Northamber reports 1.5% revenue growth in FY2018 and 1.00 pp EBITDA Margin growth from -1.7% to -0.67%
20 Sep 2018 • About Northamber (
$NAR) • By InTwits
Northamber reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -0.7%
- Northamber spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -1.3%
- Northamber has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has unprofitable business model: ROIC is -3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Northamber's Revenue increased slightly on 1.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 27.3 pp from -24.3% to 3.0% in FY2018.
Gross Margin showed almost no change in FY2018. Gross Margin grew at 0.27 pp per annum in the last 5 years. SG&A as a % of Revenue decreased slightly on 0.68 pp from 9.5% to 8.8% in FY2018.
Net Income margin increased slightly on 0.90 pp from -1.7% to -0.84% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 0.098%. Northamber showed almost no change in CAPEX/Revenue from FY2015 to FY2018. For the last three years the average CAPEX/Revenue was 0.16%.
Return on investment
The company operates at negative ROIC (-3.2%) and ROE (-2.7%). ROIC increased on 2.4 pp from -5.6% to -3.2% in FY2018. ROE increased on 2.6 pp from -5.4% to -2.7% in FY2018.
Leverage (Debt)
The company has no debt. Cash increased slightly on 1.9%.
Financial and operational results
FY ended 30 Jun 2018
Northamber ($NAR) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 62.865 | 65.452 | 61.844 | 57.288 | 58.136 | 1.5% |
| Gross Profit | 4.272 | 4.601 | 4.819 | 4.392 | 4.547 | 3.5% |
| SG&A | | 5.533 | 6.111 | 5.443 | 5.126 | -5.8% |
| EBITDA | -0.961 | -0.685 | -1.125 | -0.957 | -0.391 | |
| Net Income | -1.155 | -0.888 | -1.233 | -0.999 | -0.489 | |
Balance Sheet
|
|---|
| Cash | 5.076 | 5.441 | 5.466 | 4.972 | 5.067 | 1.9% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.026 | 0.044 | 0.032 | 0.183 | 0.057 | -68.9% |
Ratios
|
|---|
| Revenue growth | -18.9% | 4.1% | -5.5% | -7.4% | 1.5% | |
| EBITDA growth | 53.8% | -28.7% | 64.2% | -14.9% | -59.1% | |
|
|---|
| Gross Margin | 6.8% | 7.0% | 7.8% | 7.7% | 7.8% | 0.2% |
| EBITDA Margin | -1.5% | -1.0% | -1.8% | -1.7% | -0.7% | 1.0% |
| SG&A, % of revenue | | 8.5% | 9.9% | 9.5% | 8.8% | -0.7% |
| Net Income Margin | -1.8% | -1.4% | -2.0% | -1.7% | -0.8% | 0.9% |
| CAPEX, % of revenue | 0.0% | 0.1% | 0.1% | 0.3% | 0.1% | -0.2% |
|
|---|
| ROIC | -5.5% | -4.4% | -6.5% | -5.6% | -3.2% | 2.4% |
| ROE | -5.2% | -4.2% | -6.2% | -5.4% | -2.7% | 2.6% |
Peers in Technology Hardware & Equipment
Below we provide Northamber benchmarking against other companies in Technology Hardware & Equipment 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 |
|---|
| Filtronic ($FTC) | | -46.7% | -22.5% | 160.5% | -32.2% |
| Toumaz Ld ($TMZ) | 19.5% | 22.1% | 0.3% | 27.7% | |
