Nakama Group EBITDA dropped on 61.1% in 2016 and Revenue decreased on 3.1%
15 Aug 2016 • About Nakama Group (
$NAK) • By InTwits
Nakama Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nakama Group doesn't have a profitable business model yet: FY2016 ROIC is -0.2%
- EBITDA Margin is quite volatile: 1.0% in FY2016, 2.5% in FY2015, 1.3% in FY2014, 0.1% in FY2013, 1.7% in FY2012
- Nakama Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has unprofitable business model: ROIC is at -0.2%
- It operates with high leverage: Net Debt/EBITDA is 3.1x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nakama Group ($NAK) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13.298 | 16.668 | 17.502 | 21.715 | 21.043 | -3.1% |
| Gross Profit | 2.743 | 3.989 | 4.353 | 5.321 | 5.739 | 7.9% |
| SG&A | | | | 4.985 | 5.702 | 14.4% |
| EBITDA | 0.232 | 0.019 | 0.230 | 0.550 | 0.214 | -61.1% |
| Net Income | -0.180 | -0.226 | -0.202 | 0.244 | -0.070 | -128.7% |
Balance Sheet
|
|---|
| Cash | 0.279 | 0.007 | 0.114 | 0.316 | 0.582 | 84.2% |
| Short Term Debt | 1.058 | 0.764 | 1.319 | 1.071 | 1.247 | 16.4% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.000 | 0.048 | 0.035 | 0.058 | 0.091 | 56.9% |
Ratios
|
|---|
| Revenue growth | 47.4% | 25.3% | 5.0% | 24.1% | -3.1% | |
| EBITDA growth | -27.7% | -91.8% | 1,110.5% | 139.1% | -61.1% | |
| Gross Margin | 20.6% | 23.9% | 24.9% | 24.5% | 27.3% | 2.8% |
| EBITDA Margin | 1.7% | 0.1% | 1.3% | 2.5% | 1.0% | -1.5% |
| Net Income Margin | -1.4% | -1.4% | -1.2% | 1.1% | -0.3% | -1.5% |
| SG&A, % of revenue | | | | 23.0% | 27.1% | 4.1% |
| CAPEX, % of revenue | 0.0% | 0.3% | 0.2% | 0.3% | 0.4% | 0.2% |
| ROIC | 9.4% | -7.3% | 0.7% | 11.8% | -0.2% | -12.0% |
| ROE | -13.0% | -12.0% | -11.8% | 13.9% | -3.8% | -17.7% |
| Net Debt/EBITDA | 3.4x | 39.8x | 5.2x | 1.4x | 3.1x | 1.7x |
Revenue and profitability
Nakama Group's Revenue decreased on 3.1% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 7.4% to 10.7% in FY2016.
Gross Margin increased on 2.8 pp from 24.5% to 27.3% in FY2016. SG&A as a % of Revenue increased on 4.1 pp from 23.0% to 27.1% in FY2016.
Net Income marign decreased slightly on 1.5 pp from 1.1% to -0.33% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.43% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.30%.
Return on investment
The company operates at negative ROIC (-0.21%) and ROE (-3.81%). ROIC dropped on 12.0 pp from 11.8% to -0.21% in FY2016. ROE dropped on 17.7 pp from 13.9% to -3.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.1x and Debt / EBITDA is 5.8x. Net Debt / EBITDA jumped on 1.7x from 1.4x to 3.1x in FY2016. Debt surged on 16.4% in FY2016 while cash jumped on 84.2% in FY2016.
Appendix 1: Peers in Support Services
Below you can find Nakama 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 | 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 ($INSE) | 83.8% | 44.8% | 42.2% | 40.2% | |
| 21St Century Technology ($C21) | 0.1% | -22.8% | -16.6% | 35.5% | |
| Ibex Global Solutions ($IBEX) | 7.4% | 35.7% | 30.0% | 29.8% | |
| |
|---|
| Median (55 companies) | 4.6% | 6.9% | 4.7% | 6.6% | 1.1% |
|---|
| Nakama Group ($NAK) | | 25.3% | 5.0% | 24.1% | -3.1% |
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% | 71.3% |
| Grafenia ($GRA) | 53.4% | 54.3% | 56.1% | 70.8% | 66.3% |
| Vianet Group ($VNET) | 53.3% | 51.3% | 58.8% | 69.2% | 70.1% |
| Prime People ($PRP) | 63.4% | 58.3% | 57.7% | 61.4% | 59.2% |
| |
|---|
| Median (49 companies) | 29.5% | 28.8% | 30.4% | 28.7% | 31.1% |
|---|
| Nakama Group ($NAK) | 20.6% | 23.9% | 24.9% | 24.5% | 27.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 21St Century Technology ($C21) | 13.4% | -0.2% | 36.0% | 44.8% | |
| 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 ($VNET) | 18.6% | 17.3% | 19.7% | 27.1% | 22.1% |
| Vp ($VP.) | 23.9% | 24.5% | 24.2% | 26.2% | 28.4% |
| |
|---|
| Median (55 companies) | 6.8% | 6.4% | 6.9% | 7.6% | 11.3% |
|---|
| Nakama Group ($NAK) | 1.7% | 0.1% | 1.3% | 2.5% | 1.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vp ($VP.) | 21.4% | 17.7% | 21.6% | 25.7% | 24.1% |
| Sagentia Group ($SAG) | 1.9% | 1.4% | 1.5% | 25.2% | |
| Nature Group ($NGR) | 14.3% | 7.2% | 5.6% | 22.9% | |
| Augean ($AUG) | 9.8% | 15.9% | 12.3% | 12.3% | |
| Falkland Islands Hldgs ($FKL) | 3.7% | 6.8% | 12.9% | 11.9% | 4.8% |
| |
|---|
| Median (55 companies) | 1.1% | 1.1% | 1.1% | 1.1% | 1.2% |
|---|
| Nakama Group ($NAK) | 0.0% | 0.3% | 0.2% | 0.3% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 21St Century Technology ($C21) | 20.3% | -2.9% | 45.6% | 111.0% | |
| 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% | |
| |
|---|
| Median (55 companies) | 9.9% | 7.9% | 9.4% | 10.2% | 9.4% |
|---|
| Nakama Group ($NAK) | 9.4% | -7.3% | 0.7% | 11.8% | -0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Redhall Group ($RHL) | 22.8x | 5.8x | 6.6x | 16.8x | |
| Mitsubishi Corp ($MBC) | 9.9x | 15.9x | 14.3x | 12.5x | 25.0x |
| Ienergizer Ltd ($IBPO) | 6.3x | 2.8x | 3.0x | 4.0x | 2.4x |
| Ceps ($CEPS) | | 3.0x | 6.6x | 3.8x | |
| Kellan Group(The ($KLN) | | | 6.5x | 3.6x | |
| |
|---|
| Median (51 companies) | 0.8x | 0.5x | 0.6x | 0.4x | 0.6x |
|---|
| Nakama Group ($NAK) | 3.4x | 39.8x | 5.2x | 1.4x | 3.1x |
