Abbey EBITDA decreased on 6.9% and Revenue increased slightly on 0.92%
11 Jul 2018 • About Abbey (
$ABBY) • By InTwits
Abbey reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Abbey has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.3%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: £5m in FY2018, £11m in FY2017, £4m in FY2016, £6m in FY2015, £6m in FY2014
- The company has highly profitable business model: ROIC is 17.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Abbey's Revenue increased slightly on 0.92%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 10.4 pp from 2.2% to 12.6% in FY2018. During FY2014-FY2018 EBITDA Margin topped in FY2017 at 32.7%.
Gross Margin decreased on 2.7 pp from 33.7% to 31.0% in FY2018. During FY2014-FY2018 Gross Margin topped in FY2017 at 33.7%. SG&A as a % of Revenue decreased slightly on 1.3 pp from 5.6% to 4.3% in FY2018.
Net Income margin decreased slightly on 1.5 pp from 23.9% to 22.4% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Abbey had CAPEX/Revenue of 4.6%. Abbey showed decline in CAPEX/Revenue of 3.4 pp from 8.0% in FY2015 to 4.6% in FY2018. Average CAPEX/Revenue for the last three years was 5.2%. CAPEX as a % of Revenue stuck to a declining trend at -0.94 pp per annum in the last 5 years.
Return on investment
The company operates at good ROIC (17.6%) and ROE (15.0%). ROIC decreased on 3.5 pp from 21.1% to 17.6% in FY2018. ROE decreased on 2.5 pp from 17.6% to 15.0% in FY2018. During the last 5 years ROIC topped in FY2016 at 22.9% and was declining since that time. During the last 5 years ROE topped in FY2016 at 18.7% and was declining since that time.
Leverage (Debt)
The company has no debt. Cash dropped on 17.1%.
Financial and operational results
FY ended 30 Apr 2018
Abbey ($ABBY) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 114.2 | 172.5 | 220.6 | 216.5 | 218.5 | 0.9% |
| Gross Profit | 29.5 | 52.8 | 73.1 | 72.9 | 67.7 | -7.0% |
| SG&A | 9.1 | 6.5 | 12.5 | 12.1 | 9.4 | -22.1% |
| EBITDA | 25.8 | 53.8 | 69.8 | 70.7 | 65.8 | -6.9% |
| Net Income | 18.7 | 39.6 | 49.5 | 51.8 | 48.9 | -5.6% |
Balance Sheet
|
|---|
| Cash | 30.5 | 67.4 | 90.4 | 95.1 | 78.9 | -17.1% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 9.2 | 13.9 | 11.8 | 12.0 | 10.1 | -16.2% |
Ratios
|
|---|
| Revenue growth | 15.9% | 51.0% | 27.9% | -1.9% | 0.9% | |
| EBITDA growth | 97.3% | 108.7% | 29.8% | 1.3% | -6.9% | |
|
|---|
| Gross Margin | 25.8% | 30.6% | 33.1% | 33.7% | 31.0% | -2.7% |
| EBITDA Margin | 22.6% | 31.2% | 31.7% | 32.7% | 30.1% | -2.5% |
| SG&A, % of revenue | 7.9% | 3.8% | 5.7% | 5.6% | 4.3% | -1.3% |
| Net Income Margin | 16.4% | 23.0% | 22.4% | 23.9% | 22.4% | -1.5% |
| CAPEX, % of revenue | 8.0% | 8.0% | 5.3% | 5.5% | 4.6% | -0.9% |
|
|---|
| ROIC | 11.2% | 21.1% | 22.9% | 21.1% | 17.6% | -3.5% |
| ROE | 10.3% | 18.1% | 18.7% | 17.6% | 15.0% | -2.5% |
| Net Debt/EBITDA | -1.2x | -1.3x | -1.3x | -1.3x | -1.2x | 0.1x |
Peers in Household Goods & Home Construction
