First Property Group reports 9,993% CAPEX growth and 18.5% Revenue growth
09 Jun 2016 • About First Property Group (
$FPO) • By InTwits
First Property Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 52.2% in FY2016 vs. 42.9% in FY2015 vs. 44.8% in FY2012
- First Property Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 2.0%.
- CAPEX is quite volatile: 1.4 in FY2016, 0.014 in FY2015, 0.060 in FY2014, 0.010 in FY2013, 0.033 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.7%
- It operates with high leverage: Net Debt/EBITDA is 9.4x while industry average is -4.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
First Property Group ($FPO) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9.342 | 10.636 | 18.045 | 18.523 | 21.955 | 18.5% |
| Gross Profit | 8.034 | 7.392 | 12.245 | 15.367 | 17.700 | 15.2% |
| EBITDA | 4.189 | 3.994 | 7.257 | 7.950 | 11.462 | 44.2% |
| Net Income | 3.196 | 2.568 | 5.281 | 8.172 | 5.008 | -38.7% |
Balance Sheet
|
|---|
| Cash | 9.975 | 12.979 | 11.279 | 12.240 | 8.975 | -26.7% |
| Short Term Debt | 0.608 | 0.637 | 4.349 | 11.788 | 7.668 | -35.0% |
| Long Term Debt | 24.310 | 24.244 | 47.212 | 97.925 | 108.992 | 11.3% |
Cash flow
|
|---|
| Capex | 0.033 | 0.010 | 0.060 | 0.014 | 1.413 | 9,992.9% |
Ratios
|
|---|
| Revenue growth | 31.4% | 13.9% | 69.7% | 2.6% | 18.5% | |
| EBITDA growth | 29.4% | -4.7% | 81.7% | 9.5% | 44.2% | |
| Gross Margin | 86.0% | 69.5% | 67.9% | 83.0% | 80.6% | -2.3% |
| EBITDA Margin | 44.8% | 37.6% | 40.2% | 42.9% | 52.2% | 9.3% |
| Net Income Margin | 34.2% | 24.1% | 29.3% | 44.1% | 22.8% | -21.3% |
| CAPEX, % of revenue | 0.4% | 0.1% | 0.3% | 0.1% | 6.4% | 6.4% |
| ROIC | 10.0% | 9.2% | 12.2% | 7.0% | 6.7% | -0.3% |
| ROE | 19.1% | 14.6% | 25.9% | 31.1% | 16.1% | -15.0% |
| Net Debt/EBITDA | 3.6x | 3.0x | 5.6x | 12.3x | 9.4x | -2.9x |
Revenue and profitability
The company's Revenue jumped on 18.5% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 45.7 pp from -71.9% to -26.2% in FY2016.
Gross Margin decreased on 2.3 pp from 83.0% to 80.6% in FY2016.
Net Income marign dropped on 21.3 pp from 44.1% to 22.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 6.4%. The company showed CAPEX/Revenue growth of 6.3 pp from 0.094% in FY2013 to 6.4% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at good ROE (16.13%) while ROIC is low (6.72%). ROIC showed almost no change in FY2016. ROE dropped on 15.0 pp from 31.1% to 16.1% in FY2016.
Leverage (Debt)
Debt level is 9.4x Net Debt / EBITDA and 10.2x Debt / EBITDA. Net Debt / EBITDA dropped on 2.9x from 12.3x to 9.4x in FY2016. Debt increased on 6.3% in FY2016 while cash dropped on 26.7% in FY2016.
Appendix 1: Peers in Financial Services
Below we provide First Property Group benchmarking against other companies in Financial 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 | 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 ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 5.5% | 13.5% | 4.7% | 2.9% | 2.3% |
|---|
| First Property Group ($FPO) | | 13.9% | 69.7% | 2.6% | 18.5% |
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% | |
| Schroders ($SDRC) | 76.9% | 76.2% | 77.7% | 78.3% | |
| London Capital Group Hldgs ($LCG) | 64.2% | 70.5% | 73.6% | 67.9% | |
| Walker Crips Group ($WCW) | 71.8% | 58.0% | 68.2% | 66.7% | |
| |
|---|
| Median (15 companies) | 51.8% | 52.2% | 51.3% | 52.3% | 37.6% |
|---|
| First Property Group ($FPO) | 86.0% | 69.5% | 67.9% | 83.0% | 80.6% |
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 ($DSS) | 53.8% | 51.5% | 38.8% | 49.2% | |
| |
|---|
| Median (28 companies) | 11.7% | 15.6% | 14.4% | 15.9% | 16.6% |
|---|
| First Property Group ($FPO) | 44.8% | 37.6% | 40.2% | 42.9% | 52.2% |
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 ($AFHP) | 1.6% | 1.5% | 0.7% | 3.8% | |
| |
|---|
| Median (29 companies) | 1.4% | 1.4% | 1.3% | 1.2% | 0.8% |
|---|
| First Property Group ($FPO) | 0.4% | 0.1% | 0.3% | 0.1% | 6.4% |
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 ($LGT) | 7.2% | -3.9% | 8.6% | 14.6% | |
| |
|---|
| Median (30 companies) | 5.2% | 6.0% | 8.9% | 7.7% | 11.1% |
|---|
| First Property Group ($FPO) | 10.0% | 9.2% | 12.2% | 7.0% | 6.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Private & Commercial Finance Group ($PCF) | 12.8x | 14.3x | 13.9x | 12.9x | 10.6x |
| Canaccord Genuity Group Inc ($CF.) | | | | 10.2x | |
| Daishin Securities Co ($DSS) | 1.5x | 2.4x | 10.7x | 8.0x | |
| S & U ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| Livermore Investments Group Ltd ($LIV) | 3.8x | 4.6x | 3.4x | 2.5x | |
| |
|---|
| Median (25 companies) | -1.2x | -1.7x | -2.3x | -1.1x | 0.1x |
|---|
| First Property Group ($FPO) | 3.6x | 3.0x | 5.6x | 12.3x | 9.4x |
