Managing Partner, VRS (Valuation & Research Specialists)

VRS (Valuation & Research Specialists)

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

Macroeconomics

<ul><li>In 2023, China’s Economy managed to grow by 5.2%.</li><li>This growth is mainly attributed to final consumption expenditure which accounted for the 4.3% growth of the total 5.2% expansion.</li><li>Significant contribution to growth also had the investments with 1.5% contribution and especially the public sector. </li></ul>

In 2023, China’s Economy managed to grow by 5.2%.This growth is mainly attributed to final consumption expenditure which accounted for the 4.3% growth of the total 5.2% expansion.Significant contribution to growth also had the investments with 1.5% contribution and especially the public sector. 

<ul><li>The UK economy is emerging from the dual shocks of the pandemic and the subsequent energy crisis, transitioning into a period of declining inflation and stabilizing output.</li><li>Recent data shows positive economic activity trends, with GDP growth mainly driven by the services sector, while the first quarter of 2024 registered the highest quarterly growth since mid-2022.</li><li>A positive outlook for inflation and interest rates is expected to boost economic confidence, increase consumer spending, and ease costs for businesses.</li></ul>

The UK economy is emerging from the dual shocks of the pandemic and the subsequent energy crisis, transitioning into a period of declining inflation and stabilizing output.Recent data shows positive economic activity trends, with GDP growth mainly driven by the services sector, while the first quarter of 2024 registered the highest quarterly growth since mid-2022.A positive outlook for inflation and interest rates is expected to boost economic confidence, increase consumer spending, and ease costs for businesses.

<ul><li>The Euro area economy narrowly avoided a technical recession in the second half of 2023 and started the new year with mixed macroeconomic fundamentals.</li><li>Although decreasing inflation, solid wage growth, and a robust labor market are expected to boost consumer spending and business confidence, GDP growth rates fell sharply from 3.5% in 2022 to 0.5% in 2023, with private consumption stagnating and investment slowing due to high financing costs and uncertain economic conditions.</li><li>Additionally, exports decreased due to lower foreign demand, although the trade balance remained positive.</li></ul>

The Euro area economy narrowly avoided a technical recession in the second half of 2023 and started the new year with mixed macroeconomic fundamentals.Although decreasing inflation, solid wage growth, and a robust labor market are expected to boost consumer spending and business confidence, GDP growth rates fell sharply from 3.5% in 2022 to 0.5% in 2023, with private consumption stagnating and investment slowing due to high financing costs and uncertain economic conditions.Additionally, exports decreased due to lower foreign demand, although the trade balance remained positive.

Equity Bottom-Up

Fourlis Holdings S.A., commonly referred to as Fourlis S.A., wholesales electric and electronic appliances. The Company also retails home furnishings through the franchise of Ikea stores. The Company also retails sporting goods through the franchise of Intersports stores.

<ul><li>Fourlis Group sales in 2023 increased by 10% on a comparable basis, excluding Intersport Turkey and The Athlete's Foot sales, reaching €521.3m.</li><li>There was a significant increase in EBITDA by 21.8%, reaching €48.2m in 2023, compared to €39.6m in the previous year, due to the rationalization of operating costs and an increase in operating leverage.</li><li>The group's retail business showed robust performance, contributing significantly to overall revenue growth.</li></ul>

Fourlis Group sales in 2023 increased by 10% on a comparable basis, excluding Intersport Turkey and The Athlete's Foot sales, reaching €521.3m.There was a significant increase in EBITDA by 21.8%, reaching €48.2m in 2023, compared to €39.6m in the previous year, due to the rationalization of operating costs and an increase in operating leverage.The group's retail business showed robust performance, contributing significantly to overall revenue growth.

Fourlis Holdings S.a - FY2023 Results Presentation

FX & Rates

The euro is the official currency of the European Economic & Monetary Union.  The US dollar is the official currency of the United States of America.

<ul><li>During the period under consideration, i.e. February 28th , 2024 to March 29th, 2024, the EUR/JPY exchange rate fluctuated between 160.55 and 165.17.</li><li>The MA-10 line was moving above the MA-20 line for the first two weeks, and then it crossed below the MA-20, maintaining a steady movement until it crossed over again on March 22nd MA-20 line retained upward trend throughout the entire period.</li><li>Based on Graph 2, the CCI (red line) was moving downwards at the beginning of the period under consideration but after March 12th the movement changed to the opposite direction.</li></ul>

During the period under consideration, i.e. February 28th , 2024 to March 29th, 2024, the EUR/JPY exchange rate fluctuated between 160.55 and 165.17.The MA-10 line was moving above the MA-20 line for the first two weeks, and then it crossed below the MA-20, maintaining a steady movement until it crossed over again on March 22nd MA-20 line retained upward trend throughout the entire period.Based on Graph 2, the CCI (red line) was moving downwards at the beginning of the period under consideration but after March 12th the movement changed to the opposite direction.

Comment on Exchange Rate - EUR/JPY - March 29, 2024