Avesco Group EBITDA surged on 43.1% in 2015 and EBITDA Margin increased on 5.3 pp from 14.9% to 20.2%
12 Jan 2016 • About Avesco Group (
$AVS) • By InTwits
Avesco Group reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Avesco Group has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.6%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 4.1 in FY2015, 4.0 in FY2014, 2.4 in FY2013, 1.3 in FY2012, 0.52 in FY2011
- The company has highly profitable business model: ROIC is at 13.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Avesco Group ($AVS) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 125.5 | 143.5 | 124.0 | 126.4 | 133.7 | 5.8% |
| Gross Profit | 42.6 | 50.2 | 43.6 | 46.2 | 50.6 | 9.6% |
| SG&A | | 0.6 | | | 0.6 | |
| EBITDA | 18.3 | 24.3 | 10.1 | 18.9 | 27.0 | 43.1% |
| Net Income | -0.1 | 1.9 | 35.1 | -1.5 | 3.0 | -295.9% |
Balance Sheet
|
|---|
| Cash | 7.5 | 4.3 | 43.7 | 9.1 | 12.7 | 40.6% |
| Short Term Debt | 5.5 | 7.4 | 7.9 | 7.9 | 8.3 | 5.6% |
| Long Term Debt | 14.2 | 21.7 | 13.5 | 22.6 | 21.9 | -3.3% |
Cash flow
|
|---|
| Capex | 18.0 | 32.5 | 16.4 | 23.5 | 19.2 | -18.1% |
Ratios
|
|---|
| Revenue growth | 7.1% | 14.3% | -13.5% | 1.9% | 5.8% | |
| EBITDA growth | -2.8% | 32.3% | -58.4% | 87.0% | 43.1% | |
| Gross Margin | 33.9% | 35.0% | 35.2% | 36.6% | 37.9% | 1.3% |
| EBITDA Margin | 14.6% | 16.9% | 8.1% | 14.9% | 20.2% | 5.3% |
| Net Income Margin | -0.1% | 1.3% | 28.3% | -1.2% | 2.3% | 3.5% |
| SG&A, % of revenue | | 0.4% | | | 0.5% | 0.5% |
| CAPEX, % of revenue | 14.3% | 22.7% | 13.2% | 18.6% | 14.4% | -4.2% |
| ROIC | 0.8% | 7.7% | -10.6% | 1.1% | 13.1% | 12.0% |
| ROE | -0.4% | 4.9% | 62.8% | -2.9% | 9.1% | 12.1% |
| Net Debt/EBITDA | 0.7x | 1.0x | -2.2x | 1.1x | 0.6x | -0.5x |
Revenue and profitability
The company's Revenue increased on 5.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 23.7 pp from -31.8% to -8.1% in 2015.
Gross Margin increased slightly on 1.3 pp from 36.6% to 37.9% in FY2015.
Net Income marign increased on 3.5 pp from -1.2% to 2.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Avesco Group had CAPEX/Revenue of 14.4%. The company's CAPEX/Revenue decreased on 8.3 pp from 22.7% in FY2012 to 14.4% in FY2015. Average CAPEX/Revenue for the last three years was 15.4%.Avesco Group invested a large share of EBITDA (71.3%) to CAPEX.
Return on investment
The company operates at good ROIC (13.05%) while ROE is low (9.13%). ROIC surged on 12.0 pp from 1.1% to 13.1% in FY2015. ROE jumped on 12.1 pp from -2.9% to 9.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 0.5x from 1.1x to 0.6x in FY2015. Debt decreased slightly on 0.96% in FY2015 while cash surged on 40.6% in FY2015.
