Birmingham International Holdings Ltd revenue growth decelerated from 106% in 2014 to 31.0% in 2015
02/10/2015 • About Birmingham International Holdings Ltd (
$2309) • By InTwits
Birmingham International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Birmingham International Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -18.9%
- The company operates at negative EBITDA Margin: -16.6%
- Birmingham International Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -16.1% for the sames years0
- Birmingham International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 4.5 in FY2015, 13.2 in FY2014, 7.5 in FY2013, 0.97 in FY2012, 25.0 in FY2011
- The company has unprofitable business model: ROIC is at -18.9%
- It operates with high leverage: Net Debt/EBITDA is 15.7x while industry average is -22.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Birmingham International Holdings Ltd ($2309) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 781.4 | 489.9 | 294.5 | 253.2 | 253.6 | 0.1% |
| SG&A | | | | 98.8 | 71.3 | -27.8% |
| EBITDA | 13.8 | 9.2 | -133.2 | -181.9 | -42.2 | -76.8% |
| Net Income | -612.1 | 136.9 | -118.8 | -157.4 | -4.2 | -97.4% |
Balance Sheet
|
|---|
| Cash | 25.5 | 72.6 | 50.0 | 143.0 | 58.8 | -58.9% |
| Short Term Debt | 172.2 | 105.1 | 178.4 | 298.3 | 140.0 | -53.1% |
| Long Term Debt | 8.1 | 7.2 | 2.0 | 0.8 | 43.9 | 5,160.1% |
Cash flow
|
|---|
| Capex | 25.0 | 1.0 | 7.5 | 13.2 | 4.5 | -65.9% |
Ratios
|
|---|
| Revenue growth | 113.8% | -37.3% | -39.9% | -14.0% | 0.1% | |
| EBITDA growth | -487.6% | -33.7% | -1,553.6% | 36.6% | -76.8% | |
| EBITDA Margin | 1.8% | 1.9% | -45.2% | -71.8% | -16.6% | 55.2% |
| Net Income Margin | -78.3% | 27.9% | -40.3% | -62.2% | -1.6% | 60.5% |
| SG&A, % of revenue | | | | 39.0% | 28.1% | -10.9% |
| CAPEX, % of revenue | 3.2% | 0.2% | 2.6% | 5.2% | 1.8% | -3.4% |
| ROIC | -34.4% | -50.9% | -115.7% | -78.6% | -18.9% | 59.7% |
| ROE | | | | | -13.5% | -13.5% |
| Net Debt/EBITDA | 11.2x | 4.3x | | | | 0.0x |
Revenue and profitability
The company's Revenue showed almost no change in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.1 pp from -14.1% to -6.9% in FY2015.
SG&A as a % of Revenue dropped on 10.9 pp from 39.0% to 28.1% in FY2015.
Net Income marign jumped on 60.5 pp from -62.2% to -1.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Birmingham International Holdings Ltd had CAPEX/Revenue of 1.8%. Birmingham International Holdings Ltd showed small growth in CAPEX/Revenue of 1.6 pp from 0.20% in FY2012 to 1.8% in FY2015. It's average CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at negative ROIC (-18.89%) and ROE (-13.45%). ROIC jumped on 59.7 pp from -78.6% to -18.9% in FY2015.
Leverage (Debt)
Debt level is 15.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 38.5% in FY2015 while cash dropped on 58.9% in FY2015.
Appendix 1: Peers in Commercial Services
Below we provide Birmingham International Holdings Ltd benchmarking against other companies in Commercial 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | 24.4% | 52.3% | 64.4% | 36.8% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (56 companies) | 19.5% | 8.0% | 4.5% | 9.4% | 7.1% |
|---|
| Birmingham International Holdings Ltd ($2309) | | -37.3% | -39.9% | -14.0% | 0.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | |
| |
|---|
| Median (53 companies) | 33.4% | 31.6% | 29.9% | 30.9% | 28.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| |
|---|
| Median (56 companies) | 16.4% | 16.0% | 13.4% | 9.3% | 1.7% |
|---|
| Birmingham International Holdings Ltd ($2309) | 1.8% | 1.9% | -45.2% | -71.8% | -16.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (55 companies) | 3.8% | 3.4% | 4.2% | 4.0% | 2.2% |
|---|
| Birmingham International Holdings Ltd ($2309) | 3.2% | 0.2% | 2.6% | 5.2% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | |
| Poly Culture Group Corp Ltd ($3636) | 48.0% | 29.1% | 33.0% | 16.3% | |
| |
|---|
| Median (56 companies) | 5.2% | 6.0% | 4.2% | 3.2% | -0.1% |
|---|
| Birmingham International Holdings Ltd ($2309) | -34.4% | -50.9% | -115.7% | -78.6% | -18.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | |
| |
|---|
| Median (36 companies) | -0.1x | -0.0x | -0.7x | -0.7x | -2.1x |
|---|
