Pittards EBITDA dropped on 255% in 2016 and EBITDA Margin dropped on 17.2 pp from 6.2% to -10.9%
21 Mar 2017 • About Pittards (
$PTD) • By InTwits
Pittards reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pittards is a company in decline: FY2016 revenue growth was -11.5%, 5 years revenue CAGR was -6.7%
- EBITDA Margin is quite volatile: -10.9% in FY2016, 6.2% in FY2015, 6.9% in FY2014, 6.6% in FY2013, 4.6% in FY2012
- Pittards has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's a lot of higher than industry average of 3.8%.
- CAPEX is quite volatile: 1.2 in FY2016, 4.4 in FY2015, 0.61 in FY2014, 0.36 in FY2013, 0.64 in FY2012
- The company has unprofitable business model: ROIC is at -12.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pittards ($PTD) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 37.029 | 35.813 | 34.729 | 30.523 | 27.009 | -11.5% |
| Gross Profit | 6.439 | 7.326 | 7.033 | 6.621 | 2.148 | -67.6% |
| SG&A | | 5.322 | 5.062 | 5.194 | 5.739 | 10.5% |
| EBITDA | 1.705 | 2.364 | 2.390 | 1.905 | -2.951 | -254.9% |
| Net Income | 0.270 | 1.449 | 1.115 | 0.474 | -4.146 | -974.7% |
Balance Sheet
|
|---|
| Cash | 0.817 | 0.522 | 0.529 | 0.485 | 0.206 | -57.5% |
| Short Term Debt | 5.373 | 6.196 | 6.877 | 3.806 | 6.781 | 78.2% |
| Long Term Debt | 1.106 | 1.417 | 1.253 | 3.137 | 3.534 | 12.7% |
Cash flow
|
|---|
| Capex | 0.639 | 0.358 | 0.607 | 4.350 | 1.181 | -72.9% |
Ratios
|
|---|
| Revenue growth | -3.1% | -3.3% | -3.0% | -12.1% | -11.5% | |
| EBITDA growth | -50.0% | 38.7% | 1.1% | -20.3% | -254.9% | |
| Gross Margin | 17.4% | 20.5% | 20.3% | 21.7% | 8.0% | -13.7% |
| EBITDA Margin | 4.6% | 6.6% | 6.9% | 6.2% | -10.9% | -17.2% |
| Net Income Margin | 0.7% | 4.0% | 3.2% | 1.6% | -15.4% | -16.9% |
| SG&A, % of revenue | | 14.9% | 14.6% | 17.0% | 21.2% | 4.2% |
| CAPEX, % of revenue | 1.7% | 1.0% | 1.7% | 14.3% | 4.4% | -9.9% |
| ROIC | 4.7% | 9.1% | 8.2% | 5.2% | -12.0% | -17.2% |
| ROE | 1.7% | 9.0% | 6.4% | 2.2% | -18.3% | -20.5% |
| Net Debt/EBITDA | 3.3x | 3.0x | 3.2x | 3.4x | | -3.4x |
Revenue and profitability
The company's Revenue dropped on 11.5% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.88 pp from 7.2% to 8.1% in FY2016.
Gross Margin dropped on 13.7 pp from 21.7% to 8.0% in FY2016. SG&A as a % of Revenue increased on 4.2 pp from 17.0% to 21.2% in FY2016.
Net Income marign dropped on 16.9 pp from 1.6% to -15.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Pittards had CAPEX/Revenue of 4.4%. CAPEX/Revenue increased on 3.4 pp from 1.00% in FY2013 to 4.4% in FY2016. It's average CAPEX/Revenue for the last three years was 6.8%.
Return on investment
The company operates at negative ROIC (-11.96%) and ROE (-18.25%). ROIC dropped on 17.2 pp from 5.2% to -12.0% in FY2016. ROE dropped on 20.5 pp from 2.2% to -18.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -9.2x and Debt / EBITDA is . Net Debt / EBITDA dropped on 3.4x from 3.4x to in FY2016. Debt surged on 48.6% in FY2016 while cash dropped on 57.5% in FY2016.
