Anite reports 265% Net Income growth and 8.4% Revenue growth
01 Jul 2015 • About Anite (
$AIE) • By InTwits
Anite reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anite has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's a lot of higher than industry average of 2.2%.
- CAPEX is quite volatile: 2.1 in 2015, 2.6 in 2014, 2.4 in 2013, 5.1 in 2012, 4.0 in 2011
- The company has business model with low profitability: ROIC is at 10.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anite ($AIE) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 93.7 | 122.5 | 113.1 | 109.2 | 118.4 | 8.4% |
| Gross Profit | 55.5 | 72.4 | 72.3 | 62.8 | 71.3 | 13.4% |
| SG&A | 23.2 | 26.8 | 24.6 | 22.7 | 34.4 | 51.6% |
| EBITDA | 22.1 | 31.3 | 31.4 | 23.1 | 27.2 | 17.8% |
| Net Income | 9.4 | 18.5 | 19.3 | 12.3 | 44.7 | 264.6% |
Balance Sheet
|
|---|
| Cash | 37.7 | 16.9 | 16.7 | 17.0 | 37.0 | 117.5% |
| Short Term Debt | 10.0 | 0.0 | 17.6 | 10.9 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.8 | 5.0 | 4.4 | 6.4 | 4.3 | -32.4% |
Ratios
|
|---|
| Revenue growth | 18.9% | 30.8% | -7.7% | -3.4% | 8.4% | |
| EBITDA growth | 169.6% | 41.8% | 0.3% | -26.3% | 17.8% | |
| Gross Margin | 59.2% | 59.1% | 63.9% | 57.5% | 60.2% | 2.6% |
| EBITDA Margin | 23.5% | 25.5% | 27.7% | 21.2% | 23.0% | 1.8% |
| Net Income Margin | 10.1% | 15.1% | 17.1% | 11.2% | 37.8% | 26.5% |
| SG&A, % of revenue | 24.8% | 21.9% | 21.8% | 20.8% | 29.1% | 8.3% |
| CAPEX, % of revenue | 3.0% | 4.0% | 3.9% | 5.8% | 3.6% | -2.2% |
| ROIC | 14.8% | 24.4% | 20.4% | 7.4% | 10.0% | 2.6% |
| ROE | 11.8% | 21.2% | 19.2% | 11.1% | 35.5% | 24.3% |
| Net Debt/EBITDA | -1.3x | -0.5x | 0.0x | -0.3x | -1.4x | -1.1x |
Revenue and profitability
The company's Revenue increased on 8.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.8 pp from 15.8% to 10.0% in 2015.
Gross Margin increased on 2.6 pp from 57.5% to 60.2% in FY2015. SG&A as a % of Revenue increased on 8.3 pp from 20.8% to 29.1% in FY2015.
Net Income marign surged on 26.5 pp from 11.2% to 37.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Anite had CAPEX/Revenue of 3.6%. Anite's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 4.5%.
Return on investment
The company operates at good ROE (35.47%) while ROIC is low (10.00%). ROIC increased on 2.6 pp from 7.4% to 10% in FY2015. ROE jumped on 24.3 pp from 11.1% to 35.5% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash surged on 118% in FY2015.
