Empresaria Group revenue growth accelerated to 7.0% in FY2016 vs. 5.1% a year earliner
01 Mar 2017 • About Empresaria Group (
$EMR) • By InTwits
Empresaria Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.9% in FY2016 vs. 4.6% in FY2015 vs. 3.2% in FY2012
- Empresaria Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has highly profitable business model: ROIC is at 13.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.0x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Empresaria Group ($EMR) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 194.3 | 194.4 | 187.9 | 187.3 | 270.4 | 44.4% |
| Gross Profit | 43.9 | 42.6 | 44.6 | 49.2 | 59.0 | 19.9% |
| SG&A | | 36.6 | 38.0 | 41.2 | 49.2 | 19.4% |
| EBITDA | 6.3 | 6.6 | 7.5 | 8.7 | 10.5 | 20.7% |
| Net Income | 1.4 | 2.4 | 3.5 | 4.4 | 4.8 | 9.1% |
Balance Sheet
|
|---|
| Cash | 6.2 | 5.7 | 7.8 | 7.7 | 18.0 | 133.8% |
| Short Term Debt | 6.4 | 13.6 | 11.2 | 9.9 | 13.4 | 35.4% |
| Long Term Debt | 7.9 | 7.3 | 6.4 | 5.1 | 15.1 | 196.1% |
Cash flow
|
|---|
| Capex | 0.5 | 0.8 | 1.0 | 0.9 | 0.8 | -11.1% |
Ratios
|
|---|
| Revenue growth | -7.0% | 0.1% | -3.3% | -0.3% | 44.4% | |
| EBITDA growth | 1.6% | 4.8% | 13.6% | 16.0% | 20.7% | |
| Gross Margin | 22.6% | 21.9% | 23.7% | 26.3% | 21.8% | -4.4% |
| EBITDA Margin | 3.2% | 3.4% | 4.0% | 4.6% | 3.9% | -0.8% |
| Net Income Margin | 0.7% | 1.2% | 1.9% | 2.3% | 1.8% | -0.6% |
| SG&A, % of revenue | | 18.8% | 20.2% | 22.0% | 18.2% | -3.8% |
| CAPEX, % of revenue | 0.3% | 0.4% | 0.5% | 0.5% | 0.3% | -0.2% |
| ROIC | 12.4% | 12.6% | 14.4% | 16.1% | 13.2% | -2.9% |
| ROE | 6.3% | 11.4% | 15.4% | 16.1% | 13.5% | -2.6% |
| Net Debt/EBITDA | 1.3x | 2.3x | 1.3x | 0.8x | 1.0x | 0.2x |
Revenue and profitability
Empresaria Group's Revenue jumped on 44.4% in FY2016. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.76 pp from 4.6% to 3.9% in FY2016.
Gross Margin decreased on 4.4 pp from 26.3% to 21.8% in FY2016. SG&A as a % of Revenue decreased on 3.8 pp from 22.0% to 18.2% in FY2016.
Net Income marign decreased slightly on 0.57 pp from 2.3% to 1.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.30% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.44%.
Return on investment
The company operates at good ROIC (13.19%) and ROE (13.50%). ROIC decreased on 2.9 pp from 16.1% to 13.2% in FY2016. ROE decreased on 2.6 pp from 16.1% to 13.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 2.7x. Net Debt / EBITDA surged on 0.2x from 0.8x to 1.0x in FY2016. Debt jumped on 90% in FY2016 while cash surged on 134% in FY2016.
Appendix 1: Peers in Support Services
Below you can find Empresaria 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 ($IBEX) | | 35.7% | 30.0% | 29.8% | 7.0% |
| |
|---|
| Median (55 companies) | -0.9% | 8.0% | 5.0% | 6.9% | 2.9% |
|---|
| Empresaria Group ($EMR) | | 0.1% | -3.3% | -0.3% | 44.4% |
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 ($PRP) | 63.4% | 58.3% | 57.7% | 61.4% | 59.2% |
| |
|---|
| Median (49 companies) | 29.5% | 28.8% | 30.4% | 28.7% | 27.0% |
|---|
| Empresaria Group ($EMR) | 22.6% | 21.9% | 23.7% | 26.3% | 21.8% |
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% | 7.1% |
|---|
| Empresaria Group ($EMR) | 3.2% | 3.4% | 4.0% | 4.6% | 3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vp ($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% |
|---|
| Empresaria Group ($EMR) | 0.3% | 0.4% | 0.5% | 0.5% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 21St Century Technology ($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 ($SVCA) | 1.0% | 7.8% | 14.9% | 22.3% | 22.8% |
| Rtc Group ($RTC) | 14.6% | 17.6% | 19.9% | 22.2% | 15.4% |
| |
|---|
| Median (55 companies) | 9.5% | 7.8% | 9.3% | 10.2% | 10.3% |
|---|
| Empresaria Group ($EMR) | 12.4% | 12.6% | 14.4% | 16.1% | 13.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Redhall Group ($RHL) | 22.8x | 5.8x | 6.6x | 16.8x | 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 | 0.5x |
|---|
| Empresaria Group ($EMR) | 1.3x | 2.3x | 1.3x | 0.8x | 1.0x |
