Fulcrum Utility Services Ld reports 130% EBITDA growth and 2.3% Revenue growth
07 Jun 2016 • About Fulcrum Utility Services Ld (
$FCRM) • By InTwits
Fulcrum Utility Services Ld reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 14.4% in FY2016 vs. 6.4% in FY2015 vs. -6.5% in FY2012
- EBITDA Margin is quite volatile: 14.4% in FY2016, 6.4% in FY2015, 1.3% in FY2014, 1.0% in FY2013, -6.5% in FY2012
- Fulcrum Utility Services Ld has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 1.8%.
- CAPEX is quite volatile: 0.056 in FY2016, 0.032 in FY2015, 1.4 in FY2014, 1.9 in FY2013, 2.2 in FY2012
- The company has highly profitable business model: ROIC is at 347.2%
- It operates with high leverage: Net Debt/EBITDA is -1.7x while industry average is -3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fulcrum Utility Services Ld ($FCRM) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 40.993 | 38.769 | 38.285 | 33.739 | 34.505 | 2.3% |
| Gross Profit | 13.982 | 12.254 | 9.491 | 9.730 | 12.985 | 33.5% |
| SG&A | | 13.182 | 13.874 | 9.081 | 8.748 | -3.7% |
| EBITDA | -2.684 | 0.401 | 0.492 | 2.170 | 4.983 | 129.6% |
| Net Income | -5.643 | -0.495 | -4.458 | 2.802 | 4.734 | 69.0% |
Balance Sheet
|
|---|
| Cash | 8.269 | 1.911 | 5.326 | 5.746 | 8.323 | 44.8% |
| Short Term Debt | | 1.531 | 0.274 | 0.168 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.451 | 0.171 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 2.218 | 1.942 | 1.408 | 0.032 | 0.056 | 75.0% |
Ratios
|
|---|
| Revenue growth | 44.2% | -5.4% | -1.2% | -11.9% | 2.3% | |
| EBITDA growth | | -114.9% | 22.7% | 341.1% | 129.6% | |
| Gross Margin | 34.1% | 31.6% | 24.8% | 28.8% | 37.6% | 8.8% |
| EBITDA Margin | -6.5% | 1.0% | 1.3% | 6.4% | 14.4% | 8.0% |
| Net Income Margin | -13.8% | -1.3% | -11.6% | 8.3% | 13.7% | 5.4% |
| SG&A, % of revenue | | 34.0% | 36.2% | 26.9% | 25.4% | -1.6% |
| CAPEX, % of revenue | 5.4% | 5.0% | 3.7% | 0.1% | 0.2% | 0.1% |
| ROIC | | -194.5% | | | 347.2% | 347.2% |
| ROE | | | | | 136.6% | 136.6% |
| Net Debt/EBITDA | | 0.2x | -9.9x | -2.6x | -1.7x | 0.9x |
Revenue and profitability
Fulcrum Utility Services Ld's Revenue increased on 2.3% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.5 pp from 66.5% to 50.0% in FY2016.
Gross Margin increased on 8.8 pp from 28.8% to 37.6% in FY2016. SG&A as a % of Revenue decreased slightly on 1.6 pp from 26.9% to 25.4% in FY2016.
Net Income marign increased on 5.4 pp from 8.3% to 13.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.16% in FY2016. The company showed decline in CAPEX/Revenue of 4.8 pp from 5.0% in FY2013 to 0.16% in FY2016. For the last three years the average CAPEX/Revenue was 1.3%.
Return on investment
The company operates at high and attractive ROIC (347.15%) and ROE (136.64%).
Leverage (Debt)
The company paid down all the debt in FY2016. Cash surged on 44.8% in FY2016.
Valuation
Fulcrum Utility Services Ld's trades at EV/EBITDA 11.3x and P/E 13.6x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 11.4x with the industry average at 19.0x.
