Fulcrum Utility Services Ld ROIC dropped on 73.6 pp from 103% to 29.9% in 2018 while EBITDA increased on 9.6%
05 Jun 2018 • About Fulcrum Utility Services Ld (
$FCRM) • By InTwits
Fulcrum Utility Services Ld reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 17.4% in FY2018, 18.8% in FY2017, 13.8% in FY2016, 6.4% in FY2015, 1.3% in FY2014
- Fulcrum Utility Services Ld has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: £0m in FY2018, £0m in FY2017, £0m in FY2016, £0m in FY2015, £1m in FY2014
- The company has highly profitable business model: ROIC is 29.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 18.8%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 12.0 pp from 5.8% to 17.8% in FY2018. EBITDA Margin stuck to a growing trend at 4.5 pp per annum in FY2014-FY2018.
Gross Margin decreased on 4.0 pp from 40.8% to 36.7% in FY2018. Gross Margin stuck to a growing trend at 3.6 pp per annum in the last 5 years. SG&A as a % of Revenue decreased on 2.6 pp from 21.9% to 19.4% in FY2018. SG&A as a % of Revenue declined at -3.9 pp per annum in the last 5 years.
Net Income margin increased on 2.2 pp from 13.9% to 16.1% in FY2018. Net Income margin followed a growing trend in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.38% in FY2018. CAPEX/Revenue showed almost no change from FY2015 to FY2018. For the last three years the average CAPEX/Revenue was 0.51%.
Return on investment
The company operates at high and attractive ROIC (29.9%) and ROE (30.9%). ROIC dropped on 73.6 pp from 103% to 29.9% in FY2018. ROE dropped on 33.6 pp from 64.4% to 30.9% in FY2018.
Leverage (Debt)
The company has no debt. Cash dropped on 24.9%.
Financial and operational results
FY ended 31 Mar 2018
Fulcrum Utility Services Ld ($FCRM) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 38.285 | 33.739 | 36.109 | 37.736 | 44.847 | 18.8% |
| Gross Profit | 9.491 | 9.730 | 12.985 | 15.378 | 16.477 | 7.1% |
| SG&A | 13.874 | 9.081 | 8.002 | 8.270 | 8.679 | 4.9% |
| EBITDA | 0.492 | 2.170 | 4.983 | 7.112 | 7.798 | 9.6% |
| Net Income | -4.458 | 2.802 | 4.734 | 5.246 | 7.217 | 37.6% |
Balance Sheet
|
|---|
| Cash | 5.326 | 5.746 | 8.323 | 12.561 | 9.431 | -24.9% |
| Short Term Debt | 0.274 | 0.168 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.171 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.408 | 0.032 | 0.056 | 0.381 | 0.170 | -55.4% |
Ratios
|
|---|
| Revenue growth | -1.2% | -11.9% | 7.0% | 4.5% | 18.8% | |
| EBITDA growth | 22.7% | 341.1% | 129.6% | 42.7% | 9.6% | |
|
|---|
| Gross Margin | 24.8% | 28.8% | 36.0% | 40.8% | 36.7% | -4.0% |
| EBITDA Margin | 1.3% | 6.4% | 13.8% | 18.8% | 17.4% | -1.5% |
| SG&A, % of revenue | 36.2% | 26.9% | 22.2% | 21.9% | 19.4% | -2.6% |
| Net Income Margin | -11.6% | 8.3% | 13.1% | 13.9% | 16.1% | 2.2% |
| CAPEX, % of revenue | 3.7% | 0.1% | 0.2% | 1.0% | 0.4% | -0.6% |
|
|---|
| ROIC | | | 347.2% | 103.4% | 29.9% | -73.6% |
| ROE | | | 136.6% | 64.4% | 30.9% | -33.6% |
| Net Debt/EBITDA | -9.9x | -2.6x | -1.7x | -1.8x | -1.2x | 0.6x |
Peers in Financial Services
