1Spatial reports 33.0% EBITDA decline while 5.8% Revenue growth
04 May 2016 • About 1Spatial (
$SPA) • By InTwits
1Spatial reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- 1Spatial doesn't have a profitable business model yet: FY2016 ROIC is -1.4%
- EBITDA Margin is quite volatile: 7.5% in FY2016, 11.9% in FY2015, 2.7% in FY2014, -4.8% in FY2013, -17.1% in FY2012
- 1Spatial has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's in pair with industry average of 2.8%.
- CAPEX is quite volatile: 0.84 in FY2016, 0.26 in FY2015, 0.57 in FY2014, 0.23 in FY2013, 0.16 in FY2012
- The company has unprofitable business model: ROIC is at -1.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
1Spatial ($SPA) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5.228 | 12.100 | 17.266 | 19.598 | 20.738 | 5.8% |
| Gross Profit | 1.855 | 5.127 | 8.203 | 10.794 | 11.778 | 9.1% |
| SG&A | | 9.912 | 10.428 | 12.260 | 12.119 | -1.2% |
| EBITDA | -0.896 | -0.581 | 0.466 | 2.329 | 1.560 | -33.0% |
| Net Income | -1.010 | -4.393 | -2.227 | -1.517 | 0.012 | -100.8% |
Balance Sheet
|
|---|
| Cash | 2.734 | 3.216 | 11.165 | 8.250 | 4.996 | -39.4% |
| Short Term Debt | 0.051 | 0.049 | 0.052 | 0.242 | 0.000 | -100.0% |
| Long Term Debt | 0.051 | 0.000 | 0.268 | 0.191 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.156 | 0.231 | 0.566 | 0.258 | 0.841 | 226.0% |
Ratios
|
|---|
| Revenue growth | 98.7% | 131.4% | 42.7% | 13.5% | 5.8% | |
| EBITDA growth | -85.8% | -35.2% | -180.2% | 399.8% | -33.0% | |
| Gross Margin | 35.5% | 42.4% | 47.5% | 55.1% | 56.8% | 1.7% |
| EBITDA Margin | -17.1% | -4.8% | 2.7% | 11.9% | 7.5% | -4.4% |
| Net Income Margin | -19.3% | -36.3% | -12.9% | -7.7% | 0.1% | 7.8% |
| SG&A, % of revenue | | 81.9% | 60.4% | 62.6% | 58.4% | -4.1% |
| CAPEX, % of revenue | 3.0% | 1.9% | 3.3% | 1.3% | 4.1% | 2.7% |
| ROIC | -9.6% | -16.4% | -2.7% | 3.7% | -1.4% | -5.1% |
| ROE | -11.1% | -49.0% | -15.4% | -7.0% | 0.1% | 7.1% |
| Net Debt/EBITDA | | | -23.3x | -3.4x | -3.2x | 0.2x |
Revenue and profitability
1Spatial's Revenue increased on 5.8% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.0 pp from 11.6% to 18.5% in FY2016.
Gross Margin increased slightly on 1.7 pp from 55.1% to 56.8% in FY2016. SG&A as a % of Revenue decreased on 4.1 pp from 62.6% to 58.4% in FY2016.
Net Income marign increased on 7.8 pp from -7.7% to 0.058% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.1% in FY2016. CAPEX/Revenue increased on 2.1 pp from 1.9% in FY2013 to 4.1% in FY2016. It's average CAPEX/Revenue for the last three years was 2.9%.The company maintained rich investment policy and has spent a big chunk of EBITDA (53.9%) to CAPEX.
Return on investment
The company operates at negative ROIC (-1.36%) and low but positive ROE (0.05%). ROIC decreased on 5.1 pp from 3.7% to -1.4% in FY2016. ROE increased on 7.1 pp from -7.0% to 0.051% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash dropped on 39.4% in FY2016.
Valuation
1Spatial's trades at EV/EBITDA 21.3x and P/E 3,184.7x while industy averages are 15.6x and 19.1x. 1Spatial's EV/(EBITDA-CAPEX) is 46.2x with the industry average at 19.0x.
