Alumasc Group Net Income dropped on 34.0% and Revenue decreased on 6.1%
11 Sep 2018 • About Alumasc Group (
$ALU) • By InTwits
Alumasc Group reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alumasc Group is a company in decline: FY2018 revenue growth was -6.1%, 5 years revenue CAGR was -3.4%
- EBITDA Margin is relatively stable: 7.8% in FY2018 vs. 9.8% in FY2017 vs. 9.8% in FY2014
- Alumasc Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 6.5%
- CAPEX is quite volatile: £3m in FY2018, £1m in FY2017, £1m in FY2016, £1m in FY2015, £1m in FY2014
- The company has highly profitable business model: ROIC is 23.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.6x while industry average is -0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Alumasc Group's Revenue decreased on 6.1%. During the last 5 years Revenue growth topped in FY2017 at 13.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.9 pp from 9.8% to 7.8% in FY2018.
Gross Margin decreased slightly on 0.66 pp from 31.3% to 30.6% in FY2018. During the last 5 years Gross Margin topped in FY2016 at 33.4% and was declining since that time.
Net Income margin decreased slightly on 1.9 pp from 6.2% to 4.4% in FY2018. During the last 5 years Net Income margin topped in FY2016 at 7.0% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.1% in FY2018. Alumasc Group's CAPEX/Revenue increased slightly on 1.9 pp from 1.2% in FY2015 to 3.1% in FY2018. It's average level of CAPEX/Revenue for the last three years was 1.7%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2017 at 0.87%.
Return on investment
The company operates at high and attractive ROIC (23.1%) while ROE is a bit lower (19.2%). ROIC dropped on 27.1 pp from 50.2% to 23.1% in FY2018. ROE dropped on 16.1 pp from 35.3% to 19.2% in FY2018. During FY2014-FY2018 ROIC topped in FY2017 at 50.2%. During the last 5 years ROE topped in FY2016 at 39.9% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 1.2x. Net Debt / EBITDA jumped on 1.2x from -0.6x to 0.6x in FY2018. Debt jumped on 222% while cash dropped on 48.3%. During the last 5 years Net Debt/EBITDA bottomed in FY2016 at -1.0x and was growing since that time.
The company has no short term refinancing risk: short term debt is zero.
Financial and operational results
FY ended 30 Jun 2018
Alumasc Group ($ALU) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 88.9 | 90.3 | 92.2 | 104.8 | 98.4 | -6.1% |
| Gross Profit | 28.1 | 29.6 | 30.8 | 32.7 | 30.1 | -8.1% |
| EBITDA | 8.7 | 8.8 | 8.9 | 10.3 | 7.7 | -24.8% |
| Net Income | 4.0 | 4.4 | 6.5 | 6.5 | 4.3 | -34.0% |
Balance Sheet
|
|---|
| Cash | 2.2 | 5.9 | 10.5 | 9.0 | 4.7 | -48.3% |
| Short Term Debt | 0.0 | 5.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 9.9 | 0.0 | 1.9 | 2.9 | 9.5 | 222.3% |
Cash flow
|
|---|
| Capex | 1.3 | 1.1 | 1.0 | 0.9 | 3.0 | 234.7% |
Ratios
|
|---|
| Revenue growth | -23.9% | 1.6% | 2.1% | 13.6% | -6.1% | |
| EBITDA growth | -8.3% | 0.7% | 2.2% | 14.7% | -24.8% | |
|
|---|
| Gross Margin | 31.6% | 32.7% | 33.4% | 31.3% | 30.6% | -0.7% |
| EBITDA Margin | 9.8% | 9.7% | 9.7% | 9.8% | 7.8% | -1.9% |
| Net Income Margin | 4.5% | 4.8% | 7.0% | 6.2% | 4.4% | -1.9% |
| CAPEX, % of revenue | 1.5% | 1.2% | 1.1% | 0.9% | 3.1% | 2.2% |
|
|---|
| ROIC | 22.6% | 36.0% | 47.8% | 50.2% | 23.1% | -27.1% |