Appendix 1: Peers in Software & Computer Services
Below we provide Anite 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coms ($COMS) | 8.4% | -68.6% | 46.8% | 763.3% | |
| Centralnic Group ($CNIC) | 36.3% | 15.9% | 4.0% | 98.9% | |
| Rapidcloud Intl ($RCI) | 34.2% | 16.4% | 20.9% | 57.1% | |
| Netdimensions(Hldgs)Ltd ($NETD) | 48.5% | 12.5% | 17.5% | 40.1% | |
| Wandisco ($WAND) | 30.0% | 55.5% | 32.8% | 40.0% | |
| |
|---|
| Median (39 companies) | 7.5% | 7.1% | 5.7% | 4.4% | 12.6% |
|---|
| Anite ($AIE) | | 30.8% | -7.7% | -3.4% | 8.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lombard Risk Management ($LRM) | 99.3% | 99.0% | 98.8% | 99.2% | 98.6% |
| Phoenix It Group ($PNX) | 97.1% | 97.0% | 97.2% | 97.6% | 97.9% |
| Netcall ($NET) | 86.9% | 88.2% | 89.7% | 91.0% | |
| Dotdigital Group ($DOTD) | 92.8% | 94.0% | 92.7% | 90.5% | |
| Idox ($IDOX) | 86.6% | 90.4% | 90.8% | 89.4% | |
| |
|---|
| Median (35 companies) | 61.0% | 62.7% | 62.0% | 61.1% | 61.4% |
|---|
| Anite ($AIE) | 59.2% | 59.1% | 63.9% | 57.5% | 60.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eservglobal ($ESG) | 112.6% | -32.2% | -2.6% | 100.2% | |
| Mail.Ru Group Ltd ($61HE) | 39.9% | 43.1% | 47.4% | 50.5% | |
| Lombard Risk Management ($LRM) | 6.2% | 23.9% | 30.8% | 29.3% | 20.5% |
| Dotdigital Group ($DOTD) | 29.1% | 31.4% | 39.4% | 29.2% | |
| Rapidcloud Intl ($RCI) | 47.4% | 46.0% | 52.3% | 28.5% | |
| |
|---|
| Median (41 companies) | 14.2% | 14.3% | 12.0% | 11.1% | 5.4% |
|---|
| Anite ($AIE) | 23.5% | 25.5% | 27.7% | 21.2% | 23.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rapidcloud Intl ($RCI) | 0.7% | 1.0% | 23.1% | 11.6% | |
| Statpro Group ($SOG) | 3.1% | 2.0% | 2.9% | 5.8% | |
| Wandisco ($WAND) | 0.2% | 2.3% | 4.0% | 4.2% | |
| Unisys Corp ($USY) | 2.1% | 2.1% | 2.5% | 4.1% | |
| International Bus Mach Corp ($IBM) | 3.8% | 3.9% | 3.7% | 4.0% | |
| |
|---|
| Median (41 companies) | 1.4% | 1.5% | 1.6% | 1.9% | 1.7% |
|---|
| Anite ($AIE) | 3.0% | 4.0% | 3.9% | 5.8% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eservglobal ($ESG) | 50.0% | -24.8% | -13.0% | 67.9% | |
| Lombard Risk Management ($LRM) | 37.7% | 51.4% | 39.2% | 30.2% | 12.2% |
| Progility ($PGY) | 12.7% | 10.3% | 0.0% | 29.2% | |
| Dotdigital Group ($DOTD) | 36.6% | 26.4% | 38.0% | 28.5% | |
| International Bus Mach Corp ($IBM) | 36.2% | 36.1% | 31.0% | 28.1% | |
| |
|---|
| Median (41 companies) | 12.8% | 10.5% | 10.8% | 9.8% | 11.6% |
|---|
| Anite ($AIE) | 14.8% | 24.4% | 20.4% | 7.4% | 10.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Parity Group ($PTY) | 6.9x | 4.7x | | 4.9x | |
| Escher Group Hldgs ($ESCH) | 2.1x | 0.3x | 0.4x | 2.4x | |
| Ubisense Group ($UBI) | -4.2x | -2.2x | -0.4x | 1.8x | |
| Progility ($PGY) | 1.0x | 2.0x | | 1.8x | |
| International Bus Mach Corp ($IBM) | 0.8x | 0.9x | 1.2x | 1.4x | |
| |
|---|
| Median (33 companies) | -0.6x | -0.6x | -0.6x | -0.1x | -0.5x |
|---|
| Anite ($AIE) | -1.3x | -0.5x | 0.0x | -0.3x | -1.4x |
