Parity Group revenue increased on 8.2% in 2016
23 Mar 2017 • About Parity Group (
$PTY) • By InTwits
Parity Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is relatively stable: in FY2016 vs. 1.7% in FY2015 vs. 1.3% in FY2012.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Parity Group ($PTY) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 85.887 | 91.949 | 92.264 | 84.842 | 91.764 | 8.2% |
| EBITDA | 1.152 | -0.057 | 1.362 | 1.440 | | -100.0% |
| Net Income | -1.389 | -1.651 | -0.438 | -3.919 | 0.806 | -120.6% |
Balance Sheet
|
|---|
| Cash | 2.871 | 7.376 | 2.974 | 2.648 | | -100.0% |
| Short Term Debt | 8.283 | 9.909 | 9.559 | 10.016 | | -100.0% |
| Long Term Debt | 0.008 | 0.000 | 0.023 | 0.011 | | -100.0% |
Cash flow
|
|---|
| Capex | 0.113 | 0.169 | 0.137 | 0.092 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 7.2% | 7.1% | 0.3% | -8.0% | 8.2% | |
| EBITDA growth | 529.5% | -104.9% | -2,489.5% | 5.7% | | |
| EBITDA Margin | 1.3% | -0.1% | 1.5% | 1.7% | 0.0% | -1.7% |
| Net Income Margin | -1.6% | -1.8% | -0.5% | -4.6% | 0.9% | 5.5% |
| CAPEX, % of revenue | 0.1% | 0.2% | 0.1% | 0.1% | | -0.1% |
| ROIC | 6.0% | -2.2% | 4.8% | 4.3% | | -4.3% |
| ROE | -28.9% | -24.4% | -4.7% | -52.6% | | 52.6% |
| Net Debt/EBITDA | 4.7x | | 4.9x | 5.1x | | -5.1x |
Revenue and profitability
The company's Revenue increased on 8.2% in FY2016.
Net Income marign increased on 5.5 pp from -4.6% to 0.88% in FY2016.
Appendix 1: Peers in Software & Computer Services
Below we provide Parity Group benchmarking against other companies in Software & Computer Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coms ($COMS) | | 46.8% | 763.3% | 110.4% | 36.1% |
| Centralnic Group ($CNIC) | 15.9% | 4.0% | 98.9% | 71.3% | |
| Proactis Holdings ($PHD) | | 7.0% | 26.2% | 69.6% | 12.5% |
| Progility ($PGY) | | | | 51.0% | 3.2% |
| Galasys ($GLS) | 14.3% | 20.9% | 311.1% | 33.0% | |
| |
|---|
| Median (45 companies) | 10.5% | 5.7% | 4.7% | 4.1% | 10.4% |
|---|
| Parity Group ($PTY) | | 7.1% | 0.3% | -8.0% | 8.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lombard Risk Management ($LRM) | 99.0% | 98.8% | 99.2% | 98.6% | 99.3% |
| Phoenix It Group ($PNX) | 97.0% | 97.2% | 97.6% | 97.9% | |
| Wandisco ($WAND) | 91.8% | 80.3% | 80.7% | 93.2% | 88.1% |
| Netcall ($NET) | 88.2% | 89.7% | 91.0% | 90.9% | 91.2% |
| Idox ($IDOX) | 90.4% | 90.8% | 89.4% | 89.3% | 86.8% |
| |
|---|
| Median (39 companies) | 62.7% | 62.0% | 58.0% | 60.2% | 59.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mail.Ru Group Ltd ($61HE) | 43.1% | 47.4% | 50.5% | 34.6% | 35.2% |
| Dotdigital Group ($DOTD) | 31.4% | 39.4% | 29.2% | 32.0% | 30.4% |
| Idox ($IDOX) | 30.9% | 26.1% | 26.0% | 28.6% | 27.3% |
| Galasys ($GLS) | 44.0% | 83.6% | 32.6% | 28.5% | |
| Oxford Metrics ($OMG) | 15.7% | 6.0% | 14.7% | 28.4% | 23.1% |
| |
|---|
| Median (45 companies) | 14.3% | 13.4% | 13.0% | 12.5% | 11.0% |
|---|
| Parity Group ($PTY) | 1.3% | -0.1% | 1.5% | 1.7% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rapidcloud Intl ($RCI) | 1.0% | 23.1% | 11.6% | 19.6% | |
| Coms ($COMS) | 0.5% | 0.9% | 3.4% | 7.5% | 0.1% |
| Csf Group ($CSFG) | 1.5% | 4.0% | 2.4% | 7.1% | 4.9% |
| Nasstar ($NASA) | 17.9% | | 2.1% | 5.2% | |
| Unisys Corp ($USY) | 2.1% | 2.5% | 4.1% | 5.0% | 3.0% |
| |
|---|
| Median (45 companies) | 1.5% | 1.6% | 1.9% | 1.3% | 1.3% |
|---|
| Parity Group ($PTY) | 0.1% | 0.2% | 0.1% | 0.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rm ($RM.) | | 48.6% | 130.8% | 289.2% | 263.8% |
| Triad Group ($TRD) | 4.1% | -3.8% | 24.5% | 61.5% | 74.4% |
| Dotdigital Group ($DOTD) | 26.4% | 38.0% | 28.5% | 31.4% | 28.9% |
| International Bus Mach Corp ($IBM) | 36.1% | 31.0% | 28.1% | 25.7% | 18.7% |
| Galasys ($GLS) | 58.7% | 60.9% | 40.8% | 22.2% | |
| |
|---|
| Median (45 companies) | 13.5% | 11.6% | 9.8% | 7.7% | 9.7% |
|---|
| Parity Group ($PTY) | 6.0% | -2.2% | 4.8% | 4.3% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progility ($PGY) | 2.0x | | 1.8x | 12.8x | 6.8x |
| Nasstar ($NASA) | -5.3x | | 0.0x | 1.9x | |
| Phoenix It Group ($PNX) | 4.3x | | | 1.9x | |
| International Bus Mach Corp ($IBM) | 0.9x | 1.2x | 1.4x | 1.7x | 2.2x |
| Idox ($IDOX) | 1.3x | 1.3x | 1.0x | 1.3x | 1.2x |
| |
|---|
| Median (35 companies) | -0.5x | -0.5x | -0.4x | -0.6x | -0.8x |
|---|
| Parity Group ($PTY) | 4.7x | | 4.9x | 5.1x | |