Appendix 1: Peers in Financial Services
Below you can find Fulcrum Utility Services Ld benchmarking vs. other companies in Financial 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 |
|---|
| Volvere ($VLE) | -47.1% | 149.8% | -23.2% | 124.9% | |
| Real Estate Credit Investments Pcc ($RECP) | | 335.8% | -59.6% | 47.3% | -29.8% |
| Fairpoint Group ($FRP) | 32.7% | -17.5% | 35.1% | 41.2% | |
| Afh Financial Group ($AFHP) | | 49.9% | 39.3% | 39.5% | |
| Manx Financial Group ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 5.5% | 14.7% | 6.8% | 2.9% | -10.6% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | | -5.4% | -1.2% | -11.9% | 2.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Record ($REC) | 98.8% | 98.8% | 99.6% | 99.3% | |
| Panmure Gordon & Co ($PMR) | 95.2% | 95.0% | 95.3% | 95.2% | |
| First Property Group ($FPO) | 86.0% | 69.5% | 67.9% | 83.0% | |
| Schroders ($SDRC) | 76.9% | 76.2% | 77.7% | 78.3% | |
| London Capital Group Hldgs ($LCG) | 64.2% | 70.5% | 73.6% | 67.9% | |
| |
|---|
| Median (15 companies) | 56.8% | 53.3% | 53.0% | 52.8% | 63.3% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | 34.1% | 31.6% | 24.8% | 28.8% | 37.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Livermore Investments Group Ltd ($LIV) | 84.9% | 64.8% | 78.8% | 83.5% | |
| Real Estate Credit Investments Pcc ($RECP) | 58.6% | 89.3% | 77.0% | 80.3% | 79.3% |
| Manx Financial Group ($MFX) | 39.8% | 49.2% | 56.5% | 58.8% | |
| Hargreaves Lansdown ($HL.) | 64.1% | 66.4% | 58.7% | 51.2% | |
| Daishin Securities Co ($DSS) | 53.8% | 51.5% | 38.8% | 49.2% | |
| |
|---|
| Median (28 companies) | 14.9% | 17.0% | 16.8% | 16.9% | 48.0% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | -6.5% | 1.0% | 1.3% | 6.4% | 14.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| London Capital Group Hldgs ($LCG) | 1.8% | 0.2% | 3.4% | 7.7% | |
| Daishin Securities Co ($DSS) | 6.0% | 24.7% | 15.0% | 6.5% | |
| Commercial Bank Of Qatar(The) ($CBQS) | 6.0% | 3.8% | 2.8% | 3.9% | |
| Nmbz Hldgs ($NMB) | 6.1% | 3.0% | 2.1% | 3.8% | |
| Afh Financial Group ($AFHP) | 1.6% | 1.5% | 0.7% | 3.8% | |
| |
|---|
| Median (29 companies) | 1.3% | 1.3% | 1.3% | 1.2% | 1.6% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | 5.4% | 5.0% | 3.7% | 0.1% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hargreaves Lansdown ($HL.) | 108.7% | 111.7% | 101.0% | 87.5% | |
| Manx Financial Group ($MFX) | 8.0% | 19.7% | 29.7% | 40.2% | |
| Record ($REC) | 23.8% | 19.6% | 20.2% | 20.2% | |
| Impax Asset Management Group ($IPX) | -13.7% | 17.2% | 18.7% | 16.1% | |
| Lighthouse Group ($LGT) | 7.2% | -3.9% | 8.6% | 14.6% | |
| |
|---|
| Median (30 companies) | 5.4% | 6.3% | 9.1% | 7.6% | -4.3% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | | -194.5% | | | 347.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Private & Commercial Finance Group ($PCF) | 12.8x | 14.3x | 13.9x | 12.9x | |
| First Property Group ($FPO) | 3.6x | 3.0x | 5.6x | 12.3x | |
| Canaccord Genuity Group Inc ($CF.) | | | | 10.2x | |
| Daishin Securities Co ($DSS) | 1.5x | 2.4x | 10.7x | 8.0x | |
| S & U ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| |
|---|
| Median (25 companies) | -1.1x | -1.7x | -1.9x | -0.5x | 0.1x |
|---|
| Fulcrum Utility Services Ld ($FCRM) | | 0.2x | -9.9x | -2.6x | -1.7x |
