Empresaria Group EBITDA surged on 16% in 2015 and EBITDA Margin increased slightly on 0.65 pp from 4.0% to 4.6%
02 Mar 2016 • About Empresaria Group (
$EMR) • By InTwits
Empresaria Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 4.6% in 2015 vs. 4.0% in 2014 vs. 3.0% in 2011
- Empresaria Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has highly profitable business model: ROIC is at 16.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Empresaria Group ($EMR) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 208.9 | 194.3 | 194.4 | 187.9 | 187.3 | -0.3% |
| Gross Profit | 46.9 | 43.9 | 42.6 | 44.6 | 49.2 | 10.3% |
| SG&A | | | 36.6 | 38.0 | 41.2 | 8.4% |
| EBITDA | 6.2 | 6.3 | 6.6 | 7.5 | 8.7 | 16.0% |
| Net Income | 0.3 | 1.4 | 2.4 | 3.5 | 4.4 | 25.7% |
Balance Sheet
|
|---|
| Cash | 6.0 | 6.2 | 5.7 | 7.8 | 7.7 | -1.3% |
| Short Term Debt | 3.0 | 6.4 | 13.6 | 11.2 | 9.9 | -11.6% |
| Long Term Debt | 8.6 | 7.9 | 7.3 | 6.4 | 5.1 | -20.3% |
Cash flow
|
|---|
| Capex | 0.7 | 0.5 | 0.8 | 1.0 | 0.9 | -10.0% |
Ratios
|
|---|
| Revenue growth | 1.0% | -7.0% | 0.1% | -3.3% | -0.3% | |
| EBITDA growth | -25.3% | 1.6% | 4.8% | 13.6% | 16.0% | |
| Gross Margin | 22.5% | 22.6% | 21.9% | 23.7% | 26.3% | 2.5% |
| EBITDA Margin | 3.0% | 3.2% | 3.4% | 4.0% | 4.6% | 0.7% |
| Net Income Margin | 0.1% | 0.7% | 1.2% | 1.9% | 2.3% | 0.5% |
| SG&A, % of revenue | | | 18.8% | 20.2% | 22.0% | 1.8% |
| CAPEX, % of revenue | 0.3% | 0.3% | 0.4% | 0.5% | 0.5% | -0.1% |
| ROIC | 12.2% | 12.4% | 12.6% | 14.4% | 16.1% | 1.7% |
| ROE | 1.2% | 6.3% | 11.4% | 15.4% | 16.1% | 0.7% |
| Net Debt/EBITDA | 0.9x | 1.3x | 2.3x | 1.3x | 0.8x | -0.5x |
Revenue and profitability
The company's Revenue showed almost no change in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.65 pp from 4.0% to 4.6% in 2015.
Gross Margin increased on 2.5 pp from 23.7% to 26.3% in 2015. SG&A as a % of Revenue increased slightly on 1.8 pp from 20.2% to 22.0% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Empresaria Group had CAPEX/Revenue of 0.48%. CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.47%.
Return on investment
The company operates at good ROIC (16.08%) and ROE (16.09%). ROIC increased slightly on 1.7 pp from 14.4% to 16.1% in 2015. ROE increased slightly on 0.70 pp from 15.4% to 16.1% in 2015.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 1.3x to 0.8x in 2015. Debt dropped on 14.8% in 2015 while cash decreased slightly on 1.3% in 2015.
