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<h2>SNC-LAVALIN GROUP INC.</h2>
<h3>Equity Research Flash Note</h3>
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<li>Revenues of SNC-Lavalin Group for 2021 increased to CA$ 7,371mn recording a percentage growth of 5.18% compared to revenues of 2020. All profitability indicators showed a similar upward trend in 2021 (EBIT, EBT, EATAM, EBITDA). Partial or total lifting of restrictive measures across the global economy in 2021 contributed to the company’s fast recovery, setting it back on track to achieve higher profitability during 2022. The estimates for the revenues for 2022 range around CA$ 7,471mn.</li>
<li>SNC-Lavalin Group Inc. has been selected by the U.K. Government Department of Business, Energy and Indus- trial Strategy (BEIS) to develop industrial de-carbonization roadmaps for sites across the U.K. Financial terms were not disclosed. Atkins, a subsidiary of the SNC-Lavalin Group, will work with up to 16 industrial sites to de- velop roadmaps and intervention plans to help them achieve net zero emissions by 2050.SNC-Lavalin will con- centrate its efforts on 'Hard to Abate' industrial sites, such as chemical facilities and the paper and ceramics in- dustries. SNC-Lavalin will use its technology and tools to examine carbon, cost, and engineering solutions and determine the most cost-effective and practical roadmaps for each industrial site.</li>
<li>Company’s revenues come mainly from EDPM, Infrastructure Services, Nuclear and Infrastructure EPC Projects activities, accounting for an amount of 52%, 19%, 12% and 12% respectively of 2021 total revenues. In 2021, Eu- rope’s revenues recorded a 13% increase compared to the revenues of the previous year that mainly stemmed from company’s agreement with the U.K government. At the same time, revenues in Middle East &amp; Africa and Asia Pacific recorded a decrease of 10% and 5% respectively, while revenues of Americas had a low increase, around 5%.</li>
<li>Net income for 2021 amounted to CA$ 672mn compared to the non-profitable (Net loss CA$ 956mn) 2020. For 2022 we expect earnings before taxes to be around CA$344mn partly due to in line implementation of SNC- Lavalin’s Group business plan along with the general uncertainty which was caused of the Russian invasion of Ukraine. All those macroeconomic factors do not allow us to make a safe and accurate prediction for the next fi- nancial years.</li>
<li>Capital Expenditures (Capex) amounted to CA$ 106mn in 2021, compared to CA$ 76mn in 2020. Based on the company’s management, we estimate that Capex will range around CA$ 110mn in 2022 and around CA$ 90- 95mn for the 2023.</li>
<li>SNC-Lavalin Group EBITDA for 2021 increased to CA$ 467mn from CA$ 29mn of 2020. EBITDA stood at CA$273mn until Q2 of 2021 compared to CA$170mn during the corresponding period of 2020, benefiting from the significantly improved performance of the PS&amp;PM investments business unit, as well as from the consistently strong performance of the Infrastructure EPC Projects business unit. We expect EBITDA to range around CA$ 472mn boosted mainly from the main revenue stream of the company, EDPM business unit.</li>
<li>Debt amounted to CA$ 1,959mn as of December 31st, 2021, compared to CA$ 2,195mn in 2020. Based on the company’s reports, we assume that the debt will range around 1,851mn and 1,771mn for 2022 and 2023 respec- tively, continuing the downward trend that has been observed during the last 4-5 years.</li>
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SNC-LAVALIN GROUP INC.
Equity Research Flash Note





Revenues of SNC-Lavalin Group for 2021 increased to CA$ 7,371mn recording a percentage growth of 5.18% compared to revenues of 2020. All profitability indicators showed a similar upward trend in 2021 (EBIT, EBT, EATAM, EBITDA). Partial or total lifting of restrictive measures across the global economy in 2021 contributed to the company’s fast recovery, setting it back on track to achieve higher profitability during 2022. The estimates for the revenues for 2022 range around CA$ 7,471mn.
SNC-Lavalin Group Inc. has been selected by the U.K. Government Department of Business, Energy and Indus- trial Strategy (BEIS) to develop industrial de-carbonization roadmaps for sites across the U.K. Financial terms were not disclosed. Atkins, a subsidiary of the SNC-Lavalin Group, will work with up to 16 industrial sites to de- velop roadmaps and intervention plans to help them achieve net zero emissions by 2050.SNC-Lavalin will con- centrate its efforts on 'Hard to Abate' industrial sites, such as chemical facilities and the paper and ceramics in- dustries. SNC-Lavalin will use its technology and tools to examine carbon, cost, and engineering solutions and determine the most cost-effective and practical roadmaps for each industrial site.
Company’s revenues come mainly from EDPM, Infrastructure Services, Nuclear and Infrastructure EPC Projects activities, accounting for an amount of 52%, 19%, 12% and 12% respectively of 2021 total revenues. In 2021, Eu- rope’s revenues recorded a 13% increase compared to the revenues of the previous year that mainly stemmed from company’s agreement with the U.K government. At the same time, revenues in Middle East &amp; Africa and Asia Pacific recorded a decrease of 10% and 5% respectively, while revenues of Americas had a low increase, around 5%.
Net income for 2021 amounted to CA$ 672mn compared to the non-profitable (Net loss CA$ 956mn) 2020. For 2022 we expect earnings before taxes to be around CA$344mn partly due to in line implementation of SNC- Lavalin’s Group business plan along with the general uncertainty which was caused of the Russian invasion of Ukraine. All those macroeconomic factors do not allow us to make a safe and accurate prediction for the next fi- nancial years.
Capital Expenditures (Capex) amounted to CA$ 106mn in 2021, compared to CA$ 76mn in 2020. Based on the company’s management, we estimate that Capex will range around CA$ 110mn in 2022 and around CA$ 90- 95mn for the 2023.
SNC-Lavalin Group EBITDA for 2021 increased to CA$ 467mn from CA$ 29mn of 2020. EBITDA stood at CA$273mn until Q2 of 2021 compared to CA$170mn during the corresponding period of 2020, benefiting from the significantly improved performance of the PS&amp;PM investments business unit, as well as from the consistently strong performance of the Infrastructure EPC Projects business unit. We expect EBITDA to range around CA$ 472mn boosted mainly from the main revenue stream of the company, EDPM business unit.
Debt amounted to CA$ 1,959mn as of December 31st, 2021, compared to CA$ 2,195mn in 2020. Based on the company’s reports, we assume that the debt will range around 1,851mn and 1,771mn for 2022 and 2023 respec- tively, continuing the downward trend that has been observed during the last 4-5 years.










SNC-LAVALIN GROUP INC - Equity Research Flash Note