| Cml Microsystems ($CML) | | -10.6% | 4.7% | 21.5% | 14.2% |
| Samsung Electronics Co ($SMSN) | -9.8% | -2.7% | 0.6% | 18.7% | |
| Batm Advanced Communications ($BVC) | -4.3% | -11.1% | -6.9% | 18.5% | |
| |
|---|
| Median (18 companies) | 5.0% | 0.2% | -3.3% | 3.1% | 13.3% |
|---|
| Northamber ($NAR) | | 4.1% | -5.5% | -7.4% | 1.5% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cml Microsystems ($CML) | 73.3% | 70.9% | 71.2% | 71.4% | 70.2% |
| Vislink ($VLK) | 45.9% | 45.0% | 73.1% | 62.9% | |
| Concurrent Technologies ($CNC) | 51.2% | 50.6% | 54.2% | 55.4% | |
| Trakm8 Holdings ($TRAK) | 57.2% | 45.2% | 48.3% | 49.4% | 49.4% |
| Samsung Electronics Co ($SMSN) | 37.8% | 38.5% | 40.4% | 46.0% | |
| |
|---|
| Median (17 companies) | 37.0% | 38.9% | 36.7% | 30.6% | 49.4% |
|---|
| Northamber ($NAR) | 6.8% | 7.0% | 7.8% | 7.7% | 7.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Samsung Electronics Co ($SMSN) | 20.9% | 23.6% | 24.7% | 31.6% | |
| Cml Microsystems ($CML) | 35.1% | 29.9% | 30.0% | 31.4% | 30.7% |
| Concurrent Technologies ($CNC) | 27.1% | 28.6% | 24.8% | 28.4% | |
| Tatung Co ($TAT) | 9.2% | 2.1% | 9.1% | 12.5% | |
| Trakm8 Holdings ($TRAK) | 12.9% | 14.0% | 15.8% | 8.7% | 10.2% |
| |
|---|
| Median (18 companies) | 6.4% | 5.6% | 7.5% | 6.3% | 10.2% |
|---|
| Northamber ($NAR) | -1.5% | -1.0% | -1.8% | -1.7% | -0.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tatung Co ($TAT) | 4.3% | 6.7% | 16.1% | 45.1% | |
| Samsung Electronics Co ($SMSN) | 10.7% | 12.9% | 12.0% | 17.9% | |
| Seeing Machines ($SEE) | 1.0% | 3.9% | 1.6% | 5.6% | 12.6% |
| Batm Advanced Communications ($BVC) | 1.6% | 2.5% | 4.1% | 3.0% | |
| Filtronic ($FTC) | 3.2% | 1.1% | 1.3% | 2.3% | 2.5% |
| |
|---|
| Median (18 companies) | 2.3% | 1.8% | 1.6% | 1.7% | 2.0% |
|---|
| Northamber ($NAR) | 0.0% | 0.1% | 0.1% | 0.3% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Samsung Electronics Co ($SMSN) | 14.4% | 14.0% | 14.3% | 23.2% | |
| Filtronic ($FTC) | -14.9% | -80.4% | -79.3% | 18.6% | 16.5% |
| Concurrent Technologies ($CNC) | 14.1% | 20.9% | 14.7% | 16.1% | |
| Cml Microsystems ($CML) | 23.0% | 10.3% | 10.1% | 11.2% | 10.4% |
| Lite-On Technology Corp ($LTTD) | 5.7% | 7.0% | 10.6% | 7.5% | |
| |
|---|
| Median (18 companies) | 6.7% | 4.3% | 2.9% | 5.1% | 7.5% |
|---|
| Northamber ($NAR) | -5.5% | -4.4% | -6.5% | -5.6% | -3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vislink ($VLK) | -0.0x | 1.8x | 0.4x | 54.5x | |
| Tatung Co ($TAT) | 6.7x | 40.1x | 9.2x | 7.7x | |
| Trakm8 Holdings ($TRAK) | -0.5x | -0.2x | 0.3x | 1.7x | 1.1x |
| Compal Electronics Inc ($CEIR) | -0.2x | -0.3x | 0.1x | 1.0x | |
| Global Invacom Group Ltd ($GINV) | -2.8x | -1.4x | -0.9x | 0.1x | |
| |
|---|
| Median (16 companies) | -1.3x | -1.2x | -0.9x | -0.7x | -1.3x |
|---|
