Virgin Money Hldgs (Uk) Net Income jumped on 1,178% in 2015
02 Mar 2016 • About Virgin Money Hldgs (Uk) (
$VM.) • By InTwits
Virgin Money Hldgs (Uk) reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Virgin Money Hldgs (Uk) has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 10.2 in 2015, 10.8 in 2014, 1.5 in 2013, 23.6 in 2012, 9.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Virgin Money Hldgs (Uk) ($VM.) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 140.1 | 778.7 | 861.8 | 843.7 | 907.6 | 7.6% |
| Net Income | 13.0 | 218.4 | 179.0 | 8.7 | 111.2 | 1,178.2% |
Balance Sheet
|
|---|
| Cash | 62.8 | 1,604.5 | 1,423.5 | 851.3 | 888.6 | 4.4% |
| Short Term Debt | 253.8 | 3.4 | 389.2 | 846.7 | 1,298.7 | 53.4% |
| Long Term Debt | 0.0 | 2,266.6 | 1,469.8 | 1,594.1 | 2,039.4 | 27.9% |
Cash flow
|
|---|
| Capex | 9.5 | 23.6 | 1.5 | 10.8 | 10.2 | -5.6% |
Ratios
|
|---|
| Revenue growth | 51.0% | 455.9% | 10.7% | -2.1% | 7.6% | |
| Net Income Margin | 9.2% | 28.0% | 20.8% | 1.0% | 12.3% | 11.2% |
| CAPEX, % of revenue | 6.8% | 3.0% | 0.2% | 1.3% | 1.1% | -0.2% |
| ROIC | 5.0% | -0.1% | -0.3% | 2.2% | 3.3% | 1.1% |
| ROE | 3.7% | 33.9% | 19.3% | -0.1% | 7.8% | 8.0% |
Revenue and profitability
Virgin Money Hldgs (Uk)'s Revenue increased on 7.6% in 2015.
Net Income marign surged on 11.2 pp from 1.0% to 12.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Virgin Money Hldgs (Uk) had CAPEX/Revenue of 1.1%. The company's CAPEX/Revenue decreased slightly on 1.9 pp from 3.0% in 2012 to 1.1% in 2015. Average CAPEX/Revenue for the last three years was 0.86%.
Return on investment
The company operates at low ROIC (3.31%) and ROE (7.83%). ROIC increased slightly on 1.1 pp from 2.2% to 3.3% in 2015. ROE increased on 8.0 pp from -0.15% to 7.8% in 2015.
Leverage (Debt)
Debt jumped on 36.8% in 2015 while cash increased on 4.4% in 2015.
Appendix 1: Peers in Banks
Below you can find Virgin Money Hldgs (Uk) benchmarking vs. other companies in Banks 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 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| Tsb Banking Grp ($TSB) | | -3.2% | -33.8% | 39.2% | -1.4% |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | | 9.1% | 11.7% | 23.9% | 7.1% |
| |
|---|
| Median (43 companies) | 6.4% | 9.3% | 4.2% | 12.1% | 3.7% |
|---|
| Virgin Money Hldgs (Uk) ($VM.) | | 455.9% | 10.7% | -2.1% | 7.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | 2.7% |
| Tsb Banking Grp ($TSB) | 1.3% | 1.8% | 4.4% | 7.2% | 3.4% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| |
|---|
| Median (40 companies) | 2.3% | 2.2% | 2.8% | 2.2% | 2.5% |
|---|
| Virgin Money Hldgs (Uk) ($VM.) | 6.8% | 3.0% | 0.2% | 1.3% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | 30.3% |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | 12.6% |
| |
|---|
| Median (43 companies) | 7.1% | 6.4% | 5.7% | 4.5% | 3.3% |
|---|
| Virgin Money Hldgs (Uk) ($VM.) | 5.0% | -0.1% | -0.3% | 2.2% | 3.3% |