Appendix 1: Peers in Personal Goods
Below we provide Pittards benchmarking against other companies in Personal Goods 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Swallowfield ($SWL) | | -16.0% | 3.0% | -1.2% | 10.1% |
| Creightons ($CRL) | | 6.1% | 11.7% | 4.2% | 4.1% |
| Svenska Cellulosa Ab-Sca ($0MCK) | | 8.7% | 12.0% | 10.8% | 1.7% |
| Bagir Grp Ltd ($BAGR) | | 14.8% | -2.5% | -22.5% | -14.8% |
| |
|---|
| Median (4 companies) | | 6.1% | 3.0% | -1.2% | 2.9% |
|---|
| Pittards ($PTD) | | -3.3% | -3.0% | -12.1% | -11.5% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Creightons ($CRL) | 42.1% | 42.8% | 40.8% | 39.2% | 42.2% |
| Svenska Cellulosa Ab-Sca ($0MCK) | 24.2% | 24.8% | 25.1% | 25.9% | 26.9% |
| Bagir Grp Ltd ($BAGR) | 17.0% | 19.1% | 17.4% | 9.8% | 16.4% |
| Swallowfield ($SWL) | 10.6% | 8.2% | 10.3% | 11.8% | 14.8% |
| |
|---|
| Median (4 companies) | 18.7% | 19.5% | 20.3% | 23.2% | 21.7% |
|---|
| Pittards ($PTD) | 17.4% | 20.5% | 20.3% | 21.7% | 8.0% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 12.6% | 15.0% | 15.2% | 14.6% | 15.3% |
| Swallowfield ($SWL) | 4.9% | 1.8% | 4.0% | 4.5% | 6.7% |
| Creightons ($CRL) | 4.0% | 4.6% | 4.7% | 5.0% | 4.7% |
| Bagir Grp Ltd ($BAGR) | 3.9% | 6.1% | 3.4% | -3.9% | 2.2% |
| |
|---|
| Median (4 companies) | 4.9% | 6.1% | 4.7% | 5.0% | 5.7% |
|---|
| Pittards ($PTD) | 4.6% | 6.6% | 6.9% | 6.2% | -10.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 6.6% | 6.1% | 5.5% | 6.6% | 8.0% |
| Creightons ($CRL) | 1.9% | 0.6% | 1.1% | 0.8% | 3.7% |
| Swallowfield ($SWL) | 2.1% | 1.5% | 1.8% | 3.1% | 2.2% |
| Bagir Grp Ltd ($BAGR) | 0.2% | 0.3% | 0.2% | 0.1% | 0.6% |
| |
|---|
| Median (4 companies) | 2.1% | 1.5% | 1.8% | 3.1% | 2.9% |
|---|
| Pittards ($PTD) | 1.7% | 1.0% | 1.7% | 14.3% | 4.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Swallowfield ($SWL) | 10.9% | -3.1% | 5.1% | 8.4% | 18.7% |
| Svenska Cellulosa Ab-Sca ($0MCK) | 5.5% | 8.2% | 8.7% | 9.0% | 9.1% |
| Creightons ($CRL) | 6.3% | 7.0% | 8.4% | 8.8% | 6.7% |
| Bagir Grp Ltd ($BAGR) | 4.7% | 18.8% | 1.9% | -24.8% | -1.6% |
| Far Eastern New Century Corp ($FETD) | 4.3% | 3.6% | 2.6% | 3.0% | |
| |
|---|
| Median (5 companies) | 5.5% | 7.0% | 5.1% | 8.4% | 7.9% |
|---|
| Pittards ($PTD) | 4.7% | 9.1% | 8.2% | 5.2% | -12.0% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 2.9x | 2.6x | 2.2x | 1.7x | 1.8x |
| Swallowfield ($SWL) | -0.0x | -0.8x | -0.3x | 0.3x | -0.1x |
| Creightons ($CRL) | 1.2x | 1.2x | 0.7x | 0.1x | -0.8x |
| Bagir Grp Ltd ($BAGR) | 16.9x | 8.5x | 4.0x | | -5.9x |
| |
|---|
| Median (4 companies) | 2.7x | 2.6x | 2.2x | 1.0x | -0.4x |
|---|