Appendix 1: Peers in Media
Below you can find Avesco Group benchmarking vs. other companies in Media industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Porta Communications ($PTCM) | | 970.2% | 10.7% | 150.9% | |
| Grupo Clarin Sa ($GCLA) | 22.2% | 21.4% | 24.6% | 39.8% | |
| Tangent Communications ($TNG) | | -3.0% | 11.8% | 11.3% | -2.9% |
| Haynes Publishing Group ($HYNS) | | -8.9% | -7.3% | 6.0% | -11.0% |
| Naspers ($NPSN) | | 15.7% | 10.2% | 4.8% | 6.7% |
| |
|---|
| Median (18 companies) | 7.1% | -4.1% | -6.6% | 0.0% | -2.9% |
|---|
| Avesco Group ($AVS) | | 14.3% | -13.5% | 1.9% | 5.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Porta Communications ($PTCM) | 96.1% | 55.3% | 89.2% | 83.4% | |
| Jaywing ($JWNG) | 80.5% | 79.8% | 76.8% | 81.0% | 89.0% |
| Brainjuicer Group ($BJU) | 77.6% | 77.2% | 78.0% | 78.8% | |
| Tangent Communications ($TNG) | 49.0% | 54.5% | 57.6% | 60.3% | 58.8% |
| Mood Media Corp ($MM.) | 61.6% | 58.6% | 54.4% | 53.9% | |
| |
|---|
| Median (18 companies) | 44.2% | 42.0% | 42.3% | 43.7% | 42.2% |
|---|
| Avesco Group ($AVS) | 33.9% | 35.0% | 35.2% | 36.6% | 37.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dq Entertainment ($DQE) | 36.5% | 42.8% | 49.2% | 62.4% | 59.1% |
| Haynes Publishing Group ($HYNS) | 30.2% | 25.7% | 23.4% | 38.8% | 33.5% |
| Quarto Group Inc ($QRT) | 19.9% | 20.0% | 25.9% | 27.8% | |
| Grupo Clarin Sa ($GCLA) | 26.5% | 24.5% | 23.7% | 25.7% | |
| Cellcast Group ($CLTV) | 3.0% | 0.5% | -6.3% | 22.6% | |
| |
|---|
| Median (17 companies) | 9.3% | 11.7% | 12.6% | 10.9% | 7.6% |
|---|
| Avesco Group ($AVS) | 14.6% | 16.9% | 8.1% | 14.9% | 20.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Grupo Clarin Sa ($GCLA) | 15.9% | 12.2% | 13.2% | 12.8% | |
| Mood Media Corp ($MM.) | 7.0% | 8.6% | 6.4% | 6.9% | |
| Trader Media East ($TME) | 5.0% | 4.6% | 3.1% | 3.8% | |
| Porta Communications ($PTCM) | 10.5% | 2.2% | 2.0% | 2.7% | |
| Johnston Press ($JPR) | 0.5% | 1.4% | 1.5% | 2.7% | |
| |
|---|
| Median (17 companies) | 1.3% | 1.4% | 2.0% | 1.7% | 1.4% |
|---|
| Avesco Group ($AVS) | 14.3% | 22.7% | 13.2% | 18.6% | 14.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Brainjuicer Group ($BJU) | 47.0% | 24.3% | 49.0% | 60.0% | |
| Grupo Clarin Sa ($GCLA) | 21.7% | 21.6% | 21.8% | 29.8% | |
| Independent News & Media ($INM) | -3.0% | -43.9% | 136.2% | 29.6% | |
| Haynes Publishing Group ($HYNS) | 20.1% | 12.8% | 9.4% | 12.5% | 9.4% |
| Dq Entertainment ($DQE) | 8.2% | 9.3% | 8.9% | 12.1% | 7.0% |
| |
|---|
| Median (19 companies) | 4.6% | 5.0% | 4.2% | 2.1% | 2.7% |
|---|
| Avesco Group ($AVS) | 0.8% | 7.7% | -10.6% | 1.1% | 13.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Johnston Press ($JPR) | | 5.8x | | 11.4x | |
| Mood Media Corp ($MM.) | 6.7x | 5.2x | 8.1x | 8.2x | |
| Porta Communications ($PTCM) | | | | 3.4x | |
| Jaywing ($JWNG) | 0.2x | 0.7x | 0.7x | 3.3x | 1.9x |
| Independent News & Media ($INM) | | | 0.8x | 2.9x | |
| |
|---|
| Median (14 companies) | 0.2x | 1.1x | 1.2x | 1.3x | 1.6x |
|---|
| Avesco Group ($AVS) | 0.7x | 1.0x | -2.2x | 1.1x | 0.6x |
