Servoca EBITDA surged on 19.1% in 2016 and Revenue surged on 17.8%
08 Dec 2016 • About Servoca (
$SVCA) • By InTwits
Servoca reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.6% in FY2016, 5.5% in FY2015, 4.2% in FY2014, 2.6% in FY2013, 1.0% in FY2012
- Servoca has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has highly profitable business model: ROIC is at 22.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Servoca ($SVCA) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 42.485 | 43.058 | 48.989 | 58.778 | 69.234 | 17.8% |
| Gross Profit | 11.977 | 12.255 | 14.204 | 16.858 | 18.641 | 10.6% |
| SG&A | | | | 13.967 | 15.150 | 8.5% |
| EBITDA | 0.413 | 1.098 | 2.081 | 3.252 | 3.872 | 19.1% |
| Net Income | -0.050 | 0.572 | 1.223 | 2.207 | 2.674 | 21.2% |
Balance Sheet
|
|---|
| Cash | 0.223 | 0.177 | 0.197 | 0.803 | 0.342 | -57.4% |
| Short Term Debt | 3.523 | 3.257 | 2.837 | 1.982 | 2.745 | 38.5% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.244 | 0.409 | 0.304 | 0.335 | 0.424 | 26.6% |
Ratios
|
|---|
| Revenue growth | -11.2% | 1.3% | 13.8% | 20.0% | 17.8% | |
| EBITDA growth | -77.5% | 165.9% | 89.5% | 56.3% | 19.1% | |
| Gross Margin | 28.2% | 28.5% | 29.0% | 28.7% | 26.9% | -1.8% |
| EBITDA Margin | 1.0% | 2.6% | 4.2% | 5.5% | 5.6% | 0.1% |
| Net Income Margin | -0.1% | 1.3% | 2.5% | 3.8% | 3.9% | 0.1% |
| SG&A, % of revenue | | | | 23.8% | 21.9% | -1.9% |
| CAPEX, % of revenue | 0.6% | 0.9% | 0.6% | 0.6% | 0.6% | 0.0% |
| ROIC | 1.0% | 7.8% | 14.9% | 22.3% | 22.8% | 0.4% |
| ROE | -0.6% | 7.0% | 13.4% | 20.3% | 20.6% | 0.2% |
| Net Debt/EBITDA | 8.0x | 2.8x | 1.3x | 0.4x | 0.6x | 0.3x |
Revenue and profitability
Servoca's Revenue jumped on 17.8% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 15.8 pp from -19.3% to -3.5% in FY2016.
Gross Margin decreased slightly on 1.8 pp from 28.7% to 26.9% in FY2016. SG&A as a % of Revenue decreased slightly on 1.9 pp from 23.8% to 21.9% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.61% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.60%.
Return on investment
The company operates at high and attractive ROIC (22.76%) and ROE (20.56%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA surged on 0.3x from 0.4x to 0.6x in FY2016. Debt surged on 38.5% in FY2016 while cash dropped on 57.4% in FY2016.
Appendix 1: Peers in Support Services
Below we provide Servoca 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 ($IBEX) | | 35.7% | 30.0% | 29.8% | 7.0% |
| |
|---|
| Median (55 companies) | 4.6% | 8.0% | 4.7% | 6.6% | 1.5% |
|---|
| Servoca ($SVCA) | | 1.3% | 13.8% | 20.0% | 17.8% |
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% | 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 ($PRP) | 63.4% | 58.3% | 57.7% | 61.4% | 59.2% |
| |
|---|
| Median (49 companies) | 29.5% | 28.8% | 30.4% | 28.4% | 27.3% |
|---|
| Servoca ($SVCA) | 28.2% | 28.5% | 29.0% | 28.7% | 26.9% |
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% | 7.5% |
|---|
| Servoca ($SVCA) | 1.0% | 2.6% | 4.2% | 5.5% | 5.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vp ($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% | 1.1% |
|---|
| Servoca ($SVCA) | 0.6% | 0.9% | 0.6% | 0.6% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 21St Century Technology ($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% | |
| Rtc Group ($RTC) | 14.6% | 17.6% | 19.9% | 22.2% | |
| Mortice Ltd ($MORT) | 32.2% | 29.2% | 19.6% | 21.9% | |
| |
|---|
| Median (55 companies) | 9.9% | 7.9% | 9.3% | 10.2% | 9.4% |
|---|
| Servoca ($SVCA) | 1.0% | 7.8% | 14.9% | 22.3% | 22.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Redhall Group ($RHL) | 22.8x | 5.8x | 6.6x | 16.8x | 16.2x |
| 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 | 0.3x |
|---|
| Servoca ($SVCA) | 8.0x | 2.8x | 1.3x | 0.4x | 0.6x |