Below we provide Abbey benchmarking against other companies in Household Goods & Home Construction 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 |
|---|
| Reckitt Benckiser Group ($RB.) | | 0.4% | 6.8% | 21.4% | |
| Taylor Wimpey ($TW.) | | 16.9% | 17.1% | 7.9% | |
| Colefax Group ($CFX) | 10.5% | -1.6% | 0.1% | 4.7% | |
| Crest Nicholson Hldgs ($CRST) | 21.0% | 26.5% | 23.9% | 4.6% | |
| Depa Ltd ($DEPS) | | -15.4% | 5.5% | 4.0% | |
| |
|---|
| Median (9 companies) | 2.7% | 0.4% | 4.9% | 4.0% | |
|---|
| Abbey ($ABBY) | | 51.0% | 27.9% | -1.9% | 0.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.7% | 59.1% | 61.2% | 59.7% | |
| Colefax Group ($CFX) | 53.3% | 54.7% | 56.3% | 55.1% | |
| John Lewis Of Hungerford ($JLH) | 52.4% | | 49.5% | 50.6% | |
| Crest Nicholson Hldgs ($CRST) | 28.6% | 27.5% | 26.7% | 26.4% | |
| Taylor Wimpey ($TW.) | 23.8% | 25.1% | 25.6% | 26.1% | |
| |
|---|
| Median (7 companies) | 26.8% | 25.5% | 26.5% | 26.4% | |
|---|
| Abbey ($ABBY) | 25.8% | 30.6% | 33.1% | 33.7% | 31.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Reckitt Benckiser Group ($RB.) | 26.3% | 27.2% | 25.8% | 25.7% | |
| Crest Nicholson Hldgs ($CRST) | 20.3% | 20.4% | 20.6% | 20.4% | |
| Taylor Wimpey ($TW.) | 18.6% | 20.2% | 20.8% | 17.8% | |
| Depa Ltd ($DEPS) | 4.8% | -8.1% | 6.6% | 12.3% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 10.7% | 10.5% | 11.5% | 9.8% | |
| |
|---|
| Median (9 companies) | 9.1% | 9.6% | 11.5% | 9.8% | |
|---|
| Abbey ($ABBY) | 22.6% | 31.2% | 31.7% | 32.7% | 30.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Colefax Group ($CFX) | 2.0% | 2.9% | 3.0% | 5.1% | |
| Reckitt Benckiser Group ($RB.) | 1.8% | 1.7% | 1.9% | 2.5% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 3.6% | 3.5% | 2.9% | 2.0% | |
| John Lewis Of Hungerford ($JLH) | 9.1% | | 2.6% | 1.7% | |
| Depa Ltd ($DEPS) | 1.1% | 0.6% | 0.6% | 1.2% | |
| |
|---|
| Median (8 companies) | 1.1% | 1.4% | 1.9% | 1.5% | |
|---|
| Abbey ($ABBY) | 8.0% | 8.0% | 5.3% | 5.5% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Taylor Wimpey ($TW.) | 21.7% | 24.1% | 26.8% | 23.0% | |
| Crest Nicholson Hldgs ($CRST) | 22.2% | 22.0% | 23.5% | 22.5% | |
| Reckitt Benckiser Group ($RB.) | 19.7% | 20.3% | 19.1% | 12.9% | |
| Depa Ltd ($DEPS) | 1.8% | -10.8% | 4.1% | 11.4% | |
| Colefax Group ($CFX) | 22.0% | 20.6% | 20.2% | 11.2% | |
| |
|---|
| Median (9 companies) | 7.3% | 16.0% | 18.2% | 11.2% | |
|---|
| Abbey ($ABBY) | 11.2% | 21.1% | 22.9% | 21.1% | 17.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.7x | 0.7x | 0.6x | 3.6x | |
| Teco Electric & Machinery Co Ltd ($TECD) | -1.3x | -0.3x | 0.4x | -0.1x | |
| Crest Nicholson Hldgs ($CRST) | 0.1x | 0.2x | -0.4x | -0.2x | |
| Taylor Wimpey ($TW.) | -0.2x | -0.4x | -0.5x | -0.7x | |
| Colefax Group ($CFX) | -0.6x | -1.0x | -1.4x | -1.2x | |
| |
|---|
| Median (7 companies) | -0.6x | -0.4x | -0.4x | -0.7x | |
|---|
| Abbey ($ABBY) | -1.2x | -1.3x | -1.3x | -1.3x | -1.2x |
