Nakama Group EBITDA dropped on 3,480% and EBITDA Margin decreased on 5.1 pp from 0.11% to -5.0%
10 Sep 2018 • About Nakama Group (
$NAK) • By InTwits
Nakama Group reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is declining: -5.0% in FY2018 vs. 0.1% in FY2017 vs. 1.3% in FY2014
- Nakama Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has unprofitable business model: ROIC is -74.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Nakama Group's Revenue dropped on 25.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.1 pp from 0.11% to -5.0% in FY2018. During the last 5 years EBITDA Margin topped in FY2015 at 2.5% and was declining since that time.
Gross Margin increased on 4.1 pp from 27.5% to 31.6% in FY2018. Gross Margin followed a growing trend at 1.7 pp per annum in the last 5 years. SG&A as a % of Revenue jumped on 11.7 pp from 28.4% to 40.1% in FY2018.
Net Income margin decreased on 7.5 pp from -1.6% to -9.0% in FY2018. During the last 5 years Net Income margin topped in FY2015 at 1.1% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Nakama Group's CAPEX/Revenue was 0.083% in FY2018. CAPEX/Revenue showed almost no change from FY2015 to FY2018. It's average level of CAPEX/Revenue for the last three years was 0.24%. During FY2014-FY2018 CAPEX as a % of Revenue topped in FY2016 at 0.43% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.4x and Debt / EBITDA is . Net Debt / EBITDA dropped on 48.5x from 48.5x to in FY2018. Debt dropped on 17.3% while cash dropped on 45.6%.
Nakama Group has short term refinancing risk: cash is only 11.6% of short term debt.
Financial and operational results
FY ended 31 Mar 2018
Nakama Group ($NAK) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 17.502 | 21.715 | 21.043 | 22.519 | 16.792 | -25.4% |
| Gross Profit | 4.353 | 5.321 | 5.739 | 6.193 | 5.311 | -14.2% |
| SG&A | | 4.985 | 5.702 | 6.404 | 6.736 | 5.2% |
| EBITDA | 0.230 | 0.550 | 0.214 | 0.025 | -0.845 | -3,480.0% |
| Net Income | -0.202 | 0.244 | -0.070 | -0.352 | -1.514 | |
Balance Sheet
|
|---|
| Cash | 0.114 | 0.316 | 0.582 | 0.259 | 0.141 | -45.6% |
| Short Term Debt | 1.319 | 1.071 | 1.247 | 1.471 | 1.217 | -17.3% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.035 | 0.058 | 0.091 | 0.045 | 0.014 | -68.9% |
Ratios
|
|---|
| Revenue growth | 5.0% | 24.1% | -3.1% | 7.0% | -25.4% | |
| EBITDA growth | 1,110.5% | 139.1% | -61.1% | -88.3% | -3,480.0% | |
|
|---|
| Gross Margin | 24.9% | 24.5% | 27.3% | 27.5% | 31.6% | 4.1% |
| EBITDA Margin | 1.3% | 2.5% | 1.0% | 0.1% | -5.0% | -5.1% |
| SG&A, % of revenue | | 23.0% | 27.1% | 28.4% | 40.1% | 11.7% |
| Net Income Margin | -1.2% | 1.1% | -0.3% | -1.6% | -9.0% | -7.5% |
| CAPEX, % of revenue | 0.2% | 0.3% | 0.4% | 0.2% | 0.1% | -0.1% |
|
|---|
| ROIC | 0.7% | 11.8% | -0.2% | -7.4% | -74.5% | -67.2% |
| ROE | -11.8% | 13.9% | -3.8% | -21.9% | | |
| Net Debt/EBITDA | 5.2x | 1.4x | 3.1x | 48.5x | |
Peers in Support Services
