Hydrogen Group reports 114% EBITDA decline and 27.5% Revenue decline
22 Mar 2016 • About Hydrogen Group (
$HYDG) • By InTwits
Hydrogen Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hydrogen Group doesn't have a profitable business model yet: 2015 ROIC is -3.0%
- EBITDA Margin is quite volatile: -0.4% in 2015, 1.8% in 2014, 1.8% in 2013, 2.3% in 2012, 2.9% in 2011
- Hydrogen Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has unprofitable business model: ROIC is at -3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hydrogen Group ($HYDG) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 156.2 | 167.0 | 181.6 | 169.4 | 122.8 | -27.5% |
| Gross Profit | 29.8 | 31.3 | 31.9 | 28.2 | 18.6 | -34.1% |
| SG&A | | | 29.4 | 25.6 | 19.2 | -25.0% |
| EBITDA | 4.6 | 3.8 | 3.3 | 3.1 | -0.4 | -114.2% |
| Net Income | 2.4 | 2.3 | 1.5 | -0.1 | -6.2 | 6,491.5% |
Balance Sheet
|
|---|
| Cash | 2.0 | 2.7 | 3.6 | 6.0 | 3.0 | -49.2% |
| Short Term Debt | 3.3 | 5.5 | 7.6 | 12.7 | 0.5 | -96.4% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.3 | 0.1 | 1.8 | 0.0 | 0.0 | -83.3% |
Ratios
|
|---|
| Revenue growth | 26.6% | 6.9% | 8.8% | -6.7% | -27.5% | |
| EBITDA growth | 45.4% | -16.6% | -14.0% | -6.1% | -114.2% | |
| Gross Margin | 19.1% | 18.7% | 17.6% | 16.6% | 15.1% | -1.5% |
| EBITDA Margin | 2.9% | 2.3% | 1.8% | 1.8% | -0.4% | -2.2% |
| Net Income Margin | 1.5% | 1.4% | 0.8% | -0.1% | -5.0% | -5.0% |
| SG&A, % of revenue | | | 16.2% | 15.1% | 15.6% | 0.5% |
| CAPEX, % of revenue | 0.2% | 0.0% | 1.0% | 0.0% | 0.0% | -0.0% |
| ROIC | 15.1% | 11.2% | 8.1% | 7.0% | -3.0% | -10.0% |
| ROE | 10.1% | 8.8% | 5.7% | -0.4% | -28.4% | -28.1% |
| Net Debt/EBITDA | 0.3x | 0.7x | 1.2x | 2.2x | | -2.2x |
Revenue and profitability
Hydrogen Group's Revenue dropped on 27.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 1.8% to -0.36% in 2015.
Gross Margin decreased slightly on 1.5 pp from 16.6% to 15.1% in 2015. SG&A as a % of Revenue increased slightly on 0.53 pp from 15.1% to 15.6% in 2015.
Net Income marign decreased on 5.0 pp from -0.055% to -5.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.0024% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.33%.
Return on investment
The company operates at negative ROIC (-3.01%) and ROE (-28.43%). ROIC dropped on 10.0 pp from 7.0% to -3.0% in 2015. ROE dropped on 28.1 pp from -0.36% to -28.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is . Net Debt / EBITDA dropped on 2.2x from 2.2x to in 2015. Debt dropped on 96.4% in 2015 while cash dropped on 49.2% in 2015.
Appendix 1: Peers in Support Services
Below we provide Hydrogen Group benchmarking against other companies in Support 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 |
|---|
| Optimal Payments ($OPAY) | | 39.9% | 41.5% | 44.0% | 68.1% |
| Inspired Energy ($INSE) | | 83.8% | 44.8% | 42.2% | 40.2% |
| Ibex Global Solutions ($IBEX) | | 7.4% | 35.7% | 30.0% | 29.8% |
| Rtc Group ($RTC) | | 40.1% | 13.6% | 4.3% | 27.4% |
| Nakama Group ($NAK) | | 47.4% | 25.3% | 5.0% | 24.1% |
| |
|---|
| Median (43 companies) | 3.6% | 6.6% | 5.6% | 4.8% | 6.6% |
|---|
| Hydrogen Group ($HYDG) | | 6.9% | 8.8% | -6.7% | -27.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspired Energy ($INSE) | | 94.6% | 86.8% | 78.7% | 76.2% |
| Ienergizer Ltd ($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 ($MUR) | 59.9% | 58.4% | 61.4% | 57.6% | 55.4% |
| |
|---|
| Median (48 companies) | 29.0% | 28.8% | 28.6% | 29.8% | 28.6% |
|---|
| Hydrogen Group ($HYDG) | 19.1% | 18.7% | 17.6% | 16.6% | 15.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northgate ($67GX) | | 41.2% | 40.4% | 40.6% | 39.4% |
| Inspired Energy ($INSE) | 45.3% | 46.2% | 48.5% | 1.5% | 35.4% |
| Vianet Group ($VNET) | 20.7% | 18.6% | 17.3% | 19.7% | 27.1% |
| Vp ($VP.) | 24.4% | 23.9% | 24.5% | 24.2% | 26.2% |
| Optimal Payments ($OPAY) | 11.2% | 10.3% | 18.5% | 21.3% | 22.6% |
| |
|---|
| Median (43 companies) | 7.6% | 6.8% | 6.5% | 6.9% | 8.0% |
|---|
| Hydrogen Group ($HYDG) | 2.9% | 2.3% | 1.8% | 1.8% | -0.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vp ($VP.) | 15.5% | 21.4% | 17.7% | 21.6% | 25.7% |
| Sagentia Group ($SAG) | 1.0% | 1.9% | 1.4% | 1.5% | 25.2% |
| Augean ($AUG) | 11.2% | 9.8% | 15.9% | 12.3% | 12.3% |
| Falkland Islands Hldgs ($FKL) | 2.6% | 3.7% | 6.8% | 12.9% | 11.9% |
| Capital Drilling Ltd ($CAPD) | 20.5% | 18.9% | 4.9% | 13.9% | 10.1% |
| |
|---|
| Median (43 companies) | 0.9% | 1.1% | 1.1% | 1.1% | 1.1% |
|---|
| Hydrogen Group ($HYDG) | 0.2% | 0.0% | 1.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspired Energy ($INSE) | 126.8% | 63.9% | 65.5% | -7.5% | 28.0% |
| Petards Group ($PEG) | 25.6% | 35.5% | -78.0% | 24.7% | 23.9% |
| Servoca ($SVCA) | 14.4% | 1.0% | 7.8% | 14.9% | 22.3% |
| Rtc Group ($RTC) | -2.6% | 14.6% | 17.6% | 19.9% | 22.2% |
| Mortice Ltd ($MORT) | 24.0% | 32.2% | 29.2% | 19.6% | 21.9% |
| |
|---|
| Median (43 companies) | 8.9% | 9.7% | 7.9% | 10.0% | 11.1% |
|---|
| Hydrogen Group ($HYDG) | 15.1% | 11.2% | 8.1% | 7.0% | -3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspired Energy ($INSE) | -0.8x | 0.8x | 0.6x | 19.4x | 1.7x |
| Mitsubishi Corp ($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 ($RHL) | | 22.8x | 5.8x | 6.6x | 16.8x |
| |
|---|
| Median (52 companies) | 0.7x | 0.8x | 0.5x | 0.6x | 0.7x |
|---|
| Hydrogen Group ($HYDG) | 0.3x | 0.7x | 1.2x | 2.2x | |