| ROE | 20.5% | 26.5% | 39.9% | 35.3% | 19.2% | -16.1% |
| Net Debt/EBITDA | 0.9x | -0.1x | -1.0x | -0.6x | 0.6x | 1.2x |
Peers in Construction & Materials
Below you can find Alumasc Group benchmarking vs. other companies in Construction & Materials 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 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 68.0% | -56.5% | 5.3% | 46.2% | |
| Mountfield Group ($MOGP) | -4.1% | 10.4% | -26.1% | 31.7% | |
| LSR Group OJSC ($LSRG) | | -6.0% | 22.1% | 30.0% | |
| Michelmersh Brick Hldgs ($MBH) | 9.8% | 2.1% | 3.4% | 26.0% | |
| Steppe Cement ($STCM) | -8.9% | -19.7% | -44.0% | 25.5% | |
| |
|---|
| Median (23 companies) | 10.7% | 1.7% | 6.6% | 7.1% | 8.9% |
|---|
| Alumasc Group ($ALU) | | 1.6% | 2.1% | 13.6% | -6.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 21.7% | 51.7% | 64.7% | 58.1% | |
| Heath(Samuel)& Sons ($HSM) | 48.6% | 47.6% | 48.1% | 51.1% | 49.6% |
| James Halstead ($JHD) | 41.0% | 41.7% | 42.4% | 43.5% | 41.9% |
| Billington Hldgs ($BILN) | 38.8% | 36.3% | 37.7% | 35.6% | |
| Michelmersh Brick Hldgs ($MBH) | 31.1% | 38.2% | 34.4% | 35.4% | |
| |
|---|
| Median (22 companies) | 25.8% | 29.1% | 29.7% | 26.4% | 34.1% |
|---|
| Alumasc Group ($ALU) | 31.6% | 32.7% | 33.4% | 31.3% | 30.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lucky Cement Ltd ($LKCS) | 24.4% | 26.5% | 30.4% | 29.7% | 22.4% |
| James Halstead ($JHD) | 20.1% | 20.9% | 21.6% | 20.8% | |
| Asia Cement Corp ($ASCD) | 18.3% | 14.8% | 19.1% | 19.4% | |
| Michelmersh Brick Hldgs ($MBH) | 14.1% | 20.3% | 18.7% | 19.4% | |
| Smart(J.)& Co(Contractors) ($SMJ) | -2.0% | 12.3% | 13.7% | 18.6% | |
| |
|---|
| Median (23 companies) | 9.3% | 9.5% | 11.9% | 9.0% | 12.2% |
|---|
| Alumasc Group ($ALU) | 9.8% | 9.7% | 9.7% | 9.8% | 7.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 12.8% | 54.9% | 313.4% | 40.8% | |
| Lucky Cement Ltd ($LKCS) | 6.9% | 12.0% | 9.0% | 13.0% | 20.3% |
| Accsys Technologies ($AXS) | 1.7% | 2.0% | 4.9% | 11.3% | 48.5% |
| Low & Bonar ($BD46) | 4.6% | 9.1% | 4.7% | 6.4% | |
| Heath(Samuel)& Sons ($HSM) | 2.0% | 2.0% | 3.1% | 4.9% | 1.5% |
| |
|---|
| Median (23 companies) | 2.5% | 2.3% | 3.0% | 2.3% | 10.9% |
|---|
| Alumasc Group ($ALU) | 1.5% | 1.2% | 1.1% | 0.9% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Heath(Samuel)& Sons ($HSM) | 19.7% | 32.0% | 89.2% | 54.2% | 35.4% |
| Clarke(T.) ($CTO) | -0.4% | 19.6% | 23.6% | 48.5% | |
| James Halstead ($JHD) | 46.7% | 45.3% | 47.1% | 46.5% | 39.9% |
| Yolo Leisure & Technology ($YOLO) | -49.9% | -26.1% | -51.5% | 24.2% | |
| Billington Hldgs ($BILN) | 14.1% | 17.4% | 18.9% | 19.5% | |
| |
|---|
| Median (25 companies) | 5.4% | 6.4% | 8.2% | 8.6% | 23.9% |
|---|
| Alumasc Group ($ALU) | 22.6% | 36.0% | 47.8% | 50.2% | 23.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Low & Bonar ($BD46) | 2.1x | 2.4x | 2.1x | 14.3x | |
| Asia Cement Corp ($ASCD) | 6.8x | 8.6x | 6.1x | 5.8x | |
| Michelmersh Brick Hldgs ($MBH) | 0.5x | -0.5x | -0.8x | 2.4x | |
| Crh ($CRH) | 1.6x | 3.1x | 1.8x | 1.9x | |
| LSR Group OJSC ($LSRG) | 0.1x | 0.7x | 1.8x | 1.7x | |
| |
|---|
| Median (20 companies) | 0.4x | -0.0x | -0.7x | -0.6x | -1.0x |
|---|
| Alumasc Group ($ALU) | 0.9x | -0.1x | -1.0x | -0.6x | 0.6x |