Below we provide Fulcrum Utility Services Ld benchmarking against other companies in Financial 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Starvest ($SVE) | | -52.9% | -4.8% | 346.6% | |
| Henderson Group ($HGG) | 13.8% | 13.0% | -1.0% | 90.7% | |
| Arden Partners ($ARDN) | -21.3% | -31.0% | 6.8% | 78.9% | |
| Impax Asset Management Group ($IPX) | 10.3% | -3.1% | 6.8% | 55.2% | |
| Afh Financial Group ($AFHP) | 39.3% | 39.5% | 15.0% | 39.4% | |
| |
|---|
| Median (33 companies) | 7.4% | 2.9% | 5.0% | 12.9% | 31.3% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | | -11.9% | 7.0% | 4.5% | 18.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Record ($REC) | 99.6% | 99.3% | 99.0% | 98.8% | |
| London Capital Group Hldgs ($LCG) | 73.6% | 67.9% | 84.2% | 86.4% | |
| Schroders ($SDRC) | 77.7% | 78.3% | 79.9% | 80.0% | |
| First Property Group ($FPO) | 67.9% | 83.0% | 80.6% | 78.6% | |
| Walker Crips Group ($WCW) | 68.2% | 66.7% | 67.7% | 69.8% | |
| |
|---|
| Median (13 companies) | 52.2% | 52.8% | 63.3% | 53.4% | 53.8% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | 24.8% | 28.8% | 36.0% | 40.8% | 36.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | 77.0% | 80.3% | 79.3% | 79.5% | 81.8% |
| Hargreaves Lansdown ($HL.) | 58.7% | 51.2% | 57.5% | 69.3% | |
| Plus500 Ltd ($PLUS) | 63.5% | 48.2% | 46.0% | 59.3% | |
| First Property Group ($FPO) | 40.2% | 42.9% | 52.2% | 57.4% | |
| Livermore Investments Group Ltd ($LIV) | 78.8% | 83.5% | 71.9% | 56.8% | |
| |
|---|
| Median (30 companies) | 16.8% | 18.3% | 18.5% | 22.8% | 61.8% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | 1.3% | 6.4% | 13.8% | 18.8% | 17.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($DSS) | 15.0% | 6.5% | 15.1% | 11.2% | |
| First Property Group ($FPO) | 0.3% | 0.1% | 6.4% | 8.5% | |
| Schroders ($SDRC) | 1.5% | 1.9% | 3.0% | 6.9% | |
| Leeds Group ($LDSG) | 0.6% | 0.9% | 11.5% | 5.6% | |
| Record ($REC) | 0.1% | 0.6% | 0.1% | 3.8% | |
| |
|---|
| Median (30 companies) | 0.7% | 1.0% | 1.0% | 1.0% | 1.3% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | 3.7% | 0.1% | 0.2% | 1.0% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Plus500 Ltd ($PLUS) | 164.3% | 116.5% | 118.9% | 143.2% | |
| Hargreaves Lansdown ($HL.) | 101.0% | 87.5% | 90.0% | 93.3% | |
| Guinness Peat Group ($GPG) | 10.0% | 13.7% | 23.8% | 28.8% | |
| Lighthouse Group ($LGT) | 8.6% | 14.6% | 25.7% | 26.6% | |
| Numis Corp ($NUM) | 20.7% | 22.3% | 25.2% | 26.3% | |
| |
|---|
| Median (34 companies) | 8.6% | 7.7% | 7.5% | 8.5% | 11.4% |
|---|
| Fulcrum Utility Services Ld ($FCRM) | | | 347.2% | 103.4% | 29.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($DSS) | 10.7x | 8.0x | 13.4x | 12.7x | |
| First Property Group ($FPO) | 5.6x | 12.3x | 9.4x | 7.6x | |
| Leeds Group ($LDSG) | -0.5x | -0.3x | 1.4x | 2.6x | |
| S & U ($46IE) | 1.7x | 3.1x | 0.5x | 1.8x | 3.2x |
| Guinness Peat Group ($GPG) | -2.1x | -1.6x | -0.4x | 1.2x | |
| |
|---|
| Median (26 companies) | -1.9x | -1.1x | -1.0x | -1.3x | 1.3x |
|---|
| Fulcrum Utility Services Ld ($FCRM) | -9.9x | -2.6x | -1.7x | -1.8x | -1.2x |
