Guinness Peat Group revenue decreased on 5.7% in 2015 and EBITDA Margin increased slightly on 0.92 pp from 9.6% to 10.5%
25 Feb 2016 • About Guinness Peat Group (
$GPG) • By InTwits
Guinness Peat Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Guinness Peat Group is a company in decline: 2015 revenue growth was -5.7%, 5 years revenue CAGR was -2.2%
- EBITDA Margin is quite volatile: 10.5% in 2015, 9.6% in 2014, 6.5% in 2013, 0.5% in 2012, 8.2% in 2011
- Guinness Peat Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: 44.1 in 2015, 46 in 2014, 9.4 in 2013, 42.8 in 2012, 62.6 in 2011
- The company has highly profitable business model: ROIC is at 13.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Guinness Peat Group ($GPG) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,699 | 1,653 | 1,704 | 1,561 | 1,473 | -5.7% |
| Gross Profit | 597 | 457 | 595 | 568 | 535 | -5.8% |
| SG&A | 508 | 499 | 534 | 469 | 433 | -7.6% |
| EBITDA | 140 | 8 | 111 | 150 | 155 | 3.3% |
| Net Income | 2 | -46 | 36 | 15 | -51 | -437.3% |
Balance Sheet
|
|---|
| Cash | 428 | 523 | 759 | 739 | 650 | -12.1% |
| Short Term Debt | 409 | 44 | 83 | 114 | 20 | -82.2% |
| Long Term Debt | 335 | 452 | 371 | 305 | 389 | 27.7% |
Cash flow
|
|---|
| Capex | 63 | 43 | 9 | 46 | 44 | -4.1% |
Ratios
|
|---|
| Revenue growth | 3.1% | -2.7% | 3.1% | -8.4% | -5.7% | |
| EBITDA growth | -17.9% | -94.3% | 1,301.8% | 35.0% | 3.3% | |
| Gross Margin | 35.1% | 27.6% | 34.9% | 36.4% | 36.3% | -0.1% |
| EBITDA Margin | 8.2% | 0.5% | 6.5% | 9.6% | 10.5% | 0.9% |
| Net Income Margin | 0.1% | -2.8% | 2.1% | 1.0% | -3.4% | -4.4% |
| SG&A, % of revenue | 29.9% | 30.2% | 31.3% | 30.0% | 29.4% | -0.6% |
| CAPEX, % of revenue | 3.7% | 2.6% | 0.6% | 2.9% | 3.0% | 0.0% |
| ROIC | 3.6% | -3.0% | 5.1% | 10.0% | 13.7% | 3.8% |
| ROE | 0.1% | -5.6% | 5.2% | 2.7% | -14.3% | -17.0% |
| Net Debt/EBITDA | 2.3x | -3.5x | -2.7x | -2.1x | -1.6x | 0.6x |
Revenue and profitability
Guinness Peat Group's Revenue decreased on 5.7% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.92 pp from 9.6% to 10.5% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased slightly on 0.60 pp from 30.0% to 29.4% in 2015.
Net Income marign decreased on 4.4 pp from 0.96% to -3.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.0%. Guinness Peat Group's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at low but positive ROIC (13.71%) and negative ROE (-14.34%). ROIC increased on 3.8 pp from 10.0% to 13.7% in 2015. ROE dropped on 17.0 pp from 2.7% to -14.3% in 2015.
Leverage (Debt)
Debt level is -1.6x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA jumped on 0.6x from -2.1x to -1.6x in 2015. Debt decreased on 2.1% in 2015 while cash dropped on 12.1% in 2015.
