Redhall Group EBITDA jumped on 56.1% in 2016 while Revenue decreased slightly on 2.0%
07 Dec 2016 • About Redhall Group (
$RHL) • By InTwits
Redhall Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Redhall Group doesn't have a profitable business model yet: FY2016 ROIC is -1.0%
- EBITDA Margin is quite volatile: 1.2% in FY2016, 0.7% in FY2015, 4.3% in FY2014, 2.9% in FY2013, 0.4% in FY2012
- Redhall Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has unprofitable business model: ROIC is at -1.0%
- It operates with high leverage: Net Debt/EBITDA is 16.2x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Redhall Group ($RHL) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 116.8 | 113.1 | 57.2 | 44.7 | 43.8 | -2.0% |
| Gross Profit | 18.9 | 26.5 | 12.1 | 9.9 | 9.9 | -0.1% |
| SG&A | | | 11.9 | 12.2 | 10.2 | -16.5% |
| EBITDA | 0.5 | 3.3 | 2.4 | 0.3 | 0.5 | 56.1% |
| Net Income | -4.3 | -9.5 | -5.7 | -12.2 | -1.7 | -86.3% |
Balance Sheet
|
|---|
| Cash | 2.4 | 0.0 | 0.0 | 0.7 | 1.0 | 48.6% |
| Short Term Debt | 0.0 | 12.1 | 2.8 | 0.0 | 0.0 | |
| Long Term Debt | 13.0 | 7.0 | 13.3 | 6.2 | 9.3 | 50.1% |
Cash flow
|
|---|
| Capex | 0.7 | 0.3 | 0.4 | 0.1 | 0.5 | 364.1% |
Ratios
|
|---|
| Revenue growth | -7.7% | -3.2% | -49.4% | -21.8% | -2.0% | |
| EBITDA growth | -113.0% | 612.5% | -26.3% | -86.7% | 56.1% | |
| Gross Margin | 16.2% | 23.4% | 21.1% | 22.2% | 22.6% | 0.4% |
| EBITDA Margin | 0.4% | 2.9% | 4.3% | 0.7% | 1.2% | 0.4% |
| Net Income Margin | -3.7% | -8.4% | -9.9% | -27.2% | -3.8% | 23.4% |
| SG&A, % of revenue | | | 20.9% | 27.2% | 23.2% | -4.0% |
| CAPEX, % of revenue | 0.6% | 0.3% | 0.6% | 0.2% | 1.1% | 0.9% |
| ROIC | -1.8% | 4.9% | 3.3% | -2.8% | -1.0% | 1.8% |
| ROE | -12.6% | -35.6% | -24.9% | -58.2% | -9.8% | 48.4% |
| Net Debt/EBITDA | 22.8x | 5.8x | 6.6x | 16.8x | 16.2x | -0.6x |
Revenue and profitability
Redhall Group's Revenue decreased slightly on 2.0% in FY2016. EBITDA Margin showed almost no change in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased on 4.0 pp from 27.2% to 23.2% in FY2016.
Net Income marign jumped on 23.4 pp from -27.2% to -3.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Redhall Group had CAPEX/Revenue of 1.1%. Redhall Group's CAPEX/Revenue increased slightly on 0.81 pp from 0.28% in FY2013 to 1.1% in FY2016. For the last three years the average CAPEX/Revenue was 0.65%.Battling declining revenue the company invested a large share of EBITDA (93.9%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-0.98%) and ROE (-9.79%). ROIC increased slightly on 1.8 pp from -2.8% to -0.98% in FY2016. ROE surged on 48.4 pp from -58.2% to -9.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 16.2x and Debt / EBITDA is 18.2x. Net Debt / EBITDA dropped on 0.6x from 16.8x to 16.2x in FY2016. Debt jumped on 50.1% in FY2016 while cash jumped on 48.6% in FY2016.
Appendix 1: Peers in Support Services
Below we provide Redhall 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 | 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 ($IBEX) | | 35.7% | 30.0% | 29.8% | 7.0% |
| |
|---|
| Median (55 companies) | 2.4% | 8.0% | 5.0% | 6.9% | 1.7% |
|---|
| Redhall Group ($RHL) | | -3.2% | -49.4% | -21.8% | -2.0% |
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 ($PRP) | 63.4% | 58.3% | 57.7% | 61.4% | 59.2% |
| |
|---|
| Median (49 companies) | 29.5% | 28.8% | 30.4% | 28.7% | 27.8% |
|---|
| Redhall Group ($RHL) | 16.2% | 23.4% | 21.1% | 22.2% | 22.6% |
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% | 7.7% |
|---|
| Redhall Group ($RHL) | 0.4% | 2.9% | 4.3% | 0.7% | 1.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vp ($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% | 1.0% |
|---|
| Redhall Group ($RHL) | 0.6% | 0.3% | 0.6% | 0.2% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 21St Century Technology ($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% | 10.4% | 10.3% |
|---|
| Redhall Group ($RHL) | -1.8% | 4.9% | 3.3% | -2.8% | -1.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mitsubishi Corp ($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 ($KLN) | | | 6.5x | 3.6x | |
| Premier Farnell ($PFLA) | 1.7x | 2.1x | 2.1x | 3.1x | 3.8x |
| |
|---|
| Median (51 companies) | 0.8x | 0.5x | 0.6x | 0.4x | 0.1x |
|---|
| Redhall Group ($RHL) | 22.8x | 5.8x | 6.6x | 16.8x | 16.2x |
