Tribal Group reports 641% EBITDA decline and 13.7% Revenue decline
16 Mar 2016 • About Tribal Group (
$TRB) • By InTwits
Tribal Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tribal Group doesn't have a profitable business model yet: 2015 ROIC is -76.2%
- EBITDA Margin is quite volatile: -28.1% in 2015, 4.5% in 2014, 16.1% in 2013, 13.1% in 2012, 10.3% in 2011
- Tribal Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 2.2%.
- CAPEX is quite volatile: 2.1 in 2015, 2.6 in 2014, 2.4 in 2013, 5.1 in 2012, 4.0 in 2011
- The company has unprofitable business model: ROIC is at -76.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tribal Group ($TRB) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 108.2 | 115.4 | 125.5 | 123.7 | 106.7 | -13.7% |
| Gross Profit | 41.7 | 43.7 | 50.0 | 49.7 | 38.0 | -23.4% |
| SG&A | 35.8 | 32.2 | 34.3 | 52.2 | 81.6 | 56.2% |
| EBITDA | 11.1 | 15.1 | 20.3 | 5.5 | -30.0 | -640.9% |
| Net Income | -22.4 | 9.7 | 11.6 | -7.9 | -45.5 | 473.0% |
Balance Sheet
|
|---|
| Cash | 6.5 | 8.4 | 7.6 | 9.3 | 3.9 | -58.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 2.2 | |
| Long Term Debt | 22.5 | 18.3 | 12.1 | 21.0 | 34.2 | 62.7% |
Cash flow
|
|---|
| Capex | 0.8 | 2.2 | 1.6 | 1.3 | 1.7 | 24.8% |
Ratios
|
|---|
| Revenue growth | 4.0% | 6.6% | 8.7% | -1.4% | -13.7% | |
| EBITDA growth | 24.5% | 35.5% | 34.2% | -72.6% | -640.9% | |
| Gross Margin | 38.5% | 37.9% | 39.9% | 40.2% | 35.7% | -4.5% |
| EBITDA Margin | 10.3% | 13.1% | 16.1% | 4.5% | -28.1% | -32.6% |
| Net Income Margin | -20.7% | 8.4% | 9.2% | -6.4% | -42.6% | -36.2% |
| SG&A, % of revenue | 33.0% | 27.9% | 27.3% | 42.2% | 76.4% | 34.2% |
| CAPEX, % of revenue | 0.8% | 1.9% | 1.2% | 1.1% | 1.6% | 0.5% |
| ROIC | 6.7% | 16.8% | 20.7% | -5.2% | -76.2% | -71.0% |
| ROE | -38.8% | 19.1% | 18.6% | -12.9% | -149.7% | -136.8% |
| Net Debt/EBITDA | 1.4x | 0.7x | 0.2x | 2.1x | | -2.1x |
Revenue and profitability
Tribal Group's Revenue dropped on 13.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 32.6 pp from 4.5% to -28.1% in 2015.
Gross Margin decreased on 4.5 pp from 40.2% to 35.7% in 2015. SG&A as a % of Revenue surged on 34.2 pp from 42.2% to 76.4% in 2015.
Net Income marign dropped on 36.2 pp from -6.4% to -42.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Tribal Group's CAPEX/Revenue was 1.6% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at negative ROIC (-76.16%) and ROE (-149.71%). ROIC dropped on 71.0 pp from -5.2% to -76.2% in 2015. ROE dropped on 137 pp from -12.9% to -150% in 2015.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 2.1x from 2.1x to in 2015. Debt surged on 73.0% in 2015 while cash dropped on 58.3% in 2015.
Appendix 1: Peers in Support Services
Below you can find Tribal 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 ($PEG) | | -25.7% | -30.6% | 115.1% | -2.9% |
| Optimal Payments ($OPAY) | | 39.9% | 41.5% | 44.0% | 68.1% |
| 1Spatial ($SPA) | | 98.7% | 131.4% | 42.7% | 13.5% |
| Inspired Energy ($INSE) | 32.9% | 83.8% | 44.8% | 42.2% | |
| Interquest Group ($ITQ) | | -6.8% | 2.0% | 31.2% | 5.3% |
| |
|---|
| Median (54 companies) | 9.8% | 6.9% | 5.6% | 4.8% | 6.7% |
|---|
| Tribal Group ($TRB) | | 6.6% | 8.7% | -1.4% | -13.7% |
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 ($MUR) | 59.9% | 58.4% | 61.4% | 57.6% | 55.4% |
| |
|---|
| Median (48 companies) | 28.0% | 27.5% | 27.5% | 29.1% | 28.2% |
|---|
| Tribal Group ($TRB) | 38.5% | 37.9% | 39.9% | 40.2% | 35.7% |
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 ($CAPD) | 26.3% | 24.1% | 15.7% | 21.7% | |
| |
|---|
| Median (54 companies) | 6.6% | 6.8% | 6.4% | 6.9% | 7.9% |
|---|
| Tribal Group ($TRB) | 10.3% | 13.1% | 16.1% | 4.5% | -28.1% |
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 ($AUG) | 11.2% | 9.8% | 15.9% | 12.3% | |
| |
|---|
| Median (54 companies) | 0.9% | 1.0% | 1.0% | 1.0% | 1.0% |
|---|
| Tribal Group ($TRB) | 0.8% | 1.9% | 1.2% | 1.1% | 1.6% |
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% | 23.9% |
| Driver Group ($DRV) | 6.5% | 18.7% | 27.9% | 24.0% | 3.2% |
| Optimal Payments ($OPAY) | -2.9% | 7.1% | 27.7% | 23.8% | 8.8% |
| Premier Farnell ($PFLA) | | 33.2% | 21.0% | 23.2% | 18.5% |
| |
|---|
| Median (54 companies) | 9.9% | 9.7% | 7.9% | 10.0% | 10.7% |
|---|
| Tribal Group ($TRB) | 6.7% | 16.8% | 20.7% | -5.2% | -76.2% |
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 ($RHL) | | 22.8x | 5.8x | 6.6x | 16.8x |
| |
|---|
| Median (52 companies) | 0.6x | 0.8x | 0.7x | 0.6x | 0.9x |
|---|
| Tribal Group ($TRB) | 1.4x | 0.7x | 0.2x | 2.1x | |