Appendix 1: Peers in Support Services
Below you can find 1Spatial 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Camco Clean Energy ($CCE) | | 88.0% | -54.7% | 99.4% | |
| Optimal Payments ($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 ($RTC) | 40.1% | 13.6% | 4.3% | 27.4% | |
| |
|---|
| Median (52 companies) | 6.6% | 6.9% | 4.7% | 6.3% | 2.0% |
|---|
| 1Spatial ($SPA) | | 131.4% | 42.7% | 13.5% | 5.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inspired Energy ($INSE) | 94.6% | 86.8% | 78.7% | 76.2% | |
| Ienergizer Ltd ($IBPO) | 56.2% | 78.4% | 76.8% | 72.7% | |
| Grafenia ($GRA) | 53.4% | 54.3% | 56.1% | 70.8% | |
| Vianet Group ($VNET) | 53.3% | 51.3% | 58.8% | 69.2% | |
| Prime People ($PRP) | 63.4% | 58.3% | 57.7% | 61.4% | |
| |
|---|
| Median (46 companies) | 28.2% | 28.5% | 29.2% | 28.0% | 22.1% |
|---|
| 1Spatial ($SPA) | 35.5% | 42.4% | 47.5% | 55.1% | 56.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northgate ($67GX) | 41.2% | 40.4% | 40.6% | 39.4% | 38.3% |
| Inspired Energy ($INSE) | 46.2% | 48.5% | 1.5% | 35.4% | |
| Vianet Group ($VNET) | 18.6% | 17.3% | 19.7% | 27.1% | |
| Vp ($VP.) | 23.9% | 24.5% | 24.2% | 26.2% | |
| Optimal Payments ($OPAY) | 10.3% | 18.5% | 21.3% | 22.6% | |
| |
|---|
| Median (52 companies) | 6.8% | 6.4% | 6.9% | 7.2% | 7.1% |
|---|
| 1Spatial ($SPA) | -17.1% | -4.8% | 2.7% | 11.9% | 7.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vp ($VP.) | 21.4% | 17.7% | 21.6% | 25.7% | |
| Sagentia Group ($SAG) | 1.9% | 1.4% | 1.5% | 25.2% | |
| Augean ($AUG) | 9.8% | 15.9% | 12.3% | 12.3% | |
| Falkland Islands Hldgs ($FKL) | 3.7% | 6.8% | 12.9% | 11.9% | |
| Capital Drilling Ltd ($CAPD) | 18.9% | 4.9% | 13.9% | 10.1% | |
| |
|---|
| Median (52 companies) | 1.0% | 1.1% | 1.0% | 1.1% | 0.7% |
|---|
| 1Spatial ($SPA) | 3.0% | 1.9% | 3.3% | 1.3% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inspired Energy ($INSE) | 63.9% | 65.5% | -7.5% | 28.0% | |
| Petards Group ($PEG) | 35.5% | -78.0% | 24.7% | 23.9% | |
| Servoca ($SVCA) | 1.0% | 7.8% | 14.9% | 22.3% | |
| Rtc Group ($RTC) | 14.6% | 17.6% | 19.9% | 22.2% | |
| Mortice Ltd ($MORT) | 32.2% | 29.2% | 19.6% | 21.9% | |
| |
|---|
| Median (52 companies) | 9.9% | 7.9% | 9.4% | 10.3% | 12.2% |
|---|
| 1Spatial ($SPA) | -9.6% | -16.4% | -2.7% | 3.7% | -1.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Redhall Group ($RHL) | 22.8x | 5.8x | 6.6x | 16.8x | |
| Mitsubishi Corp ($MBC) | 9.9x | 15.9x | 14.3x | 12.5x | |
| Ienergizer Ltd ($IBPO) | 6.3x | 2.8x | 3.0x | 4.0x | |
| Ceps ($CEPS) | | 3.0x | 6.6x | 3.8x | |
| Kellan Group(The ($KLN) | | | 6.5x | 3.6x | |
| |
|---|
| Median (49 companies) | 0.8x | 0.6x | 0.6x | 0.5x | 1.2x |
|---|
| 1Spatial ($SPA) | | | -23.3x | -3.4x | -3.2x |
