Board Change • May 21
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 4 non-independent directors. Member of Statutory Auditors Norberto Mariani was the last director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 13
G.M. Leather S.p.A., Annual General Meeting, Apr 28, 2026 G.M. Leather S.p.A., Annual General Meeting, Apr 28, 2026, at 10:30 W. Europe Standard Time. Announcement • Feb 28
G.M. Leather S.p.A. has completed a Follow-on Equity Offering in the amount of €4.494298 million. G.M. Leather S.p.A. has completed a Follow-on Equity Offering in the amount of €4.494298 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 3,149,560
Price\Range: €0.76
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 2,763,990
Price\Range: €0.76
Transaction Features: Rights Offering Announcement • Apr 15
G.M. Leather S.p.A., Annual General Meeting, Apr 29, 2025 G.M. Leather S.p.A., Annual General Meeting, Apr 29, 2025, at 17:30 W. Europe Standard Time. Reported Earnings • Sep 30
First half 2024 earnings released First half 2024 results: Revenue: €19.3m (down 13% from 1H 2023). Net income: €258.1k (down 77% from 1H 2023). Profit margin: 1.3% (down from 5.1% in 1H 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Luxury industry in Europe. New Risk • Sep 27
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.0% Last year net profit margin: 4.4% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings have declined by 8.6% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.0% net profit margin). Market cap is less than US$100m (€13.1m market cap, or US$14.7m). New Risk • Jun 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.5x net interest cover). Revenue has declined by 0.09% over the past year. High level of non-cash earnings (36% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Market cap is less than US$100m (€15.5m market cap, or US$16.9m). Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to €1.39, the stock trades at a trailing P/E ratio of 8x. Average forward P/E is 18x in the Luxury industry in Germany. Negligible returns to shareholders over past year. New Risk • Apr 22
New major risk - Revenue and earnings growth Revenue has declined by 0.09% over the past year. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.5x net interest cover). Revenue has declined by 0.09% over the past year. High level of non-cash earnings (36% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (€12.6m market cap, or US$13.4m). Reported Earnings • Apr 15
Full year 2023 earnings released Full year 2023 results: Revenue: €41.7m (flat on FY 2022). Net income: €2.04m (up 1.4% from FY 2022). Profit margin: 4.9% (up from 4.8% in FY 2022). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Luxury industry in Europe. New Risk • Apr 14
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (2.8% operating cash flow to total debt). Revenue has declined by 8.1% over the past year. High level of non-cash earnings (30% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Short dividend paying track record (1 year of continuous dividend payments). Market cap is less than US$100m (€12.5m market cap, or US$13.3m). New Risk • Dec 11
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.6% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (2.8% operating cash flow to total debt). Revenue has declined by 8.1% over the past year. High level of non-cash earnings (30% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (€16.4m market cap, or US$17.6m).