Appendix 1: Peers in Financial Services
Below we provide Guinness Peat Group benchmarking against other companies in Financial 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 |
|---|
| First Property Group ($FPO) | | 31.4% | 13.9% | 69.7% | 2.6% |
| Afh Financial Group ($AFHP) | | | 49.9% | 39.3% | 39.5% |
| Fairpoint Group ($FRP) | -12.0% | 32.7% | -17.5% | 35.1% | |
| Commercial Bank Of Qatar(The) ($CBQS) | | 5.7% | 19.3% | 26.1% | -4.2% |
| Hargreaves Lansdown ($HL.) | | 14.8% | 22.5% | 22.6% | 10.3% |
| |
|---|
| Median (30 companies) | 4.3% | 5.6% | 14.7% | 6.8% | 4.5% |
|---|
| Guinness Peat Group ($GPG) | | -2.7% | 3.1% | -8.4% | -5.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Record ($REC) | 99.6% | 98.8% | 98.8% | 99.6% | 99.3% |
| Panmure Gordon & Co ($PMR) | 93.9% | 95.2% | 95.0% | 95.3% | |
| Schroders ($SDRC) | 75.8% | 76.9% | 76.2% | 77.7% | |
| London Capital Group Hldgs ($LCG) | 64.7% | 64.2% | 70.5% | 73.6% | |
| Walker Crips Group ($WCW) | 74.5% | 71.8% | 58.0% | 68.2% | 66.7% |
| |
|---|
| Median (15 companies) | 64.7% | 56.8% | 53.3% | 53.0% | 52.3% |
|---|
| Guinness Peat Group ($GPG) | 35.1% | 27.6% | 34.9% | 36.4% | 36.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Livermore Investments Group Ltd ($LIV) | 92.1% | 84.9% | 64.8% | 78.8% | |
| Real Estate Credit Investments Pcc ($RECP) | | 58.6% | 89.3% | 77.0% | 80.3% |
| Efg Hermes Hldgs ($EFGD) | 67.0% | 66.0% | 61.4% | 63.1% | |
| Hargreaves Lansdown ($HL.) | 61.0% | 64.1% | 66.4% | 58.7% | 51.2% |
| Manx Financial Group ($MFX) | 24.2% | 39.8% | 49.2% | 56.5% | |
| |
|---|
| Median (26 companies) | 17.7% | 14.9% | 17.0% | 16.8% | 19.5% |
|---|
| Guinness Peat Group ($GPG) | 8.2% | 0.5% | 6.5% | 9.6% | 10.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Daishin Securities Co ($DSS) | 2.8% | 6.0% | 24.7% | 15.0% | 6.5% |
| Efg Hermes Hldgs ($EFGD) | 4.9% | 5.6% | 4.4% | 6.0% | |
| Fulcrum Utility Services Ld ($FCRM) | | 5.4% | 5.0% | 3.7% | 0.1% |
| London Capital Group Hldgs ($LCG) | 5.7% | 1.8% | 0.2% | 3.4% | |
| Commercial Bank Of Qatar(The) ($CBQS) | 3.0% | 6.0% | 3.8% | 2.8% | 3.9% |
| |
|---|
| Median (29 companies) | 1.1% | 1.3% | 1.4% | 1.3% | 0.7% |
|---|
| Guinness Peat Group ($GPG) | 3.7% | 2.6% | 0.6% | 2.9% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hargreaves Lansdown ($HL.) | 133.9% | 108.7% | 111.7% | 101.0% | 87.5% |
| Manx Financial Group ($MFX) | -1.2% | 8.0% | 19.7% | 29.7% | |
| Record ($REC) | 44.4% | 23.8% | 19.6% | 20.2% | 20.2% |
| S & U ($46IE) | | 17.6% | 19.1% | 19.7% | 13.9% |
| Fairpoint Group ($FRP) | -2.1% | 18.6% | 9.0% | 19.4% | |
| |
|---|
| Median (30 companies) | 5.5% | 5.5% | 6.3% | 8.9% | 10.6% |
|---|
| Guinness Peat Group ($GPG) | 3.6% | -3.0% | 5.1% | 10.0% | 13.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Private & Commercial Finance Group ($PCF) | 16.0x | 12.8x | 14.3x | 13.9x | 12.9x |
| Daishin Securities Co ($DSS) | 0.8x | 1.5x | 2.4x | 10.7x | 8.0x |
| First Property Group ($FPO) | 5.6x | 3.6x | 3.0x | 5.6x | 12.3x |
| Livermore Investments Group Ltd ($LIV) | 4.9x | 3.8x | 4.6x | 3.4x | |
| S & U ($46IE) | | 1.4x | 1.3x | 1.7x | 3.1x |
| |
|---|
| Median (26 companies) | -1.6x | -1.0x | -1.0x | -2.1x | -0.4x |
|---|
| Guinness Peat Group ($GPG) | 2.3x | -3.5x | -2.7x | -2.1x | -1.6x |