Below you can find Nakama 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Mobilityone Ltd ($MBO) | 3.7% | 23.0% | -5.3% | 37.9% | |
| Mortice Ltd ($MORT) | | 18.9% | 51.1% | 36.1% | 21.1% |
| Rws Hldgs ($RWS) | 20.9% | 1.8% | 28.1% | 34.5% | |
| Empresaria Group ($EMR) | -3.3% | -0.3% | 44.4% | 32.1% | |
| Norish ($NSH) | 3.7% | 16.4% | 16.7% | 31.4% | |
| |
|---|
| Median (49 companies) | 5.6% | 6.9% | 3.5% | 6.9% | 8.2% |
|---|
| Nakama Group ($NAK) | | 24.1% | -3.1% | 7.0% | -25.4% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inspired Energy ($INSE) | 78.7% | 76.2% | 80.5% | 83.1% | |
| Ienergizer Ltd ($IBPO) | 76.8% | 72.7% | 71.3% | 71.2% | 69.7% |
| Spectra Systems Corp ($SPSY) | 51.4% | 47.6% | 68.3% | 71.1% | |
| Vianet Group ($VNET) | 58.8% | 69.2% | 70.1% | 69.7% | 69.9% |
| Grafenia ($GRA) | 56.1% | 70.8% | 66.3% | 63.0% | 57.0% |
| |
|---|
| Median (43 companies) | 29.2% | 28.4% | 27.0% | 28.1% | 24.9% |
|---|
| Nakama Group ($NAK) | 24.9% | 24.5% | 27.3% | 27.5% | 31.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Northgate ($67GX) | 40.6% | 39.4% | 38.3% | 35.9% | 35.4% |
| Spectra Systems Corp ($SPSY) | 12.3% | 6.0% | 19.7% | 34.0% | |
| Inspired Energy ($INSE) | 1.5% | 35.4% | 34.4% | 32.4% | |
| Vp ($VP.) | 24.2% | 26.2% | 28.4% | 28.6% | 27.2% |
| Rws Hldgs ($RWS) | 22.8% | 23.1% | 26.4% | 25.5% | |
| |
|---|
| Median (49 companies) | 6.8% | 7.6% | 5.7% | 5.7% | 8.2% |
|---|
| Nakama Group ($NAK) | 1.3% | 2.5% | 1.0% | 0.1% | -5.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vp ($VP.) | 21.6% | 25.7% | 24.1% | 26.0% | 23.6% |
| Augean ($AUG) | 12.3% | 12.3% | 11.0% | 10.0% | |
| Petards Group ($PEG) | 0.5% | 0.9% | 1.7% | 10.0% | |
| Capital Drilling Ltd ($CAPD) | 13.9% | 10.1% | 13.7% | 9.0% | |
| Billing Services Group ($BILL) | 2.1% | 4.1% | 3.0% | 4.5% | |
| |
|---|
| Median (49 companies) | 1.0% | 1.0% | 1.1% | 0.9% | 1.2% |
|---|
| Nakama Group ($NAK) | 0.2% | 0.3% | 0.4% | 0.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Sthree ($STHR) | 38.1% | 50.2% | 46.2% | 43.4% | |
| Mortice Ltd ($MORT) | 19.6% | 21.9% | 14.5% | 23.2% | 18.4% |
| Petards Group ($PEG) | 24.7% | 23.9% | 22.7% | 20.3% | |
| Rws Hldgs ($RWS) | 24.5% | 23.3% | 23.5% | 20.2% | |
| Latham(James) ($LTHM) | 17.5% | 16.8% | 19.2% | 19.3% | 17.4% |
| |
|---|
| Median (50 companies) | 11.1% | 10.4% | 7.9% | 7.6% | 7.4% |
|---|
| Nakama Group ($NAK) | 0.7% | 11.8% | -0.2% | -7.4% | -74.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| 21St Century Technology ($C21) | -0.8x | -0.2x | | 11.2x | |
| Ceps ($CEPS) | 6.6x | 3.8x | 13.9x | 5.8x | |
| Ibex Global Solutions ($IBEX) | 2.7x | 1.0x | 1.7x | 4.5x | |
| Menzies(John) ($68HN) | 2.0x | 2.4x | 1.2x | 3.0x | |
| Mitsubishi Corp ($MBC) | 14.3x | 12.5x | 53.4x | 2.9x | 6.2x |
| |
|---|
| Median (42 companies) | 0.1x | -0.1x | 0.1x | 0.2x | 1.2x |
|---|
| Nakama Group ($NAK) | 5.2x | 1.4x | 3.1x | 48.5x | |