Appendix 1: Peers in Support Services
Below you can find Empresaria Group benchmarking vs. other companies in Support Services 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 |
|---|
| Petards Group ($PEG) | 6.5% | -25.7% | -30.6% | 115.1% | |
| Optimal Payments ($OPAY) | 107.9% | 39.9% | 41.5% | 44.0% | |
| 1Spatial ($SPA) | | 98.7% | 131.4% | 42.7% | 13.5% |
| Inspired Energy ($INSE) | 32.9% | 83.8% | 44.8% | 42.2% | |
| Interquest Group ($ITQ) | 7.8% | -6.8% | 2.0% | 31.2% | |
| |
|---|
| Median (54 companies) | 9.0% | 6.9% | 7.4% | 4.8% | 6.7% |
|---|
| Empresaria Group ($EMR) | | -7.0% | 0.1% | -3.3% | -0.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspired Energy ($INSE) | | 94.6% | 86.8% | 78.7% | |
| Ienergizer Ltd ($IBPO) | 48.1% | 56.2% | 78.4% | 76.8% | 72.7% |
| Vianet Group ($VNET) | 53.1% | 53.3% | 51.3% | 58.8% | 69.2% |
| Prime People ($PRP) | 57.6% | 63.4% | 58.3% | 57.7% | 61.4% |
| Murgitroyd Group ($MUR) | 59.9% | 58.4% | 61.4% | 57.6% | 55.4% |
| |
|---|
| Median (48 companies) | 29.0% | 28.8% | 28.6% | 29.8% | 27.6% |
|---|
| Empresaria Group ($EMR) | 22.5% | 22.6% | 21.9% | 23.7% | 26.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northgate ($67GX) | | 41.2% | 40.4% | 40.6% | 39.4% |
| 21St Century Technology ($C21) | 11.4% | 13.4% | -0.2% | 36.0% | |
| Vp ($VP.) | 24.4% | 23.9% | 24.5% | 24.2% | 26.2% |
| Ienergizer Ltd ($IBPO) | 34.5% | 27.6% | 27.8% | 23.6% | 17.1% |
| Capital Drilling Ltd ($CAPD) | 26.3% | 24.1% | 15.7% | 21.7% | |
| |
|---|
| Median (54 companies) | 7.6% | 6.8% | 6.5% | 6.9% | 7.9% |
|---|
| Empresaria Group ($EMR) | 3.0% | 3.2% | 3.4% | 4.0% | 4.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vp ($VP.) | 15.5% | 21.4% | 17.7% | 21.6% | 25.7% |
| Norish ($NSH) | 5.0% | 10.2% | 1.4% | 15.4% | |
| Capital Drilling Ltd ($CAPD) | 20.5% | 18.9% | 4.9% | 13.9% | |
| Falkland Islands Hldgs ($FKL) | 2.6% | 3.7% | 6.8% | 12.9% | 11.9% |
| Augean ($AUG) | 11.2% | 9.8% | 15.9% | 12.3% | |
| |
|---|
| Median (54 companies) | 0.9% | 1.1% | 1.1% | 1.1% | 1.1% |
|---|
| Empresaria Group ($EMR) | 0.3% | 0.3% | 0.4% | 0.5% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 21St Century Technology ($C21) | 16.2% | 20.3% | -2.9% | 45.6% | |
| Petards Group ($PEG) | 25.6% | 35.5% | -78.0% | 24.7% | |
| Driver Group ($DRV) | 6.5% | 18.7% | 27.9% | 24.0% | 3.2% |
| Optimal Payments ($OPAY) | -2.9% | 7.1% | 27.7% | 23.8% | |
| Premier Farnell ($PFLA) | | 33.2% | 21.0% | 23.2% | 18.5% |
| |
|---|
| Median (54 companies) | 8.9% | 9.7% | 7.9% | 9.3% | 10.7% |
|---|
| Empresaria Group ($EMR) | 12.2% | 12.4% | 12.6% | 14.4% | 16.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspired Energy ($INSE) | -0.8x | 0.8x | 0.6x | 19.4x | |
| Mitsubishi Corp ($MBC) | 7.2x | 9.9x | 15.9x | 14.3x | 12.5x |
| Nature Group ($NGR) | -0.6x | -0.5x | -0.4x | 6.6x | |
| Ceps ($CEPS) | 4.1x | | 3.0x | 6.6x | |
| Redhall Group ($RHL) | | 22.8x | 5.8x | 6.6x | 16.8x |
| |
|---|
| Median (52 companies) | 0.6x | 0.8x | 0.5x | 0.6x | 0.8x |
|---|
| Empresaria Group ($EMR) | 0.9x | 1.3x | 2.3x | 1.3x | 0.8x |
